Harvest Holdings has signed up letter of intent with Capital Rice, the biggest rice export merchant in Thailand recently. Right before the contract, strategic distribution as well as cooperation intention with different countries in commodity production and trade has been made and confirmed by Harvest Holdings under the guidance of the Belt and Road policy. The group has registered in the Commerce Department and China Customs, together with the acquisition of business qualification including ‘Registration Certificate of Customs Declaration Agency of People’s Republic of China’ and ‘Food Business Permit’.
The total foreign trade value of China in 2018 reached 30.51trillion RMB with the year-on-year growth of 9.7%. Especially the gross import value which reached 14.09 trillion RMB with the year-on-year growth of 12.9%. As a result, a fast developing tendency appeared and the favorable balance of trade narrowed gradually. Our country will continue to expand proportion of import trade because of the firm insistence on trade liberalization, economic globalization and opening-up policy, together with the internationalization of RMB and realization of the Belt and Road policy. On one hand, the expansion has shown the determination of our country to build a open market economy. On the other hand, the diversified demand of domestic market is vastly enriched by it. The China International Import Expo co-hosted by Commerce Department and Government of Shanghai is the first national expo themed on import. The expo has attracted more than 1000 enterprises from over 58 countries along the Belt and Road, as a result, the expo has become a important foundation of construction of the free market of international trade.
Chairman Zengfeng Lin of Harvest Holdings has been working on international import trade since 2012 including rice, beef, white sugar and frozen food. Large amount of cash flow has been produced by wholesale and scale operation of retail. Therefore, he accumulated rich resources and experience about this field.
The international trade means to carry out commercial intercourse through comparative advantages of different countries. Take beef for an example, the beef output of China will reach 7.86 million tons by 2020, while there are still 5.58 million tons of beefs need to be imported to reach the average consumption level of current world. Being as a short slab in supply of meat, import is still necessary to supplement and balance the demand. The import volume of beef will take over 2/3 of the total export volume of beef worldwide by 2020. The price of beef keeps rising at present and the reason can attribute to the gap of supply and demand when the quantity demanded is increasing but the supply of beef is not enough domestically. By negotiating with government, Harvest Holdings has acquired the quota of beef import and policy support. After that, the group has contracted with Namibia about beef import as well as gained relevant permission and qualification in Commerce Department. We estimated that the enormous demand gap will provide generous profits for the group.
Because of the import quota system that carried out by our country currently, the international resource supply and domestic demand gap is not enough. Therefore, the difficulty of import trade is increased. Harvest Holdings have been occupied with import and export trade for a long period, thus we have channels, resources, reputation and other exclusive advantages together with import quotas. Hence do we have obvious superiority.
In the next moment, the group will expand the effects of two-step strategy internationally and domestically. Harvest International will keep seeking for investment and trade opportunities in countries along the Belt and Road to create predictable and gratifying business achievements for the group.
Introduction of Capital Rice
Founded in 1977 and famous for its high quality products as well as sincere services around the globe, Capital Rice is the biggest rice export merchant in Thailand. The company has modern equipment, professional storage and strict control on production quality to ensure the high efficiency and quality of their products. The headquater of the company lies in Songwat Rd, Samphanthawong District in Bangkok and the import and export trade of rice is the main business.
To expand its business sectors, the company built a large storage warehouse in Prapadaeng District in Samutprakarn Province.
After the completion of the Mahawong warehouse, the capacity of the company increased a lot. As a result, the sales volume of rice no matter internationally or domestically has shown an remarkable increase tendency. The Capital Rice has gained the best export merchant of agricultural products award established by government of Thailand and the rice products of the company have been regarded as the best export products by the government.
Supported by the agricultural department of Thailand, Capital Rice has made the first domestic organic rice development with its partners and acquired certification from the Italian Bioagricert Organization. The Foreign Trade Promotion Department of Thailand has authorized export products of Capital Rice to use the best rice in Thailand label. The products has won the best rice export merchant reward for four years and the annual export volume reaches 1.4 million tons.
The Capital Rice has been awarded the title of best export merchant by the president and the excellent brand in Thailand by the Foreign Trade Promotion Department. Meanwhile, the company also acquired the certification from HACCP.