The agriculture and animal husbandry sectors, deeply intertwined with the lives of the populace, represent a cornerstone of economic growth and a foundation for social stabilityIn recent months, prices for agricultural products such as meat and eggs have experienced considerable fluctuations, with market prices reducing consistentlyThis scenario poses challenges to upstream producers in the breeding and agricultural fieldsWhen evaluated within the broader context of the agricultural and animal husbandry industry, several sub-sectors continue to grapple with the cyclical nature of the industry.

Founded in 1982 by the illustrious entrepreneur Liu Yonghao, New Hope Group specializes in modern farming, animal husbandry, and the food industryWith over four decades of development, this private enterprise has become a leader in the sectorToday, the company boasts the world's largest feed production capacity, ranks second nationwide in cold chain logistics orders, holds the third largest pig farming scale, is fourth in processed meat capacity, and is fifth in dairy output, making it one of the largest comprehensive suppliers of meat, eggs, and milk in China

As a prominent player in the domestic agricultural sector, New Hope Group possesses substantial experience in navigating the industry's challenges and cycles.

In light of the company's fortieth anniversary, Liu Yonghao granted an exclusive interview to our reporter, sharing insights into New Hope Group's development strategies and reflections on the current state and future path of the agricultural sectorLiu believes that the domestic agricultural industry has nearly reached a phase of rapid development and expansionMany segments are approaching their saturation points, necessitating companies to explore more niche markets while being acutely aware of shifting consumer demandsAdditionally, under the "Belt and Road" initiative, overseas markets present new opportunities that private enterprises should seize, seeking broader spaces for growth.

"Amidst today's competitive landscape, many suggest that competition among Chinese enterprises is cutthroat

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While that is true, I believe the crux of the competition extends beyond mere price warsInstead, companies should focus on enhancing product quality and service standards to offer consumers superior products and services," Liu remarked during his discussion with our reporter.

Liu Yonghao emphasized the need for a shift in competitive thinking within the agricultural and animal husbandry sectorsCiting statistics from relevant government departments, he noted that as of 2024, prices for feed and fresh milk have consistently declined, leading to corresponding fluctuations in the performance of affiliated industries and businessesIn Liu's view, although the feed sector's revenue may remain stable, the dairy segment could indeed see some growthHowever, many companies are facing declines, and consumer demand across several industries appears saturated after decades of accelerated growth

This situation uncovers fundamental issues within traditional sectors, particularly a lack of innovation which has constrained consumption capacity.

The ongoing international complexities, coupled with stagnation in the domestic real estate sector compared to previous growth, have altered consumer psychology, thus necessitating corporate adjustmentsLiu articulated a sentiment regarding the trend of 'involution'—a development born from robust domestic production capacity eclipsed by insufficient consumption capacity—resulting in many industries resorting to price slashing to attract customersUnfortunately, such bounded reductions erode value for both companies and consumers, leading to a detrimental race to the bottom.

According to Liu, traditional enterprise competition should pivot towards innovating in branding, product development, and technological advancements, ultimately creating a globally recognized Chinese brand that can export outstanding products, technologies, and management practices to international markets.

When discussing competitive advantage regarding products, Liu noted that New Hope Group long focused on the breeding and slaughtering of pigs

Yet, recognizing the diverse demands of consumers for meat products, the company expanded its offerings to include niche items like crispy pork and pig intestines, even branching out into corresponding sauces and other productsWith the rise of e-commerce and the evolving consumer landscape, logistics has become vitalFigure that younger consumers are particularly sensitive to efficiency in delivery times, New Hope Group has successfully established a national logistics distribution network, leveraging its brand strength to meet consumer needs.

By 2023, New Hope Group's feed production capacity has reached an impressive 28 million tons, leading the global feed manufacturing sectorFurthermore, the company's cold chain logistics have garnered recognition, ranking second nationally, while pig farming capacity stands at approximately 17 million heads—placing the company third in the country

Its meat processing operations handle around 4 million tons, corresponding to the fourth-largest capacity, and the dairy segment has surpassed sales revenue of 10 billion yuan, boasting a market value exceeding that amount as well.

Commenting on overseas expansions, Liu revealed that New Hope Group's international projects often yield profits that far exceed those generated domesticallyThis potential has propelled the company to accelerate its overseas expansion efforts along the "Belt and Road" initiative, establishing factories in various countries including Vietnam, Indonesia, the Philippines, Sri Lanka, Egypt, and South Africa.

Liu recounted an anecdote about his daughter Liu Chang, who recently conducted research in EgyptThe Egyptian Prime Minister and other government officials expressed gratitude to New Hope representatives for their contributions to the development of Egypt's food industry, confirming the positive impact of their operations under the Belt and Road initiative

Liu emphasized that New Hope Group has emerged as Egypt's largest agricultural and food enterprise, exemplifying the pioneering spirit of private businesses venturing into international markets.

On the topic of digital transformation, Liu consistently underscored its significance for the traditional industryHe indicated that embracing digital innovations would significantly enhance operational efficiencies and reduce costs"As far back as nine years ago, we began strategizing in this areaThis roadmap involved not simply rash investments or factory expansions; rather, we sought to enhance our workforce's technological capabilities, enabling a transformation in our production strategies," he elaborated, asserting that these measures would bolster New Hope Group's efficiency and technological proficiency.

In implementing a digital training program, New Hope Group invested six months to educate over 200 mid- to senior-level executives, collaborating with institutions like Harvard to reshape their understanding of digital and technological advancements