In 2005, acquired COFCO Ltd., one of the largest and most successful companies in China, Xinjiang Tunhe, a tomato processing company that had been poorly managed in recent years. COFCO Tunhe changed management team and set out to create a culture of professionalism and impressed by the staff that the first customers came. Qin Yelong, Tunhe President, had ambitious goals for the company. he wanted Tunhe the world’s largest supplier of tomatoes (paste in the first line) within three years …. Read more »

In 2005, acquired COFCO Ltd., one of the largest and most successful companies in China, Xinjiang Tunhe, a tomato processing company that had been poorly managed in recent years. COFCO Tunhe changed management team and set out to create a culture of professionalism and impressed by the staff that the first customers came. Qin Yelong, Tunhe President, had ambitious goals for the company. he wanted Tunhe the world’s largest supplier of tomatoes (paste in the first line) within three years. To do this requires Tunhe relationships with top-of-the-line international clients such as HJ Heinz and Unilever secure. These companies were interested Tunhe a supplier, but needs to be assured that the company could deliver year after year, a reliable supply of high quality, competitive prices and reliable tomato paste, before they would conclude long-term contracts with Tunhe. Knew Qin and his management team that is number one, Tunhe would have a leading role in the modernization of China’s current take “peasant mode of farming.” Tunhe actually came the tomato supply of 200,000 mainly illiterate farmers work small plots (less than 0.2 hectares on average) with little or no mechanization, scattered throughout the regions of Northwest China. The challenge: how so many farmers (the number was expected to grow to 300,000, when Qin sales targets were met) to manage such as tomatoes, to ensure consistent quality and safety without dramatically increasing costs. Qin clear that Tunhe the possibility of a new type of agriculture that could be the model for all agribusiness in China ahead had to create. On the other hand, a misstep could lead Heinz and other major international companies to look elsewhere for their supply needs.
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from
David E. Bell
Aldo Sesia
Source: Harvard Business School
32 pages.
Release date: 30 June 2008. Prod #: 508079-PDF-ENG
COFCO Xinjiang Tunhe Co., Ltd. HBR case solution