How We Support Farmers

The importance of Xiaogang in China's rural economy

In 1978, 18 farmers in Xiaogang village, in Anhui Province, signed a secret agreement to divide communally owned farmland into individual pieces called household contracts, thus inadvertently lighting the torch for China's rural revolution. Today they are considering pooling their farmland again to create an even more efficient economy. To learn more about this historic and ground breaking rural reform and to understand why GLG is so passionate about farmer success, visit: http://www.china.org.cn/china/features/content_16955209.htm

In 2008, President Hu visited Xiaogang to promote "High-Tech Agriculture, Industrialization and Urbanization".

In 1978, against Communist laws, 18 farmers signed a secret agreement to divide communally owned farmland into individual household contracts

How GLG and AN0C support the Xiaogang movement and farmers in rural China

Stevia is an all-natural zero-calorie 'third wave' sweetener solution for the food and beverage industry. Its use in China is seen as an economic and health solution for the country. GLG has established a working relationship with over 200,000 farmers who benefit economically by growing the company's high-yield selectively-bred plants from seed. By growing stevia, farmers can increase their economic wealth 2-3 times more than if they were to grow traditional cash crops on their land. GLG has established a network of agricultural support to distribute seed, demonstrating to farmers how to most effectively grow stevia, provide ongoing support and arrange the collection and shipping of the bails of dried leaves to GLG's processing plants.

Not only do farmers benefit by growing a higher value crop, GLG has been able to provide farmers and their families with local employment at their processing facilities. These efforts offer a huge incentive to retain the local community structure, keep families together and instead of the more common practice of family members migrating from rural to urban areas in search of work, to acquire wealth and then eventually returning home after years or even decades of separation.

In 2009 GLG Chairman and CEO Dr. Luke Zhang (left) met with Premier Wen Jia Bao (right) to nominate "Stevia" as the crop help meet the "High-Tech Agriculture, Industrialization and Urbanization" initiative for the millions of farmers in China.

To further reinforce the company's commitment to supporting the rural community, an agreement was signed in the Spring of 2011 with local government officials. GLG and its joint venture AN0CTM business agreed to register its headquarters in Xiaogang Village in Fengyang County, which is the birthplace of China agriculture reform, and to set up its marketing and sales operation center in Shanghai. This win-win arrangement with the Fengyang government now gives the AN0CTM business nationwide preferable tax treatment through its headquarters. In addition, the Fengyang government and the Chuzhou City Government also agreed to proactively assist GLG's AN0C subsidiary to obtain a RMB one billion credit line with interest rates discounted from market rates from China financial institutions.

Fengyang County and Chuzhou City governments will assist AN0C

Happy farmers, healthy crops, growing capacity

Today, one of our significant competitive advantages is based on our secure leaf supply. This capacity is rooted in a foundation that's based on a relationship of respect and support for our growing number of farmer communities. GLG holds 10 and 20 year agreements in multiple provinces for exclusive and protected stevia growing areas. Our farmers grow our own GLG proprietary plant species that has been selectively bred over the past 14 years. Our plant and it's larger size make for increased volume at harvest and consequently have the potential of generating an even economic return that benefits farmers. Agricultural expansion continues and planting now takes place across 10 growing areas.