Procurement News Notice |
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| PNN | 634 |
| Work Detail | Ant Financial has made loans to farmers jointed by China Insurance, Mongolian Sheep and Rural Taobao of Alibaba successfully, and provided one package service from loan to sales, which becomes a typical cross-over joint case of "Internet credit + insurance + leading enterprise + e-commerce" to serve farmers. Can big farmers on the prairie solve the series of problems in the production, supply and sales chain with the "intellectual" Ant Financial? Troubles growing with the increase in sheep A fattening sheep purchase contract has been made and entered into by and between 50-year-old Zhang Youquan and Mongolian Sheep in Horinger, Hohhot, Inner Mongolia. While as a big farmer with near 5,000 sheep, Zhang is not happy at all because in spite of more sheep, his troubles are also growing. With the landing of expanded sheep farm, Zhang's liquid capital has been very tight; the daily fattening cost of 5,000 sheep is very high and RMB 300,000 yuan will be spent for an average of 4 months. Previously, he could only apply to banks for pure credit loans, and such problems as high interest rate and long period could not be avoided. Also the average limit of several tens of thousands of yuan could also hardly meet the requirements. Zhang had to borrow all around. The cost of sheep raising was rising while the net profit hadn't seen much increase. Besides, frequent borrowing also put large pressure on him. In Horinger, there are not a few farmers like Zhang who has a certain farming scale but also has too many problems to deal with capital. Not only other big farmers and Zhang who are worried, but also Mongolian Sheep as a leading enterprise, who has to sell forage and other agricultural materials and tools to farmers on credit each time, and from the farming to the sale of fattening sheep, the payment days will last several months. "As it's difficult for farmers to apply for loans, who are lack of capital, while leading enterprises have to ensure stable and good farmers, sales on account becomes familiar to planting and breeding enterprises, which, however, has large risks in fact and restricts enterprises from their liquidity," said Lv Zhiwen, the vice president of Mongolian Sheep. Innovative services resolving the predicament On June 17, Zhang applied to Ant Financial for a one-year loan of RMB 300,000 yuan, and the capital was sent to him on the same day after the quick review of China United Property Insurance Company Limited and Ant Financial. Meanwhile, Rural Taobao provided onsite services and helped Zhang place fattening sheep fodder purchase orders on the agricultural material platform of Rural Taobao. Zhang received the fodder delivery notice just on the next day, the above is exactly the innovative financial services introduced by several major corporations: "Internet credit (Ant Financial) + insurance (China Insurance) + leading enterprise (Mongolian Sheep) + e-commerce (the agricultural materials and tools platform of Alibaba Rural Taobao and Tmall)". To be specific, Ant Financial provides farmers with pure credit loans and purchases lamb from Mongolian Sheep. Based on the fattening sheep purchase orders placed by Mongolian Sheep with them, farmers can ask Ant Financial for loans. Ant Financial will pay the loans to the agricultural materials and tools platform of Taobao directionally, and farmers can raise sheep with these agricultural materials and tools. When growing up, the lambs will be purchased by Mongolian Sheep and slaughtered for production. Mutton products can be sold in the Mongolian Sheep flagship store on the Tmall and the farmers' sales income will be used to repay the loan made by Ant Financial. Throughout the process, insurance company provides credit guarantee insurance services for farmers. As an example, Zhang Youquan gets the loan on the same day of applying for loan and receives the delivery orders of agricultural materials and tools on the next day, "I will not worry to purchase lambs and fodder as well as employing manpower this year." For big farmers like Zhang Youquan, this kind of service solves their worries practically, and "neither capital nor future sales of lambs needs to be worried about". Lv Zhiwen said it can allow farmers to concentrate on farming itself. Leading enterprises can also enjoy great convenience. "One is release and the other is lock. The innovative services provide leading enterprises with more liquidity and release farmers and enterprises from the dilemma of capital; while the opening of e-commerce sales section helps enterprises lock good farmers and make them more relaxed during purchase." Small- and micro-sized users requiring industrial chain eco-system "It can not only ensure the purchase of farmers' lambs but also ensure the purchase of mutton after production." Ma Jiujie, the standing deputy director of Rural Economic and Financial Research Institute of Renmin University of China, appraised that if the value chain from loans to sales can be finished in an ecological system, the value chain is very meaningful in existence. According to data, till the end of the "12th Five-year Plan", the livestock's scale breeding rate in the whole Inner Mongolia reached 68.2 percent, 14 percentage points higher than the national average level, among which, the scale breeding rate of sheep reached 68 percent. Compared with pork, such problems as low modernization degree and low large-scale degree exist in the processing and sales of mutton, which also has large market potential: People's demand on such "minor meat" as mutton is increasing and the national attention to food safety will also provide big farmers and leading enterprises with more chances. "Big farmers still belong to 'small and micro users' in previous financial services, who shall be served in an industrial chain eco-system." Yuan Leiming, the vice president of Ant Financial, said that the mode of "Internet credit + insurance + leading enterprise + e-commerce" has released farmers from their worries to the largest extent, and also helped solve the difficulties of leading enterprises. Internet enterprises shall face the demands and detailed difficulties of rural users actively and give full play to their superiority and the energy of ecological system actively. |
| Country | China , Eastern Asia |
| Industry | Food & Agriculture |
| Entry Date | 02 Sep 2016 |
| Source | http://en.ce.cn/Insight/201608/29/t20160829_15338377.shtml |
