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The Ministry of Commerce has selected 100 large farm produce logistics firms that will receive government support, as part of the government's bid to build a national logistics network for farm produce.

The 100 companies were chosen by an expert panel from 179 companies recommended by local authorities, the Ministry of Commerce confirmed to Xinhua on Thursday.

They were selected because of their large turnovers, modern operational methods and sound management, the ministry said.

The government will provide the companies with funds and loan subsidies for building cold chain systems, distribution centers and large wholesale markets.

The ministry said in March it will help build 100 large wholesale markets specializing in farm produce and foster 100 large farm produce trading companies around the country in the next few years.

This will help cut the transaction and transport cost of farm produce, increase farmers' incomes and create more job opportunities in the countryside, the ministry said.

The 100 firms sold 38.4 billion yuan (US$4.8 billion) worth of farm products in 2005, accounting for 68 percent of their total sales.

(Xinhua News Agency September 21, 2006)