Chapter 110 Not for the Purpose of Making Money

Zheng Yuan suddenly started to wake up. Quan Bangqing's words woke him up and he pondered in his heart.

"Make money first!"

"That makes perfect sense. There's no telling when this damn market will become unsalable again. Two years ago, the roadside of the purchasing station was filled with abandoned peppers."

Zheng Yuan has been growing peppers for several years and is very familiar with the pepper market.

In 2002, the price of chili peppers dropped to a freezing point, from a high of or cents per pound to a few cents per pound.

The cooperative suffered losses that year, and in the later stages of sales, some purchasing stations even refused to accept the products.

In 2003, Tianhe set up a demonstration base to promote new varieties. With Tianhe's support, he chose peppers again.

Fortunately, the price of peppers has been stable this year, with fresh peppers always being around 4 cents per pound.
In addition, Tianhe’s seeds are good, the yield is high, and the benefits are also decent.

But this year, the situation is uncertain.
The market was good last year, and farmers wanted to make a fortune this year, so many of them expanded their planting areas.

There are also people like Quan Bangqing who switched to growing chili peppers this year.

One year you make a profit, one year you break even, and one year you lose money. This is the norm in the planting industry!
Thinking of this, Zheng Yuan left Quan Bangqing who came over to chat and walked towards his own cooperative.

Quan Bangqing asked, "Hey, where are you going?"

"Prepare to have workers harvest fresh peppers and store them in the warehouse."

“It’s not even August yet?”

"While it's still 5 cents per pound, make the money now."

Quan Bangqing shook his head and said, "That's wrong. The price of dried pepper is high this year, so it must be more profitable to sell dried pepper!"

Zheng Yuan ignored him, contacted the workers, arranged the corresponding turnover baskets, transport vehicles and other materials, and planned to start picking the next day.

Now is the peak season for production and sales, and there is no shortage of fresh pepper buyers around Lan City.
Moreover, Tianhe has already built a cold storage warehouse near the place of production. The fresh peppers can be picked and stored on the same day, which can preserve the quality of the fresh peppers to the greatest extent.

In the days that followed,

Zheng Yuan’s cooperative ships four to five thousand fresh peppers almost every day.

I put the money in my pocket early.

There are many smart people like Zheng Yuan. Generally speaking, the price of fresh pepper is below 0.6 yuan per catty, and the profit of buying dried pepper will be higher.

When the price of dried peppers is lower than 6 yuan per catty, farmers are more inclined to harvest fresh peppers.

But farmers have long been frightened by the market!

The planting area has obviously increased this year, and no one can predict the price in the future.

Although the price is only 0.5 yuan per catty now, the yield per mu is over 5000 catties, so the profit is considered good.

Zheng Yuan and others' inference was not wrong. The pepper planting area in Long Province has indeed expanded a lot.

Tianhe Seed Industry saw the clues from its seed sales.

Jiuquan, the breeding base of Tianhe Seed Industry.

The original seeds and propagation bases of corn, wheat and vegetables are clearly separated by isolation zones, and a little further away from the propagation bases is the office area of ​​Tianhe Seed Industry.

The office area and the expansion base are completely isolated, as distinct as two worlds.

After finishing his work in the capital, Guo Yang returned to Jiuquan without stopping.

Tianhe Seeds' vice presidents Yan Qun and Qu Yang have been arguing recently as they have a disagreement on how to deal with the possible unsold peppers.

Qu Yang and Yan Qun sat on the leather sofa in Guo Yang's office, one on each side, with anger in their eyes.

"Through statistics on the inventory data of distributors in various regions, the sales volume of Tianjiao No. 1 seeds is close to 6 catties, and the sales volume of Chihong No. 1 seeds is close to 5 catties. The actual sales volume has exceeded 4000 million yuan."

Guo Yang nodded with satisfaction and said, "The situation is not bad. What about the market share of the two A-level markets in Long Province and Xinjiang Province?"

Yan Qun hurriedly took over the conversation and said seriously: "This is the problem. Tianjiao No. 1 has sold nearly 1 kilograms in the province, not counting the dealers' inventory! The planting area of ​​a single variety is close to 25 mu, and the market share exceeds 60%!"

"Although it is not clear yet how much peppers are grown in the province this year, it is definitely much more than last year. If such a large area is unsalable, the impact on public opinion is hard to predict."

Qu Yang responded by saying, "It is up to the farmers to choose what to plant. No one can guarantee that farming will make money."

"Then how did you promote it in the first place? High returns have always been the theme of your promotion!"

"The yield of Tianjiao No. 1 is indeed high. Can we blame the seed company for the bad market conditions?"

"The farmers don't care about you..."

Watching the two people arguing, Guo Yang suddenly asked,

“How are sales in Xinjiang Province?”

Qu Yang and Yan Qun looked at each other briefly and calmed down a little. The boss's seemingly casual question made them feel a slight change. They seemed to be more calm!

It seems that the trip to Beijing has really eased the company's financial pressure.

Qu Yang said: "Xinjiang Tianjiao No. 1 sold about 2500 kilograms of seeds, with a market share of nearly 40%."

Guo Yang did a quick calculation and was a little surprised. He said, "Isn't Xinjiang Province developing a red industry? How come there are only a few hundred thousand acres of peppers?"

In his impression, the pepper planting area in Xinjiang Province in the future should be over one million acres.

Qu Yang smiled awkwardly and looked at Yan Qun.

Yan Qun crossed his arms and explained: "Xinjiang's red industries mainly refer to tomatoes, wolfberries, safflower, red peppers, pomegranates, jujubes, mulberries and carrots, and red peppers are just one of them."

Guo Yang nodded.

"It seems that the XJ dried chili industry still has great potential for development. It is the right strategy to treat it as a Class A market."

"As for the slow sales of peppers, has Quanwang Company already received enough orders for dried peppers?"

Yan Qun smiled bitterly and said, "Because Quanwang's processing plant is in Gangu and we acquired Quanwang, farmers in Gangu are growing peppers like crazy this year. Especially in the mountainous areas, peppers are planted all over the mountains and even on the edges of the fields."

"We have learned that many farmers in mountainous areas were influenced by the propaganda and thought that this year, like last year, Tianhe Company would guarantee a minimum purchase."

"Not only in Gangu, but also in many other impoverished counties, farmers have learned about Tianhe Seeds through various channels such as television and radio."

"Tianjiao No. 1 seeds, a high-yield pepper machine; less investment, better returns. Our slogan is spread by word of mouth in rural areas."

Guo Yang glanced at Qu Yang, who had no expression on his face, and said with a smile, "This is a good thing. It proves that our marketing work is solid."

There was some worry on Yan Qun's face.
"The processing capacity of Quanwang Company and its several branch factories is about 2.5 tons of dried chili peppers, which is about 12 to 13 mu of output."

"Although it is a voluntary action by farmers, the planting area is too large and the yield is too high, which not only hurts the farmers but also hurts themselves."

"The happiest people will be the small processing companies that were squeezed by us and barely survived."

Guo Yang also fell into deep thought.

Tianjiao No. 1 is indeed a bit too popular in Longnan Province, and its 60% market share of seeds is indeed a bit exaggerated.

If this happened in America, you would be accused of antitrust violations.

I will sanction you in minutes!

But is there anything wrong with Qu Yang’s marketing strategy?
There is nothing wrong with the promotional method, there is no false propaganda in the advertising slogan, and Tianhe’s brand has been effectively promoted.

The only problem is that the price is too low!

20g of seeds per pack only costs 9.9 yuan,
Although it has put competing foreign seed companies at a loss, it has also laid the groundwork for blind expansion of planting in production areas.

"So what you mean is that Tianhe will provide a safety net for farmers?" Qu Yang asked back.

Yan Qun immediately became annoyed, his face filled with anger.

"F*ck, you mean I'm a traitor? Where were you when those county and city officials came to my office every day?"

"I said this is to expose the hidden dangers in advance and find solutions in advance. If problems really occur, the reputation that has been accumulated with great difficulty will be lost!"

Qu Yang was not to be outdone, "You can blame the seed company for the poor sales, but you think you are cooking?"

Seeing that the two were about to quarrel again, Guo Yang waved his hand.

"It's not a big problem."

"This bottom Tianhe can be bought. It is really unsalable. We will purchase it at the farmers' planting cost price."

The office fell silent. The scorching sun shone through the window onto Yan Qun's exposed slender, dark arms, causing him to shiver.

He really wanted to say that the company could make further efforts in the sales of cold chain storage and logistics transportation.
Then they will squeeze out a little more and make the farmers suffer a little, and the matter will be over.

But I just couldn't say it.

The planting cost price for farmers is not high, and Tianhe has a complete cold storage and sales system that can minimize losses.

As for Qu Yang, he was much more straightforward and even in the mood to make jokes.

"The company finally saw the dawn of profitability, but now it is losing money again."

"When you do agriculture, you can't do it for the purpose of making money."

Guo Yang drew the curtains to block out the glaring sunlight, thinking that this was also an opportunity to extend the industrial chain.

There is a high probability that you will make money.

(End of this chapter)