Chapter 144 Chain Reaction

Chapter 144 Chain Reaction

Chapter 144 Chain Reaction (Medium)
If we say that the atmosphere in the country is festive due to the arrival of the Spring Festival.

The rest of the world, however, was plunged into gloom.

Shouguang fishing port in Da Nang, Annan.

This fishing port is located in Da Nang City in central Annam and is also the largest fishing port in the central part of the country.

As the little overlord of Southeast Asia, Annan has developed rapidly in the marine fishing industry, especially after entering the 300st century. It currently catches 400 to million tons of seafood from the ocean every year, ranking second in marine fishing volume in Southeast Asia.

The country with the highest marine fishing volume in Southeast Asia is Java, which is known as the country of a thousand islands, with an annual catch of about 600 million tons of seafood.

Seres, which also has a vast sea area, only has an annual marine catch of about 950 to 1000 million tons.

It can be seen from this that Annan’s per capita marine catch is several times that of Seres.

However, at this time, a fishmeal production company in Shouguang Fishing Port suddenly suspended the announcement of the purchase of cheap marine fish.

Ruan Zhiqiang, a fisherman who had just come ashore and caught more than ten tons of sardines, was preparing to sell these sardines to the fish meal factory. When he arrived at the door of the purchasing point, he saw a large group of fishermen surrounding the purchasing point.

"What's going on?" Ruan Zhiqiang was confused.

He quickly pulled the shoulder of an old acquaintance: "Ah Xin, what's going on?"

The man turned around and found it was Ruan Zhiqiang. He looked a little sad. "It's you! Yonghuan Company just issued an announcement, saying that the purchase of cheap marine fish and offal will be suspended for one month."

"Ah!" Ruan Zhiqiang was shocked. "Didn't we only have three days off during the Spring Festival in previous years? Why is it that we suddenly have a month off this year?"

Ah Xin took the cigarette handed over by Ruan Zhiqiang and said, "I heard that the price of fish meal has dropped a lot recently. Yonghuan Company thinks it is not profitable and plans to reduce production to see the future market trend."

"The price of fish meal has dropped? Then what should I do with these ten tons of sardines?" Ruan Zhiqiang was suddenly overwhelmed.

After lighting up the cigarette and taking a puff, Ah Xin shook his head and said, "Go ask Lao Yezi to see if he can get it for you."

“Where’s the old coconut?”

"inside."

"Thank you." Ruan Zhiqiang hurriedly squeezed into the crowd and came to the second floor of the purchasing point.

I saw Old Coconut drinking tea and chatting with several employees. His face was full of wrinkles and his head was full of sparse hair, just like an old coconut.

"Old Coconut, what's going on now?"

Seeing Ruan Zhiqiang, Old Coconut seemed to know what he was up to and shook his head: "Aqiang, do you have any fish?"

"Yes! Please do me a favor and collect my dozen tons of sardines! I'll treat you to a meal later." Ruan Zhiqiang said as he took out a pack of cigarettes and handed it over.

"If I could help you, I would have done so a long time ago. The problem is that the company's fish meal factory has stopped operating. How can I collect it?" Old Coconut spread his hands with a helpless expression.

Ruan Zhiqiang still did not give up: "Old Coconut, why doesn't your boss make money? Even if the price of fish meal drops, it will only make less money."

Old Coconut took his cigarette and asked helplessly, "Haha, do you know how much a ton of fish meal costs now?"

"How many?"

"1020 dollars."

"Is this price okay? Old Coconut, don't bully me because I don't understand. My cousin worked in your factory. One ton of sardines can make 2 kilograms of fish meal. The sardines you bought at the dock only cost dong ( yuan) per kilogram."

Note: 1 US dollar = 7 Chinese Yuan, 1 Chinese Yuan = 3500 Annan Guilders.

"Aqiang, do you know how to settle the accounts?" Old Coconut asked sarcastically.

Ruan Zhiqiang took the calculator next to him and pressed a few times: "Why not? Seven thousand dong is only 0.285 US dollars, one ton is only 285 US dollars, four tons of sardines can produce one ton of fish meal..."

"Go on! Why don't you say anything? Don't you like talking?" Old Coconut was speechless.

“Uh…” Ruan Zhiqiang also reacted at this time, but when he thought of the more than ten tons of sardines in the cabin, he became thick-skinned again: “Old Coconut, how about a little discount, just give me a gas money.”

Old Coconut shook his head in annoyance: "Haha, so cheap? Are you giving it to me for free? Even our company's fishing boats don't catch cheap sea fish now, let alone buy your fish."

This is the dilemma faced by Annan fishmeal companies.

The cost of ocean fishing in Southeast Asia is much higher than that in the Peruvian fishing grounds. The Peruvian fishing grounds have regular large fishing seasons, so they use large tugboats to fish. The comprehensive cost of fishing one ton of sardines is around US$120 to US$150.

However, there are no large-scale regular fishing seasons in the waters of Southeast Asia. The fuel costs for each trip out to sea are higher than those in the Peruvian fishing grounds, and the catch volume is full of uncertainty.

This results in the cost of marine fish fishing in Southeast Asia generally being more than US$200 per ton, and this is for cheap marine fish with relatively large production volumes.

If you are fishing for high-value seafood with relatively small populations, such as lobsters and groupers, the comprehensive fishing cost per ton may even reach thousands of US dollars.

Especially for small fishing boats like Ruan Zhiqiang, which weigh dozens of tons, their cost is much higher than that of large tugboats.

Originally, Yonghuan Company used sardines to produce fish meal with a 60% initial protein content. The average cost of the fish meal at the factory was about US$800 to US$1000 per ton of sardine fish meal.

The current international market price of Peruvian 67% crude protein sardine meal in East Asia is US$1020 per ton.

The quality of Annan fish meal is not very good, and its price is two to three hundred US dollars cheaper than Peruvian fish meal.

If fish meal is sold at this market price, then Annan will lose money on every ton of fish meal sold.

This business can't be done anymore.

This is also the reason why Yonghuan Company chose to suspend production.

According to the current international fish meal prices, even domestic feed producers in Annan will not use Annan fish meal, but will choose to import Peruvian fish meal.

Neither exports nor domestic sales are going well. If we keep the production line running, the losses will only increase as we produce more.

As for whether the international fishmeal price can recover.

Small fishermen like Ruan Zhiqiang may still hope for a lucky break, but senior executives of fishmeal producers like Yonghuan Company have already given up any hope for this market.

If it is due to climate reasons, causing the production capacity of major fisheries in the world such as the Peruvian fishery to surge, thereby causing the international fish meal price to fall, this can still be endured, as there will always be a year when the market price will recover.

But now Seris has made a breakthrough in technology and can produce millions of tons of Egyptian catfish meal every year.

How do I solve this problem?
Peruvian fish meal has advantages in production capacity, cost and quality. As long as the price of fish meal is not lower than US$700 per ton, they can still make money.

However, the cost of fish meal in Southeast Asia is generally between US$800 and US$1000, and the quality is uneven, making it a mid- to low-end product in the fish meal market.

The current situation is that Peruvian fish meal and Seres fish meal are fighting, and the first to die is the Southeast Asian fish meal producers.

For a time, it was not just the fishermen in Shouguang Fishing Port who were in gloom.

All fishing ports with fishmeal factories along the coast of Annan fell into panic and despair.

More than a dozen fishmeal-related companies had to announce a suspension of production.

The impact on Annan was huge.

You should know that Annan can produce about 30 tons of fish meal every year, and one-third of the sea fish caught are used to produce fish meal, with the direct economic benefits reaching 3 to 4 million US dollars each year.

Last year, thanks to the surge in global fishmeal prices, Annan's fishmeal industry achieved unprecedented profits, with annual revenue reaching US$5.8 million.

Many Annan fishmeal producers have been sharpening their knives, preparing to make a big move this year, continue to expand production capacity and create greater success.

In the end, instead of glory, the end of the industry came.

In the Mekong Delta south of Annam.

Coc Gon Fishing Port in Ba Ria-Vung Tau Province is an important first-class fishing port in Annam and the main area of ​​Annam's basa fish farming industry.

Last year, Annan's pangasius production reached 184 million tons, leading the Asia-Pacific region.

For example, Yonghuan Company is one of the leading companies in Annan's basa fish processing and export. Its business focus is basa fish, and its products are exported to more than 60 countries. Among the basa fish imported by Seris, their company accounts for more than 16%.

However, the largest basa fish breeding and processing company in Annan is the South Vietnam Joint Stock Company, which owns 3750 acres of traditional open-air breeding ponds and can supply 12 tons of basa fish annually.

In the past six or seven years, South Vietnam Company has developed another 9000 acres of "high-tech" aquaculture land, providing 25 tons of Pangasius fish annually.

In addition, the company has 2 pairs of breeding fish, which can produce 140 billion fish fry each year, and a feed factory with an annual production capacity of 80 tons.

Several other pangasius farming and processing companies in Annan are:
Ca Mau Seafood Company specializes in processing and exporting a variety of seafood, including shrimp, crabs and Pangasius fish.

IDI International Development Investment Company and Daqing Seafood Company. The headquarters of these companies are located in various cities in the Mekong Delta.

At this time, inside the headquarters of South Vietnam Company.

Its chairman and CEO Duan Wei, vice chairman and general manager Du Liye, and five or six other company executives all looked solemn and ugly.

Duan Wei looked at the relevant information collected from Lingnan, and he said slowly and calmly: "Our fish meal and fish oil business may not be able to be maintained."

"Chairman, it's actually not that serious." Du Liye's eyes flashed with a hint of cunning.

Duan Wei put down the documents and looked at the company's veteran: "Liye, what do you think?"

Du Liye crossed his fingers and said, "We can definitely imitate the Egyptian catfish feed sample from Hailufeng Company. Anyway, as long as we don't sell the feed, they can't do anything to us."

Duan Wei's eyes flashed: "Indeed, as long as we can get the feed samples, they will have no way to deal with us. Let's do this."

"Chairman, don't be happy too soon." Du Liye reminded with a serious expression.

"Liye, are you worried about the Hailufeng Company and the Seris feed company?" Duan Wei did not have a good impression of his neighbors to the north.

Du Liye reluctantly reminded, "Chairman, don't forget who is the world's largest fishmeal importer right now. If we produce Egyptian catfish meal on a large scale, who will we sell it to?"

“…” Duan Wei reacted instantly.

Several other executives looked at each other.

Everyone present understood this principle as soon as they heard it.

The current global fish meal pattern is basically clear, that is, Serbia and Peru divide the world into two parts, and fish meal from other origins can only survive in their own territories.

Serbia is both a fishmeal producer and the world's largest fishmeal importer.

Peru is only a fishmeal producer, and its production capacity fluctuates seasonally and yearly.

Therefore, in international competition, Peruvian fish meal is not as competitive as Seres fish meal.

This is the terrible reality that the South Vietnam Company has to face. It is easy to steal the ordinary Egyptian catfish feed from Hailufeng Company. After all, there are farms using this feed all over Lingnan. As long as you are willing, you can easily buy samples.

The question is who will the produced Egyptian catfish fish meal be sold to?
After all, the high-yield breeding feed for Egyptian catfish is a patented product of Seris, and the cost of Egyptian catfish fish meal produced elsewhere is not cost-effective.

As long as the price of Egyptian catfish meal sold by South Vietnam is similar to that in Serbia, then Hailufeng and other feed manufacturers in Serbia will immediately know that South Vietnam has stolen Hailufeng's patented feed.

If you want to sell your products to Seris, please pay the patent fee first. If you don’t pay the patent fee, it will be an infringement of Hailufeng’s patent and your products will be directly rejected.

As for selling Egyptian catfish meal to other countries.

Hailufeng Company can also sue South Vietnam Company.

Moreover, as Seris reduces its imports of Peruvian fishmeal, Peruvian fishmeal producers with overcapacity will not easily give up the remaining market.

Duan Wei looked at the shrewd Du Liye and said, "Liye, since you proposed to steal the feed formula of Hailufeng Company, you must have some ideas. Tell me about it!"

"Hai Lu Feng also has an internal feed that can remove the earthy smell of Egyptian catfish in a short time. Don't you realize that our exports of pangasius to Seres have decreased recently?"

Hear Du Liye’s reminder.

Duan Wei flipped through the documents and saw that their company's exports of Basa fish products from Seris had shown a slow downward trend since November last year.

"You mean, the deeply processed products of Egyptian catfish with no smell are impacting our market?"

Du Liye nodded: "I read the report. The price of Egyptian catfish purchased by Hailufeng Company in their hometown is 2.5 yuan per kilogram. Everyone knows this cost."

Wu Bin, the head of the marketing department, frowned and said, "Our high-tech breeding farm can currently achieve a cost of 4.4 yuan per kilogram. The cost should not be much different, right? After all, they purchased ordinary Egyptian catfish and need to breed them again, so the cost will definitely be higher."

However, Hu Xin, the head of the technical department, shook his head: "That's not how the accounts are calculated."

"Did I say anything wrong? Nothing wrong?" Wu Bin was puzzled.

"The crude protein content of our Pangasius fish is only about 13%, and the meat yield is about 46%." Hu Xin continued to explain: "And the Egyptian catfish of Hailufeng Company can reach a crude protein content of about 25% and a meat yield of about 72%."

"Let me put it this way! We can only produce 66 kilograms of fish meal with a crude protein content of 200% from one ton of Pangasius fish, or peel off 460 kilograms of fish meat."

"One ton of Egyptian catfish produced by Hailufeng can produce 373 kilograms of fish meal, or 720 kilograms of fish meat."

This contrast.

Wu Bin understood.

The cost difference is already nearly 1.7 yuan, which obviously cannot make up for the difference between the two types of fish.

Even if Hailufeng Company needs to feed the fish for one more month, the cost is estimated to increase to 3 yuan per kilogram.

The cost difference between the two is 1.6 yuan, which can only narrow the gap slightly.

At this time, Du Liye finally revealed his true intentions: "So we want to steal Hailufeng Company's internal formula for removing fishy smells."

"Wait a minute, even if we stole the formula, we still can't make a big difference?" Wu Bin looked puzzled.

Du Liye smiled and shook his head: "You have overlooked a key point, that is, Hailufeng Company purchased Egyptian catfish and then carried out secondary breeding, which resulted in a profit margin."

Duan Wei suddenly realized: "That's right. If we raise the fish ourselves, the cost can be reduced by about 30%. In this way, we can compete with Hailufeng Company."

However, Hu Xin, the head of the technical department, poured cold water on everyone: "Chairman, President Du, everyone should not have forgotten what happened to the Ryukyu West Sea Company and the South Korea West Far Group, right?"

Everyone felt a chill in their hearts.

Duan Wei bit his thumb nail and said, "We really need to be on guard. If it's a fake formula, we're not the wealthy Xiyuan Group. We can't afford such a serious loss."

"Just experiment slowly."

"But time waits for no one now!"

"Yes."

"Chairman, please lay off the employees! We must sacrifice the team to save the team, otherwise we won't survive until that day."

A group of senior executives expressed their opinions.

Duan Wei made a decision: "Okay, let's lay off some of the fishmeal factory employees first, and cut their salaries by 20% at the same time."

The head of the HR department nodded: "I'll arrange it as soon as possible."

Duan Wei looked at Du Liye again: "Liye, arrange for someone to steal Hailufeng's secret formula, but don't get caught."

Du Liye replied solemnly: "I will definitely get the formula for the company."

There are many other fishmeal producers in Annan and Siam who have similar ideas.

Unfortunately, they were just dreaming.

It ignores the fact that Hailufeng Company is no longer what it used to be.

The security planning and consulting company that He Youwei introduced last time has been in Hailufeng Company for more than a month and is constantly improving various confidentiality regulations and confidentiality plans.

In addition, the number of staff in Hailufeng Company’s security department has expanded from 27 to the current 58, and many professionals have joined the security department.

The team includes 2 security industry managers, 3 anti-hacking network engineers, 3 confidential security planners to prevent theft of secrets, 5 anti-assassination bodyguards with special operations experience, and a strong security team consisting of more than ordinary veterans.

At present, a very comprehensive confidentiality mechanism has been re-established in all confidential areas of the entire Hailufeng Company.

Employees working in confidential areas will receive a special confidentiality allowance, and they are also arranged to receive various confidentiality training, including watching various cases where leakers were discovered. These cases remind them not to try to break the law.

After all, Hailufeng Company has now been included in the national high-tech enterprise, and is one of the ones that receive special attention.

These include artificial breeding technology for eels, artificial cultivation technology for white truffles, high-yield feed technology for Egyptian catfish, and fishy-removing feed technology for Egyptian catfish, which are all key technologies of Hailufeng Company.

If other domestic companies dare to steal and use these technologies without the authorization of Hailufeng, the consequence will be life imprisonment.

Although it is beyond our reach for foreign companies, as long as it is confirmed that they have indeed stolen Hailufeng's technology, this company will definitely not be able to enter the market in Seris.

(End of this chapter)