Beijing guarantees supply and stabilizes prices and builds three lines of defense: "daily supply, safe supply, and emergency supply". Do well in the six elements of "source, channel, large households, transportation, distribution, and retail"
Three lines of defense stabilize Beijing's "vegetable basket" and "meat case"
During the epidemic, irrational hoarding is very likely to transmit the pressure of price increases from the terminal layer to the wholesale market, which in turn affects the price and volume of daily necessities.
From the outbreak of the current round of the epidemic in Beijing until the resumption of dine-in meals on June 6, Beijing residents did not feel the pressure of supply cuts and price increases.
In more than ten press conferences on the prevention and control of the new crown epidemic, the Beijing Municipal Bureau of Commerce issued a very clear signal-Beijing has the ability to guarantee supply and stabilize prices in emergencies.
Faced with a super-large consumer city with a population of more than 20 million, how has Beijing achieved the word "stable" in the past five years?
Zhao Weidong, deputy director of the Beijing Municipal Bureau of Commerce, said in an interview with a reporter from the Beijing News that in the past five years, the Beijing Municipal Bureau of Commerce has established a relatively complete supply guarantee mechanism for daily necessities with relevant departments and enterprises, and has built and consolidated "daily supply, safe supply, "Emergency supply" three lines of defense, and the new crown pneumonia epidemic since 2020 has provided an opportunity to improve and innovate the mechanism for ensuring supply and stabilizing prices.
During this process, Beijing has established a "Beijing Team" that includes storage, slaughtering, wholesale, warehousing and retailing to ensure the supply of backbone enterprises. The government reserve mechanism has also acted as a "stabilizer" and "pressurizer" for market supply under emergency conditions. The role of the cabin stone.
Formulate contingency plans to cap prices to stabilize the "meat case"
On April 25 this year, there was a phenomenon of stockpiling and panic buying in the early stage of the current round of the epidemic in Beijing, and orders from various sales channels soared.
As a key supply guarantee enterprise in Beijing, Ershang Meat Group urgently released more than 1,200 tons of meat products to the market to stabilize the "meat case" of the capital citizens.
On June 10, in the cutting workshop of Tongzhou Headquarters of Beijing Ershang Meat Group, a white-striped pig from Dahongmen slaughtering bases in Hebei, Liaoning, and Inner Mongolia was cut into three sections, front, middle and back by two fast-rotating large saws. It is sent to different assembly lines, and workers divide, weigh and pack it, and the whole process only takes 45 minutes.
About 30% of the cut pork is used as frozen meat, which is stored in a cold storage at -18°C after being frozen; another 70% is stored as fresh meat at 0-4°C for delivery, and enters with the vehicle. Circulation markets at all levels will eventually be placed on the table of Beijing citizens.
"I haven't been home for 3 months. During this round of epidemic, there are more than 800 people in this yard directly stationed in the factory." Sun Tiexin, member of the party committee and executive deputy general manager of Ershang Meat Group, told the Beijing News reporter that as a key supply guarantee enterprise , Ershang Meat Group is the main force in the supply of meat products in Beijing.
"The production is available, the supply is available, the stock is not out of stock, the stalls are kept, and the price is not raised", which is related to the stability of the "vegetable baskets", "meat cases" and "milk bottles" of Beijing citizens during the epidemic.
In April this year, when the current round of the epidemic broke out in Beijing, Ershang Meat Group arranged for Chengde Dahongmen, Anping Dahongmen, Fuxin Dahongmen, Hulunbuir Dahongmen and other self-owned slaughtering bases to increase production capacity and give priority to ensuring the supply of the Beijing market; the company's logistics department deployed technology Excellent drivers have set up a special emergency support logistics class and are on standby at any time; three slaughtering bases in Beijing, including Tongzhou headquarters, have formulated emergency support plans for extreme situations to ensure that as long as the market has demand, 24-hour uninterrupted supply, and at the same time to all The dealers issue the maximum price limit of the day, and conduct on-site inspection and supervision of the implementation.
From April 22 to June 6, Ershang Meat Group released a total of 23,379 tons of meat products to the Beijing market, including 20,998 tons of fresh pork, 1,571 tons of beef and mutton, and 810 tons of cooked meat products.
During this period, Ershang's cooked meat products increased by 30.9% compared with the daily demand, and beef, mutton and fresh pork were basically the same as the daily demand.
All functional departments and sales teams of Ershang Meat Group are supplemented to the production line, 100% of which can meet the market order demand.
Sun Tiexin believes that the reason why the capital's pork supply can be stabilized under emergencies is due to the construction of the supply chain system over the years.
"When African swine fever hits in 2019, companies are facing the test of life and death. If pigs can't get in, where is the way out?" To this end, Ershang Meat Group accelerated its "going out", and carried out live pig breeding and slaughtering through mergers and acquisitions, leasing, and new construction. Processing and other industrial layout, so far, 13 slaughtering and processing bases have been established nationwide, with 31 subsidiaries.
In Chengde, Hebei, Fuxin, Liaoning, Hulunbuir, Inner Mongolia, Kaifeng, Henan and other places, "Dahongmen" has established cooperative relations with leading pig breeding enterprises such as Muyuan Co., Ltd., Zhengda Group, and Wen's Co., Ltd. to ensure the supply of live pigs.
The establishment of the slaughtering system enables Ershang Meat Group to flexibly allocate production capacity among different regions. Once a certain place encounters an emergency such as an epidemic, the "Dahongmen" in the surrounding provinces can quickly allocate supplementary supply.
In Sun Tiexin's words, assuming that one Dahongmen slaughtering base in Beijing stops operating due to the epidemic, the other two bases can also meet the supply demand.
"Daily, Safety, Emergency" Three Lines of Defense to Stabilize the Market
Ershang Meat Group is a microcosm of Beijing's mechanism of ensuring supply and stabilizing prices.
Zhao Weidong, deputy director of the Beijing Municipal Bureau of Commerce, said in an interview with a reporter from the Beijing News that Beijing is a super-large consumer city with a population of more than 20 million, and most of the daily necessities, especially vegetables and fruits, come from other cities.
"Combining the characteristics of supply, in recent years, we have established a relatively complete guarantee mechanism for the supply of daily necessities with relevant departments and enterprises, and constantly consolidated the three lines of defense of daily supply, safe supply and emergency supply. First, the market monitoring mechanism, timely grasp the supply and demand situation; The second is the production and marketing cooperation mechanism, and the supply of goods is well organized; the third is the key enterprise contact mechanism to play the role of key enterprises in ensuring supply; the fourth is the government reserve mechanism to strengthen the usual prevention; The enterprise-linked emergency guarantee mechanism strengthens emergency coordination and handling to ensure a rapid and smooth supply of daily necessities in an emergency."
Zhao Weidong introduced that there are currently about 180 sample companies monitored by the Beijing Municipal Bureau of Commerce, including pig slaughtering companies, wholesale markets, supermarket chains, community vegetable markets, e-commerce and direct supply companies. The monitored varieties include more than 100 in 16 categories. “Through daily monitoring, we can keep abreast of market supply and prices.” In addition, Beijing has also established a close production and marketing cooperation mechanism with Hebei, Shandong, Inner Mongolia, Guangxi, Hainan and other major producers of vegetable daily necessities for Beijing. This time, a joint operation was organized to ensure the supply of vegetables in winter before the Spring Festival.
At the same time, using the production bases established in other cities by major wholesalers in the wholesale market, the organization of supply of goods has been well organized, and a "Beijing team" has been established, including storage, slaughter, wholesale, warehousing and retail as the backbone enterprises. Supply of goods, and play the role of the main force in the market to ensure supply.
As the "vegetable basket" and "fruit plate" of Beijing citizens, Beijing Xinfadi Market plays a main channel role in ensuring supply and stabilizing prices. Its daily throughput is 18,000 tons of vegetables, 10,000 tons of fruit, more than 2,000 live pigs, and is responsible for the capital's 70 million % of the supply of agricultural products.
Tong Wei, director of the Xinfadi Propaganda Department, told the Beijing News that Beijing's agricultural self-sufficiency rate is low, with 80 percent coming from all over the country.
The main factors restricting the stable supply of agricultural products are weather and traffic. Once the products cannot be received, it will inevitably affect the supply in the Beijing market.
"As a wholesale market, it is necessary to predict the controllable rate and stability of the supply of agricultural products."
From 2013 to 2015, Xinfadi began to organize merchants to establish their own planting bases in the upstream on a large scale. At present, the planting area is about 3 million mu, which can ensure the stable supply of Beijing's daily agricultural products, and also has guarantees for emergency situations. ability.
"From the point of view of merchants, planting, picking, sorting, storage, transportation, and packaging can control costs by themselves, and Xinfadi's single-product king basically participates in the construction of upstream planting bases."
Tong Wei said, looking back at the "garlic you are cruel" and "jiang you army" that happened in the market a few years ago, the big problem is that the prices of agricultural products as futures have been artificially inflated. Being a planting base has played a major role. Agricultural products are a basic guarantee business, and ensuring supply and stable prices is the mission of wholesalers. The ideal operating state is that prices are stable and consumers are at ease.”
Chengde Dahongmen will deploy products to Beijing within 3 hours at the fastest
When it comes to supply guarantees, both Sun Tiexin and Tong Wei were deeply impressed by the phenomenon of stockpiling that occurred in late April this year.
"On April 25, orders from various sales channels soared, and a series of work arrangements and implementations such as timely arrangements for the surrounding self-owned bases to increase production capacity, ensure supply, and supervise dealers' price-limited sales are basically continuous." Sun Tiexin said that Ershang Meat The group supplied more than 11,000 white-striped pigs to the Beijing market on that day, with a total of more than 1,200 tons of pork, beef, and mutton products, an increase of more than 500 tons compared with normal, ensuring the order demand from various channels.
Sun Tiexin said frankly that the new crown epidemic since 2020 has had a profound impact on the company's sales channels and product structure.
With the realization of the national layout of the slaughtering and processing bases of Ershang Meat Group, the finishing capabilities and logistics and distribution capabilities in Beijing have been further improved, and now it is more calm to deal with emergencies.
Assuming that a similar panic buying occurs suddenly, the Dahongmen slaughtering base in the surrounding provinces will start from emergency dispatching and slaughtering pigs, to transporting white striped pigs to Beijing for further segmentation and processing. The products will be deployed into Beijing within hours.
"In Beijing, the government-led security tasks are capable, and there is no need for ordinary people to panic." Sun Tiexin said that irrational hoarding and looting will disrupt the production plan of enterprises and cause costs to rise, but it is not conducive to ensuring supply and stabilizing prices.
Tong Wei also said, "Xinfadi is a first-level wholesale market. During the epidemic, we will increase efforts to organize merchants to purchase from all over the country. At the same time, the market also has a certain reserve, so there will be no problem of supply interruption."
"The pressure that hoarding and panic buying brings to our work is that if the replenishment is not timely, it will bring panic to the people, the market supply order will be affected, and prices may rise. Generally, there is a transmission law: e-commerce platforms are the most Sensitive, offline retail will follow the trend, collecting and distributing enterprises will conduct transmission, and there will be changes in the wholesale market, until the volume and price are affected. To avoid panic and resolve the pressure of price increases, the premise is that there must be sufficient goods, that is, from the wholesale end to the retail end, We must ensure that the goods are available, adjusted and replenished quickly." Zhao Weidong concluded.
The Beijing Municipal Bureau of Commerce has summarized "six elements" for this purpose: one is the source, "it is necessary to know exactly what kind of vegetables are eaten in what season and where"; the second is the channel, "the goods are in the hands of which organization and enterprise in the place of origin. It must be clear”; the third is large households, “large households operating in different categories in the market must be well organized, and only they have the ability to make a phone call to ensure the time and quantity to transfer things”; the fourth is traffic, “traffic along the road must be well planned, You can’t get stuck on the road, you need the shortest route and the fastest time”; the fifth is collection and distribution, “collection and distribution is an important intermediate link, and the goods can go down”; the sixth is retail, “if you have goods, someone has to go. Selling, e-commerce, supermarkets, community vegetable markets, etc., must be diversified and differentiated, as well as timeliness and convenience.”
"The above six elements must be well organized. If panic buying is predicted, both wholesale and retail ends will be organized to increase stocking, and if necessary, government reserves will be placed, and the retail stocking volume can reach three times the usual level- 5 times, and at the same time improve the sorting and distribution capacity. Only by doing this can we ensure that our supermarkets and vegetable stores are not empty and prices are not raised.” Zhao Weidong said.
Government reserves become "stabilizers" and "ballast stones"
In fact, government reserves play an important role in Beijing's mechanism of ensuring supply and stabilizing prices.
On April 27 this year, 100 tons of egg government reserves were directly put into retail stores in Beijing to meet the rapidly rising market demand.
Zhao Weidong introduced that in order to ensure the emergency supply of daily necessities, Beijing has established a government reserve system for daily necessities since 1992. It has been 30 years since then, during which time has been continuously optimized, adjusted and improved. Government reserves such as eggs, vegetables, sugar, and salt have acted as "stabilizers" and "ballast stones" for market supply in an emergency.
Xinfadi and Ershang Meat Group also participated in the reserve link of the Beijing Municipal Government.
According to Sun Tiexin, Ershang Meat Group has been undertaking the task of frozen meat reserves in Beijing. Currently, the reserves are 2,250 tons of frozen pork, 121,000 live pigs, 2,800 tons of frozen beef and mutton, 5,700 live cattle and 120,000 live sheep. 20 tons of halal meat products.
From 2020 to 2021, it will temporarily increase the reserve by more than 20,000 tons, and the total frozen meat reserve will be as high as 25,150 tons during the peak period.
From July 8 to December 2, 2020, 2,927.32 tons of frozen pork reserves were released to the market, and 905.78 tons of frozen pork reserves were released to the public from February 1 to February 10, 2021, which played a positive role in stabilizing pork prices.
Tong Wei said that Xinfadi is starting to build an information platform, from the fields to the supermarkets and consumers, to find the key nodes in the circulation chain of Chinese agricultural products, and to use data technology to help the agricultural products to achieve marketable products. Adjust the quality control standards, packaging standards, sorting standards, etc. of agricultural products in a timely manner according to changes in consumer demand, so as to truly achieve stable supply and demand.
How are government reserves stored and released?
Zhao Weidong replied that the Beijing Municipal Government reserve adopts the principle of "government entrustment and enterprise storage", and determines the storage enterprises (including varieties and quantities) of various daily necessities through public bidding.
After winning the bid, the enterprise will sign the "Government Reserve Entrustment and Storage Agreement". The enterprise will store the specified amount of reserve materials in accordance with the contract, and is responsible for the daily management of the reserve materials. In order to ensure that the quantity and quality of the reserved commodities meet the requirements of the agreement, the inspection and management of the reserved materials will be strengthened during the work."
The delivery of daily necessities generally takes several major steps.
First of all, the relevant municipal departments will keep abreast of the market supply and price changes of daily necessities through daily monitoring. When the market is found to have insufficient supply, supply shortage or large price fluctuations in a short period of time, they will consult and study in a timely manner to determine the market supply and demand situation and In the later period, put forward disposal measures and suggestions and report to the municipal government.
"After approval, we will organize storage companies to launch, and on the basis of daily supply guarantees, we will further increase the number of market supply and stabilize supply and prices." Zhao Weidong said.
Guo Tie, chief reporter of the Beijing News