Chapter 345 Round after Round

"Brother Yang, Brother Yang, what's wrong?"

"Ah? Oh...When you said that just now, I thought of something and then I was lost in thought."

Guo Yang kept the rapeseed matter in mind and asked, "Where were we talking about just now?"

Zhang Wei looked confused. Didn’t I just say that you were thinking about this?

"I said that the income from rapeseed this year is very considerable. The current purchase price is 2.2 yuan per catty. If one mu of rapeseed yields more than 400 catties, the income per mu is over a thousand yuan."

Guo Yang looked around the rapeseed field. The stalks were not tall, but the branches were dense.

"More than 400 kilograms is no problem. If the management is more meticulous, kilograms will not be a problem."

Under normal circumstances, the yield of rapeseed is only about 300 kilograms. But for an experienced farmer who is willing to work hard, more than kilograms will be no problem.

In the experimental fields of scientific research institutions such as the Academy of Agricultural Sciences, there are many crops with an acreage yield of more than 600 kilograms.

Overall production fluctuates widely.

The normal yield of Tianyou No. 6 is between 400 and 600 jin, but the specific yield still needs to be verified by farmers. From Zhang Wei's point of view, it is very good.

The key is the oil extraction rate, which can reach over 50%. Even the best peanuts cannot reach such a high rate.

Generally speaking, one hundred kilograms of rapeseed can produce 40 kilograms of oil, which is considered high.

Guo Yang said: "Jiahe Grain and Oil will buy your rapeseed, and the price can be a few cents higher than the market price."

Zhang Wei was surprised for a moment, then smiled and said, "Then I won't be polite. I'll send it to you right away after it's dried and cleaned."

"Are there many people planting Tianyou No. 6 around here?" Guo Yang pondered, "You can buy them all together and then make a profit from the difference."

"This business is worth doing." Zhang Wei's eyes lit up, "Do you only want Tianhe's rapeseed variety?"

"Yes, Tianyou No. 6 is the best."

"That's a bit difficult." Zhang Wei said: "I only know the retail investors in the surrounding area. For the rest, I can only ask Tianhe for a list of major customers."

"Hmm." Guo Yang thought for a moment and said, "De-Nong agricultural materials are also entering Sichuan Province. We will also be able to get the list of retail investors next year."

Zhang Wei laughed and said, "It seems that I will have to do grain business in the future. However, fertilizers are really expensive this year. I can't afford them for growing grain."

Guo Yang asked: "How much is the compound fertilizer here?"

"It's more than 4,000 yuan, and I still can't buy it." Zhang Wei touched his head, "I'm too lazy to apply base fertilizer when growing rice this year."

This price is unaffordable for most farmers except for some cash crops.

“Is the burning of straw strictly regulated here?”

"If I want to burn straw, my grandfather will skin me alive." Zhang Wei said with a wry smile.

“……” I actually forgot that Zhang Wei’s grandfather Zhu Youbing is the village secretary.

This year is the Olympic year, and this place is located in the suburbs, which is a key area of ​​supervision. Large-scale straw burning is bound to cause accidents.

After staying in the farmland for a while, Zhang Wei took Guo Yang and the other person to the village branch.

Zhang Wei rushed back to the farm to drive a harvester to harvest rapeseed. There were only two or three hours left before dark, but he worked as long as he could.

Village Secretary Zhu Youbing warmly entertained Guo Yang and Luo Xiu with tea and melon seeds.

"Boss Guo, thanks to your advice last year, the rice field hydrangeas are about to show results this year."

Zhu Youbing said radiantly: "The village is planning to try to organize an event this year."

Guo Yang gave a thumbs up to the post, "The name of the event is the Hydrangea Festival. If it is held every year, Shiting Village will definitely be known as the Beautiful Xin Farm."

"Hydrangea Festival? Or you young people have quick brains. You have so many ideas."

Zhu Youbing took a sip of tea and said, "During this year, Zhang Wei has been trying a lot, from live broadcasting to drones. I didn't expect that he would succeed."

Guo Yang smiled and said, "Times are changing rapidly."

After chatting with the village officials for a while, Guo Yang took the opportunity to make a phone call.

First, Gaode, and then Guo Yang talked in detail about the variables that rapeseed varieties might bring.

06年培育了3个油菜品种，07年培育了2个品种，以及天禾科学院还筛选培育了3个品种。

Tianyou No. 6 has the most outstanding output and oil extraction rate.

Other varieties are slightly inferior, but they all have advantages in their respective suitable production areas.

With the accumulation of these two years, the impact on rapeseed production should have begun to take effect.

Therefore, Jiahe Grain and Oil should focus on rapeseed varieties with high oil extraction rates in the next two months.

"Boss, the rapeseed planting area in the south has increased slightly this year compared to last year."

"Yes, I know that there is a comprehensive subsidy for rapeseed this year." Guo Yang asked: "Is there enough grain and oil in Sichuan Province?"

"Sufficient. The inventory is sufficient across the country."

Gaode thought that the boss was preparing to expand the price war, but there was no further news.

"Boss, the grain futures positions have been closed. The profits are huge this time. There will be no problem in launching a nationwide price war."

The price of edible oil has been falling for two consecutive months, but is still clearly at a high level.

Moreover, the flavor of capital speculation is becoming stronger and stronger, with huge ups and downs and violent fluctuations.

Guo Yang thought for a moment and said, "Wait a little longer, wait a little longer, get ready on your side."

From the operations in the futures market, Gaode knew that the boss’s judgment has always been that the entire market will reverse in the second half of the year.

Crude oil prices will collapse, even to the point where the US bioenergy bill will become invalid.

By then, the artificially created food crisis will naturally disappear and the price of edible oil will naturally drop.

Jiahe just artificially brought this step forward.

After ending the call with Gaode, Guo Yang communicated with Mo Congwei, Ji Zhuowen, Li Yan and others.

The number of drones in Sichuan Province has been confirmed, the milk supply in Sichuan Province is sufficient, and the donated schools have also been inspected...

Only then did I calm down.

He had done everything he could, and he would not take any more risks.

In the evening, we had firewood chicken in the yard of Zhang Wei’s farm.

A simple and primitive method, a big black pot, a brick stove, firewood, the bottom of the pot sizzles and the aroma fills the air.

The special corn tortillas are carefully kneaded and stuck to the circumference of the pot, cooked solely by the steam from the pot.

The chicken is glutinous but not dry, the vegetables are tasty, and the steamed buns are soft and thick. Guo Yang ate several pieces of this corn steamed bun tonight.

"It's so comfortable. No wonder Zhang Wei insisted on coming back. This is much better than the Gobi Desert."

Zhang Wei didn't know how to respond to this.

……

The snow in Qilian Mountains is particularly thick this year.

After May, the seasonal snow at the end of the ice tongue begins to melt, and most of the meltwater seeps into the cracks in the snow layer, forming tiny runoff.

Then the trickles converge, flow into the river, and into the farm irrigation area.

The river will come in stronger and stronger in the next two months.

As the plane circled over Jiayuguan, Guo Yang looked down at the land and could feel the vitality brought by spring plowing.

On the way back to the company, sea buckthorn sprouted new buds and the Hanhai kenaf was already lush and green.

The scene of hundreds of thousands of acres of Gobi Desert turning green is quite shocking.

The "禾"-shaped rooftop farm at the group's headquarters is also covered in green, with the terraced fields planted with a variety of crops and green plants.

Guo Yang took a quick look and returned to the headquarters to listen to Tianhe Seed’s recent work report.

The sales of Tianhe's Tianyu No. 1 seeds encountered some troubles, but the sales of Tiandou, Tianmian and Tianshu remained stable.

Silage corn Tianyu No. 8, wheat Quanyousheng, and sea rice Tianjingyan No. 1 are also expanding their market share.

New varieties have emerged in the market: Tiandou No. 6 and No. 7, rapeseed, sunflower, hops...

In addition, the upward trend in the vegetable seeds sector is also obvious and continuity has been achieved.

The product system was built around the 04 varieties cultivated by the seed store from 06 to 10.

It cannot be compared with international vegetable seed giants such as Syngenta, but it is definitely the best among domestic brands.

There was also an unexpected gain. Due to the frost damage, a large number of citrus and banana trees in the southern region were frozen to death.

This will indirectly benefit the citrus nurseries in Sichuan Province and the banana nurseries in Hainan.

Especially in Sichuan Province's nurseries, the annual production capacity of 50 seedlings cannot meet the market demand at all.

Zhou Shu has already proposed to expand or build a new nursery base.

Even apple nurseries in the north are beginning to sprout.

However, the fruit tree industry is still in its infancy, and whether the varieties are good or not will have to undergo final market verification to be known.

I listened to reports for an entire afternoon, which were basically all about performance.

But in fact, there are still many operational problems, but these are handled by the senior management team.

Guo Yang deliberately kept Qu Yang and made some tea on the coffee table. "How is the Weiguan area going?"

"I'm too busy." Qu Yang helped wipe the tea tray and said, "Fake seeds have appeared in all production areas."

"Some seed companies brazenly sell counterfeit seeds. Many have been found this year, and the authorities have said they will continue to maintain a high-pressure stance against counterfeiting."

While making tea, Guo Yang sighed, "The benefits are too great, and there are always people who take risks. We must fight against counterfeiting, but fighting against counterfeiting is just a cover. Strengthening the construction of our own seed production base is the fundamental thing."

"General Manager Yan is working on this matter this year." Qu Yang said with some concern: "Will there be any impact from the administrative level? Especially in Zhangye."

"It's okay." Guo Yang smiled, "Zhangye won't affect Jiuquan."

"Haha, that's right." Qu Yang laughed and said, "There are still too many seed companies in China."

Although the deck issue affected their mood, they both knew what was going on.

The land is being improved gradually, the pollination and tasseling machine has been developed for two years, the harvester also has a prototype, there are drones for plant protection, and agricultural aircraft are purchased from outside... a closed loop is taking shape.

It is difficult to expect to eliminate counterfeiting by fighting counterfeiting, so we should start with internal management. If the original products are not leaked, how can the outside world copy them?

That night, Guo Yang resumed his daily exercise.

In the following days, I was busy listening to the work reports of various companies and providing some direction and strategic guidance.

Now that the company is on the right track, we should give full play to the power of the team.

His energy and thoughts are limited, so he should think more about strategies and tactics.

But even though I think this way, sometimes I can't help but get involved in specific matters.

The world is a huge makeshift team. It would be abnormal for a company's leadership to be composed entirely of elites.

Apparently Jiahe is normal.

It’s just that Jiahe’s fault tolerance cost is very high.

After a few days of meetings, Guo Yang began to go to the countryside to investigate the situation.

His figure can be seen from the Dunhuang West Lake Wetland at the westernmost end of the Hexi Corridor to Zhangye and Jinchang in the east.

During this period, the disaster that shook the earth arrived as expected.

Guo Yang didn't mention it to anyone in advance.

But due to various coincidences, Jiahe's response was extremely quick.

More than 100 drones were quickly deployed to the front line to cooperate with the first rescue team, helping to obtain local details and transport supplies over mountains and hills. They then went deep into the hinterland to conduct a wide-area inspection of the disaster and monitor landslides and blockages along the coast.

They even assisted in providing emergency communications support and retrieved first-hand information.

Then, Jiahe donated supplies, including milk, mineral water, eight-treasure porridge, instant noodles, biscuits, bedding, tents, folding beds...

Thanks to the hard work of the staff in Sichuan, Gansu and Shaanxi, the patients were sent to the front line as soon as possible.

Donations followed.

Jiahe donated 2 million yuan, ranking fourth after tobacco, mobile and power grid.

While the nation's attention was focused on the southwest, Jiahe Grain and Oil quietly lowered prices across the board in North China, the Yangtze River Delta, and the Pearl River Delta.

In supermarkets everywhere, peanut blended oil, pure peanut oil, rapeseed blended oil, pure rapeseed oil, pure soybean oil, soybean blended oil, sunflower oil...

All prices have been drastically reduced, and there are also various promotional activities. There are many products with a reduction of more than 20%.

If you buy something, I will give you free gifts, such as light soy sauce, vinegar, soy sauce, chicken essence... You can take them away directly on the spot.

The price of raw materials did not drop, and the supply of rapeseed was even affected because of fallow land and a disaster in one of the main rapeseed producing areas.

Overseas, under the operation of capital, the price of soybean oil and oilseeds continues to rise, changing every day.

Under such circumstances, Jiahe Grain and Oil's drastic price cuts were unreasonable.

Competitors' response was clearly delayed.

Perhaps the word "lag" cannot be used to describe it. It would be more appropriate to describe it as dumbfounded, sluggish, and at a loss.

Half a month ago, Golden Arowana was still releasing information about price increases, but Jiahe was unethical and took the opportunity to launch a large-scale promotion.

Why is it falling so sharply now?

Beijing, a large supermarket chain.

Cooking oils from various brands were arranged in cube shapes, and Jiahe Grain and Oil had a large special promotion price tag placed in a prominent position.

This makes people who buy cooking oil notice it immediately.

The barrels of oil are all labeled non-GMO, and there are shopping guides next to them who are responsible for promotions.

An old lady who came to buy cooking oil stayed at the shelf for a while, and then chose the cheaper Jiahe cooking oil.

The shopping guide also thoughtfully gave me a small package of cooking oil.

This made the aunt smile like a flower.

Rice, oil, salt, sauce, vinegar and tea are daily necessities that people need, which determines the high attention paid by the people to these products, especially cooking oil.

The slightest change in its price will make consumers anxious.

Also, because there are too many edible oil brands in the country, price increases or promotions for edible oil are very common.

The aunts have long been accustomed to the ups and downs.

I'm also used to buying promotional oil.

Over the past year or so, the price of edible oil has been rising, making consumers more sensitive.

It is clear which supermarket is having promotion and which supermarket is not.

Therefore, Jiahe Grain and Oil's strategy of drastically reducing prices soon took effect, and sales in the terminal market accelerated significantly.

May 25th.

A week after Jiahe Grain and Oils drastically cut its prices, Fulinmen’s prices also plummeted across the board.

On May 26, Luhua followed suit and lowered its prices.

On May 27, various small brands followed suit and began to adjust prices slightly.

On May 28th, Golden Arowana, which had been clamoring for a price increase, stopped using the strategy of raising prices in public and lowering prices in secret, and openly put up a sign announcing a price reduction promotion.

But the price reduction is not as large as that of Jiahe Grain and Oil.

For a moment, the aunts seemed to see the scene from four or five years ago.

That was also the time when domestic edible oil prices were the cheapest, probably half the price of what they are now.

Now the price has finally dropped.

It's not easy!

Recently, in addition to paying attention to the disaster area, Guo Yang also flew to Beijing, Shanghai, and Guangzhou from time to time.

While listening to reports, I also conduct on-site investigations into terminal market conditions and am on the road almost every day.

In early June, Guo Yang was watching the news on TV. Feng Kai's drone was still active on the front line.

And gradually became the darling of society.

From last year’s drought monitoring, to the rainstorm rescue in the summer flood season, to the reconnaissance and rescue in the snowstorm, and now...

Fengkai UAVs are becoming more and more adept at responding to disasters and are being favored by more and more departments.

buzzing.

The phone on the table vibrated.

Guo Yang took a look and saw it was Gaode, so he answered the call.

"Boss, the first batch of rapeseed varieties such as Tianyou No. 6 have also been processed. The cost is really low!"

At this time, Gaode was full of confidence.

The main pressing raw materials of Fortune and Golden Dragon Fish have long been imported, and they do not have much control over domestic raw materials.

Not to mention the sub-varieties such as Tiandou No. 1, Tiandou No. 6, and Tiandou No. 7, which have advantages in yield and oil yield.

But compared with the latest Tianyou No. 6, it is still a bit lacking.

Gao De said: "100 kilograms of rapeseed can produce 49 kilograms of oil. Even if there is no profit from futures, Jiahe can continue to fight this price war for a long time."

"Are you ready?" Guo Yang said with a smile, "Then lower it again!"

Just the next day, the aunties were surprised to find that the price of cooking oil had dropped again.

Compared to its peak, it has dropped by at least 30%.

The storm is brewing and the "evil ambition" of Jiahe Grain and Oil is obvious.

This level of price reduction is already quite drastic, and many companies are wavering as to whether to follow suit or not.

Compared with the rise, the public attention caused by the fall is obviously much smaller.

Only the cry of a small business can be found in the corner of the news.

"Our factory can only sustain losses for half a year at best. After half a year, we will have to close down."

In the office, Gaode is checking the results of recent market promotions, and the effect of increasing market share is obvious.

This shows that people are still very sensitive to prices.

At this time, the phone rang. Gao De took a look and couldn't help laughing.

It was his former colleague who called.

"Mr. Zhang, how are you?"

"Gao De, does your boss know that you are engaging in a price war without considering the cost? Don't leave in disgrace again in the end."

Zhang Jianhui, general manager of Shanghai Fortune Company under the Guoliang Group, sent a salute with a veiled tone.

Gao De was in a bad mood. "Don't bother yourself with that. It's still early. It can last at least another one or two years."

A year or two?

Zhang Jianhui thought he was joking and said, "We are not afraid of anyone in the price war."

Gao De said calmly: "I know this better than you do. I was the one who led the price war when Fortune Gate was trying to gain market share."

"Let me guess. Your purchase price in the early stage should not be cheap. How many hundreds of millions are you going to lose this time?"

Zhang Jianhui said coldly: "Just wait and see."

beep.

Gao De just stared at his phone. After a while, acquaintances called him one after another, and he responded to them all as if they were joking.

"There is too much inventory. We are busy clearing it out."

"This year's rapeseed harvest is good, with production increasing for the first time in four years. The domestic soybean acreage is also increasing, and the inventory pressure is huge!"

"International market? Now we need to look more at the domestic market. Imported soybeans are not necessarily cheaper than domestic soybeans."

"Yes, your Golden Arowana market share is too high. Don't you want to help Mr. Fang share some of the pressure?"

"Hey, we are also losing money, but the company has sufficient funds and we can't stop for a while."

After several major grain and oil companies confirmed that Jiahe Grain and Oil wanted to seize market share, they stopped being hesitant and responded one after another.

Golden Dragon Fish, Fortune and Luhua once again chose to lower their prices.

The oil and fat industry is an industry that plays with capital. Sometimes, a price reduction of just one or two dollars means a loss of hundreds of millions in profits.

Over the years, how many people can afford to play this game?

Therefore, this is also an exclusive weapon for large enterprises.

In the past decade or so, Golden Dragon Fish, Fortune and others have successively strangled hundreds of small and medium-sized brands through brutal price wars.

This time, many small brands with thin profits and weak power can only be forced to tearfully join the turbulent tide of price war.

Edible oil is an industry with extremely low profit margins. Minus channel losses, in fact, most small brands are struggling on the brink of losses.

However, Zhang Jianhui appeared very confident when facing media interviews.

"We have the largest production capacity, the most complete industrial chain, and the most abundant and unimpeded international procurement channels. I can definitely say that our costs are the lowest in the country."

"Among the company's three largest shareholders, China National Grain and ADM of the United States are both among the world's top 500 companies."

"As long as we get through the most difficult times, the sun will shine again."

"The big ones get bigger, the small ones get smaller, and finally exit the market. Polarization is accelerating. Whoever survives to the end will be the ultimate winner of this battle." said a marketing manager of Golden Arowana.

Sun Mengquan of Luhua said in a serious tone: "This is called fighting to the death. The dispute provoked by Jiahe Grain and Oil is bound to pay a heavy price."

After two sharp drops, the price war remained at a stalemate.

Throughout June, edible oil prices remained low.

During this period, senior executives of Jiahe Grain and Oil were often besieged by reporters.

“Jiahe’s goal is to expand the branded cooking oil market.”

"In the edible oil industry, we do not consider any brand as a competitor. Our common competitor is bulk oil."

Obviously, the reasons given by Jiahe are not satisfactory.

Although the international grain and oil market has experienced great ups and downs, it has generally fluctuated upward.

The prices of imported soybeans and imported oil are not cheap, and it is obvious that oil and fat companies are generally operating at a loss.

In early July, as raw material costs fell, the losses of oil and fat companies were shrinking.

Magic City.

With the Olympic Games approaching, Fulinmen and Golden Dragon Fish have both stepped up their terminal sales efforts due to concerns about difficulties in purchasing goods.

Especially for Golden Arowana, because of its status as the exclusive sponsor of the Olympics, it has raised market expectations.

And at this moment, a new round of price war suddenly began.

(End of this chapter)