As a mage, I just want to pursue the truth

Chapter 95 The real boss

Jiang Yan's position and vision are higher than Dong Wenxu's, and he has an accurate estimate of his own abilities and the role he can achieve.

However, many things could not be explained in detail to Dong Wenxu. Jiang Yan could only use orders and some persuasion to get Dong Wenxu to do as he asked.

Jiang Yan could also force someone in a very strong way, but he just didn't like doing that.

“Do you know how much soybeans our country imports every year?”

Dong Wenxu said bluntly: "A lot, tens of millions of tons."

He is a researcher in agricultural genetic modification and has only a superficial understanding of the industry.

Jiang Yan replied: "We imported 1.48 million tons of soybeans last year, and we are highly dependent on imports. In fact, our local soybean planting area is not low. Last year, the planting area reached million mu."

“But why is the soybean industry so dependent on imports?”

Dong Wenxu is very clear about this. Basically, this issue is discussed at the annual agricultural research industry conference, and he is more or less aware of it:

"Because compared with the United States or South American countries, China's soybean yield per mu is too low and the planting cost is too high."

Jiang Yan continued, "Yes, but even though our soybean yield per mu is low and the cost is high, we still have to produce it ourselves. Why do you think that is?"

Domestic subsidies for soybean planting are relatively high. Since 2016, the subsidy for corn is 100 yuan per mu, while the subsidy for soybeans is 200 yuan per mu.

Soybeans are imported into China, and soy products such as tofu are only used in a small area. The largest uses are still in two areas: oil extraction and breeding.

The soybean meal left after soybean oil is extracted has a crude protein content of over 40%, making it an excellent feed ingredient.

Jiang Yan continued to ask: "Then can we guarantee that the domestic soybean production rate of less than 20% will not be strangled?"

The price increase caused by material shortages will not be, for example, if the amount of rice is 5% less than what we need, the price of rice will increase by 5%.

It will not be like this, but if rice is 5 percent less than the demand, the price will rise to the point where 5 percent of the people cannot afford rice.

Not to mention soybeans, of which the dependence rate is over 80%. A soybean supply cut would mean that no one could afford pork.

Dong Wenxu shook his head: "No."

Jiang Yan: "So the work we do is of great significance, and this is also the most important task for me in the short term."

"We can use a combination of genetic modification and hybridization technology to cultivate soybean seeds suitable for the soil environment in northeast China."

"If you do it well, it will benefit the present and future generations!"

Dong Wenxu has been engaged in scientific research and lacks social experience, but he is not stupid, especially in the digital age when information interaction is very fast.

He didn't know Jiang Yan's identity, and felt that he was just making empty promises, and he made them sound so noble:

“Okay, I’ll sequence the genes of these soybean cells first, and then study the differences in their traits.”

"But I still have one thing I want to ask." Dong Wenxu stood up and walked out, then turned back and asked.

Jiang Yan raised his head: "Just tell me straight."

Dong Wenxu asked:
"Teacher Jiang, how can you ensure that the genetically modified soybean seeds we cultivate through genetic modification and hybridization can be approved for marketing?" "You should know that the genetically modified soybean seeds developed by Beinong Technology two years ago have been approved for marketing in a South American country, but that seed variety has not been approved in our country so far."

"There is a college classmate of mine in the research and development team of that soybean seed, so I know more about it."

“I’m afraid your power is not greater than that of the Beinong Group?”

There has been a lot of discussion about GMOs in China, and it has become no longer a scientific issue but a metaphysical issue.

Some people believe that if you eat genetically modified animals, your genes will be transferred to you.

Jiang Yan laughed. You underestimated me. "Just wait and see tomorrow's news."

The next day, while Dong Wenxu was having lunch at the Agricultural Research Institute, he received a link from Jiang Yan:

"The standards for the approval of genetically modified varieties have been made public, and the commercialization of genetically modified seeds has been further promoted"

Let’s look at the text again:
"According to the official website of the Ministry of Agriculture, on December 12, the Ministry of Agriculture announced the notice of the Office of the National Crop Variety Approval Committee on soliciting public opinions on the national genetically modified soybean and corn variety approval standards (draft for comments).

It is planned to be released and implemented after the revision of the "Measures for the Approval of Major Crop Varieties" is completed. The deadline for feedback is December 2021, 12. "

Dong Wenxu realized that Jiang Yan might be some great boss, "Is there any agricultural boss in China with the last name Jiang?"

"With his power, I wonder if he participated in the drafting of the draft for comments or if he got the news in advance."

Dong Wenxu guessed wrong. This draft for soliciting opinions was promoted under the direct instructions of Jiang Yan, who was the decision maker.

"But no matter what, he is a big shot. Since he is a big shot, we should hold on to him tightly."

The most important thing in the domestic capital market is not technology or fundamental analysis, but news. The most amazing ability is to be able to get news in advance.

As for the power of the ministries, those who are interested can learn about the ins and outs of China's new energy industry.

Kechuang Biotechnology's headquarters in Suzhou has huge cash flow since its listing, with more than 40 billion RMB on the books, and its market value has exceeded one trillion.

Kechuang Biotechnology has become a heavily-held stock by major funds in China, especially large public funds that prefer to hold Kechuang Biotechnology.

Because Kechuang Biotechnology is a large-cap stock with a market value exceeding one trillion yuan, the rate of return from private equity allocation will not be too high and cannot be pulled up by a single institution.

Public funds do not have as high profit requirements as private funds, so they prefer to hold stocks with deep enough moats, good financial statements, and preferably with certain technical content. Ke Chuang Biotechnology almost perfectly meets the needs of public funds.

Why are large public funds keen on holding shares in companies such as Moutai, CATL, and Tongce Medical in recent years?

Like Moutai, its unique fermentation pools, soil, geographical environment and microbiome, coupled with its unique reputation, are its deepest moat.

(To be honest, among Moutai, Wuliangye and Luzhou Laojiao, I personally think Moutai is the best tasting, and it’s not just a psychological effect.)
Moreover, Moutai's profits are high enough, so public funds including foreign capital have built up large positions in it.

The moat of Kechuang Bio lies in the monopoly nature of its technology and its equally high profits.

Once Kechuang Biotech fails to guarantee technological monopoly, it will quickly face the problem of valuation cuts. Kechuang Biotech's market value has fluctuated back and forth between 1 trillion RMB due to the brain-computer connection technology of Musk's company.

(End of this chapter)