Chapter 286 Pyrethrum
“Hoes are not even fully popularized in the Democratic Republic of the Congo, so what kind of agricultural machinery can you sell?” Guo Yang muttered: “It’s better to hunt lions.”
The Democratic Republic of Congo is extremely rich in wildlife. You can often see various wild animals for sale on the road leading to the airport.
Guinea fowl, pythons, muntjacs, bamboo rats, falcons, eagles, pangolins, squirrel monkeys...
These are all brought back from hunting by some locals to sell.
To be honest, Guo Yang sometimes wanted to try this kind of hunting feeling.
Yu Honghai said: "If the Democratic Republic of the Congo is not enough, you can go to other countries. South Africa, Nigeria, Kenya... there must be demand for agricultural machinery."
Guo Yang was stunned, and suddenly thought of the Ministry of Forestry Now also in Kenya.
"How about we go to Kenya for inspection together? The leader should still be there."
"Let's go then?"
"Let's go."
With a few words, Guo Yang made up his mind.
First, he contacted the secretary of the Forestry Department and informed Jiahe that Jiahe would go on an inspection. As for the leader's itinerary, Guo Yang originally had no intention of asking.
However, the secretary informed the forest department that they had only arrived in Kenya today, and there would still be at least one or two days left.
This made Guo Yang even more certain that Lin Bu's phone call was probably a hint.
But you can’t just go there directly. In addition to buying tickets, the plantation’s planning, communication, recruitment and other matters must be arranged.
The predecessor of the Chinese Academy of Tropical Agricultural Sciences was the South China Tropical Forestry Research Institute. It was first located in Yangcheng and later moved to Danzhou, Hainan.
In 2005, China decided to assist in building an agricultural technology demonstration center in each of 14 African countries to improve seeds, teach technology, and train personnel.
The implementation task of the Agricultural Technology Demonstration Center in Congo (Brazzaville) is undertaken by the Institute of Thermal Sciences.
The implementation location is Brazzaville, the capital of Congo-Brazzaville, across the river from Kinshasa, and there are ships between the two places.
Jiang Changshun is the director of the project office of the Congo-Brazzaville Agricultural Technology Demonstration Center.
The demonstration center in Congo-Brazzaville took two years to complete the site selection, and the construction has just started. Today, Jiang Shunchang was also invited to Kinshasa.
There are two senior agricultural experts from the Academy of Thermal Sciences who came with the Ministry of Agriculture this time. One is Li Yi from the Coconut Research Institute. He is very young, about 30 years old.
The other one is Deng Mingke, an old expert from the Rubber Research Institute. He has gray hair and has retired. This time he was also invited by Jiahe with a lot of money.
When Guo Yang and Yu Honghai walked into the conference room, the three of them were still having a heated discussion on planning issues.
"Boss Guo, you came just in time." Li Yi still had a pen in his hand, and several maps of the Democratic Republic of the Congo were spread on the table.
“Are oil palm trees planned to be introduced from other areas?”
Guo Yang was silent for a while. What do you say? Jiahe is going to cultivate it by itself?
“What is your suggestion?”
“It is definitely the most convenient to introduce seeds and buy seeds and seedlings.” Li Yi said.
"However, without artificial intervention, the natural reproduction of introduced oil palm trees may be inferior to the previous generation." The gray-haired Deng Mingke also said: "Boss Guo also has a breeding background, so he should know better."
Jiang Changshun said : "Then if you breed by yourself, the cycle will be long."
"Long?" Deng Mingke snorted coldly, "No matter how long it takes, it will be as long as rubber breeding! We have been doing it for decades before we overturned it. He concluded that "North latitude 15 degrees is not suitable for planting rubber trees."
Jiang Changshun curled his lips and said: "Well, knowing that rubber is willing to endure hardship, many people started to engage in rubber tree breeding when they started working. You may not be able to produce results until you retire, and you will always be like this. Only after you retire can your descendants compile the information and apply for the first prize of the National Science and Technology Award.”
Deng Mingke blew his beard and stared, not sure whether he was angry or proud. .
"In the past 35 years, the Institute of Thermal Sciences, Hainan, Yunnan, and Guangdong have been engaged in 35 years of research. After a rubber tree is planted, it takes 8 years to tap, and another 5 years before it enters the peak production period and produces rubber. The cycle lasts for 30 years...the long breeding cycle is like an endless marathon."
Deng Mingke recalled something, then turned to look at Guo Yang and laughed.
“I’m going too far, I’m going too far.”
“Having said so much, I still want Jiahe to be prepared for long-term breeding. Large-scale oil palm plantations will not happen in a short time. "It can be built."
Guo Yang said with a smile: "That's for sure, this is Jiahe's housekeeping business, and we will definitely not give up, not to mention that we have established a joint experimental station with the Coconut Research Institute."
"That's good, that's good."
Guo Yang thought about the points that several people were arguing about, and said: "Actually, I don't plan to introduce seeds from other areas."
This is the next round. When Deng Mingke and the others were stunned, Jiang Changshun said: "Mr. Guo, you don't have to worry about the seeds and seedlings. Xiao Li and the others have contact with many plantations in China and Indonesia, so it is very convenient to buy them."
"The transportation is too far." Guo Yang said: "And it shouldn't be possible to buy so many seedlings for a while."
Jiang Changshun looked at Li Yi, he was the most professional here, and hoped that he He could dissuade him, but Li Yi shook his head.
"Seedlings are in short supply. Jinmen Julong Group also launched an oil palm plantation project in Indonesia last year covering an area of 3 million acres. Although it is exaggerated, there will definitely be tens of thousands of acres in the early stage. Even if the seedlings are suitable, they will be supplied. No.”
“That’s really difficult.”
“It takes 10 years to plant all the seedlings on a 100,000-hectare plantation, which is considered very impressive. "
"Mr. Guo must make long-term plans."
Guo Yang actually already has an idea in mind, and said: "I plan to collect seeds from some local oil palm trees and cultivate seedlings. .”
"Is there a breeding screening?"
"I will also take some of them and plant them directly!"
A few people were shocked. Jiang Changshun said: "What if it is a thick-shelled and non-commercial variety?" What about the shell seedlings? You can’t tell the quality of the oil palm until it bears fruit.”
“It’s okay.” Guo Yang smiled, “Just cut down the tree.”
The three of them were silent.
Cut it off?
This is really easy to say.
But the cost here is much lower.
After a while, Deng Mingke said: "You remind me of the first year I came to the Hainan Rubber Garden. After the typhoon, many rubber trees were broken at the waist and the garden was in a mess. There was no time to clean up the rubber garden. and residential buildings, the experimental station received a task from its superiors, requesting to collect 200,000 kilograms of rubber tree seeds from the 500-acre rubber garden for the agricultural reclamation department to cultivate seedlings.
So the young ones climbed the trees to pick fruits, and the old ones cleared the vegetation. The young one lay on the ground picking up fresh seeds and fought hard for ten days before completing the task.”
"Here we go again." Jiang Changshun laughed and said: "You are old. Now that you are retired, you always start to reminisce about the past."
Deng Mingke laughed and said: "This is just based on feelings. If Jiahe adopts such a According to the planting model, many excellent varieties can be selected after the first year of flowering and fruiting. "
"It takes one year to raise seedlings and three years to bloom. Even so, it will take four years."
“Four years is not a long time.”
“Jiahe is indeed the leader in the domestic seed industry and has its own breeding ideas.”
"This is rich and powerful!"
Seeing the heated discussion among several people, Guo Yang did not interrupt, but looked at the planning framework.
Fruit trees, grain, oil palm.
The three target plots were marked, and some design parameters for the nursery were also written on the draft.
Rectangular planting.
The planting density is 8 meters × 9 meters.
150 plants/hectare.
The average annual fruit production is more than 20 tons/hectare, the average annual crude palm oil production is 4~4.5 tons/hectare, biodiesel...
“If you want to cut down trees, it is better to plant them densely. "Li Yi said with a smile, crossing it out and rewriting it.
Guo Yang thought about the parameters in his mind and said, "Just follow this model."
Li Yi hesitated for a moment, and seeing Guo Yang's firm expression, he said, "Okay, then I will adjust the layout of the nursery."
Guo Yang communicated with the three experts for a while, and the plan naturally became more and more detailed. Okay, but except for Kinshasa and Matadi, Mbandaka cannot go yet because the security risk is too high.
So, the short-term goals are food in Kinshasa, fruit trees in Matadi, and oil palm in Mbandaka, which can only be pushed back.
In conjunction with the subsequent breeding, Guo Yang and three experts emphasized the downward direction to avoid deviation. At the same time, we also sincerely request the Institute of Thermal Sciences to introduce relevant senior talents.
February 20th.
Guo Yang, Luo Xiu, Yu Honghai, and Hatu got on the flight to Kenya.
“Even the first class cabin on this flight is not that good. You still want your own plane to be comfortable!”
“No.” Yu Honghai said: “Chief Eddie agreed. This time The main types of wood are ebony, red lacquered wood, rosewood, and yellow lacquered wood."
"So refreshing?"
"There are also four kinds of wood, Congolese wood," Yu Honghai pondered. Next, "The main thing is that I want food. Food prices seem to be rising faster and faster in the past two days."
"I always feel like I've forgotten something."
Guo Yang frowned.
The main reason is that the network in the dry farming center is intermittent, power outages are also common, and it is very slow to understand the information channels from the outside world.
When we arrived in Nairobi, the capital of Kenya, before we even had time to appreciate this plateau city, Gaude called.
His voice was full of excitement, and his excitement was palpable.
The main reason is that the Chicago futures market has ushered in a wave of gains. The March, May, and July contracts of corn and wheat have risen one after another, ranging from 12 to 20 cents. Wheat even came close to the daily limit at one time, and only soybeans fell slightly.
The May corn contract has reached US$2.3416 per bushel, which is roughly equivalent to US$187.3/ton, which is 1,450 yuan/ton when converted into RMB.
Slightly higher than domestic prices.
However, in November 2005, the international corn price was only US$96 per ton.
In more than a year, the increase has almost doubled.
Jiahe Grain and Oil's profits were also increasing. Amap wanted to withdraw profits, but Guo Yang chose to increase the position.
Because the communication with Gaode also included two important pieces of information.
The dollar depreciated.
HSBC announced that its home loan mortgage business in North America suffered huge losses and wrote down related assets.
The subprime mortgage crisis has gradually emerged.
Even though food prices have risen sharply and oil is also rising, Guo Yang still believes that this is just the beginning of the rise in commodities.
Although the shadow of the international food crisis has appeared, it has not yet broken out.
The CIF price of corn in the Democratic Republic of the Congo is 400 to 500 US dollars, gritting one's teeth, the money earned from mining can still buy some food, and the FAO is still playing its role.
The end is not yet reached.
Guo Yang looked at the street outside the window while thinking.
Nairobi is known as one of the most leading, fashionable and modern cities in Africa. It has the reputation of being the little Paris of East Africa and its official language is English.
Although it is above the equator, it is located on a plateau and has a mild climate. It is much more comfortable than in Kinshasa. The urban construction is much better, and there are many people coming here for tourism.
There are also many restaurants from the Middle East, India, China, Japan, Southeast Asia and Europe on both sides of the street.
When he arrived at the hotel, he made a phone call. Not long after, Guo Yang met Lin Bu alone in a small conference room.
The two had some exchanges on agriculture in Kenya and Africa.
China is Kenya's largest engineering contractor and an important source of direct investment.
In agriculture, the Ministry of Agriculture of the two countries signed a Memorandum of Understanding on Cooperation in 2002.
However, China has few investment projects in Kenya’s agricultural field. There are only a few individual industrial and commercial households engaged in Chinese farm operations, growing spinach, beans, cucumbers, peppers and other vegetables for domestic companies, supermarkets and restaurants. Supply. To be honest, Kenya's economic foundation is far better than that of the Democratic Republic of the Congo. Its geographical characteristics are similar to Kunming, with cool seasons. It is one of the few areas in the world suitable for growing horticultural crops.
It is also close to the two major consumer markets of the Middle East and Europe. It only takes 9 hours to transport agricultural products to Europe by air, supplemented by sea transportation.
Black tea, coffee, tropical vegetables, flowers, and fruits are representative products, especially Kenyan black tea and mocha coffee, which are world-renowned.
But the international market is oversupplied, and Africa's coffee, tea, cocoa and rubber have lost their original dominant positions.
Low prices and slim profits.
The flower industry is Kenya’s new chosen direction.
Linbu said: "Except for engaging in a few sectors such as food and coffee, Kenya has implemented a market-oriented, international and privatized economic system.
Private trade and imports of wheat and corn are allowed, and even agricultural machinery imports are subject to low tariffs or even duty-free. The main opponents are large foreign-funded enterprises from the United Kingdom and the Netherlands. Currently, there is a lack of voice from domestic agricultural enterprises. "
Guo Yang smiled and said half-truthfully: "If we had known that the conditions in Kenya were so good, Jiahe would have come long ago. ”
“It’s not too late. "
The Ministry of Forestry hesitated and said: "In order to develop export-oriented agriculture, Kenya has to accept conditional loans and assistance from the International Monetary Fund and the European Investment Bank, and its economic foundation is very fragile. ”
Vegetable and flower seeds, grain and agricultural machinery trade…
Guo Yang was refining key information. These were areas where Jiahe could intervene.
As for the problems faced by Kenya, they are common problems of many export-oriented developing countries.
Carrying a heavy burden of foreign debt, economic development lacks stamina and motivation.
In other words, the crisis may be passed on to developed countries at any time.
For example, Kenya cannot escape this food crisis.
Guo Yang thought for a while, then smiled and said: "Wherever Lin is going next, I might as well follow you to get a bargain."
Lin Bu smiled, "Jiahe lacks talents in this area Ah!”
“It’s quite lacking.” Guo Yang said, “Can the Ministry of Forestry recommend some to Jiahe?”
“The ones I know are all engaged in scientific research and are not suitable. Jiahe." Lin Bu thought for a moment and then said:
"The Ministry of Agriculture of Kenya will take us to inspect the company in the afternoon. I have added you to the list. You can go and see if you can find someone."
"That's good."
"Let's do this for now. I'll let you know later."
Guo Yang hesitated for a moment, then said: "Min Lin has recently noticed that the United States has The subprime mortgage crisis?”
“You know, why, Mr. Guo has some ideas again?”
“This time is probably just a precursor, and the subprime mortgage crisis will become real in the next few months. If the outbreak occurs, Western University will definitely divert the financial crisis through additional currency issuance and depreciation, commodity price increases, global inflation, etc. ”
Lin Bu pondered for a moment, "You're talking about grain?"
"Yes."
"Domestic grain prices are very stable. It is expected that after the winter wheat harvest, grain prices may drop."
"The main reason is that subprime mortgages will cause financial panic, and a large amount of funds will withdraw from the virtual financial market and enter the real commodity market to avoid risks." Guo Yang paused for a moment and then said: "Or it may be in the form of 'hot money' The atmosphere was silent for a moment.
Lin Bu said: "I can only tell you that in terms of food security, there is no problem in the country."
"We can cooperate with public opinion!"
Guo Yang was almost driven away He was out, but he still felt that this was an excellent opportunity to counterattack.
Western University's bioenergy plan provided the fuel for the hype, swapping corn for oil, which itself is creating worldwide food shortages.
Corn was used for oil refining, resulting in insufficient supply and a sharp rise in prices, which subsequently led to a sharp rise in the prices of wheat, soybeans and other agricultural products.
Funds escaping from subprime real estate will once again add to this momentum.
It’s not that there is no food on the market, it’s just that people can’t afford food.
This is the plan of international grain merchants.
And the seemingly doubling of food prices is just the beginning, and a lot of funds have not yet entered the game.
The high point won’t come until 2008.
There is still more than a year to go.
After returning to the room, Guo Yang began to think about how to maximize profits, make a fortune by hoarding grain, and make a fortune by going long in futures.
Can I make another profit from my short position?
Before he could think about the result, there was a knock on the door. It was Yu Honghai, Luo Xiu and Hare.
“Boss, what are your plans for the afternoon?”
"I want to go on an inspection with the leader." Guo Yang looked at Yu Honghai and said with a smile: "The opportunity has come to sell agricultural machinery. Kenya is a big market."
Yu Honghai was also unambiguous, "Okay, then I will do it this afternoon. Take them both to have a look."
"Inquire about other situations as well."
"Be careful."
During the afternoon inspection, the leader of the team was Oubre, the head of the Kenyan Ministry of Agriculture, who was chatting and laughing with the Forestry Department at the front.
Guo Yang devoted all his energy to the agricultural situation along the way. Thanks to the fact that many signs were in English, he learned a lot of information.
Kenyatta University of Agriculture and Technology’s white corn demonstration area, water-saving irrigation experimental field, family farms in Thika area and agricultural service team operation site.
New Holland Large Agricultural Machinery, Rift Valley Machinery, Carter Construction Machinery
Kiambu Region Dairy Farm Pasture Processing and Milk Production, Flower Farm, Horticultural Products Plantation.
and the Pyrethrum Industrial Park.
Electricity, roads, telephones, water supply systems, calls, maintenance services... the infrastructure is much better than that of Kinshasa.
Some large farms operate over thousands of hectares.
Guo Yang felt that this trip was worthwhile.
If Ethiopia, Uganda, and Tanzania have this level, they will definitely be agricultural markets with great potential.
If grain production in these areas increases significantly in the next year or so, will it affect international grain prices?
Whether it happens or not, this will not affect Tianhe's cultivation and promotion of improved seeds here.
Guo Yang also took this opportunity to reach a verbal cooperation agreement with Kenyatta University of Agriculture and Technology.
In the future, scholarships will be established in professional fields such as agronomy, chemistry and economics to encourage outstanding students to work in the company's scientific research and production fields in the future.
In addition, Guo Yang also had a strong interest in pyrethrum.
Pyrethrum, the word "pesticide" in its name is worthy of its name, and the insecticide and fungicide prepared with it is as effective as chemical pesticides.
Its flowers, roots, stems, and leaves all contain pyrethrin, which is a nerve agent.
It has good killing effect on bedbugs, lice and fleas. It is a powerful tool for killing aphids, mosquitoes, cabbage caterpillars, cotton bollworms and other pests.
At the same time, mosquito coils made of pyrethrum leaves can repel mosquitoes and flies.
It is currently the only insecticidal plant in the world that has achieved intensive artificial cultivation.
This is similar to the sophora vine extract extracted from Jiahe’s current soregrass.
Both are poisonous and can be quickly decomposed by sunlight or rain. There are no harmful substances remaining and no pollution to the environment.
The difference is that pyrethrins rely on paralyzing the nerves of cold-blooded animals.
At the same time, pyrethrins are one of the few pesticides approved for use in organic farms in Europe, the United States, Australia, Japan and other countries.
Crysanthin is only used in small quantities in China, and it has not been certified by organic farms for the time being.
This aroused great interest in Guo Yang.
Excellent germplasm resources!
Guo Yang did not hide his interest in the pyrethrum industry, and even expressed interest in investment to the Kenyan Ministry of Agriculture.
But the official expression is very ambiguous. It probably means that external investment is not welcome, which puts Guo Yang in trouble.
It wasn’t until I communicated with experts from China that I learned that Kenya’s pyrethrum industry is monopolized by the entire industry chain of the official organization ‘Pyrethrum Committee’.
In Kenya, any business doing pyrethrum requires a license, and the chances of a company getting one other than the commission are nil.
The total market value of pyrethrum in the world reached US$5 billion in 1995, and is now close to US$10 billion.
From the 1960s to the 1990s, Kenya’s pyrethrum market share accounted for more than 90% of the world market.
Such high benefits.
No wonder they play monopoly.
However, Kenya's pyrethrum production fell off a cliff in 2004. The official reason was that there was oversupply in the international market.
Guo Yang didn’t believe it.
Most likely the monopoly has collapsed.
The facts were not beyond Guo Yang's expectation. Only after they met with Yu Honghai and the others in the evening did they learn the grassroots information.
Some family pyrethrum growers near the capital have been delayed in payment for as long as four years. It is true that the government completely ignores the interests of farmers.
causing farmers to switch to other crops.
Coupled with the vigorous development of Australia and three other countries on the East African Plateau, Yunnan Province in China has also introduced the pyrethrum industry.
With internal and external attacks, the collapse of Kenya’s pyrethrum industry should be within a few years.
Other industries are not as good as Guo Yang’s inspection today.
After trade liberalization, exporting large amounts of primary agricultural products has not given Kenyans the economic returns they deserve.
Poverty, hunger, unemployment, political corruption, drought...this is the norm at the bottom.
“But Kenya does have a huge agricultural market, especially the agricultural machinery market.” Yu Honghai summarized what he had seen today.
“Small and medium-sized tractors, diesel engines, generator sets, water pumps, water-saving irrigation, mills, rice mills, and oil presses all have good market demand.”
“Large tractors The annual demand exceeds thousands." Guo Yang also smiled: "There is also great potential for seeds, forage, and grain."
"Do you want to set up a trading company here?"< br>
"Yes, it is best to include all four East African countries. In addition, we can cooperate with the agricultural universities here. In the future, the main middle and senior management employees will still be local people." Guo Yang said.
“Can it work?”
“I have to give it a try.”
When he was resting at night, Guo Yang looked at the dazzling array of breeding plans in the seed store, and A new option has been added.
Pyrethrum.
Yu Qin will definitely like it very much.
If you can’t do it in Kenya, you can go back to China, or you can do it in Tanzania.
In short, we need to add more protection to Jiahe’s organic farm.
Building an organic banana plantation in Matadi should knock on Europe’s technological blockade.
(End of this chapter)