Great Power Technology

Chapter 327 A price that others cannot afford

In fact, although the man in Mao suit said firmly, it is not that easy to completely wipe out the power of the four major grain merchants in China.

Since grain companies headed 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 controlling the entire process from raw material cultivation and production to end product distribution. industrial chain.

For a certain period of time, it is not an exaggeration to say that the four major grain merchants controlled the dining tables of Chinese people, because the products we are familiar with, including Arowana and Luhua, all have the shadow of their holdings behind them.

Even ADM, the company with the widest business scope, has an annual oil crushing capacity of over 10 million tons for all the subsidiaries they control, an annual oil refining capacity of over 3 million tons, and the export volume of soybean meal, a by-product of oil extraction, accounts for 70% of the national total.

Therefore, in general, the penetration of the four major grain merchants into China is much deeper than what ordinary consumers see. This is just because of the support of the three giants, Sinofang, COFCO and Hualiang. The last line of defense prevented the entire Chinese grain market from completely falling into the hands of the opponent.

In recent years, under the strategy of using COFCO as face and COFCO as lining, Huaxia Grain Enterprises has gradually begun to counterattack the grain market, and has gradually gained influence in the most difficult terminal market, especially among the new batch of young people. After the influx of blood, COFCO relied on the strategy of starting from small to large, starting from the most segmented snack market, and actually achieved a wave of presence.

However, this progress is still a bit too weak compared to the deep-rooted power of the four major grain merchants in the country.

To completely shake the foundation of the four major grain merchants and expel them from the core interest circle of this market, we need to do far more than just terminals.

Rather, starting from the production of raw materials, to transportation, storage, processing, distribution, and even financing and investment, all upstream and downstream industries must cooperate and work together to achieve the ultimate goal.

This task is extremely arduous and cannot be accomplished overnight. Therefore, the decision-makers represented by the men in Chinese tunic suits have not set too ambitious goals. What they have to do is to clean up a group of companies with the most unruly buttocks and knock them out. Remove the core nodes of the entire control system, then implant the power of Zhongliang into these nodes, and then disintegrate their entire system step by step.

To achieve this, it is obviously impossible to use the method of directly going to the house and ransacking the house as some radical netizens said, because this kind of direct interference in the market operation through administrative means without violating the bottom line of the law is likely to destroy the entire business. The balance of the environment, in the end, was not worth the gain.

No rational decision-maker would be able to do this unless it was the final step of life and death.

However, this certainly does not mean that there is no way for the government to deal with these enterprises. As Secretary Qin said, all subsequent strategies have been arranged, but it will still take some time.

Just as Chinese officials were nervously making arrangements to deal with the coming impact and seeking opportunities in the impact, the four major grain merchants also began to launch a full-scale offensive in the field of public opinion.

As the most important part of the food war, inciting panic is often the most effective means of causing stampede collapse.

It is impossible for the public to know how much food the country has, and it is difficult to believe the cold numbers in official data. What they see are only some vivid cases, or the behavior of familiar people who started to grab food that happened around them.

For example, when they see the poor people in Yindu starving to death, while lamenting the misery of their lives, they will also consider what they should do to avoid such a result; for example, they see people in the supermarket buying rice in large carts and small carts. When they see this, they will subconsciously throw a few bags of bread into their shopping cart; for another example, when they see the international food prices skyrocketing, they will also involuntarily worry about when such price increases will be transmitted to Domestic, and how long can my salary allow me to survive under such price increases?

Based on this principle, the four experienced grain merchants launched their offensive early, batch after batch of news was released, and the hot lists on the Internet platform began to be gradually filled with grain-related news.

"There is a food crisis in Yindu. Wheat prices have soared eightfold. Where will the people at the bottom go?"

“The general rise in global food prices is caused by climate factors or market factors?”

"The wheat virus is raging in China, and experts from the Academy of Agricultural Sciences responded to expectations of production cuts."

"There is a rush of buying in supermarkets in Shenzhen. An expert responded: There is enough food to eat, so there is no need to rush."

"Destroying seedlings to make feed? The wheat gap may further expand."

These messages follow the principle of nine truths and one falsehood, and are often mixed with a lot of objective content with one or two pieces of content that intentionally incite emotions. This piece of content also gets the largest amount of traffic in terms of their exposure weight. , so the discussion on food security on the Internet has become more and more heated.

"It's not really a food shortage, right? China Grain Reserve just announced that it will release 100 million tons of stored grain. Why do you feel like it's suddenly starting to be short of food again?"

"The people above, do you believe it when they say 100 million tons? Do you want to know more about the Fire Dragon Burning Warehouse? According to their urine properties, if they say 100 million tons can be released, it would be good if they can release 10 million tons. Hurry up and buy it, otherwise it will be too late. Can’t buy it anymore.”

"Haha, capture the 500,000 yuan upstairs alive. Have you forgotten about the violent beating of your Cargill master by China Grain Reserve? And the fire dragon burned the warehouse? Let me tell you, the grain released now is indeed limited, and most of it has been eaten by bulk traders. , so the tension in the retail market has not eased yet."

"However, traders' wallets are limited, but rabbits' pockets are unlimited. Just wait patiently. When the stomachs of these young people are bursting, it's time for them to cry."

"What you said above makes sense. I believe in the country. However, is it not wrong for me to stock up on a little grain? I won't buy more, just a month's worth of rice, flour and oil."

"One month does not count as stocking up on food. I stocked up on food for three months anyway. This number is more appropriate. You can make up your own mind."

"Then I will also stock up for three months. Brother Meng, do you have a group buying link? Come here."

Ye Zhou was sitting in the office, reading the comments from netizens, looking at Chen Hao opposite him with a frown, and asked:

"Why do you feel that the effect of this stockpile release is not particularly obvious? The panic buying wave that has just been suppressed has started to show signs of rising again after just a few days. Is it really that the quantity released is not enough?"

Chen Hao nodded slightly and replied:

"There are two reasons. First of all, there is a process for stockpiling. It is said that it is 100 million tons. In fact, the total amount of staple grains that have been put on the market is less than 10 million tons. A large part of it was eaten up by bulk traders and did not really flow into the market."

"The second reason is that this time our opponents are more determined than ever before. We now basically confirm that their actions this time are not just the actions of the four major grain merchants, but are led by the Ugly State officials and with the help of the four major grain merchants. A comprehensive attack on the platform of big grain merchants."

"So, the amount of funds they mobilized in this operation is huge, and the foodies are very determined. It is normal that we will not be able to achieve results in the short term."

"This stalemate will gradually be broken as the stock-raising continues. At that time, either we will overwhelm them, or they will eat up us."

Ye Zhou nodded slightly, and then asked worriedly:

"Based on the size of the funds, the probability of them shorting us is relatively high, right?"

"Of course this is normally the case, but we must first establish a principle: even the core management of the four major grain companies are not completely aligned with Chou Guo."

"All their actions are driven by profit. When they clearly see unprofitable expectations, they will stop immediately."

"Historically, the reason why we won the food war was not to use the released food to consume all their liquidity, but to send a signal to them through such actions, that is, no matter how much you eat, we I will accompany you to the end."

"When such a signal is verified, it is time for them to retreat."

Ye Zhou's brows were still furrowed. After a moment of pause, he continued to ask:

"But this time, as you said, they have sufficient financial resources behind them, so the threshold of losses they can bear is also increasing - can we hold on until then?"

Chen Hao smiled and replied:

"On our own, it may be difficult to persist until then, but don't forget, we have some close partners."

"You mean Xiong Da? Their wheat is not only sold to our family, but the quantity is not enough for us, right?"

Chen Hao shook his head and replied:

“When others offered higher prices, of course they were not the only ones selling to us.”

"But what if we offer a price that no one else can afford?"

"For example, wheat yield-increasing technology is achieved through gene editing."

I've been busy with projects all day today, and I'm really tired. I'm going to bed first. As usual, I will update 3 more chapters before 12 o'clock.

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