Four Major Changes Facing Chinese Agricultural Enterprises, Explained by Agriculture Ministry Official
BEIJING, Sept. 19 (Xinhua) -- Zhang Hongyu, Director of the Department of Rural Economic System and Operation Management of China's Ministry of Agriculture, said that new features have emerged in the development situation of Chinese agricultural enterprises, which face four major changes.
Speaking on Sept. 19 at the “2015 International Agricultural Business Brand Development (Beijing) Forum,” Zhang Hongyu said that in recent years, the changes in the situation facing Chinese agricultural enterprises have come from four aspects.
⟦NL> First, the demand structure has undergone major changes. In terms of demand for agricultural products, as people's basic demand for agricultural products has been satisfied, there are new requirements for the quality and safety of agricultural products; at the same time, people have begun to pursue branded agricultural products. People's demand for agricultural products is gradually moving from low-end to high-end.
Second, the competitive space has undergone major changes. Against the backdrop of global economic integration and the simultaneous development requirements of the national economy, China's supply and demand of agricultural products has shifted from one resource and one market in the past to two resources and two markets. The survival and development of Chinese agricultural enterprises, especially the enhancement of their competitiveness, depends on competition with domestic and international industrial entities and business entities.
Third, as agriculture is a foundational industry, the government attaches great importance to agriculture, and this orientation is consistent across all countries. Domestically, to meet the needs of integrated global operations, China's agricultural policy still focuses on protecting agriculture, strengthening existing policies that support, benefit and assist agriculture, and in recent years has placed greater emphasis on the competitiveness of agriculture, so as to secure a place in global agricultural competition.
Fourth, the operating environment has changed. The global economy is sluggish and international economic growth is slowing, creating pressure on the healthy operation of enterprises. Domestically, this pressure is manifested in high agricultural production costs, relatively low international agricultural product prices, and increasingly fierce competition. Under such competitive conditions, how to achieve having what others do not have, having more when others have some, having better when others have more, and having a brand when others have better quality has put forward new requirements for the development of agricultural enterprises. Changes in the internal and external environment of agricultural enterprises have created pressure on the healthy development of the agricultural industry, while also bringing new opportunities and new challenges.
Zhang Hongyu said that agricultural enterprises have their own requirements to become bigger, stronger and long-lasting, and the key is to promote the connection between agricultural products and the market, realize the journey of agricultural products from the field to the dining table, and form a complete industrial chain.
He also believes that with agriculture having developed to the present day, the traditional industries of agriculture, forestry, animal husbandry and fishery can no longer cover all of agriculture; they also include non-production functions such as ecological and environmental protection, sightseeing, tourism and leisure, and cultural inheritance. The next step requires more development in branding and the realization of integrated development of the primary, secondary and tertiary industries in agricultural enterprises.