Chapter 132: Feeling Proud and Drawing the BowThe two new corn varieties, Xianyu 335 and Tianyu No. 1, brought unexpected surprises to Xu Xiaoxue. She has a hunch that these two varieties have great potential. If the prices of both were not outrageously high, they would be the only two new corn varieties that could threaten the status of Zhengdan 958 in the future! But it’s too expensive! 天玉1号7每公斤70元，先玉335每公斤60元。 It is several times more expensive than Zhengdan 958! The price of Zhengdan 958 is only 6-9 yuan/kg! Zhengdan 958 is a rare and excellent variety of corn in China, and is affectionately called "lazy corn" by farmers. It passed the national approval in 2000 and quickly expanded from the Huanghuaihai region to the Northeast region with its advantages of density resistance and high yield. Last year, that is, in 2004, the national planting area exceeded 4000 million mu and is still maintaining a very high growth trend. The speed of promotion and the length of time it lasted are rare in history. In Xu Xiaoxue's mind, it is the undisputed domestic corn king.
The reason why Zhengdan 958 is called "lazy corn" by farmers is because it simplifies the cultivation technology and requires very few agricultural measures. After sowing the seeds, farmers can go out to work or do business, and then wait for a good harvest in the fall. At the same time, its seed production advantages are also very obvious. In the Hexi region, the yield per mu can reach 400-500 kilograms, and the high can even reach 600 kilograms. It has created huge profits for seed manufacturers. Overall, Xu Xiaoxue believes that there is still no variety that can replace Zhengdan 958. Although Xianyu 335 and Tianyu No. 1 are excellent, Zhengdan 958 has a very deep status in the hearts of farmers. Many farmers go to seed stores to buy seeds with just two sentences. Do you have 958? Which brand? But she felt something was odd, and after thinking for a while, she realized that quite a few people seemed to be buying Tianyu No. 1 in the store she visited these two days. …… Ronghua Seed Trading Company, Zhao Hua looked at the sales statistics sent from the sales department and found that both Red No. 1 and Tianyu No. 1 had exploded! March hasn’t even ended yet, and Ronghua’s sales have already reached nearly 3 million! Breaking 100 million is a sure thing! Ronghua has reached a new peak! He couldn't help but sigh at how wise the decision he made a year and a half ago was. Around October 2003, he went to Jiuquan in person. After a battle, we became the distributor of Tianhe Seed Industry in Shandong Province. From then on, we laid the foundation for Ronghua's rapid development today. Since joining the WTO and the liberalization of the seed market, foreign seed companies have successively chosen to establish joint ventures and factories in the mainland to build breeding research and development centers and bases. With the emergence of alternatives, comprehensive seed trading companies are gradually being abandoned by the market. At that time, Ronghua also lost the agency rights of Syngenta and Seminis Seeds. I have been wandering for half my life without meeting a wise master. Until he met Tianhe. From the initial doubts to the nervousness after signing the contract, the Red No. 1 sweet pepper really became a big hit in the market.
Nowadays, in vegetable greenhouses all over Shandong Province, sweet peppers as big as fists are growing in the greenhouses, like shy girls half hidden among the leaves. A tricycle rumbles along, transporting the picked sweet peppers to the market. Pepper farmers weigh the peppers, count the money, and have happy smiles on their faces. Sparks spread across the prairie, The thriving phoenix tree attracts the phoenix. Zhao Hua felt like he had brought in the Golden Phoenix. Red No. 1 is a male sterile variety. In the past, this was an area of technological monopoly by vegetable seed giants such as Syngenta and Syngenta. But now Tianhe can also use the sterile line to produce the first generation of hybrids. This breaks the current situation where the domestic production of large-fruited sweet pepper varieties relies on imported seeds from abroad. Foreign capital has long occupied more than half of the vegetable seed market share in Shandong Province. Take Shouguang as an example. The current annual transaction volume of Shouguang’s seed market is around 6 million yuan, but foreign seeds account for more than 4 million yuan, and there is an upward trend. Foreign seeds are targeting the high-end vegetable seed market. Its seeds have strong virus resistance, and the vegetable yield is high and of good quality, and can be sold at a good price. Vegetable farmers also attach great importance to this point. They don’t care whether you have "foreign seeds" or "local seeds", or which country the seeds come from. As long as they can make money, they will plant whichever variety is good. Foreign seeds have brought benefits to farmers, which is a good thing. However, after controlling the market share, foreign investors significantly increased seed prices. For example, in the case of bell peppers, cherry tomatoes, thornless cucumbers and other varieties, foreign seeds have already occupied 100% of the market. The price of seeds is extremely expensive! The phenomenon of "one gram of seed is worth one gram of gold" is widespread, forcing farmers to pay too much for seeds. For example, for bell pepper seeds, the cost for foreign companies to produce one seed is about 1 cent, but it can be sold for 1 yuan in the Chinese market, which is more expensive than gold. Some other well-known tomato seeds are priced at more than 100 yuan per gram. The market has been monopolized and farmers are forced to accept it. But since the end of 2003, Red No. 1 has entered the Shandong Province market, with a price of yuan per package and 20 grams per package. Tianhe has completely learned the strategies that foreign seed companies used when they entered the domestic market. Implement a low-price strategy or even free strategy to promote seeds, let farmers see the results first, and then expand the promotion. They fought their way out of the monopoly of foreign capital! It can act as a vanguard in resisting foreign investment and cut losses from foreign investment bit by bit. Zhao Hua felt very proud. After the initial promotion, Red No. 1 has raised its prices several times since last year, with the price of each pack of seeds rising to 198 yuan. The seed production cost of Chihong No. 1 is about yuan/gram, which is higher than that of foreign capital. But the R&D cost is extremely low! In the price war with foreign capital, Tianhe Seed Industry is not at all inferior! The market share is being taken away bit by bit, and foreign seed companies such as Synnix and Rexroth are in a very difficult situation.
We can only lower the price helplessly. The industry was filled with joy and reported the news one after another. "The foreign seeds lowered their proud heads." "Bell pepper breeding has reached the pinnacle of world breeding." "Red No. 1 sweet pepper beats foreign brands." Domestic vegetable breeders were also greatly encouraged. But no one likes a price war. What's more, after years of operation by foreign capital, the domestic production and sales system has long been perfected. In addition, foreign capital also has the accumulated category advantages of vegetables such as tomatoes, radishes, cabbages, and kale. No matter how much Tianhe launches a price war, it cannot defeat foreign capital. It is better to rely on high profits, accumulate strength, and then choose the right opportunity. But Red No. 1 still has unparalleled advantages, excellent quality and lower price. In the first quarter alone, sales of Ronghua Chihong No. 1 exceeded 1500 million yuan. Zhao Hua saw further. The Shouguang Vegetable Expo will be held in May this year, and Tianhe’s new vegetable varieties, including tomatoes and carrots, will also be exhibited. Ronghua’s growth momentum is far from over. Moreover, vegetable seeds are just appetizers, Tianyu No. 1 is the staple food. Since the spring sowing season, Tianyu No. 1 represented by Ronghua has been very popular in marketing. In recent years, the corn planting area in Shandong Province has been around 4300 million mu, and the annual demand for corn seeds is around million kilograms. This is a huge market. Tianyu No. 1 is clearly competitive. Its selling price of up to 70 yuan per kilogram fully demonstrates the manufacturer's confidence. This is the most expensive corn seed sold this year, no doubt about it! The selling price is high, not only the manufacturer’s profit is high, but the dealer’s profit is also extremely lucrative! The profit from distributing Tianyu No. 1 exceeded 30%, which made Ronghua work hard to promote Tianyu No. 1, through publicity in stores and loud speakers on buses going to the countryside. Add to that the temptation of a yield of tons per mu and word of mouth from farmers who tried planting the crop last year. Tianyu No. 1 also became a big hit. March has not yet ended, and the sales volume of Tianyu No. 3 seeds in Shandong Province has exceeded 1 million kilograms, with sales reaching more than 110 million yuan! As the summer corn planting time (April-June) approaches, seed sales still have great explosive potential. At the same time, Guo Yang, who was far away in heaven, saw the news that Xianyu 335 was launched on the market. I can't help but sigh, DuPont Pioneer, the "seed king" that has been dormant in China for 18 years, has finally drawn its bow and arrow.
(End of this chapter)