Agricultural giant since 1983

Chapter 387 Order Farming

The predecessor of Tunhe Co., Ltd. was the Toutunhe Cement Plant, which was founded in 1983. XJ Tunhe Co., Ltd. was established in 1993. It was listed on the Shanghai Stock Exchange last year. Shortly after listing, it was targeted by Tang Wanxin, who was defeated in the "327 National Bond" incident. On the way, he quietly absorbed shares in the secondary market and became the third largest shareholder of Tunhe, and soon became the largest shareholder. Immediately afterwards, Tang Wanxin took over listed companies such as Hunan Torch, and established Delong based on this Department, began to shake the wind and rain in the stock market.

Although Tang Wanxin has always been a financial boss, he does have some foresight. After becoming the largest shareholder of Tunhe, he began to promote the development of this enterprise into the agricultural field, using XJ's agricultural resources to start making tomato sauce, and This boosted the stock price and profited from it. When the Delong family collapsed in the future, Tunhe shares were taken over by COFCO, and gradually divested of the cement business, focusing on the development of tomato paste, sugar and other fields. When Li Lei crossed over, Tunhe shares It has become an important domestic agricultural product processing enterprise, supplying consumers with a large amount of sugar and tomato paste.

Now that Li Lei is the first to cooperate with COFCO and has started to enter XJ's agricultural product processing market on a large scale, it may not be so easy for Tang Wanxin to repeat the historical plan.

It is not so easy to develop Yanqi’s tomato deep-processing industry. The first is the problem of seeds. Since the 80s, the domestic tomato seed market has shown a polarized situation. The price of foreign tomato varieties per kilogram is as high as 10 yuan. The price of domestic tomato seeds is less than 1000 yuan, which is more than 100 times the difference between the two. However, large tomato planting bases still like to buy foreign seeds, because foreign tomato seeds are really good, especially in terms of storage and transportation. Absolute advantage. Domestically grown tomatoes in rural areas have a good taste, but they are not resistant to storage. Foreign tomato varieties can be stored for a long time, and transportation is also convenient.

It’s just that the taste is poor, there is no tomato flavor, and it is hard to eat. Many people in later generations often complain that the current tomatoes are not as delicious as when they were young. It is for this reason; It is impossible to choose the latter between transportation and transportation, because you can only make money by selling the products. Products that rot in warehouses and cars are meaningless. There are similar problems in the fruit field. When I was a child I can often eat apricots and local cherries, but I can’t find these fruits in the chain fruit stores, although they taste better, but they are easy to rot and difficult to transport.

Fortunately, domestic breeding experts do not eat dry food. Many breeders have been aware of this problem since the 80s, and then devoted themselves to the breeding of new tomato varieties. XJ Academy of Agricultural Reclamation Science has made a lot of contributions in this regard , and successively bred a variety of improved tomato varieties.

For example, Xinfan 64 is a medium-maturing variety with large fruit, firm flesh, crack resistance and pressure resistance, and high yield; Kenfan 1802 is a medium-maturing variety with uniform size, good fruit setting, and high yield potential; Kenfan 1708 is medium-early maturity Variety, oval fruit, uniform size, good fruit setting, concentrated ripening, good fruit hardness, good field storability, and good field resistance. These three new varieties are all suitable for mechanical harvesting.

Li Lei invited experts from the Academy of Agricultural Reclamation Science to come here this time to solve this problem. He invested a sum of money and donated various advanced equipment to the Academy of Agricultural Reclamation Science, and also reserved a test field for them in Hainan. The improved tomato varieties planted may be able to be born ahead of schedule.

There is also the problem of traffic. XJ is far enough away from Kouli, and Yanqi is in the middle of XJ. The construction of Tuhe Expressway and Wuruo Expressway has not yet started, so we can only rely on National Highway 218 for transportation, but this road is just under construction. The roads in the 50s were seriously damaged due to years of disrepair, and some road sections were difficult to pass. Although there are still railways for transportation, there will still be a lot of impact in the short term.

These can be overcome. The most important thing right now is whether the local people can accept the new business model. Yanqi also has a group farm here, which is under the jurisdiction of the Second Agricultural Division. With the relationship between Li Lei and the Corps, and the status of COFCO, let the group farm plan It is not difficult to allocate a part of the land to replant tomatoes, but the land in Tuanchang alone cannot provide sufficient raw materials for the tomato paste factory, and local farmers in Yanqi must be mobilized to grow tomatoes together.

And farmers are often very cautious about planting new crops, because it is related to their livelihood, so no matter how careful they are, they cannot be blamed for being conservative, mainly because their ability to resist risks is really poor. What if I can't grow tomatoes?What if no one harvests it?What should I do if someone accepts it but the price is not high and I sell it at a loss?These are issues that must be resolved.

So Li Lei discussed with Ning Hao, and came up with an order-based agriculture plan for the local leaders of Yanqi. The local people signed the contract, which stipulated the quantity, quality and minimum protective price of tomatoes, so that both parties could enjoy corresponding rights, obligations and binding force, and could not unilaterally break the contract.

Then the tomato paste factory provides farmers with seeds, fertilizers, pesticides, machines, etc., so that they can obtain these necessary means of production at a lower price, and even choose to use the model of paying after the tomatoes are sold, of course The price of this model must be slightly higher than direct payment, after all, the tomato sauce factory also has costs to do these things.

But farmers can also accept it, because it saves them the trouble of raising funds. The life of farmers in Yanqi is not very easy now. If you ask them to spend money to buy seeds, fertilizers, pesticides, and machines immediately, most of the local farmers will accept it. If they can't afford the money, now that the ketchup factory has helped them solve this problem, it will be easier for them to accept it.

In addition, the tomato paste factory will also provide them with free technical guidance, telling them how to plant and maintain to produce more and better tomatoes.

The local government needs to organize manpower to complete the water conservancy system of the tomato field, so that the tomato field can have better production conditions. This investment can be provided by COFCO and Huinong Liaison Bank for them to provide loans, and then after the tomato paste factory is completed, through taxation Take it back in other ways.

This is a business model that requires the cooperation of farmers, factories and local governments. All three parties can benefit, but there are also risks.

After seeing the plan, the local leaders raised their concerns, "COFCO and Huinong are willing to invest in Yanqi, we welcome it very much, and we are willing to do everything we can to make this project a success, but this... There are always risks in business, and if this factory does not operate in the future, the money we invested is a trivial matter, and the key is how to explain to the farmers?"

Li Lei and Ning Hao had already prepared for this, and they exchanged glances. Considering that the leading cadres here tend to be more conservative in thinking, they must trust state-owned enterprises more. This is also an important reason why Li Lei pulled COFCO to work together, so It was Ning Hao who said, "You can rest assured on this point. We COFCO is a state-owned enterprise, and Huinong is also an excellent representative of private enterprises trusted by the leaders. We will definitely not do such a thing. If we encounter difficulties, we will retreat. Where else would you dare to cooperate with us in the future?”

"COFCO has its own import and export channels. Huinong also began to export its own apricot jam to Europe more than ten years ago, and has accumulated a good business reputation. It has relatively complete sales channels abroad. We have reached a strategic cooperation agreement with big ketchup consumers like KFC and McDonald’s, so as long as we can produce qualified ketchup, we don’t have to worry about not being able to sell it!” Li Lei added.

Hey, this is because the development of the times is not enough to have such concerns. After a few years, insurance companies can be introduced again, and insurance companies can sign contracts with them to provide insurance services for order-based agricultural cooperation. In this case, the factory will collapse Yes, farmers can also get compensation from the insurance company so that they will not lose their crops.

However, the national agricultural insurance company An Nong Agricultural Insurance Co., Ltd., which specializes in policy-related business for the government, will not start preparations until 2004 and will officially open in 2006. Now Huinong and COFCO can only use this method to persuade Yanqi local leadership.

"We can trust the reputation of COFCO and Huinong!" The local leader nodded. This is the main reason why they are willing to continue the discussion. Dare to promise, the loss of the government's money is still a trivial matter. If a large number of farmers go bankrupt, or even cause mass incidents, it will be fatal.

"We are more worried about these issues than you are. After all, we initiated this matter, so Director Li and I thought of a way. When we signed the contract, we deposited the first year's tomato purchase money in the bank you designated. In addition to accepting your supervision, it must not be used for other purposes except to buy tomatoes! So you should be relieved, right?" Ning Hao came up with the final plan.

Empty words are not as effective as real money after all. Upon hearing this plan, Yanqi's leaders all relaxed. With this money backing up their risk, their risks were greatly reduced; the leaders' faces were full of smiles, I apologized to them again and again, but no one said anything to keep them from putting money.

"In fact, contract farming is also risky, and we can only try to transfer the risk from farmers to us! This is also the development strategy we have always adhered to, that is, to bring benefits to farmers." Li Lei said with a smile.

In the future, many agricultural giants will do the opposite. For example, a large pig raising company will transfer a large amount of market risk to the farmers. The farmers will buy feed on behalf of the farmers and feed the company’s pigs. The feed payment is equivalent to a temporary loan to the company. , After the live pigs are delivered and sold, the company will settle the expenses and refund the deposit. Under normal circumstances, the surrogate farmers can still make a certain profit, but once they encounter risks, they will be in danger.

When the price of pigs falls, the company will default on the loan, refuse to refund the deposit, and even cut off the feed supply in serious cases. According to the contract, the farmers cannot buy feed from other companies, and can only watch the pigs die. The circle cannibalize each other and eat the same kind.

Naturally, Li Lei couldn't do this. He continued to analyze to the leaders, "Farmers' biggest worry about planting cash crops is that they are afraid that they will not be able to sell them. We have placed orders in advance, which is equivalent to helping them avoid this risk. The minimum protection price is guaranteed to ensure that they can have the most basic income every year, so that the risk of planting is greatly reduced, and the more they plant, the more they can earn, and I believe their enthusiasm will increase a lot.”

In later generations, the income of local farmers in Yanqi from planting tomatoes is still very good. After using better seeds and more advanced planting techniques, the tomato output per mu can be increased to about ten tons, and the net income per ton of tomatoes is It is more than 300 yuan, sometimes it can reach 400 yuan, which is equivalent to earning 4000 yuan per mu of land, while in other provinces, one mu of rice can only earn 500 yuan. The difference between the two is as much as ten times.

At the same time, the land in XJ is sparsely populated, and it is not uncommon for farmers to have dozens or even hundreds of acres of land, unlike Henan where each household has an average of seven or eight acres of land; One household of farmers can get an income of over [-] yuan, which is definitely not a lot in rural areas, and they can live a relatively rich life.

In the future, the tomato industry in Yanqi ushered in a great development. Many well-known enterprises such as COFCO and Lee Kum Kee have settled in. They built tomato paste factories here, persuaded local farmers to grow tomatoes, and increased the per capita income of local farmers to more than 6000 yuan higher than the average of Xinjiang. level, the ketchup industry has made a huge contribution.

But tomatoes can not only produce tomato sauce. After finalizing the tomato sauce factory, Li Lei talked about another project, "In addition to the tomato sauce factory, we Huinong also plan to set up a lycopene production factory in Yanqi. Compared with tomatoes from other high-quality production areas in the world, our Yanqi tomatoes are ruddy in color, and the lycopene content per 100g of tomatoes is as high as 62mg, which is 1.5 times that of the US production area and far ahead of tomatoes from other production areas in the world , it is absolutely suitable to produce lycopene in Yanqi, and it can also be exported to European and American countries in exchange for a large amount of foreign exchange. I hope that all leaders will continue to support this project.”

He also mentioned this project to COFCO. Unfortunately, COFCO can understand what tomato paste does, but it doesn’t know much about lycopene. In addition, this project sounds relatively small, so they rejected it, which happened to be cheap. Li Lei, let Li Lei monopolize this promising project.

A large enterprise like COFCO doesn’t understand it, let alone leaders in these remote areas. They all looked at each other in blank dismay, not knowing how to respond, “Mr. Li, what is this lycopene made of?”

(End of this chapter)