We are all reborn, who wants to be the richest man?
Chapter 588 The other way
It's not easy to get a bargain, and the bargain I think is not so easy to get is even less so.
On the fourth day after Luo Nianzhong arrived in Brazil, Pioneer Seeds and DuPont Pioneer completed their financing.
In this round of financing, both companies gave 30% of their shares to Wall Street and major financial institutions. Anyone with a discerning eye knows that this will be the only round of financing for the two companies, and they will then start preparing for listing in the United States.
The reason why Wall Street was given so many benefits was not so that the donkey could open up genetically modified crops to the entire United States in the future, but to prepare for this trip to Brazil.
In 1975, the Brazilian government approved a savanna development plan with the goal of reclaiming 30 hectares of agriculture in the savanna.
Because Brazil's new capital is located on the savanna, everyone knows that it is impossible to allow the area around the capital to be occupied by wasteland, so it must be vigorously developed. A large number of farmers began to take out loans to move to the savanna.
However, agriculture is not just about planting, it also involves issues such as transportation and warehousing. The Brazilian government, which has no money for construction, can only seek foreign investment cooperation.
In 1979, the first foreign investment came.
Affected by the United States' agricultural growth and agricultural drought, which reduced production and subsequently banned soybean exports, the island nation turned to Brazilian authorities for food security.
An agricultural joint venture was established by the island nation and the Brazilian government to jointly develop the savanna, with Brazil holding a 51% stake and the island nation holding a 49% stake.
According to the agreement, the island country's government will provide Brazil with a special low-interest loan of US$400 million within six months, and Brazil will provide agricultural products to the island country at preferential prices.
In this way, the savanna entered the first phase of development.
The good times did not last long. The Latin American debt crisis in the 80s caused Brazil's economy to deteriorate. The government had no funds to develop more vast savannas, and did not even have money to lend to farmers for development.
In the late 80s, following negotiations between the World Bank and the International Monetary Fund, four major grain traders began to enter Brazil.
Why did grain traders come in? Because the World Bank initially asked Brazil to develop agriculture on a large scale to ensure that it could repay the loan on the grounds that Brazil's industry was not well developed.
In this way, starting from the early 90s, the savanna entered the second phase of development, which was not completed for decades.
How big is the savanna? More than 200 million hectares of land, all of which can be used for agriculture, not desert Gobi.
Why didn't Luo Nianzhong choose to enter Brazil immediately but wait until now? That's because he was waiting.
What are you waiting for? You are waiting for the latest research result of Pioneer Seeds, Pioneer 024 tropical genetically modified soybean seeds.
We all know that soybeans are warm tropical plants and have always been distributed only in southern Brazil.
Most of Brazil's land is in the subtropics and tropics. Soybeans planted in this environment either grow wildly without bearing fruit or are devoured by pests and diseases.
Then the large areas of arable land in the savanna can only be used to grow tropical plants, such as sugarcane, coffee beans, etc.
But there is a problem with doing this. Although the land in the savanna is arable land, its fertility is average, which means that farmers have a large area of land purchased at a low price but their income is low.
The only crop that can adapt to this fertility is soybeans, which are not very picky.
It is said that the four major grain traders control Brazil's agriculture because they have to buy soybeans if they provide seeds. In fact, this statement is both right and wrong.
It is well known that the four major grain traders controlled 73% of Brazil's storage capacity at their peak, forcing farmers to sell soybeans to them because the soybeans needed to be dried after harvesting and farmers did not have the funds to build their own storage logistics.
Loaning seeds to pay for food? Yes, but that's a thing of the 21st century.
What really made Brazilian soybeans take off were three soybean technology revolutions, the first two of which were led by Brazil.
In 1975, the Brazilian Soybean Research Institute was established, and the first product it developed was a high-yield hybrid soybean variety suitable for cultivation in the southern temperate zone.
In the mid-1990s, Brazilian soybeans officially took off because they developed soybean varieties suitable for tropical cultivation, allowing better utilization of the vast land of the savanna.
As for professional genetically modified soybeans, they were developed by Monsanto based on tropical soybean seeds, which led to a special loan method of loaning seeds and paying back soybeans.
Before the tropical genetically modified soybean seeds come out, the way the four major grain traders currently control Brazilian soybeans is through warehousing and logistics.
But this thing does not require much technical content. With official approval and funds, 90% of the problems can be solved.
The participation of Wall Street not only enables the two companies to have sufficient funds, but more importantly, it has the endorsement of the government.
The current Brazilian government is very close to the United States, and its attitude towards Wall Street is definitely better than that towards Luo Nianzhong.
“It is not easy to build a whole industrial chain with five major links and more than a dozen small links, including agricultural materials, procurement, warehousing, logistics and processing.
In the warm tropical region south of Brazil, we do not have any capital, or the qualifications, to compete with the four major grain traders.
They have been working there for decades, and it is difficult to penetrate the complete industrial chain."
"So your original demand to take over Pioneer Seeds was because you wanted to use seeds as a breakthrough point?"
"That's right, the large tracts of land in central and northern Brazil are the key. By controlling this land, we can control the soybean market and thus influence the livestock and food industry."
If this is true, the Luo family can be said to be half the boss in the agricultural field.
Now Robert is full of admiration for Luo Nianzhong's original decision. This kind of foresight is really terrifying.
"Soybeans are just the first step. With soybeans we can move into livestock, starting with Brazil and eventually throughout South America."
The agricultural layout in South America is of vital importance to the Luo family. Worried, Luo Nianzhong had no choice but to transfer Robert back to personally supervise and be responsible for this matter.
"How are the preparations going?"
“There is no problem with agricultural inputs, whether it is capital, seeds, pesticides or fertilizers, we can control them all.
The only problem is agricultural machinery. The only advanced agricultural machinery company that is related to us is Hitachi's agricultural machinery company, but we don't have much equity relationship with this company.
Once the U.S. government really ignores the attitude of Wall Street, and completely breaks off relations with us for the sake of its agricultural base, and prohibits the export of advanced agricultural machinery to us, based on our layout in Da Mao and Er Mao, the agricultural machinery industry is still far from reaching the first-class level, and costs will increase.
As for other aspects, it is easy to say. We have the funds and can develop the technology ourselves, so we are not afraid of being strangled by others."
As for agricultural machinery, we still need to have several agricultural machinery companies that we control.
The United States has a vast territory and a sparse population, and Brazil is even worse than the United States.
Therefore, high-efficiency large-scale agricultural machinery is the first choice, otherwise it will mean increased costs.
However, Robert was preparing for the worst, and Luo Nianzhong would definitely not face this situation.
Even if he disturbs the elephant's base, the other party will observe first before taking action, and it is hard to say how strong the action will be. The elephant certainly does not want to completely offend the Far East system and push the Far East system into the arms of the donkey.
Maybe they don't have this opportunity. As long as Zipperton comes to power, the next eight years will only be the donkey's suppression of agriculture.
The capital behind the donkey will take advantage of the technical cooperation with Pioneer Seeds to jointly advance into the elephant's agricultural base in the United States.
Selling out the country? Come on, it's all about profit.
As long as the donkeys can continue to dominate the white house, the lost profits in agriculture will not matter.
No matter why the real person in power behind the elephant or the donkey dared to let Luo Nianzhong develop, the biggest reason was that the Luo family had no army but they had control over them.
This is good, but I don’t know if they will regret it when Luo Nianzhong is able to command an army that is strong enough to threaten the United States.
Maybe it’s because it has been a superpower for too long and polar bears are no longer a threat, the United States and the family that controls it act noble and arrogant. Deindustrialization and hollowing out are the best examples.
This strategy was promoted in large scale starting with Zipperton and reached its peak in the early 21st century.
They had not expected that the great Eastern power would rise so quickly, and as a result, it was already too late to turn around.
"I'll solve any problems you have, just keep an eye on the developments here.
This time we have the technology in our left hand and the capital in our right hand, so we can give the four major grain merchants a taste of their own medicine."
You'll Also Like
-
Immortals of the End Times
Chapter 111 2 hours ago -
Tumor Sword Immortal
Chapter 101 2 hours ago -
American comic book: My Father is Superman, am I just an NPC?
Chapter 110 2 hours ago -
Changjin Lake: From Xinxingli to Seoul
Chapter 245 2 hours ago -
I must draw my sword immediately!
Chapter 75 2 hours ago -
Inheriting a Taoist temple, the story begins with Wu Zetian offering incense.
Chapter 92 2 hours ago -
2001 Media Godfather
Chapter 84 2 hours ago -
Cursed Mountains and Seas
Chapter 92 2 hours ago -
The world of martial arts, the immortal swordsman in the mortal realm.
Chapter 53 2 hours ago -
Zombie Sage in Naruto
Chapter 109 2 hours ago