In the eyes of the outside world, China has alleviated the drought in southwest China through large-scale "artificial rainfall".

Of course, to some extent, they are right - after all, someone's "cross-sea rain transfer" can also be regarded as artificial rain enhancement!

Of course, Southeast Asia's "difficult brothers" also want to learn from them, but on the one hand, they have not mastered the relevant technology, and on the other hand, they ...... They also lacked a hanger.

Someone hasn't fallen into the well, it's already calculated, take the initiative to help? Who are you?

As a result, the drought will continue to be dry, and the water will be scarce or the water will be scarce, and the yield will not be reduced......

In this era of global integration, drought has led to a wide range of reduced production of grains, fruits, palm oil, sugarcane and other cash crops, and the impact will be transmitted to the relevant industrial chain, which means that there are opportunities for some related companies.

"Thailand, the world's second-largest sugar exporter, has not seen a single rain since November last year, and nearly seventy percent of its provinces have been affected by drought, which has had a serious impact on sugarcane production, which is expected to fall sharply 201011 the season. After Zhong Huazhi of Jiagu International immersed himself in integrating the sugar factory he acquired in Brazil, he looked back and said, heh, luck has come.

"Affected by the El Niño phenomenon, India, a major sugar producer, has also shown signs of drought, and sugar production is expected to be revised downward. We believe that this year the global sugar market will have the first supply shortage in nearly a decade, and international sugar prices will inevitably rise......" Zhong Huazhi said happily.

Although it is not to gloat, the drought in Southeast Asia and even South Asia has indeed brought great benefits to the Jiagu sugar industry.

Is there anything more wonderful than just becoming one of the top three in the world's sugar industry through mergers and acquisitions and then hitting a sugar bull market head-on?

Yes!

Zhong Huazhi said with a smile: "Because of the early deployment, our sugar mills in Australia and Brazil have maintained high inventory levels, and judging from the current sugar price trend, the increase is far from the end......

Qi Zheng and Wang Yuye, who listened to the report, also laughed.

As a qualified international "profiteer", in this case, of course, it is necessary to cover the inventory.

This is not the only practice, the world's top sugar giants, all tacitly maintain the same action, it can be said that it is a disguised push up of international sugar prices - high sugar prices are in everyone's best interests.

"However, this is not a good thing for the domestic sugar shortage. Wang Yuye said with a conscience.

"Well, that's right. Zhong Huazhi also restrained his smile and agreed.

To be honest, although the drought in the southwest has been alleviated to a large extent, the crop yield in the drought area is certainly not as good as in a normal year, and Gui Province, which has the largest sugarcane planting area in China, is no exception.

This will inevitably widen the domestic sugar gap, which in turn will push up domestic sugar prices.

Gloomily, Jiagu Sugar, as one of the world's sugar giants, is powerless to do anything about it.

It is also quite interesting to say that Jiagu Sugar, as a "pure" Chinese-funded enterprise, has all its production capacity abroad.

In terms of production capacity, Jiagu Sugar is undoubtedly the largest sugar company in China, but it does not have a production base in China.

However, this is expected to change.

"Lao Zhong, Guizhou Province intends to take advantage of the current turmoil in the industry of sugarcane production reduction to accelerate the elimination of excess sugar production capacity in the province and integrate processing capacity. Jiagu also received an invitation, what do you think about this?" Qi Zheng asked Zhong Huazhi.

Gui Province is the largest sugar cane and sugar production base in China, and the total scale has occupied more than 60% of the country for many years. It can be said that for domestic sugar enterprises, Gui Province is a battleground.

Zhong Huazhi did not answer directly, but calculated carefully.

Jiagu Sugar directly entered the sugar industry from abroad, and there are rare factors in the opportunity, but it is also because China's sugar industry is a relatively special industry.

As an important strategic material related to the national economy and people's livelihood, sugar is an indispensable means of livelihood for people, and is also an important raw material and auxiliary agent required for pharmaceutical, food processing, beverage manufacturing, various light chemicals, and even the nuclear industry, and its upstream and downstream industries involve more than 120 categories of national economic production.

However, similar to soybeans, a practical dilemma faced by the development of the domestic sugar industry is that due to the limitation of the growth characteristics of sugar crops, the land suitable for planting sugar in China is limited, and the impact of other high-efficiency cash crops makes the actual growth space of sugar planting area very limited.

This has led to the presence of sugar factories in various raw material producing areas, or the local government itself has set up sugar factories. Therefore, Jiagu's path to enter the domestic sugar industry through a new sugar factory is not feasible, and the only option left is mergers and acquisitions.

And a paper document in 02 doomed the merger and acquisition of the sugar industry to be not purely a commercial act.

The "Interim Measures for the Management of Sugar" issued by the four national ministries and commissions stipulate that the local government is the leading party in formulating rules and benefit distribution mechanisms in this industry, from the layout planning and policy guarantee of sugarcane areas, to the promotion of science and technology and the promotion of improved varieties, and all links of the sugar planting industry chain are all shadowed by the government.

In a sense, if a sugar company wants to acquire a local sugar mill or buy sugar in the area, the local government is actually negotiating with the local government.

In the past, Jiagu could not find a good opportunity in China, so he could only start from abroad. However, after entering the ranks of international sugar production giants through two mergers and acquisitions, Jiagu's status in the rivers and lakes has been completely different.

- Now it's an opportunity to come to your door.

Affected by the drought, sugarcane production has been reduced, and sugar prices have been rising this year.

The high sugar price is good for sugarcane processing companies as a whole. But for some sugar companies, this is not necessarily a good thing.

Sugarcane raw materials are the life of sugar companies!

Some sugar companies have an unreasonable layout, which is already in a state of "not having enough to eat", and now the further reduction of sugarcane production is simply a death - even the supply of raw materials cannot be guaranteed, what is the point of rising sugar prices?

What the government wants to integrate is this excess capacity.

Moreover, the government tends to introduce large enterprises such as Jiagu, hoping to take advantage of Jiagu's agricultural advantages to adjust the structure of the sugar industry, expand the cake of the local sugar industry, and increase GDP and tax revenue.

After slowly figuring out his thoughts, Zhong Huazhi said: "Jiagu Sugar has been merging Australia's largest sugar company for more than a year, whether it is the training of employees or the absorption of advanced experience, it means that Jiagu Sugar has initially had the ability to integrate the domestic sugar industry. ”

The Australian sugar industry is recognized by the world as one of the most cutting-edge and sustainable industries, and Jiagu Sugar, which accounts for nearly half of Australia's sugar production capacity, occupies the commanding heights in the integration and upgrading of the domestic sugar industry.

"In the long run, the domestic sugar gap will widen. Just as the central government proposed that 'Chinese should firmly hold the rice bowl in their own hands', China must also ensure its own sugar safety. This is an opportunity for Jiagu Sugar, and I think it's time to enter the domestic sugar industry!"

......