Chapter 357 Bankruptcy
After all, the 158-year-old Lehman Brothers is not a cat with nine lives.

The financial tsunami triggered by Lehman Brothers swept across most countries and regions in the world.

The global financial crisis is like a snowball. As it rolls from the top of the mountain to the unknown foot of the mountain, fresh snow is constantly added. It is difficult to predict how big this snowball will eventually be.

Lehman Brothers filed for bankruptcy protection, Merrill Lynch was acquired by Federal Bank, and Federal was forced to rescue the insurance giant AIG...

Wherever the financial tsunami swept through, weak companies collapsed one after another.

But more companies are struggling between life and death.

This financial crisis, which originated in Wall Street, has hit the nerves of the whole world like a tsunami, with an unprecedented breadth and depth.

In China, as the three-day Mid-Autumn Festival holiday came to an end, the stock market and banking sectors plummeted across the board, and their performance can only be described as horrific.

This is not good news for domestic foreign trade imports and exports.

Weak foreign demand is unfavorable for exports;

But it is also not good news for some crushing companies that want to import soybeans.

Although the price of U.S. soybeans has fallen like a natural fall, its price is still several levels higher than that of domestic soybeans.

Especially at this time, the RMB has depreciated and its purchasing power has declined.

Faced with the bustling harvest scene in domestic grain-producing areas, these companies have become isolated.

But the market is not merciful when it abandons someone. The production capacity that has been delayed in starting up has caused the market vacated by these companies to be quickly divided up.

And with the launch of new domestic beans, the prices of additional products such as edible oil and soybean meal are still falling.

fall!
fall!
Plummeted.

No one expected the market changes to be so drastic.

No one dared to imagine that when the purchase price of domestic soybeans fell below 1.5 yuan/jin, or even 1.3 yuan/jin, farmers' potential reluctance to sell had not yet been aroused.

Some people can't understand.

The State Food and Grain Administration also seems indifferent to all this.

Faced with the market's call for a minimum national reserve purchase price, the Grain Bureau's performance seemed slow.

Director Nie said confidently: "This sacrifice is worth it. The short-term sacrifice of farmers' interests will be exchanged for the pricing power of domestic soybeans, and even more possibilities."

"Moreover, if we don't lower the price early and rush to get the factory's orders, the subsequent market will be even more brutal!"

Secretary Nie thought of the huge soybean production figures this year and realized how difficult the matter was.

"But the pressure from outside is too great."

“The other side of the ocean is already interfering.”

"There is also pressure from the military."

My neighbor hoards food, so I hoard guns. America’s food hegemony is based on its strong military power in the world.

Director Nie snorted coldly, "We can't interfere with other parts of the world, but if we develop in China and are still controlled by others, then there is no point in developing!"

“Isn’t he going to subsidize the farmers?”

"Let him get enough subsidies this time, and we won't file a complaint with the WTO."

The agricultural products that the United States has lost its export advantage in are far more than just soybeans. Corn, wheat, cotton, alfalfa, etc. have all suffered heavy losses in the super weeds and red fire ant incidents in the past two years.

As far as he knew, the Americans' acquisition of Federal Bank and the rescue of AIG triggered a chain reaction.

Farmers staged their largest demonstrations since the crisis began.

Thousands of farmers took to the streets in California, Arizona, Illinois, Mississippi, New Orleans, Texas and other areas.

A unified slogan was put forward.

We need help too.

It was the federal government’s connivance that allowed GMOs to get out of control, triggering this crisis that has lasted for a year.

The farm suffered heavy losses.

If no assistance is provided, a large number of farms, agricultural product processing factories and foreign trade export companies will go bankrupt.

There are at least several million more unemployed people across the country.

The secretary thought for a moment and asked, "Then how will the purchase price for the national reserve be determined this year? There is such a call in the market, and the expert group is also urging it."

“Do you think the price given by the expert group is reasonable?”

Director Nie stared at the secretary with such a sharp gaze that he could sense his anger. He knew that the experts' pricing would not satisfy the higher-ups.

It will also not satisfy some domestic companies, such as Jiahe, Jiusan, and Guoliang. Even Guoliang does not want to see the purchase price be too high at this time.

As for the expert group…Monsanto, Wilmar International, the four major grain traders, etc. have many voices among them.

Last year, the purchase price of state-owned soybean reserves was 1.85 yuan per catty, and this year the tentative price has been reduced.

1.7 yuan/catties.

It is much higher than the current market price of 1.3 to 1.5 yuan per catty, and even at 1.3 yuan per catty, there is still room for decline.

If the national reserve really sets the price at 1.7 yuan, North American soybeans will still have no advantage, but South American soybeans will have a lot of profit margins.

This price is impossible to agree to.

First of all, there is no way that the National Grain Reserve will agree to this. This is definitely a losing deal!
Obviously the expert group also knew that they just wanted a name, a name for external publicity.

If the national reserve purchase price of 1.7 yuan per catty is really reported, even if it is false news and still needs to be considered, farmers will have higher expectations.

The acquisition process of companies such as Jiahe, Jiusan and Guoliang will be hindered.

There is still a possibility for North American soybeans to enter the domestic market.

The purchase and storage price of 1.7 yuan per catty is just a cover. As long as the State Grain Administration makes any move, it may become a knife for others.

This is not a question of rationality at all.

The secretary's forehead was covered with sweat, and he regretted his rashness.

"I...uh..."

Director Nie's eyes were sharp. "Just pretend that this incident never happened. I don't know. Everything in the domestic market is normal. There is no need for the national reserve purchase price for the time being this year."

"clear."

The secretary nodded slightly, knowing that this hurdle had been passed.

……

In late September in the north, the weather is clear and cool, and the bumper harvest of grain makes farmers very happy.

On a farm in Shandong Province.

Large-scale farmer Wang E is very satisfied with this year's harvest. Just like last year, her 1200 acres of land did not disappoint her.

However, the price of soybeans is not very good this year. Compared with last year, it can be said that it has fallen to a very low level.

However, if the soybean yield is 500 kilograms per mu, plus subsidies, the income per mu can still be to yuan.

The income from growing rice before switching to soybeans is still far greater.

Moreover, I didn’t realize it when I was sowing, but I found out when I was harvesting that there were so many people planting soybeans this year!

In the Yellow River Delta, the only crops are alfalfa and soybeans.

One field is connected to another field, one village is connected to another village.

At this time, even a fool can realize that the market conditions this year will not be good.

After harvesting the last piece of land, Wang E called the buyer.

The buyer is naturally Jiahe Grain and Oil, and all the bases nearby have signed a unified contract.

After a while, the call was connected, and before she could ask, a young man with full of energy told her everything she wanted to know.

"Hello, Sister Wang, do you want to sell soybeans? Today's purchase price is 1.41 yuan per catty."

Wang E said in dissatisfaction: "Xiao Yuan, why did you lower the price again? It was 1.45 a few days ago."

"Sister Wang, there's nothing we can do about it. This is the market situation right now. If you don't believe me, just go and ask around and see which company offers a higher price than Jiahe? We're only offering you this price because our location is convenient for transportation and not far from the factory. Otherwise, the price would have to be lowered."

"I want to ask you something. Will the price go up later?"

"It won't work, Sister Wang. Just trust me this time. Sell it as soon as possible. I know your costs. The total of production materials, labor, and land rent is no more than 600 yuan."

Xiao Yuan said: "You have a profit of at least 150 yuan per mu, a total of 18 yuan, which is a lot of money."

Last year, Wang E’s profit per mu could reach four to five hundred yuan, but this year it was more than halved.

This really hurt her for a while, but she had been farming for so many years and knew that last year was a pioneer's bonus.

Not everyone has the courage like her to convert 1200 acres of rice fields into dryland soybean fields.

This year's bonus is gone.

This is the Chinese people's ability to follow trends, especially in an industry like farming, which has a low entry barrier. As long as the profit is high enough, you can be fully employed in one or two years.

But she could still make money, so Wang E gritted her teeth and sold the soybeans to Jiahe as agreed.

“The seed spreads too quickly.”

"Xiao Yuan, has your company launched any new products? Can you recommend two to me?"

"Sister Wang, I'm not from the seed company either."

"Please ask for me." Wang E thought for a while, "Xiao Yuan, you don't have a girlfriend yet, I'll introduce you to a girl someday."

"Sister, you..."

"If you miss this store, you won't have the chance again. That girl is so cute and sweet."

"Sister, I'll ask for the seeds for you. No need to introduce anyone. I'll come and collect your soybeans tomorrow morning."

In a temporary warehouse at the port.

Bulk grain transport trucks unload quickly with the assistance of loading and unloading trucks.

Yuan Zifang, who came from a small town in the south, couldn't help but mutter to himself after hanging up the phone.

"I've been in Shandong for two years, and I've never seen a petite girl. Wang E must be 1 meters tall, so what she calls petite isn't that small."

"However, once the soybeans from Wang'e and other big farmers arrive at the port, the first shipment from Mayong can depart."

Yuan Zifang also had a lot of gossip about the current soybean processing situation in the country.

Soybean processing plants along the northern coast are basically occupied by domestic soybeans.

Even Bunge's three soybean processing plants have fallen. It is said that the leaders of several factories even plan to purchase soybeans through Jiahe's channels.

No one wants to die as long as they can survive, especially in today's financial turmoil, when factories closing down along the coast are everywhere.

Management is also human. As long as foreign capital still wants to develop in the country, it will not abandon these basic foundations.

Although edible oil and soybean meal are still at low levels, the price reduction of domestic raw materials has provided a way out for processing plants.

Only by holding on to it firmly can the hundreds of millions or even billions of dollars of initial investment avoid being completely wasted.

Two days later,
Yuan Zifang witnessed with his own eyes the first bulk carrier loaded with soybeans heading south.

This may also be the first soybean ship sent from Shandong Province to Guangdong Province in recent years.

The times have changed.

Those who refuse to change their mindset will only drown in the waves.

...

In Jiuquan at the end of September, a cold wind had gradually started to blow. The red hemp flowers had already withered, and the bees had gradually taken refuge in their beehives.

But the first batch of sea buckthorn berries turned red, adding a mysterious color to the Gobi Desert.

From a distance, it looks red; from up close, it is crystal clear and looks like a small orange.

Quanwang Biotechnology and Jiahe Food Research Institute collected raw materials, carried out ingredient testing and product development at the first opportunity, and everything went in an orderly manner.

Guo Yang also tasted the ripe sea buckthorn fruit in the office, which had a unique sweet and sour taste.

He doesn't really like sour food, but this time the sea buckthorn fruit is an exception.

A warrior that is not afraid of wind, sand and drought, with extremely strong vitality and the ability to conserve water resources, all these make the sweet and sour flesh of sea buckthorn contain the essence of nature.

A phone call interrupted Guo Yang's tasting.

Guo Yang took a look and saw that it was Lu An from Jiahe Grain and Oil Mayong Factory. He raised his eyebrows. Normally, Lu An would not call him.

"Hey."

"Boss, Zhi Zhiyuan contacted me and wanted to sell the two factories in Pengcheng, but the time given was very tight, and they are still in contact with Guoliang."

Zhi Zhiyuan couldn't hold on any longer, or rather, he never thought about holding on.

All its channels are overseas. In the early stages, it kept purchasing imported soybeans. However, it encountered an avalanche in soybean prices, and both edible oil and soybean meal plummeted. It was seriously damaged and had to simply sell its products.

Then, the financial crisis hit.

Its other main business, wheel hub production and seed manufacturing, also suffered a severe blow, and the operating conditions of the entire group declined rapidly.

As the first shipload of soybeans from Shandong Province arrived at the port in Guangdong Province, Guo Baichun could no longer sit still.

No matter how much media publicity, experts' advice, or seeking help from other places, we have tried every possible means to change the situation.

Processing domestic soybeans?

For Zhizhiyuan, which is far away from the main production areas and has no upstream channels, it is a fat sheep to be slaughtered.

He didn't think Jiahe would let him go.

So, sell it!
After learning the whole story, Guo Yang was calm and said, "If Guoliang is willing to take over, let Guoliang take over."

"what?"

"I don't believe that Guoliang will take over. Let's just drag it out. It's not Jiahe that will suffer."

In fact, Guo Yang remembered that Gaode might not be in the country at the moment, so he brought a group of key personnel to Egypt to negotiate the acquisition of port shares.

The Egyptian layout is clearly more important.

Why is the Middle East in chaos? Egypt has an unshirkable responsibility.

As a populous and military power in the Middle East, Egypt is unable to exert sufficient influence on the Middle East and can only allow Israel to toss it around.

One of the reasons was that he was strangled.

We cannot be self-sufficient in food.

All the foreign exchange in the entire country is not enough to pay for the purchase of grain from abroad.

The purchasing team of Jiahe Grain and Oil was taken away by Gao De, but Guo Yang didn't want to deal with Zhi Zhiyuan either.

If you die, you will die.

Many factories have closed down during this period, including several soybean processing plants that declared bankruptcy as the financial crisis continued to spread.

Acquisition?

There is no scale or machinery, and the processing methods are extremely low-end. The cost, hygiene, and safety are almost all substandard.

The correct solution for this kind of backward and excess production capacity is to eliminate it.

Jiahe ignored Zhizhiyuan. Guoliang owns Zhonggu Oil in Dongguan, which also has no interest in Zhizhiyuan.

Guo Bochun was eager to sell it, but found that no one was willing to pay attention to him.

Domestic governments and enterprises don’t care about its life or death at all.

Louis Dreyfus severed its partnership with Zhi Zhiyuan like abandoning a slave, and instead sought broader cooperation with Golden Harvest.

People only pay attention to the winners.

Big companies like Guoliang, Wilmar International, Bunge, Cargill, etc. have all restrained their efforts and started begging like a dog wagging its tail.

The final winner, like a alms giver, controls the price so that it no longer falls, thus giving processing companies room for profit.

The dog's tail wagged even more happily.

But unfortunately, this space is not left for companies like Zhizhiyuan.

It didn't even have a chance to wag its tail.

The soybeans in stock are about to go moldy, and there is no sign of a price reversal. If production starts, there will be huge losses, and it seems that there is only one dead end left.

Guo Baichun was unwilling to give in just like that.

He contacted all the media he could get in touch with and vented his dissatisfaction like crazy.

Manipulate the Dalian Commodity Exchange futures prices at will!

Was the national reserve purchase price eaten up?

Ignoring the interests of farmers?

He was looking forward to the development of public opinion, but found that no one paid attention to it. Countless companies had gone bankrupt, and now there was just one more second-rate company.

(End of this chapter)