Reborn as the richest man in India

"Moeller, what's the latest situation here?" Qiao Ge asked.

On the afternoon of October 20, Qiao Ge came to the office of Benlin Plantation Company.

In addition to Jogo, there were also senior Gupta and Maupassant in the office.

Maurele Maupassant, who was on the opposite side, immediately replied: "Boss, it's a great thing. The price of plantations has plummeted. The average price is now US$10,000 per hectare. There are many more people who want to sell plantations."

"No way?" Qiao Ge was very surprised, "What happened?"

The last time Moeller talked to him was still US$15,000 per hectare. It has only been a while, less than a month, but it has dropped by US$5,000, which is equivalent to a drop of RM10,000.

The nearly one-third drop must have been something big, otherwise even if there were fluctuations, they wouldn't be so outrageous.

"Boss, it seems that you don't pay much attention to the vegetable oil market." Moeller said, "You can't do this. Since you want to do this business, you can't just focus on palm oil, but also pay attention to other vegetable oil markets."

Qiao Ge was stunned for a moment, he was being preached by Moeller.

But what Moeller said was true. Qiao Ge realized that it must be related to other vegetable oils.

"You are right, I was negligent." Qiao Ge accepted humbly, "Have the prices of other vegetable oils plummeted?"

"That's right." Moeller said with a smile, "This year the world's rapeseed production is high, and the United States has a bumper harvest of soybeans. This has caused the prices of all vegetable oils to be suppressed and fall sharply. Palm oil is no exception. It has been almost the same in recent years. The record-breaking low is even continuing to fall. The price of palm oil is now below RM800 per ton, and according to expert estimates, there is still room for a decline of one to two hundred ringgits."

Qiaogo was silent. The previous average price of palm oil was 1,230 ringgit per ton. If it drops further, it will fall by half. This price drop is a bit exaggerated.

"Even so, there's no need to rush to sell, right?" Qiao Ge asked, "Isn't it normal for the price of vegetable oil to rise and fall? Maybe it will go back up next year. Is there anything strange about the New Year?"

The main factor affecting agricultural products is climate, which depends on the weather.

If the weather is good and there will be a bumper harvest this year, the price will naturally be low. But next year there may be bad weather, resulting in reduced production or even widespread crop failure, and the price will skyrocket.

So the plantation’s reaction to this shouldn’t be that big, right?

Isn't this kind of thing normal for them?

If you don't even have this endurance, how can you do this?

"How should I put it? Since the beginning of this year, everyone has not been optimistic about palm oil. Palm oil contains a large amount of saturated fatty acids, and excessive intake will increase the risk of cardiovascular and cerebrovascular diseases. Of course, the main reason is that they are not optimistic about the subsequent market demand. Therefore, many European companies that have invested in palm oil in Malaysia are selling off related industries, and this trend is becoming more and more obvious. Therefore, combined with the plummeting price of vegetable oil this year, many people have lost confidence, and the price of plantations It just collapsed." Moeller said solemnly, "Boss, I advise you to think about it carefully. This investment is very risky and it is very likely that you will suffer a big loss."

At Moeller's words, Jogo laughed in his heart.

This is good, it is good if everyone is bearish, so that you can enter the market at a low price.

Palm oil does have many problems, such as the problem of a large amount of saturated fatty acids, but these problems are not a problem when it comes to price, because the price of palm oil is the cheapest among vegetable oils.

And palm oil also has many other advantages, such as stable frying properties, instant noodles, and the first choice in the frying industry.

Palm oil is widely used. Even if it is not used as daily cooking oil, palm oil will be contained in many foods in the future, such as potato chips, biscuits, etc.

In addition, there is also a huge demand for industrial use, especially the rise of biodiesel projects, for which palm oil is the raw material.

Many reasons led to the subsequent surge in palm oil production and prices.

"Have you ever heard the saying, I am afraid when others are greedy, and I am greedy when others are fearful." Qiao Ge asked.

This sentence was said by the stock god Buffett. I don’t know if he has said this sentence now.

Moeller was stunned for a moment: "I haven't heard of it. Who said it? It sounds very philosophical, but I don't think it can be applied to the palm oil industry. Those European companies that evacuated are very powerful. Their investigation and evaluation of an industry must be very rigorous, and since they have reached this conclusion, I believe it is well-founded.”

"Maybe." Qiao Ge said, "They have their ideas, and I have my own approach. If we really need to judge the direction of an industry based on any evaluation, then wouldn't they always be able to make money? What about companies that lose money and go bankrupt? There are so many more?”

No matter how you evaluate and investigate, nothing is as good as your own past life memories.

Moeller knew that his boss had taken the matter seriously, and he was trying his best to persuade him. If he was going to lose, it would be none of his business.

"Okay, boss, although I don't agree with your views and investments, I will definitely do my job well." Moeller took a deep breath and said.

Because Jogo and Moller spoke English, the elder Gupta could not understand them, but he still knew that palm oil was not favored.

After all, he had been here for a while, and Moeller did not hide these things from him, and asked the translator to tell the old Gupta.

"Qiaogo, I don't think the investment here is very good. No one is doing the oil palm business anymore..." Old Gupta was also a little worried.

"That's because they have no vision." Qiao Ge explained with a smile, "Believe me, there will be no problem."

Old Gupta could tell that his son was very determined, so he didn't say anything else.

He thought for a while, even if his son's investment here lost a little, the domestic ones would still make money, so it wouldn't be a big problem.

The most important thing is that he now has a clear understanding of his abilities. He has never been exposed to these before and does not understand them at all. Now he must be right to listen to his son.

Of course, he now doesn’t know how much investment Jogo has made in the palm oil industry. If he really knew, it would not be so easy.

"Boss, these are the plantations that I have collected nearby for sale. The prices are the latest. You can check them out first. If you are interested, we will go for an on-site inspection tomorrow." Moeller sent a report to Qiaogo before.

Qiao Ge looked through it, and the content above was still very detailed.

Then Moeller brought a nearby map, which marked the locations of various plantations in the report. This way, by comparison, Qiaogo would be more intuitive and could know the distribution of these plantations.

It has to be said that these foreigners are still very meticulous in what they do, which is much more extensive in India. Qiao Ge feels that after he returns, he has to strengthen the details.

It makes sense that details determine success or failure.

Oil palm generally begins to bear fruit 2-3 years after planting and enters its peak production period in 7-20 years. After 20 years, the output gradually decreases and begins to age after 22 years. At this time, it usually needs to be cut down and replanted. Its economic life is the longest. of up to 25 years.

According to the above statement, the price of plantations during the peak period is definitely the highest. The average price is about RM30,000 per hectare. This is after the price dropped sharply. It was not so cheap before.

The prices of old trees after 20 years and young trees 7 years ago are much lower, especially those that have just been planted and have not yet produced fruit within three years and old trees that are 22 years old are the cheapest.

Not bearing fruit within three years means that the plantation has not yet produced benefits. Although the old tree after 22 years is old, it can still bear fruit and can squeeze out the final value.

After a few years, the old trees will no longer be needed, so they will have to be cut down and replanted. However, replanting requires a lot of investment, so the prices of the two are about the same.

The average price within seven years is RM10,000 per hectare, among which freshly planted ones are the cheapest, and the lowest ones are even as low as RM6,000 per hectare.

Qiaogo must be partial to saplings within three years. Most of these trees have not yet produced fruit and are cheap. After all, India’s current demand for palm oil is not large and the market has not yet been liberalized.

Therefore, after the market is liberalized in a few years, the saplings will grow up and enter their peak production period, and their own interests can be maximized.

Although there are other markets, Qiaogo is mainly targeting India.

Qiao Ge had previously thought about whether he should purchase land directly and start planting from scratch if the price of the plantation was too high.

Again, it will take several years for India to liberalize its palm oil market.

Even if I plant it from scratch now, I can still catch up.

However, these plantations for sale now are definitely lower than the cost price. After all, you have to buy saplings from scratch and find someone to plant and take care of them. The initial investment must be quite a lot, so it is definitely cost-effective to buy ready-made ones. .

Due to the pessimism about the late market of palm oil, many people who have just entered the palm oil industry have obviously been hit hard. Most of their plantations have just been planted, and now they want to escape quickly to avoid losing money. .

They can only lament their bad luck and poor vision. Why did the situation take a turn for the worse?

It has to be said that the actions of foreign palm oil companies such as the United Kingdom have made many local people involved in this industry tremble and panic.

In their opinion, it is definitely not wrong to follow the footsteps of foreigners. They are better informed and they have all escaped. If people like themselves continue to be stupid, wouldn't they be idiots?

Most of these plantations that are eager to be sold are not in their prime, and the owners of those plantations that are in their prime are still reluctant to part with them.

After all, they have waited for so many years to enter the peak period, which is the time to harvest.

Therefore, fewer plantations are sold during the peak period, and prices are relatively stable compared to the other two categories. Although they have also fallen, they are not as large as those of saplings and old tree plantations.

Qiaogo calculated his capital and found it was US$65 million, equivalent to RM130 million.

He plans to leave 10 million ringgit for the company’s daily expenses and the other 120 million ringgit as funds to acquire the plantation.

Based on the average price of saplings over a seven-year period of RM10,000 per hectare, I can probably purchase 12,000 hectares, which is nearly eight times more than my previous expectation of 1,500 hectares.

Of course, this was partly due to his own increase in funds, but he only added US$40 million. The biggest reason was that the selling price plummeted, otherwise he would not have been able to buy so much area.

“Let’s look at the ones with the lowest prices first.” Qiao Ge used a pen to circle the plantations with the lowest prices in the sapling stage.

These houses are almost all next to each other. If they can be bought, management will be much easier.

Otherwise, it would definitely be inconvenient to have one block in the east and one block in the west.

After all, Qiaogo couldn't stay abroad for too long, so he was quick to do everything. The next day, Moeller took Qiaogo to inspect several selected plantations.

The owners of the plantations received them warmly and talked about the advantages of their plantations, such as convenient transportation, good terrain, few pests and diseases, and ease of picking palm fruits in the future.

No way, there are too many people who want to sell plantations and too few who want to buy them.

Everyone was frightened. Many people who originally wanted to buy have given up the idea, and some are waiting and watching.

The impact of the gringo withdrawal is too great, much more serious than this price collapse.

After all, their actions make people extremely unfavorable about the future of the palm oil industry.

For example, palm plantations are a long-term investment industry. If the market goes bad in the later period, the investment will be almost a bottomless pit. It will keep losing money. Not many people dare to bet on it.

Now that you encounter a stubborn enemy, why don't you catch him quickly?