China's First Virginia Tobacco Producer Located in

Source from:  04/26/2004 04/26/2004

Liuyang Jinye Agricultural Development Co. Limited was launched on April 21 in the village of Yatou in the town of Chunkou in the city, the first professional Virginia tobacco producer with modern corporate organization in the country. The founding of the company marked a new era for tobacco production in Liuyang in the terms of incorporation and industrialization. The villagers became shareholders of the company in the form of 1135-mu land with five-year right of use, while Tobacco Company of Liuyang Municipality, Tobacco Company of Hunan Province and Hunan Zhongyan Industrial Co. became shareholders with investment in the form of cash. According to Guo Hanhua, manager of Tobacco Company of Liuyang Municipality, establishment of Liuyang Jinye Agricultural Development Co. Limited was aimed to seek for production of intensivism and specialization so as to replace traditional agricultural production by industrialized production and ensure increase of incomes of tobacco farmers. Under the rule of the company, the mode of incorporation will fundamentally guarantee the interest of farmers, while a certain proportion of after-tax profit each year will be taken as public fund of the company, used to take on the risks to Virginia tobacco output caused by disastrous weather and plant diseases and insect pests and also used for construction of roads and irrigation works in tobacco zones and pension fund and medicare for villagers. The rest profit will be used for dividend, while the proportion of dividend will be mostly given to villagers. Currently, more than 100 laborers have been working for the company as industrial workers. The company has carried out specialized division of the work, setting up four teams in charge of seedling breeding, mechanized operation, field cultivation and management and curing, grading and stringing respectively. Enditem