Hebei Jize Chili Industrialization Complex

Founded by two leading provincial agricultural industrialization enterprises – the Jize Tianxiahong Chili Company. Ltd and Jize Xiangjunfu Condiment Company Ltd – in August 2014, the Jize Chili Industrialization Complex consists of four upstream and downstream enterprises, 12 professional farmers' cooperatives and one family farm. In January 2017, it was identified as the provincial demonstration agricultural industrialization complex by Hebei Provincial Agricultural Industrialization Office.

Management model. The Jize Chili Industrialization Complex adopts the "company + base + cooperative family farm + farmers" management model. The Complex consists of core leading enterprises, cooperatives, family farms, other upstream and downstream enterprises and technical cooperation units. Its members have jointly formed a members' representative assembly, a council, supervisory board and an operations management centre. The council makes judgments and decisions based on collected market information, forms preliminary production plans and submits them to the members' representative assembly for discussion. After revision and approval, the operation management centre is responsible for implementation and for assigning cultivation tasks to the relevant members of the Complex. The family farm and cooperatives implement their own production and management activities as required. The upstream and downstream enterprises provide agricultural services, and the technical cooperation units carry out technical guidance. The core companies are responsible for the acquisition, processing and marketing of agricultural products, and at the same time, feed relevant market information back to the Council.

The connected interest model. The Complex has achieved cost-effectiveness through its members in three ways. First, the members of the upstream and downstream enterprises that supply seedlings and agricultural materials in the Complex are responsible for distributing seedlings, fertilizers, pesticides and other materials to the cooperatives and family farms at a price well below the market level, which has saved chili planting costs and reduced financial pressure on cooperatives and family farms. Second, the core enterprises purchase the chilis from the members at a guaranteed price such that, when the market is high, the chilis are purchased at the market price and when the market is low, they are purchased at a guaranteed price of RMB 0.8 per kg, which guarantees the sales efficiency of the chili products. The Complex has also established cooperative relationships with technical units to provide members with high-quality chili varieties. The products have been significantly improved in terms of anti-aging and reversibility, laying a good foundation for increasing production, income and efficiency.

The risk-prevention and control model. The Complex has exploited its own advantages and assisted members in preventing marketing and planting risks. First, the core enterprises exploit the advantages derived from information on planting and market demands, scientifically predicting the price trend of agricultural products, guiding the members of the Complex to adjust planting and listing cycles in due time, avoiding price peaks and falls thereby achieving appropriate supply and demand and planting adjustments. Second, the core enterprises took the development of green products according to market demand as a breakthrough in guiding high-end cultivation of chilis, minimizing dislocation problems, enhancing the value of products and avoiding the pressures of conventional competition. To assess planting risks, trials and demonstrations of new varieties were carried out. The Complex introduced new varieties such as selenium-enriched chilis, hypoglycemic chilis and sweet corn in a planned and targeted manner. After successful trials, the practice would be gradually promoted to achieve the dual effects of risk prevention and control and revenue increases.

For more information, please contact WFP China COE (wfpcn.coe@wfp.org)