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‑agriculture policies benefit the “three rural issues,” reflecting the state’s commitment to advancing farmers’ interests 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 formerly monopolistic operating status, they nonetheless continue to serve as an important channel for rural distribution. Just as schools and hospitals underwent a period of commercialization only to gradually return to their public‑service mission, the supply and marketing cooperative system is likewise moving further toward public‑interest‑oriented functions. 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 public‑interest channels, placing the people at the heart of policy-making, striving for equal opportunities and shared prosperity, and leveraging policy mechanisms to provide effective guidance.

Chairman Mao highly praised the historical status of the people, shouting, “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 beliefs, 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. It serves 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, these cooperatives naturally safeguard 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—combining the superiority of socialism with 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 employees 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 will undoubtedly 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, we can rely most effectively on organizations that are publicly owned and cooperatively run. Employees throughout the national supply‑and‑marketing system should rise to the occasion, shoulder this important national responsibility, and naturally take on 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 local authorities and relevant agencies 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-raising, 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’d rather 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 don’t know how to handle these materials. Such waste pollutes the environment; bringing it home leaves no space, while dumping it indiscriminately 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 intensified public awareness campaigns and training to enhance farmers’ willingness to participate in recycling. In 2020, leveraging radio and television broadcasts, banners, informational brochures, and new media platforms, they provided detailed guidance on recycling requirements and procedures, encouraging broad public engagement. Second, they have strengthened source‑level management to reduce packaging volumes. By actively promoting green pest‑control practices and professionalized pest‑management services, and by reinforcing scientific guidance and training on pesticide application, they have lowered both overall pesticide use and the generation of packaging waste. Furthermore, by coordinating with pesticide manufacturers, grassroots agricultural extension agencies, and emerging agricultural business entities, they have encouraged the adoption of larger‑volume pesticide containers. Third, they have implemented a multi‑pronged approach to explore environmentally sound treatment of packaging waste. They have introduced simple cleaning stations for pesticide bottles, integrating technologies for precise formulation, cleaning and recycling of packaging waste, and safe disposal of residual liquid. Through processes such as sorting, washing, and pelletizing, these facilities transform packaging waste into products like sewer pipes, septic tanks, and additional pesticide containers, thereby achieving resource‑based utilization of packaging waste.

According to reports, in 2019, Qidong City in Nantong took the lead in implementing a unified system for zero‑margin distribution of pesticides and the centralized collection and treatment of used 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 of concerted action and collaborative advancement. The Bureau of Agriculture and Rural Affairs is responsible for determining pesticide varieties and overseeing market regulation in accordance with pest and disease‑control needs 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‑margin unified pesticide distribution and the centralized collection and treatment of used pesticide 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 simply by reducing pesticide applications on rice 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 recycling discarded pesticide containers, as well as by the cost‑free distribution of pesticides under the zero‑markup policy.

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 the source, the Rudong Supply and Marketing Cooperative has adopted a “single‑line” operating model, 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. Each retail outlet, equipped with a facial‑recognition system, 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 mobilized 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 average price of zero‑markup pesticides is about 35% lower than market prices. Before adopting these pesticides, farmers typically spent roughly RMB 160 per mu annually on crop protection; after switching to zero‑markup products, that cost has been reduced to under RMB 130 per mu. Alongside reducing pesticide use, fertilizer application must also be cut back. While rolling out the zero‑markup pesticide distribution system, agricultural input enterprises within the Yancheng City Supply and Marketing Cooperative network 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 RMB 300. In addition to handling deliveries, the cooperative’s agro‑input companies deploy village‑based information officers to publicize the policy and assist farmers 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 translate into real incomes. The role of the supply and marketing cooperative system is therefore of great significance. Under the new circumstances, the system will shoulder an even heavier and more critical responsibility: facilitating the flow of production inputs to rural areas and bringing agricultural and sideline products into urban markets.

★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 counterfeiting and fraud were exposed, such as adulterated cellophane noodles: what was billed as pure “potato‑starch” noodles from Yuzhou turned out to be made from cheap tapioca. 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 petty incentives, counterfeit and substandard agricultural inputs prey on farmers’ desire for bargains, often leaving them with nothing after a season of hard work. The deceptive marketing of inferior products has caused farmers considerable hardship. Today, the long‑standing rural supply and marketing cooperatives are once again gaining traction 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 enthusiasm and confidence. Becoming a reliable pillar for farmers is the cherished aspiration—and source of great satisfaction—for all market‑oriented actors.

“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 have kept pace with the times by implementing zero‑markup distribution of agricultural chemicals and centralized collection and disposal of used packaging. This is the greatest support for farmers, an integral part of their overall welfare, and a powerful measure to ensure that they 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, a role he held for seven long years. As General Secretary Xi has said, “We must remain steadfast in our commitment, work with our feet firmly on the ground, and strive to paint a magnificent picture of rural revitalization, steadily advancing toward the goal of 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 farmers” 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 and inquires about the harvest; each heartfelt remark and casual conversation reveals his deep concern for agricultural and rural development, as well as his 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 right 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 and source of strength of the Communist Party of China. 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-advancement, 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 a wholly owned subsidiary—China National Supply and Marketing Group Co., Ltd. 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 figure, 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 the modernization of agriculture. By fully upholding legal compliance, integrity, a principle of prudent profit margins, and user‑friendly measures, they are resolutely dismantling outdated, inefficient bureaucratic‑business mindsets, embracing digital technologies and direct‑supply business models, and placing end‑users at the center of their operations. Taking on the role of modern “shop assistants” in commercial services, they break the chain of layered markups, create convenient channels for connecting producers with consumers, and pass on benefits to the people. Guided by science and technology, and in the practical implementation of national policies designed to benefit farmers—particularly in the nascent yet promising initiatives of zero‑markup pesticide sales and the proper disposal of discarded packaging—the national supply and marketing cooperative 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 rural residents.

In today’s era of ever‑increasing material abundance, diversifying business channels aligns with the broader trend toward marketization—this is the general direction. The supply and marketing cooperatives, which emerged in the early stages of socialist construction when material resources were severely scarce, can no longer afford to remain stuck in the simplistic “one‑in, one‑out” model of the past, nor can they linger in the role of mere implementers of government‑mandated rationing systems. The apprehension that “wearing new shoes while treading the old path, bottling old wine in new containers” is not entirely unfounded. After all, as market actors themselves, the new farmers possess an innate ability to select the most suitable partners; they will reject rural grassroots service organizations that sow division and undermine trust or resort to opportunistic shortcuts, instead embracing those who genuinely put farmers’ interests first and address their pressing needs with heartfelt care.

The supply and marketing cooperatives must leverage their distinctive strengths—comprehensive service networks, a well‑established brand reputation, and a steadfast commitment to safeguarding farmers’ interests—to assume a leading role as the national team in serving the new socialist countryside. In terms of reducing farmers’ production costs and ensuring the smooth flow of agricultural products into urban markets, both ordinary farmers and local Party committees and governments place high hopes on the supply and marketing cooperative system: among the many grassroots service providers in rural areas, these 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 between urban and rural areas. By harnessing the power of e‑commerce—especially in the era of widespread smartphone use—and leveraging government‑supported platforms designed to benefit agriculture, it should strengthen its comprehensive capabilities to serve farmers. It must do everything possible to ensure that every subsidized commodity carefully selected for inclusion in the supply and marketing channels reaches 100 percent of villages and communities, streamline logistics during harvest seasons, and even develop its own logistics networks. 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 prosperity.

“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 cooperatives nationwide will continue to deepen market‑oriented reforms, address longstanding shortcomings, and boldly take the lead in serving farmers—shouldering the weighty 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