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    Home > Active Ingredient News > Feed Industry News > How to break the situation of small and medium-sized feed enterprises

    How to break the situation of small and medium-sized feed enterprises

    • Last Update: 2008-11-03
    • Source: Internet
    • Author: User
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    Introduction: Sun Tzu said: soldiers, the country's major events Strategy is an important matter for an enterprise, and development strategy is also an important one It is an important issue related to the long-term development and invincibility of an enterprise in the fierce market competition As the main body of the industry, small and medium-sized feed enterprises play an important role in feed industry, which has played a huge role in promoting the rapid development of feed (animal husbandry) industry in China for more than 20 years However, with the change of industrial environment, the market competition is becoming increasingly fierce, the profit is declining, the downstream customers have higher and higher requirements for quality and service, and so on A series of problems are waiting for the enterprise to break the situation and become the nirvana of the situation In order to achieve this goal, small and medium-sized feed enterprises must pay attention to development, carry out strategic innovation, and implement business strategy transfer Only on this basis, enterprises can achieve sustainable development, and then achieve permanent development of the foundation industry! The development trend of feed industry is localization, because the profit of feed is low, so it is not suitable for remote sales, so localization means that small and medium-sized feed enterprises play a leading role For example, there are nearly one million laying hens in a certain place in Liaoning Province In November last year, most of the feed used in the local area was concentrate from other places Now almost all the farmers use the full price feed produced by the local small feed factory This problem has been explained from the original use of concentrated materials from large factories in other places to the current use of full price materials from small factories in local areas So, why does feed localization play a leading role in small and medium-sized feed factories? 1 The technical threshold of feed industry is low and the investment is small, so it can be started without too much capital 2 Compared with other factories, local factories can greatly reduce transportation costs, while local sales of small factories can save a lot of management and marketing costs compared with remote sales of large factories A small factory can produce more than 3000 tons of laying hens at full price every month, but there is no business person, which saves a lot of marketing costs, so he can sell at a low price This is indeed a great attraction to the farmers in today's declining profits of the breeding industry Of course, the goal is far-reaching and the road is tortuous There are also reasons why small and medium-sized feed factories are not playing a leading role and the feed marketing process is not fully localized First, small and medium-sized feed factories have poor technical strength, slow product update and high cost of purchasing This makes it difficult to form an overwhelming advantage Moreover, some small and medium-sized feed factories are not well positioned, and they often fight for the market at a low price, resulting in the impression that small feed factories cannot make good feed in the minds of farmers In fact, whether the feed is good or bad does not depend on the scale and technology of the company, but on the mentality, as the advertisement says, "concentrate on doing a good job" Second, there are a lot of credit sales in the feed industry, which is also the main problem restricting the development of small and medium-sized enterprises As a result of credit sale, occupying a large amount of circulating funds of feed enterprises, small and medium-sized enterprises have a poor background So that the normal operation of enterprises is blocked and in trouble Credit sale has become a major obstacle to the development of small and medium-sized enterprises Third, the short-term behavior of some manufacturers does not protect the interests of dealers Many dealers are unwilling to sell local materials, which makes feed factories have to sell remotely To solve these problems, I think we can start from the following points: 1 There is a special service company and small and medium-sized feed factories form a joint venture model The service company is responsible for the technical and centralized procurement of feed plants Through its nationwide network, service companies collect new ideas, new technologies and new achievements to transform it rapidly through the formation of this joint venture, help feed factories to re position, keep them at the forefront, change the bad impression of small and medium-sized feed factories in the minds of farmers, and at the same time, open up the field of raw material circulation, reduce the intermediate link and reduce the purchase cost of feed factories This method has already been explored in the industry, such as the "England 211 Project" which is being set up by Feed Development Corporation of Sichuan Agricultural University Through the feed Development Corporation of Sichuan Agricultural University, 211 small and medium-sized feed enterprises are gathered to realize joint procurement and resource sharing 2 The small feed factory is directly transformed into a dealer with processing ability, which combines two into one, but only makes a share of the money, and gives the profits to the farmers so as to obtain the market share The medium-sized feed factories implement strict protection policies to protect the interests of distribution, so as to achieve local sales If this first step can be achieved, then we can go further, for example, opening up the circulation field of veterinary drugs, reducing the intermediate links, and implementing terminal sales; for example, under the situation that China has not yet established a credit system, a company will set up a special fund to provide dealers with paid services of small short-term loan guarantee, so as to solve the development of breeding industry The lack of funds encountered The trend of market economy development is socialized division of labor Now the most attractive advertising word is "we are professional", which doesn't agree with diversification The three companies I admire most are Coca Cola, Nike and Wal Mart Coca Cola's brand has a brand value of up to 10 billion yuan Nike's processing and design marketing are separated It is only responsible for marketing and design, and the production is left to the manufacturers The high profits are still in Nike's pocket Wal Mart's global procurement and daily parity are also the killer of its foundation Can't we have a large-scale service-oriented company with brand, technology marketing and global purchasing ability in the feed industry, but we can transform small and medium-sized feed enterprises into a single producer, and promote the development of China's breeding industry through the daily parity strategy and the establishment of industry credit system, which can also solve the "three rural" problem in general!
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