Yak industrialization: the driving force for modernization of plateau animal husbandry and development of the Tibetan economy

Transcription

1 Yak industrialization: the driving force for modernization of plateau animal husbandry and development of the Tibetan economy Gongbu Dongzhou China West Yak Industry (Group) Company, Chengdu , Sichuan, P.R. China Summary Since the Sichuan Aba Yak Industry United Co. Ltd (Yak Company) was founded in 1998, it has been expanding quickly and growing healthily through comprehensive development of Yak Industry, Yak Economy, and Yak Culture and practical industry positioning and structure. Now, y, and Yak Culture and practical industry positioning and structure. Now, the 2003, the company s total revenue was RMB 350 million, with a tax of RMB 80 million. The yak industrialization project is also connected to and supported by Mr. Fei Xiaotong, Vice-Chairman of the Standing Committee of the NPC, and Mr. Wen Jiabao, Prime Minister of the State Council. Yak Company has established West Yak Group and is working hard to be a leading national export-oriented, high-tech agriculture enterprise. Keywords: Yak industrialization, practical industrial positioning and structure, external communication and cooperation Introduction Sichuan Aba Yak Industry United Co. Ltd (Yak Company) was founded in It is the leading enterprise in agriculture industrialization appointed by the Sichuan government. Our company is rooted in the important yak-farming region-aba prefecture and relies on the abundance of animal husbandry resources in Qinghai-Tibetan Plateau. Yak company regards yak industrialization and modernization our mission and use modern technology and management to comprehensively develop Yak Industry, Yak Economy, and Yak Culture. In 2002, Yak Company was reconstructed as a West Yak Industry Group Company (yak group company) with a registered capital of 130 million RMB and the company total assets reach 1200 million RMB (the net assets is 900 million RMB), now the yak group company owns the largest yak dairy plant, the nearly ready new modern yak dairy plant, new reconstructed Ningxia Muslin Yak Meat Plant, Tibet Dazi Bright Exemplar farm as well as marketing subsidiaries based in Beijing, Shanghai, Shenzhen etc., now the group company has 15 companies which diversify in husbandry, tourism, pharmaceuticals, catering, bio-products and trade industries through whole equity, controlling equity and participating equity. Yak group company always put high priority for the needs of preserving Qinghai Tibetan biological environment and help the local people. The yak company invested RMB 50 million for the construction of a raw material manufacturing base, which is centered in the major yak growing region and now already owns 1050,000 Mou of exemplar farms. The company chose 3500 heads of best breed yak and set up the first yak breeding farm and yak core breed herd. Now, the company is based in Hongyuan County and irritate to neighboring areas of Aba, Ruoergai, Hongyuan, Songpan, and Rangtang County in Sichuan Province and another 11 counties in Gansu and Qinghai provinces. Through various cooperative forms, such as contract purchasing and stock sharing, Yak Company has set up sound profit-sharing mechanisms with herdsmen to mobilize and protect their projects. By means of industrial operation, Yak Company has fostered and formed unique resource advantages, industrial advantages, processing advantages, and competitive advantages, which promote Tibetan economic development through exploring international market. The Hongyuan Brand Yak milk powder product line has been awarded a high quality product by Ministry and

2 Session I : Production Systems Provincial governments, and has acquired green product certification. To expand the product line and increase product quality, Yak Company invested RMB 190 million, the yak company is now investing 480 million RMB to set up state-of-art modern yak dairy plant and yak slaughtering and meat processing plant to produce functional, organic yak dairy and meat products. 305 of the final products will market to international markets. Additionally, Yak Company built a new biological engineering company to develop and produce Chinese medicines, Tibetan medicines, and ethnic Dai medicines. Yak Company stresses bringing in advanced production technology and management from both abroad and domestically and exerts itself to build the platform for the company s modernization. The yak company take efforts to carry out high-level international cooperation and joined with the United States largest dairy manufacturer, Land O Lakes, to explore the international market. An international strategic partnership has been formed with Land O Lakes through long-term strategic cooperation and by giving them the trusteeship of expansion, management, and marketing of Hongyuan Yak Dairy Ltd. Along with strategic expansion, Yak Company supports Total Quality Management. In 2001, the company s total revenue reached RMB 98 million, an increase of 15 percent over Taxes increased 10 percent to RMB 11 million, bringing simultaneous increases in scope and economic effect. Practical industrial positioning and structure promote the fast and healthy development of yak company Better focus on industrialization and accurate strategic positioning The choice of what type of industrialization was based upon the rich resources of Qinghai-Tibet Plateau, with an emphasis on its distinctiveness. Yak Company completely investigated the quantity of existing resources, the potential of future resources through exploration, and the technology of developing these resources. We focused on the combination of resource exploration and development of regional culture to do business based on the distinct differentiation of combining our human resources with local advantages. At the same time, the government encouraged the development of Western China and supported agriculture industrialization. Green consumption is widely accepted these days and advocated by consumers. Based on the above factors, Yak Company decided on a comprehensive, all-dimensional development of Yak Industry, Yak Economy, and Yak culture, with yak industrialization at the core. Industrialization is the basis of economic development. Organizational culture, regional culture, and national culture are the ever-guiding forces for the development of organizational, regional and national economy. Yak Economy, Yak Industry, and Yak Culture is our company s strategic positioning for development. Accordingly, Yak Company established the strategic objective to foster the growth of yak economy and further development of Tibetan culture, with yak culture at the core. Through development of yak industrialization, we will reveal the features of Tibetan culture. This will in turn, continue to support Yak industry, Yak economy, and Yak culture, which are associated to, complementary with and fostered by each other. All our company s activities are focused on this target. Gather industry elite to assemble and promote modern technology for animal husbandry; bring advanced technology and management ideas from abroad; establish the organizational culture for integration of yak company with international companies in the same industry; build our company s core competitive competencies. Since its foundation, Yak Company has been dedicated to understanding and following advanced production technologies and management of pasture animal husbandry. We established a comprehensive database of human resources, technology accomplishments, and projects; cooperated with research institutes in whole or part projects; and set up a professional consultant council to make all our company s decisions based on scientific analysis. Thus

3 it was guaranteed that all decisions and investments for operations and projects are practical and feasible. Various technology combinations, such as grassland improvement and development, breed improvement, disease prevention, and scientific management and operation serve as a strong technology base allowing Yak Company to develop the yak industrial operation as the first workshop with advanced technology, practical scope, high quality and output, and high efficiency providing continuous and reliable good raw materials for processing companies. Yak Company s mission is to use the best people and technology to optimize the yak resources to build the best center of operations, processing facilities, and marketing system in order to manufacture the best products, to provide the best service, and to achieve the best results. Accordingly, we are actively looking for strategic partners. Yak Company will not associate with those companies that have no brand name products and strong strengths, especially in international cooperation. Thus we chose Land O Lakes as our yak dairy partner and EMF Lebensmitteltechnik-Anlagenbau GMBH as yak slaughtering and meat processing partner through years of investigation and negotiation on the principle of mutual-benefits, resource-sharing, and win-win results to raise the development of yak industrialization to the international scale and to develop the organization from the start with the highest standards and technology. Yak Company believes technology innovation is a very important part of business. We have established dairy research institutes and the yak culture workshop, and plan to build the leading non-government yak academic research center in the world with cooperation with the United States. We have concentrated on the construction of the company s culture, our own core technology system, and the research and development of new products. With high-tech and high value-added products at the core, and through improvement of the product, Yak Company strives to produce national and international value-added brand products. Research and development of high-tech, high-value-added products is the main focus for our company s development, a new approach to earning profit, and a way to ensure our competitive competence. Practical industrial structure and suitable measures push forward the strategic and fast expansion of yak company. Yak Company is rooted in the rich yak resources of the Qinghai-Tibet Plateau. To effectively integrate those resources and promote the economic development of the yak growing areas, we established a liaison department for 11 counties in Sichuan, Gansu, and Qinghai provinces and made the intersection of these counties an important base for our company s industrial development It is planned to unite these areas to apply for the Non-listed Animal Diseases Area around First Curve of Yellow River, the project already get the attention and supports from State Development Commission and the Ministry of Agricultures. With the three counties of Aba, Ruoerkang, and Hongyuan as the core for yak industrialization, and the number one yak county in China Hongyuan as the phase one site, we rely on state farms and associated family owned farms to make Hongyuan County the first workshop for yak industrialization. We will do this through ways of cooperation, such as joint purchasing cooperation and stock sharing. Yak Company will establish a supply base for high quality raw materials and output by a profit-sharing system. With superior processing of yak meat, yak milk, and yak biological products as three important projects, we exert ourselves to build leading national and international marketing systems to achieve the practical industrial configuration of supply base + principal company + market. Now, Hongyuan already set up 32 associated farmers and it will expand to 480 farms. The yak milk procurement country road already increased 300km. Yak Company rooted in three main areas of yak industrialization: yak dairy, yak slaughtering and yak meat processing, yak bio-engineering. Through capital operation and project cooperation, the yak company already realized strategic expansion. The yak company successfully buyoput the Hongyuan Yak Milk Powder Plant,

4 Session I : Production Systems Ningxia Muslim Yak Meat Plant, as well as set extensive marketing facilities in Beijing, Shanghai and Shenzhen. Yak company target to build leading national and international marketing systems to achieve the practical industrial configuration of supply base + principal company + market. In the meantime, Yak Company emphasizes preservation of yak culture coordinated with company culture. Enterprise and regional economic development must be harmonized with nature and social effects. While the promotion of regional economic development is the target, promotion of ethnic economic development and social progress is the core. By this way, genuine yak economy and modern animal husbandry will be formed. Through incorporating the symbol of the Qinghai-Tibet Plateau yak and the culture of yak our company culture becomes deeply rooted in the rich, historical, and highly ranked Tibetan culture. By cultivating and extracting the cream of the culture, we established a unique company culture and, in turn, sustain the advanced and unique culture as part of the company s mission. Yak Company achieved fast strategic expansion by capital alliance and project partnership. We successfully purchased Hongyuan Milk Powder Plant, established Linxia Muslim Yak Meat Ltd., and built Shanghai Shenya Company and Beijing Yak Company for marketing. Through cooperation with Shenzhen Pinghu Produce and Special Products Company, the latter became the channel for selling yak meat and dairy products to developed regions in China and for exploring the international market. Yak Company has completed the foundation of the yak industrial operation for grassland improvement, breed improvement, and epidemic prevention through cooperation with 1000 herdsmen in two state farms, three towns, and fifteen villages. Thus the sound foundation for the comprehensive execution of yak industrialization has been formed. Our Yak industrialization project is highly valued by county, provincial, and national governments. Last year, we invited well-known experts to the yak-growing region the juncture of Sichuan, Qinghai, and Gansu Provinces to investigate and evaluate the project. The experts highly praised the project and more than ten of them jointly wrote a special report to Vice-Chairman of NPC, Fei Xiaotong, who then wrote to the Vice Prime Minister, Wen Jiabao to ask his support. Within seven days Mr. Wen wrote valuable comments on the report and said, Yak industrial development has great prospects, but you must pay attention to using technology and following the rules of market economy. Should the project be successful, it will be very beneficial to Tibetan economic development. The Ministry of Agriculture and related administrations should study carefully Mr. Fei s letter and the attached report. The project was also supported by the financial administration. The provincial and county Agri-Bank recommended the Yak industrialization project to the headquarters of the Agriculture Bank of China, which then sent experts to seriously investigate the project. It was successfully approved by the credit audit committee at headquarters. Yak Company acquired a loan of RMB 120 million to develop yak industrialization. Reacting to China s entry into the WTO, Yak Company reinforced contacts with outside international cooperation. At the beginning of this year, as head of the Board of Directors, I was invited to attend the annual meeting of Land O Lakes. The two parties reached agreement through negotiation and initialed a letter of intent on joint development of the yak industrialization project. During my stay in the US, we paid an official visit to Dr. Pein, the Vice-President of the Ministry of Agriculture and other high ranked officers. We introduced them to the present status of the yak industrialization project and expressed our intention of partnership between our countries to set up Non-listed Animal Diseases Area around the First Curve of Yellow River as well as Plateau Framing Research. Dr. Pein highly praised the cooperation between Land O Lakes and Yak Company and said that the United States government will support both parties to develop yak industrialization. In early May, as a special representative, I attended the 35 th annual meeting of the executive council of the Asia Development Bank, and met some officers of the bank and CEO s of international financial groups. They showed much favor for yak industrialization. As an expansion opportunity domestically and internationally, we have won the chance of a

5 lifetime to develop and put yak industrialization on the fast track. Yak company s plan of development The development of yak industrialization is an intensive systemic project with high technology, vast investment, and large scope. To guarantee the smooth going of the project, we established the West Yak Group. Based on the construction of a yak center of operations, which has large scale advanced-processing at the core and is supported by modern animal husbandry technology and advanced processing technology, the new Group will be steadily integrated into the world economy; will build the foundation for the development of modern enterprise and will occupy the overseeing position of yak industrialization development. The Group will concentrate on the domestic market, work hard to explore international markets, build the international and domestic trading system, and make the Group the leading high-tech, export-oriented, national agriculture industrialization company. In the next five years, Yak Company plans to invest RMB 1500 million in the yak industrialization project, RMB 120 million in building the leading dairy processing plant with a capacity of 20 to 40 thousand tons of fresh yak milk per year. Additionally, Yak company will spend RMB 360 million in establishing a yak meat processing plant with a capacity of 300 thousand yak producing 35 thousand tons of yak meat per year in cooperation with EMF, a German company. Another RMB 100 million will be spent in carrying out research and development on yak biological and chemical products in cooperation with the US, and RMB 100 million in starting the Non-listed Animal Diseases Area around the First Curve of Yellow River Project and Qinghai-Tibetan Natural Resources R and D Base, as well as establish a non-government international academy and research center and training staff. RMB 100 million will be spent in developing a unique yak culture tourism business. Another RMB 100 million will be used in establishing the most advanced national and international marketing system. Within five years of development, the Group will take public 1 or 2 subsidiary companies, will produce over 5 international brand name products and market 10 to 20 new products. Thirty percent of the products will be sold to the international market earning US$ 10 million. The total revenue will be RMB 500 to 800 million, with a tax of RMB 100 to 150 million. According to the principle of Group, Management, Modernization, Brand Name Products, Diversification, Market Internationalization, and Profit Optimization, Yak Company will be the major force in yak industrialization and will carry out a diverse development strategy to fully cultivate and strengthen the company s core competitive competencies and lead the development of yak industrialization and yak economy. We will forge Yak Company to be the flagship of Tibetan economy and contribute to the development of Tibetan economy, social progress, and people s well being.