Starting with vegetable greenhouses in 1988

Chapter 243 Concentric (Large Chapter)
Li Zhenguo frowned deeply and spoke after a long while: "The first thing is to check the factory's 'Food Production License'. If the license is expired or does not comply with regulations, all the production will be in vain."

He counted on his fingers: "Then there's the equipment, which is extremely important. We need to carefully check the sterilizers, sealing machines, washing machines, and filling equipment to see which ones need repair and which ones need to be replaced, and make sure we understand the costs involved."

Li Zhe quickly jotted down notes in his notebook, the pen scratching across the paper: "If we're mainly making canned tomatoes, pickles, and green beans, are there any special requirements for the equipment?"

"Of course!" Li Zhenguo raised his voice a bit. "Green beans need blanching equipment, otherwise they won't be crisp enough; pickled cucumbers need a special pickling and fermentation workshop, and the temperature and humidity have to be just right; canned tomatoes need a crusher and pulper. None of these devices can be missing. Otherwise, you'll end up renting a factory only to find that the equipment isn't right and you'll just be throwing money away."

He took a sip of tea and continued, "Storage also needs to be taken into account. Fresh green beans and tomatoes need to be stored in cold storage, otherwise they will spoil in a few days; finished canned goods need to be stored in well-ventilated and dry warehouses, and they need to be big enough to be easily handled."

Li Zhe nodded as he took notes. These were all solid professional techniques; without his uncle's expert guidance, he would have been completely clueless. "Second Uncle, is there anything else I should pay attention to?"

“There’s also water, electricity, and transportation.” Li Zhenguo leaned back in his chair. “Canned food sterilization requires a lot of steam, the boiler room equipment has to be compliant, and the power capacity has to be enough for several production lines to run at the same time. Once the power goes out, the entire production has to stop.”

Logistics also needs to be convenient, being close to highways or freight stations makes it easier to transport raw materials in and finished products out, saving a lot on transportation costs.

Li Zhe nodded as he took notes. Power outages are indeed frequent in rural areas, and electricity is a major problem. It seems that not only do we need to communicate with the factory, but we also need to have a good talk with the town government.

"Second Uncle, I plan to produce 200 tons of canned goods from June to September. How many production lines will I need?"

Li Zhenguo took the pen and notebook from Li Zhe and started calculating on the table: "One production line works 8 hours a day. It can produce 1.2-1.5 tons of canned green beans and pickled cucumbers. The canning process for tomatoes is different, so it can produce 1.5-1.8 tons."

"From June to September, there are 120 days in total, and we need to produce 200 tons, which is an average of 1.67 tons per day. Considering the unstable equipment maintenance and raw material supply, it is safer to rent two production lines, which will allow us to adjust production flexibly."

"Where are the workers?" Li Zhe pressed.

“生产线核心岗位，每条线要 2个清洗工、3个分拣工、2个灌装工、1个杀菌操作工、1个封口检验工，两条线就是 18个操作工。”李振国想了想接着写：
"The support staff will need 2 warehouse keepers, 2 quality inspectors, 1 maintenance worker, and 3 packers, a total of 8 people. Add 1 production supervisor and 1 technician, and the total will be 27 to 30 people."

The notebook was filled to the brim. Looking at the densely written words, Li Zhe felt much more at ease: "Uncle, without your guidance, I really wouldn't know where to begin. I'm going to visit the cannery in a while, and I'd like to ask you to come with me and help me oversee things."

Li Zhenguo handed the pen back and patted him on the shoulder: "We're family, no need for formalities. Let me know in advance when you're going."

He felt a mix of emotions. He had worked in the cannery for so many years and was no less capable, skilled, or experienced, yet he hadn't even been promoted to technician.

My nephew is only in his early twenties, but he wants to open his own cannery...

Nine p.m.

Li Zhenguo unlocked the door and returned home, slightly drunk. The bed curtains in the living room were already drawn, and the chubby boy and his mother-in-law were asleep.

He moved even lighter, tiptoed into the bedroom, and saw his wife still sitting on the edge of the bed sewing.

After he closed the bedroom door, his wife, Chen Shuping, asked softly, "Why are you so late? What did your second son want to see you about?"

Li Zhenguo took off his clothes, sat on the bed, and briefly explained the situation to his wife.

Chen Shuping was stunned after hearing this, and asked incredulously, "The second son was doing well selling vegetables, why did he bother with a cannery? Your factory's business is not doing well, wouldn't he lose even more money if he started a cannery?"

Li Zhenguo thought for a moment and said, "Not necessarily. The second brother's friend can get export orders to the Soviet Union, which could revitalize a cannery."

The reason our factory has been working overtime these past few days, I heard, is because of a Soviet export order. Unfortunately, the quantity isn't large, and it's changed hands several times, so the price has been driven down significantly. It's tough business.

Chen Shuping's eyes darted around as she pressed on, "What does the second brother mean? Does he plan to have you work at his newly opened cannery?"

Li Zhenguo frowned: "The cannery hasn't been rented yet, things haven't been finalized, and he hasn't said it explicitly, but I feel like he's implying it."

"So what do you think?" Chen Shuping turned to look at her husband, and when he didn't speak, she nudged his shoulder. "I'm asking you a question."

“If I really work for the second son, he definitely won’t treat me badly. I’ll be a production supervisor, and my wages won’t be low. But after all, it’s a leased factory, and I don’t know how long I can stay.” It’s not that Li Zhenguo doesn’t trust his nephew, but as the head of the family, with elderly parents and young children to support, he can’t afford to be careless.

He sighed softly, "Let's see..."

……

Afternoon, No. 7 Courtyard in Suzhou Hutong.

Li Zhe stood in front of the north door, watching the workers carefully move the brand-new appliances. Once these appliances were installed, the house would be complete.

"Slow down, slow down, this refrigerator is very valuable." A man in his forties with calloused hands directed from the side.

Li Zhe handed over an enamel mug of herbal tea: "Master Zheng, please have some water."

"Thank you, Mr. Li." He took the teacup and drank it all in one gulp, wiped his sweat and smiled, "Your courtyard is really spacious and bright. I've been doing this for so many years and I've never encountered many like it."

Li Zhe smiled and asked, "Master Zheng, can this refrigerator be used directly after plugging it in?"

“You’ve come to the right place. You really can’t use it right away.” He took a few steps toward the kitchen, then turned back and instructed, “It needs to sit for at least two hours after we moved it in, until the refrigerant has flowed back properly, before we can turn it on. Otherwise, the compressor is prone to malfunction.”

Li Zhe nodded: "I've got it."

"Let's go in and put things away." Chef Zheng went into the kitchen first and asked Li Zhe behind him, "Mr. Li, where do you plan to put this refrigerator?"

Li Zhe pointed towards the door: "Put it here."

Master Zheng waved his hand: "Mr. Li, I suggest you change your location. With the window open here, the sun will cause the outer shell to age prematurely."

Li Zhe glanced at the kitchen again and pointed to the area further inside: "What do you think of that side?"

“That’s fine.” Master Zheng held up a ruler and gestured, then said to his apprentice behind him, “Move it over here slowly, don’t put it too close to the wall. Leave enough space on both sides and the back of the refrigerator, at least ten to fifteen centimeters, otherwise it will be difficult to dissipate heat and will easily break.”

After setting up the refrigerator, the group moved the water heater into the bathroom, determined its location, drilled holes, installed it, and connected the wires. Master Zheng was very responsible and personally checked every step.

Seeing Li Zhe come in, he pointed to the residual current device on the wall and said, "This thing has to be installed properly. The worst thing is to have an electric shock when you're taking a shower. Make sure the machine is a little far from the shower area, and the switch is at a height that's just right so you can reach it without bumping your head. Remember to unplug it every time you're done using it."

"I understand." Li Zhe nodded solemnly. Water heaters in this era were not as advanced as those in later times, so extra caution was indeed needed.

In the living room on the west side of the north room, a Peony brand television set is placed on a TV cabinet against the wall.

Master Zheng connected the power supply and helped with the setup. The moment the screen lit up, Li Zhe couldn't help but lean closer to take a closer look.

Master Zheng skillfully turned the knob: "Look how clear this is! If the image is crooked or there is no signal, it's probably because the outdoor antenna isn't connected properly. You can try to fix it yourself, and if you still can't, then come back to us for repairs."

After finally installing the washing machine, Mr. Zheng clapped his hands after ensuring the ground was level and leak-free: "Mr. Li, it's all set. You can use it with confidence. If you have any problems, just call the repair hotline."

"Okay, thank you." Li Zhe took out a pack of cigarettes and handed them out to several workers.

After the workers packed up their tools and left, Li Zhe carefully sorted all the warranty cards and instruction manuals for the appliances, clipped them together, and put them in the living room drawer.

The TV in the living room was still on, playing "Journey to the West." Although he had watched the series many times, it was still quite good as background entertainment. He leaned back on the sofa and let out a long sigh of relief. Just as he was about to take a break, there was a loud knocking at the gate.

Li Zhe stepped out of the living room and opened the courtyard gate, only to find a chubby figure blocking the entrance—it was Jin Baiwan, whose black coat was stretched taut by his belly.

"Brother Li, congratulations on your housewarming!" Jin Baiwan's voice boomed as he stepped aside to let Hong San behind him pass.

Hong San, dressed in a Zhongshan suit, held a rolled-up paper tube in his hands and smiled broadly: "Brother Li, I've been wanting to come and see your new home for a long time."

Li Zhe ushered the two inside, and as soon as Jin Baiwan entered the courtyard, he loudly looked around and exclaimed, "When I came here last year, it was just an empty shell. How long has it been? It's already so grand!"

Hong San appeared more reserved, his eyes curiously scanning the courtyard with its blue bricks and gray tiles, occasionally clicking his tongue in admiration. He had only been to the front yard before, and this was his first time visiting the back yard.

“You two have come at the perfect time. Let me show you around.” Li Zhe led them into the north room and introduced, “The north room has three rooms. The living room is on the left, and the dining room is on the right. The study is on the east side, and the east wing has been converted into a kitchen.” He then pointed to the west side, “That’s the bedroom. The furniture is all newly added. The west wing has been converted into a bathroom.”

When they reached the east wing, Li Zhe deliberately slowed his pace: "The east wing also has three rooms, which are specifically used to receive guests."

As soon as he entered, Hong San was drawn to the wooden tea table in the center. He reached out and gently touched the smooth surface of the table: "This table is really nice!" The tea table was paired with six round-backed chairs, and the lower closed cabinets were neatly stacked with tea canisters and tea sets.

The walnut wood flooring gleamed with a warm luster, while the bamboo carpets scattered throughout emitted a faint scent of herbs and wood. The tassels of the antique bronze chandelier overhead swayed gently in the breeze.

The north room of the east wing is a rest room, with a single bed covered with plain-colored sheets, and sunlight shining warmly through the window screen.

In the innermost entertainment area of ​​the south room of the east wing, there was a foldable wooden mahjong table. Jin Baiwan's eyes lit up: "This table is great. It can be used as a dining table, and when there are more people, we can play mahjong!"

In the bathroom converted from the east wing room, the white porcelain washbasin was polished to a shine and exuded a fresh soapy scent.

After touring the courtyard, the three sat down in the tea room in the east wing. Li Zhe brewed a pot of jasmine tea and poured a cup for each of them.

Jin Baiwan adjusted his teacup and took the paper tube from Hong San's hand: "Brother Li, since you've moved to your new house, Hong and I have been thinking for a long time about what gift to give you. Take a look and see if this suits your taste."

Li Zhe untied the rope and unrolled the scroll, revealing four slender, strong, and upright characters written in calligraphy: "Tranquility leads to far-reaching influence." The characters were well-structured and the turns were crisp and clean. Below the three characters "Written by Qi Gong" was a bright red seal.

"Is this an authentic work by Mr. Qi Gong?" Li Zhe's eyes lit up. Although he was a farmer, he had heard of this great calligrapher after living through the information age.

Hong San proudly gave a thumbs up: "Brother Li is indeed knowledgeable! My relative works at Rongbaozhai and specially picked it out for us. It's definitely genuine."

He then pulled out a receipt and authentication certificate from his pocket: "Look, this is a proper receipt, and it also has an expert authentication certificate."

Li Zhe carefully stroked the Xuan paper, feeling the strength of the ink, and felt a warm glow in his heart: "This is too precious, you've gone to so much trouble."

The two of them really put thought into giving gifts.

Jin Baiwan waved his hand: "Brother, let's not talk about that. It'll look really impressive to hang it in the study later."

After putting away the calligraphy and paintings, Li Zhe straightened his expression and began to talk about business: "Brother Jin, Brother Hong, I'm planning to buy 30 tons of canned goods next, with a total investment of 50,000."

I'll contribute 20,000 for 40%, Boss Shen will contribute 15,000 for 30%, and you two will each contribute 5,000 for 10%. There's also Su Mingyuan, whom you've met before. He's from the Russian Department of the Foreign Languages ​​Institute, which will be useful in future dealings with the Soviet Union. He'll also contribute 5,000 for 10%.

Do you think this is appropriate? Feel free to share your thoughts.

Jin Baiwan and Hong San exchanged a glance and nodded in agreement.

Li Zhe continued, "In addition, Mr. Shen gave a definite reply that the Sino-Soviet trade negotiations are going smoothly, and the Shen family elders can obtain Soviet foreign trade orders in a long-term and stable manner. Mr. Shen and I discussed it and decided to set up a cannery company, lease a cannery, and produce our own canned food brand."

Jin Baiwan was taken aback. He had suggested the idea of ​​leasing the cannery, but after discussing it with his wife, he felt that the idea was a bit rash: "Brother Li, it's good that you want to produce canned goods under our own brand, but the problem is that we don't understand canning. The technical issues are hard to solve. This is a new industry for us, and I'm worried that we'll be taken advantage of."

Li Zhe said, "Brother Jin, your concerns are valid; I've had similar thoughts. However, my uncle, Li Zhenguo, worked at a cannery in Beijing for over ten years and knows every aspect of canning. We could ask him for advice."

He's a cautious person and gave me a lot of advice. We can ask him to come along when we rent the cannery.

If he doesn't think it's suitable, we won't rent it; it'll be an extra layer of insurance.

Upon hearing Li Zhe's words, Jin Baiwan no longer objected, but a hint of worry remained on his face.

Hong San didn't hesitate too much and said, "I'll handle the business license. I know people at the Industry and Commerce Bureau, so it'll be faster. Brother Li, if you don't mind, I can also be the company's legal representative."

Looking into his sincere eyes, Li Zhe said, "Brother Hong, thank you."

Hong San rubbed his hands together and laughed, "Working with you gives me hope, this little thing is nothing."

Hong San knew that being a legal representative meant taking on responsibilities, but his involvement in the canned goods export business was entirely due to his relationship with Li Zhe. However, in terms of closeness to Li Zhe, he couldn't compare to Jin Baiwan. To integrate into the team, he had to take on more responsibility.

They chatted for a while about starting the company and roughly decided on the company's shares and name.

Hong San stood up to say goodbye: "I'll go and get the license sorted out right away, and try to get it done as soon as possible."

After seeing Hong San off, Jin Baiwan hesitated before speaking: "Brother, this foreign trade business is indeed profitable, but our main business is vegetable greenhouses. Is starting a cannery a bit...?"

"Not doing your proper job?" Li Zhe replied with a smile, breaking off an orange and handing him half: "Brother Jin, whether it's fresh vegetables or canned goods, it's essentially the same vegetable business."

Fresh vegetable prices fluctuate greatly, and bad weather can lead to losses; canned goods can be stored, making the market more stable. This is called deep processing of vegetables, an extension and expansion of the vegetable industry chain.

"Deep processing?" This was the first time Jin Baiwan had heard this term, but he could roughly understand its meaning.

"That's right. Fresh vegetables have low barriers to entry, but are easily affected by weather and supply and demand, resulting in volatile prices. If more people grow the same type of vegetable, the price will be lower. Deep processing can transform surplus raw materials into products that can be stored for a long time, such as canned goods, freeze-dried vegetables, and juice, thus stabilizing income."

Li Zhe ate a segment of orange and continued, "Deep processing has technical and equipment barriers that ordinary people can't learn even if they want to. The profits are more stable and sustainable. Moreover, you can build your own brand."

In Li Zhe's view, a well-known brand is an intangible asset, which is what he values ​​most.

He explained, counting on his fingers, "Simply engaging in low-end vegetable cultivation has limited future development and poor risk resistance. From planting, harvesting, and selling vegetables to making canned goods, the longer the industrial chain, the stronger the ability to resist risks."

Only by forming a complete vegetable industry chain and cultivating this field deeply can we secure a place in this industry.

"Now I understand! You've got a good grasp of things." Jin Baiwan's eyes lit up, and he slapped his thigh.
"I'll contact them about leasing the cannery when I get back. The Wan'an Town cannery has worked with us before, but they ran out of funds and haven't resumed operations. I'll go and ask them first."

The setting sun shone through the window lattice onto his face, reflecting his energetic expression.

Although Li Zhe's words were brief, they opened up a wider world for him. He used to be a vegetable vendor in the countryside, and although he had some knowledge, his limited perspective meant he had no access to the concept and extensions of "deep processing of vegetables."

Li Zhe's words greatly inspired him...

(End of this chapter)