Cooperatives: Once diminished, twice powerful
When being questioned if SMCs were monopolizing the rural market through administrative means, Zheng replied that the government redefined SMCs [supply and marketing cooperatives] as public entities in order to guarantee farmers' interests to the greatest extent. "Companies work to maximize profits, and therefore can't guarantee farmers' interests, especially when there're conflicts between different groups of people," he explained.
To Zheng's understanding, there wasn't a monopoly there. SMCs were just organizing individual entities together and supplying the same goods to them in the form of chain operations, he said, adding that not only was this saving money and labor, but also guaranteeing the quality of goods sold.
