Liu Yonghao: feed industry cannot be simplified and scaled

introduction: .　The 3rd China Listed Companies Leaders Summit was held in Chengdu on November 29 The 3rd China Listed Companies Leaders Summit was held in Chengdu on November 29 is a transcript of the speech: .　　I am very happy to be here for the 3rd China Listed Companies Leaders Summit Chengdu is my hometown, our new hope company is also in Chengdu, so as the host, welcome entrepreneurs and the media to Chengdu, to Sichuan, to see the development of Chengdu, experience the beauty of the country of Heaven as a listed company, as China's reform and opening up, the market economy system under the struggle of 31 years of enterprises, mentioned the transformation of the aspect of there is indeed a lot of experience we started a business in China very early, when I and several of my brothers went to sea, together more than 1,000 yuan, now this thousand dollars has become our nearly a hundred billion sales We in the Chinese market and the world market, it should be said that we have made progress, has made some achievements On what? I often think that we rely on China's huge market, the opportunities offered by China's constant change, the efforts of our employees, but also our own struggle But I still want to say that China's constant openness has given us the greatest source I remember the early days of our business, when I was with a few brothers, we installed television in the first place, and in Xinjin County, Chengdu, we were the first family to have our own TV At that time the TV, eat the small bowl so big, the monitor so long, dozens of tubes, there is sound, can see people moving In the early days of reform and opening up, we thought we would install audio, we put audio products, can be in the production team, we provide technology, many people find us to do, we can't get done, we can do, this kind of thing must reveal the brigade, we put our first sound, with a rack car pulled to the commune compound, many children followed us running ah, jumping ah, commune secretary saw our car pulled a stereo, what did he ask? I said, we are going to make the stereo, who makes the stereo, I say we, who are you, I say some of our brothers and production pairs make together, who are you brothers? I say it's us, my name is Liu Yonghao He listened for about a minute and said it was the path of capitalism, determined not to It was really too early, it was the middle of 80 years, too early Those years are always talking about, prefer the grass of socialism, not the seedlings of capitalism At this time, private to do audio is obviously not possible There's no way we'll start doing it two years later Because the reform is from the countryside, we directly look for the county party secretary, he said good ah, he said that now advocate rural professional households, you bring science and technology to the countryside, you can So we feed, we don't have feed, we make our own feed, because you can't buy corn without food stamps No way, we use eggs and farmers for food stamps, at that time said food stamps can not be bought and sold, we said we did not sell, nor buy, we just exchange Some people say to tell us, to catch us, say we speculative reverse, good at that time we are not big, at that time did not give us a hard heart, we were not arrested That's how we started making feed just now, Mr Yang of Zhengda, Thailand, said that in fact we do feed or with Thailand Zhenguniversity We do feed, no amino acids, we go to Shenzhen to buy, found that Zhengda there is a factory, business is particularly good, to buy his feed to queue I went in to see, no, they produce is golden, grain feed, from Shenzhen to Sichuan, actually have to line up so long, I think Sichuan is the largest breeding province So I came back, and we started thinking about feed, pig feed, and we started producing feed in Sichuan We eliminated all the quails and used them as feed No technology, no funds, our own equipment, our own research, after a period of time, science and technology feed out, some people say that this is native China, called the first batch of science and technology feed At that time, we are in the competition with state-owned enterprises, we gradually began to Because we do not have food stamps, can only use a higher price to buy the market corn, we and state-owned enterprises are not in a starting line, at that time feed factories are state-owned In this case, people's price is half of us, our raw materials than they are twice, how I compete We rely on technology, quality, and gradually make a name for ourname in order to meet the needs of the market, farmers friends lined up to buy our feed, row to what situation? There is no way, we invoiced the window squeezed out, the house squeezed out, we in the middle of the dam, over the wall on top of the rest, in that queue, queue to queue very long, when you have good products, all sold out We are such a step by step, so Zhengda is our teacher, I went to Thailand, I said thank you gave us some inspiration Since then we have been able to do this now, it is clear that we are already china's largest feed producer in China, we have more than 16 million tons of feed Step by step we have come to the present, some people say is the feed of the big country such a status We continue to expand the scale, in previous years, as long as we expand the scale, we must be more efficient, we will be able to make more money The bigger you are, the less money you will make The more people you hire, the higher the cost We are reflecting, especially in recent years, the Huangpu River floating pig incident and so on, the impact on our industry is very large, how to make our costs lower, we can not simply take the road of scale so, we're in the study, we're thinking about it, we're going to innovate How to innovate? Just now, Thailand is talking about his innovation, and we think, how can we innovate? Thailand is doing a lot of business in China, but his global, their business is also very many, he is a good enterprise We have gone through our research, our consideration, we think that our market competition is very hot, we should participate in the world competition It turns out that after we came out of the country, our competitive advantage is still quite strong, our technology, quality, management, especially our Chinese spirit is good We now have initial experience in Vietnam, the Philippines, Cambodia, and many countries Then we started in South Asia, from South Asia to the Middle East, from the Middle East to Africa, and now we are in Egypt, in Turkey, in South Africa, in many countries, we are building factories we are in these countries, we find that our investment returns are higher than in China, and that we in China, these cadres, their systems, their struggles, this spirit is that foreign companies can't catch up That's why we propose that our transformation must be transformed and upgraded first, go out and seek development overseas, how to develop? We have summed up the experience of building factories in overseas developing countries, and now we have 35 factories overseas, and now more than ten are expanding every year Acquisition platforms in developed countries overseas, acquisition of technology Recently we have increased the cooperation of developed countries abroad , in addition, buy resources in resource-rich countries Recently, as you can see, we're new hope in New Zealand, we bought shares in some dairy companies, we use local grass, local sunshine, local cattle in New Zealand to produce the best local milk, and then local production and processing the best infant milk powder, supply to the Chinese market Chinese people adopt a new model locally, and everyone knows, what are our assessments? Is the evaluation company of the United States, but who made it? The vast majority of Chinese, Chinese who produce, in chengdu may have Foxconn production How many people are Foxconn? Millions of people But Foxconn's products, which are invisible at all, adopt this model of processing Americans produce and master their own technology, their own research and development, their own sales, and put processing in China This model, we Chinese why can't we learn? We Chinese lack of sheep, lack of sunshine, water shortage, why don't we go abroad? Land resources, more sunshine, water, we use its resources? We're going to hit these brands out and it's not the best way to supply the Chinese market we have after two years, the new hope to produce our own brand of infant milk powder market, did not expect the effect is particularly good The first batch came out and was empty because of our good quality, because our source was reliable, because the environment of this place was particularly good Because it's our own control, we're selling, out of a new model, and that's probably an innovation we are the second largest listed company in New Zealand in the agricultural sector, which is quite good We use New Zealand's sunshine, land, cattle, milk production, meet the Chinese market, supply the Chinese market In addition, we are particularly concerned that the price of beef in China has risen so much I remember 30 years ago, chicken was the most expensive in China and the second most expensive for pigs Beef is the cheapest, beef is cheaper, pig is cheaper, chicken is a little more expensive As a result, the reverse is now the most expensive, and the price of cattle is double that of pigs, more than double Because cattle want to eat grass, grass to land, sunshine, water, we do not have so many resources Eating beef is a luxury now What to do? We can only go out and we are in Australia, in New Zealand, in Brazil, we are actively and related companies to discuss, through joint, or controlled acquisitions, we are going to get this resource What we want here is land, sunshine, water, we through our processing to turn it into a global market and the Chinese market products, perhaps this is also an innovation we build factories in overseas developing countries, buy technology in developed countries, and recently we've had extensive discussions with our famous companies How do we jointly invest in it, connect with it, develop it, and do more in China? of course, at home, we are also considering the development of a new model, with what kind of method, can not simply rely on scale We used to make more money on scale, but now it's not We are thinking, building a number of communities, we have a number of points in the country, raise a lot of pigs, I provide technology, provide financial guarantee services We support a number of family farms and pig-breeding cooperatives Together we are on the road to common prosperity Cooperatives are short of money and talent, and together we can solve these problems What are they missing the most? Is the money, the bank does not give them loans, they do not have a mortgage, the bank said your pig, chicken, duck is alive, can not mortgage This model allows for the expansion of scale, which can create new patterns and new productivity, which may be another transformation so, we are constantly exploring, in the new pattern, with what kind of way to meet new challenges, can not use the original traditional methods I won't say much Just said look at some interaction? What's wrong with you, I'd like to discuss it with you .