Chapter 327 Continuous Profits

Nasser thought about it carefully.

The person who bid with him last time was also very thin, but it should not be this person. However, this did not prevent him from knowing the other party's identity.

People from the island country!

The reason why it appeared in Jiahe at this time was specifically to import alfalfa. Coincidentally, alfalfa is also among Saudi Arabia’s targets today, and there may be competition in other directions as well.

Nasser took two quick steps forward and whispered something into Haifa's ear. Haifa looked surprised at first.

Then he looked at Guo Yang who was leading the way in front, as if thinking about something, and asked directly after entering the meeting room.

"Guo, what was that just now?"

Guo Yang did not intend to hide it, and said: "It is from Marubeni Corporation in the island country, for food and fodder."

The Arab expedition team immediately became alert. Marubeni Corporation, one of the world's top groups, has done business all over the world and no one would look down on it.

"But we came first."

"Understood. Of course, you will be given priority." Guo Yang said with a smile: "As long as we dare to take it, we will definitely be able to meet the customer's requirements."

"That's good."

After this incident, Haifa Saudi Arabia doesn't want to delay any longer, as the longer the night, the more trouble it will cause!
Compared with yesterday, the Arab Agricultural Services Company brought all the people who were doing business here today, and soon, Jiahe gave a price based on Saudi Arabia’s product category needs.

Nasser, general manager of Saudi Agricultural Services Company, looked at the price and was surprised for a moment. This price is very fair!

After some communication, Nasser's side compiled a detailed list of procurement requirements.

Guo Yang took the summary sheet and started looking at it. Others were also checking the detailed list.

The list summary was not long, and Guo Yang finished reading it easily at a glance, but the content was very explosive.

Alfalfa: 50 tons;

Corn: 200 million tons;

Rice: 50 tons;

Barley: 100 million tons;

Wheat: 100 million tons;

These are all bulk commodities, and the rest include vegetables, mainly carrots, onions, potatoes and garlic.

In addition, there are some seed demands, but Saudi Arabia is not very clear about Jiahe’s seed situation, so it is not listed specifically.

So much food...what does the rich man want to do?
Guo Yang directly asked the question in his mind, "Can the people of Saudi Arabia digest all the food they buy?"

After more than 30 years of hard work, Saudi Arabia has not only achieved self-sufficiency in food, but also has surplus capacity for export.

The transformation has only been going on for a year, so the domestic grain output should not be low!
If we just stop growing grain completely, the farmers will be furious. Oh, it seems that there have been marches and protests, but the gap will not be so big.

Haifa took over and said, "Some are bought for other countries."

“Saudi Arabia also engages in grain trade?”

Haifa said: "We have some business, mainly in Egypt. They have no foreign exchange, there is a severe food shortage in the country, and the political situation is unstable. They asked us for help, and this time we brought goods."

The relationship between Saudi Arabia and Egypt is not perfect, but it is indeed very good, which is understandable.

Alfalfa, barley, rice, and vegetables are what Saudi Arabia needs. Alfalfa is used to feed cattle, sheep, and chickens, and barley is used to feed camels.

Wheat and corn should be what Egypt needs.

We can also get some clues from the quantities: 200 million tons of corn account for 40% of Egypt's imports, while wheat only accounts for a few percent.

But with just a dozen or so points, Jiahe doesn't have the ability to do so.

"I'm sorry, I didn't know you wanted such a large quantity." Guo Yang pondered for a moment and said with some regret: "The quantity of rice and wheat may not be enough, and barley is even less likely."

Jiahe can actually get enough rice and wheat, but the key is that it cannot get that much export quota, so there is no hope.

Barley is even more difficult because it only takes a few days for barley to germinate, so in China barley is used to make beer.

With the speed of development of the domestic beer industry, barley has long been imported in large quantities from abroad.

Saudi Arabia is the largest importer of barley, which is used to feed camels, importing five to six million tons each year; China ranks second, using it for brewing wine.

Barley is also in short supply internationally, and the price has risen to more than US$280 per ton, approaching US$300.

This rich guy probably wrote down everything that was missing from the list.

But Jiahe does have barley resources because of its geographical advantage of being located in the Hexi Corridor, which is also the best barley producing area in the country.

But Saudi Arabia produces millions of tons at any time. Who can afford it?
It is not impossible to export it, but Saudi Arabia uses it to feed camels, so the price does not have an advantage.

Nasser said, "Will there be enough alfalfa?"

"no problem."

The price of alfalfa to large farmers remains at an extremely high level. In other words, the price of premium hay can still reach US$380 per ton.

50 tons, valued at US$1.9 million.

"How much food can Jiahe prepare?"

"Let us discuss this for a moment."

Guo Yang walked quickly back to his office, thinking while calling Chen Yanqiu who was on an inspection trip.

Marubeni Corporation has put forward a purchase demand of 400 million tons of corn, plus these 200 million tons of corn, the total is 600 million tons.

This amount is not much for Jiahe, but when piled together, it will test Jiahe's transportation capabilities.

Warehousing and logistics are indeed a weak point.

After the call was connected, Guo Yang briefly and quickly introduced the situation to Chen Yanqiu.

However, there was also a problem with Chen Yanqiu.

"Boss, South Korea has also sent a request for corn purchases, and the total purchase volume is expected to be over a million tons."

"It's also very urgent. 80% of South Korean consumers are against biotech foods. Because of the GMO incident in North America, there is already a well-organized group of opponents in South Korea."

Like other island countries, South Korea needs to import all other grains except rice, whose self-sufficiency rate has remained stable at over 90%.

This time there is also a North American influence.

So Guo Yang was not surprised at all, it was just that they all got together and he felt a little bit happy and troubled.

As for why they all turned to Jiahe, one reason was that other companies had previously been bearish and were not fully committed to stockpiling.

Only Jiahe has a large inventory, and the goods are all placed in the transit warehouse at the port, so they can be loaded directly onto the ship after signing the contract.

The export channels are also more open than national grain.

But if this continues, it will be unbearable!
After communicating with Chen Yanqiu, Guo Yang had a rough idea of ​​Jiahe Grain and Oil’s current capabilities and immediately returned to the meeting room.

"Guo, is there any result?"

Nasser asked impatiently, more and more countries began to restrict food trade, causing headaches for food importing countries.

Guo Yang took the list summary sheet and modified some data on it.

Rice was changed to 10 tons, wheat was changed to 20 tons, and barley was 0 tons.

Everything else has not changed, corn is still 200 million tons and alfalfa is 50 tons.

Corn was quoted at $184/ton, rice at $353/ton, wheat at $315/ton, and alfalfa at $380/ton.

3.68+0.353+0.63+1.9=6.563美元，约49亿元！

Food prices in the international market have been very chaotic recently, but generally speaking the increase in spot prices is lower than that in futures prices.

Moreover, the trend of rising food prices will become more obvious as time goes by, so it is definitely better to sell now than later.

But the most important thing about food is its circulation, especially when there is a huge surplus of corn in the country.

Therefore, Jiahe did not care too much about the gains and losses, but just wanted to improve and optimize the warehousing and logistics system.

Let’s start with these few orders.

Therefore, in the eyes of Nasser and others, although the amount of grain was cut, the price was undoubtedly extremely generous.

The futures prices of rice and wheat are generally 20% higher than Jiahe's spot prices, and corn is also above 15%.

This is a reciprocal transaction.

Jiahe did not take the opportunity to ask for a price.

This made Haifa and Nasser feel the sincerity.

So they also showed their sincerity. After Haifa and Nasser whispered a few words, Nasser put forward new demands.

"Guo, we also want to purchase a batch of tractors."

Guo Yang, who was drinking tea during the break, was stunned for a moment. What else?
"Row."

But his eyes were looking at Yu Xiaochuan, because Guo Yang had no idea about the situation of agricultural machinery in Saudi Arabia.

Yu Xiaochuan understood immediately, "Mr. Nasser, Fengkai's Cheetah 50, Cheetah 70, and Cheetah 120 series are very suitable for the conditions in Arab countries."

Several people communicated for a while.

Guo Yang also learned more about the situation.

Everyone thinks that rich people are stupid and have a lot of money, but in fact, they still have other ideas.

Take agricultural machinery for example. Saudi Arabia’s industrial level is very low and it cannot produce large agricultural machinery such as tractors, but Saudi Arabia exports two to three hundred tractors every year.

It all depends on changing clothes!

The obsolete ones are sold to other countries.

However, Saudi Arabia prefers tractors from Europe, the United States and island countries, and still has doubts about the Cheetah series. Fortunately, Fengkai exported a batch to Iran in the past two years and performed well.

This led Saudi Arabia to place an order for 50 units, mainly small and medium-sized models with 50 horsepower or less.

But when Guo Yang heard the offer made by Yu Xiaochuan, he was still shocked.

The average price per unit is 2.4 US dollars, which is about 18 RMB!

In China, the price of a Cheetah 120 is exactly 18 yuan, and the price of a Cheetah 50 is 4.5 yuan.

Although the total value is only 900 million yuan, it feels great to have this premium output!
Guo Yang also personally informed Pu Fei about this batch of goods. He asked them to do their best in production and to establish a long-term business!
Adding the amount of vegetables, seeds and pesticides, the value of this order has reached 49.95 billion yuan, approaching 50 billion yuan.

It's a pity that it's just a little bit off.

After discussing the purchase order, the day was almost over, but there was still some cooperation on some investment projects to discuss.

It was two days later before it finally came to an end.

During these two days, Guo Yang led the Arab delegation to visit several farms.

The exhibition showcases various work results including salinization and alkali control, solar greenhouses, water-saving agriculture, and organic agriculture.

To Guo Yang's surprise, Saudi Arabia was very interested in organic farming. After a detailed discussion, he found out that it was because of the extremely high rates of obesity and diabetes.

This has led to extremely high demand for organic food in the Gulf countries, and the GCC organic food market has reached more than US$1500 billion.

Saudi Arabia accounts for 90% of this.

After learning about this situation, Guo Yang took people to visit the Natural Enemy Center without hesitation.

Sure enough, Haifa, Nasser and others showed great interest.

In the Natural Enemy Center, Xu Xuenong gave a detailed introduction to the group, but they were not satisfied and wanted to see the specific scenes.

In a solar greenhouse in the Gobi Desert, everything is very quiet and ordinary.

But Xu Xuenong was able to speak fluently in fluent English and described the scene as quite spectacular.

"Don't underestimate this place. In fact, a fierce war is going on here."

"The East Asian flower stink bug fights against thrips, the entomologist Aphididae fights against whiteflies, and the predatory mites fight against spider mites... The natural enemy insects have a clear division of labor and each performs its own duties, jointly protecting the growth of vegetables."

"Natural enemy insects originate from nature and maintain the ecological balance of farmland. They can be widely used in orchards, fields, greenhouses and horticultural crops."

Haifa and others then looked at some of the images captured by the micro-camera and also saw the actual captured images in the greenhouse.

If everyone was just curious about parasitic natural enemy insects such as the trichogrammatid wasp, then the predatory natural enemy insects actually made several people extremely interested.

"What kind of insect is that red one? It's so ferocious. It ate another one so fast!"

"Looks like Starscream."

"Starscream is a pest!"

"Another aphid!"

I saw a small red thing rushing towards a pest with extremely agility and powerful behavior.

Guo Yang recognized it and said with a smile, "Is it a giant red mite? It's a beneficial insect and the nemesis of red spiders."

Xu Xuenong said: "Yes, this is the giant orchard mite, a powerful hunter against many small pests in the field. We plan to develop it into a product."

Guo Yang asked, "Isn't it said that breeding giant red mites will kill each other?"

"I can overcome it for now."

Nasser suddenly said, "Sell it? Or, is Jiahe interested in investing and building a factory in Saudi Arabia? This thing is very useful to us." "Of course."

Haifa said, "By the way, buy another batch."

"No problem." Xu Xuenong took out a straight white plastic bottle. "Is this okay? There is a carrier matrix inside. There are several thousand giant red mites in each bottle."

"can."

Looking at Haifa Saudi's fiery eyes, Guo Yang suddenly remembered his royal status. The Saudi royal family seemed to like playing with birds of prey such as falcons and eagles.

The largest buyers of domestic poachers come from the Middle East. Could it be that Haifa is now interested in this thing as well?
More likely it was a spur of the moment thing.

But this is a good thing. In addition to natural enemy insects, biological pesticides have also been included in Saudi Arabia’s procurement list.

During this patchwork process, the order eventually exceeded 50 billion yuan!

Compared to the financial market, this is much lower than the return on orders, but the practical significance is equally significant.

This is the foundation.

After everything was settled, Haifa, on behalf of Saudi Arabia, extended a strong invitation to Golden Harvest.

With the check in hand, Guo Yang immediately agreed to increase investment in Saudi Arabia.

In addition to sand control and salinization control, it also includes organic vegetable and fruit farms, sea rice cultivation, breeding research and development, agricultural product trade and many other fields.

...

Everything is harmonious on the Saudi side.

But Hoshihiro Hoshi and Daisuke Okada of Marubeni Corporation felt very uncomfortable.

Their main purpose was to obtain 400 million tons of corn, for which Jiahe had readily accepted the order. However, the remaining 80 tons of alfalfa encountered many twists and turns.

There is no special grade alfalfa at all, and even the first and second grade alfalfa cannot fully meet the needs, so some other forage grasses such as oat hay have to be used as a substitute.

Even if it is a replacement, it will take a long time to prepare the stock.

However, during their field investigation, they discovered that there were still many packaged alfalfa bales in the alfalfa warehouse.

This made the people of Xingbo extremely dissatisfied, and they vented their anger in front of Xie Shijie.

"Thank you. Marubeni came with sincerity. This is a nearly $10 billion business. Can the Saudi market be as big as ours?"

"You guys broke the contract first." Xie Shijie said calmly, "So, we didn't prepare any shipments for the island countries in the second half of the year."

Having said that, Xie Shijie was indeed a little touched. One billion US dollars!

It could also be a long-term business.

However, when it came to the trade sanctions against alfalfa at the beginning of the year, the island nation’s agriculture and forestry departments sided with the United States.

There was no mercy when the contract was torn up, which caused considerable trouble to Alfalfa's alfalfa sales in the first half of the year.

“If this is the case, Marubeni may consider importing alfalfa from Spain in the future.”

"That's fine." Xie Shijie said with a smile, "If you are willing to adapt to the Spanish dehydrated alfalfa process."

Daisuke Okada felt like he was facing a thick wall with no loopholes at all.

Spain is indeed an option.

But it's too far away, and the quality is not as good as alfalfa. Damn, how could America make such a stupid mistake!
The domestic situation cannot be delayed any longer.

In the end, Marubeni had no choice but to accept the proposal put forward by Golden Harvest.

When the news was passed back to higher-level management at Marubeni, it also caused great indignation.

At a meeting, Marubeni conducted a detailed analysis of its current situation, and finally the leaders made a decision.

"Marubeni is the largest grain trader in China, but its ability to transport grain to farms around the world is only 700 to 800 million tons."

"The situation has changed now. China is likely to become the world's largest corn producer this year. The era when the United States dominated global corn production and exports is over."

"So, Marubeni must also enter China's corn market! To invest, to acquire, and to expand Marubeni's influence."

"Only in this way can the island nation not be completely without the ability to resist when facing a crisis."

The island country felt very aggrieved about this loss.

Even if one has long been accustomed to power, the degree of discomfort caused by oppression from different objects is incomparable!

...

The Saudi delegation has left, but the established grain purchase target has not been achieved, so they still have to go to Pakistan to import rice.

Just because India began to restrict rice exports.

But China’s quantity is insufficient.

But overall I was very satisfied with the trip and signed many contract agreements.

Before leaving, Guo Yang also presented a lot of fine sesame tea and sesame honey. Haifa Saud and Walaid Bu Farah, two members of the royal family of Saudi Arabia and the United Arab Emirates, both felt the goodwill.

Marubeni also left a lucrative order for Jiahe, but left with a lot on his mind.

When Guo Yang saw the order amount, he was slightly stunned.

Corn pricing did not become more favorable due to the larger quantity and remains at US$184 per ton.

Because alfalfa was of lower grade and mixed with other forage grasses such as oats, the final average price was US$295 per ton.

The total amount reached US$9.72 million, significantly higher than the order amount of the Arab delegation.

It seems a bit unfair to Marubeni.

In fact, there is nothing wrong with doing so. Marubeni is a strong competitor with countless branches and joint ventures in China.

The two countries are so close. If China becomes a grain exporter, the island country will be the world's major grain importer.

By then, there will be many good shows to watch.

A similar example is South Korea. Chen Yanqiu also agreed to import 100 million tons of corn from South Korea and directly transferred grain from Northeast China.

It can also be seen from the quantity that the two countries must have other procurement channels in the country.

But it doesn’t matter. As long as it can solve the current backlog of corn in the country, it’s a good thing.

After all, this kind of large-scale export of corn is the first time for the country to do so!
Sure enough, as Jiahe Grain and Oil announced that it had reached large corn orders with Saudi Arabia, the island country, and South Korea, other companies also announced that they had signed orders.

Shandong Province's New Hope Liuhe Group and Marubeni Corporation have reached a feed order of nearly 10 billion yuan, and the two parties are also interested in jointly building a factory.

South Korea also reached a corn purchase order of 300 million tons with the National Grain and Oils Reserves Corporation, three times that of Jiahe.

Baodao also urgently purchased a batch of corn from the National Grain Bureau...

As this information came out, the domestic corn spot market finally stabilized and the price gap with futures began to narrow.

The People's Daily published a special article praising the country's grain production increase for five consecutive years.

The past two years have seen super bumper harvests, with the soybean self-sufficiency rate rebounding from a declining 30% to 60%.

Corn has become a major exporter.

During the period of rapid domestic economic development, the growth rate of grain production exceeded the growth rate of consumption for the first time.

This ensures the development of basic domestic livelihood and significantly increases the influence on neighboring countries.

However, we must also proactively address the problems that have emerged in this process. Incidents of low grain prices hurting farmers have occurred frequently this year, and we must proactively respond.

A spokesperson for the Ministry of Agriculture gave a solution when interviewed by reporters.

"The Ministry of Agriculture plans to increase subsidies for soybean planting next year to encourage corn growers to switch to soybean planting and strive to achieve full domestic grain self-sufficiency."

“Subsidies for rice and wheat will also be increased.”

Guo Yang browsed through the recent headlines. The country’s attitude was very clear. It specifically pointed out that it would reduce the area planted with corn.

This is not good news for the corn seed industry next year.

It is estimated that companies such as Denghai, Longping High-Tech, and Kenfeng will be furious. Just as their newly launched varieties have shown some improvement, the sown area will have to be reduced again next year. Whoever is in this situation will be uncomfortable.

In fact, this year's domestic corn production increase data should be higher than the estimated 8000 million tons.

The yields of varieties such as Denghai No. 10, Lihe No. 16, and Demeya No. 1 are also higher than before, but they have been overlooked.

Where there are disadvantages, there are advantages, and the one that benefits is naturally the soybean seed industry.

The domestic market was originally very weak in this area until the emergence of the Tiandou series, which marked the beginning of Tianhe's leap into the lead.

Therefore, for at least three years, Tianhe will not face any obstacles in its soybean seed business in China.

Guo Yang also decided to let Tianhe develop freely.

While I was watching intently, another phone call came in, from Xue Liqiang from Jiusan Grain and Oil.

"Hey, Mr. Xue, the Jiusan Group should be doing well recently. The price of soybeans has increased a lot."

"Hehe." Xue Liqiang laughed, "You are just living too well. I came to discuss how to distribute the dividends with you."

"Dividends? What dividends?"

“The 30 mu of organic soybeans along the coast are profitable this year.”

“It’s only the second year and it’s profitable?”

30 mu of organic soybeans are grown on coastal saline-alkali land. The cycle is two: deep plowing of Alfalfa No. 1 green manure - soybeans - deep plowing of green manure - soybeans.

Only one crop of soybeans produces profit each year.

"Yeah!" Xue Liqiang said, "Non-GMO soybeans are in great demand internationally this year, not to mention organic soybeans."

“Hasn’t the international organic certification been completed yet?”

"It all depends on the support of my peers."

Guo Yang understood that the anti-GMO wave had reached a new height.

“How much profit?”

"Total sales this year are 2.862 million, with profits of 7020 million."

"so tall?"

"What do you think the unit price of soybeans is this year?"

"Don't guess, don't keep us in suspense, just tell me!"

"You are such a boring person. This year, soybeans are sold at sky-high prices, with the average price reaching $530 per ton!"

Today's Chicago soybean futures price is $410/ton. Is the spot price higher than the futures price? Even higher by $120?

"You're scared, right? I was also scared by those foreign merchants this year. There were only a little over 7 tons in total, and they were so fierce in grabbing them."

"There won't be Marubeni Corporation, will there?"

"how do you know?"

"Marubeni also came to Jiahe a few days ago."

"..."

"Let's distribute the dividends in full according to the ratio. Muhe invested 3 million yuan in the beginning, and it can be considered a return on investment."

It has to be said that the consumption power of Europe and island countries is indeed high.

Greenpeace is also very powerful.

This is also a huge test for the governments of food-importing countries, as the demand for China's non-GMO soybeans is increasing.

Domestic soybeans are usually processed into soy products, and the export price is already high.

Nowadays, it has even deviated from the actual price and can no longer be understood by common sense.

October is worthy of its reputation as the golden autumn. Before the middle of the month, Jiahe has received large orders one after another and made considerable profits.

After all, the average price of corn stored in the early stage was about 0.52 yuan/jin, the selling price was about 0.69, and the gross profit was about 32.7%.

No matter how bad Jiahe’s warehousing and logistics are, it should have a net profit of more than 10 points.

In addition, although most of the alfalfa is purchased and processed, the overall profit is also good.

In total, including the orders from South Korea, these orders worth more than 150 billion yuan can bring Golden Harvest a net profit of about 27 billion yuan.

There is a huge difference compared to the returns from futures, but this is real industry, and everyone in the entire industry chain will benefit from it.

However, it’s time to change the focus.

Don't worry about Tianhe, just pay more attention to Jiahe Grain and Oil. The cotton picker needs to be followed up, and the support from the Middle East to Yu Xiaochuan also needs to keep up.

The rest of our energy should be focused on new ecological governance projects.

In these two months, the natural energy points have reached 5591 points again, and I can do a lot of things.

A long list of breeding goals has already been recorded: flowers, fruits and vegetables, extreme environments, natural enemy insects, water area management, and lavender.

Now Guo Yang is waiting for the scientific expedition team to return.

(End of this chapter)