"When the predecessors of international agricultural and food giant Cargill came to China 50 years ago, they probably did not expect to achieve such a large scale and achievements in China today." A few days ago, Robert Aspell, president of Cargill's Asia Pacific region, said in an interview with Nanfang Daily that China has become one of Cargill's most important markets in the world, and is also regarded as an important growth pole and innovation highland for future development.
This year marks the 50th anniversary of Cargill's entry into China, where it currently has more than 10,000 employees and 50 operating locations. In August last year, Cargill opened its Agricultural Supply Chain Asia Pacific headquarters in Shanghai, and some of the management functions in the Asia Pacific region of the business segment were transferred from Singapore to China. The move means cargill will continue to invest in the Chinese market.
"More and more local Chinese talent is taking on global management positions"
Nanfang Daily: Before and after China's accession to the WTO, how did Cargill change in China's business structure, investment, etc.?
Ambota: This year marks the 20th anniversary of China's accession to the WTO and the 50th year of Cargill's entry into China. Cargill began with China 50 years ago, building its first feed factory in Taiwan in 1971. This reflects Cargill's strategic height and shows that we attach great importance to the long-term development and planning in China. China's accession to the WTO in 2001 sent a signal that China was more integrated into the global economy. For multinational enterprises, they are more confident to participate in the development of China's economy and more confident to increase investment in China.
Before China's accession to the WTO, Cargill's investment in China was relatively small, and most of the headquarters or regional headquarters managed China's business remotely. After joining the WTO, Cargill not only injected more capital into the Chinese market, but also localized and upgraded china's business management, using China's local resources and local talents to manage local business.
Nanfang Daily: In the past 20 years, what are the changes in China's business environment that you have felt most deeply?
Ambota: At present, China's policy guidance on foreign investment is very clear, and foreign investors are also very clear about which sectors they should invest in. The biggest challenge cargill currently encounters in China is not the external business environment, but how to improve the flexibility of the company itself.
The Chinese market is very diverse and fast-changing. For many foreign companies, what needs to be improved in the Chinese market is how to improve flexibility and sensitivity. Local Chinese companies are more flexible and sensitive than we are. Many multinational companies in China are still headquarters-centric in management, and it is relatively difficult for them to make adjustments in time once there is a change in the Chinese market.
Judging from the current situation, the global economic center of gravity has shifted, and Asia has become more important. Multinationals are likely to fall behind if they do not change the way they operate and manage.
Nanfang Daily: In Cargill's global layout, where is the Chinese market?
Ambota: Over the past 20 years, China has not only been an accelerator of economic growth in Asia, but also an important force driving global economic growth. It is precisely because of this trend that when we formulated the "2030 Development Strategy" for agricultural supply chains two or three years ago, we made the Asia-Pacific region a priority, and China was the top priority. Cargill Agricultural Supply Chain Asia Pacific headquarters has moved from Singapore to Shanghai, and Cargill Agricultural Supply Chain is our largest business segment.
From the perspective of talents, there are many talents Chinese, and we attach great importance to cultivating Chinese talents. Moving the Headquarters of Agricultural Supply Chain Asia Pacific to Shanghai, in addition to business needs, we also want to attract more high-end chinese management talents. Now, in the Cargill system, more and more local Chinese talents are taking on management positions in the Asia-Pacific region and even globally.
"Understanding Global Market Trends Through the Chinese Market"
Nanfang Daily: From the perspective of global industrial supply chain, what role has China played?
Ambota: From the perspective of the global agricultural supply chain, China is one of the largest and strongest players. China is a big agricultural country and its own production capacity is very strong. China is also a big consumer, and every year it needs to import and import batch agricultural products from countries and regions such as Europe, the United States, South America and even Russia from all over the world, and at the same time, some products are exported overseas.
As a leader in the agriculture and food industry, we need to look at the Chinese market to understand global market trends, including price changes. The Chinese market is very important for the changes in the supply and demand of global agricultural products, such as Zhengzhou and Dalian Commodity Exchange, which are very important global agricultural commodity trading platforms.
Nanfang Daily: How can Cargill promote China's better participation in global agricultural trade?
Ambota: Cargill Agriculture's main role in the global industrial chain is to balance global agricultural products from both the supply and demand sides and participate in coordinated global supply. China is a big producer of cereals, but it also needs to import some categories, because now Chinese consumers have diverse needs. Our layout in the global industrial chain can meet Chinese consumers from multiple dimensions, one is to meet their requirements for timely supply in time, the second is to meet the demand for quantity and variety, and the third is to meet the pursuit of quality.
Some products in China are also exported to Japan, South Korea and so on through us. For example, cargill Songyuan plant has nearly 15% of its products every year, including maltose, maltodextrin and modified starch, which are exported to Southeast Asia and other regions. Our food ingredients business and protein business also have some products produced in China and then exported abroad.
In the past decade, the pace of agricultural modernization in China has accelerated, and many of our customers have become leaders in China's modern agricultural industry. We are very willing to serve and promote the progress of local customers, support them, and help them produce products that meet the needs of Chinese or global consumers.
"The Guangdong-Hong Kong-Macao Greater Bay Area will become the engine leading China's economic development"
Nanfang Daily: Cargill has made many innovations in China in recent years, can these innovations also be replicated and promoted to overseas markets?
Ambota: In the past decade or so, China has made great progress in the manufacturing field. Needless to say, from a global perspective, China is a huge production base. At the same time, I am also seeing a transformation of Chinese manufacturing. 20 years ago, China had a demographic dividend and Chinese manufacturing had a cost advantage, but now China is gradually changing from a big producer to a production power, and this transformation is driven by technological innovation, which not only benefits China, but also benefits the global industrial chain.
For example, Cargill is in the vegetable oil business, which is mainly used to fry food. To make fried foods healthier, our China team worked with the Chinese team of an international brand to develop a vegetable oil low in saturated fatty acids. This product has been very successful in the Chinese market, and we and our customers have planned to promote it to other countries and regions.
We recently invested in a Chinese feed innovation company that boosts the immune system and digestion of poultry, and we hope to expand its technology globally. Cargill hopes to bring more "China innovation" to the global market.
Nanfang Daily: In the construction of the Guangdong-Hong Kong-Macao Greater Bay Area, what opportunities will multinational companies usher in?
Ambota: The Guangdong-Hong Kong-Macao Greater Bay Area is a very important development area. To some extent, Guangdong is the province with the most investment from Cargill. Up to now, we have 5 factories in Guangdong, and the first oilseed processing plant we established after China's accession to the WTO was in Guangdong. In my view, the Guangdong-Hong Kong-Macao Greater Bay Area will become the engine leading China's next phase of economic development.
In terms of industrial layout, we must not only look at the local basic manufacturing industry, but also consider similar areas with higher added value such as innovation, and the Greater Bay Area has a lot in common with our future development plan. It is hoped that riding on the east wind of the economic development of the Greater Bay Area, Cargill's development in China can reach another new climax.
Nanfang Daily: In the Guangdong-Hong Kong-Macao Greater Bay Area, which has a strong atmosphere of innovation, what innovations are Cargill doing?
Ambota: We have just ventured into the field of bio-industry and established the first bio-industrial production line in Yangjiang, Guangdong Province, mainly producing insulation fluid based on vegetable oil and used as a transformer. At present, although the output of the plant is small, it will bring great value to the development of the industry. This product, called FR3 Natural Ester, replaces petroleum-based transformer insulating oil and is sustainable and in line with future trends in carbon reduction.
[Reporter] Ou Zhikui
【Design】Ding Weiwei
【Intern】 Wang Yishu
【Author】 Ou Zhikui; Ding Weiwei
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Source: South+ - Create more value