On June 23, a symposium on supply chain finance for the goji berry industry was held in Zhongning county of the Ningxia Hui autonomous region.
At the meeting, representatives from enterprises in the goji berry industry, growers and banks voiced their suggestions on the loan cooperation model for the industry.
He Weilong, a member of the standing committee of the CPC Zhongning county committee and deputy head of Zhongning county, the Ningxia Hui autonomous region, makes a statement at the meeting. [Photo provided to seeningxia.com]
"The supply chain loan is a powerful tool of financial institutional support for agriculture and financial measures for poverty alleviation. Goji berry production has a great financial demand. However, the production and processing cycle is short but complex. A long-time loan is a burden on the enterprises. Goji industry supply chain loan model for planting enterprises not only brings considerable income but also reduces the post-production process and costs, which shortens the payback cycle. It will promote the deep-processing goji berry products to the high-end market, and further enhance the value of Ningxia goji," said He Weilong, a member of the standing committee of the CPC Zhongning county committee and deputy head of Zhongning county, the Ningxia Hui autonomous region.
Pan Yanming, chairman of Ningxia Zhongning Goji Industry Group Co., Ltd., makes a statement at the meeting. [Photo provided to seeningxia.com]
Pan Yanming, chairman of Ningxia Zhongning Goji Industry Group Co., Ltd., said, the goji industry supply chain finance model is actually warehouse financing. It is a kind of inventory mortgage financing, taking the enterprise inventory warehouse receipt as the mortgage through the tripartite agreement among the bank, storage company and enterprise. This cooperation model overcomes the processing enterprises' difficulty in financing loans due to the lack of bank-approved pledges, and relieves the worries of bank loans without pledges and loans without repayment ability at maturity, achieving win-win cooperation among the three parties.
Zhang Lifeng, vice-president of the Ningxia Zhongning Qingyin Rural Bank, introduces the loan issuance of the supply chain finance mode at the meeting. [Photo provided to seeningxia.com]
Zhang Lifeng, vice-president of the Ningxia Zhongning Qingyin Rural Bank, said Ningxia Zhongning Goji Industry Group Co., Ltd., Qingyin Rural Bank, and Red Power Goji carried out the pilot on goji industry supply chain loan cooperation mode on June 18. Qingyin Rural Bank has issued the first 4-million-yuan loan ($625,000), and the cooperation mode has been implemented.
Hu Dongmei / China Daily Ningxia bureau
Photo by Xue Rui