Issue 2, 2014                Board of Directors Office               January 22, 2014

Making the Most of the Knowledge 

Brainstorming for Daphne's Business Development

                 Experience of Training on Biological Resource Development & Utilization 

Xiong Wenfu 

     
       I was sent by Daphne to Zhejiang University to participate in a Wenshan Prefectural Biological Resource Development & Utilization Training Class organized by the organization department of the prefectural Party Committee. Through the 8-day classroom study and visit to some enterprises, my horizon was widened. It inspired my thoughts. I sensed both the potential for Daphne to achieve development, and Daphne's weakness and gap compared to leading enterprises.
       Through painstaking effort over the past 2 decades, Daphne has developed from a workshop to a leading enterprise in local Panax notoginseng industry, with standardized production premises covering an area of 200 mu (13.33 ha.) and 16 production lines in service now in the extraction, preparation, packaging and foodstuff workshops. The annual output value is £¤10b now. Daphne is owner of the Wenshan Int'l Panax Notoginseng Center and independent Panax notoginseng GAP bases, and boasts a complete Panax notoginseng industry chain. It drives development of the local Panax notoginseng industry. But along with deepening reform of medical system and increasing competition in the pharmaceutical industry, bottleneck to Daphne's development is highlighted, which is represented by lack of S&T and sales talents, poor innovation ability, lagging behind in market development and big exposure to operating risks.
       Through participation in the training class, I recognize that Daphne needs to undergo deep operations reform to get out of the woe. Firstly, Daphne shall determinedly opt for cooperation with the Zhongheng Group Wuzhou Pharmaceutical Co., Ltd, Guangxi, and take advantage of their S&T and sales teams and Daphne's production capacity and independent plantation bases to form a win-win situation. It will be good for Daphne to maintain the leading role and position in the Panax notoginseng industry. Secondly, the Panax notoginseng plantation bases shall be well operated to ensure supply of raw Panax notoginseng at controllable price. Thirdly, effort shall be stepped up in research and development of Panax notoginseng foodstuff and Panax notoginseng functional foodstuff, so that 2 or 3 promising products are reserved to power our future development. And lastly, we shall be determined to build a highly loyal sales team to reduce exposure to operating risks.
       Some suggestions to the government: firstly, task the research and development institutions with crashing of challenges facing the Panax notoginseng industry, such as crop rotation, pest control, and drug and food of same origin. A strong Panax notoginseng industry chain is set to take shape. Secondly,  step up branding of Wenshan Panax notoginseng and try to make Panax notoginseng Wenshan's name card known to people of the whole country and the rest of the world, so that China's Panax notoginseng can always conjure up Wenshan, Yunnan. Thirdly, the government may play a leading role by directing enterprises to achieve normalized plantation of Panax notoginseng, thus to guarantee quality of Panax notoginseng at source, prevent wide price fluctuation, and guide the Panax notoginseng industry to develop healthily. And finally, research and development institutions may play an active role in the Panax notoginseng industry by doing research of group culture of Panax notoginseng seedlings, genetic drought endurance, and resistance to pests, so as to allow for lower plantation costs.
       In brief, healthy development of the Panax notoginseng industry depends on guidance of the government and implementation of the enterprises. The Panax notoginseng industry will boom and become a pillar industry in Wenshan as long as problems such as drug and food of same origin and crop rotation are solved.