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

"Everything requires the right approach and method. How can we just rush forward blindly? Sometimes we can't just bury our heads in our work; we also need to look up and see where we're going from time to time."

Go to the Agriculture Department first for a while. If you still can't adapt, then you can go down to the county level. You need to discuss this with Xiaoya. Don't make decisions on your own, understand?

Fang Wei didn't know how to evaluate his nephew, but there was one thing: he admired Tao Tao's sense of justice.

These days, not everyone can stick to their principles. Bowing to reality is the choice of most people. Only Tao Tao, this "fool," would take everything so seriously.

"Got it, Manman."

Fang Tao didn't come to his senses until after he hung up the phone. Had his uncle become so capable?
Getting from the institute to the Department of Agriculture was no easy task. After returning home and discussing it with Xiaoya, she firmly supported his decision to report to the Science and Technology Department.

“Tao Tao, to be honest, you’d be better off going to the countryside than staying in the hospital.”

Xiaoya also felt that Fang Tao should change jobs, but there was one condition: he couldn't keep making silly mistakes like before, or he would soon be isolated by everyone.

Having a sense of justice is good, but is it really necessary to be so meticulous about everything?

"Let's see how it goes. Manman also said that if I can't adapt, I can go back to Xinlin County."

Fang Tao sighed and then fell silent.

His transfer was naturally facilitated by Wang Lin, Pang Wanxin, and others behind the scenes; otherwise, such a good thing would not have fallen into his lap.

Fang Wei learned of this news a little earlier than Tao Tao, and he truly hadn't expected Wang Lin and the others to transfer his nephew to a government office. To be honest, Tao Tao's personality was really unsuitable for a government job; who knew how much trouble he would cause Wang Lin in the future.

Of course, he still harbored a sliver of hope that Tao Tao could make a change based on what had happened before.

morning.

Fang Wei was reading a document when Yang Feng knocked on the door and came in.

"Chairman, nothing major has happened recently, but several edible oil giants have been behaving strangely. It's not peak sales season, but they've been secretly mobilizing supplies, and their factories are working overtime. I suspect they're planning something big."

The entire group is currently operating smoothly, except for the edible oil sector, which is showing signs of trouble.

Therefore, after analyzing the situation, Yang Feng felt it necessary to report to Fang Wei.

"A big move? Are they going to start another price war?"

Fang Wei vividly remembers the last round of price wars, in which several giants launched a war over edible oil, using their financial advantages to crush more than half of the small and medium-sized enterprises in the market. Even Liang Wenhui almost didn't survive.

After the reshuffling, the number of edible oil companies in the market has been sharply reduced, and a few giants have controlled a considerable market share.

If a price war breaks out now, it's obvious who it's targeting.

"It's not certain yet, we can only say there's a trend."

Yang Feng didn't dare say he was dead, but he had basically accepted the conclusion in his heart.

"Let's wait and see. We're not afraid of any price war. Contact the sales company and have them closely monitor the edible oil market and report any unusual activity immediately."

Fang Wei has streamlined the entire edible oil industry chain, so he is not worried about the so-called price war.

He was just a little puzzled. The market concentration of cooking oil is already very high. Do the few giants really want to completely dominate the market?
"Okay, I'll do it right away."

Yang Feng turned and left the office, then contacted the sales company.

After considering it for a moment, Fang Wei called Hu Linwei, Zhang Chu, and others to inquire about the company's edible oil sales, production capacity, and raw material inventory.

With no problems on the production side and plenty of raw materials, he put his worries to rest.

A few days later, Yang Feng reported to him again that the price of rapeseed in China had fluctuated. In a short period of time, the price of rapeseed had increased by 13%.

"As far as I know, the major edible oil giants have not lowered prices, but have been increasing production capacity. At the same time, they are also increasing their purchases of rapeseed, which seems contradictory."

Yang Feng was a competent assistant. He compiled and analyzed a large amount of information in the market, but the conclusions he came to were contradictory.

He has no idea what the major players are planning to do.

Fang Wei pondered for a while and felt that the other party might not be trying to wage a price war, but rather seemed to be stockpiling raw materials and finished cooking oil.

Have you analyzed the data on imported rapeseed oil?

A thought flashed through Fang Wei's mind, and he realized it was about the import process.

In recent years, with the improvement of living standards in China, the consumption of various cooking oils has surged, which is the main reason why giants are trying to divide up this market.

However, the domestic arable land area is limited, and the output of oil crops cannot meet market demand. For example, rapeseed has also begun to be imported from abroad.

The domestic market situation is clear at a glance, but import data is relatively lagging and less sensitive to changes in raw material prices in the international market compared to the giants.

"There have been no major changes in import data for the time being."

Yang Feng has been paying attention to this data. The data may be somewhat outdated, but it can still serve as a reference.

"Assistant Yang, keep an eye on the international market recently, especially the situation of rapeseed."

Fang Wei had basically concluded that the problem likely lay in the imports. A few days later.

Yang Feng obtained the latest import data for rapeseed, showing a significant increase in the landed price.

There's not much to say about that. The giants are well-informed and learned about the rapeseed price increase in advance, so they secretly began stockpiling raw materials and finished products.

In order not to arouse the suspicion of competitors, they deliberately created some false impressions.

"These giants are no ordinary people. They've even used Sun Tzu's Art of War, employing deception and trickery to keep everyone guessing."

Fang Wei couldn't help but sigh, then asked Yang Feng to tell the sales company, Zhang Chu, Hu Linwei, and others about the situation, and to tell them to be careful.

However, the company has already completed its industrial layout, and its several major oilseed crop planting bases ensure the supply of raw materials, so it will not be greatly affected.

A few days passed quickly.

Domestic rapeseed prices have risen again due to the sharp increase in imported rapeseed prices, with the increase this year exceeding 30%.

Other oilseed crops also saw price increases, leading to a significant increase in costs for various edible oil companies.

Liang Wenhui is in a difficult situation. Farmers who have signed contracts with the company are demanding that he raise the purchase price of oil crops. Otherwise, they would rather pay compensation than sell the raw materials to him.

Raising the purchase price means a significant increase in costs. If farmers do not understand that raising prices will lead to defaults, then their access to raw materials will be cut off.

Blocked at both ends!
Liang Wenhui deeply regrets terminating his contract with Yaoling Agriculture, but it's too late for regrets.

Left with no other choice, he had to agree to raise the purchase price, determined to ensure that the farmers fulfilled their contracts no matter what.

He believes that the price of cooking oil should rise accordingly, as the increase in raw material prices will inevitably be passed on to consumers, and he estimates that the price of cooking oil will see another surge.

However, the major players remained unmoved and continued to maintain the original prices.

Maintaining the price unchanged under these circumstances is tantamount to waging a price war in disguise.

Fang Wei dared not be careless and went directly to the group company to oversee the situation, ensuring that Yaoling brand edible oil would remain invincible in this market fluctuation.

The most cost-effective cooking oil on the market right now is Yaoling brand cooking oil, and its price is very stable with almost no fluctuations.

Logically, with raw material prices rising sharply, the price of Yaoling brand cooking oil should also be adjusted. However, since the industry giants are holding back price increases, Yaoling brand cooking oil cannot be moved.

“Secretary, our raw material production costs are very low, and we produce and sell our own products, so market price fluctuations don’t have much of an impact on us. However, according to feedback from the sales company, our recent shipments have increased too rapidly.”

morning.

Fang Wei, Cai Tong, Hu Linwei, Lin Bingkun, Zhang Chu, the head of the sales company, and others held a meeting in the conference room.

Hu Linwei had a fairly detailed understanding of the situation, so he gave a concluding speech.

The surge in sales should have been a good thing, but there's a problem: given the current situation, the supply of rapeseed is insufficient, and it's very likely that all the inventory will be depleted before the end of the year.

The new rapeseed will not be harvested until next spring.

"Secretary, how about we raise the price? At least it should be on par with the cooking oil prices of the major giants."

Cai Tong shook his head, finding it hard to imagine the ever-changing landscape of the edible oil market.

Raising prices now might mean losing a small portion of market share, but that's still better than running out of raw materials later.

"I don't think the major giants can stay still forever. They'll raise prices by October at the latest. The reason they're not raising prices now is mainly to suppress companies like ours and Mr. Liang's, but they can't tolerate rising costs indefinitely."

Yu Hao, the general manager of the sales company, nodded. He also agreed to raise prices, and even to take the lead in raising prices to provoke the major giants.

But he wasn't sure how much it would increase, so he could only wait for everyone to discuss it repeatedly.

"Has everyone finished speaking? Then let me say something. For now, it's best for us to remain unchanged and wait for the giants to raise their prices before we do. In other words, we'll raise our prices by the same amount they raise them, ensuring our prices are always a little lower than theirs."

This time, Fang Wei plans to adopt a follower strategy, neither raising prices proactively nor refusing to raise prices.

The company raises its prices by the same amount as the industry giants, but its prices are still lower than those of the industry giants.

"I agree!"

"I agree."

After careful consideration, Cai Tong and the others felt that Fang Wei's suggestion was very good, so they all expressed their agreement.

That was the decision, and Fang Wei then adjourned the meeting.

He then returned to his office, and Lin Bingkun followed him in.

"President Lin, our rapeseed planting area is still insufficient. What are your thoughts?"

Xinlin County Oil Pressing Plant is the largest oil pressing plant under the company, after all, the plant has undergone several rounds of technological upgrades and expansions.

Currently, rapeseed oil production capacity is sufficient, but raw material supply is insufficient, leaving Fang Wei feeling helpless. Who could have imagined that the edible oil market would undergo such a disruptive change in such a short period? (End of Chapter)