Chinese agriculture heads for online sales - report

Moreover, the number of vendors selling agricultural produce over the internet grew from 394,000 in 2013 to 750,000 in 2014, according to a report issued by Alibabas market research subsidiary AliResearch, wantchinatimes.com reports.

Liu Wenkui, secretary-general of China Foundation for Poverty Alleviation, said ecommerce can help small farmers organise and build scaled production so that they can grow better produce and establish brands for their wares. As of early December 2014, online sales had accounted for a quarter of the 100 tons of kiwi fruit Li sold, and his profits through the internet were USD 0.65 - USD 1 (CNY 4 - 6) higher per kilo than he had made in the past.

Wang Xiangdong, director of the Research Center of Information at the Chinese Academy of Social Sciences, added that the adoption of ecommerce also gives farmers better knowledge about the wider market. The internet can let farmers know price trends in other places, which gives them better bargaining power with wholesalers.

Alibaba has announced a USD 1.6 million (CNY 10 billion) plan to develop ecommerce in Chinas rural regions, while rival Jingdong Mall is also expanding operations in inland regions. Challenges facing these online platforms selling fresh produce include the logistics of delivering perishable goods quickly and the time required to build and establish markets.

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