<P> As of 2011, China was both the world's largest producer and consumer of agricultural products . However, the researcher Lin Erda has stated a projected fall of possibly 14% to 23% by 2050 due to water shortages and other impacts by climate change; China has increased the budget for agriculture by 20% in 2009, and continues to support energy efficiency measures, renewable technology, and other efforts with investments, such as the over 30% green component of the $586 bn fiscal stimulus package announced in November 2008 . </P> <P> Despite rapid growth in output, the Chinese agricultural sector still faces several challenges . Farmers in several provinces, such as Shandong, Zhejiang, Anhui, Liaoning, and Xinjiang often have a hard time selling their agricultural products to customers due to a lack of information about current conditions . </P> <P> Between the producing farmer in the countryside and the end - consumer in the cities there is a chain of intermediaries . Because a lack of information flows through them, farmers find it difficult to foresee the demand for different types of fruits and vegetables . In order to maximize their profits they, therefore, opt to produce those fruits and vegetables that created the highest revenues for farmers in the region in the previous year . If, however, most farmers do so, this causes the supply of fresh products to fluctuate substantially year on year . Relatively scarce products in one year are produced in excess the following year because like of expected higher profit margins . The resulting excess supply, however, forces farmers to reduce their prices and sell at a loss . The scarce, revenue creating products of one year become the over-abundant, loss - making products in the following, and vice versa . </P> <P> Efficiency is further impaired in the transportation of agricultural products from the farms to the actual markets . According to figures from the Commerce Department, up to 25% of fruits and vegetables rot before being sold, compared to around 5% in a typical developed country . As intermediaries cannot sell these rotten fruits they pay farmers less than they would if able to sell all or most of the fruits and vegetables . This reduces farmer's revenues although the problem is caused by post-production inefficiencies, which they are not themselves aware of during price negotiations with intermediaries . </P>

This was one of the major development in ancient chinese agriculture