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Jiangsu Lvgang on how agricultural transformation and upgrading drive the formation of new production entities

"China's greenhouse horticulture is in a stage of transformation and upgrading, and major changes are taking place in producers and production methods. On the one hand, the situation of single-farmer production is changing, and large-scale enterprises, cooperatives, and family farms will gradually become the main body of production. The tradition has gradually changed to scientific planting, digital planting, and digital management. Informatization, digitalization, and automation will play an important role. Therefore, constrained by land and labor factors, China's greenhouse horticulture will decrease in overall scale in the future, but will improve and increase in quality and intensification," said Mr. Li Wenhu, Chairman of Jiangsu Lvgang Modern Agriculture Development Co., Ltd during a conversation with Hortidaily.

A mode of moderately large-scale operation that is dominated by enterprises and supplemented by cooperatives and family farms is taking shape
"The key to the transformation of China's agriculture from traditional to modern agriculture is to cultivate new types of production entities and form a moderately large-scale operation model that is dominated by enterprises and supplemented by cooperatives and family farms. The small and scattered traditional farmers will be gradually replaced. Instead, the standardized industrialization production of the vegetable industry is inevitable. Jiangsu Lvgang is the first enterprise engaged in the research, development, and promotion of the entire industrial chain in the sector, aiming to incubate and cultivate these new production entities and provide them with comprehensive services. This means that we participate in the construction of the entire industrial chain as well as the service system, from park planning, design and construction, operation, and agricultural material distribution to supply chain services. The Jingdong Agricultural Science and Technology Demonstration Industrial Park in Xinzhuang Town, Suyu District, Suqian City, Jiangsu Province, is a typical benchmark project. The project covers a total area of 732 mu (around 48.8 hectares), with a total investment of 300 million yuan. The protected agriculture covers an area of 647 mu (around 43.1 hectares). The area of high-end intelligent agricultural facilities is about 200,000 square meters. Lvgang is responsible for its planning and construction, equipment research and development, operation, standardized production and precise management, and the development of high-quality vegetable brands. Our partner Jingdong Group provides technical support in finance, retail, logistics, and ecology. China's Internet companies are very developed. As a tool, the Internet will be widely used in all aspects of modern agriculture. Agriculture + Internet is a must for modern agriculture, but it cannot be Internet + agriculture, especially agricultural production."

"The formation of a new type of production subject will also redistribute resources. Standardized and large-scale production can maximize the use of resources. The development of modern agriculture requires funds, talents, and technology, while China's traditional agriculture has a strong foundation, and the lack of enterprise-oriented and intensive management and technical personnel is a pain point it is facing now. At the same time, the long payback period of agricultural investment also restricts capital investment and restricts the development of the industry."

The development model of 1+X
Mr. Li continues, "According to China's national conditions, Lvgang has launched a development model of 1+X. 1 refers to the core park, that is, to build a core park in a suitable area based on certain counties and districts. The core park has five major functional areas. The first is a high-tech standardized production area, the second is a seedling production area, the third is a demonstration area for modern agriculture, the fourth is a processing and logistics distribution area, and the fifth is a training area for new-generation farmers. The core park will become a regional display, service, training, and sales platform, providing a full range of services from production, and processing to sales for the development of the local vegetable industry. Relying on this core park, build X small production-oriented parks in qualified towns, and cultivate small enterprises, cooperatives, and family farms to engage in cooperative management. The core park provides seedlings, technical services, and product recycling for the X parks."

For more information:
Li Wenhu
Jiangsu Lvgang
Modern Agriculture Development Co., Ltd.
Tel.: +86-13708989808

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