Chapter 472: That's Imported Sunshine, Land, and Water (1/2)
In the eyes of American counterparts, the operation of the American branch of Jiagu is very confusing.
While it's unclear how profitable its organic food business is, it's certain that it's profitable β nonsense, if it's not profitable, how can its organic farms be blooming everywhere?
But while the organic food market is getting hotter, it has not touched the downstream retail market, but has plunged headlong into the forage production and processing industry.
Could it be that growing grass is more promising and more profitable?
"I haven't earned a penny yet, but it's true that I keep posting money. On the way to Washington State, Lu Zhiwei laughed.
That's how wonderful things are. The two leading businesses of Jiagu America, organic food production, make a lot of money, but forage production is a big hole on paper.
However, what Qi Zheng or Jiagu pay more attention to is the continuous loss-making forage production business in the United States.
"This is just right, there are gains and losses, at least a balance has been reached on the books. Otherwise, the more we earn on American soil, the more taxes we pay to the U.S. government. Qi Zheng showed a subtle smile, "What's more, who can say for sure whether it is a loss-making business or not?"
In fact, Jiagu's organic food business in the United States is supported by an important part of the upgrading of the domestic dairy industry.
ββAfter the poisoned milk incident, domestic dairy enterprises urgently need high-quality feed to improve the quality of dairy products and rebuild their reputation, and the demand for alfalfa grass has increased significantly. Jiagu went to the United States to plant alfalfa grass on a large scale and sell it back to China, which not only made up for the forage feed gap in its own pasture, but also became an important supplier of high-quality forage for large enterprises such as Yili and Sanyuan to feed top dairy cows.
Buying or taking a stake in a forage farm in the United States and monopolizing the export of forage to China -- the biggest trick is freight subsidies. In other words, the same quotation of Jiagu American Branch also includes the shipping cost...... This is naturally unfavorable to occupy the market, but it is all supported by the huge profits of the organic food business.
"Quietly, we almost single-handedly doubled the size of U.S. forage exports. Lu Zhiwei reported: "Alfalfa has long ranked fourth among field crops in the United States in terms of harvested area and output value, and is the cornerstone of supporting the development of its livestock industry. But historically, 95 percent of U.S. alfalfa has been used domestically and only 5 percent has been exported. β
"But when we got in, the U.S. increased the proportion of exports to 10 percent by adding high-quality alfalfa plantings. β
Speaking of this, Lu Zhiwei also had a subtle expression: "The most important thing is that the United States is also happy to see this." I wish we could export more forage to the country, so that at least it would reduce their trade deficit......"
Qi Zheng laughed: "As they wish, as we wish, win-win!"
Lu Zhiwei smiled, win-win? Who wins, who knows.
The ultimate goal of development is nothing more than raising living standards, which are supported by the consumption of resources.
No matter how much money you make in the United States, if you don't spend it, it's just a piece of green paper, what's the point?
The honey operation of Jiagu's American branch is essentially to use the resources of the United States to earn money from the Americans, and then use it to buy American resources and send them back to China - except for the unknown "value-added props" of the Spirit Array, Jiagu does not have to pay any price. After all, even the start-up capital was obtained by someone from the United States.
Seeing that the convoy had entered Washington State, Qi Zheng squinted slightly and said, "Old Lu, the group's requirements for the American branch are the same as always. We don't ask for much profit, don't be afraid to spend money, it's only right to exchange green paper back for physical goods. β
Lu Zhiwei nodded, it's not easy to make money, it's not easy to "spend money by order"?
For example, this trip is here for the sake of money.
"If we can successfully acquire Anderson on this trip, we will even be able to influence the price of US forage exports to a certain extent. And Anderson couldn't say no to our offer. "Lu Zhiwei has a lot of confidence.
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Anderson was previously the largest exporter of alfalfa grass and terrace hay products in the United States, and its main export markets were Japan, South Korea and the Middle East.
As an international forage export company, it is important to establish long-term relationships with growers in order to guarantee the best product quality and consistent supply.
But the long-term cooperative relationship cannot withstand the erosion of capital power.
Because the U.S. branch of Jiagu seems to be "stupid and has a lot of money", and the demand for alfalfa grass is large and stable, it has attracted many alfalfa grass growers in the United States to come to the door and ask to become Jiagu's suppliers.
But as a result, Anderson's continued supply has been greatly affected, so much so that Anderson is facing a loss in a stable and rising forage price.
And Qi Zheng also knew why Lu Zhiwei was so confident in winning Anderson - he made a 100% premium purchase offer.
He explained to Qi Zheng: "Anderson's company is still quite expected. They have the most experience in the entire forage supply chain management and have state-of-the-art processing equipment, including a new compression unit, that can provide customers with all types of packaging from small half-cut bales to large enveloped bales. β
"Of course, what I value more is the sales channels in Japan and South Korea owned by Anderson......"
Japan and South Korea are both major importers of forage. The amount of alfalfa grass determines how many cattle to raise, which is more applicable in Japan and South Korea, where land resources are more scarce.
However, in terms of the export of alfalfa grass products, Japan and South Korea have set up certain trade barriers, such as technical trade barriers for fumigation and heat treatment of grass products, as well as trade barriers for the health and safety of grass products. Anderson is the best channel for Jiagu's forage business to enter the Japanese and Korean markets.
Sitting on the world's largest forage production area, as a man who aspires to become the "forage king", Lu Zhiwei will naturally not let go of these two major demand markets - of course, there is no freight "subsidy" for the Japanese and South Korean markets.
After Qi Zheng listened, he nodded in approval of his operation.
And the result was not what Lu Zhiwei expected.
Will they continue to stumble under the run on Jiagu, or will they make a big profit while the vitality is still alive? The shareholders of Anderson Company are obviously not hard-hearted, and they have been succumbed to capital.
After vigorously taking over Anderson, Jiagu not only accounted for 13% of the alfalfa grass imports from Japan and South Korea, but also had a more complete forage processing technology system of Anderson.
"We are now ready to provide whatever kind of grass our customers want, and we can meet the type of product they want, whether it is alfalfa hay, grass blocks or alfalfa pellets. Alfalfa granules, in particular, also have a strong demand in the pig market, and are expected to become an emerging market in the future......" After the forage production and processing business was successfully strengthened, Lu Zhiwei said excitedly.
According to the development plan of the dairy industry in the future, whether it is from the perspective of the current comprehensive promotion of high-yield dairy cow breeds in Jiagu, or from the perspective of the domestic alfalfa industry planning, the medium and long-term gap of domestic high-quality alfalfa will continue to exist.
Watch as workers harvest and bundle the fresh grass, shape it at the processing plant and put it into containers, and haul it to the port for overseas export......
Is that grass? No, that's sunshine and earth and water, that's meat and milk!
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