Chapter 344: Opportunity for Price War——
Jiuquan was the first to launch a pilot program of fallow land to give the overdrawn land a break.
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Jiuquan’s crop rotation and fallow policy provide protection for the Jiahe Dunhuang Wetland Project, and the construction site is bustling with activity.
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Jiuquan has made great strides in alleviating ecological pressure through crop rotation, fallow and water-saving drip irrigation.
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Crop rotation and fallow: protect the "lifeline" of grain production, give the land a boost, and let farmers make clear calculations.
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What kind of soil or environment needs to be left fallow? It turns out that there are so many areas in our country that urgently need to let the land rest.
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As soil fertility declines and fertilizer efficiency decreases, the land is also calling for a vacation.

The next day, the topic of fallow land appeared in newspapers of major official mainstream media.

Leaving land fallow is relatively rare in our country, and it may be difficult for farmers to accept the idea of ​​voluntarily leaving their land fallow.

Many people don’t even know the meaning of fallow, but with this wave of large-scale publicity, the term crop rotation and fallow suddenly became popular in the national agricultural industry.

Because in the mainstream media reports, leaders of the Ministry of Agriculture and the Department of Crop Production both praised the actions of Jiuquan and Jiahe.

This means that policies may be changing.

Now it is Jiuquan, and the next step should be a national pilot.

But according to some experts' analysis, Jiuquan has Jiahe, but who are the other cities?

JQ Municipal Building.

Qin Lijun looked at the latest reports with a smile on his face. He should be able to show his face in front of many leaders now.

The idea of ​​fallowing land to save water was first proposed by Jiahe. The original intention was just to transport water to the Dunhuang West Lake wetland in the lower reaches of the Shule River, but it is now well-known.

Thinking of this, he subconsciously wanted to call Guo Yang.

When I picked up the phone, I realized that Guo Yang should be on a plane to Laos.

He then called Ma Peng of Yasheng Group.

"Leader, rest assured, the Yinma, Huanghua, Dunhuang and other state-owned farms will definitely not let us down at this time."

“Not only fallow land, but also water-saving drip irrigation is being promoted across the board.”

"In order to restore soil fertility, many low-yield fields were rotated to soybeans and alfalfa this year."

After making the call, Qin Lijun called the cities and counties under his jurisdiction.

Those troublemakers and farmers who recklessly open up wasteland and cause chaos should be arrested as examples.

The section of the Shule River that leads from Guazhou to Xihu Farm is surrounded by the Gobi Desert to the north and barren saline-alkali land to the south.

On the construction site, construction machinery is narrowing the river channel, while workers are busy sowing green seeds and planting sea buckthorn on both sides of the river.

"Boss Niu, Boss Niu, the secretary of West Lake Farm called and said that construction can begin at Hongliuling."

Niu Hulin asked, "Have you communicated with the employees who caused the trouble?"

"No, I just locked it up."

Niu Hulin was surprised for a moment, then immediately said, "Then arrange a trailer and move the machine over immediately."

"The tow truck is here."

Niu Hulin gave a thumbs up and said, "Speed ​​up, the snow will melt soon. The snow is very thick this year!"

...

While news about crop rotation and fallow was flying all over the country, the international grain market was also experiencing many twists and turns.

The originally stable international grain futures prices rose slightly at this time.

"Old Yang, the positions held by Jiahe Grain and Oil have been cleared, what about Weiguang?"

"We can close all positions today." Yang Cheng said with ease: "Thanks to the spread of the news of the fallow, there are more counterparties."

Gao De suddenly asked: "Does the boss have any new instructions?"

"No." Yang Cheng said, "It's hard to tell now. Who would have thought that crude oil would be more than $120 per barrel?"

“It’s a little hard to see.”

“In fact, crude oil should have opportunities in the future.”

"Let's talk about it later." Gao De said, "It's over. Something strange has happened to the domestic edible oil market again."

"What's the matter?"

"Golden Arowana issued a notice, probably planning to raise the price."

As South American soybeans gradually come onto the market, domestic edible oil prices have generally been on a downward trend since April.

It is a bit confusing that Jinlongyu released the price increase information at this time.

Can the impact of crop rotation and fallow be reflected in the terminal market in advance?

At present, in the four major areas of rice, flour, grain and oil, Jiahe Grain and Oil’s market share is not high, but everyone is on guard against Jiahe Grain and Oil.

As soon as the factories in Tianjin and Zhenjiang, Jiangsu Province went into production, edible oil prices in the North China and Yangtze River Delta markets began to fall.

Especially in Beijing, as soon as Jiahe Grain and Oil entered the market, it was the first to reduce prices by 5%, forcing many brands to follow suit.

Is it that Jinlongyu can no longer bear it? Or is it that since it has the largest market share, the more intense the price war, the greater the losses it will suffer?

Gaode would rather believe it is the latter.

In terms of raw material imports and processing in the oil and fat market, the four major grain traders and Wilmar International still control the largest share.

As for edible oil brands, Golden Dragon Fish, Fortune and Luhua also control major market shares in the country.

Jiahe’s grain and oil production has increased, but its share of the terminal market is not enough, so it can only penetrate slowly relying solely on marketing.

Jiahe would rather plan a brutal price war.

Gaode analyzed the situation for a while, then called an emergency meeting with the marketing department, and decided to press on with the victory and expand the scale of the price war.

In the next two days, Golden Dragon Fish released a large amount of price increase information in the market in an attempt to drive up prices in the entire edible oil industry.

But what Jinlongyu did not expect was that other brands not only did not respond in a timely manner, but instead launched large-scale promotions to seize the market.

Especially Jiahe Grain and Oil, the prices of Jiahe edible oil have plummeted in 100 large and medium-sized cities and tens of thousands of supermarkets across the country.

The golden arowana was embarrassed.

It’s not right to go up, and it’s not right not to go up.

In the end, we had to choose to increase prices in name only and reduce prices in reality.

Shanghai, Wilmar International Office.

The new general manager Fang Hong was met with a scolding from the chairman Guo Guangfeng.

"Why are you raising the price for no reason?"

Fang Hong said aggrievedly: "The terminal profit this year is too low, and the performance of Yihai Kerry's spin-off listing is not very good."

Guo Guangfeng also felt a headache. In fact, Wilmar International's oil palm plantations in Southeast Asia have made good profits this year.

However, the planting business cannot be attributed to Wilmar International. No matter how good the performance is, it will not have any promoting effect on the listing price.

The purpose of Wilmar International's listing and financing is also to strengthen its competition in raw material control in the mainland.

Nowadays, it is estimated that the financing effect will not be ideal.

……

Li Yongcai was one of the last coal bosses to return to Datong.

After he came back, he found that Cistanche deserticola gift boxes were popular in the circle, and many people who had not visited the area also asked him about the situation of the sand industry.

He did not exaggerate and told the situation honestly.

"You have also experienced the effects of Cistanche deserticola. I don't need to elaborate on the prospects of this industry, right?"

"Planting techniques and management are not a problem, and you can even purchase managed services."

"Hosting service, what Boss Guo said is to get the weak off the farm."

For a period of time, Shahai's Cistanche products quickly became popular among coal bosses in Shanxi Province.

Since joining the WTO in 2002, coal has entered its golden age, and many coal bosses who have not even graduated from elementary school have become rich overnight.

Money comes too easily, and it is easy to forget everything. Many coal bosses are addicted to enjoyment, luxury cars, luxury houses, women...

For example, a boss in Luliang has three "public" wives.

Of course, having many wives is really tiring.

These coal bosses always carry aphrodisiac and kidney-tonifying medicines such as Shenbao, Guilingji, and Liuwei Dihuang Pills in their bags all year round, in case of emergency.

But now... a new medicinal material has emerged out of nowhere, and its reputation has skyrocketed among coal bosses, and its sales volume has been rising steadily.

Coal bosses who are interested in transformation also paid more attention to the sand industry.

The coal restructuring has not officially started yet. Some coal bosses are not panicking, but other coal bosses have been making preparations early on.

At this moment, Li Yongcai is visiting a coal boss who switched to agriculture a few years ago: Zhang Lianshui.

There are also trees planted in Zhang Lianshui’s agricultural territory, but they are winged oil trees.

This is a tree species that is only distributed in Shanxi and Shaanxi.

At present, Zhang Lianshui’s winged oil tree base has developed to nearly 4 acres.

The sturdy Zhang Lianshui seemed very happy to see Li Yongcai's visit.

"I know Xanthoceras sorbifolia. They used to be everywhere on the mountains, but they were all cut down later. In the past two years, they have become popular again because of biodiesel."

“It still looks promising now.”

Li Yongcai laughed it off and did not mention the possibility of a drop in crude oil prices, nor did he mention the Xanthoceras sorbifolia variety.

He came here just to learn.

There may be competition between the two sides in the future.

However, Zhang Lianshui's base forest is indeed well developed, following the approach of "company + base + farmers".

In addition, Zhang Lianshui also launched an ecological tourism project in Yunqiu Mountain.

The shift from black industry to green industry has won Zhang Lianshui wide attention and praise from governments at all levels and all sectors of society.

The main thing is that Zhang Lianshui’s coal industry has not fallen behind and is also enjoying the dividends brought by coal.

In this coal company restructuring, Zhang Lianshui will surely not close down his coal mines, relying on the reputation he has accumulated in the green industry.

Moreover, the loss of agricultural profits also strengthened Li Yongcai's determination to develop the Xanthoceras sorbifolia industry.

……

Vientiane, Laos.

Guo Yang and his delegation were welcomed by the Lao government. It was mainly because of the Ministry of Agriculture that Laos attached so much importance to them.

If Jiahe came alone, there would be more trouble.

Even so, the Ministry of Agriculture mainly acts as a matchmaker, and its focus is still on agricultural cooperation between the two countries.

But this is enough. With the upper level’s greetings, it will be much easier to handle the procedures from the bottom up.

The Lao Ministry of Planning and Investment is responsible for investment approval, while the Ministry of Energy and Mines is mainly responsible for issuing licenses.

Others involve the Ministry of Natural Resources and Environment, the Ministry of Industry and Trade…

Domestic mining rights are mainly divided into prospecting rights and mining rights.

In Laos, this is divided into survey, exploration, feasibility study, mining, mineral processing... a total of ten items.

Except for the abandonment of mining areas and mineral processing activities, each activity corresponds to a license or approval document.

Therefore, the procedure is a bit complicated.

To this end, Jiahe specially hired the Yunnan Lingyun Law Firm, which is engaged in legal services for Laotian investment.

The firm sent three people. The person in charge looked very young. His name was Liu Xin and he had already served many domestic mining companies.

Guo Yang asked: "Can we directly acquire a company that owns the mining rights?"

"It is not recommended to do so," Liu Xin said. "The acquired companies may be risky, and Laos has expressly prohibited the trading of exploration and survey rights." "Jiahe has administrative support, professional talents, technology and funds are not a problem. The early approval is very fast, and the follow-up depends on the speed of mineral exploration."

Laos’ mining rights are valid for only 40 years from the start of the census, which is a relatively short period.

Yang Guocheng said: "There is no problem in finding minerals."

"I was the technical director of the super-large potash mine discovered by the Institute of Geology in Laos last year, and I am very familiar with the mineralization conditions here."

Qing Shi Huaye followed up by saying: "Mining engineering design is also in contact with the design unit. Once the first mining area is determined, the design can be carried out."

Liu Xin thought for a moment and said, "The remaining two key points are: environmental protection treatment and mining development agreement. One is related to the mining license, and the other is related to tax incentives."

Liu Xin emphasized again, "Environmental protection is particularly important. Laos is densely forested, with a well-developed river network and world heritage sites along the route, so the technical requirements are very high."

Guo Yang waved his hand. "Environmental protection, well, this is what Jiahe is good at. It's not a big problem."

Liu Xin said: "Mr. Guo, this cannot be taken lightly! There are precedents for this."

"APR, a Canadian company, invested more than 5 million US dollars in the Udon Thani potash mine in Thailand, but because it is located near a World Heritage Site, it has been unable to obtain a mining license, and the initial investment has been wasted."

Guo Yang smiled and said, "Don't worry, I know what's going on."

Liu Xin felt helpless.

Many domestic mining companies that came to Laos to invest, because of the habits they developed in China, ended up taking a detour on environmental protection in Laos.

It now seems that even with the lessons learned, later mining companies cannot avoid paying a price.

"There is one more important point I almost forgot."

Guo Yang added: "Lawyer Liu, Jiahe also plans to entrust Lingyun Law Firm with investment services for coal mining companies."

Liu Xin was surprised, "Jiahe is also going to invest in coal mines?"

Guo Yang said: "Forced evaporation is required in the development of potash. The project uses a lot of coal. We can't import it from Yunnan Province, right?"

"Well, China-Laos Mining plans to import from Vietnam." Liu Xin said leisurely: "Investing in coal mines in Laos does not have a very high prospect."

"It's okay, just treat it as practice."

The corners of Liu Xin's mouth twitched slightly. The word "practice" sounded so easy to say.

Qing Shihua asked: "What is the first task? Go to the mining area to survey?"

"What are you thinking about?" Yang Guocheng patted him on the shoulder and said, "Of course, register the company first, and then recruit people!"

Qing Shihua said: "Shouldn't we rent a house first?"

"..."

Guo Yang: "Let's stay in a hotel during this period, and then buy or rent a fixed office location in Vientiane."

After deciding the direction that evening, Guo Yang handed over the power to Yang Guocheng. The main focus in the early stages of development was efficiency.

Of course, there will be financial supervision.

The next day, Guo Yang followed the Ministry of Agriculture to visit the cooperation projects between China and Laos.

China was the first country to enter Laos to invest in agriculture and has always been the largest investor in Laos.

Agriculture mainly involves rubber, tropical fruits, rice, tobacco and other aspects.

Generally speaking, Laos is a country with vast land and sparse population, and is extremely rich in agricultural and mineral resources.

This has attracted many people from Yunnan and Guangxi to rent land in Laos for development, with the annual rent per mu being only 2 to 10 yuan.

Some planting and processing companies run by Guangxi compatriots have become well-known star enterprises in the local area.

But the small market capacity and the country being one of the poorest in the world made it less attractive to Golden Harvest.

However, at the invitation of Vanolas Wailawan, Director of the Planting Department of the Lao Ministry of Agriculture, Guo Yang agreed to invest in agriculture in Laos.

Mainly bananas, as well as rice and vegetables.

The amount is not large, so it can be considered as a gesture of goodwill, and also as a way to seek some benefits for overseas employees.

After finishing the day's visit, the Ministry of Agriculture went to the next stop, and Yang Guocheng, Qing Shihua, Liu Xin and others also became busy.

Guo Yang thought about it and decided to stay for a few more days to familiarize himself with the procedures of the potash mine and learn about the policies and laws of Laos.

In the future, we can manage remotely in China so that we won’t be completely at a loss.

After this specific communication, we realized that there were many discrepancies between what Yang Guocheng had said before.

Moreover, with him on hand, communicating with various departments and even giving gifts, everything would seem to be smoother.

In the past few days, we have maintained smooth communication with the domestic situation. Ning Xiaojing sends the situation of each company separately every day.

But some of them I haven't had time to watch yet.

On April 30, Guo Yang, who thought he had some understanding of Laotian potash and legal policies, prepared to return home.

"Lao Yang, I'll leave Laos to you. Please speed up the process and slow down the exploration work to make it more thorough."

Recent studies have made Guo Yang realize that mining cannot be started quickly just by having money. It is an industry that takes even longer than agricultural investment.

Moreover, due to the influence of plate tectonics, Laos' underground structure changes are very drastic.

If you want to develop, you must have a clear understanding of the geological conditions, otherwise you may waste time.

Yang Guocheng nodded solemnly.

After saying goodbye, Guo Yang and Luo Xiu rushed to the airport. There was no special plane this time, so they could only detour through Chengdu and then return to Jiuquan.

An earthquake is coming...

Just at this moment, Zhang Wei from Chengdu happened to call, which surprised Guo Yang a little.

"Brother Yang, the hydrangeas are about to bloom this year. I sent you some photos. The buds are many and big this year."

"Then I will rush to Rongcheng immediately."

"???"

Guo Yang said: "I will be at the airport in a few hours."

Zhang Wei was stunned for a moment, and after confirming that he was not joking, he said, "Then I'll pick you up at the airport."

"Changed cars?"

"Not yet." Zhang Wei laughed twice, "I plan to buy a car after the wheat and rapeseed are harvested this season."

"It looks like we've done a good job this year."

"hey-hey."

A few hours later, Guo Yang saw Zhang Wei, whose skin had become darker but looked more energetic.

The two looked at each other for a while, then they both laughed.

Guo Yang joked: "You have a nice hairstyle."

"Haha, boss, you're even more handsome now."

"I don't know about the other things, but your talking skills have really improved."

On the way back, Luo Xiu drove the car while Guo Yang and Zhang Wei chatted in the car.

Last year, Zhang Wei's direct-seeded rice performed well. With subsidies, he could get a net profit of 300 yuan per acre.

1 acres also costs 30 yuan.

Together with some external agricultural machinery services, the net income from one rice season can be 300,000 to 400,000 yuan.

In rural areas of this era, this is undoubtedly a high income.

Zhang Wei smiled and said, "I used the money I earned last year to pay off part of the agricultural machinery loan. This year, I bought another harvester. I've been busy all year and I feel like I'm working for the machine."

"Then do you want to go back to Donghe Agricultural Machinery?" Guo Yang teased, "It's also about agricultural machinery."

"It's good like this now," Zhang Wei said. "The wheat and rapeseed are growing very well this year and we are harvesting them these two days."

Guo Yang said: "Wouldn't that waste your time?"

Zhang Wei curled his lips and said, "Hey, I'm just worried about not being able to find anyone to show off to."

Guo Yang laughed twice, "I know. You're counting on this season's wheat and rapeseed to change your car this year."

Chatting along the way, when approaching the Shuxi intersection of the ring expressway, Zhang Wei pointed to a golden wheat field outside the car window.

"About to arrive."

At first glance, the ripe wheat and rapeseed look like a golden ocean, with harvesters shuttling back and forth in the fields.

Once we got off the highway and entered the cement road through the fields, we could see it more clearly: the wheat grains were yellow and full.

On the other side, rows of rapeseed are rolled into the harvester, and the plump rapeseed grains are stored in the warehouse.

In addition, the emerald green hydrangeas on the ridges of the fields are also very dazzling, and the hydrangea buds are eye-catching.

"You came a little early. There is still more than half a month before the peak flowering period." Zhang Wei said, "I didn't expect you to come as soon as you said, Brother Yang."

"I just happened to be passing through Rongcheng."

Guo Yang looked at the clearly separated rapeseed and wheat fields and asked curiously, "How did you come up with the idea of ​​planting both wheat and rapeseed?"

Zhang Wei said: "Because they are both Tianhe varieties, one is Wheat Perfect and the other is Tianyou No. 6, it's a good opportunity to see which variety has higher returns."

"..."

"Do we even need to try this?" Guo Yang said in surprise, "Obviously wheat saves time, effort and cost."

"That's not necessarily true." Zhang Wei asked Luo Xiu to stop on the road next to a rapeseed combine harvester.

"Tianyou No. 6 has a short plant height and is resistant to lodging, making it very suitable for mechanized harvesting."

Zhang Wei grabbed a handful of crushed rapeseed husks and straw from the ground.

"Look, there are very few rapeseeds scattered in the powder, which means that the maturity period is uniform, the cracking is very low, and there is little loss during machine harvesting."

"And the output of Tianyou No. 6 is not low."

Zhang Wei is confident that "it is hard to say whether the net profit of wheat Quanyousheng or Tianyou No. 6 is higher or lower. The price of rapeseed is very considerable this year."

Guo Yang’s experience from his previous life told him that wheat is the first choice of winter crop for large growers in the south because it requires fewer processes than rapeseed.

But Tianyou No. 6 seems different.

What are the characteristics of its variety?

Guo Yang actually forgot about it for a moment, mainly because there are too many varieties now.

Guo Yang found the information after his mind briefly entered the seed store.

Tianyou No. 6: Suitable for the middle and lower reaches of the Yangtze River, Tianfu Plain, and the hilly areas of the central Sichuan basin, with an average yield of 200~300kg.

The oil yield of rapeseed is 50%~58%!

Hey!
I almost forgot such an important thing!
After a while, Guo Yang calmed himself down. Fortunately, Tianyou No. 6 and Tianyou No. 7 were both varieties that were bred in January last year.

If Tianyou No. 6 is propagated in cold regions such as Qinghai-Tibet in spring and summer...the amount of seeds entering the market this season should reach 200 million mu.

This is definitely a surprise factor.

There is also Tianyou No. 7, which is also a winter rapeseed variety, as well as a spring rapeseed and winter rapeseed variety bred in 06.

These two months are both the harvest season for winter rapeseed and the sowing season for spring rapeseed, which can be harvested in September.

Then there will be another unexpected factor...

Jiahe Grain and Oil is planning an opportunity to launch a price war. Although the opportunity has not been found, the company should have an idea of ​​how to launch the price war!

(End of this chapter)