Feed industry competition upgrade large enterprise integration small enterprise breakthrough
In recent years, the number of feed enterprises in China shows a decreasing trend of 1000 every year, the new manufacturers are mostly concentrated in large feed groups, and the living space of small and medium-sized enterprises is shrinking day by day.
As of December 2014, the number of enterprises in the country that had obtained feed production licenses was 7061, 3000 less than at the end of 2013. Such a figure reveals two messages: one is that more and more stringent environmental regulations and policies have led to the closure of more small factories; and the other is that the integration of the industry is speeding up, with the strong getting stronger and the weak being eliminated.
A new pattern of feed industry is being quietly established. Between the big factories from the previous discount, credit sales to the current resources, has been a great improvement, there is no war but the effect of subduing the army. Customer service, has been from the original primary interest-driven, to a full range of resources.
New Hope, twins and Dabei Nong are now doing bank joint insurance for dealers, feed companies as guarantees and helping customers bear part of the interest, while the money goes straight back to the feed factory. Large manufacturers use this way to transfer the capital pressure smoothly, and the dealers also solve the capital problem smoothly.
However, this kind of guarantor's qualification can not be obtained by any enterprise. Some small and medium-sized enterprises, banks do not give guarantors qualifications, so they will face the loss of dealers, and eventually lose market share.
A few years ago, manufacturing was the manufacturing industry, and the capital market was the capital market. Today, there is no shortage of successful cases in the intimate integration of capital and feed entities. To get to the bottom, this is a competition between traditional industries and capital markets.
Once upon a time, the United States was also tens of thousands of feed companies, now, after the completion of the integration, most of the market share has been concentrated in the hands of several major feed groups.
China's feed enterprises are also on this road now, but how long they will go depends on the integration ability of large enterprises and the breakthrough ability of small and medium-sized enterprises. For small and medium-sized enterprises, whether to sit and watch their old customers, waiting for large enterprises to kill, or constantly innovate and break through, and continue to expand in scale, will be a more and more serious problem.
However, what is certain is that the bloody competition will lead to a situation in which the industry will become orderly, profits will become transparent, funds will become more controllable and the industry will have more and more sense of security. This will be our common pursuit.
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