The next five years will be the golden period of agricultural mergers and acquisitions.

On January 4, Simba, founder of agriculture, consulting expert in food industry and founder of New Farmers Alliance, founder of New Agriculture Business School, visited the topic of "New Agriculture and New Farmers" in an online interview. Experts interpreted the current development situation of the new agricultural industry and the difficulties encountered by new farmers in investing in agricultural projects and their solutions.

New farmers should watch out for blind investment and not be too ahead of time.

At present, there are many explanations and definitions for the group of new farmers. Simba believes that modern farmers committed to the production and flow of safe food are new farmers, which includes not only agricultural producers, but also agricultural distributors, and some cross-border investors.

He believes that the return of the new agricultural industry to the market is still a question of how to make money. There is room for imagination in agriculture in the future. now the land can be transferred, and farmers can integrate small plots of land into large growers, cooperatives and farms.

"but it is important for farmers to decide what to grow, and if they want to grow basic, well-fed foods, the added value may be lower. Return to the market, still can not get market income. When entering the new agriculture industry, investors should make good plans, think about how to carry out scientific breeding, think about where the market profit point is, and should not invest blindly. " Simba said.

Huang Dejun believes that at present, new farmers encounter some problems in the process of production and management: first, the problem of positioning; second, the new agricultural industry itself is cyclical, how do new farmers grasp the cyclical law? Third, the sustainability of the new agricultural industry, due to the restrictions of the operating objects of agriculture and the limitations of its industrial chain, its investment period and payback period are relatively slow. New farmers entering this industry must consider their own financial resources and time, that is, the input of production factors.

Simba agrees with Huang Dejun's view that some new farmers from across the border do encounter a lot of difficulties in making investment. "there are many new farmers who work in this agriculture with a sense of cleanliness, and even say that the fruits they grow catch bugs themselves for the sake of zero pesticides, thinking that only in this way can they have the courage to bring their products to consumers. But as a result, the cost is higher, while the efficiency is decreasing. "

He also believes that new farmers investing in agricultural projects should still follow the market and should not leap too far ahead, and new farmers should grasp the pulse of market changes and adjust according to market changes.

Agricultural products e-commerce to save greater opportunities logistics is still a deficiency at present, agricultural e-commerce is developing rapidly, Huang Dejun said that how to shorten the flow link and improve flow efficiency has become an important issue in the development of agricultural e-commerce. Through Tmall, JD.com and other e-commerce sites can greatly save the middle six to seven levels of links, consumers can get real benefits. New farmers start their businesses more from the field of circulation, through some new technological means such as e-commerce model to achieve their own value. At present, the original value and added value of agricultural products in our country is about 1ve1.8, but in developed countries, the circulation efficiency of our country is relatively poor compared with that of foreign countries, but there is an opportunity to overtake in the corner in our country, which is in the Internet.

Simba also agrees with Huang Dejun's view. "O2O is indeed a very good mode of e-commerce for agricultural products in the future. At present, the Ministry of Commerce is also promoting a way of thinking that industrial products go to the countryside and agricultural products go to cities. Some high-quality agricultural products should be introduced into the developed coastal cities, bringing some vitality to the local economy. How to use the Internet to sell these products to developed cities, what is missing in this path is the way of circulation. "

The next five years will be the golden period of agricultural mergers and acquisitions.

Huang Dejun also said that agricultural enterprises need the driving force for sustainable development, in addition to financing strategies, but also to make full use of the advantages of investors. "how to design this business model based on the Internet, about how much money to invest, this aspect is quite related."

As for the development trend of the new agricultural industry in 2015, Huang Dejun believes that the general direction of the new agriculture in the next three years is mergers and acquisitions. Because the enterprise scale of the new agricultural industry is still relatively small, the concentration is also very low, and the market share is not high, the next five to ten years will be a prime time for mergers and acquisitions.

"mergers and acquisitions include mixed mergers and acquisitions, mergers and acquisitions between brands, vertical mergers and acquisitions, etc., in addition, the business form of community O2O should also be considered in 2015." He said.