The Yunnan Farming Group, once a pioneer in the global plastics industry, successfully navigated both international and domestic markets by integrating rubber industry resources. This strategic move significantly enhanced the competitiveness of its enterprises, transforming the province into a key national producer of natural rubber. With annual output reaching 260,000 tons and an output value exceeding 5 billion yuan, the group has played a crucial role in shaping Yunnan's economic landscape.
Reporter's scene: At Mengding Branch of Yunnan Natural Rubber Co., Ltd., a standard rubber plantation is being managed with precision. Through the integration of rubber resources in Gengma County, the company has expanded its production scale, increasing daily processing capacity from 20 to 40 tons.
Mengding serves as a major rubber plantation and processing base. Since its separation from Mengding Farm in 2004, the branch has consolidated seven rubber production fields, 150,000 mu of private plantations, and secured long-term operating rights for rubber raw materials in Gengma County. Liu Sirong, deputy general manager of the Mengding Branch, noted that these efforts have enabled the company to expand its operations and increase raw material procurement.
In the first half of this year, the company processed 1,761 tons of rubber, a 14% increase compared to the previous year. It also invested 1.7 million yuan to upgrade its production line, nearly doubling its dry rubber processing capacity. As a result, it has become a leading player in the local rubber industry.
To further strengthen the sector, since 2003, Yunnan’s agricultural reclamation initiatives have focused on comprehensive reforms, building new structures, mechanisms, and productivity systems. By establishing a joint-stock company, they integrated rubber resources across the province, overcoming fragmented operations and competitive disorganization. The "going out" strategy has helped expand resource integration and elevate the industry’s scale. Today, the total planting area of natural rubber has reached 1.632 million mu, with production at 130,000 tons and annual sales revenue of 2.6 billion yuan. Profit reached 520 million yuan, according to Li Jun, general manager of Yunnan Land Reclamation Group.
With industrial integration progressing, the group has turned its attention to private rubber plantations, signing cooperation agreements with dozens of private companies in Honghe, Linyi, and Wenshan. By unifying planting standards and pest control methods, they have improved the efficiency of private rubber farms. The average yield per mu increased from 70kg in 2002 to 100kg in 2006, creating what is now known as the “planting rubber exclusion zone†on the Yunnan Plateau. This high-yield base not only leads China but also surpasses top rubber-producing countries like Thailand, Malaysia, and India.
By 2005, Yunnan’s natural rubber plantations accounted for about 40.8% of the country’s total, with production making up around 30% and dry rubber output at 46.8%. Li Min, general manager of Yunnan Natural Rubber Industry Co., Ltd., emphasized the company’s global expansion strategy, aiming to plant rubber in neighboring countries to integrate regional resources. Leveraging its organizational, management, technological, and capital advantages, the group seeks to establish over 500,000 mu of overseas rubber plantations.
Currently, the Yunnan Land Reclamation Group has invested 29 million yuan in Laos, establishing a 688-mu nursery base and adding 14,000 mu of rubber plantations. The Yunnan rubber industry is now expanding toward Southeast Asia and beyond, continuing to write a new chapter in its global journey.
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