Chapter 471 End of the European Trip For a whole month, Guo Yang traveled around Europe. We visited Germany, France, Spain, Hungary, Denmark, Romania, Ukraine...all the major agricultural markets and grain producing areas. The agricultural situation in each country is different, and some small countries, such as Hungary and Denmark, also have a significant voice in the global seed market. But after a circle, I found that the market competition was really fierce. After the financial crisis, many small companies without any special skills went bankrupt. However, from Guo Yang's perspective, it is also full of opportunities. Hungary may have the best investment environment, with its good location, abundant and cheap labor, and a good foundation in automobile and machinery manufacturing. Fengkai can invest in a branch here and bypass some EU restrictions on exports to China in advance. Neighboring Romania and Ukraine are both agricultural countries, and their agricultural bases are very weak, relying entirely on resource endowments. Ukraine's agricultural production at this time had just entered a stage of prosperous development, and its grain output and export status were at least three times higher than 10 years later. That means three times the growth space.

Moreover, Ukraine's seeds, pesticides, fertilizers and agricultural machinery are all imported, and the market potential is very high. Then there is Romania, which is even worse than Ukraine. The labor force is outflowing and the farmland infrastructure is weak. Let's put it this way, Romania's agriculture depends on the weather. If there is a drought, the grain output will be reduced by half. There are more than 640 million mu of corn, with an average yield of only kilograms per mu, the lowest in the EU and one-third of the corn yield in the Netherlands. Wheat does not require chemical fertilizers or pesticides, which most small farmers probably cannot afford, and the average yield per unit area is only 480 kilograms. After the privatization reform, most of the farms in Romania are small farms of forty or fifty acres, with either no agricultural machinery or outdated and old agricultural machinery. Even so, Romania is still the "breadbasket of Europe", which is really a gift. Grain processing is also weak, with the main focus on exporting raw grains. Jiahe Grain and Oil has invested in a port warehouse in Constanta on the Black Sea coast for the transshipment of grain. But after learning about the situation in Romania on the ground, Guo Yang decided to increase investment in Romania in the future. Unlike Ukraine, Romania allows private land transactions, and the average price of agricultural land is about 150 to 200 euros per mu. There are also ways for companies outside the EU to buy land in Romania. Moreover, China signed an agricultural cooperation agreement with Romania two years ago, and will become an important country along the Belt and Road in the future. Investing in Romania may be safer than investing in Ukraine. After a month of traveling, I met with officials from many countries and cities to learn about investment policies and conduct on-site inspections of the investment environment. It’s physically and mentally exhausting, but the rewards are much greater than sitting in an office. I returned to Beijing halfway and discussed with my leaders about investing in Eastern Europe, but within two days of my stay, the European Commission approved Quanwang Bio's acquisition application. Guo Yang returned to Rotterdam again and signed the final acquisition agreement with Provimi. This is another large-scale cross-border merger and acquisition in the agrochemical field this year.

When the news reached China, it caused quite a stir. Jiahe also entered the feed field, which it had never been involved in before, and brought tremendous pressure to many companies. Guo Yang and Yu Qin, who were far away in Europe, were also very busy. Yu Qin is busy integrating Provimi. There will not be major adjustments to the management system and staff, and the main integration will be the raw material system. The basis for the research and development of new products of Provimi comes from plant extracts of Quanwang. After the acquisition is successful, Quanwang will also fully open up all kinds of raw materials to Provimi, but will not provide technology, only raw materials. Some nutritionally superior and special botanical extracts are priced high. This requires good communication with management. Especially in terms of pricing, Quanwang will transfer part of the profits from terminal premixes and other product links back to the country through operations in the industrial chain. A balance needs to be struck between achieving profit transfer and tax avoidance, and ensuring that Provimi is competitive in the European and American markets. The more stable Provimi develops, the greater the benefits the feed industry chain can ultimately bring. Guo Yang and Chen Yunpeng took a quick look at the list selected by Avic Investment Bank. In the seed market of Rotterdam, the two visited several seed stores and came to a ramen restaurant on a commercial street not far from the market. "Xiao Ren, two bowls of beef ramen, with more chili." "Okay, it will be ready soon." Guo Yang looked at Luo Xiu and the others again and said, "You can arrange what to eat by yourselves." Guo Yang and Chen Yunpeng found an empty seat in the inner room and sat down. The ramen restaurant is opened by Ren Fu's nephew. Business is booming. There are many people sitting at tables of different sizes, and the aroma is everywhere in the restaurant. The kitchen is also open, and you can see the details of the chef making ramen in the restaurant, which attracts a lot of people to watch. "I never thought I could eat Lanzhou ramen in the Netherlands. I really want to have it." Chen Yunpeng is from Lanzhou. He can't resist pasta from China at all. He becomes greedy just by smelling it. Guo Yang said: "The boss is the nephew of the person in charge of Quanwang's European region. The flour and chili are all shipped from China, and they are very authentic." "It's a pity that Hanover doesn't have it." "If you want to do this, you can go to Rotterdam more often. Rotterdam will also be an important base in the future." "Yes." Chen Yunpeng pondered, "Although the seed companies we visited are all small and medium-sized companies, they are all very distinctive." Guo Yang also praised, "Avic Investment Bank is quite professional, but if we really don't investigate, we may be cheated next time, so we must go and see it." "clear." If they want to fully develop the European market but there are no suitable large seed companies to acquire, they can only cast a wide net, either by acquiring or setting up branches. Tianhe targets field crops such as corn, sugar beets, rapeseed, sunflowers, wheat, and a wide variety of vegetables. Germany has a base in Hanover and continues to develop there.

The vegetable seeds branch has selected targets in the Netherlands and has sales channels in many European countries. In addition, a research institute will also be established in Bordeaux, France. Bordeaux not only produces wine, but is also an important beet seed breeding base in Europe. France's total sugar beet production also ranks first in the world. Ande of the Netherlands and KWS of Germany both have branches in France. Finally, there are Spain, Hungary, Romania and Ukraine. A total of seven countries are Tianhe’s goal in recent years. After chatting with Chen Yunpeng for a while, the ramen was served. It was a big bowl full of meat and chili, which whetted people's appetite. Not cheap either. At this time, European industry had not yet completely weakened and people's purchasing power was not weak. What's more, it's a big city like Rotterdam, and with the excellent taste, it's no wonder that the business is so good. After stirring it a few times, Guo Yang and Chen Yunpeng began to eat it with a grunt. While we were waiting to pay the bill, Xiao Ren, who had been busy, came over and said, "Come often in the future, Mr. Guo." Guo Yang smiled and said, "I will be back in two days. Mr. Chen may come from time to time in the future. He is traveling all over Europe. I think you can open a few more branches, or attract more relatives and fellow villagers to start a business." Chen Yunpeng also smiled and said, "In the end, wherever Jiahe goes, you can open a store there. There will definitely be no shortage of business in the future." Xiao Ren laughed, "That's a good idea. I'll try to open more branches in the future." After exchanging a few pleasantries, the group left. Next, Guo Yang and Chen Yunpeng met with Kxton and others to determine a more detailed scope of the acquisition. What remains is to contact them one by one and conduct various tasks such as research. Yu Qin also completed the integration of Provimi, and the two finally reunited and returned to China together. The plane took off, and the busy port gradually faded away on the land. Guo Yang then asked Yu Qin about the situation, "Have you agreed on the supply of raw materials?" Yu Qin gestured OK, "Everything is settled. The price and contract are quite rigid, leaving Provimi with a slightly higher profit margin than it is now, but there is still room for it to decrease in the future." Currently, Provimi is on the verge of making a loss. A slightly higher profit would be enough to ensure normal operation. This is enough. Golden Harvest is not here to do charity, its purpose is to make money and dig into the bottom of old Europe. Guo Yang once again looked down at the European land through the cabin window. In his eyes, the green land seemed to have turned into green banknotes. When the plane landed in Jiuquan again, Qu Yang in North America also sent back news that Tianhe was interested in acquiring California Yreka Seed Company. This is a vegetable seed company that mainly produces lettuce, carrot, strawberry and tomato seeds. Amid fierce competition, the company fell into business decline. Qu Yang only conveyed one meaning: there is hope!

After asking about the situation, Guo Yang also agreed to mobilize resources to contact Yirika. In America, not only are there few varieties of vegetables, but they are also very expensive, especially green leafy vegetables such as lettuce, which are more expensive than meat. California is the largest vegetable producing area in the United States, and vegetable seed companies around the world are eyeing it. Tianhe naturally wants to get involved. In addition, Tianhe has also achieved a breakthrough in corn seed sales in the United States this year, with an increase of more than 200%, which can be regarded as a preliminary stabilization. It was already August, and the planting of seedlings had been completed in the urban fringe area of ​​Ji Xiaobai's sea buckthorn base of more than one million mu. The patches of summer light turn the Gobi desert green again and again. The farm by the Taolai River has also taken shape. The exterior of the buildings alone is eye-catching, and so are the greenery, which is of many types and in various shapes. The rooftop farm has also been replaced with winter crops, and it is clear that some thought has been put into it. For this reason, Guo Yang rewarded Lin Keqing in the evening and resumed his daily work in high spirits the next day. There are quite a lot of things. Qi Ziwen described the recent situation of each company in detail. Before we know it, it’s almost autumn harvest time again. The fallow period has not affected domestic agricultural production, but has gradually revealed some new highlights. After three years of rest, Yasheng Group has seen some changes this year. The spring-sown fennel had a bumper harvest in June and July, with the average yield setting a historical record. Tomatoes that are being harvested, as well as sunflowers and peppers that are waiting to be harvested, are also expected to achieve breakthroughs in yield. (End of this chapter)