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The total revenue for the All China Federation of Supply and Marketing Cooperatives, an organization that supports farmers in rural areas, increased by a record 29.5 percent in 2011, showing the huge opportunities that exist in the Chinese countryside.

In 2011, the federation's revenue from sales reached a historic high of 2.02 trillion yuan ($320.23 billion), increasing by 29.5 percent above the amount for the year earlier. Its profits reached 21.55 billion yuan, 25.3 percent higher than the year before, according to data released at the federation's fifth council, which took place on Saturday.

"In 2011, the federation established more production-to-sales channels for farmers, bought more agricultural products that didn't sell well on the market and set up stores with cheaper prices," said Yang Chuantang, board director of the federation.

Li Chengyu, president of the organization, has previously expressed similar sentiments.

"The supply and marketing cooperatives have helped to consolidate distribution and retail resources in rural China and established many centers selling consumer goods, as well as franchise shops and convenience stores across the country. This has significantly boosted consumption in rural areas."

The All China Federation of Supply and Marketing Cooperatives, established in the 1950s under a planned economy and under the governance of the State Council, is the biggest federation to consolidate various means of distribution and retail selling in rural China.

"The federation's sales and profit growth for last year shows how hard we've tried to explore the rural market," said Teng Huayong, secretary-general of the All China Federation of Supply and Marketing Cooperatives. "At the same time, it shows the huge market potential that exists in the Chinese countryside."

Earlier this month, Commerce Minister Chen Deming said expanding China's domestic consumption will be a priority in the government's economic policies this year.

Almost at the same time, Premier Wen Jiabao reiterated the importance of encouraging domestic consumption in rural markets and other places.

"The government will improve the quality of shops and stores in a 'thousands-of-rural-villages marketing project' and promote the opening of business and trade centers in villages and towns," Chen said.

Wang Bin, deputy director of the ministry's department of market operation and consumption promotion, said retail sales in the countryside and other places will increase by 14 percent in 2012.

The Ministry of Commerce said the value of retail sales will increase by about 15 percent each year during the 12th Five-Year Plan (2011-15) and reach 32 trillion yuan by 2015.

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