COFCO Group Co., Ltd.:
Be a good national team for stable production and supply of agricultural products
Our reporter Qiao Jinliang
China's edible oil "revolution" first originated in COFCO.
In the mid to late 1980s, COFCO was keenly aware that healthy and nutritious refined edible oil would have a large market.
As a result, they united several domestic and foreign companies to establish China's first modern Sino-foreign joint venture oil processing enterprise.
From the unloading of raw materials to the processing of edible oil, all of them are automated. COFCO has raised the consumption level of Chinese edible oil to an international level.
Since its establishment, the COFCO Group, which is the same age as the Republic, has devoted itself to the historical torrent of strengthening the country's comprehensive strength, ensuring the country's food security, and meeting the needs of the people's lives, and is closely linked to the destiny of the party, the country, and the people.
As the largest agro-food company in my country, COFCO has taken grain, oil, sugar, cotton, meat, and milk that are related to the Chinese people's table as its core business, and has embarked on an extraordinary path of development.
Focus on the main business of agriculture and food
In many industry exhibitions this year, Fulinmen rice noodle oil, Great Wall wine, Chinese tea tea, canned plum… these familiar brands of the common people appeared together in the form of "COFCO family" brands, attracting people to stop.
During the "Thirteenth Five-Year Plan" period, COFCO continued to improve its ability to operate bulk agricultural products, relying on the advantages of the entire industry chain from "field to table" to promote the organic connection of agricultural product planting, warehousing and logistics, production processing, and terminal sales. The accumulated investment in the industry in the past five years has exceeded 32 billion yuan.
The group has established a stable grain corridor between the world’s major grain production areas and emerging markets in Asia, organically connects the global grain supply chain system with domestic logistics, processing, and distribution networks, and achieves efficient control of the supply chain through integrated internal and external operations , Smooth the supply and demand cycle.
In 2020, in the face of complex situations such as the new crown pneumonia epidemic and violent fluctuations in the international agricultural food market, COFCO's core agricultural and food business profits exceeded 10 billion yuan for the first time, exceeding the same period and exceeding history.
After the outbreak, COFCO immediately shipped the first batch of guaranteed supplies to Wuhan, and publicly promised to the public that "continuous supply, no increase in prices, and no decline in quality".
It is the strong core business of grain, oil and food that supports these commitments.
They can quickly adjust and mobilize to connect raw materials, production capacity, inventory, and market demand.
During the epidemic, COFCO has supplied nearly 1.8 million tons of packaged grains and oils, more than 140,000 white striped pigs, and more than 8.6 million boxes of small-packaged meat to the country.
Today COFCO has grown into a veritable international food merchant.
The annual operating volume of agricultural products reaches 160 million tons, and more than 50% of revenue comes from overseas business. The global comprehensive processing capacity of major agricultural products exceeds 70 million tons. COFCO has a certain right to speak in the international grain, oil and agricultural product market. And other food resources have global allocation capabilities.
Reveal vitality through reform
All businesses of the COFCO Group are faced with a completely competitive market structure. It not only has to compete with local private enterprises with flexible systems, but also with strong international grain merchants.
COFCO aims at the world-class large grain merchants with global competitiveness, through reforms to expand the scale of core agricultural and grain businesses, improve efficiency, and explore to resolve the problems of state-owned enterprises' survival and development in fully competitive industries, and to become stronger and bigger. The way to reform to promote high-quality development.
As one of the first batch of pilot enterprises for the reform of state-owned capital investment companies, in recent years, COFCO has improved the modern corporate system, optimized the allocation of resources, steadily promoted the reform of mixed ownership and three systems, innovated the market-oriented system and mechanism, and effectively promoted the development of state-owned capital. Stronger and better and bigger.
As of the end of the "Thirteenth Five-Year Plan" period, the Group's operating income has increased by 23% compared to 2015, total assets have increased by 48%, and total profits have increased by 5 times.
Through the mixed reform, COFCO has introduced advantageous investors in different fields to quickly make up for the company's shortcomings in capital, technology, team, management, etc., and promote the sustained, rapid and healthy development of the business.
This year, COFCO will intensify its efforts to improve its core business layout, focusing on the main responsibilities, major products, key links and core capabilities, to ensure that the annual core business investment accounts for no less than 50%. The implementation plan of COFCO's three-year reform action is also Will be fully promoted.
Drive industry development
"COFCO has signed a purchase order with us and promised the lowest purchase price. This year's income has a bottom line." Wu Anbao, a major grain grower in Taolinsi Town, Miluo City, Hunan Province, said happily.
In order to solve the worries of farmers after growing grain, COFCO Yueyang Rice has face-to-face communication with farmers, signed an order for the purchase of 6000 acres of grain, and selected technical experts to provide on-site guidance, promote farmers' harvest and increase income, and promote the improvement and upgrading of agriculture.
In Yanshou County, Heilongjiang, COFCO promotes local rice planting, processing, brand building and infrastructure construction through “order farming”.
In the early stage, COFCO invested 600,000 yuan to promote the rice mulching field project to help it increase production and quality, thereby increasing the premium.
COFCO Grain's rice processing plant cooperated with local cooperatives to build a 20,000 mu rice planting base, plant high-quality rice in accordance with market demand and guarantee the purchase, and drive more than 1,000 local jobs.
As a leading agricultural enterprise, it must not only achieve its own high-quality development, but also lead the development of the entire industry and drive the entire industry chain to increase revenue.
Chen Tao, general manager of the Agricultural Industrialization Department of COFCO Trading, said that with order agriculture as the lead, COFCO provides services for the entire industry chain such as purchasing and storage, agriculture, and finance. In the past five years, the cumulative service area has exceeded 10 million mu, and the cumulative purchase of grain has exceeded 10 million tons.
Lv Jun, Secretary of the Party Leadership Group and Chairman of COFCO, said that COFCO has integrated its corporate strategy into the national strategy to serve the revitalization of rural areas in the new era and ensure that the people eat more at ease and eat healthier.
Our reporter Qiao Jinliang
Our reporter Qiao Jinliang