Chapter 479 Monsanto's Solution
In addition to the U.S. Department of Agriculture raising the yields of various crops, other organizations such as Oil World and Infoma also raised the yields.

It seems that the Americans have temporarily solved the problem?
Guo Yang did not think too much about it. No matter whether it was India's increased production or America's increased production, in short, the four futures funds all made considerable profits.

The end result is the same.

Even if the United States' agricultural production capacity is fully restored, its impact on the domestic market will be weakened. It will also be a problem for it to find a market to absorb its excess agricultural products.

But can the caltrops really be solved so easily?

It was just past 10 o'clock, which was about 6 pm in California time. After thinking about it, Guo Yang finally contacted Qu Yang.

“How does Monsanto solve the problem of weeds and fire ants?”

"I have learned from Li Yang that Monsanto still uses the same combination of seeds and pesticides. They first developed a chemical pesticide that can kill Tribulus terrestris, and then found a gene sequence that is resistant to this chemical pesticide and implanted it into soybean, corn and cotton seeds, thus selling pesticides and seeds at the same time."

Guo Yang was surprised and asked: "What chemical pesticides?"

"Boss, you must know that BASF developed dicamba in the 20s, but Monsanto calls it an upgraded version of Roundup Ready."

Qu Yang seemed to be gloating, "They are not solving the problem, but creating the problem first and then solving the problem. They have never forgotten how to make more money from beginning to end!"

BASF started out as a dye manufacturer, but in the 19th century, along with companies such as Bayer, it ushered in the era of synthetic organic chemistry.

Dicamba is a powerful herbicide developed by the company.

But compared with Monsanto's glyphosate and Syngenta's paraquat, dicamba is more volatile!
Guo Yang asked: "Has dicamba been approved for use in the United States?"

"Not yet. The EPA has concerns about pesticide volatilization and has not approved the spraying of dicamba during the summer growing season of dicamba-resistant crops."

"But Monsanto came up with a solution. In order to comply with EPA regulations, Monsanto put a pink label on the outer packaging of seeds, reminding farmers not to spray dicamba on these upgraded Roundup-resistant crops."

A warning label is futile; people will always spray dicamba, whether it is legal or not.

Guo Yang also understood Monsanto’s thoughts.

Monsanto certainly knew about the drift properties of dicamba and the damage it would cause to surrounding farms and ecosystems.

But it sees it as an advantage that can force farmers to buy these seeds.

Because drifting dicamba could also harm soybean, cotton and corn farmers who do not use Monsanto's genetically modified seeds.

If they wanted to protect their crops from dicamba drift, they would have to use Monsanto’s new seeds, which made the crops resistant to both Roundup and dicamba.

After thinking it through, Guo Yang was almost speechless. Monsanto was able to develop into the world's largest seed trader, it really did everything it could!
"Perhaps Monsanto has already figured out how to deal with Tribulus terrestris and is just thinking about how to maximize profits. By the way, what about red fire ants?"

"It's similar to dicamba. It's not a good thing anyway."

Qu Yang hesitated for a while and said, "Boss, do we really want to 'save' American agriculture? What Monsanto is doing is like a ticking time bomb. It will explode sooner or later!"

What an irony!

He is clearly the culprit, but now Tianhe and Quanwang’s solution has to make him play the role of savior.

Guo Yang held the cell phone in his right hand and a corn cob in his left hand. This was something Luo Xiu had specially found for him. It was so thick and big that he could hardly hold it with one hand.

After thinking for a while, he said, "Can crops planted with Tianhe seeds withstand the volatilization of dicamba?"

"It may not be stopped, and the EPA is likely to approve Monsanto's new dicamba formulation."

Ok.

Monsanto created problems while also solving them, just as it did with Agent Orange and glyphosate.

The problem of American agricultural production was solved in the short term.

But it also laid a greater hidden danger.

Even if Tianhe and Quanwang wanted to play the role of "savior", they were still not qualified.

Existing products cannot block dicamba!

Tianhe's seed crops will be killed by dicamba as weeds, and Quanwang's natural enemy insects cannot resist chemical pesticides.

Guo Yang pondered and said, "Forget about saving American agriculture. Our goal is to make money. There are many farmers who resist Monsanto. Tianhe and Quanwang can establish their image as 'saviors'."

Qu Yang said: "Indeed, Monsanto is facing more lawsuits now. If the victims of grain damages may become potential customers of Monsanto, then the fruit tree growers are simply suffering from misfortune."

Guo Yang asked again: "The pesticide residue of dicamba is not low, right?"

"There is no authoritative data yet, but it should be high."

"Then there will be a bigger market for organic agricultural products. Tianhe and Quanwang should work harder on this market. Didn't they recently acquire Irica Seeds? How's that going?"

"We are still bidding. It's a bit difficult. The main competitor may be Limagrain."

"Well, it's up to you."

Tianhe and Quanwang have actually achieved certain results in the North American market, and the promotion area of ​​the two has reached more than two million acres this year.

But now there is another shadow.

Tianhe and Monsanto's sphere of influence are very close, both in Illinois, with the distance between St. Louis and Springfield no more than 150 kilometers.

The original intention was to uproot Monsanto, but now there is a possibility that they will suffer the consequences.

It’s a bit difficult to stretch!

The only option is to settle for the next best thing, try to establish a corporate image, play the role of "savior" to the end, or move to other states.

When the dicamba explodes, Tianhe and Quanwang will jump out.

This means that even without his intervention, Monsanto might end up killing itself.

However, the United States' agricultural production capacity has indeed recovered a lot as a result, and global food production capacity may be in excess again.

As for whether or not to give the Americans some eye drops and cultivate some special seeds, Guo Yang thought for a moment and decided to change the plan slightly.

It cannot simply be destroyed.

We should learn from Monsanto and create problems first and then solve them, so that Jiahe can maximize its profits.

If Monsanto hadn't developed dicamba, Tianhe and Quanwang could also solve the problem, but in comparison, they are not strong enough.

If it happens again, there must be a strong solution!

But where to start from?
After the call with Qu Yang, Guo Yang thought for a while and had a vague idea that Monsanto had developed an upgraded version of Roundup-resistant seeds.

Can we continue to build on this foundation? He thought we could give it a try.

The whole morning passed like this. When I went to the cafeteria for lunch at noon, I could feel that there were fewer leaders coming to eat.

This is because the autumn harvest season has arrived again, and the seed production base, sea buckthorn, Xanthoceras sorbifolia, soybeans, forage grass, etc. have all reached the harvest season.

People like Yan Qun, Fei Xiaofeng, Xie Shijie and others often stay in the countryside.

Lunch was as sumptuous as usual, with meat, vegetables, fruits, and inland seafood, which is now more common in Jiuquan.

After a hearty meal, Guo Yang went for a walk on the rooftop farm again. He didn't see Lin Keqing, so he guessed that she had gone to the nursery of Jingjing Horticulture again.

Jingjing Horticulture has also developed very well this year and has taken on a lot of real estate projects.

After walking around, Guo Yang returned to the office, took a short rest, and then went back to work.

Regarding increasing investment in the seven European countries, each company had come up with a draft in advance to discuss it at the meeting, and Guo Yang learned about it in advance.

Mainly focusing on business development, Tianhe's seeds, Quanwang's organic solutions, Jiahe Grain and Oil's food, Hexi Dairy's dairy products...

All are trying to find a better way to enter the European market. And Guoliang's acquisition of Noble and Nidera Agriculture has been stuck as expected, and no international investment can be found.

After the United States increased its agricultural product output today, the prospects for these two mergers and acquisitions are even less optimistic.

However, Ning Gaoning didn't say anything, so Guo Yang pretended not to know about it.

In the afternoon, after arranging several follow-up meetings, Guo Yang wanted to take a break from his busy schedule and watch "Aerial Photography of America".

As soon as I opened it, Li Rucheng from Yageo called me.

"Mr. Guo, domestic and overseas cotton futures prices have fallen sharply in the past two days. Is this related to Jiahe?"

Guo Yang rolled his eyes. "You think too highly of Jiahe. Jiahe can't affect the U.S. Ministry of Agriculture. I said this was an accident. Do you believe it?"

Xiaohan and other four funds have always been short positions, so it is not difficult to investigate Li Rucheng and others. However, the cotton price plummeted after they added positions in recent months, which makes it hard not to suspect that it has nothing to do with Jiahe.

"Believe it! If Youngor hadn't invested in Jiahe, its financial report for the next year would not look good."

"Well, be prepared. Foreign cotton prices will probably not rise in the next two years."

"Yes, the textile industry is becoming increasingly difficult. Fortunately, the product quality has improved, otherwise we would not be able to compete with foreign counterparts in price."

Li Rucheng felt inexpressibly grateful.

If the U.S. cotton production capacity is restored, a price difference may form between domestic and foreign cotton.

Under the sliding scale tax system, the textile and garment companies are the hardest hit.

Nowadays, investing in cotton futures funds can hedge risks relatively. Yageo has invested 25 billion yuan and can even make a fortune.

After Li Rucheng, Sun Weiting and people from Guannong and Xinnong Development also came to congratulate and inquire about the changes.

For companies in the cotton industry chain, the unexpected factors from the Americans are a risk that is neither big nor small.

Like Li Rucheng, these people are fortunate to have escaped the disaster. With the financial guarantee of futures, the company's ability to resist risks has been greatly enhanced.

Afterwards, Guo Yang also contacted Ji Linchuan from the cotton company, as the domestic cotton production was once again a bumper harvest this year.

The incident of CBP seizing Xinjiang cotton at the beginning of the year also came to an end.

In fact, it is not that America has become honest, but that it has changed its target and is imposing cotton sanctions on Uzbekistan.

Uzbekistan is known as the country of 'white gold', which is the synonym for cotton.

In cotton export trade, Uzbekistan surpassed the United States, which had weak production, in the past two years and became the world's largest cotton exporter.

It has taken away a lot of market share from the United States.

Last year, the company was subjected to cotton sanctions by the Western international community, which smeared it worldwide for the existence of forced labor.

This boomerang circled around Xinjiang cotton and finally hit Uzbekistan.

In addition to the bumper harvest of Xinjiang cotton, Ji Linchuan predicts that cotton production in Shandong, Hunan, Hubei and other regions has rebounded, mainly due to an increase in yield per unit area.

This is thanks to the promotion of Tianhe's new cotton varieties.

However, domestic cotton bases are still rapidly shifting to Xinjiang Province, and the output and quality of Xinjiang cotton are more competitive.

Domestic production is increasing. The United States, formerly the world's largest cotton producer, is recovering rapidly, and production in other cotton-producing countries such as India and Brazil is also increasing.

Australian cotton production is also at a high level.

Just thinking about it, Guo Yang also anticipated how cruel the cotton market would be in the next two years.

Suppressing Uzbekistan is just the beginning. The next one may not necessarily be Xinjiang cotton. The emerging Indian cotton may become the new target of public criticism.

Guo Yang and Ji Linchuan talked the longest on the phone this afternoon.

The oversupply of cotton is felt around the world, but the unexpected factor of India may make the shorts extremely strong and the reversal more violent.

Guo Yang told Ji Linchuan to be prepared for the impact and not to worry about hedging. He should just be bearish, slow down the purchase of spot goods and open short orders for futures.

Not only this year, but also next year and the year after, we must be prepared for a bearish outlook.

When Guo Yang's eyes returned to the computer page again, it was already six or seven in the afternoon. The page was still paused on the aerial view of the United States and he didn't see it for even a minute.

He clicked Continue and planned to watch for a while, when Lin Keqing called again.

"You haven't finished get off work yet?"

"Right away. Are you done? Where are you? I'll pick you up."

"On the roadside not far from the gate, I saw machines harvesting sea buckthorn berries."

"Okay, I'll be out right away."

The computer was turned off and there was nothing to pack, so Guo Yang put on his suit, took the keys from Luo Xiu, and walked out the door.

Within the Jiuquan area, Luo Xiu doesn't have to follow him all the time.

The sea buckthorn forest had long been covered in a sea of ​​orange and red. The rumbling sound of the vibrating harvester had attracted many people to stop and watch. Lin Keqing was one of them.

He was so engrossed in watching that he held a branch in his hand and occasionally picked a fruit and put it into his mouth.

Guo Yang saw it and honked the horn lightly, "It's not sour."

Lin Keqing came back to his senses and said, "It's not sour."

Then he sat in the passenger seat and picked a big round sea buckthorn for him. "Try it, it's not bad."

Guo Yang looked at her suspiciously, opened his mouth, and Lin Keqing fed him at the right time.

"Hiss...this isn't sour."

Guo Yang put on a mask of pain and looked at Lin Keqing in disbelief while he was still eating.

"It tastes a bit sweeter!" Lin Keqing said with a smile, "The taste of seabuckthorn fruit is much better than when I was a child. It used to be sour and astringent. Even if it was processed into juice, it was far inferior to the current seabuckthorn fruit. Seabuckthorn fruit has become a favorite of young girls."

"That's right, natural whitening is not just a boast."

"But there are so many whitening products at home, but you haven't gotten much whiter!"

"It's become a lot whiter, okay..."

Through the rearview mirror, Guo Yang saw his face, handsome and handsome, but far from being white.

I have even been going to the countryside more frequently recently, and sometimes I forget to apply sunscreen, which causes me to get a little tanned.

"You know how dark you are now, so you should eat more sea buckthorn fruit, drink more sea buckthorn white, and don't be lazy about sunscreen. You have to apply it even when you go to the countryside..."

"When I become whiter than you, you will be unhappy again."

"Ha, do you think that's possible?"

"Hum..."

"Don't just hum, you have to roll it up like you're doing work, show me how white you can be."

"I scared you."

"Just be tough."

After arguing for a while, Guo Yang put his work aside and enjoyed his time peacefully.

(End of this chapter)