In early September, Jiagu International signed a shareholding agreement with CBH, Australia's largest grain exporter, with an investment of A$700 million, in which Jiagu International holds a 25% stake.

Together with the previous acquisition of Amod Grain Company, Jiagu International can affect more than 8 million tons of grain sources in Australia's grain trade, especially barley trade.

Most of this barley trade is used to meet domestic demand.

What does Australian barley mean for China's grain and food processing industry?

In recent years, with the development of the domestic beer industry and the promotion of Jiagu, the planting area of malting barley has increased greatly, but the overall sown area of barley has shown a downward trend, which shows the decline of domestic feed barley planting.

On the contrary, the strong domestic demand for livestock has a high demand expectation for feed barley, of which barley from Australia accounts for more than 50% of China's total barley imports.

Backed by the huge domestic market is the confidence of Jiagu International, and after having a certain right to speak in Australia's grain trade, Jiagu International first promotes change, which is a continuous and non-negligible problem of Australian Valley property - pesticide residues.

Australian wheat farmers tend to use glyphosate to treat mature forage barley crops. Although there is no upper limit on glyphosate residues in imported barley, glyphosate residues in barley are still a major food safety threat.

To put it bluntly, Jiagu agriculture and animal husbandry also need to import a batch of feed barley every year, and barley containing glyphosate cannot meet the standard of Jiagu feed raw materials.

Needless to say, Amod Grain Company, which is fully controlled by Jiagu System, and CBH, which has a stake in China, also fully agrees with Jiagu International's glyphosate residue-free standard in order to protect its trade relationship with China.

At a press conference before the barley harvest, CBH publicly stated that it had a responsibility to safeguard the export market, and to that end, CBH chose to ban the export of glyphosate-treated feed barley to China on its own.

This is another benefit of controlling overseas food sources – in addition to making a profit from trade, it also helps to promote the standards of the Jiagu system and even Chinese standards, and maintain food safety from the source of imports.

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From the Russian Far East to the United States, and then to Australia, Jiagu International's large-scale acquisition of agricultural assets has once again attracted the attention of domestic industry insiders.

In particular, Jiagu International has exerted influence on Australia's grain source through acquisitions and shares, and more relevant domestic importers have really felt the sharpness of their domestic counterparts.

For example, New Hope, the largest feed company in China, is a big customer of Australian barley sales;

But no one can feel the pressure more than the National Grain Group.

-- The sugar imports of the National Grain Group are purchased from Jiagu Sugar, and now even Australia's grain imports cannot escape the "black hand" of Jiagu?

What's next? Is it possible that all the grain imports of the National Grain Group can be contracted by Jiagu?

Mr. Ning, the chairman of Guoliang Group, patted the table and asked the general manager of the international department: "Tell me, it's been more than a year, and our group's overseas layout has not even been determined...... Your international department has been saying that you want to study it carefully, but what are the results of the research now?"

Don't worry about it, Mr. Ning!

Although the industry still seems to have tacitly tacitly accepted that Guoliang Group is the first domestic grain businessman, but after careful calculation, even Mr. Ning feels weak about this "boss" status.

-- Mainly in terms of the overlapping business of the two sides, Guoliang Group seems to be in a position of being beaten.

In the field of grain, Jiagu Grains and Oils' rice business is outstanding, with a market share of more than 10%, and it deserves to be the first in the industry - the national grain has failed;

In the field of edible oil, in terms of raw material supply, Jiagu Group has taken control of the soybean grain source in the Russian Far East; while Guoliang Group can only establish a number of joint ventures with ADM, one of the four major grain merchants, and most of the soybeans needed are provided by ADM; in terms of brand sales, Jiagu edible oil has even surpassed Arowana and suppressed Fulinmen in an all-round way - the national grain has been completely defeated;

In the field of sugar, Jiagu Sugar has ranked among the top three in the global sugar industry, and can even exert influence on international sugar prices, while the national grain Tunhe is only barely among the top five in the domestic sugar industry - the national grain is completely defeated;

In the field of dairy products, the fierce bull in which Guoliang has a stake has fallen into the "Aspergillus flavus" this year, and its image and market share have plummeted; Jiagu Dairy, a subsidiary of Jiagu Group, is the benchmark of the domestic dairy industry, and the industry overlord with a market share of 30% - Guoliang has completely failed;

In the field of liquor, there is actually no overlap in business, because Guoliang Liquor is engaged in wine, imported liquor, liquor and rice wine, and owns well-known brands such as "Great Wall", "Sanggan" and "Kong Yiji", but in the face of Qingyuan Beer, which can attract a $44 billion acquisition offer...... Well, probably the national grain wine industry can only be worth a fraction of it - the national grain is completely defeated;

As for the field of meat, the annual slaughter of national grain meat is only a few hundred thousand pigs, compared with the annual slaughter of millions of pigs in Jiagu agriculture and animal husbandry, the gap is desperate - the national grain is completely defeated;

Not to mention that Jiagu Group was able to crack down on agricultural speculation through a huge inventory of agricultural products, and began to achieve a global scale and monopoly pattern......

Well, probably the flour industry, cotton spinning industry, hotel real estate industry, etc., which Jiagu did not involve or exert efforts in, Guoliang Group is not so disgraced.

But in comparison, does Guoliang still have a face?

Although Guoliang Group has grown into a behemoth through continuous mergers and acquisitions, it is really "big but not strong" compared with international grain merchants, even compared with Jiagu Group's ability to make its various businesses one of the best.

Therefore, Mr. Ning urgently hopes that the group will focus more energy on its main business and return to the mission of the central enterprise to ensure food supply - but his subordinates do not give their best.

However, the general manager of the International Department of Guoliang expressed his grievances: "This going out is far from being as simple as imagined......

The market for bulk agricultural products is very cyclical, like the pig industry, where there is often a year of profit, a year of loss, a flat year, a cycle of about 3 years, and similar phenomena such as grain.

Unfortunately, in the past year, as Guoliang Group has set its sights overseas, it is at the time of the agricultural product boom cycle, and in the short term, it is really not suitable to carry out mergers and acquisitions.

——Jiagu Group was lucky before, or had a good vision, to carry out mergers and acquisitions during the low tide of the industry, and now with the arrival of the agricultural product boom cycle, its asset income is also improving. But now entering the market, just look at its investment in CBH, an absolute premium acquisition.

Mr. Ning didn't understand, so he suppressed the irritability in his heart and said in a deep voice: "Anyway, your international department is going to speed up the progress, and our group urgently needs an overseas platform ......"

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"In the short term, I'm afraid we will have to slow down the pace of overseas mergers and acquisitions. On the other side of Australia, after implementing the investment in CBH, Qi Zheng said to Zhong Huazhi of Jiagu International.

The National Grain Group knows that now is not a good time for mergers and acquisitions, doesn't Qi Zhenghui know? In the boom cycle of agricultural products, grain merchants are all living quite nourishingly, who is rare for you to buy?

——If it weren't for CBH's need for financing to acquire terminal facilities on the east coast of Australia, revealing "flaws", Jiagu International would not have had the opportunity to invest in shares. Rao was like this, and a large piece of meat was also bitten off.

Zhong Huazhi nodded approvingly: "Before the global agricultural product market prices fall sharply and demand shrinks, we had better deepen our domestic efforts and wait for opportunities to cope with more fierce competition......

"Every time the tide rises and falls, it will cause turmoil in the international trade of agricultural products!" With the acceleration of the pace of internationalization of Jiagu Group, the integration of the entire agricultural industry chain without geographical restrictions, and the integration of channels of different agricultural product supply chains into the enterprise, Qi Zheng has smelled a sense of tension that is about to come in the storm.

On the one hand, because of the growing population and increasing affluence, consumption upgrading is the major trend of the future, and on the other hand, when the economic growth slows, agriculture has the advantage of being a low-risk investment - so the expansion and mergers of the global agricultural giants have never stopped.

The four major grain merchants of the old camp of ABCD are still the "hegemons" of the international grain market, and their unique storage warehouses, ports, shipping vessels, and relationships with farmers around the world make them irreplaceable in the competition.

At the same time as the four major grain merchants, there is also a strong lineup - multinational grain merchants from the island countries, including Marubeni, Itochu and Sumitomo...... They are the main force of foreign investment in the agriculture of island countries.

In the new century, a number of new international grain merchants have risen rapidly.

Definos will return to the global grain trader camp with an international eye, Wilmar International has become a leading agricultural group in Asia by investing in emerging market countries, and Glencore, the largest of all, is launching an unprecedented IPO in London and Hong Kong, raising more than US$10 billion, diversifying its agri-food business and helping to withstand the frequent ups and downs of price fluctuations in businesses such as mining......

And, of course, the soaring Jiagu Group!

The rivers and lakes of international grain merchants have always been the world of giants.

The huge demand of the Chinese market is constantly making all kinds of heroes in this world, and China has fully possessed the strength, giving birth to world-class agricultural giant companies, and advancing into the new rivers and lakes of international grain merchants!

For example, the Jiagu Group that remains sober, such as the Guoliang Group that is completely awakened!

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