Extraordinary Genius - Chapter 807
Chapter 807 – Grain storage
“Feng Yu, Beidacang had won two advertisingslots in CCTV. Although it is expensive, the timing of the slots is quite good.We are going to market our Beidacang brand. What about our brand cooperation?”Zhang Ruiqiang looked at Feng Yu.
“You started working at Beidacang? Shouldn’tNiu Kun speak to me about this? I told him to discuss it with Zhang Ming.What’s the problem? Zhang Ming did not agree?” Feng Yu asked while trying tohold back his laughter.
Feng Yu had told Zhang Ming to delay theircooperation until Beidacang bought the advertisement slots from CCTV. WithoutFeng Yu’s approval, Zhang Ming will never agree to their collaboration.
Zhang Ming also wanted to wait and see.This Beidacang Group was too ambitious and does not have sufficient funds. Heneeds to see if the Provincial Government will pump in money into the companythis year. If the Provincial Government provided some funds into Beidacang,then it will be worth cooperating. If the Provincial Government only wants toget the funds from the higher-ups and does not care about Beidacang, Zhang Mingwill not work with them.
Tai Hua Food Products company is now famousthroughout China. Although the investments and scale are not as significant asBeidacang, its worth had reached a few hundred million RMB. Its annual salesare more than 1 billion.
Zhang Ming wanted to wait until Beidacang fails,and he will persuade Feng Yu to acquire it or let Tai Hua Food Products getlisted and use the funds to buy out Beidacang.
This way, Tai Hua Food Products will becomeAsia’s most prominent agricultural food products company. Zhang Ming will alsostand to gain from it.
But Feng Yu stopped him. Feng Yu does notwant to do this as this concerns all the farms in Longjiang Province. Thefarmers’ income will be affected if he did this. Feng Yu does not want to takeadvantage of those farmers. The Central and Provincial governments’relationship with Feng Yu will sour, and Tai Hua Food Products company’sdevelopment will be affected.
That’s why even if Zhang Ruiqiang did notbring up this subject, Zhang Ming would also sign the cooperation agreementbefore Lunar New Year.
“I have lots of work in the City Governmentand the Provincial Government. I do not have time to manage Beidacang. Old Niuis still waiting for Zhang Ming’s reply. He had no choice but to ask me forhelp. You don’t tell me that Zhang Ming or your father is the decisionmaker. Iknow you are the one who makes all these decisions.”
Zhang Ruiqiang knew Feng Yu when he wasstarting out. He had seen Feng Yu’s business expanded step by step. All the crucialdecisions in Feng Yu’s companies were decided by him!
“This Zhang Ming…… I have told him that wemust work with our hometown companies. Don’t worry. I will call him later toscold him.” Feng Yu ‘angrily’ replied.
Zhang Ruiqiang rolled his eyes.
“Since we will be cooperating, will youhelp us with our grain products exportation? Russia’s demand had fallen a lotthis year.”
Zhang Ruiqiang was frustrated when he mentionedthis. Russia had been buying grains from China, especially from LongjiangProvince.
But these few years, Russia’s farmingindustry had recovered faster than expected. This was not because of theRussians, but Longjiang farmers.
Because of Feng Yu’s suggestion to exportfarmers, many Longjiang farmers went to Russia to rent their land. The Cityprovided loans to the farmers and helped them to rent Russia farmlands andmachinery.
The farmers’ income had increased severalfolds!
But this created another problem. Russia’sdemand for Longjiang food supplies fell because its own food supply hadincreased.
Russia’s eastern regions had similarclimate as Longjing. When Longjiang farmers went over to Russia, they couldcultivate the wastelands there. This increases Russia’s domestic food supply,and Longjiang’s farm produce could not be sold to them!
Soybeans, corn, wheat, and beetroots. Thesewere the 4 main farms produce. The demand from Russia had fallen more thanhalf. Of course, Longjiang province was not the only affected party. Other foodexportation countries were also affected.
Beidacang was newly established and theirfirst year’s produce was unsold. This was a failure!
Zhang Ruiqiang knew Feng Yu had connectionsin Russia. His Songjiang Motor vehicles could be exported to Russia and evensold to the Russian government and military. It should not be a problem for himto sell Longjiang’s crops to Russia.
Feng Yu had heard about this from hisfather. His father told him that the crop prices had fallen this year. Butluckily the Provincial Government had controlled the crop prices, and they didnot make any losses. Their profits were much lower compared to last year.
Feng Yu had only wanted to help theLongjiang farmers increase their incomes and help Uncle Wen to get some credit.He did not expect his suggestion to affect Longjiang province’s economy.
Feng Yu thought back. No wonder Russiaagreed readily then. Although they had given up some of their lands, they gotthe rental and cheap grains in return. Russia’s grain prices were slightlylower than the Longjiang. Overall, Russia had gained more than Longjiangprovince!
Feng Yu scratched his head. WithKirilenko’s help, it should not be a problem to export Longjiang’s crops toRussia. Even if Russia does not need these crops, the other former Soviet Unioncountries still have high demand. Should I ask Brother Ki for help?
Eh? Wait. Why should we sell off thosecrops? We should start storing up the crops this year!
“We do not need to sell those crops. We canstore the wheat, corn, soybeans, etc. in our grain depot for emergency. If thegrain prices increase next year, our value will increase too.”
There will be a few natural disasters andflooding in two years. If they store part of their harvest these two years, itwill be enough for them to tide over the difficult times in 1998. If not, foodproduction in 1998 will decrease, and Beidacang’s cost will increase a lot. Theywill no longer be competitive.
“Why would the grain prices increasesuddenly? Furthermore, our exportation to Russia is affected, and the grainprices should drop.” Zhang Ruiqiang could not understand what Feng Yu saidthis. Feng Yu should be able to understand this simple logic.
“What if our crops supply drop? OurLongjiang province has 3 rivers. If there is a sudden flood, those farms in thelowlands will be gone.”
“What are you talking about? Do you wishfor there to be natural disasters?!” Zhang Ruiqiang retorted.
Feng Yu was feeling helpless. He could notexplain how he knows that there will be severe flooding in the future. Peoplewill see him as a conman!
“I am saying what if. What’s wrong withpreparing for the worst? We never know when disaster will strike.”
Feng Yu was trying to persuade Zhang Ruiqiang to store their crops, and Zhang Ruiqiang felt something was off……