China Organic Agriculture is an agricultural products enterprise whose flagship product, “ErMaPao” – a type of organic, green rice – is one of the most popular brands in China. China Organic Agriculture is one of the largest producers of this variety of rice in China, and has agreements with a number of suppliers (including both wholesalers and retailers) to distribute its award-winning rice. These suppliers include: Xinmiao Grain Depot, Wukeshu Grain Depot, Beijing Hualian Hypermarket and Nanjing Suguo Supermarket chains, Huaxing Foods and Qinghai Grain & Oil Company, and retail companies like Songyuan Grain & Oil Company, Tongda Grain & Oil Company, and Shunda Grain & Oil Company.
Unlike its other, more rural competitors, China Organic Agriculture manages all aspects of rice production. Beginning with the seeds, and following through with distribution via its extensive sales network in major Chinese cities, the company also engages in research and development, which contribute significantly to providing better strains of its organic rice. The end result is a high-quality, award-winning rice that has established considerable brand loyalty among China’s growing affluent sector.
Rice processing occurs in a proprietary, environmentally friendly, 20,000 square meter facility where the grain – grown on 6,260 acres and watered from the Nen River (one of the last unpolluted rivers in China) – receives the kind of handling that has won the title of “Consumer Recognized Famous Brand in the Chinese Market” from the China Association for Quality Inspection, an award quickly followed by the 2006 designation of “Famous Brand Product” at the sixth-annual China Changchun International Agriculture and Food Fair.
Currently, China Organic Agriculture commands a 7.1-percent share of the green rice market and a 3.6-percent share of the organic rice market in China, with a total combined output of 88,600 tons. This business model – organic rice grown in China exclusively for Chinese consumption – meets the parameters to compete in the $13 billion Chinese market for organic or “green” food, and further protects the company from speculation in the rice market, which has seen price spikes of nearly 50 percent in the last year alone. To maintain its position, the company has initiated a number of marketing strategies that appear to leave it well protected from market speculation.
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