Chapter 356: The Most Profitable Industry of the Farmers' Alliance



"Ladies and gentlemen, I believe that our country will develop better and better in the future. In this era, people's daily demand for food has gradually changed from eating enough to eating well!"

"Grasping the society's demand for quality is the general trend of the future. It is also the only direction that many ordinary villages can grasp to survive and even get rich. Even farmers must learn science and understand the more advanced planting direction of modernization."

"Otherwise, no matter how much we don't want to see the countryside disappear, the tide of the times will eventually drown you and me, leaving no mercy."

"Mr. Xu, you are absolutely right!"

The secretary of the Taoyuan Township inspection team was the first to support Xu Shang's point of view. Rural cadres who are able to take the initiative to go out for inspection naturally want to make a difference and want to find a group of people who can change the increasingly declining fate of the village.

Now, Xu Shang has pointed out a way for them.

——The future path for high-quality, high-net-worth, branded agricultural products and agricultural and sideline products.

Of course, it doesn't mean that they have given up traditional farming for food, but they feel that it is time to hand over the task of growing food to more efficient and advanced mechanized planting, and start to engage in more sophisticated and technologically demanding high-value-added agricultural product projects.

If farmers want to move towards a more promising future, they can no longer deceive themselves by growing only enough food for their own consumption on one acre of land and working hard with their backs to the sky and their faces to the earth.

The enthusiasm of the Taoyuan Township delegation was instantly ignited, and they became more and more interested in "high-net-value" agricultural products.

"Mr. Xu, I would like to ask, for a chicken like this, how much profit can a farmer get in the end?" The head of Taoyuan Township asked curiously.

"According to the current distribution ratio, Xiaobai Village collective can obtain 36% of the total profit from the final profit after deducting costs."

"In addition, transportation and warehousing currently account for 18% of the total profit, and the sales terminal takes the remaining 36%. The last 10% of the profit will be used for 'advertising and building a micro-brand' image."

Is it so thin?

The inspection team immediately began to review the situation. They initially thought there was something fishy going on, but they didn't expect it to be so open.

Chairman Xiao Xu continued, "To be honest, the profit of mountain-caught chickens is very high, so the proportion of transportation and storage costs has been reduced. This cost also includes some losses in fresh transportation. Currently, the Agricultural Alliance is studying how to reduce losses and strive to reduce transportation and storage costs to 15% within half a year."

Ah this!

I thought you were already very thin.

I didn't expect you could be more detailed!

The cadres of the Taoyuan Township inspection team were stunned.

In fact, at the very beginning, everyone thought that the Farmers' Alliance was just a makeshift group of villages. After a closer look, they felt that it was small but complete. Now...

Good boy! Good boy!

So professional?

You have to align yourself with the most advanced international standards!

"Mr. Xu, we heard that you seem to have spent a lot of money on these industries. So where did you get your profits from? Was it deducted from the '36%' profit that Xiaobai Village collectively obtained?"

"No, as Nongmeng holds shares, it has already obtained corresponding profits from transportation, warehousing, terminal sales, and building a quality image. We at Nongmeng are building our own transportation team, our own warehousing center, and our own brand operation team."

"Take the current brand operation as an example. You all know that I have my own blog account... I advertise products and strictly abide by the relevant rules and collect advertising fees."

At first glance, it feels like they are lining their own pockets when they hear that they are charging themselves advertising fees.

The inspection team thought about it carefully and decided that if Chairman Xiao Xu wanted to make money from it, he had plenty of ways to do it. After all, he had all the channels in his hands. Why use such a controversial method... It would be better to formulate unified standards and set an example, which would be more open.

It’s not that the inspection team is hypocritical, but that the same thing was done by different people.

Some people really promote people of talent regardless of their relationship, but some people are just hard to describe...

"Mr. Xu, could you please tell me what this 36% is? How much can the villagers here earn in a year?"

“…This involves commercial secrets.”

Chairman Xiao Xu naturally cannot tell everything to others, especially when it comes to specific income. Money is a tempting thing and it is inevitable that some people will have unnecessary thoughts.

After all, Chairman Xiao Xu is not a fund manager. He does not need to brag about how much money he has made to lure more people in to harvest them.

“Everyone should want to know whether high-net-worth agricultural products can make money, or how much money can be made, right?”

"Yeah yeah!"

The inspection team nodded their heads quickly; they just wanted to know this.

“So, I will take you to the industry that has the highest profit or profit margin among all the industries that our Farmers’ Alliance has currently invested in.”

Highest?

The inspection team immediately became interested and followed Chairman Xiao Xu into the car and quickly arrived at the mushroom workshop in Jiagoutun.

Walking into the mushroom workshop, Xu Shang introduced: "The mushrooms here have a unified purchase price. This purchase price is the cost. After deducting the cost, the profit distribution is that Jiagoutun collective can take 30%, offline including overseas sales terminals take 30%, and the remaining 40% is used for publicity and advertising."

Of course, it doesn’t mean that Chairman Xiao Xu took all the money just because he shot a video…

First of all, shooting videos costs money. You have to pay the actors and the shooting team. And the biggest expense is advertising and buying traffic on overseas video websites.

Of course, Chairman Xiao Xu also got a share, but he felt clear conscience about it.

After all, he is the only one who is doing the publicity now, but what about later?

Don’t you need to pay others to promote your product?

Do you also expect others to work for free?

It would be better to establish unified standards from the beginning, clearly designing how much money should be spent on publicity, how much money should be spent, the specific indicators, processes, and reimbursement.

If you want to do business for a long time, you have to be clear about the distribution of profits.

Not taking a penny may seem like a noble act, but in fact, everyone knows that it is just a momentary whim and is by no means the basis for long-term survival.

“These mushrooms are the most profitable industry of the Farmers’ Alliance?”

"Yes, this is the last batch of matsutake mushrooms."

Generally, Matsutake mushrooms are produced around September, but the climate in Yunnan Province is warm, so it will be delayed a little. Jiagoutun is deep in the mountains, with warm winters and cool summers, so the production season can be even longer.

But no matter how long it is, it will eventually come to an end, so this is the last issue, but it is precisely at this time when other places have long stopped producing it... that it is the most expensive.

The same is true for black truffles and other fungi. The price is the lowest when the production is the highest, and it becomes more expensive as time goes by.

After all, rare things are valuable!

The representative of the Taoyuan Township delegation picked up a matsutake mushroom and asked:

"The highest? How high can it be?"

Continue read on readnovelmtl.com


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