On March 2, members of the National Committee of the Chinese people’s Political Consultative Conference and the chairman of New Hope Liuhe Co.Ltd(000876) group disclosed their proposals for the two sessions at the media communication meeting. Among them, the “special action for grain saving” launched by New Hope Liuhe Co.Ltd(000876) is to achieve the goal of saving 1% of grain consumption every year by improving the comprehensive efficiency of feed use, and it is suggested that breeding enterprises across the country take action together.
The background of this proposal is that the No. 1 central document issued in February this year, the CPC Central Committee and the State Council, in the opinions on doing a good job in promoting the key work of Rural Revitalization in 2022, stressed that “safeguarding national grain security” will firmly safeguard the national food security and not bring about the return of poverty to the two bottom line. Highlight “fully grasp grain production and important Shenzhen Agricultural Products Group Co.Ltd(000061) supply”.
Liu Yonghao mentioned a series of calculation figures in the proposal. According to the data of the National Bureau of statistics, China’s grain output will be 670 million tons and grain planting land will be 1.75 billion mu in 2020, with an average of 0.38 tons per mu. New Hope Liuhe Co.Ltd(000876) has the largest feed production capacity in China, with an annual output of 30 million tons of feed, accounting for 4.4% of the national grain output, and the corresponding grain planting area is 77 million mu.
With the upgrading of food consumption structure, feed grain consumption has continued to grow in recent years. Among them, soybeans and oil mainly depend on imports, and the high dependence on foreign countries of large-diameter grain has become a weakness to ensure China’s food security. Especially after the Spring Festival this year, the feed market price has risen all the way, especially the soybean price has increased significantly, which is mainly due to the influence of the international market.
Xiaohang, the Chief Strategic Master of Guoke modern agricultural industry science and Technology Innovation Research Institute, made an analysis to the interface news. From the perspective of grain consumption, the largest variety of grain output and consumption in China is corn, while the largest import is soybean. Both are mainly used as feed. China has now become the world’s largest breeding country, and the feed industry based on corn and soybean has made great contributions. Agricultural achievements also largely come from the rapid development of aquaculture. Therefore, this year’s No. 1 central document encourages food production, including corn and soybean cultivation, from subsidies and technology.
Liu Yonghao said at the communication meeting that soybean prices have increased by 50% in the past week. This makes food saving action more urgent. He said that New Hope Liuhe Co.Ltd(000876) through the special food saving action, we can make contributions to ensuring food security, realize low-carbon and environmental protection production, and practice the concept of double carbon development.
Specifically, New Hope Liuhe Co.Ltd(000876) will reduce and improve the feed conversion rate and utilization rate and improve the comprehensive efficiency of feed use through breeding, feed formula and breeding methods, so as to achieve the goal of saving food. If the comprehensive efficiency of feed use is increased by 1% every year, 770000 mu of cultivated land and grain output can be saved. For five consecutive years, it is equivalent to saving the output of 34 million mu of good farmland.
In fact, there are challenges behind the special action measures for food saving.
Liu Yonghao said, for example, New Hope Liuhe Co.Ltd(000876) group has invested several billion yuan in pig, chicken and duck breeding. In addition, the price of pig breeding products increased to a certain extent last year, which has a certain impact on the price of pig breeding products. Liu Yonghao hopes that the state will give policy support to enterprises in terms of breeding, talent training, taxation and so on.
