In June 2018, the president of Hongxuan Agriculture Group (Hongxuan), which operated in the Chinese egg industry, was aware that an ongoing trade dispute between China and the United States might affect both his industry and future financing for his company. The company he had founded in 2008 had grown dramatically over the past decade; it received high prices for the three billion eggs it produced each year, largely due to its branded marketing, its innovative product development, and its incorporation of new technologies into both farming and sales. The company’s goal was to integrate its entire value chain and to meet an annual production target of five billion eggs. However, the industry was asset heavy and had not traditionally been attractive to investors. In order to raise funds for future development, Hongxuan’s president needed to determine how to lower the industry price to reduce the company’s revenue uncertainty and how to persuade investors and financial institutions to provide the financing he needed for stable future development. Were there innovative supply chain financial solutions the company could use?

In June 2018, the president of Hongxuan Agriculture Group (Hongxuan), which operated in the Chinese egg industry, was aware that an ongoing trade dispute between China and the United States might affect both his industry and future financing for his company. The company he had founded in 2008 had grown dramatically over the past decade; it received high prices for the three billion eggs it produced each year, largely due to its branded marketing, its innovative product development, and its incorporation of new technologies into both farming and sales. The company's goal was to integrate its entire value chain and to meet an annual production target of five billion eggs. However, the industry was asset heavy and had not traditionally been attractive to investors. In order to raise funds for future development, Hongxuan's president needed to determine how to lower the industry price to reduce the company's revenue uncertainty and how to persuade investors and financial institutions to provide the financing he needed for stable future development. Were there innovative supply chain financial solutions the company could use?