Agricultural products Wholesale Market suffers from declining performance

With the slowdown of economic growth, China's agricultural products wholesale market industry has also encountered the plight of declining transaction volume and declining profits, and a few markets have even closed down. Industry insiders point out that market pressure provides an opportunity for transformation and upgrading of the domestic agricultural wholesale market, brand chain, "Internet + market", and international trade are the three major directions for the transformation and breakthrough. the wholesale market industry of agricultural products is ushering in the 3.0th era of modernization and upgrading.

At the eighth China International Agricultural Trade Conference and China International Green Ecological Health Food Expo held a few days ago, the data released by the National Federation of Urban Agricultural Trade Centers showed that by the end of 2015, there were 4512 wholesale markets for agricultural products across the country, with an annual transaction volume of 3.97853 trillion yuan, an increase of 6 percent over the same period last year, and an annual transaction volume of 774.823 million tons, a decrease of nearly 0.9 percent over the same period last year.

"the wholesale market industry has a high degree of openness. During the rapid economic development a few years ago, a large amount of capital entered this field, coupled with the lack of planning, imperfect laws and regulations, and some local governments blindly attracting investment. This has led to serious overinvestment in the industry and intensified vicious competition. These accumulated contradictions have become even more prominent in the face of increased downward pressure on the economy. " Ma Zengjun, president of the national federation of urban agricultural trade centers, told Xinhua.

The reporter learned that in recent years, vicious competition in the wholesale market industry is very common, and similar situations have occurred in Wuhan, Chengdu, Xi'an, Shenyang, Harbin and other places. A small number of wholesale markets have adopted such means as rent-free and commission-free for dealers, cash subsidies and card interception to carry out vicious competition, resulting in fluctuations in transactions in the local wholesale market and rising prices of agricultural products.

The old contradictions have not yet been resolved, and new challenges have been "under the siege". According to industry insiders, in recent years, due to the implementation of the anti-corruption policy, the market trading volume of some high-end fresh agricultural products has dropped significantly, and the rise of e-commerce for agricultural products has also had an impact on the physical market.

"E-commerce for agricultural products does not make a profit from the transaction itself, but obtains investment from a third party to maintain its operation, subverting the original wholesale trading model, quickly occupying the market, and putting pressure on physical enterprises." Ma Zengjun said.

Liu Zhiren, counsellor of the State Council and researcher of the Rural Economic Research Center of the Ministry of Agriculture, pointed out that there are "shortcomings" in China's wholesale market industry, such as lack of understanding of the new economic situation, lack of ability to control the situation, and lack of power for industrial innovation, and there is an urgent need for transformation and upgrading.

Ma Zengjun believes that the wholesale market industry must run into the 3.0 era. The first generation wholesale market is characterized by "enclosure, courtyard and wall", and the hardware facilities are not perfect. Although the hardware facilities of the second generation wholesale market are basically sound, the function of the second generation wholesale market is not perfect. The third generation wholesale market is a modern market with advanced facilities, perfect functions, scientific management and active social responsibility.

Liu Zhiren believes that during the 13th five-year Plan period, the upgrading of consumption will bring great opportunities for China's agricultural product circulation industry. The wholesale market of agricultural products should study the new trend of consumption upgrading, create enterprise brands, and take the road of collectivization and chain operation.

In fact, in recent years, the trend of branding and collectivization of agricultural products wholesale market has become more and more obvious. at present, the largest number of development is Shenzhen Agricultural products Co., Ltd., the number of local markets has more than 30.

People in the industry believe that agricultural products are a new hot spot after the three major e-commerce hotspots of books, clothing and 3C, and e-commerce will play a more and more important role in the circulation of agricultural products.

The reporter learned that now the domestic wholesale market enterprises have basically "touched the net", some do platform e-commerce, some do business e-commerce. Although there are no successful cases yet, they are actively exploring new business type.

Sun Yujiao, general manager of Jilin Grain and Oil Wholesale Market, told reporters that the market has set up a unified Jilin grain and oil specialty network for dealers to sell soybean oil, japonica rice and other local characteristic agricultural products directly to consumers. "now some e-commerce advertise direct supply, in fact, many of them get the goods in the wholesale market, because the goods here are the most complete and the price is also cheap. Instead of doing this, it is better to use the market as a product base and do your own e-commerce. " Sun Yujiao said.

Some physical wholesale markets have also begun to try to expand the international market with the help of the "Belt and Road Initiative" strategy and multi-bilateral trade arrangements. For example, Huo Jianguo, former director of the International Trade Research Institute of the Ministry of Commerce, suggested that Chinese agricultural products wholesale market enterprises can study the arrangements for the upgraded version of the China-ASEAN Free Trade area and make full use of policies such as zero tariff. Take the initiative to dock with ASEAN wholesale markets or purchasers to realize the trade of advantageous agricultural products between the two sides.

"creating the international trade platform function of the wholesale market can form an international agricultural product price center and enhance the bargaining power of domestic agricultural products." Ma Zengjun said.