Chapter 95 A Food Factory for Free



After Mayor Yang received Zhao Xiaohai's call, he thought about it and picked up the phone to call the provincial leader in charge of Overseas Chinese Friendship Trade.

"Leader, there is something I want to report to you in person."

"Come on."

Arrived at the leader’s office.

Mayor Yang repeated Zhao Xiaohai's words. The leader nodded and said, "This is a good idea. We export to earn foreign exchange, and our goal is to use the foreign exchange to buy the materials we need domestically."

"Last year, China imported over two million tons of fertilizer, but this share is not enough for the provinces. Our country is now vigorously developing fertilizer companies, and they mainly produce nitrogen fertilizers. The gap in urea is very large."

"Material exchange is like exporting our products and importing the goods we need, except that the materials are fixed to fertilizers."

Mayor Yang said, "Leader, Xiao Zhao said this batch of fertilizer was produced in the Soviet Union. Do you think there is any problem?"

The leader smiled.

"What problem could there be? Didn't we start ambassadorial-level dialogues last month? The situation has eased considerably. Besides, supplies are supplies. We bought them from the Hong Kong free market and followed international business rules. What problem could there be?"

With the leader's words, Mayor Yang finally felt relieved.

After returning to his office, he called the city's unit responsible for seeds and fertilizers and asked their Director Gong to come over and inquire about the specific price of fertilizers.

The national import price for one ton of urea is 320 yuan, and the actual price is 340 yuan. 20 yuan is other additional costs, and they also sell it at 340 yuan.

"How much fertilizer do you think our province can consume?" asked Mayor Yang.

Director Gong complained, "Leader, we can eat as much as we want. There are purchase limits now. The villagers want to buy more, but each household is only given 10 kilograms, which is not enough. But these 10 kilograms are enough for two or three mu of land, and they are used very sparingly."

After understanding the situation, Mayor Yang felt relieved and called Zhao Xiaohai long distance again.

"Xiao Zhao, how many tons of fertilizer can you get?" asked Mayor Yang.

"5,000 tons."

Mayor Yang was a little excited when he heard this number. He originally thought that one or two thousand tons would be good, and five thousand tons was really a lot.

"What's the price?"

"160 US dollars per ton." Zhao Xiaohai increased the price from 120 per ton to 160 per ton. His own trading company also needs to make money, and it is not a public enterprise.

Mayor Yang calculated in his mind that according to the current international exchange rate, 160 US dollars is equivalent to 288 RMB.

This price is more than 30 yuan cheaper than importing from Japan.

"Did the other party say what goods they wanted to exchange?" asked Mayor Yang.

"Not yet. I gave them a copy of our product list. They are currently selecting and the specific details still need to be negotiated." Zhao Xiaohai said.

"Xiao Zhao, the higher-ups have approved this transaction. As such, the preliminary work will be fully entrusted to you. Please contact me as soon as there is any progress."

"Okay, leader."

Zhao Xiaohai came to Frunze's trading company. Frunze's trading company was much larger than Zhao Xiaohai's Yishida, and the general manager's office was also luxuriously decorated.

"Zhao, would you like wine or coffee?"

These Russians drink alcohol like water, but the last time Zhao Xiaohai drank with this guy, he really didn't scare him.

"Forget the wine, give me a cup of coffee."

The coffee pot was bubbling, releasing a fragrant aroma.

"Zhao, have you agreed?" Fu Longzhi asked anxiously.

He couldn't help but feel anxious, as he was making money for himself.

"Yes, I agreed, so I came to you to prepare for the next step." Zhao Xiaohai said with a smile.

"What's the price?" Frunze asked with concern, because this involved how much he could earn personally.

"I quoted our side $125."

Frunze calculated in his mind that at $125 per ton, 5,000 tons would be $625,000. According to their export price, $120 per ton would be $600,000. With an extra $25,000, he could get $12,500.

Frunze was very satisfied with this income.

You know, although he was in charge of imports and exports before, he didn't make much money.

"Furunzhi, can you lower the price a little bit so that we can make more money?" Zhao Xiaohai asked.

Fu Runzhi frowned slightly.

"This price is subsidized, much cheaper than the price of urea on the international market, and is already the lowest price allowed."

Zhao Xiaohai spoke slowly and in a low voice:

"Fertilizers are susceptible to moisture, especially during sea transportation. It's normal for some to be damaged and sold at a lower price."

That batch of fertilizers was destined to get wet at sea before it was even loaded onto the ship. Some things are truly destined.

As for who is heaven.

It’s hard to say.

Fu Longzhi looked at Zhao Xiaohai.

"Zhao, you are more suitable to be a businessman than me."

"I'm doing this for our own benefit." Zhao Xiaohai said with a smile.

Frunze nodded. "That's right. This batch of fertilizer got a little damp during transportation. The customer originally planned to return it, but thanks to my efforts, they finally agreed to buy it for $110 per ton. This earned foreign exchange for the country and prevented even greater losses."

Zhao Xiaohai gave a thumbs up.

He originally thought that Frunze would be lucky to lower the price by $5 per ton, but he didn't expect him to be even more ruthless and directly lower it to $10.

In this way, each of them will have a profit share of 37,500 yuan.

"Frunze, have you selected the supplies you need?"

My dear, there is more to this chapter. Please click on the next page to continue reading. It will be even more exciting later!

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