Wang Yuye deeply agreed with Qi Zheng's timely decision to adjust his overseas strategy.

After the dust settled on the merger and acquisition of Australian Sugar, he made a slight adjustment to the management of CSR Sugar, but the basic principle was that the original framework remained unchanged, and only some employees were sent from China to study and supervise, and then returned to China.

As a witness and leader of this overseas merger and acquisition, Wang Yuye has a lot of feelings.

"If we hadn't noticed the communication with local sugar farmers and found a different way to face the competition from Wilmar, even if we had done all the preparatory work, we would have lost. Speaking of this, Wang Yuye feels that it is very lucky to win - thanks to the special production system of the Australian sugar industry.

However, outsiders often only see the victory of Jiagu International's acquisition of Australian sugar, but do not appreciate the hardships and luck.

During this period, due to the impact of the food crisis and the incentive of Jiagu International's successful acquisition of Australian sugar, more and more domestic enterprises have shown strong interest in the development of overseas agricultural fields.

You don't need to know anything about it, you can know that many agricultural and animal husbandry companies, from large central enterprises to local governments, have begun to accelerate the "grabbing" of overseas agricultural resources.

However, in the eyes of Wang Yuye, he is not optimistic about this wave of "going overseas" acquisitions.

At the summary meeting of Australian sugar acquisition experience, Wang Yuye asked: "As an agricultural enterprise that is ready to invest overseas, what issues are usually most concerned about?"

"Is the land fertile and sunshine sufficient? Is the market mature, is the warehousing and logistics system complete, or is the local political environment and social stability stable?"

"There is no doubt that these are important reference indicators. But in addition, some non-traditional factors will more profoundly affect the pace of agricultural enterprises going global. ”

In the study of China's previous sporadic "going out" agricultural enterprises and cases of overseas agricultural investment in other countries, it can be found that the factors affecting overseas agricultural investment are only more bizarre, not the most bizarre.

It may be that because of the exchange rate changes at the time of settlement, the profit of a year has been wasted; there may be no suitable translator found, resulting in a mistake in the transmission of information, and the project is stranded; some areas have very good land resources, and the price is also very low, but after a few years of operation, it is found that a spare part of the tractor shipped is broken, and the parts cannot be found in the local area, the tractor is stopped, and the project has problems......

What is even more unexpected is that due to the good ecological environment of some agricultural projects, 1/3 of the food produced by the protected birds is eaten by protected birds......

There was a chuckle in the room.

But Wang Yuye didn't laugh, but said a little seriously: "Summing up our successful experience in the acquisition of Australian sugar, first, we have done a good enough job in the details, and second, because this acquisition does not involve economic control over the most basic elements of the country's land......"

Everyone in the audience became serious.

Wang Yuye said unhurriedly: "From our series of overseas practices, it can be seen that the idea of hoping to 'control' the market through land is absolutely outdated or even wrong, and the influence on the market is not obtained by this kind of 'control'." However, most of the companies that intend to go out now hold this single business thinking. ”

The restrictions on land transactions in large agricultural countries are enough to show that overseas farmland is sensitive to the purchase and sale of agricultural land, which is easy to arouse the resentment of the target countries; in terms of planting structure, grain crops are more sensitive than cash crops; and in grain countries, cereals are more sensitive than soybeans.

Looking back at Jiagu's overseas investment, because of Qi Zheng's intentional or unintentional regulation, he has done a very good job in this regard.

In the Russian Far East, the largest planting project, Jiagu and the Russian side only cooperate in operation, and do not involve the sale or sublease of farmland, and even the Russian partner has a controlling stake. Moreover, Jiagu grows soybeans, although it is planted with large machinery, but it is handed over to the Russian side in transportation and other links, so that everyone "has food".

Farms in the United States have completely bought land, but the area is not even a drop in the bucket compared to the land resources in the United States, and the pasture grass is planted according to the original planting pattern, which is not very sensitive.

In New Zealand, Jiagu Dairy has also cooperated with local institutions in New Zealand to build R&D centers and integrated dairy bases, and has reached a deep community of interests with New Zealand Dairy through scientific research activities......

I didn't want to know, but after thinking about it, I found that Jiagu had always been on the right path.

Qi Zheng knocked on the table and answered: "When the agriculture that goes out to try continues to hit a wall, it is estimated that we will be comprehensively examined." But we can't be satisfied, and we still have to constantly adjust our strategy according to the situation. ”

"After discussion, we decided that the following two ways will be adjusted for overseas investment in the future. ”

"One is the merger and acquisition of Australian sugar, which can participate in all aspects of warehousing, logistics, ports, agricultural product processing, etc., and grasp the overall merger and acquisition of seven inches of the grain trade market. ”

In the final analysis, it is not that Jiagu cannot buy land in Brazil, but in Brazil, the grain depots on both sides of the highway are all Cargill and Bunge, the railway leading to the port is controlled by Bunge, and the grain berths in the port are also leased by the four major international grain merchants - the key nodes of trade and logistics, such as ports, railways and warehouses, are controlled by others.

Qi Zheng saw that the high-level unanimously agreed, and then said: "If we can't merge and acquire as a whole, we don't need to be in a hurry. ”

"The second way of investment is to start with R&D support, start with small enterprises, start with a small part of equity, start from the establishment of branches, learn, adapt, familiarize with, and deeply cultivate foreign markets. ”

"There are not many opportunities to swallow in one bite, so start with the acquisition of 10% or 20% of the equity, first enter the other party's company and market network, and then slowly improve the right to speak and price. Don't ask for everything, but ask for a place, as long as there is me, and look for opportunities in the future. ”

Don't underestimate this 10% equity, which can play a big role at a critical time.

The best example is Mitsui in the island country.

Mitsui acquired a 15 percent stake in Brazil's Valepar, the parent company that controls Vale's iron ore resources.

It is this 15% stake that gives Mitsui the right to manipulate the price of iron ore to rise by 71.5% when Chinese companies negotiate with Vale for the acquisition of the iron ore business, making us bloody and making huge profits by the way.

This is the lesson of blood: as long as you participate in a small amount of shares, you can have the opportunity to enter the decision-making level of the company, and you can generate your own voice and pricing power.

Then gradually grow in the process of participating in the international market, learn advanced technology and management experience, build a global marketing network, enhance their own brand, and naturally have influence in the global market.

"This is our overseas detour strategy!"

Under Qi's sonorous decision, Jiagu International bought a 6% stake in Gavilon, the third-largest grain and energy trader in the United States, for US$150 million, and paid US$200 million for an 18% stake in Santelisa Group, Brazil's second-largest sugar and ethanol producer.

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