Revolutionising Sunflower Cultivation

There is a longstanding tradition of sunflower cultivation in Inner Mongolia. Despite lacking the strength, experience, skills, and diligence of his father, who devoted his life to farming, Hao recognised the potential for innovation in his family’s sunflower business.

He identified shortcomings in traditional sunflower varieties’ seeds, observing that their hulls are thicker than average and that they do not have much fragrance after they are roasted. Yields were relatively high, but the drawbacks contributed to limited interest from seed and nut factories, resulting in poor economic returns. Hao, therefore, sourced superior varieties of sunflower seed from renowned companies across China on several e-commerce platforms. He then planted them on trial plots and selected those that proved to be the most suited to large-scale cultivation in the area for further use.

Hao eventually partnered with a Beijing-based seed company that provided some of the seed he used for his trials and introduced a new, higher-quality variety that almost doubled yields. Its seed exhibited uniformity in both size and appearance and had a better fragrance than that of traditional varieties’ seeds, which made it possible for it to sell for over RMB2 per kg higher than what the seed that was being grown before commanded and thus obtain RMB400 to RMB500 of additional revenue per mu. Hao also became a seed agent for multiple companies in Chifeng and even expanded his reach all the way to southwest China’s Guizhou Province, thousands of kilometres away from his hometown.

He also collaborated with a corn seed planter manufacturer from the neighbouring province of Hebei in order to adapt their equipment to sunflower cultivation and move away from manual sowing methods. The innovation slashed labour costs and increased efficiency, revolutionising the farming process in his hometown.

Expanding Market Reach with E-commerce

Traditionally, sunflower seed sales fluctuated based on seasonal demand, peaking from early October to the period leading up to Chinese New Year, which occurs in January or February. During periods of low sales, farmers were forced to sell their produce at lower prices in order to avoid inventory backlogs and minimise losses. Hao utilised social media platforms to broaden his market reach. In early November 2022, a video he uploaded displaying the traditional harvesting method, which involves tapping sunflower heads with a wooden stick to thresh the seeds, went viral, amassing over 27 million views and catapulting his sunflower seeds to nationwide acclaim. Many netizens found the approach to be both nostalgic, as it evoked memories of harvesting sunflower seeds with their families during their childhoods, and novel.

The increased visibility also attracted the attention of sunflower seed companies  across China, who recognised the fact that traditional seed-threshing results in better-quality seed than large-scale mechanical harvesting. Hao received a deluge of inquiries from people interested in buying his seed from 8 a.m. to 6 p.m. the day after the video was posted, and numerous manufacturers signed long-term purchase agreements with farmers participating in the cooperative established by Hao after completing on-site quality inspections of the goods. By the end of 2023, sales contracts covering a total of approximately 200 tonnes of sunflower seed were secured a single social media platform.

E-commerce: A Catalyst for Success

E-commerce platforms, which connect buyers and sellers and reduce the time, energy, and financial resources that they used to expend on this process, played a pivotal role in reducing search costs for Hao. Search costs significantly influence product diversity and distribution channel availability, thereby shaping the interaction between suppliers and consumers. Diverse consumer preferences exist across geographic regions in China’s expansive territory, resulting in a wide array of agricultural products. E-commerce platforms facilitate expanded market reach for companies and empower consumers with access to a broader selection of goods. A critical tool for overcoming communication barriers, the internet results in a substantial number of inquiries being made, facilitates agreements between suppliers and consumers, and leads to large numbers of agricultural products being consumed every day. Businesses also use online platforms to compare the price and quality of various production materials, which enables them to select the most suitable products and channels. Furthermore, businesses leverage e-commerce platforms for promotional events and activities, enhancing product visibility and attracting a broader audience.

Hao’s journey demonstrates how technology can drive innovation and economic empowerment in agricultural communities and exemplifies the transformative potential of e-commerce in rural entrepreneurship.

Source:

AliResearch

Administration and Management Institute (AMI) of China's Ministry of Agriculture and Rural Affairs (MARA)