Agricultural giant since 1983

The four major grain merchants will certainly not watch the Chinese purchasing group obtain a large amount of soybeans from South America, so they quickly made a move, and the move was fatal, directly hitting the culprit of these soybean exporting countries; first, they let out the wind that due to the global wheat production decline, they must reduce their wheat export share, especially to South American countries. This will be fatal.

Many people think that Brazil has 55 square kilometers of arable land, ranking fifth in the world. However, Brazil has only [-] million people. With such unique natural conditions, Brazilians certainly don’t have to worry about going hungry. However, this is not the case. Brazil’s agricultural structure was seriously affected by the colonial period. Most of the land is used to grow cash crops such as soybeans, sugar cane, coffee, and cocoa. The remaining land is also used to grow corn. Wheat, Brazil’s favorite staple food material, is only grown in a small amount in the southern region.

Brazil imports millions of tons of wheat every year to fill this gap, and most of this wheat comes from European and American countries. The supply chain is firmly controlled by the four major grain merchants. If Brazil continues to obediently obey their orders, then they will still provide Brazil with a stable supply of wheat so that Brazilians can eat bread. But if they are disobedient, the four major grain merchants will definitely use wheat to threaten Brazil.

If there is no supply of wheat, the Brazilians will go hungry, and if you incite the Brazilian people a little bit, they will think that it is the fault of the Brazilian government, so Lula's status will also be unstable; they were very dissatisfied with Lula's various policies after he came to power, and now they can take this opportunity to beat him. Isn't it good for Brazil to continue to be a plantation?Why seek independence?Be careful that you won't even be able to eat enough if you do this!
"This trick is hard to deal with. Although Brazilians want to make money, it is more important to fill their stomachs. If they can't even eat enough to eat, it is useless to earn more money! This also gives us a warning. Don't look at the free trade of the United States, which really violates their interests. They will not hesitate to throw away their hypocritical masks and resort to the most despicable methods. Therefore, our country's rice bowl must be firmly in our own hands!" The leaders of Bank of China and other institutions also feel sympathetic.

"Fortunately, when we joined the WTO, we resolutely did not make concessions on staple food. Otherwise, we will encounter the situation Brazil is facing now sooner or later! And it must be more dangerous!" The leaders of China Grain Reserve felt scared for a while. How many people does Brazil have?And how many people are there in China?It would be terrible if China's wheat supply also had problems.

Although we have encountered some problems with soybeans, this problem is serious but not fatal. Without enough soybeans, at most, we will not be able to eat well, but without wheat, we will not be able to eat enough.

"Then can we make up for the shortage of Brazilian wheat? If that's the case, wouldn't we kill two birds with one stone when we go to sea with wheat and bring soybeans back to Brazil?" asked the leader of China Shipping. Now China mainly imports raw materials such as soybeans, iron ore, petroleum, and wood from Brazil, while China exports to Brazil industrial products such as motorcycles, color TVs, refrigerators, air conditioners, and tractors. The ocean transportation capabilities required by the two are not at the same level. What kind of goods is a headache, if wheat can be exported to Brazil, then this problem will be solved.

"We can't export wheat now!" The leader of China Grain Storage said with a wry smile, and told them about the production and consumption of wheat in China in recent years. During this period, it has experienced three changes.

From 80s to 1000, because domestic production could not meet the consumption demand, China needed to import about 500 million tons of wheat every year; from [-] to [-], wheat had a bumper harvest year after year, and the production finally exceeded the consumption. The import demand continued to decline, and only a few hundred thousand tons of special varieties of wheat had to be imported every year. However, the situation changed again this year. Affected by the global wheat production reduction, China had to increase the amount of wheat imported. Tens of millions of tons in recent years.

"Wheat is definitely better than soybeans. We still have stocks in our warehouses, so those foreign companies don't dare to raise prices too much, but we can only meet our own needs. It is definitely impossible to export to Brazil!" The total amount of wheat harvested in China exceeds [-] million tons every year.

"Mr. Jin, do you think this will work? I have stored a lot of wheat in Central Asia, and I send the wheat to the country. Then you transport the wheat from the warehouse in the coastal area to the dock, let Mr. Lin and Mr. Qiao load the wheat to Brazil, and finally ship the soybeans back. Wouldn't all our problems be solved?" Li Lei's years of business operations in Kazakhstan and neighboring countries can finally come in handy.

Kazakhstan has the top ten agricultural potentials in the world. They have no shortage of oil or land, but only people and technology. These are all that Li Lei can provide. The continuous import of machinery and labor from China to Kazakhstan has continuously increased the grain production of Kazakhstan. The wheat production of this country with a population of only 500 million has directly exceeded 2000 million tons, with an average of more than 1.3 tons per person. This amount of wheat must not be eaten. What's more, they also have a lot of other grain production, so they have great potential With the export potential, together with other Central Asian countries, it is not impossible to fill China's annual wheat shortage of tens of millions of tons.

The countries in Central Asia are located at the furthest distance from the ocean in Eurasia. Although they own large tracts of land, it is relatively difficult to export grain. They can either sell it eastward to China or westward to Middle Eastern countries. At most, they can be sent to Greece and other countries. It can’t be farther away, because the transportation cost is too high to compete with European and American grains, let alone exporting to Brazil.

The exchange plan provided by Li Lei provides a new way of thinking. The northwest is an important wheat consumption area in my country, but it is not the main wheat production area. The wheat eaten by the locals needs to be transported from other provinces. Since they are all transported, there seems to be no big difference between the Central Asian Games and the northeast.

The export of wheat from the coastal areas to Brazil is direct port-to-port sea transportation, which greatly reduces the transportation cost. The final CIF price will definitely be slightly higher than the price of the United States exporting to Brazil, but it is not unacceptable, and in consideration of national security, Brazil will choose one more supplier. Lula certainly does not want to be beaten by the Americans with threats of wheat.

Brazilians don’t even need to buy too much Chinese wheat, because the reason why the four major grain merchants can threaten them is that Brazil can’t find any other alternative purchase channels, and once such channels show signs of being established, they will immediately resume the supply of wheat to Brazil. They can’t let these wheat continue to be moldy in warehouses, right?

"This method is feasible, but we have to strictly check the quality and quantity of the wheat, and the wheat stored in the coastal areas must be taken out after the wheat you send is put into storage!" President Jin of China Grain Reserve cautiously expressed his approval, but strictly restricted the specific method. The stock of China Grain Reserve is related to the safety of the country, and he cannot take any risks.

Li Lei agreed, "Of course. In fact, as long as a few ships full of wheat arrive in Brazil, the four major grain merchants will relax their wheat export restrictions to Brazil. This is the same as when the first shipment of Brazilian soybeans arrived in Dalian Port last time, the price of soybeans in the domestic futures market immediately plummeted!"

In fact, most of the crushing capacity of the main imported soybeans in China is located in the coastal areas of Shandong, Jiangsu and other places, and the imported soybeans mainly call at the ports of these places, but why is the first shipment of Brazilian soybeans unloaded at Dalian Port?It is not because the main domestic soybean futures transactions are completed at the Dalian Futures Exchange, and the unloading here can bring a more intuitive impact to those speculators.

The freight train full of wheat immediately departed from Kazakhstan, arrived in Urumqi, and then sent to Lanzhou, Xi'an and other places from here. After the wheat passed the inspection and entered the local warehouse of China Grain, it was already ready to start loading at the coastal ports and prepare to go to Brazil.

At the same time, Lula also announced in a high-profile manner that there would be no shortage of bread on the dinner table of Brazilians. Bread from China would soon arrive in Hong Kong. The attack of the four major grain merchants was thwarted, and the prices of wheat and flour in the Brazilian market fell accordingly. However, they did not admit defeat and soon adopted other means.

Several ports controlled by the four major grain merchants suddenly announced maintenance at the same time, which greatly reduced the capacity of entering and leaving the port. Except for their own soybeans, soybeans from other farmers or purchasing companies could not be shipped to the port even if they had already been delivered to the port.

A number of large farms have also received letters from Monsanto’s lawyers, asking them to either stop planting soybeans, or pay Monsanto high patent fees. The owners of these farms are puzzled. We have never used your soybean seeds. Why do you ask us for patent fees?
Monsanto’s reply made them dumbfounded, because these farms are next to the soybean fields using Monsanto seeds, so Monsanto’s pollen has also spread to their farms, and the soybeans they produce naturally carry Monsanto’s soybean genes, and these genes are unique to Monsanto, and they must give money!
To give an inappropriate example, it is as if Monsanto raped the wives of these farmers and gave birth to children, and the farmers had to loan Monsanto the seed money. It sounds incredible, but according to the current patent law, Monsanto does have the right to do so, which is also an important means for them to monopolize the global genetically modified soybean seeds.

Those farmers who did not border Monsanto's GM soybean fields had no time to rejoice when someone came to their door. These people included representatives of agricultural machinery suppliers, chemical fertilizer suppliers, and bank employees. The suppliers offered them contracts to repay their loans in advance, and the banks also had to withdraw their loans in advance.

The farmer immediately expressed strong opposition. The contract has stipulated a clear repayment time, and you cannot ask for debts before the soybeans are sold. However, these debt collectors quickly dug out a few clauses that were originally considered inconspicuous from the contract, and used them to prove that they really have this right, and the farmer cannot violate it, and must repay immediately.

The two sides fell into a fierce quarrel, and it felt like it was almost the same. The representative of the acquisition company controlled by the four major grain merchants came out to smooth things over. He said that as long as the farmer signed a long-term exclusive agreement with them, and the soybeans produced by this farm would only be sold to them from now on, then they would immediately give money to help the farmer overcome this difficulty.

The Chinese purchasing group and Huinong’s Brazilian branch will certainly not sit still. They have also adopted tit-for-tat measures. Although the four major grain merchants control most of Brazil’s soybean shipping channels, not all channels are under their control. Huinong itself has a logistics channel from Mato Grosso to the port, and also controls some ports. They can help nearby farmers deliver soybeans to China Shipping and COSCO freighters.

The Brazilian government also has some channels in their hands. While coordinating, they are negotiating with representatives of China Shipping and COSCO, hoping to obtain investment and technology from them to build a port that truly belongs to them.

The staff of the Bank of China also came in handy at this time. They have set up a representative office in Brazil, and they can cooperate with Brazilian banks to provide assistance to farmers who are in desperate need of funds. So they also formed a large-scale team and began to travel to various farms in Brazil's soybean-producing areas.

Bank of China contributed money, and the people from Huinong Brazil Branch brought cheaper and better agricultural machinery, fertilizers, pesticides and soybean seeds. Huinong has also built a complete industrial chain in the soybean field, which can also cover the entire process from sowing to harvesting to sales to processing. Their appearance has given Brazilian farmers a second choice besides the four major grain merchants.

Many farmers who were squeezed by the four major grain merchants were quickly persuaded by the delegation. They took money from the Bank of China to repay their debts, and obtained from Huinong the agricultural machinery, pesticides, seeds and other materials necessary for next year's production. Huinong's influence on the Brazilian soybean industry has further strengthened.

Seeing a rare setback in Brazil for a method that had been tried and tested in other countries before, the four major grain merchants became even more furious. They immediately stepped up their attacks. There were more and more protests and opposition in Brazil. Several employees of Huinong were also controlled by the local police when they were transiting from Canada. The reason was that they were involved in commercial bribery.