silent farm

Chapter 19 Not enough money to spend is the norm

There are a lot of cattle in Brazil, which also means that the competition in the cattle industry is very fierce.This kind of fierce competition is not only the competition of cattle farms, but also the competition of the cattle industry chain in the whole world.

In fact, the price of beef in the world has not increased much in recent years, while the price of beef in Brazil has been rising.The main reason is inflation, the minimum wage for workers has been increasing.

This is the same as what Huaxia did back then, using the adjustment of the minimum wage as the main means of balancing wealth distribution.Of course, there is still a big difference between the two.Brazil's continuous demand for higher wages by means of strikes is also one of the main driving forces for wage increases.Maybe that's why this country likes strikes so much-why not go to work and raise wages?
I am afraid that no government can bear the impact of workers in a certain industry traveling for a long time without going to work.Especially the positions of civil servants or financial allocations, the strikes in these positions are the most severe.Because they can still receive a salary even if they don't go to work-this is the advantage of the annual salary system.If this kind of thing is to be put on Huaxia, there is no need to raise the salary, and he will be fired directly!
Regardless of the industry, if workers' wages are raised, costs will inevitably rise.Of course, the cattle industry cannot escape this rule.So the price of beef in Brazil has risen, but in fact the price is still lower than the price of beef in other major cattle-producing countries, and profit margins are also falling.As a result, all kinds of competition in the cattle industry will become more and more fierce.

For Brazilian cattle, the domestic market is basically saturated.Every year, each person can eat a quarter to a fifth of a head of cattle.

If all the beef produced in Brazil is eaten by oneself, the average weight of Brazilians may increase by more than ten kilograms, and the Brazilian football team may also become the Chinese national football team.Therefore, in order to prevent the unlimited increase of national weight, beef export is a must.

It's just that Brazil's beef exports are also subject to competition from other countries. In South America, the main competitor is Argentina—a country that is said to be rich in world-class beauties.Other major competitors worldwide are the United States, Australia and New Zealand.

Although Brazilians boast that their country produces the best beef in the world, in fact, the quality of beef from those countries exceeds that of Brazilian cattle.So Brazil can only compete in the low-end market.Competitiveness lags behind these countries.

The most terrible thing is that the production efficiency of the cattle industry in Argentina, which is also a developing country in South America, is 20% higher than that of Brazil, and that of the United States is more than double.In fact, this is the main reason why Brazilian beef is cheap in China, because if the country cannot digest most of it, a lot of beef will be thrown into the Amazon River to feed the merman.

Under the incentive competition, the business of selling 30 calves at once is also a big business that cannot be met for a large company like Songtian Group.As a result, representatives from their headquarters paid a visit to Li Sheng very quickly, and arrived in Obidos the next day.

Soon a small plane landed at the airport of Silent Ranch.The efficiency of Matsuda Group appears to be very high this time.

As the boss, Li Sheng should greet the person he is negotiating with when he comes. After all, the other party is not a salesman this time, but a sales representative sent by the other party after he approached him.

Business negotiations in Brazil are very serious. They are not used to confirming business by phone or email, and prefer or are more willing to negotiate face-to-face. Some people say that this is also the main reason for their low efficiency.

There are two representatives of the Matsuda Group.One is the person in charge of the aunt who was in their Obidus yesterday, and the other is a white man in his forties.

After the two got off the plane, the aunt gave Li Sheng a warm hug, but she let it go quickly: "Mr. Li, it's nice to see you again. This is Holder, the representative sent by our Songtian Group headquarters. Mr. He is the general manager of the sales department at the headquarters."

According to Brazilian business habits, Li Sheng stretched out his hand: "Hello, Mr. Holder. Welcome to the Silent Ranch."

Holder shook his hand with a smile and said, "It's an honor to come to your ranch, Mr. Lee. It's very beautiful here."

"I think we can come to my house to have a cup of coffee first." Brazil's coffee production ranks first in the world, and even created a coffee economic miracle for more than ten years at the beginning of the last century.During those ten years, Brazil’s coffee production accounted for more than 80% of the world’s total. The country’s economy developed rapidly by relying on coffee. Unfortunately, the good times didn’t last long.But they have no reason not to like coffee.

Li Sheng didn't know how good he was at brewing coffee. He usually brewed and drank coffee by himself, but in fact he rarely drank coffee.Although his clients were complimenting him this time, they put it down after taking a sip. I think there is a lot of politeness in it.

After the three of them sat down, Holder and Big Mom complimented him on how beautiful the cabin was, and how incredible the grass on his pasture had grown in the dry season.Anyway, I just praise what I catch.

Li Sheng is not used to this kind of business communication.However, he also checked the living and communication habits of the Brazilians, and he had to do as the Romans do.

Brazilian business contacts, each other, will wait for the other party to get to the point first.That, he felt, was a bit of an overkill.It's as if whoever brings it up first has the upper hand.Of course, maybe they have already regarded this as a courtesy that must be followed in business dealings.

This kind of etiquette, in Li Sheng's eyes, is only an illusion: "Damn, do you want to stay for lunch?"

He had no choice but to respond for a while and then took the initiative to turn to the topic: "Mr. Holder, I want to know whether all the calves provided by Songtian Group are calves bred by your group?"

"In fact, a large part of them are bred for us by our associated cattle farms. But we have been tracking these calves. There is absolutely no problem in terms of health and epidemic prevention." Holder immediately suppressed his smile and entered Negotiation status.

Li Sheng frowned and said, "In other words, the quality of the cattle you provide may have risks that you cannot be sure about."

"No, no. Mr. Li, you can't understand the cooperation between us and other cattle farms in this way. In fact, we have carried out this kind of cattle breeding model for five years, and there are millions of calves sold like this , there has never been a major quality problem. All customers have great trust in the quality of the calves we sell. So your worries are unnecessary."

Li Sheng nodded and said: "I believe that your company will not sell calves with problems. But when I buy cattle from Songtian Group, I look for your quality. Now the cattle you sell are bred from other cattle farms." Yes. Is the quality guaranteed to be the same as that produced by your own cattle ranch? I don't think so."

Holder also understands that this is a bargain.But he couldn't lower the price by himself: "Then what do you mean?"

"The price has dropped by 10%. Of course, I can buy all the calves between half and one year old. Buy [-] heifers at the same time."

Holder shook his head immediately, and said with an exaggerated tone: "That's impossible, Li. We will lose money at this price."

"In this case, I think we have lost the basis for negotiation."

Of course Holder couldn't give up such a big deal.And just now he also saw that the pasture quality of this ranch is very good, at least far better than that of other cattle farms in the Amazon plain.

He frowned and thought about it, and said, "Li, we can accept the condition of reducing the price by 3%."

"5%." Li Sheng said more.

"Okay. But you need to pay a deposit of 5000 million reals in advance. When the number of cattle delivered reaches [-], another [-] million reals will be paid. All payments will be made within one week after delivery." Holder After thinking for a while, I said.

Li Sheng nodded and said, "I accept this condition."

"Great, I think we should have a drink to celebrate." Holder didn't expect the negotiation to be so easy this time.Although the price has been lowered a bit, more than 36 cattle are shipped at one time, and the profit is not small.

Li Sheng re-brewed a cup of coffee for them.The two parties agreed to sign a formal contract in Brasilia the day after tomorrow.

After sending the two away, Li Sheng began to think about how to raise enough money.He still has the advance payment.But this batch of cattle will be delivered within two months at most.As for the second payment, he couldn't get it out.If this business is to be completed, he may have to raise at least 5000 million reais within half a month.That equates to around $7000 million.

Last time he was able to get [-] million euros, mainly because he sold a "large amount" of rosewood.Can't do that this time.Only more than four months have passed, if a large amount of red sandalwood is brought out again, it will be a blow to Fernando.Although the two sides do not have much relationship.But the other party seems to have a lot of power in Brazil, and if offended, I don't know what trouble it will cause.

If the other party is angered, he may receive special attention in Brazil.So he gave up the idea of ​​taking out the red sandalwood.

Of course, he can also take out the emerald thing.But he didn't intend to do that.The value of jadeite is hard to define.Moreover, he was a little reluctant to exchange high-quality jadeite for money.

(End of this chapter)