Chapter 524： Dealt with (2/2)

The Austrians are demonstrating to us. They want to use low food prices to force us to compromise with them. ”

Manilov is not stupid. As the Minister of Agriculture, he knows very well how enthusiastic the Russian farmers are in growing grain. At this time, they are required to reduce their output, which is not a favor.

Russia and Austria are completely different. The national conditions of the two countries are very different. After the Vienna government enacted a law, it curbed the increase in the area of ​​land for growing food.

As long as the big aristocrats at the top of the government take the lead in changing cash crops on their own land, many people will still respond. The Russian aristocracy is different. It seems easy to change cash crops. The question is who do they sell to?

This is the gap between the agricultural and industrial countries. Austria has a complete industry, well-developed transportation and communications, and relatively transparent information.

These aristocrats at the top of the society want to know the market situation is very simple, know what kind of sales will be sold.

The Russian Empire is different. Local industry has just begun. Poor traffic has isolated communications. Not to mention the telephone. Even telegraphs have not been able to spread to every city.

Even if someone wants to switch to cash crops, they don't know what to plant? Even if it is planted, it is not known where to ship it for sale.

Without effective sales channels, everyone naturally can only conduct conservative planting. Regardless of the price of grain, at least the grain is easy to sell, and there are merchants to buy it.

If you grow cash crops, you must think carefully. If there are corresponding factories around, then there is no problem, everyone can rest assured to plant boldly.

If there is no factory, then it must be scaled. If the production capacity is insufficient, the transportation cost may not be enough.

Minister of Foreign Affairs Chris Basham: ”Marquis Manilov, please calm down first. Don't forget that Austria is the largest exporter of agricultural products and they will lose the most in this way.

After the price of raw grains collapsed, the prices of finished grains continued to fall. If it continues, eventually these processing companies will not escape.

In order to protect domestic companies, the Vienna government has reduced taxes for these companies, but the Austrian share of the international market is still shrinking.

After getting cheap raw materials, the grain processing companies of various countries suppressed by Austria are now also booming.

If the situation of oversupply does not change and the price of raw grains continues to slump, grain processing enterprises in European countries will soon develop.

From the perspective of interests, the proposal issued by the Austrians is more to preserve the domestic manufacturing industry.

In any case, Austria is still our most important food exporter, and even if the British market is reopened, this fact cannot be changed.

If Austria refuses to accept our agricultural products, this will be the beginning of the disaster. No European country has such a large-scale agricultural product processing industry chain. ”

Alexander II reached out and patted his forehead. The harvest was also a headache. Oversupply in the international food market has made this year's stagnant food a foregone conclusion.

Once the biggest buyer in Austria is lost, there is really no way around the country's mountainous grain. According to preliminary estimates, there will be tens of millions of tons of extra grain in the Russian Empire this year.

Except for Britain's unsure whether the contract can be fulfilled, they currently do not have any large orders. At the same price, no one wants their food.

Everyone has a stable supplier. How can you change people for no reason, or change people you hate.

No way, the Russians have been hacked in Europe in recent years. Now 70% of Europeans do not recognize Russia as a European country, and Russians are naturally not Europeans.

The remaining 30 percent admitted they were Europeans, including more than 74 million Russians. In this era of continental Europe, the total population was less than 300 million, so this ratio is quite touching.

Fortunately, at least half of this grain cannot be shipped. Otherwise, competition in the international grain market will be even more brutal.

This is completely different from Alexander II's original plan. Originally, he also wanted to use food as ammunition to leverage continental hegemony. The result was in his hands before it had time to start.

There was no problem with the plan, but the change was sudden. The main grain exporters in continental Europe are Austria, Russia, Poland, and Prussia, and the rest are not worth mentioning.

For the time being, overseas competitors are not in a good shape. Because the American countries also send more than one million tons of agricultural products to the European continent each year, their market share is not high.

This is determined by interests. The Confederate States of America are going further and further on the road of growing cotton. Now their status of cotton overlord is still unbreakable.

The same price fights for quality, the same quality fights for price, and no cotton in any region can compete with them these days.

The British's Egyptian cotton planting plan died early. After the French occupied Egypt, they wanted to develop the cotton industry. However, under the impact of American cotton, the French finally gave up.

The Indians used the Indian cotton, but unfortunately it was costly to the Americans. Before the interests were discussed, Indian cotton could not become the mainstream.

The West African cotton plantation base in Austria is not much better. Production has not increased much over the years, and domestic capitalists are also big fans of American cotton.

There is no way, this is caused by unique natural conditions. If companies do not use the cotton of the Confederate countries, the products they produce will lack market competitiveness.

The government is not a panacea. It is impossible for all industries to support and disperse energy. In the end, often nothing is achieved. Austria has no advantage in the cotton spinning market, and the Vienna government will naturally not invest in it.

Without this powerful opponent, everyone's life would be even more difficult.

At present, the major grain exporting countries in the Americas are Brazil and Argentina. However, these two countries have fewer people, their grain cultivation area is limited, and their production capacity is not very large.

He got up and walked a few steps, and Alexander II made a decision and made a move.

”Respond to the Austrians and tell them that the Russian Empire is also a responsible big country. We agreed to reduce grain production capacity. The specific measures will follow Austria's example, but we need to change it.

There is no problem with the land fallow method, just move it over. The reclamation law was changed from now on: newly-reclaimed wasteland shall not be allowed to grow grain for five years. ”

Alexander II has seen the consequences of overcapacity, and since international grain exports are no longer profitable, he does not want to continue to increase grain capacity.

In this case, it would be better to give the Vienna government a face. The Russian empire is not increasing its grain production capacity for the time being, but it is OK to reduce the production capacity. Such a challenging thing is not something the Tsarist government can do.

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