Lux's Farewell

701 [0691] Commercial competition

701 [0691] Commercial competition
Looking at the Shurima trade in Demacia, the most important link is the large-scale and high-priced export of domestic surplus food.

In the past, Demacia's high-quality grains were always unsalable due to shipping costs and purchase prices. With a huge loss rate, the grains were sent to the port city of North Shurima, where they were bought by local merchants. After that, they could barely balance their accounts. Over time, the Demacians naturally cut off their interest in participating in international trade.

However, with the use of Ning Wu Dao, Jarvan IV and the nobles of Demacia finally realized that the grain transported from Demacia to Shurima is not without price advantages, and its cost is still significantly lower than that of local Shurima grains ——It’s just that the purchase price of Demacia’s grain in the northern Shurima port city is too low, and Demacia has no local grain sales and distribution channels, which makes Demacia’s grain seem to be worthless Advantage.

In other words, it is actually profitable to transport Demacia's grain to Shurima, but this part of the profit was eaten up by local grain merchants in the past, so Demacia felt unprofitable .

Therefore, Demacia used force in Nashilam, and while showing off its muscles, it also hoped to open up the Shurima market.

Demacia is not interested in the barren Shurima desert, but after the baptism of Shurima trade for ten years, the royal family and nobles of Demacia are very interested in Shurima's commodity grain market.

After the battle of Nasla America, Demacia has indeed successfully expanded its grain market - the grains shipped from Demacia are distributed in Nasla America, traded on the east, west, and south routes, which can Going deep into Shurima, although its profits are relatively limited at present, as long as Taric finds another channel like Ning Wudao, it will be another golden business route.

It's a pity that although Jarvan IV's abacus was cracking, before the Demacians could gain a firm foothold, the main grain-producing areas in Eastern Shurima, led by Karduja and Kumanggra, officially announced It was stated that the price of food has been greatly reduced, and it is clear that there will be a food price war with the Demacians.

Simultaneously with the food price war, there is also an open letter from "Nash Latin American port governor in exile" Blake.

In the letter, Black is still based on the standpoint of the Great Shurima strategy and the Shurima trade cycle that he has always advocated, and also adds the content of opposing religious interference in the secular world.

In addition to the consistent rhetoric in the past, he also criticized the Sun Sect and the Bright Moon Sect very fiercely.

In this part, Blake can be said to be full of golden sentences.

"Fanatic religious people have no country, hometown, or family. Their only loyalty is sacrificed to gods who don't know the name, and then they foolishly take pleasure in suffering!"

"Open your eyes, fellow Shurima, look at those Rakkor people living near Mount Targon, do you really envy their lives?"

"Regardless of the Sun Sect or the Bright Moon Sect, their ultimate goal is to turn you into those muddle-headed Rakkor people!"

Although Black's military level can only be described in words, he has to admit that although he can't understand the criticism of weapons, he is quite handy in using the weapons of criticism-he directly grasped the key to the problem, combining the giant god believers and The identities of the Shurima people are in opposition, and they are compared with the living conditions of the Rakkor people. Anyone who thinks about it carefully will feel subtle.

Moreover, this time he was not talking empty words. After Blake fled to Calduja, he indeed persuaded the local Governor of the Harbor and started a food price war with Demacia on his own initiative!
So how did Blake convince the harbor governor of Karduja?

It's very simple, he just simply talked about the price of food in Demacia, and described in detail how the Demacia people were calm and had no logistical pressure during the siege.

In the past, the food alliance formed by Karduja and Kumanggra almost controlled the price of food in most parts of Northern Shurima. The food produced here was transported to North Shurima by sea and land. Each city-state has filled more than 70% of the commodity grain market.

Kaku is cooked, Shurima is full, no exaggeration.

But now, the arrival of the Demacians has given Karduja and Kumanggra a huge sense of crisis.

Any business is best done when it is a monopoly.

Karduja and Kumanggra have long been used to exchanging needs, jointly manipulating food prices, and even using food as a weapon to seek political interests for themselves, but now, Demacia, a foreign dragon, suddenly appeared, and Karduja He and Kumanggra will naturally feel vigilant.

Black is aware of this, so he focuses on the logistics of the Demacians-think about it, their food is transported to Uzeris, and then transported across the desert to Naslamme, which can support their siege, Now that they have the springboard of Nashi Lamei, they dare not think about what big moves they will make in the grain trade next!
The governors of Karduja and Kumanggra didn't care whether Nashilami fell or not.

But will the Demacians use Nashilami as a springboard to enter the food market of Shurima...

They care about this very much!
Therefore, although he did not say it bluntly, Blake, who was in exile, still successfully aroused the rejection of Shurima by Karduja and Kumanggra people, coupled with his consistent adherence to the Great Shurima strategy and the Shurima cycle Trade, and finally Karduja and Kumanggra finally made up their minds to fight a price war with the Demacians.

Taking advantage of the fact that we now have a mature grain trade network, we will attack the Demacians on grain prices, so that the Demacians will not be able to sell grain in Shurima, and even if they sell it, they will lose money!
It seems that this is a pretty crazy choice. With two cities against one country, no matter how you look at it, it is Karduja and Kumanggra who can't hold it first.

But in fact, Karduja and Kumanggra are quite confident in themselves.

As for the source of this confidence...

Kumanggra and Karduja are perhaps the best preserved production facilities from the Shurima Empire in the entire Shurima region.

Although many automatic puppets and agricultural machinery power sources during the Shurima Empire were forced to downgrade, they became human, animal power and semi-automatic drives.

But in terms of agricultural productivity, Kumanggra and Karduja can proudly say that "everyone here is rubbish".

Stable temperature throughout the year, crops that are ripened three times a year, high-efficiency agricultural production, inherited agricultural technology, mature grain sales network...

In the past, Karduja and Kumanggra have been reserved in order to maintain food prices and profit margins.

Even in the past 50 years, only during the Ionian War, in order to make money from the Noxians, they worked a little bit harder and expanded the scale of planting a little bit-the grain of the Noxus at that time In addition to those provided by local state farms, most of them are imported from Kumanggra and Karduja.

Throughout the entire Ionian War, Noxus used millions of manpower at its peak, but logistical supplies—especially food supplies—had almost never had any problems. Food productivity can be seen from this.

Now the Demacians moved their cakes...

Then don't blame them for being serious!

........................

At the very beginning, when Karduja and Kumanggra announced their attack on food prices in Demacia, Jarvan IV hadn't realized the seriousness of the problem.

The two city-states dare to challenge Demacia in terms of food?
Where did you get your confidence?

But soon, Jarvan IV saw their confidence.

Throughout northern Shurima, food prices plummeted in all regions from Uzeris east.

It's not a drop of [-]% or [-]%, but the market price of grain in more than [-]% of the area is directly cut in half, and the price of grain in more than [-]% of the area falls to transportation costs.

Thanks to the Shurima Empire, most city-states in Shurima have varying degrees of official restrictions on local markets and trade. However, due to years of cooperation and the use of force by Demacia as an outsider , the city-states have acknowledged the drop in grain prices, and have chosen to use Kumanggra and Karduja grain prices as the basis.

On Demacia's side, the first batch of grain that had just arrived in Nashilam and was about to enter the market was directly hit, and more than 3000 ships, totaling nearly [-] million pounds of grain, were directly smashed into their hands.

This is not finished.

Because of the subtle timing, after the victory in the Battle of Nasherama, nobles from all over Demacia are ready to seize this opportunity to make a fortune. They have just taken the initiative to expropriate the grain in the territory at a relatively high price, and many Farmers in Demacia have exchanged their grain reserves for cash. They never expected that the price of Shurima grains would plummet to the center of the earth just after the grain was expropriated...

What's worse, even Uzeris, who has cooperated with Demacia for many years, has obviously become a little ambiguous.

On the one hand, they happily sold all kinds of goods to the Demacia people, but on the other hand, they also actively lowered the purchase price and selling price of the grain. Demacia can spend money here, but don't even think about making money here!

Looking at the entire Shurima region, it seems that only the Targon line in the west is still receiving food from Demacia!

But now is not ten years ago, and it is not the time when a Golden Wheel Village can satisfy the appetite of Demacians.

How can it be possible to fully satisfy the Demacians who have already prepared for the grain export trade only by relying on the market of a few Rakkor people?
If there is no grain export trade, where will the market environment with high prices for Demacians go?
Seeing that the situation was getting worse, Jarvan IV found Barrett and started an urgent discussion.

However, even as the royal family's purse, Barrett has nothing to do when faced with this situation.

This kind of situation...he has never seen it before!

The Shurima trade in Demacia in the past ten years has indeed flourished like flowers and flames, but at the same time as this prosperity, the business level and management theory of the Demacians have not improved much, and their business methods have not improved. commendable.

Faced with a sudden challenge now, Barrett has no such experience, no matter how experienced he is!
After thinking about it, the most stable solution he can provide is to contact Tarik first, let him find out the situation of Kumanggra and Karduja, and then decide whether to go to the end with them.

It was also at this time that Jarvan IV finally realized that he didn't seem to understand Shurima.

........................

Tariq's operations and investigations will take time.

Unfortunately, time is not on Demacia's side.

With the start of the food price war, Demacia, which had been booming economically for the past ten years, suddenly seemed to be slammed on the brakes, and the economic situation quickly became delicate.

The nobles who hoarded a large amount of food and were about to take advantage of the Shurima trade to make a fortune began to worry.

No one wants to hold such a pile of grain in their hands and sit and watch it get moldy. There is an endless stream of people making generous speeches on the side of the noble council.

Some people think that Demacia's food should be concentrated, and the food price of Shurima should be directly bankrupted-these are often people who don't have much food in their hands, and they hope to rely on those who have already hoarded food to open the way for themselves .

Some people think that we should follow the old story of Nashilami and use Demacia's sword to open the way for Demacia's food. This kind of opening, the proposers of free trade often have a lot of contact with the army, or they have hoarded a lot of food and waited for it. sell.

Some people think that they should go directly to Karduja and Kumanggra to solve the problem at the source - if it was placed ten years ago, absolutely no one would have thought that Demacia would one day have this Noxus-style radical figures.

Some people think that what is lost in the south and what is taken in the east should be used to manipulate food prices in Valoran in the way of the Shurima people-this trick seems to be quite effective, and it should be effective if it is used for the Principality of Valoran , Food, who is it not sold to?

Jarvan IV, who originally hoped to get some inspiration, felt dizzy after listening to the two episodes.

Sure enough, only small meetings can be held for major matters, and arguing in the noble council is to mess with oneself.

The helpless Jarvan IV could only find a few of his most confidantes to discuss the next countermeasures - Tariq has already gone to investigate the situation, what else can we do before he comes back?

Barrett, who had already talked to Jarvan IV, fell silent.

Galen looked confused and had no idea what Jarvan IV was talking about.

After thinking for a while, Lan Fu asked a question.

"Does the royal family want to buy the food hoarded by the nobles at a low price?"

This is a very interesting question.

At this time, buying the food hoarded by the nobles at a low price means that the royal family will bear all the risks and will get all the profits in the future. Should Jarvan IV take a gamble?
Jarvan IV frowned upon hearing this.

After a long while, he finally shook his head, then nodded again.

"The royal family won't do everything." Jarvan IV said in a delicate tone, "but...maybe someone else can do it?"

 It's over, the family is getting positive for the second time...

  It is estimated that I will also be hit, so hurry up and save the manuscript.

  
 
(End of this chapter)

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