On the whole, grain price increases in the first half of 2004 remained strong. Thanks to good yields of summer crops, early rice and seasonal factors, grain prices have shown a downward trend since May.

In the first half of this year, energy production and demand continue to grow rapidly. Energy prices rise by a big margin.

The sand industry in the 3 North-China regions is fast growing, which is assumed beneficial to both eco-system protection and economic development.

Both energy production and consumption maintained rapid growth in the first quarter of 2004. In some areas, the supply of electricity was still short of demand; in coal market weak supply faced an excessive demand, and price rising was overwhelming.

Domestic grain price shot up in the first quarter. It is predicted to rise continuously in the second quarter with variations among different items, and will be kept stable at a high level in the year.

The wild-life based industry has been growing rapidly in recent years. The development of this industry is of significant importance in China; however lacking of knowledge on this particular industry and defects in the industrial management has lead to negative impacts on the ecological environment and public health.

The rapid expansion of intensive livestock and poultry farms has caused increasingly serious pollution, which becomes a threat to the environment and the health of people.