Abstract: The agricultural situation of China was analyzed in this paper. It is pointed out that our food production has changed fundamentally in recent years. Agricultural product processing has already been a bottleneck which restricted the agricultural development. The primary outlet of agricultural product and grain processing should lie in dinning table food. And the staple food industrialization should pay more attention to the investigation, arrangement and development of traditional food. Traditional food needs not only enhancement with utilization of new science & technology but also exploration and development of its cultural functions. Developing industrial food which has Chinese characteristics and suits our country situation is also an important agricultural strategy dealing with the affiliation of the World Trade Organization (WTO).