This year, affected by cheaper imported longans from neighboring Thailand, the price of the local fruit has slumped to 0.6 yuan (7 US cent) per kilogram, its lowest in a decade, despite three successive good harvests.

And it is not just the farmers on the front line who are acutely aware of the problem. Chen Jiyuan, former head of the Institute of Rural Economic Development under the Chinese Academy of Social Sciences said the thing that really concerns the country is how to increase farmers' income in the face of agricultural price falls.

As a pilot city of Chinese reform and open-up policies, Xiamen fruit traders have had to compete with imported goods for the past 10 years.

"Chinese farmers should try to adapt their production to the overseas market as early as possible, and only by doing this can they possibly survive the intense competition that will soon arrive," said Chen.

To improve the quality and competitiveness of products, farmers in Jiangsu, Zhejiang, Guangdong and Fujian - all economic powerhouses in the country - have demonstrated an increased awareness of market competition, coupled with a strong desire to use advanced technology.

Some institutions are making global agricultural yield predictions to help farmers readjust production plans.

(China Daily November 27, 2002)