Chapter 236 Expansion
The provincial leader came to the ranch for inspection and praised him in person, "Xiao Xu, your ranch is really well run. Everywhere I go, there is a vibrant life and everything is flourishing. I am really pleased."
"This is all thanks to the support of the leaders," Xu Lingjun said modestly.
"It would be great if all the projects we support could go as smoothly as yours." The leader sighed. Since the reform and opening up, they have not been complacent and have tried to make some changes. Unfortunately, due to various reasons such as being located in the inland, conservative thinking, and a lack of economic activity, they have been able to achieve very few results in the end. Xu Lingjun can almost be said to have the most outstanding results.
Comparing the two, he had higher expectations for Xu Lingjun, so he talked about the current predicament of the province. "When the production contract system was just started, the ranches in our province were a little better, and all indicators had improved significantly. But in recent years, they have started to fail again. The speed of increasing output has been declining again and again, and some ranches have even regressed."
Xu Lingjun nodded, "This is inevitable, because animal husbandry still requires scale. If the scale is too small, the potential is relatively limited, and it is impossible to make much progress. Because many investments require costs, individuals and families often find it difficult to afford this expenditure."
"Yes, for example, the foreign fine breeds I saw just now. Everyone knows that these fine breeds of cattle and sheep can be brought in and raised so that they can be exported for foreign exchange. But how many ranches can afford the expense of introducing fine breeds? This is not a small amount." The leader immediately realized what Xu Lingjun was talking about.
After chatting for a while, the leader felt that the groundwork was almost done, so he began to test the waters, "I think we have basically used up all the grasslands that can be used on our ranch. If we allocate a few more grasslands to you, can you continue to expand your production scale and increase exports?"
"That's true in theory, but grassland alone cannot generate productivity. It must be well managed," Xu Lingjun answered cautiously.
Since the leader said so, he must want to allocate grassland to the ranch. However, most of the current grasslands have owners. Allocating grassland means merging with other ranches. Xu Lingjun may not want all the ranches.
Blind expansion of an enterprise is not necessarily a good thing. If too many things go wrong in the ranch allocated by the leaders, it would be better not to have it.
"Of course, of course. The reason why our ranch is doing so well is because we have a capable management team!" The leader simply spoke out. He asked his secretary to take the map and pointed to several nearby ranches and said, "These ranches are not doing well right now. If you are willing to take them over, we will allocate them to you and let you manage them!"
"As for the original management team, don't worry. They will all be transferred away when the time comes, and they will definitely not hold you back!" The leader now has high hopes for Xu Lingjun, so naturally he wants to clear away obstacles to help the ranch's development.
"If that's the case, then we are willing to accept it!" Xu Lingjun was worried that these people would spoil the whole barrel. Now that the leader has provided a guarantee, there is nothing to worry about.
For animal husbandry, we can all find ways to obtain talent, good breeds, and technology, but grassland is a unique resource. In a few years, even if we have money, we may not be able to get it. Now that the province is willing to allocate grassland, we must seize this opportunity.
If we think in the long term, in the future, not only in this province, but also in Inner Mongolia, Xinjiang, Northeast China and other places, a large number of ranches will face operational difficulties. If Xu Lingjun can set a good example in advance, perhaps ranches in other provinces will ask him to contract them, just like paper mills all over the country are competing to invite Ma Shengli to contract them.
By then, we will be able to build a large agricultural group with grasslands across multiple provinces. This window period will not be long, and it will be too late after companies such as Yili and Mengniu have grown and become stronger.
If they could seize this window of opportunity and take the initiative in advance, there would be no problem for Yili and Mengniu, and there would not be so many bad things happening in the domestic dairy industry in the future.
"Okay, then we will deal with the remaining issues of these ranches as soon as possible and try to hand over the ranches to you cleanly." The leader was very happy to hear this and immediately started to make arrangements when he returned.
After a while, these pastures were handed over to Xu Lingjun one after another. All the troublesome people left, and the herders were eager to join in. The welfare of the Chi Le Chuan Ranch was well-known for being good. Now they followed too. Isn't that a pie in the sky?
Xu Lingjun read out the ranch's rules and regulations to them at the meeting. Most people had no objections. These rules were not actually that strict. It turned out that all the ranches had such regulations on paper, but they were not strictly enforced.
Now that they have the carrot of dividends dangling in front of their noses, everyone is willing to strictly abide by the rules.
In recent years, the ranch has cultivated a lot of talents. Young people such as Guo Lei can now stand on their own. Li Xingfa, Zhang Zengxiang and others have also made great progress. Xu Lingjun selected a group of talents and sent them to these ranches to manage them permanently. He also recruited some people from these ranches to work in the factory.
These ranches quickly got on track, animal husbandry developed rapidly, and some new factories were built to carry out deep processing of the ranch's output. The ranches turned losses into profits in the first year, and the output value increased significantly in the second year. The results were very impressive.
The provincial leaders were very pleased and found Xu Lingjun again, wanting to allocate more pastures to them and build the Chi Le Chuan Ranch into a star enterprise in the province.
When Xu Lingjun went to Beijing for a meeting, he met leaders from other provinces. They also showed great interest in the model of the Chi Le Chuan Ranch and wanted Xu Lingjun to contract a ranch from their place.
The scene that was envisioned earlier gradually became a reality. Xu Lingjun was not carried away by the victory in front of him, nor did he feel the urgency of the window period. He immediately agreed to all the requests, but chose a few ranches with better conditions to start trying.
There is still a shortage of talent in the Chi Le Chuan Ranch, and the current transportation and communication conditions are not perfect. It does not yet have the conditions to establish a national group enterprise. If it expands blindly, it will only end up like Ma Shengli. It is better to take steady steps first.
In this way, Chi Lechuan Ranch first contracted two ranches in Inner Mongolia and Hebei for pilot projects, and then spent another two years to digest these four ranches.
Once these four ranches were on the right track, the talent pool of Chi Le Chuan Ranch was further enriched, the working model was further mature, and the domestic environment was further liberalized, the formal large-scale expansion began.
There is one more chapter after dinner
(End of this chapter)
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