Chapter 491： Franz with headache

With the end of the economic conference, the power industry is listed as a new pillar industry in Austria for the next ten years, accompanied by heavy industry.

Today, the industrial scale of Austria's heavy industry is also an astronomical figure. The industries involved are: steel, metallurgy, coal, machinery, chemical ...

In terms of classification, electricity can also be regarded as a type of heavy industry, and the two sides are very closely linked. It is only because the industry has just started and its scale is very large.

The number of pillar industries is unlikely to be large. Since electric power and heavy industries have become the new pillar industries, naturally there are industries that have fallen from the "pillar industries".

There is no doubt that the "railway" has been replaced. This is not to say that the railway is not important anymore. It is mainly after more than 20 years of hard work that most of the domestic railways in Austria have been completed.

The railway industry is beginning to saturate. What is needed in this state is steady development, and the government does not need to invest too much resources.

In addition to railways, agricultural development has actually reached its limits. The growth rate of local agriculture has long been slowed down, the agricultural product market is so large, and the more food is grown, the more profitable.

The current agricultural growth rate is similar to the population growth rate. Austria already accounts for 70% of the international agricultural export market, and this share is almost impossible to grow further.

It won't even be long before it will be hit by the comeback of Russian agricultural products, and it is very difficult to maintain its current market share.

In order to ensure the healthy development of agriculture, Austrian agriculture has been adjusted several times, from the direct export of the original agricultural products to the subsequent export of refined agricultural products.

This period also includes the promotion of raw silk cultivation and the development of the raw silk industry in Lombardy and Venesia; the promotion of grape cultivation in the Balkans and the establishment of the wine industry.

These practices are artificially reducing food production to ensure food prices. With the outbreak of the Prussian-Russian war, the Russian rival was missing from the international market, and life has improved in recent years.

However, this good day is coming to an end. The Tsarist government is negotiating with countries to use food to offset debts it had previously levied.

This is forcibly sold, and if the creditors do not accept it, these debts will never be repaid. Needless to say, Franz also knew that Alexander II's plan would succeed.

Mao Xiong's debt is not easy to collect. Even if it is discounted, it is better to recover some of it. Even if governments have opinions, capital will allow everyone to compromise.

The dispute now is nothing more than a matter of interest, which can be negotiated sooner or later. Diplomatic obstacles preventing Russian food from entering the international market have now been cleared by Alexander II.

The market is so big. If you sell more, others will sell less. Although there were many food shortages in this era, it is a pity that only Europe has the purchasing power.

If the transportation of the Russian empire was not enough, it would directly hinder the hind legs of their food exports, and international food prices would soon collapse.

Franz never doubted the Russians' food production capacity. Especially when Alexander II made a huge wasteland, he simply overturned the table.

In recent years, Alexander II has been assassinated more than two dozen times, which proves how hateful his reform is.

Even the aristocracy, whose head was no longer bright, responded. It is a pity that the general situation has been achieved, the land has been reclaimed, and it is too late to return.

Franz's internal fighting, Franz was not interested in participating. Including Alexander II's use of food to pay off debts, he is not very optimistic.

No matter how good the policy is, it depends on the implementation, and the domestic grain is not Tsarist. If you want to use it to pay off the debt, you have to collect the grain and ship it out.

The financial pressure brought by it is irrelevant. Someone just needs to implement the food purchase alone. In the face of interest, who can guarantee that these bureaucrats remain indifferent.

You should know that when Alexander II was staring so tightly, there were people who seized the rations of farmers, and they also caused riots, and not just once.

Collecting food in the form of taxation will result in three or five extra buckets, or a word similar to "fire consumption" will pop up and be legally lost.

With the money to buy food directly from the people, the bureaucrats will do the same. Buy it directly from the peasants at a low price, then sell it to the capitalists for profit, and just leave a little to the Tsar to make a difference.

Unless the Tsarist government sets a high price, which is higher than the market price, bureaucrats can get more benefits from it, otherwise they will not receive much food.

The Tsarist government's plan could not be realized, but the impact of Russian food was not small. As long as it is profitable, the capitalists will still ship the grain for sale.

Franz was very skeptical that Alexander II was intentional. First, countries will use the grain to settle debts and let them open their markets.

The Tsarist government symbolically pays off a little bit of grain every year, and then asks the capitalists to sell the grain for sale.

Although it seems that the tsarist government did not make any profit, in fact, as long as the domestic slow-moving grain is sold, it is a big profit.

Even if the countries knew the Russian plan, most of them would push the boat. For food importing countries, being able to buy cheap food is always a good thing.

It is only the current food exporters that have lost their interest, and Austria is the biggest victim. Politically, there has not been any confrontation, and Russia and Austria have confronted each other economically.

Now there is little room for Austria to choose. Either use the advantages of transportation and agricultural technology to directly hit the price of food and make it unprofitable for Russians to export food.

But to do so, that is to kill an enemy eight hundred and damage one thousand. We must know that Austria is now the hegemon in the international agricultural export market, and it can obtain a lot of benefits every year.

Even if it wins the price war and occupies a larger market, profits will decline due to the decline in food prices. In the end, not only will it not be able to obtain greater benefits, but it will pay a small price.

The Russians are just barefoot challengers. If they fail, it will be the same. If they succeed, they will get a lot of benefits.

Originally, Americans played a price war, defeated all competitors, and established a hegemony of grain exports, which was to achieve strategic goals.

Now Austria can't follow suit. It consumes a lot of financial resources and ignores it. The key is now in the era of colonial empire. Britain and France have a lot of colonies.

The lack of indigenous food can also be remedied from the colonies. Relying on controlling international food exports will scare them at all.

Otherwise, Franz has long drummed up the Grain Export Alliance and won several grain exporting countries to manipulate the international grain market in order to obtain greater benefits.

Unable to achieve strategic goals, but also facing the challenges of many competitors, it can be said that after the basic accumulation of capital has been completed, the importance of agriculture has decreased.

Declining importance does not mean giving up, in fact agriculture remains one of Austria's most important industries. The industrial chain formed around agricultural production accounts for 38.6% of Austria's gross national product.

Although this proportion is decreasing year by year, it still does not detract from its importance. In the face of Russian challenges, industrial adjustment is imperative.

Austria's agricultural industry system has been perfected. From the initial production of agricultural products to the sale of terminal agricultural products, the added value of products has almost been played to its limit.

For example: from wheat-flour, biscuits, from fruits, vegetables-canned food, from grapes-wine, raisins, from potatoes-fries ...

This era is all ecological agriculture. There are no chemical fertilizers, pesticide additives, and no green food. The people are too poor and there is not much market for brand agriculture.

The complete industry chain has increased the ability to resist risks, and when it is impacted, it will have a greater impact on the economy.

The technical content of these industries is very low, and the European countries are not completely without agriculture. They also exist in these industries, but they are not limited by raw materials.

Once a large amount of cheap raw materials appeared, capitalists would certainly not mind expanding production. Even Austria is the largest buyer of Russian grain, and capitalists' temperament has always been low before their interests.

Russia and Austria's low tariff system has certainly created opportunities for Austrian exports of industrial and commercial products, but also brought challenges.

Faced with cheap foreign food, these agricultural product processing enterprises will definitely make choices in accordance with their own interests. In this respect, the government cannot force them, after all, companies also have to survive.

Today, the profits of agricultural product processing enterprises have also fallen sharply, from the original 30% to 40%, to the current 10%.

This is still gross profit, and net profit will be even lower. Under the cruel market competition, agricultural product processing enterprises have entered the era of low profit, all relying on volume to make money.

The relatively high profits are all snack processing companies. However, the competition among these companies is even more brutal. Almost all of the snack products on the market have dozens or even hundreds of similar products.

The single piece profit is good, the problem is that the sales volume is not large. There are few companies that can make brands and make huge profits.

Now Austria's agricultural industry technology has risen to the top of the era and has become a guardian presence.

Fortunately, the agricultural products of the Russians are relatively single. They are nothing more than potatoes, wheat, corn, and fruits and vegetables, unless they are processed into cans, or they will rot before being shipped out.

Obviously, the Russian industry has not kept up, and these industries are not developing very well. The products produced cannot be sold locally, let alone the international market.

At this stage, it is imperative for Austria to adjust its agricultural industry. For example, it will cut the output of agricultural products that will obviously be affected, and change to other markets where cash crops are in short supply.

easy to say, hard to do. With so many farmers in Austria, wanting them to change their cultivation habits is not something that can be done in a single sentence.

Because market information is opaque, even if Franz is unable to accurately determine what agricultural products will be lacking in the future.

I don't know what is missing in the market, which makes the government guide the cultivation of agricultural products into empty words.

Unless it is a planned economy, otherwise, there will be chaos in the cultivation of agricultural products for a long time to come.

This is an unsolvable problem. The agricultural products that are in short supply this year may rot in the ground next year and no one cares.

Farmers are also adjusting the direction of agricultural product cultivation according to their own judgments. Too many people are involved and they cannot coordinate at all.

Franz had a headache.

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