Chapter 410 The preliminary international grain trade framework
“The impact of weeds and red fire ants on agricultural production in the United States is longer than imagined. The unit production cost of most agricultural products has increased as a result, and with the domestic The yield per unit has increased and the cost has been on the decline.”
In the past year, Chen Yanqiu, who took over as the president of Jiahe International, has been traveling around the world.
Mainly do three things.
The first is to prepare for the establishment of an overseas grain supply chain system, cooperate in the construction of grain port hubs in host countries, and open up the chain of "grain purchase stations - port transfer warehouses - port terminal warehouses - loading and transportation".
The second is to coordinate the layout of domestic and foreign grain channels. He has been doing this work since he joined Jiahe. Since he has seized the opportunity of domestic grain imports to shift from self-sufficiency and export, Jiahe is ahead of other large grain merchants in this regard, so his work this year is mainly overseas. .
The third is to establish an overseas grain logistics information platform to timely grasp the international grain product trading and logistics situation.
None of these three tasks is easy.
Fortunately, China's large-scale corn export has brought new opportunities to Jiahe.
This is a virgin land. All major international grain merchants, including National Grain, only regard China as a grain importing country.
The sudden increase in corn exports has caught everyone off guard. Only Jiahe and State Grain Reserves have relatively complete procurement, warehousing and logistics systems in the main domestic production areas.
The national grain reserves are more responsible for adjustment tasks, so Jiahe has suddenly emerged in the global corn and wheat trade in the past two years.
In January, he went to Southeast Asia.
In the market in Manila, Philippines, it is difficult to buy rice even if you have money. Women and children can only look for food in garbage dumps.
In Indonesia, food is also extremely scarce. People have taken to the streets to protest and various riots continue.
The Philippines' corn deficit has also reached a record high of 1.8 million tons, wheat deficit is 4.1 million tons, and rice deficit is 2.3 million tons.
Indonesia is no less generous.
During this period, all major grain-producing countries restricted grain exports, making it difficult to buy imported grain.
The Philippines has remittances and has good relations with Western countries, but the gap is large. In addition, the corn production in the United States has decreased, and the transportation distance is still long. In comparison, the grain in Jiahe's hands is quite cost-effective.
Indonesia has no choice. Being able to buy food at critical moments is to maintain domestic statistics.
This year, Jiahe International sold millions of tons of corn and a small amount of wheat and corresponding processed products in Southeast Asia and other countries, with revenue exceeding US$300 million.
In addition, Chen Yanqiu also took advantage of the urgent need for food in the two countries and established transfer stations at the ports of Manila, Jakarta and Medan for the export of food and the import of palm oil.
In March, he went to Egypt again.
Egypt is a major food producer and consumer in Africa. It is also an important rice exporter in the world. However, Egypt is a major importer of corn, wheat and soybeans.
In this financial crisis, the people at the bottom of Egypt are also having a hard time.
As early as two years ago, Jiahe's corn trade was deployed in Egypt, but its main sources of grain imports are still Argentina, Brazil, North America, Russia, Ukraine and other countries.
This time, given that Egypt will maintain grain imports for a long time, Chen Yanqiu wants to take the opportunity to acquire equity interests in two terminals in Alexandria, Egypt.
These two terminals have been used by Jiahe on a lease basis.
Today, the Egyptian government is facing foreign exchange and funding difficulties, and is also interested in selling the terminal in exchange for funds, but the negotiations did not go well at the beginning.
Until April, large-scale demonstrations broke out in Egypt.
Demonstrators attacked local governments, burned tires on the streets, smashed store windows, and stole computers. In addition, at least two local schools were deliberately set on fire and several banks were damaged.
Egypt is aware of the seriousness of the 'food shortage' and has introduced measures such as banning rice exports and canceling tariffs on some grain imports.
In terms of rice and wheat raw grains, Jiahe can only export a small amount, but it has extremely considerable resources in corn, wheat flour and food.
Under this circumstance, negotiations for the sale of equity interests in the two terminals also started quickly, and the agreement was finally signed by AutoNavi as the representative.
This year, Egypt imported a total of more than 12 billion U.S. dollars in agricultural products and food, of which Jiahe won 320 million U.S. dollars. At the same time, breakthrough progress was made in overseas grain transfer bases.
In June, Chen Yanqiu arrived in Santos, Brazil.
Santos is a famous port city in Brazil, only 70 kilometers away from Sao Paulo, the largest city in the southern hemisphere, and has railways leading to all parts of Brazil.
São Paulo State is also the most important agricultural and animal husbandry producing area in Brazil and the world's largest citrus, sugar cane and potato production base.
In the states of Mato Grosso, Paraná, Rio Grande do Sul, Goias, Mato Grosso do Sul and Minas Gerais surrounding the state of Sao Paulo, It is Brazil's main corn and soybean producing area.
The entire Brazilian corn production exceeds 100 million tons, of which about 40 million tons are exported. The soybean production is about 58 million tons, of which 25 million tons are exported.
No major grain merchant will give up this important global grain producing area.
There is a big gap between Jiahe and Guofang Group in terms of overseas resources. Compared with traditional international large grain merchants, Jiahe is even more of a beginner.
But this does not prevent Jiahe from having lofty ambitions.
Jiahe established an office in South America three years ago and has since developed step by step.
In the past three years, the four major grain merchants have shown their presence everywhere. The Huaxia Market has not only made them resentful, but also full of fear.
Now that they have arrived in South America, one of the bases of the four major grain merchants, they have begun to restrict Jiahe's movements everywhere.
Once Jiahe Cereals and Oils sets its sights on certain big targets and prepares to carry out acquisitions, these grain merchants will jump out of all layers of obstacles, maliciously raising prices, instigating shareholders, inciting farmers and other methods that are extremely difficult to deal with.
The purpose of Jiahe Cereals and Oils is to make a profit, not to be taken advantage of.
For this reason, for a long time, Jiahe Cereals and Oils had no major achievements in Brazil, only some scattered trade volume.
On the contrary, major grain merchants such as Marubeni, Itochu, and Wilmar International in the island country have completed several acquisitions of considerable importance.
However, two or three years are enough for the corporate team to improve and optimize and understand the market situation.
After Jiahe International was established and Chen Yanqiu officially took up the post, he reached an investment agreement with Santos Port Group to invest in the construction of storage facilities and terminals in the port, which are expected to be officially put into operation next year.
At this point, Jiahe International’s transit base in Santos has taken shape. This year’s cumulative grain trade volume has reached 300,000 tons, taking the first difficult step.
The next step is to go deep into the soybean-producing areas of the Brazilian plateau and the corn-producing areas of southwest Brazil to establish cooperation with the majority of farmers.
Jiahe International provides the platform, followed by Tianhe Seed Industry and Quanwang Biotechnology.
After Brazil, there is Argentina.
The transfer base established by Jiahe International is in the central city of the Pampas: Rosario.
The third largest city in Argentina, the hometown of football king Messi and Cuban revolutionary leader Che Guevara.
This is a river port located along the Paraná River. It is an important bulk cargo port in South America. Grain exports account for 70% of Argentina's total exports.
This year, Argentina was affected by severe drought and soybean production fell sharply, but it was still 33 million tons and corn 18.7 million tons, far lower than Brazil.
Similarly, Jiahe in Argentina was also attacked by international grain merchants, and two acquisition targets were destroyed in a row.
But Golden Harvest International still made a breakthrough in Argentina.
Due to the financial crisis and the Argentine government's increase in tariffs on grain exports from the port of Rosario, this has triggered unrest among farmers and local businesses.
Some companies have experienced operating difficulties.
Finally, Chen Yanqiu seized the opportunity and successfully acquired an exclusive grain terminal in the Port of Rosario in July that can provide loading and unloading services for cargo ships of more than 70,000 tons.
Rosario Port is an inland river port deep in the hinterland of the grain-producing area, surrounded by vast farms and pastures.
Although the throughput is small compared to Santos, it is suitable for Jiahe International, which is new to the country.
This has also become a key area for Chen Yanqiu to focus on. Through the work of a team of local employees in Rosario, the first shipment was shipped in August this year.
This is a bulk carrier shipped to the domestic Tianjin Port, fully loaded with 70,000 tons of barley and worth approximately US$15 million.
A 70,000-ton ship takes about 3 to 5 days to complete loading and unloading at the dock. About 6 bulk carriers can ship out about 400,000 tons of grain in a month.
Since the acquisition, the terminal has maintained a workload of 60% every month.
From barley, corn, and soybeans at the beginning to wheat now, the grain transportation volume of Jiahe International Rosario Company has reached 1.4 million tons.
We even took the opportunity to open up the Mexican market and found partners in the Port of Veracruz on the Gulf of Mexico and the Port of Manzanillo on the Pacific Coast.
This is a great improvement.
When the work in South America was on track, Chen Yanqiu returned to East Asia, which was the main battlefield of grain trade.
Last year, domestic corn production exploded to 250 million tons, exceeding domestic demand by 80 million tons, and more than 40 million tons were exported.
20 million tons of it were exported to island countries, South Korea, and Taiwan Province.
Of the 20 million tons, in addition to the millions of tons of corn exported by the State Grain Reserve in the Northeast to South Korea, the remaining approximately 10 million tons flowed out of Jiahe.
However, there are not many feed processing plants that export directly to terminals. Most of them are transferred from Jiahe by trading companies such as Marubeni and Itochu in the island country.
This year, not only the four major grain merchants and Wilmar International have increased their investment in domestic grain-producing areas, but also Marubeni, Itochu, Quanmin in the island country, and CJ in South Korea are all vying for the new land of China. 's granary.
Compared with last year, the domestic corn sown area has dropped again and the soybean area has increased again, but the domestic grain output still does not disappoint.
Since late August, corn and soybeans in Huanghuaihai have taken the lead in harvesting, with fruitful results, high yields emerging one after another, and average yields rising again.
At the beginning of September, corn and soybeans in Northeast China were also in bloom, and another batch of farmers and regions reported the good news.
The National Grain and Oils Information Center also released the latest production forecast.
The corn sown area decreased again by 30 million acres to 320 million acres, with an estimated output of 224 million tons.
The soybean sown area increased to 235 million acres, with an estimated output of 50.52 million tons, an increase of 6 million tons compared with last year. However, the estimated consumption increased to 60.85 million tons, and the self-sufficiency rate dropped by two percentage points.
In addition, the growth rate of unit output of wheat and rice has also increased, and the total output has increased significantly.
Not to mention whether this estimate is accurate or not, as soon as this data came out, confidence in domestic food security was raised.
When the people read the newspapers, and then take the domestic prices of rice, flour, grains and oils that have been at low levels for nearly a year as evidence, and then look at the news about the riots, marches and riots caused by a piece of cake in foreign countries, this national happiness Just compare.
Facing this new grain-producing area, international grain merchants have also increased their investment chips. Some companies that invested early, such as Wilmar International, have already put factories into production in the northeastern production areas.
Those with background advantages, such as Guofang Group, have also initially formed acquisition and warehousing capabilities.
Some companies that invested late, such as the four major grain merchants, are still building production capacity.
Grain merchants in consuming countries such as Marubeni, Itochu and CJ are also eager to purchase grain directly from Chinese farmers or directly import feed. For example, Marubeni and New Hope established a joint venture in Shandong Province Joint venture feed company.
The domestic grain market is exciting, but Chen Yanqiu knows that the domestic team has to deal with all this.
Jiahe Grain and Oil has opened up grain logistics channels in China for seeds, agricultural materials, planting bases, procurement, warehousing and processing, and logistics, and is the most competitive in purchasing grain in production areas.
No matter how hard they try, Marubeni, Itochu, and CJ cannot purchase enough cheap grain, so they have no cost advantage.
No matter how high and powerful the four major grain merchants are, they still have to start from scratch in China.
What he needs to do is stabilize and develop the external market.
So, Chen Yanqiu went to the three major grain loading and unloading ports of Tokyo, Nagoya, and Yokohama in the island country, and visited feed and breeding companies.
After reaching a verbal agreement, they went to South Korea and the same routine happened again.
Residents in these two countries have also had a hard time since the financial crisis. Prices have soared, and people are afraid to consume grains, oils, rice, noodles, vegetables and fruits.
When talking with people in Busan, Chen Yanqiu discovered that even the most common kimchi has become a scarce daily item in South Korea.
There is no doubt that China can feed 1.3 billion people. On the contrary, the island countries and South Korea seem to be experiencing a food crisis.
Oh, this is also thanks to their beautiful father.
Under the pressure of food shortage, although Chen Yanqiu encountered setbacks in his work in East Asia, most companies and farms would not refuse high-quality and low-priced products.
The only thing I worry about is official supervision and interference from grain merchants such as Marubeni.
Chen Yanqiu thinks this is not difficult to solve.
Jiahe can also interfere with Marubeni and Itochu's domestic grain purchases, so that you cannot receive grain, or you can only collect grain from me.
In one year, Jiahe International has stabilized the market in corn import areas such as Southeast Asia, North Africa, East Asia, the Middle East, and Mexico. At the same time, the establishment of transfer stations has laid the foundation for the next step of in-depth processing and sales and other market segments. .
According to Chen Yanqiu's opinion, the United States cannot be trapped in the quagmire of weeds and fire ants forever.
When production capacity is restored, the world grain trade pattern will become more intense, and competitiveness in consuming countries will be particularly important at that time.
At present, the global grain trade volume of Jiahe Grain and Oil has just exceeded 20 million tons, and it is still some distance away from becoming a truly major international grain merchant.
But this year it also laid anchors in the two grain-producing regions of Brazil and Argentina, taking a more solid step in global trade.
…
After listening to Chen Yanqiu's work report, half a day had passed and Guo Yang had also finished a pot of tea.
He was extremely satisfied with this result, but Chen Yanqiu was a little unsatisfied.
“Back then, my boss circled a total of eight major regions and 80 seaports, river ports and railway stations in 21 countries on the map. What has been completed now is just a drop in the bucket.”
"I'm satisfied." Guo Yang smiled. He also remembered the logistics system strategy meeting.
“I drew randomly at first.”
Chen Yanqiu took a sip of tea and said: "There is Matadi Port in Africa, where Yu Honghai has laid the foundation, and Yu Xiaochuan is also active in the Middle East. The only areas that are completely blank are the grain production areas in Eastern Europe and the consumption areas in Western Europe."< br>
“What about North America?”
“We already have strongholds in New Orleans and St. Louis. At least we won’t be blind when needed. North America will also be one of our priorities next year.”
Guo Yang nodded.
New Orleans is a seaport on the Gulf of Mexico.
St. Louis is an inland port on the upper reaches of the Mississippi River. It is on the border of Missouri and Illinois and is a major agricultural production area in the United States. It has just suffered in the past two years.
In addition, Tianhe also has branches in Illinois.
Guo Yang thought for a while and asked: "If Jiahe establishes a port group, is it expected to develop and grow?"
"It's difficult, it's difficult." Chen Yanqiu pondered: "First of all, Jiahe There is a lack of a home port.”
Guo Yang asked doubtfully: “A home port?”
Chen Yanqiu was stunned. Aircraft carriers, China doesn’t seem to have such a thing yet. I really dare to think, "No."
"For example, Hutchison Port Group originally developed with Hong Kong Island as its home port. It also acquired the largest port in the UK, Felicedu Port, and in the 1990s, it used Pengcheng Yantian Port as its second home port.
< br>Similarly, the Singapore Port Group also uses the Port of Singapore as its home port.
Both port groups are based on high-quality home ports and have become the top five port groups in the world today. ”
Guo Yang knows that Hutchison Port Group is the port department of Changjiang Hutchison Industrial Company, which is Li Ka-shing's company.
But I didn't expect it to be so strong.
After thinking about it, Guo Yang asked: "Does Matadi in the Democratic Republic of the Congo have the potential to become a home port?"
"Impossible." Chen Yanqiu shook his head without hesitation, "Near the Democratic Republic of the Congo If the economy is poor and the politics is chaotic, it may not develop for decades or hundreds of years.”
Guo Yang did not deny it.
Congo (Kinshasa) is one of the most chaotic areas on the planet, and he is now in a state of letting go of Yu Honghai.
You will be given dividends on the shares that should be given, but how much you can earn in the end depends on your efforts.
But he feels that there are still opportunities to develop oil palm plantations in the Democratic Republic of the Congo.
It’s just that Matadi is a bit whimsical as a home port. It might as well be the Gulf of Tonkin, huh?
"What about Beibu Gulf?" Guo Yang asked eagerly, but he thought this idea was very interesting.
There are three ports in the Beibu Gulf: Fangcheng Port, Qinzhou Port and Beihai Port. The Pinglu Canal goes out to sea from Qinzhou Port.
If the Pinglu Canal is opened in the future, it will connect the southwest; if the Hongqi River concept is realized again, or the Lanzhou-Chongqing Railway currently under construction will be opened to traffic.
The entire northwest and southwest are connected together. This is part of the future One Belt, One Road.
Moreover, once the bioenergy industry develops, the cargo throughput of Beibu Gulf Port will increase, and it should be qualified as a home port.
Chen Yanqiu thought for a while and said: "Beibu Gulf may have this potential, but it may not be easy to intervene. It is difficult for private enterprises to intervene with this kind of investment."
"It's okay." Guo Yangxiao He laughed and said, "I have dealt with so many people in Gui Province, so I just treat it like bragging and chatting."
Thinking of this, Guo Yang couldn't wait to take out his mobile phone and called Ma Biao and talked about Beibu Gulf Port.
As for Jiahe's idea of participating, Ma Biao also said that it was difficult, but he did not say that he would die, only that he would discuss it.
In Ma Biao's view, Jiahe rejected Pinglu Canal's investment, but wanted to invest in the port, which was a bit putting the cart before the horse. If the canal is not accessible, where can the potential of the port come from?
Guo Yang can only say that he did not expect this at the time.
At the same time, it was also stated that if Jiahe could participate in the construction and operation of Beibu Gulf Port, Jiahe would be willing to contribute to the Pinglu Canal.
This power is naturally money.
When things get to this point, they have to be discussed.
After the call ended, Guo Yang looked at Chen Yanqiu and said, "Look, it's already done, and things don't seem to be that difficult."
Chen Yanqiu was also surprised that it was so big. The result was discussed in a few words, but after thinking about it carefully, it is not difficult to understand.
The Beibu Gulf Port has unique conditions, but it suffers from blocked inland rivers and insufficient cargo throughput. Jiahe can contribute in both fields. In exchange, it is not too much to participate in the construction of the port!
Hutchison Port can have a joint venture with Yantian Port, so why can't Jiahe establish cooperation with Qinzhou Port?
This is traceable.
After spending the whole morning in Chen Yanqiu's office, Guo Yang went to Jiahe Grain and Oil on the other side in the afternoon.
Gaode is not here, but Jiahe Grain and Oil Trading Company, a subsidiary of Jiahe Grain and Oil, happens to have a center person in the office.
This man is called Bao Nianchun, an upright young and middle-aged man.
Jiahe Grain and Oil Trading Company is also the most important part of Jiahe’s domestic agricultural and grain supply chain.
It consists of six parts in total.
They are business departments: Corn Center, Soybean Center, Grain Center, Logistics Center;
Business departments: Asset Management Department, Business Information Department, Futures Hedging Department, Agricultural Industrialization Department, Warehouse Management Department;
Regions: Northeast Region, Riverside Region, Coastal Region, Inland Region, each region has 2 to 4 branches;
Port platform company;
Directly affiliated enterprises;
Functional departments: office, finance, human resources, auditing, legal and other departments.
Bao Nianchun is mainly responsible for the business of the corn center. After December, the corn from Huanghuaihai and Northeast China has been returned to the warehouse.
Through various models such as contract farming, comprehensive agricultural services, and land trust, the corn center’s collection and storage tasks have long been exceeded.
The main task at this stage is to connect with downstream feed, breeding, food processing, and industrial processing enterprises.
According to Bao Chunlai, the pressure on corn sales this year is also not small.
Especially for corn in the northwest, the excess output used to be supplied to the southwest. However, with the continuous promotion of improved varieties, the gap in corn in the southwest is also decreasing, and there will naturally be more corn in the northwest.
Bao Chun went back and forth to Jiuquan because the Corn Center’s purchase and storage in the northwest had exceeded its quota, and he needed to find a way to solve it.
“I didn’t expect that a good harvest would be a worry now.”
(End of this chapter)