#445 - Dark War
#445 - Dark War
After discussing the potential threat of the Rogue Eagle in agriculture, Ding Wei changed the topic.
"Brother Ren, our farms in Black Africa are showing promising growth of corn and millet. The harvest at the end of the year should be good. Have we decided whether to sell to the local authorities at a low price? If so, we'll lose a lot of profit. Considering the investment in planting machinery and equipment, at the current price and profit conditions, it will take us at least seven or eight years to break even."
"That principle remains unchanged. We'll focus on growing good grain and keeping the farm from losing money. Breaking even in seven or eight years is good enough," Ren Zhong said, knowing what Ding Wei and the others were thinking. The current grain prices are indeed disadvantageous for the farm, costing them at least ten percent of potential profit.
A plantation covering hundreds of thousands of acres is a considerable investment. After Ding Wei took charge of the agricultural company, money was needed everywhere. The first half of the year was all expenses, with tens of millions spent. They were waiting to recoup some of that through grain sales. Although the money for the machinery and equipment wouldn't be recovered in the short term, every bit of profit helped.
However, Ren Zhong's ambition lay elsewhere.
He was looking at long-term benefits. In his view, the current colonial authorities wouldn't last more than a few years. Just like in the main world, people here had gone out to study new cultures and felt entitled to take charge, coupled with the examples of independence movements everywhere.
If these people were to connect, Black Africa would soon be swept by a wave of independence.
Ren Zhong saw the plantation as a way to offer assistance. After all, Dongda had arrived late, and the era of using force was over. Now, they needed to do something to show these people some hope. The most important thing for these plantations and farms was to establish a positive image locally, demonstrating their commitment to feeding the local population.
Ren Zhong emphasized.
The current situation in John Bull's colony was becoming very delicate. The colonial authorities were negotiating with local tribes, discussing conditions for limited autonomy or full independence. Different regions had different considerations. If the local resources were essential to John Bull, the idea of independence would be suppressed by force.
Those clever individuals emerging from these tribes would likely face unexpected accidents.
However, for some less valuable regions, with only people and no good mines, the colonial authorities had to find ways to support them. In such places, John Bull was preparing to let them graduate and play on their own.
But for Ren Zhong, with his perspective-enhancing abilities, the absence of mines didn't necessarily mean they didn't exist. Therefore, he treated everyone equally, trying to open large-scale plantations in densely populated areas, because grain was even more important there.
As for those independent tribes trying to seize resources by force in the future, Li Yunlong would teach them what civilization, politeness, and the three loves were. We can give you things, but you must understand the rules and not steal!
If one tribe doesn't understand, then we'll switch to a more sensible tribe.
In a luxurious conference room on Wall Street.
"We must not give those countries the illusion that using Dongda's hybrid technology can solve the global food shortage," said George, the chairman of Cargill, tapping the table. "Over the past week, due to the spread of news about the success of Southeast Asian hybrid rice and the 30 million mu new plan, our wheat prices for next year have fallen by 11.5%. As a result, our profits in the North American grain industry have been almost entirely swallowed up by this news!"
"Yes, our corn prices have also fallen by 15%, and orders have decreased significantly. Those who originally used corn as a supplement to wheat to create new flour varieties are now using rice as a substitute, putting even greater pressure on us in terms of price.
They expect us to continue to reduce prices by 20%. According to their estimates, next year's increased rice production in Southeast Asia will exceed 5 million tons, which will further drive down grain prices. After all, grain prices in the past few years have been at post-war highs, and it is normal for prices to return to a rational level as supply increases," said Solomon, the owner of Bunge, with a gloomy face. "Although that's the situation, our companies have only had a few good years. Are we going to return to the miserable days of the past? No, we must not let this happen."
"Then, gentlemen, what methods do you have to reverse this situation?" Williams, the owner of ADM, tapped his cigar and said in a deep voice.
Only these giants were present, so they could speak their minds without reservation.
"We must stop Dongda's 100 million mu hybrid grain plan. From now on, we must sabotage their efforts to implement this plan. We must not only prevent the promotion of hybrid rice in Southeast Asia, but also be wary of their plantation plans in Black Africa. Although there is no data yet to show that they have achieved great success, according to the disclosed information, they have already established a dozen large-scale plantations of over a million mu in Black Africa, and they have already planted one season, claiming that they can solve the local food supply.
If that's the case, just Black Africa alone will have several million tons more grain supply. What's even more frightening is that after these Dongda people prove the suitability of grain cultivation in Black Africa through these plantations, countless copycat companies will probably follow suit, because land in Black Africa is really too cheap," Cargill Chairman George continued.
They were all very clear about this information, but now that George had said it, everyone suddenly felt a little creeped out. This was only the first year, and these people from Dongda were already trying to add tens of millions of tons of new grain supply to the world. If they weren't stopped, they might add tens of millions of tons of new grain supply next year.
How could they maintain their high grain prices?
"We must take action. In the Amazon basin, we will plant a large amount of cotton and corn next year. At the same time, we will continue to increase the amount of corn used to make ethanol. The planting area of rubber and coffee in Latin America must also be further expanded to reduce the grain planting area. We must reduce at least 10 million mu of grain to offset some of the increase," George, chairman of Cargill, said with a fierce look. "In addition, we should ask the meteorological department to release more news in terms of public opinion, and report more on the disastrous climate in Southeast Asia, so that people believe that the climate in Southeast Asia next year is not suitable for growing grain at all!"
"We will increase the purchase price of coffee beans and vigorously promote the benefits of planting coffee beans in Southeast Asia. We must give the locals a very detailed comparison of the benefits of planting coffee beans, which are far higher than those of grain, even hybrid rice cannot compare."
Although this trick is traditional, it is difficult for people to refuse in terms of effect. After all, farmers grow land not for charity, but to make money. They only need to plant enough grain for the whole family to eat. For other land, they will follow the market demand. Whichever has good economic benefits, they will plant that. There is no big picture at all. If the purchase price of coffee beans is really raised to be more cost-effective than the price of grain, then many people will change to planting coffee beans.
The same is true for cotton.
They can strongly promote the planting of cotton in places around the world that are suitable for planting cotton, while continuing to grow a large amount of wheat in their North American homes to ensure that their own grain production will not decrease.
These three grain suppliers, plus Louis Dreyfus of Gaul Rooster, almost monopolize more than 50% of the global grain supply. They can really turn clouds and rain in the grain market and have a monopolistic pricing power position. From the abbreviation of the company name, these four just form the four letters ABCD.
But that was before Dongda EIC took action.
Now, Dongda International Agricultural Cooperation and Development Co., Ltd., led by Ding Wei, focuses on the planting and promotion of hybrid rice and other hybrid grains. In Southeast Asia, it promotes seeds, but in Black Africa, it mainly operates directly-managed plantations. According to the plan, it must do at least 50 million mu or more. In this way, EIC's directly-managed planting scale may be the largest agricultural company in the world.
However, no one knows yet whether EIC can really do this.
"I think these can all be tried, but what about those Dongda plantations in Black Africa?" Williams said coldly, "We can't stop others from growing land."
"If we can't do it, let people who can do it do it. The labor cost in Black Africa is not high. Perhaps many people hope to earn some quick money. Maybe we can set up a foundation to help those natives in Black Africa to protect their rights to land and homeland," George said sinisterly.
"Our friends at John Bull's house, we must advise them to start now and conduct strict reviews of foreigners planting land in Black Africa. We must also re-examine the legality and compliance of previous unreasonable land leases."
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What George said made people shudder, but Williams and Solomon's eyes lit up and they nodded frequently.
"Our experts in the scientific community should also raise questions about the hazards of hybrid varieties. If there is no more than ten years of scientific research and experiments to prove that these varieties are not harmful, then their safety cannot be proven. At least in the Western world, we should legislate to restrict the sale of hybrid varieties, including but not limited to restrictions on specific groups, clear labeling of origin and varieties, special tariffs, and other measures," Solomon added with a sinister smile.
After a meeting, these three giants began to show their sharp fangs in the face of Ding Wei's promotion.
Mist Capital.
"Your Excellency Ambassador Jin, I am very sorry that the House of Commons has proposed a motion that is not conducive to agricultural cooperation between the two countries. Some of our members of parliament have asked us to investigate whether large plantations in Black Africa can guarantee the interests of the local people, and require that the number of local workers employed in large plantations should reach more than 50% to show that there is no discrimination against the local people.
On the other hand, in terms of planting varieties, some members of parliament have proposed that there should be a government-guided white list of suitable planting varieties."
Faced with the latest information conveyed by Howard, the foreign secretary of John Bull, Ambassador Jin's mind buzzed, and the CPU was almost burnt out.
As one of the main persons in charge of formulating the agreement for in-depth participation in agricultural cooperation, Ambassador Jin knew the important potential significance of this cooperation.
"Mr. Howard, our two countries have a solid foundation and a large number of consultations on agricultural cooperation, and have reached a cooperation agreement signed by both parties. If the activities of some members of parliament have a considerable negative impact on these formal agreements, all responsibilities arising therefrom will be borne by your party," Ambassador Jin said seriously to Howard after regaining his senses.
Now is the formal negotiation. Ambassador Jin will not have the slightest ambiguity about our position.
"Mr. Ambassador, I can understand your feelings," Howard said somewhat awkwardly. It was simply a hellish difficulty for him to explain such a reversal and seek the other party's understanding. "Our Minister of Agriculture, Jim Huck, has testified in the House of Commons that this cooperation is very beneficial to our John family. We are also persuading members of parliament not to initiate investigations and inquiries on this matter."
"But given our political structure, we have no reason to prevent members of parliament from proposing any motions."
"Mr. Howard, I don't think this is a question of understanding or not, but a question of national credibility. If the agreements reached by our two parties after serious negotiations cannot be observed, then what is there to trust in our international cooperation?" Ambassador Jin shook his head and thought of some information passed from headquarters. He did not soften his attitude towards Howard too much.
Because the headquarters judged that the current government was already crumbling due to the canal issue.
According to the prediction of a pivotal strategic research expert, John Bull will lose miserably in this unfinished canal war. They will not only unconditionally lose the right to profit from the canal, but also lose their influence over the Pharaoh's country, thereby losing one of the most important geopolitical countries in the Middle East and losing control over the Middle East.
Therefore, the current John Bull government is actually entering the final stage of struggle, and it is feared that there will be a new general election. Now it is a bit chaotic, and I am afraid that some people are tearing up the flag and embezzling money at the end. Therefore, Ambassador Jin is not very afraid.
(End of this chapter)
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