The rural economy has been operating smoothly in the first half of 2002 with continual adjustment of agricultural structure, good export performance and improved policy environment.

Steady performance has been the main feature of the rural economy and the market of farm products in the first half of the year.

As a main area for production of grain, Jiangxi province has in recent years aggressively explored the reform in its grain circulation system and made important progress in liberalizing the market for sales and purchase of grain.

As the first province to have carried out the market-oriented reform in the grain circulation system, Zhejiang province has successfully switched to a new system.

The operating environment for rural economy in 2001 was better than the year before. The internal structure of the rural economy continued to experience adjustment, the prices of agricultural products rose somewhat, and farmers' income posted growth as a recovery.

The southern part of China has superior natural endowment, but the livestock industry is predominantly featured by pigs, which feed on grain.

With an altitude of 3000 to 5000 meters, the pastoral land covers an area of 2 billion Mu and is featured by high altitude, vastness, drought and coldness.