Chapter 97: Introducing an enterprise and creating a booming industryThe M&A strategies of Tianhe and Muhe incorporate many characteristics of foreign-funded enterprises. Keep a low profile during pre-merger research, give enough respect during contact, provide sufficient benefits during negotiations, promise to retain the original management, etc. Once they obtain controlling shares, they will intervene quickly, and after taking control of the company, they will quickly carry out personnel integration. Those who should be kicked out will definitely be kicked out. Promises are just empty words and contracts are sometimes not binding. In the office, Guo Yang's assistant Xie Shijie had his hair combed back and a look of unsatisfied expression on his face. He was mainly responsible for following up on the acquisition of Quanwang. "The scale of enterprises in the county is too small. There are more than ten processing companies, but the actual total processing sales volume is less than 150 tons. There is only one contract farming company, Quanwang, with an annual output value of only about 150 million yuan." Guo Yang was visiting the newly installed equipment in the Quanwang factory, most of which were imported. In the past six months, Tianhe and Muhe have also each controlled small and medium-sized agricultural machinery factories, but that was mainly to cover up their tracks. “That’s why we have to use strong means to integrate. Only when agricultural products are transformed into commodities can we obtain considerable income.”
Xie Shijie is a little worried. "Some processing company bosses can't sit still anymore and have already contacted farmers privately to buy peppers." Guo Yang smiled and said, "This matter should be left to the law enforcement department and the legal team. Giving them so much money is not for nothing." "I'm just afraid that someone will do something desperate." "It's a small scene, it won't make any waves." Guo Yang felt like he had become a villain in a film or TV series, but reality is so cruel. Fresh pepper growers can sell their peppers to other companies, but the King of Dried Peppers will buy them back at a premium. The remaining processing companies that stubbornly stay in the local area are destined to be strangled. This is also the inevitable path of industrial integration. The processing enterprises in the county purchase different raw materials with varying quality, mixed product brands, and their sales channels are limited to the five northwestern provinces. If there is potential but the market is not big, or if there is industry but the strength is not strong, it will be difficult to expand nationwide and face the world. After Tianhe took over Quanwang, the factory area expanded rapidly and specialized equipment was introduced. In addition to primary products such as chili powder and sauce, deep-processed products such as capsaicin and capsaicin are also being gradually developed. It has become the leading industry in the county. Starting from variety selection, seedling cultivation, and planting management, Tianhe, agriculture, animal husbandry, and quality supervision departments have carried out extensive and in-depth publicity tours in rural areas. Printing and distributing pepper cultivation technical specifications and knowledge materials, providing scientific and technological consultation, organizing various training courses, etc. Farmers have gradually established awareness of standardized management of demonstration bases. Agricultural law enforcement teams also went deep into the fields to carry out special crackdowns on counterfeit agricultural inputs, and seized countless fake and inferior fertilizers, problematic pesticides, and counterfeit agricultural films. The only difference is that there are very few cases of fake planting and fake seedlings in the demonstration base, and Tianhe’s large-scale facility seedling cultivation model played a crucial role. Then comes processing, quality inspection, storage, and gradually standardized production. Ultimately, cultivation and processing are closely linked.
The introduction of one enterprise has led to the development of the entire industry. The county has applied to the higher authorities for permission to build a national standardization demonstration zone for peppers, and plans to allocate 100 million yuan in supporting funds to provide direct subsidies to pepper farmers. The project involves a total of 11 townships and farmers in the county, with a planting area of more than acres. At the same time, Jinchuan's pepper demonstration base is also developing rapidly. The average per-acre income of Tianjiao No. 1 in the local area can reach 3000 yuan, making the previously introduced 'American Red' red pepper variety pale in comparison. The only regret is that 'American Red' is mainly used for harvesting red peppers, and there is a misalignment in competition with Tianjiao No. 1 which is used for both fresh eating and processing. At the same time, because the demonstration base also planted 5000 acres of Red No. 1 sweet pepper, Tianjiao No. 1 did not have an absolute advantage in terms of area. Although several newly established local processing companies were dizzy in the face of the powerful Tianhe, they could still survive for a while. County government. Ren Fu walked out of the county government gate in a daze. In the past two years, he was successively rated as the county's "Advanced Individual Worker" and "Advanced Individual", and was a guest of honor in various major departments. But then she became Mrs. Niu. "Mr. Ren, we have done our best. Tianhe only agrees to accept skilled workers, not equipment." Thinking about what his leaders said, Ren Fu felt filled with resentment. His equipment was a chili tamping machine that he created after seeking advice from many places and spending several months designing it. But Tianhe looked down on it. Ren Fu looked up to the sky and sighed. Tianhe’s entry into the market leaves no room for processing manufacturers to survive. Some peers have been secretly contacting farmers to purchase dried peppers, but Quanwang, which has been funded by Tianhe, is very wealthy. This action is like scratching an itch through a shoe. Ren Fu is already thinking about changing his career. Although Tianhe does not leave any room for small processing factories to survive, in order to maintain the industrial chain and build a market system, the government departments and even Tianhe have provided sufficient support and preferential policies to the upstream and downstream of the industry. For example, planting, transportation and marketing, and product consignment sales. There are plenty of opportunities waiting to be explored. Thinking of Tianhe’s deep processing research and development, capsaicin, chromophore, etc. Ren Fu already had an idea. …… Lan City, It was still dark and the air was filled with a light morning mist.
As usual, Mr. and Mrs. Chen loaded two large baskets of chili peppers onto the tricycle. "I'm leaving now. I won't be back for lunch." "Ride slower and come back soon." Old man Chen waved his hand and set off with his pipe in his mouth. Screw peppers and sweet peppers have been sold intermittently for more than a month, and new fruits are still growing on the branches. Because it tastes good and is grown at home. City people are very fond of this delicacy and there are many repeat customers. Especially recently, the sweet peppers have changed color, and the bright red color looks very festive. Even though the price has increased, there is still a constant stream of people coming to buy them. But the yield was too high, especially the sweet peppers, which seemed endless to pick and were so big. As a last resort, they could only sell some to buyers at a low price, but at 8 cents per pound, the profit was still very high. These buyers all came for Tianhe’s sweet pepper demonstration base in Lanzhou. The Red No. 1 sweet pepper has a sweet taste and plump flesh. It is not as spicy as hot peppers, but contains more vitamins than hot peppers. It is very popular in Jiangsu, Zhejiang, Guangdong and Guangxi. More than 80% of the sweet peppers produced in the demonstration base are exported to Guangzhou, Shanghai and other places. Old man Chen doesn't understand what industry is. But he believes that good seedlings are what can make money. From two acres of land, screw peppers have been sold for more than 1000 yuan, and one acre of sweet peppers has been sold for more than 4000 yuan. And there is still nearly a month of picking time! Old man Chen was very happy. I'm already thinking about asking my son and daughter-in-law, who have been working away from home for years, to come home and grow peppers. If you contract more land, you will have a considerable annual income. Old man Chen went out at dawn, sold out all his goods by mid-morning, but did not return home until late in the afternoon. That's right, he went to play cards again. When he arrived at the village, he happened to see a large group of people coming to Zhao Mingzhi's field. The fat woman was wailing in the field again, "Isn't this harmful?" Next to him, Zhao Mingzhi was also holding a withered plant, silent for a long time, wiping away tears... "My family and I have worked hard for half a year, but the peppers have started to wither before we even see the fruits."
"Why are there no fruits?" The owner of the seed shop pointed to the few scattered peppers on the dry pepper tree. The fat woman yelled angrily, "There must be something wrong with the seeds. The pepper seeds he sold don't have a certificate of conformity. He said so himself!" The law enforcement officers of the Agriculture Bureau are also having a headache. Knowing that the seeds do not have a certificate of quality, do you still dare to buy them? The bureau has done so much publicity and training, why are there still people who don’t listen? After Old Man Chen watched for a while, his wife noticed that he had returned and hurried over to grab the small bag hanging around his waist. When I opened the zipper, it was filled with neatly chopped bills. While happily counting the money, he also looked at Zhao Mingzhi and said, "You deserve it!" In fact, Old Man Chen felt quite relieved. He still felt resentful about the fact that Zhao Mingzhi's family had withheld his wages. But I also sympathize with what Zhao Mingzhi's family went through. More than 100 acres of peppers did not produce fruit, what a huge loss! Although this family had a bad character, they were also hardworking. (End of this chapter)