Global Agriculture

Take multiple measures to expand and strengthen the agricultural products processing and distribution industry

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30 November 2023, China: The agricultural product processing and circulation industry plays an important role in building an agricultural industrial system and promoting the integrated development of primary, secondary and tertiary industries. It is a bridge connecting the past and the future. It is also an industry with great potential and high benefits among rural industries. Vigorously developing the agricultural product processing and circulation industry is not only a practical need at this stage to build a modern industrial system based on national and agricultural conditions, but also an inevitable choice to smooth the national economic cycle and continuously improve the quality of life of urban and rural residents. The “Opinions of the Central Committee of the Communist Party of China and the State Council on Comprehensively Promoting Key Works of Rural Revitalization in 2023” clearly states that the agricultural product processing and distribution industry should be expanded and strengthened. This is of great significance for firmly grasping the “local specialties” and effectively promoting the revitalization of rural industries, thereby accelerating the construction of an agricultural power and promoting the modernization of agriculture and rural areas.

To make the agricultural products processing and distribution industry bigger and stronger, it is necessary to improve the technical level, extend the industrial chain, and follow the path of transformation and upgrading of standardization, scale, and clustering. First, we can rely on mechanization to consolidate the “basic base” of primary processing of agricultural products. Strengthen independent research and development of primary processing technology and equipment for agricultural products, promote green, clean, smart and efficient primary processing technology and equipment for agricultural products, and accelerate the construction of a mechanized production service system for primary processing of key products. Secondly, we should actively guide important agricultural product production reserves, advantageous areas of specialty agricultural products and large agricultural enterprises to develop intensive processing of agricultural products, promote the integration of industry, academia and research, expand varieties, improve quality, build brands, and transform “original brands” into finished products. Finally, to improve the added value and competitiveness of products, it is very important to extend the industrial chain and enhance the value chain by closely following the “grain head, food tail” and “agriculture head, industry tail”. Focus on supporting leading enterprises and “chain master” enterprises in laying out raw material bases and processing capacity, coordinating the layout and construction of agricultural product processing industrial parks in the main production areas of grain and important agricultural products, and guiding agricultural product processing enterprises to sink to the production areas and concentrate in the parks. At the same time, we strive to build an industrial cluster in which raw material base, processing and transformation, marketing, logistics and distribution are connected end to end, connected up and down, and echoed back and forth.

To make the agricultural products processing and circulation industry bigger and stronger, we need to continue to make efforts to improve the circulation network, make up for the shortcomings of circulation, and achieve coordinated development of processing and circulation. The processing and circulation of agricultural products are two aspects that cooperate with each other rather than being isolated from each other. In practice, we should coordinate and develop all aspects of agricultural product processing, fresh storage, transportation and sales in a timely manner, guide agricultural product processing enterprises to extend to the front and drive farmers to build raw material bases, and extend to the back to build logistics, marketing and service networks, and accelerate the transformation of agricultural product processing into main products. The pattern of gradient transfer among regions, characteristic and advantageous production areas, key sales areas and key logistics nodes. On the one hand, we should use the improvement of cold chain circulation as a breakthrough to reduce losses and increase efficiency, and adjust market supply and demand. Deeply implement the construction project of cold chain logistics facilities for warehousing and preservation of agricultural products, support family farms, farmers’ cooperatives, rural collective economic organizations and other entities in building warehousing and preservation facilities at the production site, build cold chain distribution centers at the production site at important circulation nodes, and strengthen large-scale refrigeration and preservation, warehousing and logistics, etc. We will build public welfare infrastructure to ensure supply and further improve the backbone logistics network and cold chain logistics system for agricultural products. On the other hand, we actively rely on information infrastructure such as big data, cloud computing, the Internet of Things, and smart terminals to reshape and upgrade the agricultural product supply chain, improve the resilience and sensitivity of the industrial chain and supply chain, and improve the management and operation of the entire circulation process. efficiency.

To make the agricultural products processing and distribution industry bigger and stronger, new business formats need to be regarded as important development opportunities to better meet the ever-escalating consumer demand and continuously open up new market space. Under the guidance of a new round of technological revolution and industrial transformation, the consumption demand of urban residents is rapidly escalating. The demand for convenient, fast, nutritious and safe processed food is increasing day by day. New business formats such as direct supply from farmers and businesses, processing experience, and central kitchens are constantly emerging to provide agricultural products. The development of the processing and distribution industry provides important opportunities. The emergence of new business formats has also prompted the agricultural product processing and circulation industry to actively improve production and supply models to a certain extent, increase the supply of diversified, customized and personalized products, reduce circulation costs, improve circulation efficiency, and better adapt to different consumption levels and groups. , scene needs, and achieve deep integration with industries such as leisure, tourism, culture, education, science popularization, health care and elderly care.

To make the agricultural product processing and distribution industry bigger and stronger, it is necessary to improve the interest linkage mechanism, adhere to the goal of common prosperity, and leave opportunities for employment and income increase to rural areas and farmers. The agricultural product processing and distribution industry connects the three major industries, the two major sectors of rural and urban areas, and the three major groups of corporate farmers and consumers. In the process of development and growth, the relationship between interest distribution should be properly handled. In practice, support family farms and farmers’ cooperatives in developing primary processing of various agricultural products, support agricultural product processing and circulation enterprises in jointly building raw material bases and marketing facilities with farmers, and increase income locally and nearby; support agricultural product processing and circulation enterprises in stabilizing and expanding employment, and working with farmers Establish stable orders and contractual relationships, and enable farmers to reasonably share the value-added income of the entire industry chain in the form of “guaranteed income, dividends based on shares” and other forms.

(Author: Xiao Xiao is a special researcher at the Beijing Research Center for Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and an associate professor at the School of Marxism at Beijing Normal University) 

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