Cooperatives have a history of more than 80 years in China. The government of the People’s Republic of China has always regarded the development of cooperatives as an important aspect in promoting agricultural and rural economic development, and given them conscientious guidance, support and push. In July of 1954, the first national congress of China’s cooperatives was convened, which changed the name of United Headquarters of the Chinese Supply and Marketing Cooperatives into All-China Federation of Supply and Marketing Cooperatives (ACFSMC) and set up a unitary system of supply and marketing cooperatives nationwide.

 

As important of force for developing the rural economy, supply and marketing cooperatives have played a major role in ensuring the supplies of agricultural means of production, activating circulation of farm produce, promoting restructuring of agriculture and industrial management of agriculture, and activating the rural market and made great contributions to promoting increase of agricultural production, farmers’ income and rural development.

 

After years of reforms and development, the supply and marketing cooperatives have been developed from units which were mainly engaged in businesses of a policy nature to independent economic entities with decision-making power in management responsible for their owns profits and losses, from supply and marketing cooperatives in the pure circulations field to all round cooperation in the multiple fields of agriculture-industry-commerce and production-processing and marketing, from unitary business organizations into comprehensive service organizations providing economic, technical and cultural services to farmers. The services provided by the supply and marketing cooperatives have been raised to a high level and the undertakings of the supply and marketing cooperatives have entered a new stage of development.