The Ministry of Agriculture and Rural Affairs recently issued the "Action Plan for Improving Quality and Efficiency of New Agricultural Business Entities to Drive Income Growth for Smallholder Farmers" (hereinafter referred to as the "Plan"). The Plan aims to enhance the development quality of new agricultural business entities, improve mechanisms linking them with farmers, promote the organic integration of smallholder farmers with modern agricultural development, and strengthen their capacity to increase farmers' income. From a financial perspective, this new Plan clearly establishes a key criterion for evaluating related enterprises: future success will not be measured solely by scale. Market participants must prioritize the principle of "linking with and supporting farmers."
The Plan outlines several core implementation priorities: 1. Improving Entity Development Quality: Encouraging smallholder farmers to develop family farms of appropriate scale and cultivating new entities that are "moderately scaled, standardized, and efficiently operated." 2. Establishing Mechanisms to Safeguard Farmer Benefits: Creating stable benefit linkages through employment, order-based procurement, and profit-sharing arrangements. 3. Technological Empowerment to Promote Standardized Production: Encouraging social service providers to introduce advanced and suitable varieties, technologies, and equipment to smallholder farmers to enhance their production and operational capabilities.
Under this policy framework, agricultural business models that align with these points and achieve a win-win outcome for both corporate profitability and farmer income growth will become the mainstream for industry development. Such models are expected to receive support from policies, resources, projects, and other avenues.
These models should possess the following characteristics: First, a mature farmer cooperation system to ensure standardized partnerships. Second, a comprehensive farmer empowerment system, providing technical training and professional guidance to "teach them how to fish." Third, robust operational capabilities, enabling continuous benefits for farmers throughout industry cycles and fostering a long-term, mutually beneficial cycle.
In the current agricultural farming sector, DEKON AGR's (02419) "No. 2 Family Farm" model aligns closely with the policy framework and key points of the Plan. It serves as a ready-made example that conforms to policy direction and has been validated through long-term practice.
DEKON AGR has spent over a decade exploring a unique path that balances efficiency with social welfare. As early as 2015, the company innovatively proposed the "No. 2 Family Farm" model. Under this model, breeding sows are entrusted to partner farmers who are responsible for the entire process from sow reproduction to piglet weaning. The company provides breeding stock, feed, technical training, and unified sales, which is highly consistent with the policy's advocacy for moderate-scale operations and stable benefit linkages.
To achieve the goal of linking with and supporting farmers, DEKON AGR has established a rigorous empowerment system. In its innovative model, partner farmers typically undergo at least three months of closed training before cooperation, covering barn construction, breeding techniques, and corporate culture. After cooperation, one dedicated technical personnel is assigned per 500 sows, providing on-site guidance at least once a month.
In December 2025, the company invested 50 million yuan to establish a pig farming technical training base in Yibin, which was officially inaugurated. The base, which also invited European experts to teach, can train 300 new farm owners annually. Data shows that over the past decade, DEKON AGR has cumulatively trained 672,800 person-times, with over 210,000 person-times in the last three years alone. It is this investment in "teaching them how to fish" that genuinely equips farmers with independent operational capabilities.
Public data indicates that DEKON AGR's model has allowed farmers to share in the benefits of industrial development. In Yibin's "Hundred Villages, Million" project, DEKON AGR established a five-party cooperation model involving "government coordination, enterprise leadership, farmer participation, bank support, and insurance protection." This single city project is expected to increase local village collective income by approximately 18.12 million yuan.
The key to DEKON AGR's ability to continuously benefit farmers lies in its solid operational fundamentals. In 2025, the company's full cost for commercial pigs was reduced to about 11.9 yuan per kilogram. By year-end, it maintained ample cash on hand and bank credit reserves. This robust foundation allows the company room to provide benefits to farmers even during industry downturns, creating a positive cycle of "corporate efficiency gains, farmer income growth, and more stable cooperation."
This newly issued Plan signifies that policy resources will be more precisely directed toward business entities that demonstrate significant effectiveness in "linking with and supporting farmers," genuinely establish close benefit linkages, and achieve effective income growth for farmers. Innovative models that align with policy advocacy are expected to be replicated and promoted more rapidly, thereby benefiting more farmers and achieving a dual leap in both commercial and social value.