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The “big family era†of the agricultural capital industry is now in its infancy
[ China Agricultural Machinery Industry News ] Recently, the Ministry of Agriculture issued the "Notice on Establishing Credit Archives for Agricultural Materials and Agricultural Products Production and Operation Subjects", and informed that it will establish a credit file for agricultural production and agricultural product production and operation, and require that by the end of 2019, the basic Realize the full coverage of the credit files of agricultural capital and agricultural production and management entities.
The “big family era†of the agricultural capital industry is now in its infancy
With the gradual improvement of the economic level, China's agricultural development has gone from pursuing a simple quantitative growth to a new stage of seeking development quality. However, due to the fundamental changes in the consumption of agricultural materials, China's agricultural capital market has not been able to simultaneously upgrade the technical level and scale of operations, and domestic agricultural enterprises are still small, scattered and chaotic.
Affected by historical reasons and the status quo of land resources, China's agricultural consumption mains are still “self-cultivated farmers†with an average farmland of less than 9 mu. Although it is difficult for consumers to make fundamental changes in the short term, some leading agricultural enterprises in China have begun to explore the road of industrial upgrading and have made great achievements.
Small farmers' economy restricts industry development
Li Yongdong, vice president of China Agricultural Resources Circulation Association, told the China Economic Weekly that from a global perspective, the concentration of agricultural materials industry has been very high, and developed countries have even seen an obvious pattern of oligopoly. On the other hand, in addition to China Agricultural Production Materials Group Corporation and Sinochem Fertilizer Holdings Co., Ltd., two “national prefix†enterprises, none of the market share exceeds 5%, and the top 5 market share does not exceed 15%. Nearly 50,000 companies, mostly prefer low-price competition, resulting in the overall low-profit state of the agricultural industry.
Li Yongdong believes that the reason why the concentration of domestic agricultural resources industry is very low is closely related to the current situation of China's cultivated land resources and the land system formed over the years. The small-scale peasant economy will inevitably lead to the decentralization and multi-level of the agricultural resources industry, which not only dilutes the healthy development of the supporting enterprises. The operating profit, the financial strength and technical level of agricultural services cannot be improved. The data that can be confirmed is that more than 95% of retailers cannot meet the demand for agricultural materials in modern agriculture.
A senior industry insider said in an interview with China Economic Weekly that people generally think that low industry concentration leads to overcapacity, and overcapacity has caused market horrors, but not all problems should allow overcapacity. The problem of unmatched quality at the demand side is more serious. Overcapacity is mainly concentrated in traditional agricultural products. New products with higher technological content are difficult to replace. The fundamental reason is that consumers are usually retail investors in rural China. Instead of organized, large-scale planters or family farms.
Some studies believe that 100 to 200 acres is a profitable agricultural planting scale. When the planting scale exceeds 20 mu, the main body of agricultural consumption and consumption mentality will “upgradeâ€. According to statistics from the Ministry of Agriculture, there were more than 870,000 family farms in the country in 2016. The cultivated land accounted for 13.4% of the total contracted farmland in the country. Among them, more than 340,000 family farms were identified by the agricultural sector, and the average planting scale was about 170 mu. . However, more agricultural consumption consumers are still “self-cultivated farmers†with an average farmland of less than 9 mu.
Because the “retail†model of agricultural resources has lagged behind, modern agriculture relies more on technical services and retailers have difficulty in doing this. As early as seven or eight years ago, some experts believed that agricultural retailers would soon disappear. However, reality is not the case.
However, Minister of Agriculture Han Changfu said that the gradual increase in the number and area of ​​land management rights is a general trend, and the role of moderate scale operation in building modern agriculture is the general direction. This statement has been widely recognized by the industry.
Some experts have assumed that after large-scale operation, large-scale planters, family farms and professional cooperative societies will appear in large numbers. If the area of ​​cultivated land of agricultural enterprises is 75 mu, the consumption of agricultural materials can be reduced by 90%. Referring to the basic data of foreign countries, China's agricultural production and circulation enterprises will be significantly "simplified". "The final screening and retention of 20 leading enterprises in China's agricultural industry should be more reasonable." Li Yongdong believes.
"The era of the big family" is now in its infancy
According to the data released by the Ministry of Agriculture, compared with developed countries, the current utilization rate of chemical fertilizers and pesticides in China is not ideal. The average fertilizer consumption per mu is 21.9 kg, which is much higher than the world average of 8 kg per mu, which is 2.6 times that of the United States. The EU's 2.5 times; the average utilization rate of pesticides is only 35%, and the indicator for developed countries in Europe and America is 50% to 60%. To this end, the Ministry of Agriculture has issued the “Action Plan for Zero Growth of Fertilizer Use by 2020†and the “Action Plan for Zero Growth of Pesticide Use by 2020â€. Some experts believe that this has brought great room for upgrading the professional services of China's agricultural enterprises.
"China Economic Weekly" reporter found in an interview that some agricultural entrepreneurs have already taken the initiative to meet the "big family era" trend, and in many places you can see the prototype of the "big family era."
Anhui Huilong Agricultural Resources Group, a leading agricultural resource provider, has provided more than 3,200 planting families with solutions for the whole process of grape, strawberry and other crops from seed to table. The subordinate companies of the group initiated the establishment of farmers' professional cooperatives, and provided them with a number of custody services such as agricultural machinery farming, water and fertilizer management, pest control, and a total of 15,000 mu of land. On the basis of the bank's risk management system, the Huilong Group also combines the characteristics of the agricultural materials industry to develop two financial products, “prepaid advances†and “selling advancesâ€, to provide financial support for the partners. In addition, the Huilong Group is also directly involved in rural land transfer, renting tens of thousands of acres of land in Quanjiao and Linquan counties, and creating a modern agricultural industry demonstration park integrating breeding, food planting, new product testing and agricultural tourism.
In 2016, fertilizer giant Stanley Agricultural Group Co., Ltd. started cooperation with Henderson Lima Gran Seed Co., Ltd. and AgSource Cooperative Services, respectively. This series of actions was considered by the industry to be a single agricultural supplier to integrated agriculture. The transformation of business. At present, Stanley has established 9 professional companies in Northeast China, Inner Mongolia, Shandong and Hebei, and has transferred more than 500,000 mu of cultivated land to develop and plant the industrial chain. It has adopted the “self-operated + platform†operation mode to demonstrate and drive the surrounding planters and agriculture. Cooperatives and ordinary farmers, and provide a full range of planting programs and full-process services.
Li Yongdong believes that the attempt to “large-scale†with “self-employed†characteristics can be seen as a special case in which a circulation enterprise directly transforms into an agricultural enterprise. It is fundamental to continuously attract young farmers and social forces to join the “three rural issues†to change the consumption structure of agricultural materials. Way out. “The accurate positioning of agricultural enterprises should also be 'providing a complete solution around crops.'â€
The reporter of China Economic Weekly was informed that “providing a complete solution around crops†has been widely praised by agricultural enterprises in developed countries. This model has in turn promoted the upgrading of agricultural consumption consumers. “Farmers†have changed from identity imprints to career choices due to the dramatic increase in modern agricultural production efficiency and economic efficiency.