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Feng Yu had returned to Beijing for a few days. He completedhis thesis and had submitted to his professor for the first review. Aftersubmitting his thesis, he received a call from Zhang Ruiqiang, summoning him togo back to Bing City immediately. The Provincial Government wants to consultFeng Yu to seeking his opinion.
Feng Yu had nothing to do and wanted to see the progress ofthe acquisition of those factories. So, he flew back to Bing City.
Feng Yu walked into Zhang Ruiqiang’s office and sat on thesofa, as his own home. Before he could say anything, Secretary Liu brought acup of freshly brewed tea over.
“Xiao Liu, come over and sit with me.”
Secretary Liu was surprised. He controlled his excitementand sat beside Feng Yu. But his posture was like a soldier. His back wa.s.straight, and his hands were resting on his knee.
Feng Yu asked curiously: “We sit down is to take a break.You are not tired, sitting like this?”
Secretary Liu was confused. What sort of question was this?How was he going to answer?
If Secretary Liu replied that this posture was not tiring,Feng Yu would surely say he was lying. But how can he answer that it’s tiringin front of his leader?!
Zhang Ruiqiang stared at Feng Yu and told his secretary:“Just ignore him. Just relax. There are not so many rules here.”
Secretary Liu was relieved. But he was still uptight andsitting properly. He did not dare to sit like how Feng Yu sat, leaning backwith his legs crossed.
“What’s wrong? What’s the problem you all encounter now?”Feng Yu asked.
The frequency of Zhang Ruiqiang consulting Feng Yu hadlessened in the past two years. But the questions were getting harder. It wasnot because Zhang Ruiqiang had grown in recent years, it was also because hisposition was higher now. The difficulty of the issues he faced had alsoincreased.
Feng Yu was not very familiar with politics, and it wasdifficult for him to help Zhang Ruiqiang in this area.
“You suggested merging our resources to form a biggercompany and concentrate on one single brand. The Provincial Government hadconsidered your suggestion and decided to start from the agriculturalindustry.”
Feng Yu nodded: “Our province is an agriculture province in thefirst place. We have a large flat land area that is suitable for farming. Ourmodern farming is also the most advanced in China. This is a good idea. Arethere any problems?”
“We are thinking of starting from the livestock and grainsprocessing industry. What do you think of this direction? Will it work out?”Zhang Ruiqiang asked.
“No problems. If livestock breeding is large scale and abrand is formed, it will be very effective. Look at our Tian Peng Pigs. I darenot claim that the whole of China knows about our pigs. But almost everyone inthe cities knows about our pigs. Also, if you are doing large scale livestockbreeding, the cost will be lowered and could gain the trust of the consumers. Thegrains processing plant is also a good idea. You can also create a brand out ofit. I can help if you all encounter any problems with sales.”
I will be your leading distributor, and whatever productsyou produce, I can sell it in Tai Hua Supermarkets. Just nice, I can introducethe healthy food section in the supermarkets. This will differential from otherproducts and increase profits.
These products can also be exported. Brother Ki should beoverjoyed.
“That means you also think that this idea will work? Willthere be any problems with sales?” Zhang Ruiqiang asked.
“If the quality of the products is good, you don’t need toworry about sales. My company has established distribution networks and havepartners in all provinces. If you are worried, you can work with our Tai HuaProcessed Food Company and sell it under Tai Hua Food Products brand.”
“Use your brand? Don’t even think about that! We want tocreate our own brand. You cannot stuff everything onto your own plate!” ZhangRuiqiang chided Feng Yu.
Feng Yu smiles. It had become his habit to stick his hand inwhenever he saw a profitable business. This business will be extremelylucrative.
“Then why are you telling me all these? You want myopinions? This is a good business, and you all should be able to tell.” Feng Yuwas curious. Was there a need to consult him about this? The leaders at theProvincial Government can’t even make this simple judgment call?
“I want to know if it is possible to implement all our ideasat once. This includes cows, goats, and poultry farming, dairy products, andprocessed grains products. We will also produce the pinenuts, hazelnuts, etc.from the forest. Will we be too diversified? Should we set up several companiesto handle each product or sell all our products under one company?”
“One company is better, and you can set up subsidiariesunder the main company. The benefits of setting up one company are to bettermanage your brand. Managing one brand is more cost-effective and efficient thanmanaging multiple brands. Look at Bing City Machinery Company. Our cars arealso using Songjiang brand. Consumers have trust in this brand, and our carsare selling well. The brand also helped increase our motorcycle sales.”
“You are saying that we should set up the main company andset up the main brand first. From there, we will set up sub-brands or differentproduct categories under it?”
“That’s right.” Feng Yu had an annoying look on his face. Itwas like a teacher teaching his students.
Zhang Ruiqiang ignored him and continue asking. “That meansyou think that it is alright for us to implement everything together, and therewill be no conflicts?”
“Why will there be conflicts? Look, the better qualitygrains from the crops can be separated out and sold as premium grains. Theremaining can be processed to produce animal feeds for the cows, goats,chicken, etc. This way, you can lower the cost of getting animal feeds.”
“Your livestock can be sold as meat, and you will get eggsfrom the chicken and ducks, which can be sold too. You can also process theeggs as salted eggs or century eggs. The animal droppings can be processed intofertilizers for your crops. You all can use this as a selling point. These arehealthy food products. Your food products used natural fertilizers and do notuse any pesticides. The livestock is also fed with natural grains. You all ca.n.a.lso use the free-range farming method for the chickens and ducks. Free-ranged poultryand eggs can fetch higher prices.”
“You can also breed more dairy cows and goats and can sellcow’s milk and Goat’s milk. Goat milk is more nutritious than cow milk. If youall can produce just goat milk powder, your profits will be high. You can alsoproduce dairy products. If you have any problems with dairy products, I canpersuade Lehaha to set up a factory in Bing city to produce yogurt. You alldon’t have to worry about the sales of your milk.”
“All these productions are inter-related. If you do allthese together, your cost will be lowered and get higher profits. We can evenmarket the company as an ecological agriculture farm. We will use agricultureas the fundamentals, and developed the second and third level industries. We willbe able to protect the environment and at the same time, get the products wewant. This will be a first in China. Just this concept alone is sufficient forthe province to get funding from the higher-ups. Oh, what is the name of thisnew company?”
“Beidacang Group.” Secretary Liu replied.
Huh? Beidacang Group? Was it because of me, this brandappeared much earlier?
Translator’snotes: Beidacang stands for Northern Granary. There is a company by the name ofBeidahuang Group. I think the author is referring to this company. Below is ashort introduction of Beidahuang Group.
Anarticle on Heilongjiang agricultural industry.
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