Chapter 563: The Shadow of the Great Drought in the United States (1/2)
As we enter 2012, the two great powers on both sides of the Pacific Ocean are facing very different situations.
Under the protection of an alternative "four horizontal and two vertical" water conservancy system established by a certain kind of forced construction, China has kept the wind and rain in harmony as it wishes, but on the other side of the ocean, the United States presents a different scene: the sun is scorching, the land is dry, the riverbed is cracking, the fish are dead everywhere, the grass is withered and yellow, and the crops are dying of thirst......
March is supposed to be the season of recovery, but for farmers in the Midwest, it is like a death knell. Traditionally, the rainy season begins from November to March. And over the past few months, most of the Midwestern states have seen no signs of wetness, even during what should have been rainy. By all indications, the United States is experiencing the worst drought in history.
In the past few years, while China has suffered major disasters and minor disasters, Americans have been watching the excitement in the midst of calm and calm, but this year, the situation is reversed.
The so-called same earth, who is spared by the sky.
For Jiagu, because Qi Zheng was more impressed by the great drought in the United States, he had actually prepared for it.
The drought began a drought in the United States, which continued in the years that followed, especially in the Midwest.
As the world's largest grain producer, the United States is bound to bring shocks to the global food system. For this reason, Jiagu's financial department has been bullish on grain commodity futures, and Jiagu USA is also prepared for drought.
However, no one expected that this drought would hit the Jiagu system in another form.
"Tell me the current situation!" Qi Zheng returned to the headquarters with a team of Saudis who still wanted to purchase more Jiagu products, handed them over to the public relations department for reception, and hurriedly held a meeting.
In the video, Lu Zhiwei, the head of Jiagu America's branch, looked serious: "...... The devastating drought, which began to show signs last year, is even worse than expected. Especially in California, where reservoirs of all sizes are severely insufficient, agricultural production is being put to the test. We were prepared for the drought, but now we are the target of the outrage......"
At a time when the agricultural regions of the Midwest were facing a rare drought and farmers had to choose which crops to irrigate and which to let them wither, the American branch of Jiagu planted pasture grass "exclusively for export to China", which caused great controversy in the local area, driven by well-intentioned people.
According to the California media, "the drought has left local pastures unable to provide sufficient feed, and dairy and beef cattle farmers have had to buy hay feed to feed them, but many farmers have become unable to afford them due to higher prices." Many farmers are selling their livestock, and people in the city are being told to conserve water. Jiagu is exporting a large amount of water-intensive alfalfa grass to China, which is equivalent to 'exporting drought' to us......"
Lu Zhiwei reported on the grim situation faced by the US branch: "Nevada and Utah have asked us to adjust the proportion of forage exports and give priority to the needs of local animal husbandry, otherwise the water ......supply to some pasture farms will be stopped."
"In Washington state, for example, a senator has proposed an increase in taxes on forage exports as a surcharge on water consumption in such severe droughts......"
The alfalfa grown in the United States is concentrated in the Midwestern states, which happen to be the most severe areas of the drought, and production has been affected to a certain extent, and now it is still being targeted, and the situation is even more unoptimistic.
"This kind of targeting is not just because of the drought, right?" Wang Yuye frowned.
Although according to data provided by the U.S. Department of Agriculture's Drought Monitoring Center, many pastures in the hardest-hit Midwest, where many farms are short of water and grass, are now at a difficult crossroads: should they sell all their cattle and then come back when the drought passes?
But if Jiagu's forage planting base in the United States can effectively turn the tide, then it is too much to look up to Jiagu.
Judging by the data, the annual production of alfalfa hay in the United States is about 55 million tons. Last year, the United States exported about 3.5 million tons of alfalfa hay, accounting for only 6 percent of the total output, of which the Jiagu branch exported 1.5 million tons, with an export value of only 500 million US dollars, and the amount of alfalfa exported accounted for only 6 percent of the total output value of alfalfa hay in the United States. It can be said that for the sake of such a small share, it is too trivial to make a big fuss about the American branch of Jiagu, right?
Lu Zhiwei in the video nodded, and said with a tense face: "The drought is just the fuse, and I think there is another reason, that is, the quality of the forage we produce is too outstanding!"
Many pastures in China identify the quality of alfalfa according to the color of alfalfa hay, because humans are visual animals, and in most cases use their eyes to distinguish things, and green alfalfa hay looks higher than yellow quality.
But cattle are colorblind, and they generally use their noses to distinguish between good and bad food. It doesn't matter if it's yellow or green, they will only be interested in high-quality, high-sugar hay.
Therefore, the classification of hay in the United States mainly refers to RFV, crude protein, dry matter, etc., and is divided into special grade, grade 1 to grade 4.
There is no doubt that the alfalfa hay produced by the American forage planting base in Jiagu is all in the ranks of "special grade" without exception, and even among the "special grade", it is quite prominent.
For example, RFV, or Relative Feeding Value, is the only widely used roughage quality rating index in the United States. The higher the RFV, the better the quality of the forage. In the case of alfalfa, a hay with an RFV of 150 is about $50 per ton higher than a salfalfa hay at the peak of its flowering season (RFV of 100).
The alfalfa hay produced by Jiagu Branch has an average RFV of more than 200. How can this not be covetous?
The United States produces more than 50 million tons of alfalfa hay, but the number of them that has reached the "premium" level is actually even less than expected.
"Last year, there were a lot of ranchers in the U.S. who wanted to buy our pasture, but I turned them down. Now, judging from the targets we have encountered, it is difficult to say that there is no help from them. Lu Zhiwei explained.
Qi Zheng pouted slightly.
In fact, what if alfalfa from the United States is "premium"? The alfalfa that has been "evolved" by Kagaku is 30% higher than the best quality forage grass in the United States.
Qi Zheng was originally still considering whether to introduce American base planting, but now he ...... Come on, think about a fart!
"However, I don't think it's the main reason for either the drought or the outstanding quality of the pasture, and it should be that there are forces that are specifically targeting Kagu. We're not just targeting the forage business!" Lu Zhiwei said with a heavy expression.
Qi Zheng said that he was not afraid of itching when there were more lice, and said lightly: "Say, what other moths are there?"
......