Chapter 46: Staple Grain Business, Four Major Grain Merchants

[Chaoqun Group] has wanted to get involved in China's staple food business for a long time, and its development in the fruit industry has also faced bottlenecks.

If you want to continue to expand your influence in agriculture, you must either expand overseas or expand your business scope.

And the current global environment is not suitable for [Chaoqun Group] to go overseas for fear of poisoning its employees.

So we can only expand our business scope.

Entering China's staple food market is the [Chaoqun Group]'s first choice.

To be honest, if you don't have a place in the staple food market, you can't be called an influential agricultural enterprise or grain merchant.

The most famous grain merchants in the world are the four giants.

[adm], [Bunge], [Cargill] and [Louis Dreyfus] are four giant grain merchants. The first three are beautiful Chinese companies, and the fourth is a French company, but this French company still has a beautiful Chinese background. .

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Many people use the four letters [abcd] to replace these four multinational companies!

These four companies have a history of more than a century. From farmland to table, the four major grain merchants control the entire industrial chain and control 80% of the world's grain transactions.

Founded in 1905 and located in Illinois, ADM is the world's largest corn, wheat and oilseed processing giant. About two-thirds of its revenue comes from the processing of soybeans, peanuts and other oilseeds. ADM's companies are located in more than 200 countries and regions around the world. Except for Antarctica, this is the scary thing about ADM. Wherever there are people, there are food giants.

Cargill was founded in 1865 and has a history of 100 years. Its headquarters is located in the beautiful state of Minnesota. It is a multinational enterprise mainly engaged in bulk commodity trading, processing, transportation and risk management. Cargill, which has ranked first among unlisted companies on the Forbes list for 29 consecutive years, is also the largest private capital company in the United States.

Bunge is Brazil's largest grain exporter, the second largest exporter of soybean products, the third largest grain exporter and the third largest soybean processor in the United States, the world's fourth largest grain exporter and the largest oilseed crop processor. It has more than 400 factories and more than 350,000 employees in more than 40 countries around the world. In 1999, Bunge officially moved its headquarters to New York.

Louis Dreyfus was founded in Paris, France in 1851. At first, it mainly distributed European grain export transactions. After more than 100 years of development, it has gradually become a large-scale transnational grain trader. At the same time, it is the third largest grain exporter in the world and the largest grain trader in France, and has been deployed in the European market for many years. It has multiple ethanol production plants in Brazil, South America, and its business covers many countries.

These four major grain merchants have been deeply involved in the Chinese market for many years.

In 2000, Meiguo ADM and Singapore Wilmar Group jointly established Yihai (Huaguo) Group, also known as Yihai Kerry. Only one year after its establishment, the group directly controls more than 40 companies in the Chinese market.

Its production plants are located in 26 provinces including Shandong, Hunan, Yu, Zhejiang, Fujian, Guangdong and Heilongjiang, and have more than 300 processing and production workshops. Its products such as [Golden Arowana], [Orchid Flower], [Xiangmanyuan], [Poseidon], and [Golden Weigh] were all mistakenly thought to be domestic products.

Cargill, a beautiful country, began to enter the Chinese market in the 1990s. Currently, Cargill is one of the major grain and oil suppliers in China. At the same time, Cargill is also involved in the procurement, processing, transportation and sales of agricultural products. It has more than 30 animal nutrition factories in China to produce related pet foods.

Beautiful Country Bunge has been an exporter of soybeans to China since around 2000. It began to set up soybean processing plants in China in 2004 and currently has more than 450 factories in 32 countries around the world. Among the four major grain merchants, it is famous for focusing on the integrity of the industrial chain from farm to terminal.

As for France's Louis Dreyfus, it has a very close relationship with the Chinese market. Although this company has not directly entered the Chinese market, they occupy an extremely important position in the import and export business. Most of the raw materials for products such as wheat and cotton are controlled by this company.

It is worth noting that this company also has a domestic trade license for corn products in my country. It can not only sell corn domestically, but also export it.

Overall, the four major grain merchants control 80% of the global grain market. The most important factor behind this is that the four major grain merchants control a one-stop industrial chain. All aspects of grain planting, processing, export, and transportation are controlled, making it almost effortless to enter the markets of various countries. It is precisely because it controls the industrial chain that it has the power to price food!

Kissinger, the former Secretary of State of the United States, once said: "Whoever controls oil controls all countries; whoever controls food controls mankind; whoever controls the right to issue currency controls the world."

The influence of the four major grain merchants is evident!

[Chaoqun Group]’s agricultural business is just a little brother compared to them.

These four major international grain merchants compete with each other on a global scale, and sometimes they unite with a tacit understanding to suppress latecomers.

[Chaoqun Group] has previously tried to intervene in the rice market, a staple food in China. In Hunan Province, uu read

Invest in major rice-producing areas such as Guangdong Province and Guangxi Province.

However, due to joint suppression by the four major grain merchants and domestic giants, this investment came to an end without making much splash.

They do not want [Chaoqun Group], which is the leader in the fruit supply chain industry and fruit retail industry, to successfully enter this industry. They are worried that [Chaoqun Group], with its rich agricultural operation experience and strong financial resources, will gain a firm foothold in this staple food industry. , and continue to erode their interests.

You should know that from 2016 to 2019, the scale of China’s fresh fruit retail market increased from 0.87 trillion yuan to 1.49 trillion yuan, with a compound annual growth rate of 10.2%; the scale of China’s fresh fruit distribution market increased from 0.68 trillion yuan to 1.23 trillion yuan. yuan, with a compound annual growth rate of 10.4%.

A large part of this profit was taken away by [Chaoqun Group].

[Hongjiu Fruit], which ranks second in the fruit supply chain, has adjusted net profits of 228, 662 and 604 million yuan in 2017, 2018 and 2019 respectively, with net profit margins of 11.0%/11.5%/11.2% respectively. There is no [ Chaoqun Group]’s profits from related businesses are more than a fraction.

In 2020, [Chaoqun Group]’s [Snow Banana] will be popular around the world, which will bring [Chaoqun Group] even more terrifying performance growth and unimaginable huge profits, at least one percent. One hundred, two hundred percent or more profit growth.

Not only in the fruit supply chain and retail industry, but also in the industries in which [Chaoqun Group] is involved, it has basically reached the top three in the industry, or is the leader, and has taken away the largest profits in the industry.

Many relevant industry insiders say that [Chaoqun Group] is the [Apple] in the industry. It not only has the best reputation, but also takes away the largest profits.