Small-scale farming and a lack of a complete agricultural industry chain are hindering China's agricultural development and creating food security risks, said Liu Yonghao, board chairman of the New Hope Group and one of China's richest entrepreneurs.

"Small- and medium-sized enterprises account for the majority of our agricultural industry. The large number makes them hard to regulate, but they are pressured to feed the world's largest population. The risk of a food crisis looms," Liu said.

Liu said he has devoted himself to helping agricultural cooperatives and guarantee companies develop their businesses in recent years, a move made to help singular farm units transform into large-scale farms.

"We are helping individual farmers grow into larger agricultural entrepreneurs and become members of the cooperatives. By then, we'll be able to scale up the agricultural industry," Liu said.

Liu Yonghao emphasized the importance of building a complete industry chain. "(The chain) helps oversee the entire agricultural production process, including farming, butchering, processing, distribution and sales," he said.

Although overseas investment by the New Hope Group has spread to countries such as the Philippines, Bangladesh and Indonesia, Liu said there is still a significant gap between Chinese agricultural enterprises and global giants.

He said innovation in agricultural science and technology will play a crucial role in closing the gap. The New Hope Group has been working to this end by establishing cooperative research initiatives with China Agriculture University and Sichuan University, as well as setting up a laboratory and building a new agriculture institute, he said.

Liu is one of China's best-known private entrepreneurs. He started his agribusiness by raising quails and chickens in 1982.

With annual sales of around 8.8 billion U.S. dollars, the New Hope Group is one of China's largest suppliers of meat, egg and dairy products.