In 2018, Inner Mongolia Kerchin Cattle Industry Co., Ltd. (“Kerchin Cattle Industry” for short) is still transforming its business from traditional retail to a more modern sales model. It has successfully moved on from simple offline sales to a new retail concept that combines both online and offline logistics, and has set up a wide-reaching online and offline sales network.
In step with modern development trends, Kerchin Cattle Industry has studied modern retail practices in great depth. “In 2018, we will still be at the front end of the industrial value chain, transforming from the bottom of the chain to the top,” said Li He, Chairman of Kerchin Cattle Industry.
During September 18th-22nd, the China Meat Association (CMA) and the International Meat Society (IMS) jointly held a series of activities in Beijing for the 3rd China International Meat Industry Week 2018 (CIMIW2018). A number of Chinese representative enterprises from the meat industry made their debut at this event. As one of these representative enterprises for the beef industry, Kerchin Cattle Industry exhibited its products in the No.1 exhibition hall, where the majority of meat industry enterprises were concentrated.
A Long Journey for Kerchin Cattle Industry
Kerchin Cattle Industry is located in the famous “hometown of cattle”- Tongliao City, Inner Mongolia, a golden cattle breeding area at latitude 42 degrees – 45 degress North, in the hinterland of the Kerchin Grasslands. Inner Mongolia’s unique natural location and the craftsmanship of the Kerchin people have ensured the outstanding quality of the local beef for generations. Since Kerchin Cattle Industry was founded in 1996, its people have adhered to the concept that the “food industry” is also a “moral industry”, and they have dedicated themselves to doing one thing – producing good beef.
Relying on its outstanding geographical location and climate, Kerchin Cattle Industry has cultivated a unique high-quality grassland cattle population: Kerchin beef cattle and Swiss Simmental cattle as the male parent, and Inner Mongolia cattle as the female parent. Since then, the company has been protecting the unique flavor of its hometown, a secret handed down for thousands of years in the way of modern prairie people.
Kerchin Cattle Industry is slightly different from traditional meat industry enterprises. It uses an industrial value chain that suits its corporate development plans, and combines the processes of planting, breeding, processing and sales into one unit. In this way, the company controls the entire operating model.
Industrial Value Chain, the Lifeline of Kerchin Cattle Industry
Growing our own grass to feed our own cattle – the calling card of modern farming
As the Kerchin region features four distinctive seasons and very changeable weather, free range breeding is subject to a number of factors that cannot be controlled, thus impacting the fatness and overall output of beef cattle. For this, Kerchin Cattle Industry has broken through traditional cattle raising techniques and adopted a new method that combines artificial stocking on grassland + short-term breeding with self-planted nutritive grain feed to shape beautiful muscle lines and a rich taste. In 2013, the company purchased a variety of large agricultural machinery and tools from developed countries in Europe and America. They also selected high-quality forage grasses, and tested various planting methods to grow high-protein forage grass covering an area of more than 5,000 acres, thus taking full advantage of modern cattle breeding technology.
A transparent, standardized and large-scale source of cattle – the calling card of modern breeding
To look for more breakthroughs and innovations, Kerchin Cattle Industry has begun signing cooperation agreements with local farmers, establishing agricultural cooperatives, providing support in the local area on such issues as feed and epidemic prevention, and asking cooperative members to put their own cattle onto its farms for shared fattening. It has gradually devised a win-win strategy for large-scale farming. Up to now, Kerchin Cattle Industry has set up agricultural cooperatives with hundreds of farmers, and founded seven of its own large beef cattle breeding bases in China, thus becoming an industry leader in the supply of live cattle.
Standardized, intelligent and innovative production and processing – the calling card of modern manufacturing
In 2002, Kerchin Cattle Industry was the first to invest heavily in BANSS slaughtering lines from Europe, for the production and processing of cold fresh meat. The company was determined to set up a modern, standardized meat processing factory.
In its early stages of development, Kerchin Cattle Industry focused primarily on the production and processing of raw meat, as well as on exports and supply to industrial customers. With this relatively simple structure, it was difficult to bring significant added value to the enterprise, thus restricting the speed of its development. In order to change this situation, the company set up a deep processing department in 2010. It also made great efforts to enter the quick-frozen processed meats market and develop a series of high value-added products such as steak, beef balls, spiced beef and beef jerky. In addition, it expanded the depth of its product lines, carrying out more detailed classification for different products. In 2012, it invested 120 million Yuan to bring in a Marel intelligent evisceration line from Iceland, leading the industry into a new era of beef processing. In the future, Kerchin Cattle Industry will launch further lines of processed beef and snacks, in order to meet consumer needs and constantly guide the development of the industry.
In order to enhance taste and freshness, Kerchin Cattle Industry has introduced an advanced acid elimination process, which has greatly improved the taste of its beef and made nutrition easier to absorb.
Traceability System, New Reforms
In order to make consumers feel safe when purchasing and eating their products, Kerchin Cattle Industry introduced a traceability system in 2012, when it invested in top-quality international processing equipment. After nearly three years of effort, and in line with recent improvements in both upstream and downstream processes, Kerchin Cattle Industry has established a complete traceability system covering the entire value chain, through breeding, production and sales. This is aimed at helping consumers trace the origin of their products online.
When consumers need to know the source of a product, they only need to “scan” the QR code on the packaging with a mobile phone, and they can then clearly see the origin of the cattle, along with its breed, age, weight, feed used, slaughter date, inspection and quarantine, breeder, veterinarian and other information. This service has completely taken over from previous information transmission models, taken customer service to a new level, and promoted industrial growth and development.
Getting More Determined through Awards and Qualifications
Kerchin Cattle Industry has made remarkable achievements thanks to its innovation, breakthroughs and reforms.
2008 was the first time that Kerchin Cattle Industry stood on the Olympic stage, becoming the beef supplier for the Beijing Olympic Games.
In 2010, 2011, 2012, and 2013, Kerchin Cattle Industry became, respectively, the beef supplier for the Guangzhou Asian Games, the Universiade, the Asian Beach Games, and the Two Sessions of the Chinese Communist Party. In 2015, it was rated as one of the top 10 leading enterprises in the industry. In 2016, it was voted into the IMS.
In 2015, Inner Mongolia Kerchin E-commerce Co., Ltd. won the honor of “China’s Top 50 Agricultural Product Enterprises for Brand Network Reputation”, awarded by Ali Research.
At the beginning of 2017, Kerchin E-commerce Co., Ltd. won the “T-Mall Fresh Food Industry Award for Breakthroughs 2016”, confirming its leading position in the fresh food e-commerce market.
Kerchin Cattle Industry is transforming its business model from raw material processing to modern deep processing of food. Following global trends in catering and consumerism, the company has adopted new technologies, innovated and developed new product lines and launched new products. Its aim is to make food more convenient, trendier, and healthier, and to devise a modern, young consumer model.
Kerchin Cattle Industry has been exploring a new model to drive the industry from within. In this way, it hopes to revitalize the regional economy, benefit common people, strengthen Inner Mongolia’s beef industry, and promote its products nationwide. It aims to help China’s beef cattle go global, enhance the value of China’s catering industry, and enable it to take up a position in the sharing economy. Kerchin Cattle Industry, still a dark horse today, will one day soon become a practitioner of modern agriculture and a pioneer in the beef cattle industry.
Source: Inner Mongolia Kerchin Cattle Industry Co., Ltd.
