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Xue Hua of HAID: We feel lucky to choose the promising and lasting agriculture and animal husbandry industry

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  Xue Hua of HAID: We feel lucky to choose the promising and lasting agriculture and animal husbandry industry
  Xue Hua, Chairman of the Board of HAID Group   This is an era That witnesses the tremendous change of agriculture and animal husbandry industry.   The year of 2012 witnessed the watershed of the whole agriculture and animal husbandry development because breeding industry also entered into the structural adjustment period after feeding industry was plagued by excess production capacity.   From 2013 to 2015, we experienced the period from the zero growth of overall feed to the declining stage, and the sharp decrease of feed enterprises from over 10,000 to 6,000, as well as the decreasing stocks of products such as chickens, ducks and fish, and the lowering prices.   Almost all feed enterprises confronted with the most serious challenge. What's worse, every feed enterprise has to confront the crisis because it is the new normal of agriculture and animal husbandry industry.   Transformation of Chinese agriculture and animal husbandry   However, behind the crisis, it is the real transformation and going global of Chinese agriculture and animal husbandry industry from extensive mode to intensive mode, and from resource-driven development to technology- and management-driven development. The most fundamental change is the change from the backward decentralized operation of tens of thousands of farmers to professional, large-scale and industrialized operation, which is the process of declining number of farmers but the rapid improvement of quality.   The structural adjustment of breeding industry is mainly embodied in farmers’fast withdrawal; the upgrading of consumption is embodied in the lowering price of common meat and fish, but the short supply of high-quality products. It can be predicted that, in ten years, the number of livestock raisers will be decreased by 90%, and the scale of a single livestock raiser will be expanded over tenfold. Chinese breeding industry will enter into the mainstream mode of farm managers and professional livestock raisers, and the upgrading of livestock raisers will upgrade food quality. The change of breeding industry will bring challenges to all enterprises, but it will create huge development potentials.   These reforms will exert a direct influence on the strategic foundation of future development, and any one who can satisfy the needs of future customers will win the future.   Enterprise that scores the substantial increase in volume and profit in 2015   Our feed quality is improved, and we still maintain the linkage mechanism of integration of four parts, product upgrading and structural optimization, and the substantial increase in net profit; aquatic animal protection scores a big increase, and livestock animal protection begins the comprehensive layout; aquatic seedling scores the good development, and shrimp seedling also realizes the handsome profits while the quality is improved; breeding section is also confirmed as a development strategy; the new businesses such as financial service and pet feed are also substantially launched. In 2015, HAID Group is one of the rare enterprises that score substantial increase in both volume and profits.   All our achievements can be attributed to our successful development strategy and many years' insistence on operation philosophy. It is our only purpose of "creating value for our customers". Furthermore, we are clear that we are confronting with a changing market with huge challenges. In future, the demands of farm managers and professional livestock raisers are the foundation and chance of our survival and development.   We are advancing on the correct path   On the basis of the development of the industry, we believe that what customers need is the support in product power, breeding service and financial service, which proposes the high demand for feed enterprises. Luckily, we are always advancing on the correct path.   Over many years' insistence on the operation philosophy of "creating value for customers", we have been committed to improving product power and breeding service, and our financial service has been smoothly established.   Product power is the foundation of everything. It will be our eternal pursuit for improving the product power because the obvious product power can ensure the effective breeding service and financial service. However, the building of product power should be supported by various professional links: breakthrough of technical R&D, procurement advantage, and precise product positioning, and stable and efficient internal operation.   Besides the professional capability, more important thing is to build rapid linkage mechanism. The progress of our animal feed in recent years can be ascribed to the initial establishment of this mechanism. However, the implementation of linkage mechanism of "integration of four parts" in aquatic feed and pig feed is much slower than that of poultry feed, so it should be accelerated in two years.   We still have a long way to build the service system. Owing to the early start, the aquatic service system has formed the all-round solution for feed, seedling, animal protection and technical service, and enjoyed certain competitiveness, but we should work harder in two years to strengthen the competitiveness. The service of poultry section will be gradually established, and the service demands of pigs, chickens and ducks are increasing; the promotion of breeding business demonstrates the value and efficiency of services.  It is expected that the service of poultry section will surpass the aquatic section and firstly form the efficient service system in two years.   Financial service becomes the new need of customers   With the upgrading and transformation of agriculture and animal husbandry industry, financial service will become customers' new demand, and the need for industrial development. Thus, we have explored financial service support.   During the era of transforming the industry, most enterprises choose the development direction of industrial chain extension and diversified operation. Our basic strategy is the specialization-based scale development and the industrial chain extension on the basis of core competitiveness.  During every step of the extension of industrial chain, we will cultivate technology and teams for a long time to form specialization and technical breakthrough, confirm effective operation mode, and rapidly expand scale after building advantages.   All of our business sections will follow this basic principle. We will never enter into one new field before we have owned the professional capability; we will never expand the scale before we have built core competitiveness and competition advantage.   Thus, every new business develops slowly at the initial period, but it will score rapid development after building advantages. Every new business enjoys huge development potentials, and every business follows the same basic logic, i.e. pursuing advanced technology and outstanding team on the condition of "creating value for customers". Our strategy is to be stronger before we become bigger. As a matter of fact, you will become bigger as long as you are stronger.   We feel lucky to choose the agriculture and animal husbandry industry   Luckily, we choose the never-fading agriculture and animal husbandry industry. In ten years, the value of the industry, the enterprise and everyone will be further embodied. This is an era that has given to us a historic opportunity.   We have full confidence to promote the efficiency of Chinese agriculture and animal husbandry industry, and lead the industry to provide healthy, quality and efficient food for the society. This is the goal and responsibility for a great enterprise.   —Xue Hua, Chairman of the Board of HAID Group
 
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