Return to 1958 and build a century-old giant
Chapter 942 Agricultural Whole Industry Chain Layout
Chapter 942 Agricultural Whole Industry Chain Layout
"Mr. Ueberroth, welcome to the team." On the balcony of the presidential suite at the Four Seasons Hotel in Los Angeles, Yang Wendong greeted the person opposite him with a smile.
“Boss, just call me Peter,” Peter Ueberroth said with a smile.
“Okay, Peter.” Yang Wendong nodded and added, “This is my son; you can call him David.”
Nowadays, Yang Wendong brings his son along to basic business negotiations or meetings with his subordinates. The son doesn't need to participate, but he needs to listen; this is the most basic requirement.
"Hello, Mr. Ueberroth," Yang Zhiwen said politely, shaking hands with him.
Peter Ueberroth shook hands in return: "Hello."
"Please have a seat, coffee is ready here." Yang Wendong asked, "How did your talks with Goldman Sachs go? Barney was also very satisfied with your assessment."
“The talks went very well. Over this period of time, I have also gained a certain understanding of the basic situation of global agriculture, and I need to reach an agreement with these large capitals on some issues.” Peter continued, “Similarly, I would like to communicate with you again.”
Yang Wendong said, "Okay, please go ahead."
Previously, they had only invited the other party to join, which was quite sudden for Peter, so naturally, he couldn't prepare any materials.
Furthermore, Yang Wendong only has a general understanding of the global agricultural market. What his group should do in the future requires analysis by highly professional people.
As a time traveler, he is good at making decisions, but he is not familiar with the specific details. Every coin has two sides.
Peter said, “In South America, due to the economic crisis, a large number of farms have fallen into debt crisis. This is a good opportunity for us to buy at rock-bottom prices. Even some state-owned farms may take the opportunity to sell at low prices because the local governments are also very short of foreign exchange.”
So buying land isn't difficult for us; the difficulty lies in what to do with it after we've acquired it.
Yang Wendong agreed, saying, "Yes, that's what I think too. What's your opinion?"
Peter replied, "My view is that in the early stages, we should maintain the old planting model and hire the original team to manage the farms and ranches. We should first ensure that the previous business does not collapse due to debt and economic problems. In fact, this is the same as in industry."
"Well, what's next?" Yang Wendong then asked.
Peter said, “That depends on your future decisions, boss. If you just want to hoard land, then continue with this model. As long as you maintain the financial risks, you can continue to expand the farms we own in this way.”
"But if you want to go further, even to the level of companies A, B, C, and D, then you need to delve deeper into the industry chain."
"Go deep into the industrial chain? How do you mean to go deep?" Yang Wendong asked rhetorically. "Do you mean to do the same research on genetically modified seeds as them? That's very difficult. But if you want to try, I have no objection. We can set up a research center in the United States specifically for this purpose, with you leading the establishment of the center."
The three great engineering feats of the 20th century were the Manhattan Project, which developed nuclear weapons and nuclear power, the Apollo program, which led to the moon landing, and genetic engineering.
Many targeted cancer drugs and antiviral drugs that have emerged since the 21st century are based on genetic engineering from decades ago.
Similarly, the genetic modification technology, which has been criticized by countless netizens in later generations, is also a product of genetic engineering.
But a technology or a weapon is not inherently evil; the key lies in the person using it.
The safety of food produced using genetically modified technology is controversial, but even if it is, other uses of genetically modified technology are also very important. For example, its use in cotton is purely beneficial and harmless.
Later, ABCD used genetic engineering technology to completely control many basic food seeds around the world, which is also one of the most powerful weapons of Western countries.
Peter replied, “That’s very difficult. Even with your approval, I would need to conduct a more detailed investigation and consult with some professionals.”
"Yes, we definitely need to be cautious. Bioengineering is very expensive," Yang Wendong agreed.
Biotechnology is as complex and costly as aerospace and car manufacturing. In the past, various targeted drugs required billions of dollars and more than ten years of time investment. Even the industrial giant of the past, Kluge, was weak in this area, even worse than in the chip industry.
"Let's put aside the genetic aspects for now. What I originally wanted to talk about was the downstream of the food industry chain," Peter said. "If it were just about working with investment banks on Wall Street, I wouldn't be considering these things, but working with you is different."
You have a vast industrial conglomerate in Asia, and even a food conglomerate, which can be combined with farms in South America. You also have a shipping fleet—it's a perfect supply chain. You're even a shareholder in many large supermarkets; it's simply perfect.
"You want me to develop a complete agricultural industry chain from top to bottom?" Yang Wendong said seriously.
Although his Watsons in Hong Kong is in the food processing industry, Cheung Hing Trading also participates in some grain trade, and he even has sugarcane farms in Southeast Asia.
However, compared to the entire agricultural and food industry, these can hardly be considered an industrial chain; they only have certain advantages within a specific region.
Peter said, “Yes, think about it. Our own farms produce grain, which is then shipped to processing plants in Asia via our own fleet. It is then processed into various grains and agricultural products, which are then delivered to different supermarkets around the world.”
Asia accounts for more than half of the world's population, and its economy has developed rapidly in recent years, resulting in a high demand for food. You also have a rich network of connections in Asia; by making full use of this network, you can minimize various costs.
Yang Wendong nodded and said, "That's feasible. So, what's the specific approach?"
This is indeed feasible. Over the years, he has made investments in multiple industries, but unexpectedly, he has now inadvertently connected the entire agricultural industry chain.
Peter replied, “I did some research, and in South America, the main crops are soybeans and corn, which are grown in rotation. This is because soybeans can fix nitrogen and help fertilize the soil, and then planting corn will have a much better effect.”
Therefore, we can develop markets based on these two crops in the future. Asia still has a high demand for corn and soybeans.
"I didn't expect you to even know about nitrogen fixation in soybeans. Impressive, looks like you've done your homework." Yang Wendong said in surprise.
Soybeans are grown in many parts of the world, partly because of their high demand, as they can be used to make oil and soybean meal as animal feed, and partly because they can fix nitrogen and increase soil fertility.
Soybeans are also the only major crop that can fix nitrogen and can be produced in large quantities.
In the past, the soybean war between Dongda University and the Americans involved not only soybeans themselves, but also other crops such as corn. If soybeans were not planted, the soil fertility would be ruined if corn was planted several times, or they would have to spend a lot of money to buy fertilizer, which was not cost-effective.
“It’s what I should do,” Peter replied with a smile. “So I hope Mr. Yang can develop more soybean and corn customers in Asia and the Middle East.”
"The more customers you have, the more funds I can raise through bank loans to purchase more farms or even reclaim some wasteland." "In other words, the Asian market is the key," Yang Wendong nodded.
Peter said, "Yes, in Europe and America, the market is basically controlled by ABCD or other companies. It won't be easy for us to seize market share."
“Leave this to me; the demand for this in Asia and the Middle East should be considerable.” Yang Wendong paused and said, “However, I have another idea.”
Since we're going to build an industrial chain, why not go a step further and also take over the end-product industries of soybeans and corn?
"The end-use industries of soybeans and corn? You mean oil production?" Peter was a smart man and immediately understood.
Yang Wendong said, "Yes, if we have a world-class top-tier soybean oil or corn oil production industry, then the demand from end users will be even higher, and it won't affect our own trade in Asia, right?"
Peter thought for a moment and said, "That's possible. This industry isn't too difficult, and it won't be hard for you to get involved. But how do you acquire enough customers? If you want to scale up, where is the market? Asia?"
Yang Wendong nodded and said, "Yes, it's also in Asia, but the main target is the mainland. This country has a population of 10 billion and its economy is starting to develop. The demand for food and oil is very high, making it very suitable to be our long-term and stable customer."
The previous incarnation of Golden Dragon Fish should have been born around the 90s. What it seized was the business model that many people in China at that time still used ancient methods, such as oiling.
In other words, there was a large vat of oil in the small shop, and people from the neighborhood would bring oil jugs or glass bottles to buy oil.
In the past, there was no problem, but with economic development and urbanization, this has obviously become outdated. When Golden Dragon Fish launched its cooking oil in plastic bottles, it immediately became a hit.
He hadn't originally considered doing this business because there was no industry chain, but since Peter wanted to build one, he figured he could get involved and further improve the entire industry chain.
Of course, this is not only the case in mainland China, but also in many Southeast Asian countries. These are all opportunities.
In the 80s, when the economy was booming, there were so many opportunities. However, given the current scale of his business, which is not very large, he would not participate even if he knew about them. At most, he would just arrange for someone to invest in suitable companies.
Edible oil itself is a trillion-dollar market, and it also greatly helps upstream agricultural products. This can further ensure its land hoarding plan in South America. Only stable orders can stabilize finance, and then finance can have more funds to purchase land, which can reduce agricultural production costs and ultimately feed back to the factory, achieving a virtuous cycle.
“The mainland?” Peter thought for a moment and said, “I don’t know much about the mainland, so I won’t comment.”
“It’s alright, leave this to me. I’ll take charge of the Asian side,” Yang Wendong said. “Regardless of whether I can achieve anything in the mainland or Asia, you just need to execute the plan as scheduled. Acquire large farms in Brazil, Argentina, and other places, and then continue to grow the previous crops.”
Even if I achieve success, it will take many years. So in the early stages, don't consider my involvement; just operate according to your own business plan.
The mainland's economy began to rise in the 90s, and even if I were to be very successful, it would definitely take several years or even a decade to open up markets in other Asian countries.
This is inevitable. This applies to traditional industries as well as the computer industry. Only the internet, with its established user base, has enabled the internet industry to rise rapidly within two or three years.
Peter replied, "Okay, then I'll prepare to go to Brazil and Argentina to check on the local economy and farm conditions. After I've gathered some information, I'll go to Hong Kong to discuss things with you."
“Okay, sure, but be careful. South America is still quite chaotic, not just with people, but also with wild animals and local epidemics,” Yang Wendong reminded them.
Many people from the mainland in their previous lives lived in cities and basically forgot about the threat of wild animals;
Many places overseas are very dangerous. For example, when he went to Australia, the local guide warned him many times not to go into the tall grass, because there was a high possibility that some kind of poisonous snake or insect was lurking there.
If bitten by a highly venomous creature, even the US president or the world's richest man could very likely die.
In places like South America and Africa, epidemics are a major headache, as mosquitoes may carry certain viruses.
Peter nodded and said, "I know, don't worry. I'll mainly stay in the big cities in the area, and I'll take precautions when I go out."
"Okay, then thank you for your hard work." Yang Wendong stood up again to shake hands.
“Boss, it’s what I should do,” Peter said with a smile.
After Peter left, Yang Wendong said to his son, "You just heard it, what are your thoughts?"
After thinking for a moment, Yang Zhiwen said, "It feels like Daddy, with just a few words, you decided on investments of billions or even tens of billions of dollars, and easily determined the fate of countless people in Asia and South America."
“Haha, you’re absolutely right. At our level, a single decision can affect the economy of tens of thousands of people, a region, or even a country.” Yang Wendong nodded and said, “That’s a kind of supreme power. Many people enjoy this power, and it’s what many people aspire to.”
Financial freedom is already achieved by some successful small business owners, but they still continue to work hard and desperately to make money, even illegally, because what they want is the feeling that comes with this supreme power.
Yang Zhiwen continued, "But we also need to be very cautious. If we rely on external funding and there are any risks involved, the consequences could be severe."
“Yes, you’ve learned something,” Yang Wendong agreed. “However, if we want to develop rapidly and become a figure who influences the global economy, we can’t rely solely on our own funds.”
Looking at the world, no one truly develops solely through their own funds; everyone leverages the resources of others. Therefore, you need to learn this lesson. However, caution is also essential; in the future, you need to prioritize prudence.
Even in his early days, as a time traveler, he had to borrow money from banks to develop his career;
However, by the second generation of the Yang family, there was no need for further aggressive investments. It would be quite good if they could maintain the empire they had built.
PS: Please give me a monthly ticket
(End of this chapter)
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