Agriculture and animal husbandry industry is facing six major changes
"All changes are opportunities," Zhao Ming, chairman of Consonant International, said at the feed industry development summit in Hebei Province on March 19 that the industry is undergoing tremendous changes, with challenges and opportunities coexisting.
Zhao Ming analysis, new hope Liuhe, Dabeinong, Jinxin and other enterprises crazy acquisition, Hefeng animal husbandry to foreign investment, large-scale agricultural and animal husbandry enterprises will be urgently in need of resource efficiency, including cross-border resources or the use of capital force to intervene in the industrial chain, and "stop big expansion" is the preferred choice today. This also shows that the marginalization of feed is becoming more and more obvious, and the interests of the industrial chain are redistributed.
Zhao Ming said that the biggest threat to SMEs in 2016 is not to seize the city, but to increase the price of raw materials. In 2015, most feed companies saw a 30% drop in sales, but profits grew, thanks to lower raw material prices. But this is unlikely to happen often.
In addition, large-scale feed enterprises will become breeding enterprises, food enterprises, and local resource competition between small and medium-sized enterprises will continue. Scale farms, modern agricultural cooperatives and family farms will serve as important clients for quite a long time.
Zhao Ming concluded that the agriculture and animal husbandry industry is facing changes, challenges and opportunities:
Change I: Change of Aquaculture Population and Revolution of Aquaculture Model
1. The withdrawal rate of retail maintenance households is accelerated and irreversible.
2. The number of professional households and small-scale pig farms has increased.
3. The industrial chain extension attitude of large-scale agricultural and animal husbandry groups has been increasingly determined, and the number of modern pig farms has increased.
4. The mode of stocking will blossom vitality in a certain period of time.
5. Family farms with integrated cultivation and breeding have been gradually established.
6. The self-supporting model has proved to be inefficient.
Change II: Upgrading of Feed Enterprises and Extension of Industrial Chain
1. The focus of upgrading feed enterprises is to shape differentiation, including resource encroachment, and avoid vicious competition.
2. The extension of industrial chain is to create differentiation threshold and increase customer linking ability.
3. The result of raising breeding level is to make product performance more obvious and customer selection more rational.
Change III: Channel Transformation and Upgrading Promoted by E-commerce
1. Agricultural and animal husbandry E-commerce makes prices more transparent.
2. The unit profit of distributors declined, and the production space of distributors shrank.
3. Channel transformation and upgrading: from monthly salary system (price difference) to annual salary system (comprehensive profit).
4. Distributors: business transformation, such as modern cooperatives; management upgrading, such as distributor enterprise management.
Change IV: Practice Driven by the Age of Entrepreneurship
1. Internal entrepreneurship (performance incentives).
2. External entrepreneurship (hitting local tyrants, dividing land).
3. Platform entrepreneurship (shareholding of marketing companies).
Change Five: Capital Subversion and Financial Innovation
1. Better to do well than to buy well: this is the power of capital.
2. Reduce the pressure of management and channel on external capital.
Change VI: Small Population Mode Opens the Embryo of Regional Industrial Chain
1. Minority consumption is beginning to sprout.
2. Separation of terminal consumption is an inevitable trend. How to guide it is a gap that regional industrial chain must bridge.
3. Organic, ecological and resistance-free. At present, the concept is bigger than the reality. It is prudent to operate. It is not only tall but also big that there is a consumer group.
