Chapter 345 Food Industry Chain Base Plan

Chapter 345 Food Industry Chain Base Plan

Chapter 345 Food Industry Chain Base Plan

"This is a chicken and egg problem." David seemed to know that he was asking for trouble, so he said, "As for the order, the US side still needs to see your plan before trying to give it to you. If the cost is too high, I'm afraid it won't work."

Yang Wendong said, "David, think about it this way. If I can achieve the same cost as Swire or even lower, then why would I want to cooperate with you? Can't I just make my own cola brand?
If you want to reduce costs, we must work together. Only if there is enough demand can I reduce costs. No OEM will build a large-scale factory first, right? Unless you invest more than half of Pepsi, then I will consider it. "

David nodded and said, "Okay, Eric, you are right."

Yang Wendong added: "It is not realistic to expect to reach Taikoo's level in a short time. What I can provide is that the cost can be lower than that of your factory in Japan.

As subsequent orders gradually increase, I will invest in a sugar factory and then gradually enter related industries to reduce costs. In terms of planning, I will also conduct detailed investigations and demonstrations. "

"Okay, I'll report these things to the US headquarters tonight." David said, "Wait for the US's opinion, and then we'll discuss it tomorrow, how about that?"

"Okay." Yang Wendong agreed.

The next day, David and his team came to Changxing Building again and said, “Eric, the PepsiCo board of directors wants to reach a small-scale cooperation with you first, so that your investment is not too much;
After the two sides have cooperated for a period of time, if everything goes well and your side can gradually reduce costs to even lower than that of the Japanese factory, then orders from Southeast Asia will gradually be transferred here, and then we can discuss follow-up cooperation based on demand, how about that? "

"How big is this small-scale cooperation?" Yang Wendong asked.

David said: "150 million bottles of Coke a month. I also know that your company has a canning production line, and the production capacity should be too large. We can just cooperate like this."

"150 million bottles of Coke a month?" Yang Wendong glanced at Zhou Haoran, then said, "It should be possible, but the details need to be discussed later."

The beverage production lines of this era cannot compare to those in the past. In the past, a small production line could produce hundreds of thousands of bottles a day, but today's mechanical technology is far inferior.

A bottle of Coke costs about 2 to 3 cents in Hong Kong, and cans are a little more expensive due to cost reasons, but this cooperation is indeed not that big.

David said, "Okay, we will airlift the raw materials for Coke from the United States. Once you are able to produce it and the cost is lower than that in Japan, we can consider expanding our cooperation in the future."

"Okay." Yang Wendong nodded.

It is indeed impossible for such a large-scale cooperation to reach a high intensity quickly. Both parties are not confident in each other. The only way is to gradually increase the intensity of cooperation. When both parties confirm that this cooperation is beneficial to them, they can continue to increase the intensity.

As for what was discussed yesterday, that was nothing more than the ambition of the company's top management. They reached an agreement on some principled issues and then cooperated later. No matter what problems or disputes there were, they only needed their subordinates to discuss the details.

After the Pepsi people left, Yang Wendong said to Zhou Haoran: "Prepare to build a refined sugar processing factory, first import raw sugar for refining to ensure that there will be no problems with supply;
Although the scale of cooperation is not large now, there will be no problems and it should develop normally in the future. Besides, we also need a lot of sugar ourselves. "

Zhou Haoran agreed and said, "Okay, the demand for sugar is still very high nowadays. Even if we don't have a beverage factory, we won't lose money by opening a sugar factory. The investment cost of this simple sugar production is not high. There are many workshops in Hong Kong."

"We don't want a workshop, we need to do it better." Yang Wendong said with a smile: "The target customization is higher, so we will target Taikoo."

"Okay, in fact, even a regular sugar factory can control its scale." Zhou Haoran said: "I will first acquire a large piece of land and build a small one. When the demand increases in the future, I will expand the scale."

"Sure." Yang Wendong nodded, and then asked, "By the way, does China Resources have raw sugar for export?"

Zhou Haoran said: "In the 50s, the mainland used to supply some sugar to Hong Kong, but in recent years, it has been too bad because of the severe drought. It is said that the mainland has to import sugar from overseas, and..."

"And what?" Yang Wendong asked.

Zhou Haoran replied: "Sugar is not just for food, it also has military and military uses. It is a very good material for military rations and can even be used to make gunpowder, so the global market is strictly controlled.

I heard that the mainland wanted to import it before, but Western countries refused, or negotiated some conditions. Finally, as a last resort, the mainland could only import a kind of dried fruit called Iraqi candied dates, which can replenish the body's sugar."

"Is that so? Forget it, let's just import it from Southeast Asia." Yang Wendong nodded.

The uses of white sugar are indeed outrageous. It is said that it can be used as a medical supply in case of emergency.
The cooperation with PepsiCo can be regarded as a verbal agreement. If the cola produced by our trial production has no problems in quality and cost control, we will consider further cooperation. This is also the normal cooperation process.

May 5, Shatin, Hong Kong:
Yang Wendong brought Su Yiyi and Bai Yushan to the beach:

After Yang Wendong told them about the cooperation with Pepsi, Bai Yushan asked, "Brother Dong, are you still planning to work in the cola industry in the future?"

"It's possible. It's very difficult. I can only say that there is a chance." Yang Wendong said with a smile.

No one can challenge the dominant position of Coca-Cola and Pepsi in this market. It seems that the only chance for them is to first rely on Pepsi to obtain the beverage industry chain, and then wait for the mainland to reform and open up before entering the market.

Bai Yushan nodded and said, "It's quite difficult. I think making herbal tea is good."

"Well, wait a few days until the herbal tea is on the market and see the feedback from the Hong Kong market." Yang Wendong smiled and said, "If the effect is good, we will prepare to export it to Southeast Asia. There is still a demand for herbal tea in Southeast Asia."

Drinking tea is not a hobby unique to the Chinese; many ethnic groups and countries in Asia share this hobby.

"Ah."

After they walked for a while, they were met by Liu Huayu from Carrefour, Zheng Zhijie from Changxing Real Estate, and seven or eight other people following them.

"Mr. Yang, Mrs. Yang." Zheng Zhijie stepped forward and said, "Our chicken farm is just ahead."

"Let's go and take a look at our ranch." Yang Wendong said with a smile.

The Chinese people's instinct is to love the land, which may be the inheritance of thousands of years of culture.

When I had money in the early years, I could actually go to the United States to buy land, but due to inconvenient transportation, I gave up the idea.

After everyone entered a large courtyard, they immediately saw a large number of bamboo fences. Zheng Zhijie said, "Mr. Lin, you should introduce them."

"Ok."

Lin Yuehua, the head of the ranch, said: "Mr. Yang, our ranch has a total area of ​​50 square feet in the first phase. We plan to raise 10 chickens. It is divided into 25 independent spaces, mainly for hygiene reasons..."

"10 is not a lot!" Yang Wendong thought for a moment and said. Carrefour has started supplying roast chickens, and the daily sales are several thousand. It is really because it is too cheap, and it is much more convenient than normal people buying a chicken and taking it home to handle it themselves.

However, at present, all the chickens are purchased from China Resources. After all, Carrefour is more important. We cannot wait until the ranch here is built and the chickens grow up before doing this.

Liu Huayu also said: "Yes, if we have our own chickens, I would like to lower the price at the supermarket terminal. When that time comes, the problem will be supply."

At this time, Lin Yuehua said with a smile: "Mr. Liu, Mr. Yang, don't worry too much. This ranch is not a factory. As long as it is built and the corresponding feed comes in, the breeding speed will still be very fast. Especially since Carrefour does not need finished chickens, the cycle is much shorter than that of chickens in the vegetable market."

"How long is the cycle?" Yang Wendong asked.

Lin Yuehua said: "It depends on the breed of chicken. The white chickens we have imported from overseas can be ready for sale in about three months if we follow the market model. But according to Carrefour's demand for roast chicken, one and a half months is enough."

"One and a half months? That's not bad." Yang Wendong nodded.

In the past, fast-growing chickens, with the help of technology, are said to be ready for sale in 20 days, which is even shorter than the hatching time of eggs. The broiler chickens in normal vegetable markets are only 40 days old. However, ordinary people cannot avoid it because they are the same breed everywhere, unless you raise them yourself.
Lin Yuehua added: "Now we are basically ready. We just need to wait for the staff to become more familiar with it. The breeding capacity will be doubled in a very short time."

"Okay." Yang Wendong nodded and said, "I won't ask about such professional matters, but one thing is that we must ensure good hygiene to prevent the emergence of diseases such as avian flu."

In the factory, Yang Wendong is most worried about work-related injuries, but work-related injuries are not contagious, and one case of harm is just one case. However, once an epidemic occurs in the breeding industry, then according to policy, all chickens must be slaughtered.

Not to mention the economic losses, if it were to be transmitted to humans, it would be even more serious. Although the probability of this happening is very, very low, no one dares to gamble. Many large-scale plagues in human history were spread by animals.

Lin Yuehua said: "Don't worry, Mr. Yang, we use the experience of large poultry farms in Europe and the United States. We also have special people to clean up every day. Labor in Hong Kong is not expensive, and the cost control is much better than in Europe and the United States."

"Okay, then you can contact Carrefour directly and decide the supply demand internally." Yang Wendong nodded and said, "If we need to expand the scale and there is not enough land, then we can contact Changxing Real Estate directly."

The core purpose of engaging in breeding industry in Hong Kong is still to have reasonable reasons, that is, to buy land from the Hong Kong government, even if it is agricultural land. Even if it is necessary to "make up the difference" in the future, it does not matter. The land is yours, so you can't run away. You can make a lot of money even if you don't develop it yourself and resell it.

Of course, since we have done this, we need to do it well. When the frozen transportation technology is not yet mature, local chicken farming is definitely cheaper. It’s just because the apparent profit margin is very low that normal capital in Hong Kong looks down on it, just like the dairy companies for decades.

Lin Yuehua said: "Okay, if we consider supplying the Hong Kong market, we will definitely continue to buy land and build new ranches. And as long as there are enough people, the speed of capacity expansion will become faster and faster."

"Yeah," Yang Wendong said with a smile, "From now on, this industry will depend on you."

Lin Yuehua said: "No problem, I promise to make our aquaculture products the largest supplier in Hong Kong."

"Good, you have ambition." Yang Wendong said with a smile.

The group then took a tour of the chicken farm and saw several egg incubators where a large number of eggs were being kept at a stable temperature, waiting for the chicks to hatch.

"Can these chickens basically be self-sufficient?" Yang Wendong asked with a smile.

Lin Yuehua replied: "Yes, we bought a lot of eggs and chicks in the first batch, and we can produce them in a cycle later. But we will also buy some good chicken seeds occasionally in the future."

"Not bad." Yang Wendong nodded.

Once the breeding industry is established, apart from food, there is basically no need to purchase any more "raw materials", which is quite convenient.

At noon, after having a quick meal, Yang Wendong brought Liu Huayu and others to a small pier nearby.

Lin Yuehua introduced: "Mr. Yang, this is the dock we built. It is easy to dock a small boat of several hundred tons, so all kinds of feed can be loaded from here;

Don’t underestimate this wharf. Even if our current aquaculture scale is expanded dozens of times, the wharf’s unloading capacity will be sufficient.”

"Hmm," Yang Wendong said, "Look at it this way. In Shatin, we already have a whole breeding system, except for the food that needs to be imported."

At this time, Liu Huayu said: "Mr. Yang, I actually have another suggestion. I have also discussed it with Mr. Wei and Mr. Ji Lin, and I think it is feasible."

"Any suggestions?" Yang Wendong asked.

Although he is a time traveler, he only controls the strategic direction. He is far inferior to professionals in many things. Moreover, the knowledge that a time traveler knows is limited. Therefore, he will often listen carefully to the team's suggestions.

Liu Huayu said: "Changxing Shipping buys grain for China Resources. By the way, Changxing Trading will also buy rice and then ship it back to meet the needs of the Hong Kong market and my Carrefour.
However, the rice shipped by sea is all rice, and it still needs to be hulled after arriving in Hong Kong. Hong Kong did not have such a company before, so it was sent to Guangdong Province or Taiwan for processing, and then sent to Hong Kong, which is both expensive and time-consuming. Most importantly, the hulls of these rice are the best animal feed. "

"You mean, we should set up a rice processing plant ourselves?" Yang Wendong also understood what Liu Huayu meant.

Liu Huayu said: "Yes, there is such an industrial chain in Taiwan and the mainland. The bran produced can be used for breeding. In the past, there were no large-scale breeding farms in Hong Kong. Dairy Farm International does not eat much bran due to the demand for milk production, so the bran cannot be processed after it is produced.

But now that we have our own farm, we can kill two birds with one stone.”

"Okay." Yang Wendong thought for a moment and agreed: "You discuss with Lao Wei and build a grain processing plant in Shatin. There is a port here, so it is convenient for entry and exit. The bran can be directly transported to feed the chickens."

"Okay." Liu Huayu agreed and said, "Mr. Yang, I have a bigger suggestion. Many of the foods that are popular in Carrefour can actually be made by ourselves.

Now we have a source of meat in Shatin, a wharf for starch import and export, our own shipping, and I heard that Watsons is also planning to build its own sugar factory, so basically we can build most of the food processing sheds ourselves.”

"That's true." Yang Wendong agreed.

As several industries attempt to expand their industrial chains in depth, the group will eventually have more and more resources, making it easier for it to enter other industries.

This is also the fundamental reason why many large conglomerates in Japan, South Korea and even in the future in mainland China are involved in so many industries. When the terminal controls many industries, you can make money by doing anything, and the essence of the conglomerate is to expand profits. Many times, even the big bosses of the company may not be able to predict that it will develop into this way in the early stages.

Liu Huayu continued: “So my idea is that our group will build Shatin into a base for the food industry chain, using the group’s various resources to reduce the cost of processed food to a minimum;
In this way, Carrefour can obtain very cheap sources of goods, and at the same time, the new industry can also use the group's resources to export and process food, which has a large market anywhere in the world."

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(End of this chapter)