How does the agricultural capital market in the Internet era break through the traditional restrictions?

Agricultural product market scale

In 2015, China's agriculture, forestry, animal husbandry and fishery was about 6 trillion in market size. The agricultural production materials are mainly divided into seeds (100 billion), fertilizer (750 billion yuan), pesticides (380 billion yuan), and agricultural machinery (600 billion yuan). With the acceleration of land circulation, the main body of agricultural production and management in China is also changing. The large-scale plantation, family farms and rural cooperatives are rapidly emerging. The traditional “production-distributor-grower” business model of agricultural enterprises is changing. Changes in traditional production and management models have given rise to opportunities for agricultural industry upgrading.

Changes in rural areas

1, migrant workers out of the city

The population has flowed for many years, and the effective labor has gone out to work. The main concern is two points. One of the rural areas has a sharp decline in effective labor. Second, the growth of local migrant workers is higher than that of migrant workers. The trend of urbanization is obvious. In the foreseeable future, in the process of agricultural production, the lack of effective labor will inevitably lead to an increase in labor costs.

　　　 Migrant workers' mobility and the age of migrant workers (statistical bureau data)

2. Land transfer has shown an accelerated trend, and land transfer transactions are dominated by agricultural land. Due to the acceleration of land circulation, the conversion of traditional family farmers from a few acres to a dozen acres, as the land circulation continues to accelerate, the integration and scale of agricultural land is becoming more and more obvious, and the era of human farming is bound to be machined. Replaced by chemical operations.

How does the agricultural capital market in the Internet era break through the traditional restrictions?

(Source: Guangzheng Hang Seng)

3. The data of farmers' professional cooperatives has maintained a growth of 30%, and farmers are transforming into professional farmers. The great changes brought about by the specialization of agriculture must standardize and specialize all aspects of the agricultural production process.

How does the agricultural capital market in the Internet era break through the traditional restrictions?

Traditional agricultural enterprises

The traditional agricultural production enterprises have gradually optimized from the multi-level agency model. Many pesticide manufacturers have also seen the value brought by the Internet, and started to set up e-commerce websites. However, because rural users have not cultivated the habit of purchasing agricultural materials on the Internet, most e-commerce websites are to township-level or husband-and-wife stores. At the same time, due to the traditional channel joining mode, there have been problems such as various types of goods, and there are large competitions and conflicts between traditional channels and Internet channels.

How does the agricultural capital market in the Internet era break through the traditional restrictions?

Pesticide companies generally have a relatively small market and do not have strong channel control capabilities. In 2015, the top ten pesticide companies in China accounted for less than 4% of the market share. Through communication with senior traditional pesticide practitioners, one of the reasons for the credit sales problem is that the pesticide production enterprises do not have enough competitiveness, and the credit sales service is one of the competitiveness, which causes a vicious circle of the whole industry. It is once again proved that the ability of pesticide companies to control channels is generally weak.

How does the agricultural capital market in the Internet era break through the traditional restrictions?

Business opportunity

As professional farmers gradually form a scale, the number of cultivated land of professional farmers has gradually increased, and the sales channels of traditional husband and wife stores have been unable to meet the needs of professional farmers. The fact that farmers directly purchase agricultural materials through the Internet is still in the early stages of education. We believe that due to the increasing standardization and specialization of occupational land, there will be vertical solutions around the pain points in the production and management of farmers. In the new market, traditional agricultural production enterprises also need to develop from scratch to seize the needs of professional farmers. The previous channel model became a burden.

How does the agricultural capital market in the Internet era break through the traditional restrictions?

Appendix: Overview of Agricultural Development

China has always been a big agricultural country, but its per capita land is small. The path of development is more similar to the Japanese-Korean model. Priority is given to improving output through chemical fertilizers. Until now, a large number of migrant workers have gone out to work, land circulation has accelerated, and the emergence of intensification has brought new changes to the agricultural industry.

United States

In the 1940s, the completion of agricultural mechanization Since the beginning of the agricultural mechanization in the United States in the 1940s, the level of mechanization has continued to increase. At present, there are about 5 million tractors of various types, most of which are above 73.5KW, up to 276KW; 500,000 combine harvesters; deep-spinning machinery, land preparation machinery, seeding machinery, plant protection machinery, joint operation in agricultural production process The machinery is complete; the feed mill, milking machine and milk fresh-keeping processing equipment in the production process of animal products have been widely used; furrow irrigation, sprinkler irrigation and drip irrigation in water-saving agriculture have become a must in agricultural production; modern lasers, computers High-tech such as voice control has been widely adopted in agricultural mechanization. At present, the United States has entered the stage of full mechanization and automation.

Increased land yield in the 1960s

In the 1980s, the output of fertilizer input units decreased, and the environment was polluted, turning to a modern organization of ecological virtuous cycles.

How does the agricultural capital market in the Internet era break through the traditional restrictions?

Other countries

In the category represented by the United States and Canada, such countries have fewer people and labor shortages. The path of agricultural modernization is to greatly increase labor productivity. On the basis of mechanization, the focus is on biotechnology, and then agricultural modernization;

The second category represented by Japan and the Netherlands, where there are many people and abundant labor resources, and the path of agricultural modernization is to greatly increase land productivity, develop mechanical technology on the basis of biotechnology, and realize agricultural modernization;

The third category, represented by the United Kingdom and France, lies between the former two. The path of modern agricultural construction is the double improvement of land productivity and labor productivity.

(Original title: "Internet" era, how traditional agricultural enterprises break through their limitations to usher in new developments)