As a result of limited supply of farm land and labour, competition from imports, raised environmental standards and calls for improved farm hygiene and safe produce, the local agriculture industry has to adapt rapidly to sustain its long-term development.

    Crop farmers are encouraged to target specific niche markets by cultivating safe quality vegetables. To help farmers capture these specific niches, the AFCD initiated an organic farming conversion programme in two local farming districts. A close working relationship has been maintained with the local organic farming industry and the Vegetable Marketing Organisation to develop organic farming and the market for organic vegetables in Hong Kong. The AFCD also completed studies on intensive greenhouse production for local adaptation. In addition, two new vegetable varieties suitable for local production — white bitter cucumber and garden pea — were introduced.

    The voluntary Accredited Farm Scheme implemented by the AFCD and the Vegetable Marketing Organisation since 1994 aims to supply clean and safe vegetables. This programme has continued to expand with an additional six farms accredited. The organisation continued to use a 'Good Farmer' cartoon logo to promote accredited produce.

    Livestock farmers are encouraged to adopt sustainable production practices that minimise the impact on the environment. To ensure food safety, legislative controls are in place to regulate the use of agricultural and veterinary chemicals (including clenbuterol) in food animals. There is also an identification system for pigs, cattle and goats destined for market so that their origins can be traced. Training is also available to farmers on the proper use of agricultural and veterinary chemicals on farms.

    Livestock farmers are also required to install and operate waste treatment systems under the Livestock Keeping Licensing Scheme to prevent pollution of watercourses. During the year, the AFCD renewed 185 licences and issued three new licences; five licence applications were being processed.