The project in China will offer information and communications technology and information system across Gansu province
Image: ADB to support agriculture modernisation project in China. Photo: Courtesy of the Asian Development Bank.
The Asian Development Bank (ADB) has agreed to provide $130.77m (£105m) loan for a project in China, which can help in connecting cooperatives, small firms, and farmers into food processing and marketing chains.
The funding from ADB will help in modernising and revitalising agriculture across seven prefectures in Gansu province.
The Gansu Internet-Plus Agriculture Development Project is expected to offer an agricultural service system, information and communications technology (ICT) and information system support across Baiyin, Dingxi, Jiuquan, Lanzhou, Tianshui, Wuwei, and Zhangye prefectures in Gansu province.
As a significant contributor to Gansu’s economy, agriculture accounted for 13.7% of the province’s gross domestic product (GDP) in 2017. But, the GDP per capita at $4,417 (£3,560) per year is one of the lowest in the PRC, said ADB.
The project could strengthen the entire value chain from production to marketing
The project will apply network-connected information technology along the entire value chain, from production to marketing, enhancing market access through two-way automated information exchange system between farmers and consumers.
The approach offers production information for consumers, while farmers will get access to market information and production support services, thereby, have a chance to improve livelihoods by accessing high-value markets.
ADB East Asia senior natural resources economist Jan Hinrichs said: “ADB’s assistance to this project will help demonstrate the benefits of integrating ICT into more traditional sectors like agriculture.
“Enhancing product safety and reducing environmental pollution will benefit Gansu and the Asian region more broadly.”
The project also builds on the lessons from previous projects by ADB and others in the region. Such projects in the past have helped farmers and agribusiness producers to finance long-term investment that can help in increasing production, boosting productivity and improving access to new markets.
The project will also work to build skills at the Gansu Supply and Marketing Cooperatives Union to be able to oversee precision agriculture, modern marketing programs, quality control and product traceability.