Chapter 982 Denong
Xu Liang took the document from Liu Qiangxi’s hand and briefly flipped through it.
There is too much content, involving many detailed provisions and explanatory text.
I can’t finish it in a while.
“Let’s talk briefly.”
Liu Qiangxi nodded and said.
“At present, Denong Group has five business divisions including seed industry, agricultural supplies chain, Tunhe agriculture, animal husbandry and sugar industry.
The group’s overall plan in 2006 is also based on the five-year business division.
In the seed industry, our main goal is to deeply cultivate large grain crops, especially soybeans and corn with a certain foundation, and strive to become the largest high-quality seed enterprise in China.”
< br>Big grain crops mainly refer to agricultural types with large planting areas and related to the national economy and people's livelihood.
At present, there are four main types of staple crops in China: rice, wheat, corn and soybeans.
“Our plan is to go hand in hand with research and development and mergers and acquisitions.
By investing 15% of our income every year in the research and development of new hybrid varieties, we will continue to iterate and develop better corn and soybean varieties.
The advantage of mergers and acquisitions is that they can quickly occupy the market and increase the revenue of Denong Seed Industry.
Moreover, there are many domestic seed industry companies and there is a lack of leading companies, which provides a good basis for our merger and acquisition strategy. Basics.
Having said that, thank you again.
You have eliminated all debts of Denong Group, allowing us to have ample financing space and obtain more capital to develop the company. ”
When Xu Lianggang acquired Delong Group, he divested all the debts of Delong.
This also included Denong.
But after more than a year of development, Debt inevitably appeared again under Denong.
After the Tenglong plan was successful, he once again canceled the debts of his affiliated companies in order to pay less capital gains tax.
So Denong got another benefit.
Xu Liang smiled and said: "Do you have a goal?"
"There are two, Qilu Seed Industry and Tianzhong Seed Industry in Hebei Province, both of which mainly produce improved corn and wheat varieties. , with assets of about 300 million Huaxia yuan, has certain sales channels and influence in Qilu, Jizhou, and Huizhou provinces.
It is a large and medium-sized company in the Huaxia seed industry.
After the acquisition, it will not only greatly supplement the production capacity of Denong Seed Industry, but also allow us to cover most of North China. "
The main markets of Denong Seed Industry are in Xinjiang, Inner Mongolia, Shaanxi and the three northeastern provinces. The North China market is not large.
Seeing that he didn't say anything, Liu Qiangxi continued.
“In terms of agricultural supplies chains, we will continue to implement the strategy of direct operation of regional core stores and naming of ordinary stores...”
The most basic stores of agricultural supplies retail stores can be directly brought to the village.
It is impossible to directly operate a small store of this level because the administrative costs are too high.
Denong’s approach is to name such small stores and let them become its lower-level distribution channels.
Then set up a directly affiliated third-level direct-operated store in the "town" on the upper level.
Of course, not every town has one.
Generally, only large agricultural towns have one direct store.
"This year we plan to increase the number of directly operated stores in Qilu Province from 739 to 1,128, covering basically all cities and towns. We will increase the number of stores in Hebei Province from 421 to 900, initially completing coverage of major cities and towns.
At the same time, we will enter Henan Province and open 100 directly operated stores, laying the foundation for further development in the future.
The number of branded stores will increase from 1,792 to 4,000. ”
When Liu Qiangxi first took over Denong, Denong had only about 1,000 directly-operated stores in Qilu and Hebei provinces, and there were zero branded stores.
Later, the company was reorganized and the number of directly operated stores did not increase much, but the number of branded stores grew rapidly.
It drove the entire Denong retail chain's sales to skyrocket, and its net profit also increased significantly.
Liu Qiangxi is really a very morale-boosting person.
Just like Li Yunlong in Bright Sword, he has a natural personality charm that makes people unite around him.
Believe him and respect him.
Xu Liang can’t even do this.
"About the operation of the store.
The third-level direct-operated stores (township level) have reduced their area and only sell pesticides, fertilizers, agricultural films, sprayers and other commonly used agricultural supplies.
The second-level direct stores Business stores (county-level) increase the retail sales of agricultural machinery and garden machinery, and provide crop disease diagnosis services.
First-level direct-operated stores (prefecture-level cities) are not much different from second-level stores in terms of business scope. , It just adds a logistics transfer function.”
Xu Liang nodded. He is also from a rural area and knows very well what agricultural materials are commonly used in rural areas.
The setting of the third-level store is very reasonable.
For large agricultural machinery, it is enough to have one sales point in a county.
Any more is a waste.
“How do you plan to diagnose crop diseases in second-level stores?”
“If farmers come to our store with branches, leaves and soil, then thirty yuan can be used for pathological identification, and We will also provide detailed diagnosis and treatment plans
If it's going to the countryside, it's one hundred yuan. "
Xu Liang smiled and shook his head, "It's probably difficult to make a profit with your plan. …Don’t believe it? ”
“Mr. The income is completely a drop in the bucket. "Liu Qiang said to the west.
"You are right. Compared to a year's harvest, not to mention tens of dollars, even hundreds of dollars are a small amount of money. But you missed one point.
There are basically just a few types of pests and diseases in rural areas.
Farmers are not stupid. Over time, they will judge for themselves and go directly to the agricultural supply store to get medicine. Just like us ordinary people who have a cold or fever, we know what medicine we should buy.
They will not spend extra money and time to go to the county seat.
If there are, there are very few.
My family is engaged in farming and greenhouses. In my impression, my parents have never seen crop diagnosis and treatment. "Xu Liangdao.
When he was a child, he still remembered that there was a shop in town that provided this kind of service, and it was equipped with a microscope and made it look decent, but that was in the 1990s.
Disappeared directly after entering the millennium.
He doesn't know the specific reason, but if it makes money, I believe it will definitely not be this result.
"Let's do this. You can do a few pilots first and see the effect before deciding whether to promote it to the whole company."
Liu Qiangxi nodded and agreed.
I also felt relieved.
He was really afraid that Xu Liang would deny him directly based on his own experience.
If crop diagnosis and treatment develops, it will become the selling point and important profit point of the Denong agricultural supplies chain.
He didn’t want to give up easily.
“Tunhe agriculture is limited to China’s current land situation. It is difficult for us to increase the area of agricultural land, so we mainly focus on deep processing of agricultural products.”
During the Delong era, Tunhe Agriculture opened four large-scale farms in Xinjiang Province, controlling 400,000 acres of land, growing tomatoes, wolfberries and other cash crops.
These lands in Dandelon are modern farms developed on wasteland, and are similar to Israel's water-saving agriculture.
The investment cost of this type of farm is higher.
And it is difficult to promote on a large scale.
After all, Xinjiang Province’s water resources are limited.
After Denong took over, he invested tens of millions more to establish two 100,000-acre farms.
But turning wasteland into high-yield agricultural land requires more than just water.
It is also necessary to put in various organic matter to increase nutrients and turn the sandy soil into soil where crops can grow.
With sufficient financial support, this process will also take three or four years.
It is too difficult to recover costs simply by farming.
This is also the reason why Liu Qiangxi wants to do further processing.
However, the development of deep processing was not just his own idea. Tunhe Agriculture in the Delong era had this idea, but they focused most of their attention on finance.
There is simply no funding to move this forward.
“This year we are tentatively planning to develop four types of deep-processed products: tomatoes, wolfberries, jujubes and apricots.”
The four products are all products with a solid agricultural foundation in Tunhe.
Especially for tomatoes, during the Delong era, there were already 12 tomato processing plants, with an annual output of 300,000 tons of large-package tomato paste, 5,000 tons of tomato powder, and 10 tons of lycopene. It is the second largest tomato company in the world.
Although the apricot jam is a bit inferior, it still has the capacity to process 100,000 tons of fresh apricots and concentrate 3,500 tons of apricot pulp annually.
“Develop ‘Tunhe brand’ primary processing products such as tomato paste, dried tomatoes, bagged wolfberry, dried jujubes, and apricot jam to extend the value chain and create more revenue.” Liu Qiangxi continued road.
“Xinjiang Province is rich in dried fruit resources. In addition to the previously mentioned, there are also grapes, walnuts, etc. Tunhe Agriculture can carry out deep processing based on these resources.” Xu Liangdao.
“We think so too, but this year we only plan to develop tomatoes, wolfberries, jujubes and apricots first. After we have some experience and make money, we will consider going further.”
"Don't be greedy for perfection and move forward steadily. Not bad.
However, the foundation of Tunhe agriculture is the farm. In addition to the continuous development of deep processing of agricultural products, we must also continue to expand the company's farm area."< br>
Liu Qiangxi said: "Mr. Xu, the cost of developing farms in Xinjiang Province is too high. It is difficult for us to make much money during the 20-year lease period.
If the same funds are invested, In other aspects, you will get higher returns.”
The longest land lease period in Huaxia is 20 years.
After 20 years, even if it is leased again, the rental fee for agricultural land will be much higher than that for wasteland.
This means that rental costs have increased significantly.
"Old Liu, after so many years in business, the biggest truth I have realized is: no matter what happens, you must leave yourself a certain amount of room.
Although now, we have control over The largest retail channel for domestic tomatoes, dates and other agricultural products
But we are not without competitors
Even in the tomato field, where we are most confident, there is Xin Zhongji. ”
There are two giants in the tomato field in Xinjiang Province.
One is Tunhe, and the other is Xinzhongji, a Xingtuan Enterprise that started out as a decoration company.
This company started in the 1990s He started to engage in the import and export trade of agricultural products in the mid-1990s.
The founder Liu Yi observed that the consumption of tomatoes in the CIS countries was considerable, which was a good business opportunity.
So he invited Roland Berger to provide him with a tomato paste industry consulting report. After investigation and judgment, he officially prepared to build the first tomato paste production plant in New China Base.
In 2000, New China Base was listed on the XPCC index and began to focus on the tomato industry from diversified operations.
With the entry of Xinzhongji and Tunhe, China’s tomato industry has moved from the production and operation stage to the stage where capital is king.
With the help of ammunition delivered by the capital market, the two companies control 70% of the tomato processing capacity in Xinjiang Province, and tomato paste output has quadrupled in four years.
In 2001, Tunhe became the world's second largest tomato processing company after Morningstar of the United States, and Xinzhongji, supported by the Xinhua Group, ranked second in the Chinese market.
However, behind the development of China's tomato industry, it is not China but the Italians who really make the big profits.
Italy is the most influential force in the global red gold trade and the most important promoter of the tomato processing industry. This is due to three factors: war, immigration and old Mexico (Mussolini).
(End of this chapter)