Starting with vegetable greenhouses in 1988

Chapter 123 Making empty promises and demanding subsidies

In fact, Li Zhe was also vaguely aware of this problem, so last time there was no uniform price increase, only the price of cucumbers in some channels increased, while the prices of other vegetables remained unchanged.

But I felt like I was still separated from the truth, and I didn't think it through very well, so I sincerely asked for your guidance: "Brother Jin, could you please explain in detail?"

"Brother Li, your planting scale this year is still small, and it's a self-production and self-sales model. There are no middlemen, and you sell directly to customers."

Therefore, the more expensive the vegetables are, the more money you make, which is entirely in your best interest. In the short term, there is no problem, and many people would choose to do so.

But you're different from ordinary people. You're the leader of winter-warm vegetable greenhouses, and you can't just be a grower in the future. Next year you'll be involved in the intermediate distribution of vegetables.

Jin Baiwan paused for a moment, then continued, "Just like we were saying, we cooperate with farmers, teach them planting techniques and experience, and provide them with cheaper building materials and financing. In return, they will sell the vegetables produced in their greenhouses to you at a pre-agreed price, and you will be responsible for sales."

Next year, your role will change; you won't just be a grower, but also a middleman. To be precise, you'll become a vegetable buyer like me.

I've worked in the vegetable purchasing industry for many years. I can't speak for other industries, but I do have some experience in this one.

Vegetable vendors don't always make money; sometimes they lose money. For example, if the agreed-upon purchase price is higher than the market price, they might lose money on every truckload they buy.

Jin Baiwan's throat was a little dry from talking, so he took a sip of tea to moisten it and continued, "This year, you're the only one growing vegetables in greenhouses. Even at 8 yuan a pound, cucumbers are selling like hotcakes. In a few days, the price might even rise to 9 or 10 yuan, which is an extremely high premium. It's unlikely that this will happen again, and this will become news, letting many people know that cucumbers in Beijing are selling for 10 yuan a pound."

A problem arises: next year, vegetable greenhouse growers, knowing this, will raise their expectations for purchase prices. Some growers will think: "Last year, cucumbers sold for 10 yuan; this year I'll sell them for 9 yuan. That's not high, is it? If you want to buy my cucumbers, won't you have to offer a higher price?" This puts pressure on buyers. In short, they will use this year's cucumber selling price to assess next year's cucumber selling price, causing farmers' expectations to become disconnected from the market.

Jin Baiwan then looked at Old Li beside him: "Uncle Li, what do you think?"

Old Li pondered for a moment and nodded: "What you said makes sense. However, as the weather gets colder, the cost of planting will indeed increase. For example, on the two days when it snowed, we burned coal for heating in the greenhouse. The price increase is also reasonable. I always feel a little uneasy if we don't make money."

Jin Baiwan laughed and said, "Uncle Li is right. It is indeed unpleasant not to make money when there is none to be made. But you can do the math carefully. The profit margin for cucumbers is already very high. Increasing the planting costs a bit will not have a significant impact."

"Next month you might raise the price to 9 yuan, and before the Lunar New Year it could reach 10 yuan. But this price is artificially high; once the Spring Festival is over, vegetable prices will definitely fall. Compared to next year's profits, this amount is nothing."

Jin Baiwan then looked at Li Zhe beside him: "Brother, what do you think?"

“Brother Jin is right.” Li Zhe nodded. Jin Baiwan was considering things from a procurement perspective, while Li Zhe had previously thought more about sales channels.

His vegetables are currently mainly supplied to restaurants catering to foreigners and state-owned enterprises, all of which are leading players in the catering industry. He values ​​these sales channels highly. He is worried that frequent price increases will affect his supply relationships with these restaurants.

If he were selling vegetables at a farmers' market, he wouldn't have so many concerns. The customers would be individual shoppers, and if they thought the price was too high, they wouldn't have to buy.

Even if he doesn't raise prices, people won't remember him or appreciate his good points. Next time, they'll just buy from whoever offers the best deal.

Restaurants are a stable supply channel; business isn't a one-day affair, it's about long-term sustainability. Li Zhe even considered signing vegetable supply agreements with these restaurants next year, agreeing on the prices for the vegetables.

As long as the price of the supplied vegetables is higher than the purchase price and can cover costs and losses, Li Zhe was already guaranteed to make a profit when he signed the two contracts.

He understood Jin Baiwan's meaning. This was the first year of planting off-season vegetables, and the prices were also the highest this year. If vegetable prices surged too high this year, growers would have even higher expectations for purchase prices next year.

So next year, when he signs vegetable purchase agreements with farmers, price will be a major issue. If you offer too low a price, they won't be happy, feeling you're making too much profit. But in reality, this year's vegetable prices are heavily inflated, and they will definitely fall next year. As for how much they will fall, only the market can determine that.

Li Zhe suddenly felt a bit tired. There were too many things to consider, and for a moment he even thought: maybe I shouldn't go all out, and just plant a dozen acres of vegetable greenhouses next year and live a peaceful and stable life.

But this idea quickly became self-defeating. Humans are part of society, and within this larger environment, if you don't want to work hard, your surroundings will force you to. Very few people can truly afford to give up. If you can't give up, then you can only continue to work hard. And those who want to give up but can't will only suffer more.

At noon, Li Zhe invited Jin Baiwan to stay for lunch, and the two chatted for a long time.

Jin Baiwan has been a vegetable buyer for many years and is very experienced. He can get along well with both farmers and vegetable wholesalers. If Li Zhe wants to expand his planting scale next year, he will definitely ask Jin Baiwan to cooperate with him, but he hasn't figured out the specific cooperation method yet.

Li Zhe isn't one to hog all the profits, nor does he want to overwork himself. Next year, if he wants to expand his off-season vegetable business, he'll seek partnerships with capable or influential people; he definitely can't manage it alone.

The Beijing-Tianjin-Hebei market is so big. If we find some like-minded people to start a business together, we can make money together and ensure the business is long-term and stable.

……

in the afternoon.

After lunch, Party Secretary Wang went to wait at the Li family's field. The sun was shining brightly today, and the group chatted under the sun by the roadside.

Li Zhe asked, "Uncle Wang, where is Mayor Chen from? Is there anything I should be careful about when I speak later?"

“He’s from our town, very easy to talk to, we’ve known each other for a long time. Aren’t you usually quite eloquent? Just say what you’d normally say.”

"Okay, I'm relieved to hear that. Why don't you go warm up in the greenhouse for a while? I'll call you when the truck arrives."

Party Secretary Wang wrapped his cotton coat tighter around himself: "Don't worry, I reckon he'll be here soon. Mayor Chen is a capable man, he won't dawdle."

Jin Baiwan interjected, "I've also heard of this Mayor Chen. He's supposedly a veteran Party member who dares to bang on the table during district meetings."

As everyone chatted, a green Jiefang truck drove up from a distance.

The truck came to a stop, and a middle-aged man got out of the passenger seat. He was of medium build, with neat short hair that was slightly graying. He was wearing a heavy military overcoat, the color of which was a little worn, but it was clean and tidy.

Party Secretary Wang greeted him warmly: "Mayor Chen, welcome, welcome! It's so cold, yet you still made a special trip to our Daying Village for inspection. You must be very tired!"

“Old Wang, I didn’t come to see you this time.” He only said that before his eyes were drawn to the dozen or so gleaming white greenhouses: “Good heavens, it’s only been a short time since I last came, and this place has changed so much.” He pointed to the north: “I remember this area should all be village collective land, right? How come greenhouses have been built here too?” Party Secretary Wang said: “That’s right, your memory is really good. This area is indeed our village collective land. It was rented to Li Zhe a while ago. These are the winter-warm vegetable greenhouses he built.”

"Which one of you is Li Zhe? Introduce him to me. Even Director Liu from the credit union praised his greenhouse vegetables!"

Li Zhe stepped forward and warmly shook hands with the other party: "Mayor Chen, welcome to the greenhouse for inspection, and thank you for your attention to us vegetable growers!"

Mayor Chen asked with a smile, "Oh, you're quite young. Are you married yet?"

"Not yet. Right now, I just want to focus on my career and grow greenhouse vegetables well."

“It’s good that you’re determined, but you can’t delay your marriage. As the old saying goes, of the three unfilial acts, the greatest is to have no offspring. Young man, you need to hurry up.” Mayor Chen joked, waving his hand: “Come on, show me your greenhouse vegetables!”

Li Zhe first led him into greenhouse number one, and Mayor Chen was immediately astonished. He had farmed in his youth and had frequently gone to the countryside in recent years, so he was no stranger to farm work. It was precisely because of his understanding that he was so surprised.

First, I was surprised that the temperature inside the greenhouse could be maintained at around 20 degrees Celsius. Second, it wasn't just a matter of temperature; there's a significant difference between this enclosed greenhouse and open-field cultivation. I exclaimed, "It's truly remarkable that cucumbers can be grown in the dead of winter!"

Afterwards, he visited greenhouses No. 2, No. 3, and No. 4. Seeing that Li Zhe could not only grow cucumbers and broccoli, but also some other common vegetables, he couldn't help but feel more admiration for this young man.

"Comrade Li Zhe, how much did it cost you to build this greenhouse?"

"The whole thing cost nearly 6000 yuan."

"I heard that your greenhouse vegetables sell for six or seven yuan a pound in Beijing, and you must make a profit of twenty or thirty thousand yuan a quarter, right?"

"almost."

"Good heavens, by next year you'll be the first household in our village to have 100,000 yuan. No wonder you're not in a hurry to get married; next year, matchmakers from all around will be knocking down your door!"

Everyone laughed when they heard this.

Mayor Chen continued, "I also heard from Director Liu that you want to lead the villagers to grow vegetables in greenhouses next year. Do you have any specific plans?"

This is a crucial question. If Li Zhe can't answer it or isn't prepared, then it's just empty talk, which will inevitably give people the impression that he's inexperienced and unreliable.

After a moment's thought, Li Zhe replied, "Mayor Chen, I have a development plan of 'One Belt, One Town,' but I still lack experience and many details need to be improved. I would like to take this opportunity to ask you for your guidance and advice."

Afterwards, Li Zhe refined the plan he had discussed with Jin Baiwan, expressing it in a way that was more in line with contemporary values.

After listening to the plan, Mayor Chen seemed surprised and subconsciously asked, "Are you sure that greenhouse vegetable cultivation can be promoted throughout the town?"

Li Zhe said seriously, "If the government could provide more policy support, my chances would be even better."

What kind of policy support do you want?

"Mayor Chen, to be honest, I didn't start growing vegetables in greenhouses to make money. The Beijing-Tianjin-Hebei region always faces vegetable shortages in winter, and my initial purpose in growing vegetables in greenhouses was to respond to the Ministry of Agriculture's call and contribute to the winter vegetable supply..."

Li Zhe made a series of high-sounding and polite remarks, then changed the subject: "For us ordinary people, the cost of building a greenhouse is indeed a bit high. Could we apply for some subsidies, such as a subsidy of 300 to 500 yuan for building a greenhouse? In addition, could we offer some discounts on the purchase of greenhouse film, building materials, fertilizers, pesticides, seeds and other agricultural supplies?"
Also, extreme weather can cause significant damage to greenhouses; it would be best to provide some repair subsidies.

Li Zhe always remembered the torrential rain that would fall next summer. He couldn't change the rain, so he could only try to minimize the damage.

Mayor Chen joked, "Good heavens, I've only just arrived in your village, and I haven't even had a sip of tea yet, and you've already assigned me such a big task?"

Li Zhe quickly explained, "Mayor Chen, please forgive my poor hospitality. I'm not good with words and have a short temper. I just wanted to develop vegetable greenhouses into a distinctive industry for our town, and work with the villagers so that every household can live a good life by growing vegetables in greenhouses. I hope to build our town into a model village like Huaxi Village and Daqiuzhuang within a few years."

Mayor Chen carefully examined the young man before him, the enthusiasm in his eyes seeming genuine. Now over fifty, Mayor Chen had long since lost interest in career advancement; his greatest wish was to do a few practical things for his fellow villagers before retiring. He didn't ask for their praise, just that they wouldn't curse him in the future.

Perhaps intimidated by Li Zhe, Mayor Chen left without even visiting the village committee after touring the greenhouses.

Before leaving, he called Li Zhe over and stared at him for a while: "Li Zhe, your idea is good. I will report it to the higher-ups. Compile a document on vegetable greenhouses, specifying the support and subsidies you want to receive, and hand it to me later."

"Mayor Chen, wait for me a moment." Li Zhe said and ran into greenhouse number three. When he came out again, he was carrying a briefcase and took out a document from it. "Mayor Chen, I heard yesterday that you were coming, so I made preparations."

Mayor Chen paused for a moment, took the documents, and waved his hand, saying, "You can go back now."

Watching Mayor Chen leave in his truck, Party Secretary Wang laughed and said, "Good lad, you really dare to ask for it!"

Li Zhe rubbed his hands and said, "Mayor Chen has come all this way, we can't miss this opportunity. Uncle Wang, I'm doing this for the benefit of the whole village, you'll have to help me out."

Party Secretary Wang chuckled: "Hey, you're really good at flattering me. What help can an old man like me possibly be?"

Li Zhe knew perfectly well that no matter how eloquently he spoke, the higher-ups would have reservations and would inevitably need to verify the situation with Secretary Wang. If this old secretary could put in a good word for him, it would be far better than going it alone.

“Uncle Wang, it’s not appropriate for me to keep going to Mayor Chen’s place. I’ll have to trouble you to take care of this matter.”

Party Secretary Wang nodded solemnly. His greatest wish over the years had been to lead his fellow villagers out of poverty and into prosperity. He had personally witnessed Li Zhe's vegetable greenhouses being built from scratch and had genuinely made money from them. In fact, he had already been planning to mobilize more villagers to follow Li Zhe's lead next year.

Unexpectedly, this young man was even more daring and enterprising than him, actually taking the initiative to seek government support. Secretary Wang admired him from the bottom of his heart and was willing to give his full support. "Alright, I'll go to the town tomorrow and sound out Mayor Chen's opinion."

Li Zhe's eyes lit up, and he grinned, "With your support, I feel much more confident."

(End of this chapter)