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Cultivated land is continually being lost to urban and industrial use. China accounts for 20% of the world's population but only 7% of the arable farmland. Moreover, the population is growing while the land is shrinking.

Meanwhile, the Chinese diet is changing. Recent years have seen an increase in variety and greater consumption of highter-priced products. More meat, more imports, more western fast foods, more high-value foods. Allowed greater leeway, farms are shifting from producing grains to more profitable commodities like cotton, fruits, vegetables, and dairy and meat products.

All these changes have contributed to China's increasing dependence on food imports. To promote self-sufficiency, the central government continues to purchases 75% of domestic grain production, and keep massive grain reserves.

Additional pressure comes from stipulations relating to China's entry into the WTO, which expose the agricultural industry to greater foreign competition. Utilization of land area is not neraly as efficient in China as is developed countries which rely much more heavily on employment of mechanization, chemicals and genetic engineering.

The Chinese authorities have required a system of certification for all genetically modified products introduced into the market, but their use is increasing.

Other areas needing development span the industry. Mechanized tools such as tractors, combines and processing equipment are still lacking, although Heilongjiang in China's far northeast reports agricultural mechanization already on par with developed nations. With the exception of the Northeast, vast expanses of flat farmland are rarely found in China; planters are often forced to raise crops in small plots on whatever nooks and crannies and available, demanding a higher amount of manpower and limiting the use of efficient mechanized methods. Still, under these conditions, greater possibilities exist for mixed cropping, which can reduce the need for pesticides and fertilizers.

Irrigation and water pollution are also major issues. Generally speaking, Northern China tends to be plagued by drought while many southern regions are susceptible to floods. Channeling of water and flood management through construction of dams and canals has already been successful and can be further implemented on a larger scale.