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Shanxi Haisheng Group
China: New partnership model in fruit industry--farmers become shareholders
In recent years, the Shanxi Haisheng Group has built apple plantations in some villages in Ningxian County, including Jiaocun, Zaosheng and Liangping. These plantations built on the "Haisheng Model" have a total area of over 22,000 acres. The new model of apple cultivation focuses on planting shorter trees with a greater number per unit area, which leads to better quality, lower energy consumption, less work and greater efficiency. Therefore, the model has rapidly become popular among farmers in the area.
The total investment of this project reached 130 million yuan. Earlier this year, Ningxian and the Haisheng Group decided to cooperate on the project with 6,000 acres of apple plantations on the "Haisheng Model" and to attract the investment of farmers by offering them shares in the project. The Haisheng Group is responsible for the management of the plantations, while the Apple Industry Cooperatives are responsible for fund raising and the supervision of the project.
New cooperation mode for apple cultivation in Ningxian
The division of profits is directed linked to the number of shares one has. For the first three years, there will be no profit from the plantations, but share holders can get a minimum dividend of 2%. Later when fruits are harvested, the Haisheng Group will calculate the net profits after deducting all the costs and give out dividends based on the number of shares each farmer has. This new mode of running plantations is a big step for the development of domestic green produce brands.
During the IFresh Asian Green Produce Summit which will take place on 11 and 12, May, there will be a separate venue for the topic of "the development of National Brands". Mr. Hui Wang, director of the Shanxi Modern Fruit Group and general manager of the Shanxi Haisheng Group will attend the event and give a speech on how to improve the overall industry chain and build high-end brands of green produce.