A staff member picks grapes in Nanmazhuang Village of Xinhe County in north China's Hebei Province, Sept. 23, 2021. Xinhe County boosts rural vitalization by developing distinctive agricultural products, improving living environment and elevating governance capability.Photo:Xinhua

A-share stocks related to so-called “supply and marketing cooperatives” rose recently, following strong momentum linked to media reports stating that Central China’s Hubei Province is reconstructing 1,373 such cooperatives. 

Experts and industry insiders noted that supply and marketing cooperatives play a significant role in promoting rural vitalization, as cooperatives are now empowered by government’s support combined with rapid development of e-commerce. 

Share price of Guangdong Tianhe Agricultural Means of Production Co, a holding enterprise subordinate to Guangdong Federation of Supply and Marketing Cooperatives, edged up 3.72 percent on Thursday’s closing, while the share price ofShandong Swan Cotton Industrial Machinery Stock Co, a listed company owned by Shandong Supply and Marketing Cooperatives closed at the daily 10 percent rise ceiling, according to data from the Wind. 

A national-level supply and marketing cooperative was initially set up in July 1950, which helped unify the management of the country's supply and marketing enterprises, and the organization was later renamed to the All-China Federation of Supply and Marketing Cooperatives (ACFSMC) in July 1954.

The ACFSMC formed a national sales network to meet the demand of farmers while helping promoting rural produce, connecting urban and rural areas, and communicating with the government. 

According to a report by the Hubei Daily on October 17, the restoration and reconstruction of local supply and marketing cooperatives have achieved phased results, with the number of community members reaching 452,000, while the number of farmers has grown by more than five times in five years, from 51,500 in 2016 to 333,000 in 2021. 

China’s supply and marketing cooperatives have a top-down organizational system, with rich industrial resources in agricultural production and nearly 400,000 integrated service outlets scattered all round the country, Hong Tao, director of the Institute of Business Economics at the Beijing Technology and Business University, told the Global Times on Thursday. 

Hong said that the system covers both the supply and demand sides, aiming to create an intelligent supply chain system through a national network. 

The major business for supply and marketing cooperatives include circulation of agricultural products and rural production materials, daily consumer goods and reproduction resources.

Hong noted that supply and marketing cooperatives have been promoting the construction of modern agriculture, enriching farmers’ income and integrating urban and rural development, while playing an indispensable role in the process of achieving rural vitalization. 

The current operation of supply and marketing cooperatives have integrated with various channels in synergy with online and offline stores, which benefits local people, the Beijing Business Today reported, adding that supply and marketing cooperatives have started e-commerce. 

China's supply and marketing cooperatives reported steady sales growth in the first half of 2022, with their total sales climbing by 19.1 percent to reach 2.94 trillion yuan ($400 billion), the Xinhua News Agency reported in July, citing data from ACFSMC.

Moving forward, supply and marketing cooperatives have the great potential in developing rural logistics, finance and e-commerce, according to a report from Minsheng Securities, which can help accelerate the construction of a modern rural logistics system aided by e-commerce. 

Global Times