Chapter 263 Tianhe's Rivals
Guo Yang was stunned.

He really didn't notice the sanctions this time.

If the RMB appreciates, it will definitely be an unfavorable factor for Jiahe's exports of forage, agricultural machinery and other products.

But at the same time, domestic grain exports will also be affected, with domestic storage costs reduced and foreign grain purchasing power increasing.

This is real good news for Jiahe Grain and Oil’s current strategy.

Guo Yang is very sure that the subprime mortgage crisis, financial crisis and food crisis will definitely happen.

In fact, we can already see some signs of this.

The US sanctions were intended to limit China's rise, but the outbreak of the financial crisis once again made its purpose fail. It has to be said that national destiny is really a mystery.

Unexpectedly, Qu Yang actually revealed valuable information.

Therefore, it is definitely not possible to work in isolation, and we still need to maintain communication with people.

Guo Yang hesitated for a moment and said, "I still stick to my judgment. There will definitely be a global financial crisis in the next two years."

Qu Yang no longer hesitated. Although they enjoyed considerable treatment and dividends, the boss was the real helmsman.

Tianhe must respond immediately!
Qu Yang said: "Tianhe is also accelerating its entry into the American and South American markets, and will try to set up sales offices, wholly-owned enterprises, joint ventures and variety licensing. At present, a wholly-owned scientific research institution has been established."

It is not easy to expand overseas markets. Guo Yang thought about it and then said:
"We can refer to the practice of DuPont Pioneer, which is to conduct independent research and development, form joint ventures with local companies, and use their marketing channels and brand advantages to sell products."

Qu Yang's eyes lit up. This was indeed a very good way.

"it is good."

Guo Yang asked another question: "How is the progress of the merger and acquisition?"

"It's OK. We have won several small seed companies with outstanding scientific research capabilities, such as Sanrui Agriculture. The biggest gain is Tunyu, but we are still going through the procedures."

"Tunyu's equity is complex. In addition to employee control, in order to go public in the past two years, it also introduced shareholders such as Huaxia Agricultural University, Huaxia Academy of Agricultural Sciences, and Provincial Construction Investment."

Guo Yang raised his eyebrows and said, "There is no chance that Tunyu will be listed on the market."

"Yes, Tunyu's performance has been struggling in the past two years. There is no possibility of listing at all. Its purpose is still to raise funds."

瞿阳叹了叹气，“天禾看上了屯玉的科研实力，其在全国建立了4个研究中心、5个生态育种站、1个研究所、1个南繁工作站、50個生态试验站。

There are 68 series of varieties below, involving corn seeds, cotton, rapeseed, fruits, medicinal materials, flowers, grasses..."

Both of them were sitting in the car at this time, and there were not many people in the parking lot.

The purpose of Tianhe's merger and acquisition is ostensibly to expand its market influence, but in fact the most important thing is the germplasm resources reserved by each company.

Tunyu was originally reformed from a county-level original breeding farm and has this kind of resource foundation.

"There is nothing wrong with choosing to store jade, and you don't necessarily have to seek full control."

"Originally, we could have controlled the company, but the province opposed it, so now we can only control it indirectly."

Guo Yang said: "This is the situation in China. Local protectionism is prevalent, and no leader wants the enterprises under his jurisdiction to fail first."

“How much money do I have to invest?”

"At least 4000 million yuan will be needed."

Guo Yang was stunned. The price didn't seem expensive. "Then there's nothing to worry about. This amount of money can be considered as a reward."

I didn't communicate with Qu Yang for long because he was busy socializing with dealers in the evening.

But this short period of communication has brought Guo Yang a lot of benefits, and there should be no problem with the direction of Jiahe.

If Golden Harvest Group can successfully get through these two years, it will really take off.

……

In the year 2006 which is about to pass, China's corn seed market has undergone earth-shaking changes.

Tianhe Seed's marketing and management model has been emulated by other companies.

In order to compete for the market, corn seed companies have tried their best, but when the quality is similar, the most commonly used means is still price war.

Under this fierce competition, a group of small-scale and weak enterprises gradually withdrew from the market.

Industry concentration has been improved.

But it also caused panic among major corn seed companies, and they are seeking change.

Longping High-Tech.

Liu Shi smiled and shook hands with a white man. "Mr. Levi, I hope this cooperation will bring rich profits to both parties."

The white man Levi looks friendly and amiable on the surface, but he is actually quite arrogant.

This is Limagrain.

One of the top five seed companies in the world.

"Liu, Lihe 16 is a fine variety selected after many years of planting experiments. It is extremely suitable for planting in the fourth and fifth temperature accumulation zones."

"This seed will definitely sell well in Northeast China and North China, making us a lot of money."

The two looked at each other and laughed.

Looking forward to a better future.

Liu Shi was of course aware of Limagrain's strength.

Entered the country for many years.

A grain research and development company was established in Shanxi, bringing in advanced crop germplasm technology.

Lihe 16 is the latest achievement.

Its father comes from Europe and its mother comes from Northeast China. It is early maturing and of high quality, and its maturity season is staggered with that of Tianyu, the popular new variety.

Europe is far ahead of China in terms of breeding level and corn yield.

Now that he has obtained the authorization from Lihe 16, the shadow of Liu Shi missing out on Tun Yu has disappeared.

Corn seeds are highly commercialized and their market is larger than that of rice seeds. If Longping High-Tech wants to achieve growth, it must win the corn seed market!
...

Compared with Liu Shi, Li Denghai is not so optimistic.

In his opinion, Xianyu 335 is already an extremely excellent seed, but Tianyu No. 1 is always above him.

After more than two years of promotion, the promotion area of ​​Xianyu 335 has reached one million mu.

Originally this result was pretty good.

But with Tianyu 1 in the lead, it is difficult for Xianyu 335 to meet the original expectations, and it has not met Pioneer's expectations.

Li Denghai was also meeting with an American, Livas Paul, the head of Tieling Pioneer Seed Co., Ltd.

Li Denghai said: "Mr. Paul, we are facing difficulties now, and the cooperation between the two sides should be more honest."

Paul shook his head and said impatiently: "It is impossible for Pioneer to open its core technology to you."

"But now Xianyu is facing strong competitors, and its market promotion is not going smoothly."

"You have to be patient. It's only been two years. China's seed market is big enough. We are already making a lot of profit."

"It will only get harder in the future. You know the quality of Tianyu No. 1."

Paul looked unhappy. Originally, he looked down on the Chinese seed industry because there were few pragmatic breeders here.

It's more of a love of fame.

Denghai Seeds is already a leader among them and has an excellent R&D system.

That is why Pioneer would give priority to cooperating with Denghai, just to take advantage of its sales channels.

However, no one expected that the Xianyu 335, which took more than ten years to cultivate, would face strong competitors as soon as it came out.

This made the entire Pioneer company feel very uncomfortable.

However, compared with the market, preventing technology spillover is obviously more important.

Paul pondered for a moment, then laughed and said, "Tianyu No. 1 is excellent, but it also has flaws, and the Chinese market is becoming healthier."

Li Denghai was stunned and asked, "What do you mean?"

"The parents of seeds are like source code. In China, when breeding companies hand over the parents to farmers, it is easy for unscrupulous seed companies to take advantage of the situation and buy some parents from farmers at low prices for rapid breeding."

"This is the case with Xianyu 335. There are many seeds of our decks on the market."

Li Denghai blinked unnaturally. The large number of seeds in the Xianyu 335 deck was not unrelated to their sales strategy.

Paul was not aware of this and said, "But now China is stepping up its efforts to combat counterfeit cards, which makes Pioneer willing to invest more money in research and development."

Li Denghai said: "So we need to have deeper cooperation in research and development."

Paul shook his head and said, "That's impossible. Tieling Pioneer will still conduct independent research and development. Once there are results, it won't be too late to discuss cooperation."

Li Denghai frowned. He really didn't expect that foreigners attached so much importance to core technology.

Yes, whether it is for Monsanto or DuPont Pioneer, as long as they have core technology, it is just a matter of making more or less profit.

Li Denghai secretly thought about a way out.

Foreign seed companies have been reluctant to expand into China because of counterfeiting.

But in fact, the companies that suffer the most from counterfeiting are not foreign-funded seed companies, but domestic companies.

If the quality difference is not much, domestic companies that actually do original research and development will be hurt.

It is already very difficult for domestic companies to produce a good product. If counterfeiting and copying prevail, it will be difficult for them to survive.

This is bad money driving out good money.

Li Denghai deeply understands this feeling.

Because among the major seed companies listed in China, only Denghai Seeds and Longping High-Tech truly have independent research and development capabilities.

If Tianhe Seed Industry’s aggressive anti-counterfeiting efforts prove effective, the country will introduce revised relevant systems within one or two years.

Logically speaking, R&D companies such as Denghai should kowtow to Tianhe.

Research and development is the way out.

Focus on breeding research and development in specific areas.

Li Denghai clarified his ideas.

The future may not necessarily get worse. Perhaps only Tianhe can lead China to break through and achieve the revitalization of the seed industry.

But this does not affect Denghai's imitation of Tianyu No. 1. Imitation is not counterfeiting, and it also requires technical content.

Most people are not at that level yet.

...

At the same time, Beidahuang Kenfeng also reached a cooperation with Germany's KWS and obtained the authorization of Demeya No. 1. So far, several major domestic corn seed companies, including Denong, Denghai, Shazhou, Longping, Kenfeng, etc., have seen the presence of foreign capital.

Make efforts in R&D, variety and other fields.

Of course, there are also companies like Fengle that are used to buying and have no interest in research and development.

Because of the country’s determination to crack down on counterfeiting.

International companies such as Pioneer, Monsanto, Syngenta, Limagrain, and Charoen Pokphand have also increased their investment in China.

For every high-quality technology product, multinational seed companies invest hundreds of millions of dollars and a lot of time.

In the past, if you invested so much and it was copied by others within a year or two, such a loss would be unacceptable to most companies.

Now, the determination shown by the Chinese government will be verified in just one or two years.

No company is willing to give up on the world's second largest seed market.

It's time to show your R&D strength.

……

Beijing, China Seeds Deka Seed Co., Ltd., also known as Monsanto.

"Is Tianmian 20 a seed independently developed by Tianhe? It's not a counterfeit?"

Li Ai from the Regulatory Affairs Department nodded confidently and said:

"The technical department has also verified that Tianmian 20 and insect-resistant cotton 33B have no correlation and are not genetically modified varieties."

"How is this possible!" Alan exclaimed.

Li Ai remained unmoved.

"The survey results show that the yield is high, the quality is good, and the disease and insect resistance are also good. Tianmian 20 has become popular in Xinjiang Province this year."

"Go and do your work!"

Paul Allen's face turned pale instantly. The bulk of Monsanto's revenue in China comes from cotton seeds.

Next is the vegetables and soybean seeds from Seminary.

The cotton bollworm is the most annoying insect in cotton.

Monsanto's insect-resistant cotton 33B is a genetically modified seed bred through biotechnology that specifically controls cotton bollworms.

It can reduce the amount of cotton pesticides by 50% to 60% and increase the yield per acre by 20%.

However, after long-term use, although the cotton bollworms were eliminated, other pests such as aphids, red spiders, and whiteflies emerged.

Farmers still have to buy pesticides.

The corresponding pesticide providers are Monsanto and its partner BASF.

Make money by buying seeds, make money by buying pesticides, this is Monsanto's invincible weapon around the world.

Moreover, China's huge cotton gap is an obvious fact, and this huge gap can only be filled by imports.

Monsanto controls the cotton market in India.

We also have partners in America.

In the United States, the subsidy rate for cotton production is as high as 89%, which means that for every 100 yuan of cotton produced, the government subsidizes cotton farmers 89 yuan.

It is highly competitive internationally.

Therefore, Monsanto can make profits throughout the entire process.

There are also companies in China that produce insect-resistant cotton seeds.

In recent years, all links of China's cotton industry, from upstream to downstream, have united to fight against Monsanto's insect-resistant cotton.

However, Monsanto is not very worried. Although its market share of insect-resistant cotton has decreased, China also produces genetically modified insect-resistant cotton.

Correspondingly, the larger the area where insect-resistant cotton is promoted, the more profitable its pesticide business will be.

Now, Tianmian 20 has suddenly emerged, which is superior to insect-resistant cotton 33B in terms of both yield and quality.

This horrified Paul Allen.

Monsanto’s perfect profit chain was broken.

Alan's fingers were tightly grasping the document, which contained a comparison between Tianmian 20 and insect-resistant cotton 33B.

Excellent fiber quality, resistant to Fusarium wilt and Verticillium wilt…

These are not found in insect-resistant cotton 33B.

Alan gritted his teeth and tore the document into pieces, with scraps of paper flying everywhere.

It’s Tianhe Seed Industry again!

It’s bad enough that the vegetable seed business is being squeezed, but now they’re causing trouble for the cotton seeds!
Damn it!

As annoyed as Monsanto is Shenzhen Genesis GM Company, a pioneer in domestic GM products.

In China, Genesis believes that its genetically modified insect-resistant cotton is comparable to Monsanto's products.

The Genesis is half the price.

Following in the footsteps of Monsanto, Genesis has gradually entered markets such as India, CIS, Pakistan, the Philippines, and Australia.

However, now his home was suddenly robbed.

The Corps' major customers abandoned it one after another within just one or two weeks, which directly hit Genesis's main artery.

Tears are about to come out.

...

In Shouguang, Syngenta's seed and seedling operating income also saw a sharp decline this year.

Especially the bell pepper seeds, which originally occupied 80% of the Chinese market share, but now has been cut in half.

Fortunately, the competitors did not engage in price wars blindly, but instead launched new categories of seeds, including vegetables and flowers.

This makes Syngenta even more depressed.

This means that breeding research and development has been overtaken.

Fortunately, Syngenta has many main varieties.

Sweet peppers, hot peppers, small watermelons, melons, tomatoes, cucumbers, zucchini, cauliflower, broccoli, spinach, spring cabbage, kale and radishes have become well-known varieties in China.

There are also tens of thousands of flower varieties and a large number of garden seeds and seedlings.

If you have the guts, take away the entire market.

……

Ministry of Agriculture, Seed Administration, Seed Industry Development Division.

An office meeting is in progress.

"Monsanto, DuPont Pioneer and Limagrain are also planning to enter the southern breeding market."

"So far, eight global seed giants have rented land in Sanya, Ledong and Lingshui, Hainan, to carry out crop seed breeding."

"Limagrain is going to invest 4.5 million yuan in Zhangye to build a seed base, which is the largest foreign investment."

“Monsanto has made new investments in biotechnology companies in the country.”

"There is also news that Syngenta is preparing to acquire 49% of the shares of Sanbei Seeds..."

Pieces of information were laid out on the surface.

Everyone looked at each other.

Someone couldn't help but ask: "Isn't the pace too fast?"

Wu Dengming, the host of the meeting, smiled and said, "Why worry? We haven't relaxed our policies."

"The crackdown on counterfeiting has shown results. Foreign investors have gained confidence in the domestic market environment and have naturally taken the initiative to accelerate their pace of investment in China."

“This proves that the market is healthy.”

“It is conducive to promoting breeding innovation.”

Some people also worriedly said: "Will the domestic seed market be divided up by foreign capital as a result?"

"That shouldn't be the case. If you really can't bear it, you can still use the deck."

Director Wu raised his eyebrows: "This idea is very dangerous. Don't worry, the domestic seed industry system is not that fragile now."

“Rice is our strong point.”

"Corn, cotton, vegetables... a complete research and development system has also been formed in China."

"The most important thing is that we also have Tianhe Seeds, which gives us the capital to compete with multinational seed companies."
-
Jiuquan.

The undercurrents in the domestic seed industry did not affect his daily arrangements.

After saying goodbye to Qu Yang.

Guo Yang first went back to the villa to change his clothes, then went to the private gym and started exercising.

After a burst of sweat.

I just felt a lot more relaxed.

We also had dinner in the villa, with various boiled vegetables and food, all delicious and tasteless.

After dinner, I leisurely surfed the Internet.

Take a look at Tianya Forum, and you will see some bloggers starting to share their entrepreneurial experiences in the agriculture section.

It attracted a lot of attention.

There are people growing vegetables, raising fish, raising ducks and chickens, raising snakes, and running orchards. All kinds of people show the vitality of domestic agriculture.

Guo Yang was also browsing a post about a netizen raising ducks, and his various failed experiences attracted the sympathy of many netizens.

Many people began to give him advice.

Suddenly, a message from a Beijing-based netizen caught Guo Yang's attention.

"Raise ducks that lay red-heart duck eggs, especially red-heart salted duck eggs. They have high nutritional value and sell very well in supermarkets in Beijing. I often buy them to eat."

"Nothing nutritious about it. They are all fed with red feed."

Red-heart duck eggs, red feed.

Guo Yang instantly thought of Sudan Red.

(End of this chapter)