Business Module The Projected Operational Model of CHRI
Business Module
CHRI has been focusing on developing the business of DAR. While closely working with Chengdu University of Traditional Chinese Medicine, CHRI has established an operation pattern of “company + production basement + Sichuan DAR association + local peasants + research organization”. In this pattern, CHRI can involve in the whole procedure from DAR production to deep processing, therefore, the quality of DAR is strictly standardized according to the GAP requirement.
A. Company: Suining Yinfa DAR Industrial Co., Ltd. is located in Suining, Sichuan province. Suining is the main origin of DAR, its output accounts for 70% of total national’s. With such prime advantage, the company moves forward to deep processing of DAR so to create DAR industry groups.
B. Production basement: Sichuan province is famously called home of Traditional Chinese Medicines not only because it has more than 4,500 kinds of Chinese Medicines but also its unique natural environment and predominant technology. Up to now, the company has 11,000 mu DAR field and has built a GAP research basement of 2,000 mu , planting field of 11,000 mu. All of these conditions promise that the seeds from the company are GAP qualified.
C. Sichuan DAR association: the company assisted in the founding of Sichuan DAR association. The association strengthens the relation between the company and the local peasants because with its help, the standards can be more easily passed down to the peasants and later executed by the peasants. Through the association, the company signs long term buying contracts with peasants and at a price higher 10% of the average.
D. Local peasants: In order to update the traditional planting mode, Yin Fa has developed its own system to train local peasants. It hires experts, professors to give lessons, distributes books and DAR No. 1 seeds freely. Each year when the planting and harvest season come, the company sends its technology team to give directions, makes sure all the procedures follow GAP standard.
E. Research organization: the company researches and develops DAR serial products together with Chengdu University of Traditional Chinese Medicine, in the meanwhile, it has made agreements with different parties such as Sichuan Institute of Chinese medicine to develop and promote DAR products.
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The Projected Operational Model of CHRI
1. Continue to improve standardized production of Sichuan Angelica, enlarge the planting areas of the GAP production base, and set up incubation centers for fine varieties on high standards to ensure quality of seeds for planting; continue to improve purification and rejuvenation of Sichuan Angelica No.1 and develop second generation varieties for the planting area through individual selection and breeding. These actions will increase the quality and quantity of Sichuan Angelica and standardize the fine varieties market for Sichuan Angelica, leading the regional medicinal plantation industry onto a healthy development path and prevent accidents of inferior seeds.
2. Increase the production and sales of Angelica from the production base, and form a Sichuan Angelica industry chain from planting to processing and sales. The brand-building of Sichuan Angelica is expected to increase the national market share of Sichuan Angelica from 40% to 80%, and with time concentrates the national Angelica production and sales in Suining Sichuan.
3. Continue intensive cooperation with Research Institutes, and develop new varieties and new lines of Angelica products. We aim to develop four to five new varieties each year. These new developments focus on the national second and third categories of new drugs whose medicinal benefits are connected with Sichuan Angelica.
