WERA_OLD101: Assessing the Chinese Market for U.S. Agricultural Products

(Multistate Research Coordinating Committee and Information Exchange Group)

Status: Inactive/Terminating

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Annual/Termination Reports:

[08/21/2003] [08/28/2003] [08/29/2003] [06/30/2004] [01/05/2006]

Date of Annual Report: 08/21/2003

Report Information

Annual Meeting Dates: 04/08/2001 - 04/10/2001
Period the Report Covers: 10/01/2000 - 09/01/2001

Participants

Beghin, John(beghin@iastate.edu) Iowa State University;
Chen, Wen S.( chern.1@osu.edu) The Ohio State University;
Crook, Fred (fwcrook@thechinagroup.com) The China Group, Gt. Falls, VA;
Davies, Stephen(Stephen.Davies@colostate.edu) Colorado State University;
Durham, Cathy(cathy.durham@orst.edu) Oregon State University;
Fang, Cheng() Iowa State University;
Fuller, Frank, () Iowa State University;
Geier, Hans, AFES/SALRM VAF, Fairbanks, Alaska;
Gilbert, John (JGILBERT@ECON.USU.EDU) Utah State University;
Gilmour, Brad(gilmourb@agr.gc.ca) Agriculture & AgriFood Canada;
Hayes, Dermot (dhayes@card.iastate.edu) Iowa State University;
Hsu, Hsin-Hui(hhsu@ers.usda.gov) USDA ERS;
Lee, Hynock, University of California Davis;
Lohrar, Bryan (blohmar@ers.usda.gov) USDA ERS;
Qin, Xiang Dong (xq986332@ncat.edu) North Carolina A&T University;
Rozelle, Scott (rozelle@primal.ucdavis.edu) University of California, Davis;
Seale, James (JLSeale@mail.ifas.ufl.edu) University of Florida;
Smith, Rodney (rsmith@dept.agecon.umn.edu) University of Minnesota;
Somwaru, Agapi (agapi@ers.usda.gov) USDA ERS;
Sternquist, Brenda (sternqui@pilot.msu.edu) Michigan State University;
Sumner, Daniel (dan@primal.ucdavis.edu) University of California, Davis;
Tuan, Francis (ftuan@ers.usda.gov) USDA ERS;
Uva, Wen-fei (WL32@cornell.edu) Cornell University;
Wahl, Thomas (wahl@wsu.edu) Washington State University;
Yamada, Masaru, Tokyo, Japan

Brief Summary of Minutes

Western Coordinating Committee - 101

Business Meeting Minutes

Sonoma California, 10 April 2001

Frank Fuller (chair) called the meeting to order at about 11:30. He welcomed all members and participants to the meeting and commended the workshop‘s organizing committee.

1. The committee examined the minutes from the last business meeting and passed them without amendment.

2. The first order of business was the election of a new committee secretary/vice chair and selection of the next workshop‘s coordinator. [Brad Gilmour, the current secretary/vice chair, will move into the chair effective after the business meeting.] Chair Fuller opened the floor to nominations.

Brad Gilmour nominated Cathy Durham for secretary/vice chair. Tom Wahl nominated Bryan Lohmar. Both Cathy and Bryan graciously accepted their nominations.

The ensuing election resulted in a dead heat. In keeping with Florida‘s constitutional role, Jim Seale offered to vote twice to break the deadlock, but his offer was declined. Tom Wahl and Frank Fuller suggested that committee members and candidates revisit the selection of candidates after discussing the possible sites for the next WCC workshop.

3. Portland (Oregon) and Washington (D.C.) were put forward as possible sites for the next two workshops. If the workshop is held in Portland, Cathy Durham agreed to serve as workshop coordinator. If the workshop is held in Washington, Bryan Lohmar agreed to serve as workshop coordinator. Both prospective workshop coordinators presented excellent cases for their respective centers. In the end, Washington came out the winner by a whisker.

4. As Bryan Lohmar agreed to serve as the next workshop‘s coordinator, Frank Fuller suggested that Cathy Durham should become the next secretary/vice chair as this would spread the work and maintain the broad geographic appeal of the workshop. Both the candidates and the membership agreed that this made sense.

5. Dan Sumner observed that alternating between coasts for the location of the workshop had some appeal. He also noted the strong case made for Portland and suggested that the membership commit to Portland for the workshop after the next. The membership concurred, barring something unforeseen.

6. Bryan Lohmar suggested that the committee may want to take a thematic approach to the next workshop, possibly focussing on the input sector. Members indicated that they would reflect on it, but that it might be too early to commit to a particular theme. Various members (Chern, Sternquist, Sumner, Durham) emphasized the importance of reflecting on the needs of industry.

7. Committee members were encouraged to think of possible new recruits / colleagues who might be interested in joining WCC and extending its influence, coverage and appeal.

8. Tom Wahl and Frank Fuller encouraged presenters to submit their final manuscripts for publication in the proceedings by 23 April. Members are to submit their papers to Charli Hochsprung at WSU, and cc a copy to Frank and Tom.

9. As there was no other business, John Beghin moved that the meeting be adjourned, seconded by Jim Seale. Chair Fuller adjourned the meeting at approximately 12:25.

Accomplishments

Agricultural Trade with China in the New Economic and Policy Environment A Symposium was held at the Westerbeke Ranch near Sonoma, CA on April 8-10, 2001. The meeting was organized by Dan Sumner of the Ag Issues Center, University of California, Davis. An industry tour of area wine exporters was conducted on April 9 prior to the official meeting. A proceedings from the meeting has been produced and is available at the WCC-101web site: http://china.wsu.edu April 9, 2001 Session 1. Changes in Trade Policies Chinas Accession to WTO Would Boost World Trade of Edible Oils Hsin-Hui Hsu and Francis Tuan, USDA, ERS Barriers and Uncertainties in the Implementation of the Ag Provisions of the US-China and WTO Trade Agreement Fred Crook, The China Group Comparative Advantage and Trade Competitiveness Francis Tuan, Guoqiang Cheng and Tingjun Peng, USDA, ERS Outlook for Chinas Pork Trade with the US under the US China Relations Act William Amponsah and Xiang Dong Qin, North Carolina A&T University Session II. Household and Retail Issues How does Migration Affect Household Income in Rural China Alan deBrauw, Scott Rozelle and Ed Taylor, University of California, Davis State as Strategist in Chinas Retail Food Industry Liberalization: The Case of Foreign Retailers and E-Retailing Brenda Sternquist, Michigan State University The Effects of Imperfect Markets: The Case Study of Backyard Hog Raising in China Jing Chen, Colin Carter and Scott Rozelle, University of California Davis Session III. Production Issues Genetic Diversity and Total Factor Productivity: The Case of Wheat in China Songqing Jin, Scott Rozelle, Erika Meng, Ruifa Hu and Jikun Huang, University of California, Davis Inter-fiber Competition: Cottons Declining Market Share in China Cheng Fang, Hunter Colby and Bruce Babcock, Iowa State University Impact of Housing and Health Care Reforms on Urban Food and Clothing Consumption in China: Evidence from Urban Household Survey Data Cheng Fang, FranK Fuller and John Beghin, Iowa State University The Role of the Land Rental market in Chinas Agricultural Transformation Bryan Lohmar, Zhaoxin Zhang and Agapi Somwaru, USDA, ERS Session IV. Implications of WTO Chinas Prospective Impact on International Agri-Food Markets and Policies Rivalries, Complementarities, Challenges and Opportunities Brad Gilmour, Agriculture and AgriFood Canada

Publications

Agricultural Trade with China in the New Economic and Policy Environment. Thomas I. Wahl and Daniel Sumner, eds. The IMPACT Center, PO Box 646214, Pullman, WA 99164-6214. For full PDF version see www.china.wsu.edu

Impact Statements

WCC-101 provides a forum for graduate students to present their research and receive feedback from experienced researchers.
WCC-101 fosters greater understanding of China's potential and likely ability to import and export food to and from markets in Asia and the Pacific Rim
WCC-100 enhances the network of China researchers around the world. Representatives from Agriculture and AgriFood Canada, USDA, and China's academic and government institutions, as well as US business and research representatives participate in the symposiums
WCC-101 disseminates its information widely through symposia, published proceedings and its web site.

Date of Annual Report: 08/28/2003

Report Information

Annual Meeting Dates: 04/14/2002 - 04/16/2002
Period the Report Covers: 10/01/2001 - 09/01/2002

Participants

A rkema, Dean, Arlington, VA ;
Amponsah, William A.( williama@ncat.edu) North Carolina A&T;
Autry, Elizabeth, USDA,FAS;
Black-Bagdoyan, Carolyn(bagdoyan@gao.gov) General Accounting Office;
Bohman, Mary(mary.bohman@ers.usda.gov) USDA/ERS;
Chern, Wen S. (chern.1@osu.edu ) The Ohio State University;
Christensen Bax, Cheryl(cherylc@ers.usda.gov) USDA/ERS;
Crook, F.W.( fwcrook@thechinagroup.com) The China Group;
Dang, Mai(dangmai@em.agr.ca) Agriculture & Agrifood Canada;
Davies, Stephen(Stephen.Davies@colostate.edu) Colorado State University;
Diad, Xinshen (x.diad@cgiar.org) ;
Dismukes, Robert ( ) USDA/ERS/MTED;
Dixit, Praveen (p.dixit@usda.gov) USDA, ERS;
Dyck, John (jdyck@ers.usda.gov) USDA/ERS;
Durham, Cathy (cathy.durham@orst.edu) Food Innovation Center, Oregon State University;
Fang, Cheng (C.FANG@CGIAR.ORG) CARD, Iowa State University;
Flake, Oliver () USDA, FAS;
Forsythe, Dawn (dforsyth@uswheat.org) U.S. Wheat Associates, Washington DC;
Fox, Robert () USDA, FAS;
French, Emily(efrench@agrilink.com) World Perspectives, Washington DC;
Gale, Fred (fgale@ers.usda.gov) USDA, ERS;
Giles, John (gilesj@msu.edu) WCFIA Harvard Academy;
Gilmour, Brad (gilmourb@em.agr.ca) Agri-Food Canada;
Gionfriddo, Joseph, Global Strategies, McLean, VA;
Hansen, Jim(jhansen@ers.usda.gov) USDA/ERS;
Harrison, Travis, Wyker Technical Consulting, Monterrey, CA ;
Harwood, Joy() USDA, ERS;
Holder, David (retired) USDA/CSREES;
Jiang, Hui () USDA, FAS;
Lohmar, Bryan(blohmar@ers.usda.gov) USDA, ERS;
Liu, David, Pioneer Hi-Bred International, Johnston, IA;
Lyons, Susan, Louis Dreyfus Corporation, Washington DC;
O'Meara, Richard C.() USDA, FAS;
O'Rourke, Desmond, Belrose, Inc., Pullman, WA;
Qin, Xiang Dong, North Carolina A & T State;
Rhoe, Valerie(v.rhoe@cgiar.org) IFPRI, Washington DC;
Rosson, Parr(prosson@tamu.edu) Texas A&M;
Rozelle, Scott (rozelle@primal.ucdavis.edu) University of California, Davis;
Shih, Cheng Pingcpshih49@hotmail.com) Washington, DC;
Somwaru, Agapi(agapi@ers.usda.gov) USDA, ERS;
Spangler, Barbara(spangler@uswheat.org) Wheat Export Trade Education Comm.;
Sternquist, Brenda(sternqui@pilot.msu.edu) Michigan State University;
Tai, William(w.tai@idealsinstitute.org) IDEALS, Beltsville, MD;
T.C. Tso, T.C.(ideals@erols.com) IDEALS, Beltsville, MD 20705;
Theiler, Susan(theiler@fas.usda.gov) USDA FASTuan, Francis (ftuan@ers.usda.gov);;
Wahl, Thomas(wahl@wsu.edu) Washington State University;
Wedding, Timpthy (weddingt@gao.gov) GAO;
Wei, Anning, Rabobank Hong Kong Branch, Hong Kong;
West, Loraine(lwest@census.gov) U.S. Census Bureau;
Wilson, George(george_wilson@ncsu.edu) North Carolina State University;

Brief Summary of Minutes

Western Coordinating Committee - 101

Business Meeting Minutes

Washington DC

16 April 2002

1. Brad Gilmour (chair) called the meeting to order at about 8:30. Others in attendence included: David Holder, Wen Chern, Tom Wahl, Brenda Sternquist, Bryan Lohmar, Cathy Durham, and Scott Rozelle. He welcomed all members and participants to the meeting.

2. Brad thanked the workshop coordinator, Bryan Lohmar, and commended Charli Hochsprung and Brenda Campbell for their roles in setting up the conference, and recognized and thanked the many members of USDA for their assistance in organizing the meeting including the ERS Administrator, the Office of the Director for Market and Trade Economics Division, the Asia Western Hemisphere Branch Chief, Praveen Dixit, the China team (Frances Tuan, Fred Gale, Hsin Hui Hsu), Bill Coyle , John Wanio, John Dyck. Others recognized for their contribution included Susan Offutt, Neil Conklin, Cheryl Christensen, Joy Harwood, and Mary Bohman. The committee examined the minutes from the last business meeting and passed them without amendment.

3. The selection of Portland (Oregon) as the site of the next meeting was revisited and confirmed. Cathy Durham agreed to serve as workshop coordinator.

4. Portland, OR approved as site for next meeting. Cathy Durham will act as coordinator.

5. Manuscripts for proceedings due at end of April, these should be sent to Charli Hochsprung at WSU via e-mail, and cc‘d‘d to Tom Wahl, Brad Gilmour and Bryan Lohmar.

6. Date for next meeting was discussed and a Thurs/Fri in mid-April 2003 is the likely date. A 1.5 day meeting with a close at 3PM on Friday was discussed.

7. The next order of business was the election of officers. As determined at the 2001 meetings the current committee secretary/vice chair, Cathy Durham, had been intended as the next chair, and this was confirmed by the committee. Bryan Lohmar was nominated as new committee secretary/vice chair, he accepted the nomination and was voted in as new Vice Chair and Secretary. Both positions effective after the business meeting.

8. Holder informed the group that the proposed budget indicates a doubling of NRI funding, and that Ins. for Future Food and Ag Systems may possibly be another source.

9. Chern raised issue of visibility and suggested holding a meeting in China, an animated discussion followed and some problems such as cost were raised. The ideas will be further discussed, and consideration made towards applying for funding for such an activity.

10. A committee consisting of Sternquist, Rozelle, Holder, and Lohmar was formed to develop this idea.

11. Agreement to explore making better use of available funds such as NRI, IFAS.

12. As there was no other business, Brad moved that the meeting be adjourned, seconded by Scott Rozelle. Chair Gilmour adjourned the meeting at approximately 9:00AM.

Minutes Attachment:

Attachment

Accomplishments

Accomplishments A two day symposium was planned by Praveen Dixit, Bryan Lohmar and Francis Tuan at ERS/MTED. This was widely advertised to other agencies, universities and agencies who deal with Chinese agricultural projects. A third day was hosted by ERS as an introduction to a new program. Keynote speaker was Carol Brookins, U.S. Executive Director of the World Bank. She spoke about a program for development in China (RISE). Jikun Huang, Director, Center for Chinese Agricultural Policy, Beijing spoke about implications of China‘s Accession to WTO. Presentations made are highlighted below and published in a proceedings. For a complete PDF version of the proceedings see the WCC-101 web site at www.china.wsu.edu . Surging Markets, Ineffective Intervention,: The Performance of Agricultural Commodity Markets during the 1900s. Min Chang, Hsin-hui Hsu, Jikun Huang and Scott Rozelle - Examined the integration of China‘s grain markets from the mid-1990s - present. Discussed the extent to which price shocks associated with China‘s entry into WTO would affect farmers in inland regions. Methodologies applied were the cointegration test and parity bound model analysis, using data from the Research Center for Rural Economy, MOA. Preliminary results from the cointegration test show that China‘s grain markets are integrated. As China enters the world grain markets, the inland farmers in China will be affected as much as their coastal counterparts. The Guanxi Hypothesis: Marketing Grass Seed in China. Cathy Durham, E. Vega-H and A. Johnson - It is important for policy and strategic reasons to determine whether relationship development and personal contacts with Chinese decision-makers have influenced demand for US agricultural products. A history of two decades of market development activities for Oregon grass seed to China was examined. Authors discussed the types of programs undertaken by the Oregon Seed Council, Chinese policies regarding grass seed use for erosion control and beautification, and the experience of US producers as part of the program efforts and their selling experiences with their grass seed in China. Retail Food Buyer-Supplier Relationships in the People‘s Republic of China. Brenda Sternquist, Z. Chen and Y. Wang - . In Chinese, guanxi is a general term for social networks. In a study of Chinese executives, social connection was the only item consistently chosen as a key business-success factor. The respondents attributed the importance of social connections to the ambiguity of Chinese legislation. A major requirement of WTO admission is that China apply the Rule of Law to business transactions. We began this research project with the belief that guanxi was of primary importance in Chinese business dealings, yet our findings show that the major chain food retailers forbid buyers from developing personal relationships with suppliers and do not allow gifts to be accepted. Our revised view of this relationship is that it is built on solid performance of products. A shift from reliance on networks of bilateral (often mutual) trust towards a culture of institutional trust (generalized reciprocity) is one of the factors in explaining what happens to the informal structure of organizations as they gain in size (Abell 1996). Off-Farm Labor Markets and Household Risk-Coping Behavior in China. John Giles - Discussed off-farm labor markets and household risk-coping behavior in rural China. His analysis suggests that rural residents would suffer from urban policies restricting the in-flow of migrants in two ways. Households sending temporary migrants to cities will suffer both a loss of income and a loss of insurance against the income effects of shocks on-farm. In fact, the analysis suggests that the welfare of Chinese farm households in rural communities can be further improved by eliminating the remaining institutional obstacles to expansion of migrant employment opportunities. Agricultural Insurance and its Role in Risk Management Policy in China. Hsin-Hui Hsu, B. Lohmar and F. Gale - China‘s membership in the WTO and growing commercialization of agriculture and insurance are leading policymakers to examine the role of insurance in agricultural risk management. Although various forms of agricultural insurance-protection against crop yield shortfalls and losses of livestock-are available currently in several regions of China, coverage is usually restricted to single-perils, such as hail, fire or flood, and participation by farmers has been low. China‘s crop insurance limits risks insured in order to guard against actuarial problems, such as adverse selection and moral hazard. Also, unlike in the United States and other countries with multi-peril crop insurance, insurance companies and farmers in China do not receive direct government subsidies to provide and participate in agricultural insurance. Barriers to increased use of agricultural insurance in China include farmers‘ lack of cash to pay insurance premiums, small sizes of agricultural holdings, and questions about incentives for private, profit-seeking insurance companies to provide insurance coverage. The Nature of Distortions to Agricultural Incentives in China and Implications of WTO Accession. Jikun Huang and Scott Rozelle - The authors discussed a project to understand how WTO will affect agricultural sector in China including measures of the distortions in China‘s agricultural sector immediately prior to accession to WTO. Only a small part of the effects of WTO will come from agriculture. Larger and more positive effects are expected to come in the non-farm sector. To the extent this is true, we should expect that WTO‘s accession will generally have a small, negative effect and larger positive effect on households. As China enters the 21st century, it should combine trade policy and investment liberalization policy with a number of other transition and rural development policies in order to push for as rapid an evolution of China towards as modern an economy as possible. China‘s Accession to WTO: Impacts and Policy Alternatives. Funing Zhong and Francis Tuan - The current problems in China‘s agriculture, such as the slowdown in production and income growth, the increase in production costs, other burdens on farmers, and the changing supply-demand balance in domestic markets are largely internal issues. However, as those problems are closely related to the farm scale and labor/land ratio, foreign competition following the accession to the WTO will reinforce the heavy pressures on Chinese farmers and the agricultural sector. The central government could encourage and facilitate structural adjustments in the sector, in order to improve efficiency in resource allocation and to reduce production costs. The central government may invest more in agricultural research and infrastructure, in order to increase production, and more importantly, to reduce farmers‘ production and marketing costs, as well as to raise the value of farm products sold on market. Finally, the government should understand that large-scale re-allocation of its labor force is the most crucial measure to improve comparative advantage of Chinese farm products in the world market, and to improve Chinese farmers‘ income. China‘s WTO Accession and the Chinese Honey Antidumping Case - Implications for China‘s Future Agricultural Exports. Spencer Griffith - In 2001 the U.S. government imposed anti-dumping duties on imports of honey from China. China is by far the world‘s largest honey producer - about 500 million pounds of honey annually. China is also a significant exporter of honey , particularly to the United States and Japan. In 1995 the US Department of Commerce and the Chinese government concluded the first suspension agreement under which a certain volume of Chinese honey would be allowed into the US market free of dumping duties. In 2000, at the expiration of the agreement, a new dumping case was filed against imports of honey from China and Argentina. At a US ITC hearing, the Chinese exporters and US importers presented evidence showing that Chinese imports were not injuring the US producers, but rather that honey prices had fallen as a result of numerous factors unrelated to imports. The ITC ultimately found injury and dumping duties were imposed on Chinese honey. The decisions are now on appeal to the US Court of International Trade. The Impact of China‘s WTO Accession on US Agricultural Exports. Jonathan Coleman, - A detailed market analysis of China‘s market access commitments based on a comparison of China‘s tariff schedules, pre-and post-accession (including an analysis of China‘s new TRQ system and an examination of China‘s potential use of non-tariff barriers (such as China‘s food safety regulations, labeling requirements, GMO guidelines, practices of state-trading enterprises, and TRQ administration) to block future US exports to China. China‘s Accession to WTO and its Regional Implications: A Simulation of Policy Changes using CAPSIM. C.P Shi and Hsin-Hui Hsu - This paper provided useful insights for understanding the impacts of China‘s accession to the WTO and demonstrated that CAPSIM can be used as a valuable tool for evaluating trade and domestic policy changes at regional or provincial levels. The policy simulation, based on China‘s accession to the WTO, implies that China‘s rice, wheat and corn imports could be increased. China‘s accession to WTO not only benefits major grain suppliers around the world, including the US and Canada, but also provides an excellent opportunity to lower excessive domestic grains stocks and to promote more pork production or better hog feeding in China. China‘s Accession to the WTO: Implications for China‘s Agricultural Imports. Bryan Lohmar, J. Hanson, R. Seeley and R. Stillman - China‘s recent accession to the WTO is a positive development for China, the international agricultural economy and for US producers. Under the WTO, China‘s farmers will be better able to access markets for labor intensive products for which they have a comparative advantage. Estimates of the changes in China‘s agricultural trade due to the new trade regime under WTO, suggest that China will substantially increase its imports of corn and wheat under the more liberalized trade regime, and the increased international demand for these products will increase farm incomes in the US. On average, annual US farm incomes will be $0.8 billion higher over the period 2002-2009 due to the increased access to China‘s market under the WTO. Continued economic development and transition to a market economy, along with trade liberalization, will provide greater opportunities for agricultural exports to China in the future. How Many Nonfarm Jobs in Rural China? Evidence from China‘s Agricultural Census. Fred Gale - China will have to transfer large numbers of workers from agriculture to nonfarm work in order to see significant improvements in rural incomes and farm labor productivity. This study uses data from China‘s agricultural census to assess the size of China‘s rural labor force, the agricultural-nonagricultural engagement of rural workers and the geographic distribution of nonagricultural employment. This analysis of the census data indicates that agriculture was still the predominant rural activity and that the number of persons who did agricultural work exceeded the number reported in China‘s labor force statistics in 1996. Regional analysis shows that rural nonfarm opportunities are much more accessible for persons in the coastal region of China, while many residents of central provinces had to leave their home province to find nonfarm work. Additional Accomplishments at the end of the Minutes Section

Publications

Changes in China‘s Agricultural Sector: Trade, Market and Policy Reform. Thomas Wahl, Bryan Lohmar and Brad Gilmour eds. IMPACT Center Publications, Pullman, WA 99164.

Impact Statements

Preliminary results from examination of integration of China's grain markets show that China's grain markets are integrated. As China enters the world grain markets, the inland farmers in China will be affected as much as their coastal counterparts.
In relation to experiences of grass seed market efforts in China, it was determined that increased business presence and commitment to developing guanxi relationships leads to increased sales of their product. In an examination of the organizational structure of food buying it was determined that as the informal structure of organizations gain in size, there is a shift from reliance on networks of bilateral trust towards a culture of institutional trust.
Analysis suggests that the welfare of Chinese farm households in rural communities can be further improved by eliminating the remaining institutional obstacles to expansion of migrant employment opportunities. Barriers to the movement of labor, capital and technology between urban and rural areas will prevent urban growth from spilling over to rural areas, reinforce and exacerbate regional disparities in income, and retard China's transition to a modernized middle-income country.
Using CAPSIM as a policy simulation, China's accession not only benefits major grain suppliers, including the US and Canada, but also provides opportunity to lower excessive domestic grains stocks.
Estimates suggest that China will substantially increase its imports of corn and wheat under liberalized trade in WTO.
Impact6. WCC-101 fosters greater understanding of China's potential as a customer and a competitor. Impact7. WCC-101 disseminates research on China's food and agricultural economy through its meetings, it published proceedings and its web site. Impact8. WCC-101 enhances the existing bi-national network of US and Chinese analysts. Meetings include business, US, Canadian and foreign representatives.

Date of Annual Report: 08/29/2003

Report Information

Annual Meeting Dates: 04/17/2003 - 04/18/2003
Period the Report Covers: 10/01/2002 - 09/01/2003

Participants

Bailey, Ken Orchard View Farms, the Dalles, Oregon;
Burlingham, George, Burlingham Seeds, Rickreal, Oregon;
Lane, David A. Nissho Iwai American Corp., Portland, Oregon;
Liu, Brian, Oregon Department of Agriculture;
Lyon, Jess, Davis Wright Tremaine LLP, Portland, Oregon;
McGregor, Mick, Burlingham Seeds, Rickreal, Oregon;
Mei, Jim, Davis Wright Tremaine, LLP, Portland, Oregon;
Miller, Tony, Sabroso Company, Cornelius, Oregon;
Reid, Matt, Sabroso Company, Medford, Oregon;
Szczepanski, John, Oregon Department of Agriculture;

Amponsah, William A. (Williama@ncat.edu) North Carolina A&T State University;
Cao, Xiaozhi(xiaozhi.cao@orst.edu) Oregon State University;
Chen, Weiyan(wayne-nju@yahoo.com) Oregon State University;
Chern, Wen S.(chern.1@orst.edu) The Ohio State University;
Crook, Frederick W. (fwcrook@thechinagroup.com) The China Group, Gt. Falls. VA;
Curtis, Kynda kcurtis@cabnr.unr.edu) University of Nevada Reno;
Durham, Cathy (cathy.durham@oregonstate.edu) Food Innovation Center, Oregon State;
Gilmour, Brad W. (gilmourb@agr.gc.ca) Agriculture & Agrifood Canada;
Howard, Bruce (howardb@agr.gc.ca) Agriculture & Agrifood Canada;
Koo, Won W. (wkoo@ndsuext.nodak.edu) North Dakota State University;
Li, Quan (li_quan_9@yahoo.com) Washington State University;
Moore, Riley (rmoore@stmartin.edu) St. Martins College, Olympia, WA;
Richmond, Nathan (RichmondNJ@hotmail.com) Washington State University;
Stermquist, Brenda (sternqui@msu.edu) Michigan State University;
Shulman, Ellyce(shulman@pdx.edu) Portland State University;
Sidwell, Brady(bradys@okstate.edu) Oklahoma State University;
Simpson, James (ryukokusimpson1@yahoo.com) Ryukoku University, Japan;
Yao-Stilwill(yaostilw@pdx.edu) Portland State University;
Wahl, Thomas I. (wahl@wsu.edu) Washington State University;
Weidner, Terry (weidnert@wsu.edu) Univ. of Missouri;

Brief Summary of Minutes

Minutes of the WCC-101 Business Meeting April 17, 2003

Cathy Durham, as Committee Chair, called the meeting to order. Minutes of the 2002 meeting were approved. Brenda Sternquist was elected as the Vice Chair & Secretary for the coming term.

Bryan Lohmar assumes the role of Chair for the coming term.

Cathy Durham assumes the role of Past Chair for the coming term.

Tom Wahl continues in his role as co-Chair and permanent head of the committee‘s secretariat, located at the IMPACT Center, Washington State University.

Brad Gilmour retires from his position (as Past Chair) on the executive, but agreed to continue participating as a conference organization team member.

4. The location and focus of the 2004 meeting was discussed. It is typical to have the meeting at a location convenient for a member of the executive as the executive also serves (with others) as conference organizers. Vice Chair Brenda Sternquist agreed to investigate holding the meeting at Michigan State University.

There was some discussion about the timing of the meeting. Some members would like to have the meeting earlier in the year, perhaps March. Others indicated that later in the year perhaps the end of May would work better for professional schedules.

Topics for the meeting ranged from rural education, rural development to specialization zones in areas. The topic of Market, Myths and Mavens was generally supported as being broad enough to draw a variety of interests.

Cathy Durham and Brad Gilmour noted that the first meeting announcement needs to be out in October to provide sufficient lead time for prospective presenters and attendees. If the announcement is to get into professional association newsletters and other media on a timely basis, it should be finalized and submitted to such associations by the 2nd or 3rd week of September. It was also noted that vigilance is warranted: the executive needs to remind professional associations to keep the notice in subsequent newsletters and media until the meeting and workshop have been convened.

As Chair, Bryan Lohmar will take the lead in notifying interested professional associations, industry, academics, and government officials about the workshop. He hopes to draw on the resources and support of his executive and conference team, USDA-ERS and the Impact Center in drawing up and disseminating the notice.

5. It was moved and seconded that the meeting be adjourned.

Submitted by Brenda Sternquist

Minutes Attachment:

Attachment

Accomplishments

An industry panel on Marketing Food and Agricultural Products in China was held as part of the WCC-101 Symposium. The speakers‘ presentations and discussions covered topics in exporting, distribution, business development, retailing, financial arrangements, phytosanitary rules, and government assistance for exporters. Panelists include a number of Pacific Northwest businessmen and China experts. These included Marc Cool of Barenbrug USA (a seed company); Bill Gilmour-Bank of America, Rob Russell-Strategic Ventures (a project management and marketing consulting firm), Buzz Chandler-Asean Corporation (exporter of North American processed foods to Asian markets) and John Szczepanski-Oregon Department of Agriculture. A presentation on retailing in China was made by panelist Brenda Sternquist from Michigan State University. A proceedings from the meeting is available in PDF format on the WCC-101 web site - http://www.china.wsu.edu. Multilateral Agricultural Negotiations: The Interests and Positions of China, the United States and Other Major Players. Brad Gilmour and Michael Swidinsky The authors review the main features and achievements of the Uruguay Round (UR) as well the challenges remaining. Using UNCTAD‘s Agricultural Trade Policy Simulation Model, the authors then assess the impacts of various provisions and proposals, focussing on the Harbinson Text and "Special and Differential"(S&D) provisions in particular. While the analysis suggests that developing country producers in aggregate do benefit from the S&D provisions analysed, it seems that some of the provisions better meet development objectives than others and that some even have deleterious effects. Speaking generally, consumers in developing countries are adversely affected by S&D provisions. As a rule, overall well-being in developing countries improves with S&D provisions that open up markets elsewhere but is adversely affected by S&D provisions that are "protective" in nature and result in fewer contested markets at home and abroad. WTO Market Opening in Agriculture: The Chinese Domestic Context. Terry Weidner - This paper examined the Chinese economic and political forces influencing China‘s market opening as a member of the WTO. China pledged not only to cut tariffs on virtually all agricultural products from the US, but to end a number of non-tariff practices such as import bans, illegitimate licensing demands and the manipulation of phytosanitary standards. However, enforcing these standards will result in grim consequences for thousands of Chinese rural localities in the northeast and interior which produce grain and other crops that cannot compete with developed countries. Market opening may be complicated by China‘s fears of social unrest and sensitivity to foreign pressure. An Analysis of the Lumber Products Trade Patterns between Shanghai and Washington State. Sheng Wang and Riley Moore - China had just 0.78 percent of the total world market share of U.S. exports of hardwood lumber in 1996, but by 2000, China had increased the amount to 4.41 percent, an increase of 6.5 times. With Hong Kong now part of China, China has become the second largest importer of U.S. hardwood lumber, after Canada. Opportunities for exports of U.S. forest products in the housing sector to China lie in the following areas: (1) Packaged housing projects and in-country 2x4 style housing continues to penetrate the market. (2) Chinese groups partnering with U.S. suppliers and technical support to build multi-story timber-frame housing and commercial structures. (3) Promotion of U.S. wood products to Chinese door and window manufacturers. Trends in China‘s Horticultural Trade - Persistent or Dynamic? Colin A. Carter and Xianghong Li - An abundant low cost rural labor force together with varied climate and topography gives China a strong comparative advantage in horticultural products. Vegetables, fruits and their processed products are the most important trade category. Eliminating the effects of some important macroeconomic factors, our analysis suggests that China‘s horticultural trade patterns have not changed much since 1988. After WTO accession, China‘s horticultural farmers will presumably have better prospects to expand output. With greater integration into world markets, China will be able to improve its financing and marketing skills. China‘s ability to provide high quality horticultural products will increase as a result and China could become a very competitive exporter in the world horticultural market. Segmenting Consumer Preferences toward GM Foods: Implications for China‘s Food Culture. Quan Li, Thomas I. Wahl and Jill J. McCluskey - China has only 7 percent of the world‘s cultivated land to feed 22 percent of the world‘s population. On a national basis, food expenses take 40 percent of Chinese family spending. The marketing outlook for GM foods, especially the products with health benefits, is positive. Keys to marketing GM foods in China can be summarized as follows: (1) The core market for GM foods is the knowledgeable consumers, who are better-educated younger people. (2) Product information about GM foods, either product-enhancing attributes or process enhancing ones, should be presented to consumers, who still do not have much knowledge. (3) Misunderstanding and ignorance of GM foods exists. The solution is education. Biotechnology learners know little about GM foods. But when they are presented with benefit information about GM foods, they are likely to change their attitudes. China Buyer-Supplier Relationships: The Influence of Ownership Type. Brenda Sternquist, Zhengyi Chen and Ying Huang - China is undergoing a transformation from a system of product allocation to a market based system, requiring that retailers assemble a line of goods likely to meet their customer‘s expectations. To understand how the buying system works in China‘s new marketplace, we analyzed data for three types of retail ownership: state-owned enterprises, privatized former state-owned enterprises and foreign joint ventures and organic enterprises. We conclude from preliminary data that the major differences in buyer-supplier relationships are not based on the three types of ownership, but other considerations. If our results are representative of the industry as a whole, the retail state-owned enterprises have been quick in adapting a market based organizational structure. Following China‘s Onions from Farm Gate to Retail. Fred W. Crook - After studying onion marketing efforts in the provinces of Gansu, Shandong and Henan provinces, we reached the conclusion that at present China‘s capacity to move farm products from farm gate to consumers is limited. (1) Current macro-economic policies are not conducive for firms providing the links. (2) Firms have a difficult time getting access to capital. (3) Weakness in the banking system. (4) Capital allocation system. (5) Weakness in the legal system-contracts, intellectual property rights. (6) Weak auditing and accounting systems. Westernization in China: A Case Study in Processed Potatoes. Kynda Curtis, Jill McCluskey and Thomas Wahl - The demand for western-style convenience foods is growing around the world, especially in China. To measure this westernization trend, data from a survey of Chinese consumers in Beijing is evaluated using a multinomial ordered logit model to determine which consumer attributes influence the probability of consuming western foods such as French fries, mashed potatoes and potato chips. Results show that higher income levels and positive opinions concerning the taste characteristics of western foods have a significant influence on increased consumption of all three processed potato products. Additionally, younger ages and female gender were highly significant indicators of increased French fry and potato chip consumption. Water Management Reform, Water Use and Income in the Yellow River Basin. Jinxia Wan, Zhigang Xu and Scott Rozelle - The overall goal of the paper is to better understand water management reform in China‘s communities. Based on a random sample of 51 villages, 189 farmers and 378 plots in four large irrigation districts in Ningxia and Henan provinces, results show that two of the main forms of water managements reform, Water User Associations and contracting, have begun to systematically replace traditional forms of collective management. When managers in reformed organizations are provided with incentives, they save water. Given China‘s concerns about national food production and poverty alleviation, the reductions in water do not lead to reductions in either production, income or higher incidences of poverty. Water Management Reform and the Choice of the Contractual Form in Rural China. Quiqong Huang, Scott Rozelle, Jinxia Wang and Siwa Msangi - In rural China, only 40% of the water allocated to irrigation is effectively used. Since the 1980s China policy makers have promoted water management reform. The current management forms found in China are: leader-run management system, share contracting system, and individual contracting system. Our analysis shows that in villages with canals that require a lot of maintenance, village leaders manage canals themselves. However, in villages in which the land is fragmented, leaders contract out irrigation services to individuals. Finally, when the leader is busy managing other activities in the village, leaders delegate responsibility for canal management to individuals. Long-term Projections of Bovine Meat in China: Focus on Production Potential. James R. Simpson - Projections to 2030 for China using the computer program ANFEEDPROJ include beef consumption supply per capita growing from 3.9 kg in the base period 1999-2001, to 5.5 kg in 2010, 6.5 kg in 2020 and 7.5 kg in 2030. Cattle inventory (including dairy cattle) will increase from 104 million head in the base period, to 123 million in 2010 and 2020, and to 128 million in 2030 under the scenario called "robust" in which it is assumed that the economy grows at 7.0 percent annually from the base to 2010, 5.5 percent annually from 2010 to 2020, and then 4.5 percent annually to 2030. It is concluded that China can basically meet its cattle feed requirements without additional feedstuffs imports, primarily due to the large proportion of crop residues fed to them. However, while imports of energy feeds for the entire livestock and fish sectors will not be required, potential protein shortfalls point to the need for significant imports if appropriate agricultural sector policy decisions are not taken. An Analysis of the Chinese Banking Industry and the Challenges Facing it after China‘s Accession to the WTO. Haitao Zhu and Riley Moore - The banking industry is a vital sector in China. During the 15 year negotiations on China‘s entry into the WTO, three years were devoted to the negotiations relating to the banking industry. Under WTO agreements, China will allow foreign banks to conduct foreign currency business involving Chinese clients beginning one year after accession, and to allow them to conduct wholesale Chinese currency business two years after that. Five years later, foreign banks will be able to offer individual services to Chinese citizens, and all geographic restrictions will be eliminated. Additional Accomplishments Attached to Minutes

Publications

Agribusiness and Food Marketing in China. Proceedings of WCC-101 Annual Meeting, April 17-18, 1003. Thomas I. Wahl and Cathy Durham eds. IMPACT Center Publications, Pullman, WA 99164

Impact Statements

An abundant low-cost rural labor force, together with varied climate and topography gives China a strong comparative advantage in horticultural products.
At present, China's capacity to move farm products from farm gate to consumers is limited.
Water management in China's rural communities is based on three systems: all are directed to more efficient use.
Based on long-term projections, China can meet its cattle feed requirements without imports. However, protein shortfalls point to the need for significant imports.
NASS and NBS are cooperatively using the MPPS sampling approach as a new design procedure for agricultural surveys in China.
Impact 6. WCC-101 provides a forum for China researchers in the private sector, USDA and universities to compare and share findings. Impact 7. WCC-101 encourages graduate students to present their findings and receive input from leading China researchers. Impact 8. WCC-101 fosters greater understanding of the future of agricultural trade between China and the US and the implications of China's accession to WTO.

Date of Annual Report: 06/30/2004

Report Information

Annual Meeting Dates: 04/19/2004 - 04/20/2004
Period the Report Covers: 10/01/2003 - 09/01/2004

Participants

Amponsah, William (williama@ncat.edu) North Carolina A&T;
Cheng Guoqiang, Development Research Center of the State, Beijing, China;
Chern, Wen (chern.1@osu.edu) The Ohio State University;
Crook, Fred (fwcrook@thechinagroup.com) The China Group;
Stephen Davies (Stephen.Davies@colostate.edu) Colorado State University;
Cathy Durham (cathy.durham@orst.edu) Oregon State University;
Carol Finnegan (finneg10@msu.edu) Michigan State University;
Jim Hansen (jhansen@ers.usda.gov) USDA, ERS;
Fred Gale (FGALE@ers.usda.gov) USDA, ERS;
Brad Gilmour (gilmourb@AGR.GC.CA) Ag Canada;
Bruce Howard (howardb@agr.gc.ca) Ag Canada;
Hongle Liao, Research Center for Rural Economy, Beijing, China;
Bryan Lohmar (BLOHMAR@ers.usda.gov) USDA, ERS;
Runsheng Yin (yinr@msu.edu) Michigan State University;
Donald Nugent, Nugent Farms, Frankfort, MI;
Willi Meyers meyersw@missouri.edu) University of Missouri;
Xuehua Peng Xuehua.Peng@uky.edu University of Kentucky;
Xiang Don Qin xdqin@sjtu.edu.cn Shanghai Jiao Tong University;
Scott Rozelle rozelle@primal.ucdavis.edu University of California, Davis;
Francis Tuan ftuan@ers.usda.gov USDA, ERS;
Thomas Wahl wahl@wsu.edu Washington State University;
Linxiu Zhang, CCAP/ACS, Beijing, China;
Zhang Guangsheng, Shenyang Agricultural University, China.

Brief Summary of Minutes

See Attachment

Minutes Attachment:

Attachment

Accomplishments

WCC-101 maintains a web site (www.china.wsu.edu) that provides access to current and past proceedings issues, provides a membership listing, and to announce meetings. The annual meeting and conference of the committee bring together China researchers and specialists from North America as well as China to present their research and discuss current and future issues affecting Chinese agriculture. The papers presented at the conference are assembled into edited proceedings that are published on the website as well as being available in hard copy on request. Proceedings of past meetings continue to be in demand. The conferences provide an opportunity for members to informally discuss their research to find common interests and projects. Committee members have also organized symposiums on China at national meetings of the American and Western Agricultural Economics Associations. These meetings have been very well attended and have provided a forum to further extend the research of the group. In 2004, a conference China's Agricultural Sector: Markets, Myths and Mavens was held April 19-20 at Michigan State University. The conference was attended by 23 academics from the US, Canada, and China; researchers from the Economic Research Service (ERS) of USDA; and several industry consultants. A number of the presentations were made by graduate students on their research. The proceedings of the conference are available on our website. Eight members of the committee organized a symposium Modeling and Forecasting Issues in Chinas Agricultural Economy at the annual AAEA meetings. A grant proposal to fund a committee meeting was submitted to NRI, but unfortunately was not funded.

Publications

Changes in China's Agricultural Sector: Trade, Market and Policy Reform. Proceedings of 2002 meeting, edited by Thomas Wahl, Bryan Lohmar and Brad Gilmour. Agribusiness and Food Marketing in China. Proceedings of 2003 meeting, edited by Thomas Wahl and Cathy Durham. China's Agricultural Sector: Markets, Myths and Mavens. Proceedings of 2003 meeting, edited by Thomas Wahl and Brenda Sternquist. Carter, C.A. "Research on Institutional Reform and Agricultural Productivity Growth in China," in A. Watson and C. Findlay (eds) Food Security and Economic Reform: The Challenges Facing China's Grain Marketing System. London: MacMillan, 1999. Carter C.A. and F. Zhong. "Rural Wheat Consumption in China" American Journal of Agricultural Economics, Vol. 81, No. 3, August 1999. Carter, C.A. and A. J. Estrin. "Market Reforms Versus Structural Reforms in Rural China," Journal of Comparative Economics, 29, 3, September 2001. Carter, C.A. "China's trade Integration and Impacts on Factor Markets in China's Agriculture in the International Trading System," Paris: OECD, 2001. Carter, C.A., and S. Rozelle. "Will China Become a Major Force in World Food Markets?"Review of Agricultural Economics, Vol. 23. No.2, 2001. Carter, C.A., and X. Li. "Implications of WTO Accession for China's Agricultural Trade Patterns," Australian Journal of Agricultural and Resource Economics , Vol. 46, No. 2, June 2002. Carter, C.A. and B. Lohmar. "Regional Specialization of China's Agricultural Production," American Journal of Agricultural Economics, Vol. 84, No. 3, August 2002. Carter, C.A., J. Chen and B. Chu. "Agricultural productivity growth in China: farm level versus aggregate measurement," China Economic Review Volume 14, Issue 1, 2003, Pages 53-71. Chern, W.S., C.A. Carter, and S. Shei (editors). "Food Security in Asia: Economics and Policies," Northampton: Edward Elgar, 2000. Curtis, Kynda R., Jill J. McCluskey, and Thomas I. Wahl. "Is China the Market for GM Potato Products?" AgBioForum. 5(4)(2003):175-178. Felloni, Fabrizio, John Gilbert, Thomas Wahl, and Philip Wandschneider. "Trade Policy, Biotechnology, and Grain Self-Sufficiency in China." Agr. Econ. 28(2003):173-186. Fuller, Frank, John Beghin, Stéphane De Cara, Jacinto Fabiosa, Cheng Fang, and Holger Matthey. "China's Accession to the WTO: What Is at Stake for Agricultural Markets?" Review of Agricultural Economics, 25(Fall/Winter 2003):399-414. Fuller, Frank, Dermot Hayes, and Darnell Smith. "Reconciling Chinese Meat Production and Consumption Data." Economic Development and Cultural Change, 49(October 2000):23-43. Gilbert, John and Thomas Wahl. "Agricultural Liberalization Beyond Uruguay: US Options and Interests," in Global Agricultural Trade in the New Millenium, Edited by P. Lynn Kennedy and Won Koo, Food Products Press, 2002. Gilbert, John and Thomas Wahl. "Applied General Equilibrium Assessments of Trade Liberalization in China." The World Economy. 25(5):697-731 (2002). Han, Tong, Thomas I. Wahl, and Ron C. Mittelhammer. "The Effect of Self-Sufficiency on Fruit and Vegetable Consumption of China's Rural Households." Rev. Agric. Econ. 23 (2001):176-184. Hansen, J., F. Fuller, and H.-H. Hsu. "Sources of Discontinuity and Uncertainty in Chinese Agricultural Data." In the Papers and Proceedings of the 12th Federal Forecasters Conference 2002. Debra E. Gerald (ed.), Washington, D.C.: U.S. Department of Education, 2003, pp. 335-343. Hansen, J., F. Fuller, F. Gale, F. Crook, E. Wailes, and M. Thomas. "China's Japonica Rice Market and Competitiveness in Asian Markets," In Rice Situation and Outlook Yearbook. United States Department of Agriculture, Economics Research Service, (November 2002):32-37. He, Xiurong and Thomas I. Wahl. "China's Agricultural Trade: 1980 to 2000," China's Rural Economy, (In Chinese) 6(2002):9-14. Hu, Dinghuan, Frank Fuller, and Thomas Reardon. "The Impact of the Rapid Development of Supermarkets on the Dairy Industry in China." (In Chinese) Chinese Rural Economy, 7(Serial No. 235), 2004:12-18. Li, Quan, Kynda R. Curtis, Jill J. McCluskey, and Thomas I. Wahl. "Consumer Attitudes Toward Genetically Modified Foods," in Beijing, China. AgBioForum. 5(4)(2003):141-152. Wahl, Thomas I. and Tong Han. "China's Rural Household Purchasing Decisions for High-Valued Food Products: Implications for the U.S. Food Industry," Published in Agricultural Trade and Policy in China: Issues, Analysis and Implications, Edited by Scott D. Rozelle and Daniel A. Sumner, Ashgate Press, 2003. Zhao, Fengqin, Thomas Wahl, and Holly Wang. "Trade Liberalization under China's WTO Accession: Implications for China's Market in the New Century," in WTO and the Challenges China Faces in the New Century. Edited by James Wen, The Peoples University Press, Beijing, China, August 2002. Proceedings: Wahl, Thomas I. and Dan Sumner. "Agricultural Trade with China in the New Economic and Policy Environment." Proceedings of the April 2001 meeting of WCC-101, IMPACT Center, Washington State University, Pullman, June 2001. Wahl, Thomas I. and Frank Fuller. "Chinese Agriculture and the WTO." Proceedings of the December 1999 meeting of WCC-101, IMPACT Center, Washington State University, Pullman, December 1999. Wahl, Thomas I. and Colin Carter. "China's Role in World Food Markets." Proceedings of the February 1999 meeting of WCC-101, IMPACT Center, Washington State University, Pullman, August 1999.

Impact Statements

WCC-101 helps develop and enhance skills and experience on Chinese agriculture.
WCC-101 promotes and enhances international collaboration.
WCC-101 has provided graduate students with presentation opportunities.
WCC-101 promotes graduate education.
WCC-101 provides opportunities for networking and collaborative research development.

Date of Annual Report: 01/05/2006

Report Information

Annual Meeting Dates: 04/25/2005 - 04/26/2005
Period the Report Covers: 10/01/2004 - 09/01/2005

Participants

Bai, Junfei (junfei_bai@wsu.edu), Washington State University;
Blanke, Amelia (blanke@primal.ucdavis.edu) University of California, Davis;
Chern, Wen (chern.1@osu.edu) The Ohio State University;
Crook, Fred (fwcrook@yahoo.com) The China Group;
Curtis, Kynda (kcurtis@cabnr.unr.edu) University of Nevada, Reno;
Fuller, Frank (ffuller@iastate.edu) Iowa State University;
Guo, Jianjun, State Council, PRC;
Hansen, James (jhansen@ers.usda.gov) USDA, ERS;
Hochsprung, Charli (charli@wsu.edu) Washington State University;
Howard, Bruce (howardb@agr.gc.ca) Ag Canada;
Huang, Qiuqiong (huang@primal.ucdavis.edu) University of California, Davis;
Lohmar, Bryan (BLOHMAR@ers.usda.gov) USDA, ERS;
Marchang, Mary (mmarchan@uky.edu) University of Kentucky;
Meyer, Seth (erse@missouri.edu) University of Missouri;
ORourke, Desmond (belrose@pullman.com) Belrose, Inc.;
Paggi, Mechel (mpaggi@csufresno.edu) California State University Fresno;
Peng, Xuehua (xpeng3@uky.edu) University of Kentucky;
Schmitz, Andrew (ASchmitz@mail.ifas.ufl.edu) University of Florida;
Seale, Jim (jseale@ifas.ufl.edu) University of Florida;
Simpson, James (jamessimpson@gmail.com) Ruykoko University, Japan;
Smith, Rodney (smith142@umn.edu) University of Minnesota;
Snyder, Steve (lobaye1985@yahoo.com) The Ohio State University;
Song, Baohui (bsong2@uky.edu) The University of Kentucky;
Sternquist, Brenda (sternqui@msu.edu) Michigan State University;
Tuan, Francis (ftuan @usda.gov) USDA, ERS;
Uchida, Emi (emi@primal.ucdavis.edu) University of California, Davis;
Wasylyshen, David (wasylyshend@agr.gc.ca) Ag Canada;
Xu, Xiaoquing, State Council, PRC;
Yang, Weilu, National Grain Burean, PRC;
Zhang, Jian (jian@primal.ucdavis.edu) University of California, Davis;
Zhou, Shudong, Nanjing Agricultural University, PRC;
Dong Sheng Sun, CASS, PRC;
Xue Lei Jiang, CASS, PRC;

Brief Summary of Minutes

The annual meeting of WERA-101 was held at the University of Nevada-Reno, April 25-26, 2005. Following procedure, Jim Hansen of USDA, ERS, will move into the Chair position for 2006. Kynda Curtis of University of Nevada, Reno was elected Vice-chair.

There was discussion of the status of the renewal petition - Charli Hochsprung reported that no information is available yet.

Brenda Sternquist reported that the proposal for NRI funding for a meeting in Beijing had been turned down. However, she will reapply in the next founding round. Jim Hansen volunteered to organize the spring 2006 meeting in the Washington DC area. He will work with Charli Hochsprung on details.

Possible theme ideas for 2006 meeting include: Biotechnology; Changes in consumption habits (demand); Current issues with farm policy (biotech, land); China, changes in attitude, changes in latitude; Changes in Climate in China; and Effect of WTO and other trade issues.

Discussion was held about the proceedings for the WERA-101 meetings. Because of the labor and expense involved in hard copy proceedings, it was decided to go with a totally web-based version. The papers are due May 15 for inclusion in the proceedings.

Other items: Brenda Sternquist asked that an email attendance list be provided to enable attendees to further interact. She also requested that PowerPoints be converted to pdf format before posting to the web, so their contents cannot be used by others.

The meeting was adjourned.

Executive and Secretariat Members, Sub-Committee for 2004-05

Chair: Brenda Sternquist (MSU)

Vice Chair: Jim Hansen (ERS)

Secretariat Head, Permanent Co-Chair: Tom Wahl (WSU)

Past Chair: Bryan Lohmar (ERS)

Conference Coordinator: Kynda Curtis (UNR)

Secretariat Administrator: Charli Hochsprung (WSU)

Secretariat Web-Master: Brenda Campbell (WSU)

WCC-101 Renewal Lead: Bryan Lohmar (deputy is Brad Gilmour)

NRI Submission Lead: Brenda Sternquist (deputy is Tom Wahl)

Communications and Outreach Co-Leads: Brad Gilmour (AAFC) and Tom Wahl

Executive and Secretariat Members, Sub-Committee for 2005-06

Chair: Jim Hansen (ERS)

Vice Chair: Kynda Curtis (UNR)

Secretariat Head, Permanent Co-Chair: Tom Wahl (WSU)

Past Chair: Brenda Sternquist (ERS)

Conference Coordinator: Jim Hansen

Secretariat Administrator: Charli Hochsprung (WSU)

Secretariat Web-Master: Brenda Campbell (WSU)

NRI Submission Lead: Brenda Sternquist (deputy is Tom Wahl)

Communications and Outreach Co-Leads: Brad Gilmour (AAFC) and Tom Wahl

Accomplishments

The annual meeting and symposium of the committee brings together China researchers and specialists from the U.S. and Canada as well as from China to present their research and discuss current and future issues affecting Chinese agriculture and trade with China. The papers presented at the conference are assembled into proceedings that are published on the WERA-101 website (www.china.wsu.edu). The conferences provide an opportunity for members to discuss their research to find common interests and collaborative projects. Committee members have organized symposia on China at meetings of the American and Western Agricultural Economics Associations and the annual meeting of the International Agricultural Trade Research Consortium. In 2005, a conference, China's Agri-Food Value Chain: Opportunities and Challenges, was held April 25-26 at the University of Nevada, Reno. The conference was attended by 38 academics from the U.S., Canada and China; researchers from the Economic Research Service of USDA; and several industry consultants. A number of presentations were made by graduate students on their research. The proceedings are available on the WERA-101 website.

Publications

Carter, C.A. and A. Estrin "Opening of China's Trade, Labor Market Reform and Impact on Rural Wages." TheWorld Economy Vol 28., No 6., June 2005. Carter, C.A. and X. Li "Trends in China's Horticultural Trade" Journal of International Agricultural Trade and Development. Vol 1, No1. 2005. Fuller, Frank, Jikun Huang, Hengyun Ma, and Scott Rozelle. 2005. "The Rapid Rise of China's Dairy Sector: Factors Behind the Growth in Demand and Supply" Center for Agricultural and Rural Development, Iowa State University, Working Paper 05-WP 394, May. Fuller, Frank and Hu Dinghuan. Forthcoming. 2005. "Dairy Products in Southwestern China: Anecdotal Evidence from Kunming." In China's Agri-Food Value Chain: Opportunities and Challenges, Proceedings of the WERA-101 Annual Meetings, Reno, Nevada, April 25-26. Hu, Dinghuan, Frank Fuller, and Thomas Reardon. 2004. "The Impact of the Rapid Development of Supermarkets on the Dairy Industry in China." (In Chinese) Chinese Rural Economy, 7(Serial No. 235):12-18. Fuller, Frank, John Beghin, and Scott Rozelle. 2004. "Urban Demand for Dairy Products in China: Evidence from New Survey Data." Center for Agricultrural and Rural Development, Iowa State University, Working Paper 04-WP 380, November. Simpson, James R. and Ou Li. (Long-term Projections of Chinas Ability to Feed Itself: Technical and Policy Analysis.) Jingji Yanjiu (EconomicResearch Journal), Volume 5, 2004, pp 76-87. (in Chinese). Simpson, James R. (Long-term Projections of Livestock Productivity in China. Part 1 Small Animal Improvement of Livestock Productivity). (Nourinkeizai) September 30, 2004. Pp 2-5. (In Japanese). Simpson, James R. 2 (Long-term Projections of Livestock Productivity in China. Part Cattle and Large Animals). (Nourinkeizai) October 4, 2004. Pp 2-5. (In Japanese). Simpson, James R. 3 (Long-term Projections of Livestock Productivity in China. Part Feedstuffs Production and its Use). (Nourinkeizai) October 7, 2004. Pp 6-9. (In Japanese). Simpson, James R. Qi Hongwei, Su Xiuxia and Li Fuping. Milk Production Cost on a Well-managed Medium Size Dairy Farm in Gongzhuling, Jilin Province, China in 2004. Kokusaibunka Kenkyuu (Intercultural Studies) , Vol. 9, 2005, pp 99-108. (in English). Simpson, James R., Ou Li and Fuping Li and Yoshio Kawamura. Structural Analysis of Tibetan Minority Pastoralists in the Qinghai Plateau Area of Sichuan Province of China. (Society and Culture: Journal of the Socio-Cultural Research Institute, Ryukoku University,) Vol. 7, March 2005, pp 253-266 (in English). Sternquist, B. and Z. Chen (accepted subject to revisions) Food retail buyer behavior in People's Republic of China: A model from grounded theory. Qualitative Market Research: An International Journal.

Impact Statements

WERA-101 helps develop and enhance skills and experience on Chinese agriculture and trade.
WERA-101 promotes and enhances international collaboration.
WERA-101 provides graduate students with presentation opportunities.
WERA-101 promotes graduate education.
WERA-101 provides opportunities for networking and collaborative research development.