How to carry out the supply-side structural Reform in Grain Industry

A few days ago, the State Food Administration issued the Guiding Opinions on Accelerating the Supply-side Structural Reform of the Grain Industry (hereinafter referred to as the Opinions), and the top-level design of the Supply-side Structural Reform of the Grain Industry was officially released.

In recent years, the phenomenon of "five highs" superposition of high output, high purchase volume, high price, high import and high inventory has appeared in the domestic grain field, and the structural contradiction between supply and demand is prominent. As mentioned in the Opinions: "At present, multiple contradictions interweave in the operation of the domestic grain market, new and old problems are superimposed, the characteristics of phased oversupply of some grain varieties are obvious, the effective supply of grain circulation services and processing and transformation products is insufficient, the task of grain 'destocking' is arduous, and the current collection and storage system needs to be reformed and perfected, which fully demonstrates that the main contradiction in the grain field of our country has changed from total contradiction to structural contradiction. The main aspect of contradiction lies on the supply side."

How should the pace of supply-side structural reform of grain industry go? What's the point? Recently, the reporter interviewed relevant responsible comrades of the State Food Bureau and other experts to interpret the Opinions.

Vigorously develop industrial economy

Grain has dual attributes of public goods and general commodities. Accordingly, grain industry also has two missions: "allocating resources to ensure safety and developing industry to revitalize economy".

At the 2016 National Food Circulation Work Conference held at the beginning of this year, Ren Zhengxiao, director of the State Food Bureau, proposed that the "Thirteenth Five-Year Plan" is a transition period for the full release of the economic vitality of the food industry. "On the one hand, we shoulder the responsibility of ensuring supply, benefiting people's livelihood and keeping the bottom line," he said."We must do a good job in collecting and storing, managing reserves and stabilizing the market. On the other hand, we shoulder the heavy responsibility of revitalizing circulation, expanding domestic demand and stabilizing growth. We must vigorously develop the grain economy and promote the sustained and healthy development of the national economy."

A department head of the State Food Administration who participated in the drafting of the Opinions told reporters that with the economic and social development and the improvement of people's living standards, the consumption demand of urban and rural residents for medium and high-end and personalized grain and oil products has increased significantly, and the demand for grain intensive processing products has increased strongly. However, the supply structure of domestic grain products is difficult to match this, mainly manifested in the large supply of low-end grain products and ineffective products, and the small supply of medium and high-end products and intensive processing products. Some special-purpose functional products and deep processing products still need to be imported. Therefore, vigorously developing industrial economy and providing food products needed by society have become one of the main objectives and key tasks of promoting the structural reform on the supply side of grain industry, which is also emphasized again in the Opinions.

Therefore, the development of grain industry economy and the provision of products needed by society are the most suitable reform contents for grain industry at present, and are direct supply-side reforms.

At the 2016 Food Science and Technology Week held in May, Yue Guojun, academician of the Chinese Academy of Engineering, gave a set of comparative data: at present, there are less than 1000 kinds of corn processing products in China, while there are about 3500 kinds of corn processing products in the United States. In fact, the market demand for corn intensive processing is relatively strong, for enterprises, the value-added range of this kind of products is also relatively large, but at present the domestic demand and supply are not matched.

The Opinions put forward that we should vigorously develop the grain industry economy from the aspects of increasing the supply of diversified customized personalized grain products, accelerating the development of deep processing and transformation of grain, supporting and strengthening backbone grain enterprises, facility brand development strategy, promoting the development of grain industry cluster, developing grain circular economy, speeding up the elimination of backward production capacity, developing new grain management mode, etc. Through the development of industrial economy, promote the organic connection of production, circulation and consumption, and improve the adaptability and matching degree of supply to demand.

Developing industrial economy is a very important content. Relevant experts stressed that the industrial economy can be linked with the front end. What kind of grain varieties enterprises need can tell farmers what to plant and sell by giving play to the guiding role of circulation on production; if the products of enterprises are well connected with the market, they can also obtain better benefits.

Supplement circulation "short board" to improve service level

The grain industry to promote supply-side structural reform not only to "adjust the structure","change the way","strong industry","make up the board" is also a necessary lesson.

The person in charge said that at present, the construction of modern grain logistics facilities in China is relatively lagging behind, the development of informatization is slow, the backward situation of high logistics cost and low efficiency has not been fundamentally changed, and it is difficult to meet the realistic needs of rapid distribution, efficient distribution, smooth circulation and precise regulation of grain resources nationwide.

To promote the modernization of grain circulation capacity, we must break through the above-mentioned obstacles and bottlenecks. In 2015, with the approval of the State Council, the National Development and Reform Commission, the Ministry of Finance and the State Food Administration jointly issued and implemented the Construction Plan for the Food Storage and Supply Security Project (2015-2020) to comprehensively promote the construction of the "Food Security Project".

In April this year, the State Food Administration issued the Opinions on Standardizing the Informatization Construction of Grain Industry to standardize the problems such as unbalanced development, non-standardized construction, non-unified standards, weak replicability, poor integration with business, low investment efficiency, single breakthrough, insufficient interconnection and operation and maintenance in the informatization construction of grain industry. Experts pointed out that this is to speed up the elimination of "information islands" through top-level design, realize interconnection and interoperability, and make information effectively connected and compatible.

The "Opinions" issued this time further clarify that we should make up for the "short board" of grain circulation from the aspects of promoting the construction of grain storage facilities as a whole, accelerating the construction of modern grain logistics system, comprehensively promoting the informatization construction of the industry, and strengthening the construction of grain emergency supply capacity.

Improving the socialized service level of grain circulation is also one of the important tasks of supply-side structural reform of grain industry. "Opinions" pointed out that we should accelerate the improvement of the socialized service level of grain circulation from the aspects of promoting the construction of grain post-production service center, improving the "assured grain and oil" supply system, improving the grain quality and safety guarantee mechanism, and improving the market information service level.

Experts said that promoting the construction of grain post-production service center is to provide all-round and diversified high-quality services for new agricultural business entities and strengthen the connection between production and storage. Therefore, the development of industrial economy, the improvement of socialized service level and the modernization of circulation capacity constitute an organic whole, which needs overall planning and coordinated promotion.

Improve the system and mechanism of collection and storage

How to give full play to the guiding and feedback role of circulation on production and promote the adjustment and optimization of grain planting structure is also the key task of supply-side structural reform of grain industry. "Opinions" clearly, To reform and improve the grain storage system,"Continue to implement and improve the minimum purchase price policy for rice, wheat, Actively and steadily promote the reform of corn storage system."

The person in charge pointed out that reforming and perfecting the grain storage system is essentially to further straighten out the price formation mechanism, so that prices can really be determined by market supply and demand, and at the same time establish and improve the producer subsidy system to effectively protect farmers 'enthusiasm for growing grain. For grain farmers in the three eastern provinces and Inner Mongolia Autonomous Region, this year's corn collection and storage policy has been adjusted to "market-oriented purchase" plus "subsidies," that is, farmers sell corn on the market, and the financial department gives certain subsidies to producers.

Reform and improvement of the collection and storage system and implementation of the provincial governor responsibility system for food security are key measures. As early as the end of 2014, the State Council issued Several Opinions on Establishing and Perfecting the Provincial Governor Responsibility System for Food Security, making comprehensive arrangements for establishing the provincial governor responsibility system for food security. The "Opinions" once again emphasize "further implementation of local government responsibility for collection and storage." Experts pointed out that this is to promote the implementation of local responsibility for ensuring regional food security, better mobilize local enthusiasm, so that local governments can plan grain production, storage, transportation, processing, sales and other links as a whole to achieve coordinated development.

In addition, the Opinion actively advocates the development of "order food". The responsible person pointed out that this is aimed at establishing closer ties between the main body of new agricultural operations and enterprises. At the same time, high quality and good price of grain can also guide farmers to adjust their production structure. At present,"order grain" has many cases in all parts of the country, and achieved good results. For example, according to media reports, Pioneer Company and Nestle (China) Co., Ltd. carry out order grain collection in Gansu Province. Yinong Farmers 'Professional Cooperative in Jinchang City, Gansu Province has planted nearly 3000 mu of corn to supply Nestle for a long time.

The Opinions also pointed out that grain storage and processing enterprises will be encouraged to sign purchase contracts with professional cooperatives, family farms, large grain farmers and other new agricultural business entities. Encourage grain storage and processing enterprises to actively absorb farmers into shares in the form of land management rights, etc., so as to form a risk-sharing, revenue-sharing and long-term stable interest community.

In order to further encourage and guide large and medium-sized grain processing enterprises and feed production enterprises to actively enter the market, the Opinions clearly put forward in the safeguard measures to strengthen credit support, encourage financial institutions to innovate financial support methods, improve financial service efficiency, broaden enterprise financing channels and create a good financial credit environment.

Experts said frankly, policy acquisition has the bottom of state financial expenditure, and market-oriented acquisition loan threshold is relatively high, grain processing enterprises grain purchase needs a large amount of funds, if there is no credit support, acquisition is difficult to guarantee.