Era: I was a farmer at the foot of Yaoling Mountain
Chapter 580 The Changing Landscape of the Edible Oil Market
Fang Wei doesn't need to worry about the sales of various seeds; Yaoling Agriculture has already established mature sales channels and its market share is relatively stable.
Especially rice seeds, which were almost sold out as soon as they hit the market.
Yaoling Agriculture's production plan tends to be conservative; apart from export orders, domestic sales orders are generally tight. This is not only to avoid stockpiling, but also to provide other businesses with a livelihood.
Having too many rice varieties is not necessarily a good thing, and Fang Wei is well aware of the intricacies involved.
morning.
Fang Wei visited the forestry company. The company's head accompanied him to the company's own forest land to check on the planted trees and the understory planting.
“Secretary, we tried to cultivate wild and rare herbs, but all our attempts failed. However, the transplanting in the mountains has been very successful, and this year the yield of these rare herbs can increase at least tenfold.”
The company's representative explained that artificially cultivating rare wild herbs is very difficult, mainly because the breeding process is a major hurdle.
However, the transplantation was successful at the herbal medicine cultivation base deep in the mountains, and the yield increased significantly.
"The problem of artificially cultivating rare herbs cannot be solved for the time being; we can only rely on natural propagation. Besides, if cultivation is successful, the value of these herbs will inevitably plummet, so it's better to cultivate them slowly in the mountains and forests."
Not all plants can be cultivated artificially, and Fang Wei didn't think it made any sense to make these rare herbs so cheap.
Artificial cultivation emphasizes economies of scale, and these few varieties are not a problem.
The key issue is that, apart from natural propagation, there is simply no way to solve the problem of artificial propagation for these herbs, making the investment too large and not worthwhile.
"Understood, we will do a good job at the breeding base."
The person in charge immediately understood that since the natural breeding experiment in the mountains and forests had been successful, there was no need to worry about the extinction of these herbs.
I was probably a bit greedy, wanting everything without considering the return on investment.
"Alright, you go ahead and do your work. I'm going to take a walk in the mountains."
The forestry company now owns chestnut forests, camellia oleifera forests, and other forests, and its scale has expanded several times compared to when it was first established.
Herbs grown under the trees have become a local specialty industry, with demand exceeding supply.
In addition, there are various artificially planted precious trees, which can be harvested in a planned manner every year, providing furniture companies with a continuous supply of timber.
These are collective forest lands, while the contracted state-owned forest lands cover an even larger area. Currently, they generate income from tourism, wild medicinal herbs, fruit picking, and artificial afforestation.
However, some precious trees, even those planted artificially, are not allowed to be cut down, but the company will still plant them in order to protect the environment and obtain more logging quotas.
This is probably what harmonious development between humanity and nature looks like.
One-sided giving is definitely not enough, and one-sided taking will be severely punished by law. Only through cyclical development can a win-win situation be achieved, which is also the principle that Fang Wei has always adhered to.
Fang Wei then drove to the experimental forest. When he went inside, he was amazed to find that the mountains and fields were covered with those rare wild herbs.
The natural breeding experiment was a great success, and the benefits it will bring to forestry companies in the future should not be underestimated.
As long as the artificial cultivation of these rare herbs is not successful, their prices will remain high, and even increasing the yield tenfold from the current level will not help.
"They can transplant them now, and they'll have a big income in the fall."
Fang Wei was very satisfied. After returning, he called the person in charge of the forestry company and asked them to carry out a new round of transplanting.
He will stop once he reaches a certain number, because as long as there are enough plants, natural propagation is not difficult, and he doesn't need to constantly use cheat codes.
Two days passed.
Fang Wei was handling official business in his office when Wang Lin accompanied a guest to the community.
"Secretary Fang, this is Liang Wenhui, the general manager of Xingsheng Grain and Oil Group. General Manager Liang is here to inspect your oil pressing plant and also hopes to conduct in-depth cooperation with you."
Wang Lin introduced the two parties with a forced smile, though he was actually quite unwilling.
But there was no other way; it was a task assigned from above, and he had no choice but to make this trip.
"Welcome, Mr. Liang. Shall we go to the reception room for a while?"
Fang Wei sensed something was off about Wang Lin's attitude, but he still acted very enthusiastically.
Liang Wenhui, on the other hand, seemed very easygoing and said with a smile, "I apologize for my intrusion, Secretary Fang. Let's skip the formalities and go straight to the oil press."
"Alright, everyone, please!"
Fang Wei was actually too lazy to waste time. It was good that the other party was so direct, saving her from all the polite formalities.
So he accompanied Liang Wenhui and Wang Lin to the oil pressing factory and took a quick look around.
After visiting the factory, the group returned to the commune, and Liang Wenhui clearly had something to say.
“Secretary Fang, let’s get straight to the point. I’ve got my eye on your oil mill, and I want to acquire it entirely. As you know, foreign capital has been pouring in in recent years, and they’ve already taken over many domestic edible oil companies. If this continues, all the edible oil that Chinese people consume will be controlled by foreign capital, which is very unsafe. Your oil mill is good, but it’s still too small to keep up with the fierce competition in the future.”
Liang Wenhui speaks directly, but not in a condescending manner; on the contrary, he appears approachable.
Wang Lin rolled his eyes discreetly, then made an excuse about having a meeting in the afternoon and left first.
He wouldn't interfere with Fang Wei's choice, but based on his understanding of Fang Wei, he would most likely not hand over the oil mill to someone else.
“Mr. Liang, I’m not afraid of the suppression from foreign capital. After all, we have planting bases for oil crops, and our products have established a good image among consumers. There is no reason for the company to sell the oil pressing plant.”
Fang Wei smiled and directly rejected the other party.
In fact, Liang Wenhui was right; the edible oil market will become increasingly competitive in the future. Domestic companies are failing one after another, forced to sell their businesses or close down.
To put it bluntly, the edible oil market will belong to foreign capital for many years to come.
But who knows if Liang Wenhui is deliberately making a big show of things, and the other party hasn't stated any conditions, so it's possible that the other party has other motives.
“Secretary Fang, you don’t need to be so wary. We are a state-owned enterprise. When it comes to business, everyone can speak freely. Whether it succeeds or not depends on fate. We would never resort to underhanded tactics.”
Liang Wenhui, a seasoned veteran, immediately sensed Fang Wei's distrust.
He quickly clarified the nature of his company and assured that the acquisition talks were purely commercial and did not involve any coercion or other such activities.
"Oh? To be honest, I don't really know much about your company. How about this, you send someone to Yangcheng to talk to Yaoling Group. If that doesn't work out, you can find another acquisition target, right?"
Fang Wei was genuinely taken aback, not expecting that the other party was actually a state-owned enterprise.
Since they indicated that everything would be done according to business rules, he felt no need to refuse them any face, so he instructed Liang Wenhui to send someone to negotiate with Yaoling Group.
"Alright! Then I won't negotiate with you for now. You'll find out in a few days anyway."
Liang Wenhui smiled politely, then stood up, shook hands with Fang Wei, and took his leave.
That evening, Wang Lin had dinner with Liang Wenhui before calling Fang Wei.
“Secretary Fang, this matter was ordered from above, but it didn’t specify how it had to be done. During dinner just now, President Liang also said that regardless of whether the matter succeeds or fails, he will not use any means outside of business rules.”
"General Manager Liang said something similar to me, which touched me quite a bit, haha. But we currently have no plans to sell the oil mill, so this is unlikely to work out."
Fang Wei had a good impression of Liang Wenhui. He was open and aboveboard in discussing the acquisition, and as long as Liang didn't use underhanded tactics, he was willing to accept it.
"It's good that you know what I'm doing. I won't say any more. We'll talk again when we meet later."
Wang Lin didn't say much, after all, this was a matter he didn't need to consider; Yaoling Group would naturally have a solution.
He made the call simply to fulfill his duty as a friend, and he will not get involved in anything that happens afterward.
The two then ended the call, and Fang Wei went to the study.
The next day.
Fang Wei contacted Cai Tong and Hu Linwei and told them about Liang Wenhui's visit to discuss the acquisition.
"Secretary, what are your thoughts?"
"My thinking is simple: if the other party wants to discuss cooperation, then there's room for negotiation; but if they want to acquire us, then forget it. You have to understand that we produce a large amount of oilseed crops every year, and I'm not comfortable with someone taking over the processing stage."
Fang Wei's main concern was this issue, as his side not only harvests camellia seeds every year, but also grows rapeseed, peanuts, and other crops.
If he didn't own an oil pressing plant and sold raw materials directly, he would be vulnerable to drastic market price fluctuations. This would essentially cut off a source of revenue for the company, so of course he wouldn't sell the oil pressing plant.
Agricultural product processing can boost local employment and bring good profits to the company, so why would he sell the oil pressing plant?
He had also considered the competition they would face in the future. The company had a complete industrial chain and was not afraid of foreign companies causing trouble.
"Okay, we know how to talk to them now."
Once Fang Wei set the principles, the subsequent negotiations became much easier.
As long as Cai Tong and others hold their ground, the matter will naturally fall through.
Two days later, Liang Wenhui personally led a team to Guangzhou for negotiations. After three days of negotiations, the talks broke down, and the acquisition fell through.
morning.
Fang Wei personally cut the ribbon to mark the completion of the first phase of the new housing construction project, and the first batch of relocated households quickly received their keys.
He and Pan Lianhua didn't move into their new home immediately, since some of their old furniture was no longer suitable and needed to be replaced.
The couple found it too much trouble, so they had a bamboo furniture factory make a brand new set of furniture for them, although a lot of the wood was salvaged from their old furniture.
After all, almost all the old furniture in the house was made of precious wood, which is hard to find even if you have the money these days. (End of Chapter)
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