Agricultural Headquarters Economy Forged in Cixi

The project of Charoen Pokphand Group Food Scientific Research Laboratory in Cixi Modern Agricultural Development Zone is bordering upon its completion. It is reported that with a total investment of 114 million yuan, the project is aimed at forging a research institute of Charoen Pokphand Group in China, establishing a first-rate R&D center by introducing high-end equipment for food research and development from abroad and attracting talents in various areas including food science, food engineering, food nutrition, bioscience and multifunctional food.

We are planning to guide and encourage a batch of peasant households and enterprises with high economic strength to implement trans-regional management, thus forming an agricultural model of headquarters economy in which Cixi City is the base for R&D and marketing while the manufacturing and processing bases are established out of the city . According to a leader from Industry Division of Cixi Agricultural Bureau, the city has accelerated its steps to create a headquarters economy in agriculture by forming a proper industrial value chain by internal cultivation and external introduction with its unique resource superiority.

As the leader explains, the headquarter economy in agriculture to some degree is the product of urban and agricultural development in Cixi City. In line with its original strategy, it has centralized its high-quality political resources to enforce strength of local agriculture and enterprises by making Cixi City the base for seedling cultivation, R&D, pilot scale test and marketing while establishing manufacturing and processing bases in places out of the city and promoting extended development of agriculture and enterprises in Cixi by standard and technology output to the whole nation.

As one of the top 100 dominant headquarter enterprises in Ningbo City, Haitong Food Group Co., Ltd has already set up marketing center in Shanghai because of its vast market potential while establishing production bases in Yichang, Hubei Province and Xuzhou, Jiangsu Province at the advantages of their land, labor and energy resources, thereby achieving spatial separation among enterprise headquarter, marketing center and manufacturing base to integrate the optimal resources in multiple regions into a single enterprise and speed up the extension of industrial chain and reconstruction of value chain. Under such strategy, it is predicted that the sales volume will break the 100 million yuan mark this year, among which the branch offices in Yichang and Xuzhou will constitute a proportion of 30 percent.

On the other hand, successful agricultural headquarters have been actively introduced into the city to lengthen the short staves existing in its agricultural industry. Based on its platform of modern agricultural development zone, a great number of enterprises including the Charoen Pokphand Group, one of the Fortune Global 500,Charoen Pokphand Group(Cixi) Agricultural Construction Co., Ltd, Charoen Pokphand Group Canghaisangtian Co., Ltd, Charoen Pokphand Group Egg Co., Ltd, Charoen Pokphand Group Food Co., Ltd and Charoen Pokphand Group (China) Food Development Center, among which, Charoen Pokphand Group(China) Food Development Center will become the research and development headquarter ,which will guide and promote the upgrading and development of relevant foodstuff products.

In comparison to the agricultural industrialization pattern of enterprise + base , the form of headquarter + production base can help realize upgrading in various aspects. It is reported that the representative enterprises of headquarters economy such as Haitong Group and Xulong Group occupy a quarter of total output of leading agricultural enterprises in Ningbo City, which demonstrates early results of agricultural headquarters economy .

LINK:	http://en.nbwh.gov.cn/art/2016/5/25/art_1325_84241.html...
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