Story of unusual grit, natural oats

Li Gangling's faith in chemical-free farming turns around food venture in Inner Mongolia

Having lost his homes, cars, and 60 million yuan ($8.7 million) in the first three years (2012-14) of his organic farming business, Li Gangling, founder of oatmeal powder brand North Mongolia, is thrilled to see his oat farm as one of the world's largest now.

"Food safety and nutrition require no chemical remains. I want my products to be the best in the market. That encouraged me to say no to chemical fertilizers, pesticides and herbicides during the initial years," said Li.

Li worked as a marketing director in a multinational pharmaceutical company before starting up. Li said years of experience dealing with hospitals and patients prompted him to seek a healthier lifestyle.

During a visit to his brother's family in Los Angeles, he observed a growing demand for light and healthy breakfast options like cereals and oatmeal. Li researched and found that oats can help reduce blood pressure and cholesterol, improve digestive health, besides offering other benefits.

He realized it was only a matter of time before the trend spread to markets like China. The world's most populous nation was low on oat consumption. Even now, it accounts for just 2 percent of the global total.

Sensing huge market potential in China, Li quit his job and started his businesses in 2012. The first step was finding a farm and partners. He traveled to Canada, the US, Russia, and Australia, but hesitated to locate his farm there due to concerns about transportation, trade and chemical content.

Eventually, Li went to Australia as it was known for growing oats well. He cooperated with local farm owners. The latter, however, asked him to first deposit 50 million Australian dollars ($36.76 million) because chemical-free operations heighten planting risk.

"I rejected their idea and decided to plant on my own," Li said. He found suitable farmland during a 2012 marathon competition in Inner Mongolia autonomous region.

"The environment was perfect for growing oats," Li said. "China was not my first choice, to be honest, due to reports on pollution and food safety. What I saw, however, totally changed my mind."

It all seemed good in the first year, with an 11-member team and external consultants backing him.

The first "harvest" in 2013 was a horror show though. "I remember clearly-it was Sept 5. I had huge expectations and was all excited. But what I saw all over the farm was only massive hogweeds and crab grass."

Li chose not to push the panic button. Displaying resilience, he consulted more experts and farmers, and decided to double the planting area to 26 square kilometers the next year.

"I tried different ways of planting, but only to find more hogweeds. Experts asked me to stop and said it was a waste of time trying. People thought I was insane," Li said.

He was overcome by doubt and confusion after some experts told him no one had ever succeeded in growing oats in the area. Local planters laughed at his methods. His team left him that year.

But Li stuck to his guns because, according to a report by the World Health Organization and UN Environment, over 1 million people are food-poisoned each year due to herbicide remains on grains, including about 20,000 in China.

"I panicked a bit, to be honest. Some of my team members are also my relatives and close friends. In a well-meaning way, they told me to give up before I lose everything and put my family at risk. I don't know if I'd have continued had I not tasted success in 2015."

It was a breakthrough year, the turning point for Li. He found an experienced partner who handled the planting part, leaving Li to focus on the role of an investor.

"In September 2015, I came to the farm and found several oats outgrowing grass, which excited me no end. I ran around shouting, crying and laughing," Li said.

In the fourth year of the business, Li hit pay dirt. The harvest yielded over 1,000 metric tons of oats.

His new team has developed its own planting methods. The farm now produces 750 kilograms per hectare. The total output is higher than that of those who use chemicals.