A Tale of Two Cities Supporting Xinjiang

The next morning, more than a dozen people gathered outside Li Chao's residence.

All of them were farmers who had signed agreements, and anxiety was written on everyone's face.

Sima Yi stood at the front. This time, instead of holding the agreement, he asked directly, "Technician Li, has Boss Zhao been here? What price did he offer?"

Li Chao remained silent.

"We know even if you don't tell us."

Someone in the crowd shouted, "My cousin grows apples in Changji. Yesterday, a buyer went there and offered 5.5 yuan!"

"Five yuan and fifty cents?!" A murmur of surprise rippled through the room.

"The agreement we signed guarantees a minimum of eight yuan!"

Sima Yi panicked, "Technician Li, what... what should we do?"

The agreement is a "company + farmer" contract signed between Li Chao and the farmers: the company provides seedlings and technology, and guarantees to purchase them at a minimum price of eight yuan per kilogram; the farmers are responsible for planting, and the company will sell the fruit.

When the contract was signed, everyone felt they got a good deal. The market price was usually six or seven yuan, and the minimum price was eight yuan, so it was a sure thing.

But now the market price has been pushed down to five or six yuan. If Li Chao still buys at eight yuan, he will lose two or three yuan per kilogram. Fifty tons would be a hole of over ten thousand yuan.

"Don't panic, everyone."

Li Chao tried to stabilize the situation, saying, "The transportation is only temporary, once the roads are open..."

"By the time the road is open, the apples will have frozen!"

Eric arrived at some point. He stood on the outskirts of the crowd, his voice not loud, but everyone could hear him clearly: "At that time, let alone eight yuan, nobody will want it for five yuan."

Panic began to take hold.

"Technician Li, just tell me the truth," a middle-aged farmer squeezed to the front, "Is that guaranteed price of eight yuan still valid?"

Everyone was staring at Li Chao.

Li Chao opened his mouth.

Is that a deal? He simply doesn't have that much money to his name right now.

If you say you don't stand by it, that's a breach of contract, a breach of trust. All the trust built up over the past three years will collapse in an instant.

"It's a fact." A voice came from behind the crowd.

Everyone turned around and saw Zhou Mingyu walking over, looking travel-worn, with snow still clinging to his down jacket.

"Director Zhou?!" Li Chao was stunned. "Weren't you...?"

"I heard there was an accident here, so I changed my train ticket and came here in a hard seat."

Zhou Mingyu turned to the farmers and said, "Fellow villagers, the agreement was signed by the company we are dealing with. It's in black and white and stamped with the company seal."

The minimum price is eight yuan, not a penny less.

The crowd fell silent for a few seconds.

"But Director Zhou, the buyers are only offering six yuan, and you're buying at eight...aren't you losing a lot of money?"

"That's a matter for our management committee."

Zhou Mingyu said firmly, "If you all plant the apples well and deliver the fruit on time, you will receive every penny of the money you are owed."

The farmers looked at each other in bewilderment, and finally slowly dispersed.

After everyone had left, Li Chao grabbed Zhou Mingyu and said, "Director Zhou, are you crazy? Buying at eight yuan and selling at six yuan, that's a loss of two yuan per kilogram. Fifty tons is a hundred thousand yuan!"

"I know."

Zhou Mingyu took out a bank card from his bag. "There's 200,000 yuan in here, all my savings."

Use this to pay for the first batch of goods.

"That's not enough! Besides, it's only treating the symptoms, not the root cause..."

"So you have to figure something out."

Old Yang stared at Li Chao, "Find a way to sell the apples and get a good price."

Instead of wasting time here arguing with the acquirer.

That night, Li Chao and Zhou Mingyu stayed up all night in the prefabricated house.

The table was covered with documents: apple testing reports, cold-resistant variety certifications, sales data from previous years, customer lists...

"The direct air transport route is blocked, and land transport is also congested."

Zhou Mingyu pointed to the map, "But look here—"

His finger pointed to a railway track.

"The Northern Xinjiang Railway runs daily from Urumqi to Alashankou with dedicated freight trains."

Rail transport is unaffected by weather!

"But the railway doesn't transport fresh fruit."

What happens if apples freeze and spoil on the road without refrigerated trucks?

"Then let's build a simple cold chain!"

Zhou Mingyu pulled out a document: "I've checked, the railway department does mixed-cargo transportation business."

We can rent insulated containers with cold storage plates inside to control the temperature between 0 and 4 degrees Celsius.

Although the cost is higher than regular freight, it is cheaper than air freight and more reliable.

Li Chao's mind raced with calculations: the railway would take him to Zhengzhou, and then he would be transferred to various parts of the country.

It takes two days longer than air freight, but as long as the temperature is well controlled, the quality is not significantly affected.

"The key is to be fast."

Zhou Mingyu said, "If we can't make it to the Spring Festival release window, we can focus on the concept of cold-resistant apples and do differentiated marketing."

Differentiated marketing...

A brand new selling point took shape in his mind.

On the third day, Boss Zhao came again.

This time he brought a large truck with him, looking like he was determined to win.

"Boss Li, it's been three days. Have you thought it through yet?"

As soon as Boss Zhao got out of the car, he laughed, "I won't beat around the bush with you, five yuan and fifty cents a kilogram, cash settlement, picking up the goods today."

"Five yuan and fifty cents?"

Li Chao stood at the warehouse entrance, with Director Zhou behind him. "Boss Zhao, your prices are getting lower every day."

"It's the market situation."

Boss Zhao shrugged, "If you don't sell, plenty of others will."

In Changji, someone already sold their goods for five yuan yesterday.

"Why is Boss Zhao here instead of going to Changji to collect it?"

Boss Zhao's face stiffened.

Li Chao laughed: "Because you know, my nine-year-old cold-resistant apples have been tested at minus 38 degrees Celsius."

Other apples will spoil if they freeze, but mine won't. That's why you're in such a hurry to get them, right?

"You..." Boss Zhao didn't expect Li Chao to be so tough.

Li Chao said slowly and deliberately, "How about this, Boss Zhao, I'll give you a price too."

Fifteen yuan per kilogram. If you want it, take it now.

No—I'll find another buyer.

"Fifteen yuan?! Are you crazy?"

The market price is only six yuan!

"That's the price of a regular apple."

Li Chao took out an apple from behind him, which was bright red. "This is the Jiulian Cold-Resistant Apple. It was naturally planted at minus 38 degrees Celsius. Its sugar content reaches 21%, and its hardness, crispness, and storage resistance all exceed the standards."

"Boss Zhao, what price do you think it should be sold at?"

Boss Zhao was speechless.

Li Chao added, "Oh right, I forgot to tell you, I've already ordered my apples."

A special cold chain train will depart the day after tomorrow, directly supplying fifteen high-end supermarkets in East China.

The purchase price is twelve yuan per kilogram.

This is obviously made up.

But Boss Zhao didn't know.

His face went from red to white, then to green, before he glared fiercely at Li Chao: "Fine, Boss Li, you've got guts. We'll see!"

After the car had driven away, Li Chao asked Zhou Mingyu in a low voice, "Have you really finalized the deal with the railway cold chain?"

"Not yet. But we must reach an agreement tonight."