Opinions of the Ministry of Agriculture and Rural Affairs on Promoting the Growth and Strengthening of Leading Agricultural Enterprises

1. Adhere to four principles

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  Stick to market orientation

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  Stick to innovation-driven development

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  Stick to building the entire chain

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  Stick to linking and benefiting farmers

 

II. Overall Objectives

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  By the end of 2025, more than 2,000 nationally recognized leading enterprises in agricultural industrialization will be cultivated.

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By the end of 2025, There are more than 500 nationally recognized key agricultural industrialization consortia.

 

3. Enhance Five Key Capabilities

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  Enhancing the Innovation and Development Capabilities of Leading Enterprises

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Enhancing the digitalization capabilities of leading enterprises

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Enhancing the Green Development Capabilities of Leading Enterprises

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Enhancing the brand development capabilities of leading enterprises

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Enhancing the integrated development capabilities of leading enterprises

 

4. Exploring Four Models for Linking Farmers and Supporting Agriculture

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  Building an agricultural industrialization consortium with farmers closely involved

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Exploring the farmer-shared-profit model of contributing production factors as equity

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Promoting agricultural socialized service mechanisms that benefit farmers broadly

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Expanding farmers' diversified channels for entrepreneurship and employment

5. Building a Tiered System of Leading Enterprises Across Four Dimensions

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  Strengthen a group of leading, internationally influential enterprises.

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  Strengthen a group of leading "chain leader" enterprises that drive industry development.

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  Strengthen a group of leading, technology-driven enterprises with independent innovation capabilities.

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  Develop a group of regionally-based leading enterprises that closely link and benefit farmers.

6. Five initiatives to optimize the development environment

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  Increase policy support

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  Innovative Financial Services

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  Strengthen talent development

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  Enhance guidance services

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  Strengthen the promotion and dissemination of exemplary models

Here is the original opinion.

Ministry of Agriculture and Rural Affairs on Promoting Leading Enterprises in Agricultural Industrialization

Opinions on growing bigger and stronger

(Agricultural Development [2021] No. 5)

Leading agricultural enterprises (hereinafter referred to as "leading enterprises") are the driving force behind comprehensively revitalizing rural areas and advancing agricultural and rural modernization. They serve as the backbone for building a complete agricultural industrial chain and establishing a modern rural industrial system, while also playing a crucial role in boosting farmers' employment and incomes. As such, these enterprises hold an irreplaceable and vital position in accelerating the overall revitalization of rural areas. To implement the spirit of the No. 1 Central Document of 2021 and the requirements outlined in the "Guiding Opinions of the State Council on Promoting the Revitalization of Rural Industries," this document proposes the following measures aimed at supporting leading enterprises in fostering innovation, achieving greater growth, and strengthening their market presence.

(1) Guiding Principles. Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will comprehensively implement the spirit of the 19th National Congress of the Communist Party of China and the Second, Third, Fourth, and Fifth Plenary Sessions of the 19th Central Committee. Grounded in the new stage of development, we will embrace new development concepts, integrate into the new development paradigm, and strive to ensure national food security and the effective supply of critical agricultural products. Our key priorities include building a fully integrated agricultural value chain, fostering robust mechanisms that link farmers with agricultural businesses, and promoting seamless integration between smallholder farmers and modern agriculture. Together, these efforts will help establish a modern rural industrial system driven by farmers as the main actors, supported by enterprises, underpinned by cutting-edge technology, and bolstered by financial resources—laying a solid industrial foundation for comprehensively advancing rural revitalization and accelerating the modernization of agriculture and rural areas.

(II) Basic Principles.

——Adhere to market orientation. Leverage the market’s decisive role in resource allocation, respect the leading role of industry leaders and the primary position of farmers, meet consumers’ growing demand for green, safe, and diverse products, and achieve sustainable development. At the same time, enhance the government’s role by refining supporting policies and fostering a more favorable environment for the growth of leading enterprises.

——Embrace innovation-driven development. Align the innovation chain with the industrial chain, significantly boost R&D investments, and attract and nurture top-tier science and technology talent. Establish an innovative mechanism where market needs guide research challenges, and industry and academia collaborate to tackle key technological issues. This approach will accelerate the development of cutting-edge technologies, the creation of advanced equipment, the launch of groundbreaking products, and the adoption of transformative business models—ultimately driving product value-added transformation and propelling industries toward higher-quality, upgraded growth.

——Persist in building a comprehensive, end-to-end system. Leverage the leading role of flagship enterprises as chain leaders, continuously expanding agriculture’s multifaceted functions—including food security, leisure experiences, ecological conservation, and cultural heritage—while extending the industrial chain, optimizing the supply chain, and elevating the value chain. This approach will drive seamless integration across production, processing, marketing, and services, fostering a deep convergence of agriculture, food, culture, tourism, and education, ultimately helping to establish a high-quality, highly efficient modern rural industrial system.

Encourage leading enterprises to adopt digital technologies, integrate information resources across the upstream, midstream, and downstream segments of the industrial chain, and build productive service-sharing platforms such as industry-specific internet platforms. This will drive collaborative development among all players across the value chain, enabling a comprehensive transformation and upgrade of the entire industrial ecosystem. Additionally, guide qualified leading enterprises to establish rural industry digital centers, strengthening the digital transformation of the entire production, processing, distribution, and service chains. By doing so, these centers will help elevate the overall信息化 (information-based) and智能化 (intelligent) capabilities of rural industries. Finally, encourage leading enterprises to leverage blockchain technology to enhance product traceability systems, while also embracing big data and cloud computing to pioneer smart agriculture. Together, these efforts will foster the development of an intelligent, networked agricultural production and business service system—providing robust credit support to financial institutions like banks and insurers as they serve rural industries.

(III) Overall Objectives. By 2025, the ranks of leading enterprises will continue to grow stronger, with their scale and financial strength steadily improving. At the same time, their capabilities in scientific innovation will significantly enhance, while quality and safety standards will see a notable boost. Meanwhile, brand influence will keep expanding, new industries and business models will flourish, and the development of the entire industrial chain will accelerate. This will further elevate industrial clustering, strengthen mechanisms for linking farmers to agricultural growth, and bolster efforts to ensure national food security and stable supplies of critical agricultural products. By the end of 2025, more than 2,000 nationally recognized leading agricultural enterprises and over 500 key national-level agricultural industry consortia will have been cultivated, driving high-quality development of rural industries.

(4) Enhance the innovation and development capabilities of leading enterprises. Leveraging platforms such as the National Agricultural Science and Technology Innovation Alliance, the National Modern Agriculture Industry Science and Technology Innovation Center, the National Modern Agriculture Industry Technology System, and the National Agricultural Product Processing Technology R&D System, we will create a robust platform that integrates and leverages the strengths of government, industry, academia, research, and application. This platform will provide critical technological support for the innovative development of leading enterprises. We will also encourage the establishment of systematic, organized, and mission-driven innovation consortia, with leading enterprises taking the lead, supported by universities and research institutions, while fostering collaborative efforts among all key innovation players. Furthermore, we will empower technology-leading enterprises to spearhead breakthroughs in critical core technologies, enabling them to undertake major national science and technology projects and participate in the construction of cross-sectoral, large-scale, and highly collaborative innovation hubs and platforms. In addition, we will support leading enterprises in partnering with research institutions and equipment manufacturers to jointly tackle common technical challenges and advanced process technologies, thereby enhancing both the technological sophistication and material infrastructure of rural industries. Finally, we will guide seed industry leaders to intensify their efforts in safeguarding and harnessing genetic resources, strengthening their capabilities in developing cutting-edge core technologies for key seed varieties and advancing agricultural biotechnology-based breeding innovations. Together, we will help these enterprises build comprehensive commercial breeding systems capable of cultivating new varieties and superior strains.

(5) Enhance the digital development capabilities of leading enterprises. Encourage leading enterprises to adopt digital technologies, integrate information resources across the upstream, midstream, and downstream segments of the industrial chain, and build productive service-sharing platforms such as industry-specific internet platforms. This will drive collaborative development among all players across the value chain, enabling a comprehensive transformation and upgrade of the entire industrial ecosystem. Additionally, guide qualified leading enterprises to establish rural industry digital centers, strengthening the digital transformation of the entire production, processing, distribution, and service chains. By doing so, these centers will help elevate the overall信息化 (information-based) and智能化 (intelligent) capabilities of rural industries. Finally, encourage leading enterprises to leverage blockchain technology to enhance product traceability systems, while also embracing big data and cloud computing to pioneer smart agriculture. Together, these efforts will foster the development of an intelligent, networked agricultural production and business service system—providing robust credit support to financial institutions like banks and insurers as they serve rural industries.

(6) Enhance the green development capabilities of leading enterprises. Leading flagship enterprises to focus on carbon peak and carbon neutrality goals, encouraging them to research and apply emission-reduction, loss-minimization technologies, as well as energy-saving equipment. These companies will also spearhead demonstration projects in areas such as emission cuts, waste reduction, carbon sequestration, and energy substitution, ultimately creating a series of zero-carbon model initiatives. For county-wide projects promoting the resourceful utilization of livestock and poultry manure, rural biogas programs, and eco-circular agriculture, leading enterprises will serve as key implementation partners, ensuring comprehensive support for large-scale breeding firms in managing their manure waste. Additionally, these enterprises will be guided to strengthen the integrated application of advanced technologies—such as biotechnology and information systems—to drive precision processing, foster deep product development, and enhance the efficient utilization of processing by-products. Finally, leading companies are encouraged to voluntarily participate in agricultural initiatives aimed at reducing emissions and minimizing losses.

(7) Enhance the brand development capabilities of leading enterprises. Guide leading enterprises to leverage local strengths, develop specialized industries, and drive the creation of regional public brands. Encourage these leaders to integrate their niche industries with ecological conservation and cultural heritage, embracing the "craftsman spirit" to build renowned corporate brands. Support leading companies in adhering to high standards and quality benchmarks, fostering comprehensive strategic planning to enhance product value-added and overall profitability, ultimately helping them establish a group of domestically and internationally recognized product brands. Additionally, harness the roles of industry alliances and relevant trade associations by promoting services such as industry standard-setting, technical support, market promotion, and brand training initiatives.

(8) Enhance the integrated development capabilities of leading enterprises. Encourage leading enterprises to leverage their unique strengths, driving cross-sector integration and efficient consolidation of various resource elements. This will help create a comprehensive agricultural industrial chain characterized by distinct features, diverse offerings, and seamless integration across primary, secondary, and tertiary industries. Guide these enterprises to capitalize on local resource advantages, tailoring their strategies to suit regional conditions, and foster the development of innovative rural service sectors, manufacturing industries, and leisure tourism—while connecting production, processing, marketing, and services. By blending agriculture with food, culture, education, and more, they can unlock agriculture's multifaceted potential, boosting value-added opportunities and enhancing overall industry efficiency. Additionally, encourage leading enterprises to strengthen their distribution and integrated service networks, particularly in the suburbs of major and medium-sized cities, where they can advance factory-based, vertical, and horticultural farming models. Promote new business models such as "fresh e-commerce + cold-chain last-mile delivery" and "central kitchens combined with cold-chain ingredient logistics," further bolstering the capacity to ensure a steady supply of fresh, high-quality agricultural products.

(9) Build agricultural industrialization consortia with farmers closely involved. Leverage the leading role of flagship enterprises to drive and guide the agricultural value chain, collaborating closely with farmer cooperatives, family farms, individual farmers, as well as various stakeholders involved in agricultural R&D, storage, transportation, sales, brand distribution, and comprehensive services. Together, these entities will jointly develop superior and distinctive resources, optimize the allocation of innovation-driven elements, and establish a series of key agricultural industrialization consortia at the national, provincial, municipal, and county levels. We will encourage close cooperation among members of these agricultural industrialization consortia, fostering shared access to technology, information, brands, distribution channels, and mutual benefits. This collaborative approach will enhance the efficient utilization of resources and boost productivity, ultimately improving the overall economic efficiency and competitiveness of the industry. Additionally, we will guide these consortia to refine their articles of association, strengthen contractual agreements, and standardize decision-making processes such as those of the board of directors. By doing so, we aim to create more stable, effective, and sustainable mechanisms for aligning interests among all parties, ensuring that farmers can fairly benefit from the added value generated across the entire value chain.

(10) Explore a production-factor equity participation model that allows farmers to share in the benefits. Guide farmers to directly or indirectly invest in leading enterprises by contributing land-use rights, labor, capital, facilities, and other resources. On the basis of safeguarding farmers' fundamental rights and interests, establish a cooperative mechanism characterized by precise assessments, shared risks, and mutual benefits. Explore innovative approaches such as "grant-to-investment" and "grant-to-equity," where assets created from fiscal subsidies are quantified and allocated to smallholder farmers, who can then use these assets as equity stakes in leading enterprises. Additionally, support leading enterprises in financially sponsoring, managing, or establishing farmer cooperatives, while encouraging farmer cooperatives and family farms to acquire equity stakes in these enterprises. Together, this fosters an integrated development model, creating a collaborative community for shared growth and prosperity in the agricultural sector.

(11) Promote agricultural social service mechanisms that benefit farmers broadly. Support leading enterprises in developing agricultural production guidelines and operational standards, adopting organizational models such as "company + farmer" and "company + farmer cooperative + farmer," and providing farmers with comprehensive socialized services—including agricultural input supply, technology integration, training guidance, farm machinery operations, cold-chain logistics, and marketing—thus fostering an organic link between smallholder farmers and modern agriculture. Additionally, leverage the exemplary and driving role of these leading enterprises in advancing the "Three Excellence and One Standard" initiative for agricultural production (focusing on variety improvement, quality enhancement, brand development, and standardized production), guiding the entire agricultural industry chain toward standardized, high-quality output.

(12) Broaden farmers' diverse channels for entrepreneurship and employment opportunities. Focusing on building national strategic scientific and technological capabilities, we will target "bottleneck" technologies or critical短板 areas that currently constrain national food security, the efficient supply of essential agricultural products, and the modernization of agriculture and rural development. By guiding a group of leading agricultural technology enterprises—those with strong integration innovation capabilities, robust industry influence, and exceptional market-expansion prowess—we aim to leverage their unique strengths in meeting market demands, driving integrated innovation, and fostering collaborative platforms. These enterprises will spearhead research into common, key technologies across the agricultural sector, facilitate the commercialization of scientific and technological breakthroughs, support industrial-scale applications, and provide shared resources and services, thereby bolstering their innovative momentum.Moreover, these companies will serve as pivotal "problem setters" in joint research initiatives, enhancing their ability to shape the direction and priorities of technological development, guide R&D strategies and resource allocation, and influence the pricing of critical inputs and innovation factors. By encouraging and incentivizing these industry leaders to increase their own R&D investments, we aim to empower them as the primary drivers of technological innovation—enabling them to take full control over innovation decisions, allocate resources efficiently, organize state-of-the-art research efforts, and accelerate the translation of breakthroughs into practical, market-ready solutions. Ultimately, this approach will position these enterprises at the forefront of innovation, solidifying their role as key players in shaping the future of agricultural science and technology.

(13) Strengthen a group of leading enterprises with global influence. Focusing on "matters of national importance," we will guide a group of large, economically robust, and highly competitive leading enterprises in critical sectors such as grain, cotton, oil, sugar, meat, eggs, dairy, and seed industries. These companies will leverage strategies like mergers and acquisitions, shareholding collaborations, and asset transfers to form sprawling corporate groups, fostering the emergence of industry leaders that will play a pivotal role in steering the modernization of agriculture and rural areas, while ensuring national food security and the stable supply of essential agricultural products. Moreover, these top-tier enterprises will be encouraged to strategically integrate both domestic and international markets and resources, establishing a global presence by investing in key areas of agriculture—such as breeding research and development, processing and transformation, storage and logistics, and port facilities—thus becoming integral players in the global agricultural supply chain. This move will enhance their ability to control production capacity and cutting-edge technologies across vital sectors. Finally, these industry leaders will be supported in capitalizing on their strengths in talent, technology, and innovation, positioning them as trailblazers for the sector’s future direction. By addressing shared challenges and driving forward breakthroughs, they will help cultivate comprehensive advantages that span the entire agricultural value chain.

(14) Strengthen and elevate a group of leading "chain master" enterprises that drive industry development. In the sectors of meat, eggs, dairy, fruits, vegetables, tea, and specialty agricultural products that cater to diverse consumer needs, we will guide a group of leading enterprises—those with long industry chains and significant market influence—to align with industry development trends. These "chain leader" enterprises will play a pivotal role in driving industry clustering and fostering transformative upgrades across the sector. Leveraging local specialties, they will integrate industry resources, establish standardized practices, and create regionally distinctive rural industrial clusters tailored to meet the demands of modern consumption patterns. Additionally, these "chain leader" companies will be supported in consolidating innovation networks, optimizing supply chains, enhancing value chains, and ensuring smooth financial flows. By doing so, they will elevate the overall organizational efficiency of the industry’s entire value chain and modernize its supply infrastructure.

(15) Strengthen a group of leading, technology-driven enterprises with independent innovation capabilities. Focusing on building national strategic scientific and technological capabilities, we will target "bottleneck" technologies or critical短板 areas that currently constrain national food security, the efficient supply of essential agricultural products, and the modernization of agriculture and rural development. By guiding a group of leading agricultural technology enterprises—those with strong integration innovation capabilities, robust industry influence, and exceptional market-expansion prowess—we aim to leverage their unique strengths in meeting market demands, driving integrated innovation, and fostering collaborative platforms. These enterprises will spearhead research into common, key technologies across the agricultural sector, facilitate the commercialization of scientific and technological breakthroughs, support industrial-scale applications, and provide shared resources and services, thereby bolstering their innovative momentum. Moreover, these companies will play a pivotal role as "problem setters" in joint research initiatives, enhancing their ability to shape the direction and priorities of technological development, guide R&D strategies and resource allocation, and influence the pricing of critical inputs and innovation factors. By encouraging and incentivizing these leaders to ramp up their own R&D investments, we seek to empower them as the primary drivers of technological innovation—enabling them to take full control over innovation decisions, allocate resources effectively, organize cutting-edge research efforts, and accelerate the translation of discoveries into practical, market-ready solutions. Ultimately, this approach will elevate these enterprises to the forefront of innovation, solidifying their status as key players in shaping the future of agricultural science and technology.

(Sixteen) Develop a group of regionally-based leading enterprises that closely link and benefit farmers. In grain production zones, critical agricultural product protection areas, regions renowned for specialty agricultural products, and poverty-alleviation areas, we will guide a group of leading enterprises that maintain strong ties with farmers, family farms, farmer cooperatives, and rural collective economic organizations—and demonstrate significant ripple effects in driving rural development. These enterprises will explore innovative models, such as agricultural industrialization alliances, tailored to industry-specific needs and product characteristics, fostering flexible mechanisms, diverse structures, and regionally distinctive approaches to benefit farmers. By leveraging their regional influence, these leading enterprises will play a pivotal role in boosting farmers' incomes, creating wealth, and revitalizing rural economies, ultimately serving as pioneers and role models for the "Ten Thousand Enterprises Revitalize Ten Thousand Villages" initiative. Additionally, they will be encouraged to actively engage in collaborative partnerships with poverty-stricken areas—especially key counties prioritized for national rural revitalization efforts, as well as Tibet and Xinjiang—to ensure a seamless transition from poverty alleviation to sustainable rural development, thereby contributing meaningfully to this critical national agenda.

(17) Increase policy support. Support leading enterprises in participating in the construction of integrated agricultural projects such as industry-leading specialty clusters, modern agricultural industrial parks, and agriculture-focused strong towns. Funding for these projects will be prioritized toward leading enterprises that demonstrate significant benefits in linking farmers and boosting rural incomes. Localities with suitable conditions are encouraged to establish rural industry development funds through market-oriented approaches, further strengthening support for leading enterprises with robust innovation capabilities. Additionally, local governments should provide subsidies, as stipulated by regulations, to leading enterprises that create employment opportunities for脱贫 populations and rural people with disabilities. Strengthen guidance on import/export and investment policies to help leading enterprises navigate international trade and investment rules, enabling them to expand their reach—exporting products, equipment, technologies, standards, and services—thereby enhancing China’s global competitiveness and influence in the agricultural sector. Finally, support leading enterprises in contributing to the development of comprehensive agricultural industry chain standards, fostering a group of agricultural enterprises that set benchmarks for industry standards. In line with the spirit of the "Notice from the Ministry of Natural Resources, the National Development and Reform Commission, and the Ministry of Agriculture and Rural Affairs on Ensuring and Regulating Land Use for the Integrated Development of Rural Primary, Secondary, and Tertiary Industries," further enhance land-use guarantees for leading enterprises as they expand their rural-sector operations.

(18) Innovate financial services. Agricultural and rural departments at all levels should deepen collaboration and exchanges with relevant financial institutions, strengthen the sharing of information resources, and establish a multi-level, coordinated working mechanism. They should intensify financial support for leading enterprises that have demonstrably effective farmer-linking and agricultural-supporting roles, ensuring comprehensive access to high-quality financial services and fostering a collective synergy in boosting these key players. Additionally, they should guide and coordinate various financial institutions to innovate supply-chain credit products, increase the issuance of unsecured loans, and step up financial backing for leading enterprises as well as entities across the entire agricultural value chain. Furthermore, they should explore innovative approaches to expanding the scope of collateral assets and enhancing mechanisms for property rights transfer and circulation.

(19) Strengthen talent development. Support researchers from research institutions, universities, and other organizations to launch technology-based startups at leading enterprises, while refining incentive mechanisms such as intellectual property equity participation and profit-sharing schemes. Additionally, encourage leading enterprises to actively engage in collaborative education initiatives with academic institutions, partnering with agricultural universities and vocational colleges to co-establish hands-on training facilities and "agriculture-and-learning" education hubs. Leveraging production bases and industrial parks, these partnerships will strengthen practical skills training for rural professionals, scaling up efforts to cultivate high-quality farmers, returning entrepreneurs, and key leaders among new types of agricultural business entities. Through specialized training programs, hands-on practice, and knowledge-sharing opportunities, we will further enhance the development framework for rural entrepreneurs and bolster protections for their legitimate rights and interests. Finally, vigorously promote the entrepreneurial spirit and foster a positive public discourse that encourages entrepreneurs to pursue innovation and growth in rural areas.

(20) Enhance guidance services. Continuously improve the business environment, deepen reforms in streamlining administration, delegating power, and providing better services, and foster a clean and positive relationship between government and businesses—ensuring that enterprises receive practical solutions to challenges encountered during industrial development. Establish an entrepreneur think tank, adopt a problem-oriented approach, and maintain open communication channels to gather businesses' feedback and suggestions through diverse online and offline platforms. Additionally, encourage various internet companies and platform-based enterprises to leverage their unique strengths, offering critical support to leading firms—including access to capital, cutting-edge technology, high-caliber talent, marketing channels, and operational management expertise. This will drive innovation in mindset and business concepts, accelerate efforts to address gaps in rural industry development, and inject fresh momentum into agriculture, rural areas, and farmers' growth.

(21) Strengthen the promotion and dissemination of exemplary models. Focus on leading enterprises by highlighting their innovations in development and green growth, their efforts to build mechanisms that connect farmers and drive agricultural advancement, their role in boosting rural employment and incomes, and their contributions to fostering development in poverty-stricken regions. Actively identify and showcase standout approaches and successful practices, organizing a series of targeted media campaigns to cultivate a societal environment that not only pays close attention to rural industries but also actively supports the growth of leading enterprises. Leverage online platforms and new media resources to creatively innovate promotional strategies, launching a variety of engaging outreach initiatives. Additionally, tap into the influential role of industry associations to further enhance the visibility and support for key leading enterprises.