The supply chain of China's bulk commodity industry should be advanced and modernized
At present, China's "14th Five Year Plan" and the overall macro economy have put forward new requirements and opportunities for the development of bulk commodities. On November 10th, at the "2020 China Modern Supply Chain Innovation and Development Forum for Bulk Commodities" and the "2020 National Conference on Agricultural Commerce Interconnection and Agricultural Product Supply Chain Innovation and Development", Cai Jin, Vice President of China Logistics and Procurement Federation, believed that the "14th Five Year Plan" period not only provided opportunities for the development of China's bulk commodities, but also put forward new requirements for the bulk commodity market and agricultural product industry. During the future "14th Five Year Plan" period, we will truly promote the transformation and upgrading of the commodity sector from large to strong.
Cai Jin introduced that during the "13th Five Year Plan" period, China's GDP grew by an average of 6.7% per year, and China's total social sales of bulk commodities grew by an average of 5.9%. The elasticity coefficient of the two was 0.88. According to this estimate, for each percentage point of GDP growth in the future, China's bulk commodities will increase by 0.8 percentage points. In 2020, China's total sales of bulk commodities will be around 80 trillion yuan, with an annual growth of 0.8 percentage points, or around 6500 billion yuan. During the next "14th Five Year Plan" period, the new volume of commodities will reach 30 trillion to 35 trillion. This increase means that the scale of China's commodities will almost expand by half in the next five years, which is a very broad opportunity.
Cai Jin believes that China's "14th Five Year Plan" has put forward new requirements for the bulk commodity industry and market, including agriculture and agricultural products, namely, "upgrading of the industrial base" and "modernization of the industrial chain supply chain". Therefore, it is necessary to understand these two new requirements from at least the following three aspects: the first aspect is to form basic industrial capabilities. The first is the industrial scale, concentration, and intensification level. The second is industrial layout, including the process of domestic industry layout from east to west and the process of global commodity supply chain restructuring. The third is to form the basic capacity of the industrial chain, not just a single production capacity. The second requirement is to form an advanced industry based on the formation of basic industrial capabilities. One is the upgrading of production organization capabilities. The second is that it must be safer and more stable. The third is to form innovative capabilities. To have their own design capabilities, they must have research and development capabilities. The third requirement is to improve the modernization level of the industrial chain and supply chain. China's "14th Five Year Plan" requires the modernization of the industrial chain supply chain, so it is necessary to complete the formation process of the supply chain production organization as soon as possible, and enter the digitization stage of the bulk commodity supply chain as soon as possible, and further develop the digitization of the digital bulk commodity supply chain on the basis of this stage. (Meng Fanjun)
