Chapter 231 Tiredness

When you feel sleepy, someone will give you a pillow?
Qu Yang was puzzled. Without subsidies for good varieties, it meant that farmers had to pay the full price for seeds.

Coupled with price control measures, this combination of measures can be said to be disgusting.

But the boss must have other opinions when he said this. He thought that the company's strategic planning had not gone wrong all along, but many people were slapped in the face.

Qu Yang was not in a position to make random guesses, so he tentatively said, "From the perspective of terminal prices, it is definitely a disadvantage."

Guo Yang smiled, opened the office door, and sat down on the sofa.

"What's the situation in Liao Province?"

"The county agricultural bureau and seed management station jointly notified that the city and county's high-quality seed subsidies will give priority to supporting local seed companies."

“Which companies are they?”

"Liaoning Province is East Asia and Danyu Seed Industry."

"Ping An Seed Industry in Jilin Province and Feng Le Seed Industry in Anhui Province should also be pushing this behind the scenes, and it is estimated that other places will follow suit soon."

Qu Yang is not as optimistic as Guo Yang. All regions are implementing local protectionism, but Tianhe Seed Industry has escaped this wave of impact because of its hot sales.

But what about next year?

When it comes to interests, these people are definitely capable of doing it.

"Fengle Seed Industry is also involved?"

Guo Yang exclaimed: "It's really wonderful."

Fengle Seed was once the number one stock in the seed industry, and its watermelon seeds once occupied 40% of the domestic market share.

It is also highly competitive in corn and hybrid rice seeds.

But it was revealed that the performance was falsified.

Starting from 1997, over the past 8 years, fraudulent activities lasted for 6 years, and hundreds of millions of yuan in revenue and profits were fabricated.

There are also many fake projects, for example, investing money in the construction of a germplasm resource bank. In reality, the money in the account is gone and the project does not exist.

In the end, ZJH ordered it to make rectifications and imposed a fine of 60 yuan, and the matter was settled hastily.

Qu Yang said, "Does Tianhe want to follow up?"

"Why should I follow up? There is absolutely no need to care."

The target market for Tianyu No. 1 is the entire country. Except for the Ministry of Agriculture which publishes a list of recommended improved varieties every year, counties and districts can completely ignore you.

Guo Yang calmly analyzed:

"For the East Asian seed industry, working hard on subsidies for improved varieties and the local market is like blocking the upper limit, which is equivalent to digging its own grave."

"As for the price limit sales, the impact on Tianyu is smaller, but it has dug a hole for Denghai, Denong and Tunyu, which are also based in the national market."

Qu Yang felt as if a string in his heart was plucked.

It seems to be true?
You, Dongya and Danyu, can strive for subsidies for high-quality seeds and protect the local market, and I, Fengle, can naturally block the market in northern Anhui.

It's all a vast plain, who's afraid of who?
The squeeze from large enterprises has already made the market space environment extremely suffocating.

Now some people are taking the lead in making the subsidies for high-quality seeds in various districts and counties focus on subsidizing local seed companies.

Make the market more difficult.

Other small seed companies that have influence in their respective regions will certainly follow suit. They are all active in the local area and everyone has some connections.

This will make the entire market even more chaotic.

So who was injured?
A wide variety of varieties!
For example, Zhengdan 958, Tianyu No. 1, Xianyu 335, and Denghai series.

But upon closer inspection, Tianyu No. 1 has a very strong effect on increasing farmers' income. One acre of land can yield several hundred kilograms more corn. Farmers who know the business will still buy Tianyu No. 1.

On the contrary, Zhengdan 958, which is sold in large quantities, and other old varieties may suffer this time.

Inventory backlog is one aspect.

What’s more serious is that it triggers large-scale returns.

Denong, Denghai, Tunyu, etc., dealers can purchase goods in cash and receive rebates based on the sales price.

But now they can’t be sold at all, and Qu Yang has a feeling that something good is about to happen.

After thinking for a while, Qu Yang suddenly understood, and the haze in his heart disappeared.

Qu Yang couldn't help but praise: "Boss, your overall view is getting stronger and stronger, you can react so quickly."

"Hahaha……"

Guo Yang burst into laughter. In fact, it was unintentional that he figured it out so quickly this time.

Because Tianhe just happened to have new initiatives.

Now small and local seed companies are struggling desperately, and large seed companies will soon be in trouble.

This situation will continue for at least one or two years.

And this is Tianhe’s best opportunity to dominate the corn market.

Guo Yang said: "We need to speed up the on-the-job bonus plan and announce it as soon as possible. This year's service level needs to be further improved."

"Let other seed companies fight as they please. Tianhe only needs to do two things well in the corn market this year."

"By cracking down on counterfeiting and providing services, you will reap the benefits next year."

Qu Yang was surprised again, "So, boss, you had already guessed this would happen?"

Guo Yang shook his head, "No."

"I didn't expect anyone to think of changing the subsidies for improved seed varieties, especially for East Asian Seed Industry. It's really surprising."

Qu Yang said meaningfully: "There should be a 'capable person' giving them advice, but there has been no movement in the fight against counterfeiting since the Seed Industry Summit."

Seed Industry Summit + Good Seed Subsidy, Guo Yang easily thought of Li Juan.

"I'll take care of this matter, you just need to do your job well."

"In addition, in addition to high salary incentives, grassroots technical service sales staff should also receive regular professional training."

"We also need to take good care of our employees." Qu Yang took advantage of his boss's good mood and asked the question he had always had in mind.

“Why should the company be so nice to its employees?”

It’s not that there aren’t companies like Jiahe that pay so much attention to the welfare of grassroots employees in this era, but they are definitely rare.

Qu Yang has been traveling around the country for a long time. He has seen some domestic companies and black factory owners use every possible means to exploit their employees.

Because their image is so bad, they can only recruit people through deception and then lock them up.

Guo Yang was also silent for a moment.

He has learned some management knowledge during this period. Employee care is both a corporate culture and a purposeful management method.

“Do you need a reason to be nice to your employees?”

Qu Yang couldn't figure out what his boss was thinking. This answer was just enough to appease a child. The boss didn't want to elaborate, so he simply started talking about another thing.

"There are many agricultural supply chain stores in various places, production capacity is expanding rapidly, and supply and marketing cooperatives are also accelerating their layout."

"DeNong Agricultural Materials has also expanded beyond Shandong Province and opened hundreds of franchise stores in the Huanghuaihai Plain, but Yuan Wenwu wants to hold off on other locations for a year or two."

Guo Yang raised his eyebrows. Denong Agricultural Materials Supermarket is an important part of Huinong.com's logistics and distribution layout.

This delay will affect the overall situation.

"what happened?"

"The service level of the newly opened stores cannot keep up. In addition, farmers are used to buying on credit, which is not flexible enough to compete with individual agricultural supply stores and mobile agricultural supply dealers."

"There is also a lack of after-sales technical guidance and promotional activity planning, and farmers' consumption experience is not good."

Things are indeed a bit troublesome, and overall there is still a lack of talent reserves.

Guo Yang rubbed his forehead, feeling a little swollen. There were so many things to think about today.

It took a while.

"Then slow down and improve the service level first."

"We are also keeping an eye on the expansion of other agricultural supply stores, and looking to see if there are any opportunities to pick up bargains for those that can't hold on."

The launch time of Huinong.com will have to be delayed, or a regional pilot will be carried out.

The operation of agricultural supply chain is indeed very complicated, with different regional situations making it difficult to manage in a unified manner.

In Guo Yang's impression, agricultural supply stores in farmers' markets across the country in later generations were still mainly supply and marketing cooperatives.

Many agricultural supply chain stores disappeared after a short-lived success, while some are still struggling to survive. Successful examples are rare.

Since other agricultural supply stores focus on capacity expansion and neglect service construction.

Tianhe does the opposite, and its high profits can support this.

Service awareness is in place, and hard work is the peak season.

Sincerity is always a must-win!

After sorting out his thoughts, Guo Yang said tiredly, "Anything else?"

Qu Yang hesitated. There must be something else going on, but the boss didn't look well.

Guo Yang said: "If you have any, finish your talk early and get off work early."

It's really a fight. Qu Yang tried to say it as concisely as possible: "The registration and selection materials for the top 50 seed companies have been submitted. In addition, some experts have recently pointed out that corn and soybeans are competing for land."

The selection of Top 50 Seed Companies has greatly enhanced Tianhe’s brand influence, but it is not important, so Qu Yang only mentioned it briefly.

The competition for land between corn and soybeans has attracted Guo Yang's attention, as the planting areas of the two are highly overlapping.

The income from growing soybeans has been declining year by year, and one acre of land can only be sold for three or four hundred yuan; while corn can earn four or five hundred yuan if eight or nine hundred kilograms are harvested per acre.

Originally, the balance was only slowly tilting, but now with the release of Tianyu No. 1, and the next best one being Xianyu 335, the profit gap has widened again.

A survey shows that farmers in Heilongjiang Province, a major soybean producing area, will switch to growing corn in large numbers this year.

Soybean planting area will decline significantly.

Domestic soybeans are in deep crisis.

Guo Yang closed his eyes and rested his head on the sofa. Problems in the planting process were just one of the factors.

Anyone with a discerning eye knows that the fundamental reason is the loss of pricing power.

The four major grain traders have controlled a large number of oil processing enterprises in coastal areas through holding and mergers. These enterprises have begun to abandon domestic soybeans and turn to large quantities of imported genetically modified soybeans.

In 04, Guo Yang helped the state-owned oil and fat enterprises, but now they are suffering from a slow death.

The soybean price inversion is too serious.

It can be said that the crisis has extended from the processing industry to the planting industry, and improved varieties such as Tianyu and Xianyu have simply provided growers with an additional outlet for venting.

In fact, most areas of Heilongjiang Province have a climate defect of insufficient accumulated temperature for growing corn, which will affect the yield.

But Tianyu No. 1 has a good foundation.

Although the output has decreased, it is still a good harvest compared to soybeans.

Farmers naturally flocked to it.

It has little to do with Tianyu-1, but has a significant connection with Tiandou-1.

Last year, the seed production was enough to plant 18 mu. After further breeding in Hainan, the planting area can reach 30 mu.

But compared with the 6000 million mu of soybean planting area in Heilongjiang Province, it pales in comparison.

It’s frustrating to say.

As a major soybean producing and consuming country, soybean processing companies in China can neither influence the purchase price of raw materials nor the selling price of products.

There are tens of millions of acres of soybean planting area, but the price of the soybeans grown is determined by Chicago, thousands of miles away.

Non-GMO soybean oil has market demand in Japan, South Korea, Europe and China.

However, when the market is full of cheap golden arowana, the price is high and who would buy it?

(End of this chapter)