Chapter 247 From Field to Fork
The purpose of the Ministry of Agriculture is self-evident.
The crisis of domestic soybeans has caused headaches for all leaders, and the voices of experts in the soybean and grain industries have become increasingly strong.
Duties, subsidies, barriers to the import of genetically modified soybeans... various measures are already being implemented.
But there is a hidden danger.
At present, most investors in the domestic soybean industry are multinational grain merchants. Apart from Jiusan Grain and Oil, there are no other purely domestic enterprises.
These multinational grain merchants invest in my country's soybean processing industry on the premise of selling foreign soybeans.
For example, ADM acquired 30% of the shares of Huanong Group’s Zhanjiang Oil and Fat Factory, but obtained 70% of its raw material procurement rights.
Multinational grain merchants invest in my country's soybean industry only as a part of their efforts to realize profits from international trade.
Rather than investing, it is better to seize the domestic soybean consumption market, eliminate competitors, and then monopolize.
This results in the Ministry of Agriculture sometimes trying to support leading enterprises but unable to find a suitable entity.
In this way, Jiahe entered the Ministry of Agriculture’s attention.
Its strong profitability and control capabilities in the fields of soybeans, corn, pasture and other seeds allow it to calmly deal with the high risks of the processing industry.
In other words, Jiahe can withstand higher losses, and the potential of Tiandou No. 1 in wastelands such as saline-alkali lands and medium-low-yield fields also gives Jiahe the ability to reverse the situation.
The current state reserve policy can only solve the problem of farmers' difficulty in selling grain, but cannot solve the problem of market shortage.
It is also impossible to acquire unlimited state storage capacity.
It has become inevitable to provide the subsidy policy for the state reserve to large-scale processing enterprises. Allowing enterprises to participate in the purchase and storage process will not only solve the shortage of state reserve storage capacity, but also reduce the amount of soybeans imported by processing enterprises.
However, this policy also has hidden dangers. Past experience tells the Ministry of Agriculture that some enterprises, even state-owned enterprises, are unreliable.
The former received government subsidies, then turned around and sold soybeans to the State Reserve Department, acting as a second-tier dealer.
In this way, state subsidies are provided, and domestic soybeans are not consumed in the processing link. The problem is not solved at all.
There are very few options for companies that can be supported. In addition to Jiusan Grain and Oil, the Ministry of Agriculture is indeed very fond of Jiahe Group.
If you can afford losses, add state subsidies, and then wait for the situation to turn around.
So, Director Liu was very concerned about Guo Yang's statement at the meeting. Although his words were very brief, the meaning was enough.
In fact, Guo Yang also has the intention to intervene in the entire industry chain.
What's more, when the country is in trouble, the political gains that Jiahe can achieve by standing up at this time are beyond imagination.
The four major multinational grain merchants all have strong political backgrounds, and the president can come out to support them from time to time.
If Jiahe wants to ride the waves internationally, it must have the support of a big country.
Moreover, at this time, there is a serious excess of domestic soybean crushing capacity, which is not only the best time for multinational grain merchants to make mergers and acquisitions, but also the time for Jiahe M&A.
Different from Dongyilangtou Xiyilangtou of Guofang Group, according to Guo Yang’s plan, Jiahe will focus on processing fields such as soybeans, corn, wheat, and pasture.
Then, you can also enter the feed industry following the trend.
The new corn variety Guo Yang previously cultivated was named Tianyu No. 8, which is an extremely excellent high-quality protein corn variety.
At the same time, Tianhe also has Tiandou No. 1.
This gives Jiahe more confidence to enter the field of grain processing. Soybean processing is losing money, but I still have corn, wheat, rice...
As long as we deepen our expansion in the vertical field of the industrial chain , Jiahe is sufficient to deal with the risks brought by international capital.
……
Jiuquan.
Guo Yang gained a lot from this conference on the high-quality development of the agricultural industry, especially about some of the development strategies of the four major grain merchants.
It gave him a feeling of enlightenment.
Based on some knowledge of the four major grain merchants in his previous life, Guo Yang spent a few days organizing his various ideas into documents.
Subsequently, various departments and core management were convened to organize a strategy meeting to outline several major work priorities of Jiahe Group.
The first is the development of the entire industrial chain, focusing on seeds as the core and expanding support for various industries such as fertilizers, planting, pesticides, and food.
The second is overseas market expansion;
The third is leadership development plan and overseas localization strategy.
Multinational operations will always experience the pain of lack of talent. In fact, Jiahe has already experienced this pain.
The leadership development program pays more attention to the construction of young teams and focuses on cultivating those talents who have the potential to become senior leaders of the company.
Guo Yang hopes to cultivate talents with imagination, execution, and interpersonal relationships through this program.
Interpersonal relationships - In order to bring maximum benefits to the company, be able to build a friendly network of relationships with investors, governments, employees, farmers, customers, etc.
If you want to expand globally, overseas talents are always indispensable. This is also evident from the difficult overseas expansion of Chinese companies.
So there is an overseas localization strategy, and its core ideas are mainly four points:
Decisions are based on those closest to the market, because they know the actual situation and customer needs best, and activate localization in a timely manner. Excellent talents.
Do as the locals do and communicate in the customer's language and habits.
Encourage employees to focus on grassroots rather than top-down high-level goals.
Inspire employee and customer loyalty and create an open atmosphere.
…
At the same time, Guo Yang has repeatedly emphasized that the core of the success of the entire industry chain strategy is to provide farmers with complete supporting services.
This is what Jiahe has been doing.
Only the farmers know the facts, but they must publicize it with such fanfare and work hard to achieve it.
On the one hand, it provides farmers with a series of agriculture-related services such as seeds, technical support, agronomy training, harvesting, drying, and storage.
On the other hand, it purchases, stores, processes and integrates farmers’ agricultural products. into the trading system.
Using services, Jiahe turns the entire process from "production to sales" of agricultural products into a value chain, and integrates these farmers into the system.
Jiahe will always promote that Jiahe's success comes from the hard work of farmers. Farmers are not only Jiahe's food and clothing parents, but also Jiahe's customers.
Finally, it is appropriate diversification.
Build an agricultural industry system with seeds, fertilizers, pesticides and food as the core.
The meeting lasted for two days.
Because Guo Yang only proposed some big frameworks, there are still many details that need to be brainstormed. At the same time, this whole industry chain plan will also be revised and improved in the long term.
After the meeting, the entire group's top management was enveloped in a wave of inexplicable emotions.
Excited? Excited? perturbed?
No one can tell.
But there always seems to be endless energy to vent.
This sentiment has also reached work, making Jiahe Group’s subsequent investment and mergers and acquisitions methods particularly rough.
…
While Jiahe was organizing a meeting, the domestic soybean industry was already in turmoil.
Even because of the fluctuations in the futures market and the sensitivity of genetic modification, domestic soybeans have once again attracted the attention of the public.
The origin stems from an interview. Xue Liqiang, the chairman of Jiusan Cereals and Oils, talked eloquently to reporters.
“Only one of our four factories in Black Province is producing, and the volume is very small. But now the three coastal soybean processing and production companies are very good, and they all use imported soybeans.”
"Now the entire enterprise relies on factories along the coast. Therefore, even if the factories in Heilongjiang Province are closed, workers will still go to work as usual."
The reporter asked: "Are the imported soybeans genetically modified?"
< br>Xue Liqiang said: "Yes."
This defender of domestic soybeans responded that the issue has been raised and suggestions have been made, but the actual effect is not obvious.
“The low tariff of 3%, no transition period, and no import quantity restrictions...have enabled foreign low-priced genetically modified soybeans to come in one after another.”
"The state provides a subsidy of 160 yuan per ton to domestic soybean processing enterprises, but they must purchase domestic soybeans at the state reserve price of 1.85 yuan."
"Processing of domestic soybeans has basically been given up."
After the interview came out, it quickly started spreading.
Relevant reports are fermenting on portals such as NetEase, Sina, and Tencent: Jiusan Cereals and Oils has begun processing genetically modified soybeans!
“The impact of low foreign soybean prices strikes again, and the steadfast Jiusan Grain and Oil Company turns to another direction.”
"China Soybean was forced to make its last roar."
This is a big impact on the people.
Think back a year ago, when the genetically modified controversy caused by Tianyu No. 1 spread to Monsanto’s genetically modified soybean seeds.
Finally, Jiusan Cereals and Oils, which insists on non-GMO soybeans, has made huge gains.
At that time, many housewives placed their hopes on Jiusan Cereals and Oils for cooking oil.
It can be called the light of the nation!
Unexpectedly, in just one year, this guy with thick eyebrows and big eyes would rebel.
However, the statement that it loses 600 yuan for every ton of domestic soybeans processed also makes many people believe it.
Reporters also went deep into Northeast China to investigate.
In the home of a farmer in Achengxian, the hometown of soybeans in Heilongjiang Province, the 4,000 kilograms of soybeans harvested last year have not yet been sold.
The villager said: "The cost of planting soybeans per kilogram is at least 1.4 yuan. At the beginning of the year, the price was less than 1 yuan, and now it is only 1.2 yuan. It is still not enough, so I can only stay at home."
In fact, due to The price of beans is too low to sell, and the corners of every villager's house are piled with soybeans. Many villagers in the village store more soybeans than others.
Faced with the onslaught of imported soybeans, the most direct victims are soybean farmers.
As a result, people in the village realized that there was no future for growing soybeans, and their enthusiasm for growing soybeans became less and less every year.
Similar interviews are very popular in society, which leads to more and more people paying attention.
At the same time, the soybean industry that is riddled with holes is also directly displayed in front of the Chinese people.
“Who will save the domestic soybean industry?”
“If we can give Professor Zhuang Bingchang a few more years, the country may have more say.”
“Oh, How could an accident happen to a professor of this level? "
The discussion about soybeans in all walks of life is becoming more and more intense, conspiracy theories are also rampant, and there are also more and more hidden worries.
Who will save domestic soybeans? has become the voice of all sectors of society.
At this time, Jiahe Group began to deploy in the field of grain processing with rapid means.
In early June, Jiahe Cereals and Oils Group Company was established.
In the next month, Jiahe invested 1 billion yuan each in Jiangsu Province and Heilongjiang Province to build grain processing plants, covering soybeans, corn, rice, and even biomass energy are also included in the planning and design.
We also negotiated mergers and acquisitions with Guangdong Province Fuzhiyuan Oil Factory, Liao Province Hualiang Oil Company, and Fujian Province Zhangzhou Oil Manufacturers, and quickly implemented them.
Investment projects in Sichuan Province, Xinjiang Province and the central region also quickly entered the inspection process.
At the same time, based on a comprehensive analysis of the layout of domestic soybean production areas, Jiahe has successively established several typical high-oil and high-yield soybean planting bases in the northwest, northeast, Huanghuaihai, and southwest to replace part of the imports.
If all investments are to be realized, the basic investment will exceed 6 billion yuan!
…
Nine o’clock in the evening.
The sunset dyes the sky into a fascinating dreamy color. Busy Jiahe Group employees occasionally look up to enjoy the stunning sunset. The afterglow of the setting sun shines through the window into Guo Yang's office.
Xie Shijie and Qu Yang walked in in a hurry.
Xie Shijie said: "Boss, the farmer's loan from the Agricultural Development Bank of China for the No. 1 seed has been fully settled, totaling 2.8 billion yuan."
Guo Yang raised his head and relieved his fatigue He opened his eyes and said: "Now the only thing left is the follow-up subsidy from the country. That will not be available until the project is completed, probably by the end of the year."
Xie Shijie gave him a strange look and said: "The project is already being accepted in advance, and the local government is already going through the financial process for subsidies. According to the current progress, payments may be received one after another this month."
Guo Yang looked at him in surprise, and then thought it made sense.
It should be the senior management who came forward.
The investment in improving coastal saline-alkali land consists of farmers + bank loans + state subsidies, involving a total of 8.5 billion yuan in seed money from Alfalfa No. 1.
Farmers have already received their own funds, but the Agricultural Development Bank loan has been stuck in the early stage.
Now, because Jiahe has entered the domestic soybean industry, not only loans are flowing smoothly, but financial subsidies have also entered the fast track.
Not only Jiahe has benefited, but also the farmers and enterprises that open up wasteland on coastal saline-alkali land.
After thinking for a while, Guo Yang saw the documents in the hands of Qu Yang and Xie Shijie and took them.
Documents on investment in grain and oil processing plants and fund payment documents for mergers and acquisitions.
When matters are urgent, Jiahe also has to deal with special matters. After looking at it for a while, he signed it.
Guo Yang asked: "How is the soybean purchasing and storage going?"
Qu Yang said: "The Huanghuaihai area has come to an end. In addition to its own warehouses, it has also signed warehousing agreements with many supermarkets."
“The purchase price is between 1.5 and 1.85 yuan. According to the current situation, the loss per ton of soybeans processed has increased to more than 900 yuan.”
The loss per ton is 900 yuan, with Jiahe Cereals and Oils The designed daily soybean production capacity is 20,000 tons. If it is operated at full capacity, it will lose more than 18 million yuan every day, but at the same time, it can also consume 7.3 million tons of soybeans.
Based on the yield per mu of ordinary soybeans, it can cover more than 50 million acres of planting area. Taking Tiandou No. 1 as the calculation, it can cover 30 to 40 million acres of planting area.
In recent years, the soybean sowing area across the country has been between 120 million and 140 million acres, and Jiahe can account for about one-third of the total.
Jiusan grain and oil also account for one-third.
The remaining companies account for another third.
This ratio is almost just right, but the premise is that other companies face losses and have the courage to start operations.
Guo Yang calculated in his mind, then smiled and said: "A loss of 18 million yuan in one day, do you think you can handle it?"
Xie Shijie and Qu Yang also laughed. At the group's strategy meeting, most senior executives agreed to enter the corn, wheat and rice processing fields.
I only think that processing domestic soybeans is a suicide attack. In fact, there are still many people who hold this idea until now.
But judging from the current situation, at least Jiahe's political background is deeper.
The accounts are settled. Tiandou No. 1 will be rolled out on a large scale early next year. After deducting the construction time, the factory operation time will be about one year.
“You can definitely resist.”
Xie Shijie said: "In addition to the 8.5 billion yuan in seed payments for alfalfa agriculture and animal husbandry, the second crop of alfalfa exports are also being paid back one after another.
The first crop of 400,000 acres of alfalfa exported 100,000 tons, about 3 The second crop has also exported 80,000 tons, which is about 200 million yuan, and the third crop is also being harvested.
At the same time, the new alfalfa No. 1 seeds are about to be harvested. ”
Qu Yang also looked confident, and said: "Tianhe is also well-funded, including Tianyu No. 1, Tianmai No. 1, Tiandou No. 1, and vegetable seeds. This year's cumulative sales have just exceeded 6 billion. Yuan.”
Even though they had known this number for a long time, several people were still in a daze.
Coupled with Fengkai Agricultural Machinery, Quanwang Biotech, and the prospering Hexi Dairy Industry, Jiahe is bound to achieve operating income exceeding 20 billion yuan this year.
Maybe it’s really time to have a showdown with the New Hope Group.
The profits of Alfalfa and Tianhe are also extremely high, and they will maintain high growth in the next two to three years.
Guo Yang said: "There is also some good news. The bank has lowered Jiahe's loan interest rate, and supporting preferential policy documents for soybean planting, acquisition, processing, export, etc. have also been released. Coupled with the operation of the entire industry chain, In fact, the losses will be less than expected."
Qu Yang and Xie Shijie also laughed. Jiahe has many large investment projects, including Qinghe, Quanwang, Hexi, Shahai, and the group headquarters. Keep investing.
Therefore, loans are necessary. The interest rates on agricultural loans are already low and have dropped again. This is all goodwill released by the upper management.
In fact, the Ministry of Agriculture consulted Jiahe for its opinions when formulating policies.
Being able to participate in such standard-level decision-making, Jiahe’s status is clear at a glance.
It is almost 10 o'clock in the evening, the sun is setting and the moon is rising, but there are not a few people in Jiahe Group who stay and work overtime.
Guo Yang can only compensate from the welfare level.
During this period, he also kept working overtime for a long time. He went to bed at 11 o'clock in the evening and started at five or six in the morning. Work took up most of the day.
This will also be the norm for some time to come.
After finishing their work, several people went to the canteen to have some midnight snacks. Xie Shijie suddenly said:
"Boss, I applied for the MBA at Guanghua School of Management and passed the exam. I will be free in the second half of the year. You may have to go to class more often.”
Guo Yang couldn’t help but be stunned as he chewed the cucumber in his mouth. Qu Yang and the other teams who followed him also looked at Xie Shijie in surprise.
You are so busy at work, do you still have time to study?
After thinking for a while, Guo Yang turned to look at Ning Xiaojing aside and said: "Sign up for me too, and others who are interested can also apply. My plane can accommodate several people, and they will take turns when the time comes. Replenish energy."
Someone asked: "Boss, can I apply for Cheung Kong Graduate School of Business?"
Guo Yang smiled and said: "It's okay, as long as you study, the group has always supported it. Even if you get admitted to Harvard Business School, I will still reject you.”
Perhaps stimulated by the newly launched leadership development program, Jiahe’s leaders have a strong desire to learn.
Guo Yang thinks this is a good thing.
The existing talent pool is not enough to cope with complex international situations.
…
At the same time, while Jiahe was low-key but quickly launching its layout in the grain processing field, domestic discussions about soybeans did not stop.
Even the crazy investment and mergers of the four major grain merchants triggered a new craze.
One day in June,
Albert Wiesel, the global CEO of Bunge Group, publicly expressed his optimism about China’s soybean crushing market.
Albert said: "The development of China's pig and broiler breeding industry requires a large amount of soybean meal, and the rapidly growing consumer demand has made China the largest soybean importer.
In the next 10 years, China will Soybean imports are expected to increase by more than 60 million tons on the current basis, which is more than Argentina’s soybean production.”
Bunge has also taken real-money actions.
It even bypassed policy review and set up a "shell company" to build a soybean processing plant in China.
After investigation by domestic professional reporters, a bright sign was erected on a factory office building: Zhenhua Grease.
Zhenhua Grease is also on the address book.
However, for such a company with a national name, there are many foreigners in the factory.
In fact, Zhenhua Grease is the fourth grease processing plant secretly established by Bunge in the country.
It built the factory in the name of an investment institution in Shanghai to avoid foreign investment review, and then Bunge acquired it as a leasing operation.
In the official information about Zhenhua Oils and Fats released by Jiangsu Province, there is no trace of Bunge at all.
However, the nominal investor of Zhenhua Oil and Fats has undergone an unnoticed change.
The investors behind it have also remained silent, undoubtedly pushing the matter to a higher climax.
“Zhenhua Oil? This name is really profound!”
"Everyone with a discerning eye knows there is a mole."
"Don't experts say there is a serious excess of soybean crushing capacity? Why are foreign investors still building factories? Come on, come out and take a few steps!"
" I remember an official from the Department of Agricultural Economics of the National Development and Reform Commission said: The problem with soybeans is not that big, why don’t we take a step forward?”
“It’s over, from now on it will be genetically modified soybean oil.”
…
All kinds of public opinions come one after another.
Reports on local soybean investment in various local media have been submerged in this wave.
At this time, the officials of the Ministry of Agriculture were also tortured endlessly, but you asked me to finish the stall left by the National Development and Reform Commission.
But we had to respond.
Soon, official media such as Farmers Daily and Xinhua also announced the soybean investments of a number of domestic companies, as well as a series of policies.
Among them, Jiahe Group’s series of investment lists have caught the attention of the Chinese people.
Improve and update varieties;
Establish a soybean planting base;
Large-scale land management;
Invest in soybean processing plants;
Interaction between upstream and downstream of the industrial chain;
Risk aversion in the futures market.
Northeast China, North China, East China, South China, and West China, Jiahe’s layout covers all regions across the country.
Domestic soybeans are expected to regain lost ground!
People counted the amount of their investment in detail, and the long list of numbers was dazzling.
A knowledgeable calculation shows that according to the current production capacity design, the figure of a loss of 18 million yuan per day of processing is widely circulated in all walks of life.
“Jiahe Group is risking its life to fill the pit of domestic soybeans!”
“Jiahe is obviously forced to come out. A good company will not be defeated by some people in the end. Get rid of it!”
“I declare that Jiahe is the last guardian of domestic soybeans!”
“How can Jiahe Group hold on to the last fortress of domestic soybeans?”
“Buy Jiahe’s cooking oil!”
“A real national brand!”
“I have decided to only eat Jiahe’s cooking oil from now on.”
Jiahe Cereals and Oils Even before it goes online, it has been enthusiastically received by the public, and they are all looking forward to the launch of Jiahe Edible Oil.
The media also flocked to Jiuquan, but Jiahe kept a consistent low profile and Guo Yang did not show up.
In the futures market, influenced by Jiahe Group, the September and November contracts of Soybean No. 1 also began to strengthen.
Just based on this loss method, the outside world is speculating on how long Jiahe Group can last?
How can Jiahe Group lead domestic soybeans to break through?
Jiuquan, Guo Yang, Xie Shijie, Yan Qun and others are discussing seed production bases and new saline-alkali land improvement projects.
It is already July. After the last crop of crops is harvested in Jinta Grassland in September, it will be plowed and left fallow for next year's rotation of corn production.
The new saline-alkali land improvement project has also been determined, and it is still in Jiuquan. The only thing that needs to be confirmed now is how much area it will take.
200,000 acres, 300,000 acres, or even 500,000 acres?
While everyone was expressing their opinions, Ning Xiaojing, who showed her smooth and white thighs, hurriedly knocked on the door and walked in.
“Boss, Liu Xiang broke the world record!”
(End of this chapter)