Chapter 312: Xue Jiacheng Proposes Building a Feed Factory

After selling the shares of his friend Guo Jin, Chen Yang turned off his phone and slept until the afternoon before waking up.

After turning it on, there was another pile of missed calls and texts. The one with the most call attempts was the newly hired pig farm manager of Laobaixing Meat Industry Company, Xue Jiacheng.

When Chen Yang went to Shuangfeng Town yesterday to pick up Professor You, Xue Jiacheng went to Dongyang County to handle all the procedures for setting up a pig farm. Today he's been making those frantic calls, probably related to the cooperative pig farming plan with Panlong Town.

"Hey, Lao Xue, what's up that you're calling me so urgently?"

"Boss, I'm the pig farm manager. You're discussing a livestock cooperation plan in Panlong Town with someone without letting me know—this isn't appropriate, is it?" Xue Jiacheng said in a tone full of dissatisfaction.

Chen Yang smiled and said, "Lao Xue, you raise the pigs, I buy them—there's no conflict, right?"

Xue Jiacheng spoke earnestly: "Boss, if you're just trying to do poverty relief in Panlong Town, I won't interfere. But if you're planning a long‑term livestock cooperation, I'll have to voice some opinions."

Chen Yang's essence is solving the meat feed import needs of Laobaixing Meat Industry Co., Ltd. The so‑called poverty relief was entirely set up by Xu Li. Since Xue Jiacheng has better suggestions, he's naturally willing to listen.

"Lao Xue, I'm listening—go ahead and share your ideas!"

Xue Jiacheng said, "Boss, I have three suggestions. First, cooperation with farmers should be selective, not too scattered. The more people involved, the more problems arise. I suggest organizing by village, letting them collectively build a livestock farm of a certain scale. Then select people with strong learning ability from the village to train at the company. After training, they can directly participate in managing the village‑collective pig farm. This approach will save a lot of management work."

Chen Yang thought it over and felt this method was also feasible. Building a medium‑sized pig farm in a village actually doesn't require much cost. Panlong Town has thirty villages; if each village raises a thousand pigs, one batch yields thirty thousand market‑ready pigs. This number can fully meet the company's needs.

"Building pig farms by village is a feasible approach; I'll re‑communicate with Secretary Zhou of Panlong Town. Now tell me your second suggestion."

"Boss, my second suggestion is to let the village‑collective livestock farms raise their own funds from the rural credit cooperative to cover breeding costs. Our company will only sign a protected‑price purchase contract with the farms. As long as the pigs are healthy, we'll buy them at the contract price regardless of market price at sale, guaranteeing them a stable income."

Chen Yang felt Xue Jiacheng's second suggestion was very difficult.

He had previously bought piglets for the villagers of Chenjia Village; each piglet cost 120 yuan, so a thousand piglets would cost 120,000 yuan.

Moreover, a pig from piglet to market must consume at least 2,000 kilograms of feed; a thousand pigs would need 2,000,000 kilograms of feed.

Currently, 40‑kilogram feed costs 50 yuan on the market, so 2,000,000 kilograms of feed would cost 2.5 million yuan.

Panlong Town is a poor town—what bank would lend a village‑collective pig farm 2.62 million yuan for pig‑raising expenses!

Furthermore, the bank would have to solve loan issues for all thirty villages, totaling 78.6 million yuan.

For such a huge amount, unless a government department steps in to guarantee it, the bank will certainly not approve.

"Lao Xue, a pig farm of a thousand‑head scale requires at least 2.62 million yuan in investment. Panlong Town's villages are all poor; they can't come up with that money. Do you have any better suggestions?"

After a moment of silence on Xue Jiacheng's end, he finally said, "If raising funds is difficult for them, our company can at most invest half the cost. Only by binding the village collectives' interests with ours will they take this cooperation project seriously."

Chen Yang felt Xue Jiacheng's suggestion was feasible. Having the village collectives put up half the funds greatly reduces the company's investment risk. Moreover, with this portion of company investment as a guarantee, banks will be more willing to accept the village collectives' loan applications.

Xue Jiacheng added, "Boss, my third suggestion is to set up a subsidiary dedicated to producing pig feed. That way we can uniformly formulate feed according to our own needs for the farmers, and at the same time maximize the reduction of their breeding costs."

Chen Yang rubbed his forehead. All this trouble, and now there's another feed factory. He really is creating work for himself out of nothing!

But what Xue Jiacheng said also makes sense. A feed factory is the perfect partner for a large‑scale pig farm. Even without cooperating with farmers, they will eventually have to build their own feed factory to maximize the reduction of breeding costs.

Furthermore, Professor You's team already has feed‑development technology. Chen Yang just needs to set up the platform for them, and that'll be enough.

"Lao Xue, where should this feed factory be built?"

"Boss, let's put the feed factory in Shuangfeng Town too! Their secretary talked with me—the land previously requisitioned for the planned pig farm is still idle, so we can just take it over."

Upon hearing that, Chen Yang knew it must be the idea of Shuangfeng Town's secretary, Hu Tianyu. That guy was once surrounded by villagers in his office over the land‑expropriation issue and couldn't leave. Since the land hasn't been returned to the villagers, it shows the matter hasn't been settled.

Of course, as long as the villagers don't cause trouble, building the feed factory in Shuangfeng Town is fine. After all, locating the feed factory next to the pig farm can save a lot of transportation costs.

As for whether there are any interests between Xue Jiacheng and Hu Tianyu, Chen Yang doesn't want to look into it for now.

Once the pig farm is built, he will definitely send people to supervise it. If there really is corruption, Chen Yang won't be polite about it.

"Lao Xue, go discuss the concrete plan with Secretary Hu! Since we're supporting the economies of Dongyang County and Shuangfeng Town, I hope Dongyang County will give us the maximum policy support."

"Boss, I've already consulted—Dongyang County's rural cooperative is willing to lend us 20 million yuan for this feed factory. Moreover, the county's tax bureau director has promised the greatest possible tax reductions."

Chen Yang finally understood why Xue Jiacheng had proactively called him. It seems the first two suggestions were just a lead‑in; the third suggestion is his real goal.

Of course, since it's for the company's benefit, whatever support is needed should still be given.

Now the question is, who will manage this feed factory?

Although the plan was devised by Xue Jiacheng, Chen Yang can't let him hold two positions.

"Lao Xue, why not poach someone from your former company to manage the feed factory? As long as they're capable, we can work out the compensation."

"Boss, that wouldn't work! The senior staff there have all signed non‑compete agreements. Why not go see Ye Zong for a solution instead?"

Chen Yang sighed. Going to see Yexin would first require delivering on that Ferrari sports car…