A Brief Discussion on the Heat of Supply and Marketing Cooperatives

The resurgence of the supply-and-marketing cooperatives reflects a concentrated re‑examination of the supply‑and‑marketing system that once prevailed in rural areas, when both upstream and downstream goods were scarce. It underscores the public’s nostalgia for the quality of past supplies and their trust in the sincere service provided by those who ran these cooperatives. At the same time, it signals an aspiration for continued reform of rural commodity circulation under current conditions—a return to prioritizing service over profit—while also revealing the public’s disappointment with the purely commercialized nature of today’s rural distribution networks and their skepticism about the quality of products at both ends of the supply chain. This effort represents a top‑down redesign aimed at fostering a robust domestic circulation and ensuring that pro‑people policies benefit agriculture, rural areas, and farmers, thereby reaffirming the state’s commitment to serving the interests of the countryside and delivering tangible benefits to the people.

★The popularity of supply and marketing cooperatives makes perfect sense★

The supply and marketing cooperatives can be said to have been reborn, as the state is now entrusting them with a new historical mission. According to publicly available data, by the end of 2020, the national supply and marketing cooperative system operated 6,697 chain‑distribution enterprises, maintained 10,802 distribution centers, and had developed 832,000 chain and distribution outlets. Through market‑oriented reforms, the supply and marketing cooperative system has established numerous agricultural‑input distribution centers and chain‑store networks across the country.

The supply and marketing cooperatives have remained in continuous operation, consistently benefiting from certain policy support provided by the state. Although they have been stripped of their former monopolistic status, they nonetheless continue to serve as an important channel for rural distribution. Much like the recent trend of schools and hospitals moving toward commercialization only to gradually return to a public‑service orientation, the supply and marketing cooperative system is also steadily shifting back toward its public‑interest mission. In today’s era of diversified ownership and with society divided into ten distinct social strata, it is absolutely unacceptable to allow private capital to expand unchecked, trampling on the rights of ordinary people, even depriving them of their basic choices in consumption—thus giving rise to rampant consumerism, hedonism, and growing polarization.

Why has the supply-and-marketing cooperative system once again won widespread public support? Ultimately, it is because of a people‑centered approach. Over the decade since the 20th National Congress, the principle of fairness and integrity has been firmly upheld, rejecting the rhetoric of allowing a small minority to get rich first. Grounded in innovative thinking, this approach has been implemented through top‑level design and channelled via public‑interest mechanisms, with a steadfast commitment to equal opportunities and shared prosperity, while leveraging policy instruments to provide effective guidance.

Chairman Mao highly praised the historical status of the people, exclaiming, “Long live the people!” Because our country upholds the principle of putting the people first, with the state being a people’s republic and adhering to the socialist path, this embodies confidence in our system, confidence in the people’s faith, and confidence in the strength of the nation.

As a circulation service organization established by the state to organically link the production and daily lives of grassroots residents with all sectors of society, the supply and marketing cooperative system shoulders the functions of supporting agriculture, rural areas, and farmers, as well as providing inclusive services to the general public, serving as an indispensable economic link between the Party, the state, and rural communities.

The postal service reaches the most grassroots level in rural areas, and so do the supply-and-marketing cooperatives; their reach extends to every corner of the country. In remote mountainous regions, border areas, and high-altitude environments, the services provided by these cooperatives are rigorously extended to all communities. As the frontline implementers of the state’s people‑benefiting policies, supply-and-marketing cooperatives naturally uphold national interests and represent the interests of the majority of the Chinese people.

★The supply and marketing cooperatives’ zero‑markup drug sales and subsidies for discarded packaging have won widespread public support★

We are fully confident that, amid the surging trend of supply and marketing cooperatives, these cooperatives—boasting both the superiority of socialism and the time-honored reputation for affordable, high-quality goods and honest, trustworthy service—will shine brightly, and that an increasing number of agro‑input enterprises will choose to partner with them.

For many years, the prices of grain produced by farmers have lagged far behind the rate of inflation, severely dampening their enthusiasm for grain cultivation. To encourage higher yields and incomes, the state has reaffirmed its support for agriculture each year through the “No. 1 Document,” continuously introducing or updating a range of policies to assist farmers. One such measure—having the supply-and-marketing cooperative system implement zero‑markup sales of agricultural chemicals—is a relatively new policy introduced in recent years. Under the leadership of the State Council, the All‑China Federation of Supply and Marketing Cooperatives, together with workers across the national supply‑and‑marketing network, is playing a crucial role in alleviating the burden on farmers. Backed by national policies, the nationwide supply‑and‑marketing cooperative system is sure to earn farmers’ trust and win the favor of agricultural producers. By controlling rural non‑point source pollution at its source, ensuring the quality and safety of agricultural products, supporting the development of beautiful countryside, strengthening harmless treatment, and promoting the resource‑based utilization of pesticide‑packaging waste, this effort can be reliably advanced only through organizations that are publicly owned and cooperatively organized. Employees of the national supply‑and‑marketing system, fully stepping up to their responsibilities, naturally assume the critical task of collecting and recycling discarded packaging, thereby addressing the major challenges of controlling non‑point source pollution and advancing the construction of beautiful villages across the country.

Pesticide packaging must be standardized, biodegradable, and reusable—this is a systemic, root‑cause‑addressing initiative. Yet today, this issue often falls into a regulatory vacuum: it’s not that no one sees it, but rather that a tacit understanding has taken hold from top to bottom, leaving many localities and relevant authorities afflicted with “selective blindness.”

The responsibility for the collection and treatment of pesticide packaging waste was transferred to the Ministry of Agriculture and Rural Affairs relatively recently. To implement the CPC Central Committee and the State Council’s strategic plan for ecological and environmental protection and the concept of green development, a governance approach has been adopted that emphasizes “strengthening public awareness, addressing issues at the source, and leading with pilot projects.”

Why do farmers so casually dump these wastes? First, it’s simply a matter of convenience: rather than collecting and disposing of them properly, they just toss them away for the sake of ease. Second, there’s a herd mentality—since everyone else is doing it, why shouldn’t I? Third, many are simply unsure how to handle them. These wastes pollute the environment; bringing them home leaves no space, while discarding them haphazardly violates local customs and community norms.

Following the promulgation of the Measures for the Recycling and Disposal of Pesticide Packaging Waste, agricultural authorities across the country have taken the following steps: First, they have strengthened outreach and training to raise farmers’ awareness of recycling. In 2020, leveraging radio and television broadcasts, banners, informational brochures, and new media, they provided detailed guidance on recycling requirements and procedures, encouraging public participation. Second, they have reinforced source‑level management to reduce packaging volumes. By actively promoting green pest‑control practices and professionalized pest‑and‑disease management, and by enhancing scientific guidance and training on pesticide use, they have lowered both overall pesticide consumption and the generation of packaging waste. Furthermore, by coordinating with pesticide manufacturers, grassroots agricultural extension agencies, and new types of agricultural operators, they have encouraged the adoption of larger‑volume pesticide packages. Finally, they have implemented a multi‑pronged approach to explore environmentally sound treatment of packaging waste. They have introduced simple cleaning stations for pesticide containers, integrating technologies for precise formulation, cleaning and recycling of packaging waste, and harmless disposal of residual liquid. Through processes such as sorting, washing, and pelletizing, these waste materials are transformed into products like sewer pipes, septic tanks, and pesticide bottles, thereby achieving resource‑based utilization of packaging waste.

According to reports, in 2019, Qidong City in Nantong took the lead in implementing zero‑markup unified distribution and supply of pesticides, as well as centralized collection and treatment of discarded pesticide packaging. The departments of agriculture and rural affairs, finance, and supply and marketing cooperatives are required to strengthen coordination to ensure the effective implementation of these measures, thereby establishing a mechanism for coordinated collaboration and joint progress. The Bureau of Agriculture and Rural Affairs is responsible for determining pesticide varieties and overseeing market regulation in accordance with pest and disease occurrence patterns and pesticide‑use management requirements. The Supply and Marketing Cooperative is tasked with selecting distribution enterprises, approving pesticide products, and organizing their implementation in line with government procurement standards. Meanwhile, the finance department, based on local agricultural production needs, will centrally allocate relevant agricultural support funds, increase financial input, and explore the establishment of a subsidy mechanism to cover the costs of zero‑markup unified distribution of pesticides and the centralized collection and treatment of discarded packaging.

On March 1, 2022, Chen Fuyun, a resident of Group 2, Ruhua Village, Chengzhong Subdistrict, brought nearly 4 kilograms of pesticide bottles and packaging she had collected to the Yang Bin Agricultural Supplies Store. Staff exchanged these for four towels, four bags of laundry detergent, and two basins. At the Liutong Service Point of Rudong Gonghe Agricultural Supplies, Yang Yong was entering the information of large-scale farmer Zhang Fuhua into the facial recognition system. Zhang Fuhua cultivates 400 mu of land, and by using pesticides alone, he can save nearly 5,000 yuan annually. While pesticide retailers now have an additional step of collecting and recycling packaging, their profits have not declined. The service fees for handling waste packaging are covered by subsidies from the county supply and marketing cooperative for the collection of discarded pesticide containers, as well as by the cost‑sharing arrangement for supplying pesticides at zero markup.

In 2022, the Rudong County Government’s livelihood‑related projects, spearheaded by the Rudong County Supply and Marketing Cooperative, aim to ensure the completion, within the year, of zero‑margin distribution of pesticides for 240,000 mu of rice cultivation and the collection of 100 tons of pesticide‑packaging waste. To effectively manage the recycling and disposal of pesticide packaging waste at its source, the Rudong Supply and Marketing Cooperative has adopted a “single‑line” operating model for pesticides, implementing a “six‑unified” approach: unified procurement, unified distribution, unified labeling, unified pricing, unified collection, and unified services. Guided by the principle of “whoever operates, whoever collects,” agricultural input retailers have established collection and processing stations across all towns and districts in the county. Farmers deliver their collected pesticide‑packaging waste to these outlets, where it is compensated at a rate of 10 yuan per kilogram, or exchanged for equivalent agricultural inputs or daily necessities. Through a facial‑recognition system, each retail outlet provides farmers—particularly large-scale growers—with pesticides at zero margin, thereby preventing the diversion of low‑priced products. In addition, sales enterprises receive subsidies equal to 20% of the winning bid price; the county government has allocated 1.5 million yuan in subsidies, while the supply and marketing cooperative has raised or secured an additional 300,000 yuan from higher‑level funding to support this initiative.

This initiative invites young volunteers and village‑level grid workers to visit households, conduct outreach, and distribute the “Letter to All Farmers.” It also involves reaching out to rural primary and secondary schools to hand out informational leaflets, ensuring that knowledge about the proper collection and disposal of used pesticide packaging becomes widely known. By implementing this people‑oriented project, we aim to foster a sense of responsibility among farmers regarding the recycling of pesticide waste, gradually establishing a county‑wide system for the uniform distribution of pesticides at zero markup and the centralized collection and treatment of discarded packaging. The goal is to create model villages free of pesticide waste, thereby effectively improving the rural ecological environment and advancing the integrated development of agricultural production, daily life, and ecological sustainability.

Beginning in 2018, Yancheng City launched a pilot program for the unified distribution and supply of pesticides at zero markup. The Yancheng City Supply and Marketing Cooperative, as the implementing agency, took on the responsibility of delivery. According to surveys, the prices of these zero‑markup pesticides are, on average, about 35% lower than market rates. Before adopting zero‑markup pesticides, farmers spent roughly 160 yuan per mu annually on crop protection; after switching to this system, that cost has been reduced to under 130 yuan per mu. Alongside reducing pesticide use, fertilizer application must also be cut back. While rolling out the zero‑markup pesticide distribution program, agricultural input enterprises within the Yancheng City Supply and Marketing Cooperative system have also assumed responsibility for implementing the government’s soil‑testing‑based, precision‑fertilization policy. Under this policy, for every ton of soil‑tested, formula‑based fertilizer purchased, farmers receive a government subsidy of 300 yuan. The cooperative’s agro‑input companies not only handle delivery but also, through village‑based information officers, educate farmers about the policy and assist them in preparing and submitting application materials for the pilot program. Today, farmers can further return used pesticide packaging to the enterprises and receive an additional subsidy. After collecting these waste materials, the enterprises hand them over to specialized agencies for safe, environmentally sound disposal, thereby minimizing pollution in rural areas.

Supply and marketing cooperatives are well acquainted with farmers’ circumstances, facilitate seamless coordination with banks, and serve as a natural information bridge for agricultural financial services.

The sale of specialty agricultural products is the primary function of supply and marketing cooperatives, addressing the challenges farmers face in marketing their goods and ensuring that abundant harvests do not translate into meager incomes. The role of the supply and marketing cooperative system is therefore of paramount importance. Under the new circumstances, the responsibility of these cooperatives to facilitate the flow of production inputs to rural areas and agricultural and sideline products into urban markets will become even more demanding and critical.

★The supply and marketing cooperatives are fully capable of serving as the main force in implementing agricultural policies★

Farmers cannot afford to suffer; any act that harms their interests must be met with severe punishment. At the 2022 “March 15” Gala, numerous cases of fraud and deception were exposed, such as adulterated cellophane noodles: Yuzhou’s so‑called “pure potato starch” noodles were in fact made from cheap cassava. In South China’s largest hardware market, substandard cables were found to be largely produced by small factories in Jieyang, Guangdong. Meanwhile, the agricultural and rural systems have continuously uncovered a large number of incidents involving counterfeit pesticides, fertilizers, and seeds.

Through small favors and by exploiting farmers’ desire for bargains, counterfeit and substandard agricultural inputs are peddled, often leaving farmers who have toiled all season with nothing to show for their efforts. The deceptive marketing of inferior and fake agricultural products has caused immense hardship for rural producers. Today, the once‑renowned rural supply and marketing cooperatives are regaining their former prominence in the countryside, demonstrating that these institutions can once again assume a leading role in rural distribution, encouraging farmers to place their trust in them with renewed confidence. Becoming a reliable pillar of support for farmers is the cherished aspiration—and source of great satisfaction—for every market‑oriented player.

“I, too, come from the countryside.” There are many instances of people and practices that look down on farmers and undermine their interests, and these must be thoroughly rectified. For a long time, the policies formulated by Party and state leaders have been sound; they must not be distorted at the grassroots level. The state supports the operations of supply-and-marketing cooperatives, which, in keeping with the times, have taken on the responsibilities of providing pesticides at zero markup through unified distribution and handling the centralized collection and disposal of used packaging. This is the greatest support we can offer farmers; it forms part of the overall welfare of all rural residents and is an effective measure to ensure that farmers share in the fruits of social progress.

In the late 1960s, then not yet 16 years old, General Secretary Xi traveled from Beijing to a small village in northern Shaanxi Province to work as a farmer, staying there for seven long years. As he once said, “We must hold fast to our goals and work tirelessly, steadily advancing toward the grand vision of rural revitalization and making steady progress toward common prosperity.” “I, too, come from the countryside,” he often remarks. “Our generation shares this deep attachment—we must do everything we can to help our people, especially our farmers.” Xi Jinping frequently reflects on this period of his life, openly acknowledging the enduring “fondness for the peasantry” that has remained at the heart of his concerns. Over the years, he has crisscrossed the country, from north to south, yet what has never left his mind is the profound affection of a son of the loess land for the soil itself. Whether in the fields or in the courtyards of rural homes, he offers warm words of care, inquires about harvests, and speaks with heartfelt sincerity—each remark infused with deep concern for agricultural and rural development, and with genuine care for the lives of his fellow villagers.

In 1944, Comrade Mao Zedong delivered a speech at the memorial service for martyr Zhang Sidede, succinctly articulating that the fundamental purpose of the Communist Party of China is to serve the people wholeheartedly. “As long as we uphold what is good in the interests of the people and correct what is wrong in their interests, our ranks will surely flourish,” he declared. This statement encapsulates the very foundation of the CPC and the source of its strength. By consistently upholding what is right and rectifying what is wrong in the interests of the people, and by continuously enhancing our capacity for self-purification, self-improvement, self-renewal, and self‑elevation, we can perpetually maintain the Party’s advanced nature and purity, and sustain its vitality and dynamism. Conversely, if we fail to do so, we will alienate the people, incur their resentment, and ultimately be abandoned by them.

★Welcoming Discussions on the Revival of Supply and Marketing Cooperatives★

The supply and marketing cooperatives have long since undergone a remarkable transformation. In 2010, the All‑China Federation of Supply and Marketing Cooperatives established China National Supply and Marketing Group Co., Ltd., a wholly owned enterprise. According to the latest data, in 2021 the national supply and marketing system recorded total sales of 6.26 trillion yuan, up 18.9% year on year. Within this, agricultural product sales reached 2.7591 trillion yuan, while daily necessities sales amounted to 1.4925 trillion yuan. Under the leadership of the All‑China Federation of Supply and Marketing Cooperatives, these organizations remain firmly committed to their cooperative identity—serving the public rather than private capital—and operate independently of personal interests. They conscientiously abide by rural policies and actively contribute to agricultural modernization. By fully upholding legal compliance, integrity, a principle of modest profit margins, and user‑friendly measures, they are resolutely shedding rigid, inefficient bureaucratic‑business mindsets, embracing digital technologies and direct‑supply business models, and placing the end‑user at the center of their operations. Taking on the role of a modern “shop assistant” for commerce, they dismantle layered markups, create convenient channels connecting producers and consumers, and pass on benefits to the people. Guided by science and technology, and in the practical implementation of national policies that benefit agriculture—particularly in the nascent yet promising initiatives of zero‑margin pricing for pesticides and the proper disposal of waste packaging—the national supply and marketing system must continue to play a leading role in supporting agriculture, thereby making even more outstanding contributions to China’s rural modernization and to steadily raising the well‑being of its 500 million farmers.

In today’s world, where material abundance is steadily increasing, diversifying business channels and aligning with market‑oriented principles have become the prevailing trend. The supply and marketing cooperatives, which emerged in the early stages of socialist construction when material shortages were severe, can no longer afford to remain stuck in the simplistic “one‑in, one‑out” model of the past or to confine themselves to the role of mere implementers of government‑mandated rationing systems. The apprehension that “wearing new shoes on an old path, bottling old wine in a new container” is not entirely unfounded. After all, as market actors in their own right, the new farmers possess an innate ability to select the most suitable partners; they will reject rural grassroots service organizations that sow division, undermine trust, or rely on opportunistic shortcuts, and instead rally behind those who genuinely put farmers’ interests first and address their pressing needs with heartfelt dedication.

The supply and marketing cooperatives must leverage their distinctive strengths—comprehensive service networks, a strong brand reputation, and a steadfast commitment to safeguarding farmers’ interests—to assume a leading role as the national backbone of services for the new socialist countryside. In terms of helping farmers reduce production costs and ensuring smooth access for agricultural products into urban markets, both ordinary farmers and local Party committees and governments place high hopes on the cooperative system: among the many grassroots rural service providers, the supply and marketing cooperatives serve as a stabilizing “ballast” and a reliable “regulator.” Within the broader context of the great rejuvenation of the Chinese nation, the supply and marketing cooperative system must, on the one hand, take control of its own destiny, striving for sustainable survival and development; on the other, it must remain true to its original mission of facilitating convenient, affordable, and high‑quality access to goods and services between urban and rural areas. By harnessing the power of modern e‑commerce—fueled by the widespread adoption of smartphones—and leveraging government‑supported platforms designed to benefit agriculture, the system should strengthen its integrated capabilities to serve farmers. It must make every effort to ensure that all carefully selected inputs and supplies entering the cooperative distribution network reach every village and household without fail, streamline logistics during harvest seasons, and even develop its own logistics infrastructure. Furthermore, it should build first‑class wholesale and retail agricultural markets and community service stations, thereby constructing a “bridge of public trust” and a “green channel” for rural development.

“Today, although farmers’ educational levels have risen across the board, the services they need have become far more specialized, and they simply cannot do without us.” This is the proud voice of those in the supply-and-marketing sector. In rural areas, supply-and-marketing cooperatives remain a time-honored brand. We are confident that, following the 20th National Congress, supply-and-marketing systems nationwide will continue to deepen market‑oriented reforms, carry out bold innovations to address longstanding shortcomings, and courageously take the lead in serving farmers—shouldering the heavy trust placed in them by the Party and the government, living up to their mission, and firmly upholding their reputation as trusted allies of farmers across the country.

Source: Agrochemical Network of the World