Big Farmers in China's Organic vegetable Market should be cautious in Investment

The 2015 China International Food Safety and innovative Technology Exhibition opened in Beijing on June 11. the three-day exhibition attracted nearly 100 enterprises, including Cofco, Crane, Nestl é and other well-known enterprises at home and abroad. In the exhibition, food enterprises, no matter the size of the field played the "whole industry chain" signboard, in which safety, health, organic fruits and vegetables have become a must-kill.

At the exhibition, the author saw that the exhibitors brought green and refreshing fruit cucumbers, purple eggplant and red tomatoes, which attracted many visitors to stop and taste. According to the exhibitors, this is the first link of their whole industry chain, which is the organic fruits and vegetables produced in the safest way. Some of these organic vegetables are used not only for sale, but also for the production of dumplings, vegetable noodles, and so on. Exhibitors say frankly that they do not make money in ecological fruit and vegetable cultivation.

Organic vegetables are called "pure and pure" food, from base to production, from processing to marketing, there are very strict requirements. In many processes from production to processing, the use of synthetic substances such as pesticides, chemical fertilizers, hormones and genetically modified genes is absolutely prohibited. The biggest problem encountered in the cultivation and production of organic vegetables is the problem of fertilizer. To this end, growers have to raise their own cattle and sheep.

As China's organic vegetable industry is in the stage of development, there are not many competitors in the industry, but the product differentiation is not big, so it is more inclined to price competition. Some of the organic vegetables of many enterprises are transported from nearby provinces, and the cost of freight is high, so the organic vegetables purchased by consumers are expensive. On the other hand, as consumers pay more and more attention to the safety of fruits and vegetables, the supply is far less than the demand, so the price of organic fruits and vegetables is also much higher than that of ordinary vegetables. Take the western blue flower as an example, the price of one jin of organic blue flower reached 35 yuan in October last year. The organic vegetables produced by some vegetable farmers are sold to Hong Kong and can be sold at a price of hundreds of yuan per jin.

Because the price is attractive, there are many people who are optimistic about this market, and some farmer friends are also eager to try. However, the relevant person in charge of Zhonghe Group warned that this market looks attractive, but it is not easy to do, because the preliminary work will take at least 3 to 5 years, or even longer, the input is particularly large, but the benefit is not particularly high. For large enterprises, the deep processing of food and the industry within the group can be used to subsidize the short-term unprofitable deficiency of fresh food, but the income is risky, and farmers need to be very cautious in their investment.