Why do large companies have layout agriculture?

news: so-and-so enterprise into agriculture, so-and-so big brother involved in farming. This seems to be a “cross-border boom”, even Gree Electric's Dong Mingzhu, such an iron lady, also began to talk about agriculture and even personally led the planning layout. Why these original and agricultural seemingly unrelated to the large enterprises, have begun to target this traditional field? What kind of business logic and future picture is hidden behind this? Today, we will use an easy-to-understand way to talk about the deeper reasons for the layout of large enterprises in agriculture.

From “farming” to “play agriculture”: what is the attraction of agriculture?

When it comes to agriculture, many people's minds may still be farmers sweating, facing the soil back to the sky. Agriculture is not a traditional industry in the past. Now agriculture, paying attention to technology support, brand empowerment, and model innovation, has become a real “golden land”. For enterprises, this is not only a field that can make money, but also a place that can “talk about the future.

1. Agriculture is the business of eating, and there will always be a market.

No matter how the times change, human beings are inseparable from eating. And agriculture is the source of all “food business”. Especially nowadays, as people's demand for health, quality, and nature continues to rise, the high-end agricultural market is rapidly emerging. From organic vegetables to ecological farming, these segments of the market is growing rapidly, with huge consumption potential.

2. From “industrial veteran” to “agricultural newcomer”, the threshold is not high.

For many large enterprises, entering agriculture is not as difficult as imagined. After all, they have funds, technology, and resources, these conditions can make up for the pain points of traditional agriculture. For example, technology-enhanced intelligent planting, efficient circulation of supply chain optimization, and value enhancement of branded operations ...... large enterprises have an inherent advantage in these aspects.

3. Policies are supportive, and the cost of trial and error is lower.

The state's emphasis on agricultural development is a trend that cannot be ignored in recent years. Whether it is the rural revitalization policy or special funds to support the development of modern agriculture, enterprises are being encouraged to participate in the agricultural field. For enterprises, this is a good business with low risk and high return.

Why do more companies focus on agriculture?

Agriculture, this ancient and traditional industry, why can attract the attention of technology giants, manufacturing giants, and even the capital market? Once considered “slow”, “bitter”, “heavy” agriculture, but now it has become a “new wind mouth” chased by all kinds of bigwigs! “. The reason for this is not only about the general trend of economic development but also the wisdom of corporate strategy and the new needs of social development. Let's analyze why these “cross-border big brothers” have set their eyes on agriculture.

1. The “fundamental” and “strategic” value of agriculture

As a fundamental industry for human survival, agriculture has an irreplaceable basic and strategic position. No matter how much technology advances, food will always be the cornerstone of social stability and economic development. For the big players, the attraction of agriculture lies in its “hardcore” value.

A big market for the national economy and people's livelihood: China is the world's largest country in terms of population, with a huge demand for food and agricultural products. With the upgrading of consumption, consumer demand for high-quality, safe food continues to grow, the market is not only large but also still expanding. What the big boys see are long-term rigid demand and stable return potential.

The strategic significance of food security: the state attaches great importance to the issue of food security, agriculture is not only an economic issue but also a political and social issue. Big Companies investing in agriculture is not only a commercial behavior, but also an important way to comply with the policy orientation and participate in the national strategy.

2. Consumption upgrading promotes agricultural value re-engineering

In recent years, with the improvement of residents' income level, people's demand for “food” has shifted from “eating enough” to “eating well” and “eating healthy”. “. Agricultural products are not only commodities to fill the stomach but also become a symbol of quality life.

Huge demand for high-quality agricultural products: consumers are increasingly willing to pay a premium for pollution-free, green, organic, and other high-end agricultural products. Big players see the potential in these high-value-added areas and believe they can capture the market through branding and standardized operations.

New business opportunities for functional agricultural products: From low-sugar fruits to nutrient-rich grains, consumers are beginning to pursue the functionality of agricultural products. Empowered by science and technology, the big boys can customize to meet this trend and give more business value to agriculture.

3. The natural fit between technology and agriculture

Modern agriculture is no longer the traditional “face to the soil, back to the sky”, but an industry highly dependent on scientific and technological innovation. From a technical point of view, agriculture has a natural fit with many modern technologies, which provides entry opportunities for the big players.

The vast space of technology applications: the Internet of Things, artificial intelligence, gene editing, big data analysis, and other technologies, the application of which in the field of agriculture has only just begun, but the potential is huge. Big Compay see this window of opportunity to inject new vitality into traditional agriculture through “science and technology + agriculture”.

The ability to integrate resources: Big enterprises usually have the ability of technology research and development, capital investment, and industry chain integration, which are exactly what modern agriculture needs. The big guys can quickly occupy the agricultural science and technology plateau by integrating resources.

4. Intrinsic driving force of industrial chain integration

Agriculture is not an isolated industry but is closely related to manufacturing and service industries. Big Compay's layout of agriculture, not only focuses on agriculture itself but also hopes to realize the integration and synergy of upstream and downstream industries through agriculture.

The extension and expansion of the manufacturing industry: for example, behind Dong Mingzhu's entry into agriculture is Gree Electric's strategic logic of “technology empowerment”. Gree's technological advantages can help agriculture realize equipment automation and production intelligence, and agriculture also provides a new business growth point.

Retail and brand linkage: For some enterprises with channel resources, agriculture is a key link in building the whole industry chain. From field to table, mastering the production of agricultural products can enhance the stability of the supply chain and improve the competitiveness of the end market.

5. Historical opportunity of national policy support and rural revitalization

In recent years, China has put forward the strategy of rural revitalization, and agriculture has become a key area of national support. For big Compay, this is not only a windfall for investment in agriculture, but also a good opportunity to respond to the call of policy and fulfill social responsibility.

Attractiveness of policy dividends: Various kinds of agriculture-related subsidies, tax incentives, and land policy reforms provide strong support for enterprises to enter the agricultural field.

Realizing the social value of enterprises: by investing in agriculture, large enterprises can drive the development of the rural economy, increase farmers' income, and improve the construction of rural infrastructure. This not only helps enterprises to establish a good social image but also a “combination of business and public welfare” in the long-term layout.

6. Agriculture's “slow growth” and “stable return” characteristics

Although agriculture is not as explosive as the Internet, its long-term stability and anti-risk ability are equally attractive. Especially in the current economic environment, many big players regard agriculture as an important part of asset allocation.

Highly anti-cyclical: Demand for agriculture is less affected by economic cycles, and no matter how the economy fluctuates, people will always need to eat. This robustness makes agriculture an important option for diversifying investment risk.

Considerable long-term value: Although agriculture may not be a short-term high-profit industry, with population growth, climate change and other long-term trends, the value of agricultural assets will continue to increase, and become a “long-term investment” worth holding.

The real game of the enterprise in agriculture

That large-scale enterprises involved in agriculture, specifically did what? Not everyone imagines directly taking the hoe to the ground, but through “technology empowerment” “brand upgrading” and “model innovation” to play new tricks.

1. Upgrading agriculture with technology: from traditional to modern

Agriculture has entered the era of intelligence. Technologies such as drones, the Internet of Things (IoT), and big data are changing the way of planting and farming. For example, a dairy company uses AI to monitor the health of cows, which greatly improves farming efficiency; another example is intelligent greenhouses, which can be precisely planted throughout the year through real-time monitoring of temperature and humidity.

2. Empowering agricultural products with brands: turning ordinary products into “golden brands”.

Many agricultural products were originally “kept in the bosom of the unknown”, but through the enterprise's branding operation, the price can be instantly doubled several times. For example, some companies have launched “high-end rice”, not only through packaging but also through story marketing to make the product more valuable.

3. Establishment of a new agricultural model: from individual fighting to industrial integration

Traditional agriculture is about fighting alone, while large enterprises are talking about industry chain integration. For example, they will introduce financial services in the field of agriculture, modern logistics, and even cultural tourism projects, to create a new model of “agriculture +”, so that agriculture becomes more valuable.

The challenges and opportunities co-exist, can large enterprises play agriculture?

Of course, although agriculture is a “fat field”, planting a good not so easy. Especially for some inexperienced cross-border enterprises, there are still a lot of challenges.

1. Agriculture is not a “quick money” business.

Agriculture has a long cycle and high risk. For example, planting is affected by weather, and market prices can fluctuate dramatically. If you are not prepared to invest for a long period, it is easy for you to give up halfway.

2. Lack of specialized personnel

Agriculture is a very specialized discipline, cross-border enterprises often face a shortage of talent. Especially those high-tech agricultural projects, the demand for composite talents is even higher.

3. How to balance social responsibility and business interests?

Agriculture involves the interests of farmers and rural economic development, enterprises not only have to consider profitability but also have to take into account social responsibility. How to find a balance between the two is a big question.?

But the opportunities are equally obvious. For example, the support of national policies, the efficiency improvement brought by the technological revolution, and the broad market provided by the rural revitalization strategy are all favorable factors that enterprises can seize.

Imagination of the future of agriculture

Future agriculture will no longer be farming in the traditional sense, but a deep integration of technology and nature. It is not only related to people's daily lives but will also become an important area of global sustainable development and technological innovation.

1. Smart agriculture: a new revolution driven by science and technology

The future of agricultural production will be fully intelligent. Through the Internet of Things (IoT), big data, and artificial intelligence, agriculture will usher in a dramatic increase in efficiency and precision.?

Unmanned farms: In the future, farms may not need manpower at all. Drones can efficiently complete tasks such as sowing, fertilizing, and spraying pesticides, robots are responsible for picking and sorting, and sensors monitor data such as soil moisture and crop growth in real-time, automatically adjusting the optimal management plan.

Precision agriculture: Precision agriculture based on satellite remote sensing and geographic information systems (GIS) can accurately predict climate change, pest and disease risks, and even “customize” planting programs for each crop. This not only reduces the waste of resources but also maximizes yield and quality.

Intelligent greenhouse: The greenhouse of the future will rely entirely on intelligent control systems. By monitoring temperature and humidity, light intensity, carbon dioxide concentration and other parameters, automatically adjust the environmental conditions to provide the best growing environment for crops, to achieve efficient planting throughout the year.

2. Vertical agriculture: a new model for breaking through land restrictions

With the advancement of urbanization, land resources are becoming increasingly scarce, and traditional agriculture is gradually restricted by space. Vertical agriculture provides a possibility to solve this problem.

Multi-story planting: Utilizing the interior of high-rise buildings for vertical planting, making full use of space resources. For example, through hydroponics, aeroponics and other soilless cultivation techniques, high-density planting can be realized in limited space.

Urban agriculture centers: Future city centers may have “agriculture buildings” where fresh fruits and vegetables can go directly from the production site to the supermarket shelves, greatly reducing the cost and loss of transportation and storage.

Environmentally friendly: Vertical agriculture can recycle water and nutrients through a closed-loop system, while using renewable energy to power the farms, greatly reducing their impact on the environment.

3. Integration of agriculture and energy: a breakthrough in the zero-carbon era

In the future, agriculture will not only produce food but can also be an important source of clean energy. The combination of agriculture and energy will open up new paths for global green development.

Biomass energy: Using agricultural waste (e.g. straw, crop residues, etc.) to produce biofuels will transform agriculture from “energy-consuming” to “energy-producing”, realizing the efficient recycling of resources.

Agricultural carbon sinks: Through sustainable farming practices (e.g., reducing land tillage, planting carbon-sequestering crops, etc.), agriculture will become an important means of absorbing carbon dioxide, contributing to the global goal of “carbon neutrality”.

Combination of agriculture and solar energy: future farmland may be covered with translucent solar panels, a mode of “complementary photo-agriculture” that does not affect crop growth and can provide renewable energy, killing two birds with one stone.

4. Deep integration of agriculture and health industry: personalized nutrition and food safety

With the popularization of the concept of health, agriculture will no longer be limited to “planting and breeding”, but will be deeply integrated with the health industry, providing consumers with a full chain of services from field to table.

Food Traceability System: Through blockchain technology, every piece of agricultural product can be traced back to the place where it was grown, how it was grown, and how it was transported. Consumers can not only buy with confidence but also pay a reasonable premium for quality agricultural products.

Personalized agricultural customization: In the future, agriculture will directly serve individual needs. According to the consumer's genes, and health data, planting crops suitable for their constitution, such as low-sugar fruits developed specifically for diabetics.

“Agriculture and Tourism Integration” Experience Economy: Agriculture is not just about production, but can also be part of experiential consumption. Through the model of sightseeing agriculture and agro-entertainment, people can go deep into the fields and enjoy a healthy and natural lifestyle.

Conclusion: Agriculture, the redefined “golden land”.

Large enterprises have a lot of agriculture, not on impulse, but in the future value of the land of agriculture. Agriculture is the oldest industry of mankind, but in science and technology and market catalyst, it has renewed new vitality.

It is foreseeable that, with the support of national policies and the promotion of corporate capital, the future of agriculture is not only synonymous with farming, it will become a fusion of science and technology, branding, and ecological industrial highland. And our ordinary consumers, will also because of these changes, eat more healthy, better quality agricultural products, and enjoy a better life. Agriculture, the golden land, is becoming part of everyone's future life!