Chapter 365 Golmud; What does ADM want to do?
A few months ago.
Qinghai in summer is full of golden colors.
In the early autumn of the harvest, the fragrance of oil is overflowing.
This alpine and clean land has natural advantages such as a "cold" climate, sufficient sunlight, and few pests and diseases, nourishing every rapeseed plant.
This is also the first province in China to carry out spring rapeseed breeding and research.
Under the scientific and technological research of generations of scientific researchers, several hybrid rapeseed varieties have been developed here, and it is the main planting area of spring rapeseed in China.
Rape also has the largest sown area among the six major crop varieties in Qinghai Province.
It is also here that the world record for high rapeseed yield will be born in the future: 450.45 kilograms!
In the eastern part of the Qaidam Basin, Xiangride Farm in Delingha, the rapeseed yield and quality here this year are surprisingly good.
High oil yield has always been the advantage of rapeseed in Qingdao Province, which is five or six percentage points higher than the national average, or even more.
The oil yield rate of rapeseed in Xiangride this year is even more outstanding.
After a simple investigation, Nongken knew that the cause was the seeds.
On land outside of agricultural reclamation, this cabbage-type spring rapeseed variety from Tianhe has been promoted in more areas.
Generally, they increase yields.
In the west of the Qaidam Basin, there is the largest Golmud farm under the Agricultural Reclamation Corporation.
Large areas of alfalfa are planted on the secondary saline-alkali land east of the Golmud River and west of the river.
This is a move made at the suggestion of Weng Lixin, a professor of grass science.
In the Qaidam Basin, the most indispensable thing is various saline-alkali wastelands, saline-alkali farmland, and saline-alkali forests and grasslands.
Alfalfa No. 1 also played an extremely valuable role here.
Qaidam is ecologically fragile and has an enviable grassland area, with more than 5 million acres of grassland cultivated by farmers.
But grass production is very low and livestock carrying capacity is extremely low.
The development of the alfalfa industry and the increase in hay production have made the animal husbandry here also show great vitality.
There is even excess forage, which is transported from Golmud to LS, Delingha, and Xining through the Qinghai-Tibet Railway, which was opened to traffic only two years ago.
High-yielding and high-quality forage is also brought by Jiahe, but it is far more than that.
Tianhe's seed collection team is active here, and rich halophyte resources enrich Tianhe's treasure house.
Tianhe Academy of Sciences has established a breeding station here to carry out the breeding of rapeseed, cabbage, vegetables and other crops as well as various exotic plants.
It seems inconspicuous, but after the farmland investigation, it was discovered that all the property had been inspected.
This is why Du Jianwen, Chairman of Qing Province Agricultural Reclamation Group, and his party came to Jiuquan.
Du Jianwen is a decent-looking middle-aged man. He was very heroic when he was young. He is also very talkative and makes people feel at ease.
He has not been the chairman of the board of directors for a long time, and he is not originally engaged in agriculture.
It was from transportation to agriculture.
After chatting for a while, both parties tacitly talked about future cooperation.
Jiahe has had ideas about Qaidam a long time ago, but the conditions are not mature, and in fact, he is not completely ready now.
But there isn’t that much time to prepare.
The locations of cooperation are naturally located in the Qaidam Basin, Golmud and Delingha farms.
After the Qinghai-Tibet Railway was opened to traffic, Golmud and Delingha have changed a lot.
The golden tourist routes of the Qinghai-Tibet Plateau attract Chinese and foreign tourists. Baiyun Snow Mountain, Feiliu Canyon, and tourism have become the pillar industries of Qinghai and Tibet Provinces.
Guo Yang is very interested in Golmud.
This is the logistics support base for supplies entering Tibet. At the same time, most of the vegetables and grains from industrial and mining enterprises in the snowy areas and some areas come from Golmud.
Regardless of whether Hongqihe can be implemented or not, Guo Yang is consciously moving in this direction.
In the end, the two parties reached an intention to cooperate in the fields of improved seed breeding, organic agriculture, alfalfa industry, salt lake agriculture, ecological management, and oil processing.
Du Jianwen was extremely satisfied with this conversation. He did not expect Jiahe to be so easy to talk to.
The investment environment in Qaidam is so bad!
People do have certain factors. After all, the farm workers are so poor that they are panicked, and there are some ethnic groups who often behave like monsters.
But the most difficult thing is the geographical factors. Drought, high cold, hypoxia, saline-alkali, Gobi, desert... all kinds of factors are superimposed, making it too late for most people to run away.
Jiahe seemed to have thought about it early on. When he proposed to establish a cooperative relationship, Jiahe was already able to come up with various specific investment directions.
During the few days in Jiuquan, Du Jianwen saw Jiahe saline-alkali treatment, river regulation, natural enemy biological control... it was an eye-opener.
But what interests him most is 'seafood'.
"Mr. Guo, I finally understand why Jiahe wants to develop salt lake agriculture in Qaidam." Du Jianwen said with a sudden realization: "At first, I thought you were interested in potash fertilizer."< br>
"Jiahe also invests in potassium fertilizer." Guo Yang said: "But Jiahe is more interested in raising aquatic products in salt lakes."
There are a total of 51 lakes in the Qaidam Basin, of which only 1 is fresh water. lake and 7 brackish-saline lakes, the rest are salt lakes.
Guo Yang, the proposer of salt lake agriculture, is no stranger. Yang Guocheng’s teacher, Zheng Mianping, is an academician in the field of geology.
As soon as it was proposed, it attracted the attention of Qian Xuesheng. Just like his emphasis on the sand industry, this scientist believed that salt lake agriculture also has important strategic significance.
But in fact, salt lake agriculture only includes the breeding, planting and high-value processing of salt animals and plants, and has nothing to do with potassium fertilizer.
But who made potassium fertilizer so popular in the past two years, and Qaidam is one of the regions with the richest potassium fertilizer resources in the country.
Guo Yang smiled and said: "I am also particularly interested in 'seafood'."
When Du Jianwen and his party ate the big crabs produced by Jiahe in Jiuquan, they couldn't help but sigh. .
“The meat is tender and firm, the crab roe is plump, and the taste is delicious.”
“Is this suitable for Qaidam?”
"It should be said that Qaidam is the most suitable." Guo Yang said: "Cold water crabs can completely adapt to the salt lake environment of Qaidam, and the environment is clean, so they can definitely take the quality route."
"I want to He took it back."
"Remember to sell it to Jiahe when the time comes."
Du Jianwen thinks that Jiahe is too friendly, and there seems to be nothing worth worrying about.
“Definitely.”
"Also, those two stone pickers have been used for reclamation for five or six years, so they should be returned."
"..."
If Qingdao Province's reclamation is relatively smooth, then For ADM, this trip was not a bad one, but it was certainly not satisfactory.
They didn’t even see the real power holder of Jiahe.
This time their team consists of financial executive Usman, global vice president Wim Cromwell, president of the feed department and others.
Definitely come with sincerity.
However, regarding the acquisition of Quanwang, Jiahe stated that there was no room for negotiation.
In fact, among international grain merchants, acquisitions and being acquired occur frequently.
For example, Cargill once sold some of its feed factories in Europe, but then turned around and wanted to acquire Provimi.
Whether it can be sold depends on whether there is any profit for each party.
However, Jiahe did not give in at all when it came to controlling the entire king.
ADM is interested in Quanwang because their Aidimeng Animal Health and Nutrition Company in Dalian specializes in providing breeding feed for various livestock, poultry and fisheries. It is a first-line professional premix in China. factory.
Even though ADM no longer has the advantage of imported raw materials in China, its facility scale and production capacity are still there.
Like other grain merchants, ADM has also chosen to embrace domestically produced soybeans.
This is the only base they have left in China.
Before the emergence of Quanwang, ADM, like Cargill, was an important domestic supplier of amino acids and feed additives.
Cargill is methionine.
ADM feed grade lysine and threonine are widely used by domestic manufacturers.
These are high-value products converted from grain raw materials. In the past, China basically relied on imports.
But now there are alternatives: Quanwang’s Chinese herbal medicine and PFA additives, which are significantly more effective in animal intestines.
General feed additives can easily cause excessive nutrition and cause diarrhea in livestock, but Quanwang's Chinese herbal medicine products can completely solve this problem.
Cargill and ADM have long been aware of the advantages of botanical additives and have also conducted relevant research and development.
But no one expected that a king would appear halfway.
And it has gradually ignited the market.
This makes ADM extremely uncomfortable.
The national grain industry has defected, grain trade has been stranded, and high-profit animal nutrition products are facing the impact of emerging products.
Business in China has shrunk and shrunk, and grain production in North America has suffered another major blow. The profit in the third quarter report has been cut in half compared with the violent first quarter.
Obviously the world food crisis has not been completely alleviated, but ADM has not suffered from this crisis from beginning to end. North American grain production costs are rising, while international grain prices are falling, but ADM's main business is in North America.
This caused them to suffer successive setbacks in the second half of the year, and the stock price fell one after another, with no end in sight.
After the financial crisis, the US federal government introduced a US$700 billion financial rescue plan, and the stock market quickly emerged from the crisis.
But this has little to do with ADM. The decline continued, and ADM’s board of directors frequently put pressure on the management headed by Wools.
ADM doesn’t have many ways to break the situation.
If you want to achieve real trade in agriculture, you must occupy the world's agricultural product producing countries, so as to ensure profits.
North America is temporarily disabled. South America is the traditional sphere of influence of Cargill, Bunge, Monsanto, etc., and must be slowly penetrated.
China is a new exporting country. Although ADM is also lagging behind, the advantages of traditional international grain merchants are not so disparate that it makes people despair.
During the negotiation process, Wim Cromwell kept raising his offer.
From the initial 1.5 billion US dollars, it increased all the way to 2.5 billion US dollars, 3 billion US dollars... and even asked Jiahe to raise the price.
Miao Lan, the leader of Jiahe, was not moved at all.
"Wim, if we continue to talk about all king creatures, I think there is no need to continue talking."
Miao Lanchun began to pack the documents.
“Although it is a bit hard to accept that we cannot acquire the whole king.” Wim Cromwell said helplessly: “But ADM does intend to carry out grain trade with Jiahe.”
“Why not national grain? ?”
“We encountered some problems, so we came to Jiahe.”
Miao Lanchun keenly noticed the changes in the faces of several of them, and there must be something inside that Jiahe didn’t know. .
ADM has trading partners around the world, but the amount of grain available for export in North America is decreasing, while China is increasing production, and the battleground for grain sources is shifting domestically.
Grain merchants can stab you in the back, but they can also smile and cooperate the next moment.
After internal research and judgment, Jiahe Grain and Oil also has a tendency to cooperate with international grain merchants. The trade volume of hundreds of millions of tons is not easy to digest, and overseas sales channels are still not enough.
Cooperation is easy to achieve, and Jiahe also took the opportunity to gain some other chips.
For example, some technology transfer and patent authorization in biofuels.
ADM is the world's largest producer of activated fuel ethanol, and its technology accumulation in this area ranks first in the world.
Some seemingly ordinary technologies are enough to promote Jiahe to make great progress in extracting oil from Jatropha curcas and Amaranthus sorbifera.
Underneath this, Guo Yang also has other goals. Only by being familiar with an opponent can he know how to destroy it.
“Do you think it is possible for Jiahe to acquire ADM?”
“Huh?” Miao Lanchun thought he was hearing hallucinations. After confirming again and again, he found that the boss was asking the question very seriously. .
Guo Yang said: "Actually, the market value of ADM is not high, only 10 to 20 billion US dollars."
"It is very difficult." Miao Lanchun blinked uneasily, and you can say no high.
“The sales of the four major grain merchants have exceeded 100 billion US dollars year-round, and their volatility is very high.”
“Let’s contact each other privately, there is no rush.”
From ADM Guo Yang could feel that the other party was a little anxious.
Its sales revenue in the first half of the year was approximately US$69.8 billion. Guo Yang did not pay attention to the third quarter report, but it was definitely not better.
If you want to acquire Quanwang, I might as well not want to acquire you. Geely has been planning to acquire Volvo for several years, and Jiahe can also give it a try.
Miao Lanchun suddenly said: "Isn't ADM also planning an acquisition?"
"Damn, it's really possible!" Guo Yang was shocked to realize that there were several shocking mergers and acquisitions in later generations, DuPont and Dow Chemical, Bayer and Monsanto, China Chemical and Syngenta.
Each event has a profound impact.
Where do mergers and acquisitions come from?
Also for survival and competitiveness, the financial crisis will cause global commodity demand to plummet in the next few years.
Now ADM is facing a crisis. The core of its business is grain trading, but it wants to acquire Quanwang. The more it thinks about it, the more wrong it becomes.
Guo Yang convened a temporary video conference with Gao De, Chen Yanqiu, Chen Yun and others.
“Does ADM want to acquire Jiahe Cereals and Oils?”
Gao De raised an idea, but was immediately rejected by Guo Yang. Jiahe was a private company.
"It's impossible to acquire Guofang. ADM sold the shares of Guofang and it's almost the same."
"Wait a minute." Chen Yanqiu suddenly spoke up.
Miao Lanchun looked at the Singaporean and said, "You don't think that National Grain can really be acquired. It is possible to buy a few factories."
"No." Chen Yanqiu pondered. Said: "I mean ADM is going to sell its shares in the joint venture with Guofang!"
"Sell?"
"This is his only channel."
"But ADM comes to Jiahe, it is very likely that they will break up, and ADM has other acquisition targets."
< br>Chen Yanqiu was determined, "Wilmar International!"
It was quiet for a while.
"MD, maybe it's really bad!"
"Wilmar's performance this year did not meet expectations." AutoNavi quickly recalled: "In 2006, Wilmar's revenue was US$7.016 billion, and in 2007, it was US$164.661 , the Chinese market accounts for an absolute proportion of its business area composition.”
“Due to domestic public opinion, Wilmar originally planned to split the domestic business and list it separately as a domestic capital.”
"But this year Wilmar's rising momentum came to an abrupt end, and its revenue was at most the same as last year! And the situation has changed!"
Everyone here knows the reason for Wilmar's decline.
In addition to Jiahe Grain and Oil, it also has great changes in the supply and demand relationship of domestic raw materials.
Wilmar is a Malaysian palm oil giant. Its operating methods are similar to those of the four major grain merchants. It transfers profits from edible oil to foreign planting sites through tax avoidance.
Its oil palm plantation base in Malaysia is still very profitable, with profits even higher than Bunge.
However, the situation in its largest business market area is not good, with price wars, public opinion crises, and the raw material advantage of relying on ADM.
Cannot avoid taxes or transfer profits, so what advantages does it have?
Factory capacity counts as one, palm oil counts as one, but what about the others?
Jiahe Grain and Oil and Guoliang, who are playing at home, can beat him into a Muggle!
Also once the price war stops and profits are made, some small brands and small workshops will let you experience Chinese-style involution.
The seemingly stable palm oil business, Wilmar is also facing increasing competition in Malaysia and Indonesia!
As if everything was understood.
Everyone present at the meeting became increasingly convinced that ADM and Wilmar International were getting together again and were planning some big move.
…
As we enter the last month of 2008, the seabuckthorn branches are covered with a layer of snow, but the seabuckthorn berries are still yellow.
After the visits of Laos, Qingdao Agricultural Reclamation and ADM, the headquarters of Jiahe Group became more and more lively.
Various industry conferences are held in turn.
Tianhe held a corn seed industry summit, followed by the 2008-09 Distribution Conference.
Not to be outdone, Alfalfa organized closely cooperating companies to hold an industry meeting to formulate development plans for next year.
After the industry meeting, overseas partners from island countries, South Korea, Saudi Arabia, Malaysia, Indonesia and other countries also visited one after another.
The snow did not completely cover the alfalfa, but instead highlighted the extraordinary quality of this cold-resistant pasture.
The meeting was harmonious.
The intention to sign a contract, the approximate demand, etc. were all taken into consideration.
Due to the weakening of alfalfa exports from the United States, the Hexi Corridor alfalfa industry cluster is currently the highland of the global alfalfa industry.
In addition, relevant conferences were held on water-saving drip irrigation, agricultural machinery, dairy industry, etc.
During this period, Yu Honghai, who was far away in Africa, also came back once, and with him was Eddie, the chief of Equateur Province in the Democratic Republic of the Congo.
Jiahe’s oil palm base in Equatoria Province has also entered the substantive signing stage.
Throughout December, Jiayuguan Airport was busy with various business people, and citizens also noticed that there were more international people in the city.
Qin Lijun’s smiles have also increased, and he can often be seen at various industry conferences.
And he feels that he is very outstanding, and he can speak for an hour or two without any pause.
Drinking tea after a meeting, Guo Yang couldn't help it anymore, "Leader, your speech has the style of a leader!"
Qin Lijun raised his eyebrows, the guy next to him always said He was "perfunctory" and his style was completely different from his.
"You think I'm verbose?"
"You said it yourself."
"Hey..." Qin Lijun couldn't do anything to him, and had to sacrifice him. Fortunately, it was over. .
That's all he is good at, listen to advice.
(End of this chapter)