'First Asia and then the rest of the world.' The motto sounds a tad over-ambitious for a vegetable farm run by Pei Dexiang and his cousin Pei Zhenxiang in Shouguang, Shandong province. But the Peis' business may well set an example for the mainland's millions of farmers. Unlike grain or wheat farmers, who are likely to suffer due to the flood of cheaper imports brought about by China's entry to the World Trade Organisation, the chain-smoking carrot farmers wearing the seemingly standard Chinese farming uniform - a Western suit - relish the prospect. 'With WTO, the whole world will eat our carrots,' Pei Zhenxiang said. WTO's tariff-cutting measures are expected to boost China's US$2 billion (HK$15.6 billion) vegetable export market. Analysts predict China's exports will increase by as much as five per cent a year. 'Chinese agriculture is internationally competitive, even when there is a high level of intensity and the harvesting must be done by hand,' said Anning Wei, Director of northeast Asia research at Rabobank, an international bank specialising in the food and agriculture industry. The Peis' carrot production base in Hualian village is a good example. Every day at 3pm, dozens of local farmers rush to his production base to sell their carrots to Pei Dexiang at forty fen ( 40 HK cents) per 500 grams. Pei then has 50 local villagers scrub and package the carrots, paying each labourer 10 yuan per day. At 3am the next day, Pei delivers his carrots to the Shouguang city vegetable wholesale market, where he sells each 500g packet for 1.10 yuan . By 8am, his carrots are sold out, shipped to customers not only in the domestic markets of Beijing and Shanghai but also the Asian export markets of South Korea and Japan. Pei says he sold more than 20 tonnes of carrots last year, making Hualian the 'Number One Carrot Village of China'. He said his annual income is more than 50,000 yuan, 25 times the average rural income. Another key element to Mr Pei's success is location. The production base in Hualian is only 20km from Shouguang city, which is known as China's Vegetable Capital. The city, with its transport infrastructure and proximity to ports in the north, has China's largest vegetable wholesale market, which allows farmers such as the Peis to export their crops. According to the China Daily, Shouguang sells more than three million tonnes of vegetables a year, valued at more than three billion yuan, with buyers not only from East Asia but from nations as distant as Holland, Argentina, Israel and the United States. Mr Pei is so confident of his future success he is seeking a 500,000 yuan investment for his carrot farm and even producing a VCD brochure to entice investors. When asked about possible increased foreign competition from WTO, he said: 'Why should I be afraid of competition, we have the best quality and the best prices. Nobody can beat us!'