Reborn as the richest man in India.

Chapter 201 A big drop of 5000 US dollars per hectare (seeking a monthly ticket)
"Moeller, what's the latest situation here?" Jogo asked.

On the afternoon of October 10, Jogo came to the office of the Binlin Plantation Company.

In addition to Jhogo, there were old Gupta and Meule de Maupassant in the office.

Moller Maupassant who was opposite immediately replied: "Boss, it's a great thing. The price of plantations has dropped sharply. Now the average price is 10000 US dollars per hectare. There are many more people who want to sell plantations."

"No way?" Jogo was very surprised, "What happened?"

The last time Moeller talked to him was still US$15000 per hectare. How long has it been? In less than a month, it has dropped by US$5000, which is equivalent to a drop of RM10000.

A drop of nearly one-third must have been a major event, otherwise even if there were fluctuations, it would not be so outrageous.

"Boss, it seems that you don't pay much attention to the vegetable oil market." Moeller said, "You can't do this. Since you want to do this, you can't just focus on palm oil, but also other vegetable oil markets."

Jogo was stunned for a moment, he had been lectured by Moeller.

But what Moeller said was true, and Jogo realized that it should be related to other vegetable oils.

"You're right, I was negligent." Jogo accepted humbly, "Have the prices of other vegetable oils plummeted?"

"That's right." Moeller said with a smile, "This year's global rapeseed production is high, and the beautiful country's soybean harvest is even more bumper. This has led to the suppression of all vegetable oil prices and a sharp drop. Palm oil is no exception. Almost these years The record-breaking low is even continuing to drop. Now the price of palm oil is below 800 ringgits per ton, and according to experts’ estimates, there is still room for a drop of [-] to [-] ringgits.”

Chogo remained silent. The average price of palm oil was RM[-] per ton before. If it goes down further, it will fall by half. The price drop this time is a bit exaggerated.

"Even so, you don't need to rush to sell, right?" Jogo asked. "Isn't it normal for the price of vegetable oil to go up and down? Maybe it will go up next year. What's so strange about the big and small years?"

The main factor affecting agricultural products is the climate, depending on the weather.

If the weather is good and there is a bumper harvest this year, the price will naturally be low. In the coming year, it may be bad weather, which will lead to a reduction in production or even a large-scale failure of the harvest, so the price will skyrocket.

So the plantation's reaction to this shouldn't be so big, right?
Isn't this kind of thing normal for them?

If you don't even have this tolerance, how can you do this business.

"How should I put it? Since the beginning of this year, everyone has been less optimistic about palm oil. Palm oil contains a lot of saturated fatty acids. Excessive intake will increase the risk of cardiovascular and cerebrovascular diseases. Of course, the main reason is that they are not optimistic about the future market demand. Therefore, many European companies investing in palm oil in Malaysia are selling related industries one after another. This trend is becoming more and more obvious. Therefore, adding this year’s sharp drop in vegetable oil prices has made many people lose confidence. The price of plantations It just collapsed." Moeller said in a deep voice, "Boss, I advise you to think carefully again, this investment is very risky, and it is very likely to lose a lot."

Jogo laughed in his heart at Moeller's words.

That's the best, everyone should be pessimistic, so that you can enter the market at a low price.

Palm oil does have many problems, such as the problem of a large amount of saturated fatty acids, but these problems are not a problem in front of the price, because the price of palm oil is the cheapest among vegetable oils.

Moreover, palm oil also has many other advantages, such as stable frying properties, instant noodles, and the first choice for the frying industry.

Palm oil is widely used, even if it is not used in daily cooking oil, many foods in the future will contain palm oil, such as potato chips, biscuits and so on.

Apart from this, there is also great demand for industrial uses, especially the rise of biodiesel projects, for which palm oil is the raw material.

Many reasons led to the subsequent skyrocketing production and price of palm oil.

"Have you ever heard the saying, I am fearful when others are greedy, and I am greedy when others are fearful." Jogo asked.

This sentence was said by the stock god Buffett. I don’t know if he has said this sentence now.

Moeller was stunned for a moment: "I haven't heard of it, who said it? It sounds very philosophical, but I don't think it can be applied to the palm oil industry. Those European companies that have withdrawn are very powerful. Their investigation and evaluation of an industry must be very rigorous, and since they have reached this conclusion, I believe it is well-founded."

"Maybe." Jogo said, "They have their ideas, and I have my own. If we really want to judge the direction of an industry based on any evaluation, don't they always make money? What about companies that lose money and go bankrupt? There are so many more?"

No matter how you evaluate the investigation, it is not as good as your own past life memory.

Moeller knew that his boss had confirmed the matter, and he tried his best to persuade him. It was really a loss, and it was none of his business.

"Okay, boss, although I don't agree with your views and investment, I will definitely do my duty well." Moeller took a deep breath and said.

Old Gupta couldn't understand since Jogo and Moeller spoke English, but he did know about palm oil's downfall.

After all, he has been here for a while, and Moeller did not hide these things from him, and asked the translator to tell the old Gupta.

"Jogo, I don't think the investment here is very good. Everyone is not doing oil palm business..." Old Gupta was also a little worried.

"That's because they have no vision." Jogo explained with a smile, "Trust me, it will be fine."

Old Gupta could tell that his son was very determined, so he didn't say anything more.

He thought for a while, even if his son's investment here lost a little, the domestic ones would still make money, it's not a big problem.

The most important thing is that he still has a clear understanding of his abilities now. He has never been exposed to these before, and he doesn't understand them at all. He must be right to listen to his son now.

Of course, he doesn't know how much Jogo has invested in the palm oil industry now. If he really knew, it would not be so easy.

"Boss, these are the plantations that I have collected nearby that I want to sell. The prices are the latest. You can find out first. If you are interested, we will go to the field for inspection tomorrow." Moeller sent a report to Jogo before.

Jogo flipped through it, and the content above was still very detailed.

Then Moeller brought a nearby map, which marked the locations of the various plantations in the report, so that by comparison, Jogo would be more intuitive, and he could know the distribution of these plantations.

It has to be said that these foreigners are still very meticulous in their work, which is much more extensive in India. Qiao Ge feels that he has to strengthen the details after returning.

The so-called details determine success or failure, very reasonable.

Oil palms generally begin to bear fruit 2-3 years after planting, enter the peak production period in 7-20 years, gradually decrease in production after 20 years, and begin to age after 22 years. At this time, it usually needs to be cut down and replanted, and its economic life is the longest up to 25 years.

According to the above statement, the price of plantations in the peak production period must be the highest, with an average price of about 30000 ringgit per hectare. This is after the price dropped sharply, and it was not so cheap before.

The price of old trees 20 years later and young trees 7 years ago are much lower, especially those that have just been planted, three years before fruiting and old trees 22 years later are the cheapest.

If the fruit has not been produced within three years, it means that the plantation has not yet produced benefits. Although the old tree after 22 years is old, it can still bear fruit and can squeeze out the last value.

After a few years, there is no need for old trees, and the big deal is to cut them down and replant them. However, replanting requires a lot of investment, so the prices of the two are similar.

The average price within seven years is RM10000 per hectare, among which the cheapest ones that have just been planted, and even as low as RM6000 per hectare.

Chogo is definitely leaning towards young trees within three years. Most of these trees have not yet produced fruit and are cheap. After all, India’s demand for palm oil is not large, and the market has not yet been released.

So after a few years when the market is liberalized, the saplings will just grow up and enter the peak production period, and their own benefits can be maximized.

Although there are other markets, Jogo is mainly targeting India.

Before, Jogo had thought about whether he should buy the land first and start planting from scratch if the price of the plantation was too high.

Again, it will take years for India to open up the palm oil market.

Even if I start planting from scratch now, I can catch up.

But now these plantations for sale must be lower than the cost price. After all, you have to buy saplings from scratch and find someone to plant and take care of them. The initial investment must be a lot, so it must be a good deal to buy ready-made ones. .

Due to the pessimism about the palm oil market in the later stage, many people who have just entered the palm oil industry have obviously suffered a huge blow. Most of their plantations have just been planted, and now they want to escape as soon as possible to save a little loss .

They can only lament the bad luck and poor vision. Why did the situation take a sudden turn for the worse?
It has to be said that the actions of foreign palm oil companies such as the United Kingdom have made many local people engaged in this industry tremble and panic.

From their point of view, following in the footsteps of foreigners is definitely not a mistake. They have better information and they all escaped. If people like themselves continue foolishly, aren’t they idiots?
Most of these plantations that are eager to sell are not in the prime period, and the owners of those plantations in the prime period are still reluctant.

After all, they have waited for so many years to enter the productive period, and it is time to harvest.

Therefore, there are fewer plantations in the peak production period, and the price is relatively stable compared with the other two types. Although it has also fallen, the drop is not as large as that of young tree and old tree plantations.

Qiao Ge calculated his own funds, 6500 million US dollars, equivalent to 1.3 million ringgits.

He plans to leave 1000 million ringgit for the company's daily expenses, and the other 1.2 million ringgit for the acquisition of plantations.

Based on the average price of 10000 ringgit per hectare for saplings within seven years, I can probably purchase 1.2 hectares, which is nearly 1500 times more than my previous expectation of 8 hectares.

Of course, this is due to my own increase in funds, but I only increased by 4000 million US dollars. The biggest reason is the sharp drop in selling price, otherwise I would not be able to buy so much area.

"Look at the lowest prices first." Jogo circled the few plantations with the lowest prices in the sapling stage with a pen.

These few are almost all next to each other. If they can be bought, it will be much easier to manage.

Otherwise, it will definitely be inconvenient to have one in the east and one in the west.

After all, Jogo can't stay abroad for too long, so he hastened everything. The next day, Moeller took Jogo to inspect several selected plantations.

The owners of the gardens were very warmly received and talked about the advantages of their own plantations, such as convenient transportation, good terrain, less pests and diseases, and the convenience of picking palm fruit in the future, etc.

No way, there are too many people who want to sell plantations, and too few people who want to buy.

Everyone was frightened. Many people who originally wanted to buy were given up, and some were waiting and watching.

The withdrawal of the gringos has had too much impact, much worse than this price crash.

After all, their actions make people extremely pessimistic about the future of the palm oil industry.

For example, palm plantation is a long-term investment industry. If the market in the later period is bad, this investment is almost a bottomless pit. If it will continue to lose money, not many people dare to bet.

Now that you've encountered a tough-as-nails bully, why don't you hurry up and grab it firmly.

(End of this chapter)