Pollution-Free from Seed to Feed

By CHAO RAN

Packaging the products.

Kwok Ho, President of Chaoda Modern Agriculture (Holdings) Ltd.

Chaoda uses scientific planting methods.

Founded in 1997, Chaoda Modern Agriculture (Holdings) Ltd is an integrated modern agriculture enterprise engaged in the production and marketing of high quality organic vegetables and fruits. In August last year, Chaoda was listed as one of the top 500 famous and valuable Chinese brands for 2005. In the same year, the company was also ranked 177th in terms of the overall strength of large Chinese enterprises.

President and Chairman of the Board Mr. Kwok Ho began his career in a military enterprise when he was just 14 years of age. In his early 20s he ventured to Guangzhou, where he entered the electronics components and parts and home appliances business, earning more than RMB 10 million in the early 1980s. Then, in the 1990s, he brought his considerable business acumen and capital to the research and development of agricultural science, and thus Chaoda, with its pollution-free fruits and vegetables, was born.

Intensive Farming Management

From Holland’s greenhouses to Israel’s drip irrigation systems, many modern agricultural development projects use advanced technologies with intensive farming practices. Meanwhile, China has found it difficult to intensify its farming methods, as its farmlands have been distributed to individual farmers under the “family contracted responsibility system.”

But it seems Chaoda has come up with a local solution. When the company set up its development base in Fuzhou, Fujian Province, it started to rent farmlands from the farmers, linking them into an intensive farming system. Seeing the success of its modern and efficient farming methods in Fujian, Chaoda followed a similar strategy when it set up farms in other parts of the country. With local governments acting as an intermediary, the company rents land use rights from the farmers and carries out large scale planting. And the farmers are pretty happy with the deal. Not only do they get paid rent for the use of their land, Chaoda also pays them a separate salary for working it.

After spending years in the field, Chaoda has perfected modern planting techniques for a huge range of organic vegetables and fruits in different regions, climates and soils. But the company has recently been using science and technology to standardize its planting mode with high quality seeds and organic fertilizers.

Technical experts from the group’s research institute directly supervise planting and cultivation, and all of its products undergo strict quality control tests before they are shipped to the market. All quality control procedures from planting and harvesting to sales are logged, making Chaoda the first agricultural enterprise in China with a complete agricultural product quality and safety tracing system.

Moreover, the company has taken advantage of China’s rapid infrastructure construction to establish a smooth logistics system and an international multi-tier sales network to ensure its fresh fruits and vegetables can reach markets across the world. It has 40 fruit and vegetable planting bases in 17 provinces and municipalities across the country, which can guarantee a steady supply of products all year round.

When Chaoda started out, its main product was the tomato. Now the company produces more than 2,000 varieties of fruit and vegetable, including its self-developed and imported strains. Unlike old Chinese agricultural enterprises, which focused just on planting, Chaoda has leaned on an intensive and innovative production model to achieve wider product lines, more abundant harvests, and thus, greater profits.

Technologies– Key to Chaoda’s Development

A seed is one of the most powerful and tenacious materials in the world. As Kwok Ho says, “A seed has the capability to change the entire world. And our core technologies are the ‘seeds’ of our success. We will never neglect them.” That’s understandable – Chaoda’s “seeds” have after all ensured that its production model passed the ISO 9001 and ISO 14000 standards, and helped it to become the first mainland agricultural enterprise to be listed in Hong Kong in December 2000.

It is Chaoda’s expert use of science and technology that has enabled the company to develop this organic mode of cultivation. Its products are pollution-free from the moment the seeds are planted in the earth to the time the vegetables arrive at the dinner table. It has developed more than 200 kinds of fruit, vegetables, rice, tea and other products that meet international standards. Chaoda Modern Agriculture (Holdings) Ltd aims to grow into a modern agriculture model for both China and the world at large.

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