God-tier Farm - Chapter 1013
Chapter 1013: Chapter 651 – a scare (1)
Translator: 549690339
Some time ago, Liang Qichao did report to Tang He about the recent situation of Paradise Farm. In addition to the success of the peach Garden vegetable experiment, Tang He was more interested in another thing that Liang Qichao reported to him.
Xia ruofei had a close relationship with Tang Yitian, the founder of the Australian retail giant, Maya Group. With the support of Maya Group, Paradise Farm basically didn’t have to worry about sales in Australia.
Tang He did a simple calculation. Paradise Farm, which was 6000 hectares in size, was one of the better farm resources in Australia due to its rich water source. After deducting the horse farm facilities, artificial lakes, and farm infrastructure land, the area that could be applied for for planting paradise vegetables was at least 4500 hectares.
Taking tomatoes as an example, if greenhouse plants were used to cover such a large area and the planting time was staggered to ensure a stable supply every month, the production capacity could reach at least 20000 tons.
At present, the price of Taoyuan vegetables in China was about 150 yuan per kilogram. If it was sold in Australia, the price would definitely be higher. According to the exchange rate, it would be at least 30 Australian dollars per kilogram.
In other words, if the production capacity was sufficient, Paradise Farm’s monthly production of 30000 tons could reach a terrifying figure of 600 million Australian dollars, equivalent to 475 million US dollars.
…..
Of course, the production costs, labor costs, maintenance costs, transportation costs, and taxes in Australia were relatively high. The actual net profit might reach the level of 100 to 200 million US dollars.
Even Tang He, who owned tens of billions of US dollars in assets, could not underestimate this profit level.
After all, the farm was only purchased for tens of millions of us dollars. Just because of Taoyuan vegetables, it became such a high – Quality asset, which really made Tang He look at it with surprise.
Of course, the most important factor to achieve the above profit level was the average Price of Paradise vegetables at 30 Australian dollars per kilogram.
After all, the normal price of vegetables in Australia was about 5 Australian dollars per kilogram. 30 Australian dollars was definitely a high price.
However, Tang He had personally tasted paradise vegetables before. He knew very well that these vegetables and fruits of Paradise company had great potential. He personally judged that it should not be a problem to sell them at a price far higher than ordinary vegetables.
Even for Tang He, who was worth tens of billions, such a farm was a very good asset, so he was a little moved and hoped to continue to expand the cooperation with Xia ruofei. It would be best to adopt a similar model in the United States and continue to develop high – end agricultural industry.
Xia ruofei fell into deep thought. After a long while, he said apologetically,””Mr. Tang, I’m really sorry, but our company doesn’t have any plans to expand overseas for the time being. Our company is expanding too fast now, so our next step is to take things slowly and steadily …”
Xia ruofei had done the same thing as Tang He. He was well aware of the amazing profits of the overseas farms.
But correspondingly, the investment was also quite shocking.
To ensure a stable supply of vegetables every month throughout the year, even in Australia, where winter was very warm, a greenhouse was still needed.
With a planting area of more than 4000 hectares, the investment in the greenhouse alone was an astronomical figure.
Of course, Paradise Farm also invested gradually, building and planting in batches, so they could use the early profits to invest again.
In other words, the amazing profits on paper might not turn into real gold and silver in the short term. The dividends in the early stage should be very small because most of the profits would be invested in the construction of infrastructure.
The construction and labor costs in Australia were much higher than in China, so although the investment had not been clearly calculated, it must be very large.
If he wanted to continue developing the farm, he would have to invest more money. Although Tang He said he could pay for it, Xia ruofei did not want to owe anyone. After all, this was not something he was in a hurry to do. There was no need to take such a big step.
Of course, the most important point was that no matter if it was Paradise Farm or Paradise Farm, the core competitive strength was paradise vegetables, which was the “technical power”. So, from the bottom of his heart, Xia ruofei did not want to continue to use the cooperation model.
Paradise Farm was a special case.
After the initial accumulation, Paradise Farm would continue to generate profits. By then, Xia ruofei, who had mastered the core “technology”, could totally do it alone. Why would he want to share the profits with others?
Of course, Xia ruofei could not say this out loud, or it would hurt their relationship.
Tang He was also a little disappointed. He said,””That’s such a pity …”
In fact, Tang He also knew that when Xia ruofei’s company was still small, it was already very lucky to be able to cooperate with Xia ruofei to develop Paradise Farm at a certain price.
He knew that with a resource like paradise vegetables in his hands, as long as there were no problems with the confidentiality of paradise vegetables, their future prospects were limitless. If it were him, he would definitely not be willing to cooperate with others.
Therefore, Tang He proposed the cooperation with the intention of giving it a try. Xia ruofei’s rejection was also within his expectations.
Moreover, the main business of a GIANT consortium like Tang He’s shengbang group was not agricultural products. Although it was a pity that they could not cooperate, Tang He was not angry.
