Agricultural giant since 1983

Chapter 359 Tetra Pak
After seeing the success of Huafeng and Luhua, COFCO showed great sincerity and expressed its attitude from the very beginning. It is no problem to cooperate with Huinong to enter the dairy market, but there are still many problems before discussing the specific cooperation methods. There is work to be done, such as the two parties explaining their plans for the future development of the dairy industry.

Today’s meeting was held at Jingxin Building in Beijing. Since 1991, COFCO’s headquarters has been working here, so it is COFCO’s home field. Naturally, COFCO will explain its plan first, and this time there is no need to speak highly The president personally told the story. A well-mannered man wearing gold-rimmed glasses who looked like an elite at first glance stood up, turned on the projector, and began to talk about COFCO's plan. This is COFCO's department manager Lian Jun.

Lian Jun first talked about the development status of China's dairy industry, "At the beginning of the founding of New China, the national milk output was only 20 tons, and the per capita milk share was only about 0.4 kg. Last year, the national milk output has increased to 576.4 million tons , the per capita milk consumption has increased to 4.76 kilograms. According to our judgment, the total milk production in the country will increase by more than 50 tons every year in the next few years! The future development prospects are promising, and COFCO and Huinong are entering the game at the right time!"

Li Lei nodded slightly after listening. The people in COFCO are still capable. This judgment is basically correct, but the growth rate is higher than they expected. In the next few years, except for the accident in 1997, the growth in the rest of the years will be at Over 60 tons. By 2000, the country's total milk production had risen to nearly 800 million tons, which had increased by half in a few years.

"At present, the total number of domestic dairy cows is 447 million, of which XJ, NMG, HLJ, Hebei, Shandong, Shaanxi, and Shanxi account for three quarters, totaling more than 330 million; these seven provinces are also major milk producing areas , of which HLJ accounts for 20.00%, NMG [-]%, XJ [-]%, Hebei [-]%, Shandong, Shaanxi, and Shanxi are all between [-] and [-]%! So if we want to enter the milk industry, We must seize these three provinces!" Lian Jun pointed to HLJ, NMG and XJ.

"Coincidentally, when Nestlé first entered the Chinese market, it was also HLJ. They established a company in Shuangcheng, the hometown of milk in China. However, although Shuangcheng has a large number of dairy cows, most of them are free-range dairy farmers. Each family has only a few cows or even one or two cows, and most of the milk they produce is sold to state-owned enterprises, so the development of Nestlé is not smooth!"

Lian Jun continued to talk eloquently, "In terms of business, the two largest dairy companies in China are Bright Dairy in Shanghai and Yili Dairy in NMG. Yili's spending power has long occupied the first place in the country; Yili was originally a dairy farm affiliated to the Inner Mongolia Agricultural Reclamation System, and then gradually developed and expanded under the leadership of Zheng Junhuai, and was successfully listed on the Shanghai Stock Exchange in March this year. Very fierce, since we want to enter the dairy market, we must pay attention to these two competitors!"

Hearing the word Guangming, Li Lei looked at his glasses subconsciously, and the name Yili Zheng Junhuai was also familiar to him. Niu Gensheng is also in Yili now, serving as Zheng Junhuai's deputy. Later, because of conflicts with Zheng Junhuai, he left to start Mengniu, and thus worked in NMG. A situation of two heroes coexisted; Niu Gensheng's departure did not delay Yili's pace of becoming the number one in the country, but Zheng Junhuai was imprisoned for embezzling public funds shortly after Yili reached the top, and Yili was replaced by Pan Gang. The contradiction between the three people almost runs through the entire history of China's dairy industry.

"In terms of products, most of the milk products on the market today are fresh milk, milk powder, condensed milk, ice cream and low-temperature milk, but the sales of room-temperature liquid milk are growing rapidly, so after we entered the dairy market, in addition to producing existing products In addition, we must also focus on the production technology of room temperature liquid milk.”

COFCO’s plan is to focus on Inner Mongolia and HLJ. Although XJ has relatively rich resources, it is too far away from the main consumption area and the relevant supporting facilities are backward. It is not suitable for large-scale investment for the time being. Now you can focus on it and wait for conditions to be suitable. Time to move on to the XJ.

In terms of milk sources, they prefer to buy milk from dairy farmers instead of contracting their own pastures for large-scale farming, because the cost of doing so is relatively high, and COFCO does not have much money yet.

As for products, just like Jinsi Glasses said just now, they are very optimistic about the development of room-temperature liquid milk, because the transportation and storage costs of low-temperature liquid milk are relatively high, which is not conducive to large-scale commercial promotion.

"Huh la la la!" COFCO's plan was finished, and there was warm applause at the scene. On the whole, this plan is still good. It has thoroughly analyzed the current situation of the dairy market, and its judgment on the future is relatively accurate. Planning more reasonable.

"President Li's comments?" Mr. Gao and others looked at Li Lei with a smile on their faces. They also thought the plan was good, and it would be difficult for Hui Nong to come up with any fresh ideas.

"Don't worry, I have something to say now when I report the plan later, so it's better to listen to our plan first, and then we can discuss it together if you have any different opinions or questions!" Li Lei rejected the proposal. Proposed, and then signaled Zhao Lang to come to the stage to report.

Zhao Lang was a student whom Li Lei spent a lot of effort poaching from the Central Plains Agricultural College. The university majored in animal husbandry. After arriving at Huinong, he first followed Li Xinwang to raise pigs, and then began to raise cows. Several dairy farms, producing milk to supply the food factory and the people in the surrounding areas; Li Lei trained him and several others as the heads of the dairy business department early on, so he sent them to the Netherlands, New Zealand and other developed dairy industries in the middle The national investigation and study, and now let him appear on the stage to show his ability to COFCO. Fortunately, the new company that will be established will hold an important position.

Zhao Lang did not fully follow the PPT. He skipped what Lian Jun said just now, and then focused on the differences. First, he expanded the focus of the company's future layout from NMG and HLJ to Inner Mongolia and HLJ. , Hebei three provinces, "Although the current dairy cow stock in Hebei is only more than half of that of NMG, the milk output is only 20.00% less than that of NMG. This shows that Hebei has good breeds of dairy cows and high milk production. , SJZ, Chengde, Langfang and other places have pastures that are very suitable for raising dairy cows.”

"Sanlu Dairy in Hebei is now developing rapidly. The urban-rural joint model of cows going to the countryside and milk entering the city they promote is very innovative. The sales volume has also increased very fast in recent years, which is enough to prove the potential of Hebei Dairy. At the same time, because Hebei is more It is close to dairy consumption areas such as Beijing and Jinmen, so it is also helpful to save shipping costs by including Hebei as the focus.”

Hearing this, Li Lei sighed secretly. Later generations Hebei replaced XJ as the third largest milk source base in the country, and the dairy industry war started from Hebei, and Sanlu was one of the participants. Their urban-rural joint model certainly allows them to Obtaining milk sources at a lower cost also brings about quality control issues. Dairy farmers and milk stations have released the demon of melamine for profit, leading to the complete collapse of the reputation of Chinese milk powder.

In addition to the differences in key areas, Zhao Lang also put forward different views on dairy farming, "Cooperating with dairy farmers to carry out free-range farming can certainly reduce investment, but there are also disadvantages, such as milk quality control, dairy breed breeding, etc. According to my experience in As a result of my investigations into dairy developed countries such as the Netherlands and New Zealand, I am more inclined to contract pastures for large-scale breeding, first to introduce foreign high-quality dairy breeds, and then to cultivate my own dairy breeds for unified management and unified breeding.”

He showed the leaders of COFCO the photos taken in modern dairy farms in the Netherlands and New Zealand. Here, a large farm with tens of thousands of cows does not require too many workers. Modern automatic equipment can help the cows to be milked, and then Convey the milk into the storage device.

"The initial investment is indeed high, but as long as it is put into use, the average cost per bottle of milk is lower than that of free-range farming, and the quality of the milk source is relatively consistent, so there is no need to worry about adding other things to the milk. It is also conducive to ensuring the uniformity of product quality.” Zhao Lang used detailed data to analyze the two modes of free-range and centralized breeding, and the advantages of centralized breeding are very obvious.

As long as the automatic milking equipment he mentioned is not as advanced as later generations, but this technology is not unattainable. In the future, a company called Changfu Technology Innovation will develop automatic milking equipment. Cows feel their breasts engorged I would walk to the milking house by myself instead of milking in the morning. While reducing labor, the output increased by more than 30% without affecting the quality of the milk. Unfortunately, Mengniu and Yili affected the policy during that time. Businesses were not allowed to run dairy farming at the same time, and the company quickly went under.

Now if Li Lei and COFCO join forces to do this, with the influence of this company, the tragedy like Changfu Technology will definitely not happen. Can their influence on policy be as great as COFCO and Huinong combined?

The faces of several leaders of COFCO are not very good. Of course, they can see the benefits of this model, but the investment is too large. COFCO has no money now. If this model is adopted, then in the newly established dairy company, Their shares will definitely be overwhelmed by Huinong, which they don't want to see.

Zhao Lang went on to say that he also mentioned the problem of room temperature milk, and he was more detailed than what Lian Jun said, "If you want to produce room temperature milk, there is a problem that must be solved, and that is the problem of aseptic packaging. Now there is no milk in the world. 90.00% of the bacterial packaging market is controlled by Tetra Pak of Sweden! Almost all milk companies must buy their products, and if we want to produce room temperature milk, we must also import it from Tetra Pak!”

"The current strategy adopted by Tetra Pak in China is to sell half and give half away. Because the current enterprises in China are short of funds and backward in technology, they cannot afford to sell at market prices. Therefore, their main purpose now is to cultivate the market and wait for these in the future. Enterprises can raise prices when they have money, Tetra Pak provides low-cost production equipment filling machines, and is willing to help Yili formulate sales strategies, while manufacturers must purchase sufficient quantities of packaging during the contract period.”

"There is no problem in a short period of time, but if you take a long-term view, you will find that in ten years, all dairy companies will work for Tetra Pak, and most of the profits of dairy companies will be eaten by Tetra Pak. , Tetra Pak earns more money than dairy companies! This situation is unacceptable to us, so the packaging factory under Huinong started research and development of milk packaging technology very early, and now it has achieved initial results! In fact, Tetra Pak Their technology is not insurmountable, they can occupy a monopoly position mainly because of their scale advantages, and their products of the same quality are definitely not as cheap as theirs.”

"It is not impossible for us to catch up with Tetra Pak in this respect. The dairy company that COFCO and Huinong will establish will inevitably be the largest in the country, and the annual demand for milk packaging will also be astronomical." In the future, every time Mengniu sells a pack of milk, Nearly [-]% of the profits belong to Tetra Pak, and Mengniu has nothing to do, because they and Tetra Pak are deeply bound, but now, Huinong still has a chance, "If we use our own products from the beginning, in the short term The cost may be slightly higher, but in a few years, our packaging cost will continue to decrease, while that of Yili and other companies will continue to increase. More importantly, we maintain our independence and will not be subject to Tetra Pak! "

"In addition to milk packaging, Tetra Pak's filling technology is also advanced, and the Tetra Pak filling machine can only identify its own packaging. Once it is found that customers secretly change other packaging, Tetra Pak will know, and then directly terminate the filling line. Supply of spare parts, forcing customers to re-purchase their packaging! This is a common method used by Tetra Pak in many countries.” Tetra Pak suffered many antitrust investigations in the future.

"So we also have to work hard in this regard. First try to buy canning production lines of other brands, or force Tetra Pak to make concessions through Tetra Pak's eagerness to enter the domestic market! Then develop our own production line." Zhao Lang also had some words I didn't say it, but the leaders of COFCO understand that China can use the market to obtain high-speed rail technology in the future, and now it can use similar methods to obtain canning production line technology.

After Zhao Lang's plan was explained, COFCO's leaders were silent for a while, because comparing the two plans, anyone with a discerning eye could see which one was better. Zhao Lang's plan was undoubtedly more detailed and in-depth, and more in line with what COFCO wanted to do. National No. [-] ambition.

But although the plan is good, it will cost money. The new company established according to this plan will undoubtedly require a lot of investment. They only need to do some calculations to know that this investment must exceed COFCO's expectations.

"Mr. Li, is this step too big?" Mr. Gao had no choice but to say.

(End of this chapter)