Chapter 256: The benefits of having subordinates
The anomalous well at Baker's Farm, Link quickly put aside. He receives a call from Martha. She said that she had been contacted by Peru and that they had requested an interview with him.
"They are considering our proposal. But it seems that they want to know exactly what they are getting, so they say they want to talk to you in person. β
Link thought about it for a moment and said, "Yes." You agree with them about the time to meet. β
Knowing that he was going abroad, Jessica did not go to work on the morning of his departure, helped him pack his bags briefly, and dropped him off at the airport, saying: "Peru is a South American country, and they have the enthusiasm of South Americans. You'd better not take their word for it completely. And their work efficiency is relatively low, they like to be late or late once in a while, so you don't have to be angry about it. β
Link hugged him and kissed him and said, "I see." Then he picked Hannah up and kissed her twice, and then got on the plane.
His new aircraft was more than enough to cope with the flight. However, his plane took off from Mora's private airfield, and he had to report to ground air traffic control before he could fly to an altitude of 3,000 feet, and then he could enter the channel before climbing to higher altitudes.
Martha was also on the plane. With a few hours left on the plane, she gave Link a detailed account of her contact with Peru during that time.
"They are concerned about the spread of alpacas around the world. The alpaca was a sacred animal in the minds of the Indians. In ancient times, alpacas were only kept by nobles. Now even though it is already an ordinary person, it can also be farmed. But they still think it's their own animal. β
Link frowned and said, "So they don't want to export alpacas? I thought it was because their industry was too weak and they were worried that they would lose their competitiveness." β
"That, of course, is the main reason. The alpaca industry is actually not very large. Until now, the entire industry has not exceeded two billion dollars. Peru currently accounts for the largest part of this pie. They have established an alpaca textile industry. Alpaca textile products are also one of their important export products. They fear that other countries have also established alpaca industries, which will deal a devastating blow to their alpaca industry. β
Link was quite dismissive of the Peruvian government's approach. Self-protection is not that protective.
"But that's going to happen eventually," he said. Even if they restrict alpaca exports, they won't be able to dominate for long. I've looked up some information, not to mention Australia and New Zealand, there are people breeding alpacas in China, the United States, and Germany, but the scale is not very large. The number is small. But those alpacas were all imported from Australia. That means Australia will soon be able to roll out alpacas around the world. β
"Yes, Australia wants to make the alpaca industry a big cake. And they want to eat the biggest portion of the cake. I think Peru has seen that, too. β
"Now Peru seems to be ruled by Indians?"
"Yes. Indians make up 45 percent of Peru's population, while Indo-European 37 percent and whites make up only 15 percent. The country's economy is growing quite rapidly. Over the past few years, GDP has grown at an annual rate of more than 6%, making it one of the fastest-growing countries in South America. Their country is rich in mineral and water resources. Restrictions on foreign capital were lifted from the beginning of the year or two, allowing foreign investment in the country's energy, mining and communications sectors. That's the fundamental reason for their rapid economic development. β
Link listened to her and asked, "Well, they're actually quite open." Are there many people of Japanese descent in Peru?"
"It should be no less. However, there are more Chinese Americans. Chinese make up about 1% of Peru's population. But there was once a president of Japanese descent. However, it was overthrown by a coup d'Γ©tat at the beginning of the new century. β
It seems that Martha has done a little bit about the country.
This was not what Link was thinking, but that he heard that Peru was receiving foreign investment, and he remembered Neil Geddes's plan. He didn't know if the target was Peru. That's why he asked about the number of Japanese people in that country. It is possible to judge whether Japanese capital will occupy the main investment in Peru.
But Martha didn't seem to know anything about it. He didn't mention it again.
Seeing that he had no other questions, Martha continued: "They have been on the phone to test our intention to invest in a joint venture textile factory in their country. I think they'll bring it up when they see you. β
Link nodded and said, "That can be considered." "The textile industry in the United States itself is lagging behind in the world, but in terms of technology, it is good.
"They also asked how many alpaca breeding centers we could set up. β
"They want to increase their alpaca population?"
"That's right. Martha said with a smile. "Even Indians should understand that competition is inevitable. I think they also want the alpaca industry to grow. And I think they want to take advantage of their existing strengths and continue to be in this industry. β
She paused and said, "Alpacas have more than twenty natural coat colors, which are much better than sheep, and this is a high-grade wool material that can make all the fabrics. And there are many coat colors, which are only found in Peruvian alpacas. I think the Peruvian government wants to be even higher in this industry. Rather than cheap export textiles. β
Link thought for a moment and said, "If they make a request like that, I'll consider agreeing to them." β
He is not worried about how much an increase in Peru's alpaca population will affect his promotion of alpaca farming in the United States. Peru's climate and geography dictate that it is impossible for the country to breed too many alpacas. The wool production of alpacas is not destined to really threaten other textile industries, and for a long time, alpaca wool textiles can still be regarded as high-end textiles.
The only question is how to broaden the market so that the wealthy people in some rich countries can approve of alpaca fabrics.
And what he plans to breed is a baby alpaca. This has better wool quality than large alpacas, but also has a lower yield. The biggest advantage of alpacas over other wool-producing livestock is that they can be fed with the straw of crops. If he will later biological pest control agriculture, some planting farms, can also breed alpacas. It's also a useful addition to those farms.
He thought for a moment and asked, "I've seen some information that says that one acre of pasture can raise thirty-six alpacas. Is this data credible?"
"I think it depends on the quality of the pasture. That should be the highest limit, or if part of the artificial feed is used. However, the utilization rate of alpaca's pastures is indeed quite high. Because they don't eat grass roots, they can keep the grass growing at a constant rate. I think that's why there are more alpacas than sheep on the farm. β
Link thought so, too, and asked, "What do you think they're going to ask for?" How should we respond?"
"I can't think of any more that they might ask. However, if they offer us to invest in their alpaca industry, we should be able to ask for some alpaca cubs each year, and we can also ask for some alpacas of a certain coat color. β
"What else?"
"Ask them to still restrict the export of alpacas to other countries. Also, if we can help them increase their alpaca birth rate, we should buy their alpaca cubs at a lower price. I guess if they offered to buy half of the new cubs, they might have agreed. β
Link pondered for a moment and said, "Then it's up to you to negotiate with them." I want the most favorable outcome. β
"Link, I advise you not to make any decisions lightly in the negotiations. I have asked the team to analyze the risks of this partnership, but we cannot determine the risks without the exact terms of cooperation. They also set a bottom line for me. If the outcome of the negotiation is on the bottom line, I will give you a hint. But no one can predict what will change in the negotiations, so we may need to make a separate assessment. β
"What's the bottom line?"
"Now they can already determine that the bottom line is that the number of alpaca cubs they buy should be more than 20,000. The price should not exceed fifteen hundred dollars. If we need to invest in the construction of a factory, we should have more than 50% of the shares, and we should dominate it. They are worried that they will ask us to help them build rural roads or electricity. They have not been able to make an assessment of these for the time being. However, their advice was not to exceed $10 million. β
Link listened to her and said, "I see. But on the issue of aid, I think I can relax a little bit, and I can run this thing through my fund. β
Martha thought about it for a moment and thought it was a good idea. Aid for charity and commercial cooperation are two completely different things. Charity is actually a kind of advertising. You can't see the actual benefits of the money you spend. But you can't say it's not profitable.
"If you have the intention of doing charity there, it will be easier for the project to be recognized by Peruvians if the cooperation can be achieved. "Peru's per capita GDP is not low, more than $6,000 per capita. How can that be regarded as a well-off level. But they still have nearly 50 per cent of the population living in poverty. Link wants to do charity there, and there will be a lot of room to play.
Link smiled and said, "Since you also think it is feasible, then follow this plan next." If you're still flying for a while, let's take a break. β
After a few hours of flying, his G650 landed at Lima International Airport.
Before coming, he checked the weather in this city on the Internet, and it turned out that this is a city that does not need to check the weather. Because it has the nickname of "the city without rain". The city is said to receive less than 15 mm of precipitation on average over the years. The megacity, with a population of more than five million, doesn't even have a sewer system. If anyone can sell any rain gear to this city, then he will be worshipped as the god of marketing. Because no one buys that thing.
He was coming to negotiate with the Peruvian government, so the Peruvian government arranged for someone to pick them up. But they waited for half an hour at the airport to pick them up.
This made him understand what Jessica meant when she said that South Americans like to be late once in a while. Although the other party explained that it was because of the traffic jam, it was just a universal excuse.
He was picked up by an official from the Peruvian Ministry of Commerce who spoke English. Although the accent is a bit weird, Link can understand it. The official was very enthusiastic and introduced them to the places of interest in Lima City in a van.
Perhaps less developed countries will look to history for solace in pride.
Along the way, the officer gushed about the history of the pride of the Indians in their ancient times, starting in Lima and continuing to talk about it.