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 can 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 on the one hand. 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.
WTO's transition period for foreign-funded enterprises to enter China's grain circulation field ended in 2008. In other words, starting from 2008, foreign capital can engage in business activities such as purchasing, selling, storing, transporting, processing, import and export of grain 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 China's soybean market opening 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 lessons of the soybean market are vivid, and many people think that the full liberalization of the grain market may repeat the same mistakes.
However, according to the analysis of the industry, the control of China's soybean pricing power by enterprises is actually not only to obtain processing profits, but also to carry out a very huge global strategic layout, and China is only one part of this layout.
From the development path of the above four major grain merchants, we can learn from their beneficial experience and master the grain industry chain, and the business scope should be extended to include agricultural technology research and development, planting, grain purchase, storage and transportation, grain deep processing, product storage and transportation and sales.
It promotes the integration of grain trade, accelerates the effective allocation of grain resources in the world, and fully embodies the powerful force of "invisible hand" under the market economy. The development of the four major grain merchants in China reflects the correct measures taken by the China government to actively integrate into the world, broaden its horizons, vigorously develop the market economy and reduce ethnic narrowness, which has promoted China's international cooperation at the benchmark level.
On the other hand, we should also pay attention to the influence of the existence of the four major grain merchants on domestic food prices.
To sum up, the existence of the four major grain merchants in China has advantages and disadvantages.