Chapter 983 Marco Polo
During the American Civil War, canned food such as tomato soup became popular and promoted the development of the food industry.
Italian immigrants continue to flock to the United States and become messengers to spread tomato culture.
With the support of Lao Mo, the production and processing of tomatoes is regarded as a representative of Italian cultural quintessence and industrial self-sufficiency, and Italy's tomato industry has accelerated rapidly.
It was with these foundations that Italian tomato merchants quickly gained a decisive market position after the war.
The strong mobilization ability of the Italian tomato industry is also reflected in their development of the Chinese market.
In the early 1990s, a phone call from ‘Little Rossi’, an Italian tomato processing equipment manufacturer, opened the door to opportunities in China for Italian giants.
Little Rossi just sold a set of tomato paste processing equipment to the Chinese side.
At this time, they hope that their Italian counterparts will introduce business to Chinese buyers and get the tomato processing factory up and running.
After receiving the news, the Gandalf family, an Italian tomato trading family, took action immediately.
Armando Gandalf, the eldest son of the third generation of the family, became the first Italian tomato trader to visit China.
North latitude 40 degrees is not only the ideal latitude for top wine, but also rich in high-quality tomatoes. The California production areas in the United States and the European Mediterranean production areas are all located here.
Italian businessmen followed this line and chose Xinjiang provinces that were parallel to their hometown.
The Italians who just arrived can be called the "Marco Polo" of the tomato industry. They almost took over the construction of China's tomato industry system at that time, and also introduced their industry chain partners to China.
Equipment manufacturers have built a number of modern tomato processing plants in the form of compensation trade (products repay construction costs).
Traders refer customers to China, such as Burger King and former McDonald's supplier Heinz.
In the entire chain of interests, China's status is undoubtedly the lowest.
The tomatoes grown with hard work were taken away by Italian middlemen at a low price, and the latter sold them to retailers such as Burger King and Heinz at international prices, earning a high price difference.
The tomato paste manufacturers here in China have to pay high equipment fees for the money they finally made.
Although it is at the bottom of the smile curve, making small profits.
But for China in the 1980s and 1990s, it was enough to earn valuable foreign exchange.
So in the early 1990s, many tomato processing plants were launched all over Xinjiang Province.
The skyrocketing production capacity quickly exceeded demand.
The Italians took the opportunity to lower prices.
Chinese manufacturers suffered heavy losses.
For a time, Xinjiang Province was full of bankrupt tomato processing factories.
Tunhe entered the tomato industry by bargain hunting at this time, and quickly integrated nearly 40% of Xinjiang Province’s production capacity.
However, based on previous lessons, Tunhe paid great attention to the expansion of overseas channels when entering the tomato industry. After all, the mainstream market for tomato consumption is overseas.
Tomato paste processing and distribution companies such as Gandolfo from Italy and Chris from the United States have all been acquired by Tunhe.
The construction of overseas channels has also helped Tunhe become the second largest tomato paste processing company in the world.
“If New China Base deliberately raises prices and competes with us for tomato production capacity, will we follow?
If we follow, it will undoubtedly squeeze our profit margins.
If we don’t follow, we will We will not be able to receive enough supplies and gradually lose the market.
At this time, if we have our own tomato production capacity, we will have great freedom and room for error. ”
Xu Liang. Some sighed.
After participating in the 2003 soybean war, he had a deeper understanding of initiative.
If Huaxia Oils and Fats Enterprises were not greedy for profits and scrapped their own soybean production capacity, they would not be wantonly squeezed by the four major grain merchants.
"Mr. Xu, you have thought carefully." Liu Qiang said to the west.
What he looks at is the profits from enterprise development, while Xu Liang considers the overall situation.
“If you have time, go and study the battle for soybeans in 2003. I believe you will gain more insights.”
After Liu Qiangxi nodded.
"Mr. Xu, can we acquire 'New China Base'?"
"Acquisition?"
"Yes. After acquiring New China Base, we can Obtaining 70% of Xinjiang Province’s tomato production capacity will not only eliminate possible internal friction in the future, but also gain international pricing power with its huge output and avoid being exploited by the Italians.”
“You know Xinzhongji. Operation status? ”
Liu Qiangxi nodded and said: "Although it is not listed on the market, Delong Times Tunhe has investigated a lot of New China Base's financial information and operating data, and we still know the approximate data."
The one who knows you best will always be is the enemy.
For Xinzhongji, Tunhe is the enemy.
“Let’s talk about it.”
“Xinzhongji took advantage of Delong’s chaos and the gap period when we rectified Tunhe to actively expand production capacity.
There are currently 13 tomato processing plants, with an annual output of 280,000 tons of large-package tomato paste, 4,290 tons of tomato powder, and 8.8 tons of lycopene.
We are very close already.
And under the guidance of the Italians, New China Base also began overseas mergers and acquisitions.
In May last year, New China Base purchased the French Provence Food Company for 11 million euros, accounting for 40% of the French market. This company owns 14 brands including Chalet (accounting for 25% of French tomato sales) and Masque D'Or, which have been famous in France and other European countries for nearly three decades.
According to our internal assessment, New China Base now has total assets of about 3 billion Chinese dollars, total revenue of about 900 million Chinese dollars, and net profit of about 180 million.
If acquired, 2 billion Huaxia coins would be enough. "
Xu Liang thought for a while and then smiled and said: "The Italians are really warm-hearted and are afraid that our two families will merge. ”
“Competing with each other gives them room to compete with each other. If Tunhe and Xinzhongji really merge, we will not only control most of the production capacity of the world’s third largest tomato producing area, but also have the ability to enter Europe. and U.S. marketing channels.
They will have no chance to exploit us like they did before. ”
Xu Liang nodded slightly, "In this case, you should contact the New China Foundation first and listen to their thoughts. Give me a call when you have the result."
"Okay."
Liu Qiangxi was excited.
The big boss’s attitude gave him hope of mergers and acquisitions.
If the two parties can really merge, Denon Tunhe will become a world-class tomato giant with an annual production of 600,000 tons of tomato paste, with markets and channels covering China, Italy, France, the United States and many other countries.
The most important thing is that after obtaining the industry pricing power, the profitability of Denong Tunhe tomato business will be greatly improved.
This is the point.
“Go ahead.”
Liu Qiangxi responded, “Denong Sugar is a business separated from Tunhe. There are currently a total of 6 sugar factories in Xinjiang Province. It mainly produces beet sugar, with a daily processing capacity of 18,400 tons of beet, an annual output of 252,000 tons of Tunhe brand white sugar, and 41,800 tons of Tunhe brand beet granulated meal.
Total assets are 1.37 billion Chinese dollars, and the total operation is 1.37 billion yuan. Collected 970 million Chinese dollars, net profit was 173 million Chinese dollars
Our plan this year is to expand our beet sugar production capacity steadily while also entering the cane sugar business. Through mergers and acquisitions and new construction in Guangxi Province and southern Yunnan, we will increase our daily processing capacity of 30,000 tons of sugar cane.
Strive to achieve an annual production capacity of Denong Sugar exceeding 400,000 tons before the end of 2006.
Becoming the second largest sugar company in China after COFCO. "
Denong Sugar Industry Xu Liang has nothing to say, it is enough to develop step by step.
Seeing that he did not express anything, Liu Qiangxi continued: "In terms of animal husbandry in Denong, it is mainly cattle raising. At present, we have three cattle farms in Xinjiang Province, which not only cultivate excellent cattle breeds, but also raise 50,000 Kazakh cattle, Mongolian cattle, Holstein cattle and brown cattle.
This year our plan is to increase the number of cattle raised in three cattle farms in Xinjiang Province to 100,000, and at the same time, build a 20,000-head cattle breeding farm in Qilu and Hebei Provinces.
By the end of 2006, Denong Animal Husbandry will achieve the feeding capacity of at least 140,000 beef cattle and the corresponding slaughtering capacity.
In addition to raising and slaughtering, we have reached a cooperation with Kelong Supermarket and will open independent beef cattle retail counters in their fresh food area to extend the industrial chain and create higher value. "
Taking a slight breath, Liu Qiangxi said solemnly.
"If everything can be realized as planned, by the end of 2006, Denong Group's total revenue will increase by at least 30%, exceeding 70 100 million Huaxia coins; net profit increased by 40%, exceeding 1.5 billion Huaxia coins. ”
Xu Liang smiled and nodded, "With your ability, I believe it is not difficult to realize this plan."
"Thank you."
I didn't bother with him about this. question.
“Do you still remember the future plan for Denong Group that I mentioned to you before?”
Liu Qiangxi’s heart moved, and a trace of expectation emerged in his mind.
"Since 2004, I have been planning to integrate all of my agricultural assets and form Tunhe, Denong Seed Industry, Sanwei Fertilizer, and Harvest Agriculture into a large agricultural enterprise spanning multiple fields.
Last year, Denong developed the fastest under your leadership.
So I decided to integrate Sanwei Fertilizer into Denong Group and become the sixth business unit of the group, accepting your leadership.”
Liu Qiangxi suppressed the excitement in his heart.
At the critical moment, he had no intention of shirk.
"Thank you for your trust. I will definitely bring Sanwei Fertilizer with me."
"Sanwei Fertilizer has developed well under the leadership of Luo Hong in the past two years. Now it is in your hands. Don't let me down."< br>
Liu Qiangxi nodded vigorously.
This is a three-dimensional fertilizer.
As the first agricultural input enterprise to join Xu Liang’s banner.
From 2003 to now.
After more than three years, relying on Lop Nur’s rich potash resources and Xu Liang’s abundant financial support.
Sanwei Fertilizer has built a production capacity of 600,000 tons of potassium sulfate, 100,000 tons of potassium magnesium sulfate fertilizer, 5,000 tons of bromine, and 50,000 tons of boric acid.
It is currently the top chemical fertilizer and salt chemical giant in China.
At the end of 2005, total revenue was 5.32 billion Chinese dollars, and net profit exceeded 1.3 billion Chinese dollars.
Once merged into Denong Group, Sanwei Fertilizer will instantly become the largest business unit with the highest revenue under Denong.
The total assets of the group exceeded 30 billion Chinese dollars, the total revenue exceeded 12 billion Chinese dollars, and the net profit exceeded 2.5 billion Chinese dollars, making it a real agricultural giant.
But compared to three-dimensional fertilizers, what worries him more is the Harvest Agriculture Company.
This is the real giant.
(End of this chapter)