Conflict of interests and public-private game

In the past few days, workers at the new rubber factory construction site in the three processing branches of Jinshan, Jinxing and Jincai in the Hainan Land Reclamation Area have been under intense construction.
The three new plants that started in March this year have a total investment of 130 million yuan and annual processing capacity of 66,000 tons of dry glue. After completion, the district will form a centralized processing layout of 13 processing subsidiaries and 14 processing plants, with an annual processing capacity of 340,000 tons. Not only can we process all the rubber raw materials in the district, but also have the ability to integrate and process all the Hainan private rubbers.
At the same time, many cities and counties have also included new rubber processing plants in their construction plans for the purpose of training tax sources. The small processing factories that are run by local people everywhere are even more blooming.
In the end, how many rubber processing plants in Hainan need? Can market-oriented means make rubber processing out of the “separatist” cycle?
Conflicts of Interest and Public-Private Game The interests and separatism of interests in the rubber processing field in Hainan have been for a long time, and with the increasing popularity of rubber products.
When rubber prices were low in the past, 87 processing plants located in each farm in the Reclamation District purchased and processed almost all raw materials. With the gradual rise in the price of rubber, private rubber has developed rapidly, and private rubber processing plants in some cities and counties have sprung up.
After that, rubber processing in Hainan has been constantly measuring in this kind of public and private game and competition. Their respective voices have come up one after another, even affecting Hainan's environmental protection and influencing government decision-making. It is reported that the profit rate of private small-scale processing plants is extremely high. A small-scale factory with a capacity of 500 tons can achieve an annual profit of 300 to 4 million yuan. The reclamation area is sad: In the premise of the price dual-track system, interest-driven pressure is increasing the pressure of protecting forests. The annual loss of glue to the local area is as much as 30,000 to 40,000 tons and losses are several hundred million yuan.
"Private processing plants should be banned and unified processing by the farms."
"The government should let go and speak from the market. It cannot use policies to restrict the development of the non-public economy."
In the past many years, these two voices have been affecting government decisions in the ever-changing game, causing the government to fall into a dilemma from time to time.
In January 1991, the Provisional Regulations for the Protection and Management of Natural Rubber in Hainan Province was issued. In May 2004, the "Measures for the Administration of Purchase Licenses for Natural Rubber Original Products in Hainan Province" was also implemented. At the same time, the "Notice of the General Office of the People's Government of Hainan Province to Transmit the Notice of the Provincial State Farming and Lands Administration on Strengthening the Management of the Acquisition and Processing of Natural Rubber Original Products" was abolished. Later, the "Management Measures for Acquisition Licenses" extended the effective time limit. However, by the end of 2007, the "Management Measures for Purchase Licenses" was terminated.
There is no doubt that under the market economy environment, it is no longer appropriate to use administrative means to manage the market. It is said that the rubber planted by farmers in Hainan is increasing at an annual rate of 200,000 mu. In this context, small processing plants are born faster.
“At this time, rubber purchases have entered the 'Warring States Period', and the farmers must deal with the market.” Wang Yixin, director of the Provincial Bureau of Land Reclamation, has both expressed a sense of urgency and objective and calm thinking.
There is no winner statistics show that in the 6.3 million mu of rubber in Hainan, about 3.8 million mu of farmland is occupied, and about 2.4 million mu of local people are farms. Farm employees also have some private rubber and rubber stocks.
From the processing point of view, since 1997, 87 scattered small-scale processing plants in Hainan Agricultural Reclamation have been closed down and replaced by 14 newly-built and rebuilt 14 modern processing plants.
After many years of development, local private glue factories have also emerged some large companies, and the processing scale has even reached more than 30,000 tons. The huge potential of private rubber growth has long led many private capital to land in advance. Established in 2003, Sinochem Shinsei Rubber has exceeded 1 billion yuan in output value in 2007 and has grown 10 times in 4 years. Chengxin and Allianz also implemented strong alliances and entered the capital market through the introduction of listed companies like Sinochem International.
However, most of the privately-owned rubber factories are small in size, lack environmental protection facilities, have poor processing conditions, and have poor quality of processed products, which seriously pollute the environment and waste resources.
The reporter had an unannounced visit to a small processing plant near the Chengmai Hongshan Farm. He saw that under the rough conditions, the heavy oil used for processing and the emissions seriously polluted the environment, and the quality of the products was poor, but there were still private purchasers who continuously sourced the raw materials. Processing.
According to a survey, the Luma Rubber Factory located in Beida Township, Wanning, and Shenghua Rubber Factory, Hou'an Township, Wanning, respectively produced standard rubber and selenium gel blocks, each with an annual output of 300 tons, and Changfeng Town’s Changfeng Rubber Factory has an annual production capacity of only 200 tons. It is reported that there are seven similar small glue factories in Wanning. In the 8 private small-scale rubber factories in Hezhou, Qingzhou, Yaxing, Luoji, Natai and other places, most of them have only a few centrifuges. The waste water produced during the gelatinization process is naturally discharged without any treatment, and the pollution is very serious. .
Because of the low processing costs and the local protectionism, these small factories have not only narrowed their existence space, but have also expanded.
Authoritative sources believe that competition is a good thing and one of the rules and characteristics of the market economy. However, disorderly competition has caused all parties to suffer harm. On the one hand, small plants to hide in Tibet in order to deal with environmental protection inspections, the environment has been destroyed, and the processing of poor quality products into the market, so that a serious waste of rubber resources; the other hand, although the annual use of agricultural manpower a lot of human and material resources and financial resources, forest protection plastic The effect is not ideal, and the pressure is increasing.
Integrating resources with market-based measures In order to bring scale processing benefits into play, reduce costs, and diversify pollution for centralized management, the Shu area has successively closed 87 small processing plants in recent years, replacing them with 14 modern processing plants, and the effect of energy conservation and emission reduction is very obvious. Only three new plants will reduce the discharge of sewage by 180,000 cubic meters per year.
According to the reporter Jinlong Processing Subsidiary, which has already been established, wastewater treatment stations have extremely high operating efficiency. Through centralized processing, economies of scale began to appear, with an average cost reduction of 2 million yuan per plant per year. The huge benefits and cost control of centralized processing in energy conservation and emission reduction dwarfed those of small private factories.
At the same time, however, more than 80 privately owned rubber factories in the province are still fighting for the small and scattered situation in which they compete in the acquisition, processing, and trading sectors and lack joint bonds.
How to integrate resources to change the status quo? Obviously, it is outdated to rely on administrative measures. The expiration of the "Management Measures for Acquisition Permits" is the signal.
"The survival of the fittest through market and economic means is the best way out," said Zhang Mengying, vice president of Haijiao Group.
Obviously, Hainan land reclamation is no longer seeking administrative protection, but with a confident attitude, it intends to use market-based means to integrate resources.
At the first meeting of the Fourth National People's Congress held in Hainan Province earlier this year, Wang Yixin, director of the Provincial Bureau of Land Reclamation, took the lead to submit a proposal to integrate private rubber by means of marketization to achieve a win-win situation for all parties.
When the proposal was announced, more than 20 deputies immediately signed it and expressed the unanimous appeal of many parties. The motion has finally plagued the disorganized state and public-private disputes that have plagued the rubber processing industry in Hainan for years. At this point, the industry's big reshuffle around the rubber processing resources revealed some clues.
The district has fully extended the long-term contracting of workers who open rubber-tapping gardens, and the employees have enough businesses to do so. The rest is settled at the market price, which is expected to solve the problems of forest protection and rubber-keeping.
Under the background of the start of a new round of reforms by the farmers, the characteristics of the farmer's enterprises became more and more obvious. According to the strategic adjustments that have been made, the government will change from having resource-based resources to controlling resource-based enterprises and changing from production-oriented to operating-type enterprises. To improve competitiveness, use market means to control resources, and to exert scale advantages have become an inevitable choice in the reclaimed areas. In the past, Zangqu was once set up as an obstacle, and it was not allowed to buy private rubber in the processing field. Now it is changing its thinking and encouraging the purchase and processing of private rubber at the market price.
“Purchase private rubber by the market price acquisition method, carry out the subcontracting business, reduce the processing cost with scale and management, realize value-added with quality, brand, and deep processing, which can not only achieve healthy development of the industry, but also give more benefits to the production process. Jiao Nong.” Wang Yixin showed such a road map.
It is reported that the Provincial Land Reclamation Corporation has had contacts with major companies such as Sinochem International, and intends to use the method of mutual equity to form an alliance. The Reclamation District has also reached an agreement with relevant Indonesian parties to import 20,000 tons of raw materials each year for commissioned processing.
In the acquisition phase, the Provincial Natural Rubber Association is also playing a role in regularly publishing the market purchase price in the media to guide and standardize acquisitions.
For those small factories that obviously pollute the environment and waste resources, related parties expect the government to step up enforcement efforts to ban them. Because of the unordered status, unfair competition, disruption of the market order, and detrimental to the healthy development of the industry.
"In this regard, the government can indeed make a difference," said one person in the industry.

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