What is the transformation of the Internet on the traditional agricultural industry chain

Through the application of Internet technology and ideas, the traditional agricultural industry chain can be completely upgraded from the financial, production, marketing, sales and other links to improve efficiency, change the industrial structure, and ultimately develop into a new type of traditional agriculture to overcome the shortcomings of the new "Internet agriculture". The depth of the Internet for the transformation and enhancement of agriculture has great advantages, specifically reflected in five aspects.

China is a large agricultural country, but China's agricultural development level is extremely backward. As of 2012, the rural population, which accounts for 47.4% of China's population, earns less than 1/3 of the income of urban residents, and about 1/7 of them are still poor.

Farmers who produce agricultural products (000061, stock market) can't make money, and in turn, consumers in cities can't spend their money. Ma Wenfeng, a special economic analyst with Xinhua News Agency, said, "With the increasing prominence of food safety issues, consumers are less and less concerned about the price of agricultural products, as long as there is green and healthy food, even if it is several times the price is also willing to pay."

Three rural issues has been the country is committed to solving the problem, the central "No. 1 document" is the focus for 11 consecutive years of three rural. In the traditional model can not solve the problems faced by agriculture, the Internet but with its strong process re-engineering capabilities, so that agriculture has gained new opportunities.

Through the application of Internet technology and ideas, the traditional agricultural industry chain can be completely upgraded from the financial, production, marketing, sales and other links to improve efficiency, change the industrial structure, and ultimately develop into a new type of traditional agriculture to overcome the shortcomings of the "Internet agriculture.

The Internet has a great advantage for the deep transformation and upgrading of agriculture, which is reflected in five aspects.

Standardization of agricultural production

The production of agricultural products can not be standardized, has been an important constraint on the development of agriculture. Eiger agricultural analyst Zhou Wenquan believes that "the Internet of Things can completely transform agriculture from the production link, so that agricultural automation, precision, traceability, reduce manpower, reduce costs, and ultimately achieve the standardization of agricultural production. Although it is not very hot right now, it is the trend of the future, and there is still a lot of room for development."

The application of Internet of Things technology in agricultural production can be achieved through a variety of wireless sensors real-time collection of light, temperature, humidity and other parameters of the agricultural production site and the growth of agricultural products and other information, and then the collection of parameter information aggregation and integration, and finally through the intelligent system of timing, quantitative, positioning processing, timely and accurate remote control of the specified agricultural equipment to open or close, to truly achieve the "Intelligent agriculture". Chen Ping introduced: "For example, in the spring for rice seedlings, the temperature, humidity, light, ventilation, irrigation, etc. have strict requirements, in the past are through the experience of farmers to operate. Not only is the efficiency low, but also the accuracy is not enough. And through the Internet of Things technology, it is possible to collect real-time environmental parameters such as light, soil, temperature and so on through sensors, and realize remote control of watering and irrigation, switching the roller shutter and other operations."

Creating a cheap and efficient marketing portal

What does the Internet do best? Marketing. Whether it's the traditional principles of hunger and thirst marketing or the newer social tools, what the Internet people are best at will always be talking the dead into the living.

Put into agriculture, all kinds of social media and communication tools can provide convenient marketing entrance for agricultural products, and more importantly, the marketing cost is extremely low. Microblogging, WeChat, QQ and SNS are all free resources, and there is no industry where it is as easy as the Internet people to establish a relationship of trust with consumers and use it to market their products.

Why is traditional agriculture not doing well? One important reason is that there is no brand, resulting in low value-added agricultural products and unprofitable farmers. And as Zhou Wenquan said: "The Internet is best suited to build the brand, because it can be low-cost marketing communication." Chu orange, willow peach, Pan apple why so hot? It is because of the Internet's powerful marketing ability.

The marketing attributes of Internet agriculture, there are three key factors: First, the good use of market segmentation concept, the use of big data to accurately locate the target customers, to avoid generalization of the marketing; second is to achieve close interaction with customers with excellent customer service, and constantly improve product quality; third is the appropriate control of the industry chain, neither delusion of covering the whole industry chain of business, nor is it purely outsourcing the production, for the The best way is to control the quality of the raw materials in the upstream of the industry chain, and to achieve standardized production for the processing of the downstream products.

Establishing a safe and healthy brand image

Food safety has become the biggest bottleneck in the development of agricultural products. How can consumers regain confidence? Creating a transparent supply chain system through the Internet is the most direct way.

The traceability system, which extends from the food sector, aims to solve the problem of food safety and food credibility. Through a two-dimensional code, consumers can scan the cell phone to see the traceability information of this product, where to plow, when to pick, who to pick, packaging date and so on everything. And all of these need the support of the Internet, Internet of Things, network video and cloud computing and other technologies.

Eventually, with the Internet technology to realize the whole process of production traceability, coupled with the cooperation of the quality inspection and other authoritative institutions, can be multi-party collaboration to create a truly transparent supply chain.

The upgrading of the agricultural sales model

Since the seasonality of agriculture, regional obvious, and easily affected by climatic factors, coupled with China's small-household management system is difficult to effectively docking with the big market, agricultural products often occur "difficult to sell" phenomenon and "more harvests The "three or five buckets" type of harvest paradox.

No doubt, e-commerce can be closer to the distance between producers and consumers, so that agricultural products are no longer due to geographical reasons and stagnant sales. The e-commerce of agricultural products began to explode in 2012, reaching nearly 20 billion yuan by the end of the year, and is expected to exceed 100 billion yuan in 2014. on November 25, 2013, the Hainan Provincial Department of Agriculture and Alibaba Group to build the "Taobao? Characteristics of China Hainan Pavilion" formally launched, only coconut rice, 3 days sold offline in the past, the island's total sales of 63% of a year, e-commerce channels can be seen in the ability to clear goods.

In addition, the e-commerce platform because you can make the producer's products directly to the consumer, eliminating the intermediate distribution channels, but also make the price of the product is greatly reduced. "Because every additional distribution link has to incur a certain cost. The original agricultural products are generally three to four levels of the dealer system, now you can direct first-class wholesalers to retailers, reducing the circulation link, the profits of the enterprise came." Ma Wenfeng, a special economic analyst for Xinhua News Agency, said, "Now the enterprise can be big, are the circulation link is reduced."

More importantly, the Internet channel can fundamentally change the relationship between production and sales, using big data analysis to locate consumer demand, and organizing the production and sales of agricultural products in accordance with consumer demand, thus realizing zero inventory of agricultural products, such as Le Vision's ecological agriculture is to take this C2B thinking.

Improving rural financial services

Finance is the core of the economy, and rural finance is the core of the rural economy. But China's rural financial services do not meet the needs of farmers.

From the early 2000s, the central bank and the CBRC began to gradually carry out the innovation of financial institutions, and encouraged the rural financial institutions to carry out the innovation of financial products and services in a variety of ways, including the village-level mutual funds, forest rights mortgage, micro-credit, village banks, mutual fund societies, and the "company+base+farming household" and so on.

However, constrained by a variety of factors such as geography, resources, industrial structure, this kind of rural financial product innovation led by the regulatory layer has not been very good to improve the rural financial problems, the rural financial products are single and insufficient supply of the problem is still prominent.

Specifically, the future of the Internet rural financial services are mainly focused on two aspects:

One, microcredit. The main service object of rural credit is mostly for farming, catering, retail and other small-scale operators, so the credit amount is small, the funds are scattered, compared with the large amount of credit in terms of the safety of the borrower's funds is more secure.

What is more attractive is the huge market potential in the field of rural urbanization microfinance. Now there are more than 100 banks in the first and second tier cities of 400 million people, so with urbanization, when more than 600 million farmers become citizens, how many up-and-coming banks will there be?

Loan Gang is the nation's largest rural P2P lending company, where lenders lend money through Loan Gang's Internet platform, but the lending business is conducted offline. Loan help in rural areas across the country to expand the layout, set up offices, in the local recruitment of creditors to go to the lender for mapping, each borrowing, loan help have creditors to go to the door to review the qualifications of the borrower to ensure that their information is reliable, so that the borrower's risk is minimized. In addition, the loan gang also stipulates that the lender's location should not be more than half an hour's drive from the local office of the loan gang.

Loan help business model is through the Internet to gather borrowers and investors, and then through their own risk control system to screen capable borrowers and investors, so that their docking transaction O2O model.

The second, agricultural insurance (assured). Since ancient times, agriculture has been an industry that "relies on the sky to eat", so agricultural production and development have always been accompanied by the double pressure of natural risks and business risks. With the scale of farmers' production and operation and the expansion of capital investment, farmers' awareness of risk is gradually increasing, agricultural insurance has become a necessary financial products for agricultural development. From 2007 to 2012, the cumulative premium income of agricultural insurance in China exceeded 60 billion yuan, with an average annual growth rate of 85%. At present, China's agricultural insurance business is second only to the United States, becoming one of the world's most active agricultural insurance market.

But due to the high risk of agricultural production and operation and the high rate of insurance payout, commercial insurance companies have a low incentive to carry out agricultural insurance, resulting in fewer types of agricultural insurance. At present, the plantation insurance types are mainly three major crops: wheat, corn and cotton.

In 2013, Rongchang County, Chongqing Municipality, on the basis of policy insurance for sows, hogs and dairy cows, also explored insurance pilots in rice, sorghum, black peanuts, piglets and other characteristic advantageous industries. But agricultural insurance can not rely only on policy insurance, commercial insurance is also indispensable, not to mention the national subsidies for agricultural insurance is never stingy.