Chapter 159 - 107: Difference
Although machines for harvesting oil-seed camellia were currently on the market, Jiang Miao was unsatisfied with them after looking into the data.
The main issue was that the oil-seed camellia industry was too small and labor-intensive. Furthermore, the plantations were typically located in mountainous regions, which hindered the adoption of mechanization.
With no market demand, no agricultural machinery company was willing to invest in research and development.
Once the new oil-seed camellia varieties were widely cultivated, specialized harvesting equipment would be necessary to further reduce costs. Otherwise, the high labor costs for harvesting would indirectly drive up the total cost of production.
This was a necessary step for almost any crop intended for large-scale production.
Relying solely on manual labor for harvesting was not only inefficient but also made it difficult to scale up operations.
Moreover, Jiang Miao had to consider another issue: younger generations were increasingly averse to traditional farming. Compounding this was the severe aging of the rural population, with most of the young and able-bodied workforce flocking to major cities.
By the time the oil-seed camellia industry took off, if it still relied on old-fashioned manual harvesting, there wouldn’t be enough young people in the rural areas to do the work, and the elderly would be too frail. This would become a major headache.
Besides, the company wouldn’t dare to hire the elderly on a large scale. Even for temporary positions, they had to minimize hiring anyone over the age of 55.
After all, the older people get, the more their health declines. Cardiovascular and cerebrovascular diseases are common, and if anything unexpected happened to them on the job, it would be a huge liability for the company.
Before he knew it, Jiang Miao had been reviewing documents for nearly an hour. He stood up, stretched, and then gave his instructions:
"I have a general understanding of the situation at the Gannan Branch. Tell Keji to step up infrastructure development. Also, at the camellia oil processing plant we acquired, add deep-processing equipment to make use of the seed-press cakes. Use the oil-seed camellia from the tens of thousands of mu of native varieties for the tests."
Jiang Miao quickly added, "One more thing. Sometime later, probably around the end of the year, the company will send over a batch of alfalfa seeds. Have him plant them in the clearings beneath the trees in the oil-seed camellia plantations after spring arrives next year."
"Alfalfa? Is that a type of forage?" Jiang Haibo asked curiously.
Jiang Miao nodded. "It’s a new variety. We just completed the genetic patent registration a few days ago. It’s a drought-resistant strain that can yield around 5,000 kilograms per mu when grown in the mountain undergrowth. We can get about two harvests a year."
"I’ll pass on the instructions." Although Jiang Haibo was unclear on the specifics of the alfalfa his boss mentioned, he knew from experience that every new variety the company introduced was exceptional. The fact that it warranted its own genetic patent spoke volumes.
"Also, have Keji build a small plant for processing it into grass meal. After all, with tens of thousands of mu of mountain alfalfa, we’ll be producing over a hundred thousand tons of fresh grass annually. It’ll be difficult to store if it’s not processed."
Jiang Haibo took the folder from Jiang Miao. "No problem. I’ll make sure Keji gets it done."
"Oh, right. During the National Day holiday, the company plans to hold an exhibition at Ciyun Mountain Park in the city. Have someone coordinate with the local district office."
"No problem. I’m sure the local district office will be happy to cooperate." Jiang Haibo didn’t foresee any difficulties with the matter.
After Jiang Haibo left with the folder, Finance Manager Ye Meijing knocked and quickly entered, instinctively moving to close the door behind her.
"Boss—"
"Don’t close the door."
Ye Meijing reacted instantly, quickly reopening the office door. Her face flushed with embarrassment as she apologized, "Boss, I’m so sorry. I’ll be more mindful next time."
"Yes, just be mindful in the future." Jiang Miao poured her a cup of tea.
"Boss, this is the financial report for September."
Jiang Miao took it and began flipping through the pages.
Ye Meijing sat ramrod straight as she gave him a brief overview of the financial situation. "The company’s regular income for September was 317.36 million yuan. We also secured a five-billion-yuan line of credit from the Rural Commercial Bank. However, expenditures have increased significantly. The Gannan Branch’s expenditures for September were 82.57 million, the Qiongzhou Branch’s were 27.18 million, and the head office spent 525.17 million."
It seemed the company’s expenditures were outstripping its income.
In reality, Hailufeng Company’s financial situation was excellent.
For the five-billion-yuan, five-year loan with a 3.4% annual interest rate, the monthly payment of principal plus interest was just over ninety million yuan.
The company’s revenue was still climbing steadily, so there was no need to worry. Furthermore, this massive loan had once again accelerated Hailufeng Company’s rapid growth.
Many projects had been launched simultaneously, including phase one of the Xinxiang Dongtian Employee District, the Xinxiang Little Nanshan Office Building project, the Bamboo Mountain Comprehensive Development Project, and Hailufeng Company’s solar power project.
There was also the Yandun Mountain Egyptian Catfish Indoor Breeding Farm, the Yandun Mountain Fish Ball Factory Renovation Project, and the Yandun Mountain Feed Plant No. 2 Renovation Project.
And the Urban Durian Plantation Transformation Project and the Gongping Town Durian Plantation Transformation Project.
The simultaneous launch of these projects consumed a vast amount of Hailufeng Company’s capital, making bank financing a necessity.
However, the local government was pleased to see Hailufeng Company take on such a large loan.
This was mainly because Hailufeng Company controlled the eel fry market, so there was no concern about its ability to repay the debt.
Nevertheless, some people were astonished and envious of Hailufeng Company’s frenzied expansion.
Take Gu Haijing’s younger son, Gu Yiming, for example. After being kicked out of the family company by his father, he started his own ventures in the city and currently runs a hotel and a KTV.