Creation of an Ecosystem of Agricultural Industrialization

COFCO is actively exploring an “integrated agricultural services platform” model. This model will standardize operations for each step of agricultural production and sales. Standardizing the businesses will eventually create an industrial “eco-circle” to promote industrial resource integration, service “farmers, consumers, government, and partners,” meet demand, and shift grain production from production-oriented to consumer-oriented.

Providing One-Stop Service for Contract Farming of Sugar

COFCO has played a leading role in the industrialization of the national sugar industry. In the Xinjiang region, a producer of sugar beet varieties, the Group is currently building a platform that will serve as an efficient link between farmers and buyers. This one- stop order model is aimed at promoting specialized, standardized, large-scale intensely cultivated farms. It also aims to promote convergence between production, marketing , and development, to enhance the Group’s competitiveness and create sustained income for the rural economy.

The One-stop Placed Order model has effectively enhanced sugar beet yields. In 2016, COFCO reached 4.42 tons/mu for beet raw materials. This upgrades the competitiveness of sugar beet farms, moving closer to the level of more developed countries and providing greater assurance of guaranteed sugar in China. At the same time this model solves the problem of high cost marketing and sales. The cultivation of sugar beets has become an important source of stable income for farmers, and popularized the mechanized planting model in Xinjiang. Other industrialization has now also begun in Xinjiang, moving the rural economy from a single seed to a strong network of fields.

The “Circular Economy” Model of Dairy Farming

In the field of dairy farming, COFCO is exploring a “circular economy” model. COFCO holds some of the world’s first listed dairy farming resource companies, and relies on a first of its kind “forage cultivation, dairy farming, milk processing integration” model. Silage cultivation achieves greater efficiencies, higher farmers’ incomes, and less environmental impact through cultivation of dung fermentation, quality biogas manure, silage fertilization, and repurchased silage. We have created a “cattle – marsh – grass” circular model for full resource utilization of dairy farms.

"Intelligent Agriculture" model of Science and Technology Parks

In November of 2010, the Beijing Municipal Government and COFCO signed an agreement for the construction of Beijing’s Agricultural Eco-valley. The focus of this agreement was to build a park that is also a town, nominally the COFCO Wisdom Farm, or the Health and Ecological Science and Technology Park. The COFCO Wisdom Farm was opened in October 2015 and has now become China’s agricultural science and technology demonstration window. The Wisdom Farm’s goal is to advance agricultural science and technology as well as agricultural leisure. This business model can be copied to modern urban agricultural demonstration centers and for China to build world-class ecological farms.

Innovative Agricultural Financial Services Model

COFCO continuously provides innovative financial services, improves the purchasing and processing business model, helps small- and medium-sized enterprises, farmers and other cooperatives to expand their business, devotes to the integration of the primary, secondary and tertiary industries, and promotes industrialization of agriculture.

Developing "Internet + Agriculture"

WOMAI.COM and LIANGDAWANG.COM are COFCO’s main exploration in "Internet + Agriculture". Their own characteristics and advantages drive agricultural development and promote relevant areas.