Where will millions of dealers in agriculture and animal husbandry industry go?

Why millions of dealers? of course, this is only an estimate, because no one knows exactly how many dealers there are. We can only roughly calculate that there are more than 6000 feed enterprises in the industry, and each enterprise has 100,200 dealers large and small, so millions of dealers have come out. Of course, it doesn't matter whether it's more or less. The important thing is, with the rapid change and development of the industry, where will these dealers go?

Dealers are faced with eight dilemmas

Dilemma one: the traditional dealer group will disappear quickly.

Dealers are in a period of integration and elimination, and provide a forecast of the transition time: pig feed dealers for 3 years. Future dealers will need more resources to serve terminals; of course, their name is no longer "dealer".

Dilemma 2: the end customer is changing rapidly

Next, with family farms and large-scale farming as the main body, there is a sharp decrease in the number of bulk farmers; medium and large-scale farms purchase materials and other production materials directly from manufacturers; farmers keep lowering product prices, while service requirements continue to upgrade; on the whole, the arrival of the era of low profits is unstoppable!

Dilemma 3: their own resources are limited, services can not keep up with the demand

Existing users are no longer a simple business relationship, there is an urgent demand for service platform, such as financing, information, technology, insurance, sales and so on.

Dilemma 4: lack of funds, serious credit sales, increased risk

End-users are short of funds and demand for credit sales remains the same. Credit is like usury, where there is capital, there are users and apparent profits, but this is obviously a high-risk gamble and a bottomless pit.

Dilemma 5: the advent of e-commerce, diversified promotions and a sharp drop in profits

Sales decline, many traditional dealers unilaterally rely on promotion. And often the result of sales promotion is to promote one sales, do not promote sales, or even promote but not sell. The disruption of e-commerce has gradually made feed prices and profits transparent.

Dilemma 6: poor brand awareness and extensive management

Traditional dealers fight alone, brand radiation is limited, single feed sales, do not have comprehensive competitiveness, poor brand awareness of end-users, easy to be impacted by miscellaneous brands. The model of mom-and-pop shop and family store can no longer meet the market demand, so it is necessary to have a set of systematic operation plan to build the platform, standardize the process, strengthen the management and optimize the details.

Dilemma 7: thinking can not keep pace with the times, will be eliminated

The functions of capital cushion, customer information, logistics and warehousing have changed, and the role of traditional dealers in the value chain has gradually weakened. If you can't keep pace with the times, you will be eliminated.

Dilemma 8: the existing channels are facing collapse, with both dangers and opportunities.

The current crisis is also an opportunity! Dealers want to change the model, but do not know how to change, and finally show confusion, hesitation, drift with the current. Dealers are looking forward to the innovation model, and with the strength, resources, clear strategy of the company coordinated development.

In addition to the career change of dealers, what should dealers do if they want to continue to survive and develop in the industry? Combined with the current situation of China's rural social, economic and cultural development and the characteristics of the agriculture and animal husbandry industry, the cooperative model is indeed the first choice. Why do you say so? Let's first take a look at the advanced aspects of the cooperative business model. Let's make a brief statement.

II. Advanced business model of cooperatives

Advanced I. Cooperative business model is popular all over the world.

The Rochdale Fair Vanguard Society (theRochdaleEquitablePioneersSociety), founded in 1843, is recognized as the first successful consumer cooperative, and its cooperative principle is known as the Rochdale principle. It mainly includes: (1) voluntarily joining and withdrawing from cooperatives; (2) voluntarily subscribing for shares and paying no dividends; (3) equal membership, democratic management, and one-person-one-vote system; (4) cooperatives buy and sell at a low price to ensure that the goods are genuine and accurate; (5) the balance of the year-end surplus will be returned to members according to the purchase ratio after withdrawing provident fund, public welfare fund and education fund. (6) the co-operatives remain neutral in politics and religion. The Roxdale principle is a progressive principle and a leap from fantasy to reality in the history of the cooperative movement. The information about "Roxdale Fair Vanguard Society" is extremely rich on Baidu, interested friends can check it again.

Since then, the International Federation of Cooperatives (ICA) was founded in London, England in 1895 and has continuously developed into 258 member organizations from 96 countries, representing more than 1 billion members in the world, and has become the largest independent international non-governmental organization in the world. In 1946, it was one of the first non-governmental organizations to enjoy the first advisory status of the United Nations Economic and Social Council. In 1992, the United Nations General Assembly adopted a resolution declaring the first Saturday of July each year as the United Nations International Day of Cooperatives.

In his message on International Day of Cooperatives in 2016, UN Secretary-General Ban Ki-moon said: "I urge governments to create an environment conducive to the prosperity of cooperatives. Let us use the new force of cooperatives to strive to achieve sustainable development goals and to create a world where everyone has dignity and opportunities. "

The International Cooperative Alliance defines cooperatives as autonomous organizations that meet common economic and social needs through jointly owned and democratically managed enterprises that people unite voluntarily. So far, cooperatives have flourished around the world: in Denmark, 98% of farmers join agricultural cooperatives; in France, the Netherlands, New Zealand, Australia, Japan and South Korea, more than 90% of farmers join agricultural cooperatives; in the United States, Brazil and Chile, more than 80% of farmers join cooperatives.

Advanced two: a decade of advocacy at the national macro level

The Law of the people's Republic of China on Farmers' specialized Cooperatives was adopted at the 24th meeting of the standing Committee of the Tenth National people's Congress on October 31, 2006. It shall enter into force as of July 1, 2007. The definition of cooperative in this law is: on the basis of household contract management in rural areas, farmers' cooperatives are producers and operators of similar agricultural products or providers and users of similar agricultural production and operation services, mutual-aid economic organizations with voluntary association and democratic management. Taking its members as the main service object, it provides services such as the purchase of agricultural means of production, the sale, processing, transportation and storage of agricultural products, as well as technology and information related to agricultural production and operation.

As early as when President Xi Jinping took office in Zhejiang, at the provincial rural work conference on January 8, 2006, he put forward the grand idea of "trinity" of farmers: professional cooperation, supply and marketing cooperation and credit cooperation. Since then, he has visited local cooperatives many times and paid close attention to the development of cooperatives.

During his research trip to Anhui on April 25 this year, President Xi Jinping presided over a forum on rural reform and delivered an important speech in Xiaogang Village, Fengyang County: "persist in taking solving the problems of agriculture, rural areas and farmers as the top priority of the whole party's work, step up efforts to promote rural reform under the new situation, comprehensively implement the policy of strengthening agriculture and benefiting farmers and rich farmers, and promote a solid agricultural foundation, harmony and stability in rural areas, and farmers living and working in peace and contentment." On the morning of May 24th, President Xi Jinping came to Jiucheng Rice planting Cooperative in Fuyuan City, Heilongjiang Province, and exchanged views with local cadres and masses to promote the exploration of agricultural supply-side structural reform. He pointed out that agricultural cooperatives are the direction of development and contribute to the steady and open pace of agricultural modernization.

The No. 1 document of the Central Committee also points out that cooperatives are the basic main body that drives farmers to enter the market, a new entity for the development of rural collective economy, and an effective carrier for innovative rural social management. Prime Minister Keqiang's government work report focuses on: great efforts should be made to develop a new agricultural management system, cultivate new agricultural operators such as large professional households, family farms, and farmers' cooperatives, and develop various forms of moderate scale operation.

The core principles of the construction and development of farmers' cooperatives are as follows: (1) members take farmers as the main body; (2) take serving members as the purpose to seek the common interests of all members; (3) join the cooperative voluntarily and withdraw freely; (4) mutual assistance and cooperation. This is the essential attribute of cooperatives, helping each other, unity and cooperation, and everyone gathering firewood, so that they have more and greater say in the market. This is the difference between cooperatives and other economic organizations in their behavior.

To realize "Chinese Dream", the cause of agriculture, rural areas and farmers is the key and support. However, at present, China's urban and rural regional development is uneven, the agricultural foundation is weak, and rural development lags behind. The issue of "agriculture, rural areas and farmers" is still the focus and difficulty of building a well-off society in an all-round way. How can we solve the problems of agriculture, rural areas and farmers in China? In fact, it is very simple, that is, development: modern agricultural cooperatives!

Advanced three: user platform, enterprise win-win situation

Through the integration of the three major business entities, a new type of agricultural management subject with division of labor and cooperation, complementary advantages and mutual benefit is formed. It has formed a business model in which enterprises do the market, cooperatives provide services, and family farms engage in production. The internal connection mechanism is established, and the interest connection modes such as order transaction connection, production factor fusion, mutual aid connection and so on are formed. Thus effectively solve the technical, market, service, capital and other difficulties in the production and operation of family farms, and enhance the benefit guarantee of members.

First of all, what benefits can members get when they join the club? There are many benefits, such as: (1) unified procurement to reduce intermediate costs, (2) obtaining financial support through financing, (3) reducing farming risks through insurance, (4) improving farming efficiency through services, (5) improving group sentiment through mutual assistance, (6) obtaining additional returns through dividends, (7) resolving end sales through collection, (8) soliciting policy support through associations, etc.

What are the benefits for dealers to take the lead in setting up and operating cooperatives? In a nutshell, there are at least eight items: (1) successfully achieve business transformation and upgrading; (2) turn the unit price difference into overall income; (3) turn a single fight into teamwork; (4) turn individual credit into bank financing; (5) reduce the physical and mental pressure of reminders; (6) improve management and increase information capacity; (7) integrate resources to obtain whole chain income; (8) enhance the brand to achieve life sublimation. Of course it's more than that.

So what are the benefits of enterprises leading and guiding dealers to build cooperatives? To put it succinctly, (1) can upgrade and optimize a number of potential customers; (2) then enterprises have the ability to support customer development and upgrading, so as to attract a number of high-quality customers to join their own system; of course, the deeper content is that in the process of building a cooperative system, enterprises integrate a large number of high-quality resources to build the industrial chain from another dimension.

III. Mixed predictions

Is it possible that all dealers can become cooperatives? Apparently not. If you make a rough prediction, how many people will have the opportunity to become a co-operative and then upgrade successfully? The proportion is less than 20%! This is the general trend of the development of the industry, which is basically independent of the will of people.

What kind of dealers have the opportunity to transform and upgrade? Can you give me some standards? Realistically speaking, we can give some standards for the combination of software and hardware. If the dealers who meet the following conditions, plus an excellent enterprise as the background platform, the success of the transformation is a high probability event.

(1) it ranks high in the local regional market, and the local cannot help raising it (the restriction is not important, but it cannot be banned).

(2) have the desire and willingness to become bigger and stronger.

(3) have the concept and mind of win-win cooperation.

As for other things, such as financing capacity, network resources, technical service capacity, and all kinds of resources, the more the better, if not at present, it does not matter, in the process of continuous operation of the cooperative, everything can be integrated.

Of course, the source of cooperative directors is not limited to dealers, but also large-scale farms, as well as existing marketing service personnel. There are also great differences in the key points of construction and operation of various forms of cooperatives. I'll share it later.

In view of the fact that cooperatives are an inevitable ecology of the industry, the Beijing Rural Cooperative Company under consonant International has ten years of experience, focusing on in-depth research and active exploration of the development model and operation mechanism of modern agricultural cooperatives. to create a sustainable business model of modern agricultural cooperatives. At present, a professional team of more than 30 people has provided professional cooperative top-level design, system building and operation guidance, big data services and professional coaches for enterprises and outstanding individuals in the agricultural and animal husbandry, agricultural materials, agricultural fertilizer and agricultural products industries. Fruitful results have been achieved. At present, the team is still steadily expanding, and we hope that more aspiring talents will join this professional team to provide more and more professional services for the whole agriculture and animal husbandry.