1994: Vegetable farmers strike back

Chapter 460 Abundant Cash
The increase in broccoli yield per acre is equally impressive, compared to sales revenue.

Chen Jiazhi praised Ao Dehai's skills before inquiring about the selection of broccoli planting areas. He had mentioned building a dedicated broccoli base before this batch of broccoli was harvested.

Ao Dehai snapped out of his daze and said, "Boss, I'm not good at choosing base locations, so I'm afraid you'll have to take care of this."

Chen Jiazhi said, "I do have some alternative areas here, but you need to conduct on-site research. Since you are unfamiliar with the area, you need to make careful judgments."

Ao Dehai became even more uneasy and said, "Boss, why don't you decide on the location and I'll be responsible for building the base?"

Chen Jiazhi smiled and said, "Don't be nervous. It's just a visit. When you go to a new place, you have to understand the local customs and how easy it is to get along with the villagers and village officials."

Reflecting on his thoughts about exports these past few days, Chen Jiazhi added, "We also need to stay away from industrial pollution; the soil and water sources need to be of slightly better quality..."

Ao Dehai finally reluctantly agreed.

The market is a relatively closed environment, and sometimes, staying there for too long can make you feel resistant to contact with the outside world.

Especially someone like Ao Dehai, who is not a talkative person.

But for a vegetable market manager, having more skills is never a bad thing; just growing vegetables is definitely not enough.

Chen Jiazhi provided Ao Dehai with several locations, all around Shanghai, but some were not within Shanghai's administrative area.

The furthest one is in Xiangshui, Yancheng, which Chen Jiazhi is familiar with; it is a well-known broccoli producing area in the future.

However, at this time, broccoli was not yet grown in Xiangshui, and it was a completely unfamiliar area, so Chen Jiazhi was not very willing to choose it.

He grows broccoli mainly for export markets, aiming to establish relevant channels through broccoli and then use this to drive sales of other types of vegetables.

Therefore, in the early stages, we still need to build our own planting base, adhere to high standards and high quality, set benchmarks, and build a reputation. We must set high standards from the outset.

He has been emphasizing the reduction of pesticide and fertilizer use, including for leafy vegetables.

As time went on, he even started to slightly dislike the location of the bustling market.

There are too many factories around here.

It is not conducive to publicity.

Even if you claim your products are organic, people will still question how you can be organic in a big city with so many factories around.
It's just that we can't change it now; we can only refine it based on the existing foundation.

...

That afternoon, Xue Jun arrived in Zengcheng, and not long after he arrived, a torrential downpour began.

Chen Jiazhi offered a cigarette to Xue Jun, who had come to take shelter from the rain, while also keeping his eyes on the rain outside the window.

Xue Jun wiped the rainwater from his hair and said, "It really is true that the yellow peel fruit is swollen and the water level rises with the Dragon Boat Festival. I was just about to come and buy yellow peel fruit when it started pouring rain. This old saying is so accurate."

Chen Jiazhi said, "You think this experience, passed down from generation to generation, is a joke?"

After a while, the water level in the rivers and rice paddies rose.

When Yi Dinggan returned in the rain, he kept telling Chen Jiazhi that it was fortunate that the low-lying vegetable fields had been rotated with rice.

Otherwise, it is very likely to be flooded.

"The water on the mountain is all flowing downhill, the ditches are overflowing, and it's all rushing into the rice paddies."

"Luckily it was rice; if it had been vegetables, they would have been almost all gone."

"Thank goodness!"

Yi Dinggan was filled with fear afterward.

Compared to vegetables, rice will not be greatly affected unless it is flooded for too long or too severely.

Chen Jiazhi was also relieved, and then asked, "What about the newly built base? How much has it been affected?"

"Some areas were flooded, but not many were sown, so the losses are not significant," Yi Dinggan said. "The Dragon Boat Festival rains should stabilize the market."

Chen Jiazhi said, "Vegetable prices haven't gone up yet."

Yi Dinggan pondered for a moment and said, "If there are a few more rains like this, the market will eventually recover!"

As long as they come, Kaopu Fresh can seize the opportunity.

Heli Farm and Jiangxin Vegetable Market are located in two different places. If one place is affected by the disaster, the other will take over. Even if things get really bad, after harvesting the broccoli, Fanrong Vegetable Market is also preparing the land to plant leafy vegetables.

As long as there's a market opportunity, Kaopu Fresh can seize it.

The rain didn't stop completely until evening, disrupting the market's operations for the day, but thankfully there was stock in the cold storage.

But God likes it to rain continuously.

It can take three to five days at a time.

Yi Dinggan and Qi Yongfeng were tormented to the point of despair, calling each other constantly to keep in touch and ensure that vegetables were sent to the market every day.

With Yi Dinggan's assistance, Xue Jun also reached purchase agreements with fruit farmers and fruit vendors, securing a batch of wampee fruit and lychees.

Chen Jiazhi and Li Xiu also went back to the city together, and first went to check out the fruit stalls in the North-South Market.

After more than half a year of development, the stall is now filled with a wide variety of fruits.

The product range is comprehensive, but there are not many categories that can generate stable profits.

Xue Jun's idea is to try everything first, and then select two or three categories to focus on each season.

Chen Jiazhi thought his approach was correct. Kaopu Fresh had capital, and fruit wasn't their main business. He was also willing to give them time to practice, so it was natural to understand the market first before talking about making money.

In addition, the introduction of sugar oranges in Baise has gone smoothly, and the fruit tree research institute has already built a nursery.

Chen Jiazhi acknowledged Xue Jun's work, stayed for a while, and then returned to Kaopu Fresh with Li Xiu.

It's still that two-story building, where both the upstairs and downstairs spaces are utilized to the fullest extent.

When Chen Jiazhi returned, it was afternoon. There weren't many people in the office. He went to Chen Zhengxu's office and found the neatly organized documents on the desk, as if Chen Zhengxu knew he would come to see it.

Chen Jiazhi felt that Chen Zhengxu did everything in a way that made people feel comfortable.

Li Xiu made him a cup of tea, then went to another office, leaving Chen Jiazhi with a quiet environment.

From the report, Chen Jiazhi clearly saw the impact of the Dragon Boat Festival rains, which gave the sluggish market a slight jolt.

Vegetable prices have started to improve.

Interestingly, in addition to the delivery price and the stall price, Chen Zhengxu added a separate column: market price.

The reason, of course, is to reflect the gap.

The market price is the lowest. For example, bok choy is only 5-6 cents per pound, while the stall price can reach 25 yuan per box, and the delivery price can reach 1 yuan per pound.

This is the market value brought about by sustained stability.

However, this price is from two days ago; there's no price for today, so it might not have been tallied yet.

It wasn't until around 6 PM that Li Cai and Chen Zhengxu arrived at the office together.

As soon as he entered, Li Cai asked, "Mr. Chen, are the vegetables at the market all right?"

Chen Jiazhi raised his eyelids and said, "You know perfectly well what I'm asking. I was listening in on your phone call with Yi Dinggan this morning."

Li Cai scratched his head. "Hey, I just wanted to double-check, since vegetable prices have been rising these past few days."

Chen Jiazhi asked, "How much?"

Li Cai said, "Today, the price of bok choy is 35 yuan per box at the stall, and the price of other vegetables has also increased significantly."

Chen Jiazhi nodded slightly. The price of bok choy had increased by 10 yuan per box, which was not bad. "The overall impact on the market is within a controllable range. Maintaining basic supply is not a problem; anything more would be difficult."

Besides, no one can predict the weather, and the Dragon Boat Festival is still about 10 days away.

Chen Zhengxu boiled water, first filling Chen Jiazhi's teacup with tea, and then brewing some for himself and Li Cai.

"I ran into Chang Hao, the sales manager of Congyu, at the market a couple of days ago."

Chen Jiazhi picked up his teacup and asked in surprise, "Did Congyu ship goods to the wholesale market again?"

Li Cai continued, "After President Xu told me, I've been keeping an eye on it for the past two days, but I haven't seen any goods arrive yet. It's probably just a preliminary contact, given the recent financial turmoil in Thailand."

Under Chen Jiazhi's leadership, the core management team of Kaopu Fresh is now paying close attention to the economic dynamics in Southeast Asia.

The Thai baht depreciated to 27 baht to the US dollar in the previous two days, causing extreme panic in the market.

Liu Yunfan has a considerable amount of business with Yu in Thailand; at least one Thai client was brought to him by Kaopu.

Chen Jiazhi pondered for a moment and analyzed, "Chang Hao may be here to inquire about prices, but the domestic wholesale price and the export price are too different. Congyu, which is used to earning high profits from exports, will find it difficult to accept domestic prices. It won't be easy for them to adjust immediately."

“It takes great courage to make a tough decision, and Congyu can’t make that decision.” Chen Zhengxu directly stated his opinion: “Unless he hits a brick wall, Congyu will not turn back.”

Chen Jiazhi asked, "Isn't that a bit too arbitrary?"

Chen Zhengxu smiled and said, "Maybe only you, the boss, would find making this decision easy."

After nightfall, Chen Jiazhi also went to visit the Jiangnan Market, only to be hit by another sudden downpour.

The next few days were the same; one moment the sun was shining brightly, and the next it was pouring rain.

Thanks to the blessings of the heavens, the market management was in a state of blissful exhaustion, but soon after, the market experienced a long-awaited return to normalcy.

Chen Jiazhi walked through the market, which was as bright as day. After two days of sunshine, the ground, which had been a little damp, had dried.

He imagined that in the vegetable gardens on the outskirts of the city, there should also be a batch of leafy vegetables that were rotting and turning yellow, or that had grown various spots.

In the market, this manifests as inconsistent quality of vegetables at different stalls.

Some dishes are good, some are bad, but even ordinary dishes are starting to become popular.

Back at stall number 63, buyers surrounded the truck loaded with vegetables, and people were busy unloading and moving goods.

The scene was very noisy, but no one was shouting for goods. At this time, everyone had to carry them themselves. Shouting was useless.

New faces have joined the sales staff. Li Cai is in the center directing the writing and signing of orders, while the other two work together to count the tricycles loaded with vegetables.

Chen Jiazhi saw someone opening a box to inspect the goods, so he went to take a look. It was a box of bok choy, which was at least of high quality in this market.

The man glanced at Chen Jiazhi, seemingly not recognizing him, then quickly covered the styrofoam box and joined the group of people moving goods.

Chen Jiazhi originally wanted to help, but after looking at the truck that was completely surrounded, he didn't know where to start.

So he had no choice but to sit down at the accounting table at the stall and watch Li write and sign orders. His pen never stopped moving, and he was often urged on by regular customers.

"God of Wealth, please bring the order over early today so I can make the payment to your company."

"It won't be soon, Lao San. I won't be able to get the order to you until the afternoon. I'll make the payment the next day."

Listen to this! Is this how a wholesaler should talk? Others are eager to pay, and you're deliberately delaying it!

The old man added, "If you're not proactive in collecting payments, aren't you afraid your boss will punish you?"

Li Cai pointed to the side and said, "The boss is here today, right here. Feel free to complain if you want."

Old San then noticed Chen Jiazhi standing next to him, "Oh, Mr. Chen is here today too..."

"So you didn't see me just now?" Chen Jiazhi exchanged pleasantries with Lao San for a moment.

He also promised on the spot that he would arrange for someone to deliver the order to him as soon as possible, and only then did Lao San leave satisfied.

Li Cai said, "Mr. Chen, if you say one word, we'll be running ourselves ragged. We have so many clients now, and if we have to deliver orders to each one on the same day, we won't have time to rest during the day."

Chen Jiazhi said, "Then let someone from the office do this, or hire more people. What's wrong with the customer being willing to pay?"

Li Cai's momentum weakened, and he muttered, "There's no need to be in such a hurry. They're all old customers. It won't matter if we get the money a day or two later."

Chen Jiazhi thought he was watching a science fiction movie. He was silent for a moment, then said, "Cherish the present moment, because it might not be so easy to make money like this in the future."

Whether it's delivery or physical stores, Kaopu Fresh makes collecting money very easy these days.

Debt collection?

Yes, but it's when the customer urges the seller to process the order.

For two or three days in a row, Chen Jiazhi appeared at the stall, and the business gradually improved.

Today, Jiangxin Vegetable Market and Heli Farm produce about 120 to 150 tons of vegetables per day.

Tongxingtai sells 30-40 tons per day, with about 50-60 tons sold at its stalls. The rest is delivered, and occasionally one or two containers are exported.

After the overall market trended upward, daily sales also began to climb again.

From earning less than 100,000 yuan a day in April and May, he climbed all the way up to earning 300,000 yuan a day.

But the Dragon Boat Festival rains continued, and just when you thought it was going to be sunny for several days in a row, the rain came.

Vegetable prices fluctuate with the weather, and Kaopu Fresh's daily revenue has once again reached the threshold of 40 yuan.

When the tomatoes, cucumbers, and eggplants from the Lianzhou cooperative base hit the market in early June, this threshold was naturally crossed.

That's why they say the weather is the engine of the market!
Chen Jiazhi reviewed the recent financial statements. During the period from the end of May to the beginning of June, Kaopu Fresh's gross revenue exceeded 10 million yuan.

Looking back further,
The broccoli at the bustling vegetable market also brought in a gross income of 2073 million yuan;
Chicken heart mustard, which accounted for the majority of sales in March and April, also generated more than 5 million yuan in gross revenue;

Jiangxin Vegetable Market and Heli Farm together generated a gross income of approximately 1100 million yuan in the first three months.

In addition, there's the recent 1000 million yuan.

In the three months following the dividend distribution, Kaopu Fresh generated another 45 million yuan in sales.

The expenses are not small. They include micro-sprinkler irrigation upgrades, replacement of machinery and equipment, purchase of vehicles, repair of site facilities, purchase of agricultural supplies, land rent, and employee salaries.

However, no matter how much money is spent, it cannot stop this terrifying money-making ability.

In particular, the broccoli harvest at the prosperous vegetable market involved a total investment of over 100 million yuan in agricultural inputs, labor, and land rent, with sales reaching 2073 million yuan.

Even if the planting costs of the next crop of vegetables are included, such as the cost of organic fertilizer, labor, seeds, and chemical fertilizers, the net profit is still as high as 1800 million yuan.

In comparison, Jiangxin Vegetable Market and Heli Farm generated approximately 11 million yuan in revenue from March to May, but their actual net profit was only 105 million yuan, which is quite ordinary and is considered poor among vegetable markets in the Pearl River Delta.

Chen Jiazhi knew this was the result of 'hard work in internal training'.

Fortunately, it has recently recovered and its profit margin has quickly increased to over 30%.

After comparing the financial details of various vegetable markets, Chen Jiazhi gained a better understanding of the market managers' mentality of taking a gamble.

The difference between gambling and not gambling is like heaven and earth.

One is steady and gradual, accumulating over time, while the other can produce immediate results.

The latter is clearly more tempting.

After reviewing the report, Chen Jiazhi brewed another cup of strong tea, pondering how to allocate the nearly 3000 million yuan in cash in the account.

(End of this chapter)