Back to 2008: I Helped My Dad Become the Richest Man
Chapter 42 This money needs to be kept somewhere else.
County leaders personally visited to apologize and even made Luo Xiyuan a role model for the entire county, causing quite a stir in Qinghe County. Luo's Farm became infamous.
What followed was a barrage of overtures.
Director Zhang of the town's credit union would visit the farm every few days, showing concern and offering to provide the Luo family farm with another 500,000 yuan in low-interest loans to expand production.
Several feed mills and veterinary drug factories in the county also sent sales managers over, bowing and scraping as they tried to cooperate with the Luo family, offering prices much lower than the market price.
Even Zhao Hu, the meat tyrant who used to swagger around the farmers' market, showed up again, carrying two packs of good cigarettes. But this time, he wasn't there to cause trouble; he was there to apply for a job.
"Boss Luo, General Manager Luo," he said to Luo Xinde and Luo Xiyuan, his posture extremely humble, "Last time you said you wanted me to work for you, I... I've thought it through. I'm willing to come! As long as you don't mind, I'll do anything you ask! I promise, from now on I'll work diligently for you, like a slave!"
Looking at Zhao Hu, who was completely different from before, Luo Xinde felt a pang of emotion. He had intended to refuse, but Luo Xiyuan agreed.
"Uncle Zhao, okay. But let me make this clear from the start. Once you're on our farm, you have to abide by our rules. All those old ways of the underworld are off the table. If I find out you're cheating or causing trouble outside using our farm's name, I'll be the first to not let you off the hook." Luo Xiyuan's words were quite blunt.
"No, no! I'll definitely change!" Zhao Hu nodded vigorously.
And so, his former rival became his employee. Luo Xiyuan put Zhao Hu in charge of the newly established transportation and slaughter dispatch department.
As it turned out, her decision was correct. Although Zhao Hu wasn't highly educated, he had spent years in the market, had connections, and knew many people. He had excellent relationships with slaughterhouses and transportation teams. Having him in charge of this area was much more efficient than Luo Xinde handling it himself.
The crisis of the pig farm being shut down unexpectedly turned into a huge development opportunity. Roche Farms not only didn't collapse, but instead rode this wave of opportunity, its reputation soared, and it developed even faster.
The number of farmers involved in cooperative pig farming quickly grew from the initial twenty to fifty. The sounds of pigs grunting could be heard from almost every household in Luojia Village.
The funds in Luo's Farm's account grew like a snowball. The county store earned over 50,000 yuan in net profit each month, the town store over 20,000 yuan, and with the continuous inflow of payments from the Golden Bay Hotel, Li Minxia counted money every night until her hands almost cramped.
"Xinde, we now have over 600,000 yuan in cash in our account." That evening, Li Minxia whispered to her husband, holding the account book. There was a hint of unease in her voice.
More than 600,000! This number made Luo Xinde feel uneasy. He had too much money, and keeping it in the bank always made him feel uneasy, as if it wasn't his own money.
"Yes, the money... is increasing more and more." Luo Xinde took a puff of his cigarette, looking somewhat worried.
He's not worried about not having money now; he's starting to worry about what to do with all that money.
"Dad, Mom, are you worried about money again?" Luo Xiyuan asked as she came out of her room with a glass of milk in her hand.
"That's right," Li Minxia sighed. "I never feel at ease keeping this money in the bank. But if I take it out, I don't know what to do with it. Buy a house? We just moved into our new building. Buy a car? Our little truck is enough for us."
Her current mindset is typical of "content with a little wealth," fearing that any further trouble might ruin her current good life.
"Mom, money in the bank will only lose value over time." Luo Xiyuan sat down. "We need to make the money circulate and generate more money. We need to find a new place to put this money."
"Change the location? Where to?" Luo Xinde asked curiously.
"Dad, our pig farming has reached its peak. Expanding further will exponentially increase management costs and risks. Our pork shop has also established itself in the county. Next, we can't just focus on pig farming and selling meat anymore." Luo Xiyuan's vision broadened. "We need to start venturing into other industries."
"Go into another industry?" Luo Xinde and Li Minxia exchanged a glance, their hearts sinking.
What they feared most was that their daughter would have some "bold ideas" again.
"Xiyuan, our pigs are doing just fine, and the shop is doing just well, why do you want to go into other things?" Li Minxia's anxiety returned. "Those are all unfamiliar businesses, what if we lose money?"
"Mom, as I just said, we can't put all our eggs in one basket. What if pork prices plummet one day? Or what if some major epidemic breaks out that we can't control? Wouldn't our whole family be back to square one?" Luo Xiyuan's question left Li Minxia speechless.
Yes, she only saw the immediate benefits but forgot the potential risks.
"So... what industry do you want to enter?" Luo Xinde asked. He now both trusted and was a little afraid of his daughter.
Instead of answering directly, Luo Xiyuan asked them a question: "Dad, Mom, besides the pigs, what else do you think is valuable on our farm right now?"
"Besides pigs?" Luo Xinde thought for a moment, "Then all that's left is pig manure?"
He laughed after he finished speaking.
"Dad, you're absolutely right!" Luo Xiyuan said earnestly, "It is pig manure!"
"Pig manure?" Luo Xinde and Li Minxia were both stunned.
"Yes!" Luo Xiyuan walked to the blackboard and wrote three words on it: "Organic Fertilizer".
"We currently have hundreds or even thousands of pigs, and the amount of pig manure they produce every day is staggering. Although we have built biogas digesters and the biogas residue can be used as fertilizer, that is the most extensive way of utilizing them, with very low added value."
"My idea is that we invest in building an organic fertilizer processing plant! We'll collect pig manure, and through scientific fermentation and composting, with the addition of trace elements, process it into high-quality, bagged organic commercial fertilizer!"
"Organic fertilizer?" Luo Xinde was unfamiliar with the term.
"Dad, think about it, now that everyone's living standards have improved, they all care about 'green' and 'organic' food. So what's the best fertilizer to grow organic vegetables and fruits? Of course, it's organic fertilizer! Too much chemical fertilizer makes the soil compacted, and the food grown doesn't taste good. Our organic fertilizer is the future trend!"
"There are many people in the county and city now operating green vegetable greenhouses or ecological orchards. They have a huge demand for high-quality organic fertilizer! We produce organic fertilizer and sell it to them, which is another way to make money!"
"And most importantly," Luo Xiyuan's tone became excited, "this forms a perfect closed-loop industrial chain! We raise pigs and produce pig manure. The pig manure is processed into organic fertilizer. The organic fertilizer is sold to farmers, who then grow organic corn and soybean meal."
"We'll then buy back these organic grains and use them as pig feed! This way, our pork will be upgraded from 'safe meat' to 'organic pork'! Our brand value will be elevated to another level! Then, won't our pork be able to sell for a higher price?"
Pig farming → Pig manure → Organic fertilizer → Organic grain → Organic pigs!
A complete, sustainable, and high-value-added ecological agricultural circular industrial chain was clearly presented to Luo Xinde and Li Minxia through Luo Xiyuan's description.
"This...this can make money?" Li Minxia still found it a bit unbelievable.
"Mom, this isn't just about making money, it's about making money for the future!" Luo Xiyuan said confidently. "The country is cracking down on environmental protection more and more strictly, and its support for ecological agriculture is also increasing. What we're doing now not only makes money, but we also get government subsidies! It's a win-win situation!"
Luo Xinde fell silent. He smoked, his mind racing as he processed his daughter's words.
Although he didn't understand any grand principles, he grasped one thing: this could turn pig manure into money and allow them to sell their pork at a higher price. Moreover, it was supported by the government.
Wouldn't it be stupid not to do it?
"Okay!" He stubbed out his cigarette in the ashtray. "Xiyuan, I'll do whatever you say! You tell me how to do it, and we'll do it! It's just building a factory, right? I don't have many other skills, but building houses and factories is my forte!"
His daughter reignited his inherent fighting spirit.
Seeing that her husband had agreed, Li Minxia said nothing more. She was now used to it; all the major decisions in the family ultimately went according to her daughter's plan. And every time, it proved that her daughter was right.
"So... how much will it cost to build this factory?" she asked, returning to the question that concerned her most.
"I've done a preliminary estimate," Luo Xiyuan said. "To build a standardized organic fertilizer fermentation workshop, purchase equipment such as fermentation tanks, crushers, granulators, and packaging machines, plus the cost of applying for a production license, the initial investment would be around 300,000 yuan."
"Three hundred thousand..." Li Minxia clicked her tongue.
"Mom, we have over 600,000 yuan in our account right now. If we invest 300,000 yuan, we'll still have over 300,000 yuan in working capital, which is enough to cover the daily expenses of the farm and the shop. The risks are completely controllable," Luo Xiyuan said.
"Alright then." Li Minxia nodded, which meant she completely agreed.
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