Hello! I'm your financial analysis assistant. This article from "Beiji Laboratory" tells a story about "nostalgia," but beneath the emotional surface, it reveals a very sophisticated set of transnational agricultural supply chain logic and insights into consumer behavior in emerging markets.
To help you understand this easily, I've broken down the news into five key aspects, explained in plain language: Why are Chinese people growing vegetables in deserts and foreign countries? What's the business strategy behind it?
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Summary of Key Points: The Evolution of Globalization from "Selling Goods" to "Selling a Lifestyle"
The article discusses the stories of three Chinese entrepreneurs (Li Xuewei, Yang Liang, and Fan Jijun) who are engaged in agriculture in Egypt, Saudi Arabia, and Japan, respectively. They are not traditional farmers but bring Chinese technology, seeds, and management expertise to areas with scarce resources or untapped markets, establishing localized vegetable supply chains through self-reliance and innovation.
The core logic is:
1. Pain points drive action: Local vegetable varieties are limited, prices are high, and quality is poor (for example, vegetables in Saudi Arabia are wilted, and those in Japan are expensive and scarce).
2. Technology transfer: Chinese entrepreneurs not only provide seeds but also the skills for growing vegetables (soil improvement, greenhouse temperature control, pest and disease management) and the systems for producing and distributing them (just-in-time production, cold chain logistics).
3. Market penetration: Initially, they target overseas Chinese communities with specific needs, gradually expanding to mainstream local supermarkets and restaurants.
This marks a shift in Chinese corporate globalization from simply exporting goods to exporting production methods and shaping consumer habits.
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Detailed Explanation of the Five Aspects
1. Market Pain Points: Why Grow Vegetables in Foreign Lands?
- Current Situation:
- Japan: Very limited variety of vegetables, sold by the bag (e.g., 200 grams per bag at a high price, like 30 yuan per 500 grams of cowpeas).
- Saudi Arabia: Even fewer vegetable varieties, and due to a lack of cold chain, up to 50% of vegetables are lost during transportation, making imported Chinese vegetables extremely expensive (e.g., asparagus at 86 yuan per 500 grams).
- Egypt: In the desert, there's a lack of infrastructure for high-end tourism, so tourists can't access fresh vegetables.
- Opportunities:
- Overseas Chinese demand: Expats have a strong craving for home-cooked flavors. Being able to eat fresh vegetables in a foreign country provides emotional comfort and meets basic needs.
- Local Market Gap: Although local supermarkets have Chinese food, it's expensive and scarce. Localized production could significantly reduce logistics and loss costs, offering affordable and fresh products.
- In Plain Language: It's like when you find Chinese condiments expensive and hard to find abroad, and you decide to make your own pickles. When your pickles are good enough and in demand, you go from self-sufficiency to becoming a small business owner.
2. Costs and Resources: The Hard Work of Building Infrastructure in Unfertile Land
- Land is Not the Problem; Transformation Is: Land in Japan is expensive but fertile; the main cost is labor. Rural areas in Japan lack workers, and they are less efficient and unwilling to work overtime. Chinese workers are willing to work longer and are more skilled, giving China a competitive advantage.
- Saudi Arabia/Egypt: Land is cheap (even free), but the soil is poor (yellow soil in Saudi Arabia, saline-alkali desert in Egypt).
- Technology Transfer as a Barrier:
- Soil Improvement: Li Xuewei spent three years in Egypt using deep well irrigation, alfalfa for nitrogen fixation, and fermented animal manure to turn the sand into fertile soil. Yang Liang used chicken manure in Saudi Arabia to improve the soil's quality.
- Climate Adaptation:
- Cooling: Greenhouses in the desert are used to cool down, not to retain heat. They use shading, water curtains, and fans to keep the temperature 8-10 degrees lower than the outside.
- Disaster Prevention: Planting avoids peak heat periods and uses fish-vegetable symbiotic systems to prevent pests (Yang Liang lost over 100,000 yuan due to pests).
- In Plain Language: It's like building a house in the desert. You need more than just plans (seeds); you also need a solid foundation (soil improvement), air conditioning (temperature control), and protection against pests (firewalls). These are barriers that ordinary farmers can't overcome, making it difficult for newcomers to replicate.
3. Supply Chain Revolution: From Selling by Weight to Producing on Demand
- Traditional Issues:
- Imported Vegetables: Long-distance transportation leads to high losses and prices, and the vegetables are not fresh.
- Local Production: Limited technology, poor quality, and few varieties.
- Chinese Innovation:
- Just-in-Time Production: Yang Liang's farm produces 7 tons of vegetables daily, all on pre-orders, eliminating inventory risks and achieving zero inventory.
- Cold Chain: From field to table, everything is kept cold. Local production takes hours, compared to months for imported vegetables, ensuring freshness.
- Digital Operations: Fan Jijun developed a shopping app in Japan where orders are delivered the next day. This goes beyond selling vegetables; it creates a community-based purchasing platform.
- In Plain Language: In the past, wholesalers stocked excess vegetables that went bad. Now, products are delivered on demand, like ordering food delivery. This reduces risks and improves efficiency, applying internet thinking to traditional agriculture.
4. Business Evolution: From Serving Overseas Chinese to Winning Over Locals
- First Stage: Nurturing the Community (Serving Overseas Chinese): Initial customers were Chinese expats and Chinese-owned companies, providing a stable market with consistent tastes.
- Second Stage: Cultural Influence (Changing Local Habits):
- Japan: Japanese people started trying spicy peppers and other Chinese dishes as Sichuan cuisine and hot pot became popular. Fan Jijun's farm became a tourist attraction offering picking, mahjong, and Chinese cuisine.
- Saudi Arabia: Saudis began to recognize the health benefits of vegetables (e.g., eating vegetable hearts). Young Saudis are learning Chinese and watching TikTok to learn how to cook Chinese food, increasing demand for Chinese ingredients.
- Egypt: Li Xuewei taught Egyptian chefs Chinese cuisine. Although they can't distinguish between soy sauce and dark soy sauce, tourists enjoy the food, and word-of-mouth spread.
- In Plain Language: It's like when Starbucks first entered China, people thought coffee was bitter; now, it's part of daily life. Chinese vegetables are going through the same process, expanding from being exclusive to foreigners to becoming a global trend. Once locals accept them, sales are no longer limited to the Chinese community but depend on the country's overall consumption.
5. Macro Significance: Globalization on Our Plates and China's Soft Power
- More Than Just Business: This is also about cultural exchange. Vegetables are a carrier of culture. When Saudis and Japanese start eating Chinese dishes, they are adopting Chinese lifestyles and dietary philosophies (light, diverse, healthy).
- Geopolitical Role: Improving relations between China and Saudi Arabia, with more Chinese companies entering the market, makes Chinese vegetables a symbol of cultural exchange.
- **In Egypt, Chinese farmers have moved from conflict (paying protection fees) to cooperation, reflecting the formation of economic communities.
- Personal Struggles and National Development: Li Xuewei, Yang Liang, and Fan Jijun represent a new generation of Chinese entrepreneurs who are not just trading but are rooted locally, solving local problems (lack of vegetables, technology, jobs) and creating value.
- Yang Liang's Poem: "Using borrowed sea to practice tides in the yellow sand" symbolizes China's ability to grow, adapt, and change in unfamiliar environments.
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Insights for Everyone
1. See the Invisible Globalization: We often focus on technology, cars, and high-speed trains going global, but agriculture and food exports are equally significant. They impact daily life and gradually change the world.
2. Technology + Management = Core Competitiveness: Growing vegetables may seem simple, but abroad, it requires advanced technology and effective management. Those who can overcome challenges can make a profit.
3. Consumer Habits Can Be Changed: Don't underestimate the power of market education. Good products (fresh, affordable, tasty) can break down cultural barriers and create new demand.
4. Going Global Is About Integration: Successful companies integrate with local communities (hiring locals, promoting tourism, improving diets), ensuring long-term success.
In Summary:
These three Chinese entrepreneurs are not just growing vegetables in deserts and foreign countries; they are also sowing the seeds of Chinese supply chain efficiency, agricultural technology, and Chinese food culture. These seeds are taking root and will become a green bridge connecting China to the world.