Chapter 585: Catching Up with the Seeded Players in Europe and the United States (1/2)

After the banquet, when Qi Zheng relayed DuPont's plan to Lu Zhiwei, the head of Jiagu's American branch, Lu Zhiwei smiled very happily.

The coolest thing in the world is to ignore me today, and tomorrow you can't afford to climb high, and now the American branch is facing this situation.

Previously, although Lu Zhiwei was limited by the situation, Lu Zhiwei readily responded to Qi Zheng's decision to stop the organic food business, but after all, he was still worried: will the market share be completely lost? Can the organic food business be saved afterwards? Will the branch be on the verge of bankruptcy?

Not only him, but the entire branch was once panicked.

But soon, the organic food buyers who had "abandoned" Jiagu before turned around and knelt down to lick the branch, which reassured everyone.

Many employees of the branch, including Lu Zhiwei, found that the organic food we produce is irreplaceable!

Facts have proved that as long as your product is good to a certain extent, even if you are only a behind-the-scenes supplier, your position in the industry is difficult to shake.

For example, Whole Foods Market, Inc. is a leader in the field of organic food and one of the largest buyers of organic food in Jiagu. In the United States, there is a saying that the rich go to Whole Foods, the middle class goes to Costco mass merchandisers, and the poor go to Wal-Mart. However, after the branch suffered a crisis of confidence, Whole Foods was also the first buyer to kick Jiagu away.

Nowadays, consumers who have lost it to know how to cherish it are so nostalgic for Jiagu organic food. In the face of huge business opportunities, Whole Foods Market is the first organic food supermarket to "eat back grass", fully exerting the style of "asking for money and shamelessness" to the extreme.

But now, it's Jiagu's turn to drag!

Qi Zheng explained: "I asked DuPont's people to contact you to talk in detail, but don't worry, talk slowly, anyway, now we have no shortage of collaborators, DuPont's influence is good, but Wal-Mart is not necessarily much worse......"

Yes, before DuPont, Walmart was also deeply aware of the scarcity of organic food in Jiagu, and it was also grinding Lu Zhiwei to invest in the organic food business of the branch.

Lu Zhiwei coughed lightly and replied seriously: "No problem, I must blackmail this time...... Oh, no, it's about finding a good partner. ”

For a branch that plays a profiteer in the United States, its products are unique, and there is more than one investor seeking cooperation, it is simply a paradise-like treatment, where will it happily agree to "sell itself"?

Lu Zhiwei's meaning is also obvious, if we don't have enough money, we will already roll away; as long as the money is enough, don't roll away, even if we roll into outer space, we can come back by parachute, money is born to eat the festival to death.

"Very well, anyway, it's not us who are in a hurry right now. Qi Zheng laughed.

In fact, there is really no hurry.

In order to expand the organic food business, the branch must expand the area of organic farms. Qi Zheng originally planned to take advantage of the "super drought" in the United States to buy some farms, but later discovered that this year's historic drought has certainly dealt a serious blow to US agriculture, and the output of corn, soybeans, and other major crops is facing a serious decline, but the income of American farmers this year has not dropped sharply.

First, there is the impact of soaring food prices. As long as there is no harvest, the growers will be more or less compensated by the wave of grain price increases, which have been pushed up by three to four percentage points. every day

Of course, it is more important to benefit from the crop insurance system supported by the US federal government.

In the current crop insurance system in the United States, the main types of insurance are not only for crop yield reductions, but also for price changes, and the federal government is the main insurer and reinsurer.

To put it simply, most insurance companies in the United States implement "harvest insurance" for farmers, and in the event of risk compensation, farmers will be compensated according to the unit price agreed in the insurance contract for the loss of agricultural product output, and the protection level of harvest insurance can cover 60%-70% of farmers' income.

And, on the one hand, the U.S. government will cover 60 per cent of the insurance premiums for farmers, and on the other hand, it will subsidize agricultural insurance compensation.

In this system, it is the U.S. government that has paid the most. Thanks to high grain prices and insurance, most farmers have been able to reduce their yields without reducing their incomes, and some have even been able to earn more than they expected at the beginning of the year.

As a result, Jiagu's plan to buy farms "taking advantage of the drought" could only be postponed.

However, Qi Zheng is not too worried about the lack of opportunities. While American farmers may not seem to have much to lose, disasters are disasters, and the damage to the economy as a whole is real.

Over the past decade, U.S. crop insurance programs have been underpaid, and the federal government has not increased its spending on the program as a result. This year is very different, with insurers initially estimated at $25 billion in claims, facing losses for the first time in decades. This is another big test for the Austrian and black government, which is on the edge of the "fiscal cliff".

What's more, no one knows better than Qi Zheng. In the United States, especially in the Midwest, even without his actions, the drought will not only be one year this year, but at least two years after tomorrow, and the ghost of drought will still be entrenched in the Midwest. What's even better is that next year, when the U.S. fiscal deficit is piling up and the O-Black government is bankrupt and "shut down", will the claims for crop insurance items be as simple as this year...... You guess?

Weak American farmers will eventually go bankrupt, but that's the future. At present, what makes Qi Zheng sigh is that the gap between Chinese agriculture and American agriculture can be seen from the agricultural insurance system.

At present, domestic agricultural insurance is still mainly "cost insurance", with a low degree of protection, and can only pay for the physical and chemical costs in planting, such as fertilizers, seeds, etc., in the event of a disaster.

And even such an insurance system does not cover the whole country – there is currently no unified agricultural insurance system in China.

Compared with the United States, one of the most critical constraints is the lack of national finances. The U.S. government can borrow heavily to get by, and even if it goes bankrupt, the whole world will pay for it, but our government does not have such conditions.

In the final analysis, the gap between Chinese agriculture and American agriculture is not so much the gap between China's national strength and that of the United States.

Such a gap will not make Qi Zheng feel frustrated, but can stimulate his motivation even more.

The competition between countries is, in fact, the competition between large enterprises; when enterprises prosper, the country prospers!

And Jiagu is already China's seed player in the field of agriculture, catching up with and surpassing Europe and the United States.

If you don't say modestly, Jiaguxing will prosper China's agriculture!

......