Chapter 290: Advance into New Zealand

Going abroad? Yang Ye was not surprised at all by Qi Zheng's decision. Look at 'Mao's line, Chinese, and net

Choosing the right time to go abroad has always been one of Jiagu Dairy's plans.

Now, Yang Ye also believes that the time has come.

This is different from building organic pastures in Europe to meet the needs of Germany, what Jiagu Dairy needs to do is to introduce dairy resources from abroad to meet domestic needs.

The melamine scandal has brought great harm to the whole infant milk powder industry, but the demand will not disappear. According to estimates, the total market demand for milk powder this year is about 1 million tons or more. Even though Jiagu Dairy has increased the production capacity of milk powder, the annual production capacity is at most about 100,000 tons.

In addition to Jiagu milk powder, domestic consumers' trust in other domestic milk powder is still limited, and their dependence on imported milk powder brands is rising.

The impact of the crisis has caused China's dairy industry to fall the "fence", imported milk powder has set off a strong challenge across the border, foreign dairy merchants have made huge profits, and the cost of raising children has soared.

Although Jiagu Dairy has increased the scale of the construction of the pasture, even according to the operation mode of the milk production of the dairy cows in the pasture for the construction of the dairy cow in advance, it will take at least one year less from the start of the construction of the ranch to the milk production.

Instead of letting foreign dairy merchants make money in vain, Jiagu Dairy should take the initiative to go out and use foreign dairy resources to make up for the gap in the domestic market.

The other direction that Qi Zheng said is to go out is New Zealand.

Imported milk powder generally has a strong brand halo - children drink milk powder diarrhea, if you drink an imported brand, Bao Ma will feel that it may be that the milk powder is not suitable, then change one; if you drink a domestic brand, Bao Ma will feel that the quality of domestic products is not good, and you have to find a store to discuss the law.

This aura comes from their home country, which can be described as "blood is justice".

New Zealand is one such dairy country with a "righteous pedigree".

Of course, there are many large dairy countries with "righteous blood", but there is another important reason why Jiagu Dairy prefers New Zealand. Look.Mao.Line.Chinese.Text.Net

"How many rounds of negotiations have we reached for the free trade agreement with New Zealand?" Qi Zheng asked.

Yang Ye thought for a while and said, "The 13th round has just ended, and the two sides have reached an agreement on most of the terms, and it is estimated that after two more rounds of talks, the agreement can be signed." It will also come into effect next year at the latest. ”

Qi Zheng nodded in confirmation, "We can enter New Zealand." ”

In the China-New Zealand Free Trade Agreement, the tax reduction arrangement for dairy products and the special mechanism guarantee are one of the important contents of the agreement.

To put it simply, after the free trade agreement comes into effect, the trade tariffs on dairy products between China and New Zealand will be greatly reduced, and zero tariffs will be achieved after the transition period of tariff reduction, which will reduce the export cost of New Zealand dairy products to China by an average of 134, further promote New Zealand to expand exports, and have a huge impact on the balance of supply and demand in China's dairy market.

Of course, it is beneficial to New Zealand's exports, and it is naturally beneficial for Jiagu Dairy to go out.

......

New Zealand, North Island, Waikato Region.

The Waikato region is New Zealand's most important dairy farming region.

Qi Zheng and Yang Ye arrived here and joined the acquisition team that had arrived earlier.

I have to say that New Zealand is really blessed.

Surrounded by the sea on all sides, the mountains are undulating, and it is an oceanic temperate broad-leaved forest climate, which is mild and humid all year round. The suitable climate and abundant rain not only provide abundant pasture for cattle and sheep, but also provide good conditions for the growth of cattle and sheep.

New Zealand has a population of 4.5 million and a land area of only 270,000 square kilometers. Such a small country is the world's largest exporter of dairy products, accounting for one-third of the world's total dairy exports.

Qi Zheng is in New Zealand, in addition to the beautiful natural scenery, the most seen are cattle and sheep wandering in the meadow.

Compared with the Jiagu Ranch in China, even with the nourishment of the Spirit Array, Qi Zheng does not dare to say that the cows in Jiagu Ranch live happily than the cows in New Zealand.

While cows in most countries are fed in captivity, New Zealand cows live freely on large natural pastures for the rest of their lives, without feeding and only on high-quality pastures.

In addition, there is no industrial pollution, the cattle and sheep drink pure water with strict standards, breathe pure air with the reputation of natural oxygen bar, and eat high-quality and pollution-free pasture.

Without the risk of antibiotics, hormones and carcinogenic residues, New Zealand is internationally recognized as a country free of mad cow disease, scrapie and foot-and-mouth disease, resulting in New Zealand's internationally recognized high-quality dairy products.

It is also one of the cheapest countries to produce milk.

As far as Qi Zheng can see, in New Zealand, there is no need to build a cowshed, there is no cattle community, and there is no need to build water, electricity, sewage, heating and other facilities; the grassland is privatized, and the rancher owns the grassland resources, does not need to invest in renting the pasture, and does not need to spend money to buy feed, so it is no wonder that the production cost of milk is low.

Qi Zheng couldn't help but have a feeling, why didn't he "come out" earlier?

"It's not too late, or rather, never too late. Yang Ye said about this.

Qi Zheng thought about it and smiled.

Yes, even if there is no Jiagu Dairy, domestic dairy companies will have to "come out" sooner or later, and they must "come out".

With the improvement of the level of urbanization in China, the per capita income has increased, and the process of consumption upgrading has accelerated. What a glass of milk carries is no longer a simple protein supplement, but also carries people's pursuit of quality life.

The problem is that China's current per capita consumption of dairy products is less than half of the European average. Given the size of its population, this raises an increasingly pressing question: how can countries satisfy their people's appetites?

The milk supply of 1.3 billion people makes Qi Zheng feel numb when he thinks about it. The country's leader is right when he says, "In China, no matter how small a problem, multiplied by 1.3 billion will become huge." ”

One thing is certain: China's own resources alone will never meet its domestic needs.

On the one hand, dairy farms consume a lot of fresh water resources, about 1,020 litres of water to produce one litre of milk – a water scarcity that China already suffers from.

On the other hand, animal husbandry is also considered to be one of the most important causes of climate change.

The livestock sector accounts for about 145 percent of total global greenhouse gas emissions, more than the entire global transport sector combined. Cattle-related emissions account for more than two-thirds of overall livestock emissions. Because ruminants' digestion and excretion release large amounts of methane and nitrous oxide (a strong greenhouse gas) – the country's air pollution is already serious enough.

Therefore, it is better and only to "get out", buy land and water rights in foreign countries, and build large processing plants in other countries – this is a disguised transfer of the increased environmental burden of water, land and nitrogen pollution to other countries.

......

The process of Jiagu Dairy's acquisition of a dairy company in New Zealand did not make any waves.

This is mainly because the target company, Tatu Dairy, is not a significant player in New Zealand.

Tatu is a company of 120 dairy farmers that has been working together for more than 80 years, and while it has a place in the Waikato region, it is not worth mentioning in New Zealand as a whole.

Through negotiations, with its good corporate image and the corporate strength to lead Tatu to a stronger future, Jiagu Dairy officially acquired the equity of New Zealand Tatu Dairy Company 100 at a premium of 58 million New Zealand dollars (about 300 million yuan).

With the successful acquisition of Tatu, Jiagu Dairy's global layout has truly added a strong fulcrum.

However, Tatu's raw milk supply only accounts for about 2% of New Zealand's raw milk supply, and if you want to obtain more high-quality and stable New Zealand milk sources, Jiagu Dairy still can't avoid New Zealand's behemoth - Fonterra.

......