Chapter 336: Organic fertilizer; Revenue; Grain and oil

"The most urgent thing now is to solve the supply chain of fertilizers, which is Denong's biggest dilemma at the moment," said Yuan Wenwu.

Although Denon’s warehouses are full, the reserves are not much compared to the demand.

The warehouse may be out of stock before the spring plowing season is over.

Yang Fuyun, purchasing manager of Denong, pondered, "We have contacted upstream suppliers and are currently producing at full capacity, but we will have to wait until at least the second half of the year to resume supplying Denong."

Supplying in the second half of the year means there will be a two to three month window period in between.

In the meeting room, everyone was making plans.

It is necessary to move into upstream chemical production, but there is not enough time, and currently we still have to focus on purchasing.

The focus is on upstream fertilizer plants.

Guo Yang patted the table lightly.

Everyone was paying attention to the boss's expression, and for a moment, the meeting room fell silent.

The arrangements before and after the snowstorm were all strongly pushed forward by the boss. Now the situation is very good and everyone is full of admiration.

"Where is the organic fertilizer from Hexi Animal Husbandry?"

Guo Yang said: "It's too late to produce fertilizers, but is there any problem in spinning off the commercial organic fertilizer production and sales of Hexi Animal Husbandry to Denong?"

Just thought for a moment.

"Yes." Yuan Wenwu said: "The current price of commercial organic fertilizer is 400 to 1000 yuan per ton, which can replace part of it."

Someone asked: "What is the quality of Hexi Animal Husbandry's organic fertilizer?"

“It’s mostly refined organic fertilizer.”

"We just need to change the production process and model, and there is still time."

The production raw materials of commercial organic fertilizers are abundant and varied. According to their main components, they can be divided into: feces organic fertilizer, straw organic fertilizer, humic acid organic fertilizer, waste residue organic fertilizer, sludge organic fertilizer, etc.

Hexi animal husbandry mainly produces livestock and poultry manure and crop straw.

However, according to the production model, it is a refined organic fertilizer, mainly used for green and organic agricultural products, mainly to provide organic matter and a small amount of nutrients.

There may be nutrient deficiencies when used for field agricultural production.

So two more modes are needed.

1. Organic-inorganic compound fertilizers contain a certain proportion of organic matter and a high level of quick-acting nutrients;

3. Bio-organic fertilizers: In addition to containing high levels of organic matter, the products also contain functional bacteria that can improve the nutrient release capacity of fertilizers or soils;
"That's settled then." Guo Yang turned to Ning Xiaojing and said, "Go ask Mr. Qiu if he can attend the video conference now?"

In just a few words, we have the solution.

After a while, Qiu Jingrang, general manager of Hexi Animal Husbandry, came online.

Guo Yang said directly: "The group is going to divest the production and sales of commercial organic fertilizers and hand it over to Denong."

"No problem!" Qiu Jingrang agreed readily.

The disposal of manure and environmental pollution are the biggest headaches for the ranch. Now that they can be handed over, it is a good thing for Hexi.

But after thinking it over, Qiu Jingrang asked, "Are you going to sell it to the outside world?"

"Correct."

"Well... there is a problem. The group's organic fertilizer has always been for internal use, and the current production capacity can only meet internal demand."

Qiu Jingrang explained it in detail.

An adult cow produces 20 kilograms of dung every day, about 7.3 tons a year. 40 cows produce 292 million tons. Together with beef cattle, mutton, and auxiliary materials, the annual output is 350 to 400 million tons.

The current major users are the 100 million acre soybean bases in Jinta and Zepu, with 2 tons per acre, which is 200 million tons;

The Eastern Ranch will supply 30 mu of coastal organic soybean base, 100 million tons per year;

The four orchard bases also use 3 to 5 tons per year;

The organic fertilizer produced by the Asafoetida Gobi Desert and the pastures in Xinjiang Province can be completely digested by Qinghe Agriculture’s 200 million mu of Gobi Desert itself;

The Urad grassland is basically in the process of grassland restoration, digesting itself. In two years, it will also undertake the soil improvement of the Xanthoceras sorbifolia energy forest.

The leprosy trees in the south will be transplanted this year, and the organic fertilizer has been reserved...

When you count it up, there's really nothing left.

After listening to this, Guo Yang thought for a while and made a decision.

"First, we will expand production capacity on existing production lines and obtain raw materials according to local conditions. In addition to livestock and poultry manure, weathered coal, peat soil, and agricultural and sideline product waste from Jiahe Grain and Oil can all be used."

"Second, the plan to use organic fertilizer as base fertilizer for the Urat grassland and jatropha trees should be put on hold."

"Third, Denong still has 110 million tons in reserve. We should change our sales strategy and buy more time to expand production."

In the long run, a combination of organic and chemical fertilizers is best for the soil.

Before 1949, organic nutrients accounted for more than 99% of the land in my country, and by the 80s, it was still 60%.

However, with the rise of the chemical fertilizer industry, the disadvantages of organic fertilizers have become apparent, and by this year the proportion is only over 20%.

The output of grain and vegetables is increasing, but the price is the decline of arable land quality. Mountain soil is seriously eroded and its physical and chemical properties are getting worse and worse: acid, thin, hard, sticky, dry...

The most intuitive feeling is the quality of agricultural products.

The rice grains are of poor quality, the fruit has a high water content, the sugar/acid ratio is not suitable, the color, aroma and taste of the tea are poor...

In other words, it's not as good as before, and this is criticized by more and more people.

After eating, people start to pursue higher quality, which is also the market demand.

At present, green agriculture and organic agriculture are beginning to rise across the country, and the demand for organic fertilizers is growing rapidly.

Taking Jiangxi Province as an example, the annual demand for refined organic fertilizers for organic agriculture has reached 120 million tons.

Including other organic fertilizers, the total demand is about 150 million tons.

The country has a rigid demand of 2000 million tons, and the potential demand is even higher.

After all, the current average level of organic fertilizer application is very low. Even for fruits, vegetables, tea trees, flue-cured tobacco, and flowers, the amount used per acre is only 300 to 500 kilograms.

The weight of field crops is even lower, only 200 to 300 kilograms.

In fact, the nutrients of organic fertilizer are better than those of chemical fertilizer, and the amount used per mu is at least 2 to 3 tons.

One reason is the price, and the other is because the labor intensity is greater.

Therefore, Denong’s external organic fertilizer production must add inorganic fertilizer ingredients such as nitrogen, phosphorus and potassium, and the cost must also be reduced.

After discussing bit by bit, the plan was finally finalized.

Denong aims to realize its plan of producing 2000 million tons of commercial organic fertilizer annually within three years.

A large part of it will be used within the group.

In addition to external sales, the planting bases cooperating with Jiahe Grain and Oil will also increase the proportion of organic fertilizer use.

The video conference did not end until noon.

...

In early March, the damage caused by the snowstorm was irreversible, but fortunately the weather in the south gradually improved.

The Northwest is gradually emerging from the cold.

This winter also has profound significance for Jiahe. Houses were distributed after New Year's Day, and dividends were distributed to employees during the Spring Festival.

During this snowstorm in the south, the Jiahe system also demonstrated strong competitiveness.

Not only has there been rapid progress in agricultural supplies, but Hexi Dairy, Jiahe Supermarket, and Jiahe Grain and Oil have also achieved brilliant results.

"Dong dong."

"Enter."

Ning Xiaojing walked in.

"Boss, the finance department sent us last year's revenue data, but Weiguang and Blue Star didn't submit last year's financial report. Did they say it was your order?"

"Yes." Guo Yang raised his head and took the report, glanced at it, and asked, "Is the relocation ceremony ready?"

"Everything is in place and will be held as scheduled. The city and provincial leaders will attend on time."

"Okay, hard work."

After hesitating for two seconds, Ning Xiaojing asked, "Boss, aren't you in a hurry to take a look at the financial statements?"

"Why, what's wrong with the data?"

"No." Ning Xiaojing choked, not knowing how to answer. When she first saw last year's financial report, she was completely dumbfounded.

Guo Yang smiled and said, "I am very clear about the company's operating conditions. They are in line with my expectations."

Ning Xiaojing had a big look of admiration on her face and turned around to get busy.

Only then did Guo Yang pick up this surprising financial report.

Last year, Golden Harvest Group’s total revenue exceeded 350 billion for the first time, compared to 262 billion the year before, a growth rate of %.

It’s just that some of the revenue data are transferred from one hand to the other, and the data added up internally still has a lot of water in it.

In addition, investments in industrial expansion, ecological governance, etc. are also extremely large.

At the same time, there are many investments in warehousing and logistics, water-saving drip irrigation, Dunhuang wetlands, etc., and the money has not yet been spent.

Overall, the net profit is not high.

Of course, if the profits of Weiguang and Blue Star from futures are added, this will be extremely terrifying.

It just can’t last.

The situation this year will also be more complicated.

As the number of well-developed saline-alkali lands decreases, the potential of Alfalfa 1 in China is not high, and the use of second-generation varieties is becoming more and more frequent.

Similarly, the market share of Tianyu No. 1 and Tiandou No. 1 is too high, and their homogeneity makes pests and diseases increasingly difficult to control.

The main thing is that the opponent's imitation species have also appeared... and there are still many problems.

But no matter what, this result is enough to make Guo Yang satisfied.

By the afternoon, this revenue had caused a huge sensation within the group!
Flooding the group.

"?????"

"Has it really exceeded 100 billion?"

After Bao Xinyu learned the news, he immediately sent a string of question marks, followed by a barrage of messages.

"How did it break 100 billion?"

"what happened?"

“Falcon has no sense of participation at all except losing money.”

No one paid attention to him. Not everyone can see the specific financial report, but people in the spam group know the general idea.

But where does this 100 billion yuan in revenue come from?

Two years ago, Muhe, Tianhe and Hexi all had revenues of over 10 billion yuan, Fengkai had only over 2 billion yuan, and the others were just small shrimps.

This year, except for Jiahe Grain and Oil, the growth of the other companies should also be terrifying.

It's not hard to guess.

However, at the group headquarters relocation ceremony the next day, Xie Shijie, Qu Yang, Pu Fei, Ji Zhuowen and others who rushed back still couldn't help but be curious.

They came to Guo Yang one after another to inquire about the situation.

Guo Yang did not hide it and explained the situation to everyone.

The result was not beyond everyone's expectations, but they still felt excited, so much so that everyone seemed a little strange during the ceremony.

Qin Lijun, who was standing next to Guo Yang, smiled and said, "Boss Guo, Jiahe's morale is very high!"

"Haha, not bad."

Amidst cheers, Jiahe’s new headquarters in the Gobi Desert was put into use.

Although the three-dimensional building is still bare for the time being, a new journey has begun. …

A document entitled "Preferential Policies for Developing High-Efficiency Water-Saving Agriculture" spread quickly in the Jiuquan area, attracting the attention of many farmers.

A village in Dunhuang.

A group of villagers listened to a village cadre reading a document.

"In order to protect the ecological environment and save limited water resources, the city plans to spend 1.5 million yuan this year to subsidize water-saving drip irrigation..."

"Wow, the city is really spending a lot of money now!"

"Tsk, this amount of money won't be much even if it's distributed to the whole city!"

"What are you arguing about?" The village chief glared at several villagers, "I haven't finished talking yet!"

After everyone quieted down, the village chief continued, "This money will be mainly used for the three irrigation areas of Changma, Huahai and Shuangta on the Shule River."

“Hey, we are the sea of ​​flowers!”

"How much land is there in the Shule River Irrigation Area?"

The village chief said: "More than 70 acres in total!"

(PS: The previous number was 700 million mu, which has been changed)
"Then we can get a subsidy of more than 200 yuan per mu. Now the water fee is charged by cubic meter, and the water fee is extremely expensive. With the loan and subsidy from Jiahe, this can be done!"

"Gao Erwa, you are good at math. Calculate how many years it will take for drip irrigation to save enough water to cover the bill."

"Two years." Gao Erwa murmured, "If it's really as advertised, saving fertilizer and labor, and high yield, it may not take two years."

Someone has already shouted.

"Village chief, I want to sign up."

"I'll sign up too."

The crowd swarmed forward, and for the first time, the village chief felt that working with the villagers was so easy.

There's no way, he gave too much.

Jiahe.

Guo Yang's new office has a good view and is closer to the Qilian Mountains, so its majestic appearance can be seen at a glance.

Opposite him is Niu Hulin, who has been promoted to general manager of Jiahe Ecological Environment Governance.

“More than 99% of the acres are involved in drip irrigation?”

"Yes, the state-owned farm completed the work at the end of last year. The headwaters, water intake points, pipelines, etc. have all been planned, and the village also signed and stamped their fingerprints a few days ago."

Guo Yang somewhat underestimated the charm of money. With the dual subsidies from the government and Jiahe, the cost of drip irrigation continued to decline.

“What about the drip irrigation plant?”

"It is already under construction." Niu Hulin said: "The early equipment procurement and construction contracts have been negotiated with Dayu Water Saving, Tianye Water Saving and others."

The promotion of water conservation and fallow land was so successful that it exceeded Guo Yang's imagination.

The main reason is that he did not expect Qin Lijun to be so bold. Not only did he provide a 1.5 million yuan subsidy for drip irrigation, but he also provided a 10 million yuan subsidy for 0.5% of the fallow land.

A total of 200 million subsidies.

This is definitely a big deal for Jiuquan’s finances.

The first reaction in Guo Yang's mind was that Qin Lijun's office must be crowded with people, and the districts and counties that did not receive subsidies must be in chaos.

But this is a good thing for Golden Harvest.

Guo Yang smiled and said: "According to previous estimates, once the water conservation and fallow in the Shule River Basin are completed, at least 1.47 million cubic meters of water can be saved. Coupled with the water from this year's snowmelt, the task of ecological governance this spring is very heavy!"

"Money can solve most problems," Niu Hulin said. "What we are worried about now is that once there is too much water, some villages may not be able to resist reclaiming wasteland in the river basin."

“How many wastelands are there?”

"11 hectares is more than twice the cultivated land that has been reclaimed. These are all state-owned reserve resources for reclaimable cultivated land."

Guo Yang reacted.

This is the fundamental difference between the northwestern saline-alkali land and the coastal saline-alkali land: lack of water.

If development is not careful, it may cause ecological disasters.

“If there is no Dunhuang West Lake wetland project, it would actually be quite good to reclaim it as arable land.”

Niu Hulin said: "It's a bit of a pity."

Guo Yang said: "There are still opportunities in the future. When the downstream is stable, there may be a breakthrough in technology. It won't be too late to develop then."

"Hopefully that day will come."

Since entering March, although it is still cold, the ecological management company has been operating at full capacity.

Jiahe’s water-saving factory has not yet been built. This year’s equipment and construction were directly handed over to Dayu, Tianye and other units, and the speed is not slow.

Huanghua, Yinma and Dunhuang farms have started construction directly, including the headwaters, pump house, water source...it will be no problem to catch up in time for the spring plowing season.

The spring farming season in the Shule River Basin is from April to May, so there are still one or two months left. If you don’t want to rush to harvest vegetables for the autumn and winter crops, you can still sow them in the summer.

Therefore, other areas should also be able to be completed.

The team led by Niu Hulin mainly focused on river management projects. Similarly, river construction and other projects were handed over to professional companies.

Jiahe is only responsible for supervision and the sowing and cultivation of plants along the coast.

In addition to Hanhai kenaf and various grass seeds, drought- and barren-resistant Xanthoceras sorbifolia trees are also planted on the periphery to prevent wind and sand from burying the river again.

Further downstream in the West Lake Wetland, a team of experts including Lu Qi and Wang Ji are studying the best management plan.

With Jiahe's sufficient cash support, the entire project progressed smoothly.

3 month 6 day,
Jiahe once again signed a contract with the city to acquire 1.17 hectares of saline-alkali wasteland in the Jiuquan Yanshan River irrigation area and 4.05 hectares of saline-alkali wasteland in the middle reaches of the Taolai River irrigation area.

A total of about 78 acres of land.

These are also reserve arable land resources that can be developed.

These are also the last two saline-alkali beaches in the western area of ​​Jiuquan. However, compared with the saline-alkali beaches previously acquired by Jiahe, these two irrigation areas are relatively sparse.

The irrigation area along mountains and rivers refers to several dam areas along the rivers under the Qilian Mountains.

The middle reaches of the Taolai River are not just the Taolai River, but multiple irrigation areas to the north and south of the Taolai River, so it is very scattered.

In terms of specific management, it may be necessary to divide it into dozens or hundreds of small farms or areas.

But Jiahe has no plans to turn it into arable land for the time being. Just double the soil, sow alfalfa No. 1 and let it grow as it pleases.

After the Shule River basin is cleaned up, water-saving and fallow land can be implemented throughout Jiuquan, and these more than 700,000 acres can be properly reclaimed.

Signature completed.

Qin Lijun joked, "How about Jiahe also take over the 11 hectares of wasteland in the Shule River Irrigation Area?"

"That's fine." Guo Yang was not polite at all. "In fact, the wastelands of Dang River, Yulin River, Chijin-Baiyangshan River, etc. can all be given to Jiahe."

"With these 78 mu, there are only more than million mu of land in total. Jiahe can afford the rent of to million a year."

"Really want to take it?"

"Sure." Guo Yang said seriously.

Although he really wanted to agree, Qin Lijun did not want to take the risk. If something went wrong, it might cause massive public outrage.

"Let's wait a little longer. Once we see the effects of water conservation and fallow, it won't be a problem."

Guo Yang smiled and said, "All is fine."

After completing the signing in the administrative building, Guo Yang rushed back to the company and has basically not stopped for the past few days.

It's another year of non-stop Spring Festival.

Come to think of it, I don’t even know when was the last time I took a break.

Just as he was daydreaming, the phone rang again. After taking a look, Guo Yang was startled and became alert.

"Hey, Chief Lin, any instructions?"

"Hey, you're not the one looking for me?" Lin Bu laughed and scolded, "Then I'm dead!"

"No, leader." Guo Yang didn't expect the Forestry Department to play by the rules, and said quickly: "Jiahe wants to go to Laos to develop potash mines, and wants to find the Ministry of Agriculture to act as a bridge."

"Just your words are enough. The rest will be handed over to the Ministry of Agriculture. Jiahe should prepare the money and people. It would be best if we could send someone to Laos in advance to understand the situation."

"it is good."

“Speed ​​up as much as possible and put it into production as soon as possible.”

Guo Yang was a little surprised by the Ministry of Agriculture's straightforwardness, but when he thought about it, it wasn't surprising.

In recent days, negotiations on imported potash fertilizers have been warming up.

Since 2006, negotiations on importing potash fertilizers have been at a stalemate.

But the situation was fine in the first few years. After several rounds of intense negotiations, the price increased by $2006 in 25 and only by $2007 in 5.

However, this year, market rumors are not optimistic, and Salt Lake Potash has frequently moved abnormally in the stock market.

Another anomaly is that both Salt Lake Potash and Sinochem Fertilizer have stopped offering quotes, clearly indicating that they are reducing production and expecting price increases.

Because, according to rumors, the price has increased by three or four hundred US dollars, which means that the landed price will reach 700 US dollars per ton, and the domestic potash fertilizer price is likely to hit 5000 yuan per ton.

The current domestic price is 3250 yuan, and the increase of 1750 yuan is enough to be described as crazy.

Denon’s fertilizers are controlled by others, and the entire country’s potash fertilizers are also controlled by others.

Guo Yang said: "Jiahe will do her best."

"Well, there is one more thing. There has been a shortage of edible oil in China recently. Wilmar International has been making frequent moves in China. It recently reached an investment agreement of 65 billion yuan with Heilongjiang Province. Why is there no movement from Jiahe?"

Guo Yang smiled and said: "It's a bit late for Wilmar to increase investment at this time."

"What do you mean?"

"I have been paying attention to Wilmar International's actions. The 65 billion yuan should be their investment in the next few years. Jiahe has two bases that will be put into production soon. This year, Jiahe's actions will also be significant."

"Okay, as long as you know what's going on."

In fact, in addition to Wilmar International, China National Grain and Oils Corporation has also made significant moves during this period.

It should be said that this competition was initiated by Guoliang.

Because before Wilmar invested 65 billion yuan in Northeast China, Guoliang took the lead in announcing that it would invest 100 billion yuan in Northeast China in the next few years.

In the past year of 2007, China National Grain and Oils Corporation announced revenue of more than 1400 billion yuan, but it was a loss.

The reason for the loss was also due to too rapid expansion.

However, facing these two companies, Jiahe Grain and Oil has already gained the advantage.

Before Gao De joined Jiahe, Jiahe Grain and Oil had acquired a soybean crushing plant along the coast, with a daily processing capacity of more than 2 tons and an annual capacity of 750 million tons.

Tianhe’s annual wheat flour processing capacity is 40 tons.

But since the second half of the previous year, Jiahe Grain and Oil has entered a period of rapid expansion, and the pace of mergers and acquisitions has accelerated.

At present, Jiahe Grain and Oil has a total of 12 factories, mainly in Jiangsu, Shandong, Guangdong, Tianjin, Gansu, Xinjiang and other places, with a processing capacity of oils and oilseeds exceeding 1000 million tons.

This production capacity is comparable to that of Wilmar International.

Slightly better than national grain.

Now, China National Grain and Oils Corporation and Wilmar International have made their moves one after another, attracting widespread attention from the outside world.

"China Business Daily" published an article titled "China Grain and Wilmar International compete for the largest grain storage in China" which detailed the fight between the two.

The media, unaware of the truth, believes that Wilmar International wants to monopolize the non-GMO soybean resources in Northeast China, while Guoliang wants to snatch the food from the tiger's mouth.

However, when the crowd was concentrating on watching the fun, two new reports quietly came out.

"Grain and Oil Market News": The world's largest grain and oil research and development center is located in Qingdao.

"Huaxia Food Safety News": Jiahe Grain and Oil's Tianjin factory has been fully put into production and the opening ceremony was held grandly.

(End of this chapter)