Agricultural giant since 1983

Chapter 285
In the future, there will be ten major brands in China's flour market: Guchuan, Xiangmanyuan, Arowana, Hetao, Bailemai, Xiangxue, Zhongyu, Jinshahe, Wudeli and Saibeixue. [-]% of the market, and the remaining small and medium-sized enterprises will divide the remaining [-]%.

The Wudeli flour that Li Lei saw in the supermarket is one of these ten companies. The owner of this company is Dan Zhimin, who is known as the king of flour in China. Dan Zhimin is younger than Li Lei. He is only 25 years old this year. Born in a rural family in Daming County, Hebei Province, the family can barely eat enough, but they don't have much spare money.

After graduating from high school, he didn't go to university, so he went to work in a machinery factory. After working for a few years, he saved some money. He felt jealous when he saw many people in the society going to sea to make money, so he began to think about it. He really figured out something. At that time, Daming County was rich in wheat, but there was no decent flour mill in Daming County. He thought that opening a flour mill would definitely make money, and then took the money to share with his father, The younger brother opened a flour mill in the form of family joint production contract, named Wu Deli.

Why is it called Wudeli?This is the business philosophy set by Dan Zhimin for the flour mill—customers benefit, farmers benefit, employees benefit, the country benefits, the enterprise benefits, and five parties benefit, so it is called Wu De Li.

The process of starting a business is difficult. Wudeli Flour Factory encountered difficulties as soon as it was established. More than a dozen people processed 15 tons of wheat. They thought they could sell it for a fortune, but they never thought that no one would buy it at all; the flour has been backlogged in The warehouse meant that the factory could not operate normally, and the family gathered together to think hard. Finally, Dan Zhimin came up with a way to exchange grain for noodles and earn money by charging processing fees.

Dan Zhimin was afraid that everyone would think that the processing fee was too expensive, so he decided to only charge half of the market price. This model is more acceptable to farmers, because they usually have to find a place to grind the flour for themselves, and use a stone mill to grind the flour. It is far inferior to grinding flour by machine. Wudeli’s asking price is cheap, and it is fast and good. It immediately attracted many local farmers to grind flour with their wheat on their backs. Gradually, the factory began to operate normally, and Dan Zhimin’s family also made a small profit. Pen.

However, the threshold of the flour industry is not high. After seeing Dan Zhimin earning money, many people also moved their minds to open flour mills. For a while, the number of flour mills in Daming County has sprung up like mushrooms, from 2 to 36; In order to grab business, many small flour mills lowered the processing fees one after another. At the same time, in order to make profits, they began to cheat. Wudeli did the opposite and continued to strictly control the quality, whether it was flour for farmers or for others. The quality of the customer's flour is very good.

At the same time, the expansion of production scale is used to amortize the cost. The flour of those small factories is not as good as that of Wudeli, the processing fee is not as cheap as that of Wudeli, and the service attitude is even worse. How can they compete with Wudeli?As a result, small flour mills in Daming County closed down one after another, but Wudeli grew bigger and bigger. In just one year, it became the industry benchmark and established a firm foothold in the local area.

But soon, Wudeli encountered a bottleneck. The local market of Daming was almost eaten by them. If the factory wants to continue to develop, it must go out, so Dan Zhimin personally took flour to HD City to sell flour. At the beginning, no one was willing to accept them, because the grain industry likes to buy from old partners, and foreign manufacturers do not know the background, and they will be in trouble if something goes wrong.

Fortunately, Wudeli's efforts in the past two years have not been in vain. The cost of their products is much lower than that of other flour mills. Therefore, Dan Zhimin can use a large profit margin to attract grain and oil stores to cooperate. The quality of their flour is indeed good. Look at it. It is white and delicious. As long as customers buy it for the first time, they will basically only recognize their home in the future. When the grain and oil store buys goods, they only need to make a phone call, and Wudeli will deliver them in full at the agreed time. When you come to the flour, you also help them transport it to the store and code it. The price is cheap, the quality is good, and the service also beats other competitors. How can such flour be unpopular?

Wudeli quickly swept the entire HD market, and when he went to other cities in Hebei to discuss cooperation, he didn't have to work so hard. The local grain and oil stores had already heard of Wudeli's name from his colleagues, and even Without him going there, grain and oil stores in SJZ and other places called one after another, wanting to buy from him.

After winning the entire Hebei market, Dan Zhimin sent Wudeli flour to Tianjin. Tianjin is a big city with a small arable land and a large population. All flour needs to be purchased from outside, so it is not difficult to win this market; After gaining a firm foothold in the TJ market, Dan Zhimin was ambitious to enter the capital market again. This time it was not so easy, because the capital city is the center of the country, and all the big flour mills are staring at it. The market has already been saturated, but he was stunned. Relying on high quality, low price and good service, he entered the capital without any risk, and sent Wudeli flour to major supermarkets and grain and oil stores. That's why Li Lei saw this scene.

Li Lei bought a bag of Wudeli flour, brought it back to the courtyard, asked the chef to make some pasta for a taste, and then seriously began to think about Huinong's entry into the grain processing field. He didn't start before because the timing was wrong and he wanted to enter. The grain processing industry has to obtain grain, and before that, grain was purchased and sold through a unified system, and private companies were not qualified to purchase grain.

But this year the policy began to relax. In February, the Government Administration Council issued a notice on accelerating the reform of the grain circulation system, pointing out that the reform of the grain circulation system should seize the favorable opportunity, let go of prices and operations under the macro-control of the state, and strengthen the grain supply. Energize the vitality of enterprises, reduce the financial burden of the state, and further promote the commercialization of grain and the marketization of operation.

Moreover, according to Li Lei’s understanding, the detailed rules will also come out this year. The specific content includes that all grains ordered by the state will be “price-guaranteed”, that is, the order quantity will be reserved, and the purchase price will follow the market... After the grain price and purchase and sales are liberalized, the state will control the price of grain. Implement the protective price system, and establish a grain risk fund and reserve system accordingly.

Why do you do this?There are several reasons for this. First, the country’s grain harvest has been bumper for several consecutive years. The total grain output has exceeded 4.43 million tons. Last year it reached 380 million tons. I am worried that I will be hungry, so it is reasonable to let go of food circulation appropriately.

Secondly, there are many problems in the existing grain circulation field, such as rigid system, overstaffed, serious waste, corruption, low efficiency and other problems existing in the grain circulation field of state-owned enterprises.

In addition, the state once again raised the unified grain sales price last year to achieve the same price for purchases and sales. After the unified grain sales price has been raised, the operating expenses of the grain sector will still be subsidized by the government; the rations for urban residents will continue to implement vouchers, vouchers, and quantitative supply policies; for rural parity grain sales The planned supply will also continue to be carried out. While raising the unified marketing price of grain, the State Council has decided to give appropriate subsidies to urban residents.

These subsidies have also added a lot of financial burden to the country, so even if it is to reduce the burden and promote the reform of the grain circulation system, the restrictions on grain circulation should be relaxed, and private enterprises should be allowed to act as the sardines, prompting state-owned grain circulation agencies to implement reform.

Of course, there are also economists of later generations who believe that this is the transfer of market risks to farmers when the supply exceeds demand; but no matter what the reason is, the liberalization of the grain circulation field has become a foregone conclusion, although it is not fully liberalized yet. , but for Huinong, the opportunity to enter the field of grain circulation and processing is ripe.

As for crossing multiple operations, it is not a problem for Li Lei. He now needs to purchase grain to open a feed mill, and then to open a flour mill. He just needs to buy more. The Central Plains Province is rich in wheat, so it is not difficult to purchase. The wheat is pulled back and ground into flour, the wheat bran is used as feed, and the flour can also be supplied to instant noodle factories. There are even supporting plans, which is definitely more convenient than other enterprises.

Moreover, in order to help Kazakhstan's flour mill resume production, he has already reserved some talents and opened up equipment purchase channels, so he can almost go straight to work.

In addition, the sales channels of flour and edible oil have a lot in common. In the future, Arowana will span the three major markets of rice, flour, and edible oil, and these three markets have entered the top ten in the country. Yihai Kerry Why can't I do what I can?
First go back to Heyang to open a flour mill, and then go to the Northeast to look for opportunities to see if I can register a rice company in Wuchang. The business environment in the Northeast is definitely not as good as that in the South, but the feed mill and food processing that Li Lei opened before The factory didn't have any major problems, and his status has been improved now, so it shouldn't be too much trouble to open a rice processing factory there.

As for the south, it is more convenient. The top five provinces in the country for rice production are: HLJ, Hunan, Jiangxi, Jiangsu, and Hubei. In Hunan, Mr. Yuan helped to introduce. Hubei has long been familiar with the local leaders, and Jiangsu and Jiangxi are also They all have the human feelings left behind by the floods in East China, and building factories in these places is just a matter of words.

After thinking about it all night, Li Lei went to chat with Mr. Du and Mr. Tong. They also supported Li Lei's idea, "Now farmers don't have to worry about food, but it is still not easy to earn money. , Selling grain is especially difficult. Many times when selling to grain stations, the return is IOUs. These IOUs cannot be used to buy oil and salt or pay school fees for children. Therefore, introducing the private economy into the grain procurement industry can give them a little bit. Affordable."

As senior think tank experts in agriculture, the two of them are very clear about the current situation. With the current grain production, the country no longer needs to hold all the grain in its hands. It only needs to complete the minimum purchase amount every year, and the rest will be large. It can be handed over to private enterprises to purchase, process, and sell. This will help farmers get benefits, allow consumers to eat better refined grains, and stimulate state-owned enterprises to restructure and reduce government expenditures. Therefore, there is no reason not to support Li Lei do this.

The words of the two of them represent the meaning of the highest level to some extent, and Li Lei is relieved to hear what they said, but Lin Yifu put forward a different view on this policy, "It is indeed a good thing to liberalize grain circulation, but according to the current However, at the beginning of the liberalization, it is very likely that there will be a sharp increase in food."

He summed up several reasons. First of all, the state-owned enterprises did not worry about the failure to complete the purchase task, because the farmers had no other choice but to sell them grain. Now there are private companies joining the purchase, which forms competition. The farmers must be there. The price given is high and sold to the other side, so there will inevitably be a situation where both parties compete to increase the price to buy. At that time, you will increase by three points and I will increase by five points. This price increase will not stop.

Secondly, the rural population has been migrating to cities on a large scale in recent years, resulting in a structural shortage of agricultural production and supply. Although the output of food has increased, more and more people are spending money to buy food, and food prices will naturally increase. .

Finally, the grain market was relatively closed before, and local grain could only be sold to local grain stations. Now foreign companies can also buy it in the past. The economy in the south is good, the urban population is large, the demand for grain is large, and the price of grain is also high. It is obviously profitable to buy grain in the north and sell it in the south, so there must be foreign merchants coming to buy grain, and the news of the early rise in grain prices spreads rapidly through various channels, which will definitely encourage farmers' psychological expectations of price increases and their reluctance to sell.

They will not be in a hurry to sell grain but will choose to wait for the price to sell. In this way, there will be less grain in circulation on the market. Buyers can only increase the price in order to complete the purchase target as soon as possible. Seeing the price increase, farmers are more reluctant to sell, which forms A vicious circle has been created, which once again pushes up food prices.

In addition, the depreciation of the RMB proposed by Mr. Zhu will also increase the price of grain. Although the domestic grain price is 20.00% higher than the international market, but including the 50.00% depreciation of the RMB, it is still profitable to send grain to the international market for sale. 30.00% interest, although the country strictly controls grain exports, but in the face of huge interests, someone will definitely find a way, which will still cause food prices to rise.

But this has nothing to do with Li Lei. This is something that several of their experts have to worry about. Li Lei only needs to know that he can harvest wheat and open a flour processing factory.

Back in Central Plains, Li Lei chatted with Xing Shuwang and Lao Yongsheng, the parent officer of Heyang. They were very supportive in the general direction, but hesitant about the details. The biggest worry was that Li Lei's bid was too high. Affect Heyang to complete normal sales tasks.

"Don't worry about this. How much money will be paid by the Grain Bureau at that time will be the same amount from my side. If the Grain Bureau confiscates enough in the end, I will just make up the gap for them according to the purchase price!" Li Lei said so, and Lao Yongsheng was also relieved up.

Go back and make some preparations. When the three summer season comes, Huinong Company's wheat purchasing points have appeared in various towns and towns in Heyang, and they have also begun to harvest grain.

　This is today, tomorrow's update I will try to post it in normal time
　　
　
(End of this chapter)