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Study of Overseas Development and Construction of Sino―Russian Cooperation Agric

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Abstract. Implement agricultural "going out" strategy, guide and promote agricultural enterprises’ higher and wider participation in international agricultural division of labor and cooperation, foster transnational agricultural groups, which will help to speed up China's agricultural industrialization, internationalization and modernization, the promotion of domestic strategic adjustment of agricultural structure, the optimization and upgrading. Jilin Province shall make an integrated use of a variety of ways to strengthen the development strength of overseas market of agricultural resources and agricultural products, promote improved varieties, superior agricultural technology, equipment and agricultural products to “walk out”, establish foreign grain, important industrial crop and fishery production base and independent logistics and trade system, and continuously improve the international competitiveness of China's agriculture. This thesis discusses the current research of overseas agriculture development and the major ways of the construction of Sino-Russian Cooperation Agriculture Park in Jilin Province. It also proposes the measures to accelerate the implementation of the development of Jilin Province Sino-Russian Cooperation Agriculture Park.

Key words: Jilin Province, overseas agriculture, development, Sino-Russian, Cooperation Agriculture Park.

1. Current study of overseas agriculture development in Jilin Province

China's per capita water resource is only 2300m3, 1/4 of the world average. Arable land is 124 million hectares and arable land per capita is less than 0.1 hectares, 43% of the world average. Due to insufficient per capita arable land resources and water resources, it is much lower than the average world level, which is China's comparative disadvantage.

Although China is not abundant in agricultural resources, there are still a few countries in the world abundant in agricultural resources, enormous in development potential, such as Russia. Therefore, combined with our advantage, we could make full use of foreign land resources, water resources and other natural advantages for overseas agriculture development.

Seen from the distribution of international agricultural resources, Africa, Brazil, Argentina, and Russia are areas abundant in agricultural resources, with enormous agricultural output potential. Therefore, agricultural investment in these countries could be taken into account with the support of both governments.

Agricultural products produced through the cooperation with these countries could be sent home to increase domestic supply. In case of tense local supply and demand relationship, they could be sold to increase the local supply.

Jilin Province is a major agricultural province, the country's major grain production base producing paddy rice, corn, soybean, renowned as “China's granary”. Jilin Province mainly carries out overseas agriculture development through encouraging enterprises and investors to rent or purchase farmland overseas, invest in rice, wheat, barley, corn, paddy rice, fish and other agricultural product plantation and cultivation, and transport products directly to Jilin Province. Overseas agriculture development aims to guarantee safe grain on the basis of the establishment of strategic grain reserves.

Currently, enterprises of Jilin Province have already signed leasehold land area up to 2.65 million acres in five countries abroad. In Russia, Kazakhstan, the Philippines, it has invested in a total of 8 demonstration farms predominated by corn, paddy rice, soybean, covering an annual demonstration area of 13,300 acres. The total investment is up to 457 million RMB.

Since 2000, Jilin Province has strengthened its cooperation with agriculture in Russia. Russia is adjacent to Jilin Province, and the natural climate of agriculture in Jilin Province is roughly the same as that in Russia. Jilin Province also has highway and railway connected to Russia, and thus the needed supporting agricultural supplies output is rather convenient and low in cost. Therefore, Jilin Province could reach a complementary and win-win result by developing overseas agriculture and establishing Sino-Russian Cooperation Agriculture Park in Russia.

2. Main contents of construction of sino-russian cooperation agriculture Park in Jilin Province

1. While selecting the construction of Sino-Russian Cooperation Agriculture Park, Jilin Province shall conform to the following principles: abundant agricultural resources, good government policies, standard administrative rules and regulations, government incentives; rational shares of crops export; investors achieve long-term investment through purchase of ownership or long-term contract; Jilin Province could chooses the crop type independently; governments of the two countries sign a bilateral agreement to ensure the realization of investment objectives; the support and encouragement of the local government of the investment; crops transportation asks for feasibility, convenience and low cost.

2. Through Sino-Russian Cooperation Agriculture Park, Jilin Province establishes a rather complete agricultural planting, animal husbandry, agricultural products deep processing systems and trade and logistics system in Russia, and realizes scale, standardized and mechanized production.

Sino-Russian Cooperation Agriculture Park should aim to promote industrial development, focus on strengthening construction of base supplementary facilities, gradually establish organic agriculture and animal husbandry as the key, organic agricultural products processing, organic fertilizer production, product sales and quality control system of the whole process, so as to form industrial management.

3. Sino-Russian Cooperation Agriculture Park could be divided into five major functional areas, being: planting area, breeding area, agricultural products processing area, trade and logistics area, and trade and life service area.

3. Major ways for Jilin Province to construct Sino-Russian Cooperation Agriculture Park

1. Establish Comprehensive Agricultural Development Park in Jilin Province. The government of Jilin Province actively signs government files with the Russian government, prescribing that the Russian government should allocate a certain area of land for the establishment of Comprehensive Agricultural Development Park in Jilin Province, and Chinese enterprises in Jilin Province come to this area to invest in and develop agricultural infrastructure construction and plantation. They grow agricultural products, and process agricultural products in the Park, granted with unified preferential policies of the Park.

2. Set wholly-owned enterprises or joint risk. Jilin enterprises should flexibly choose the cooperation mode according to different social status and customs in different areas. Some give priority to joint risks to share risks, and other areas with fewer risks could adopt a wholly-owned manner.

3. Establish overseas agricultural products processing and sales base of Jilin Province. Give full play to the advantages of Jilin Province, establish agricultural products processing and sales base in other countries and regions with the technology and equipment available, and expand overseas agricultural products processing and trade, so as to drive the labor, raw material and other product export of Jilin Province.

4. Purchase the existing agricultural enterprises or farmlands. Jilin Province could purchase the existing agricultural enterprises in Russia Primorsky Territory. The purchase of agricultural and husbandry companies and farms will be the most convenient way to rapidly develop overseas agriculture investment. Although the purchase cost is slightly higher than building a new farmland, it could save at least one year of construction period.

5. Establish overseas agriculture group in Jilin Province. It should be led by the government, staked by state-owned enterprises and dominated by private enterprises. In other words, several private enterprises interested in investment in overseas agriculture development act as the promoters, and establish a joint-stock enterprise group with excellent assets of co-investment in the form of shares.

4. Measures to accelerate the development of Sino-Russian Cooperation Agriculture Park in Jilin Province

(1) Intensify policy support. The Central Government increases its agriculture "going out" support, and supports foreign agricultural cooperation in accordance with the principle of "government guidance, enterprise decision-making, business operations, and policy support". In case of projects that conform to the condition, based on administrative measures on special funds for foreign economic cooperation and relevant regulations, they will be given interest payments on loans support and pre-fund. Underwriting and claims speed should be accelerated in case of agricultural products export and agricultural foreign investment projects. Jilin Province should formulate the specific supporting measures of the overseas agriculture development according to the reality of Jilin Province.

(2) Make full use of diplomatic and business service platform and make active use of the preferential policies overseas. Diplomatic and commercial sectors should make use of resources and advantages accumulated for years in foreign exchanges and cooperation, and establish the platform for the communication and service of investment enterprises in overseas agriculture. Strengthen research and information services of the host countries of agricultural markets and investment environment and take the initiative to give work opinions and recommendations to strengthen communication with the host countries timely. Strengthen communication, negotiation and coordination with the host, determine the situation and safeguard the legitimate rights and interests of our enterprise. Enterprises should take the initiative to communicate with the Embassy (Consulate) business institutions, and receive guidance of Embassy (Consulate). Meanwhile, diplomatic and business institutions should also take the initiative to communicate with a number of national government departments, so as to win more preferential policies for our enterprises to invest in overseas agriculture.

(3) Establish overseas agriculture investment risk fund. Due the risks of overseas agriculture investment, the finance may consider the establishment of overseas agriculture investment risk fund, so as to provide risk circumvention channel for enterprises to invest in overseas agriculture. Risk fund could either be directly used to subsidy foreign invested enterprises, or security companies engaged in overseas business. Moreover, enterprises and individuals interested in engaging in investment in overseas agriculture with strong financial strength could be encouraged to directly invest in this field.

(4) Improve the level of financial services, and provide financial support for the park to be larger and stronger. Financial operation in itself is an important content of trade cooperation between two countries. Agricultural Park, as the greatest agricultural investment project of Jilin Province in Far East of Russia, is characterized by enormous project, long investment period and large cash flow, which should depend on various convenient and flexible financing methods of these two countries to provide fund guarantee.

(5) Play the talent advantage and scientific research of Jilin Province. Far East of Russia covers an area of 6.2159 million square kilometers, 33 timers higher than the land area of Jilin Province. However, Far East of Russia only has a population of 7.107 million people (January 1, 2011), only 26.8% of population in Jilin Province. Far East of Russia is scarce in agriculture, forestry, fisheries and mining industry; Jilin Province has adequate technical personnel. Agricultural Park project could ease the shortage of Russian talents by sending technical personnel to Far East of Russia. Through the Agricultural Park as the carrier, agricultural research institutes and universities in Jilin Province could establish long-term scientific exchanges and regular personnel communication and exchanges with related agricultural research institutes and key institutions in Far East of Russia, so as to promote the common development of Sino-Russian level of agricultural science and technology.

5. Acknowledgement

This thesis is the initial result of "Twelfth Five" Social Science Research Project of Education Department of Jilin Province, 2013

Project number: 2013630

References

[1] Shan Liyan, Huang Qing. Discussion about agricultural “going out” strategy in Heilongjiang [J]. Agricultural Economy. 2009(03).

[2] Cui Longjiang. Unswervingly implement agriculture "going out" strategy [J]. Farm Economic Management. 2009(08).

[3] Zhang Lingran. On "going out" strategy of China's agriculture [J]. Business Research. 2010(23).