How does Capital adapt to the slow Logic of Agriculture

It remains to be seen whether giants accustomed to rapid expansion can adapt to the slow logical thinking of agricultural production, and whether they can be content with the low-income normal state of agriculture and return to a quiet and indifferent state of mind.

Recently, the capital tentacles of Evergrande Group, a well-known real estate enterprise, have been extended to the agricultural sector, setting up high-profile grain and oil, dairy and animal husbandry groups, and held an unprecedented ordering conference at the same time. It is reported that it plans to invest more than 100 billion yuan to build China's agricultural national brand.

In fact, there is a reasonable logical explanation for Evergrande's cross-border investment in agriculture. Food is the most important thing for the people. China, as a country with a large population, has a huge rigid demand for agricultural food, and this industry can undertake hundreds of billions of capital investment from real estate bosses. Moreover, the development of modern agriculture in China lags behind, although the urbanization reform has opened a window for invigorating rural land resources and promoting the transformation of traditional agriculture, however, the bottleneck of capital, talent, technology, information and ideas still restricts the development of modern agriculture. This situation also gives capital "bottom-reading" intervention to form a good opportunity.

Especially in the context of increasing dependence on grain imports and widespread concern about food safety issues, agricultural products launched in a high profile with the health concepts of "green" and "organic" are even more pre-emptive. The national brand image established in the market has been transplanted to a new field, and the scale effect of diversified industries is beginning to show. In this regard, the strong capital strength and marketing promotion ability have laid the foundation for Evergrande to enter modern agriculture, which timely meets the practical needs of the current agricultural transformation and development.

But it should be mentioned that agriculture in China has never been a profiteering industry, but a relatively fragile field. Not only the industry itself is extremely vulnerable to flood disasters, cold snap and other natural factors, but even high-tech modern agriculture can not fully deal with these risks.

In addition, agricultural investment should follow the objective law of plant growth, and it is impossible to produce the effect of getting rich quickly like real estate development. Once the company grows into a multinational agricultural giant, it should always be on guard against food price fluctuations caused by social factors such as import and export policy adjustments, exchange rate changes, population growth and other social factors. Any management oversight and forecast mistakes may be dealt a fatal blow.

In short, China's modern agriculture does need the intervention of big capital, but it remains to be seen whether the rapidly expanding giants can adapt to the slow logical thinking of agricultural production, whether they can be content with the low-income normal state of agriculture and return to a quiet and indifferent state of mind, to be an evergreen tree in the field of agriculture.