The 7 New Normals of China's Agriculture in 2015

Beginning in 2015, Chinese agriculture has entered a new normal with the Chinese economy as a whole. What are the contents of the new normal of agriculture and how should agricultural enterprises adapt, grasp and lead?

First, Transferring Modes, Adjusting Structures, Upgrading from Quantity to Quality In 2015, the No. 1 Document of the Central Committee emphasized that the most important task for the work of agriculture, rural areas and farmers is “accelerating the transformation of agricultural development methods.” This is the most pressing task under the new normal.

What to change? How to change? In a fundamental sense, it is to upgrade agriculture from quantity to quality!

The first is the emphasis on "characteristics." Agriculture in all parts of the country has its own characteristics. This is the geographical characteristics of agriculture and the natural basis for market differentiation. Focus on the characteristics, upgrade to “high quality”, work hard on scientific and technological innovation, green, organic and environmentally friendly ecological agriculture and beautiful countryside, realize from “point” to “chain”, from “big” to “excellent”, and from “excellent "The transition to "strong".

The second is to pursue efficiency, change the mode of agricultural production organization, and transform agriculture from decentralization to marketization, scale, and intensification. China's agriculture must change from what it sells to what it sells. It changes from a "carry-on sale style" to an "internet model," spanning the space and time in the fields and markets, making futures and order agriculture the mainstream, with scale, quality, and branding. Leading the market and gaining market speaking power.

Third, peasant cooperative organizations must change from a "product-cooperative style" to an "industry-chain style." Learn from the Taiwan Farmers' Association to carry out agricultural technology promotion, credit, and sales of agricultural products in the "small-scale modernization" model to open up the 12 industries. In recent years, a large number of industrial and commercial capital has entered agriculture, which will surely promote the transformation of traditional agriculture into socialization, large-scale division of labor, and large-scale cooperation.

2. The implementation of the New Agrarian Revolution enabled modern agricultural enterprises to display their hands on moderate scale operations. The State Administration’s "Guidance on Leading Rural Land Management Rights to Circulate and Develop Moderately Scaled Agricultural Operations" marks the Agrarian Revolution under the New Normal. At the beginning, the interpretation of this opinion in 32 words is: “The separation of the three powers, registration of rights, orderly circulation, modest scale, family foundation, farmers’ willingness, farmland farming, encouragement of grain production.” The fundamental role of this policy It is an opportunity to make the transfer and concentration of land possible. It is an opportunity for modern agricultural enterprises to show their talents.

For a long time, China's agriculture has been highly fragmented, and its small size and lack of money in its cultivation are major contradictions. This is a natural obstacle to agricultural modernization. The implementation of the new agrarian revolution, the separation of the three powers, the land can be concentrated in large farms, can also be given to industrial and commercial capital to do large-scale agriculture, agriculture has truly begun the process of modernization.

Moderate scale management is in line with China's national conditions. Where there is a large-scale model that can truly promote “large land concentration, large investment in capital, high-tech equipment, complete infrastructure, complete public services, diversified operations, and enterprise-style management”, there are few places that can be applied in China, in the world. It is also rare and only a handful of countries, such as the United States, Canada, Australia, and New Zealand, are suitable and "affordable."

On the contrary, China's modern agricultural road must draw more lessons from the patterns and experiences of Japan, South Korea, Israel, and Taiwan. These countries and regions, like mainland China, have a large number of people, and there is a serious shortage of cultivated land. In the development of modern agriculture, they focused on the development of advanced biotechnology and small-scale machinery, especially focusing on the needs of agricultural production in all aspects of pre-production, production, post-natal and rural social life. Supporting a highly-integrated social service system enables farmers to earnestly and confidently carry out family-operated intensive cultivation. The modest scale operation based on cooperation between Oita University and Industry University greatly increases the output rate of land and enables farmers' income and income of urban residents to reach Basic balance.

Third, to seize the market is to grasp the needs of individualization and diversification When the per capita GDP of a country exceeds 3,000 US dollars, it will enter a period of rapid development characterized by the full release of residents' purchasing power and consumption upgrades to stimulate economic growth. The average GDP of China in 2008 Reached 3312.6 US dollars. In the past, China’s consumption has a distinct model of immigration, and now individualization and diversified consumption have become mainstream, and the importance of ensuring product quality and safety as well as activating demand through innovation supply has increased significantly.

Chinese agricultural enterprises and food companies must firmly grasp this consumption trend and satisfy individualized and diversified consumer demand with new technologies, new products, new formats, and new business models.

The agricultural enterprises must clearly understand these two consumption characteristics, no longer blindly follow the trend to produce major roads and goods, change the business model, and determine the development strategy based on the new needs of consumers in the market.

Consumption upgrade is the upgrading of health level and the upgrade of product grade. People's consumption will become more exquisite. The cooking oil in the kitchen of the home has not only blended oil, rapeseed oil and peanut oil, but also olive oil and linseed oil, and is no longer monotonous; the consumption of milk has shifted from the normal-temperature milk that is well-preserved to the more nutritious pasteurized. The low-temperature milk, biscuits, and hericium began to raise the stomach, and instant noodles used nutritious real materials called "gei noodle"; on the shelves of organic food although consumers are dubious, but rather believe that they have, Do not believe it does not. As products and consumer grades are upgraded, consumption methods and marketing communications are also being upgraded. What if I want to drink fresh orange juice? In the past it was to go to restaurants, cafes or to squeeze at home. Now a new way has emerged - the commercial street fresh orange juice machine, coin, credit card, APP payment, WeChat, Alipay will do; o2o mode is very convenient and changed People's buying methods, including uncle and grandfather, are changing. The customer did not leave the house, and got on the Internet, WeChat, or telephone to get the oil, salt, and vinegar he wanted to buy. Soon, someone delivered home; the fragmentation of the means of communication represented by WeChat and WeChat made the spread a reality. Multi-centered and even decentralized, the dissemination of product information is approximately word of mouth and consumption has become personalized, but consumer information has spread extremely quickly. For these changes, companies must realize that they should keep up.

Fourth, Barbarians Intrude, Restructuring the Industry Order Nowadays, the agricultural sector has experienced unprecedented heat, which is mainly caused by the entry of capital talent outside agriculture. For the traditionally peaceful agricultural industry, the big brothers of industry and commerce came to the agricultural sector. Like “barbarians”, they brought huge amounts of money. They also brought in cross-border models, talents, and experience. They were invincible and the industry order was constantly being broken. Refactoring.

This kind of situation has both people's delight to pay attention to the aspect of agricultural investment in agriculture, and there are also great changes in the face of ups and downs. From the point of view of the agricultural sector, competitors do not know where to emerge suddenly, and this kind of abrupt change makes enterprises unable to prevent them. Therefore, the agricultural sector is both a hot spot for investment and a paradise for risk.

Industrial and commercial capital has a natural "predatory" nature, because it will naturally seize superior resources, outstanding enterprises and quality products. The entry of industrial and commercial capital into the agricultural sector will cause some negative impacts on agriculture and rural development without the necessary constraints and guidance. For example, a huge amount of industrial and commercial capital will impact traditional but high-quality small and medium-sized agricultural enterprises and product markets. Due to lack of strength, traditional enterprises are in a disadvantaged position in market competition and in mergers and acquisitions, and may be kidnapped by the pursuit of performance.

On the one hand, the “barbarians” broke in. On the one hand, in some industries, the original self-upgrade was carried out. Therefore, a large area of ​​new business must be established, annexed, reorganized, closed down and transferred in the agricultural sector. This is part of the new normal.

Fifth, do not use Internet thinking to change agriculture, let alone engage in modern agriculture. The Internet does not produce new things by itself. It uses the Internet's thinking to upgrade traditional industries, subvert the traditional information flow, capital flow, and material flow. The ecological environment of all traditional industries is There will be great changes. For this new normal, agricultural enterprises must take the initiative to meet and sincerely adapt.

What happens when a state-of-the-art technology is combined with one of the oldest industries?

First, the Internet has brought word-of-mouth and product experience to unprecedented heights and has dramatically changed the traditional way of marketing communication.

The advertisement is one hundred times less than a friend's recommendation. The Internet has taken this reputation to the extreme. Taobao’s evaluation system, whether positive or negative, can be openly and transparently searched as long as users are willing to do so. This makes the market more transparent, the information tends to be symmetrical, and word of mouth becomes the market’s passport. For SMEs, it is possible to surpass the old company.

In the Internet age, perhaps the product is still the original product, and the way of contacting and accepting the product is brand new, never before. The experience formed around products has become the content of business and consumer satisfaction. For example, the Internet can help members customize products, greatly satisfying the individual needs of the members; the Internet can help farms trace the origin of products or provide members with ways to monitor production processes; the Internet can help farms create virtualized products such as children’s education, or Farm games and more.

Second, the Internet is a new type of sales channel. E-commerce does not mean to open a shop at Taobao Tmall. For example, selling cakes, some people use Weibo, WeChat to promote, and then directly above the orders, products from mentioning or delivery, the business is doing a good job.

Fulai customer Hubei Yuanyefeng Food did not use traditional communication and distribution channels. It first established a micro-mart and relied on a small team and the company’s employees and friends and relatives to make the new product a reality.

Third, the flow of big data allows direct connection between production and sales. This is absolutely the ultimate goal of agriculture, which is to solve the "cyclical product ups and downs" problem.

The combination of the most traditional agriculture and the latest type of Internet is the fundamental way for agriculture. It is precisely because the original agriculture was highly fragmented and the information was highly asymmetric that made the agricultural products the blue ocean of today's e-commerce.

In the future, modern agriculture will be implemented only if the agricultural experience does not work, and only the Internet experience will not work. The future belongs to those who integrate the two better or the companies and people that the two parties work together with.

Sixth, one, two, three industry integration, agriculture has become the largest and most important industry in the future Modern agriculture is a highly integrated industry in the secondary and tertiary industries. Japanese agricultural expert Imamura Naramura referred to it as the “sixth industry”. Vice-Premier Wang Yang of the State Council also expressed the same concept when he visited modern agricultural construction in Beijing. He said that it is necessary to change the mode of agricultural development, speed up the building of a “continuous succession” of the agricultural industry chain, promote the integration of agriculture and the secondary and tertiary industries, and improve Agricultural modernization.

The law of modern agriculture in the form of industry is that one, two or three industries have been integrated and integrated into one. Under the new normal, China's agriculture has entered the era of integration of the two or three industries, transforming the original agriculture as a primary industry into a comprehensive industry, and China's agricultural modernization has truly begun.

Rural urbanization and agricultural industrialization, specifically, raising the level of agricultural product processing and value-added are modern agricultural methods and signs, and turning agriculture into a sixth industry has a key role in linking up with others. All agricultural production areas must vigorously promote the initial processing, intensive processing and comprehensive utilization of agricultural products, increase the added value of products, and cultivate leading enterprises to form pillars in the industrial chain of the production areas.

Rural urbanization is not a matter for farmers to go upstairs. The key is the transformation and upgrading of urban functions, which is a change in economic functions. Rural new industrialization, urbanization and the transformation and upgrading of secondary and tertiary industries complement each other.

Promoting the development of leisure agriculture and building beautiful countryside and beautiful China are another focus of the sixth industry.

The construction of beautiful China and beautiful villages is based on farming culture, with beautiful countryside as the rhythm, and based on ecological agriculture, integrates the development of leisure agriculture with the construction of modern agriculture, beautiful countryside, ecological civilization, and cultural and creative industries. The first industry and the third industry are integrated into one, so as to increase the employment of farmers and meet the leisure needs of urban residents.

At present, there are more than 1.8 million business entities including farmer's music, folk villages, leisure farms, and leisure farms in leisure agriculture, of which over 1.5 million are farmhouses and more than 40,000 are above the scale, prompting a large number of rural areas to change scenic spots and change rural parks. Agricultural products have become commodities, labor movements, and the air has become popular. They have become new forms of modern agriculture and modern consumption.

The future of modern agriculture is the largest and most important industry in the economic field. It is the industry that best represents the soundness and stability of a country's economy. It is an eternal sunrise industry! The integration of industry, industry, and industry is the keynote and main theme of the agricultural industry under the new normal and for a long time to come.

Seventh, holding the nose of the brand, winning in the market is a real win.

6 years ago, Folai took the lead in insight and put forward the "From the field to the table brand agricultural revolution," the statement, published three years ago, "Brand Agriculture" monograph, from helping the growth of agricultural enterprises to start successfully, brand as the starting point, and vigorously promote our country farming modernization.

Branding has become the consensus of the government's agricultural authorities and agricultural entrepreneurs. The brand is the nose of rural economic work. If you hold onto this nose, you will win in the market. Winning in the market is a real win!

What is brand agriculture?

Brand agriculture is a quality agriculture with quality and safety and health guarantees; it is a standardized agriculture that is produced and processed according to quantitative standards and has a consistent product; it is a value agriculture through appropriate screening, packaging, and processing for the appreciation of raw materials; a household is abandoned. Outdated state of production and management, large-scale agriculture with scale and high efficiency; it is a large food industry that can open up primary, secondary, and tertiary industries, and even control the whole industry chain to realize quality and safety traceability.

In short, branding agriculture is to completely change the traditional agricultural production, processing and management of ideas and methods, the introduction of advanced industrial management ideas, technology, brand marketing model and talent, the agricultural products like industrial products as processing and management, in a new way Revitalization and development. In the market, the kitchen table foods are fully branded.

In a word, there is no modern agriculture without brand agriculture! Brand agriculture is an important strategic path to achieve agricultural modernization, national modernization, and social sustainable development.

Find out the specificity and breakthrough point of brand agriculture.

Why is the marketing and branding of agricultural products significantly behind industrial brands?

I found that the backward development of agricultural brands is concentrated on non-deep processing products such as rice, noodles, fruits, vegetables, eggs, meat, and aquatic products. Originally, there are "two major difficulties and one misunderstanding" in the branding of non-deep processed foods, namely "low-value vulnerability, high-level homogeneity" and "taking the place of production as a brand and sharing resources". This is the particularity of agricultural products as a brand, and it is also the biggest difference when it comes to branding other fast-moving consumer goods, including deep-processed foods. There is a password for tableware and agricultural products as brands.

According to the difficulty and particularity of making a brand of agricultural products, I put forward eight rules for branding agricultural products in the book “Brand Agriculture”.

For example, rule one: seize public resources. The first step in creating a brand of agricultural products is to discover, discover and seize public resources, including origin resources and category resources. Except for deep-processed foods, the vast majority of agricultural products have natural strong origin attributes and category attributes. That is, whether the product's quality characteristics are authentic or not is determined by the place of production and the category. Like Huangyan's Tangerine, Anji dried bamboo shoots, Bacheng had hairy crabs, Lin'an produced small walnuts. Therefore, to make a kitchen table food brand, we must first seize the resources of high quality and special origin, and “take it for ourselves”.

Another example is Rule 4: Internal quality is differentiated and externalized. Differentiation is the fundamental principle of brand marketing. Different products have more marketing value, and it is easier to obtain favor from consumers, make brands, and sell high prices. However, agricultural products from field ranches are inherently highly homogenized and weakly differentiated products. What to do in the face of highly homogeneous products? Differentiate and externalize internal quality!