The expansion of the U.S. bioenergy program has added fuel to the fire of the international commodity bull market, and has also made the global supply of agricultural products more tight, among which corn and soybean oil have been directly affected. See 1 yarn 3 Chinese net

Corn is used to produce ethanol and soybean oil is used to produce biodiesel.

Against the backdrop of high crude oil prices, countries are following suit and are actively developing the biofuel industry. The European Union produces biodiesel from rapeseed oil and sunflower oil, while the United States has 80% of the biodiesel production feedstock from soybean oil. Brazil also uses soybean oil to produce biodiesel.

On the other hand, the subprime mortgage crisis has begun to spread, and a lot of capital has entered the market for bulk agricultural products, speculating on prices very high.

Jiang Ping and Su Fang, with the huge amount of money raised by Qi Zheng, began to crisscross the hot capital market and grab the benefits to their heart's content.

After Qi Zheng and the two exchanged and analyzed the macro trend, they were more clear about the future situation, and the rest of the capital operation Qi Zheng had to stand aside.

At this time, the domestic limelight had subsided, so Qi Zheng returned to China in a hurry.

This year, the Jiagu system secretly promoted the outbreak of a food safety crisis, and therefore showed its face across the country, and even took the boss to the rich list.

It's the end of the year, and the trend of the Jiagu system this year is a foregone conclusion. Overall, the results have been encouraging.

If you ask the people what their biggest impression is this year, in addition to the melamine incident, it may be a "price increase".

Pork, rice, fast food, instant noodles, canned gas...... The comprehensive price increase of these commodities related to people's clothing, food, housing and transportation is one of the most discussed topics among netizens this year.

"Thanks to the overall rise in prices, the business income of our Jiagu system has increased amazingly compared with last year!" At the group's annual meeting, general manager Wang Yuye set the tone for the development of the Jiagu system this year. Look at 1 gross 2 lines 3 Chinese net

According to the data collected by the group, among the main living materials for this year's price increase, the highest is not the pork with a "triple jump" in price as imagined by Qi Zheng, but edible oil. The annual increase of more than 52 makes edible oil the first price increase in 07.

"China's soybean crushing industry is an industry with raw materials abroad. Oil processing using imported soybeans as raw materials has accounted for the vast majority of domestic soybean crushing capacity, and international soybean prices are directly related to domestic edible oil prices. Zhong Huazhi, head of Jiagu International Commerce, who is responsible for the group's soybean import business, analyzed.

"Our group's soybean planting area in the Russian Far East this year has reached 1.7 million hectares, coupled with the domestic soybean cooperative planting base, the self-controlled soybean output has exceeded 5 million tons, and the soybean self-sufficiency rate has exceeded 50, compared with other oil processing enterprises, it has occupied a great advantage in cost. ”

"However, the soaring international soybean prices still bring about an increase in costs, and the price of our edible oil has also risen. ”

Wang Yuye told Qi Zheng that last month, Arowana once again issued a price increase notice to dealers, of which the price of soybean oil and rapeseed oil increased by about 4, and the price of blended oil increased by about 9, which is the third time it has raised prices this year.

Subsequently, FLM edible oil also announced a price increase. Jiagu edible oil also increased accordingly, but the increase was the lowest among the three.

At present, in the domestic edible oil market, Arowana occupies the first place, accounting for about 38 of the market share of small package edible oil, Fu Linmen occupies 15 of the market share, and Jiagu edible oil has a market share of about 10.

As a top three, I feel not only profit and glory, but also pressure.

The rise in the price of edible oil has attracted the attention of all parties. The three major domestic edible oil giants were also "interviewed" by the National Development and Reform Commission because of the price increase.

Yihai Kerry, a foreign-funded grain and oil giant behind Arowana, said that we don't want to raise prices at all, just because the cost is high, so it has to rise.

Although this is a bit shameless, it is not rough.

The price increase of edible oil, just talking to the company can not really solve the problem, at most it is just a temporary price increase. If we don't start from the source, we can only treat the symptoms but not the root cause.

However, the national grain reserves, which are responsible for starting from the source, are now powerless - in order to stabilize the price of edible oil, the national grain reserves have put 200,000 tons of reserve edible oil on the market. However, this year's consumption of edible vegetable oil in China was 23.74 million tons, so this sell-off did not have an effect.

As for the other state-owned giant Guoliang Group, which is also responsible for coordinating market prices, the reserves of soybeans or soybean oil are not even comparable to Jiagu.

"As for pork, it's clear to everyone. Due to the high-fever PRRS swine fever that lasted from last year to the middle of this year, the number of live pigs in the herd fell sharply, coupled with the sharp rise in the price of feed raw material corn, the price of ordinary pork in the market jumped from 9 yuan jin at the beginning of the year to 136 yuan jin in December, an increase of 51. ”

"Our group's high-end pork prices have even increased by 100. According to the current data, the operating income of the pig breeding subsidiary has increased by at least 300 compared with last year. The bet between Jiagu Agriculture and Animal Husbandry and Goldman Sachs has settled in front of this data, and Li Dongliang, who won the bet, said in a relaxed mood.

Everyone laughed knowingly.

Wang Yuye went on to add, "Among everyday foods such as rice, oil, and meat, rice has seen the smallest increase. The increase in Jiagu rice was only 4. ”

"But like Jiagu Edible Oil, we want to give more discounts to consumers. Thanks to the group's exposure and the assistance of Boss Qi this year, we have saved a lot of advertising costs, and at the same time, we have also let more consumers know about them, and the sales volume has grown the fastest in the industry. ”

He Changchuan of Qingyuan Beer also said with a smile, "Although there has always been a voice that the price of beer will rise, due to the fierce competition in beer sales, not only has the price of beer not increased, but the major manufacturers have also reduced prices in order to attract customers." However, it is also because of the attention brought by the exposure of the group and the boss, and the sales volume has maintained a growth rate ahead of its peers......"

The majority of the current revenue of the Jiagu system is basically in these aspects

The annual revenue of Jiagu Grain and Oil Company is about 60 billion, and rice and edible oil are the focus of income;

Jiagu Food and Beverage Company's annual revenue is about 34 billion, including 18 billion from Jiagu Dairy and 16 billion from Qingyuan Beer;

The annual revenue of Jiagu agriculture and animal husbandry is about 9 billion, and pigs are the focus of income;

......

Wang Yuye concluded, "Excluding overseas business, this year, the operating income of the entire Jiagu system in China is about 115 billion yuan, and even with the huge investment in the construction of Jiagu ranch and warehousing and transportation channels, the group's profit is expected to reach 4 billion yuan." In this year, the Jiagu system has really enjoyed the tremendous benefits of soaring prices and growing reputation, with an increase of more than 200 ...... over fiscal 2006."

Everyone here was in a state of agitation.

Qi Zheng looked around, and first said, "It seems that my worth is definitely underestimated!"

The crowd laughed.

Qi Zheng also smiled and said, "In the seventh year of Jiagu's establishment, the revenue has finally exceeded the scale of 100 billion, no matter how you say it, it is a miracle, it all depends on the efforts of the monarchs!"

After a pause, his voice was a little more excited, and he said, "The next 2008 is a very critical year. Everyone has read the situation analysis paper of the Ministry of Strategy, the economic environment will change dramatically, and commodity prices will plummet...... Whether we can maintain the scale of revenue of 100 billion yuan or even go further depends on the joint efforts of everyone. Let's go to a wider world in Jiagu......"