ENG-2001 — Page 187

CHAPTER 8

Primary Production

AGRICULTURE and fisheries industries are relatively small sectors in Hong Kong. Farming is largely undertaken in the New Territories and just 2.3 per cent of the land area is under cultivation. During the year, the total production of the industries was valued at $3,132 million. It accounted for 6 per cent of vegetables, 48 per cent of cut flowers, 24 per cent of live pigs, 21 per cent of live poultry, 6 per cent of freshwater fish and 47 per cent of live and fresh marine fish sold locally. Approximately 20 400 people were employed directly in the industries.

The Government does not give direct subsidies to the local agriculture and fisheries. industries or attempt to protect them from the free operation of market forces. However, the Agriculture, Fisheries and Conservation Department (AFCD) provides infrastructural and technical support to facilitate the development of the industries, including provision of wholesale marketing facilities, extension, technical and diagnostic services, and administration of agricultural and fisheries loans to enhance their productivity and competitiveness.

The overall output of local farms has remained relatively stable over the past three years. Local production statistics are given in the Appendices.

The Agriculture Industry

Local agriculture is directed towards the production of high quality fresh food crops through intensive land use. Overall, the most common crops cultivated are vegetables and cut flowers, and production was valued at about $363 million in 2001. Pigs and poultry are the principal animals reared for food and the value of locally produced pigs amounted to $619 million and that of poultry, including chickens, pigeons and quails, to $241 million.

Agricultural Development

As a result of limited supply of farm land and labour, competition from imports, raised environmental standards and calls for improved farm hygiene and safe produce, the local agriculture industry has to adapt rapidly to sustain its long-term development.

Crop farmers are encouraged to target specific niche markets by cultivating safe quality vegetables. To help farmers capture these specific niches, the AFCD initiated an organic farming conversion programme in two local farming districts. A close working relationship has been maintained with the local organic farming industry and the Vegetable Marketing Organisation to develop organic farming and the market for organic vegetables in Hong Kong. The AFCD also completed studies on

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