Traveling through the sword to engage in military industry.

Southeast Asia.

With the success of hybrid rice, Dongda’s agricultural support began to extend from rice to breeding and farming. After several years of promotion, technical personnel from Dongda’s feed factory found a way for farmers in the demonstration area to get rich by planting hybrid rice, hybrid corn, and breeding pigs, cattle, sheep, chickens, ducks and geese.

Although the demonstration zones currently cover less than one-tenth of the areas covered by these countries, the rapid prosperity of these demonstration zones has spread across these countries like a spring breeze.

Since Dongda supports the scattered planting and breeding model of the majority of farmers, it supports the development of the local people.

It was incompatible with the centralized large-scale factory model of conglomerates from Europe and the United States. As a result, in the face of the gentle support from the University of Tokyo, the two sides began to fight secretly in the demonstration area.

“Why have our local production and sales dropped so much? The poultry sales have dropped by more than 50%. This is unacceptable.” White, the president of Amway Food Group in Malaysia, looked at the report and yelled at his subordinates with a grim face.

"Mr. President, this is because the competitors we face now are not just those large farm owners, but also many more individual farmers and breeders." Moro, the business manager in charge of local market development, explained with gritted teeth.

"In Penang, Johor, Sarawak, almost every local farmer has become a livestock farmer. Not only do they grow enough food to be self-sufficient, but they also receive support from Dongda Feed Company for raising poultry and livestock. The food company under Dongda International Agricultural Company has promised to buy their excess products, whether they are food products or poultry and livestock products."

"Do you know what their profit margin is?" White asked with a gloomy face. Dongda has almost closed the loop of this industry, which makes him feel hesitant to take action.

"According to my observation, Dongda basically purchases grain and poultry and livestock at market prices, with almost no price difference. The cost of purchasing raw materials is higher than that of our large-scale farms, but Dongda Food Company does not seem to want profit at all. They do not care too much about the extra cost and seem to be pursuing a break-even state."

"Hou Lixie, what do they want?" White was a little crazy facing such an opponent.

"But Dongda has sold quite a lot of agricultural vehicles in these places. They also obtained the local highway construction rights and toll collection rights. I heard that the toll collection rights are for 20 years. After the expiration, regardless of whether the cost is recovered or not, these constructed roads will be handed over to the local government and owned by the local government." Moro was really attentive. He was able to find out all this information and connect the dots.

This allowed White to have a comprehensive view of the entire incident.

But after listening to it, White found that they basically had no way to deal with Tokyo University's combination of tactics.

Although large-scale farming is the best option in terms of cost, Dongda does not seem to be thinking about making money directly from these places. Instead, it is playing the long game and supporting these places to develop slowly.

Even though White couldn't figure out how the University of the North could make back these costs, he knew that the University of the North was definitely not crazy and was not messing around in these areas.

They must have a way to recoup the costs with interest, but it’s really hard for me to figure out what it is!
As a food company, Amway Shikang took advantage of the cheap labor and raw materials here and opened a food factory here. It also established a large farm to provide itself with raw materials for production.

Unexpectedly, after Dongda came in quietly, it overturned the local planting and breeding methods in just a few years!

After the good demonstration results, everyone has completely established confidence in Dongda’s breeding model.

In this way, farmers who accepted the Dongda model covered almost all the local people.

The entire scale was expanded all at once, so that the food company of Dongda Agriculture International Corporation had something to do locally. After receiving the grains, poultry and livestock, they processed them into canned food and agricultural and sideline products such as rice, which they sold locally and to neighboring countries. These products were relatively scarce in the surrounding areas.

Relying on this model, local residents did gradually have extra money. According to their needs, they gave priority to purchasing cheap but easy-to-use products such as three-wheeled motorcycles and agricultural vehicles from Dongda.

So there was no money made in agriculture, but through the sales of industrial products, Dongda successfully penetrated its domestic products into these places.

Over a few years, hundreds of thousands of three-wheeled motorcycles and agricultural vehicles were sold to these places supported by the University of Tokyo for demonstration, ushering in an era in which most families had their own means of transportation.

"So, Todai has formed an industrial chain in the local area and connected the upstream and downstream?" White asked in summary.

"Yes, although many people in our country are not satisfied with the road connection, the road connection has greatly improved the traffic conditions, which is admirable," said Moro. "In any case, the local people have benefited from it and are becoming richer."

Such a noble operating mode left White with almost no loopholes to exploit.

"How are we considering responding now?" President White couldn't solve the problem, so he simply left it to his subordinates to solve.

"Mr. President, all we can do now is increase investment in breeding and build super-large breeding farms to continuously reduce costs. In view of the current situation, we will appropriately increase the purchase price to influence the current vote and overcome the current difficulties first."

"If we increase the purchase price, can we still increase the price of subsequent products?" White said with a frown.

"There is not much room left for price increases on terminal products," Moro responded.

"Our products have always been a little bit higher than those of our competitors. We have maintained this price range thanks to our brand and have become the leader among first-tier brands. However, this situation has reversed somewhat since this year. Dongda's products are penetrating deeper and deeper, and there are more and more varieties and types. From agricultural vehicles to small production machinery, Dongda can always take out some to sell to these wealthy farmers. Now, they like everything from Dongda, which is cheap, good quality and very practical." "So I suspect that Dongda is playing a big game. They are not focusing on one point at all, but controlling us from an industrial chain or even a combination of different industrial chains. The scary thing is that we have no ability to get rid of this temptation at all."

From a conspiracy theory perspective, Moro does not believe that the University of Tokyo has such a noble purpose of helping their country become prosperous.

However, when Moro questioned Dongda's motives, he suddenly found himself feeling guilty.

Because from the current results, these farmers in our country have not lost anything, but have been getting better at a visibly fast pace. Not only have their lives long surpassed the need for food and clothing, but their quality of life has also reached a level that was previously unimaginable.

So it would be a bit shameful to insist on coming up with some conspiracy theory about the University of Tokyo.

Of course, it is not surprising that Moro thinks this way. In fact, almost all the capitalists from other countries who come here to open companies are here to make money, not to alleviate poverty. But now the University of Tokyo has broken the convention. While selling its own products, it is actually helping the local people to gradually become rich.

If this idea had been told to White before, President White would have sneered at it, thinking it was something impossible to achieve.

But now, Dongda has made this a reality. They have not only closed the loop from agricultural breeding to raw material sales and deep-processing product production and sales, but also started to close the loop in seemingly unrelated areas, from road infrastructure construction to transportation sales.

This means that while Todai is helping the local economy develop, it is also making money back from their very comprehensive product chain.

Such a long design model would be basically wasted if there is no strong product stickiness to make up for it in other aspects.

It can be said that this model is too public-spirited and few countries can achieve this.

However, this is the power of this model, because it is difficult for external single-product merchants to compete with such competitors.

This is Ren Zhong's new model of imitating the main world's Dongda University's going global. So far, it has been very successful. What we bring to the local people is not one-sided market demands, but market cultivation in the form of letting the water flow and raising fish. It is much more complicated than simple horizontal promotion, and must work closely with national forces.

After several years of development, Ding Wei's international agricultural company has grown from simple planting to an integrated complex integrating breeding and food deep processing. It is now one of the largest agricultural groups in the world and has begun to make huge profits to feed back to the domestic market.

Because after hundreds of millions of acres of land in Heilongjiang Province have been turned into fertile fields, they have begun to produce large quantities of grains, wheat, corn, rapeseed, sesame, soybeans and other food crops. Even if the price of major food crops in the world has been stabilized at a low level of US$100 per ton, international agricultural companies now have an annual output of tens of millions of tons, and the annual output value of food crops alone has reached tens of billions of US dollars.

Together with the food industry formed by deep processing of grain and oil, the annual output value of international agricultural companies now exceeds 10 billion US dollars.

If it were Ding Wei during his time in Taihang Mountains, he would never have dreamed that one day he would become one of the largest grain and food suppliers in the world!

It is precisely because of the promotion of hybrid grain varieties and the blossoming of this affordable grain in various places that the win-win cooperation model of the University of Tokyo has gained support in more and more third world countries.

Food, infrastructure, basic transportation, basic energy facilities, and abundant light industrial products, in its own way, Southeast Asia and Black Africa have exported their powerful industrial production capacity to benefit the entire world. As the two major beneficiary regions, they have also achieved rapid economic growth, and more and more people have participated in the new agricultural development model guided by Southeast Asia, bringing benefits to the large number of farmers in these countries.

Start unleashing more and more productivity.

It is with this trickle-like push that Todai gradually entered the hearts of the people of these countries. Not only did they change from their initial skeptical attitude to active following, but they also had a good impression of everything about Todai.

From bringing a new agricultural planting model that can feed people, to bringing electricity, better transportation conditions and a better life, Todai has formed a sharp contrast with other international capital that focuses on making profits. In this way, Todai has won more support in the international community, mainly in the third world.

This laid a new foundation for deeper trade between the two sides. Then, when Dongda proposed to jointly mine local minerals to further accelerate the development of the local economy, it was all natural to further expand the trade between the two sides. Whether it was copper, iron or coal mines, Dongda's rapidly developing infrastructure had a large consumption capacity. After achieving the diversification of the sources of mineral resources, Dongda in the world of Bright Sword did not drive a large-scale price increase in the raw materials market due to its strong domestic demand and foreign sales.

After all, this was still the 60s, and the three major mining companies that monopolized the upstream resources in the main world were not yet very powerful. Through cooperation with John Bull and ties with European chaebol families, several large colonies controlled by John Bull were still firmly controlled by them. They began to cooperate with Dongda to mine and sell to Dongda.

Just like in Nigeria and Rhodesia, the ore replaced the food grown locally by Ding Wei and his team, which not only reduced a lot of transportation costs, but also created a considerable number of channels for the release of black African labor.

Heifei planted the land and harvested the flowers, and brought the ore back to his hometown. The efforts of Ding Wei and his colleagues were exchanged for pieces of iron ore, copper ore and even coal, which were sent back to the south and east coasts by the huge transport fleet of Dongda University. At the same time, new industrial products were also continuously transported back to these places.

This is not just the case in one place. In many places in Southeast Asia and Black Africa, Dongda has woven a huge trade network.

It has achieved a nearly seamless exchange between upstream raw materials and mass industrial products, pushing Dongda's industry to move forward in the direction of becoming the world's factory. In its trade with the West, Dongda focuses more on automobiles, aviation, and electronic computer products, because these products are either their advantageous products that are difficult to replace, such as large aircraft and computers, or they are high-quality products with good quality and low price. For example, cars, mainly mid- and low-end cars such as Golf, JETTA, and Polo, have entered their daily lives and become the mainstream varieties of mid- and low-end cars in Europe and the United States.

In this wave of competition with European and American industrial capital, Dongda began to gain the upper hand in the competition with its system advantages! The world ranking of total foreign trade sales has been rising almost every year, and now it has entered the top five industries, completely getting rid of the impression of a poor agricultural country and becoming an emerging industrial power.

(End of this chapter)