Chapter 274 Food and Farmland
In the past 2006, the world food situation has become increasingly tense.

Cars competing with food?
Such a statement that sounds incredible has attracted worldwide attention in recent years.

International oil prices have skyrocketed and are approaching the $100 per barrel mark.

In order to reduce environmental and energy pressures, many countries are developing bioenergy using corn, wheat and other raw materials to replace gasoline and provide power for automobiles.

By 2005, its production had exceeded 1200 million tons.

In 2006, 25% of the corn harvest in the United States turned into ethanol fuel for cars.

About 70% of Brazilian vehicles use mixed fuels. The EU's fuel ethanol has increased by more than 70%.

Disasters have occurred frequently around the world this year.

Amid the layers of crises, the Food and Agriculture Organization of the United Nations released a report in October titled "Agricultural Harvest Forecast and Food Situation."

The report shows that due to natural disasters and man-made calamities, the world is facing a huge food crisis, and 40 countries are facing the threat of famine.

Agricultural product prices have been rising for the past 18 months, with sugar prices doubling and corn and wheat prices rising by 30%.

The report was quickly reprinted around the world.

At first, this report did not attract attention in the country. Against the backdrop of continuous increases in grain production, the domestic grain market seemed very calm.

But some people don't want to see this peace.

Two months ago.

Cargill headquarters, USA.

CEO Albert looked at the summarized information and a smile appeared on his face.

Just now, the U.S. Department of Agriculture announced that it will significantly increase subsidies for biofuel processing.

World food consumption will increase significantly.

More than 70% of that will be used to fuel American cars.

Before this, news of production cuts in major grain bases around the world had already spread through various channels.

Panic is everywhere.

Commodity prices continue to rise.

A feast is coming.

Albert looked at his subordinates and asked, "How is the food market in East Asia?"

The vice president is a fat white man. He smiled and said, "Except for China, food prices in other countries are rising very fast."

Albert was a little angry, "That's still not ideal."

The vice president said: "After all, China's arable land resources rank fourth in the world, and grain production has increased in the past two years."

Albert said: "But they have a large population, little land per capita, and fragmented arable land, so their production costs have no advantage at all..."

"It is safer to first reap the profits from Japan, South Korea, Southeast Asia, the Middle East, Africa and other places."

"China cannot give up either." Albert thought for a moment, "It's time for our partners to make some moves."

"After we have harvested other places, we will unite and go to China together."

……

Magic City.

Wilmar International and a series of multinational joint ventures acted quickly.

The 'Agricultural Harvest Forecast and Food Situation' originally released by the Food and Agriculture Organization of the United Nations has been interpreted in more depth.

And it was widely circulated in domestic media.

Unprecedented flooding in India and Pakistan has left millions homeless and hungry.

Australia, Argentina and Brazil experienced varying degrees of production cuts.

Niger is suffering from drought and a large-scale locust infestation. Almost all farmers' granaries are empty and the price of food sold in the market is twice as high as usual. In order to survive, many people have to eat wild grass and children die of starvation every day.

In each photo, the children were so emaciated from hunger that their ribs were clearly visible.

Civilians beg passers-by for water, and 600 million people in the country are threatened with death from hunger...

With the help of some people, news of famine abroad spread quickly in the country.

Soon it became known to everyone and people talked about this phenomenon on various occasions.

Some schools even launched donation campaigns.

In the grain market, due to the sluggish grain prices in the past two years, domestic restrictions on grain exports are not high.

Agricultural products with increased production, such as corn and cotton, began to increase exports and futures prices began to rise.

Food prices appear to be in danger of running out of control.

The pressure to avoid rising prices is gradually increasing.

The grain traders soon added fuel to the fire by manipulating the media and creating an atmosphere of panic, which is what they are best at.

Lujiazui.

Chen Changtao looked at his brother Chen Changjun and asked, "Have you checked the data on farmland resources in previous years?"

"Brother, this information is very easy to check."

Chen Changtao raised his eyebrows and said, "It's better to be convincing."

"Xinhua News Agency, People's Daily, are they enough? These cultivated land data have all been reported by official media. We just need to polish them up a bit."

"Well... also find someone to count the occupation of arable land in various places, and you can exaggerate it appropriately."

"it is good."

Not even two days passed.

Reports appeared on the Internet and in the media.

"Who will protect the arable land? The arable land area has decreased by 5 million mu in five years. The arable land area red line of 1.13 billion mu is in urgent need of being broken through. We are only 18 million mu away from breaking through the red line."

"Last year, a certain city provided 791 plots of land for various construction projects such as development zones, relocation, and automobile supporting industries, and more than 5 mu of arable land was occupied."

"The emphasis on farming and neglect of maintenance, as well as improper fertilization, has caused the quality of cultivated land to decline. Sichuan Province has lost a total of 1450 million mu of cultivated land, which is under tremendous pressure."

"A large amount of arable land in Hebei Province has been converted into orchards and forests, and the size of cities and towns has expanded. Steel, cement, electrolytic aluminum, golf courses, and high-end villas have occupied arable land."

"Farmland has been destroyed, and the sandstorm area on the Bashang Plateau is advancing at a speed of 30 meters per year."

"In 2005, my country's fuel ethanol production reached 10 billion liters, and in 2006, fiscal and taxation policies were introduced to support grain processing into fuel ethanol."

These messages are not bombarded at the same time, but are released bit by bit, constantly stirring up social emotions.

The melamine incident also caused people to worry about food security.

Prices of some agricultural products began to soar.

This also affected Jiahe Grain and Oil.

When Guo Yang was still immersed in the skyrocketing revenue of Alfalfa Agriculture and Animal Husbandry, there was a knock on the office door.

Guo Yang returned to normal.

"Please come in."

The person who came was Gaode, still wearing the same suit.

Gao De came forward and said, "Boss, domestic grain prices have recently been affected by international factors, and futures prices have risen rapidly. Do you want to continue?"

Guo Yang had not yet come to his senses from his thoughts. After thinking for a while, he asked:
"Has the food storage been completed?"

"We have achieved our goal." Gao De said, "We still have a lot of money left. Will it be too risky to continue to go long on futures?"

"How much more money is there?"

"More than 2 billion."

Guo Yang smiled and said, "I didn't expect to have the trouble of not being able to spend money."

Taking into account the funds in Alfalfa Agriculture and Animal Husbandry's account, as well as the repayments from Tianhe and Fengkai, Jiahe has at least another 60 to 70 billion yuan in funds to call upon.

Gao De sat down on the sofa and said, "The prices are a bit high now, and we have a lot of stockpiled goods. If the country suddenly controls exports, it will have a big impact on us."

Guo Yang said: "We will continue to purchase, but mainly corn. Last year's production increased by nearly 3000 million tons, so corn is definitely in surplus."

"By the way, what's the price of corn now?"

“1400 to 1500 yuan per ton.”

"It's equivalent to purchasing 1000 million tons, which is 140 to 150 billion yuan." Guo Yang pondered, "The group can come up with to billion yuan recently."

Gao De's eyes widened in surprise.

"Will it be too risky?"

In the past six months, the group has invested nearly 160 billion yuan in Jiahe Grain and Oil. If this part is included, the total amount is more than billion yuan.

Just to bet on rising food prices?
There was silence for a moment.

Gao De moved closer and whispered, "Boss, are the inflammatory remarks about food security in the media recently released by the group?"

Guo Yang frowned and asked, "What remarks? I've been busy with Hexi Dairy recently. Besides, I will definitely communicate with you about Jiahe Grain and Oil."

Gao De breathed a sigh of relief.

Maybe this time the publicity was all on the Internet and some local tabloids, so the boss didn't notice it.

Then explained the translation.

Guo Yang thought for a while and said, "It should be someone outside who is causing trouble and trying to raise the domestic grain prices."

"Could it be that they have already come in?"

"No." Guo Yang denied it flatly. "It's just a test at best. Now Jiahe can buy it with more confidence, and let them take over in the future."

Gaode doesn’t know where the boss got the confidence to make such a judgment. Food + futures, this is real 20 billion yuan of funds.

Add leverage... Gaode just feels that he has to be cautious at all times, and any negligence may lead to falling into the abyss.

At this moment, Gao De's phone rang. Guo Yang picked up the teacup and said, "You answer it first."

Gao De answered the phone. His eyes gradually changed, and his posture became more calm.

hang up.

Gao De licked his dry lips and said, "Boss, Xinhua News Agency just released a news flash about the increase in grain production and cultivated land area."

Guo Yang smiled and said, "That's good news. The price correction is like reversing to pick someone up. Jiahe is just adding to its position."

“Will it affect the follow-up?”

"No, the international food shortage is real and cannot be avoided no matter what."

Guo Yang has always been firm in this matter, because other people are hesitant and he must give enough confidence.

"That's really a good thing this time." Gao De said with a smile, "Xinhua News Agency's news has a great impact on the market."

"Oh?"

Guo Yang opened the computer page.

Find relevant information.

"According to the State Grain Administration, my country's grain output has maintained growth for three consecutive years, and achieved a leapfrog growth in 2006."

"The total grain output reached 5.38 million tons, an increase of 0.54 million tons over the previous year, an increase of 11.16%, of which corn output reached 1.76 million tons..."

"In addition, according to the Ministry of Land and Resources, my country achieved a counter-trend growth in cultivated land in 2006 through reclamation and development of unused land."

"It is expected to increase by about 18.41 million mu, and the total cultivated land area will reach billion mu."

The message was succinct.

The message conveyed is not simple.

Food security and arable land area are both national issues. Especially in such turbulent times, they can further enhance the confidence of the people.

In just a short while, it caused a lot of discussion among netizens.

"Last year, the production increased by only 3.1%, but this year the increase has reached 11.16%. Why does this data seem so unreal?"

"The cultivated land has increased by 10 million mu, so it's normal for grain production to increase!"

"That's not right. The yield per mu is 1000 kilograms. Ten million mu is only 500 million tons, which is only one tenth!"

"Never mind, it's a good thing anyway. Those alarmist rumors can be put to rest..."

Guo Yang turned his attention back from the Internet, looked at Gao De and said:
"Go and prepare early. I will ask Muhe, Tianhe and the Finance Department to cooperate with you."

"Okay, I'll get busy then."

Guo Yang no longer enjoyed the joy brought by Alfalfa No. 1, but started to look at the information that Ning Xiaojing brought in.

First is Tianhe Seed Industry.

Seed processing plants and warehousing and logistics have been running non-stop for the past two months.

Tianyu has sufficient seed reserves this year, and orders have not stopped since the dealer conference.

At the same time, due to Jiahe Grain and Oil's large-scale purchases, farmers' shipments were accelerated and with money, the financial pressure on distributors was greatly reduced.

The whole chain runs very smoothly.

Other seeds such as wheat, cotton, beans and vegetable seeds are equally good.

Wherever they go, Tianhe's dealers are grinning from ear to ear these days, as it is becoming increasingly easy for a town agent to earn more than one million yuan a year.

Tianhe, which is upstream of the industrial chain, has it even easier, with its revenue just reaching 40 billion yuan in the fourth quarter of last year.

The repayment of this part also reached 80%.

Astonishingly efficient.

Guo Yang had no time to get excited. When he saw the report of Fengkai Agricultural Machinery, he remembered the order Wu Feng gave him and got up and went outside.

Ning Xiaojing was still bending over to work, revealing her fair neck.

Guo Yang tapped the workstation and handed over the order. "This is an agricultural machinery order from Huihuang Seed Industry. Please contact them to handle it."

"it is good."

"If you are too busy, leave it to Yang Heng." Guo Yang said.

"I'll do it."

After Guo Yang left, two more people came to Ning Xiaojing's workstation after a while.

"Sister Ning, I just heard the boss say something about a brilliant order. Does the company have another order?"

"Do you want to keep it a secret? Tell us!"

Ning Xiaojing smiled and said, "Haven't you heard enough in this period of time? Is there no good news one day?"

Despite saying this, Ning Xiaojing still looked at the order quantity with the two of them and was stunned for a moment.

"This...Brilliance spent more than 20 million again?"

"The last time we bought alfalfa seeds, we spent more than 6000 million. Wow, Huihuang is Cheng Jiahe's ATM!"

"Sister Ning, I also want to transfer to the sales team. The year-end bonus will be scary!"

"envious……"

Ning Xiaojing also blinked.

But in my heart, I admire my boss even more.

Huihuang Seed Industry, Oasis Grass Industry, Yasheng Farm, Yangliuqing Grass Industry, Shandan Horse Farm...these companies have spent at least tens of millions of yuan on alfalfa this year.

Now we are placing orders for Fengkai agricultural machinery one after another...

There are many types of orders, large quantities, high amounts, convenient transactions, win-win cooperation, and stable relationships...

This is a smart business model.

A year and a half ago, she was the one who took the lead in drafting the alfalfa industry cluster, which was criticized as unqualified.

With the careful guidance of the boss, the subsequent alfalfa industry cluster planning was carried out.

After more than a year of preparation, is it finally beginning to show its power?

After Guo Yang returned to the office, he looked at Fengkai's financial statements, which also showed very good performance.

After seeing this, I sat there until the end of the get off work day.

The daytime hours became shorter and the nights came earlier. Guo Yang went to the cafeteria and had a hearty meal of stewed mutton. The mutton tasted more and more delicious and he enjoyed it very much.

After a sweaty workout in the evening, I feel extremely comfortable all over.

The only thing missing is the taste of sesame tea.

With regret, Guo Yang lay on the bed, his mind immersed in the seed shop, studying it.

……

In the outside world, the substantial increase in grain production and the increase in cultivated land area against the trend have had a strong impact on the Internet.

Portal websites reprinted the article.

During the evening news, the official media also made official reports directly.

The report lasted for several minutes and the content was extremely detailed. In addition to the increase in grain production, more importantly, it gave an in-depth introduction to arable land.

In a residential area in Beijing.

Father Xu sat on the sofa, staring at the news intently.

"Shandong Province has focused on the Yellow River Delta and coastal tidal flats, and has adopted the method of planting grass to replace salt to improve saline-alkali land, adding 360 million mu of arable land.

Dongying is located at the tail of the Yellow River and the coast of the Bohai Sea. As a place retreating from the sea, the soil is seriously salinized. Two-thirds of the city’s 341 million mu of saline-alkali land has been turned into fertile fields.”

"Su Province has increased the use of low-yield saline-alkali land in the coastal areas of Beixu and the eastern part of the province, and has added a large number of fertile fields by planting grass and converting it to salt."

"Through land consolidation and green manure planting, the land quality in Wuyuan, Meng Province has generally improved by 1 to 2 levels, and the average grain yield per mu has increased by about 110 kilograms."

"my country has little per capita arable land, little high-quality arable land, few reserve resources, and poor basic conditions. It is a country with small per capita arable land resources..."

"Salt-alkali land is clean and pure land and an important resource for producing high-quality agricultural products."

"In recent years, under the leadership of local governments, Alfalfa Agriculture and Animal Husbandry and other government-run enterprises, the utilization of saline-alkali land has shifted from saline-alkali management to saline-alkali adaptation..."

"The previous governance model was simply to 'flood and wash away the salt', which wasted a lot of fresh water resources and was prone to recurrence."

"Now, Alfalfa Farming has successfully cultivated 'salt-eating plants' that can 'eat' and remove salt from the soil."

"Alfalfa's 'salt-eating plants' are becoming a powerful tool for improving saline-alkali land, and can also greatly fertilize the soil."

"The vast saline-alkali land, after being improved by planting high-quality varieties, has not only been transformed into a granary, but also into a vegetable basket and orchard.

Across the country, not only wheat, fodder, soybeans, and rice grow in saline-alkali land, but salt-alkali-tolerant vegetables and fruits also have a bumper harvest.”

...

Father Xu stared in a daze.

The names of provinces, cities and counties appeared on TV, as well as images of many local leaders.

His first reaction was that these people were going to be promoted.

The balance between cultivated land occupation and compensation has been emphasized countless times by top leaders, and it is also secretly an important performance evaluation indicator.

However, these places have enabled the country's cultivated land area to grow against the trend.

This is a huge event for the entire country.

At this time, my daughter Xu Xiaoxue came out of the room and went to the bathroom.

Father Xu frowned and suddenly thought of the only company name that appeared in the news - Alfalfa Agriculture and Animal Husbandry.

He seemed to have some impression of it. Yes, he had heard this name two years ago.

It was also a news report - saline-alkali land turned into pasture, but it was in Jiuquan. When Xu Xiaoxue came out, Xu's father said, "Girl, wait a minute."

"Dad, what's wrong?"

(End of this chapter)