Muyuan Co., Ltd. happily accepted the subsidy of Jiagu and joined the energy system of agricultural and animal husbandry waste in Jiagu.

In fact, Qin Yinglin didn't know that Jiagu's agricultural and animal husbandry waste energy system is not only equivalent to building a "gas field".

In terms of comprehensive utilization of agricultural and animal husbandry waste, Jiagu is the largest livestock and poultry manure treatment household, the largest straw consumer in China, the largest biomass energy producer in China, and the largest organic fertilizer producer in China......

The total annual processing of agricultural and animal husbandry waste is close to 90 million tons, and the comprehensive utilization rate of straw in the country has increased by nearly 7 percentage points, and the converted organic fertilizer contains 500,000 tons of nitrogen, 120,000 tons of phosphorus and 1.3 million tons of potassium, which is equivalent to about 4% of the total amount of chemical fertilizer application in the country in 2010......

The most rare thing is that all this is achieved on a profitable basis.

On the one hand, thanks to the scale and technical advantages of Jiagu, it can form a stable supply of biomass gas and greatly reduce operating costs, and on the other hand, it is also due to the fact that Jiagu has obtained the qualification for biogas power generation grid.

-- The state stipulates that the feed-in tariff for biomass energy is 0.75 yuan per kilowatt hour, which is higher than the feed-in tariff for thermal power. This has really opened the road of industrialization of agricultural and animal husbandry waste energy.

And in order to get this qualification, Jiagu actually took on more responsibilities as well.

......

"This year's corn temporary storage auction did not go well?" Qi Zheng asked Wang Yuye, who had returned from participating in the national temporary storage corn auction, after signing the document to apply for a subsidy to the Muyuan pig farm.

Wang Yuye rubbed his tired eyebrows: "It's not going well, but it's just a little unexpected that the price of corn has risen to 2,000 yuan tons." ”

This year, corn has become a star product in domestic grain varieties, the bull market in the corn market is unstoppable, and the imported corn that has reached a new high has also been pushed to the forefront.

In order to curb grain prices, the state revised the rules for the auction of temporary storage corn for the third time, limiting the qualifications of grain-using enterprises participating in the auction - and Jiagu, as a new player, was qualified to participate without any suspense.

"This time the state reserve corn auction 200 tons, our Jiagu transaction 550,000 tons, the transaction price is 2,007 yuan tons, the cost is at least 3% higher than our own purchase...... Wang Yuye sighed.

Qi Zheng was not surprised, and shrugged: "There are gains and losses, aren't they?"

What the two of them are talking about is the new changes in the corn collection and storage of Jiagu.

Corn is the "king of feed", about 65% of the world's corn is used as feed, and it is an important foundation for the development of animal husbandry. More specifically, the pig industry.

Although the composition of pig feed has been diversified, and the proportion of corn has dropped to 40%, at least one million tons of corn are needed every year based on the size of millions of pigs slaughtered annually by Jiagu Agriculture and Animal Husbandry.

For the time being, Jiagu has not yet had the energy to get involved in the field of corn planting. In the past, these corns were basically purchased by Jiagu himself. But since this year, Jiagu's corn consumption has been linked to "digesting national stocks".

"We digest the inventory for the country in exchange for more policy support from the state on the energy conversion of agricultural and animal husbandry waste, and to some extent, this is an equivalent exchange. Qi Zheng leaned back in his office chair and said.

Wang Yuye smiled bitterly: "I'm just afraid that the pressure on the temporary reserve will get bigger and bigger......"

It's not that I'm afraid, it's definitely getting bigger and bigger!" Qi Zheng said silently.

If we say that the basic self-sufficiency of domestic grain is the basic national condition, in the case of corn, a serious "disease" is overcapacity!

All this began with the temporary corn storage policy in 08.

After the implementation of the temporary storage purchase policy in China, because of the obvious and stable benefits, the corn planting area has gradually increased, and the output has also increased. Last year, corn surpassed wheat to become the largest grain crop in the country.

It stands to reason that China is the world's second largest producer of corn and the second largest consumer of corn, and the huge consumer demand is almost equal to the production - but the overcapacity of corn is really happening.

The root cause is cost.

As a corn demander, Jiagu is very important to cost. Taking this year's imported corn as an example, the dutiable price of imported corn from the United States is 80 yuan ton lower than the transaction price of corn in China's southern port, and the cost gap is still widening.

Of course, there are quotas for corn imports. The annual corn import quota is 7.2 million tons, which seems to be insignificant compared to the annual consumption of about 200 million tons of corn in China, but its demonstration effect is extremely bad.

For example, if you buy the same product online, this one is open and the price is higher, while the other is much cheaper and often out of stock...... Come to think of it, most people will wait for the cheap one.

Wait a minute, and you'll be done with the calves – and in the case of corn, a lot of corn substitutes are coming.

Barley, sorghum, and even forage imports, which are monopolized by Jiagu, can be considered corn substitutes. The bottom line is that these alternatives are not protected by quotas, are extremely tariff-free, and are quite cheap.

In this case, domestic corn can't be digested so much, so it can only be saved - but there is also an in!

According to the data obtained by Qi Zheng, the total domestic corn supply this year exceeded 200 million tons, but the total demand was stable at about 180 million tons, and the annual inventory exceeded 40 million tons.

Combined with the rapid growth of corn production, the pressure of high inventory is not small - Qi Zheng knows that within ten years, the national corn inventory will exceed 200 million tons, and the annual storage cost alone is as high as 50 billion yuan!

At this time, people of insight in China have begun to realize that the increasingly high corn inventory, like a blood clot in the main artery, hinders the link between the upstream and downstream industries of corn, damages the upstream hard-working farmers and seed enterprises, and cuts off the interaction between China's corn and downstream feed and industrial processing.

-- This has become a problem for the top designers of agricultural policy.

In the future, there will be a "supply-side structural reform", which will first be used in the corn industry, for this reason. But now, creating new needs is the first thing to consider.

Like the United States, the production of corn ethanol is encouraged. However, in China, where food security is great, corn ethanol is easy to compete with people and animal husbandry for grain, resulting in a tight food supply, and corn ethanol production cannot go far.

As a member of the national strategic reserve system, there is also a large consumer of corn - Jiagu agriculture and animal husbandry, Jiagu naturally entered the team of "sharing worries for the country".

"Converting surplus corn into high-quality meat, supplemented by the production of biomass energy and organic fertilizer, to form a closed industrial agglomeration, is certainly more promising than the production of corn ethanol. ”

With the rapid expansion of the scale of agriculture and animal husbandry in Jiagu, Qi Zheng has the confidence to say this.

Wang Yuye did not refute that according to the current development momentum of Jiagu agriculture and animal husbandry, it is only a matter of time before the demand for corn in Jiagu system exceeds 10 million tons, which is certainly a great benefit for digesting national stocks.

But his concern is: "Will this create a long-term surplus of pork in the country?"

Qi Zheng smiled: "What are you afraid of, isn't there still an international market?"

......