Chapter 603 - The International Soybean Alliance (2/2)
"Why do I think the attitude of the Chinese is strange?" said Silva, executive director of the Brazilian Soybean Growers Association, with a slight frown after returning to the hotel.
"Yes? I feel that way, how can I say it? I just have a feeling of watching a good show. Zubizarretta, president of the Argentine Soybean Industry Association, agreed.
As soon as the words fell, the two glanced at each other, and a few electric sparks seemed to be in the air.
They are all members of the International Soybean Growers Alliance, and they came to China to communicate with the Chinese Ministry of Agriculture and try to get the Chinese agricultural authorities to speed up the process of approving regulations on imported GMOs.
The International Soybean Growers Alliance is composed of representatives of soybean growers and industry associations from the United States, Brazil, Argentina, Paraguay, Uruguay and other countries, representing the interests of the soybean industry in soybean exporting countries such as the United States, Brazil and Argentina.
However, the interests of countries are not exactly the same.
Brazil and Argentina, for example, are at odds over soybean exports.
Argentina began to build soybean crushing plants as early as the 60s of the last century, which were all state-owned at that time, and now they are all privatized, and there is a serious overcapacity. This year, the soybeans produced in Argentina as a whole will only meet 60% of the needs even if they are all left for oil extraction, which is why Argentina wants China to import more soybean oil and soybean meal and less soybean raw beans.
Brazil, on the other hand, has only a handful of oil mills, so Brazil is strongly supportive of the export of raw beans.
Of course, their interests are the same when it comes to pushing China to speed up the approval of genetically modified varieties.
North and South America, as important soybean producing areas, can meet 100% of China's soybean import needs. "Whoever wins China wins the world", and all the countries present here will not have the idea of stopping exports to China.
"But it's clear that the Chinese are not motivated. As far as the Chinese officials I spoke to, their attitude was rather vague. Brazil's Silva pouted and spoke out the results of his lobbying.
"On my side, the Chinese have a very tough attitude towards the approval of genetically modified soybeans on the market, not to mention shortening the approval cycle, and some people also faintly revealed the meaning of extending the approval cycle." Zubizarreta sighed.
"Damn the protection of interests!" the two squirted in unison.
Multinational companies are moving fast in the research and development of genetically modified products and commercial planting, and new products can be quickly approved and commercialized in the United States, South America and other places, for example, so far, the United States has approved 13 genetically modified soybean varieties to be commercially planted, which are owned by Monsanto, Bayer and DuPont Pioneer.
But among these 13 varieties, China has only approved 3 genetically modified soybeans for import.
It's embarrassing — China is the world's leading importer of genetically modified soybeans, and the decisions they make will affect not only the price of Chicago soybeans, but also what farmers in the United States and other countries plant. Farmers should not plant varieties that have not been approved for import licenses in China, or should they not be planted?
As a result, the research and development companies of genetically modified varieties are also facing considerable risks and losses.
"It's probably not that simple. Miller, director of the U.S. Soybean Export Council, who has remained silent, said in a deep voice, "I got news that the Chinese are said to intend to reduce their share of imports by encouraging their domestic soybean production." ”
When Silva heard this, she smiled dumbly and said, "The Chinese are really joking." ”
Zubizarreta also smiled: "I can understand their feelings about protecting the domestic soybean industry, but it is really a good joke." ”
The Chinese government has been consciously protecting the country's natural soybean economy, and they know it.
For example, the domestic production of genetically modified soybeans is banned.
This has created a very different situation from their country, which has been completely encroached upon by the genetically modified soybeans of the American company Monsanto in just a decade, and its planting area has reached more than 90% of all soybeans like the United States, while the natural soybean planting area in China has basically remained the same as before.
Of course, this is not the key to the unspeakable competitiveness of Chinese soybeans.
Soybean production is an agricultural production that occupies a relatively large amount of land and uses a relatively small amount of labor, and its output value per unit area is low. Its value per unit area is much lower than that of high-value agricultural products, such as greenhouse vegetable, fruit and meat fish farming.
Obviously, in China, where there are many people and little land, it is an inevitable trend that the agricultural structure is increasingly shifting to high-value agricultural products, which is also the basic economic reason why China's agriculture is increasingly dependent on imported soybeans and grains.
For the agriculture of North and South America, the endowment of small land allows them to easily set aside large areas to grow soybeans, and the genetically modified soybeans that save the labor cost of weeding can make their soybean production relatively cheap, and the favorable weather for soybean growth and the increasing yield level give them a hundred reasons to be proud of Chinese soybeans.
Even in the Russian Far East, where a foreign army has sprung up, they are not too worried. Quite simply, there is not much land suitable for growing soybeans in the Russian Far East, and it is also not allowed to plant genetically modified soybeans.
China's domestic demand for protein is still on the rise, but it would be nice if China's domestic acreage can be maintained at the current scale, where is the potential to meet the new domestic demand?
"Unless, the Chinese can make soybean production skyrocket." Zubizarreta laughed.
Miller's face tensed.
Zubizarretta's laughter came to an abrupt end.
Silva also seemed to realize something, and her face changed: "No, you mean ......"
Miller looked like a toothache: "The news I received is that the Chinese have cultivated a soybean high-yielding variety. ”
"How prolific?"
"It is said to be more than 6 tons per hectare!"
"Non-GMO?"
Miller replied with a "aren't you talking nonsense" look.
"It can't be!" Silva blurted out.
"So, is this another joke?" said Zubizarretta, who was also calm.
To date, genetically modified soybeans have not been able to achieve higher yields per unit area than natural soybeans. In other words, there is an upper limit on the world's soybean production, which fluctuates around 3 tons per hectare.
The difference of several hundred kilograms per hectare, although it also has a certain impact on the cost, is not a huge difference. But, doubling production?
Probably only "hehe" can express the mood of the two.
But Miller still didn't laugh.
If the "high-yielding variety" in the news was not associated with Jiagu, he might have thought the same thing, and even easily shelved the matter.
After all, as the homeland of soybeans, China has a wide variety of soybeans, and the level of intensive cultivation of Chinese is also high, and it is not impossible to double soybean production in a small area trial.
But that's Jiagu Company!
A large grain merchant that independently meets 30% of China's soybean demand, a local grain merchant who has let the big four grain merchants control China's soybean industry fail, an emerging large grain merchant that has begun to make a name for itself in the world, and an international grain merchant with unlimited possibilities......
Combined with the strange attitude of the Chinese, Miller became more and more afraid to relax.
There are too many variables for high-yielding soybean varieties of more than 6 tons per hectare. If it is true, it may reshape the global soybean production pattern, no, not possible, it is certain!
Zubizarreta and Silva looked at each other again when they saw Miller's heavy expression.
"Are you serious?"
"It's just an exaggerated rumor, isn't it?"
Miller shook his head: "Guys, I hope it's a joke too. But...... Let's investigate in detail, China's Jiagu is not a simple enterprise. ”
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