Chapter 916 Monopoly on American Ginseng Planting



Chen Xia, Xu Yuan and the children had a great time in California for a few days. The little ones no longer wanted their mother, but only wanted their father.

Fortunately, there are not many paparazzi these days, and we don’t encounter Chinese tourists, otherwise there would be a real risk of being exposed.

If Gu Lin knew that she had a "sister", the consequences would be unimaginable.

Gu Lin is relatively easy to coax, but what she fears most is her parents' family. They are all cunning people, and it is not easy to coax them.

In addition to visiting his wife and children, Chen Xia came to the United States this time for another important matter, which was to go to Wisconsin to acquire several farms.

Wisconsin is located in the northern United States, almost across the country from California.

The area is a hilly region with a cool climate, cool and pleasant summers, continuous hills and pristine fertile soil rich in various minerals, making it extremely suitable for growing American ginseng with unique benefits.

Yes, Chen Xia has put his stamp on the American ginseng industry in the United States.

Anyway, Jade Fund Agricultural Company has been acquiring farms, so how to maximize the profits of the farms is the important issue at hand.

Jade Agriculture now owns about 30,000 acres of farms in the United States, mainly concentrated in California and neighboring Nevada.

Chen Xia looked at the company's financial books. In 1991, after deducting costs and expenses, the total profit was only 6 million US dollars.

He has invested a full $200 million in acquiring these farms.

This data made Chen Xia very dissatisfied.

However, the income from the livestock industry and agricultural product planting industry is really not high, the added value is too low, and the labor cost in the United States is too high, which leads to the low profit.

So Chen Xia wanted to open up new sources of income, such as a farm in California that mainly grows grapes, and then use this to establish a winery that can be exported to China in the future.

Later, as more and more nouveau riche emerged in China, many of them began to pretend to be cultured and started drinking "high-end" red wine. However, they did not even know how to decant the wine, and they would just pour it directly into their mouths after opening the bottle cap.

Then China became one of the largest importers of red wine in the world.

Those who are rich drink famous liquors, and those who are poor drink blended liquors from supermarkets. Anyway, they drink for the fun and atmosphere.

Chen Xia is preparing for wine production in California, and then he will return to the domestic media to package it, get a few celebrities to endorse it, and find some self-media to write some soft articles.

This immediately raised the level of his wine, and it became a high-end, classy and high-end foreign liquor.

Once it has the reputation of being a famous foreign liquor, how can the price be low?

Yes, it can’t be cheap. The cheaper you are, the less likely people will buy it. So you have to sell it as expensively as possible.

Don't blame Chen Xia for boosting others' morale and diminishing his own prestige. Otherwise, how could we never finish 1982 Lafite? Or are there still so many idiots who would order it?

Anyone with a little bit of intelligence would not drink it, but it is the most well-known and has the highest sales volume. How can we justify the mentality of the nouveau riche?

Another crop that can be grown is soybeans.

In his previous life, Chen Xia had watched the news and learned that soybeans were at the forefront of the Sino-US trade war. This showed that soybeans accounted for a large and profitable share of trade between the two countries.

This thing is suitable for large-scale mechanized cultivation, is very easy to manage, and has high profits.

Finally, the United States has an agricultural product that is very suitable for cultivation. Yes, it is classified as an "agricultural product" in the United States, not a "medicine."

The best place for producing American ginseng is Wisconsin, which is why Chen Xia came all the way here this time.

Don't underestimate American ginseng.

In 1992, the mainland Chinese market had no interest in it and the hype had not spread, so the annual export value of American ginseng in the United States was only a few million US dollars.

Anyway, farmers in Wisconsin and the opposite province of Quebec don’t really like to grow this stuff. They would rather raise more cattle and sheep.

But by 2020, mainland China alone imported several hundred million US dollars worth of American ginseng from the United States, and the total import volume in East Asia and Southeast Asia was about 1 billion US dollars.

These American ginsengs entering the country are different from domestic American ginseng. The imported goods are sold at a higher price. Once resold, the profit is at least three times. It is that high.

Anyway, the import of American ginseng has been monopolized by a few manufacturers. They have the right to set prices and their profits are high.

Moreover, imports only account for a small part of China's American ginseng market, and most of it is grown domestically.

In 2020, the national retail sales of American ginseng reached 9 billion yuan. Combined with Hong Kong, Macao, Taiwan, and the Chinese community in Southeast Asia, this market is also quite astonishing.

There are not only ginseng slices, but also American ginseng powder, American ginseng capsules, etc. The products are diverse, the packaging is more exquisite than each other, and the price is higher than each other.

As for whether there is any definite therapeutic effect?

Anyway, the FDA thinks it is useless, but Chinese people like American ginseng very much and believe that it has the effect of clearing heat, detoxifying and relieving fatigue.

As a qualified profiteer, oh no, capitalist, Chen Xia would certainly not miss an opportunity to make a small fortune.

By then, we can produce and sell our own products in a one-stop service, and the profits will be fully guaranteed.

The American ginseng sold by other companies are all grown domestically, but the American ginseng sold by Longfeng Pharmacy are all imported from the United States. Is it high-quality?

Four Seasons Group is the largest grower and producer of ginseng produced in Northeast China and American ginseng produced in China. It has monopolized the industry. After a series of packaging and capital speculation, it is hard not to make a fortune.

Anyway, there will always be something to collect IQ tax. Instead of letting others collect it, Chen Xia might as well collect it himself.

Chen Xia is a super VIP and black card user of Citibank in the United States. If he needs anything, he can get it done with just one phone call.

Chen Xia took Xu Yuan with him, and the two of them went to investigate in person while living their own life as a couple.

Who told the three little ones to go to school?

Wisconsin is located in the north. Several northern states of the United States are relatively sparsely populated, and land prices are much cheaper than in California.

With the help of the intermediary, Chen Xia finally purchased more than 30,000 acres of farms, all of which were connected together. Of course, the price was also high, a 30% premium.

You have to raise the price, otherwise you won’t be able to buy a contiguous farm, and Chen Xia doesn’t want to have conflicts and disagreements with his neighbors over what to plant and raise.

You have to know that farmers in northern states are relatively conservative and stubborn, and are not very polite to outsiders.

But as long as you have the money, you can make them kneel down and call you daddy. Principles and dreams are worthless in front of Franklin.

Of course, even if the premium is 30%, it seems like a high price, but you will not lose money in the end.

As the world's nouveau riche began to immigrate to the United States, the price of farms, like houses in Beverly Hills, continued to rise.

These wealthy foreigners hardly ever look at the price, they just keep buying.

The "American Dream" is always a dream of the rich, not the poor...

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