Chapter 246 Soybeans
Magic City.
Founded in 2000, Bunge Magic City is a wholly-owned subsidiary of Bunge Group, one of the four major grain merchants.
Dusen is the general manager of Bunge Magic City. He wears a white shirt, has a short crew cut, black-rimmed glasses, and slightly dark skin.
"Su Xin, the headquarters plans to invest in a grain and oil company in Tianjin, and you will be temporarily responsible for it."
In the conference room, a refined woman looked slightly surprised.
She is the director of Rizhao 3D Oil and Fat in Shandong Province, but in the nightmare of 2004, the original soybean processing plant slipped into the abyss of total losses.
Eventually merged by Bunge.
In her opinion, "being eaten by foreign capital" is a rational but helpless choice.
Sanwei was able to be merged by Bunge because it was large enough and one of the leading companies in the industry. Like other small and medium-sized enterprises, it could only be eliminated.
Su Xin asked doubtfully: "Aren't you still discussing cooperation with Jiusan Cereals and Oils?"
Du Sen said: "ADM and Cargill have also been in contact with Jiusan Cereals and Oils, and Jiusan has also been vacillating. It’s uncertain, and it may not necessarily fall into our hands in the end.”
After Bunge entered China in 2000, it only took 4 years to become the largest soybean importer in the country.
Su Xin is aware of its horror. After taking an absolute advantage in soybean trade, Su Xin has continuously deployed in the field of soybean processing in the past two years.
Have Sanwei Grease and Jinling Grain and Oil Processing Plant moved to Tianjin again?
Su Xin asked curiously: "What is the scale of investment this time and what is the estimated production capacity?"
Duson raised his head and said: "I had a conversation with Bunge Global CEO Albert Wei today. Seer got on the phone. The investment scale this time is 1 billion yuan, and the annual soybean processing capacity is expected to reach 2 million tons.”
Everyone was shocked.
This investment and production capacity are equivalent to the sum of the first two factories. Someone asked: "Will the cooperation negotiations with Jiusan Grain and Oil continue?"
Du Sen said firmly: "Yes, what Albert means is that if he cannot invest in Jiusan, he will invest in a factory of the same size in the future."
Everyone looked at each other.
Is Bunge so optimistic about China’s soybean crushing market?
This is a question from those present.
In fact, they all know that the domestic crushing industry has serious overcapacity.
In the past few years, Bunge’s shareholding in joint ventures generally did not exceed 30%.
Bunge headquarters does not want to take risks in soybean processing or make money through processing.
They just want to control the soybean purchasing rights of these companies and then sell the soybeans.
…
Lujiazui.
ADM has also completed its domestic layout.
Chen Changtao only felt that after running around for several months, his belly was getting rounder.
Last year, the 450 million yuan Sino-foreign joint venture Yihai grain and oil project settled in Shijiazhuang.
In March this year, the 1.5 billion yuan Yihai Industrial Park project was settled in Lianyungang Development Zone, aiming to build the country's largest grain, oil and grease processing base.
What excites him most is that just a few days ago, a grain deep processing project with a total investment of 1 billion yuan was settled in Jiamusi.
It will become the largest grain and oil deep processing enterprise in Heilongjiang Province in one fell swoop, deeply engaged in the fields of grain processing and biomass power generation.
This also marks that ADM is about to enter the Northeast, and Wilmar International’s goal of monopolizing the domestic non-GMO soybean market is close at hand.
At the same time, Wilmar International can also use this to enter major grain products such as rice, wheat and corn.
In fact, these investment projects have nothing to do with him, Chen Changtao.
But Yihai Group, Singapore Wilmar International, and American ADM are grasshoppers tied on a rope.
At this time, Tu Changming, the deputy general manager of Yihai, ran in in a panic.
Chen Changtao frowned and scolded: "Why panic? Can the sky fall?"
"Boss, there are rumors that Jiusan Grain and Oil plans to sell 49% of its shares, and many companies are already in contact."
Chen Changtao stood up in disbelief, "What? Where did the news come from?"
"I don't know! But it's still spreading like this."
Chen Changtao paced around In the office, I was thinking about the fact that the domestic soybean industry has been severely damaged after being squeezed out by international traders three times in a row.
Later, it controlled more than 80% of the domestic soybean import rights and about 40% of the crushing capacity.
Whether voluntarily or forced, Chinese oil and fat companies have formed alliances with foreign capital. Even the eight oil and fat processing companies under the National Grain Group are mainly foreign-funded.
Only Jiusan Cereals and Oils, the largest soybean crushing company in China, is 100% owned by Beidahuang Agricultural Reclamation Group.
This is also a hard nut that foreign capital has been unable to crack.
But if you think about it carefully, Jiusan Grain and Oil may really be at the end of its rope.
...
Xue Liqiang never dreamed that Jiusan Grain and Oil would become the last watchman of China's oil and fat enterprises, the lonely flag-bearer.
Jiusan is still the largest processor in China.
The apparent daily crushing capacity is 15,000 tons. How much production capacity is maintained?
The loss of 600 yuan per ton of domestic soybeans processed means that when production is relaxed, Jiusan Grain and Oil will lose 9 million yuan every day.
No matter how big a family is, it can't withstand such a torment.
So, Jiusan Grain and Oil compromised.
Since last year, it has set up factories in Dalian and Tianmen to process imported genetically modified soybeans, in order to offset the losses caused by processing domestic soybeans.
Staying alive is more important than anything else.
However, when Jiusan Cereals and Oils, which mainly purchases Northeastern soybeans, also begins to process imported soybeans, who will the Northeastern soybeans be sold to?
A phone call came in.
Connected.
A steady voice came, "Li Qiang, I heard that you are going to sell Jiusan Grain and Oil?"
The voice was very familiar, and he looked at the call belatedly, and immediately When I came back to my senses, my eyes lit up, "Bureau Nie!"
State Grain Administration.
Director Nie smiled and said: "I just came out with a report and heard that Jiusan Grain and Oil is negotiating with foreign investors to sell shares."
Xue Liqiang became more energetic and said plausibly: "Those are all rumors in the market. ADM, Cargill, and Bunge have indeed always wanted to cooperate with Jiusan Oil Group.
But Jiusan Oil’s principle is that all companies with factories in China will be turned away. However, there is no policy support for Jiusan Oil Group. I can’t hold on any longer!”
Nie Bureau said: “The Ministry of Agriculture is also having a headache regarding soybeans, but an industry report involving several departments has been approved.”
Xue Liqiang’s eyes lit up. , he also participated in the soybean industry research report, and quickly asked: "What about the acquisition of domestic soybean companies by foreign capital?"
"Instructions from superiors: According to the law, there should be management."
Xue Liqiang frowned, "Bureau Nie, if this kind of mergers and acquisitions continue without restrictions, the complete collapse of the domestic soybean industry is just around the corner.
The price of soybeans has been lower than the cost of planting. All the agricultural tax exemptions and direct grain subsidies provided by the state have been eaten up by the market. Farmers have no profit at all.
It is expected that the soybean planting area will decrease by more than 50% this year, etc. Once it drops, it will be very difficult to recover. "
Things are indeed very difficult. The existing soybean crushing capacity is more than 2.6 times the actual demand, and the industry's operating rate is less than 40%.
Overcapacity is terrible for Chinese companies, but this is the best time for foreign capital to acquire across the board.
Bureau Nie thought for a while and then said: "We are currently studying to support several state-owned holding companies that process more than 500,000 tons of soybeans annually as an emergency."
Xue Liqiang said: "Also We must find a way to preserve the soybean planting area this year.”
“What suggestions do you have?”
“Let’s find help and encourage some private enterprises to come in, such as Jiahe Group!”
Bureau Nie was surprised for a moment and thought carefully. There were 12 policy recommendations in the soybean industry research report submitted by the Institute of Food Science.
Including supporting leading soybean companies, establishing soybean planting bases, and diversifying domestic investments...
He also knew about Jiahe Group, a leading company in the seed industry and pasture fields, but it seemed that it was not involved. Soybean cultivation and processing now!
Bureau Nie asked: "Does Jiahe Group have the intention to enter the soybean industry?"
"No."
Xue Liqiang said: "But Tianhe Seed Industry under Jiahe has the best soybean seed in China: Tiandou No. 1."
"Monsanto's newly launched Roundup No. 2 has increased the soybean production in North and South America by acres. The output has increased from 380 kilograms to more than 450 kilograms. This output can only be compared with Tiandou No. 1. "
In fact, Xue Liqiang does not understand why Jiahe is unwilling to get involved in the field of grain processing.
Obviously it has achieved brilliant results in the fields of corn and soybean seeds. Wouldn't it be better to open up the upstream and downstream industrial chains?
Bureau Nie said: "I will talk to Minister Lin about this matter. It is better for Jiahe to let the Ministry of Agriculture communicate."
Ended the call.
Xue Liqiang only felt that he had achieved his desired goal by releasing false news this time.
Foreign capital has basically controlled the processing industry, and now it has also affected the downstream planting industry.
A consensus has been formed in the soybean industry: if you want to survive in this industry, the only magic weapon is to cooperate with foreign capital, implement groupization, and use the negotiation power of large factories to reduce procurement costs.
To put it bluntly, it means bowing to foreign investment and begging to purchase genetically modified soybeans.
This is already related to the country's food security, and it is impossible for the higher-ups to remain indifferent.
The reason why we want to bring Jiahe Group in is because, except for Jiusan, the oil and fat companies under the National Grain Group are not purely domestically funded.
Xue Liqiang valued Jiahe’s seeds, innovation and strong financial capabilities.
Jiusan Grain and Oil is backed by the Beidahuang Agricultural Reclamation Group and owns 43 million acres of land. Even if it is all contracted to farmers, it still has certain control capabilities.
……
Hainan in May is already full of tropical scenery, but Guo Yang has no intention of sightseeing.
He went to three cities and counties in Nanfan base: Sanya, Ledong and Lingshui.
The weather here is sunny, the temperature is high, and the soil quality is good. Hainan Farm and Army Farm have been operating here for many years, forming good production conditions.
But at the same time, the rent is also expensive, and there is a big land conflict with vegetable cultivation and hybrid rice seed production. Tianhe Seed Industry's seed production base has even been insufficient in area.
It was not until Guo Yang gave the instructions that Tianhe took over several pieces of abandoned land.
Guo Yang followed Yan Qun and the production staff as they walked in the muddy fields.
Wei Shuyang, who was leading the way, turned back frequently and said, "We'll be there soon, just ahead."
Remoteness, poor drainage, and no access roads to the fields were Guo Yang's thoughts on this newly leased area. first impression of the place.
After arriving at the destination, I looked at the uneven land, covered with rocks, and overgrown with weeds. In some places, there were trees as thick as arms.
I don’t know how deep the water is. It’s possible that the buffaloes would sink in and be unable to get up when they plowed the fields.
Guo Yang panted heavily and remained silent for a long time.
Yan Qun looked at Wei Shuyang and said, "Why did you rent such a poor place?"
Wei Shuyang replied: "There is only this kind of wasteland with no water or roads. "Nanfan Seed Production coincided with Hainan's winter melon and vegetable season. When he came, Guo Yang saw countless melon and vegetable gardens on fertile fields with good drainage and irrigation.
Guo Yang calmed down and said with a smile: It's okay, as long as you have land, it will be difficult for others to grab this kind of abandoned land after it has been transformed. ”
Wei Shuyang said: "It's like this. All the nearby farmers have gone out to work."
Guo Yang asked: "How big is this land?"
"About 1,100 acres, the most At first, bananas were planted, and then pumpkins were planted without leveling, so the place looks like this now.”
“In order to restore the soil fertility, provide drainage and irrigation conditions, and make it suitable for production and planting, it is also necessary. Spend a lot of effort to transform it."
Guo Yang looked at the land and said in a deep voice: "Is the situation the same for other plots?"
"Yes, it's basically all abandoned land."
"I also rented some land near the central part, but there is sandy soil there with serious leakage and it needs to be watered for a long time."
Guo Yang stood there and discussed with a few people.
After this expansion, the area of Nanfan’s seed production base has reached 100,000 acres.
But there are still nearly 50,000 acres of newly contracted abandoned land with no access to water, roads, or electricity.
Road construction, trench digging, power supply, well digging, wasteland reclamation and land reclamation cost about 1,500 yuan per mu.
The annual rent is 500 yuan.
After renovation, the price may rise to 1,000 yuan, or even 1,500 yuan per mu.
But even so, Guo Yang still chose to invest in Nanfan under the advice of Yan Qun and other Tianhe management.
Nothing but him, just because he saw the power of Kayo's reproduction two days ago.
The disadvantages of southern propagation seed production are that there are many rats, insects, and diseases, which result in high costs and losses.
However, from the end of October to May of the following year, it was able to reproduce for two consecutive generations. The soybean yield of Tiandou No. 1 was more than 30 million kilograms of seeds in these two generations.
However, at the Southern Breeding Breeding Base of the Shandong Academy of Sciences, Guo Yang also saw the early pod picking technology that can continuously reproduce for three generations.
Hainan has abundant sunshine and less rain in winter. South of Wuzhishan, especially the line from Sanya to Yacheng, there is almost no rain in winter.
It also takes only 50 days from sowing to harvesting of soybeans, and then 15 days of shade drying, so that one generation only takes 65 days.
The speed is beyond imagination. No wonder breeders go all the way to Hainan as soon as winter comes.
This is completely beyond Guo Yang's knowledge.
The backwardness of domestic soybean breeding is more a crime of non-war than a lack of outstanding scientists.
At the same time, it also strengthened Guo Yang's strategy of southern expansion.
Hainan can reproduce for three generations, and inland for another generation, which means that the seeds Guo Yang cultivated from the seed store can reproduce for four generations in one year.
The transformation from original species to commercial varieties can be achieved directly. Guo Yang only wished he had not discovered the secret of Southern Breeding earlier.
Mainly due to the influence of habitual thinking: Hainan is a traditional breeding base.
Every winter, scientific research institutions across the country bring summer crops such as rice, corn, and cotton to Hainan for breeding.
But apart from hybrid rice, it is not suitable for soybean and corn seed production.
However, for Tianhe, the profits brought by the seeds are huge enough to speed up the expansion, so doubling the cost is completely acceptable.
In the following months, Tianhe invested more than 70 million yuan, using excavators, forklifts, laser levelers, lawn mowers, mechanized tillage boats and a large number of manpower, and accumulated tens of thousands of people in Sanya, Ledong and Yacheng. They leveled, dug ditches, opened roads, cultivated fertilizers, cleared weeds, and built ridges on acres of wasteland, turning the original barren slopes and stagnant beaches into square squares of fertile farmland.
It has become an important part of Tianhe’s seed production industry layout.
......
After some operations, 30 million kilograms of soybean seeds from the Nanfan Base have been sold in batches to saline-alkali lands across the coast.
Selling these seeds to the Northeast will not change the overall situation.
Therefore, after discussion, this batch of Tendou No. 1 will be used in saline-alkali land improvement.
The situation of improving saline-alkali land is very hot, and farmers from all over the country are full of enthusiasm. The transfer area of coastal saline-alkali land has already exceeded the 10 million mu mark.
However, there are only 17 million kilograms of Alfalfa No. 1 seeds, enough to sow 6.8 million acres, and there is a gap in seeds.
Then take Tendou No. 1 on top.
Its salt-alkali tolerance is also one of the best. It can also improve the soil, which can also be regarded as a supplement to the domestic soybean planting area.
The Ministry of Agriculture and the Jiusan Grain and Oil Bureau have successively approached Guo Yang.
Guo Yang also took advantage of the trend and agreed to contribute to domestic soybeans and enter the field of soybean processing. In fact, this was originally a part of Jiahe's strategic layout.
Jiahe may be involved in the processing of not only soybeans, but also corn, rice, and even potatoes and cotton.
It’s just that Jiahe is a private enterprise, so there is no need to publicize these things in a big way, just keep a low profile.
Throughout May.
The seed business of Tianhe and Alfalfa has gradually come to an end, and Tianhe Seed Industry has basically achieved 100% repayment.
Only alfalfa and the first crop of forage in the new year have gradually begun to be harvested. Merchants from all over the world are waving banknotes and traveling between the Chinese ports and the northwest inland.
Alfalfa's reputation for high-quality forage has spread throughout the world, but the payment for Alfalfa No. 1 seed has not been smooth.
……
Beijing, China Agricultural Industry High-Quality Development Conference.
At the meeting.
An expert invited by the Ministry of Agriculture once again shared the development situation of the four major international grain merchants.
The information is extremely detailed.
Even the development path and global layout have been commented and analyzed one by one.
When talking about the world's oldest international major grain merchants, Director Liu of the Grain Production Department of the Ministry of Agriculture targeted the National Grain Group and Jiahe Group.
Director Liu said loudly: "China also needs such international large grain merchants, and domestic agricultural enterprises also need to make a voice in the world."
"They are also grain traders, and they are also among the world's top 500 companies. Kyrgyzstan Group adopts the whole industry chain strategy, why can’t Guofang Group do the same?”
“There are also Jiahe Group and Monsanto, which also started from seeds, and they can definitely expand in the upstream and downstream of the industry chain! ”
Faced with Director Liu’s questions, Guo Yang just pretended to be stupid. Monsanto and Jiahe were different.
In addition to the sales of corn and soybean seeds, herbicides are also an important source of revenue for Monsanto, and there is still some gap between the two.
Guo Yang remained silent, but Yu Bo, the president of Guofang Group, did not ask questions. Guofang's development plan was to some extent in response to high-level decisions.
Yu Bo said to the microphone on the table: "Director Liu, Guofang Group has carried out diversified corporate transformation since it took a stake in Great Wall Wine in 1983.
Gradually enter It has entered the fields of hotel operation, metal packaging, real estate development, financial services and other fields, and has opened up the tomato paste and ethanol market through the acquisition of Xinjiang Tunhe, China Resources Alcohol and other enterprises.
According to the group's strategic plan, in the future. In three years, we will consider promoting the entire industry chain strategy from field to table.”
After saying that, Yu Bo stood up, nodded slightly to thank, and glanced at the audience.
In addition to government departments, many leading agricultural and animal husbandry companies are attending the conference today, and Guofang is undoubtedly the leader among them.
The audience also gave timely applause.
A whisper came from Guo Yang's side, "I'm afraid only Guofang Group can master the whole industry chain strategy."
The person sitting next to him was none other than The diversification strategy has been hindered, but Liu Yonghao of New Hope Group has been in the limelight recently.
Last year, New Hope Group quietly but quickly completed the acquisition of Shandong Liuhe Group, the third largest feed company in the country, surpassing CP Group in one fell swoop and becoming the leader in the domestic feed industry.
Guo Yang remained silent.
Both are in the livestock industry, Jiahe and New Hope will become competitors sooner or later.
Both are afraid of each other.
The person who arranged the two of them to sit together is also a genius.
He is not optimistic about the development of the entire industry chain of Guofang Group. The gap between Guofang and Bunge is too big.
One can only deploy domestically, but the other can mobilize resources on a global scale.
In its literal meaning, the entire industry chain is just a relatively neat industrial layout.
The formation is not for looking good, but for fighting.
After the bankruptcy of Denong Group, Guofang acquired Tunhe, Xinjiang Province. However, the originally profitable company fell into the hands of Guofang, but fell into losses for several consecutive years.
This is evident from this.
Guo Yang remained silent, but others wanted him to express their opinions and spoke out one after another.
“Where is Jiahe?”
“Jiahe Group is doing great this year. Tianhe Seed Industry, Alfalfa Agriculture and Animal Husbandry, and Hexi Dairy are all more powerful than the other.”
“According to this trend, Jiahe can surpass New Hope Group this year!”
“New Hope’s revenue last year was 20 billion yuan. It’s still a matter of who wins and who loses. The top two domestic agricultural and animal husbandry companies are Anyone can sit on it.”
The eyes of the audience couldn't help but focus on Guo Yang and Liu Yonghao.
Liu Yonghao pushed the microphone in front of Guo Yang and made an invitation gesture.
Guo Yang raised his eyebrows, but he could not refute the Ministry of Agriculture's face and said: "Jiahe will also carry out deep cultivation in the industrial chain."
A brief sentence.
The whole place was silent for a moment.
Director Liu asked: "It's gone?"
Before attending the meeting, Guo Yang was mentally prepared, despite the fact that the revenue of large enterprises such as New Hope Group and Guofang Group was tens of billions.
But in terms of profits, Jiahe can beat them by dozens of blocks, especially Guofang Group, a Fortune 500 company. Most of its industries are losing money, with annual profits of only a few hundred million.
So, Jiahe needs to put more effort.
He also knew what Director Liu wanted to hear.
Guo Yang said in a deep voice: "In the next one or two years, Jiahe will consider entering the fields of grain processing such as soybeans, corn, and rice.
At the same time, we insist on vertical integration in advantageous areas and improve the process from planting to harvesting. The whole industrial chain layout of storage-trade-processing-sales”
Liu Yonghao breathed a sigh of relief.
Jiahe has not directly stated that it will enter the feed industry.
The huge profits in the feed industry are over.
Several companies such as New Hope, Zhengda, and Tongwei also rely on their advantages of industrialization and scale to still make small profits.
If Jiahe aggressively enters the feed industry at this time, it will undoubtedly be extremely bad news for them.
Director Liu was also very satisfied with Guo Yang's statement and smiled rarely.
“The country will also launch a soybean industry strategic plan as soon as possible to save China’s soybean industry!”
(End of this chapter)