Chapter 521: Trigger a crisis

After the conclusion of the Austrian Conference on Agricultural Economy, the Vienna government announced to the outside world that before the new grain is harvested, some strategic reserves will be replaced.
This happens almost every year, but generally it is bought when the international food price is low and sold when the price is high.
This time is obviously an exception. Although it is not known how much food the Vienna government intends to sell, the international food market has caused turbulence.
Compared with the beginning of the year, the price of grain on the international market has fallen by 9%. Now affected by the sell-off by the Vienna government, the price of grain has plummeted by four points.
The pallet capitalists can't support it anymore. The British-Russian transaction has cost them a lot of money, and Austria is now making up for it.
Fortunately, the Vienna government announced a replacement, not a simple sell-off, or the impact would be more severe.
At the London Grain Exchange, a middle-aged man in a Chinese suit knew the prices on the market as usual.
A middle-aged man named James is a small capitalist who owns a flour mill. Since the signing of the British-Russian Food Agreement, he has panicked.
Before the cheap food in Russia has entered, the capitalists who are concerned about the share are all divided up. By the time James reacted, it was too late.
Of course, it doesn't matter how fast the reaction is, this kind of fat is not what he is entitled to share. Originally, James bought local wheat for processing, but now he can't.
The domestic wheat is not so cheap. If the purchase price is suppressed, it is estimated that he will be directly beaten out.
In search of cheap food sources, James set his sights on the grain market. Affected by international food prices, it is true that food prices here have fallen much more.
Suddenly seeing Austrian wheat on the billboard, James stopped immediately. You should know that in the past ten years, Austrian wheat has rarely appeared on the international market, and all the processed flour has appeared.
"Raul, what's wrong with this batch of grain, why is the price so low? I remember that Austria does not export wheat. Shouldn't this be smuggled?"
James asked jokingly, not to blame him for the surprise, mainly because it was not low, but to the limit, a price beyond James's imagination.
"Mr. James, you're really joking. If smuggling, we don't smuggle food! Such commodities are inconvenient to transport and the tax rate is low, there is no need to take risks."
James ignored Raul's beating, grabbed a handful of wheat and looked it up. The preliminary judgment was Chen Liang, but this was not the reason why the price was so low.
"Just give me some nonsense, let's talk about what's wrong with this batch of grain? Don't tell me, if you have this kind of cheapness, you can get it for us!"
Raul smiled indifferently, took out a newspaper and handed it to James.
"Mr. James, you can see that this batch of grain is old grain. Not long ago, the Vienna government announced the replacement of the reserve grain, and the old grain in the warehouse was sold at a discount.
You are also a professional. You must know that the price of Chen Liang will be discounted. Now that this batch of grain has been stored for more than three years, the taste of processed flour will definitely have an impact.
In Austria, this kind of grain is usually not processed into flour, but used to make wine or processed into feed.
This time the large amount of grain released by the Vienna government has flowed into the international market. The reason why it is so cheap is certainly the good work of the bureaucrats in London.
Russians' new grain is so cheap. Naturally, these old grains can only be cheaper. Who else should they sell to? "
It can be seen that Raul also has deep grievances against the London government. The British-Russian trade agreement directly allowed companies to sign contracts with Russians, and their middlemen's business naturally disappeared.
If it weren't for the return of Austrian grains for sale, they would be closed. Food prices on the international market are not as cheap as Russian food.
James put down the wheat in his hand and grabbed another hand and rubbed it.
"Are you sure there is no problem with these foods?"
Raul: "Of course, if there is a problem, I will go to hell!"
Seeing James was still hesitating, Raul added: "Mr. James, if you have any questions, you can inspect them in person.
Such opportunities to find cheap prices are rare. In the future, no matter how low the international food prices are, it is impossible to fall on this share.
You should know that if you sell at this price, farmers around the world will go bankrupt. This has fallen below the cost of production, just like this batch. "
James was tempted. If there is no problem with the food, it is only Chen Liang, and it is totally worth buying. Gritting his teeth seemed to be determined.
"I want 30,000 tons. Can it be cheaper?"
This is almost all the money James can mobilize, but he decided to bet in order to obtain greater benefits.
The price of this batch of grain is 15% cheaper than the food the London government received from the Russians. On the surface, it is normal for the price of old grain and new grain to be different. In fact, the price is still too cheap.
Deeper reasons, James wisely did not explore. Anyway, as long as he can get rich, he cares so much!
...
From May, grain from Austria quickly appeared on the British market. As soon as this cheap food appeared, it was sought after by unscrupulous capitalists.
Everyone is smart, knowing that this price is abnormal, and some even speculate that it is Austria's intention to disrupt the British-Russian transaction, but this does not prevent them from getting rich.
Grain is different from other commodities, and it is not a problem to store it for three to five years. Anyway, it's all Chen Liang, and it's still Chen Liang.
Deteriorating taste is even more of a minor problem. As long as the processed flour is a little cheaper, it will not worry about selling in the market.
It's good to be able to fill your stomach. You also want to pursue the taste of food. The ordinary British people are not so proud.
Such a fanatical operation naturally attracted the attention of the London government. However, this operation was not done by Austria alone, but also a group of British local capitalists participated.
It is also impossible for everyone to benefit from the transaction between the London government and the Russians, and many capitalists are still damaged.
If no action is taken, it will be very difficult for them to survive until the influx of Russian food.
In this context, they naturally do not mind cooperating with Austria. Anyway, it is legal trade, and the London government has no right to interfere.
Want to set restrictions to stop Austrian food dumping. Sorry, the parliament is not easy. For its own opponents, holding up the banner of free trade has left Benjamin's cabinet helpless.
The free trade system cannot be overturned. This is the core of British economic policy. Of course, this annoyance has little effect on Prime Minister Benjamin.
The results of the new round of elections have come out, and he is now the former Prime Minister. The worry is the Liberal cabinet that is being formed, which is also a pit for rival William Julter-Gelston.
At the critical moment of the general election, Benjamin's cabinet responded negatively. After the transfer of power was completed, the London government wanted to take further measures.
In these short months, Austria has dumped 8.5 million tons of rye, 3 million tons of wheat, 4.3 million tons of corn, 3.2 million tons of soybeans ...
What happened in the UK also affected the international food market. This would be a real blood fall, with a sudden 15% plunge.
Cheap Russian food has not appeared on the international market, and as a result, prices have almost fallen.
At the beginning of the year, the rye on the international grain market was still 25 Aegis tons, and now it has fallen to 18.6 Aegis tons; corn has also fallen from 18.8 Aegis tons; it has fallen to 14.1 Aegis tons ...
In short, the prices of all staple foods have plummeted, and even the prices of other agricultural products have been greatly affected. People's panic is the culprit for all this.
At this step, everyone will lose money together. Everyone knows that prices are not yet at their lowest point. After the autumn harvest, grain prices will usher in a new low.
Food supply exceeds demand, and the good days for the major food exporters are over. Without the trigger of the British-Russian Food Loan Agreement and the dumping of grain by the Vienna government, this agricultural crisis would slowly erupt.
It is impossible now, and the crisis immediately detonated. 1872 is destined to be a tragedy year. Slow food sales will become a hot topic in the second half of the year.
This is no longer a matter of price, but it cannot be sold at all. The best way to stabilize food prices is to reduce food production and destroy surplus agricultural products.
As a responsible big country, Austria naturally has to take positive measures. In July, the Austrian Ministry of Agriculture issued a call to the world's major food producing countries, hoping that all countries will reduce their grain production capacity at the same time.
On August 12, the Vienna government issued the Law on Land Fallow, which stipulated in the law that the land for food cultivation must fallow. The specific fallow time is determined by the local government according to the actual situation.
What appears to be effective law has very limited influence. Austria has a long tradition of agricultural fallow, and this is nothing more than a clear stipulation this time.
According to the estimates of the Ministry of Agriculture, in this way, Austria's grain output can be reduced by about two or three percentage points. This is also a large number, which can alleviate the crisis of overcapacity.
On August 15, the Vienna government issued the Land Reclamation Law, which clearly stipulates that newly reclaimed land in Europe is prohibited. The cultivation of wheat, corn, rye, potatoes and other crops is prohibited within five years.
These measures can't hydrolyze the near thirst. In any case, the crops that have been planted in the field cannot be pulled out.
Austria's grain output in 1872 will not decrease, and it will not affect the prices of the international grain market in a short time.
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