Chapter 403: Flags Planted All Over the South (1/4)
With the restoration of heavy metal polluted land in Jiagu and entering Hunan Province, it is the large-scale march of Jiagu grain and oil, and Jiagu's "rice hegemony" has entered a new era.
Jiagu Grain and Oil announced that it will invest 1.5 billion yuan to build a comprehensive rice processing base in the Dongting Lake Plain, with a designed annual rice processing capacity of 2 million tons. The foundation stone of the project has been officially laid, and the construction of the first phase of the project has begun. This will be the largest grain processing and logistics center in Hunan Province.
The construction of supporting facilities followed. Jiagu Group has reached agreements with local governments in various parts of Hunan Province to invest in the establishment or mergers and acquisitions of warehousing and trading enterprises, and built its own grain collection and storage depot in the Dongting Lake Plain, with a total area of 800 acres and a grain and oil reserve capacity of more than 500,000 tons.
Jiagu grain and oil officially entered Hunan Province, the "land of fish and rice", which really made competitors nervous.
Everyone knows that this is a prelude to Jiagu Grain and Oil's entry into the rice market in Hunan Province, and there will be more actions in the future.
The employees of the rice division of the national food group have been under a lot of pressure recently.
Not long ago, the Rice Division held an internal meeting with the theme of "Benchmarking Jiagu Grains and Oils". Similar to the business war stories of all industries, Guoliang needs to study the capacity construction, terminal distribution and market share of its new rival Jiagu. But before any plan can be worked out, the two sides will have to face the competition head-on.
This is the inevitable result, all want to become a grain and oil giant, to build the whole industry chain, in the edible oil market pattern is relatively stable, difficult to break through the moment, rice noodles become the next direction of development of grain and oil giants.
At present, the rice processing industry is "small, scattered, low" phenomenon, lack of core competitiveness and economic strength, although there are some small brands in various regions, but there is a lack of leading the industry of big brands.
Jiagu rice is one of the larger brands, but the share in the domestic market with an annual output of nearly 200 million tons of rice is still too small.
Of course, compared to Jiagu's position in the rice market, Guoliang Group and Yihai Kerry have no sense of existence, and the two are basically on the same starting line.
Both companies have set up their own rice and noodle companies and set up factories in various locations through acquisitions or joint ventures.
From the perspective of national grains, its strong state-owned enterprise background and many years of experience in the field of grain and oil are the best advantages, while Yihai Kerry has more advantages in branding, operation and promotion.
But no matter who they are, unlike the three Dingli in the edible oil market, in the rice market, they are joining forces to "resist" the suppression of Jiagu grain and oil.
Because looking at the main rice-producing areas in China, especially in the south, the rice planting bases of Jiagu grain and oil are simply ubiquitous.
I don't know what the reason is, Hunan Province is a blank area for the influence of Jiagu Grain and Oil in the south of the Yangtze River, and it has also become the base of Guoliang and Yihai Kerry Rice in the south.
But now, the wolf is coming!
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They were not wrong, as the harvest season approached, the war was the first to start in the Dongting Lake Plain.
For grain merchants who are actively building downstream markets, the lack of high-quality and stable supply sources is undoubtedly a fatal blow.
The reason why Jiagu grain and oil can beat the two major grain and oil giants in the rice market in the south is that the strong supply source is the most important factor.
As Jiagu set up a number of grain purchasing points in the Dongting Lake Plain, the main grain-producing area of Hunan Province, the three parties launched a "grain grab" encounter.
Before the grain purchase was opened, the national grain rice industry and the Yihai rice industry suffered a blow, and some of their managers were poached by Jiagu grain and oil with high salaries, and the policies, methods and contacts of the two grain purchases were all mastered by Jiagu.
The construction of the rice processing plant of Jiagu Grain and Oil was extremely rapid, and the purchase of rice was also carried out in full swing.
At a Jiagu rice purchase point in the Dongting Lake Plain, dozens of trucks lined up in a long queue, waiting outside the door.
Rice broker Wang Jianhui took the rice sampling report and hummed a song calmly.
In Hunan Province, a grain trade chain consisting of farmers, hawkers, rice brokers and grain companies has existed for many years. At five or six o'clock in the morning, the vendors would drive their tricycles to the farmers' homes to collect grain, sell it to brokers like him, who would then sell it to grain companies.
Previously, his partners were all in the national grain and rice industry. But to be honest, selling grain to national grain doesn't look like a very good business. From the perspective of profits, he only earns a penny gross profit by selling a pound of rice to the national grain, and no matter what kind of grain, the national grain has more right to speak, and there is not much room for bargaining.
Rao is so, and it is not that there are no small rice mills with higher bids, but Wang Jianhui would rather choose the national grain.
Because he needed money to buy raw grain, he had to pay cash to the farmers, and if the grain could not be sold immediately, or sold to the local millet factory, he would not be able to recoup the money in the short term. This means that his financial chain may be broken.
Only by cooperating with Guoliang, Wang Jianhui does not have to worry about money. For a large partner like him, after signing the purchase contract, the company will even pay 10% of the grain payment in advance according to all the funds required for the purchase. Because of the high credit of the national grain, as long as it wants, it can also act as a guarantor and help itself go to the bank for a loan.
Yihai Kerry is similar, but it maintains a delicate balance with Guoliang locally, and everyone has their own scope of acquisition, and Wang Jianhui is in the radiation range of Guoliang Rice.
Then this year, Jiagu came and entered the local grain procurement market strongly. This gave Wang Jianhui another choice.
Although Jiagu is a new grain and oil giant, it consciously abides by the old regulations, as long as it passes Jiagu's sampling inspection and the products meet the standards, Jiagu grain and oil is also purchased in cash.
More importantly, the purchase price of Jiagu grain and oil will be 5 cents per catty higher than that of national grain, and according to the calculation of 1 ton of rice per mu, it will increase by 50 yuan, which is not a small number for farmers or brokers like him.
Therefore, when Jiagu Grain and Oil came to the door, he did not hesitate to "mutiny" Jiagu and also built the largest rice processing base in the province locally, and the business will only get bigger and bigger.
Wang Jianhui came loaded with rice, and then left with bags of cash in his pocket.
Such a lively scene is staged at every acquisition point in Jiagu.
The national grain rice industry and the Yihai rice industry are about to be blown up.
Because of the rush to buy grain, the purchase price of the two was originally higher than the market price, and now the price of Jiagu grain and oil is overwhelming them, according to the general rice processing calculation, Jiagu grain and oil will lose one or two yuan for every 100 catties of rice processed.
Anyone with a discerning eye can see that this is arguing with the two families.
The national grain and rice industry took the lead in holding back, and the local person in charge openly criticized Jiagu Grain and Oil: The operation of Jiagu Grain and Oil is stirring up the situation and disrupting the market......
Yihai Rice then responded that they could not increase the price, but the higher the purchase price, the higher the production cost of the enterprise, the greater the operating risk, which is not in their own interests.
Many small rice factories in the local area that were forced by them to hang themselves before looked sideways: Could it be that you are not all the way to the goods?
The accusations of the two families against Jiagu grain and oil alarmed the Hunan provincial government, and the provincial Ministry of Agriculture, the Ministry of Commerce, and other departments sent people to investigate, but in the end they came to the conclusion that the accusation of disrupting the market order of Jiagu was not established, and in fact, many of the grain purchased by Jiagu grain and oil were purchased with the active assistance of the local grain department.
Seeing that Jiagu Grain and Oil had captured the last stronghold south of the Yangtze River step by step, the person in charge of the national grain and rice industry had no choice but to look up to the sky and sigh: Jiagu flags are planted all over the south!
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