Chapter 612 - Caught by a Japanese Grain Merchant and Bullied (4000 Words)
Standing in front of the Bunge logistics layout map, we can clearly understand how powerful the four major grain merchants are.
Bunge has 900,000 trucks and more than 170,000 deliveries per year, as well as hundreds of terminals in ports on all continents.
Let's not talk about other places, just Brazil.
In the last decade, Brazil has been the country that has received the most investment from Bunge. The direction of investment is to expand soybean production, and the second is to invest in the infrastructure layout in the field of grain transportation.
Brazil has a total of 23 agricultural export ports, mainly in the south, southeast and northeast, among which Bunge has its own terminals in the ports in the south and southeast, where 78% of Brazil's agricultural exports are concentrated, and there are many transshipment berths in the transshipment nodes where Brazil's railways, roads and Amazon tributaries intersect......
How important are these logistics locations?
Let's put it this way, if the Bunge route is avoided entirely, agricultural products from the northern part of Brazil to the southeast coastal ports can only be transported by truck, and the freight costs are four times the cost of shipping from the southeast coastal ports to China.
You see, if you don't control the logistics, even if you enter the market by establishing direct purchasing relationships with farmers, the cost of shipping alone can make your goods less competitive.
Jiagu International's assets in Brazil include sugar processing plants, more than a dozen inland storage depots, and port facilities that are only a joint venture terminal at the port of Paranagua, which is a world of difference compared to Bunge.
After a long time, Qi Zheng secretly sighed, "It's still too late to join this world!"
Of course, Qi Zheng is eager to pocket Bunge's strong assets in Brazil, but Jiagu's current strength and influence are not enough to control this huge wealth.
Therefore, Qi Zheng can only covet the coveting from the bottom of his heart and choose the expansion strategy of small steps and fast walking.
A biological herbicide that can kill "super weeds" is a good card, and unlike other core technologies, Jiagu has a very clear attitude towards this biological herbicide, which is to exchange it for benefits.
Bunge was the first to take the bait. Of course, if Jiagu wants to use a biological herbicide lion to open his mouth and take a stake in all of Bunge's logistics facilities in Brazil, I am afraid that all he will get is hehe.
Qi Zheng's goal is simply to take a stake in Buge's newly opened port terminal in the port of Bacarena in northern Brazil.
Brazil currently exports most of its crops through southern ports such as Santos, resulting in frequent port congestion. In recent years, the government has increased investment in roads, opening up a route for the northern port.
Puerto Baccarena is located near the mouth of the Tocantins River, which runs north and south of Brazil and is connected to the Cerrado region, Brazil's main soybean producing region. Through the government's new route, soybeans are transported to the Tocantins River and transported to the seaport, where they are loaded onto large cargo ships for export, saving time and transportation costs compared to trucking by land, which is very expensive.
Almost all multinational grain conglomerates and local agricultural product operators in Brazil are actively investing in the infrastructure construction of Brazil to transport grain north and transport grain to sea through northern ports. As Brazil's head snake, Bunge rightfully occupies the C position, and now, Gagu wants to take a piece of it.
Of course, giants like Bunge have some self-esteem, or rather, they can be a little reserved. Some local agricultural producers in Brazil have little to worry about.
As Brazil's states enter the "soy-free period", the super weed amaranth vine is visible in the empty bean fields, and Brazil's soybean farmers are also using various means to eradicate this super weed. The most brutal even caused forest fires.
And after a number of research institutes have proven that Jiagu's biological herbicide is definitely the nemesis of super weeds, and it is non-toxic and harmless, and the most important thing is that no one can replicate the reagent, or rather, it can be replicated on a large scale and at low cost.
Grain producers, large and small, are no longer expecting new chemical herbicides. Not to mention the fact that new chemical herbicides require a lot of time to be fully tested and optimized, cost is also an issue to consider.
As the R&D time grows, companies may need to spend hundreds of millions of dollars on R&D before they are officially introduced to the market – and no company would risk such R&D expenses after the advent of the highly effective and relatively inexpensive Jiagu bio-herbicide.
What's more, while superweed is now more of a threat to soybean production, who knows if it will threaten more crops?
For a time, the visitors were like carp crossing the river.
Not every company that invests in Brazil is welcomed by Brazilians, and global investors want to be a part of Brazil's prosperity, and the pie is so big that everyone wants a piece of it. In the end, there are countless companies that fail to get a piece of the pie, and every year a number of foreign companies in Brazil fail.
But an investor like Gargo, who has both the key technologies that Brazil needs and a large market, is worth interacting with.
The invitations to various banquets and balls flew like snowflakes, which also allowed Qi Zheng to fully experience the "enthusiasm" of Brazil.
Brazil has the most beautiful beaches in the world, as well as one of the largest slums, and the slums are even a part of Brazil, of course, Qi Zheng will not enjoy this kind of "scenery".
There were daily shootouts in that place, and hundreds of people were killed every day in the whole of Brazil, and no one took it seriously at all, and Qi Zheng had no interest in trying "marksmanship" by himself.
Does it sound like the country is a mess?
Contrary. Judging from the luxurious places that Qi Zheng came into contact with, they were so luxurious that he thought he was in a developed country.
Brazil is a country that God obviously loves them very much, rich in resources, and basically free of challengers and competitors, so it naturally loses its enterprising spirit.
Persisted in industrialization for decades, and there was no use for eggs. The reason is not complicated, the people of this country have a temperament and would rather mix one day at a time, and the same product can be done in one working hour in China, but it will take one day in Brazil. The cost is too high for Brazilian products to be internationally uncompetitive.
Wood matter, you can also continue to sell rubber, iron ore, soybeans and other raw materials, anyway, "God bless Brazil".
But inevitably, this resource-based model has formed a "small amount of super-rich + the rest of the people are extremely poor" - some people are so rich that they are hungry, and the rest drink soup.
The people who enshrined Qi Zheng as a guest of honor were naturally the handful of people who were so rich in Brazil. They spend a lot of money, they offer mellow wines, beautiful women and ...... A handsome man who provides entertainment that only Qi Zheng can't think of without them is also awesome.
It wasn't until Zhong Huazhi, the head of Jiagu International, came from China that Qi Zheng agreed to discuss cooperation with several companies before he was liberated.
Qi Zheng rubbed his face and said with a wry smile: "Old Zhong, your boss and I have not lost our bodies, and my will is firm enough." ”
Zhong Huazhi, who knew how low the bottom line of Brazil's rich people could be, gloated.
To be honest, if it's for enjoyment, their arrangement is naturally very intimate, the so-called "rich people's happiness you can't even imagine", but if you want to take a strong share of the Brazilian territory, you have to be careful that the gentle country becomes a hero's grave.
Fortunately, for Qi Zheng's willpower, Jiagu executives like Zhong Huazhi are 100% confident.
After gossiping, Qi Zheng put aside all the distractions and asked, "How is the situation in China?"
"Most of Marubeni's domestic soybean orders have been cancelled, and the vacated market share has been filled by domestic soybeans. As a result, large soybean crushers such as Sinofco have asked us about the estimated price and production of domestic soybeans in order to cut soybean imports. Judging from the current progress, as long as domestic soybean production keeps up, it will not be a problem to increase the soybean self-sufficiency rate by 10% this year......," Zhong said.
"Except for the Japanese grain merchants, the four major grain merchants have no reaction?"
Zhong Huazhi smiled: "They can't take care of the country now." This year, the drought continues in the western United States, and the threat of super weeds in the east to soybean production has become apparently serious, and the reduction in soybean production in the United States has become a fact. Now Brazil is not a pure land, if the super weeds are not controlled, not to mention that we are only filling the market share of Japanese grain merchants for the time being, that is, the four major grain merchants will not be able to maintain their market share. ”
All of this is inseparable from Qi Zheng's figure, so he is calm.
At this time, it is reflected in the variables brought about by the rise of Jiagu.
During the soybean crisis many years ago, the situation in the domestic soybean crushing industry did not deteriorate further because Jiagu acquired a number of large oil companies.
So far, among the top ten soybean crushing enterprises in China, Jiagu Grain and Oil occupies the absolute top spot with a market share of 20%, followed by foreign-funded Yihai Kerry, and the third to sixth places are all Chinese enterprises - the soybean crushing volume of private enterprises led by Jiagu accounts for about 40% of the entire industry, state-owned enterprises account for about 30%, and foreign capital accounts for less than 30%, forming a three-legged market pattern of "private enterprises leading, large state-owned enterprises secondary, and foreign capital supplementing".
This would have been unimaginable in the original plane.
More than 60% of the large-scale oil enterprises in the original time and space are owned or controlled by multinational grain merchants. Their main purpose is not to sell soybeans themselves, but to promote soybeans - I am your shareholder, so when choosing a soybean supplier, it is only natural to choose the shareholder's soybean first.
But now, China's local capital is far ahead of multinational grain merchants in terms of production capacity, and correspondingly, it has the right to choose the soybean purchase channel - say that if you change your imported soybeans, you can do it.
This is where Marubeni loses, and its control over the channels of Chinese soybean processors is almost nil. If it's not the first to go out, who will be the first to go out?
The biggest difference between the domestic soybean industry and the original time and space is also because of Jiagu.
In the domestic soybean industry, Jiagu has become a strong leading enterprise.
A snake can't be headless.
In the iron ore negotiations, Baosteel can negotiate on behalf of Chinese steel companies. But before Jiagu, there was no company in the soybean industry that could take the lead.
Big brother is not so easy to be, you must have the courage to take risks, but also have the strength to take risks.
Soybean processing is perhaps the most divergent industry, with fierce competition among companies at a time when margins on edible oil production and sales are already in the single digits. Therefore, the benefits of solidarity and alliance may be shared by everyone, but who is willing to bear the risks?
It was Kaya who undertook it.
Think about it, if this year's domestic soybeans suffer natural and man-made disasters and fail to meet the expected output and costs, Jiagu, which dominates the domestic soybean revitalization plan, including the plan to replace imported soybeans, will be miserable.
Jiagu took such a risk, and naturally became the industry big brother that everyone expected.
And the big brother of this industry is no longer limited to the right to speak in China, but also to strive for the right to speak in the world.
"Domestic soybeans have 'Jiadou No. 13', when the high yield potential is fully released, it is bound to replace a considerable part of imported soybeans, coupled with super weeds rampant in the Americas, the international soybean industry will enter a turbulent period, this is our opportunity. Qi Zheng arranged for Zhong Huazhi: "The power of the four major grain merchants is deep-rooted and must be infiltrated slowly, but the Japanese grain merchants are still very easy to bully......
Zhong Huazhi couldn't help laughing: "We caught the Japanese grain merchants and bullied them, right?"
Qi Zheng shrugged, it goes without saying.
As Qi Zheng said, in South America, Japanese grain merchants are really the weakest side.
In Brazil, for example, the cultivation of agricultural products has become highly systematic. How to "systematize"? That is, agricultural product operators mainly adopt the contract farming model to control the raw materials of agricultural products.
Needless to say, the Big Four have long-term contractual relationships with local growers, and they have well-developed logistics facilities, and they control 70-80% of Brazil's soybean production.
Needless to say, as long as the super weeds are not eradicated for a day, Jiagu with biological herbicides in hand is destined to be irreplaceable.
Only Japanese grain traders have either controlled farmers by lending money to Brazilian farmers, or have attracted farmers to buy soybeans at higher prices than the big four grain producers, competing with the emerging grain merchants for the 20%-30% share of soybeans.
As for the local grain merchants in Brazil, oh, no one will see them as competitors.
Zhong Huazhi comprehended.
Next, he led the team to carry out specific negotiations with the companies that Qi Zheng had contacted.
Among the four major grain merchants, Bunge did not have much opinion on Jiagu's stake in the newly opened port terminal of Bacarena, and he wanted to talk about the specific issue of shares, while the Japanese grain merchants were miserable.
After obtaining a commercial license, it will give priority to the supply of biological herbicides against super weeds as bait, and Jiagu International has successively invested in GCB, AMAGG, and SLC, which are well-known Brazilian grain production and sales companies......
The stake is not much, ranging from 10% to 15%, and it looks like "mixed sand".
But the Japanese grain merchants were disgusted.
Mitsubishi Corporation, which has acquired a 20 percent stake in GCB, is preparing to increase its stake in GCB and turn it into its subsidiary; Marubeni Corporation, which has signed a cooperation agreement with AMAGG, is seeking to enter into a sole option agreement; and Mitsui Corporation, which is negotiating with SLC to establish a joint venture to grow soybeans...... Now it is so "mixed with sand" by Jiagu, it's not that taste.
What's even more disgusting is that they can only hold back if they are not convinced - the farms developed by Japanese grain merchants in Brazil have been hammered to be the source of the outbreak of super weeds in Brazil, and they are the first grain merchants to want to obtain herbicides resistant to super weeds.
Zhong Huazhi's reply was - wait, I don't have time to pay attention to you now!
Baga, you don't have time? You specifically caught me and bullied me and called me unavailable?
......