Chapter 393 Fighting a turnaround
"The pig breeds independently bred by our group have outstanding indicators. Generally, the meat yield of live pigs is about 200%, but the pig breeds bred by our group can reach 170%. That is to say , a 25-jin dry pig, slaughtered with about 20 catties of bone-in meat, including 20 catties of ribs, 50 catties of ribs, 30 catties of big bones, 25 catties of front and rear legs, [-] catties of pork belly, and [-] catties of tenderloin."

"It's roughly the data."

Pigs are divided into dry feed pigs and wet feed pigs.

Dry feed pigs—cleaned, boned, and after removing miscellaneous water, the meat yield is between [-]% and [-]%. Wet feed pigs are generally fed in free range, and the meat yield is based on Fat and thin are different, between [-]% and [-]%. It is also clean, bone-in, and water-removed, and the fluctuation is relatively large.

But this is an ordinary three-element pig breed, and the pig breed of [Chaoqun Group] is not ordinary.

"Last year, our group's [pig farms] sold a total of 2550 million live pigs and produced 211.6 million tons of pork. In order not to impact the domestic pork market, according to Wu Dong's instructions, we put two-thirds of the live pork Freezing, dynamic storage, only one-third of the raw pork is put on the market."

In 2018, the national pork output was 5404 million tons.

[Chaoqun Group] The 211.6 million tons does not seem like much, but it only accounts for 3.9% of the total.

But this is an unplanned output.

Once [Chaoqun Group] puts all the pork on the market, it will inevitably lead to the collapse of the entire market, and the price of live pigs will plummet.

It doesn't matter that the comprehensive cost of live pigs of [Chaoqun Group] is low, even the sales channels are their own, but other people in the live pig industry chain, whether they are farmers or pork sellers, will suffer blood losses.

This violates the long-standing principles of [Superior Group].

In addition, Wu Siyuan saw that the supply of pork in the future would be seriously in short supply, leading to a skyrocketing price of pork. Naturally, he wanted to reserve food for the future. Naturally, he would not randomly disrupt the market, but chose to freeze and store a large amount of these raw pork.

The preservation technology of frozen meat is not simple, on the contrary it is very complicated.

During the freezing process, it is necessary to go through multiple processes such as [pre-cooling and deacidification], [meat pre-freezing treatment], [freezing speed control], [primary freezing], [secondary freezing], [frozen meat refrigeration], etc., so that Minimize all kinds of loss of meat during the long-term freezing process.

However, after this operation, frozen meat will be worse than fresh meat in terms of taste, aroma, and freshness. This is why outsiders are keen to buy [fresh pork]. However, in terms of nutritional value and food safety, there will be no difference. How much difference.

In addition, freezing pork after processing is not a once-and-for-all process. It cannot be frozen for several years or decades.

There are some so-called "zombie meat" on the market, which refers to frozen meat that has been frozen for many years and disappeared on the market.

Most of these [zombie meat] are smuggled products. The smuggled frozen products are not imported through normal channels, and have not passed any inspection and quarantine, so the quality and safety cannot be guaranteed.The quality of frozen meat that has been frozen for many years will be worse than that of fresh meat, and as long as there is no thawing during the freezing process, it is difficult to distinguish it from the appearance and taste.

Out of the need for strategic reserves and stable prices, all countries will take the initiative to freeze and store a large amount of meat, which is the main source of "zombie meat" in my country.

After these [zombie meat] cross the sea and enter our country, they are usually transported to second- and third-tier cities, and the targets are small restaurants.

The cheap price makes them popular among small catering self-employed.

In addition, foods with heavy salt and heavy ingredients like [Pickled Pepper and Chicken Feet] are also the main application range of [Zombie Meat].

Salt and pepper are sprinkled for free, and you don't know whether you are eating meat or shit!
Some of these [zombie meats] are older than consumers. Chicken wings in the 70s and pork legs in the 80s are not uncommon.

However, during the transportation process of the smugglers, due to the lack of perfect cold chain logistics, these [zombie meat] will be continuously thawed. It will cause great harm, may cause food poisoning, accelerate aging, reduce resistance and so on.

[Chaoqun Group] Naturally, they will not covet the convenience of the moment and keep the pork frozen.

The dynamic frozen meat method they adopted.

Theoretically, pork can be kept frozen for one year in an environment of minus 18 degrees.

Of course, if the time is too long, the moisture in the pork will be lost.

Even in the frozen state, meat will lose moisture. In the technology of frozen meat, this is called "dry consumption", that is, the water is sublimated, and the solid water molecules are directly vaporized, which will cause the quality of the meat to deteriorate. This is freezing. The reason why the meat is not as good as hot fresh meat in terms of aroma and taste.

[Chaoqun Group] In order to ensure the quality of the pork as much as possible, as well as maintain the taste and aroma of the pork, of course the pork will not be frozen for a year.

According to the experimental test, [Chaoqun Group] allows pork to be frozen for a maximum of nine months.

Every other month, the first batch of pork is sold.

Thanks to the excellent freezing technology and the excellent quality of [Chaoqun Group]’s unique pig breed, the pork that has been frozen for nine months is not much worse than those so-called [hot fresh meat] in terms of aroma and taste. The quality of [chilled meat] is worse.

Many housewives can't tell the difference between [Super Group]'s frozen pork and ordinary hot fresh meat.

There are three main types of pork sold in the market.

One is frozen meat.It is in a cold storage at minus 18°C, and it is displayed in the freezer of the supermarket. The quality of this kind of meat has been frozen and preserved, and the taste and nutrition have been greatly inferior, but the advantage is that the price is cheap. If it is stewed properly, it is not different from normal meat. not big.

The other is hot fresh meat.That is, the meat that was just slaughtered in the early morning and morning, and then pulled into the market for sale. This kind of meat is usually stored at room temperature, the price is moderate, the taste is average, and the nutrition is preserved well, but the hygienic conditions are much worse.After all, you don't know how many flies have been bitten by the pork transportation process at the pork stall in the vegetable market.

The last one is cold fresh meat, which usually appears in the frozen section of supermarkets. It has perfect taste, moderate price and well-preserved nutrients.

[Chaoqun Group] The taste and aroma of the pork that has been frozen for nine months is no worse than that of ordinary pork, and the taste and aroma of the freshly slaughtered fresh meat are naturally better, and it is only worse than our own boutique [Sanweixiang pig] .

This is also the reason why [Chaoqun Group] has the confidence to supply its own fresh retail brand shop [Xiaoxianrou] with this frozen pork.

……………………………………………………………………………………………………………………………………… ……

"Currently, there are 127 million tons of frozen pork stock in the cold storages of our group." Guan Xuelie reported a data.

"This storage quantity is still a bit low!" Wu Siyuan said after pondering for a while.

Guan Xuelie was surprised when he heard the words, and said, "Wu Dong, 127 million tons is not a small amount, if it increases..."

It is normal for Guan Xuelie to be worried.

But Wu Siyuan has a pair of eyes that can see fragments of the future.

Only he knows how big the pork gap will be in the future!

In 2018, the global pork consumption and supply were about 1.1 million tons, of which Huaguo accounted for about 50%.Huaguo's pork production is about 5200 million tons, and its consumption is about 5400 million tons.

In 2019, Huaguo's pork output reduction will be between 1100 million and 1375 million tons.

This is the serious impact of African swine fever.

It was a punch with a seriousness behind it that not many saw.

In the countryside, when swine fever occurs in a farmer, there will be no more pigs in a radius of more than ten miles, because the local government will cull them all.

For their own benefit, the farming households deal with it very simply and rudely—sell them secretly.

This is why pork prices plummeted after the African swine fever outbreak.

The price of pork is like a roller coaster. There may be a fluctuation, and pig farmers will hardly make a profit, or even lose money.

Under such circumstances, many pig farmers have given up raising pigs.

With the emergence of the new environmental protection law, local governments have shut down many pig farms.

This has led to a growing shortage of pigs.

And pig breeding has a lag.

Many people think that this African swine fever, like the previous outbreaks of swine fever, is a gust of wind. Under the strong control of the government, prices will not fluctuate much.

But they all miscalculated.

Everyone miscalculated.

When it is really reflected, the pork problem can no longer be properly resolved.

In 2019, China's pork production was around 3963 million tons.If the consumption remains unchanged in 2018, the pork gap will be about 1437 million tons.

The total annual pork production value of the United States is only more than 1000 million tons.

The pork production of the United States for a year cannot fill the gap in China.

It is conceivable how big the pork gap will be in 2019.

Therefore, the 217 million tons of pork stored by [Chaoqun Group] may seem like a lot, but if it is really used, it is really a drop in the bucket, not enough!
"Is there any problem?" Wu Siyuan asked softly with his eyes moving.

"Funds!" Guan Xuelie said directly.

Wu Siyuan immediately understood and understood Guan Xuelie's worry.

At the beginning [Chaoqun Group] borrowed [-] billion yuan from the bank, and took a large proportion of the funds from its own profits to invest in the construction of [pig farms] and [cold storage]!
[Cold storage] Needless to say, the time needed to pay back the cost may take ten years to calculate.

As for [pig farms], more than [-]% of the pigs produced by breeding have been frozen in [cold storage], and only less than [-]% of the pork has flowed into the market, which leads to 【Pig Farm】While burdened with heavy debts, it is still in a state of huge losses.

Payback is even more distant.

Wu Siyuan said that he wants to increase the amount of pork storage, which will inevitably increase the loss of the [pig farm] business.

If one is not handled well, it may cause heavy losses.

Guan Xuelie is a responsible manager. He said this from the perspective of the group.

"I understand." Wu Siyuan nodded, and after a pause, he continued, "However, Mr. Guan, this African swine fever is not as simple as the previous outbreaks of swine fever!"

"I already have reliable data. A large number of pig farmers have given up raising pigs. As the African swine fever continues to rage, the number of abandoned pigs will further expand."

"Supplementing the previous one-size-fits-all policy for environmental protection has led to the closure of many large and medium-sized pig farms."

"Mr. Guan, Mr. Su, do you know what this means?" Wu Siyuan asked the two executives.

"The gap!" Guan Xuelie reacted immediately, his eyes lit up, and said, "After the wave of pig farmers throwing pigs and abandoning them, the problem of the shortage of pigs will expand, and then it will be reflected in the price of pork!"

"Smart!" Wu Siyuan praised generously.

Guan Xuelie's face was happy at first, and then changed again. He hesitated, and said, "Wu Dong, do you mean that the 217 million tons of pork prepared by our group can't meet the domestic shortfall?"

"Yes!" Wu Siyuan nodded and said, "At the very least, we need to expand the storage capacity by five times to barely guarantee the stability of pork prices in the future."

"so much!"

Both Guan Xuelie and Su Shixian were shocked when they heard the words.

"Hmm! I'm still making a conservative estimate!" Wu Siyuan said with certainty.

Neither Guan Xuelie nor Su Shixian doubted the accuracy of Wu Siyuan's guess.

In terms of strategic foresight, I have to say that Wu Siyuan has not missed it.

The group's development from a small fruit shop to a giant enterprise spanning multiple industries is due to Wu Siyuan's repeated strategic decisions.

Both Guan Xuelie and Su Shixian were the first veterans to follow Wu Siyuan, and they have long been convinced of Wu Siyuan in this regard.

However, Wu Siyuan's request this time is still too high. Although Guan Xuelie does not doubt Wu Siyuan's strategic vision, he is not confident that he can complete Wu Siyuan's tactical execution. He said embarrassingly, "Wu Dong, this number is too large It's..."

"I understand your difficulties." Wu Siyuan waved his hand, and then said, "It is only our goal to expand the pork storage capacity by five times, so you just go ahead and do your best. I will mention a few points below."

"First, compress the storage capacity of other substances in the cold storage and increase the storage range of pork."

"Second, the price of pork outside is cheap now, you can purchase it in moderation and store it in the freezer."

"Third, expand the number of pigs in existing pig farms, and increase pig breeding as much as possible on the basis of strict epidemic prevention."

"Fourth, if the cold storage area is still not enough, you can rent cold storage to store frozen pork."

"fifth……"

Wu Siyuan Barabara said a lot.

Guan Xuelie's face became more bitter as he listened.

After Wu Siyuan finished speaking, he turned into a bitter gourd.

Wu Siyuan was angry and funny, and asked, "Is there a problem?"

Guan Xuelie nodded.

"what is the problem?"

"No money!" Guan Xuelie also answered briefly.

Poor God!
The group now establishes a business department, which is responsible for its own profits and losses.

The Agriculture and Animal Husbandry Development Division had a good life, but even after the [Pig Farm] project was put in place, all the profits were filled in, but the entire division was still at a loss every year.

You must know that the profitability of the business department is related to the richness of the year-end bonus for the boss of the business department.

Although Wu Siyuan has considered this point in the past two years, and has favored Guan Xuelie in terms of year-end awards, but Guan Xuelie's year-end awards are still not as rich as Su Shixian.

The loss was already serious, but now, Wu Siyuan asked Guan Xuelie to continue to invest a large amount of money. If he couldn't recover the capital quickly and turn losses into profits, Guan Xuelie's year-end bonus would also shrink.

Wu Siyuan could tell Guan Xuelie's little girl at a glance. He patted Guan Xuelie on the shoulder and said, "Old Guan, if you don't have any money, the group will lend you money!"

borrow?Guan Xuelie smiled wryly.

Then Wu Siyuan said again, "But I promise, you don't have to finish 2019, you can rely on this batch of pork market to make a comeback!"

"Okay, just do it! The group will support you." After Wu Siyuan finished speaking to Guan Xuelie, he turned to look at Su Shixian and asked, "President Su, please report on the operation of your terminal retail business department." situation, especially the opening of [Xiao Xianrou].”

"I want to know where the pork produced by our own group can be sold!"

(End of this chapter)

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