Low Profit Management, Service Marketing and Proximity
Intensive development is the three basic business strategies implemented by the group company for a long time. These three business strategies are also based on the purpose of creating value for users and bringing benefits.
First of all, tap all potential, integrate all advantages, further reduce the cost of feed products, and truly establish low-profit operation on the basis of low-cost advantages. First, give full play to the advantages of large-scale procurement of group companies and purchase high-quality and cheap raw materials. All imported raw materials are purchased by group companies, and some domestic bulk raw materials are also purchased by group companies or districts, which greatly improves the negotiation ability and reduces the procurement cost; The second is to improve the technical level of nutritional formula and reduce the cost of nutritional formula. On the basis of implementing the user's quality price standard and ensuring all nutritional indexes, the nutrition formula technicians of the group company constantly test, develop and use some substitute raw materials, which effectively reduces the formula cost; Third, strictly control and reduce the four expenses of management, manufacturing, production and sales. In 2004, the average four expenses per ton of feed of the group company fell below 100 yuan, and the lowest enterprise fell below 70 yuan. The low-cost advantage formed by the company has effectively guaranteed the smooth implementation of meager profit management and brought considerable economic benefits to farmers.
Secondly, in service marketing, the focus is on the construction of "three-oriented" (specialization, localization and middle-aged) service marketing team. The purpose of putting forward the concept of service marketing is to help farmers reduce breeding costs and improve breeding technology and efficiency. This requires service marketers to have rich professional knowledge, skills and experience in livestock and poultry breeding and disease prevention. To this end, the group company recruits talents and gradually replaces service marketers who can't meet the requirements of "three modernizations". In the whole service marketing team, the proportion of specialized personnel is rising, which creates conditions for effectively serving aquaculture.
Third, close-range intensive development, focusing on increasing the proportion of sales in the close-range market, has also achieved good results. At present, the group has developed to more than 40 feed enterprises in the province. With the distribution of feed companies becoming more and more dense, the close-range intensive development area of each feed company is getting smaller and smaller. In recent years, the group company has redefined its close-range dense development zone with the feed factory as the axis, requiring all companies to increase the sales ratio of the close-range dense development zone, optimize the sales channels, help close-range breeding users save transportation costs, and ensure that they really benefit from Liuhe meager profit management. Over the past year, through the unremitting efforts of feed enterprises, the sales ratio of close-range dense development zones has been greatly improved. In the close-range dense development zone designated by the group company, the sales ratio of each company reaches more than 80%. Compared with the long-distance sales in the past, the transportation cost alone can save more than 80 million yuan for users in dense development zones.
In addition, in the close-range dense development zone, feed enterprises have simplified the sales links and optimized the sales channels. First, they made direct sales to large farmers as much as possible, and all the intermediate expenses saved benefited users; Second, for those who have to retain dealers, only one level should be retained, so as to guide them to operate at a low profit and make profits by quantity, or to turn excellent dealers into service marketers of the company, further reducing the cost of sales links and ensuring that aquaculture users in close-distance intensive development zones can really enjoy the company's low-profit products.
The continuous promotion of meager profit management, service marketing and close-range intensive development has brought huge economic benefits to farmers. The cost of aquaculture feed has been greatly reduced, and the level of aquaculture technology and income have been significantly improved. At the same time, it also forces enterprises to realize the hardship and innovation of management and expand market share.
At present, the three business strategies of "meager profit management, service marketing and intensive development of close-range market" are developing in a profound and detailed direction, and a series of specific practices such as value procurement, customer marketing, digital marketing, three-dimensional operation, value chain integration, valuable user contribution rate and user value maximization have been successfully explored.
2. Management innovation of meat processing and aquaculture
(1) Establish a contractual cooperation system suitable for the requirements of market economy with contracted chicken farmers. From 65438 to 0997, after entering the processing industry, the group company carefully analyzed the success or failure of the past "one-stop" enterprise operation. In the cooperation with contract chicken farmers, mutual credit is avoided to avoid possible risks, and mutual restraint measures are added to ensure the integrity of both parties, so that the "one-stop" operation can be carried out smoothly.
(2) Pursuing and forming scale advantage. After the success of the first "one-stop" operation, by the end of 2007, the group company had built nearly 40 new refrigeration processing plants in Shandong, Henan, Jiangsu, Anhui, Liaoning and other places, killing 6.5438+0.6 million chickens (ducks) a day, and implementing decentralized processing, centralized sales and unified distribution. The huge scale advantage and supply capacity are fully displayed in the market.
(3) Discover the domestic market and shift from export to domestic market. Facing the green barrier of the international market, the group company is the first enterprise in the industry to consciously turn to the domestic market. Due to the early turn and the rapid formation of scale advantages, it quickly gained a foothold in the domestic frozen products market.
3. Management innovation of aquaculture
(1) Take the lead in calling for and promoting the standardized breeding of commercial chickens and promoting the upgrading and transformation of commercial chicken breeding industry. It is our unshirkable responsibility to develop standardized commercial chicken farms as soon as possible, ensure the quality of chicken from the source of breeding, and finally provide healthy, safe and even green food for the society. Since 200 1, the group company has invested in10,000 and 17 standardized commercial chicken farm, which has become the experimental field and demonstration field to promote standardized breeding.
(2) In 2006, in order to further promote the development of standardized aquaculture, Liuhe promoted the "Pingdu Standardized Aquaculture" model within the Group. The main methods are as follows: Liuhe provides a full set of technical services to help farmers build standardized henhouses and fully automate feeding management; Each chicken house farmer invested about 200,000 yuan in infrastructure, Liuhe invested part of the equipment funds, and the farmers paid it off in stages. This mode solves the problem that farmers lack funds when adopting standardized breeding mode, promotes standardized henhouses and scientific feeding mode, provides a basis for standardized production of livestock and poultry, and lays a foundation for safe production and safe consumption. In 2006, the Group invested 6 million yuan to promote the "Pingdu Standardized Breeding" model, and built and renovated 652 standardized henhouses, which led to the addition of 6.73 million chickens and ducks. In 2007, the Group invested another 20 million yuan to support the construction of 29/kloc-0 new standardized breeding demonstration farms, with a new stock of 4.53 million heads, which made the standardized breeding model spread rapidly in the whole province. With the establishment of Liuhe animal husbandry guarantee company, the guarantee company model gradually replaced the "Pingdu standardized farming" model and became the main form of Liuhe to promote standardized farming.
4. Management innovation of livestock and poultry industry
(1) Liuhe focused on agriculture and animal husbandry, and realized that Liuhe's current main business feed is only a link. The development of animal husbandry lies in breeding, and the focus of breeding is on improved varieties! Therefore, Liuhe independently developed and cultivated "Liuhe White" breeding pigs with excellent performance, and successively established breeding chicken farms, duck farms and pig farms by self-construction or joint ventures, and introduced cherry valley breeding ducks and Haiber breeding pigs with advanced production performance, so that Liuhe can provide all-round services for animal husbandry and provide farmers with the products and services they need.
(2) Sixthly, with the sustainable growth capacity as the focus of the livestock and poultry industry, a benchmarking management system has been established within the enterprise, a perfect production index reporting and communication mechanism has been formed, and a catch-up atmosphere of continuous improvement and innovation has been formed within the group. The group has successively set up benchmarks for breeders, such as the number of eggs, the laying rate, the qualified rate, the mortality rate and the healthy hatching rate of fertilized eggs, as well as the breeding eggs, healthy chicks, the laying rate, the qualified rate, the mortality rate, the fertilization rate, the production cost of ducklings and the healthy hatching rate of fertilized eggs. , and regularly exchange and summarize production data and experience, explore improvement measures, and promote excellent practices. The group has effectively explored the water-saving breeding technology of breeding ducks and artificial insemination technology of breeding chickens, and has been widely promoted in the group.
(3) In order to promote the modernization and standardization of breeding livestock and poultry industry, the Group has established a sound health and epidemic prevention system and a scientific breeding management system in breeding livestock and poultry farms. All farms have purchased and built modern disinfection equipment and facilities, and formulated strict disinfection procedures and immunization plans, which have provided effective protection for the safety of livestock and poultry.
5. Integrated management innovation
The integrated management mode is that the feed factory, cold storage factory and breeding livestock and poultry farm complement each other and cooperate with each other to cultivate feather chickens and ducks within 30-50 kilometers of the cold storage factory. The feed factory is responsible for the distribution of contracted chickens and ducks in the raw material base, the cold storage factory ensures that the contract policy is close to the market and users, and the breeding farm ensures the quality of breeding livestock and poultry. Feed mills, cold storage plants and breeding livestock and poultry farms work closely together, serving each other as resources and customers, forming the ability to serve farmers cooperatively.
The integrated management model has been comprehensively promoted within the group through the pilot projects in central Shandong and southern Shandong, forming a number of industrial clusters in Shandong Province, and forming the embryonic form of industrial settlements in Northeast China, Henan, Anhui, Shaanxi and Shanxi. Integrated management has further improved Liuhe's service ability to farmers, from relying on the personal ability of salesmen to providing nanny service for farmers with overall farming solutions through Liuhe's whole industrial chain system. Liuhe's internal coordination and integration ability has been further improved, and its industrialization advantages have been further exerted.
6. Innovation of guarantee company model
In May 2007, the Group proposed to establish an eight-in-one system composed of government, leading enterprises, financial institutions, guarantee companies, insurance companies, industry peers, cooperatives and farmers to promote the development of standardized farming. In July 2007, Liuhe Group and Wudi County Government jointly established Wudi and Xingmu Guarantee Company. In September, Liuhe Group and pingdu city State-owned Assets Supervision and Administration Commission jointly invested and established Qingdao Pinghe Guarantee Co., Ltd. in Pingdu.
The guarantee company can guarantee a loan of 5 times its registered capital, and provide mortgage, secured loan and other services for farmers to develop standardized farming. In operation, the guarantee company cooperates closely with Liuhe Feed Factory, Refrigeration Factory, Veterinary Drug Factory and Breeding Livestock Farm to provide "one-stop" service for farmers, which not only avoids the dealer link, increases farmers' income, but also improves the synergy of the whole industrial chain, laying the foundation for the industrialization development of animal husbandry.
In just half a year after its establishment, Wudi and Xingmu guarantee companies have issued more than 20 million yuan of guarantee support funds, driving more than 60 standardized farms/KLOC-0, with a total investment of more than 60 million yuan.
7. Strong alliance and aggregate development
The development strategy of cooperative development and alliance management is a powerful driving force for Liuhe's sustainable growth. The Group has cooperated with outstanding enterprises at home and abroad, such as New Hope, Shiyang, Elephant, COFCO, Jingwei, Rong Da, Yin Bao, etc., and their advantages are complementary, so that the enterprises have embarked on the road of rapid development. Following the strategic alliance between the Group and New Hope in 2005, in 2006 and 2007, it achieved strong alliance with Shiyang and Elephant in Shanxi, which accelerated the integration of agricultural industrial chain and value chain and promoted the development of feed industry in China. Over the years, Liuhe has carried out in-depth and multi-directional cooperation with international outstanding enterprises such as Cherry Valley in Britain, Haibo in Canada, Marubeni in the United States and Mitsui in Japan. To realize the sharing of resources such as development model, brand building and technology research and development, and to complement each other's advantages, so as to promote Liuhe's integration with international industries and explore new ways for the development of agriculture and animal husbandry in China.