Chapter 529: Backhand in Europe
“From the perspective of not being internationally competitive, the agriculture of island countries is a failure.”

In the headquarters office of Jiahe, Guo Yang looked at Masumi Kakiki jokingly.

“Even with tariffs of 1000 percent, farmers are still not satisfied, and only South Korea can match this in the world.

Just because of a serious rice blast, the rice supply of the entire island country was affected. Such agricultural production capacity has built a high wall of agricultural product trade protection.

It seems that in the island country, Marubeni is far inferior to Nokyo."

Kakigi Masumi's expression changed, "The Agricultural Cooperative is indeed powerful and will import agricultural production materials, but they are very cautious about liberalizing the import of agricultural products.

With the help of Keiretsu, Marubeni has liberalized agricultural product trade to a great extent.

The gradual decline in agricultural production in island countries is also related to the impact of low-cost foreign products.

As for rice blast, it occurs every year, with major outbreaks occurring every once in a while, but the impact is not long-term.”

Guo Yang pursed his lips and didn't take it seriously. He was very confident about the rice blast disease he created this time.

This is a gift exclusive to the island country.

Rice blast, which only occurs on a large scale in a land environment with high radiation levels, spreads at an extremely exaggerated speed.

At present, there seems to be no solution.

"So Jiahe has no plans to change its partners for the time being."

Guo Yang looked at the confident Masumi Kakigi and said, “But in the long run, if we want to solve the fragility of island agriculture, the agricultural cooperatives are a hurdle that must be overcome.

Moreover, if the scale of cultivation cannot be effectively expanded, island agriculture will gradually die out.”

Kakigi Masumi pondered and said, "Your country also has this problem. The arable land is fragmented and the small amount of land used for cultivation leads to a much lower return than other industries."

Guo Yang smiled and said, "Huaxia is different. Huaxia has large farms, and the most important point is that all the land in our country is publicly owned. Farmers have 30-year use rights and can continue to use it after the expiration of the period.

Without agricultural organizations like the Farmers’ Cooperative, the resistance to land transfer will be much smaller than yours.

And now we are a food exporter.”

Kakigi Masumi was stunned.

He still has some inertial thinking and believes that China is as intensive and meticulous as the island countries.

Once the economy develops and the gap between industry and agriculture widens, China's small peasant model will be broken. However, China's land mechanism is more flexible and the speed of large-scale land management is very fast.

In island countries, land is privately owned, and due to some historical reasons, farmers in island countries also have a strong attachment to land.

Even if the land is abandoned, few people sell it.

In addition to those who directly abandon their land, there are also some who just treat agriculture as a sideline business.

This brings up a new problem. A large part of the island country's land, which could have produced two crops a year, ultimately only produced one crop of food, and the land utilization efficiency was very low.

Specialization and scale of production are the only way for agricultural development in major countries.

In terms of yield levels, the island nation's agriculture is very strong, but the fragmented arable land makes the cost high.

The income from farming a small piece of land cannot be compared with other industries in the city.

At the same time, internationally, countries with low labor costs or large-scale agricultural production are completely crushed.

Therefore, the island countries dare not let go completely.

Marubeni has never thought of completely relaxing the control. Importing so much grain from China every year is already terrifying enough.

If even the staple food, rice, is controlled by China, the entire country will have no power to resist.

Masumi Kaki said somewhat sourly: "China can become a major grain exporting country thanks to companies like Jiahe."

"Maruben is also OK." Guo Yang filled the teapot for Shiki and said with a smile, "But you have to get rid of the agricultural cooperative first."

Kakigi Masumi shook his head. "This is too difficult. The political status of the Agricultural Cooperative is too high. Those politicians wouldn't dare to do that."

Guo Yang said: "If the Agricultural Cooperative has problems, I think there may be such an opportunity now."

Kakigi Masumi was surprised.

Guo Yang did not keep it a secret, "The Agricultural Cooperative's business covers a wide range, but it only makes huge profits in the banking and insurance industries, and uses them to make up for the deficit in agricultural-related businesses.

As far as I know, the large-scale rice blast in the island country this year has caused many agricultural cooperative insurance groups to face a cash flow crisis. "

"You mean insurance?" Kakigi Masumi said puzzledly, "But once the rice blast is alleviated next year, this crisis will be gone."

"This crisis won't be so easy to ease." Guo Yang pondered, "It may even get worse."

Masumi Kakigi's face suddenly changed, and for a moment it even flashed through his mind whether Jiahe was behind this.

Guo Yang noticed this and said, "This was not discovered by Jiahe. Many experts in your area should have noticed that the rice blast disease in the past two years is a bit unusual.

I think Marubeni can do something about this. Agricultural cooperatives may be in big trouble and may even have to turn to Keiretsu for help.”

Kakigi Masumi frowned and thought for a while, "We can give it a try."

"This is your business. Jiahe will not be involved. However, I heard that your country has increased its food imports from Eastern Europe and reduced the amount imported from Jiahe?"

Kakigi Masumi nodded awkwardly, "The Ministry of Agriculture, Forestry and Fisheries has import quota requirements in various countries."

This statement can only deceive ghosts, but Guo Yang didn't say much.

What he cares about is the entire island market.

The reason why he made an appointment with Kakigi Masumi was to attack the Agricultural Cooperative.

In order to maintain and increase the value of the agricultural cooperative's insurance fund, it will invest in assets all over the world: funds, stocks, futures, and even real estate bonds.

In recent years, the overseas investments of agricultural cooperatives have not been very successful.

In the past two years, the island country suffered a snowstorm, and nearly 100 agricultural insurance groups experienced capital constraints.

This time the rice blast disease has a wider range and is more harmful, and the agricultural cooperatives are under great pressure to pay insurance compensation.

But rice blast will continue to evolve.

The insurance compensation pressure on the farmers' cooperatives will only increase. It would be more effective to dig a financial hole for them at this time.

The Agricultural Cooperative is likely to be destroyed.

No, the agricultural cooperatives passed on the crisis, but prices on the entire island nation were on the verge of collapse.

After Masumi Kakigi left, Bi Qiang came back from the island country and told Guo Yang about the current situation of rice blast in the island country.

"The island nation's rice production will not recover for several years."

"That's exactly the answer I needed."

Bi Qiang felt very happy to be able to push the island country into the abyss with his own hands, "When can we solve this problem?"

Guo Yang: "That day is not far away, but in addition to the island nation, there are other enemies that we need to deal with at the same time."

Bi Qiang: "I understand. It's South Korea."

CJ Corporation and South Korea are naturally also within Golden Harvest’s hunting range, but Golden Harvest’s targets are far more than that.

...

At the end of the hot summer, the northern hemisphere has generally entered the harvest season.

But one family is happy while the other is sad.

China's food supply remains as stable as ever.

Rice production in the neighboring island country of South Korea has suffered a severe blow.

Ryuta Konishi, the president of the Central Federation of Agricultural Cooperatives of the Island Country, compiled a document and invited two other partners: Shimo Kamei and Masaki Matsumoto.

Shimo Kamei is the president of the Federation of Agricultural Cooperatives, in charge of the circulation and trade of agricultural products.

Masaki Matsumoto is the chairman of the Norinchukin Bank, which manages financial business and is one of the largest banking groups in the island nation. Ryuta Konishi said: "According to the data collected from the grassroots agricultural cooperatives, the rice production has been severely reduced this year. More than 70% of the farmland has experienced varying degrees of reduction in production, and 20% has no harvest. The grassroots agricultural cooperatives are already organizing yield measurements and preparing to apply for insurance compensation.

We are under a lot of pressure.

There is a rice shortage in the country now, so the Ministry of Agriculture, Forestry and Fisheries has just released grain reserves, but is now considering raising import quotas.

Kamei Shuang said: "If we release it, the price of rice will inevitably fall, and our losses will increase!"

"We won't agree to import a large amount of rice." Xiao Xilongtai sighed, "But rice blast is a natural disaster, and insurance compensation is inevitable!"

They both looked at Matsumoto Masaki, who murmured, "If there is a subsidy, we can survive this year."

Konishi Ryuta: "What about next year?"

Masaki Matsumoto: "If next year is still like this, I think I should quit."

In fact, Matsumoto Masaki has only been in office for a short time. The previous chairman suffered a major setback in his investment in bulk agricultural products and resigned long ago.

Ryuta Konishi and Shimo Kamei looked at each other.

“Compensation must be paid, otherwise the Agricultural Cooperative will lose its credibility among its members.”

"But import controls and tariffs must be strictly controlled, otherwise the deficit in circulation will be out of control."

“That means prices will continue to rise significantly.”

“We can only make the people suffer a little more.”

When faced with a choice of interests, the three major agricultural cooperatives in the island nation quickly made a choice.

"Let's wait until next year. The rice blast disease should be under control next year."

North America,

Monsanto is on its last legs, but farmers still hate it no less.

Especially at harvest time, the occasional super-resistant weeds that appear are still a reminder of Monsanto's crimes.

In order to deal with these weeds, farmers' production costs increased by more than 40% and crop yields also decreased significantly.

South America,

The shrublands that disappeared decades ago in the Cerrado grasslands seem to be reborn, and farmers are also suffering from resistant weeds.

In the sugarcane and cotton shock that began in India a few years ago, a large number of farms in South America went bankrupt and changed hands.

Industrial capital from China controls a large number of farms in South America.

But this does not change the fact that South America's agricultural production capacity is also declining.

Romania, Ukraine,

Thanks to investments from Chinese companies such as Jiahe, Romania and Ukraine's food production capacity is increasing, and their agricultural sectors have also had a comfortable two years thanks to high food prices.

However, these good days came to an end when it became involved in political struggles.

Western Europe,

The agriculture of old Europe is still very strong.

However, what's the point of fighting? Most of the crops are cash crops, and there is not much food available for export.

And Western European agriculture was not without its troubles.

After being out of the laboratory for a while, Guo Yang had a thorough understanding of Jiahe's situation.

Business overseas has encountered some resistance, but the global food crisis is still intensifying.

As long as this condition exists, Golden Harvest will always have a market overseas.

At the same time, as China has replaced a large portion of grain exports, some other major agricultural countries are also adjusting their planting structures.

So the global food supply has not collapsed.

In this process, Huaxia and Jiahe, which controlled the largest sources of grain, both gained huge benefits.

Moreover, its political influence has become stronger in some countries and regions.

Some countries, such as island countries and South Korea, are becoming increasingly dependent on China for food.

As long as domestic control is implemented, these countries and regions will be in great trouble, and the panic caused by food shortage will sweep the world.

----

It's the end of October.

Guo Yang came to Lan City and appeared in the research center of Quanwang Biology, where bags of new feed additives were placed together.

"Provimi's performance is also good."

"Without the EU's restrictions and plunder, Provimi would have already defeated other European feed giants."

Yu Qin looked at the bags of feed additives one by one and said, "With these products, Provimi can send billions of RMB of net profit back to the upstream of the industry chain every year.

If all purchased raw materials are included, this number can be doubled or tripled.

If there were no EU restrictions, the Provimi industry chain would bring hundreds of billions of yuan in trade to China every year.”

"I'm satisfied." Guo Yang laughed and said, "The EU has taken our plants, so they will definitely pay a price."

Yu Qin: "I haven't seen that yet. I just see that the livestock in the EU are getting stronger and stronger."

Guo Yang smiled and stared at Yu Qin: "In fact, I told you a long time ago, you can't be unaware of the abnormality."

Yu Qin remained calm and said, "I do have a question. There are two new feed additives that are very effective, but they are strictly prohibited from being sold in China."

Guo Yang spread his hands and said, "Look, I've already told you the truth, but you were just playing dumb."

After a moment of silence, Yu Qin asked, "What consequences will it cause?"

Guo Yang: “Foot-and-mouth disease.”

Yu Qin raised his eyebrows and said, "Both developed countries like Britain and the United States have completely eradicated foot-and-mouth disease, so it is unlikely to pose a threat to them."

"That's not necessarily true." Guo Yang asked, "How long have the two new types of feed been on sale?"

Yu Qin: “About three years.”

"Then it is widely used throughout the developed Western countries, and the final outbreak is approaching."

Guo Yang was very frank and did not hide the fact that it was Jiahe who did it in front of Yu Qin.

He believed that Yu Qin had guessed it long ago.

Guo Yang patted his shoulder and said, "Don't go abroad in the near future. Let Provimi develop on its own first."

Yu Qin smiled and said, "I didn't plan to go either. I've been hanging out with Ge Wenyao these past two days. Jahwa is now at its peak and unstoppable. Its market value is heading straight for 2000 billion."

Guo Yang asked, "Is Ge Wenyao still working on his fashion industry?"

"Yes, perhaps the only failure of Jahwa is that it invested in fashion industries such as watches and jewelry, which have never improved. Fortunately, the quality of daily chemical and beauty products is strong enough."

"The fashion industry is indeed not doing well." Guo Yang said with a smile: "But since we promised him in the beginning, let him do it. Anyway, he has earned back the money dozens of times."

"What are you saying about me behind my back?" Ge Wenyao suddenly appeared outside the door.

Guo Yang was a little surprised. Yu Qin's words were really sincere. "We are waiting to see you mess with the Fashion Industry Group."

"I can't do it any more."

Ge Wenyao said: "I came to the northwest this time because I wanted to resign. I will feel relieved to hand over Jiahua to Jiahe."

(End of this chapter)