Dedicating to Drug-crop Substitution Cultivation, Forging a Green Great Wall Project of “Drug-crop Substitution Cultivation”

Ma Zhengshu, Chairman of Yunnan Hongyu Group Co., Ltd.

1.      What We Have Done for “Drug-crop Substitution Cultivation” Outside China

In order to follow China’s principle of “regarding neighboring countries as friends and partners”, and to carry out the policy of “helping neighboring countries develop drug-crop substitution cultivation” by Yunnan Commission of Narcotics Prohibition, to cooperate with the international anti-drug undertaking and reduce the drug hazard to China and even to the world, Yunnan Hongyu Group has been actively engaged in developing the drug-crop substitution cultivation outside China for years, and has paid much attention to cultivation of poppy-substituted crops .         

Established in February 1995 and located in Kunming, the capital city of Yunnan Province, Yunnan Hongyu Group Co., Ltd. is an inter-trade private enterprise engaged in diversified business operations. It readjusted the industrial structure over the past few years and become a complex with presence in educational industry, agricultural industry, international undertaking of drug-crop substitution cultivation, and high-tech industry. It has been ranked as one of the large-scale private enterprises of China since 2002. Besides a well-qualified staff, it boasts a total of over RMB 5 hundred million yuan in assets, with the amount of annual after-tax profits and taxes totaling over RMB 10 million yuan.     

Since 1998, supported and guided by relevant departments of the provincial government, Hongyu Group has endeavored to approach the Myanmar authorities concerned to discuss matters of developing drug-crop substitution cultivation out of the Chinese borders. As the results, cooperation agreements were concluded in 1999 and 2003 respectively with the authorities of the drug-growing areas in north Myanmar. Senior managers and agronomists (engineers) from the company paid several investigative visits to the said areas, and counterparts from the Myanmar side also came over and visited our head office and the lemon-processing factory in Ruili. Exchanges over the past 7 years between Hongyu Group and relevant departments of Myanmar have forged good relations of cooperation between the two sides and enriched Hongyu’s experience in developing an industry in drug-crop substitution cultivation. On this basis we can push forward the drive for substitution cultivation for drug on a larger scale. 

In the out-of-the-border crop substitution campaign over the past years, we knew well that it would be difficult for us to carry out our work without the support and assistance offered by the central and local governments of Myanmar. The central government of Myanmar and the authorities concerned have paid great attention to our substitution campaigns in Northern Myanmar and offered convenience for our staff’s travel and for materials transportation. With the valuable guidance and support of the central government of Myanmar, we have carried out our substitution campaigns in North Myanmar successfully and the effect is remarkable.

Yunnan Green Treasure Industrial Development Co., Ltd., an agricultural firm invested totally by Hongyu, is known for its dedication to international cooperation in agricultural industry to grow crop cultivation in substitution for drug out of the Chinese borders. Since its founding in October 1999, it has based itself on scientific research and centered on economic benefits in tapping Yunnan’s unique bio-resources and developing eco-agricultural economy in Yunnan’s poverty-stricken border areas inhabited by ethnic minorities. While helping the poor peasants shake off poverty and become prosperous by growing cash crops, it extended the cultivation of longan, tea, tangerine, rubber, paddy rice, banana, lemon and corn to Northern Myanmar, all through cooperative development, demonstrative cultivation and management, technique counseling, product purchase and processing, and marketing with a view to substitution for drug cultivation. Green Treasure has become one of the enterprises in the “Golden Triangle” area with the widest range of substitution crops and strongest industrial support. 

Agreements have been concluded between the Green Treasure Co. and relevant authorities of Myanmar to develop a total of 200,000-odd mu of crop cultivation in substitution of drug cultivation, of which 85,000 mu of longan, 15,000 mu of Wulong tea and tangerine, and 500 mu of banana and corn have already been grown. In addition, we will make investment in Northern Myanmar to build comprehensive agricultural gardens for demonstrative cultivation. Seedlings, pesticides and fertilizers were provided to the Myanmar side at preferential prices. Free instructions were also offered to train Myanmar technicians on growing crops and doing research work for developing even larger areas of crop cultivation in substitution of drug cultivation.             

To further their achievement in crop cultivation in substitution of drug cultivation, Hongyu Group and the 171^st Military Region of the Southern 2^nd Special Zone of Shan State jointly invested in Wanhong region of Myanmar to construct a longan processing factory in an effort to gradually upgrade the “substitution cultivation” into a scale “substitution industry.”

As the largest lemon growing and processing enterprise of China, Hongrui Lemon Development Co., Ltd., which is affiliated to Hongyu Group, acted on the model of “company＋base＋faming household＋scientific research” in building a 3,000-mu demonstrative maternal lemon garden along the Sino-Myanmar border and a 200,000-mu lemon base in Dehong Prefecture of Yunnan Province. In the meantime, it concluded a cooperation agreement on the substitution cultivation for drug with Shan of Myanmar to develop a 50,000-mu lemon base in the Myanmar side, 60 KM away from Ruili City in the Chinese side.         

Hongyu Group has done tremendous work, with enormous investment of human, material and financial resources, in laying down a solid foundation for the scale and industrial development of substitution cultivation for drug cultivation out of the border. It constructed by international standards a lemon deep processing factory with an area of 50-mu, in which the production lines imported from Italy and Sweden are already in operation; it perfected its sales network; it established in Beijing Hongrui Technological Development Co., Ltd. to develop new products of higher technology so with higher added value, and the technology of intensive processing in cooperation with Chinese Academy of Sciences, China Food Fermentation Industrial Institute, Nankai University, Yunnan University and other institutions.     

To realize scale development of the drug-substitution industry in the “Golden Triangle” area, it is necessary to improve the general quality of the labor force in those areas.  Reserving and tapping of human resources is the key guarantee for a sustainable operation of the drug-substitution industry over a long period as well as a prerequisite for drug-crop substitution cultivation. Depending Yunnan University Dianchi College that is funded by our Group as a base, we have set up the framework for the exploitation of human resources with the authorities in the “Golden Triangle” area and surrounding places. It’s planned to train specialists per year for urgent demands in substitution crop cultivation area and also the neighboring areas.         

In a letter of January 11, 2004 addressed to Hongyu Group and Green Treasure Co., UNODC/Wa Project extended thanks to the recipients for their efforts in the drug-substitution project.

In March 2004, Yunnan Commission of Narcotics Prohibition awarded Hongyu Group with the “Prize for International Cooperation in Border-Area Narcotics Prohibition.”  2. “Crop Cultivation in Substitution of Drug Crops” Project Planning

2.1  An Overview of the Projects

In Northern Myanmar area, which has a 150-year history of opium poppy cultivation, the poor-educated locals have got rusted with labor skills and would resume opium poppy cultivation even if they have once given up the practice. As a matter of fact, any sporadic and individual drug-substitution introduction alone could hardly effect real substitution for drug. Therefore, Hongyu Group’s out-of-the-border endeavor to push agricultural development in substitution of drug cultivation, all on the strength of its domestic superiority in agriculture, education and technological industries, is multi-fruitful.  

The first project is to build rubber plantations in Tachilek of Myanmar and the triangle area of Northern Laos. It is aimed at relieving the shortage of rubber supply needed by China as well as the world on the one hand, and reducing the opium poppy cultivated area on the other. Consequently, the local people can eventually shake off their economic dependence on opium poppy once and for all— i.e. never grow again.  This project is fundamental to the sustainable development of economy of the region so as to produce friendly relations between neighboring countries, seeking in common efforts a prosperous ASEAN and strengthening the borderland stability of the countries related. This is a strategy that bears far-reaching international as well as realistic significance.    

The second project is the construction of a preserved-longan processing factory in Wanhong District of Myanmar. Wanhong District in the Southern 2^nd Special Zone of Shan of Myanmar was one of the first regions in Northern Myanmar to grow crops in substitution for opium poppy cultivation. Residents of this region were relocated from Northern Myanmar where opium poppy was grown. The project of processing 30,000 tons of longan annually will enable the 100,000 relocatees to acquire the basic sustenance in the first place and improve their labor skills so they can have a higher income and live a better life. As a result, the rate of resumption of the people in opium poppy cultivation will be kept low in this region and the local people can free themselves from economic dependence on opium poppy cultivation.

The third project is the lemon industry to develop with the support of domestic resources and a lemon-processing factory as the key link. By setting up demonstrative agricultural bases in Myanmar and Laos, the project will spread farming techniques and help the local residents to learn labor skills. This effort will urge people out of the border to give up opium poppy cultivation for farming, who will cast their dependence on opium poppy cultivation and get rich gradually. The eventual purpose is to upgrade crop cultivation into industrialized production in substitution for opium poppy cultivation.   

2..2  Major projects to be executed 

Projects will be executed on the principle of “equality, mutual benefits, supplying each other’s needs and mutual respect.” 

A. Rubber cultivation in substitution of drug cultivation

Location: the 171^st Military Region of the Southern 2^nd Special Zone of Shan State

Production scale: a total of 100,000 hectares of rubber plantations is to be opened in the 171^st Military Region of the Southern 2^nd Special Zone of Shan State and the Hongniuba Triangle Area of Northern Laos

Development in planning: to build 2,000 mu of seedling nursery and 10,000 mu of show-how rubber plantations during 2004-2006; develop up to 100,000 hectares of rubber plantations during 2004-2014.

Estimated investment: It is planned to develop by stages 100,000 hectares of rubber plantations in Wanhong District of Myanmar, 3 rubber-cultivation technique popularization stations, 10,000 mu of quality rubber show-how plantation, and 2,000 mu of rubber seedling nursery.   

Benefits analysis: In full operation, an annual output of 6,000 tons of dried rubber will, based on the current market price of RMB 12,000 yuan per ton of dried rubber, produce RMB 72 million yuan in benefits. This project will provide the basic sustenance for a population of 150,000 locals and increasing their incomes and bettering their lives.       

B. Construction of a longan-processing factory

Location: Wanhong District of Myanmar

Production scale: Hongyu Group has concluded an agreement with the 171^st Military Region in the Southern 2^nd Special Zone of Shan of Myanmar on substitution cultivation, including providing cooperative technical management for the 85,000 mu of longan in Wanhong District of Myanmar and construction of a longan intensively-processing factory with an annual processing capacity of 35,000 tons of fresh longan.  

Development in planning: 2003-2004, complete the construction of factory buildings and supporting facilities, introduce a processing line with an annual capacity of 10,000 tons of fresh longan, and producing 3,500 tons of preserved longan per year. 

Benefits analysis: The 85,000 mu of longan will enter the prime yielding period in 2007 with an annual output of 35,000 tons of fresh longan. By a 30%-rate of processed product to fresh fruit, the prime annual output will be turned into 10,000 tons of preserved longan. Upon its completion when the average production value per mu comes to RMB 676.5 yuan, the project is able to provide the local farmer with sustenance and better conditions for life.

C. Lemon cultivation in substitution of drug cultivation  

Location: Kachin and Shan of Myanmar, and the Hongniuba Triangle Area in Northern Laos

Production scale: Build 2 lemon show-how gardens, 5,000 mu in total, in area to cultivate lemon seedlings. The gardens will provide the local Myanmar farmers with technical services free of charge and lemon seedlings, fertilizers and chemicals for lemon use only at preferential prices, establishing a connected sequence of operations from lemon purchase, deep processing, and product development to marketing. Demonstrative cultivation helps local farmers learn lemon cultivation techniques and encourages them to grow it so as to open up to 100,000 mu of lemon field. 

Development in planning:

The project consists of 3 phases.

Phase I: 2004-2005, complete the construction of 5,000-mu demonstrative lemon gardens and 10,000-mu cultivation base. Hold 25 workshops on lemon cultivation techniques.     

Phase II: 2006-2008, develop up to 50,000 mu of lemon cultivation fields and hold 45 workshops on lemon cultivation techniques.         

Phase III: 2009-2014, develop up to 100,000 mu of lemon cultivation fields and run 70 workshops on lemon cultivation techniques.

Benefits analysis: The lemon project of 100,000mu lemon cultivation will benefit people out of the border who have preferred crop to drug in the opium poppy-grown areas. When lemon is cultivated in vast fields, the cost-deducted income per mu for local farmers will be RMB 734.4 yuan based on the company’s purchase rate of RMB 1 yuan/Kg.     

2.3 Project of exploitation of human resources 

Hongyu Group will use Dianchi College as a base for the exploitation of human resources in cooperation with Myanmar, Laos and other neighboring countries, educating specialists in urgent demand for the work of economic cooperation and crop cultivation in substitution of drug cultivation out of the border. Trained people are key to these undertakings and the sustainable socio-economic advancement of the relevant regions.

* Items of education:

1. Education of specialists for crop cultivation in substitution of drug cultivation in the “Golden Triangle” area 

2. Education of specialists for urgent demand in Southeast Asian countries 

* Time/location of education:

Time: start from 2004

Location: Yunnan University Dianchi College, Kunming, Yunnan, China

* Instructors/Text Books

Instructors: faculty or adjunct faculty of Yunnan University Dianchi College

Text Books: relevant text books of the specialty

* Goals of education: Education of specialists for urgent demand in substitution cultivation area in the “Golden Triangle” and Southeast Asian countries.

* Programs of education:   

undergraduate program (4 yrs.) 

college training program (3 yrs.)

short-term training program (1 mon.-1 yr.)

* Examinations

Graduation examination is held and diplomas granted to the qualified ones. 

* Supervising system

A supervisor group will be organized under the Teaching Administration Section of Dianchi College to audit classes at random and solicit students’ feedbacks on teachers’ performances so as to readjust teaching programs and methods in time for a better result. 

In summary, as a private enterprise of science and technology, Hongyu Group has forged a chain of industries of cultivation, processing, research, marketing and vocational education by relying on its own superiority. This chain has extended out of the border in an attempt to develop economy in cooperation with neighboring countries by spreading advanced agricultural technology. In this way the pattern of sporadic and individual “crop cultivation in substitution of drug cultivation” has been upgraded into the pattern of “scale comprehensive cultivation industry in substitution of drug cultivation.”

I am confident that the “Golden Triangle” area will eventually, as a result of our concerted struggle, leave the shadow of drug behind and see a bright tomorrow. For this reason our undertaking needs cooperation from neighboring countries and support from the whole world.    

Friends, hand in hand let’s create mankind’s brilliant future!