The rise of nanometers

Radical environmental organizations around the world are causing trouble everywhere in developed countries.

The domestic beverage industry, with the support of Suiren, COFCO and Beidahuang, further squeezed the market of Coca-Cola and Pepsi-Cola by lowering the retail price of beverages.

In this counterattack of domestic beverages.

The top three players in the dairy industry have shown a clear decline, and their market share has dropped by about half since 2008.

Among them, Mengyang dropped from 15.3% to 8.2%; Yili dropped from 17.2% to 9.1%; Guangming dropped from 9.7% to 3.4%.

The new top three replaced Wandashan from 0.22% to 11.3%; Fengmin soared from 0.13% to 10.4%; and the profit increased from 0.24% to 5.7%.

The market situation directly changes the position of offense and defense.

In particular, Guangming, which is outside the two major systems, has become the most seriously injured dairy company.

Guangming Dairy Headquarters Building in Shanghai.

General Manager Luo Hai became even more worried after reading the sales in the first quarter of this year.

The Agricultural Reclamation Alliance is too strong. Even if Meng Yang sells part of its shares to COFCO, it still cannot withstand the impact of the Agricultural Reclamation Alliance.

In fact, in the domestic dairy war, COFCO acted very neutrally due to its Suiren relationship. Even its adopted "son" would not be too partial to Meng Yang.

What's more, among the current management of Meng Yang, Yang Yingjun, the president who serves as transitional management, is Niu Mu's Ma Zai. He has repeatedly violated COFCO's strategic arrangements.

COFCO also deliberately borrowed the help of the Agricultural Reclamation Alliance to teach Meng Yang’s management a lesson.

As for Guangming, due to dissatisfaction with both parties, a large chunk of its market share was lost.

In addition, the current dairy and dairy sheep breeding industry has been almost integrated by the Agricultural Reclamation Alliance, and the domestic supply of high-quality raw milk has basically been taken over by the Agricultural Reclamation Alliance.

At present, the Agricultural Reclamation Alliance's own dairy cow inventory is 4.67 million, and the cooperative farmers' dairy cow inventory is 1.37 million; its own dairy sheep are 2.73 million, and the cooperative farmers' dairy sheep are 1.84 million.

With good management techniques and increasingly abundant feed, the Agricultural Reclamation Alliance's high-quality raw milk production has reached about 68.3% of the country's total raw milk production; while raw goat milk accounts for 86.7% of the country's total production.

Guangming, which does not have many self-operated dairy farms, is more vulnerable than Meng Yang Yili, and the raw milk or large packs of milk powder from international dairy companies are also unable to compete with the Agricultural Reclamation Alliance.

Due to the price war between the two sides, more than 40% of dairy farming enterprises in Australia and New Zealand went bankrupt in less than three years.

Especially those small and medium-sized dairy companies with a single business cannot withstand the impact of market prices. Many small companies can only give up the Chinese market and develop other markets, or stick to their own local market.

In fact, COFCO and Beidahuang also took advantage of this opportunity to acquire more than a dozen small and medium-sized dairy companies in Australia and New Zealand.

Without a fixed source of self-produced milk, not only the quality is uncontrollable, but the cost is also uncontrollable. Now Bright Dairy has reached a very dangerous edge.

Suddenly there was a knock on Luo Hai's office door.

After calming down, he said: "Come in."

Deputy General Manager Zhang Yawen walked in hurriedly, his face a little downcast: "Mr. Luo, our application to join the Farm Reclamation Alliance was rejected. They asked..."

At the end of the sentence, Zhang Yawen was about to speak but stopped.

"What do they want?" Luo Hai asked calmly.

Zhang Yawen handed the rejection application letter to Luo Hai.

Luo Hai frowned slightly and opened the rejection letter. The content was completely different from what he had expected.

At first, he thought he would need to hold a controlling stake or eliminate foreign shares, but he did not expect that it would be an unexpected condition.

That is to apologize for the tainted milk powder incident in 2008 and compensate the victims of that year.

Perhaps many people thought that Guangming was one of the few dairy companies that was immune to the tainted milk powder incident that year, but is this really the case?

If you have read the official list, you will find that among the many milk companies with problems, there is an inconspicuous dairy company, and that is Hero Dairy Company.

Although they sold off their shares in Hero Dairy after the incident broke out in an attempt to distance themselves from the relationship, this incident deceived the general public but not the people of the Farmers' Reclamation Alliance.

This is an unforgivable thing, so the Farmers' Alliance requires Guangming to publicly apologize for this incident and compensate the victims, otherwise they will be refused to join the Farmers' Alliance.

Luo Hai was caught in a dilemma. Although they had found many connections, Fengmin Agriculture, which had veto power, blocked their application.

"Mr. Luo, I think we should discuss it with the board of directors!" Zhang Yawen also looked in a dilemma. The light that was already in jeopardy, if a public apology and compensation were really made, the consequences would be unpredictable.

If it arouses public resentment, it may lead to a direct collapse of market share, and then there will be really no way to recover.

However, after rejecting the request of the Farmers' Reclamation Alliance, they have no way to obtain cheap and high-quality farmlands' milk sources. In the fierce price war, their market share will be eroded little by little by the Farmers' Reclamation Alliance.

This multiple-choice question made it difficult for Luo Hai to make up his mind. He nodded: "Let's convene the board of directors!"

"Okay, I'll notify you right away." Zhang Yawen left anxiously.

That night, members of Guangming's board of directors, even if they couldn't be there in person, sent their confidants over.

In the conference room.

With a heavy expression on his face, Luo Hai distributed copies of the Agricultural Reclamation Alliance's rejection application letter to everyone present.

"This is Nongken's reply and an ultimatum. Let's vote by a show of hands!" Luo Hai's voice seemed weak.

Because he knows that if this matter is not good, then he, the general manager, may have to take the blame and resign to calm the public anger.

In the social security fund that just bought shares in Guangming last year, the fund manager hesitated for a while after reading the conditions for farmland reclamation, and then said:

"I agree to apologize and make amends."

The other small shareholders looked at each other for a long time.

The person who can make the most decision is the representative of the state-owned legal person who holds 51% of the shares. Fan Huaye was silent for a long time. In fact, he was also very entangled in his heart.

If this matter is not handled properly, he and Luo Hai will be inseparable.

Finally he made up his mind: "I agree to this."

If Guangming can be saved, so what if he personally apologizes, and the same can be done to compensate the victims. If he doesn't agree to the conditions of farmland reclamation, the company will be suppressed to bankruptcy sooner or later.

In this price war, Bright lost completely.

April 12th.

Bright Dairy held a press conference at its headquarters, explaining on the spot the relationship between Bright and Heroes, and apologized to consumers across the country for this incident.

At the same time, a fund called "Bright Compensation Fund" was established to compensate all victims who had problems after eating hero dairy products.

Initially, the compensation amount will start at 200,000, and the amount of compensation will be gradually increased according to the physical condition of the victim.

This incident immediately caused an uproar.

Affected by this incident, Bright Dairy's share price plummeted, and Mengyang Yili's share price also fell.

The old matter was brought up again and Guangming apologized and compensated, but the results were mixed.

However, Mengyang Yili was thrust into the limelight, and the public's memory was evoked, and they once again criticized the two dairy companies verbally and writtenly.

Coupled with the recent safety concerns about Tetra Pak, this situation of house leakage and continuous rain caused another significant plunge in the market sales of the two dairy companies.

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