Agriculture

WORK OF THE AGRICULTURE BRANCH

The objectives of the branch are:

To provide basic agricultural infrastructure and technical support for the development of modern, efficient and environmentally-friendly farming;
To ensure the adequate provision at and efficient operation of the government’s wholesale marketing facilities for fresh food produce;
To supervise credit unions and co-operatives and regulate these bodies through audit and examination of their accounts;
To license livestock farms and implement voluntary schemes for pig and poultry farmers to surrender their licences and cease business permanently; and
To provide administrative support to the Vegetable Marketing Organisation.

THE AGRICULTURE INDUSTRY

Agriculture in Hong Kong is undertaken mostly in the urban fringes. Currently, only 19 square kilometres out of the territory’s 1 104 square-kilometre land area are farmed. About 6 400 farmers are engaged in agriculture.

The local agricultural industry involves producing quality fresh food through intensive land use and modern farming practices. Despite its relatively small size, the industry produces a substantial amount of vegetables, poultry and pigs. Local agricultural production in the years 2005 and 2006 were both valued at about $1.18 billion. Statistics on agricultural production, fresh foodstuff consumption and agricultural land utilisation are at Appendices 1 to 3.

Vegetable crops grown year-round include Chinese white cabbage, flowering Chinese cabbage, lettuce and celtuce. Long bean, water spinach, Chinese spinach, cucumber and several species of Chinese gourd are produced in summer, while spinach, watercress, Chinese kale and matrimony vine are grown in the cooler months.

Orchids and ornamental plants are now grown all year round. Dahlia, chrysanthemum, lily and gladiolus are grown in winter, while ginger lily, lotus flower and sunflower are grown in summer. Peach blossom is grown specially for the Lunar New Year season.

PREMIUM VEGETABLES

General

The Department continues to promote the cultivation of premium vegetables to serve niche markets and help farmers gain better economic returns. A variety of red flesh water melon and three improved varieties of vegetable i.e. silky gourd, Nangfeng leaf mustard and Sze Kau Chinese flowering cabbage were introduced to farmers for production.

Accredited Farm Scheme

The Department has been running a voluntary Accredited Farm Scheme since 1994. Under the Scheme, the Department advises participating farmers on the proper and safe use of pesticides; monitors their horticultural practice and samples their vegetables for pesticide residues analysis. Accredited farmers market their vegetables through the Vegetable Marketing Organisation (VMO) which distributes vegetables to designated retail outlets including wet market stalls and supermarkets. To enable easy identification by the public, every designated outlet carries a logo of VMO “Accredited Retailer”.

As at March 2007, 180 local farms covering a total area of 69 hectares and 35 vegetable farms operating by Hong Kong farmers in Guangdong covering 1 786 ha had been accredited. There were also 250 accredited retail outlets located in different districts to provide consumer easy access to accredited vegetables.

Organic Farming

Since December 2000, the Department has been helping local farmers with their shift towards organic farming practices. Knowledge, technical support and low-interest loans are provided to farmers, while the Vegetable Marketing Organisation assists farmers in selling their organic produce through its established sales channels.

Up to March 2007, 80 farms covering a total area of 35.5 hectares had joined the Department’s “Organic Farming Support Service”. Together, they produce about three tonnes of organic vegetables per day, including vegetable varieties such as lettuce, white cabbage, flowering cabbage, water spinach, Chinese spinach, Chinese kale, Garland chrysanthemum, egg plant, bitter cucumber, wax gourd, yard-long bean, cherry tomato and carrot.

The Department also actively supports the Hong Kong Organic Resource Centre (HKORC), a non-profit organisation co-founded by the Hong Kong Baptist University, the Hong Kong Organic Farming Association and the Produce Green Foundation, to develop and implement certification standards for organic production and processing in Hong Kong. Since the launch of this organic certification service in late 2004, 25 farms and 1 processing company have been certified.

AGRICULTURAL STRUCTURES

Greenhouses

Controlled-environment greenhouses are built with transparent plastic films or polycarbonate sheets to provide an enclosed environment that enables the regulation of temperature, humidity and intensity of light for the optimal production of crops. To further increase productivity, advanced greenhouses are often equipped with automatic irrigation, fertilisation and/or spraying systems as well.

The Department has adapted greenhouse technology to local conditions and extended it to farmers through seminars and demonstrations for the intensive production of high value crops, such as white bitter cucumber, rock melon, edible fungus, edible white chrysanthemum and lily. Newsletters are published regularly to update farmers the latest developments and an electronic version is also available on the Department’s website.
(http://www.afcd.gov.hk/english/agriculture/agr_ceg/agr_ceg_new/agr_ceg_new.html)

Letters of Approval

Under the terms and conditions of land grants, a farmer who wishes to build an agricultural structure (greenhouse, livestock shed, hatchery, fish pond or store room) on leasehold agricultural land must apply to the Lands Department for a Letter of Approval for Agricultural Structures. To facilitate applications by farmers, the AFCD has streamlined procedures with the Lands Department and taken up the responsibility for assessing such applications. During 2006-07, the Department processed 28 applications covering 85 agricultural structures. Some 6 greenhouses and 18 other structures were also granted appropriate approval from the Lands Department.

SUPPORT AND ASSISTANCE

Agricultural Support Services

The Department promotes the return of fallow land not earmarked for development to cultivation by helping farmers arrange land tenancy, improving soil conditions, and providing marketing facilities and farm road access. During 2006-07, 2.71 hectares of such rehabilitated agricultural land were serviced. The Department responded to 5 804 technical inquiries related to agricultural production or development and conducted 303 field investigations in connection with irrigation and other agricultural matters.

Agricultural Credit

The Department operates the Kadoorie Agricultural Aid Loan Fund, the J.E. Joseph Trust Fund and the Vegetable Marketing Organisation Loan Fund to meet farmers’ credit needs. A total of $14.59 million was lent to farmers during 2006-07, including 69 loans totalling $3.78 million to crop farmers; 87 loans ($7.199 million) to livestock farmers; 9 loans ($0.775 million) to pond fish farmers; 24 loans ($2.40 million) to mariculturalists and 5 loans ($0.44 million) to agricultural co-operative societies.

Emergency Relief Operations

Emergency relief grants are issued to needy farmers who suffer from natural disasters. Grants totalling $4.67 million were distributed to 1 521 farmers during 2006-07.

FRESH FOOD WHOLESALE MARKETS

The Department manages four government wholesale food markets, providing some 2 600 trading stalls and related ancillary facilities. Altogether, these markets provide some 38% of the fresh food items (vegetables, freshwater fish, eggs, fruits and live poultry) consumed by the community. Appendix 14 gives details of the market throughput in these wholesale markets.

In May 2006, the Department introduced an entry registration system in the Cheung Sha Wan Wholesale Food Market and Western Wholesale Food Market. Under the system, all market users and visitors are required to show either a Market Entry Permit or have their name, identity card number and purpose of visit recorded on entering the markets. The measure is aimed at deterring unscrupulous people from using the market for unlawful activities, and to facilitate normal trading activities and market management.

VEGETABLE MARKETING ORGANISATION

The Vegetable Marketing Organisation (VMO) is set up under the Agricultural Products (Marketing) Ordinance, Cap. 277 as a non-profit making concern to provide facilities for the orderly and efficient marketing of vegetables. The organisation charges wholesalers a commission of up to 10% of the total value of sales for providing trading facilities, accounting and pesticide residue testing services. Its surpluses are used to support agricultural programmes and development projects. The VMO Loan Fund provides credit facilities to farmers, and the Agricultural Products Scholarship Fund promotes education and training in agriculture.

LIVESTOCK FARM LICENSING

Since the implementation of the Livestock Waste Control Scheme in 1994, all livestock farms must hold a Livestock Keeping Licence (LKL) to continue the keeping of livestock. In order to obtain an LKL, the farmer must install appropriate waste treatment facilities that meet minimum discharge standards. An LKL also contains provisions relating to the protection of public health and includes conditions relating to the control and prevention of animal diseases, such as avian influenza. All licenced livestock farms are inspected regularly, particularly those suspected of discharging waste illegally or where waste treatment practices have caused a nuisance to surrounding communities. Action is also taken against farmers who keep livestock illegally.

To reduce the risk of avian influenza outbreaks in Hong Kong, we implemented a one-year voluntary scheme in August, 2005 for poultry farmers to surrender their LKL and cease business permanently in exchange for the grant of an ex-gratia payment. The scheme ended in August, 2006, and 140 out of the original 192 poultry farms had their LKL surrendered under the scheme. The Department processed the applications and introduced to the farmers the possibility of switching to premium crop farming.

With the rapid urbanisation of the New Territories, pig farming has brought about public health and pollution concerns. To encourage pig farmers to give up their business, a one-year voluntary scheme was implemented in June, 2006 for those who opt to surrender their LKL and cease business permanently in exchange for the grant of an ex-gratia payment. During 2006-07, 139 applications from pig farmers (265 pig farms in total originally) were received. The scheme ended in May, 2007.

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