The rise of nanometers

July 1st.

After in-depth investigation, the anti-dumping investigation against dairy companies in New Zealand, Australia, the Netherlands, and Ireland has entered an anxious state.

17 foreign dairy companies under anti-dumping investigation have formed a dairy consortium to respond to the prosecution of Beidahuang, Deyi and Fengmin Agriculture.

Unlike domestic companies that respond passively to anti-dumping investigations, companies in developed countries are often well prepared when facing anti-dumping investigations.

Both parties' dumping lawsuits have been submitted to WTO trade dispute arbitration. According to the WTO's dumping definition rules, two main conditions must be met to qualify as commodity dumping.

First, it is the market share of foreign imported goods, which accounts for more than 25% in the host country.

Second, the market price of foreign imported goods is lower than the cost price of the same type of goods in the host country.

If these two conditions are met, it may constitute dumping and will be subject to anti-dumping investigation. If it is determined to be anti-dumping, anti-dumping taxes and penalties can be imposed on the goods.

The current battle between the Farm Reclamation Alliance and international dairy companies is not based on market share, because in this year's Chinese dairy market, the market share of imported dairy products has reached 32.6%, which has already exceeded 25%.

What worries both sides is that international dairy companies believe that the cost of raw milk in China is lower than the comprehensive cost of imported milk powder, so the pricing of milk powder by international dairy companies does not cause dumping.

The Agricultural Reclamation Alliance believes that low-price dumping by international dairy companies has seriously damaged Chinese dairy farmers and small and medium-sized dairy farming enterprises, causing economic losses to these practitioners.

The international dairy companies took the Agricultural Reclamation Alliance's raw milk production cost assessment, while the Agricultural Reclamation Alliance used the farmers and small and medium-sized enterprises to argue, and both sides held different opinions.

Due to the intervention of the WTO, it is impossible to resolve such international economic disputes in just a few months.

…

Magic City.

Tetra Pak's Greater China launch building.

Eric Irving, who has been in China for almost half a month, along with Greater China President Ludden Victor and Vice President Su Yanxin, are receiving Meng Yang's group.

"Bull, long time no see." Victor smiled and shook hands with a round-faced middle-aged man, who was none other than Niu Mu, the founder of Meng Yang.

The establishment of Mengyang back then was naturally inseparable from the help of Tetra Pak. Victor and Niu Mu have also been old acquaintances for many years.

But Mr. Niu, who often appeared on TV, felt helpless and relieved at this time, because he had just reached an agreement with COFCO to sell 28% of Meng Yang's shares to COFCO.

If the shares are not sold and a backer is found, Meng Yang will definitely not end well in the last poisonous milk incident. There is a high probability that the cattle manager will go and cry behind bars.

People once said this about the founder of Mengyang, that is, "a small victory depends on the weakness of others, and a big victory relies on one's own immorality."

After leaving Yili, he founded Meng Yang, which completely put China's dairy industry on a path of no return.

Niu Mu shook his head and said: "Victor, this may be the last time I come to meet you as the chairman of Mengyang."

"Bull, I hope we can continue to cooperate in the future. Let me introduce to you the vice president from the head office, Mr. Eric Owen." Victor said politely and introduced to both parties present.

Soon, Niu Mu and Yang Yingjun from Mengyang and Eric, Victor and Su Yanxin from Tetra Pak started the topic of today's meeting.

This meeting was mainly about Tetra Pak pimping Meng Yang. Now the confrontation between the international dairy companies and the Agricultural Reclamation Alliance has entered a fierce state. In order to reduce being investigated by anti-dumping, they have already prepared another plan.

"Bull, this is the entire equity of Australia's Baisha Ranch and New Zealand's Lao Baru Dairy." Victor pushed the two share transfer documents in front of Niu Mu.

Not to mention that no one in China knows about White Sands Ranch in Australia and Old Baru Dairy in New Zealand. Even Australians and New Zealanders probably know about it because these are just two small dairy companies. The total number of cows they own is, There are less than a thousand heads.

The reason why these two dairy companies were sold to Meng Yang was actually to avoid the anti-dumping investigation. The two dairy companies came forward to purchase milk locally and then transport it back to China.

In fact, not only Mengyang, but also Yili and Guangming have obtained vests and are preparing to avoid the anti-dumping lawsuit of the Agricultural Reclamation Alliance in this way.

After getting these two vests, Ushiki said another thing.

"I plan to create a modern animal husbandry and raise dairy cows and sheep. I wonder if Adami and Bunji are interested in investing?"

"Oh? Modern Dairy?" Victor immediately understood what the other party was thinking. After Meng Yang became a shareholder of COFCO, there was only a transition period of about three years.

Obviously, Ushiki and others have begun to prepare their own escape route, and modern animal husbandry is their escape route.

Victor and Eric discussed quietly for a while, and then he replied: "Bull, we are very willing to help you. I will tell them about the invitation to cooperate with ABCD, and I don't think they will refuse."

"Then just wait for the good news."

After talking for a long time, Niu Mu, Yang Yingjun and others left Tetra Pak. However, they did not leave the Magic City, but waited for the response of the four major international food groups.

The Chinese person in charge of ABCD received an invitation from Tetra Pak and organized another private banquet.

Soon Modern Dairy was established, with Niu Mu and others holding 68% of the shares, while Adami held 15%, Cargill held 9%, and Bunge held 8%.

Modern Animal Husbandry will develop the breeding industry in China. With ABCD's investment and equity participation, Modern Animal Husbandry can obtain relatively cheap feed.

The four major ABCD grain groups are constantly deepening their tentacles in China, trying to extend their hands into the feed processing industry. In fact, they have already made arrangements.

From 2002 to 2008, through the soybean war and the grain war, ABCD controlled 70% of China's edible oil companies, and also controlled many agricultural product processing companies, including many feed processing companies.

Recently, the prices of international feed and feed raw materials have increased to varying degrees. For Chinese feed companies that are highly dependent on imported raw materials, it is undoubtedly aggravating the situation.

By increasing the price of feed raw materials, many feed processing companies are facing the risk of losses and bankruptcy.

However, ABCD's behavior also indirectly helped Fengmin Agriculture. Recently, Xiao Yuan began to launch a merger and acquisition plan under Huang Xiuyuan's instructions.

Suiren Company, which holds a large amount of low-interest loans, will naturally give full play to the power of capital and prepare for large-scale mergers and acquisitions in the domestic agricultural product processing industry.

The current goal of Fengmin Agriculture is to expand its feed processing scale, varieties and technology through mergers and acquisitions; to establish independent oil extraction subsidiaries, meat products subsidiaries, crop seed breeding companies, poultry and livestock seed companies, and poultry vaccine research and development company.

Breeding companies, in particular, have reached the point where they cannot afford to delay. It is hard for many people to imagine that the domestic breeding cattle and breeding pig industries are basically monopolized by foreign companies.

This situation not only increases the cost of breeding, but also brings some potential safety hazards. For example, if a foreign country cuts off supply, or the other party deliberately cultivates a virus targeting a specific variety, this is a possible situation.

In Huang Xiuyuan's future memory, this kind of thing has happened many times. If you don't keep an eye on it, you may not even know how to die.

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I wish you all a Happy New Year in advance, good health, all the best, and all your wishes come true!