Poverty Alleviation Through Integrated Enterprise Development and Brand Creation

I. Overview of the project: 

Located in the southeast of Ganzi Tibetan Autonomous Prefecture, an impoverished prefecture in the west of Sichuan Province, Jiulong County once was an economically backward locale facing numerous developmental difficulties – despite its abundant industrial resources, diversified ecosystems, varied cultures and development potential. The county’s poverty rate reached 13.5 percent. Residents had long been reduced to subsistence living at the mercy of the elements. 

In 2014, the county initiated targeted poverty alleviation by implementing the “five industrial brands +” development strategy. The “five industrial brands” involve Jiulong yaks, Sichuan pepper, walnuts, tea and konjak. The "+" spans featured industries such as donkeys, sika deer, black pigs, Paris polyphylla (a flowering plant native to China) and Bletilla striata (Chinese ground orchid). Moreover, a slew of market-oriented, intensive interventions have been adopted to upgrade industrial infrastructure and distinctive regional brands with the ultimate goal of developing large-scale businesses. 

The annual stock of yaks in Longzhihui Company’s Wanba Yak Base reaches 1,800.

With these measures, industry developed rapidly. A large number of small, local planting and breeding businesses have since sprung up in the county, covering Sichuan pepper, tea, konjac, yaks, goats, chickens, pigs, sika deer, donkeys and more.

II. Approaches and methodology: 

1. Integrated development: the Jiulong Yak Modern Agricultural Park. The Jiulong yak is included in China’s National Catalogue of Livestock and Poultry Genetic Resources. This project aims to build a complete industrial chain for the breeding and raising of Jiulong yaks, based on local resources and a solid industrial development foundation. The industrial park covers all towns and villages, and benefits every farmer and herder in the county. The park consists of one center and nine bases. 

The center comprises of the Jiulong Yak Museum and nine application platforms which focus on science and technology aspect. Through this center, Jiulong establishes tourist attractions and works to become a hub for yak tourism – where visitors can enjoy grassland scenery, Tibetan hotels and food, yak restaurants, camping and shopping in the Muya-style street. 

Nine bases comprise of the germplasm production base, the bull base, the slaughterhouse and so on. 

2. Industrial upgrading: the Jiulong donkey development project.

The project acquired a poorly managed collective-owned donkey base in Taka Town through an investment of 4 million yuan (USD 593,472) , and invested 1.2 million yuan (USD 178,042) to build three new donkey-breeding bases.

3. Product processing: processing and selling high quality agricultural, forestry and husbandry products. 

After assessing the area’s agricultural resources, Jiulong decided to establish a standardized system for processing, packaging and selling local products: Jiulong yak, Sichuan pepper, walnut, tea and konjak, donkey, sika deer, black pig, Paris polyphylla and Bletilla striata. 

4. Market development: the Longzhihui-SUNWAH Link project. 

Longzhihui Company distributes dividends to 19 poor villages and shares to 41 non-poverty villages.

Longzhihui Company has become an authorized franchised enterprise of Hong Kong SUNWAH Link; established a number of Jiulong specialty exhibition and sales stores; and created the Longzhihui Online Shopping Mall on the SUNWAH Link website, which has become a powerful sales channel for Jiulong County’s agricultural products.

5. Inclusive Development: piglet-breeding farm project. 

The black pigs of Jiulong are known for their high quality and fetch a higher price than ordinary pigs.A large-scale, standardized, high-efficiency piglet-breeding farm has been built with these funds. The farm is capable of producing 5,000 piglets annually, enough to meet the needs of the county and surrounding regions. The annual sales volume totals about 1.5 million yuan (USD 222,552), and the project has raised local incomes by 800,000 yuan (USD 118.694).

6. Long-term industrial development: land consolidation project. 

The Bureau of Natural Resources of Jiulong County placed Longzhihui Company in charge of bank financing for the land consolidation project. The company has raised more than 70 million (USD 10.39 million) for over 10 administrative villages, providing adequate land resources for the county’s industrial development.

III. Beneficiary description:

1. The Jiulong Yak Modern Agricultural Park 

Large Jiulong yaks

1) Protects the genetic diversity of yaks in Jiulong and provides technical support for the development of the yak industry in China

2)  Promotes the integrated development of tourism, scientific research, and the yak economy, and increases local incomes

3) Increases vegetation coverage and protects the environment

2. The high-quality agricultural, forestry and husbandry products processing and selling project

1) Provides nearly 3,000 jobs every year

2) Supplies tested yak meat, donkey meat, pork, mutton and poultry for the whole county

3) Addresses sales and primary processing problems facing farming and planting cooperatives as well as local farmers, which improves the added value and market competitiveness of local products.

3. The Jiulong donkey development project

1) Enables the standardized breeding of donkeys;

2) Saves the black-donkey base in Taka Town from bankruptcy. 

3) Protectes the collective industry, consolidates poverty reduction achievements, and removes the risk of increased economic burden on locals following the loss of the industry

4) Supports the quantitative management of local investment and village collective economies.

4. The Longzhihui-SUNWAH Link project. 

1) Annual sales turnover of special Jiulong products surpassing 1 million yuan. 

2) Jiulong specialty products popular far beyond the county

3) Provides cheap and fine goods for local people

5. The Piglet-breeding farm project

1) Annual sales revenue of 5000 piglets reaching 1.5 million yuan (USD 222,552) and local incomes increased by 800,000 yuan (USD 118,694).

2) Promotes large-scale, high-efficiency, industrialized pig breeding;

3) Helps preserve and perpetuate local high-quality pig breeds and supports the development of a series of pork products.

6. The land-consolidation project

Silage oats planted on a plateau by the Longzhihui Company

The land-consolidation project lays the foundation for the county's industrial development, provides many jobs and increases incomes for local residents, and offers significant experience on fully utilizing land resources.

IV. Reference and recommendation for other countries:

1) Integrating resources, leveraging the role of the market, optimizing available funds, and implementing standardized operation and management all played a role in the project's success.

2) Market-oriented methods, large-scale production, industrial supply chains, and brands are all highly important for economic growth. 

The second signing ceremony for the pilot project: supporting village collective economic development in Jiulong County

3) Poverty reduction is fundamentally driven by development based on local resources.  

4) Poverty reduction requires joint effort between the government, enterprises and people. It is essential to guide and mobilize impoverished people. Consequently, the development of poverty-alleviation industries in a region must benefit the majority of the local people.

5) It is necessary to develop a far-reaching plan, be prepared for changes, and adopt targeted measures during different phases. 

6) A holistic approach is the key to achieving industrial development in any region. Only through an industrial structure that brings together all sectors’ strengths can an industry benefit the highest number of people in a virtuous circle. 

7) Appropriate use of policies can facilitate industrial development. 

8) Environmental protection has become an important part of modern industrial development as well as a necessity for consolidating poverty reduction achievements. 

Source：

This article is excerpted from Global Solicitation on Best Poverty Reduction Practices.