Chapter 498: Joining Forces?
Aaron Naris says he came with sincerity. At least the expression on his face was sincere.
Link was willing to believe in his sincerity. And he also feels that expanding the scale of macroalgae production is beneficial to both his company and Xihua.
He pondered for a moment, and said very sincerely: "Then Mr. Naris, what do you mean by sincerity......"
"A win-win solution!" said Aaron Naris, holding out one index finger and then a second finger. "At the same time, there is our devout attitude towards agriculture and sustainable land development. ”
Link laughed, "It seems that our positions are at least mostly the same. I also hope that agriculture will continue to grow. But what do you mean by a win-win partnership?"
"We have partnered to set up a company, you will produce the technology of macroalgae, and we will produce the technology and marketing channels of fertilizer production. The company is jointly funded by both parties. ”
"How do you distribute equity?"
"That should be the subject of negotiations. At the same time, we need to negotiate the size of the newly established company. the strategy of the company's development, and so on. I have come this time mainly to reach an agreement with Mr. Hans. ”
He was not afraid to use the idea of producing fertilizer from kelp residues after saying it, Link and put aside CF. If Link was smart enough, he wouldn't have done that. Although the giant algae of Xihua Company is relatively high yield, and the sea area that can be cultivated is relatively wide. But it's not like they CF can't find a replacement. He hinted at this at the beginning.
If Link were to leave their CF industry behind, then the two sides would only be in competition. The result is probably something that neither side wants to see.
Link needed to build a fertilizer sales network while also facing competition from CF. CF, on the other hand, needs to study macroalgae that are more suitable for farming. It takes a lot of time and money for both parties.
Therefore, the two sides are fighting on their own, which will only produce vicious competition. It's better for both sides to work together.
Then both parties can save time and cost, and that is a win-win result.
Although Link likes money, F, as the largest nitrogen fertilizer producer in the United States, has a sales network all over the world. Xihua, on the other hand, has a giant algae with an impressive yield and a wider range of suitable temperatures.
Westward's giant algae can grow in seawater between 8 and 28 degrees Celsius, which means that their giant algae can be cultivated in larger temperate sea areas.
Macroalgae is only grown in large quantities, but the processing market does not necessarily need so much macroalgae.
"I would like to know your vision for collaboration. What kind of company is a partnership, a fertilizer production company?"
"A marine farming company and green manure processing company. "Aaron Naris does have his own thoughts in mind. "Marine aquaculture companies can find suitable sea areas around the world for kelp farming, and the marine aquaculture companies are managed by Xihua, which can sell the macroalgae to Xihua on a priority basis. The waste residue processed by Xihua Company is sold to the green manure processing company, and the company is managed by our CF. Of course, both of us need to invest so far. ”
Link pondered for a moment. That sounds like a fair one. Because the giant algae will be sold to Xihua Company, it can improve the necessary raw materials for Xihua Company's expansion. But the market is not unlimited, and the competition faced by Xihua is also very large. The last giant algae planted may not be able to process much by Xihua. But the market for fertilizers is huge. CF alone generated more than $10 billion in sales last year. No matter how much CF there is, it can be consumed.
According to his cooperation plan, it is clearly more beneficial to CF.
Thinking of this, he shook his head and said, "Mr. Naris, that kind of cooperation is very bad for us. It seems that both Xihua and CF get the raw materials they need, but the problem is that Xihua can't consume much raw materials. ”
Link sees through the trap, but Aaron Naris doesn't have any embarrassment. Business cooperation is always full of pitfalls, it's up to you to see through it. If that's not acceptable, don't go into business and go home and play with your mother.
He smiled and said, "If Mr. Hans is not satisfied with this, these are all things to talk about." ”
Link thought for a moment and said, "The kelp seedlings are provided by Xihua. "Xihua's macroalgae are polyploid, and there is no possibility of spores developing. Therefore, the seedlings can only be cultivated by Xihua's technology. Although the marine aquaculture company is managed by Xihua, it is certainly an independent subsidiary. Need to share dividends with CF.
If the seedlings are provided by Xihua Company, in the end, who will sell those giant algae to for processing, it will be a good profit for Xihua Company.
"This can be considered!" said Naris, who thought that the seed production rights could be retained by Xihua, but perhaps that could be used as a bargaining chip on the conditions they proposed.
Now that both parties have the intention to cooperate, the next step is to conduct more in-depth cooperation negotiations. F Industry will send a negotiation team to negotiate with Xihua.
Aaron Naris achieved his goal and had no intention of staying in Washington to build a good relationship with Link. Link sent him out of the office. In his heart, he is still analyzing what kind of benefits he and Xihua will get if the cooperation with CF can be successful.
In fact, macroalgae farming is not a new project. As early as the last century, some countries introduced giant algae from the West Coast of the United States for cultivation, but they have not been able to expand the scale.
He thinks that the main thing that Xihua is striving for in this envisaged cooperation is to retain the patent for giant algae. As for the processing of the cultivated algae, unless the scale of the algae cultivation is not large, otherwise it is definitely a big cake that Xihua can't eat. As for the earnings of the cooperating companies. Link is not too optimistic. If all of those macroalgae can't be processed, it's good that farmed macroalgae can break even.
As for the sea area suitable for the cultivation of Xihua macroalgae, there will definitely be no less. For example, in the temperate waters of northern North America, maritime shipping is not busy, and as long as it is a non-traditional fishing ground, it can be rented and used. Moreover, macroalgae farming can be said to be a fairly environmentally friendly agriculture. Giant algae needs to absorb large amounts of carbon dioxide. Although it only absorbs carbon dioxide from water, it also solidifies the greenhouse gases on the earth without using farmland.
Speaking of such a cooperation project, it can also make a good name for Xihua and him.
Eventually, he felt that the partnership was still something to consider. He took out his phone and told Brad about it.
Brad heard about it and seemed to be looking forward to the collaboration. "It's a good opportunity," he said. We'll talk to them properly. ”
"Don't let the interests of the West China Company relax in order to promote your kelp!" Link said with a smile. "I will not participate in the negotiations, but I have two demands: the patent rights of the giant algae must be preserved, and we must also get the right to produce and sell the giant algae seeds. ”
Brad listened to his request and felt that it would be beneficial to the West China Company. He certainly wouldn't refuse.
After the matter of working with CF was handed over to Brad, Link stopped thinking about it for the time being. He's very busy right now.
Before the opening of the Fox Food Festival, Robert Baggio came to Ozette from New Mexico.
He has already surveyed the three grape farms and has already drawn up a preliminary plan for this year's winemaking. He needs to report the plan to Link and get Link's approval.
Link took him to the study, and after letting him sit down, he made his own coffee and said, "This is Arabica coffee from the estate of the palace of the last emperor of Ethiopia." I heard that it is no worse than the Blue Mountains. ”
"Arabica in Ethiopia? That's really good coffee. "Ethiopia is the true origin of coffee, although coffee there is not as famous as Jamaica's Blue Mountains and Colombian coffee. But those big-name coffees are actually variants of Arabica.
"Well, it's good, and it's very delicate! African coffee has a slightly sour taste, and this coffee has a very light sourness. ”
Link isn't really into coffee. He prepares coffee, which is mainly used to entertain guests.
He took a sip and said with a smile, "I prefer red wine to coffee!" And he thought it was good and didn't need that thing.
It is said that the world consumes five billion cups of coffee every day, but most people who like to drink coffee are actually addicted.
"But it's a drink that consumes more than red wine. It is said that the world has a market of hundreds of billions of dollars. ”
Link smiled and said, "Even if it has a trillion-dollar market, it has nothing to do with me." Let's talk about wine. What are your plans for this year?"
Robert's winemaking plan actually looks at the vineyards and estimates the yield, and each winemaker comes up with his own plan, which is then developed through collective discussion.
He handed a copy to Link and said, "This year's grape production is about the same as last year's. Among them, the production of Hanse Farm looks to be much higher than last year. And the output of the Ozette farm should be about the same as last year. But Hanova's production may be reduced by about 10 to 15 percent because of the drought. ”
"Is the impact of this year's drought severe?" said Link, who had heard that the grape harvest had been reduced so much, was rather unoptimistic about the situation at Hanova Farm this year. "The rest of the production there should be a big deal first, too?"
"The ongoing drought has made the situation quite unpromising. Although our vineyards have a drip irrigation system, we have been forced to reduce the amount of irrigation water in order to ensure the irrigation of pastures and other crops. ”
Robert is also worried about the current drought. If there is a drought, it is good that the yield will drop, and if there is not enough water, the grapes can die.
"We don't have enough water storage and water rights?"
"We have very little water in our reservoirs. And the pumping of the Canadians River is also very restricted. Hanova Farm has more cattle this year and plenty of drinking water for livestock. Irrigation of pastures is also needed. And the groundwater level in many wells has dropped quite a bit – we really don't have enough water. ”
"So it's normal to say that this year's grape production is reduced, but what about the quality of the grapes?"
"The quality of the grapes is very good. Robert said with a smile. "Actually, I'm curious about it. I think the grapes know about the drought, so they reduce the number of fruits, so that each grain is very full. ”
Link didn't laugh either. The ongoing drought is not good news for him. He is turning Hanova Farm into a cattle breeder, and now that the drought is going to have an impact on his plans. If there are too many cattle there, drinking water for the cattle is not guaranteed.