After 8 years of unremitting struggle, China has completed the goal and task of poverty alleviation in the new era as scheduled, and the focus of the "three rural" work has shifted to comprehensively promoting rural revitalization, but "poverty alleviation is not the end, but the starting point of a new life and new struggle. As the backbone of the national economy, local state-owned assets and state-owned enterprises (SOEs) play a role as the main force and stormtroopers in promoting the development of agricultural industrialization and modernization.
If the countryside is to be revitalized, the industry must be revitalized. In recent years, a number of policy documents have been issued by various ministries and commissions, and the top-level design of rural revitalization has been continuously strengthened, which has made important guidance for the active implementation of the rural revitalization strategy and frequently put forward requirements for industrial revitalization. In July 2020, the Ministry of Agriculture and Rural Affairs issued the "National Rural Industry Development Plan (2020-2025)", which pointed out that "industrial revitalization is the primary task of rural revitalization"; The first document of that year pointed out that all localities should be supported to build a unique agricultural industry chain based on resource advantages, establish and improve the mechanism for farmers to share the value-added benefits of the industrial chain, form competitive industrial clusters, and promote the integrated development of primary, secondary and tertiary industries in rural areas. Therefore, upgrading the development of the whole chain of rural industries and promoting the development of agriculture to industrialization and modernization is the only way to achieve rural revitalization.
Fig. 1 List of important policies related to rural revitalization and agricultural industrialization in China.
State-owned enterprises (SOEs) have always been mindful of the "great power of the country" and play an extremely important role in promoting the comprehensive realization of rural revitalization and urban-rural integration. EY takes the "Top 500 Agricultural Enterprises in China" and "National Key Leading Enterprises in Agricultural Industrialization" as samples to find out the value and development points of the agriculture-related business of state-owned enterprises through "observing a leaf and knowing the autumn".
The study finds that state-owned enterprises can start from the relatively key leading links of the agricultural industry chain by virtue of their competitive advantages such as credit endorsement, policy inclination, core resource integration, talent attraction, and external cooperation channels, and gradually penetrate to the upstream and downstream ends of the industrial chain, leading and driving the development of the local agricultural industry chain. Specifically, the upstream biological breeding, feed research and development and other technical barriers are high, the research and development cycle is long, and the seed industry is known as the agricultural "chip", which is mainly monopolized by central enterprises and some high-tech private enterprises; More than 50% of the sample enterprises take the intensive processing and circulation of agricultural products as their core business, and become regional leaders by winning by winning by quantity, and participate in national and even global competition; In the downstream large-scale circulation, local state-owned enterprises can rely on the ability to integrate localized resources to build regional competitive advantages and seize the commanding heights of the regional agricultural market; The marketization requirements of the terminal retail link are high, mainly private enterprises or individual industrial and commercial households, and are widely concentrated in online and offline supermarkets and other channels. In addition, on the basis of strengthening the core business, a large number of enterprises will expand the new format of "agriculture +" to the tertiary industry, such as integrating "agriculture + tourism" to improve the industrial ecology, connecting "agriculture + finance" to empower the development of agriculture, rural areas and rural areas, "agriculture + technology" to improve production efficiency, and "agriculture + service" to create value-added income.
Fig.2 Business layout of agricultural industry chain of various enterprises.
Local state-owned enterprises play a variety of roles in the development of agricultural industrialization, such as "pioneers", "connectors" and "promoters", undertake key tasks, leverage social resources to amplify resources, fill the areas that the market is unwilling or unable to do, and connect enterprises, enterprises and villagers to form a joint force to accelerate the formation of a new pattern of multiple subjects participating in rural revitalization.
From the perspective of local actions, in recent years, in order to promote regional agricultural development and accelerate the realization of rural revitalization, local governments at all levels have established or established state-owned assets platforms with agriculture as the main industry, shouldering the important task of "strengthening agriculture" in the region. For example, a province in central China has established a provincial agricultural development investment group by integrating the provincial modern agricultural industry group and the provincial grain group in recent years; Another example is the establishment of a municipal agriculture, agriculture and rural innovation and development group in a strong national agricultural city in the east.
Backed by the best of the best, the agriculture-related local state-owned assets platform company can realize the overall integration of land, farmers, products, funds, channels and socialized services and other factor resources by building the ability to coordinate the resources of the three rural areas in localization, so as to drive the urban and rural agriculture to move towards the development model of the whole industrial chain.
Summarizing the best practices of the industry, the agriculture-related local state-owned assets platform has comparative advantages in "land integration and management, farmer agricultural enterprise management, agricultural product integration, circulation channel construction, brand building and marketing, and first-chain finance and services".
Figure 3 The six core competencies of agriculture-related local state-owned assets platforms.
01.Land consolidation and management
Cities and counties should grasp villages and towns, coordinate the large-scale operation of contiguous land, and stabilize the base areas for agricultural development. Large-scale land management is the only way to develop modern agriculture, local state-owned assets platform companies can directly counterpart municipal, county, village and town-level management units, comprehensive use of "state-owned assets platform + villages and towns + large projects + land consolidation" and "state-owned assets platform + villages and towns + farmers" and other combination models to guide land circulation, consolidation and "scattered land" convergence and integration, to expand and stabilize the basic plate of large-scale operation.
02.Management of agribusiness households
Cultivate and give full play to the role of agricultural enterprises and farmers as the main body of new agricultural operations, and become the basic main body of large-scale operation. Adhering to the development concept of "benefiting the people" and the practical attitude of "going down to investigate all methods", enterprises should "sink to the front line" to guide farmers to drive agricultural enterprises and farmers through land shares, land trusteeship, order agriculture, excess income sharing, demonstration and other forms, lead farmers into the industrialization track, and promote the development of the whole agricultural industry chain. At the same time, we will design income incentive mechanisms and long-term product procurement agreements to standardize planting and breeding, and share large-scale benefits and value-added benefits with farmers.
03.Integration of agricultural products
Excellent procurement and sales, through the combination of sales and production, "state-owned enterprises + cooperatives + farmers" and "state-owned enterprises + village and town buyers + finance", to build an excellent procurement, marketing and supply system。Local state-owned assets platforms should give full play to their own advantages in capital operation and customer cooperation, choose the best opportunities to adopt different strategies to integrate agricultural products on a large scale, and create a first-class chain of special agricultural products that connects production and marketing, domestic sales and foreign trade, and interests.
04.Construction of distribution channels
Logistics efficiency, based on the procurement and marketing system to build excellent logistics and warehousing service capabilities, to achieve cross-regional logistics coordination of agricultural products. For example, if vegetable agricultural products have extremely high requirements for freshness and timeliness, it is necessary to ensure quality, quantity, time and low cost during product transportation. An agile logistics and warehousing system can be built by means of self-built joint ventures, cooperative joint ventures, mergers and acquisitions, etc., to control the product transportation process in real time. In order to ensure smooth sales, we should spare no effort to open up downstream sales channels, such as signing long-term supply agreements with large shopping malls and supermarkets, providing "vegetable basket" project distribution, and setting up online sales experience halls to ship goods in an all-round way.
05.Branding and marketing
Brand strong agriculture, with significant regional characteristics of agricultural products brand is the fundamental starting point to drive the integration of rural industry development. As early as 2017, the first document proposed to "promote the construction of regional public brands of agricultural products, and support local enterprises to build regional characteristic brands based on advantageous enterprises and industry associations", and local agriculture-related state-owned enterprises, as the "double representatives" of the first and local leaders, should take the initiative in brand building. On the basis of a comprehensive understanding of the current situation of the local agricultural industry, regional context and market competition, it is necessary to determine the creation mode of regional public brands, corporate brands and product brands, design exclusive brand images and brand symbols, brand management systems, brand communication strategies, etc., so as to enhance the visibility of the local agricultural market as soon as possible, so that farmers can share the benefits brought by brand promotion.
06.Agricultural Finance & Services
Serve and empower agriculture, and empower the main management of the industrial chain through financial tools and technical services. In terms of agricultural finance, state-owned enterprises rely on the operation function of state-owned capital to introduce financial "living water" and "loan" to upstream and downstream business entities to promote agricultural development. For example, it can set up its own small loans, factoring and other platforms to promote inclusive financial business to go to the countryside and villages, graft the cooperation bridge between banking and insurance institutions and agricultural enterprises and farmers, and customize the development of innovative credit products such as custody loans and greenhouse loans, so as to improve farmers' enthusiasm for production. In terms of agricultural services, we can build a "first-class enterprise + college" cooperation carrier, such as science and technology courtyard, information garden, science and technology green boat and other models, organize teachers and students of colleges and universities to enter the village through teaching experiments, credits, graduation internships, etc., to provide farmers with skills training, technical guidance and other agricultural technology promotion and training services, and cultivate modern new farmers.
As the backbone of the national economy and an important force to protect and improve people's livelihood, the state-owned assets platform gives full play to the advantages of ideas, capital, markets, technologies and talents, demonstrates responsibility in promoting rural revitalization, and strives to accelerate the modernization of agriculture and rural areas.
EY has long been concerned about the development process of China's rural revitalization, has a consulting service system in all fields of rural revitalization, and has implemented many agricultural projects in Hainan, Zhejiang, Shandong, Hebei, Inner Mongolia and other regions, and has rich consulting experience in the fields of urban and rural strategic planning, rural policy research and implementation design, rural tourism planning, land and development investment consulting, strategic planning of agriculture-related enterprises, design of agricultural services and trading platforms, research and investment promotion of global animal and plant resources, covering rural revitalization. In particular, the demand for multi-level consulting services in various segments of the agricultural industry chain.
This article is prepared for general information purposes only and is not intended to be relied upon as accounting, tax, legal or other professional advice. Please ask your advisor for specific advice.
Comments:
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