Chapter 357: Collapse
After all, the 158-year-old Lehman Brothers is not a cat with nine lives.
The financial tsunami set off by Lehman Brothers swept most countries and regions around the world.
The global financial crisis is like a snowball. As it rolls from the top of the mountain to the unknown foot of the mountain, fresh snow is constantly added. It is difficult to predict how big the snowball will be in the end.
Lehman Brothers filed for bankruptcy protection, Merrill Lynch was acquired by the Commonwealth Bank, and the Commonwealth was forced to rescue the insurance giant AIG...
Wherever the financial tsunami swept across, weak companies fell to the ground one after another.
But more companies are struggling between life and death.
The financial crisis that originated on Wall Street has hit the nerves of the world like a tsunami, with unprecedented breadth and depth.
In China, at the end of the three-day Mid-Autumn Festival holiday, the stock market and banking sectors plummeted across the board, and their performance can only be described as horrific.
This is not good news for domestic foreign trade import and export.
Sluggish foreign demand is not good for exports;
But it is also not good news for some crushing companies that want to import soybeans.
Although U.S. soybeans have fallen naturally, the price is still several grades higher than that of domestic soybeans.
Especially since the RMB has depreciated at this time, the purchasing power has declined.
Faced with the booming harvest scenes in domestic grain-producing areas, these companies have shut down.
But the market will not be kind when it abandons a person. The production capacity that has not been started has allowed the market vacated by these companies to be quickly divided up.
And with the launch of new domestic beans, the prices of additional products such as edible oil and soybean meal are still falling.
Fall!
Fall!
It plummeted.
No one expected that the market changes would come so violently.
No one dares to imagine that when the purchase price of domestic soybeans falls below 1.5 yuan/catty, or even 1.3 yuan/catty, farmers’ potential reluctance to sell has not yet been stimulated.
Some people can’t understand.
The State Grain Administration seems to be indifferent to all this.
Facing the lowest state reserve purchase price called for by the market, the Grain Bureau's performance appeared to be very slow.
Director Nie said firmly: "This sacrifice is worth it. What the farmers sacrifice for their short-term interests will be the pricing power of domestic soybeans, and even more possibilities."
"And if it is not done sooner, Sell it at a reduced price and consume the factory orders first, and the subsequent market will be even more cruel!”
Secretary Nie remembered the huge soybean production figures this year and knew how difficult the matter was.
“However, the pressure from the outside is too great.”
“The other side of the ocean is already interfering.”
"There is also pressure from the military."
My neighbors are hoarding food and I am hoarding guns. The food hegemony of the United States relies on its tyrannical military strength around the world.
Bureau Nie snorted coldly, "We can't interfere in other parts of the world, but in domestic development, if we are still controlled by others, then development is nothing!"
"He is not trying to subsidize the farm. Lord?”
“Let him subsidize enough this time, and we won’t complain to the WTO.”
Soybeans are not the only agricultural products that the United States has lost its export advantage. Corn, wheat, cotton, alfalfa, etc. have all suffered heavy losses in the super weed and red imported fire ant incidents in the past two years.
As far as he knows, Lao America’s move to acquire Commonwealth Bank and save AIG triggered a chain reaction.
Farmers stage the largest demonstration since the crisis.
Thousands of farmers took to the streets in California, Arizona, Illinois, Mississippi, New Orleans, Texas and other regions.
A unified slogan was adopted.
We also need assistance.
It was the federal connivance that allowed genetic modification to get out of control, triggering this crisis that has lasted for a year.
The farm suffered heavy losses.
If we do not receive assistance, a large number of farms, agricultural product processing factories, and foreign trade export companies will collapse.
There are at least several million more unemployed people across the country.
The secretary thought for a while and asked: "How should the purchase price of the State Reserve be determined this year? There are calls for this in the market, and the expert group is also urging it."
"Do you think the price set by the expert group is reasonable? "
Bureau Nie stared hard, with such sharp eyes that the secretary could feel the anger. He knew that the experts' pricing could not satisfy the upper management.
It also cannot satisfy some domestic companies, such as Jiahe, Jiusan, and National Grain Reserves. Even the National Grain Reserves at this time does not want to see the storage price be too high.
As for the expert group... Monsanto, Wilmar International, and the four major grain merchants have many mouthpieces in it.
Last year, the purchase price of soybeans from the State Reserve was 1.85 yuan/jin, and this year the tentative price has dropped.
1.7 yuan/jin.
It is much higher than the current market price of 1.3~1.5 yuan/jin, and even at 1.3 yuan/jin, there is still room for decline.
If the State Reserve really prices 1.7 yuan, North American soybeans still have no advantage, but South American soybeans have a lot of profit potential.
This price is impossible to agree to.
First of all, it is impossible for the National Grain Reserve to agree to this, this is a complete loss-making transaction!
Obviously the expert group also knows that they just want a name, a name for external publicity.
If the purchase price of the state reserve of 1.7 yuan/jin is really reported, even if it is false news, even if it needs to be considered, farmers will have higher expectations.
The acquisition process of Jiahe, Jiusan, Guofang and other companies will be blocked.
North American soybeans still have the possibility of entering the domestic market.
This purchase and storage price of 1.7 yuan/jin is just a cover. As long as the State Grain Administration moves, it may become a knife for others.
This is not a question of whether it is reasonable or not at all.
The secretary was sweating slightly on his forehead and regretted his rashness.
"I...uh..."
Director Nie's eyes were sharp, "Just pretend this didn't happen. I don't know, everything in the domestic market is normal, and there is no need for the State Reserve purchase price this year. ”
"Understood."
The secretary nodded slightly, knowing that he had passed this level.
……
In the north in late September, the autumn air is crisp and clear, and the harvest of food makes farmers even more happy.
In a farm in Shandong Province.
Wang E, a large grower, is very satisfied with this year's harvest. Just like last year, her 1,200 acres of land still did not disappoint her.
However, the price of soybeans is not booming this year. Compared with last year, it can be said that it has dropped as low as grandma’s house.
However, if a soybean yield of 500 kilograms per mu is calculated, and subsidies are included, the income per mu can still be 700 to 800 yuan.
The benefits of planting rice before switching to soybeans are still far beyond that.
Moreover, I wasn’t even surprised when I was sowing, but when I harvested I realized how many people were planting soybeans this year!
In this Yellow River Delta, besides alfalfa, there are soybeans.
A field is connected to a field, and a village is connected to a village.
At this time, even a fool can realize that the market situation this year will not be good.
After harvesting the last piece of land, Wang E called the purchaser.
The purchaser is naturally Jiahe Cereals and Oils, and all bases nearby have signed contracts.
After a while, the phone was connected, and before she could ask, a very confident young man told her everything she wanted to know.
"Hey, Sister Wang, do you want to sell soybeans? Today's purchase price is 1.41 yuan/catty."
Wang E said dissatisfied: "Xiao Yuan, why has the price been reduced again? In the past few days, the price has been reduced. It’s still 1.45?”
“Sister Wang, there’s nothing we can do about it. The market situation is like this. If you don’t believe me, just ask, which one has Jiahe with a higher price? Is it because of us? The transportation here is convenient, not far from the factory, otherwise the price would have to drop."
"Sister, I want to ask you something, can the price increase later?"
"If you can't get up, Sister Wang, just believe me this time. Sell it early and sell it early. I know your cost. Production materials, labor, and land rent together can cost up to 600 yuan."
Xiao Yuan said: "You have at least a profit of more than 150 yuan per mu, a total of 180,000 yuan, which is a lot of money."
Last year, Wang E's profit per mu could reach four to five hundred yuan, but this year it has been cut in half.
This really made her feel pain for a while. But she’s been farming for so many years that she knows the last year is the dividend of being a pioneer.
Not everyone has the same courage as her to convert 1,200 acres of rice fields into dry-fed soybean fields.
This year’s bonus is gone.
This is the ability of Chinese people to follow the trend, especially in industries such as farming where the threshold is not high. As long as the profit is high enough, you can be saturated in one or two years.
But he could still make money, gritting his teeth, Wang E sold the soybeans to Jiahe as agreed.
“This kind of thing spreads too fast.”
"Xiao Yuan, has your company launched any new varieties? Can you recommend two to me?"
"Sister Wang, I am not from a seed company either."
"You Help me ask." Wang E thought for a while, "Xiao Yuan, I don't have a partner yet. I will introduce you to a girl someday."
"Sister, you..."
" If you miss this store, you won’t have this opportunity. That girl is so cute and cute.”
"Sister, I'll ask you about the seeds. You don't need to introduce anyone. I'll come and collect your soybeans early tomorrow morning."
In a temporary warehouse at the port.
The bulk grain transport truck unloads quickly with the assistance of the loading and unloading truck.
Yuan Zifang, who came from a small town in the south, couldn't help but mutter after hanging up the phone.
“In the two years since I came to Shandong Province, I have never seen a cute girl. Wang E is 1.8 meters tall, and she is not much smaller than she said.”
"However, once the soybeans from Wang E and other large households arrive at the port, the first cargo from Mayong can depart."
Yuan Zifang also gossiped a lot about the current domestic soybean processing situation.
The soybean processing plants along the northern coast are basically occupied by domestic soybeans.
Even Bunge’s three soybean processing plants have been destroyed. It is said that the leaders of several factories even plan to purchase soybeans through Jiahe’s channels.
No one wants to die if they can survive, especially in today's financial turmoil, with closed factories everywhere along the coast.
Management is also a human being. As long as foreign investors still want to develop domestically, they will not abandon these fundamentals.
Although edible oil and soybean meal are still at low prices, the price reduction of domestic raw materials has provided another way for processing plants to survive.
Hold on tightly, so that the hundreds of millions and billions of early investments will not be completely wasted.
Two days later,
Yuan Zifang witnessed with his own eyes the first bulk carrier loaded with soybeans and sent to the south.
This may also be the first soybean ship sent from Shandong Province to Guangdong Province in recent years.
Times have changed.
Those who refuse to change their minds can only drown in the tide.
…
In Jiuquan at the end of September, the cold wind has gradually begun to blow, the red hemp flowers have long since withered, and the bees are gradually hiding in the beehives.
But the first batch of sea buckthorn fruits turned red, adding a mysterious color to the Gobi.
Looking from a distance, it is red. Looking up close, it is crystal clear and looks like a small orange.
Quanwang Biotech and Jiahe Food Research Institute immediately came to collect raw materials, component testing, and product development, everything was in order.
Guo Yang also tasted the unique sweet and sour taste of ripe sea buckthorn fruits in the office.
He doesn’t like eating sour food very much, but this time the sea buckthorn fruit is an exception.
Warriors who are not afraid of sandstorms and droughts, strong vitality, and the ability to conserve water, all of which make the sweet and sour flesh of sea buckthorn contain the essence of nature.
A phone call interrupted Guo Yang’s tasting.
Guo Yang glanced and saw that it was Lu An from Jiahe Grain Youmayong Factory. He raised his eyebrows. Normally Lu An would not call him.
"Hello."
"Boss, Zhiyuan contacted me and wanted to sell two factories in Pengcheng, but the time given is very tight, and they are still in contact with the national grain."
Zhi Zhiyuan couldn't hold on anymore, or in other words, he didn't want to hold on.
Its channels were all overseas, and it kept purchasing imported soybeans in the early stage. As a result, it encountered an avalanche of soybean prices, and both edible oil and soybean meal plummeted.
Then the financial crisis came.
Its other main business, hub production and seed production, also suffered heavy losses, and the operating conditions of the entire group declined rapidly.
As the first shipment of soybeans from Shandong Province arrived at the port in Guangdong Province, Guo Baichun could no longer sit still.
Media propaganda, expert talk, seeking help, and exhausting all kinds of means can not change this situation.
Processing domestic soybeans?
For Zhi Zhiyuan, who is far away from the main production area and has no upstream channels, he is a fat sheep left to be slaughtered.
He didn’t think Jiahe would let him go.
So, sell it!
After learning the whole story, Guo Yang calmly said, "If Guofang is willing to take over, let Guofang take over."
"Huh?"
"I don't believe that Guofang will take over. , hold on, it’s not Jiahe who is feeling uncomfortable.”
In fact, Guo Yang remembered that Gaode should not be in the country at the moment, and brought a group of key people to Egypt to negotiate for the port equity acquisition.
The layout of Egypt is obviously more important.
Why is there chaos in the Middle East? and Egypt have unshirkable responsibilities.
As a major population and military power in the Middle East, Egypt is unable to exert sufficient influence on the Middle East and can only let Israel do what it wants.
One of the reasons is that he was choked.
We cannot be self-sufficient in food.
All the foreign exchange in the entire country is not enough to pay for external purchases of grain.
The team responsible for the acquisition of Jiahe Cereals and Oils was taken away by Gaode, but Guo Yang did not want to deal with Zhi Zhiyuan.
If you die, you will die.
Many factories have closed down during this period. Among them, several soybean processing plants have declared bankruptcy as the financial crisis continues to spread.
Acquisition?
It needs scale but not scale, it needs machinery but not machinery, the processing method is extremely low-end, and the cost, sanitation and safety are almost not up to standard.
For this kind of backward excess production capacity, the correct solution is to eliminate the clean ones.
Jiahe paid no attention to Zhi Zhiyuan. Guofang had Zhonggu Oil in Dongguan, and it also had no interest in Zhi Zhiyuan.
Guo Baichun wanted to sell it enthusiastically, but found that no one was willing to pay attention to him.
The domestic government and enterprises do not care about its life or death at all.
Louis Dreyfus cut off its cooperative relationship with Zhizhiyuan like abandoning a slave, and instead sought broader cooperation with Jiahe.
People only focus on the winner.
Big companies such as Guofang, Yihai Kerry, Bunge, Cargill, etc. have curbed their sharpness and turned to begging for food like a dog wagging its tail.
The final winner, like a charity, controlled prices from falling, giving processing companies room to make profits.
The dog's tail wagged even more happily.
But unfortunately, this space is not reserved for companies like Zhiyuan.
It has no chance to wag its tail.
The soybeans in stock are about to go moldy, the price reversal is far away, and the start of construction will result in huge losses. It seems that there is only a dead end left.
Guo Baichun was unwilling to give in like this.
He contacted the media he could still contact and vented his dissatisfaction like crazy.
Manipulate futures prices on the Dalian Commodity Exchange wantonly!
Was the State Reserve’s purchase price eaten up?
Disregarding the interests of farmers?
He waited expectantly for the public opinion to ferment, but found that no one paid attention to this. Countless companies had closed down, and now there was just one more substandard company.
(End of this chapter)