Event:
On the morning of March 5, 2022, the fifth session of the 13th National People’s Congress held its opening meeting in the Great Hall of the people. Premier Li Keqiang delivered a government work report. In the government work report, it is proposed to vigorously grasp agricultural production and promote the all-round revitalization of rural areas. We will improve and strengthen agricultural support policies, continue to promote the development of poverty-stricken areas, and promote bumper agricultural harvests and increase farmers’ income.
Brief comment
1. Strengthen grain and other important Shenzhen Agricultural Products Group Co.Ltd(000061) stable production and supply. Stabilize the sown area of grain, strengthen the field management of summer grain for late sowing of wheat, and promote the increase of soybean and oil. Appropriately raise the minimum purchase price of rice and wheat.
Interpretation: to ensure that the annual grain output is maintained at 1.3 trillion kg, stabilizing grain rations, stabilizing corn, expanding soybeans and oilseed rape are the four main directions to ensure Shenzhen Agricultural Products Group Co.Ltd(000061) stable production and supply. Grasping the key period of returning to green, jointing and grouting, and implementing the key measures such as increasing the application of returning to green fertilizer and “one spraying and three prevention” can effectively deal with the impact of late sowing of wheat. In view of the rapid increase of farmers’ agricultural assets, such as the purchase price of rice and other measures, it is conducive to increase farmers’ planting power, so as to increase the price of main grain and increase farmers’ internal profit.
2. Firmly hold the red line of 1.8 billion mu of cultivated land, fully delimit permanent basic farmland, and effectively curb the “non-agricultural” of cultivated land and prevent the “non grain” of cultivated land.
Interpretation: stabilizing grain production area is an effective measure to ensure food security. Specifically, ① number of pipes: 1.8 billion mu of cultivated land is worthy of its name; ② Improve quality: strive to build 1 billion mu of high standard farmland, strengthen the transformation of medium and low yield farmland, promote the development and utilization of saline alkali land, and tap the yield potential by improving soil fertility; ③ Controlling the use: strictly implement the priority order of cultivated land use, classify and clarify the use of cultivated land. In addition, the CPC Central Committee and the State Council will implement a series of provisions on the strictest cultivated land protection system and relevant laws and regulations to curb the “non-agricultural” of cultivated land and prevent the “non grain” of cultivated land.
3. Accelerate the revitalization of seed industry, strengthen the research, popularization and application of agricultural science and technology, and improve the level of agricultural machinery and equipment.
Interpretation: seed industry is the “chip” of agriculture, which is very important to fundamentally ensure national food security. The revitalization of seed industry will continue to focus on the following four points: ① strengthen the protection of germplasm resources and implement the general survey of germplasm resources and the construction of resource bank as soon as possible; ② Accelerate breeding innovation and build an efficient and accurate biological breeding technology system; ③ Strengthen the construction of seed production bases and continue to promote the identification of large seed production counties and regional improved seed breeding bases; ④ Support the development of high-quality seed enterprises, and make joint efforts by breeding enterprises, scientific research institutions and government departments to solve the problem of “small, scattered and weak” of seed enterprises.
4. Improve the ability of agrometeorological disaster prevention and control and animal and plant disease prevention and control.
Interpretation: the uncertainty of agricultural production caused by climate change has a far-reaching impact on China’s food security. Improving the ability of agrometeorological disaster prevention and control and establishing and improving the agrometeorological service system can effectively weaken the adverse impact of agricultural disasters caused by climate fluctuations. Doing a good job in the prevention and control of animal and plant diseases such as avian influenza, African swine fever and Spodoptera litura, and improving the grass-roots animal and plant disease prevention and control system can promote the healthy and stable development of aquaculture and planting.
5. Strengthen the regulation of pig production capacity and pay close attention to the production and supply of livestock, poultry, aquatic products and vegetables.
Interpretation: the regulation of pig production capacity will focus on core indicators such as the number of fertile sows and the number of large-scale farms (households), of which the number of fertile sows will be stable at about 41 million; In addition, all localities will also determine the number of fertile sows in the region, the list of pig production capacity control bases, the number of large-scale farms (households) and other indicators, so as to guide farms (households) to reasonably arrange production and prevent ups and downs of production. The development of Fisheries should adhere to the principle of environmental friendliness, continue to promote the standardized transformation of inland aquaculture ponds, and standardize and orderly develop Pelagic Fisheries to ensure the healthy and stable supply of aquatic products. Strengthen the mayor responsibility system of “vegetable basket”, strengthen the construction of vegetable facilities in the north and the base for transporting vegetables from south to north, and build a number of vegetable emergency supply bases to ensure the stable supply of residents’ “vegetable basket”.
6. Comprehensively promote rural revitalization.
Interpretation: ① improve the working mechanism of rural revitalization, and accelerate the formation of a Rural Revitalization working system through responsibility implementation, organization promotion, factor guarantee, social mobilization, supervision and assessment; ② Broaden the channels of agricultural and rural investment by expanding financial investment, strengthening financial support and implementing major projects; ③ Strengthen the support of Rural Revitalization talents, strengthen the cultivation of high-level talents and high-quality farmers; ④ Strengthen the construction of the rule of law in agriculture and rural areas, improve the legal system, strengthen comprehensive law enforcement and strengthen the publicity of law popularization; ⑤ Carry out the establishment of Rural Revitalization demonstration, adopt the method of creating first and then identifying, build about 100 Rural Revitalization demonstration counties, about 1000 demonstration townships (towns) and about 10000 demonstration villages, focus on the key tasks and weak links of rural revitalization, and give play to the role of demonstration guidance and factor agglomeration.
7. Investment suggestions
Combined with the above points, we sort out four main investment lines.
(1) pig breeding: focus on Wens Foodstuff Group Co.Ltd(300498) , Muyuan Foods Co.Ltd(002714) , and pay attention to Fujian Aonong Biological Technology Group Incorporation Limited(603363) , New Hope Liuhe Co.Ltd(000876) , Tecon Biology Co.Ltd(002100) , etc.
(2) poultry industry chain: focus on recommending the leader of white feather broiler industry chain Fujian Sunner Development Co.Ltd(002299) and the targets of yellow feather broiler Jiangsu Lihua Animal Husbandry Co.Ltd(300761) and Hunan Xiangjia Animal Husbandry Company Limited(002982) etc.
(3) seed industry: recommend high-quality leading seed enterprises, such as Yuan Longping High-Tech Agriculture Co.Ltd(000998) , Beijing Dabeinong Technology Group Co.Ltd(002385) , Shandong Denghai Seeds Co.Ltd(002041) , Winall Hi-Tech Seed Co.Ltd(300087) , and Jiangsu Provincial Agricultural Reclamation And Development Co.Ltd(601952) in planting field.
(4) high quality agricultural leaders: recommend Guangdong Haid Group Co.Limited(002311) , Tianjin Ringpu Bio-Technology Co.Ltd(300119) , Jinyu Bio-Technology Co.Ltd(600201) , Pulike Biological Engineering Inc(603566) , Wuhan Keqian Biology Co.Ltd(688526) , etc.
Risk warning: covid-19 epidemic has the risk of impact on demand, Shenzhen Agricultural Products Group Co.Ltd(000061) price fluctuation risk, extreme weather risk, epidemic risk of breeding industry, etc.
