Chapter 127 Pricing Power

Style: Historical Author: Xiang HuaiziWords: 2233Update Time: 24/02/20 17:20:42
"What Germany is asking Brazil for coffee pricing rights?"

Tangning said in an unbelievable tone to Deputy Foreign Minister Shamal.

"Yes, Your Majesty."

Chamar, delivered the telegram sent by Tony regarding the situation encountered by the expedition led by Tony in Europe to His Majesty King Pedro III.

"Your Majesty, Wilhelm II and the German government, told Minister Tony that if Brazil wants to obtain Germany's latest chemical industry, military industry, steel and internal combustion engine technology, as well as a loan of 3 billion marks. In addition to paying mineral mortgages, Brazil also needs Pay coffee pricing rights and 35% of the annual cocoa, natural rubber, and sucrose production that is lower than 10% of the market price."

Tang Ning's eyebrows gradually furrowed as she read the message. This trip to Europe was not going to be smooth sailing.

Tony is still very successful in the UK and France. Especially in France, the introduction of technology is very smooth. It also directly uses Brazil's one billion tons of iron ore, 100 million tons of coal mines, 30% of the coffee share, 25% of the cocoa share, 15 % of the rubber share as collateral, and borrowed another 10 billion francs from France.

England and France went well before, but in the third stop in Germany, Brazil was hit hard.

William II was a man who was sometimes very generous and sometimes a little stingy. His personality changed a lot and was very difficult to guess.

Other countries were trying their best to avoid delaying the outbreak of World War I, but William II was very much looking forward to the outbreak of war, and directly encouraged Austria-Hungary to stand up personally.

He has made many strange decisions in history, and because of this personality, Germany's relations with other countries are very delicate. It is always difficult to engage in diplomacy and win over allies.

Before the start of World War I, Germany had only two allies. One of the allies, Italy, was actually obliged not to participate in the war depending on the situation. In the end, the so-called ally Italy stabbed Germany in the back.

If it were not for the outbreak of World War I, Germany would have been full of energy in the early stages of the war, and Bulgaria would have been defeated in the Second Balkans and joined the Allies out of greed. In addition, the British Churchill’s stupid behavior was to seize the country’s chickens and buy them with the country’s efforts. The warships angered the local chickens, so the Ottoman Empire may not necessarily join the Allies like the Kingdom of Bulgaria, which was driven by interests.

Throughout World War I, the four Allied countries challenged the whole world. It would be strange if they did not lose.

Tangning has brought a lot of benefits to Germany. After the initial collision, the relationship has been very harmonious ever since. I thought there would be no obstacles in borrowing money and introducing technology, but I didn't expect that we still bumped into each other.

"What is Germany thinking? Does it want to control the price of coffee in Brazil? Brazil is not a small country like Guatemala, but it actually wants to ask for our coffee pricing rights.

William II disappointed me so much. I had made a lot of concessions to him before. In addition to the mineral mortgage, I had already given him 35% of the coffee share, 20% of the cocoa, sucrose and natural rubber shares, but he was still not satisfied. "

The Germans in Guatemala own 10% of the country's coffee plantations, account for 40% of Guatemala's coffee harvest, and control 80% of the country's coffee bean sales.

Although, in exchange for Brazil's industrialization, Tangning was squeezing Brazil's agriculture, offering low-priced agricultural products and minerals from various cities in exchange for technical and personnel support from the great powers.

However, Tangning has never compromised with anyone and given up the pricing power of Brazilian goods, and Deutsche actually did so this time.

Although the price of coffee today is not as high as the $1.08 per pound in 1812, the current price of coffee remains between 25 and 45 cents per pound. Even if other areas grow coffee because of coffee interests, coffee has The sharp increase in planting volume has caused prices to fall by another 30% to 55%.

However, Brazilian coffee has been affected. However, because Brazilian coffee has excellent quality and accounts for more than 50% of the global market share, it has a negotiating advantage and the price decline is not as large as in other regions, so the profits are still considerable.

Tang Ning thought about further increasing the share of cocoa, cane sugar and rubber, but asking for coffee pricing rights, setting the same pricing power as Guatemala, was somewhat unacceptable to him.

"Your Majesty, the Kaiser and his government have stated that they are willing to increase their support for Brazil if we in Brazil can maintain the same pricing power for coffee sold to Germany as Guatemala."

Like an angry king, Shamal told Germany about the additional free-fee conditions.

"As long as they agree to conditions such as coffee pricing rights, they are willing to increase the amount of aid by 1 billion marks, and they will also increase technical and personnel support. There will be no obstacles to Brazil's introduction of technical personnel."

Germany's technology is undoubtedly very advanced. Even in chemical industry, military industry, steel and internal combustion engine technology, it can be said that it is unique in the world and is far ahead of Britain and France.

As the birthplace of the second industrial revolution, Germany's technological updates are undoubtedly better than those of Britain and France, especially in terms of new technologies, which have a strong foundation and strong advancement.

Brazil failed to catch up with the first industrial revolution, but during the second industrial revolution, Brazil was playing with agriculture.

It can be said that Brazil has not reached the level of the first industrial revolution. Now Tangning is directly involved. He wants to bring Brazil directly to the high-end level of the second industry. The price he wants to pay is quite high.

In other words, Brazil has a strong foundation and can withstand Tang Ning's lavish technology purchases. If it were another country, it would have to depend on the weather and hope that the big country would personally deploy its industry.

Brazil doesn't have this kind of luck, and the red solanum hasn't arrived yet!

Russia now relies on France to export technology. If it weren't for the economic crisis, Hongsu would have no chance to catch up with the world trend.

Tang Ning is very entangled with Germany's conditions. After losing the first pricing power, other countries will propose corresponding reciprocal conditions, which will definitely hurt Brazil.

Tangning really didn't want to open this hole.

Moreover, coffee profits are very high, especially after the outbreak of World War I, profits will expand unprecedentedly.

Take the United States for example.

In 1917, the U.S. Quartermaster General commandeered 29 million pounds of coffee. A reporter at the time said: "Coffee is the most popular drink in the military camp, and soldiers must drink it after every meal."

Most of the coffee in American military camps uses low-grade Santos beans. After being roasted and ground in the United States, they are simply packaged and shipped to the military camps. The coffee must have gone bad after it was shipped to the army.

In this way, the army also has regulations that only 5 ounces of coffee powder can be brewed per gallon of water. Keep the coffee grounds in the brew pot until your next meal. After adding water, add 3 ounces of ground coffee per gallon of water.

If Brazil, like Germany, relaxes its coffee pricing power, other countries are hard to say and will inevitably feel pressure to relax their stance to Britain and France.

During World War I, the sales volume of coffee was no joke. Before countries used drugs to enhance the will of their troops, coffee was a cheap stimulant that could effectively increase the combat effectiveness of their troops.

During World War I, except for Britain, which chose tea, all other countries chose coffee. Even the United Kingdom used coffee because there was not enough tea.

If the pricing power is negotiated, it is unlikely that Britain and France will propose changes during World War I.

Guatemala’s coffee pricing power is very low. It cannot be lower. It is the cheapest in the coffee industry. Agreeing to Germany’s pricing will directly impact Brazil’s coffee industry.