"Foreign capital and technology, as well as those from domestic investors, are vital for China to invigorate its food industry," Wen said on Wednesday when addressing the opening ceremony of a high-ranking international forum on China's food industry.

Wen said the Chinese Government will launch a national programme to develop the processing industry of farm produce this year.

He said the programme is aimed at enhancing the competitiveness of the farming industry after China's World Trade Organization entry, creating new jobs for millions of rural laborers and increasing the income of farmers who make up over 70 per cent of the country's population.

The three-day forum, jointly organized by ministerial departments of economic planning, trade, science and technology and quarantine and inspection, has attracted about 700 participants from across the world. More than 20 provincial governors attended the Beijing forum.

Following the workshop, a four-day international exhibition on agricultural product processing will be held in Beijing.

The organizing committee said dozens of agricultural product processing technologies from domestic and foreign research institutes and enterprises will be presented at the exhibition.

The workshop and exhibition are among a string of activities organized by related ministerial departments.

Two days ago, the State Economic and Trade Commission and the Ministry of Agriculture organized a national conference to spur the development of China's food industry.

A month ago, the Ministry of Science and Technology expressed that it will act as a firm science and technology backer of the industry. Its vice-minister Li Xueyong said a national food detection network will be set up by 2005 to ensure the safety of the nation's food supply.

Zhang Guobao, vice-minister of the State Development Planning Commission, said in his keynote speech that the agricultural processing industry has been the engine fuelling the development of Chinese agriculture and the main source of farmers' incomes.

"The importance of agricultural processing in the national economy has been steadily rising during the reform years, typically the last five years of the 20th century," Zhang said.

Zhang said the farm product processing industry has become the most dynamic sector with a growth rate topping other industries in the national economy.

In the last 10 years, its average annual growth reached 9.2 percent, higher than the current growth of the national economy.

Zhang said the fast growth of the agricultural processing industry has boosted the market for Chinese agricultural products, and promoted the upgrade of agriculture in general.

Processing farm products also brings Chinese farmers better incomes. More and more township enterprises are also forging relationships that share benefits with local farmers, which ensures business profits and at same time cuts the risk for agricultural producers.

So far, the agricultural processing industry has created more than 15 million job opportunities for Chinese farmers throughout the country.

(China Daily August 22, 2002)