Chapter 50 - 510: Industrial Layout (2)
Although Luzon’s climate was like summer year-round, the February temperatures were still a bit cooler, making it feel relatively comfortable.
Lima South City, in the southern part of Luzon Island.
In the headquarters of Haitian Agriculture, Zhang Wei looked over the progress reports for various projects, rubbed his temples, picked up the thermos next to him, and took a sip of oolong tea.
The task of developing 600,000 mu of sea farms this year, along with projects like the insect farms, mushroom cultivation plants, and feed processing factories, all put him under immense pressure.
Recently, the head office had issued another directive, ordering Haitian Agriculture to prepare for the establishment of an agricultural association.
He had read the proposal for the agricultural association and knew it was a massive project. The overall plan seemed to be based on East Japan’s agricultural associations, but with some differences.
According to the first-phase objective described in the proposal, the plan was to establish 80 distinctive agricultural cooperatives this year, involving approximately 80,000 farming households.
He picked up the phone. "Manling."
"Yes, President Zhang. What are your instructions?" his assistant, Manling, replied.
"Notify all department heads that there will be a meeting at 2:30 PM in the fifth-floor conference room to discuss the agricultural association. Tell them to each prepare a proposal from their department’s perspective."
"Understood."
At 2:30 PM.
In the conference room, over a dozen department heads were gathered.
When Zhang Wei arrived, he didn’t waste time with pleasantries and got straight to the point. "Let’s hear it. How are we going to move forward with the agricultural association? The head office has high hopes for us, so let’s not drop the ball at a critical moment."
The head of the Haitian Business Division spread his hands. "President Zhang, I’m still pushing the 600,000-mu sea farm project. I don’t have the capacity to get involved with the agricultural association."
The heads of the Insect Farming Division and the Mushroom Cultivation Division also looked helpless.
Zhang Wei understood their position, but he still reminded them, "It’s understandable that the Haitian Business Division has no time, but the Insect Farming and Mushroom Cultivation Divisions still need to contribute."
"Huh? Are you saying you want us to promote insect farming and mushroom cultivation to the farmers?" the head of the Mushroom Cultivation Division asked hesitantly.
Zhang Wei asked, "How many varieties of mushrooms can the Mushroom Division currently cultivate with its technology?"
"Currently, we have six varieties: straw mushrooms, shiitake, oyster mushrooms, wood ear, button mushrooms, and enoki. These are all common varieties on the market."
Zhang Wei wrote down the names of these mushroom varieties in his notebook, then wrote the number "12" after them. "The Mushroom Division will be responsible for technical support for 12 cooperatives. You will supply them with spawn, and the company will provide financial support and sales channels."
"Twelve cooperatives?" The head of the Mushroom Division frowned. "We’re in the middle of building our own large-scale cultivation plants. These small operations won’t have a cost advantage!"
Zhang Wei waved his hand dismissively. "Don’t worry, the company doesn’t do business at a loss. Fengrao House will buy up all these mushrooms. As long as they do as they’re told, we can make them designated suppliers for Fengrao House. Even if it means subsidizing the farmers initially, we have to stick with it."
In reality, Haitian Agriculture’s strategy was one of scale and market monopolization.
Other small farmers and minor clans had no way of competing with Haitian Agriculture, even if they tried to go it alone.
Once they achieved market monopoly, everyone else would have no choice but to exit the market.
As for insect farming, Zhang Wei also had the Insect Farming Division provide technical support and breeding stock to support the targeted cultivation of six species: locusts, crickets, mealworms, silkworms, scorpions, and earthworms. This also involved 12 cooperatives.
The remaining cooperative quotas would be filled by fruits, vegetables, and aquaculture.
Everything produced by these cooperatives would be purchased exclusively by Haitian Agriculture, then processed and supplied to Fengrao House or consumed internally by Haitian Agriculture itself.
...
The areas around Lima South City and Dart Port were the first to be affected.
In a small mountain town called She Mountain Town, the recent expansion of the cooperative into their area was causing a stir.
As the town’s major landlord, Old Man Barça was clearly resistant and hostile toward the cooperative’s arrival.
A young man with a mouth full of yellow teeth asked, "Uncle, should we cooperate with Haitian Agriculture?"
"Cooperate with what? Do I look like I’m short a few million? Tell everyone in the clan not to cooperate with Haitian Agriculture," Old Man Barça spat, spraying spittle.
His family was the local tyrant. Plus, they had connections in Manila. Barça himself owned over 3,000 mu of mountain land where he grew rambutans and wax apples, which he could sell in the Manila market through his own channels. Naturally, he looked down on Haitian Agriculture.
However, the Basa Clan wasn’t the only group of farmers in town. Although his clan owned about 33% of the land in She Mountain Town and many other farmers were related to them in some way, the closeness of these relationships varied. Some were on good terms, some were mere acquaintances, and some were even on bad terms.
As major landlords, the Basa Clan owned a great deal of land, but their population wasn’t large, making up only about 3% of the town’s total population.
After hearing the cooperative’s pitch, the farmers who owned only small plots of land didn’t show any open eagerness, but many were already tempted. They were just waiting for someone else to be the first to test the waters.
People, more often than not, tend to blindly follow the crowd.
The She Mountain Town agricultural cooperative’s project involved growing fruits, vegetables, and rice.
Soon, the first person to take the plunge appeared.
A farmer named Rolle signed the first contract. His family’s 1.3 mu of mountain mango grove and 0.3 mu of paddy field were incorporated into the cooperative.
Farmers who signed with the cooperative were required to grow designated agricultural products at a fixed price, which would be adjusted once a year.
Furthermore, the cooperative provided insurance, ensuring that neither the farmers nor the cooperative would go bankrupt in the event of natural disasters or other force majeure events.
When the other small farmers saw the price Rolle had signed for—with mangoes being about 18% higher than what Old Man Barça had been paying—they were tempted too.
When faced with profit, the farmers didn’t care. Even the small number of farmers who were on relatively good terms with the Basa Clan ignored their ban.
The head of the cooperative patted the thick stack of contracts in his hand and sneered, "It seems that in the face of money, Old Man Barça’s words aren’t worth a single Peso."
"Boss, you think those guys will cause trouble?" a sales agent asked worriedly.
The cooperative head’s face showed no fear. "Heh, don’t forget who’s backing us. If he doesn’t want to be civil, we’ll help him be civil."
Just as the head said, the Basa Clan was merely a small, local clan. Faced with a behemoth like the Fernando Clan, they wouldn’t dare resort to violence.
Next, these minor clans would feel what true malice was.
Fengrao House, with its complete transportation, logistics, and food supply chain, quickly opened small convenience supermarkets in every town, snatching away the markets these minor clans had previously monopolized.
Meanwhile, contracted farmers could also get employee-like discounts. Inside the cooperative, there were affordable pesticides, fertilizers, and agricultural machinery, as well as professional technical support.
This made it impossible for the remaining farmers to sit still, and even more of them clamored to join the cooperative.
As for the farmers who didn’t cooperate, they had to face higher production costs, find their own sales and transportation channels, and buy their own insurance. It was a complete bloodbath.
