What are the main problems faced by industrialized agricultural operations?

  Generally speaking, China's agricultural industrialization has achieved considerable development in recent years, but at the same time, we must also clearly recognize that the overall level of China's agricultural industrialization is still not high, and there are still some problems that need to be solved urgently in its development.

  1. The degree of agricultural industrialization is low, and the market lacks competitiveness. There is a lack of modern leading enterprises, and their core requirement is that they must have advanced equipment, have a relatively high-level technical research and development team, be able to meet market demand, create famous brands, and at the same time, use modern management methods, with the boldness and vision of entrepreneurs, to build products unique to China and form a distinctive industry of walnut production and processing.

  2. The industrial chain of agricultural product production, processing, and circulation is short. Horizontally, product research and development capability is low, newly developed products are few, and special-purpose varieties and quality of agricultural products cannot meet the needs of the processing industry. Vertically, the depth of product processing is insufficient, and the rate of processing transformation and value addition is low. Only when research institutes cultivate excellent varieties suitable for processing can enterprises research and develop products with high technological content. Research institutes are the main body for cultivating good varieties, and the research and development funds of research institutes are supported by enterprises; only when enterprises, bases, and research institutes form a strong consortium can enterprises and bases have staying power, can there be broad market prospects, and can there be obvious advantages in foreign exchange earnings and economic benefits.

  3. The degree of organization of farmers entering the market is low. The low degree of farmer organization also restricts the soundness and perfection of the benefit linkage mechanism between leading enterprises and farmers. The staying power of leading enterprises lies in high-quality raw material bases. The large-scale operation of bases is a prerequisite for realizing enterprise value. Too small orchards are not conducive to standardized technical management, make it difficult to implement strict production technical standards, and make it difficult to produce high-benefit agricultural products.

  4. The interests of scattered farmers are easily harmed. Scattered individual farmers have very weak ability to face the market, and the risk of entering the market is relatively high. With companies and enterprises as the "leaders," economic interests are the goal pursued by each subject, but inconsistency in original intentions cannot determine equality in the final distribution of interests. Because farmers are in a relatively weak position and have low bargaining power, there are many unfavorable factors in the distribution of interests.

  5. The specific form of the "leading" unit is chosen with great arbitrariness, and the operating results are poor. Specifically, in some economically more developed areas, infrastructure is relatively complete and market-oriented development is relatively mature, but the leading units chosen are various professional associations, which do not have advantages in technology, capital, and information, resulting in the quality and grade of agricultural products being not high, and in the face of fierce competition in the international agricultural product market, the situation is severe.

  6. The role of the government has fallen into two extremes. In the process of agricultural industrialization, what role the government should play is something some grassroots governments have failed to grasp accurately, moving toward two extremes. One extreme is that, influenced by the traditional planned economy, the government manages everything in every link of agricultural industrialization, taking on everything, not guiding but commanding, and as a result many practices violate market laws, or cause losses to leading units and farmers, or burden the government itself heavily. The other extreme is a one-sided understanding of the market economy, believing that the market economy means simply allocating social resources by the market, ignoring the necessary regulatory role of the government, which in practice manifests as the government washing its hands of agricultural industrialization, or carrying out only vague symbolic management, while leading units and farmers reject the government and go their own way.

  The above two tendencies are both wrong and are extremely harmful in practice. The correct approach is that the government can neither take on everything nor wash its hands of agricultural industrialization, but should define the government's role within an appropriate scope. On the one hand, industrialized agricultural operations in China are still in the initial stage, and promoting and guiding their healthy development still requires the government to play a role in planning, guidance, support, and management. On the other hand, key points should be highlighted, and the focus of government work should be placed on promoting progress in agricultural science and technology.