Wen's Group Closed Entrusted Farming Model Research
Guangdong Wenshi Food Group Co., Ltd. is located in Lezhu Town, Xinxing County, Yunfu City. It was founded in 1983. The company started from the original seven households with eight shares of 8,000 yuan. It was established in the industry by adopting advanced business model and management mode. The growth rate in the first year is over 50%, and the annual growth rate has remained above 30% in recent years.
After more than 20 years of development, the Wenshi Group currently ranks among the top ten in the world in terms of chicken production, the largest in Asia, and the Group is also the largest breeding pig breeding and hog producer in China. The group has more than 30,000 employees. In 2008, it listed 690 million broilers and 2.54 million muttons. The Group's sales revenue reached 15.8 billion, and farmers' profits reached 1.36 billion yuan. In 2009, the group plans to list 760 million broilers and pigs 3.5 million. head.
The biggest feature of the Wen's model is the construction of a unique closed entrusted farming model. It is different from the “company + farmer†model based on the market trading relationship, and also the “company + farmer†model with completely vertical integration. The closed entrusted farming mode has become the institutional basis for Wen's business process reengineering and value chain integration, achieving the maximum complementarity and minimization of the advantages of the company and farmers.
Agricultural BPO: closed entrusted farming
Under the background of economic globalization and specialized division of labor, Business Process Outsourcing (BPO) has been increasingly valued by enterprises, that is, outsourcing some businesses that are not their own strengths or high costs to more professional ones. The outside company goes to complete. In this way, the company will invest more resources into the core business with more time and energy, to reduce costs, improve efficiency, enhance the core competitiveness of the enterprise and adapt to the environment. As American management scientist James Quinees pointed out, "In the past, resource outsourcing was considered a disadvantage of the enterprise, but now, resource extraction may be the key to the operation of smart enterprises." The essence of BPO is the division of labor and complementary advantages on the basis of specialization.
Unlike the white feather broilers raised by some companies in Europe and America or China, the yellow feather broilers raised by Wen's company belong to high quality broilers. White feather broilers are mainly intermediate products such as Western-style catering and raw materials for meat processing enterprises. The products are divided into meat, such as chicken breast, chicken legs, chicken wings, chicken skin, internal organs and chicken racks. Yellow-feathered broilers are relatively old in breeding age, costly, relatively small in weight, and relatively low in meat yield. They are not split chickens, but chickens (known as chickens on the market). Huangyu broiler adapts to the pursuit of a fresh and delicious Chinese food culture, but it not only pays attention to feather color, body shape, but also meat quality and taste. Therefore, it is generally not possible to use factory-based house feeding or cage raising, which requires moderate stocking. The bottleneck that Huangyu broiler first encountered was the land. It also required more labor, and could not take the path of capital-intensive farming of white feather broilers. The key to the success of Wen's company is to find a way of large-scale breeding of yellow feather broilers, which can overcome the constraints of land, give play to the advantages of China's farm labor resources, and achieve large-scale, standardized farming. This is the closed entrusted farming model.
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