China Agri facilitates rural development starting at the source of the value chain. We help guide farmers on how to modernize their approach by providing training, technical support and other services. We actively develop new and innovative ways to cooperate with local farmers and look to introduce new technology so as to foster greater innovation in the industry and eventually boost industrial development. We offer supply guarantees for agricultural products and have signed contract farming agreements with farms. We also set up our processing plants in strategic locations to not only boost our processing volumes, but also to expand local employment and benefit rural communities.
1. Increasing Farmers’ Income
While developing our integrated business, we pay a great amount of attention to protecting the interests of farmers. We believe initiatives related to protecting farmers and increasing farmer income to ensure their willingness to grow grains are vital for the sustainable development of a business and securing a stable supply of raw materials. One example of this is how we consciously build our processing facilities near the fields. This allows farmers to sell their products nearby, which reduces their costs and increases their income.
We also provide farmers with support and services, including funding, seeds, pesticides, technical guidance, storage, drying and pricing support. All of these help encourage farmers to grow crops and reduce some of risks that they confront. It also increases their incomes further.
2. Promoting Agricultural Progress
We actively promote made-to-order farming and contractual planting. With models such as “company + government + farmers”, “company + farm”, and “company + cooperatives + farmers”, we leverage on our expertise to give farmers advice on how to adjust their grain production to market conditions and demand, how to optimize farming structure, and how to optimize their product mix. In addition, we also give farmers on-site technical support.
With localized made-to-order farming, contractual planting and other models, China Agri offered reliable product supplies by maintaining the scale, stability and availability of high-quality raw materials. Meanwhile, these models played an important role in facilitating healthy agricultural development in China, and promoted modern and intensive development of China’s traditional agriculture.
3. Promoting Rural Development
Our processing subsidiaries located in major raw materials production areas, form a relatively complete value chain in their locations and help support the economic growth of many local areas. In addition, they absorbed a large number of excess rural labors to work on tasks such as material purchase, processing and transportation. These jobs not only provided rural labors with new job opportunities, but also allowed them to learn necessary skills and gain production management experience essential for them to become modern agricultural workers.
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