Members projects

Yongqing Village is in China’s northeastern province of Heilongjiang, about 20 miles from the Russian border. The province relies heavily on agriculture (grains and dairy cows) and mining. Like millions of other Chinese villages, Yongqing (literally: “Eternal Celebration”) has felt little of the economic boom that has transformed China and its cities. Its residents had remained very much at the bottom of the economic pyramid by living off the land.

General Mill's initiative was launched in 2003 and consists in offering farming contracts to farmers, with elaborate technical support. By contracting directly with General Mills, more farmers receive seeds, other inputs, agronomic guidance, and two unique guarantees: a price that’s higher than the market price and a promise to buy their entire crop. These individual contracts with farmers address several issues: General Mills needs a reliable supply of corn to make its Bugles, and a local supply is more preferable to imports. On the other hand, Chinese farmers need a market for their crop so they can raise their living standards. They also need access to new agronomic knowledge and practices to improve their crop and yields. To support sustainable agriculture, an agronomist from General Mills visits regularly to teach farmers how to grow to specifications and share agricultural best practices that gain bigger yields.

After years of low prices and poor market conditions, Yongqing farmers initially didn’t believe the contracts were for real. Only a handful signed on for the first growing season. After they were paid in cash for their entire crop, others followed.
Now, virtually all 760 households in Yongqing are growing corn for General Mills.

Farmers are expanding the land they cultivate each year to earn more income. Several of the initial contract farmers have tripled their cultivated acreage, from 2.5 acres to as high as 20 acres, with their yields also higher due to better agronomic practices. As a whole, the village has seen its cultivated area more than double in the last several years. The average cultivated acreage is now nearly 15 acres.

With the higher price and bigger crops, farmers are reporting an immediate rise in their income, ranging from two to four times what they earned before 2003. The rate of increase depends on when the farmers first joined.

Signs of a better life are evident everywhere in Yongqing: Brick and cement block houses are replacing mud and grass homes. Matching storage buildings stand nearby, along with new tractors and other farm equipment. Two village households own a car, while motorcycles and other vehicles roar through the dirt roads. Cell phones hang on waistbands. Family meals now regularly include meat and other proteins.