Chapter 149 International Market
2870 million dollars!
When Guo Yangchu heard this, he was also in a trance.

At that time, 1 US dollar was equivalent to 8.19 RMB, which is equivalent to 2.35 million yuan!

This is just the first crop of grass!

Guo Yang recalled the development experience of Alfalfa over the years.

When improving saline-alkali land in 2002, Alfalfa Agriculture and Animal Husbandry invested about 2 million yuan in engineering costs, plus other expenses of about 0.3 million yuan that year, totaling 2.3 million yuan.

In 2003, diesel prices rose, and the preparation and construction of drip irrigation facilities, daily plant protection and maintenance, and the return of green manure to the fields required an investment of about 600 yuan per acre that year.

The second is the construction of a forage processing plant and the introduction of 2000 dairy cows from Hutubi.

The above, about 2003 million yuan was invested in 2.

At the same time, because it was only the second year of the improvement, and the ordinary alfalfa was still planted, it was only by relying on the secondary forage compression technology that the sales revenue and sales costs were barely offset.

The final loss in 2003 was about 2 million yuan.

In 2004, Muhe’s revenue reached 1.3 million.

Among them, the revenue from forage was 0.7 million yuan.

The second was 200 million jin of alfalfa No. 1 seeds. Thanks to the coordination of the Ministry of Agriculture, Jiahe obtained the right to transfer and build nearly one million acres of saline-alkali land in Wuyuan County in phases.

Two million kilograms of seeds were sold at 200 yuan per kilogram to saline-alkali land and medium- and low-yield farmland renovation projects in various places.

Alfalfa No. 1 seeds had revenue of 0.6 million yuan.

It is worth mentioning that most of the seed money was not recovered.

In addition, the dairy farm mainly operates young cows and calves, and the revenue is basically negligible.

The revenue of 2004 million yuan in 1.3 seems okay, but the investment that year was also not small.

First of all, the drip irrigation facilities of 20 mu have been completely improved, and the good irrigation conditions have also laid the foundation for the high yield of forage this year.

Secondly, we acquired two dairy companies in the province, and at the same time, we are continuing to introduce and expand new breeds on the dairy farm.

Finally, a lot of agricultural machinery and mechanical equipment were added, and 20 acres of saline-alkali land were all plowed in the autumn and re-planted with Alfalfa No. 1.

In the end, Alfalfa’s losses in 04 remained at 2 million yuan.

Over the past three years, Alfalfa’s net investment exceeded 6.3 million yuan.

Without the capital injection from the group headquarters, Muhe might still be barely maintaining itself by relying on bank loans.

But this situation has completely reversed this year.

The sales revenue of the first 10 mu of forage reached 2.35 million yuan.

There is no need to plow the land this year. 10 acres can be harvested four times. Even if the yield of the last three crops decreases, calculated at 4 tons per acre, that is 3 tons, nearly 0.6 million yuan!

There are also 10 acres of seed fields and 2000 million kilograms of seeds!

Calculated at 30 yuan per catty, that would be 6 million yuan.

The annual revenue is estimated to be approximately 14.35 billion yuan!

Guo Yang knew that this algorithm was inaccurate.

As is our country's usual practice, the larger the quantity, the lower the price.

However, Alfalfa No. 1 is currently focusing on overseas markets, competing with forage companies in the United States, Canada, Australia, Spain and Chile.

In terms of quality, Alfalfa No. 1 is not inferior to any other country. In addition, its high yield is also a major advantage.

The only competitive pressure comes from within the country. Once the 2000 million kilograms of seeds produced this year are put on the market, there will be a huge explosion in alfalfa production next year.

But at least Alfalfa Agriculture and Animal Husbandry is stable this year. Even if we exclude the water, the conservative estimate of revenue will exceed 10 billion.

At least we can recover all the investment costs of the past few years!
Achieve profitability in 3 years!
Guo Yang recalled the large-scale agricultural planting models he had come into contact with in his previous life. They were profitable for three years, and many project feasibility study reports did not dare to write this way.

But Muhe actually did it.

This kind of case is one in a million!

In Guo Yang's memory,
What is more common is that people drive an Audi before investing in agriculture and drive an Alto three years later.

……

After coming to his senses, Guo Yang's exhausted body regained some energy.

He recalled that the Corps bought 100 kilograms of alfalfa No. 2 seeds at a price of 1 yuan per kilogram.

I don’t know how it is now.

Call Yu Xiaochuan.

"Manager Yu, how does the Corps deal with the alfalfa? Does it help them sell the alfalfa?"

Corps? Yu Xiaochuan, who had just sent away the foreign businessman, was stunned, and the shrewd look of Zou Qing emerged in his mind.

“They’re sold out.”

“Sold out, no export?”

"No."

Yu Xiaochuan sorted out what he had learned and explained,

"This year, the grass production in grasslands across the country is not high, and forage grass is in great demand."

"The Corps is also a large livestock producer. We offered 1.2 yuan per kilogram, and the Corps' employees are willing to handle the products nearby."

"The main reason is that the volume is not large. Zou Qing and his team want to invest in machinery and equipment in order to export."

Guo Yang understood the reason behind the incident, but he still couldn't understand the train of thought of Zou Qing and others.

This is also the reason why the domestic alfalfa export industry has not been able to develop.

In fact, before the infant milk powder incident in 2008, my country had always been an exporter of alfalfa, but the market had been shrinking.

The main reason is the mechanized production technology of alfalfa.

Alfalfa has a short cutting period and its protein content will drop rapidly after cutting. If it is dried mechanically within two hours, the protein retention rate can be as high as over 95%.

If it is dried naturally, the protein content can only be preserved below 60%.

In addition, the long-distance transportation and post-harvest processing of alfalfa, including secondary compression of bales, grass block processing, grass powder production, and leaf protein extraction, all require mechanized technology.

In a sense, the process of alfalfa industrialization is the process of mechanization of alfalfa production.

Guo Yang couldn't help but complain,

"After all, the blame still falls on Fengkai Agricultural Machinery."

“The research and development of forage machinery has been delayed again and again!”

Yu Xiaobing said: "In fact, some machinery has been delivered recently, but there are too many machines involved, including silage, stacking, handling, large-scale production, and post-harvest processing."

"And if we want to promote it domestically, we can only develop and produce high-quality and low-cost forage machinery, and form our own forage machinery product system and maintenance service system."

Guo Yang smiled and said, "You know a lot!"

"Last year, I organized the staff of my department to visit the alfalfa market in the island countries and learned from Canada and the United States."

Guo Yang was curious, "Oh?"

"As island countries have limited land resources and high rainfall, alfalfa is almost entirely imported."

"But they have formed their own stable supply base and import channels. Every year, the island countries regularly visit Canada and the United States to inspect the growth of alfalfa and sign product import contracts."

"The island country has extremely strict requirements on the quality, form and packaging of alfalfa products. Our country's previous alfalfa export companies were eliminated at this stage."

“I was at the alfalfa warehouse in Ehime Prefecture, an island nation, and saw the products they imported from Canada.

Large cut bales were wrapped in plastic film and alfalfa pellets were packed in canvas bags. We overlooked this.”

After listening to it, Guo Yang felt the gap. In terms of details, Alfalfa Agriculture and Animal Husbandry was indeed quite rough.

“Is it possible for us to expand our export market to island countries?”

Through the phone, Guo Yang could hear Yu Xiaochuan laughing.

"In fact, during the inspection, many importers showed great interest in importing alfalfa products from Hua Xia, but they were concerned about the quality of Hua Xia's alfalfa products and its ability to fulfill contracts."

"I specially invited Shintaro Iwata from the Ehime Prefecture Dairy Farmers Association, and he agreed to come to Jiuquan for an inspection."

Guo Yang praised: "Well done!"

Yu Xiaochuan smiled.

"I plan to organize another trip to Spain in mid-July to investigate the planting, processing and feeding technology of dehydrated alfalfa."

"Spain is the world's second largest exporter of alfalfa, with an annual export volume of over one million tons. In fact, its area is not much larger than Longnan Province."

“If there is a chance, we will seize the alfalfa market in the Middle East as well.”

Guo Yang nodded, "You can make your own arrangements and plan a trip to the Middle East, Mr. Yu!"

Yu Xiaochuan froze.

Mr. Yu?
I only heard Guo Yang's voice.
"Congratulations, you've got a promotion."

　My whole body aches and I have a fever, so I can’t write anymore. That’s all for today.

　　
　
(End of this chapter)