Chinese people attach more importance to health today as they become more affluent. Modern agriculture featuring deep processing, or "organic" is becoming more and more popular among consumers, said Wan from ChinaVenture.

However, quality control and the high volatility of the industry, which relies on the weather, also pose risks, she added.

Since China joined the World Trade Organization and cut import tariffs for agricultural products, trade volume in the sector has witnessed sharp growth.

According to the Ministry of Agriculture, total trade volume shot up more than threefold to $122 billion in 2010 from $28 billion in 2001. Meanwhile, a trade deficit has been expanding rapidly over recent years. In 2010, China's trade deficit in the sector of agricultural products had increased to $23 billion from $4.6 billion in 2004.

Analysts believe China should further develop its agricultural processing industry to ensure food security while also reinforcing the nation's advantages in the international trading system.

The processing industry, which carries added-value, could cushion the impact from the global food market and secure China's food security, Sun Licheng, a former president of North China's Jilin Agricultural University, said during an interview with China Daily.

xieyu@chinadaily.com.cn