How many problems still need to be solved before Internet Plus agriculture hits its stride?

"A strong China requires a strong agriculture." Agriculture is an important field for expanding domestic demand and adjusting the structure, and it is also an industry that secures the nation and steadies the people's hearts. Walking alongside "Internet Plus," can agriculture find a new direction and enter a new realm? Zhang Yaowen, senior partner of Analysys Business Solutions and general manager of the western region, said in an interview that he conducted a multi-angle analysis and review of topics such as the enormous role "Internet Plus" plays in promoting agricultural development, the current state of agricultural informatization in China, the difficulties agriculture faces in embracing "Internet Plus," and the early breakthrough points for "Internet Plus" in the agricultural field.

The positive impact of "Internet Plus" on agriculture

Zhang Yaowen said the "Internet Plus" action plan will have a positive impact on agricultural development, specifically in solving information asymmetry, innovating business models, optimizing resource allocation and improving the degree of agricultural intelligence.

In terms of information transmission, "Internet Plus" uses IT technology to break through the limits of time and space and achieve interconnection and interoperability anytime and anywhere, thereby greatly promoting the effective transmission of information in all aspects, including agricultural technical knowledge, agricultural resources, agricultural policy, agricultural science and technology, agricultural production, agricultural education, agricultural product markets, agricultural economy, agricultural talent and agricultural extension management, and solving various problems of information asymmetry. While promoting agricultural production and life, it can also effectively connect the supply and demand markets for agricultural products and solve problems such as unsalable goods caused by poor information flow in traditional agriculture. In terms of information use, the "Internet Plus" action plan can effectively open up the "last mile" of information transmission, allow all kinds of agricultural information to penetrate rural front lines in an all-round way, effectively guide production and life, and improve the degree of scientific and modernized agriculture through means such as big data analysis.

In terms of innovating agricultural business models, the Internet, from land transfer, agricultural input sales and agricultural information services to agricultural production, agricultural product sales and leisure agriculture, is subtly penetrating and changing agriculture at every link of the agricultural industry chain, while also innovating the business models of various enterprises. A major feature of traditional agriculture is "living at the mercy of the weather," with great unpredictability. When the Internet and agriculture deeply integrate, the Internet brings new data, information and new technical means, giving every link of the agricultural industry chain and every segmented market in the agricultural field more tools, conditions and possibilities for innovation. Several obvious business model innovations have already emerged, such as: agricultural input e-commerce, e-commerce-based land transfer, reform of urban-rural circulation channels, agricultural product e-commerce (fresh food e-commerce), agricultural big data, the agricultural Internet of Things and leisure agriculture internet platforms.

In terms of optimizing resource allocation, the Internet has a considerable degree of reorganizing and allocating effect on the resources needed in agricultural production, improving the allocation and utilization efficiency of production factor resources such as land, labor and capital. For example, for "labor" resources, major recruitment websites promote the effective allocation of surplus rural labor; the Taobao villages and Taobao counties that have appeared in recent years not only create employment for rural areas, but can even promote the transfer of urban labor to rural areas.

In terms of improving the degree of agricultural intelligence and production efficiency, the Internet uses emerging information technologies such as big data and the Internet of Things to transform traditional agriculture, which can raise the degree of intelligence in all links of agriculture, greatly improve production efficiency, and realize "measurable environment, controllable production and traceable quality," while also solving food safety problems to a certain extent. With computers at the center and integrating information technology, it combines perception, transmission, processing and control into one, advancing the standardization, intelligence and automation of agricultural production, and while saving labor costs, improving the output and quality of agricultural products and enhancing crops' ability to resist natural risks.

Agricultural information applications still need to be strengthened

When talking about the overall state of China's agricultural informatization at present, Zhang Yaowen, after objective analysis, believed that although the foundation of China's agricultural informatization has improved markedly, opening up the "last mile" of information transmission still requires greater effort; the overall level of agricultural information application remains low and needs to be strengthened.

After years of construction, the foundation of China's agricultural informatization has improved markedly. As of December 2014, rural netizens in China accounted for 27.5%, with a scale of 178 million, and the rural internet penetration rate was 28.8%. In 2015, the proportion of administrative villages with internet service will reach 95%, and by 2020 it will reach 98%. The goals of "telephone access in every village," "internet access in every township" and "broadcast and television access in every village" will be basically achieved. An agricultural website group covering ministries, provinces, prefecture-level cities and counties has basically been completed, and agricultural departments at all levels have initially built agricultural information service platforms oriented to farmers' needs. Rural information service stations basically cover all administrative villages, and the pattern of "information service institutions in counties, information stations in townships and information points in villages" has basically taken shape. But to make full use of these platforms, effectively provide useful services to agriculture, and open up the "last mile" of information transmission, greater effort is still needed.

He said that information technologies such as the acquisition and analysis of agricultural biological environment information, agricultural wireless sensor networks and the Internet have already been applied and promoted in fields such as comprehensive rural information services, agricultural government affairs management, agricultural production and operation, agricultural product circulation, agricultural e-commerce, informatization construction of wholesale markets and informatization of farmers' professional cooperative operations, developing rapidly and achieving remarkable results. For example, the application of the Internet of Things in the planting and livestock industries, the application of remote sensing monitoring technology in the grassland and fishery fields, the application of RFID technology in the breeding industry, and the application of GPS technology in the agricultural machinery field. The Internet's promotion of the development of agricultural input e-commerce and fresh food e-commerce has also achieved good development. But overall, the overall level of agricultural information application remains low and needs to be strengthened.

Embracing "Internet Plus" faces four major difficulties

"Internet Plus agriculture" cannot be added just because one wants to add it. Zhang Yaowen believes that "the transformation of concepts, the construction of business models, logistics distribution, and the shortage of talent and funds are the four 'roadblocks' standing in front of 'Internet Plus agriculture.'"

Difficulty one: the transformation of concepts and awareness. For agriculture to embrace "Internet Plus," the awareness and concepts of all participating entities first need to gradually transform. This includes enterprises' awareness of embracing the Internet, as well as farmers' overall awareness of accepting and adapting to the Internet in the market environment, all of which need to change.

Difficulty two: the construction of business models. Agriculture is a typical traditional industry, with characteristics such as strong regionality, strong seasonality, a low degree of product standardization and dispersed producers. For agriculture to embrace "Internet Plus," it must make full use of the Internet's advantages to transform agriculture, while also conforming to the characteristics of the agricultural industry's own development, and find the business logic of the Internet era in the collision and integration of agriculture and the Internet.

Difficulty three: the logistics distribution problem. Although China is promoting the construction of a modern rural circulation network, the rural logistics system is also gradually improving and has begun to take shape, logistics entities are developing toward diversification, and infrastructure construction projects such as "Ten Thousand Villages and One Thousand Townships" have been carried out, the development of China's rural circulation industry is still lagging. The main manifestations are: first, the lack of unified planning, unbalanced development of logistics infrastructure in different regions, limited coverage of guaranteed rural logistics, and the dispersed nature of rural demand makes the "last mile" distribution problem especially prominent, and socialized logistics still cannot effectively serve villages and towns at present. Second, infrastructure is backward, and the technological content of facilities and equipment is low. In addition, at the enterprise level, the threshold for entering the rural logistics market is low, and most enterprises operate extensively. Finally, in addition to the circulation of agricultural production and living materials, the circulation problem of agricultural products is even more prominent, because agricultural products usually have fresh characteristics, are easily damaged and perishable, and have higher requirements for timeliness and control of the transportation process.

Difficulty four: the shortage of talent and funds. There is a lack of talent who understand both traditional agriculture and the Internet, and even fewer people are willing to serve in rural areas. At the same time, the construction of agricultural e-commerce platforms and the technical research and development and equipment purchase of the agricultural Internet of Things all require relatively high investment.

Two early breakthrough points for "Internet Plus agriculture"

Zhang Yaowen believes that the early breakthrough points for "Internet Plus agriculture" can focus efforts in two directions: leading enterprises and star enterprises driving regional and even industry development; government public service departments strengthening the popularization of the Internet among rural residents.

-- Leading enterprises and star enterprises drive regional and even industry development. These enterprises completed informatization construction earlier, have resources and users, understand the agricultural industry itself, and understand the Internet. For example, agricultural input giants such as Sierte, Kingenta and Huifeng Shares, agricultural star enterprises such as Dabeinong, New Hope and Longping High-Tech, internet giants such as Alibaba, JD.com and Suning, and even logistics giants such as SF Express can all rely on their own resource advantages to penetrate rural and agricultural markets through internet tools. When these leading enterprises enter the rural market, they can play the role of vanguard, using resources and strength to improve the overall network environment, logistics environment and other infrastructure, take the lead in cultivating the internet concept in the rural market, raise rural acceptance of the Internet, and at the same time drive the upgrading of related industries and promote and drive regional and industry development.

-- Strengthen the popularization of the Internet. Government public service departments should increase publicity efforts to popularize the Internet among rural residents and let rural residents understand the Internet. They should not only let them understand what the Internet is, but also teach them how to use it. In terms of infrastructure, further promoting the popularization of informatization infrastructure such as mobile communications, broadband, computers and smartphones, while increasing investment in and transformation of rural logistics infrastructure, is of very positive significance for promoting agriculture's embrace of "Internet Plus."

In fact, in some relatively developed rural areas, such attempts have already been made. For example, Junpu Village, Xichang Town, Jieyang City, Guangdong Province, vigorously promotes the Internet entering villages in terms of policy support and platform building, improves infrastructure, and creates a hard environment. Junpu Village has been listed as one of the 4 key ecological demonstration zones built by Jieyang City, achieving full fiber-to-the-home coverage, with the fastest internet speed in Jieyang but the lowest price. To solve the shortage of e-commerce talent, relevant departments of Jieyang City jointly hosted the "Junpu E-commerce Talent Elite Training Class," established the Xichang Town E-commerce Association, e-commerce service center, training and finance station street and theme park, etc. All of these have created good conditions for the popularization of the Internet.

Multiple parties work together to boost the implementation of "Internet Plus"

In order to promote the practical implementation of "Internet Plus agriculture," Zhang Yaowen suggested that the government level should build more platforms, the enterprise level should participate more, and the social level should cultivate more. Only with the joint efforts of multiple parties can things be done well.

At the government level, build more platforms. Improve the construction of various hardware infrastructure such as the basic internet network environment and the basic logistics environment. Increase policy support for "Internet Plus agriculture" innovation, increase resource allocation efforts, promote the Internet entering villages and households, effectively make good use of various agricultural service platforms, and create a grand atmosphere and environment for "Internet Plus agriculture."

At the enterprise level, participate more. In the process of the Internet penetrating the entire agricultural industry chain, various innovative business models and business opportunities will emerge. Traditional agricultural enterprises need to find the "Internet Plus" that suits them according to their own actual conditions, and, combining their own advantages, win the three major battles of internetization: "selling goods," "gathering fans" and "building platforms."

At the social level, cultivate more. Further popularize internet and e-commerce knowledge among new rural entities such as large-scale breeding households, second-generation agricultural input operators, family farms and professional cooperatives, create conditions for them to obtain tangible benefits and advantages, play a demonstration effect, and through new rural entities drive the transformation of rural residents' overall internet awareness and concepts. The Taobao villages, and even Taobao counties, that have already appeared are a good start.