In a recent interview with China News Service, Liu Yonghao, the chairman of New Hope Group, shared his insights on the profound changes taking place in the agricultural sector, often perceived as straightforward. “Behind what seems like simple farming—raising pigs, chickens, and ducks—lies a new production capability that is deeply integrating and transforming the industry,” he stated.
After 42 years of navigating various economic cycles, Liu noted that “significant changes are indeed happening,” a sentiment that resonates strongly with New Hope Group, a leading player in the industry. During the interview, he reflected on the evolution of traditional industries and the growth of China’s private economy over the past four decades. A recurring theme in Liu’s entrepreneurial journey is the commitment to “long-term resilience.”
New Hope Group, founded in 1982, started with traditional poultry and pig farming before entering the feed industry and later expanding into food production. Today, the company stands as a formidable force in agriculture and is ranked among China’s top 500 companies and the Fortune Global 500 for 2024.
Despite their size and success, Liu emphasized the necessity of continuous adaptation in response to shifting market dynamics. “The transformation of old to new energy is particularly evident in agriculture,” he explained. “Companies must evolve in terms of development, technology, management, and systems to align with new realities and meet emerging demands.”
He highlighted the shift from merely scaling production—where the mantra was to invest more, build more factories, and hire more employees—to a focus on quality and safety. “Previously, we produced whatever we could sell. Today, the challenge is to produce safer, higher-quality, and more distinctive products that meet consumer demands.”
New Hope has undertaken several initiatives reflecting this shift, such as launching a “grain-saving initiative” in feed production, striving to reduce grain consumption by 1% annually. They have also made advancements in breeding, launched digital transformation pilots in pig farming, and improved cold chain logistics to deliver “fresh milk in 24 hours” nationwide.
Liu shared that these initiatives, while seemingly routine, are essential components of the traditional industry’s upgrade in the face of a new landscape.
When discussing New Hope’s international journey, Liu reminisced about the company’s early forays into overseas markets 25 years ago. Back then, Chinese products were often equated with inferior quality. In 1999, when New Hope opened its first overseas factory in Vietnam, Liu recalled, “Our products were virtually unwanted, and the local farmers would only pay a third of the price for them compared to other countries’ feeds.”
Fueled by a sense of unfairness, Liu resolved to elevate the quality of Chinese products. Fast forward two decades, and many of his products now rank among the top in various countries, including Egypt and Myanmar, where they hold leading positions in sales and recognition. “This success is not just about New Hope; it’s about enhancing the value of Chinese manufacturing on a global stage.”
Reflecting on his journey, Liu emphasized the formidable power of time and the need for a long-term vision. In an August article titled “Believing in the Power of Time,” he expressed the invaluable lessons learned over his 73 years. His steadfast belief in enduring principles reflects a broader context of private enterprise development in China post-reform.
Liu is committed to giving back to society, advocating for economic responsibility among entrepreneurs. His foray into philanthropy traces back to the early days of reform, when he observed children scavenging for coal to support their families. This realization sparked his dedication to corporate social responsibility, especially in the context of poverty alleviation initiatives initiated by the government in the 1990s.
In a collective effort with other business leaders, Liu helped launch the “Shining Project,” which aimed to alleviate poverty by relocating businesses to underdeveloped areas for job creation, tax revenue generation, and uplifting local economies. Three decades later, following significant progress in poverty alleviation in China, Liu and his peers are now advocating for rural revitalization as part of a new initiative that emphasizes supporting businesses to aid rural communities.
Reflecting on the transformation of the private sector, Liu pointed out how much has changed since 1993 when private enterprises had revenues of merely 30 billion yuan. Today, the private sector contributes over 50% of tax revenue, 60% of GDP, 70% of technological innovations, 80% of urban employment, and 90% of all businesses in China. “This is a monumental shift,” he affirmed, attributing it to the nation’s reform policies and the entrepreneurial spirit of the Chinese people.