Layout of Four Major Grain Merchants in China
The action of American ADM company in China is obvious. Yihai (China) Group, a joint venture with Singapore Fengyi Group, is a typical representative of ADM expansion in China. Yihai Group was founded on 200 1 and its headquarters is located in Lujiazui, Shanghai. At present, the Group has 38 directly affiliated factories and trading companies in China, and also participated in many well-known domestic grain and oil processing enterprises such as Lu Hua. These factories are located in major coastal provinces such as Hebei, Shandong, Jiangsu, Fujian, Guangdong and Guangxi, as well as inland areas such as Sichuan, Hubei, Hunan, Xinjiang, Ningxia and Heilongjiang. Trading companies and offices have covered all provinces except Tibet, Hongkong, Macau and Taiwan Province. The group's annual oil seed crushing capacity is 6.5438+million tons, oil refining capacity is 3 million tons and separation capacity is 6.5438+million tons. Soybean meal exports account for more than 70% of the country's total annual exports, and it is one of the largest oil and oil processing enterprise groups in China. On the basis of vigorously developing oil and fat processing projects, the Group has also comprehensively entered deep processing projects such as wheat, rice, cottonseed, sesame and soybean protein concentrate, and at the same time invested in holding and participating in auxiliary companies such as railway logistics, storage bases, shipping and shipping agents, and diversified development. As early as 2005, Yihai Group began to shift its investment direction to other agricultural products processing fields and invest in Heilongjiang Yihai rice industry. From June, 5438 to February, 2005, Yihai (Jiamusi) Grain and Oil Industry Co., Ltd. was established, responsible for the group's northeast business development. Yihai (Jiamusi) Grain and Oil Industry Co., Ltd. cooperated with Heilongjiang Yihai Grain and Oil and Heilongjiang Liang Long Reserve Company to build a large storage base; Develop domestic and foreign trade such as rice and corn; Set up a logistics company to run through the transportation channel; Construction of corn and rice processing base; Establish a large grain processing base in Jiamusi and other high-quality rice and soybean producing areas. Yihai Group has established a perfect grain and oil management network in three northeastern provinces and parts of Inner Mongolia.
Cargill has established 27 wholly-owned and joint ventures in China, with its headquarters in Shanghai. Cargill has established feed mills, oil mills, high-grade candy factories and other processing plants in most provinces and cities in China, and has already laid out the chemical fertilizer market in China. Cargill established wholly-owned Shandong Cargill Fertilizer Co., Ltd. and joint venture Yunnan Sanhuan Sinochem Cargill Fertilizer Co., Ltd. in China. Except for the planting field, Cargill's chain in China is basically completed.
Bunky, which entered the China market late, has more than 450 factories in 32 countries around the world. Among the four major grain merchants, it is famous for paying attention to the integrity of the industrial chain from farm to terminal.
Louis Dreyfus had a feed and grain trade with China as early as 1960s.
WTO's transition period for foreign-funded enterprises to enter China's grain circulation field ended in 2008. That is to say, foreign capital can now engage in grain purchase, sale, storage, transportation, processing, import and export and other business activities in China. China is a country with a large population, as well as a big producer and consumer of grain. Faced with such a huge market in China, foreign grain merchants headed by the four major grain merchants are gearing up, hoping to get a slice of it. For the grain market in China, it has been debated whether wolves or catfish will promote the healthy development of the grain market in China.
The entry of foreign capital has brought panic to some domestic grain enterprises. Some people worry that after foreign capital enters the grain circulation field, relying on its strong strength, it will dominate the domestic grain circulation pattern through mergers and acquisitions and cooperation, squeeze the living space of domestic grain enterprises, control domestic food prices, threaten the survival of domestic grain enterprises and then endanger domestic food security. Therefore, it is suggested that the government continue to restrict the activities of foreign capital in the grain field by administrative means. Affected by this, according to media reports, some foreign-funded enterprises were rejected by local grain authorities when applying for grain purchase licenses. The reason is that the highest authorities have informed them to stop issuing licenses to foreign-funded enterprises.
Among the reasons against foreign investment in China's grain industry, the so-called "lesson" of the opening of China's soybean market is mentioned the most. In 200 1 year, China opened its soybean market to the outside world, foreign-funded enterprises flooded into China, and multinational giants began to get their hands on China's soybean industry. In 2004, after being severely suppressed by international investment funds, China's small and medium-sized soybean processing enterprises and local oil-squeezing enterprises were overwhelmed and declared bankrupt one after another, and were acquired by foreign investors at low prices. In 2008, according to the forecast of USDA, China will import 35.5 million tons of soybeans, and the dependence on imports will exceed 70% for the first time. Among more than 90 major oil-squeezing enterprises in China, 64 have become wholly foreign-owned or joint ventures, controlling 85% of the actual processing capacity in China. The pricing power of soybeans is basically declining. The "lesson" of the soybean market is vivid, and many people think that the full liberalization of the grain market may repeat the same mistakes.
However, according to the analysis of insiders, the control of China soybean pricing power by "ABCD" enterprises is not only to obtain processing profits, but to carry out a very huge global strategic layout, and China is only one part of this layout.
After multinational grain merchants controlled the soybean market in China, they formed the layout of raw materials abroad and processing China in the world.
Third, the international grain market under the integration of the four major grain merchants.
Whether people want to believe it or not, the four major grain suppliers of "ABCD" control 80% of the world's grain trading volume, and the voice of "only they can set prices" is endless. This seems unfair, but it is more a kind of helplessness. In the context of the integration and reorganization of various international markets, the international grain market is far ahead, and the four major grain suppliers occupy most of the international grain market with absolute advantages and control the grain trade of many countries. And has maintained countless ties with many governments, which further strengthened the "Jianghu" status of the four major grain merchants. Nothing seems to stop them from attacking the city everywhere. The way is to occupy the grain market and control the grain market through futures. The most dangerous thing is that the four major grain merchants operate in a one-stop group, from the production links such as seeds and fertilizers to the establishment of their own transportation channels, and the whole chain is controlled. It is precisely because of the chain development model that it is easier for the four major grain merchants to control food prices and profit from them. Bunge did not hesitate to attribute his miraculous performance to the high food prices in the international market. Although there are also investments in minerals, the agricultural sector has always been the strongest in Bangji. In 2007, the business in various regions increased, and in Europe and South America, the profit of grain development and oil crop processing increased; In North America, grain exports have greatly increased.
The four major grain suppliers have different business models because of their different business priorities. For example, in the field of biofuels, ADM, which has always been famous for its emphasis on research and development, quickly became the largest bioethanol producer in the United States almost at the beginning of the emergence of biofuels. After former US President George W. Bush put forward the biofuel plan, ADM fully supported it, while other grain producers were much more cautious. So far, Bunge has only one wholly-owned sugarcane ethanol production plant in Brazil. It was not until 2006 that Louis Dreyfus began to build the first plant with an annual output of 8,000 gallons of biodiesel in the United States. As for Cargill, although it also produces ethanol, the enthusiasm for providing biofuel technology and services to interested investors seems to exceed their own enthusiasm for investing in production. The difference between the four major grain merchants lies in their different judgments on the future direction of the market. Cargill, as the representative, believes that the price increase in the grain market can not effectively curb demand, nor can it effectively expand cultivated land, so there will not be much grain available for biofuels in the future. In addition, the future development of biofuels depends directly on the price of oil. If oil prices fall, biofuels will be unprofitable.
Although the four major grain producers control more than 80% of the world's agricultural trade, their influence is beyond doubt as long as they are willing to move in one direction tacitly. Therefore, many people are worried that the free trade system of agricultural products will face collapse, so governments all over the world take actions to protect their own food security. Ge Noren, chairman and president of Cargill Investment (China) Co., Ltd., once said that there is a competitive relationship among the four major grain merchants, and it is difficult to form a unified interest trend without a cooperative organization like the Organization of Petroleum Exporting Countries. However, the "energy" of the four major grain merchants should not be underestimated, and the reactions of various countries are not groundless. This also proves the strength and influence of the four major grain merchants. In the international grain market environment based on competition, it is difficult for the powerful four grain merchants to surpass them, and their next actions will also attract close attention from all countries.
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