Farming co-op's record rise in revenue
Updated: 2012-06-12 14:02
By Li Woke (chinadaily.com.cn)
Revenue for the All China Federation of Supply and Marketing Cooperatives, an organization that supports farmers in rural areas, increased by a record 30 percent in the first five months this year, showing the huge opportunities that exist in the Chinese countryside.
Sales revenue of the federation reached 888.1 billion yuan ($139.4 billion) from January to May this year, an increase of 30 percent compared with the same period in 2011, while sales on consumer goods jumped to 278.8 billion yuan ($43.72 billion) in the first five months, a year-on-year surge of 33 percent, said the federation on Monday.
In 2011, the federation's revenue from sales reached an historic high of 2.02 trillion yuan, increasing by 29.5 percent above the amount for the year earlier. Its profits reached 21.55 billion yuan, 25.3 percent higher than the year before, according to the federation.
"In recent years, the federation has established more production-to-sales channels for farmers, promoted agricultural modernization and implemented all-round services," said Yang Chuantang, board director of the federation. Yang said the federation will enhance cooperation with international counterparts in the future.
The All China Federation of Supply and Marketing Cooperatives, established in the 1950s under a planned economy and under the governance of the State Council, is the biggest federation to consolidate various means of distribution and retail selling in rural China.
Wang Bin, deputy director of the ministry's department of market operation and consumption promotion, said retail sales in the countryside and other places will increase by 14 percent in 2012.
The Ministry of Commerce said the value of retail sales will increase by about 15 percent each year during the 12th Five-Year Plan (2011-15) and reach 32 trillion yuan by 2015.