Growing business

Long a poverty-stricken county in northeast China's Jilin province whose residents eke out a living raising corn, Songyuan has changed in recent years with the introduction of advanced farming techniques, greater income for farmers and more schools built.

The philanthropic "Songyuan's Hope" project by Cargill, a US-based international provider of food, agricultural and risk management products and services, has been partly responsible for training local farmers, providing schools for rural children and increasing the overall living standards of locals.

Close to farmers

"As an agricultural company, Cargill has close relationship with farmers. They take increasing local farmers' incomes as their responsibility," says Chang Xiaochun, vice-governor of Songyuan county.

When Cargill subsidiary Cerestar China Resources Maize Industry Co began operation in Songyuan in 2000, it carried out a study on local conditions, then advised farmers to plant wax corn, a variety suited to Songyuan's climate, soil and water conditions. It also brings higher prices at the market.

Cerestar then hired two experts to give courses on raising wax corn, including how to avoid diseases and prevent insect pests, as well as skills in choosing seeds and how to fertilize. Cargill also shares up-to-date market information with farmers.

"Due to the training and timely market information our corn can be sold at decent price," says Tang Mingquan, a farmer of Qian'an village of Songyuan county. "Revenue from each hectare has increased at least 2,000 yuan."

To expand production of the corn, Cerestar signed long-term purchase contracts with local farmers to guarantee a stable income.

According to a recent survey, there are 75,000 children in Songyuan county, but 68 percent of them do not go to school and a large number are handicapped due to poor healthcare.

In 2005, a group of Cargill employees from home and abroad participated in the Beijing International Marathon to raise money for the Songyuan's Hope project. Some 1 million yuan was raised to refurbish two rural schools in the county, providing facilities for 65 disabled children and 70 students from poor farming families.

"In addition to buying building materials and educational supplies, we planted trees around the schools to make the environment green and beautiful," says Gerrit Hueting, general manager of Cargill Asia-Pacific's starch sugar division, and organizer of the marathon fundraiser.

Through cooperation with Junior Achievement International, an association for proving international trade knowledge to rural students, Cargill also held a series of courses to share basic economic knowledge with primary school participants in Sonyuan.

"All the community programs will help long-term development. Our company can also benefit from the contributions by local society," says Liu Jun, general manager of Cargill's Cerestar. "We build a more harmonious society for our employees, company and the entire community, and we accordingly gain a better environment for business."

Corporate strategy

Songyuan's Hope is one of several Cargill community projects around China.

"Growing awareness has resulted in a long-term positive relationship in the communities where we live and work," says Gregory R. Page, CEO and president of Cargill. "As a global agricultural and food company, Cargill supports sustainable cooperation with farmers and helps customers to succeed. It has been proven to be one of the driving forces for our success."

With a 35-year history in China, Cargill has developed along with rural areas by helping farmers with capital investment and high-quality agricultural technology.

The company says it has met its commitment to community involvement by training over two million Chinese farmers, donating to improving education and helping disabled people.

The Cargill Cares China Council was established in 2004, and now a network of 28 smaller councils is taking shape to cover the regions where the company does business.

"The councils not only promote financial contributions but also encourage our employees to participate in community projects," says Huang Juhui, manager of government affairs at Cargill China.

Cargill China has also founded other educational funds. In 2006, the company donated 1 million yuan to the China Children and Teenager's Fund as seed money to establish Cargill China Cares Fund, which enhances its community work in education, environmental protection and healthcare.

Cargill also established the Cargill Rural School Project Fund to renovate some 20 schools in communities near Cargill's plants.

On January 9, Cargill was named the "Best Corporate Model Citizen" at the 2008 International Charity Forum for its range of efforts.

Cargill's business in China has also witnessed sound growth with its annual trade value in the country now exceeding $3 billion. The company sells grains, seeds, steel products, sugar, fruit juices, meats and other commodities to China while exporting Chinese commodities such as steel, apple juice and corn.

The agricultural giant has more than 3,000 employees at 25 wholly owned and joint ventures in 16 provinces in China. Its array of projects range from soybean crushing in Guangdong to corn processing in Jilin and animal feed production in Sichuan.

(China Daily 01/28/2008 page8)