Agriculture Maniac

Chapter 160 The Soybean Oil War

The lubricant Yu Yang mentioned is not mechanical lubricant or condom lubricant.

Instead, it is a base oil that plays a lubricating role in the production of chemical raw materials, also known as base essential oil.

For example, by heating soybeans to 100°C to deacidify them and produce glycerides, and then saponifying the glycerides in water, plant-based glycerin can be obtained.

It has antibacterial and antiviral properties. It can be used as a lubricant for pharmaceutical products and cosmetics. It can even be added with fragrance to make a plant-based essential oil for massage.

Fujima's automated control equipment and related systems are specifically designed for the production of "massage essential oils".

Of course, massage oils have a huge market in Japan, but it is difficult to estimate in the East.

Yu Yang thought about it again and again, considering the idea of ​​"returning favors in their own way". By helping ADM increase its production capacity, he might be able to obtain more than ten times more soybean oil than his own production, as well as the huge amount of funds consumed in purchasing this soybean oil.

I simply went to the dock at the former site of the township compound and started the computer.

While adding soybean oil and adjusting various proportions, I uploaded the characteristics to the Internet and posted a message to ask for help from experts.

Never thought.

I don’t know, I don’t know, I’ll be shocked when I understand.

Because it has so many uses.

For example, soybean oil is refined and decolorized, and then subjected to an esterification reaction with alcohol compounds to generate ester compounds, which are then subjected to an alcoholysis reaction with acid compounds to generate a resin precursor.

The resin precursor is then polymerized to obtain a plant-based resin.

Although it is less unique than petroleum-based resins, it can be made into non-toxic and harmless plastic products.

Including pacifiers, teethers, baby toys, love aids...

For example, soybean oil can be refined, bleached and hydrogenated to obtain 'hydrogenated soybean oil'.

It can be used as a lubricant and adhesive in tableting.

It can also be heated to make 'wax' and then flavorings can be added to produce craft candles.

This plant-based craft candle costs three or four times more than ordinary candles. Ordinary people can’t afford it, but monks love it very much.

How many Buddhist temples are there in the East?

"It seems that we need to ask the Buddha Temple to select a group of senior monks to form a sales team... no, to form a traveling team, and then bring candles to other temples to exchange for some incense money."

"After all, we are from the same sect, so it is easier for both sides to get closer."

Yu Yang thought about it, contacted the old abbot of the Buddha Temple, and told him his idea.

"Donor Yu, this is inappropriate, isn't it?"

"Host, don't you want to make progress?"

"The old monk must be ambitious, otherwise he would not have moved to Hangai Township."

The old host never told anyone else about it.

The reason for moving to Hangai Township was that during that period, strong men would sneak into the temple every night, dig pits to look for gold, smash walls to look for cash, or take away some old items.

I can’t beat him, and calling the police is useless.

Just join them.

The reason for joining is "progress". We hope that the Buddha Temple will become bigger and stronger, create greater glory, break out of Asia-Pacific and go to the world.

"Since the abbot is ambitious, then let's settle this. I will supply the craft candles and only charge the cost. Your temple will be responsible for the sales. No matter how much you make, the profits will belong to you."

Yu Yang was just about to hang up the phone when he suddenly caught sight of Chang Fu, a spearman standing nearby, and his heart moved.

"Changfu, you should become a monk."

"Ok?"

"Become a warrior monk and follow the senior monks to other temples to sell candles."

"???"

“This is called the Protector.”

"..."

……

Two days later.

The Buddha Temple moved to Hangai Township and added 300 new monks.

They are all strong and sturdy, and are good at dancing with sticks.

When they get together, they look like a group of Lu Zhishen.

This adds a bit of mystery to the Buddha Temple and also brings in a lot of popularity.

However, it takes time to process the ordination certificate, so Master Chang and his companions can only stay in the temple for the time being, drinking, eating meat, and pulling up trees.

Of course, as the security chief, Chang Fu did not become a monk.

Following Mr. Yu, he helped the vegetable vendors' companies in the trade hall to complete a new round of capital increase and expansion.

For example, some companies stopped selling vegetables and switched to producing baby products.

For example, some companies stopped purchasing ADM soybean oil and switched to producing sex toys.

For example, some companies no longer purchase plant-based raw materials and instead produce craft candles.

The company is responsible for producing glycerin, plant-based synthetic resins, and hydrogenated soybean oil, and supplies semi-finished raw materials to these companies.

In this way, the acquired ADM soybean oil will find a place to be put to good use.

And the inventory is falling very quickly.

So Yu Yang began to worry, if ADM no longer produced Golden Arowana, where would he find such an excellent supplier?

Fortunately, ADM took action again and acquired more than 10 refineries in Xiguan, Jianfu, Guangqu and Jiangnan regions, increasing its production capacity to tons per day.

In early September, soybeans were harvested in South America, and ADM used these refineries to apply to the Oriental Foreign Trade System again to import 9 million tons of soybeans.

"On the one hand, they are waving their dollars to invest in the East, on the other hand, they are forcing the East to consume their dollars, on the one hand, they are devouring the East's soybean oil market, on the one hand, they are seizing the East's soybean market, and on the other hand, they are secretly taking over the feed market and the frozen meat market... ADM is really scary."

Fortunately, the company has a trick up its sleeve. On the one hand, it can purchase ADM soybean oil to free up market for its own Sany soybean oil, and on the other hand, it can process ADM soybean oil and sell it to recover funds, thus making the two operations form a cycle.

"So, we are more terrifying!"

Yu Yang sighed and put aside many of the writings that had been put aside in recent days because he was obsessed with barbecue.

This includes the orders that ADM distributed to itself for delivery in January 00, as well as ADM's explanation for suspending advance payments for raw materials and third quarter profit distribution.

It's nothing more than a collapse in soybean prices, ADM has suffered heavy losses in the futures market, and currently has no available cash.

But Yu Yang understood that this was just a polite remark.

Because soybean futures, which are dominated by the four major grain traders, first rose in price and then fell in price, the four major grain traders first went long and then went short, and they all made a lot of money.

The other party must have done this in order to allow themselves to continue producing inks and pigments.

At this time.

The factory secretary came in hurriedly, "Director Yu, something bad has happened."

"what's up?"

"Sanyuan Chemical was in arrears with material suppliers and a quarter of their employees' wages. The material suppliers and employees joined forces to cause trouble and stole a lot of valuable equipment during the chaos."

"Is there such a terrible thing? Call the police quickly. Oh, and notify Chairman Phillips!"

9 month 5 number.

In the southeast corner of Laigang City, Sanyuan Chemical.

As the largest refining and chemical base in the Asia-Pacific region, its gate is built in a mighty and majestic manner.

But at this moment, inside and outside the door were scattered with all kinds of garbage, and it was extremely deserted.

Yu Yang and Phillips entered the factory in an AMG Mercedes-Benz. The first thing they saw was dozens of old men in security uniforms sitting in the shade of trees to enjoy the cool air.

"Wait, Mr. Yu, what's going on?"

"Chairman, although your headquarters has issued the order, you have not paid the balance of the raw materials and the profits that our company should have received in the third quarter. As a result, the material suppliers cannot get paid and will not supply the goods; the water and electricity system cannot get the payables and will not supply water and electricity; the employees cannot get their salaries and are unwilling to go to work; even the security personnel are lazy and let their elderly fathers take over the job."

"Fuck, how could this happen?"

"That's still good. Let's go check the damage to the equipment."

After a while.

AMG is parked in the commercial secret area of ​​Sanyuan Chemical.

The head of the city police who came from Tai City came up to him with sweat on his forehead. "Mr. Yu, after our investigation and analysis, your company has lost 49 sets of high-precision extraction components and 135 sets of high-precision refining equipment. The production lines used for extraction and refining inks have all been paralyzed, and the plant-based ink technology may have been stolen."

Upon hearing this, Yu Yang was slightly stunned, then he rolled his eyes and fell to the ground with a bang.

"Mr. Yu?"

"Mr. Yu?"

"Hurry, hurry, an ambulance!"

Noon on September 9th.

According to rumors, Sanyuan Chemical has been experiencing extremely bad debt collection for raw materials and wage demands from employees due to ADM's refusal to pay the final payment for raw materials and its third quarter profit sharing.

During the process, Sanyuan Chemical's core equipment was stolen, and its plant-based ink extraction and refining technology was lost.

Moreover, Yu Sanyuan was so angry that his old illness relapsed and his life or death was unknown.

In the evening of October 9th.

Sanyuan Chemical issued a notice: Due to business adjustments, the entire factory was closed and handed over to the Tai City Military Department for temporary takeover.

In the early morning of September 9, Sanyuan Agriculture filed lawsuits against Daniel Smith and ADM in the Dongshan High Court and the New York Court, respectively, alleging contract fraud and demanding compensation of US$6 billion.

Dongshan High Court accepted the case on the same day.

……

Hong Kong, ADM Asia Pacific headquarters.

Mrs. Smith is speaking to Phillips.

"Madam, Mr. Yu's acting skills are very poor. It is certain that he deliberately shut down Sanyuan Chemical."

"This is bound to happen. He did this just because he didn't want the two sides to fall out, just like us using the heavy losses in futures as an excuse to refuse to pay the final payment for raw materials last quarter and the advance payment for raw materials next quarter."

"What about us?"

"Sanyuan Chemical is heavily in debt, which is equivalent to a heavy burden for Sanyuan Agriculture. This matter has come to an end. Our work focus is still on soybean oil, feed and frozen meat."

"Good lady."

"You don't need to come back. Go directly to Shanghai Yihai Kerry and be responsible for integrating the many refineries we have acquired."

"Yes!"

After Mrs. Smith hung up the phone, she looked at the business map hanging across from her desk.

Sanyuan Chemical has been marked with a big X.

Next is the general attack on soybean oil.

……

9 month 7 number.

Shiliying Sunroom Industrial Zone, Sany Soybean Oil Sales Corporation.

Yu Sanyuan, who was dying, sat in a leather chair in high spirits, checking the sales status of Sany soybean oil.

Thanks to the crackdown on illegal cooking oil workshops by superiors, the shortage of oil has become more serious.

Thanks to the company's acquisition of Golden Dragon Fish, a large soybean oil market has been freed up.

Sany soybean oil sells quite well in all its products, from high-end barrels to mid-range bags and low-end bulk.

Upon seeing this, the factory secretary reported: "Sany produces 5 tons of soybean oil per day, with an average selling price of 4800 yuan per liter, and a daily turnover of 153 million yuan. Due to the profit concessions given to vegetable vendors during the sales process, and the high cost of buying back Sany soybeans, the daily loss is about million yuan."

"It's normal. Now is the early stage of the business, especially when we are competing with ADM. This loss is equivalent to a huge profit... As for the high cost of buying back Sany soybeans, it's like buying a horse bone with a lot of money. By next year, Sany soybeans will definitely be known throughout the country, and there will be no need to implement the guaranteed income plan."

After Yu Yang finished speaking, he looked up at the TV.

In the news currently being broadcast, several edible oils under ADM were interviewed one after another.

What is the insistence on technological progress and brand success?

What is the implementation of the group strategy and unification of edible oil standards across the company?

What is ISO9001 certification, ISO14001 certification, GMP audit and HACCP certification...

Seeing this, Yu Yang called the front desk of the brick kiln and said, "Give me this copy of all the newspapers you can buy in the next two days."

"Okay, Mr. Yu."

soon.

Dozens of brand new newspapers and magazines were sent over by the forensic sister.

Yu Yang flipped through it roughly.

Sure enough, many of ADM’s edible oils have obtained a series of international certifications.

On the other hand, at home, there is definitely nothing.

After all, the company has no connections overseas, and ADM will not let it get it.

In newspapers and periodicals, experts, professors and well-known scholars suddenly appeared from nowhere and stated the importance of international certification in various ways.

Even some local leaders have awarded science and technology progress awards to several ADM refineries.

The funniest thing is that the orchid has become a well-known trademark in the East.

"It's over, the high-end market has been lost!"

The head of the factory secretary team said, "Mr. Yu, it can't be considered a loss. After all, the consumers in the high-end market are all well-off. After tasting Sany soybean oil and then ADM's high-end oil, you will definitely find the difference."

"You should know about flavorings."

"Can't detect it?"

"It's not that it can't be detected, it's that cooking oil doesn't test for this."

"???"

"Like soybean oil, it is made from soybeans. If it is made by pressing, the official test is for aflatoxin and impurities. If it is made by leaching, the official test is for solvent residues. As for whether there are stimulants in soybean oil, sorry, this requires professional testing. Do you understand?"

"You mean, even if there is rat poison in it, you won't test it?"

"If this batch of soybean oil is not tested for toxicity, it is possible that it may contain rat poison and could be put on the market."

"..."

"In fact, it's the same in the food industry, including our cucumbers. At most, we test whether there are pesticide residues. Who would test its alkalinity and acidity?"

"..."

"So, ADM is well aware of the characteristics of Sany soybean oil, but it still intends to enter the high-end market, which shows that they are sure of winning. After all, no matter how pure the taste is, it cannot beat technology and hard work."

The factory secretary had long been convinced by Yu Yang. Upon hearing this judgment, he looked at the person presenting the award on TV and gritted his teeth and said, "Eat them to death!"

Then he added: "Even so, we should still be able to gain a foothold in the high-end market."

"Gaining a firm foothold and monopolizing are two different things."

Yu Yang picked up a pen and paper and started writing. “ADM is attacking the high-end market and will soon start a brand war, a certification war, and a price war with us. After a series of attacks, the high-end image of our Sany soybean oil will definitely be seriously damaged.

If we want to maintain our advantage, we have no choice but to... take it off the shelves!"

“Take it off the shelves?”

"Ah."

“Wouldn’t this give the high-end market to ADM?”

"No, we are taking a different approach. We will continue to give away vegetables, fruits and even travel spending. In short, we will make it so that consumers who are ready to buy a lot of high-end cooking oil don't have to buy oil."

“But if we do that, we will suffer heavy losses.”

"When the gecko cuts off its tail, we lose money, and when ADM's high-end cooking oil cannot be sold, they also lose money due to its short shelf life."

"Can we afford to compete with ADM?"

"Thanks to the big sister, Mrs. Smith, for giving us sufficient funds and sending us so much cheap cooking oil. In the future, our losses in the high-end market can be fully compensated from the lubricant industry."

The factory secretary understood, "Just like the power plant is losing a lot of money, but the power supply department is making a lot of money, but the power plant can't be closed?"

"That's pretty much what it means."

Yu Yang put down the paper and pen, "By the way, how much is Sanyuan Chemical's total debt?"

“To reply to Mr. Yu, the purchasing department knew that ADM would cut off its orders for the next quarter, so they purchased or ordered raw materials worth 21 billion US dollars from our plant-based raw material planting areas in Yishui and Yimeng.

In addition, raw materials worth US$17 billion were ordered from the South, Southeast Asia, South Africa, and Siberia.

Together with previous outstanding debts, the total debt is US$68 billion.”

"My goodness, Yishui and Yimeng spent two months to cultivate such a small amount of things, and all of them were bought by Sanyuan Chemical at a high price?"

"If we don't buy now, no one will buy once the orders are cut off. Besides, the price is not too high. We have been purchasing plant-based raw materials for half a year. Now the supply prices in the market have increased several times. Even Chinese herbal medicines are sold out."

"In that case, we will withdraw the technicians responsible for cultivating plant-based raw materials and dismiss the temporary workers recruited from Yishui and Yimeng."

"Ok."

Yu Yang watched the factory secretary leave, then took out his cell phone and called the number of Lao Dong, the director of Dongshan Development and Reform and the head of the Dongshan State-owned Enterprise Reform Committee.

After connecting.

He spoke in a businesslike tone:

"Hello, leader. I am Yu Yang from Sanyuan Agriculture. I wonder if you have received the debt restructuring plan from Sanyuan Chemical Group?"

"I have received it. I believe that Sanyuan Chemical, as the largest refining and chemical base in the Asia-Pacific region, cannot be abandoned just because of the flight of foreign capital. If Sanyuan Agriculture and many material suppliers can work together to revitalize such a large factory, I believe the superiors will be very happy."

“I am grateful for the leadership’s support, but the Dongshan High Court may not necessarily make this ruling.”

“I will communicate with them.”

"Thank you for your hard work, leader."

"It should be, otherwise why would I come to Dongshan Mansion?"

"Then we won't talk any more."

Yu Yang ended the call and looked at the factory plan hanging on the wall.

Then he stood up and drew a check mark on "Sanyuan Chemical" with a piece of chalk.

"The question is, why did we go through so much trouble to get this chemical plant?"

"Mortgage?"

"But no bank dares to process it for us."

"Forget it, let's find a place to hide first, so that the big sister on the list won't come to our door."

(End of this chapter)