Era: I was a farmer at the foot of Yaoling Mountain

Chapter 392 Sudden Market Changes, Competition for Edible Oil

This morning.

Fang Wei, Zhao Jinsheng, and others visited the Forestry Brigade to inspect its work this year.

"Secretary Fang, fellow council members, our brigade has cut down 27000 trees of various kinds this year and replanted more than 30000 saplings. At present, the entire forestry brigade has 15 chestnut trees, 12 camellia trees, more than 5 fruit trees, and countless other kinds of trees."

The head of the forestry brigade spoke with great pride about the year's achievements.

Currently, the brigade has multiple industries, including seedling cultivation, afforestation, logging, fruit tree cultivation, under-forest breeding, and under-forest planting, with an annual output value exceeding 100 million yuan.

What is the biggest advantage of the forestry brigade? It is the accelerated growth of trees and various plants. For example, while it takes others at least ten years to cultivate a precious tree, many trees cultivated by the brigade can mature in three to five years.

With a large population and rapid reproduction, the forestry brigade can produce timber continuously.

Some precious trees are very valuable. Wild trees cannot be cut down, but artificially cultivated trees can be cut down according to plan.

"Good job, you've done a very solid job. However, you can't be complacent. With the gradual improvement of various laws and regulations, whether or not artificially planted precious trees will still be allowed to be cut down is still an unknown."

Fang Wei gave the forestry brigade a heads-up in advance. He couldn't remember whether artificially planted trees on the mountain could be cut down in the future, but it was still very necessary to make contingency plans in advance.

"Okay, Secretary Fang, we will seriously consider this issue."

The head of the forestry brigade remembered Fang Wei's reminder and would discuss countermeasures with everyone later.

After inspecting the work of the forestry brigade, Fang Wei, Zhao Jinsheng, and others went to the brigade's canteen for lunch. After lunch, the group went to the pig farm, poultry shed, compost yard, and other places to inspect the production and operation of each place in detail.

The cooperative did not focus on developing the livestock industry, so this sector accounted for a very low percentage of its output value.

Many people are now calling for abandoning this practice. In addition, composting sites are not very meaningful, since fertilizer can be bought afterward. Who cares about bicycles when they have cars?

But Fang Wei doesn't see it that way. The cooperative uses very little chemical fertilizer and almost no pesticides in its agricultural production.

With the added benefits of these attributes, the farmyard manure produced by composting farms is no less effective than chemical fertilizers, and it doesn't deplete soil fertility. When soil fertility is guaranteed, crop yields depend primarily on the yield limitations of the variety, rather than other factors.

As for the aquaculture industry, let's maintain the current scale for now, which is equivalent to self-production and self-sales, and is not affected by external interference at all.

It's quite interesting, really. Many township officials would come to the vegetable market of the cooperative's various brigades to buy vegetables and meat, because the quality of the spotted pigs, ducks, and chickens produced by the cooperative was so good that no other farm-raised pigs or chickens could compare.

“Secretary, we can continue to use farmyard manure, and we can also stop using or reduce the use of pesticides, but the livestock industry is very profitable now, so why don’t we expand the scale?”

Some council members couldn't understand the problem and asked Fang Wei directly on the spot.

"Aquaculture pollutes water sources and land to a certain extent, and it's also bad for the overall environment of our community. Are you sure you want to make money this way?"

"Then let's forget about it. I was just saying."

Everyone understood Fang Wei's idea: to create a better living environment for the members.

Anyway, the cooperative has many ways to make money, so this little bit won't make a difference. The director who raised the question immediately swallowed his words.

Green hills and clear waters, surrounded by flowers and plants—everyone loves such an environment.

Next, everyone inspected some other small facilities before returning home in the evening.

"Third Brother, I heard the commune is going to cut off the livestock industry?"

During dinner, Pan Lianhua suddenly asked a question.

Fang Wei was speechless. That's the bad thing about the countryside; even the most unfounded rumors can spread far and wide.

"No, we've decided to maintain the current scale, focusing on self-production and sales with exports as a supplement. If we were to withdraw all of them, we wouldn't be able to enjoy such good pork, chicken, and duck, and I would be the first to object to that."

"Exactly, I also think the rumors are unreliable."

Pan Lianhua was relieved and continued eating with her head down.

Sun Daoren hesitated for a moment, then said, "Third brother, I'd like to go back to the temple soon. Do you have time to take me? I'll stay on the mountain for a while, and I'll be back before Binbin's holiday."

"Okay, then let's do it the day after tomorrow. I'll take you up the mountain first thing the day after tomorrow morning."

Fang Wei wasn't afraid of the hassle; now that he could drive directly to the mountain gate, it was quite convenient to visit Sanqing Temple.

Master Sun laughed and went back to pack his things.

Now he doesn't need to bring anything when going up the mountain. The incense at Sanqing Temple is very prosperous, and his two disciples lack nothing, so there's no need to worry about them at all.

As agreed, Fang Wei sent Sun Daoren to the mountain. Binbin came back on the weekend and didn't see his master, so he was quite unhappy.

The child and Master Sun had a deep bond, and so did Master Sun; otherwise, the child wouldn't have stayed at the cooperative and would have gone back to the mountain long ago.

"Binbin, the Taoist priest said he will be back before the winter break, so don't worry about anything else."

Pan Lianhua offered some words of comfort to her son, and Binbin's mood improved.

Starting this semester, Master Sun reduced the frequency with which he taught Binbin traditional Chinese medicine. He knew the boy would be taking the college entrance exam after the new year and didn't want to take up too much of his time.

Sun Daoren felt that his health was still good and he could live for another twenty years without any problem, so there was really no need to rush.

He had grown accustomed to life in the village, and being in the midst of worldly affairs actually gave him more insights, which greatly helped his spiritual practice. Besides, the mountains weren't a secluded paradise; in modern society, it's already difficult to find a place for secluded spiritual practice.

"Dad, I've made up my mind. I'm going to apply to either Beijing University of Traditional Chinese Medicine or Guangzhou University of Traditional Chinese Medicine."

After careful consideration, Binbin basically determined his ambition.

Fang Wei nodded and said, "That's good! Now that you have a goal, work hard and strive to turn your dream into reality."

"I'll make it."

Binbin seemed very confident. Fang Wei smiled slightly, got up and went to the yard.

"The child is growing up and has his own opinions, which is a good thing."

Fang Wei was very pleased to see this. He knew that both universities were very good, and his son could choose whichever one he wanted to apply to.

night.

The older sister cooked a table full of dishes, and she was very happy that her two children came back to rest for the weekend.

Both Binbin and Xiaojie were raised by their older sister, and her doting on the children was no less than that of Fang Wei and his wife.

The family was having dinner when Zhao Jinsheng rushed in and said, "Secretary, come to the commune after you've finished eating. Someone wants our rapeseed oil." "The rapeseed hasn't been harvested yet. Who's in such a hurry? You go ahead, I'll be there soon."

Fang Wei told Zhao Jinsheng to go to the office first. He quickly finished his meal and went to the meeting room.

Upon entering, he saw Zhao Jinsheng talking to three people. He greeted them and sat down.

"Secretary Fang, these people are from Guangzhou. They want to buy our rapeseed."

Zhao Jinsheng reviewed the other party's letter of introduction and identification; their employer was a subsidiary of the Guangdong Provincial Grain and Oil Company. The company's business included the production and sale of edible oil, hence the mention of purchasing rapeseed.

"Everyone, I'm sorry, but our rapeseed is not for sale. We have our own oil pressing plant, which will be put into production after the Spring Festival."

Fang Wei didn't have time to chat with the other person. If she had known it was about this, she wouldn't have been in such a hurry to eat earlier.

“Secretary Fang, do you not understand the edible oil industry? It’s not like you can just sell the oil once you extract it. You don’t have a brand or sales channels, so it’s more profitable for you to just sell rapeseed directly.”

Hearing Fang Wei's words, the other party was still unwilling to give up and tried to persuade Fang Wei to change her mind through persuasive words.

Fang Wei immediately formed an opinion about these people. The cooperative had rich experience in food production and sales. What difference could there be between selling rice and selling cooking oil?
The person who spoke exaggerated, which easily caused others to feel disgusted.

"The factory is under construction, and we can't change our minds just because of a few words from someone. Sorry everyone, we've made you come all this way for nothing."

Fang Wei didn't want to waste any more time and simply served tea to the guest.

The man wanted to say something, but his companion stopped him, and the three of them said goodbye and left.

Fang Wei and Zhao Jinsheng thought the matter was over, but the next day, other customers came to discuss purchasing rapeseed.

"Secretary, wasn't the price of rapeseed adjusted? Why is everyone focusing on this?"

“Price fluctuations can occur in many ways, including short-term price drops and medium- to long-term price increases. I now strongly suspect that there has been a reduction in edible oil production, not just rapeseed oil, but also peanut oil, soybean oil, and other varieties.”

I received several groups of clients, all of whom were genuinely there to discuss business; they were clearly not scammers.

So, if the other party is in such a hurry to sign the contract, can it be interpreted as them wanting to lock in the price? There's only one reason for doing this: the supply is tight, so they're buying up goods everywhere.

In this day and age, information is not readily available, and it is difficult to obtain information like this in a timely manner; one can only guess based on one's own judgment.

"No matter what, we're not selling the rapeseed we have."

Zhao Jinsheng understood what was going on and decided to resolutely refuse to sell rapeseed to anyone who came.

Just kidding, what will happen to the oil mills if all the rapeseed is sold?
Fang Wei then had the food company's name changed to "Yaoling Grain and Oil Food Company," adding the functions of purchasing, producing, and selling edible oil.

The oil mill belongs to the grain and oil food company, and the rapeseed oil it produces is branded with the "Yaoling" trademark.

The sales staff at the company got to work early. Although it was still several months before the rapeseed oil hit the market, it was essential to get some pre-launch buzz.

Subsequently, someone actually came to place an order for "Yaoling Brand Rapeseed Oil" produced by the Grain and Oil Food Company.

Fang Wei certainly wouldn't blindly sign a contract with someone. The rapeseed hasn't been harvested yet, and the production costs and management expenses are unclear, so how can the price be set?

Following market prices is acceptable, but Fang Wei suspects that rapeseed oil prices will surge next year.

The relationship between supply and demand determines prices; this is a simple truth that he couldn't possibly be unaware of.

However, to reassure these people, Fang Wei creatively invented a "preemptive purchase right deposit." In other words, customers with priority purchase rights could take delivery of the goods the following year, and the price would be determined according to the market conditions at that time.

The customer has the right to waive their right of first refusal, but this portion of the deposit is non-refundable.

Fortunately, the deposit wasn't too large, so it wouldn't be too much for the customer.

Fang Wei dared to offer such terms because he judged that there was a problem with the market's supply and demand. The shortage of cooking oil not only involved price issues, but he feared that even those willing to pay high prices might not be able to buy it.

A few days later, he received the definite news.

This year, soybeans and peanuts have both experienced large-scale production reductions, which is due to climate factors. There's nothing anyone can do about production reductions caused by disasters.

As a result, rapeseed oil became highly sought after, which is why some people placed orders in advance and purchased large quantities of rapeseed oil.

"Secretary, with such harsh conditions, I thought everyone would have to pay a deposit for priority purchase rights. But in the end, these people signed contracts with the company without hesitation and paid deposits."

Zhao Jinsheng and several directors were extremely busy. Many people had subscribed to the "preferential purchase right deposit" that Fang Wei had come up with, all fearing that they wouldn't be able to get the goods next year.

Fang Wei isn't an unreasonable person; he'll give them appropriate discounts when the time comes.

This morning.

He went to Zhao Yong's office.

"Secretary Zhao, what are your instructions?"

"I have no instructions. Please sit down and I'll make you a cup of tea."

"Let's not go to that trouble, let's get down to business first."

"Alright! Let me ask you, have all the rapeseed oil from your oil mill been ordered? Someone from the region called me today, hoping to purchase a batch of rapeseed oil from us."

The two sat down and got straight to the point; it turned out that Zhao Yong was still looking for him about rapeseed oil.

The market supply in the region is showing signs of tightening, and in order to ensure the supply of edible oil, relevant departments have begun to look for sources of supply.

They didn't know how the other party knew that the cooperative had planted 22 mu of rapeseed. They couldn't communicate with the cooperative, so they called Yaoling Township directly.

"What is the amount?"

Fang Wei did not refuse outright, but instead asked for some details.

Zhao Yong told him about the demand in the region, which was indeed a considerable amount, but Fang Wei could still manage it.

"Okay! You can agree to their terms, but you must pay a partial prepayment first. Also, the price can't be based on the current price; it has to be based on the market price at the time. If they don't agree, let them find someone else."

Fang Wei's grudges with the region have long since faded away. Those who like to pick fights know that they should never offend Fang Wei.

After all, those who go against Fang Wei almost never end up well.

Therefore, he would neither discriminate against units within the region nor offer them any preferential treatment; he would simply handle matters officially. (End of Chapter)

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