Chapter 726 – Agricultural Industry Plan
The people below were not willing to go ahead, but they had no choice. Xu Changyou was too overbearing. However, because of Xu Changyou’s domineering character, the negotiations went smoothly.
Li Mingde was in-charge to negotiate with the small factories. He knew most of the leaders from the factories. He knew which of them were capable and who were the useless ones.
Li Mingde persuaded those who were capable to stay on as the person-in-charge of this branch factories. They might even have the opportunity to be transferred to Bing City in the future. They might also get some company shares as rewards. As for those useless leaders, Li Mingde persuaded them to get a transfer using their connections. Otherwise, they might be fired after the factories were acquired.
Bing City Machinery Company promised that they will not fire anyone without valid reasons. But these smaller factories do not have problems after all these years as a state-owned enterprise? If Bing City Machinery Company really wants to investigate into these factories, these people might not only get sacked. They might even be arrested for corruption!
While the negotiations were ongoing, the Provincial Government were discussing how to reorganize the provincial resources to set up competitive companies, and how can these companies improve the province’s economy.
……
“Our Longjiang Province is an agriculture province, and we should merge all our agriculture resources to set up an Agricultural Food Company. This is to our advantage.” Niu Jun, the Director of the Provincial Department of Agriculture, said.
Someone immediately objects. “Agricultural Food Company? Are you kidding? Don’t think this will work just because someone suggested this. Although we are an agriculture province but don’t forget there is still a Ministry of State farms and land reclamation. This company should fall under the jurisdiction of the Ministry of State farms and land reclamation.”
“We should set up a company of this nature. But this company should be under the Provincial Government.”
The ones who rejected were deep in thoughts. If this company were to fall under the Provincial Government, then the farms will be under the control of the Provincial Government instead of the Department of Agriculture. This way, the Provincial Government’s income will increase!
This was a good idea. It would be indirectly taking back control of the farms from the Department of Agriculture. But will the higher-ups agree?
“Tell me more about the plans for this company. What will it be dealing with, and how will it be managed?” Xu Changyou was very interested. This seems to be a great idea.
“In the US and Australia, they do have such agricultural products companies. When I visited the US last year for a study visit, I learned their operating models. After I came back, I came up with an operating model that would suit our farms.”
“We can sign contracts with the farms and ask them to plant the crops we wanted. For example, we can purchase the corns and wheat from the farmers and process it before we export to Russia. Even if it were a simple process of drying the crops, we would be able to get a share of the profits. We can even process the crops to oil or flour, and we can export it to the rest of China.”
“Our province has a big food processing factory, but their products are limited. They are good at pork-related products and are one of the best in China. However, they are not very good when it comes to other products.”
Xu Changyou asked. “Are you talking about Tai Hua Process Food Company?”
“Yes. Their Tian Peng Pig and animal feeds are the best in China. Now, they are also producing pork-related products, like ham and canned pork, and are the best in China. But there are so many other processed products from the agricultural industry. For instance, we can produce other types of meat, like beef or chicken, products. We have an advantage over them as we can order straight from the state farmers or build chicken or cow farms. These meat products are very popular in the market.”
“Our province also has more than one dairy products factory. We can merge these factories together to form a big dairy products factory. We also have a big forest in our province. There are many valuable items, like pine nuts, hazelnuts, etc. from the forest. We can purchase these items in bulk from the farmers and package them to sell to other places.”
“I even have an idea that will let us see the results earlier. But that might be slightly against the regulation. We can cultivate the wasteland ourselves and set up a gigantic farm.”
“Don’t talk about anything that is against the law.” Xu Changyou waved his hand. “What you said is very good. How come you did not submit this proposal in the past?”
“This is only an idea. But there is a big problem for this plan to work.”
“What’s the problem? Tell me, I will solve it for you!” Xu Changyou was excited. They will surely find a solution to all problems. How come I did not notice this Niu Kun before? He is quite capable.
Longjiang Province’s agriculture industry has enormous potential, and there is still no large-scale agriculture company in China. If they could set up this company, Longjiang Province will be way ahead of other provinces!
This was an excellent opportunity for the province. Problems? We must overcome all difficulties to make this work!
“Money! To set up such a large-scale company, we need a lot of money. Even the Provincial Government will not have so much money to set up a company of this scale.” Niu Kun replied.
Niu Kun had this idea last year, but it was impossible to implement. He had suggested during this meeting was to prove that he was not idling in his office, and he hopes that Xu Changyou was able to solve this problem.
“The amount is too much, even for the Provincial Government? How much is needed for this plan to work?” Xu Changyou frowned and asked.
“At least a few billion. If we have 10 billion, it will be better. We need funds to procure the crops or products from the farmers. We also need funds to build the processing factory. We still need some extra funds for emergencies, marketing, machinery, etc. Can the Provincial Government take care of it?”
Niu Kun looked at Xu Changyou eagerly. If the Provincial Government could solve all these problems, then he will get part of the credit.
At least a few billion RMB? How can the provincial government afford it?
If it was only a few hundred million, the Provincial Government might still have a solution. They could apply for the funds from the higher-ups, raise the amount from the cities, etc. They could also get bank loans.
But it was impossible for the provincial government to raise a few billion.
Niu Kun’s excitement in his eyes slowly dies off as he saw Xu Changyou lowered his head. Not possible? If even the Provincial Government could not find a solution, then it would be impossible for this company to set up.
Seems like this idea can only remain an idea.
……
Xu Changyou returned back to his office. He thought for a while and called Zhang Ruiqiang to come over to his office. He wants to see if Zhang Ruiqiang has any solution.
When Zhang Ruiqiang heard that the Provincial Government need to raise a few billion, he was also helpless. If the Provincial Government did not have the money, let alone Bing City.
But suddenly, Zhang Ruiqiang remembered someone. Maybe this person might have a solution.
Hmmm……. Whenever Zhang Ruiqiang encounters some problems and needed solutions, this person will always be able to provide him with the solutions. This person has the answer to everything.