How to deal with the impact of Jiagu Sugar?

This is not only a question for sugar enterprises in Guizhou Province to ponder, but also a puzzle for the national sugar industry.

If you can't beat it, just join?

Honestly, no sugar company has considered doing this, especially this year.

- It's a bull market in the sugar industry right now! It means that everyone has money to make!

What's more, after the integration of the last five years, the strength and experience of the remaining sugar enterprises in the industry have been significantly improved. If it is not exhausted, no one will consider giving in to Jiagu Sugar.

However, competition is competition, and cooperation is not impossible to talk about.

Many sugar enterprises in Guizhou Province know that the comprehensive utilization chain of sugarcane resources of Jiagu Sugar Industry has begun to take shape. And among them, the demand for bagasse is unlimited.

At present, except for a few large sugar enterprises in Guizhou Province that can use their own surplus bagasse to make pulp and paper to ensure that enterprises can "not shine in the east and bright in the west", the average utilization rate of bagasse in other sugar enterprises is less than 20%.

To put it bluntly, not everyone has the capital and technical ability to build a circular economy industrial chain for sugar production, and most of the bagasse is treated extensively. In this case, it is better to sell it to Jiagu Sugar and make an extra profit.

Jiagu Sugar Industry is naturally not refusing to come, outsiders do not know, Jiagu has estimated that the comprehensive utilization of bagasse, the output value accounts for more than 70% of the whole plant. In other words, Jiagu Sugar's sugar business, as an agricultural product processing industry, has truly gotten rid of the traditional fragile characteristics, even if the whole industry loses, its performance will not be greatly affected.

In addition, Jiagu Sugar can also use this to establish contact with these sugar companies and prepare for future industry mergers and acquisitions.

Of course, not all of them are so short-sighted.

Those sugar companies that aspire to become the leader of China's sugar industry refuse this "slow death", and under the stimulation of Jiagu Sugar, they have opened their own layouts.

"It seems that our 'catfish' is doing well!" After retracting the feedback from his peers, Zhong Huazhi was quite proud.

After Jiagu Sugar entered the domestic market, it produced a "catfish effect" as desired, which really stimulated some enterprises in the same industry to become active and actively participate in the competition.

In this way, it is clear who the real competitors are.

"Standing on the million-ton platform waiting for us is Nantang Group, which is currently the leading sugar industry in China, and has also established a relatively complete circular economy industry model. I have received accurate information that Nantang Group is seeking to go public, and perhaps in the near future, it will have more capital to consolidate its leading position in the industry. Zhong Huazhi first paid attention to the actions of the industry leaders.

Qi Zheng thoughtfully: "No matter what way a company chooses to expand, it is inseparable from financial support. I estimate that the proposed listing of Nantang Group indicates that more sugar giants will enter the capital market for financing, and the competition in the domestic sugar industry with capital support will be more intense. ”

Zhong Huazhi nodded in agreement and continued: "On the other hand, Guoliang Tunhe will not only continue to seek acquisition targets, but will also fully take over the sugar import and export business and related assets of COFCO Group, and intends to establish a large sugar business territory spanning domestic and international sugar production and deep processing of imported raw sugar......

Qi Zheng pouted, and the advantages of state-owned enterprises were vividly reflected at this time.

Guoliang Group is the largest sugar import and trade enterprise in China, once Guoliang Tunhe fully takes over the sugar import and export business of Guoliang Group, it will become the largest sugar trader in China, and its import and export channel advantages will be more conducive to its further layout of overseas markets.

This natural advantage is incomparable to Jiagu at present - the domestic and foreign business sectors of Jiagu Sugar are still separated!

"Not to be outdone, with the help of Bright Group's advantages in food processing, it will gradually build an integrated sugar supply chain business pattern to avoid fierce competition in raw materials and production links......"

In other words, the ambitious future sugar giants are learning from Jiagu and actively building the whole industry chain.

But that's interesting, isn't it?

Qi Zheng said with great interest: "We act as 'catfish', naturally some people don't want to be 'salted fish', and the sugar department really needs to wake up the spirit!"

......

In this world, only reformers advance, only innovators are strong, and only reformers and innovators win!

If it is just a "catfish", Jiagu Sugar can be satisfied now, but if it wants to become a leader in the industry, now is just the beginning.

In order to promote the reform of the domestic sugar industry, sugar planting is still the first source.

After visiting the sugarcane interplanting soybean technology demonstration base in Jiagu, the bigwigs of the Guizhou Provincial Party Committee had a separate dialogue with Qi Zheng on this issue.

"Compared with other provinces and regions in China, our province has the best sugar production efficiency, the highest total sugar production per unit area, and the scientific and technological level of the sugar industry is also at the leading level in the country. But if it is placed in the global sugar market but does not occupy an advantage, compared with the world's sugar producing countries, the sugarcane purchase cost and sugar production cost of our province are much higher...... "sugar industry as one of the pillar industries of Guizhou Province, the provincial boss has a clear understanding of this.

Both know that the difference between domestic and foreign sugar prices depends on the state's protective policy and strict control of sugar imports.

How to reduce the production cost of the sugar industry and enhance international competitiveness is what the provincial tycoons want, and it is also what Qi Zheng, who has a strong industry in a large overseas sugar-producing country, thinks about.

The answer given by Qi Zheng is that only by taking the sugar factory as the main body, establishing cooperatives, transferring land for intensive production and large-scale production, increasing the output of sugar, and increasing the sugar content rate, can we effectively reduce costs.

Qi Zheng pointed to the demonstration cane field: "Before, there was not even a road here, and the car couldn't drive. In the construction of Jiagu Sugar Industry, by digging high and filling low, appropriately adjusting the slope and flatness of sugarcane fields, and clearing out outcropping stone buds, turning small plots of land into large fields, improving the irrigation system and building mechanized roads according to the requirements of latticeization, the conditions have been created for the whole process of mechanized sugarcane planting, and the subsequent cost reduction is considerable......

Jiagu used the power of capital and technology to solve the scattered problems that plagued the development of the sugar industry in Guizhou Province, which did not surprise the provincial bosses.

Of course, capital and technology, no matter which one is the bottleneck, or that sentence, not everyone is Jiagu.

But the provincial boss is not the most headache for this point - the bottleneck of capital and technology, through slow integration, can still be solved after all.

As a big thinker, he had to consider another question: "If the whole process of sugarcane planting, management and harvesting is fully mechanized, then where is the way out for the large number of sugarcane farmers who now make a living from it?"

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