The development of rural industrial integration needs "four-chain reconstruction"

  Authors: Gao Qijie, Director and Professor of Promotion and Innovation Research Center of College of Humanities and Development of China Agricultural University, and Yang Rui, Ph.D. student of College of Humanities and Development of China Agricultural University.

  The Central Rural Work Conference was held in Beijing from December 28th to 29th. At the meeting, General Secretary of the Supreme Leader emphasized that "from the overall perspective of the great rejuvenation strategy of the Chinese nation, the nation must be rejuvenated and the countryside must be revitalized". It is a long-term task to implement the rural revitalization strategy. Under the new development pattern, the integrated development of rural industries needs to seek breakthroughs and innovations in many aspects, and it is very important to put ideas first. Therefore, rural industrial integration should be based on the advantages of local characteristic resource endowments, correctly understand and respect the laws of agricultural and rural development, promote the "four-chain reconstruction" of industrial chain, value chain, supply chain and interest chain through vertical extension of agricultural industrial chain and horizontal expansion of agricultural functions, realize internalization of external effects, reduce transaction costs, and improve the quality and competitiveness of radiation belt power and industrial development.

  Extend the industrial chain and promote the upgrading of all links.

  In recent years, all localities have actively explored and practiced, and the development of rural industrial integration has shown a good trend, but there are still some inevitable problems. Many people unilaterally think that rural industrial integration is the integration of agricultural products production, processing and sales services, and they lack sufficient understanding and understanding of the economic, cultural, social and ecological functions of agriculture, so the degree of development of various functions of agriculture is not high. In the process of rural industrial integration, there is a lack of market-oriented and influential agricultural products development and brand building, which limits the industrial integration, especially the integration of processing industry and rural tourism. In the future, it is necessary to promote the vertical extension and horizontal function expansion of the industry.

  First, we must promote the vertical extension of industrial development.Rural industrial integration should respect the laws of rural development and agricultural production, aim at consumer demand, and steadily develop basic industries such as agriculture, forestry, animal husbandry and fishery. On this basis, we will extend the rural industrial chain, develop industries with market demand and local advantages such as food processing, textile processing, biomaterials and clean energy, open up the production end, circulation end and consumption end of the industrial chain, drive industrial adjustment and upgrading, enable farmers to share non-agricultural income nearby, fully mobilize farmers’ initiative, enthusiasm and creativity, and guide farmers to actively participate in modern agricultural production and improve rural labor productivity.

  Second, we must promote the horizontal functional expansion of the industry.By aggregating resource elements, we will expand the multiple functions of agriculture, develop "internet plus Modern Agriculture" and green eco-cycle agriculture, promote the integrated development of agriculture, tourism, culture, education and other industries, actively cultivate new formats such as cultural tourism, recreation and special folk customs, stimulate the endogenous development momentum of rural industries, and broaden the channels for increasing agricultural income and efficiency. For example, by activating village resources and village culture, we can promote the development of "agricultural tourism, cultural tourism and business tourism", make the countryside a place suitable for living and traveling, fully integrate "agricultural products entering the city and citizens going to the countryside", effectively expand the consumption market of villagers’ lodging and farmhouse catering, and create more economic benefits.

  Enhance the value chain and realize the appreciation of the whole chain.

  At present, a series of activities such as production, processing and sales are still relatively lacking in integration and interaction with external technologies and resources. At the same time, the connection between upstream and downstream is not flexible and dynamic, and the added value of products is low, so it is easy to ignore the analysis and satisfaction of customers’ potential needs. Therefore, it is necessary to promote technological innovation in the whole chain and product innovation in all links, accelerate the upgrading of equipment, processes and products, achieve high quality in the whole process and upgrade the whole chain, and give full play to the "multiplier effect" of rural industrial integration.

  First, we must promote technological innovation in the whole chain.The popularization and application of emerging technologies have strong externalities and spillover effects, which are helpful to promote the optimal allocation of production factors and the transformation of production methods, and realize the intensification, informationization and intelligence of production. On the one hand, we should strengthen agricultural technology research and development. Promote the application of modern information technologies such as Internet of Things and cloud computing in the whole industrial chain, improve the level of integration and interaction between agricultural technology research and development and agricultural production, food processing, biomaterials and other industries, meet the diversified needs of the market, and comprehensively upgrade the value chain. On the other hand, we should attach importance to agricultural technology popularization. Deepen the reform of agricultural technology extension system, adhere to demand-oriented agricultural technology extension, provide agricultural technology services with strong applicability and high matching for different departments and diversified agricultural business entities, accelerate the spread and diffusion of technology in the whole agricultural industry chain, improve the adoption rate of agricultural technology, and promote the transformation of agricultural technology into efficient practical productivity.

  Second, we must promote product innovation in all aspects.Carry out the activities of "improving quality and increasing efficiency" of agricultural products, dig deep into the diversified value of agriculture, and promote the synergy and simultaneous appreciation of the primary, secondary and tertiary industries. First of all, solve the problems of "what to plant" and "what to raise". Guided by market demand, improve the planting structure, enrich the varieties, build a standardized system of agricultural production, strictly standardize the production process, ensure the quality and safety of agricultural products, and increase the production of high-quality agricultural products that are in short supply in the market and marketable. Secondly, solve the problem of "what to process". It is necessary to promote the deep processing of agricultural products, carry out grading packaging and grading pricing, standardize storage, extend storage time, reduce storage losses, and maximize the added value of agricultural products. Finally, solve the problem of "what to sell". Rural industries should build high-quality characteristic agricultural products brands in a planned and phased manner and sell safe and high-quality agricultural products.

  Optimize the supply chain to meet the demand of product supply and marketing

  Rural industries are mostly located in remote areas, with high logistics costs, and agricultural products are faced with the dilemma of "the fragrance of wine is also afraid of the depth of the alley". Therefore, rural industrial integration urgently needs to open up the supply and demand chain, expand sales channels, save circulation costs, and achieve effective docking of production and marketing.

  First, we must improve infrastructure and improve the comprehensive supporting service system.First of all, efforts should be made to improve the rural transportation network. "All roads lead to prosperity", it is necessary to build rural transportation facilities, smooth the circulation and sales channels of agricultural products, and promote the transformation of resource advantages into competitive advantages. Secondly, promote the logistics construction project of "cold chain storage", speed up the cold chain facilities and standardization construction of agricultural products and food, effectively solve the problems of product preservation and storage, and reduce transportation costs and process losses. Thirdly, improve the rural logistics service system, promote strategic cooperation with logistics enterprises, constantly promote the improvement of comprehensive service systems such as warehousing and transportation in various places, solve the problems of high logistics cost and slow delivery speed, and realize the "smooth flow of goods" of products.

  Second, we must connect production and marketing resources and build digital sales channels.In the process of rural industrial integration, we should rely on the enterprise platform and integrate local enterprises, cooperatives and other resources to explore the formation of an agricultural supply chain system that integrates the production, processing and circulation of agricultural products into one. At the same time, accelerate the construction of agricultural supply chain information platform, deepen the application of big data in agricultural production and operation, share information such as policies, markets and finance, effectively open up supply and marketing information channels, create online and offline sales channels for agricultural products, and promote agricultural products to accurately connect with the vast consumer market.

  Improve the interest chain and realize the sharing of development achievements.

  At present, the construction of interest linkage mechanism of rural industrial integration needs to be strengthened. There are differences in the ability of farmers, farmers’ professional cooperatives and leading enterprises to obtain information and win policy support, and the distribution model of rights, responsibilities and benefits is not clear enough. General Secretary of the Supreme Leader pointed out that it is necessary to accelerate the development of rural industries, conform to the law of industrial development, base on local characteristic resources, promote the development and growth of rural industries, optimize the industrial layout, improve the interest linkage mechanism, and let farmers share more value-added benefits of industries. Therefore, it is necessary to build an effective interest linkage mechanism, stimulate the vitality of multiple subjects, and form a development pattern of complementary advantages and risk sharing.

  First, we must build a multi-form interest linkage mechanism.Rural industrial integration should deepen the understanding of interest linkage mechanism, pay attention to the demands and needs of multiple subjects, and let all subjects share the value-added benefits of the whole industrial chain. First of all, we should innovate the interest linkage mechanism of "order agriculture". Encourage leading enterprises, e-commerce companies and other industrial and commercial capitals to sign agricultural products purchase and sale contracts with farmers and farmers’ professional cooperatives, transform rural development formats with big data, improve the scale and organization level of agricultural products supply, enhance the sustainable supply capacity of agricultural products, increase the return of profits, and maintain stable cooperative relations. Secondly, encourage the development of joint-stock cooperative interest linkage mechanism. We will carry out voluntary participation of farmers in land management rights and idle farm houses to develop agricultural industrialization, promote various forms of joint-stock cooperation among farmers, farmers’ cooperatives, village collectives and leading enterprises, and promote "guaranteed income+dividend by shares" to tilt the income distribution ratio to farmers.

  Second, we must stimulate the vitality of multiple subjects.For farmers, it is necessary to let farmers create and share the value-added benefits of industrial chain and value chain more directly, protect their legitimate rights and interests, and reduce their insecurity caused by "fear of loss". For industrial and commercial enterprises, it is necessary to improve their expected benefits, smooth the channels of information disclosure, reduce the uncertainty caused by "information asymmetry", improve their enthusiasm for investment, and give full play to their leading role in technology, information and management. For grass-roots governments, efforts should be made in "soft power" to create an efficient and clean political ecology, maintain a fair market environment, mobilize the enthusiasm of administrative personnel, play the role of organizer, coordinator and server, and give full play to its role as a link between farmers and industrial and commercial enterprises. In addition, government departments should communicate and coordinate effectively, form a joint force, promote the formation of a joint management and interactive co-construction mechanism, better guide the integrated development of rural industries, and achieve agricultural efficiency and farmers’ income.