Reborn? The Kind You Can Choose!

China has always been a major agricultural country. This is not because China mainly produces agriculture, but because its population base determines the superstructure.

The population is really too huge.

It is so huge that it relies on agriculture to feed, clothe, house and transport the 1.2 billion people in the country.

Soybeans are related to people's livelihood and prices. They can also be said to be the foundation of the country. Every household must eat oil. Without oil, there is no way to cook and replenish various nutrients necessary for the human body.

It can be said that oil is more important than seasonings such as salt and soy sauce.

However, Yuan Zhou’s story is actually only half told.

Yes, that's it, he only told half of it!

The layout of the world's four major grain merchants is far from over.

They took this opportunity to make aggressive acquisitions, and they controlled 85% of the actual processing capacity of the Chinese soybean market.

Then these acquired oil companies only used genetically modified soybeans to extract oil. In desperation, farmers had no choice but to switch to genetically modified soybeans.

As for seeds, naturally they have to be purchased from the four major grain dealers.

When domestic soybeans are gradually phased out by genetically modified soybeans, the pricing power of China's soybean market will naturally be decided by the four major grain merchants.

The soybean industry's "smile curve", both in seeds and products.

After controlling the seeds, the four major grain merchants began to gradually control China's oil and fat market.

In 2000, ADM Company and Xinguo Fengyi Group invested to establish Yihai Group.

At the end of 2006, Wilmar International acquired Kerry Cereals and Oils [and formed the Yihai Kerry Group with Yihai Group.

How powerful is this group in the Chinese oil and fat market?

More than 70% of China's edible oil market is occupied by three major brands: Arowana, Fulinmen and Luhua.

Arowana is owned by Yihai Kerry.

Luhua is invested by Arowana.

Only Fulinmen is from COFCO.

In 2007, under the control of the four major grain merchants, domestic edible oil prices experienced a rapid rise.

In 2010, brands such as Arowana set off a wave of price increases in China.

The import of soybeans is decided by the four major grain merchants.

The pricing power of downstream products is also decided by the four major grain merchants.

China's soybean industry may only do a job for the four major grain merchants in a year.

This is the layout of the four major grain merchants.

In fact, the situation in China is even considered good. At least, there is still a COFCO Group that is struggling.

The soybean industry in countries such as Pakistan and Afghanistan has completely become a profit-grabbing target for the four major grain merchants.

"Is this just your analysis?"

In the private room of the coffee shop, after a full 10 seconds of silence, Yang Weichao spoke calmly.

Although his face looked quite straight, his eyes were extremely sharp, staring at Yuan Zhou. Of course, this sentence was not what he wanted to ask, but the old man thousands of miles away.

Although the old man was shocked by Yuan Zhou's story, his mentality was not so panicked that he collapsed.

Since Yuan Zhou said it, he must have a reason.

"analyze?"

"This is not an analysis, but... a lesson learned from the past!"

Yuan Zhou stirred the slightly cold coffee in front of him with his hands: "In the 1990s, agricultural credit in Pakistan was tightened and farmers had no money to plant. At this time, the four major grain merchants entered Pakistan!"

"Initially, the four major grain merchants provided loans to soybean farmers on the condition of priority purchase rights for soybeans. This seemed to have no impact on the soybean farmers, but when it was time to harvest, problems arose!"

"Without warehousing, it means that your soybeans cannot be sold outside the production area. You can only sell them to the four major grain merchants!"

"The resources suddenly came to the hands of the four major grain merchants!"

Yuan Zhou raised his head, took a sip of coffee, and spread his hands with a smile: "The four major grain merchants who control the supply of goods in the production areas will not release money. They have reached an agreement with the soybean farmers to provide them with For fertilizers and seeds, when the harvest comes, soybean farmers can only repay them with soybeans!”

"The purchase price is of course determined by the four major grain merchants!"

"There are more and more goods, and transportation systems such as railways, highways, and ports have to make corresponding concessions in order to retain these 'gods of wealth'!"

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"Compared with other companies, the transportation costs of the four major grain merchants have been saved by 50%!"

"at the same time----"

When Yuan Zhou said this, he suddenly paused and his voice suddenly increased: "The four major grain merchants have acquired a lot of oil-pressing companies in Pakistan, and they are constantly extending their chain of control in the soybean industry."

"A few years later, the four major grain merchants have controlled more than 85% of Pakistan's soybean production!"

"In addition to the processing and circulation of soybeans, the four major grain merchants also have the pricing power for seeds, fertilizers, and pesticides!"

"Do you think China...will follow the same path as Pakistan?"

Yuan Zhou raised his head and stared at Yang Weichao.

Yang Weichao's forehead was already sweating a little. What Yuan Zhou told him really happened.

And it happened in Pakistan, Afghanistan and other South American countries, and even later, it spread to India in Asan.

Only in China, their involvement was blocked.

The four major grain merchants who are repeating their old tricks in China's soybean industry are obviously no longer satisfied with soybeans as supplementary grains. They have begun to extend their hands to well grains.

Just like these developing countries in Pakistan.

Since the founding of the People's Republic of China, economists have been arguing endlessly about whether China should rely on imported food.

But the consensus reached in the end is that staple food must be independent, and non-staple food can be appropriately dependent on imports.

The "food defense war" has never ended.

That's why the scientist from Yuan Zhou's family was so highly regarded.

Because his contribution to China cannot be explained in a few words. Although agriculture is insignificant compared to science and technology, it is actually closely related to everyone.

Even in the 2020 trade war, soybeans have always been the Americans' weapon against China.

If the staple food is in their hands again, it will no longer be very dangerous, and it will shake the foundation!

The reason why countries like Pakistan have become the dog-legs of the United States is because their foundation is firmly held in the hands of others. If they are disobedient, the people will probably starve to death. This is definitely not alarmist.

In fact, Western countries have always done this.

"Are you...really only 18 years old?"

Yang Weichao finally raised his head with some bitterness and looked at Yuan Zhou who had just talked.

If the words he just said were coming from the mouth of a billionaire economist, Yang Weichao would not be so surprised at all, but the person in front of him is an 18-year-old high school student!

"If it's true, I'm 18 years old!"

"You want to ask why I know so clearly about 130, right?"

"Father, like son!"

"I am looking at the problem from the perspective of a bystander, and you are already in this game. If I were not a high school student and entered the society, I might not see it so thoroughly and profoundly!"

“The primary issue now is to stop domestic soybean crushing groups from signing an agreement with the U.S. Department of Agriculture!”

"If you sign the contract, then...it will be too late!"

Yuan Zhou said this sentence almost word for word. Yang Weichao did not answer immediately. It was not until the old man's voice rang in his ears that he said: "I will transfer your analysis to the upper level!"

"If all the reasoning in your above story is true, then you have really made a great contribution!"

Yang Weichao took a deep look at Yuan Zhou, but Yuan Zhou took out a document from his computer bag: "This is a follow-up evaluation I made on this procurement case, please hand it in together. !"

Yang Weichao was already a little shocked.

This young man actually guessed everything.

This kid is simply better at calculating than Zhuge Liang!

"Okay, I'll hand it over!"

“I really benefited a lot from this meeting!”

"Thanks!"

Putting things first, Yang Weichao did not stay any longer. He stood up and said hello to Yuan Zhou, then hurried out of the box.

He must report the documents and matters as soon as possible.

If it's too late, the entire domestic soybean industry will be in doom!

This is definitely not a joke.

But things will really change!