Chapter 250 Overcapacity

Chapter 250 Overcapacity

Chapter 250 Overcapacity
11 month 10 day.

Jiang Miao and his group arrived in the capital in a low-key manner.

As soon as he came, Shuya came to pick him up.

Hailufeng Company has a dormitory area in the suburbs of Beijing, where Jiang Miao, Shuya and others temporarily stayed.

In a place like this where it’s your own company, security work is easier to do and there’s no need to coordinate specifically with the hotel.

Jiang Miao looked out of the car window and saw two police cars parked on the roadside at the entrance of the dormitory area. It was obvious that the local authorities also attached great importance to the safety of Jiang Miao and his wife.

And as soon as he arrived.

That night, He Youwei's father He Jintang took her to meet several elderly people. No one knew what they talked about that night.

The next day, the news of Jiang Miao's arrival in Beijing spread among the top academic and business circles in Beijing.

People who hope to meet Jiang Miao are all asking about it, but such a meeting cannot be approved by Hailufeng Company alone. It also needs to be reviewed by the relevant departments and agreed by Jiang Miao himself before they can get the chance to meet.

Therefore, not many people were allowed to meet Jiang Miao and his wife.

Inside a villa in the dormitory area.

"Academician Li, long time no see, please take a seat." Jiang Miao shook hands with Academician Li from the Feed Association.

"In a few days, I will call you Professor Jiang and Academician Jiang," Academician Li joked.

The two of them took their seats.

Jiang Miao poured tea and shook his head with a smile: "Academician Li, you are joking. You can just call me by my name. After all, I am the younger one in age."

"Then I won't be polite, Miao! You won't have much time in the next week or so, so I'll keep it short." Academician Li was not too polite, he continued:
"I came to visit you this time mainly for two things."

"Academician Li, please feel free to speak."

"One thing is mainly about the Feed Association. At present, the cost of domestic feed is constantly decreasing. Many companies are undecided about whether to expand production in the future. They want to ask for your opinion."

"Opinion?" Jiang Miao took a sip of tea, thought quickly for a while, and then slowly said, "The industry is worried that there will be overcapacity in feed production in the future, and the market will not be able to absorb so much production capacity?"

"Yes! I have discussed this with my old acquaintances in the industry. The prices of animal protein and plant protein are falling, and production capacity is increasing year by year. The domestic market will soon reach a saturation stage, and there are many uncertainties in the foreign market."

Jiang Miao nodded slightly: "This trend is indeed very obvious."

Academician Li mentioned another thing: "Your company's oil tea production in southern Jiangxi seems to be quite large this year! Will the plant protein from those tea seed cakes enter the feed industry?"

Hearing this, Jiang Miao shook his head: "Tea seed cake has a relatively low protein content and is also toxic. Our company plans to use tea seed cake as a raw material for microbial fuel cells, biogas, and organic fertilizer."

"Microbial fuel cells, biogas, organic fertilizer? I have seen your company's experimental projects on this technology before, and the profit is barely acceptable." Academician Li obviously knew about these technologies.

"The project's comprehensive gross profit margin is currently around 5% to 8%." Jiang Miao did not hide anything.

For example, Haida Group’s pig farm is currently using this technology, and it was put into full production some time ago.

However, Haida Group uses pig manure as raw material, and its gross profit margin can reach about 20% to 30%.

Although tea seed cake is waste, if it is used to extract plant protein, its value is definitely much higher than pig manure.

But there is no way. The country's plant protein production capacity will definitely be seriously oversupplied in the future, especially plant protein used as feed. The production capacity of hundreds of millions of tons of soybeans is enough to crush the plant protein of other agricultural products.

Fortunately, the tea seed oil industry of Hailufeng Company has not been severely impacted, mainly because tea seed oil is of good quality and is a high-quality edible oil that is better than olive oil.

Currently, the retail price of Hailufeng Company's premium tea oil in the retail channel is 30 yuan per liter, which is close to the 27 yuan to 29 yuan per liter of peanut oil.

In the entire Gannan Branch, there are currently 24 acres of oil tea trees entering the fruit-bearing stage, and the production capacity is very sufficient.

Currently, the fruit harvest season of Camellia oleifera is generally concentrated in late autumn and early winter.

If the tea seeds are placed in an ordinary indoor environment without any special treatment, and the environmental humidity, temperature and other conditions are relatively normal, they can usually be preserved for 3 to 6 months.

Especially in the humid areas in the south, the shelf life may be shorter, while in the relatively dry areas in the north it may be slightly longer, but basically within this time range, it is prone to deterioration, mold, etc. over time.

If the tea seeds are placed in a dry, ventilated, low-temperature environment, such as a temperature below 10 degrees Celsius and a humidity below 60%, and the tea seeds themselves are fully dried to reduce the moisture content to about 8% to 12%, then the tea seeds can be stored for 1 to 2 years.

But Hailufeng Company did not adopt it.

The Gannan Branch has developed its own unique low-cost preservation technology, which is to use the latest developed boron cloth. After filling it with nitrogen, the storage time of tea seeds can be extended to about 1.5 years in a sealed environment.

However, under normal circumstances, the Gannan branch does not store oil tea seeds for 1.5 years. Usually, they are stored for about 10 months at most after picking. The purpose of doing so is to ensure that the factory has fresh oil tea to supply the market all year round.

Jiang Miao and Academician Li discussed the future of the feed industry. Both believed that the feed industry must expand production capacity in a restrained manner and be prepared for the collapse of foreign markets.

After all, judging from the situation in recent years, although foreign countries have increased their imports of feed from Seres, many regions are not willing to have their feed controlled by Seres companies and are making various small moves.

Although the domestic feed production cost is cheap, it does not mean that foreign countries have no ability to fight back.

For example, increasing taxes is an important means of regulating costs.

If the export of dairy products and meat products is abandoned, or if the region is not originally an exporter of meat and meat products, the scale of imports can be suppressed by increasing taxes on imported feed.

Sometimes, many regions do not consider cost issues but food security issues.

Especially in Europe and other so-called developed countries, people naturally have a resistance and distrust towards products produced by Seres.

Even if refusing to import low-cost feed will lead to an increase in the cost of meat production, it actually doesn’t matter to some wealthy and powerful groups.

Therefore, Jiang Miao was not blindly optimistic.

This is another important reason why Hailufeng Company’s feed industry has not expanded rapidly.

Under the premise that the international market is full of uncertainties, domestic low-priced feed is booming again, and it is definitely not a wise move to expand production on a large scale.

For example, Haida Group did not expand production this year, but instead concentrated its efforts on building supporting electricity-biogas-organic fertilizer co-production projects at each pig farm.

By improving the diversification of industries, we can enhance our ability to resist risks.

Not only Haida Group, other related agricultural enterprises are also developing industrial chains and diversified operations.

For example, New Hope Group, in addition to developing farms and feed mills in South America, has introduced Hailufeng Company's electricity-biogas-organic fertilizer project in China. At the same time, it has opened up large soybean farms and forage production bases in the southern part of the desert, and is also improving the beef and mutton breeding industry.

Agricultural groups are rapidly improving their industrial chains. Those agricultural enterprises that cannot keep up with the times will only fall further and further behind until they are eliminated by the market.

Deepening the domestic industrial chain and cautiously developing the international market have basically become the consensus of large domestic agricultural enterprises.

Academician Li mentioned another thing: "A Miao, will you promote the Xiansi soybeans in Minqin to the mainland in the future?"

Jiang Miao shook his head: "I don't have such plans for the time being. The main reason is that the farmland in the mainland is too scattered, and it is easy for foreign forces to steal the seedlings. Therefore, we can only establish isolated farms in Gansu Province, the western part of the southern desert, and the Western Regions in the short term."

"That's such a pity. If we can promote its cultivation in the mainland and Northeast China, maybe we can consume some of the excess soy protein." Academician Li said helplessly.

“Nothing is perfect.”

He refilled Academician Li's tea cup again.

Academician Li took a sip of tea and continued, "Professor Lin's sponge battery will consume a lot of plant protein in the future, which will help reduce domestic production capacity pressure."

In fact, Academician Li did not expect that in just a few years, the domestic plant protein supply situation would undergo earth-shaking changes.

Previously, we imported nearly 100 million tons of soybeans every year, and everyone felt uneasy and anxious about such a huge scale of imports.

Now we have to think about how to consume the excess soybean production capacity. Faced with this happy trouble, the domestic industry is also trying every possible means.

Just look at the current A-shares and you will know.

As long as any company related to soybean derivatives can come up with a reasonable product development model, its stock price will rise rapidly.

For example, soybean oil candles, soybean oil soap, pharmaceutical raw materials refined from soybean oil, derivatives from refined soybean meal, etc.

Even snack food companies have joined in the fun, developing products such as soybean meal biscuits, potato chips, and roasted beans.

As long as derivative products can be produced, it will be profitable because the raw materials are very sufficient.

Many organic fertilizer companies have been developing various fermented soybean cake fertilizers and related liquid fertilizers.

In the past, these organic fertilizer companies would never dare to think about such a thing. After all, the cost of using soybean meal to ferment organic fertilizer is a big problem, and the government was also restricting this application. Now all restrictions have been lifted.

Not to mention using soybean meal to make organic fertilizer, even if you use soybean meal to make bricks, I guess no one would say anything.

There is indeed a company that is engaged in deep processing of soybean meal raw materials, then producing rayon, and then using the rayon as building materials. This direction is still hot in the A-share market.

(End of this chapter)