(Yicai Global) Apr. 28 -- Jiangsu Zhongnan Construction Group Co. (Zhongnan Construction) [SHE:000961] has recently set up a joint 'Savory Food' platform with Heilongjiang Beidahuang Agriculture Co. (Beidahuang) [SHA:600598] to forge a block chain agricultural operation.
As the main investor, Zhongnan Construction will hold 80 percent of shares on the platform, while Beidahuang will hold 20 percent, contributing the land-use rights to and the agricultural Big Data of its existing 864,432 hectares of land as its investment.
The platform will set the agricultural Internet of Things (IOT), agricultural Big Data and block chain technology as its foundations, and rely on Beidahuang's large-scale land resources and highly organized management mode as it seeks to establish an autonomous agricultural organization closed from the point of origin to the table through the standardized management mode of 'platform + base + farmer.'
Origin authentication is one of the main application scenarios for block chain technology. At present, its application has been relatively mature in the circulation link of luxury goods, vaccines and other items, but is still quite rare in the agricultural sector.
The IOT and block chain technology are novelties, and their main purpose is to deliver products to consumers through block chain technology, Liu Changyou, chairman of Beidahuang, told Yicai Global.
Among the 16 branches under the listed company, the largest branch has 106,720 hectares of land and the smallest branch has 26,680 hectares of arable land, he said. Infrastructure for agricultural IOT has been in place since 2005, but is still not perfect.
The mature application of block chain technology will greatly benefit traditional agriculture, he noted. "Regardless of where consumers are, they can monitor the growth and transportation of crops by mobile phone in real time, and finally trace back to origin through the QR code. Beidahuang's annual grain output is 7 million tons, and the entire group's total output exceeds 20 million tons, rendering the resulting value-added benefits considerable."