Chapter 200: Avoid its edge
"I was stupid to have a hard time with Jiagu Group? China is so big, where is there no chance? Is it necessary to oppose each other so early?" Kang Wenjie, general manager of Yihai Group, said to his subordinates who were also puzzled.
Yihai Group has previously become the most important force in the domestic oil processing industry with edible oil brands such as "Arowana" and "Koufu".
Investment in the construction of grain processing enterprises is also in full swing. Starting from this year, Yihai Group has fully entered the grain processing industry based on rice, wheat and corn, and intends to launch a series of brand rice and brand flour.
The grain industry occupies a lot of funds, is difficult to store, and has great risks, and some local grain storage enterprises and restructured grain enterprises can hardly bear this kind of risk, preferring to help others collect grain.
Relying on its strong financial strength, Yihai Group has also found space to use in the weak grassroots state-owned grain depots caused by the grain reform, which will become a key link in its expanding grain and oil map in China.
The multinational giant, which has already established itself as a leader in China's edible oil sector, is seeking to become a significant force in China's grain market.
"Our branch in Lu Province has made a breakthrough, first of all, we have contacted the grassroots state-owned grain depots, reached cooperation, and through their introduction, established relationships with other counties and cities, and carried out cooperation!"
"Since we're all food system insiders, it's easy to get into. It is also difficult for the grassroots grain bureaus and grain depots, which are experiencing the pain of restructuring, to refuse our request for cooperation. ”
Facing the temptation of abundant capital, the county-level grain bureaus and grain depots facing the pressure of survival seem to be the most normal choice to choose to cooperate with them for their own survival and development.
In addition, most of the grain "brokers" in Lu Province are almost all currently buying grain sources for Yihai Group. See. In the past, most of these grain "brokers" such as woolen yarn and Chinese net were individual grain merchants and private grain enterprises, and they all had grain purchase licenses.
Through the activities of grain "brokers", Yihai Group's grain procurement network is gradually expanding to the whole country, centered in Lu Province.
In the famous high-quality wheat producing area and corn producing area of Lu Province, Yihai Group is using such a collection and storage network to purchase a large number of wheat, corn and other grain sources, and expand frantically, forming a certain scale of storage network.
Yihai Group, which has abundant funds, has established a branch under the nose of the Grain Bureau, which is a strong competitor to both the grain depot directly under the Grain Bureau and the local grain enterprises. Even so, Yihai Group is also an ideal partner for county-level grain depots. Because of the cooperation with Yihai, it is only collected and stored, which is worry-free, and there is no risk.
Of course, the most important thing is ......
"The reason why Yihai is so popular is that it is impossible for those small local businesses to compete with Yihai, they can only be a tool for Yihai to obtain food, that is, to work for Yihai. When it comes to Yihai's threat to the local food system, Kang Wenjie did not shy away from saying that Yihai's strength is the biggest threat to local grain and oil companies.
"But Jiagu is different from ordinary small businesses, and let's not forget that it sniped at us in the merger and acquisition war of oil processing plants. Speaking of this, Kang Wenjie frowned slightly, obviously unable to be happy about this so far.
Originally, it was the best time for Yihai Group to become the hegemon of China's oil processing industry, but it was so stirred up by Jiagu Group that most of the high-quality oil processing plants that were in trouble due to the "soybean crisis" were pocketed, resulting in foreign groups only picking up the leftovers leaked by Jiagu.
On the contrary, Jiagu Group has taken advantage of this to become a major player that cannot be ignored in China's oil processing industry, directly threatening the head player such as Yihai Group.
Because of this, Kang Wenjie is quite wary of Jiagu.
"Now Shandong Province and Hebei Province are many local governments who have taken the initiative to find us, hoping that Yihai can invest. In such an environment, there is no need for us to compete with Jiagu for the grassroots grain depot in Jiangyou Province. Kang Wenjie said lightly.
When two tigers fight, one will be injured.
Since Jiagu has joined in Jiangyou Province, the situation has become complicated and lively, and Yihai will not join in this excitement for the time being.
Yihai has chosen a combination of warehousing, trade and processing to expand and develop at the same time.
At present, it cooperates extensively with the troubled grassroots grain depots in North China, using its warehouse capacity to store corn and wheat for its own purposes, mainly for the purpose of trade, and after the completion of the storage, waiting for the right market opportunity, to sell to downstream traders or processing enterprises.
However, it is clear that Yihai will not rely solely on this model to intervene in China's grain distribution market.
"On the one hand, we must establish various processing plants, consolidate the grain collection and storage network, and strengthen control over grain sources. On the other hand, it is also necessary to step up the construction of its own grain storage enterprises. Kang Wenjie instructed his subordinates.
Kang Wenjie clearly sees the risks: "The practice of renting local grassroots grain depots is not entirely guaranteed. Once the domestic grain market price is lower than the state's minimum purchase price, and the purchase can be carried out in the market, it will inevitably occupy the storage capacity of the grassroots grain depots, resulting in insufficient storage capacity of grain depots in many localities, and they will not be able to store grain for us at that time. ”
His subordinates were busy jotting it down.
"But the grain depots we work with in North China are mainly buying corn and wheat, are we going to give up rice?"
Faced with such a question, Kang Wenjie looked to the northeast, "No, rice is equally important in our industrial map, it seems that Jiagu is going to focus on the southern grain-producing areas, and it is not easy to fight hard, but the rice-producing areas are not only in the south, but also in the northeast?"
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At this time, Jiagu also deduced the thoughts of Yihai Group from the information he obtained.
"So, are they avoiding it?" The imaginary competition ended before it began, and Zhong Huazhi didn't know whether to be happy or depressed.
After reading the information, Qi Zheng rubbed his brows and said, "There are probably factors in this regard, if you can develop easily, who wants to fight to the death?"
"But, old Zhong, have you noticed, Yihai's movements are very fast!"
Zhong Huazhi became serious, "The strategic intention of Yihai Group and even foreign groups to enter the domestic grain field is quite obvious, and its strong financial strength can also support a series of rapid offensives. ”
"The key is to attract investment, local governments are very welcome to multinational grain merchants, and will also introduce relevant preferential investment policies under various convenient conditions. ”
Zhong Huazhi believes that in order to pursue economic development and attract investment, local governments only focus on the immediate and lack of vigilance, which has boosted the tactical layout of the industrial chain of foreign-funded grain enterprises in China, and the reason why they can develop rapidly is not unrelated.
"We can't influence the government, but Jiagu's actions will also be accelerated. Qi Zheng instructed in this regard.
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