Analysis of Development Trends in the Livestock and Feed Industry in 2015
In 2015, the livestock and feed industry has several very important trends.
The first is capital consolidation; in 2015 there will be major capital consolidation. This capital consolidation will be formed to a greater extent through rural finance, preservation of agricultural products, and a series of fiscal subsidies, so in 2015 the capital operation of agricultural management is a very big trend.
The second is servitization, specialized services in society. That is to say, in the future the customers of the livestock and feed industry will be new types of business entities, and these new types of business entities will mainly be specialized households upgrading to family farms. Therefore, around social specialized services such as family farms, the future livestock industry will consist of pig farming service companies, chicken farming service companies, and cattle farming service companies, and the positioning of these service companies is very clear. These enterprises will differentiate into precise services targeting customers, for example services for small farms, services for family farms, and services for large-scale breeding farms. These services will become increasingly specialized, ensuring that our value is delivered to the breeding segment. This will be a very big trend.
⟦NL> The third very big trend is greater emphasis on raw material procurement and product sales. We will see some very outstanding enterprises whose procurement is done very well, such as Shuangbaotai, Haid, Dabeinong, CP, Shandong Liuhe, and others. The future profits of the feed industry still need to be saved through procurement. Another point is terminal sales of food. In China's livestock industry, all those that do relatively well are enterprises that do relatively well in terminal food sales, for example Zhou Hei Ya. Zhou Hei Ya's profits are very high; when we take the high-speed rail we all go to the Zhou Hei Ya store to buy some Zhou Hei Ya to eat, which replaces the painful experience of eating on the high-speed rail and becomes very wonderful. So an enterprise like Zhou Hei Ya does terminal food sales very well. In this way it is relatively easy for it to integrate some duck farmers. So the very big trend in the feed industry next year is to focus on raw material procurement at the front end and focus on food brand chains at the back end. These two trends are very big trends, and the middle segment is allocated to farmers for breeding, so this is a very big trend.
In 2015 the livestock industry also has a relatively major trend: the consolidation of talent. The consolidation of talent includes not only training farmers but also training employees; rather, it is integrated training of farmers and employees, meaning the level of farmers needs to be raised and the level of employees also needs to be raised. Raise both of their levels, and our agriculture will rise to a higher level. In addition, it also means that agricultural and livestock enterprises must take on consumer education. Consumer education means making consumers more rational and enabling them to consume our meat products with greater confidence. Only when consumers eat more can our livestock industry do well. So the consolidation of talent will also be a very big trend in the livestock industry next year.
In addition, there is another big development trend, namely alliances, mergers, and reorganizations in which you have me and I have you, huddling together for warmth, this kind of cross-boundary cooperation. For example, Haid has done very well in shifting to livestock and poultry feed, Dabeinong has begun researching aquatic feed, and so on. These cross-boundary large agriculture sectors will be a very big trend.
The last big trend for agricultural and livestock enterprises is their soft power and values. I boldly predict that China's agricultural and livestock enterprises will certainly produce some responsible large enterprises that advocate agricultural civilization and ecological civilization. They will convey to society a very good agricultural culture, a very good ecological culture, and a very good land-growing culture, creating a good foundation for the agricultural atmosphere formed by the whole society. This is also the social responsibility of the livestock and feed industry.