1994: Vegetable farmers strike back

Chapter 462 Model
As a financial center, Hong Kong is more sensitive to this kind of information.

Xia Youche had just finished selling vegetables that morning and was still tallying up his earnings when he heard the news. He immediately called Chen Jiazhi.

He was once again shocked by Mr. Chen's prediction, this time concerning the international situation.

However, Mr. Chen's judgment was correct again.

Although it was a pity that they were unable to profit from the financial operations, Kaopu Fresh made ample preparations in advance to cope with the crisis.

Xia Youche has noticed a significant improvement in the quality of vegetables over the past two months.

I can't say exactly what aspects have been improved, but the dishes just look more appealing and satisfying.

Correspondingly, Tongxingtai also made some preparations.

"Mr. Chen, what's the next step?"

"We've done everything we could in advance. Now we just need to keep a close eye on market changes and adapt accordingly. Mr. Xia, let me check the news first, and we'll talk again if there's anything else."

Chen Jiazhi has a habit of subscribing to newspapers, but the news probably hasn't come out yet.

He then turned on the television and radio, and finally figured out what had happened.

It is understood that the situation in Thailand had stabilized, but internal strife broke out, with the finance minister and commerce minister both resigning, and the last bit of confidence in the market vanished.

Subsequently, the Bank of Thailand announced that it would abandon the fixed exchange rate system.

Does this mean that international speculative funds have won a huge victory?

He felt that the people behind the operation used not only financial means but also other unconventional methods.

But these are all his conjectures.

Even so, Chen Jiazhi was still amazed; the financial struggle was indeed a bloodbath.

He felt he was losing control this time.

Just a few days ago, the Philippines, Indonesia, Singapore, Malaysia, and Thailand signed a mutual loan agreement; they are all likely to suffer heavy losses this time.

The impact will soon spread to domestic vegetable exports.

Chen Jiazhi lit a cigarette, and the lighter in his hand went out repeatedly.

"Let's wait and see."

"Is there any possibility that house prices might drop? Never mind, I'll give them a call and ask."

Chen Jiazhi called Yi Dinggan, who also had a mobile phone, but the signal was very bad, probably because he was in the market.

After a while of loud "hello, hello" adjustments, the two sides were able to communicate clearly.

Chen Jiazhi mentioned that the sharp drop in the Thai baht exchange rate might cause a decline in housing prices.

Yi Dinggan said, "It's already come to this point, even if housing prices drop, I still have to buy."

Besides, you said that even if prices drop, they'll eventually rise again, and the house is indeed quite nice, with a good location and environment.

Chen Jiazhi smiled and said, "It's good that you have this mindset. I will make a decision as soon as possible. I will also contact the school first, and I will let you know when I need you to come up."

"Okay, thanks for your help, bro."

You're too kind~

"By the way, Master Chen, when will the depreciation of the Thai baht affect the domestic market? Will vegetables soon become harder to sell?"

"..."

Master Chen said he didn't know.

Yi Dinggan pressed further, "Why would the depreciation of the Thai baht affect our vegetable farming?"

"I've said this many times already."

"You know I'm stupid."

In order to make Yi Dinggan pay more attention to the quality control of vegetables, Chen Jiazhi had to explain again.

"It's like how Thai customers used to pay 100 baht for 100 jin of Chinese bok choy, but after the exchange rate dropped, they might have to pay 105 baht, or 110 baht, or even more for another 100 jin of bok choy. With the price going up, naturally fewer people will buy it."

Moreover, this is only a one-sided impact. The depreciation of the exchange rate will also affect Thailand's entire economic system, and the overall decline in social income levels will also lead to a decrease in demand.

In summary, it can be summed up in four words: both volume and price declined.

Yi Dinggan said, "Now I understand. Wow... you know so much now. People really need to read more books. Now you can even analyze the international economic situation, unlike me, who can only grow vegetables."

The July sun was scorching. Yi Dinggan stood in the empty vegetable patch wearing a straw hat, holding a mobile phone in his right hand and wiping away sweat with a towel in his left.

At this moment, my determination to buy a house has become even stronger, not for any other reason than to make it easier for my son to go to school.

the other side,
After passing on the relevant information to Chen Zhengxu, Li Cai, Fang Shaohua, and others, Chen Jiazhi called Fang Xuelin in the technical department.

"Old Fang, have all the bases completed the reduction of pesticide and fertilizer use according to the standards?"

"Boss, it's all done. Qianhua has taken samples from each of the bases and sent them for testing. The pesticide residue content has been reduced significantly, and is much lower than the domestic pesticide residue standards."

"very good."

Chen Jiazhi sat in his chair, looking at his notebook. After a moment of contemplation, he said, "I'll give you two more things."

"First, the Technology Department will set up a pesticide residue testing center and import world-class standard testing equipment for pesticide and antibiotic residues in vegetables from the United States or Japan; at the same time, it will systematically collect and organize pesticide residue standards for major agricultural products from developed Western countries."

"Second, the technical department needs to combine the existing conditions of the base with Western pesticide residue standards to summarize the [Base Planting Guidelines], [Pollution-Free Vegetable Enterprise Standards], and [Green and Organic Cultivation Models for Various Vegetables], and clearly define the vegetable planting models and standards currently involved in the company."

"Ultimately, through these two tasks, we will align with international standards in terms of production hardware and management methods, and establish a complete set of agricultural product quality standards."

Chen Jiazhi gradually slowed down his speech to make it easier for Fang Xuelin to take notes.

After confirming that he had taken notes, Chen Jiazhi asked again, "Are there any problems, Lao Fang? Do you need me to find someone else?"

Strictly speaking, this is beyond your job responsibilities.

Fang Xuelin is the head of the technical department, but his work has always focused on the nursery.

Plant protection is mainly handled by another technician, Qian Hua.

The quality standard system actually takes a more holistic view.

Fang Xuelin quickly scanned the recorded information. "Boss, I'll give it a try first. If it's not good, you can replace me."

"Okay, you only have one chance."

After a pause, Chen Jiazhi continued, "The technical department still needs to recruit more people. Each base needs to have a full-time plant protection officer. We should set higher standards to strengthen our technical capabilities, as quality control will become increasingly important in the future."

"Okay, boss."

It's easy for Kaopu Fresh to export, but if it wants to grow bigger and stronger, it needs to follow an organized and standardized management path.

This is something Chen Jiazhi has been pondering recently.

The recent period of 'intensive internal training' not only aimed to improve management but also to allow grassroots managers to adapt first.

Once there are clear standards, they can be accepted and implemented more quickly.

As China's vegetable exports expand, countries like Japan and South Korea will impose more and more restrictions on domestic vegetables in order to protect their own industries, and even engage in various forms of slander.

In Chen Jiazhi's memory, there have been several such cases.

I remember a vegetable exporter whose Japanese customers went bankrupt just because his vegetables failed a drug inspection.

Meanwhile, this Chinese business owner's company was also blacklisted by the Japanese Ministry of Health, Labour and Welfare. Such incidents are not unique to Japan; they can occur in any country or region around the world.

With its current size and funding, Kaopu Fresh has the ability to nip risks in the bud.

In addition, given the backdrop of the financial crisis, competition will be fierce in both domestic and export markets.

For vegetable markets, there are usually only two options: improve quality and service, or lower vegetable prices.

Reliable Fresh can excel in both directions, and even go a step further, offering both quality service and lower prices.
For several nights in a row, Chen Jiazhi appeared at the Jiangnan Market, maintaining communication with customers and other merchants.

At the same time, we are also paying attention to market changes.

In July, the quality of leafy vegetables varied, and prices differed significantly, but overall prices remained relatively stable.

However, the overall environment is still changing.

On July 11, the Philippines followed in Thailand's footsteps and announced that its currency would float freely.

The Philippine peso depreciated by 11.5% that day, and interest rates surged to 25% overnight; Indonesia announced that the trading band for the Indonesian rupiah would be widened from 8% to 12%...

At night, deliveryman Wang Liang jogged to the stall, "Boss, someone from Yu brought a truckload of vegetables to the market."

Chen Jiazhi put the vegetables he had randomly inspected back into the styrofoam box, stood up, and said, "Take me to see them."

Li Cai followed, saying, "I'll go too. Know yourself and know your enemy, and you will never be defeated."

Chen Jiazhi raised his eyebrows slightly and said, "If you're just going to watch the show, then watch the show. Don't make it sound so literary."

It was nearly dawn, but the heat had not dissipated. Chen Jiazhi, wearing shorts and a short-sleeved shirt, followed Wang Liang through two alleys before stopping.

Wang Liang pointed in a direction and said, "Boss, Mr. Cai, that Dongfeng truck up ahead is from Yu, and only one person came."

Li Cai asked curiously, "How do you know Cong Yu?"

Wang Liang said, "I just asked about the price, and he personally said that the vegetables he was selling were from the Yucai Market."

Li Cai glanced at the stall again and nodded slightly. "It should be. This stall seems to have cooperated with Cong Yu before, but this person doesn't seem very professional."

Chen Jiazhi looked him over and indeed, at first glance, the person from Yulai who came to sell vegetables didn't look like someone who came to sell vegetables.

Who sells vegetables while wearing dress pants and leather shoes?

The market was full of people wearing shorts and slippers, so Chen Jiazhi was considered decent for wearing a T-shirt.

Half of the men were shirtless.

But this guy's outfit was quite unique, with dress pants, a shirt, and leather shoes, which made Chen Jiazhi feel awkward.

Upon approaching, Chen Jiazhi saw the vegetables brought from Yu, mainly bok choy hearts.

In terms of quality, it is flawless and is considered a top-quality product in the market.

Chen Jiazhi, holding a flashlight and looking at the vegetables, casually asked the price: "How much are the bok choy?"

The man said, "A piece of bok choy costs 45 yuan and weighs 30 jin (15 catties) net."

Chen Jiazhi straightened up, raised an eyebrow, and said, "Not cheap~"

The man added, "Young man, we're from Yu, the main market. We used to supply Hong Kong and export our vegetables. The quality is good, and the price isn't expensive."

Chen Jiazhi neither confirmed nor denied the question, nor was he interested in asking any further.

The vegetable seller did not try to stop him.

After walking a distance, Li Cai felt a bit disdainful. "How could he possibly outsell us by selling vegetables like that?"

Chen Jiazhi said, "As long as the price is cheap enough, selling it won't be a problem."

Li Cai pondered for a moment and said, "They probably chose to cooperate with the stalls to sell on consignment, but they also sent people over. I guess they're not willing to sell it too cheaply."

Chen Jiazhi nodded and said, "Anyone would be unwilling, but being unwilling in one's heart is useless."

Tonight, the price of fresh bok choy at the stall is 50 yuan per piece, which is 5 yuan more expensive than Congyu's, placing it in the top tier of the entire market.

But business continued as usual.

Chen Jiazhi stayed at the stall for a few days, and many of his regular customers developed the habit of not checking the goods before buying them at Kaopu Fresh. They would either place an order directly or just take the goods away.

This made Chen Jiazhi feel somewhat uneasy.

During his time at the stall, he actually opened the boxes and inspected the goods quite a few times, and the quality was very consistent.

The trust built on this long-term stable supply cannot be compensated by a price difference of 5 yuan per piece of jade.

Chen Jiazhi then asked Wang Liang, "How many new faces are there selling bok choy at the market today?"

Wang Liang thought for a moment and said, "So far we've only seen Cong Yu, but the overall volume of goods arriving in the market today should have increased considerably."

Chen Jiazhi nodded and said, "Okay, that's settled then. You can go ahead and do your thing."

Should we continue to observe?

"There's no need to be so deliberate. Let's focus on improving our own quality and service. Since people have already come, we'll definitely see even more vegetables coming to the market in the future."

As Chen Jiazhi predicted, the volume of leafy vegetables arriving at the Jiangnan market is gradually increasing, leading to increasingly fierce competition.

Meanwhile, the Southeast Asian financial crisis intensified and its impact expanded daily.

Southeast Asia, with its large Chinese population, has always been an important market for leafy vegetables exported from the Pearl River Delta.

As a result, the export of leafy vegetables from the Pearl River Delta was severely hampered, and many vegetable markets were forced to turn to the domestic market, causing vegetable prices to gradually fall to a low point.

Even reliable fresh food companies can hardly remain unaffected and adjust prices according to market conditions.

菜心从高点的50元/件，先是降到45元/件，随后40、35、25~
Although it was worrying, it was all part of Chen Jiazhi's planned script, and he did not hesitate to lower the price.

That morning, Xia Youche called.

"Mr. Chen, I saw yesterday's order. Has the price been adjusted again?"

"Yes, it's been reduced by another 5 yuan."

Xia Youche hesitated for a moment and said, "Actually, the price we give to Tongxingtai doesn't need to be low. I can still hold on. We can't always let the market suffer losses."

Chen Jiazhi smiled and said, "President Xia, this is a bit unlike you."

"One becomes like the company one keeps." Xia Youche pondered, "Boss Chen treats me with sincerity, so I might also abandon him if he encounters difficulties."

The orders from high-quality clients that Tongxingtai signed at the beginning of the year were quite profitable, so we won't adjust the prices this time. I'll bring it up if needed.

“Okay, Mr. Xia, I appreciate your help this time.” Chen Jiazhi readily agreed.

In fact, after optimization, Heli Farm still has a profit margin even if the domestic price of Chinese cabbage drops to about 8 cents per kilogram.

Domestic competition has also affected Hong Kong, with vegetable prices falling as well.

In the competitive mass market, if Heli Farm does not lower the settlement price for Tongxingtai, Tongxingtai will not make a profit on this part of the vegetables, or even suffer a loss.

Therefore, Heli Farm voluntarily lowered its price, treating all farmers equally.

Xia Youche stated that they signed a batch of high-quality clients at the beginning of the year, and the profits from this part were decent, allowing them to shoulder more responsibility.

This back-and-forth can be considered a model of how the base and wholesalers can overcome difficulties together.

Chen Jiazhi was somewhat surprised and delighted that Xia Youche could achieve this level of success; all the effort he had put in was worthwhile.

(End of this chapter)