Low price is the apparent cause of overcapacity.

In recent years, although the price of wheat has increased slowly, it is still strong compared with processed flour, and there is a phenomenon of "strong wheat and weak wheat". The reporter recently learned from a survey of many flour processing enterprises in Henan Province that the problem of overcapacity is prominent and the overall poor benefit has become the most prominent problem in the flour industry, especially some small and medium-sized flour processing enterprises, which are on the verge of bankruptcy due to insufficient funds and poor sales.

Although large enterprises have the advantage of scale, their survival situation is not optimistic_wheat market purchase price is bullish, enterprise acquisition cost remains high

Zhumadian City Jiujiu Agricultural Products Co., Ltd. sales management department director Zhang Shaoying told reporters,"wheat strong face weak" phenomenon for them such agricultural industrialization leading enterprises is not too obvious, when the enterprise input cost is high, flour prices will also increase accordingly, if not sell high prices, enterprises will be difficult to survive.

"The newly built 500-ton operation line will be put into use immediately. Just recently, we received an order of 140 million yuan." Zhang Shaoying said.

Large enterprises can survive when they encounter the phenomenon of "strong wheat and weak wheat", but it is not easy for small and medium-sized enterprises. According to Zhang Shaoying, many small enterprises closed down because of rising production costs, falling profits and long-term operating losses. Large enterprises rely on production volume. In the face of rising flour production costs, most large enterprises will lower prices and reduce profits to seek sales.

But not all big companies can survive as calmly as Jiujiu Company.

Jinmailang (Tangyin) Co., Ltd. daily processing wheat 500 tons. Guo Zhanlin, the general manager of the company, looked helpless when talking about the wheat purchase price."Don't mention it. The wheat purchase price of Tangyin this year is almost the highest in the country, much higher than that of neighboring provinces. Now it has reached 1.32-1.325 yuan." The market support purchase allows wheat to have a guaranteed price, wheat prices rise, while flour prices increase less than wheat, even if we are such a large enterprise also some "breathless."

"Now we are producing one ton of flour. After deducting the cost of wheat, machine wear and tear, electricity charges, workers 'wages, etc., there is almost no profit in the end. Now we are only producing at break-even and paying workers wages." Guo Zhanlin said that because of the downturn in the flour industry this year, there are many loss-making enterprises. Now most flour processing enterprises do not make money at all, and the money for flour processing is not easy to earn.

Enterprises with strength can still "support hard", small enterprises are afraid of "injury"_lack of money to buy wheat, price competition is easy to endanger product quality

Since farmers can sell grain at the minimum after the state buys it from the market, farmers can also obtain greater benefits from selling grain. However, for flour processing enterprises, the cost of early investment will rise, and in the long run, small enterprises will not be able to stand it.

It is reported that if the industry benefits are not good in any year, the state will provide discount subsidy loans to leading enterprises, while small and medium-sized enterprises do not enjoy such preferential treatment.

Many large flour processing enterprises have their own fixed wheat source. "We store more than 100,000 tons of grain every year, part of which is purchased from local farmers. We also transfer more than 20,000 mu of land to grow high-quality wheat." Zhang Shaoying said, And small and medium-sized enterprises in the grain source is mostly subject to the market, Once the grain source problems, For enterprises will be hit.

"In this case, enterprises can only sell normally according to market prices, but raising prices will definitely not sell." The best way to solve this problem is to sell the products according to the rules of the market. If you lose money one month, you may earn it back the next month. The flour industry is also like this." Zhang Shaoying said that large enterprises have capital advantages and can still be "hard support", but for small enterprises, it can be "broken bones".

Flour as the raw material of most foods, flour quality should first be placed in the first place, quality stability, can consider the next price positioning, sales and other links. "But when the industry is in a downturn, small businesses are likely to have quality fluctuations, and once the quality is unstable, it will definitely affect their sales, and it will be difficult for enterprises to survive." Now many small factories have been swallowed up or closed down by the big ones, and prices are too low, which is a disaster for small factories." Henan a flour enterprise responsible person said so.

Flour industry needs "scraping bone healing", industrial chain integration is imperative_wheat "big production province" seeks to transform to "strong processing province"

This year, the wheat output of Henan Province reached 66.58 billion jin, accounting for more than a quarter of the national wheat output. The great abundance of raw materials also caused the flour processing industry to expand. There were 713 flour processing enterprises in Henan Province, with a processing capacity of 59.5 million tons, accounting for a quarter of the national wheat output.

Liu Wei, president of Henan Dacheng Grain and Oil Group Co., Ltd., said that in recent years, under the general environment of declining economic situation of the national grain and oil industry, the flour industry mainly has the problem of overcapacity. Because the flour consumed by domestic residents is mainly used to make steamed bread, noodles and other staple foods, the entry threshold of its processing enterprises is relatively low, which causes some investors to invest blindly. In addition, the equipment is backward, the technical conditions cannot keep up, and the production of special flour is helpless, resulting in the oversupply of ordinary flour.

Data show that in June, the start-up rate of flour enterprises nationwide was 46.2%, while that of small and medium-sized enterprises was only 17.9%. Shi Hongsong, chairman of Henan Shijia Flour Co., Ltd., said that the consciousness of going it alone must be changed, and only by uniting can we achieve industry leadership in the market segment. Not long ago, sponsored by Henan Province Branch of Agricultural Development Bank, the first provincial-level flour processing industry bank-enterprise cooperation development promotion association was established, with 61 flour processing enterprises in Henan Province participating, aiming to make Henan flour processing industry walk out of "cold winter."

According to Zhang Shaoying, their company now transfers more than 20,000 mu of land, planting two seasons every year, after wheat harvest, began to plant sorghum, and signed a contract with the winery, every year can get a part of profits from the field. Large-scale flour processing enterprises have large-scale, intensive and industrialized production, and their profit margins are better than those of small and medium-sized enterprises.

"It is still feasible to take the route of market segmentation and product differentiation." Zhu Lianliang, chairman of Xinxiang City Xinliang Grain and Oil Processing Co., Ltd., said that at present, wheat processing enterprises with the ability to produce special flour generally have insufficient production capacity or lag phenomenon, and the supply of special flour on the market exceeds demand.

At present, the flour processing industry is gradually changing from the original production type to sales type, service type and research and development type. Facing the present situation of flour industry, enterprises should avoid single large-scale production and blind diversified development as much as possible, develop special flour products, and increase benefits by saving energy and reducing consumption. In view of the development difficulties of small and medium-sized enterprises, the state should give certain policy and financial support according to its strength, and guide large flour enterprises to merge and reorganize small enterprises when necessary, or guide enterprises to unite.