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Business / Industries

Brand is the new way for China's agricultural dream

(Xinhua) Updated: 2015-02-07 17:15

It highlighted the challenges facing China's agricultural sector, including surging production cost, shortage of agricultural resources, excessive exploitation and worsening pollution. It also encouraged agricultural enterprises to go international to tap global supply and demand.

COFCO acquired Dutch trader Nidera and Hong Kong-based Noble Agri last year, giving the country direct access to South American grain and oilseed supplies.

Private players also step up overseas ventures. The New Hope Group, China's largest private agricultural business, has opened more than 40 plants across 20 countries, with an expected annual growth of about ten new overseas branches each year.

"Supportive initiatives such as the one belt and one road will provide more opportunities for agribusiness overseas expansion," said Liu Yonghao, board chairman of the New Hope Group.

Go online

As mobile Internet sparks business model reforms in nearly all sectors, entrepreneurs believe agriculture should also ride the powerful wave by integrating online and offline resources.

COFCO set up e-commerce platform WOMAI.com to link production regions directly with customers, saving logistics costs and promoting local brands.

The New Hope Group helped establish a pasture in southwestern China's Yunnan Province online by selling milk directly to customers through internet orders and express delivery.

Yunnan Province now is home to many Internet-savvy agricultural start-ups and has nurtured a unique economy based around large plantations, with agribusiness brands featuring high-quality produce and online-to-offline interactive services.

Liu is reported to have invested millions of dollars to build a more internet-connected agribusiness over the next three to five years, including a mobile internet platform to finance cash-starved farmers and offer farming training and consultation.

"With the powerful engine of the Internet, pigs can 'fly', cows can 'fly' and farmers can also be high-fliers," said Liu.

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