Pu'er Digital Agriculture Construction Project

Project Name

普洱市数字农业建设项目

Pu'er Digital Agriculture Construction Project

Project

Industry

Information Industry

Project Site

Pu’er

Project Overview

Relying on Simao National Modern Agricultural Industrial Park, and taking advantage of the basic advantages of Pu'er City in tea, coffee, beef cattle, fruit, rubber and other special agricultural industries, the project can actively promote the digital development of agricultural planting (breeding), the precision of agricultural management and the construction of agricultural sales network through technical means such as block-chain, Internet of Things, and big data. Through the planning and construction of several agricultural demonstration bases, and an agricultural traceability information platform, the project will further the mechanical, automatic and intelligent level of agricultural production in Pu'er.  On the occasion of the digital transformation of agriculture, the project makes full use of this opportunity to promote the construction of a digital marketing platform for agriculture, drive the online sales of unique agricultural products in Pu'er, realize the digital transformation and development of Pu'er's unique modern agriculture, and fully support the creation of the Pu'er Green Food Brand.

Project Construction

Content

Construction Scale: The construction of digital agriculture in Pu'er requires in-depth study of the whole industry chain of production, supply and marketing, building an intelligent agricultural data platform through the user end, using block-chain, big data, Internet of Things, 5G and other technologies to open up all links including "education and training, scientific research and breeding, origin planting, supply chain, sales channels, agricultural services" to enhance the extensive and inefficient agricultural model, and gradually realize the digital transformation of the characteristic modern agriculture with tea and coffee as the core.

Construction Duration: 2 years

Land Area: One core area: Modern Agricultural Industrial Park in Simao District (tea-themed, continuous improvement) Nine digital tea garden demonstration bases: 2,000 mu added by each county. Five digital coffee plantation demonstration bases: more than 500 mu in Simao District, Ning'er County, Menglian County, Ximeng County and Zhenyuan County respectively.

Supporting Conditions

1. Foundation of digital economy:

--New-type infrastructure：In 2020, Pu'er seizes the opportunity window of "new-type infrastructure", plan to build 84 projects covering the three sectors of information infrastructure, converged infrastructure and innovation infrastructure, with a total investment of over RMB 30 billion.

--Smart Cloud: The "Data Lake plus Pu'er Cloud" project will provide cloud-based wisdom for the converged development of traditional agriculture and digital economy.

--5G network: Pu'er is accelerating the deployment and construction of a 5G infrastructure network, which is expected to reach 3,600 5G base stations by 2022, realizing the complete integration of 5G technology and smart agriculture.

2. Foundation of digital agriculture:

The green industry planting area in Pu'er reached 9.47 million mu, with a rural per capita industrial area of 5.3 mu, making Pu'er the only green economy pilot demonstration area in China. Pu'er has built the first scenario-based Pu'er tea quality block-chain traceability platform in Yunnan Province, and achieve data integration and interoperability with mobile platforms on government services, business loan and other sections, forming a closed-loop information management including production, circulation, consumption and other links, to achieve the integrity of production, consumption, and government regulation.

3. Early Preparations:

Pu'er promote the organic development of the tea industry by adopting a unified brand, standard, testing, monitoring, and identification, to ensure each piece of Pu'er tea leaf have their own "identity card" and "resume", realizing traceability, identification, search and trust of every procedure of the tea industry. At present, 12 tea enterprises have passed the organic certification from institutions such as OTRDC, EU, NOP, and JAS, creating a brand of "Simao organic tea" based on unified brand, logo, and standard.

Investment Estimate and Fund Raising

Investment Estimate: RMB 3 billion.

Fund Raising: Bank loans, self-raised by the enterprises, investment attraction, and other ways of financing

Preferential Policies Applicable

Policies on Investment Attraction of Pu'er City (Trial) (PZF[2016] No. 50) proposes:

1) Preferential financial and taxation policies: The income tax rate for enterprises investing in the "four major bases" and "four major new industries" in Pu'er City and those conforming to the Catalog of Encouraged Industries in Western Regions shall be reduced to 15%. If a foreign enterprise invests in the tourism, leisure and health resort industry, special biological industry, highland agriculture, modern forestry, trade and logistics industry, green industry and information technology industry in Pu'er, with an investment scale of more than RMB 100 million, an investment intensity of not less than RMB 3 million per mu of construction land, more than 100 jobs and an annual output value of over RMB 100 million, within five years, it will enjoy financial support according to 20% of the retained portion of the enterprise's annual tax payments to cities and counties (districts).

2) The "One case, one meeting" Principle: For qualified foreign investment projects, in addition to the preferential policies for investment attraction, the "one case, one meeting" principle is also applicable.

Market Prediction (Analysis)

According to the relevant data, the global scale of digital agriculture has exceeded RMB 100 billion, and its sub-sectors are developing at a double speed. Smart agriculture is a specific form of integrated application in digital agriculture. It can reflect the overall development of digital agriculture to a large extent.  From the perspective of development speed, the sectors of smart irrigation, smart greenhouse, and agricultural drones see a faster development; the projected scale in 2020 is USD 4.585 billion, USD 2.215 billion, and USD 1.179 billion respectively; the 5-year CAGRs (compound annual growth rate) have reached 37.60%, 33.28%, and 32.66% respectively.

Profit Model and Preliminary Benefit Analysis

Upon completion, the project is expected to achieve an annual main business income of about RMB 600 million through digital technology services and the expected payback period is about 5 years.

Risk Analysis

Due to different technical conditions, some projects may have technical risks, so technological innovation mechanisms, talent training mechanisms and market stability mechanisms should be developed to avoid unnecessary risks in a timely manner.

Cooperation Pattern

Sole proprietorship, joint venture, cooperation, stock equity, etc.

Contact Information

Contact Authority: Fourth Section of Industry, Investment Promotion Bureau of Pu'er City

Tel.: 0879-2144404