Prepared by Jan Hinrichs, Natural Resources Economist, EAER 15 June 2017

National Research Council of the Philippines nd WorkshopScientific on Knowledge Conference Intensive Agriculture and 82 General GansuMembership Internet Assembly-plus Socialized Agricultural Service

PresentationSystem byDevelopment Name Here Project 11 March 2015

The views expressed in this presentation are the views of the author/s and do not necessarily reflect the views or policies of the Asian Development Bank, or its Board of Governors, or the governments they represent. ADB does not guarantee the accuracy of the data included in this presentation and accepts no responsibility for any consequence of their use. The countries listed in this presentation do not imply any view on ADB's part as to sovereignty or independent status or necessarily conform to ADB's terminology. INTERNET PLUS AGRICULTURE PROJECT • $240 million project cost, – $150 ADB loan to Farmer Supply and Marketing Cooperative Association • Develop inclusive agricultural service systems through implementation with farmer cooperatives GANSU INTERNET PLUS AGRICULTURE PROJECT • Application of network connected sensors and tracing technology along the value chain from production to marketing • Precise application of inputs (water, fertilizers, pesticides) • Product tracing • Enhance market access through a two-way information exchange system between producers and consumers; • Provide consumers with product origin and process information • Provide produces with market information and production support services AGRICULTURAL SERVICE INDUSTRY CHAIN

agricultural production cold chain logistics of marketing service system of and operation agricultural products special agricultural products before during after service for farmer production production production consumption & life service

agricultural land agricultural agricultural product agricultural machinery product transfer processing life service and trust service circulation storage cold farmland chain of rural IOT agricultural e- products commerce emerging agricultural recycling services material renewable service resources

Rural Rural financial services cooperative finance service Supply chain finance

supply chain system of agricultural inputs OUTPUT 1: COMPREHENSIVE INFORMATION SERVICE AND MANAGEMENT PLATFORM • Develop data and training centers with information platforms to process date generated at production and processing for e-commerce marketing purpose release and push policy information collect and to targeted audience process the project-related Be able to big data, cloud conduct long- calculation and distance visual Information monitoring IOT platform PROJECT AREA IN GANSU PROVINCE – DATA AND TRAINING CENTERS

Jiuquan

Lanzhou

Based on six major featured agricultural industries of Gansu, three regional farmer-training centers in , , Tianshui OUTPUT 2: AGRICULTURAL PROCESSING, STORAGE, AND MARKETING MODERNIZED

• Build logistic and distribution system for agricultural inputs and outputs (warehouses, (cold) storage, market facilities) • Design integrated information exchange network for enhanced market access and coordination, quality assurance and reduced transaction costs at different stages of value chain PROJECT AREA IN GANSU PROVINCE - INTELLIGENT COLD CHAIN AND WAREHOUSE INVESTMENTS

Jiuquan Dunhang

Focusing on establishing intelligent and freshkeeping storage featuring constant temperature(0.2 million tons) in cities like Tianshui , Jiuquan ,Zhangye, Pinliang, Tianshui etc, and establishing cold chain and transportation facilities, also setting up cold chain logistics system of agricultural side-products which can interact with each other through both online and offline . OUTPUT 3: AGRICULTURAL PRODUCTION MODERNIZED

• Establish agricultural production bases for summer vegetables, potatoes, fruits, etc. • High value production systems will be equipped with internet of things applications for increased production efficiency and coordination. PROJECT AREA IN GANSU PROVINCE – PRODUCTION BASES

Hexi Corridor base of Plateau Summer vegetables

Hedong base of superior fruits

Longzhong base of potatos and medical herbs HIGH-LEVEL TECHNOLOGY - AGRICULTURAL SERVICES

Transforming and upgrading the traditional agriculture includes the following technologies:

Network connected sensors (Internet of Things) to control & monitor soil moisture, fertilizer & Production pesticide application & yield quantity and quality Extension support -> Exchange collected data between farmers Sensors to track quantity and quality of Processing harvested products in agricultural storage and and subsequent processing stages Logistics

Internet-based marketing of agricultural products Building e-commerce platforms and brands Marketing Network-based customer interface -> traceability IMPLEMENTATION – FARMERS’ SUPPLY AND MARKETING COOPERATIVE ASSOCIATION OF GANSU PROVINCE organization1 service2 scale3 brand advantage advantage advantage advantage Deeply Complete The total asset is In 2015, the total organization 13.57 billion RMB sale value was rooted in rural system with 1,168 Yuan with owner 46.07 billion Yuan areas for a long enterprises, 151 equity being 4.1 with the profit time, has a leading billion Yuan. It owns reaching 185 strong enterprises, 14 1,123 ha. and 2.837 foundation for city-level million m2 of million Yuan, the cooperatives, 83 operation facilities annual profit agricultural county-level and warehouse. increase rate service, enjoys cooperatives, 683 being over 18%. a good village-level reputation and cooperatives, 2,228 wins trust from farmer farmers. cooperatives and 5,629 rural comprehensive service cooperatives IMPLEMENTATION - COOPERATIVE SYSTEM

Land Trusteeship • China Cooperative System has managed 43.877 million acres’ land in trust, built 4,294 agricultural service centers covering 28 provinces (cities or autonomous regions). • Service content has updated from a single link to serial services including agricultural materials supply, formula fertilization, agricultural machinery and purchase and storage processing. Service models have evolved to the integrated development of the first, second and third industries from trust-based cultivation, planting and management.

Construction of Agricultural Internet of Things • Complete the construction of 5 systems, including the quality tracking platform of agricultural materials, operating management system for agricultural enterprises, remote monitoring system for stores, the intelligent control system over the delivery of agricultural means of production and the diagnosis system of diseases and pests. • Complete the industrial part and data center of Internet of Agricultural Means of Production. • We realized that the agricultural products can be recognized, the status can be recorded, information can be checked and status can be tracked. E-commerce of Agricultural Products • The total sales amount of the e-commerce of Supply and Marketing Cooperatives reach 486.73 billon RMB, a year-on-year growth of 60.4%, accounting for over 15% made by the whole system. • The China Cooperative system has updated the 70,000 basic operating service networks to village e-commerce service stations, which facilitates the effective connection between the off-line resources and the on-line internet. AGRICULTURAL E-COMMERCE MARKET POTENTIAL

Sales of Agricultural A map of special agricultural products on taobao.com Rice Products on Ali Platforms Pork products Black fungus during 2010-2015(Unit: Apple Lilium brownii Ginseng; RMB100 million yuan) Beef products Black fungus; Pilose antler Wolfberry Cheese Sea cucumber; Squid; Raw mutton 696 Beef products Jujube Raisin Walnut ~ $10.2 billion Milk; Flowers; Honey Milk; Rice; Peanut oil e-commerce Jujube Jujube; Chinese chestnut Millet 483 Sea cucumber; Apple; Cherry sales in 2015 Wolfberry Hairy crab; Green plants; Cordyceps sinensis Jujube Jujube; Pork products Walnut Chinese Raisin yam Macadamia nut; Pine nut; Pecan Cordyceps sinensis Duck meat 284 Beef Beef products Steak; Milk; Flowers Herbal tea Jujube Kiwi Pine nut; Macadamia nut; Orange 195 Areca Green tea Camellia Fish oil Duck meat 110 Oolong; Black tea; Dried longan 76 Pu'er tea Pseudo-ginseng Overseas: Honey; Dendrobium Propolis; Korean ginseng 2010年 2011年 2012年 2013年 2014年 2015年 Mango; Oolong; Pu'er tea; Chili; Beef products Passion fruit; Cubilose Pu'er tea; Coffee bean Green tea; Flowers; Dried Health-enhancing Mango; Cubilose; Beef bean curds herbal tea Dried coconut; Oolong Herbal tea Pollen