Chapter 337 Undercurrents in the Grain and Oil Industry; Interview?
Tianjin, Lingang Industrial Zone.

Guo Yang and the main leaders of the region stood at the factory gate of Jiahe Jinmen Grain and Oil Comprehensive Base and completed the ribbon-cutting ceremony.

The camera captured this scene.

Female reporter Fu Lihua also rushed forward at the first opportunity and completed the interview.

Guo Yang said: "After the soybean crisis in 04, grain and oil companies represented by Guoliang, Kerry Grain and Oil, and ADM quickly broke through and took the opportunity to expand their business."

"Among them, competition in coastal markets such as the Yangtze River Delta, the Pearl River Delta, and Beihai New Area is particularly fierce."

"From that time on, Jiahe realized that in order to gain an advantage in this competition, it must build a comprehensive grain and oil base as soon as possible."

"So, Jiahe contacted Tianjin the year before last, and construction started last year. Now it is finally completed."

Fu Lihua asked: "After the Tianjin base went into production, what was the production capacity of Jiahe Grain and Oil?"

Guo Yang felt that the level of questions asked by this female reporter was quite good. He just wanted to say this, as Department Lin asked him to make more noise.

"The total investment of the entire Tianjin Grain and Oil Comprehensive Base is 40 billion yuan, and the oil and fat processing capacity will reach 600 million tons, mainly radiating the grain and oil markets around North China."

"The Tianjin base has the largest production line of small-packaged edible oils in China, covering blended oil, corn oil, sunflower oil, soybean oil, etc."

"At the same time, the Tianjin base can also supply 230 million tons of plant protein and 90 tons of edible oil to the market every year."

Fu Lihua asked: "What is the total production capacity of Jiahe Grain and Oil now?"

"Eighteen million tons."

"So many?" Fu Lihua felt that the data didn't match.

Guo Yang smiled slightly and said, "Jiahe's 200 million ton grain and oil factory in Zhenjiang, Jiangsu Province is about to go into production."

Fu Lihua said in surprise: "Now Jiahe's oil and fat production capacity has firmly ranked first in the country!"

"of course."

"Mr. Guo, what do you think of the 'competition' between Guoliang and Wilmar International?"

Guo Yang said: "As far as I know, several major giants are vying for processing areas near the coastline. Since Jiahe entered the Lingang Industrial Zone, other grain and oil giants have also begun negotiations with Tianjin, hoping to enter this area."

Fu Lihua asked: "Does Mr. Guo think this will affect Jiahe's strategy?"

"No." Guo Yang said confidently: "In addition to the coastal areas, Jiahe's oil and fat factories in Northeast China, Xinjiang Province, Sichuan Province and other places will also be put into production one after another this year."

"The main task of Jiahe Grain and Oil this year is to further improve its storage and logistics facilities."

Fu Lihua asked: "Similar to Tianjin?"

"Yes." Guo Yang said: "Jiahe Jinmen Grain and Oil Base is equipped with a 10-ton grain and oil terminal, a dedicated railway line and 120 million tons of advanced storage facilities. This will be Jiahe's grain and oil raw materials and product distribution center in North China."

"Golden Harvest has sufficient funds?"

This is not only Fu Lihua's question, but also the question raised by industry insiders who saw this report.

Because at the same time, Gao De, the general manager of Jiahe Grain and Oil, appeared in Qingdao and completed the signing ceremony of the grain and oil research and development center.

The R&D center, named Jiahe Nutrition and Health Research Institute with an investment of 10 billion yuan, is purely for R&D.

This is a staggering figure, and it is one of the largest investments in the global grain and oil industry.

Professor Xu Zhihong, technical leader and academician of the Chinese Academy of Sciences, said that what the R&D center values ​​most is the investment in Chinese scientific research technology and talents.

In addition to Xu Zhihong, Jiahe also invited Academicians Li Jiayang, Chen Xiaoya and Fang Rongxiang to serve as senior consultants to further strengthen scientific research capabilities.

In an interview, AutoNavi said: "We hope to use this platform to strengthen foreign cooperation and exchanges, promote the scientific and technological transformation of cutting-edge technologies in China, and drive China's transformation from a 'big grain and oil consumer country' to a 'big grain and oil technology country'..."

After the celebration ceremony,
Jiahe Nutrition and Health Research Institute held two international seminars, with nearly 100 domestic and foreign experts attending.

More than 10 academic leaders published reports on their latest research findings on topics such as fatty acid balance and nutritional health.

But it's not over yet.

In Jiangsu Province, according to media reports, in addition to the production of the Zhenjiang factory, Jiahe Grain and Oil also cooperated with Taizhou Port Group to establish Taizhou Yong'an Port Co., Ltd.

Established the first self-owned port of Jiahe to radiate Jiangsu Province and surrounding areas.

Successively entering the port logistics industry chain in Tianjin and Jiangsu Province means that Jiahe’s layout in edible vegetable oil raw material trade, processing, terminal sales and other links has been officially completed.

The successive news shocked practitioners.

Comprehensive grain and oil bases, large-scale processing plants, port warehousing and logistics...the investment funds required for each one are astonishing amounts.

Even Guoliang and Wilmar, which had known that Jiahe had been making frequent moves in the past two years, only felt the pressure as if a mountain was pressing down on them when the company actually started production.

China National Grain Group.

Chairman Ning Gaoning looked at the two newspapers. Guo Yang and Gao De's smiles were so dazzling.

"Hasn't the bank loan been negotiated yet?"

Standing opposite him was Yu Bo, the president of Guoliang, who also had a frown on his face.

"Our debt ratio is too high, but fortunately we have sufficient cash flow, so getting a large loan is not a problem, it just takes time."

"What is lacking now is time."

Yu Bo asked curiously, "Where does Jiahe get so much money? The grain and oil processing plant, warehousing and logistics, plus the Dunhuang West Lake Wetland, this must be several hundred million, right?"

Ning Gaoning spat out two words: "Futures."

"Jiahe pulled away in time?"

"Maybe more than that." Ning Gaoning said, "I think he probably did more backhanding in advance."

Yu Bo was shocked. Domestic corn production increased, and China National Grain and Grain Corporation was also involved in shorting international corn futures.

But then the weed and red fire ant crisis broke out in the United States, food supply dropped sharply and the new energy bill was added, futures rebounded violently, and the state-owned grain industry lost a lot of profits.

This would make sense if Jiahe had gone long in advance.

Even Jiahe may have tampered with soybeans...

"This is a bit difficult. The negotiations with the Tianjin Port Area are difficult because Jiahe has previously raised the threshold and the concessions offered by the port area are relatively low."

"We have to go ahead no matter how difficult it is, otherwise the North China market will be handed over to others!" Ning Gaoning slammed the table fiercely and asked:
"What does ADM say?"

Yu Bo nodded first, then said, "It's the same as before. ADM is willing to pay for the joint venture."

ADM has always been the main trading partner of the "National Grain Group" for edible oil.

"Then let's speed up the negotiation." Ning Gaoning pondered and said, "Also, call together the group's top management. The strategic plan for the entire industry chain cannot be delayed any further."

"it is good."

Faced with the Jiahe grain and oil full industry chain system that is about to take shape, both Yu Bo and Ning Gaoning are under tremendous pressure!
...

Magic City, Wilmar International.

In order to strengthen its competitiveness in China, Wilmar International Chairman Guo Guangfeng pushed for a merger between Wilmar Group and Kerry Grain & Oils at the beginning of last year.

Established the huge Wilmar International Group.

Subsequently, an investment agreement was reached with Heilongjiang Province. Prior to this, Wilmar International's Yihai Rice Project had already registered four companies in Heilongjiang Province.

The total grain and oil processing capacity in China exceeds 10 million tons.

However, before the money for Wilmar International's new project came in, Jiahe's production capacity had already reached another level.

In the conference room.

Guo Guangfeng made a difficult decision.

“Wilmar International’s plan to spin off Huaxia’s related businesses and list them on the stock exchange has been launched ahead of schedule to raise more funds.”

This decision made Guo Guangfeng extremely uncomfortable.

Because during the merger of Wilmar International and ADM, Wilmar International spent a lot of money to repurchase the shares of Wilmar Group held by ADM.

The integration has not yet provided any support, and the revenue data has not increased. If we push for a listing at this time, the valuation will be much lower than expected.

But there is no other way. Wilmar International needs more funds to compete for the domestic market in China.

...

Magic city, Bungie.

Du Sen was a little panicked.

Bunge owns three soybean processing companies in China, namely Jinling in Jiangsu Province, Rizhao in Shandong Province, and Tianjin.

Today, there is a Jiahe processing plant around these three companies, which feels like it is targeting Bunge.

Soybean processing is an important link in Bunge's soybean industry chain.

Bunge's most proud soybean trade with China has also suffered a severe blow in the past six months, with exports to China halved.

Bunge Group Chairman Weisser has issued an ultimatum: if there is no improvement, his term will come to an end.

Du Sen thought for a while.

The processing plant can no longer expand.

If you want to learn ADM, you will find it is rarely seen in China, yet it seems to be everywhere.

In terms of sales, Bunge is more adept at B2B business.

He decided to focus on this and concentrate on major customers such as oil and feed processing companies.

I hope it can hold steady!

...

Cargill and Louis Dreyfus are also keeping an eye on this emerging rival.

Thinking about how to deal with it.

The only hope now is Jiahe’s soybean source, which has not yet formed a complete closed loop and its control is still flawed.

According to public data, Jiahe and Jiusan jointly own 30 acres of organic soybeans, and Northwest has 100 million acres of its own.

Including some order planting, the stable supply is two to three million tons.

It seems there is still a chance?

But China’s soybean and corn production has increased significantly!

Corn is in surplus, and soybean self-sufficiency has reached 60%.

This is not good news for international grain traders who have a significant share in soybean and corn trade and feed processing.

Once the influence of the trade link is weakened, the entire industrial chain system will collapse.

Unless there is another round of low-price dumping, but North American production has already collapsed...

Do we also need to learn from Guoliang and Wilmar?

Join a meat grinder in a grain-producing area?

forget it.

That would require massive infrastructure investment, with too high a risk and too low a return.

Even though Guoliang and Wilmar are competing fiercely in Northeast China, some people even claim that Wilmar wants to monopolize non-GMO soybeans in Northeast China.

But as production increases and the average cost per mu becomes lower, this has become more unrealistic.

Heilongjiang Province is the main producing area of ​​rice and soybeans, but a quarter of it is within the agricultural reclamation system, especially soybeans.

The rice and soybeans of the agricultural reclamation system are all produced and processed by themselves. Jiusan Grain and Oil is one of them. It is now profitable to process domestic soybeans.

Wilmar and Guoliang are under great pressure to obtain grain sources. They must invest huge sums of money to build logistics facilities and collect raw grains from all over the country to ensure the supply of raw grains.

In addition, rice processing must be used comprehensively. In addition to producing rice, profit points must be increased by extracting rice bran oil, using rice husks to generate electricity, etc., and these deep processing facilities require a large amount of capital investment.

Guo Guangfeng has the identity of an overseas Chinese, but the four major grain merchants do not have it, so there is no need for them to take some risks.

As for Jiahe Grain and Oil’s expansion, its peers don’t have any good solutions.

……

In Beijing, Guo Yang and Gao De were enjoying the sunset on a rooftop farm in the dim light. The sky was clear, the tomato and cabbage seedlings had sprouted, and in the distance the streets were covered with gray-green catkins of white poplars.

Gao De said indignantly: "In fact, Jiahe also has a grain processing base in the Northeast, but the media has been making a fuss for so long, but they just don't report it."

“Maybe the production capacity is too low and it didn’t attract media interest?”

“It’s a 200 million ton factory!”

Guo Yang smiled and said, "That may be because the impact of the other things was too great."

"Hehe, that's right." Gao De touched a purple plant out of impulse and ended up pulling it out.

"Damn, is this just transplanted? No wonder it looks so fake!"

Guo Yang took it over, dug a hole in the nutrient soil, and planted it in, which made Gao De, who was used to wearing a suit and tie, a little stunned.

"Boss, you're just digging with your hands?"

"What else?" Guo Yang clapped his hands in fear. "It's been a long time since I touched the soil. I planted this seedling today and it feels pretty solid. Weiguang's rooftop farm is doing pretty well."

Gao De was not very interested in these. "Do you want to expand production capacity in Northeast China?"

Guo Yang said: "You are a little anxious. Learn more from Yang Cheng and plant more flowers and plants whenever you have time."

Gao De was stunned.

At this time, Guo Yang was walking along the winding antiseptic wooden plank road. The plant communities of different heights presented an undulating crown line, which was very rhythmic.

Gao De was stunned.

Are you in a hurry?
It seemed that he was a little anxious. The successive big moves by Guoliang and Wilmar made him feel that Jiahe Grain and Oil should also speed up the progress.

But in fact, Jiahe’s current production capacity is not low, and there will be a lot of investment in the future.

In addition to processing, decentralized reforms are also being carried out in warehousing and logistics, which is a corner that is difficult to notice.

The Northeast has difficulties in transporting grain both internally and externally because the infrastructure is not up to par and there are institutional and transportation barriers.

No matter how much Guoliang and Wilmar expand their grain and oil processing capacity, they will eventually have to face this problem.

Overseas, Chen Yanqiu, who is familiar with overseas ports, is already selecting sites and is in contact with the ocean shipping industry.

This speed is not slow.

Gaode also followed suit and entered the mass production fruit and vegetable planting area, where cherry tomatoes, peppers, red leaf lettuce and kale are grown.

"Boss, can you pick some vegetables for hot pot tonight?"

"That's what I think." Guo Yang paused and said, "The current goal is to occupy as much of the domestic grain and oil market share as possible."

In the grain and oil industry, Jiahe is just a newcomer.

This is an asset-intensive industry.

Jiahe’s grain and oil market share is less than 10%.

Gao De said: "In another ten years, the domestic market share of the four major grain merchants will be completely eaten up!"

"Ten years is no problem." Guo Yang said while picking cabbages, "but I want to compete with them in the international market."

“It would be even better if Jiahe Grain & Oil could export its products to North America.”

Gao De smiled and said, "It will be no problem."

After picking vegetables for a while, Guo Yang saw that the time was almost up, so he called Peng Shuyu from Jiahe Fresh Supermarket and asked him to bring some more vegetables over.

Then he called Yang Cheng from Weiguang and Qu Sheng from Huinong.com and others.

We gathered a table on the rooftop farm and started having hotpot.

Put a spoonful of beef or mutton dipped in sauce into your mouth, and then have a bite of fresh vegetables. The taste is so delicious.

A group of people were chatting.

As we chatted, we talked about the stock market.

"The Shanghai Composite Index has fallen below 4000 points." Qu Sheng put down his chopsticks and asked, "Boss Yang, what is Wei Guang planning to do to buy at the bottom?"

Yang Cheng ate his food in silence. He glanced at his boss and said uncertainly, "It has to drop by at least 3000 points before we can buy at the bottom."

"If it's that exaggerated, then it shouldn't be necessary to just cut him in half, right?"

Peng Shuyu also said: "I saw some netizens posting in the stock forum saying that they want to fight a battle to defend the 3000-point level."

"It took just over two months to defend 3000 points. Who could have imagined that?"

"Cough...cough"

Without even taking a breath, Guo Yang choked on his drink.

"Boss, are you okay?"

"It's okay, it's okay." Guo Yang waved his hands repeatedly.

The main reason is that the battle to defend 3000 points is too familiar to Guo Yang. Even after another 10 years, it will be often staged in the A-share market.

Reality is really magical.

After a while, Guo Yang looked at Qu Sheng and asked seriously, "Are you speculating in stocks?"

Qu Sheng said awkwardly: "I bought some."

"Huh?!" Yang Cheng said in surprise, "Didn't I remind you before the New Year? Clear your positions early, why didn't you listen?"

"I cleared out my previous positions." Qu Sheng said, "Didn't I just buy some stocks when I saw the market drop to 4000 points and felt it was in place?"

Guo Yang, Yang Cheng and Gao De all looked at him strangely.

Guo Yang knows the historical trends, while Yang Cheng and Gao De can feel the ups and downs of the world economy from the commodity trade.

The financial tsunami caused by subprime mortgages is not far away.

Poor kid, he bought at the bottom halfway up the mountain.

Guo Yang picked up another piece of mutton with his chopsticks and said, "Sell it quickly, don't touch Big A for now."

Yang Cheng also said: "That's right, it has to go down by at least 3000 points, and then we'll see what happens."

"Hmm..." Guo Yang pondered, "Weiguang should not act rashly for the time being. Hold on to Tencent and Apple. You can add more positions when the market price drops."

"That's enough."

"These two are not too many."

Qu Sheng asked, "Boss, when do you think the A-share market will bottom out?"

Guo Yang thought for a moment and said, "This drop may exceed the market's imagination. When the entire stock market is wailing and no one believes in stocks anymore, it will be almost over."

Several people including Yang Chengdu were a little surprised.

“Will it fall below 2000 points?”

Guo Yang nodded slowly.

If history has not changed, this number should be 1664. In his previous life, Guo Yang, as a senior韭菜, had reviewed this history.

This life should change.

According to Guo Yang's plan, when the A-share market fell to around 2000 points, Weiguang could slowly buy the bottom.

Peng Shuyu doesn't trade stocks and doesn't care about these things. He just eats the hot pot leisurely by himself.

Qu Sheng was a little bit unconvinced.

If the index is below 2000 points, then wouldn’t all those people on the online stock forums be forced to lose everything they have?

Yang Cheng and Gao De believed it a little.

It’s nothing but the sensitivity brought by the commodity market and the trust in the boss!

After dinner, it was already dark.

Guo Yang, Yang Cheng and Gao De were the last ones to come.

Guo Yang said: "After the spring corn planting, Jiahe Grain and Oil's futures positions will be completely closed."

The global financial crisis should have completely broken out around August or September, but Guo Yang couldn't remember it clearly.

Moreover, that was probably the time when the market competition was the most intense, and sharp rises and falls were the norm.

If you are not sure, then withdraw early in May or June.

This is what Guo Yang thinks.

into the night.

Guo Yang looked at the information again in the hotel.

This time I came to Beijing, I actually came here to interview someone.

The target is Yang Guocheng, an expert in potash mines and a student of Zheng Mianping, an academician of the Chinese Academy of Engineering.

The Human Resources Department also wants to poach a big shot directly, but this time he needs to give up his public office and stay in Laos for a long time.

It’s definitely impossible to poach more academicians.

So I took a fancy to his students.

Judging from the information, Yang Guocheng is indeed suitable. He is 34 years old, a senior engineer, and has published many professional papers on potash deposits.

As a descendant of the older generation of geologists, he followed in his father's footsteps and was influenced by this field since childhood. He is also a student of Zheng Mianping.

The most important thing is that I participated in the exploration of potassium and magnesium salt mines in Khammouane Province, Laos in the past few years, so I am no stranger to Laos.

It should not be a problem for such a person to serve as the chief technical person in charge of the Jiahe potash project. If not, he can always seek help from his teachers or fellow students.

Guo Yang thought for a while about what questions to ask during the interview before slowly falling asleep.

The next day.

Guo Yang opened the curtains sleepily, only to find that the whole city was in chaos and darkness.

The teaching building in the distance was wrapped in yellow sand, and the outline of the building was faintly visible.

The only thing that could be seen clearly was the rows of neatly lit windows. The originally bright white energy-saving light bulbs had turned yellow due to the sandstorm.

Guo Yang was a little stunned.

It was a clear sky yesterday.

This year is the Olympic year!

The Three North Shelterbelt Project still has a long way to go!
After complaining for a while, Guo Yang went to wash up, and then went to a high-end tea restaurant near the Geological Institute in the yellow sand and dust.

Yang Guocheng was a little thin, just like Guo Yang when he first traveled through time, with dark yellow skin and slightly long hair.

After confirming that he had found the right person, Guo Yang directly stated his purpose.

"Dr. Yang, Jiahe would like to invite you to serve as the chief technical person in charge of the Laos potash project. The project team has not yet been established, so you are needed to serve as the project leader. Of course, if it is appropriate in the future, you will be the project leader."

"What? Laos? Technical and project leader?"

Yang Guocheng was obviously still in the dark. It was a senior who worked at Lanzhou University who contacted him and said that a company wanted to invite him to be a consultant.

But how come he became the technical director now?
This is very different from a consultant. As the jargon goes: consultant is a consultant. If you can take the time, ask. If you can’t, don’t ask.

The technical and project leaders obviously have to resign from their public offices.

Yang Guocheng stood up and prepared to leave.

He is doing very well in the Institute of Geology. He is following in his father's footsteps and has a teacher who is an academician. He is not a useless person either. If he works hard for a few more years in research, he will have a bright future.

Besides, the enterprise project is still very poor, and Laos is a poor place.

He must have been crazy to switch to a corporate job!
Seeing Yang Guocheng turning around and leaving, Guo Yang was also confused. Is this an interview?
Something is wrong!

(End of this chapter)