What are the prospects for the development of green organic agriculture? What issues should you pay attention to when investing?

What are the prospects for the development of green organic agriculture? What issues should you pay attention to when investing? The development prospects of green organic agriculture are not bad. The standards for organic food are very strict. Take agriculture as an example. The standards for growing organic food first require that the base be kept away from urban areas, industrial and mining areas, traffic arteries, industrial pollution sources and domestic garbage dumps. Within the basic range required at the beginning of this period, the market threshold for organic cultivation has increased significantly. Just imagine, a base far away from urban areas and major transportation lines inherently creates great difficulties in recruiting and retaining employees, as well as future sales and circulation. The organic planting base must complete the soil transformation period. Some say 2-3 years, some say 5 years. According to international practice, it should be 5 years. What is the soil transformation period?

To put it simply, the base’s planting land will not produce for 5 years, and there will be no income or net investment within 5 years. As crops are rotated into the fields each year, soil organic matter content continues to increase. During this period, organic fertilizers should be applied in large quantities and chemical fertilizers, pesticides and insecticides should never be used. After 5 years, according to the total investment of a base with a planting area of ??500 acres, labor, land rental costs, infrastructure costs, management costs, water and electricity costs, and capital occupation costs will be huge investment and consumption.

Just imagine, after 5 years, if the base meets the organic standards and successfully obtains certification, how much amortization will be incurred on the commodity price? Can a group of consumers who have been infected by the pseudo-logic of good price and good quality for many years accept such amortization? How much effort do you have to put into making your target audience truly understand the ins and outs of organic food? There is a story in this industry that happened in Shandong. It seems that around 2000, a Japanese company transferred a piece of land in Shandong to produce organic food for export to Japan.

The local government is happy to introduce such projects. After the Japanese company entered the fence, the fence came together, the machine entered, the gate was closed, and there was no reply. One year has passed, and nothing has been pulled out from the base, only various fertilizers. Two years have passed, and it is still the same. Three years... four years... During this process, the local government is very anxious and constantly responsible for Japan. When communicating with people, he always said in an orderly manner: Our project is going well... However, locals kept telling the government that the Japanese company's base was very strange. Whatever they planted, they didn't harvest it after it grew, it went straight back into the ground. In addition, there were so many bugs in the base that several people's fields nearby were affected. It wasn't until the base dug a similar physical barrier around the trench that the bugs gradually disappeared.