Rebirth of Rural Literary Life

Chapter 706 Soybean Strategy
When He Ping arrived in Beijing, it was 11:[-] p.m. Beijing time, which was midnight.

Also arriving on the same plane were two staff members from the Ministry of Foreign Affairs and the Ministry of Commerce, two government staff members who gave great help during the listing process of Good Farm Group. thing.

Do a good job of docking for Good Farmer Group and Renmin Bank.

Once Goodfarmer Group went public, the amount of financing was as high as 26 billion yuan, but this is not the most important thing. The most important thing is that the money is US dollars.

5.5 million dollars!

Forex!
It has been one of the most scarce resources in China's development for decades.

Let’s talk about numbers. In 1987, China’s foreign exchange reserves amounted to US$20 billion.

The amount of funds raised by a company is equivalent to a quarter of the foreign exchange reserves of such a huge country as China. Goodfarmer Group has now become a big fat in the eyes of the People's Bank of China, and it is coveted.

Before returning to China, He Ping received a phone call from relevant leaders, hoping that Good Farm Group could use its own foreign exchange funds to help the country's construction.

According to our country's regulations, our country adopts a compulsory foreign exchange settlement system, which means that the foreign exchange imported and exported by enterprises must be subject to the management and constraints of the foreign exchange administration.

In recent decades, the international settlement currency has been the US dollar as the main settlement currency. The currency obtained by an enterprise exporting goods overseas is generally US dollars, and these US dollars cannot directly reach the account of the company, and must go through the SAFE. The mandatory conversion of RMB can only reach the account of the enterprise after being converted into RMB.

But the situation of Goodfarmer Group is different. First, the amount of funds they raised in America is very large. Second and most critical, as a company listed in America, Goodfarmer Group’s investment behavior is very important. It is not controlled by the government to a certain extent.America advocates the free market, there is no capital control, and American knives can enter and exit freely.

Goodfarmer Group has now raised more than US$[-] million in funds. Of course, they can choose to invest in China, but if they choose to keep the money in overseas markets for global development, it is not a problem.

After all, they have just been listed in America. Even if they keep all the money overseas for investment, there are legitimate reasons.

They are all listed in America. We are a global company, and of course we have to invest globally.

Therefore, now that the People's Bank of China is begging Good Farm Group, He Ping will naturally become the government's guest of honor.

After He Ping arrived in the capital, he had a rest for the night, and then met the vice president of Renmin Bank and the director of the SAFE Bureau, and the other party made a request straight to the point.

Before He Ping came here, he already knew that this was a doomed negotiation, and he came here to sell favors.

"Goodfarmer Group is an enterprise that has developed by taking advantage of the reform and opening up. If the country needs it, we are obliged to do so!"

He Ping spoke very well, and finally decided to invest nearly four-fifths of the funds raised by Good Farm Group, that is, US$[-] million, into China.

Anyway, what he told the American investors at the beginning was to invest at least [-] million US dollars in technology research and development, plus some other domestic investments, [-] million US dollars is not too much.

As for the remaining US$1.5 million, it is He Ping’s ammunition left for an important business of the Good Farm Group that needs to be developed in the future-soybeans.

Many people don't understand why a broken soybean is so important, and why it will become an important business of Goodfarmer Group in the future.

So let's take a look at the uses of soybeans.

First, as an oil plant, soybeans can be pressed to produce soybean oil, which can also be used to make biofuels in addition to food.

Second, soybeans can be used to make high-protein foods such as tofu, which is one of the main meals on the Chinese table.

Third, soybean meal is produced after soybean oil is pressed, which is an important feed ingredient for chickens, pigs, dairy cattle and other meat and poultry farming industries.

Fourth, soybean is an international bulk commodity, and its fluctuation is very likely to affect the prices of other grains, which in turn will indirectly affect food inflation.

Fifth, fluctuations in soybean prices may also affect the formation of inflation expectations.

In addition to the influence of the last two items on the grain market and the financial market, the first three items alone are enough for Goodfarmer Group to attach importance to the soybean business.

Just to mention a few sets of data, 1996 was a watershed in China's soybean market, because from this year, China changed from a soybean exporter to a soybean importer. In the 1996 years after 10, China's annual soybean imports increased from 269.5 million tons to more than 2800 million tons, an increase of more than 9 times, far exceeding the annual production of domestic soybeans.

After the rapid development of China in later generations, China imported 2015 million tons of soybeans in 8169, and 2020 million tons of soybeans in 10033. The import volume increased by 22% in five years, and the foreign exchange dollars used for importing soybeans every year are as high as 4000 US dollars. [-] million dollars.

It can be said that soybeans play a pivotal role in China's agricultural product market. As an enterprise based on agriculture and animal husbandry, Goodfarmer Group must pay attention to soybean business just because of the existence of the group's meat and poultry industry chain.

The next 30 to [-] years will be an era of rapid improvement in China's consumption level, and the Chinese people's demand for vegetable oil and livestock products will also increase, which will definitely drive the continuous increase in demand for soybeans.

An industry whose annual direct import value is as high as US$4000 billion and indirectly drives GDP of US$[-] trillion is the cornerstone of its own main business. If Goodfarmer Group does not put a little effort into it, no one can justify it.

Even if Goodfarmer Group only grabs 1% of the profits, it is still a multi-billion dollar business, and it is still in China.Not to mention that with the current market position of Goodfarmer Group in China, a 1% market share is almost within reach.

The future imagination of the soybean business is extremely huge, how could He Ping miss it.

The use of the raised funds was finalized on the second day after He Ping arrived in the capital, and the group also responded quickly and put this part of the funds into place intensively.

He Ping’s work in Beijing is not over yet. As the first Chinese company to be listed in America, Goodfarmer’s domestic attention can be said to be unprecedented, catching up with the women’s volleyball championship in 1981 and Jianlibao in the 1984 Los Angeles Olympics. The public event that can most arouse the national self-confidence of the Chinese people.

He Ping, the head of the Good Farm Group, naturally couldn't escape the stalking and interception of the media.

Naturally, he didn't dare to neglect, so he could only accept interviews one by one.

For the next week, He Ping spent almost all of it in interviews with the media, which was more than the interviews he received during the group roadshow in America.

Those who came were all relatively authoritative media in China, and it was difficult to reject others after accepting an interview with one. He Ping just bit the bullet and stayed in the capital for a week.

After finally surviving this wave of interviews, it is considered to be returning home.

Back in Liao Province, whether it be He Ping or Good Farmer Group, dealing with the media is naturally indispensable.

Not only that, governments at all levels have given Goodfarmer Group various preferential treatments, and all kinds of free honors flocked to Goodfarmer Group and Hantun.

On the day He Ping returned to Fengcheng, leaders from the provincial and municipal governments came to greet him with a huge team of dozens of people.

"Chief Quan, you've broken me..."

"Hey, that's wrong! He Ping, this time, your Good Farmer Group has given the people of Liao Province a lot of face. No, it's not just giving us the face of the people of Liao Province, but also giving us China a big face in front of the whole world. You showed your face. You are all heroes who have won glory for the country, and we came here purely spontaneously this time."

The people around him were all department-level cadres with smiles on their faces.

Naturally, He Ping didn't take the chief's words of "coming spontaneously to greet him" seriously, and enthusiastically argued with the chief for the host of the banquet, but in the end he didn't hold back him, and took the chief's meal for a while.

After the banquet, it is inevitable to accept some interviews with media from Liaoning Province.

After another two days of delay, He Ping finally returned to Hantun.

Back in Hantun again, He Ping first met with the village committee.

The listing of Goodfarmer Group is a top priority for the village, and he, the person in charge, naturally has to report it to the village committee.

The meeting was not long, but He Ping clearly felt that the mentality and even the momentum of a large number of people in the village had changed a lot after returning this time.

He Ping in later generations often saw this kind of temperament in some people, and such people can be collectively called nouveau riche.

It's strange to say that in the past few years, the village paid hundreds of thousands or even millions of dividends every year, and there were some people in the village who were very exaggerated, but they were not as exaggerated as this time.

Most of the people He Ping saw had the look of wanting their nostrils to point to the sky, which made him want to hit them.

"These bastards are flying so badly!"

He Ping said something to the old captain seemingly unintentionally, and the old captain gave a wry smile, "Don't talk about them, I'm going to float away. One hundred million! What kind of concept is this?"

"It's a stock. It was popularized by you for nothing in the past few months. If it doesn't fall into your pocket, it is not called money. Besides, those stock villagers only enjoy the right to dividends. Our shareholding is only for the convenience of listing, Good Farmer said. After all, it is still a collective enterprise.”

The old captain gave him a relieved look, "You are still sober. Okay, old man, I saw the right person."

"Cut! Don't do this."

After reporting to the village committee, the first thing He Ping did when he returned to the group was to call a meeting of all executives.

"Everyone, the listing of the group is over. For us, this is just a phased victory. Goodfarmer Group still has a long way to go before becoming the world's leading agricultural and animal husbandry enterprise. We must cheer up in the next time Come. Because in the future we will not only face the supervision of the Hantun Village Committee and ordinary people, but also the supervision of thousands of overseas institutions and individual investors.”

"The group raised a total of 5.5 million US dollars in funds for the listing. I think everyone should understand that 4 million US dollars of this will go directly to the country after going around the State Administration of Foreign Exchange. Among them, 3 million US dollars will be used for the group's agricultural research institute. We will use the 3 million US dollars to build the Goodfarmer Group Agricultural Research Institute into the top agricultural research institution in Asia, providing the strongest impetus for the future development of the group, and allowing us to communicate with the world in the near future. No one will fall behind in the competition of top agricultural and animal husbandry enterprises."

"Another US$1 million will be used for our group's soybean business in China. Not only that, but the US$1.5 million left overseas will also be used for our soybean business in the Americas. Ladies and gentlemen, the funds used by the group for soybean procurement last year It has exceeded 2 million yuan. According to our demand, we have extremely high bargaining power both at home and abroad.

But now in China, limited by the soybean planting output on the one hand, and the existence of state-owned enterprises on the other hand, we have paid a far higher price than we actually did.

How can other people sleep on the side of the couch!

As an important raw material for food, feed and other industries, soybean is a strategic weapon that Goodfarmer Group must keep in hand.

In the future, our group will not only face competition from domestic state-owned enterprises and private enterprises, but also competitors from all over the world. Soybean is not only a weapon for us to protect ourselves, but also an important territory for our external competition.

This is a field worth trillions of dollars. Now that Goodfarmer Group has been listed, what we want to do is not only to dominate the domestic market, but also to show our talents in the international market.Soy is our first step into the international market. "

Regarding the strategic importance of soybeans, He Ping has already popularized the group's executives many times before. After more than half a year of research, the Strategic Development Department has also demonstrated the necessity and feasibility of developing the soybean business. meeting passed unanimously.

On the same day, a document about the business expansion of Goodfarmer Group went to the media. The group newly established a soybean raw material company, and appointed Lin Tingtao as the general manager of the company to be fully responsible for the American and domestic soybean business.

The soybean planting business delineated by the group is divided into two regions, domestic and foreign. Among them, the domestic region is mainly in the Northeast, and the foreign regions are mainly in America and Brazil.

These two areas were determined after research by the Ministry of Strategic Development. He Ping also has an understanding of soybean planting areas in the world in later generations. The choice of the Ministry of Strategic Development is very correct.

The most important thing is that imported soybeans from America and other places have about 2 percentage points higher oil content than domestic soybeans, which are more suitable for crushing and have considerable economic benefits.

Therefore, the group's soybean planting is mainly abroad, supplemented by domestic.This does not involve patriotism or not, it is purely determined by the profit-seeking nature of capital.

After the big strategy is decided, all that remains is to implement it. He Ping, the president, doesn't need to worry about every detail.

After being busy for more than a month, his daily working hours are almost thirteen or fourteen hours, and Iron Man can't bear it.

After the group's business affairs are finished, He Ping is ready to take a good rest at home for a period of time, and amuse children He Youyou at home.

Xiao Zhu'er has already enrolled in Beijing University, and he called two days ago. He was taken care of by Zha Haisheng and his group of "old seniors". He should not live too comfortably in Beijing University.

But before He Ping could sleep well at home, a phone call in the middle of the night woke him up.

Han Yuzheng passed away!

(End of this chapter)