Chapter 822: Neither of them are happy.
Chapter 805 None of Them Are Good
Perhaps out of disgust for Austria, the French did not keep their big farm plan a secret and released the news to the outside world shortly after the Paris government made its decision.
This is understandable, at this moment, Hutier and others led by the insurgent army eighth division has swelled to a huge 80,000, looking to break through the 100,000 mark.
The French had already learned about the destructive power of the French, regardless of their combat power. This rabble of troops, all the way to do only two things: crazy expansion of troops and looting of estates.
Hutier and others gave full play to the style of bullying, the French people strictly guarded the city do not touch, picking the strength of the weak countryside, small towns to start.
Even if most of the soldiers are holding cold weapons, relying on the advantage of human tactics, it is also invincible all the way.
In fact, many times there is no need to attack, a glance at the number of rebels, the defenders along the way are looking at the wind and fled.
It is not that there is no resistance, mainly because the inferiority of strength is too serious, too few French soldiers in the small towns, and the Egyptians can not be relied upon.
Concentrating on the big cities was the best option. Generally speaking, as long as the French soldiers more than a thousand, the eighth division will not touch the nail.
There’s no point in fighting to the death, it’s not like they’re coming over to fight the world. Just wave directly, and let the insurgents in the rear do the land grabbing.
With the 8th Division interspersed and scattered, the French army in Egypt also lost the opportunity to regroup again, and had to fight separately.
After all, the French soldiers can fight less, most of the army is a colonial force, defending the city can be, go out to fight the field is only better than the insurgent army a drop.
Tossed out so much noise, the French government naturally upset. In the spirit of I’m not happy, you don’t want to feel good, the French people will directly show their cards.
Then all the agricultural stocks started to plummet. A group of self-righteous experts and scholars, have emerged to sing the downfall of agricultural stocks, and even more directly that a new round of agricultural crisis is just around the corner.
Well, this time they are right. For a long time to come, engaged in agricultural production enterprises, the days will not be good, with every day down to describe perhaps more apt.
Even if the French do not come this wave, the agricultural crisis will still break out. With the continuous development of fertilizer technology, food overcapacity is an inevitable trend.
Even if Austria, such as food exporters, do not go to promote industrial fertilizer technology, those food-importing countries will also promote.
Although there is no later use of chemical fertilizer yield growth several times so rapid, but the yield growth of several dozen percent, or can have.
Food production capacity can grow significantly, however, the market demand for food, but it is impossible to soar so much a year.
Phosphate fertilizer has been born, and began to use on a large scale; potash fertilizer has been born in the Royal Academy of Sciences laboratory, did not promote is to maintain food price stability.
As for the ammonia fertilizer and compound fertilizer at the back, there is no shadow for the time being. Human demand is the source of driving force for technological progress, and now Austria belongs to the kind of insufficient power.
In order to earn more profits in the export of agricultural products, the research on fertilizer technology for large-scale increase in food production capacity, Franz is not very active.
For many green food pushers in the latter days, perhaps this is the best era, no use of chemical fertilizers and pesticides of pure green food, full of streets.
Affected by the French large farm program, the world’s major food exporting countries have appeared to varying degrees of panic.
……
St. Petersburg, as the world’s largest exporter of raw grain, the tsarist government is undoubtedly the biggest headache.
Alexander III had experienced the agricultural crisis first hand, and it was during the last crisis that the Tsarist government panicked and foolishly ran to sign the infamous grain-for-loan agreement with the British.
This is one of the few black histories of Alexander II, being snubbed by the British for lack of it and joining the pound-gold system.
Even after finally relying on the British, the Russian Empire still lost tens of millions of rubles on a combined basis, and the political losses were incalculable.
After having had a lesson, Alexander III realized the importance of agriculture to Russia, and paid extra attention to the changes in the international food market.
“What do you think of the large farm program announced by the French?”
Agriculture Minister Borshak said bitterly, “It’s simply awful. The countries and regions in Europe that need to import large quantities of grain at the moment are mainly Britain, North Germany and the Italian region.
The remaining countries such as Switzerland, Belgium, Spain, and Portugal are also grain importers, but their demand is very limited, adding up to less than ten percent.
If the French are allowed to succeed in their food self-sufficiency program, the international food export market will shrink by at least one-fifth.
Without this part of the market, a new round of food overcapacity is destined to break out in Europe.
As the largest exporter of raw grain in Europe, once this happens, we are bound to lose a lot of money and even break out into a new round of farmer bankruptcies.”
Alexander III frowned, these truths were known to everyone, what he wanted was a solution, not to listen to complaints here.
“Is there a way to avoid the worst case scenario?”
Alexander III asked expectantly.
Unfortunately, it was easy to see the problem, but difficult to solve it. This was a big situation, not something that could be defused by individual ability alone.
Borshak shook his head, ”The international market is shrinking, it is not something that the Ministry of Agriculture can influence.
If possible, it is best to make the French give up their big farm program through diplomatic means.”
Kicking the can down the road, the Ministry of Agriculture had no way to deal with the agricultural crisis and had to look to the Ministry of Foreign Affairs.
“It’s not going to happen!
The French have withdrawn from the free trade system, and even if the bottom falls out under international food prices, they can still take tariff barriers to ensure that the domestic market is protected from shocks.
Realized food self-sufficiency, the French government can save a lot of foreign exchange expenditure every year, reversing the current trade deficit situation, I really can’t think of a reason for the French to give up.
Instead of expecting the French to get in over their heads and give up the big farm program, they should start thinking of ways to cut food production capacity or expand market demand now.”
In the face of the ball kicked at him, Foreign Minister Oscar Jiménez did not hesitate to hit back.
Both Russia and Austria were France’s rivals on the European continent, and there was no reason for the French government not to be able to make a handsome profit while striking a blow against its rivals.
Not to mention that the Russians went over to put pressure on them, even if all the European countries put pressure on them together, the French would not give up.
Minister of Agriculture Borshak righteously refused: “The population engaged in agricultural production in the country, as many as 50-60 million people, so that so many people together to cut production capacity, it is simply impossible.
Expanding the market is even more of a joke, is not the domestic demand for food market has not expanded?
However, along with the expansion of the market at the same time, our food production capacity is also synchronized growth, and even the growth rate is faster.
This is still established in the domestic agricultural production technology is backward under the premise, if the use of the latest agricultural production technology, the domestic food production capacity can also be increased by one-third.
If it weren’t for the fact that it’s impossible to find outlets for the increased grain production capacity, the Ministry of Agriculture would have already promoted the new technology.”
Although the words were not very pleasant, Alexander III was clear that this was the truth, and that cutting production capacity and expanding the market were both unrealistic.
“Once the French plan is accomplished, Austria will also lose a lot of money, what is the Vienna government going to do?” Alexander III asked expectantly
There is nothing to be embarrassed about, if you can’t manage it yourself, it’s good to learn from others, the worst thing is that others don’t know what to do either.
After a moment’s effort of hesitation, Borshak replied, “Your Majesty, Austria’s situation is different from ours.
It is also a big grain exporter, but Austria exports mainly finished grains and by-products, and is more resistant to risk than we are.
As early as 1884, Austria’s exports of agricultural and by-products, food industry products trade, accounted for 47.9% of the total agricultural exports, this proportion is still growing.
The collapse of food prices did not have a significant impact on canned goods, cookies, snacks and industrial chemicals, and profits even grew further because of lower production costs.
Directly affected mainly by the sale of finished food products, such as: flour, potato flour ……
After the fall in grain prices, the spillover to the retail market, there is still a period of time, processing companies can suppress the purchase price of grain, to transfer their own risk ……”
Watching the Tsar’s face become more and more ugly, Borshak’s voice became smaller and smaller, until finally it simply shut up.
Alexander III is not happy is normal, originally thought that someone accompanied with the bad luck, did not think that people have long been prepared to retreat.
Once the Austrian enterprises lowered the purchase price of grain, then most of the losses fell on the head of the Russian Empire, and they could not yet refuse.
After all, during the agricultural crisis, to be able to sell out are considered lucky, if the luck is not good, then it can only be piled up in the warehouse waiting for mold.
Seeing the atmosphere tense up, Finance Minister Alisher Gurov deliberately digresses: “No matter how much losses are passed on, Austrian agriculture will be hit, it’s just a matter of size.
In terms of the volume of Austrian agriculture, even a drop of one percentage point is enough to make the government of Vienna flesh.
Once the agricultural crisis breaks out, even if their industry chain is perfect, they will still suffer heavy losses, and it is impossible for the Vienna government to take no action.
The lack of movement right now is probably because they were also dumbfounded by the French’s sudden action and didn’t know how to respond for a while.”
Hearing this explanation, Alexander III’s expression eased slightly. It was good to have someone to accompany him, being alone in bad luck was just too miserable.
“The Ministry of Foreign Affairs keep a close eye on Austria’s movements, report back to me anytime there is a movement.”
……
Didn’t let Alexander III wait long.
On June 11, 1885, Austria sent invitations to Russia, Denmark, Argentina, the Confederate States of America, Brazil, and other agricultural exporters, in preparation for the Third Agricultural Summit to be held in Vienna next March.
This result was a relief to many. It is good that there is movement, the worst fear is that there is no reaction at all.
The French large farm strategy, is still only a plan, exactly an intention, not even a specific plan.
Want to implement, not a day or two things. Not to mention, the site selection is not a month or two can toss out.
Waiting for the agricultural experts to select the location, completed the preliminary design planning, it is estimated that even the leveling of the land can not come, this year will also be over.
There was still plenty of time, no need to rush at all. There are still years to go before it becomes a threat.
(End of chapter)