Development status and prospect of citrus industry in Danling County

Development status and prospect of citrus industry in Danling County

_Yan Danyu

Danling County, Meishan City, Sichuan Province, is a famous late-ripening citrus production base in mainland China. Since the cultivation of navel oranges in the early 1970s and the introduction of late-ripening citrus varieties in the 1990s, the citrus industry has been vigorously developed throughout the county. In recent years, with the efforts of governments at all levels and various types of enterprises, the county has vigorously promoted "No. 38", "No. 38", at the same time, the citrus industry itself is also seeking innovative development, through the research and development of new varieties, the creation of new business entities, increased capital investment, the introduction of policy support, efforts to create "Danling Orange" brand, and vigorously promote the "Danling Do not know the fire" and "Danling Daya Citrus" and other measures, Danling citrus has won a certain market, promoted the development of the citrus industry.

1 The development status of the citrus industry

1.1 The agricultural characteristic industry has begun to take shape, and the number of farmers participating in the planting of the citrus industry is large. Danling County's rural characteristic industries are mainly citrus and other fruits, in 2019, the planting area of citrus alone reached 160,000 mu, achieving an output value of 2.66 billion yuan, and the county vigorously developed high-quality citrus such as "Danling does not know the fire" and "Danling orange", and won the reputation of "the hometown of China's oranges". Through field surveys, about 70% of the farmers grow citrus in the county, and the group of farmers involved in citrus cultivation is very large, which lays the labor base for the further development of the citrus industry.

1.2 The added value brought about by the development of the citrus industry is increasing. CCTV has introduced Danling citrus many times, further expanding the popularity of Danling County, thus setting off a wave of "Danling Tour". In 2020, the county will achieve a total tourism revenue of 2.8 billion yuan and receive 2.9 million tourists. While developing tourism, farmers in the local Meiwan Village have opened farms and sold their own fruits such as citrus, which has also promoted the increase in farmers' incomes.

1.3 The new citrus planting mode gradually replaces the traditional citrus planting mode. First of all, in the management of citrus, there are special technicians to guide, improve the quality of citrus. Secondly, the large use of agricultural machinery and equipment not only reduces the physical burden of farmers, but also makes citrus cultivation more scientific. In addition, with the help of the Internet, the online sale of citrus has set off a "boom", and farmers' incomes have further increased. In addition, the technical staff of the agricultural materials company helps growers solve common problems in the planting process through the combination of online teaching and offline practice, which is in strong contrast with the past sales model of "only selling and not teaching".

2 Porter's Five Forces Model Analysis of the Citrus Industry

2.1 Bargaining Power of Suppliers. Danling County's mountainous areas, hilly areas, dam areas account for one-third each, farmers plant citrus land is relatively scattered, the formation of the main body of planting and operation mainly based on "households" as a unit, in the sale of most of them wait for foreign buyers to buy, in this trading mechanism, often appear "oversupply", so that citrus producers in the transaction bargaining in the absolute disadvantage. In addition, the degree of organization of citrus professional cooperatives is low, and it is difficult to form a scale effect, which also leads to the low bargaining power of fruit farmers. In the post-pandemic era, the sporadic emergence of outbreaks will further restrict and affect the sale of citrus and further weaken the bargaining power of suppliers.

2.2 Bargaining Power of the Buyer. Most of the buyers of Danling citrus are out-of-town traders, and locals do not consume much because they or their relatives and friends grow citrus to a greater or lesser extent. As a bridge connecting consumers and buyers, foreign vendors have a great impact on the price trend of the citrus market because of their large demand and strong control over the market. In recent years, with the continuous development and growth of the citrus industry in the province, there has gradually been a surplus of citrus markets, so that traders have more choices, further enhancing the bargaining power of buyers.

2.3 Threats from New Entrants. On the one hand, because citrus has higher economic benefits, the planting threshold is low, it can produce benefits in a short period of time, on the other hand, in recent years, with the increasing improvement of living standards, people's consumption of fruits is increasing, and the demand for citrus is also increasing year by year, so that most parts of the country have begun to plant different kinds of citrus, north to Shaanxi, south to Hainan, west to Tibet Lhasa, east to Shanghai, are planting citrus. In 2019, Guangxi's citrus planting area reached 8.3 million mu, citrus production exceeded 10 million tons, of which the "sugar orange" based on the excellent fruit is usually listed in December, similar to the danling Ehime orange market time, to a certain extent, impacted the sales of Ehime orange, seized part of the Danling citrus market.

2.4 Threats of Substitutes. There is a substitution effect between citrus fruits and fruits such as apples and bananas, and citrus is not tolerant to storage, and consumer demand for citrus may decline, resulting in a great market threat to danling citrus. In addition, with the increasing improvement of people's living standards, people's consumption of some high-end and imported fruits is also increasing, such as durian, mangosteen and other fruits, which are loved by consumers because of their good taste and rich in nutrients, and also impact the market of Danling citrus to a certain extent.

2.5 Threats from Peer Competitors. As the world's largest citrus grower, the more famous citrus varieties in the mainland are: Guangxi sugar orange, Wenzhou mandarin orange, Gannan navel orange and so on. In terms of output, Danling citrus production ranks in the forefront of the province, but compared with other fruit brands with better development and good efficiency, it also lacks a unified quality measurement system and effective regulatory measures, and its brand influence is relatively weak and its market share is low. In addition, in Pujiang County, Dongpo District, Hongya County, and Qingshen County around Danling County, because of their geographical environment and natural resources, they have a high degree of similarity with Danling County, so these areas are also a huge threat to the development of danling citrus industry.

3 Development outlook

3.1 Enhance farmers' own literacy and ability, and enhance brand awareness. Regular training for farmers, through the publicity of "three products and one standard" certification knowledge, publicity of the "taste in Meishan Danling specialties" strategic basic ideas, publicity of "Danling orange" brand building, publicity of rural revitalization related information, cultivate basic professional knowledge, so that farmers form a sense of "ownership", good management of their own citrus, is to create a good Danling citrus industry business card. In addition, regular selection activities are held, such as the "Fruit King" selection competition, planting demonstration garden selection activities, etc., through typical guidance, while learning while doing, so that farmers have a sense of participation and practicality, do a good job in the development of the citrus industry, and promote the implementation of the rural revitalization strategy.

3.2 Promote large-scale operation in multiple ways and promote farmers' income. In the face of the problem that the scale of rural industrial production is not large, on the one hand, farmers are encouraged to circulate their idle land, and appropriate subsidies are given to farmers who circulate land. On the other hand, through leading enterprises, we should promote the implementation of specialized planting in the region, and do not engage in "small but complete" agricultural industrial operations. Through the specialized management of the region and the adaptation of local conditions, it can not only reduce the difficulty of management of farmers, but also increase the income of farmers.

3.3 Enhance the leading role of leading enterprises and extend the industrial chain. We should learn from the development model of "Dan Orange Modern Orchard Co., Ltd.", actively build municipal, provincial and national leading enterprises in the whole county, and through market-oriented, lengthen the industrial chain of enterprises, realize the integration of "supply, production and marketing", let local farmers participate in it, and create more value, such as: using citrus to make citrus wine, dried citrus, citrus vegetables, etc., forming a production mode of "relying on leading enterprises to drive and lead + farmer production".

3.4 Strengthen investment in scientific and technological innovation and create a smart citrus industry. The first is to continue to form strategic cooperation with scientific research institutions and universities such as the Provincial Academy of Agricultural Sciences and Sichuan Agricultural University, establish more "expert compounds", develop better, better and more market-oriented citrus varieties, and attract more knowledge-based talents to invest in the construction and development of the local citrus industry. The second is to build high-standard digital farmland, use Internet technology to manage and trace citrus throughout the process, and make the citrus production process transparent. The third is to strengthen the investment of funds, the sub-region to establish more intelligent cold storage in each town to store increasing output of citrus, to create a new citrus industry development model of "production (digitalization) - picking (digitalization) - cold storage (digitalization) - market (digitalization) - consumer".