Network】 【HC 2011, the food industry, the Chinese food industry mergers and acquisitions in addition to size, the will face between enterprises and the restructuring of the upstream industry, in order to seek their own development, food companies profit environment, if you can not complete the transformation, then the only choice is M, or pain management will continue to plague every entrepreneur
recently contacted several food companies, food companies are each face the same pressure - both raw material costs and labor costs rise. Enterprises face tremendous competitive pressure, profit has become minimal. So some companies have chosen a contraction strategy, market and investment in 2011 will be more cautious.
food enterprises to survive tough
food companies care reflects its grim situation in which the industry.
from the current economic environment, commodity prices in 2011 will certainly not guarantee stable prices of agricultural products will continue to rise, partly because the past few years the world has entered a cyclical prone to natural disasters on agriculture is dependent on the weather in the industry, if not good weather, then the supply of agricultural products can not ensure adequate, so the price will naturally rise. This is why countries continue to control the price of vegetables, but vegetables followed up around the back of reason. In addition, the agricultural labor costs, also contributed to the decline in agricultural prices can not cause the price of agricultural products rose, to the food industry is a direct result of rising raw material costs.
Secondly, more and more capital into the agricultural market, disguised pushed the market price of the agricultural products. Therefore, food companies, raw material prices will be irreversible.
to get rid of the confusion of raw materials rising, companies are seeking new models, so more and more enterprises will adopt self-built base model, on the one hand to ensure an adequate supply of raw materials from the market fluctuations, on the other hand reduce the supply of raw materials to reduce the cost of intermediate links. This is why the dairy industry has experienced the crisis of 2008, China began to self-built base in milk prices, or centralized retail management reasons. Thus breaking the company + milk + dairy farmers of the model station, directly into the mode of company + farmers, both the quality control of raw materials, and ensure price stability of raw materials. The food companies face the same change, the future of enterprise + farmers will be fully upgraded model, cost of raw materials continue to rise in the environment, promote rural estate of the future of corporate upgrades, tied tightly to farmers in their own chariot, to complete the raw materials to processing and selling one-stop transition, those who fight around the beat raw materials companies, space will become smaller and smaller, when companies compete directly involved in the raw material side, those suppliers of raw materials, market operators will also be getting smaller and smaller.
difficult and the benefits of food companies is not high, has been troubled by a food business for each major issue, as China's most traditional industry, if Chinese food companies are not making money, is the direct impact the stability of China's real economy. In the current oppressive mode of economic growth, food business operators are becoming increasingly confused and impulsive, many people simply under the guise of food companies, to transfer funds to real estate, to seek greater benefits. This is why Chinese food companies in recent years more and more reasons for the crisis, because we do not concentrate on the food, and everyone wants a way to do real estate. Even the food that is the root seedlings of red food business, they forget the real estate market in the pot of gold digging, which is around the brains of private entrepreneurs involved in the local real estate or real estate to do the best interpretation of the economy. M & A may be a good choice
regulation, once the rapid withdrawal of these companies do not, they will be more funds into the vortex, in the company's cash flow situation is not sufficient if you can not get more money from banks, venture capital companies can not find the intervention, then the business Only select acquisitions in order to continue to ensure survival.
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