Chapter 204: Start (2)

She didn't mention the financial income for the following months, and in fact there was no need to mention it.

With Momo Baizha's gross profit margin deliberately controlled to a pitifully low level, and the original plan to expand the capacity of the joint breeding project being blocked, it has to purchase a large amount of exogenous raw materials. Given the current soaring price trend, it would be a blessing if it can barely cover the operating costs in the next few months, and there will be no income at all!
Seeing Lu Yingying looking at him and the others with burning eyes, an old man in his 60s pondered for a while, then gritted his teeth and said, "They say thieves divide the spoils. If you want to divide the spoils, there must be something dirty to divide... Seeing that the old hen is almost starving to death, can you still just stare at the two eggs in the chicken coop?"

As he spoke, the old man twisted his face and slammed the table heavily: "I am here to express the position of the village. As long as you can help the company overcome the current difficulties, the dividends at the end of this year...will be discussed next year!"

This person is a representative sent by the village to Qingfeng Food. Although he is not the village party secretary or village director, his words carry as much weight in the village as the village director. Now that he has expressed his position, the matter is at least 70% settled.

Seeing this, Liu Xianfu also nodded: "Although our company is just a township enterprise, the treatment is not much lower than that of the drilling company, and it is even stronger than other units. Under the condition that the salary can be guaranteed to be paid normally, I think... unless the parents have died and they are in a hurry to hold the funeral, otherwise, no one in the company should be so concerned about the dividends and bonuses at the end of the year, right?"

When he said this, Liu Xianfu's face had an indescribable coldness and cruelty, and the scar at the corner of his eye was twisted into a flesh-colored centipede.

Hearing Liu Xianfu's naked threat, the middle and senior management of the company present at the meeting shuddered and nodded in support.

In fact, as long as Mo Mo Bai Zha can get through the difficulties, most people will not mind too much the dividends and bonuses at the end of this year... Although Liu Xianfu is not a good person, he comes from a humble background and he will be generous when he should. Given the temperament of this "second-in-command", if Mo Mo Bai Zha can really get through the difficulties, next year's dividends and bonuses will definitely be doubled for them in other forms.

Seeing that everyone had expressed their opinions, Lu Yingying breathed a sigh of relief: "Since everyone is willing to put aside their personal gains and losses for the sake of the project, there is hope for this matter."

As she spoke, Lv Yingying's tone became serious: "Because prices are rising too fast, the price of raw materials offered by the units in Hebei Province is now 3.8 yuan per chicken... and they are only willing to sell whole chickens now, not just chicken breasts."

"So the actual cost of the main raw material of the chicken steak has soared to 1.37 yuan per serving, which is far lower than the 0.6 yuan per serving of our own supply chain... You have to know that transportation, refrigeration, cutting, marinating, distribution and other links all require fees and costs. This 1.4 yuan per serving is based on the other party's guarantee that the spoilage rate is less than 2%. Otherwise, this number will only be higher."

"In fact, if we add in the cost of raw material loss, frying, labor, rent, utilities, wages, bonuses and store manager rights in the franchisee link, and spread it evenly based on the current sales volume of chicken chops, the comprehensive cost of each chicken chop after cooking is actually more than 2 yuan... This is higher than its selling price. It can be said that the more you sell, the more you lose."

At this point, Lu Yingying's voice was a little excited: "But can we adjust the price of chicken steak... No! Don't ask me why, everyone knows the reason."

"Can we have another limited sale like we did when the project was first launched... No! This will only completely destroy the reputation of Mo Mo Bai Zha!"

"Can we hold an internal mobilization meeting like we are doing now, asking store managers not to receive dividends this year and employees not to receive bonuses, so as to spread the operating costs as much as possible... This is even more impossible!"

Lu Yingying slammed the table hard, her expression somewhat defiant: "In fact, not only can we not deduct the dividends of those store managers and the bonuses of the employees, we must also increase the bonus distribution!"

"Not only can we not raise the price of chicken chops or limit the quantity, but we have to sell them at 1.5 yuan per serving, and offer discounts and promotions from time to time, so that those small shops that dare to imitate us can't even make a comeback!"

“Every crisis brings opportunities… Momo Baizha is facing not only a huge challenge, but also a golden opportunity to consolidate its reputation and internal cohesion!”

"But all of this requires money!"

"According to the additional deficit costs caused by the shortage of raw materials for 110 million chicken chops every month, plus the cost of raw material loss in various links that are beyond our control, that is 60 yuan; plus the costs of various aspects to appease people's hearts and improve internal cohesion, preliminary estimates show that we have to invest at least 100 million yuan in reverse every month!"

"350 million is enough for us to survive the three and a half month window, but it's obviously not enough... To be on the safe side, we have to leave ourselves a psychological window of at least until the end of January or the beginning of February... In other words, we must be prepared for a five-month window of raw material supply!"

A 5-month window?

Everyone was stunned, and then many people came to their senses.

At the end of January or the beginning of February, that's when the dust settles on the new leadership of the drilling company, right?

Ok……

In this case, we may have to be prepared for a window period of up to 5 months.

only……?
Lu Yingying looked around at the frowning people and said, "Given the company's current situation, it's not realistic to come up with more money to help the project get through the difficult times. Therefore, it is very important to use the 350 million to get through the five-month window."

As she spoke, Lv Yingying turned to another page of her notebook: "You may not have noticed that in our previous chicken raw material purchases, the cost of the chicken itself actually only accounted for 4% to 5%; the remaining more than half of the cost was wasted elsewhere;"

"Of these, logistics and transportation costs account for about 30%. After all, they are all shipped from other counties and cities, and some are even shipped from neighboring provinces. Given the current road conditions, the cost is naturally high;"

"Secondly, the cost of cutting a whole chicken accounts for about 10%... Although we also have a cooperative cutting factory and the cost is not high, it is an indisputable fact that the cost of cutting frozen chicken is higher than that of fresh chicken."

"Secondly, the loss of chicken during transportation due to spoilage, the cost of restocking in the cold chain, and the cost of separate transportation are all figures that cannot be underestimated."

“There are some costs that we cannot avoid, such as split-line transportation, cold chain storage, and meat spoilage within a reasonable range;”

"But some other costs can be reduced flexibly...such as long-distance transportation and the extra costs incurred by cutting frozen chicken!"

Um? ?

Everyone looked at Lu Yingying with some confusion, not understanding what this meant.

Lu Yingying grinned: "It's actually very simple. Since the cost of long-distance transportation is high, we can just reduce the amount of raw materials purchased from areas that are too far away as much as possible;"

"Since the cost of cutting frozen chicken is higher than that of cutting fresh chicken, we can just try our best to turn the whole chickens we send over into fresh chickens!"

Tugou pointed in a certain direction and said, "Although Panjin Animal Husbandry Company and Hongxing Farm have withdrawn from the joint breeding project, their broiler farms are still open... Although they are no longer strategic partners with us, ordinary business cooperation can still continue... You know, in Linyi, apart from our company, no other unit has the ability to consume so many broiler chickens."

Everyone was stunned, then they understood.

Yup!

The initial investment costs of these chicken farms are not small, and they are reluctant to scrap them.

Moreover, not only are the outputs of these three units huge, but these 817 broilers are also different from other breeds of chicken. The breast and thigh parts have been selected and strengthened, so it may not be easy to find suitable buyers.

In this case, even if they still have some emotions, it seems that there is really no better choice than selling the broilers to Qingfeng Food.

We are all in Linpan County, and the distance between each other is only 20 to 30 miles at most. Not only is the transportation cost much lower, but the broiler breeding project is jointly developed by both parties, and everyone is aware of the various costs. If you don't find a second large buyer, even if you want to ask for a sky-high price, you won't be able to get it at all.

In other words, if the broiler chickens sold by the farm in Hebei Province to Qingfeng Food are 3.8 yuan per bird at the factory, the factory price that these three units can offer can only be 2.5 yuan per bird at best.

Just by cutting one piece, you can save a lot of money. Compared with this, the cost difference between cutting each frozen chicken and cutting a fresh chicken is simply not worth mentioning!

"Hey! Manager Lu, this is a good idea. I will send someone to spread the news elsewhere tomorrow, saying that there may be an outbreak of fowl plague at Panjin Livestock Company and Hongxing Farm. Not only have broiler chickens died one after another, but the rest of the chickens have also been infected with the disease... I'll see which company dares to buy their chicken meat except for selling it to us!" Manager Li from the marketing department had an excited look on his face, as if he saw the scene of people from those companies humbly begging him to buy their broiler chickens.

Although this method was a bit despicable, it was definitely effective in this age of underdeveloped information, so everyone laughed.

Aren't you guys so stubborn that you can just bypass us and send us a letter requesting to terminate our strategic partnership?

When they go around in circles and find that they have no choice but to beg us for cooperation, their expressions will definitely be very interesting!

………………

40 minute later.

This internal meeting of middle and senior management of Qingfeng Food had to be suspended.

The reason was very simple. Qin Xin, who had gone on a business trip a few days ago, suddenly came to the door.

Although everyone in Qingfeng Food is now quite dissatisfied with Xintai Company, Xintai Company is their superior unit after all, and Qin Xin is the nominal head of Xintai Company. From any perspective, Liu Xianfu needs to greet and entertain them personally.

Manager's office.

Qin Xin, who always had a trace of fatigue on his face, pondered for a moment after listening to Liu Xianfu's report, and turned his head to look at Lu Yingying, who was specially invited by him: "Manager Lu, this way of dealing with it... is it Director Yang's idea?"

Lu Yingying looked at him with some doubt and wariness. After thinking for a while, she shook her head honestly: "No, Yang Mo never expressed any opinions from beginning to end. I figured out this way to deal with it."

Qin Xin seemed relieved when he heard this: "No wonder."

Looking at the expression on his face, it seemed as if he was saying that if this idea was thought up by Yang Mo, he would be really disappointed.

Lu Yingying was somewhat dissatisfied with his expression. She frowned but ultimately said nothing.

Seeing this, Qin Xin smiled apologetically, then sighed: "Boss Liu, Manager Lu, do you know why I rushed to your company right after I got back this morning?"

Liu Xianfu smiled and shook his head: "Mr. Qin is in a high position and is highly regarded by Vice Presidents Tang and Feng. He must have some important instructions for coming here... Please let Mr. Qin know."

Listening to these seemingly flattering but actually slightly sarcastic words, Qin Xin knew that this guy was very dissatisfied with Xintai Company and Vice President Tang because of the recent events, and he also disliked himself, a commander without any troops.

He smiled bitterly and said, "Old Liu, please stop making fun of me. How can you not know what my situation is as the manager of Xintai Company and the deputy manager of Momo Baitou?"

After inspecting Panjin Livestock Company, the two of them drank a lot of Taiwanese liquor that night, so they established a somewhat close relationship, so Qin Xin was not too polite when talking to him now.

After a little self-deprecating remark, Qin Xin turned around and looked at Lu Yingying: "Manager Lu, I came here today to tell you a piece of news;"

"Just this morning, Vice President Feng, who is in charge of relations between industry and agriculture, invited the three agricultural and livestock units to resume cooperation with the drilling company in the name of mediation, and the heads of the three units also agreed;"

"It's just that because they have such a bad impression of Qingfeng Food, they refused to continue cooperating with Qingfeng Food on the grounds that your company was too overbearing. They also said that as long as it's not Qingfeng Food, they will cooperate with anyone for the sake of Vice President Feng's face."

"So, Vice President Feng came up with a compromise plan, letting these three companies bypass your company and directly re-establish a cooperative relationship with our Xintai Company... Strictly speaking, they are establishing a cooperative relationship with Xinsheng Catering Management Company, which was just established two months ago under our Xintai Company, and they are also positioned as strategic partners."

Xinsheng Catering Management Company?

Is this the new company that was originally established with the intention of participating in the operation and management of Momo Baizha, but ended up not meeting the standards and could only help the Quality Control Department of Qingfeng Food with odd jobs?
However, given their level, even if they reached a cooperative relationship with those three units, what could they accomplish?

Looking at the two people looking at each other in bewilderment, Qin Xin sighed, "To be honest, although the Xinsheng Catering Management Company has a lot of employees, it is just a shell. Vice President Feng chose it as the main body of cooperation. In addition to the reasons that everyone knows, he actually just wants this empty shell."

As he spoke, Qin Xin took out a cigarette and handed it over: "While Vice President Feng was mediating, according to reliable information, Vice President Tang and his team had already obtained the production technology authorization from a braised chicken company in Yucheng;"

"At the same time, Momo Baitou also officially launched a project, planning to invest 1600 million yuan to build a large-scale roast chicken production plant near Panjin Livestock Company as quickly as possible...For this purpose, Vice President Tang also used the limited foreign exchange quota within his authority to place an order for two TYP-B series rotary vacuum chamber packaging machines with an import and export company in Qingdao."

"So... you know what this means, right?"

Large-scale roast chicken factory?
Right next to Panjin Livestock Company?

Does this mean that the broiler chickens sold by those three units will become raw materials and be directly supplied to this roast chicken farm?

But the problem is...

Although the braised chicken in Dezhou is very famous, and there are braised chicken specialty stores all over the streets, the competition is also extremely fierce... In order to grab channels and increase sales, several braised chicken companies in Yucheng and Dezhou are fighting fiercely;

Linyi is just a small county town. Although it is supported by three oil companies, its eating habits and customer base make it impossible for a large-scale roast chicken factory to survive.

It is not difficult to build a large-scale roast chicken factory, but the problem is...

After these roast chickens are produced, who will they be sold to?

You can't possibly dream of transporting these roast chickens to big cities like Jinan, Dezhou, and Yucheng to sell them, right?
That's someone else's territory. Is there any place for you to stand?
Seeing the two people who were confused, Qin Xin smiled helplessly: "Old Liu, Manager Lu, after all, you have little contact with Vice President Feng and Vice President Tang. Not only do you not know them well enough, but you also don't know the actual situation and resources and connections of the drilling company."

"I can only tell you that when someone reaches the level of vice president of a drilling company, especially someone like Vice President Feng who is in charge of relations between workers and farmers, the energy that can be mobilized is beyond your imagination... In fact, anyone who can reach the position of Vice President Feng clearly knows where their strengths are and is good at mobilizing resources."

"In fact, it is because the current situation is a bit sensitive that many methods are inconvenient for Vice President Feng and his team to use. Otherwise, let alone a large-scale roast chicken factory, even if there are several projects larger than this, they can help you smoothly."

At this point, Qin Xin looked at Tugou very seriously and said, "So, Manager Lu, I seriously suggest that you stop discussing the so-called plan today. You are not actually on the main battlefield, so just wait quietly for the results... If you really want to make some moves, it's better to listen to Director Yang's opinion before making a decision."

Upon hearing this, Lu Yingying frowned.

Although she could see that Qin Xin did not lie to her, and although Qingfeng Food was the most affected, it was indeed not the main battlefield. However, after these words were really spoken, it was really difficult for her to accept emotionally;

Very hard to accept...

(End of this chapter)

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