Chapter 720 Cultivation of New Industrial Chain
Chapter 720 Cultivation of New Industrial Chain
"In Bao'an County?" Zhang Guangdou hesitated after hearing this.
Yang Wendong continued, "I know that Shanghai and Hankou are both large cities with large populations. They have abundant population and land resources. However, since they are used to supply Hong Kong, the cost of transporting them by train from thousands of miles away is still too high.
This model worked before because it was more expensive to ship supplies from Southeast Asia, but now that containers have come out, the situation has reversed.”
The starting points of the three express trains are Shanghai, Hankou and other cities, which are far away from Hong Kong. However, there are hundreds of millions of people around them, and the demand for meat and vegetables is very high. Therefore, it is much easier to increase the supply of materials to Hong Kong based on local resources.
This is the same principle as in industry, making full use of the surrounding industrial chain; because it is too cumbersome to set up a new set in other places, it is better to build railways. Of course, railways have other uses as well. It cannot be said that they are only for supplying goods to Hong Kong. Hong Kong does not have such a big face.
Zhang Guangdou replied: "It is too difficult to build a huge meat and vegetable supply system from start to finish in Bao'an County. The cost will also be extremely high. I, China Resources, cannot decide on such a thing."
"Doesn't China Resources also have a farm in Bao'an County? Does it supply Watsons?" Yang Wendong said with a smile, "Just expand the scale. Watsons' demand for meat will be higher and higher in the future. The cost of shipping the meat you raise in Bao'an County to Hong Kong is much lower than that in Southeast Asia. It is impossible that it cannot be sold. Carrefour will be the first to buy it.
As for vegetables, we should just adopt the previous model and then gradually plant them in Baoan County and even in eastern Guangdong Province. Isn’t that better?”
In the past, when there was no competition, it was fine to transport supplies from thousands of miles away. Now that there are competitors, we must adopt the principle of proximity.
In the past, it was probably operated in this way. Yuezhou City itself is also a big city, but the economy of other cities in East Guangdong Province is not very good, so it is difficult to supply Hong Kong alone. But there are ways to do this, after all, the land is there;
Especially when the mainland has the ability to produce its own fertilizers in the future, it will be even more convenient.
"If we raise livestock in Bao'an County, then we have to import all kinds of feed, right?" Zhang Guangdou said hesitantly, "We have to rely on foreign exchange."
Yang Wendong said, "That's better than giving the market to Southeast Asia, right? The meat is also sold for foreign exchange, so you can only make a little profit. Besides, the feed can actually be transported from coastal cities in the interior, and the cost won't be very high. It all depends on your internal arrangements."
Bao'an County, which is the future Shenhai City, was just a poor county before the reform and opening up. However, a few years ago, Watsons started to produce sausages, and the demand for meat was very high. At that time, there was no container terminal in Hong Kong, and meat could only rely on China Resources. Because of the large quantity, China Resources was required to raise meat in Bao'an County.
But Bao'an County has nothing, so all kinds of feed for the farms are imported from Hong Kong Changxing Trading, which also requires foreign exchange. But the final price of the meat sold to Watsons is also foreign exchange. All in all, there is still a foreign exchange surplus.
Although Watsons' production of ham sausages is not low, it is still far behind the demand in Hong Kong as a whole, and the city's demand for a wide variety of products is not like a company that only needs a few types of meat.
Zhang Guangdou thought for a moment and said, "Mr. Yang's idea does seem good, but this matter is too big and requires cooperation from the central government and local provinces."
Yang Wendong smiled and said, "I know, but I think you can seriously consider it. Although Hong Kong is in an economic crisis now, you know that this kind of thing will only end in one or two years. It will definitely develop better and better in the future, and the population will also increase.
In the future, the demand for food by millions of people will be worth billions of dollars. If the mainland can capture this market, foreign exchange earnings will definitely increase significantly. If prices can be brought down, Hong Kong citizens will also benefit.
At the same time, the development of the food industry here also requires a strong agricultural logistics base. In the future, I will also expand overseas on a large scale, and the demand for meat and poultry will also be very high. "
Not to mention other things, when Wal-Mart dominates the United States in the future, the several large supermarkets he invested in Europe will develop, plus his own Carrefour in Southeast Asia, these alone will provide channels that are dozens of times stronger than the current ones;
Instant noodles may not have much success in Europe and the United States, but the sales of ham sausage are still good. There are even more channels, and we can also make other products, such as pure meat sausages, canned food, etc.
However, the cost of relying solely on Hong Kong to purchase raw materials from overseas is very high, even if it has its own ships. Only if the neighboring mainland can provide massive agricultural support can it succeed.
In fact, Yang Wendong has recently been thinking about how to persuade the mainland to invest large amounts of money in agriculture and animal husbandry in eastern Guangdong Province, and now is the right time.
Zhang Guangdou nodded and said, "Indeed, if it is successful, the benefits will be very good, and China Resources will also benefit a lot from it."
"But I have another suggestion." Yang Wendong continued: "If agriculture wants to develop well, it needs fertilizers. I know that there are several fertilizer production lines in the recent 43 procurement in China, but none of them is in East Guangdong Province. So if you want to build an agricultural base in East Guangdong, you must have a fertilizer production line."
The core technology for the development of modern agriculture and its ability to feed so many people on the earth is fertilizer. Without fertilizer, even the best fields will lose their fertility after a few plantings.
For example, in India in the past, the agricultural fields were vast and the climate was good, but it still needed to import a large amount of fertilizers every year, otherwise it would not be able to feed its own population.
"Fertilizer production line? The cost is not low, and foreign exchange is also needed." Zhang Guangdou said helplessly; the domestic 43 procurement looks very grand, but the foreign exchange spent is also enough.
Yang Wendong smiled and said, "It's the same as the chemical fiber production line. We can buy second-hand ones. With China Resources' financial strength in Hong Kong, they should be able to afford it. Given the domestic land conditions, as long as the fertilizer is spread, the food it will eventually be converted into is definitely worth it, whether it's for our own use or for export to Hong Kong."
"Mr. Yang, you don't know this. The funds that China Resources has in Hong Kong are not spent casually." Zhang Guangdou shook his head and said.
Yang Wendong nodded, and then said: "I am just suggesting that you discuss it among yourselves. Personally, I hope this can succeed."
For Yang Wendong, the food industry may not be as important as the electronics industry in the future, but it is also a rare stable industry. As long as it is scaled up and well-known, it can make money without doing anything.
Moreover, it is hard to say what the future of the electronics industry will be like given the current uncertainty in history. However, the food and beverage industry is stable, even more stable than Hong Kong real estate. After all, no matter how technology develops, people still need to eat and drink, and will not be greatly affected by the economic crisis.
Zhang Guangdou smiled and said, "Okay, thank you Mr. Yang for your advice. We will consider this matter carefully. However, even if we really want to do this, it will take a long time. In terms of cooperation, we still hope that Mr. Yang's Carrefour can increase its purchases of meat materials from the mainland."
“How about this, I will let Carrefour set up a stall directly in the store to sell freshly killed poultry meat. The price will be a little higher so that interested consumers can buy it.” Yang Wendong said after thinking for a while.
In any case, we must follow the laws of economics, and if we let him buy meat at a high price, then we can only sell it as a special commodity;
However, fresh meat itself is also liked by many people. In busy areas, ordinary people often cannot buy fresh meat, mainly because of lack of trust. So with Carrefour's reputation as a guarantee, specializing in selling freshly slaughtered poultry or meat delivered from the mainland on the same day is also a viable business.
Zhang Guangdou said, "Okay, thank you Yang Sheng."
"You're welcome." Yang Wendong nodded.
He is very happy to be able to help the development of the mainland while making things convenient for himself, especially when it comes to agriculture, which can also help many farmers;
Before the 90s, farmers in the mainland had a very hard life, including Yang Wendong's childhood, who had experienced this in his previous life. Although he still felt very happy because of his childhood, that was also because the pressure was on his parents and elders, and the lack of material things was also real.
Watsons will focus on developing the beverage and food sectors in the future. The beverage sector may not be of much help to the mainland, but as long as the food sector is strengthened, the purchase of materials in the mainland may benefit hundreds of thousands or even millions of peasant families. For Watsons, the cost in the mainland must be lower, but some investment will definitely be required in the early stages.
At present, he does not care whether the mainland will do so or not. If there is no reform and opening up now, then it will be absolutely worthwhile for him to invest in the past. If it really doesn't work, then he can wait until 79. It's only 5 years anyway. In recent years, the food manufacturing industry under his company has purchased materials from Southeast Asia, and the cost is actually only slightly higher, which has not had much impact.
Time soon came to March, and Yang Wendong was also paying close attention to the changes in the Middle East. The situation seemed to have improved, and international commentators were also discussing when the oil crisis would end.
Although preparations were made early, the impact of the oil crisis on the global economy still had a great impact on Changxing Group. After all, the consumption amount in many European and American countries fell by almost 10% year-on-year. This proportion may not seem high, but necessities are indispensable, medicines and gasoline are also indispensable, and non-essentials have basically plummeted. Many of Changxing Group's products fall within this range.
Originally, the oil embargo was scheduled to end in March this year, but Yang Wendong couldn't remember the date, so now he can only wait.
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(End of this chapter)