Chapter 107 Standards and Responses
The establishment of the Agricultural Reclamation Alliance has had a huge impact on the domestic dairy industry.
Dairy companies in various places have different reactions. Local small and medium-sized dairy companies are unable to fight against the Agricultural Reclamation Alliance. They either choose to join the Agricultural Reclamation Alliance or seek good fortune on their own.
However, the Agricultural Reclamation Alliance is not a casual entry. For example, if there have been major food unqualified incidents, they cannot apply to enter the Agricultural Reclamation Alliance.
The so-called major food failure incident naturally refers to an incident similar to melamine toxic milk. Basically, most of the domestic dairy companies have won the bid.
Even if there is no dairy company involved, it is impossible to enter easily. It must meet some basic conditions. The dairy product standards announced by the Agricultural Reclamation Alliance are further developed based on the European standards.
For example, in terms of protein content, it is required that each hundred grams of milk should not be less than 3.3 grams; the total number of colonies should be less than 30,000 per milliliter; the milk fat content should be higher than 3.7%; the number of somatic cells in raw milk must be less than 40,000 per milliliter.
There are also new mandatory antibiotic projects, which must ensure that the antibiotic content in milk is zero; adjust the freezing point detection standard and change it to degrees Celsius; increase the nitrate content, aflatoxin content, and microplastic particle content detection.
These standards are enforced. If you cannot even meet these standards, you don’t have to consider applying to join the Agricultural Reclamation Alliance.
As for whether dairy companies can do it, some companies are not unable to do it, but deliberately do not improve it. The Xiangjiang and foreign dairy products they export are all in line with international standards, which are significantly higher than the domestic standards. They are just choosing to treat them differently.
If someone has purchased milk from two major factories, they will find that they are playing word games, deliberately changing the protein content to every 100 milliliters per 100 grams.
In the eyes of ordinary people, 3.2 grams per 100 grams and 3.2 grams per 100 milliliters are exactly the same.
But in fact, the density of milk is slightly larger than that of water. The weight of 100 ml of pure milk is about 103 grams, which means that the protein content of 100 ml of pure milk is only 3.1%.
This is just a microcosm.
Since they wanted to pretend to be dead, Huang Xiuyuan would let them die a little thoroughly.
For those domestic retail dairy farms, the Agricultural Reclamation Alliance plans to adopt an integrated approach to eliminate small-scale free-range farming methods.
Thanks to Wandashan and Fengmin Agriculture will merge retail investors in a planned manner to form centralized large-scale breeding. For dairy cattle breeding that requires relatively high professional skills, retail investors will not be able to keep up with the times.
It is difficult for retail investors to feed them scientifically, let alone not abuse antibiotics and add high-nitrogen compounds. Driven by interests, human nature is the most unbearable test.
The benefits of centralized breeding can not only improve the quality and safety of milk, but also reduce unit labor costs and breeding costs.
In fact, the labor costs of some dairy farmers are very unprofitable in free-range conditions. They seem to have made some money, but in fact, the benefits are obviously worse than those of dairy cattle breeding companies.
According to Fengmin Agriculture's survey results in various parts of Shandong Province, due to the influence of last year's toxic milk incident and the just-occurring poisoning incident, domestic dairy farmers have not had a good life.
Compared with the general salary of 3,000 to 4,500 for milk companies, individual milk farmers are not profitable and may even face losses.
In addition, some employees of dairy breeding companies, but those who hold the company's shares can receive dividends every quarter, which is also a considerable income.
After all, milk breeding companies that are large-scale breeding are much stronger than retail investors in the face of various risks.
Faced with the strong Fengmin Agriculture and the Agricultural Reclamation Alliance, many dairy companies are already finding a way out, especially those not on the blacklist, who are mainly considering joining the Agricultural Reclamation Alliance.
The milk companies on the blacklist did not sit idly by.
The blacklisted dairy companies led by Meng Yang and Yi Li secretly contacted each other to discuss how to deal with the Agricultural Reclamation Alliance and the Suiren Company behind it.
Meng District, Guisui.
This city, known as the Kushu City, has two major dairy products companies in the headquarters office building of Mengyang.
A middle-aged man wearing glasses and looking gentle, crossed his legs and asked, "Mr. Yang, how do you plan to deal with the agricultural reclamation?"
"Mengyang has never been afraid of challenges, and we have reached a preliminary intention with COFCO to sell 28% of its shares to COFCO." Yang Yingjun replied calmly.
For this answer, Wei Min raised his glasses: "Mr. Yang is sure? COFCO may not take action. After all, behind the farming industry are Beidahuang Group and Suiren Company, so they are not easy to mess with."
"So what?" Yang Yingjun still did not show fear or anything like that.
Wei Min reminded: "Mr. Yang, don't be too confident. I have read the introduction to the saline-alkali land transformation of Suiren Company. In addition, they can produce fertilizers themselves and control water supply. At that time, the cost of domestic feed will drop, and imported forage may not be able to compete with each other."
"What's the point of Mr. Wei? The other party has blacklisted us and there is no way to cooperate." Yang Yingjun mocked.
Wei Min narrowed his eyes and said, "There is an obvious loophole in the cooperation framework of the Agricultural Reclamation Alliance, that is, two-thirds of the saline-alkali land they helped farmers transform are controlled by farmers themselves."
"You are planning..." Yang Yingjun reacted.
Wei Min nodded: "We can set up a feed processing company to increase the purchase price of forage, attract farmers to sell forage to us, and borrow chickens to lay eggs directly."
"Will this cause a countermeasure from the Agricultural Reclamation Alliance?"
"What are you afraid of? Now that we are fighting, there is no need to worry about it. We are not illegal anyway." Wei Min's strategy can actually suppress the Agricultural Reclamation Alliance.
After weighing the pros and cons, Yang Yingjun also took the initiative and decided to set up a feed processing company to grab the two-thirds of the transformation of saline-alkali land.
The two companies secretly discussed the joint plan, and then planned to form their own standard alliance to benchmark the standards of the Agricultural Reclamation Alliance.
It really hurts them very much because raising the standards means that the costs will also rise, and Tetra Pak has made half the profits.
Now we need to raise the standards and further increase production costs.
But now it is impossible not to raise the standards, because another subsidiary of Suiren Company, Time Information, often randomly inspects products on the market.
I used to be fooled, but now at this critical moment, if I cheat and be seized by the Agricultural Reclamation Alliance, it will definitely be a fatal crisis.
Yang Yingjun and Wei Min were bleeding in their hearts. As soon as this standard came out, their profit was only 40 to 60% of the previous one.
But in order to protect the market, they must invest in order to fight the aggressive agricultural reclamation alliance.
On the other hand, after discussing with Wei Min and others, Yang Yingjun also noticed another problem, that is, the discomfort of being controlled by Tetra Pak.
There was at least 50% of the profit in a box of milk, and it was profitable by Tetra Pak. When there was no Agricultural Reclamation Alliance before, their life was quite prosperous. Now, facing the competition of Agricultural Reclamation Alliance, there was originally a 50% profit, but now there are only 20% to 30% left.
If something happens again, Meng Yang and Yili may not be able to withstand it.
The choice now is to negotiate with Tetra Pak to reduce the charges by a part of the charges; or to find alternatives to force Tetra Pak to reduce prices.
Chapter completed!