Chapter 595: Strong Position and Soybean Diplomacy

In the Ministry of Commerce, Deputy Director General of the Eurasian Division held his wolfberry thermos cup and paced to the Political Research Office.

"Lao Wang, is there no news about the "Far East Cooperation and Development Plan" you submitted?"

Director Wang of the Political Research Office made himself a cup of tea, and then shook his head slowly.

"Heh, I'll just say, Jiagu really dares to think. Deputy Director He sneered.

International cooperation often requires an opportunity, and two countries that were originally unrelated to each other may not have any contact and in-depth exchanges in another 30 or 50 years, but once an opportunity arises, the speed and degree of cooperation will be rapidly accelerated.

Of course, China and Russia are not unrelated countries, but there is still a lack of such an opportunity for state-level cooperation between the two countries in the Far East.

However, Qi Zheng took the initiative to open a window for the country - he is willing to use the attention of the top leaders in the Far East to the soybean industry and the possible economic sanctions that Russia may face as an opportunity to bridge the development of cooperation between China and Russia in the Far East.

The promotion of this idea naturally fell to the Ministry of Commerce, and the "Sino-Russian Cooperation and Development Plan in the Russian Far East" brought by Qi Zheng to the Far East was compiled by the Political Research Office.

Director Wang glanced at Deputy Director He and chuckled: "If Jiagu didn't dare to think about it, they wouldn't be able to lay down millions of hectares of farms in the Far East. ”

Deputy Director He couldn't help but be dumbfounded, and muttered for a while: "Can this be the same?"

Jiagu is not unaware of the "black-and-white" Ministry of Commerce in the Far East, but it is precisely because he knows that he is happy to make a fortune in a muffled voice - this is a more sensitive issue after all.

More than 3 million hectares of land, although nominally controlled by Russians, I don't know how many people in the country find it incredible. Because in any country, land issues are sensitive topics, and if you just want to cooperate with others to develop, whether you can get through the relationship is a question. With the exception of Jiagu, none of the Chinese agribusinesses that have developed overseas are estimated to have a million hectares of arable land.

Rao is like this, and Deputy Director He is still a little dissatisfied with Jiagu.

It's not that he has a grudge against Jiagu, it's just that he feels that the authority of their division has been offended.

For such international cooperation, the Ministry of Commerce or the Ministry of Development of the Russian Far East should present their intentions to each other on an appropriate occasion, and then the two heads of state reach a consensus, and then the two sides will jointly negotiate and negotiate.

The so-called appropriate occasion is often a diplomatic occasion. However, in the absence of a unified voice within the Ministry of Commerce, Jiagu was "taken the lead".

Director Wang saw that Deputy Director He was a little indignant, and said, "It's good that you can achieve your goal, don't you want to see more 'Jiagu' in the Far East sooner?"

Deputy Director He lowered his voice and said: "Why don't you want to? There are the largest coal mines, tin mines, and world-class large-scale polymetallic mines in the Asia-Pacific region; 81 percent of the diamond reserves, 51 percent of the forest resources, 37 percent of the freshwater resources, and 33 percent of the aquatic biological resources; and 32 percent of the gold reserves, 27 percent of the natural gas reserves, and 17 percent of the oil reserves...... If there is no precedent for Jiagu's success, everyone may be afraid of risks, but with Jiagu in front, many domestic companies have long been ready to move. ”

Director Wang laughed: "Then what are you still struggling with?"

Deputy Director He pursed his lips: "Don't you think, Jiagu is trying to bind the country?"

When Director Wang heard this, he patted his head: "Lao He, you have just entered the Eurasian Division, and you may not know much about the importance of Jiagu. Well, let me put it this way, just because Jiagu has an irreplaceable special position in the domestic soybean industry chain, we don't need to put it forward, we have to take the initiative to back it up. ”

"Huh?" Deputy Director He said in disbelief: "Jiagu is a big grain merchant, I admit that they are developing rapidly, and it is indeed rare to have the current scale, but to say that it is irreplaceable, it is an exaggeration." ”

Director Wang shook his head.

Deputy Director General He is an out-and-out "state-owned enterprise faction" within the Ministry of Commerce, and he is most supportive of the work of state-owned enterprises overseas. It is precisely because of this that his opinion of Jiagu is just similar to that of the National Grain Group, but his reputation is a little louder.

However, in the Policy Research Office, a number of industrial clusters in Jiagu have become the focus of follow-up research. If you want to say that the people in the Ministry of Commerce who know Jiagu the most, Director Wang is not the first, but at least among the top three.

He coughed lightly, and first said, "The soybeans that Jiagu brought back from the Far East don't need to be explained, right?"

Deputy Director He nodded. Last year's data shows that China imports more than 50 million tons of soybeans from abroad, of which the Far East supplies more than 10 million tons, accounting for 20% of them...... This can be said to be all the credit of Jiagu.

The value of a soybean is almost negligible, but hundreds of billions of soybeans can add up to one of the most important focuses in international trade. This is also one of the dependencies of Jiagu in the opinion of Deputy Director He.

However, Director Wang only briefly mentioned it, and then turned the topic back to China: "Many people pay attention to Jiagu's outstanding achievements in soybean planting in the Far East, but ignore Jiagu's contribution to domestic soybeans. ”

"This year, the soybean planting area in Hei Province has stabilized at 55 million mu, with a total output of nearly 9.9 million tons, half of the country's planting area, but the output has exceeded half of the country's, becoming the country's most important non-GMO soybean production base. ”

"But you have to know that just a few years ago, soybean acreage in the province was declining. In the final analysis, it is about high costs and low returns - state-owned farms can achieve high yields and high benefits per mu through large-scale and standardized planting, but the level of soybean cultivation of ordinary farmers is very different. ”

"One of the most important ways to solve the contradiction between the increasing demand for soybeans and the limited arable land area is undoubtedly to improve the yield and quality of domestic soybeans. Among them, Jiagu's support for domestic soybeans is a watershed in the rise of the domestic soybean industry. ”

In fact, compared with the genetically modified soybeans in the United States with high yield per mu and high oil yield, Jiagu has cultivated non-GMO soybean varieties of comparable or even higher quality. For example, the fat content of the high-fat soybean "Jiadou No. 3" is 25%, and the protein content of the high-protein soybean "Jiadou No. 9" is 48%, both of which exceed the average of soybeans imported from the United States. In some plots, the yield per mu is even more than 300 kg, which is much higher than the average yield of genetically modified soybeans in the United States......"

This is the first time Deputy Director He has learned about it, and his eyes lit up for a while: "Is this true?"

Director Wang nodded: "It's not all." On the one hand, through the establishment of soybean cooperatives, Jiagu organized soybean farmers to mechanize from sowing, field management, pesticide control to harvesting, just like state-owned farms, reducing the cost of soybean planting to about 6,200 yuan/hectare, which is similar to the production cost of genetically modified soybeans in the United States...... You don't know that the soybean farmers who have joined the Jiagu Soybean Cooperative now have almost twice the annual production efficiency compared to those who have not joined!"

So now in the Northeast, those who can join the Jiagu soybean cooperative have chosen to join, and even the state-owned farms that grow soybeans have introduced the soybean varieties of Jiagu. In recent years, the soybean planting area in the country is still declining, but the output has risen instead of falling. Because in the Northeast, especially in the black province, the production level of domestic soybeans after integration has reached the world's advanced level.

Deputy Director He asked curiously: "I heard that Jiagu's purchase of soybeans in the Far East is also higher than the market price, are they not afraid of losses?"

Director Wang smiled: "Good question." The thing about the Jiagu chicken thief is that in the GMO controversy in the past few years, it occupied the commanding heights of 'non-GMO' and launched a 'people's war', thus occupying the minds of consumers. Let's put it this way, Lao He, do you know what brand of cooking oil you use at home?"

Deputy Director He happened to know, and he said honestly: "It's Jiagu cooking oil." ”

Director Wang unsurprisingly spread his hands.

The safety of genetically modified foods hangs in the balance, and most people simply shy away from them. According to the National Development and Reform Commission's consumer survey data, 73% of respondents prefer non-GMO foods.

In China, only Jiagu edible oil dares to distinguish itself from genetically modified products, because the Arowana in the back does not have its own raw material base, although the national grain Fulinmen has its own raw materials, but it is far from meeting its market demand, so it needs to import a large number of soybeans - genetically modified soybeans.

Jiagu not only controls the raw material base of non-GMO soybeans, but also can be self-sufficient, so Jiagu edible oil in the minds of consumers means that it is a pure non-GMO product, and consumers do not have to worry about food safety when they buy it, so it is not surprising that Deputy Director He's family chooses.

As a result, under the situation of overcapacity in the industry, the market share of Jiagu edible oil has reached a step a year, and the actual market share has exceeded 30% so far, and the performance in terms of profit margin is even more outstanding.

Among the top three edible oil brands last year, FLM was the worst, with a profit margin thinner than paper, only 1.6 percent, Arowana was much brighter, reaching 3.3 percent, and Jiagu edible oil was blinding, with a profit margin of 7.8 percent – this is still under the premise of strictly implementing the government's measures to ensure supply and stabilize prices.

Although the grain processing industry is characterized by "big profits", when your product is always the first choice of consumers, the bargaining power is very different.

"And that's just the traditional segment of soybean production and processing. In Hei Province, a soybean intensive processing industrial cluster with an output value of 100 billion yuan is rapidly forming. There, there is the most complete soybean industry chain in the country, basically forming the whole industrial chain of 'soybean planting-soybean oil extraction (soybean meal)-soybean protein series production-soybean polysaccharide and dietary fiber production-soybean granule protein and energy bar production'; there is the only enterprise in the world that can produce soybean polysaccharides on a large scale except for the island country Fuji Company; there is the only American Wenger puffed granule production line in Asia (only 7 in the world), and the quality of soybean granule protein produced is the world's leading ......"

"Don't look at Jiagu as more of a raw material supplier in this industrial group, but Jiagu's status is beyond doubt, because the high-quality and high-protein soybeans provided by Jiagu can at least reduce the cost of soybean deep processing by several thousand yuan/ton......"

Director Wang said in a slightly raised voice: "You say, such a national enterprise that produces 25% of China's soybean output, occupies nearly one-third of China's edible oil market, and even promotes China to become the world's soybean intensive processing center, is it worthy of our Ministry of Commerce's endorsement?"

What else could Deputy Director He say? He had to nod in agreement: "You're right. ”

Director Wang's words also show that in addition to the opportunity to "build a bridge" for the Sino-Russian Far East cooperation plan, the main reason is also to show the attitude of the Russian federal government: Jiagu also has someone behind it!

Well, this can be regarded as an alternative "soybean diplomacy" of Qi Zheng.

I Dajiagu, behind it is the country!

......