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

Chapter 586 Embracing the Challenge and Actively Expanding Production Capacity

Another crucial point is yield. For example, rice with a yield of 2000 jin per mu can only yield about 1800 jin per mu in other places, but it can achieve a yield of 2000 jin per mu in the planting area.

The bonuses from these attributes are not limited to yield; they can also improve resistance and enhance the taste, flavor, and quality of food and cash crops.

To put it bluntly, when planting the same variety of rapeseed, the rapeseed produced in the [planting area] has a significantly higher oil yield than that from other areas.

All these advantages combined create a huge cost advantage.

Therefore, Fang Wei did not believe that the company's oil pressing plant would be eliminated by the market, but Liang Wenhui was right about one thing: the company's oil pressing plant was still too small in scale.

Even after the oil mill completed its technological upgrades and built a new production line, its current scale is still insufficient.

"take it easy."

Fang Wei then called Lin Bingkun and Zhang Chu respectively, and told them about Liang Wenhui's visit to discuss cooperation.

He also entrusted the development of the oil mill to the two of them.

the next day.

Lin Bingkun and Zhang Chu arrived at the company together and entered Fang Wei's office.

"Why are you here?"

Fang Wei found it a bit strange. He had told them about the oil press yesterday, and thought they would need some time to think it over, but he didn't expect them to come here today.

“Secretary, we think General Manager Liang is right. We should expand our scale rapidly. This matter has two parts: first, expanding the planting area of ​​raw materials, and second, actively expanding the production capacity of edible oil.”

Lin Bingkun had obviously already discussed the matter with Zhang Chu and directly explained their plan.

It's quite interesting, really. Just a few days ago, he rejected Suiyang County's offer to invest in building an oil pressing plant, and today he's already thinking about expanding production and increasing planting bases.

"Oh? So you're going to agree to build a factory in Suiyang County?"

Fang Wei smiled and asked a question in return.

There were many reasons why he was unwilling to invest in building a factory in Suiyang County before, and it was not because he was unwilling to expand production capacity.

Otherwise, he wouldn't have thought of continuing to contract land to grow peanuts.

"No, I still don't plan to build a factory in Suiyang County. Instead, I plan to build two new production lines in the county's industrial park."

Lin Bingkun glanced at Zhang Chu, who immediately replied.

The planting was managed by Lin Bingkun, and the oil pressing plant was managed by Zhang Chu. Often, the two of them needed to work together.

The two of them then took turns explaining their general plan.

Expanding production capacity will involve building new production lines on the existing site, since there's still plenty of land available in the industrial park. Centralized factory construction has significant advantages over dispersed construction; it simplifies management and creates more job opportunities for the local community.

Furthermore, the company has never cooperated with Suiyang County before, and making an investment of over 100 million yuan carries significant risks.

"What about the land contracting issue?"

Fang Wei remained silent throughout, simply listening to the two of them talk.

Then he asked another crucial question: how to solve the problem of expanding the peanut planting area.

“Suiyang County won’t give up on bringing our company in; they’ll definitely agree to my proposal soon. Besides, even if we can’t reach an agreement with Suiyang County, we can still talk to other places.”

Lin Bingkun was determined not to back down. If Suiyang County agreed to only contract the land, then he would have a proper talk with them.

If the other party insists on bundling land contracting with investment in factory construction, then sorry, Yaoling Agriculture can choose to grow peanuts elsewhere.

Yaoling Agriculture has good peanut seeds, and the research institute is continuing to research a new generation of varieties.

Lin Bingkun refused to believe that the excellent new varieties he had cultivated were inferior to the old varieties in Suiyang County.

"Go and discuss this with General Manager Cai. Once you've reached an agreement, write me a report."

Fang Wei nodded and told the two of them to go and discuss the matter with Cai Tong.

He said the ultimate decision-maker only needs to ensure the final checkpoint is properly managed.

Zhang Chu and Lin Bingkun then got up and left, going together to the group company to find Cai Tong.

The next morning.

Fang Wei went to the research institute to check on the progress of various research projects.

Overall, all projects are progressing smoothly. For example, the research on the new generation of peanuts has entered the stage of small-scale planting, and all indicators are excellent.

After leaving the research institute, he went to the industrial park and focused on inspecting the oil pressing plant.

The oil mill is currently producing peanut oil and rapeseed oil, and the raw materials are mainly supplied by Yaoling Agriculture. Now, it rarely purchases raw materials from outside sources.

Purchasing raw materials from outside sources is not only difficult because the quality cannot meet the factory's requirements, but also because the cost is high.

“Secretary, our current products are mainly rapeseed oil and peanut oil, with a small amount of camellia oil. Camellia oil production is constrained by raw materials, so expanding production is not easy, but peanut oil and rapeseed oil do not have this problem.”

The factory manager explained that, given the current scale of the factory, there is no need to worry about the supply of raw materials.

However, if two more production lines are built, the problem of raw material supply will become increasingly prominent.

There's still a surplus in rapeseed cultivation, but the supply of peanuts is insufficient unless we purchase them from outside or expand the planting area. "Yes, Mr. Zhang and his team are already working on a solution; they'll get it sorted out."

Fang Wei reassured the factory manager and then left the industrial park.

Back in his office, he called the group company and asked them to send him the latest sales report. He then carefully reviewed the company's edible oil sales.

Overall, the company's various "Yaoling" brand cooking oils are selling quite well, especially the camellia oil, which is in high demand and short supply. However, the camellia oil is not a convincing indicator, mainly because of its limited production.

In addition, rapeseed oil also sells very well, offering good value for money and attracting many repeat customers.

Peanut oil sales are generally mediocre due to unstable raw material supply and lukewarm market feedback.

Fang Wei believes that peanut oil still has great potential. Previously, the main problem was the raw materials. Once the peanut planting base of Yaoling Agriculture is built, this problem can be fundamentally solved.

A few days passed quickly.

Fang Wei received a call from Wang Lin, who said that Secretary Liu of Suiyang County would be coming to Xinlin County the next day.

Upon hearing this, he knew that the other party was getting restless and was planning to lower their demands to discuss the introduction of Yaoling agriculture.

In situations like this, whoever loses patience will be at a disadvantage. Yaoling Agriculture has options; at worst, they can go to another county to negotiate land contracts. But Suiyang County doesn't have an option.

When Fang Wei got home that evening, he told Pan Lianhua about it.

"Third Brother, why are you so concerned about the location of the factory?"

Pan Lianhua believes that building the oil pressing plant in the place where the raw materials are produced can save on transportation costs.

"It's not that simple. If I go to an unfamiliar county and invest hundreds of millions of yuan, the company will suffer if they create even a small problem."

Fang Wei explained to his wife that some things cannot be judged by appearances alone; hidden costs must also be considered.

To be honest, some investors regretted their investments after they were made.

To use an inappropriate analogy, this kind of thing is like a pig butchering scam. When they bring in funds, they make all sorts of promises, but once the funds are in, they shut the door and beat the dog.

Even if it doesn't reach that level, a company can be rendered unable to move an inch by simply creating some obstacles.

Therefore, one cannot contract land and invest in building factories at the same time; one can only start with planting first, and then discuss other things after becoming familiar with the local conditions.

"What a hassle! But you're right, it's always better to be cautious."

Pan Lianhua is a competent factory manager at the bamboo ware factory, and she has a good management style.

However, the factory doesn't handle sales; that's the company's sales department. Therefore, Pan Lianhua isn't very familiar with the various tricks of the trade, and what the man said today has certainly broadened her horizons.

The next day.

Fang Wei arrived in the county around noon. At this time, Secretary Liu of Suiyang County had already arrived, so Wang Lin simply invited Fang Wei to have lunch with Secretary Liu.

During the meal, no one talked about business; instead, everyone enjoyed themselves immensely.

After the meal, Secretary Liu got down to business: "Secretary Fang, can't you really invest in an oil pressing plant in our county?"

"No! We've already decided to build a new production line in this county, so our cooperation can only start with contracting land."

Fang Wei smiled and firmly rejected the other party's request.

Secretary Liu wasn't angry; he just sighed deeply.

"That works! I hope that through a few years of cooperation, you will see the true colors of our sincerity."

“That’s right. Cooperation should be done gradually. Launching a large number of projects at once might result in unfinished projects. Secretary Liu, don’t worry, I believe we can cooperate as quickly as possible.”

Fang Wei didn't make any empty promises to the other party; they might invest in building a factory in Suiyang County in the future, or they might not.

However, by contracting land, Yaoling Agriculture can bring advanced technology and management experience, while also increasing employment for farmers. Why not do it?

"Thank you for your kind words. We will definitely become great partners. Secretary Fang, please have Yaoling Agriculture send someone to the county to discuss land contracting. I guarantee there will be no additional conditions."

Secretary Liu made his bottom line clear, which shows that he came with sincerity this time.

"Okay, I'll talk to President Lin about it."

Fang Wei nodded, verbally agreeing to the other party's request.

After leaving the county town and returning to his office, Fang Wei called Cai Tong and Lin Bingkun.

When Lin Bingkun learned that Suiyang County had compromised, he couldn't help but burst into laughter. He had guessed this would be the outcome, but he hadn't expected the other side to compromise so quickly.

Subsequently, Yaoling Agriculture sent a negotiation team, and Lin Bingkun also went to Suiyang County several times. Finally, the two sides reached an agreement.

Suiyang has provided Yaoling Agriculture with many preferential policies, including but not limited to tax reductions and exemptions, guaranteed loan amounts, and expedited administrative approvals.

Zhang Chu was also busy and quickly submitted a report on building two new production lines.

The other party also promised that the new production line would be operational before next summer's harvest.

However, the investment in these two production lines is comparable to that of the previous four, indicating that Zhang Chu is prepared to invest heavily. (End of Chapter)

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