“The farms can also invest?” Zhang Ruiqiang’s face was almost distorted. He was confused and could not figure out how this would work.
“Why can’t the farms invest? Every farm is an individual unit, right? The land area, production, harvest all have economic values. Anyway, these farms belong to the state and are not owned by individuals. The way, their crops can be considered the farmers’ investment capital. Beidacang Group does not need to spend money to purchase the raw ingredients, and when the processed products are sold, the farmers will get dividends.”
“No…… if the farms invest with their harvest and crops, then how will those state farms operate? They will not be able to pay the farmers. Let the state farms owe the farmers?” Secretary Liu asked.
“That is the Ministry of State Farms and Land Reclamation’s problem. They would think of away. The Ministry can get funding from the central government, bank loans or get subsidies, etc. You all should know better in this aspect. Also, the state farms will only use their first year’s harvest to invest. From the second year onwards, the products will be sold, and the company will have money to purchase the raw ingredients. This way, Beidacang Group does not need to worry about the start-up capital and will also get a steady supply of ingredients.”
Zhang Ruiqiang lit a cigarette. He thought for a while and then gave a cigarette to Secretary Liu. Secretary Liu received the cigarette with both hands and turned away from Zhang Ruiqiang to light it.
Feng Yu stared at the two men in front of him. They were deep in thoughts and ignoring him.
Damn. When I was a stockbroker in my previous life, I am also a heavy smoker. How come I can’t stand cigarette smell now? It is torture to be surrounded by two smokers.
I must bring a cigar next time. If they start smoking cigarettes, I will smoke a cigar. Let’s see who can tolerate the smoke!
After the cigarettes were finished, Zhang Ruiqiang raised his head and looked at Feng Yu: “What about the rest of the money? How can we solve it?”
“Report to the higher-ups. Longjiang Province is going to be China’s most significant agriculture province. Agriculture is one of the vital industry in China. You all are paving the way for the agriculture industry future development. The Central Government will not support? Is the Government supporting with only words? Shouldn’t they give some monetary support?” Feng Yu rolled his eyes. Getting money from the higher-ups. You all should be better than me.
“Are you saying that we do not even need to set aside any fund and will be able to set up this company with just a proposal?” Zhang Ruiqiang’s eyes opened wide.
“What’s new? I am just giving you ideas. Are you still thinking that I am lying to you? Shouldn’t the Government provide the funding? This company is a pilot project. Shouldn’t pilot projects get the funding from the country and supported with government policies? Also, this is not a shell company. We have set up the distribution channels.”
“Since when did we set up the distribution channels?” Zhang Ruiqiang was confused. They had not even started Beidacang Group, and you claim that the distribution channels have been set up? Are you asking me to lie to the higher-ups?
Feng Yu patted himself in the chest. “I will take care of all Beidacang Group’s products. I guarantee Beidacang Group’s profits. I dare to ensure that if the products are quality products, it will not be left on the shelves and the payments will be swift. I can even help with the branding for free.”
Feng Yu gave Zhang Ruiqiang an “I am very helpful. Quick, praise me!” look. But Zhang Ruiqiang just rolled his eyes.
“You will take care of all the products? You will be in control of the company’s distribution. That’s the company’s lifeline. How can we hand it over to you?” Zhang Ruiqiang asked.
“Hah. You all want to set up the distribution channels yourselves? Even I give you 3 years, you all will also not reach 50% of my distribution channels now. I can even export the products to overseas, like Europe and the US. Can you all do that? It will be considered a success if you all can sell the products out of the Northeast provinces. The Baijiu, milk powder, etc. brands you mentioned earlier. The furthest you all can sell those products, is only in Liao Province?” Feng Yu said with his arms crossed. His legs were crossed and purposely shaking. He had an annoying look on his face.
Zhang Ruiqiang was quiet. What Feng Yu said was the truth. If the Provincial Government have Feng Yu’s distribution channels, Longjiang’s economy would be one of the best in China. They can’t even set up a strong trading relationship with Russia.
But Feng Yu’s Tai Hua Trading was different. Other than agriculture produce, the whole province’s total export to Russia could not be compared to a single Tai Hua Trading!
Also, Feng Yu was always able to sell his latest products all over China and overseas in a short time. There was no way the Provincial Government could do this. Also, if they got Feng Yu’s help, they could tell the higher-ups that the company will have no problems with their sales. They only need to set up factories and start production.
“Even if we do not need to worry about the sales issue, but will the higher-ups agree because of this reason? What if they only approve a small amount of fund?” Zhang Ruiqang asked.
“Have you heard of crying babies will get the milk? This type of getting funding from the higher-ups depends on your connections and proposal. Connections will be up to you all. I believe the leaders in the Provincial Government will have some links with the higher-ups. As for the proposal, it will depend on how you all paint a beautiful picture.”
Crying babies will get the milk? What analogy was this?!
But after Zhang Ruiqiang thought about this seriously, it was really like what Feng Yu had said. Usually, if the leaders did not make use of their relationships with the higher-ups, they will not get favorable policies issued by the Central Government. But this analogy was too crude.
Also, painting a beautiful picture in the proposal? This sounds like they were trying to cheat the higher-ups.
“We will take care of getting in touch with the various departments in the Central Government. How should we write the proposal?” Zhang Ruiqiang asked.
“This is up to you all too. I am also not the one managing this company. I don’t need to write this proposal for you all, right? Unless……, you all give me some shares!”
“Fat hope! You want shares for writing a proposal? You are already so rich. Leave some for the rest.” Zhang Ruiqiang was scolded. Feng Yu cannot be considered greedy for money as he donated a large amount of money every year. But this brat wants a share of whatever business that is profitable and tries to take advantage of everything.
“See… We have differences. You don’t know how to write the proposal and don’t even know how the company would operate. I am the one who gave you all this idea. Do you know that in other countries, there are consulting firms which specialize in this? They charge consultation fees, and the rates are very high. Why can’t I charge you all some consultation fees? Do you know that the companies in the southern region have consultants? The consultants’ salaries are even higher than the General Managers in some companies!”
“This is impossible. Do you think the higher-ups will agree if an individual is one of the shareholders in this company?”
“Are you saying that I should work for free and not get anything in return? Brother Liu, look at your leader. If he is doing business, I am sure he will not have friends!” Feng Yu complains to Secretary Liu.
Secretary Liu: “……” Manager Feng, I am begging you. Can you don’t complain to me about my leader? You make it sound like we have been discussing about my leader behind his back. Are you trying to get me into trouble?
“You help us with the proposal, and I will give Tai Hua Processed Food Company some subsidies. Is that fine?” Zhang Ruiqiang replied angrily.
“Ahhh……. That’s more like it. Come, Brother Liu, I will start to speak now and you record the notes.” Feng Yu felt better when he heard Zhang Ruiqiang’s promise.
