Chapter 354 You can master the terminal
At Cargill, Hann was promoted step by step from the bottom. He has rich professional experience and is familiar with all aspects of agricultural production, transportation, and sales.
However, within Cargill, Hann has encountered a glass ceiling. In fact, this is basically the case for foreign multinational companies. If you want to enter the senior management, you must either have an MBA, a lawyer, or study financial futures. Engineers and technical experts are hardly given any opportunities.
If Hann wants to further develop his career, he generally has only two options: one is to go it alone. I won’t go into details about this, that is to set up a farm management company and be the boss by myself; the other is to be a farm steward.
!
What is a farm steward?
It’s those rich people who are relatively showy. After they buy a farm and pasture, they find someone to help take care of it.
However, in a big forest, there are all kinds of birds, and the same is true for rich people. Some rich people have the purpose of investment, and some just want to show off. It is not only the Chinese who have a land complex, the dream of the owner of a large manor is also very popular in the upper class of Europe and the United States.
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Facing Rong Guang, Han En was talking eloquently. He thought that Rong Guang was also a rich man (actually he was not wrong. He laughed and cried).
"Rong, the rate of return on agricultural investment has never been high, generally only 2% to 4%. If you only consider the rate of return on investment, buying a farm is not a very good idea. Agricultural production increasingly tends to be determined by sales, and profits are also
The focus is on slaughterhouses and processing plants..."
Rong Guang quickly understood the situation Han En introduced. Isn't this the big studio system in the film and television industry?
In the big studio system, the upstream and downstream industries will be squeezed to the limit, allowing you to make a trivial amount of money. The only guarantee is the huge profits of the big studios.
The same is true in the entire agricultural industry chain. All profits go to slaughterhouses and processing plants, and everything else is squeezed into small profits. Among them, farms suffer the most because they can only sell to slaughterhouses and processing plants, which requires
Survive based on orders.
Therefore, many foreign farms have a lot of idle farmland. This is indeed partly due to rotational farming, but more importantly, if I only get these orders, who can I sell them to? The utilization rate of farmland is not the same.
Not very high.
The other is the direction of investment. European and American farms are the best because their markets are the most mature. South America is slightly worse, and the worst are poor countries in Asia and Africa.
The reason is actually very simple - in the operation of large farms, the initial investment is high, but the output is very low; the later investment is very small, but the output is very high.
This is like a small-scale Brazilian farm. It only costs 460,000 US dollars to purchase, but the cost of reclamation is about 5 million US dollars. It is enough to buy 10 farms of the same size.
Since farms in Europe and the United States are basically mature land that can be planted, they are expensive for a reason. In comparison, Latin America is a little worse. However, Latin America has always been the private land of American capital. How can it really be bad? That's not it.
Not much different.
As for the poor countries in Asia and Africa, they not only need to open up wasteland, but also have very high corruption and security costs, and there are certain political risks. Similarly, when buying a farm, the land price can be extremely cheap, but it requires a huge investment. So.
Not a good choice at all.
Don't tell me, Rong Guang was greatly inspired by the skills he specializes in. He smiled and asked: "Hann, so speaking of it, the Brazilian farm I bought is not very cheap?"
Han En was happy, and he said tactfully: "There should be a better choice. Let's talk about that Brazilian farm. Although I haven't been there yet, I have discovered these problems: First of all, the property rights need to be clear. What are the problems?
Although there is no rent for 10,000 hectares of wasteland, the lease is only for five years, right? What if you sell it to someone else after five years? Wouldn’t your previous investment be in vain? Although the possibility of this is relatively small, it is still possible.
You can’t help but think about it. You can either buy it directly or simply return it.”
Rong Guang nodded, this was indeed a lack of consideration. In other words, Li Jiashan was dazzled and just held the idea of taking nothing for nothing, without considering any initial investment.
Hann continued: "There are also transportation problems and sales problems. Because the farm is relatively remote, a large amount of agricultural products cannot be sold at all. We need to find powerful grain and oil merchants as soon as possible and get their orders. In this regard, I have
I have a lot of experience and a lot of connections, and I will try my best to handle it for you. Let’s get a...well, a reasonable price!”
Rong Guang has basically understood the difficulties that Han En mentioned. It should be said that his family's dream of being a member of the foreign service is still relatively blind, and it is not a good investment.
However, Rongguang's confidence comes from God's perspective. On the one hand, as long as he waits for more than ten years, the prices of agricultural products will rise sharply, and farm prices will rise even faster, basically increasing by five to ten times. So in terms of business operations
You can accept a small loss, as long as the farm grows sharply, everything will come.
On the other hand, there is strong domestic demand for agricultural products. You can only be exploited by grain and oil merchants, but I can definitely transport it back to the country?
Thinking of this, Rong Guang smiled and said: "Han En, you don't have to think about sales. If it really doesn't work, I can handle it internally."
How much food can be produced just by destroying the farm? Let’s not talk about anything else. There are more than 10,000 people in the hometown of the countryside. Each person is given 1 ton of food rations. There are all kinds of fancy varieties. That’s not 10,000 tons.
Are you done? I can’t eat those folks to death!
Farmers! If we have this consciousness, can we not divide rations at the end of the year?
"Can you master the terminal?" Hann finally became interested and straightened up suddenly.
"What's wrong?" Rong Guang was a little confused.
Han En has become enthusiastic: "Rong, the terminal is king now! If you have a market, it will be easy. Oh, by the way, aren't you Chinese rushing to buy American soybeans? So that's the reason. If
In that case, your farm is relatively remote and should be near a port. In fact, Argentina and Uruguay are both very good places. In fact, there are other ways to buy a farm, which is to acquire local agricultural companies. They not only own their own farms, but also have transportation tools.
Warehousing, etc., some also include slaughterhouses and agricultural product processing plants..."
Listening to Han En's ramble, Rong Guang couldn't laugh or cry. Who the hell really wants to be a farmer? I just want to... raise donkeys!
Chapter completed!