ADM's new president, Luciano, looked at the third-quarter revenue figures, and the wrinkles on his forehead could trap flies.

"You tell me, how do I explain this data to the board?"

In the office, senior vice president Luther rolled his eyelids: "Our judgment of the long-term trend of soybeans is accurate, and if it were not for some uncontrollable events, the group's performance this year is expected to be satisfactory......"

"But now it's just not satisfying. And, unlucky, you asked me to report to the board like this?" Luciano sneered twice.

"It's also a fact that bad luck is ......," the vice president muttered with his head down.

In fact, ADM's overall performance in the third quarter was not without bright spots, benefiting from the reduced crop production caused by the dry weather in the United States, and the increase in the price of corn and wheat increased.

But the soybean segment is lagging its feet.

In the case of soybeans, ADM's operating profit fell into a significant loss in the third quarter, with net profit plummeting 70% from a year earlier, even as gains in other commodities businesses were offset by gains.

Another senior vice president coughed lightly and said, "This year's situation is indeed a little special. Not only us, but also Bunge, Cargill, etc., have not been pleased, and I believe that the board of directors will also see this. ”

The others in the office nodded silently.

It's not that our army is too incompetent, but that the entire counterparts are caught off guard, and there is no mistake to talk about.

The continued drought in the U.S. will reduce soybean yields and push prices to new highs – the former ADM predicted correctly, but the latter has fallen a big way.

Who would have thought that China would have increased the supply of soybeans by tens of millions of tons "out of thin air", and the demand for international soybeans would be reduced, causing a chain reaction that made the four major grain merchants who made mistakes in judgment want to vomit blood.

The output has decreased, and the price of Yaya has fallen instead of rising, which is already miserable enough, and what is even worse is that they all play a long role in the futures market, and the price has fallen and caused a two-way loss.

Originally, after the price fell, the profit of the processing business will rise, and even if it does not turn the loss into a win, at least it can make up for the loss to the greatest extent.

But all this has become pale under the rapid progress of Chinese counterparts.

"What is the Chinese government's response to the anti-dumping investigation of soy protein?" Luciano twisted his chair and looked at his legal counsel.

The legal counsel sitting in the corner smiled professionally: "No. ”

"No reaction at all?"

"Except for a few major soybean protein processing companies as the main units responding to the lawsuit, the Chinese Ministry of Commerce simply issued a notice, and there was no more reaction. The legal counsel explained succinctly.

Luciano was silent for a moment, feeling even more depressed.

It's like you're preoccupying your opponent's moves, but your opponent just glances back with "childish" eyes, and it can instantly raise blood pressure.

Although ADM is one of the four major grain merchants, it is known for its deep processing of grain and oilseed raw materials into "downstream" processing of a wide range of products for use in the food, beverage, nutraceutical and livestock feed markets.

Plant-based proteins, for example, are areas in which ADM has allocated more capital in recent years. Soybean is the longest, deepest and highest value-added crop variety in the industrial chain, and the profit margin of soybean protein processing is greater than its trading business, which has always been ADM's dominant business.

However, with the increasing influence of Chinese counterparts in the global soy protein market, ADM has also been impacted.

As early as the beginning of the century, ADM foresaw that Chinese soy protein was the biggest competitor of the United States and would eventually affect the earnings of its American peers.

But no one could have predicted that this fear would come true in such a short time.

Three years ago, China's soybean protein continued to expand its export advantages to the United States, especially this year, the encroachment on the market share of the United States has become more obvious, and there is even a trend of anti-customer.

ADM's anti-dumping application is not only to put pressure on China's soybean industry, but also to curb China's soybean protein offensive through anti-dumping measures.

"What are the chances that the antidumping charges will be valid?" Luciano asked again.

The anti-dumping charges are only allegations, and if the anti-dumping duties are really to be increased, it is necessary to admit that the charges are established after the anti-dumping investigation.

"It's hard to say. Although China's exports of soybean protein to the United States have increased year by year, the price has been rising, and there is no problem of low-cost sales, so it is difficult to say that it is dumping against the US market. Of course, the most important thing is that our demands are not supported enough. "The legal counsel quietly passed the buck.

"How can we not get enough support? The Chinese are not only crowding out our market. Vice President Luther said indignantly.

"Don't forget, it's who is in charge of all the changes. The legal counsel replied succinctly.

"China Jiagu!" the voice of gritted teeth sounded.

"Oh, DuPont relies on Jiagu for 'high-energy factor milk', and wants to pretend to be dead; Bunge and Jiagu are fighting hotly in South America, from the development of super weed herbicides to the stake in the docks, they will not turn their faces at this time; Cargill is the most enthusiastic in introducing 'Jiadou 13', and it is impossible to really contribute even if it is waving the flag behind its back. Luciano said angrily and helplessly.

"What's more, even within our company, aren't there people who are against going toe-to-toe with Kaya?" Luciano looked at the rest of the room.

The room fell into awkward silence again.

This is also the situation faced by ADM.

While there are many conflicts of interest between Jiagu and their American counterparts, there are also many overlapping interests.

If nothing else, the superweed that has spread in the soybean fields of the eastern United States is inseparable from Jiagu.

Under the rat trap, it is really too difficult to work together to suppress Jiagu.

"As far as I know, although the China Soybean Industry Alliance is dominated by Jiagu, its direct investment is not much, can we buy or take a stake in other soybean processing companies?" said another vice president.

For a large company like them, competition is nothing more than acquisition, and it's not a new idea.

Luciano shook his head: "We have lost our best opportunity. ”

With Jiagu's systematic support for the entire soybean industry chain, China's soybean planting costs continue to decline, the management level and yield level continue to improve, and the soybean deep processing has also narrowed the distance with the international advanced level in terms of technology and product quality, from the original only 5% of the added value to more than 70% of the added value now, China's soybean protein industry has enough ability to feed back and drive the benign development of the entire soybean industry.

From Luciano's point of view, it is not difficult to see that even if the anti-dumping complaint is established, it can only slightly slow down the pace of China's counterparts.

Just like the manufacturing industry in the United States, is it because the Americans don't want to stay in their homeland? It's just that they can't do anything about it under the general trend.

His headache was how to explain to the old men on the board, and he couldn't say, "It's no longer a problem, let's wait for death."

But if even anti-dumping is not good, how should ADM's soy protein business be adjusted?

"If we can't buy a Chinese company, can we move the processing plant to China?" Luther, the vice president, suddenly suggested.

"Haven't we already built factories in China? So what? Someone retorted.

ADM has been operating in China for a long time, and has also started the layout of soybean protein production base. However, there is no doubt that ADM is excluded from the China Soybean Industry Alliance and does not enjoy the benefits of the revitalization of China's soybean industry.

Luthor hesitated for a moment and said, "I mean, move the high-end protein processing plant to China, and exchange high-end processing technology for a ticket to integrate into China's soybean industry chain." ”

President Luciano's eyelids jumped.

Although China's soybean deep processing industry is catching up in great strides, the United States, as a global soybean processing power, still has considerable accumulated advantages in high-end soybean protein products, such as food-grade and health-care soybean phospholipid products, as well as in the development and application of fine chemicals, medicine, health care, beauty and other fields.

Multinational companies like ADM invest in overseas factories and generally process primary products, while advanced deep processing technology will only remain in China.

So, some people subconsciously objected, "How can this be done? Isn't this a loss of our technological lead?"

Luciano stood up and looked around: "Yes, we still have a certain advantage in high-end products now. But, guys, think about it, how long can we keep the lead if we continue like this?"

No one answered, and the silence in the room was heartbreaking.

Silence is the answer in itself.

......