The Bamboo and Rattan Sectors in Asia: an Analysis of ... - INBAR

that farmers should improve the stands during the contract period. There has been
some subsequent readjustment of rents in an attempt to respond equitably to changes
in family size/need.
These reforms changed the incentive structure fundamentally. Farmers were able
to capture the benefits of production above the rental changes. As the rent was based
on part production figures, the farmers captured 100% of the benefits of productivity
improvements. The results, in terms of production increases, were startling. Total
moso production rose progressively from 9.5 million culms in 1981 to 17.3 million
culms in 1995. Other bamboo production also increased at a similar rate.
Meanwhile the demand for bamboo raw material was stimulated by reforms
affecting rural industry. After 1980, state controls on industry were relaxed, leading
to rapid growth in rural industry, including bamboo processing. An 'Open Market
Policy' removed price controls and monopoly marketing, allowing industries to obtain
raw material at market prices. From 1957 through to the late 1970s, the state regulated
bamboo trade through a 'Supply and Marketing Cooperative (SMC)' that purchased
all agricultural products, including bamboo, at a controlled price. In the early 1980s,
the monopoly marketing system was changed to a contract system. The province then
set 'purchase assignments', which were essentially productions quotas. Farmers were
permitted to process and market extra production. In 1985, bamboo was reclassified,
effectively removing all price and trade control. The market was open for individual
traders and private trade companies. This led to a fundamental change in the market:
in 1983 less than 2 million moso culms were traded privately; by 1994 almost 16
million culms were traded privately and less than 23 000 culms were traded through
the SMC.
A range of township and village enterprises, and later private sector enterprises,
were encouraged as a means to stimulate the market. In 1984, the policy was reinforced
with new regulations permitting private and collective investment in non-agricultural
enterprises. Later joint-venture investment was also permitted. The first bamboobased
joint ventures in the county were established in 1989. These activities, supported
by efforts at the local government level to coordinate the activities of various agencies,
resulted in the rapid growth of bamboo processing industries. As of 1985, there were
154 bamboo processing enterprises in Anji County, of which 43 (about 28%) were
privately run. By 1995, there were 527, with 320 (61%) of them being privately owned
(with 18 joint ventures). The joint ventures have been especially important in terms
of introducing new products and new mechanized processing technologies. The
Chinese companies have been quick to adopt and adapt the new technologies. For
example, several kinds of Chinese-built bamboo processing machines are now being
used. They are less expensive and, in some cases, they are reputed to be better than
the originals.
The rapid expansion in the volume of production has been matched by dramatic
qualitative changes. Production has shifted from farm tools, simple furniture and
utensils toward much more sophisticated products aimed at the consumer market.
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