Great Power Technology.

Chapter 328 COFCO's Dimensionality Reduction Strike

"Give Xiong Da the production increase technology?"

Ye Zhou frowned, as if he had grasped a deeper meaning from Chen Hao's words.

As he judged before, there is no major gap in the world's food supply at present, and the artificially created gap is either hoarded by traders or panic-buying by stampedes.

The former is easy to operate, but the amount of funds is limited, and the gap that can be created is also limited. Although the latter is difficult to operate, once it is completely instigated, the effect it can cause is extremely terrifying.

Therefore, what Rabbit really needs to solve is not only the problem of the four major grain merchants hoarding goods, but also to properly deal with the panic they can incite.

This is the purpose of the Academy of Agricultural Sciences' emergency project launch of gene editing technology. They don't need to use this technology to grow a large amount of rice within this year, as long as they can positively "we can grow it" through strong evidence, it is enough.

And going one step further, what if more than just rabbits can be grown?
What if bears can be grown too?
What if all countries on the side of the rabbit could grow it?

Then obviously, by that time, the fear of the so-called "famine" will become a joke.

Thinking of this, Ye Zhou let out a long sigh of relief.

What this rabbit sees is always further than the actual situation requires.

Huaxia not only wants to resist, but to counterattack.

The opponents they are targeting are not only the four major grain merchants, but also... seed companies.

This is a chess piece based on the global grain market. After this chess piece falls, there will be one killer move after another.

After a pause, he asked:
"This should be a relatively late strategy, now? What are we mainly doing now?"

"Now?"

Chen Hao thought for a few seconds, then replied:
"Catch smuggling, catch rumors, and prepare for emergency release of resources."

"Emergency release of staple food? - COFCO wants to directly seize the terminal market?"

"Yes. They want to seize this opportunity to change the production mode of grain and oil from the source. You can probably guess where this opportunity came from, right?"

Ye Zhou nodded and sighed with emotion.

The modern market economy is indeed a kind of miraculous thing. Two seemingly unrelated things are actually connected at this moment.

And the core node of this connection is polypropylene.

……

Taizhou, Shenkai Packaging Factory.

The factory director Liu Yuan was patrolling the production line in the factory area, with a nervous expression on his face, but also a faint expectation.

He has been sleeping for less than 4 hours a day for two full weeks, but this kind of busyness does not make him feel tired. Instead, the energy in his body is endless like a chicken blood.

His factory has just received a large order for the production of food-grade packaging bags, and the order quantity is [-] million.

One hundred million food packaging bags with a length of 25 centimeters, a width of [-] centimeters and a volume of [-] liters.

A few months ago, when this order first appeared on the market, hundreds of plastic product manufacturers in Taizhou immediately jumped on it like a shark smelling blood, and his Shenkai packaging factory was one of them.

Compared with other manufacturers in the plastic kingdom of Taizhou, his factory does not have an advantage in terms of scale and technology, but his foresight far exceeds that of the heads of other manufacturers, because he is keenly aware of the fundamentals logic.

The order was placed by COFCO Group, and the purpose of the packaging bag is to commercialize all staple food products. Therefore, in order to obtain this order, he only needs to guarantee two points:
Safe and cheap.

In terms of safety, it is not difficult to ensure safety as long as the raw materials reach food grade and the production process is controlled to a certain extent, so the core of competition is price.

However, it is not easy to fight a price war with peers in an extremely mature industry.

In the bidding stage, many peers offered a unit price that was almost equal to the cost. If the production was carried out at this unit price, it would be almost impossible for the manufacturer to make money.

After the results of the first round of bidding were announced, hundreds of manufacturers withdrew 90% of them instantly. They were unable to further reduce costs, so they did not intend to undertake such a large-scale project that was almost destined to lose money.

But Liu Yuan did not quit, because he saw an opportunity from public news reports.

Domestic sulfur-silicon batteries are being rolled out on a large scale, the traditional energy market has been severely impacted, and international crude oil prices have plummeted.

Although in a short period of time, with the joint efforts of all parties, the price of crude oil has recovered to a stable price, but Liu Yuan knows that this price is definitely fake.

The demand for oil has actually dropped.

So he quickly deduced that since crude oil is in a serious oversupply situation, but the international crude oil price is stable and does not fall, then it must be other crude oil-related manufactured products that are about to fall.

Polypropylene, the most important item in petroleum products and a key raw material for plastics, will definitely drop in price.

Moreover, as long as it starts to fall, it must be a plunge.

Therefore, based on his own knowledge, Liu Yuan came up with a price that shocked everyone in the second round of bidding, directly halving the lowest price in the first round.

Everyone thought he was crazy, but only he knew that this would be a big gamble.

If the sulfur-silicon battery is really as strong as the news says, and if the country can really end the traditional fossil energy hegemony with new energy, then this decision he made will become a classic battle recorded in the annals of business.

But if sulfur-silicon batteries and new energy sources fail, they will also fall into a situation of eternal doom.
-
The results are obvious.

On that very ordinary and uneventful day, when he had no idea what was going on, the price of polypropylene suddenly began to plummet.

In the following week, polypropylene prices fell to an all-time low, only 15% of what they were before the plunge.

The price he offered not only did not make him face a loss, but he even made a profit—a big profit!

Therefore, his factory, which is not too big, took on this task that may play a decisive role in the food security of China as a whole. In order to complete this task, he directly paid all overtime workers Four times the overtime wage, and even the cafeteria began to operate 4 hours a day, just to complete the order before the contract deadline and get the large amount of early performance bonus provided by COFCO.

Liu Yuan patrolled the production line, and after recording a few key nodes with relatively low efficiency with a pen, he turned and left the production line and walked towards the cafeteria, preparing to eat his first meal of the day.

There were already many shift-changing employees eating in the cafeteria. He randomly picked a table and sat down. Because it was managed by a family, the relationship between him and the employees was not too unfamiliar. Restraint, after simply saying hello, they continued to chat on the original topic.

"...So I said, the country must be huge this time. Think about it, 40 million packaging bags, each containing 2000 catties of grain, how many tons is it? [-] million tons?"

"200 tons."

"Yes, 200 million tons. This is only the first batch of orders. I heard that other manufacturers have also received orders. Their quantities are not small. Boss, is this news correct?"

Liu Yuan nodded and replied:

"That's right, Hongyuan and Xinxin have also received orders, not less than us."

"That's right! So the current situation is that the state will directly attack those grain compradors."

"What does it mean?"

Hearing what the worker said, Liu Yuan asked with some doubts.

He himself doesn't know much about grain, so he can't make any connection between the so-called "packaging bag" and "comprador" for the time being.

The worker put down his chopsticks, coughed and said:
"First of all, we have to solve a problem. What is the difference between buying grain as a consumer and buying grain as a comprador?"

"Is it the difference in the size of the purchase?"

"That's right! When we buy grain, it's more than a few tens to hundreds of catties at a time, but what about compradors? What they buy at one time is not calculated in catties, but tens of thousands of tons!"

"You've seen the news recently. This time, the country said it would release [-] million tons of staple grains, and it's already started. But has there been more grain in our market? No? What's the reason?"

"It's very simple. Most of the food was eaten by these compradors. After they ate it, they didn't really put it on the market, but hoarded it in their own hands, waiting to be sold!"

"The result of this is terrible. If the country wants to release grain to save the market, it must first satisfy the comprador's appetite, and the efficiency of the rescue will be greatly reduced."

"So, COFCO has to go another way—that's what we're doing now."

"They have to pack all the grains that will be released into small packages, and then directly release them to the terminal market through the channels that COFCO has previously had!"

"Put it in supermarkets, grain and oil stores, and the canteen downstairs in your house!"

"In this case, it is impossible for compradors to find opportunities to stock up on grain—unless they go to the supermarket to sweep the goods in person."

"If there are compradors who do this, it will be more than enough to convict them of disrupting the market."

"So this wave is a recurrence of history. The country actually used this method in the soybean oil campaign back then, but the scale was much smaller than this time."

After listening to the worker's explanation, Liu Yuan nodded in conviction, and said approvingly:
"Threesomes must have my teacher, Xiao He, you know a lot."

Xiao He smiled embarrassedly and replied:
"I just read some interpretations, and it's not too difficult to understand."

"You are humble. It is good to think of this step. But I still have a question. It is not easy to put such a huge amount of small-packaged grains on the end market, right?"

A proud smile appeared on Xiao He's face, and then he answered:

"It may not be easy for other countries."

"However, we have Hualiang Logistics, and Huaxia Post."

(End of this chapter)