Chapter 328: A Price That Others Can't Pay
In fact, although the man in Zhongshan is determined to say that it is not so easy to completely clear the power of the four major grain merchants in China.
Since the grain companies led by Cargill entered China in the 1990s, these national grain giants have been operating in China for 32 years, setting up hundreds of subsidiaries, and mastering a complete industrial chain from raw material planting and production to terminal product distribution.
For a certain period of time, even if the four major grain merchants controlled the Chinese dining tables, it was not an exaggeration, because the products we are familiar with include Golden Dragon Fish and Luhua all have the shadow of their controlling stakes behind them.
Even the most widely operated adm company, the annual oil pressing volume of all the companies they control has reached more than 10 million tons, the annual oil refining capacity is more than 3 million tons, and the export volume of oil-pressed by-product soybean meal has reached 70% of the total national volume.
Therefore, in general, the penetration of the four major grain merchants into China is much deeper than what ordinary consumers see. It is just that the three giants, China Grain and China Grain, have supported the final line of defense, and the entire China Grain market has not completely fallen into the hands of each other.
In recent years, under the strategy of taking COFCO as the face and CGS as the inside, China Grain and Oils as the inside, China Grain Enterprises have gradually begun to counterattack the grain market and have gradually gained influence in the most difficult terminal market. Especially after a new batch of young blood poured in, COFCO started from the small to large and from the most subdivided snack market, which has actually made a wave of presence.
However, such progress seems a bit too weak compared to the deep-rooted forces of the four major grain merchants in China.
To completely shake the foundation of the four major grain traders and expel them from the core circle of interests of this market, what we need to do is far more than just the terminal.
Instead, it is necessary to start from raw material production, to transportation, storage, processing, distribution, and even financing, investment... All upstream and downstream industries must cooperate and work together to achieve the ultimate goal.
This task is extremely arduous and cannot be achieved overnight. Therefore, the decision-making team represented by Zhongshan dressed men did not put forward too ambitious goals. What they had to do was to clean up a group of enterprises with the most misplaced butts, knock out the most core nodes in the entire control system, and then implant the power of China National Grain Storage on these nodes, and then dismantle their entire system step by step.
To do this, it is obviously impossible to use the method of direct searching homes as some radical netizens said, because this behavior of directly interfering in the operation of the market through administrative means without violating the bottom line of the law may destroy the balance of the entire business environment and ultimately make the loss more than worth the effort.
Unless it reaches the last step of life and death, no rational decision-maker can do this.
However, of course, this does not mean that the official has no way to deal with these companies. As Secretary Qin said, the subsequent strategies have been arranged, but it will take some time...
...........
Just as the Chinese government was nervously planning to deal with the next impact and was seeking opportunities in the impact, the offensives of the four major grain merchants in the field of public opinion began to be launched in full swing.
As the most important part of the food battle, inciting panic is often the most effective means to cause stampedetic collapse.
It is impossible for the public to know how much food the country has, and it is difficult for them to believe the cold numbers on the official data. What they see is only some vivid cases, or what happens around them, and familiar people start to grab food.
For example, when they see the poor in Yindu starving to death, while lamenting that the other party's life is miserable, they will also consider what they should do to avoid such results; for example, when they see someone buying rice in a supermarket, they will subconsciously throw a few bags of bread into their shopping carts; for example, when they see international grain prices soaring, they will involuntarily worry about when such price increases will be transmitted to the country, and how long can their wages last for a long time under such price increases.
Based on this principle, the four experienced grain merchants launched their offensive early, batches of news were released, and the hot lists on the online platform began to gradually be flooded with grain-related news.
"The Yindu food crisis, wheat prices soared eight times, where will the bottom people go?"
"Is it a climate factor or a market factor that generally rises in global food prices?"
"The Chinese wheat virus is raging, and experts from the Academy of Agricultural Sciences respond to expectations of production cuts."
"There is a rush to buy in Shenzhen supermarkets. An expert responded: There is enough food to eat, so there is no need to rob it."
"Doing seedlings for feed? The wheat gap may be further expanded."
......
These messages follow the principle of nine truths and one false, and are often mixed with one or two pieces of content that intentionally incites emotions in a lot of objective content. This content can also get the largest amount of traffic in their exposure weight. Therefore, the discussion on food security on the Internet has become more and more lively.
"Isn't it really short of food, right? China National Grain and Oils just said that it had released 100 million tons of food in stock, but why did it feel like it was starting to be short of food all at once?"
"On the upper floor, do you believe it if you say 100 million tons? Let's learn about the Fire Dragon Burning Warehouse? According to their urine properties, it would be good if they could put 10 million tons out. Buy it quickly, you won't be able to buy it any later."
"Haha, I'll capture 500,000 above the building alive. I forgot about the CCGG beat your Cargill master back then? I still burn the warehouse for Fire Dragon? Tell you that the food released is indeed limited now, and a large part of it has been eaten by bulk traders, so the tension in the retail market has not yet eased."
"But, the dealer's wallet is limited, and the rabbit's pocket is infinite. Please wait patiently. When these Erwuzi's belly is burst, it will be time for them to cry."
"What I said upstairs makes sense, I believe in the country. But it's not wrong for me to store a little grain? I don't buy more, just buy rice, flour and oil for a month."
"A month is not considered hoarding food. I have been hoarding for 3 months anyway. This number is more appropriate. You can do it yourself."
"Then I'll stock up for three months too. Brother Meng, do you have a group purchase link? Come on one."
.........
Ye Zhou sat in the office and browsed the comments from netizens. He looked at Chen Hao opposite him with a frown and asked:
"Why do you feel that the storage effect this time is not particularly obvious? The rush to buy things that have just been suppressed, and after a few days, there are signs of rising again. Is it really not enough released?"
Chen Hao nodded slightly and replied:
"Let's have two reasons. First of all, the first thing is to say is that there is a process of releasing storage. It is said that it is to releasing 100 million yuan. In fact, the staple food that has been actually put into the market is less than 10 million tons. A large part of it has been eaten by bulk traders and has not really flowed into the market."
"The second reason is that our opponents are more determined than any previous one. We now basically confirm that their action this time is not just the actions of the four major grain merchants, but a comprehensive attack led by the official of the Chou Kingdom, with the help of the four major grain merchants as a platform to operate."
"So, the amount of funds they mobilized in this operation is huge, and foodies are also very determined. It is normal for us to not achieve results in the short term."
"This stalemate will gradually be broken as the reserve release continues. At that time, either we will burst them or they will eat us."
Ye Zhou nodded slightly, then asked with some concern:
"...................... are they more likely to eat us?"
"Of course this is true, but we must first determine a principle: even the core management of the four major grain companies is not completely the same as the Chouguo."
"All their actions are profit-driven, and when they clearly see unprofitable expectations, they will stop immediately."
"In history, the reason why we won the food battle is not because we really consumed all their working capital by releasing food, but through this action, we send a signal like them, that is, no matter how much you eat, we will accompany you to the end."
"When such signals are verified, it is time for them to retreat."
Ye Zhou's brows were still frowning. After a moment of pause, he continued to ask:
"But, this time, like you said, they have sufficient funding behind them, so the threshold for affordable losses is also increasing -- can we stick to that time?"
Chen Hao smiled and replied:
"It may be difficult to persevere until then, but don't forget that we have some close partners in our own right."
"You said Xiong Da? Their wheat is not only sold to us, but for us, the quantity is not enough?"
Chen Hao shook his head and replied:
"When others bid higher, of course they don't just sell it to us."
"But what if we offer one, what if others can't afford it?"
"For example, wheat yield increase technology achieved through gene editing."
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Chapter completed!