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PRIMARY PRODUCTION

AGRICULTURE in Hong Kong is a comparatively small sector, in a territory which is characterised by rapid urbanisation.

Farming is largely undertaken on the urban fringes and only about four per cent of the land area is under cultivation. In 1994, local farm production accounted for 25 per cent of vegetables, 27 per cent of live poultry, six per cent of live pigs, 13 per cent of freshwater fish and 69 per cent of all live and fresh marine fish consumed. To a certain extent, the competitiveness of local farm produce acts as a buffer against price increases of imported foodstuffs, and therefore plays a role in maintaining the stable and relatively low cost of living which has been essential to the territory's economic growth.

Each day, Hong Kong people consume about 940 tonnes of rice, 1000 tonnes of vegetables, 7 580 pigs, 370 head of cattle, 270 tonnes of poultry, 500 tonnes of fish and 1 640 tonnes of fruit. About 40 per cent of Hong Kong's food requirements are imported from China.

The Hong Kong government does not give direct subsidies to the local agricultural industry or attempt to protect it from the free operation of market forces. It does, however, provide a variety of infrastructural and technical support services to facilitate local agricultural development.

The Agriculture and Fisheries Department is responsible for the implementation of government policies on agriculture and fisheries. The department provides infrastructural support services to enhance agricultural productivity and to promote modern, efficient, safe and environmentally acceptable farming. These include wholesale market facilities, irrigation and drainage works, technical and development advice, the administration of agricultural loan funds, and agricultural development programmes such as the accredited farm scheme and agricultural land rehabilitation scheme.

Local production statistics are given at Appendix 25.

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The Agricultural Industry

With scarce land resources, local agriculture is directed towards the production of fresh food of high quality through very intensive land use. Production efforts are aimed mainly at high-value, perishable foods.

The most common crops are vegetables and flowers, although a small quantity of fruit and other high-yield field crops are also grown. About 1 600 hectares of land were under

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