【Chapter 923】 Demand Exceeds Supply (Subscription Requested!)

While Xiao Feng was cooking food for the guests and the cowboys on the ranch, the inspectors of the Ministry of Agriculture worked quite efficiently and quickly came up with the results.

Prime steaks make up 3% of beef cattle's body weight, a figure of just 2% compared to the top-of-the-line Angus Blacks, which speaks volumes about the high quality of the 'Dream Beef Cow'.

According to the price of 'Jinghu Beef' in the market at $500/kg, a beef cow weighing 1 ton can produce 30 kg of Prime steak, which is $15,000!

The cattle raised at Dream Ranch generally weigh around a tonne, which means that each cow will bring in $15,000 for the Mirror Lake Group just by selling prime-grade steaks.

In addition, the second-class Choice steak is also quite popular in supermarkets, and it can bring in about two or three thousand incomes.

In addition, cowhides, bones and other parts of beef are also sold in the market, and 'Jinghu Group' has sufficient channels and capabilities to digest these products.

Lin Lin has finally calculated that a 'dream beef cow' weighing about one ton can earn $20,000 for the 'Jinghu Group', which is quite considerable!

"Happy cooperation!" After reading the report, Xiao Feng and Smith touched the goblet in their hands and said with a smile.

The more than 12,000 beef cattle slaughtered this time will bring in $250 million in revenue for Dream Ranch, which is also the largest revenue since the ranch was acquired.

In the future, with the sales revenue of beef cattle, 'Dream Ranch' no longer needs the blood transfusion maintenance operation of 'Jinghu Group', but has its own hematopoietic function.

It is foreseeable that with the increase in the number of beef cattle in the 'Dream Ranch', the number of beef cattle that can be slaughtered each year will also increase. Dream Ranch pays for itself in a matter of years.

According to the statistics of the financial department of the 'Dream Ranch', the biggest cost of this batch of beef cattle is only the cost of buying calves of 4,000 US dollars, and the cost of concentrate and labor is basically negligible.

The high-quality forage of Dream Ranch can still provide a large amount of hay and green forage for beef cattle even when the mountains are covered by heavy snow, which greatly reduces costs.

Even after deducting various taxes and capital costs. The net profit that each slaughtered beef cow can bring to the ranch will not be less than 10,000 US dollars, which is a lot of money.

The 200,000-acre Dream Ranch purchased by the Jinghu Group was only $200 million, and the total investment was only about $1 billion for the subsequent large-scale automatic irrigation system and various infrastructure construction and equipment.

According to the current development status of 'Dream Ranch', in the next three years, 'Dream Ranch' will be able to recoup its costs just by selling beef cattle!

Compared to the average ranch in the United States, which has an annual return on investment of less than 10%, Dream Ranch has an annual return of more than 20%. It's incredible!

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An order of more than 200 million US dollars, Smith ate it all with a stroke of his pen, which is quite refreshing!

In the palm town, less than 10 kilometres from Dream Ranch, a modern slaughterhouse is already in place, which is an add-on to the 'Jinghu Group's big investment.

The main funds of the slaughterhouse come from the private accounts of Smith and Lin Watanabian, and Benjamin and other old people also invested part of the funds, which reflects the win-win business strategy of the 'Jinghu Group'.

Montana is a highly developed livestock region, and the slaughterhouse with the world's most advanced assembly line can digest more than 1 million large livestock per year, according to the standard of 100 US dollars per head. This is a factory with an annual output value of more than 100 million.

Because, when Xiao Feng made this suggestion. Without any hesitation, everyone quickly threw themselves into the construction of the slaughterhouse.

As for the local government and people, they are also quite supportive of the birth of this slaughterhouse, so the construction of the slaughterhouse has not been hindered in any way.

Local governments naturally need to have more businesses in their jurisdictions, which can both create more jobs and increase tax revenues. It's a win-win.

In the past, many local governments would still be proud of the so-called 'environmental protection' and would be reluctant to bring in companies that could cause pollution, such as slaughterhouses. But in the wake of the subprime mortgage crisis and the European debt crisis, local governments in the United States have learned to bend over appropriately to attract investors.

The so-called 'situation is stronger than people', this is the truth.

As for the local residents. One hopes that the slaughterhouse can bring them some employment opportunities, and the rancher who owns the ranch also hopes that the nearby slaughterhouse can bring more convenience to his ranch operation.

All in all, as a supporting facility of the 'Dream Ranch', the construction process of the slaughterhouse is naturally smooth, which is also a microcosm of the development process of the 'Dream Ranch'.

All of Dream Ranch's beef cattle will be processed in the facility, which is named the 'Rapid Cleaning Slaughterhouse', and the top-of-the-line prime and second-tier Choices will be sold through Smith's 'Wharton Group', exclusively for the upscale western restaurants in the United States and Wal-Mart's 'Organic' section.

Those foreigners don't like it, but the Chinese people are special, and the lean meat and beef brisket that are suitable for braised meat will also be sold to high-end Chinese restaurants in the United States and Canada through the 'Wharton Group', which is also a big source of income.

As for the inferior beef, it will also be sold to canning companies to make canned beef, and eventually appear on the tables of low- and middle-income groups.

The bones and scraps will be pre-treated in the palm town and then sold to China, which is needed by Liu Yonghao's feed kingdom. Compared with ordinary animal protein raw materials, beef bone meal and scraps can be regarded as better production raw materials.

As for cowhide, there will also be special leather companies to buy and process, 'Dream Ranch' slaughtered beef cattle, when they are still grazing in the pasture, all parts of their body already have a clear place.

This is where the advantages of the operation of large enterprises lie, in exchange for the very small scale of the domestic farmers, from the purchase of breeding cattle to the final sale. Almost every link will make farmers anxious and scrambling.

In the 'Dream Ranch', in addition to patrolling the ranch from time to time and putting the 'Space Spirit Spring' into the water source, Xiao Feng, the big boss, will naturally have someone to help him handle the rest of the work properly.

This is the power of capital to free capitalists from tedious daily affairs. You can have more time to enjoy life!

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"Brother Jiu, this old beauty business is too good to do!" When the crowd dispersed, Xiao Qiang, who was walking on the grassland with Xiao Feng, couldn't help but sigh.

At the time of 'Jinghu Ranch', a beef cow could be sold for 12,000-15,000 US dollars, which is already quite high, after all, it is close to 100,000 RMB.

But in the United States, the average price of 20 US dollars/kg of live cattle far exceeded the price level in Huaxia, which directly made Xiao Qiang a little dumbfounded.

"This account can't be calculated from absolute numbers!" Xiao Feng waved his hand. said: "If you want to calculate it, the money that a cow in the 'Dream Ranch' can earn is not necessarily higher than that of the 'Mirror Lake Ranch'!"

First of all, whether it is Wharton Group or Watanabe Supermarket, the purchase of top-quality beef from 'Mirror Lake Ranch' has to pay a part of the tax amount for import and export, which will also be grafted onto the final cost of sales.

In the United States, the Wharton Group has no such spending concerns, and the price it gets from Dream Ranch is already the CIF price. On this basis, the price can be increased to sell, and it is natural to increase the purchase price appropriately.

In ordinary industries. The buyer is basically stronger than the seller, after all, this is an era of abundant materials, and most of the fields are in the buyer's market.

Of course, there are exceptions to everything, such as the iPhone in the United States or the top-quality beef from Dream Ranch.

In the market for high-end products, it is always the seller who takes the initiative. After all, 'uniqueness' can always win greater benefits for the seller in commercial activities.

In order to consolidate the good cooperative relationship between itself and the 'Jinghu Group', the 'Wharton Group' did not pay much attention to the purchase price, which made the sales price of the beef cattle slaughtered at the 'Dream Ranch' look much better.

The United States is a country where beef is the staple food, and the per capita consumption of beef is more than 100 kilograms every year. This has also created a huge market.

In the high-end food market, the demand for Prime beef exceeds 10,000 tons, but the share of global ranches that can supply to the United States fluctuates around 7,000 tons, which also leads to the phenomenon that Prime beef is in short supply in the market.

The beef cattle at Dream Ranch are good, basically one can provide 30 kg of prime beef, and the other free-range farms can have 15-20 kg.

10,000 'Dream Beef Cattle' can provide 300,000 kilograms (300 tons) of Prime beef, although it cannot completely solve the dilemma of the high-end food market in the United States, it is also a shot in the arm!

Now Smith is looking forward to the increase in the number of beef cattle slaughtered in the 'Dream Ranch' after next year, so that his 'Wharton Group' will have more say in the market.

In Xiao Feng's opinion, the cooperation with the 'Wharton Group' is quite pleasant, although it will share a part of the profits, but it can save a lot of worry. After all, it is impossible for the 'Jinghu Group' to greedily eat all the profits in the entire industrial chain, and it is the real way to survive by sharing a certain amount of profits.

According to Xiao Feng's information, the price of Prime grade beef provided by the 'Wharton Group' to high-end restaurants is generally US$650/kg, but the final dish of the restaurant is US$250-300/guest (200g), and the profit margin is quite large!

Perhaps in the eyes of ordinary income groups, eating a steak for twenty or thirty dollars is already a luxury, but the high-end ingredients represented by Wagyu beef and prime beef have to be ten times more expensive on this basis.

'Zhumen wine and meat stink, and there are frozen bones on the road', this sentence is no exception in ancient and modern China and abroad!

"Compared with the domestic market, the consumption atmosphere in the United States is much higher!" Xiao Qiang nodded and said, "Now I am also full of confidence in the future of 'Miracle Farm'!"

After coming to the United States for a few months, in addition to immersing himself in the construction of 'Miracle Farm' and 'Xiao's No. 2 Winery', Xiao Qiang also spent a lot of time on organic food market research in the United States.

Compared with the fledgling organic ingredients market in China, the United States, which has many years of development history and strict laws and regulations, has a healthy and orderly market, which is undoubtedly good news for Xiao Qiang.

In addition, consumers in the United States have a much higher level of recognition of organic ingredients than in China, which provides a broad basis for the sale of high-priced organic ingredients.

According to Xiao Qiang's observations, whether in San Francisco or Los Angeles, the organic ingredients section of Walmart supermarkets is always a scene of customers rushing to buy. Often, many fresh ingredients are sold out within an hour or two of being put on the shelves, and the sales are so hot!

This time, the hot sales of 'Dream Beef Cattle' also gave Xiao Qiang more confidence, and he has more expectations for the future of 'Miracle Farm', which will be produced from the beginning of spring next year.

"I've always said that the way out for high-end agriculture is outside, not inside!" Xiao Feng nodded, and he was also very pleased with his younger brother's growth.

The reason for the decision to shift the focus of investment to the United States is that in addition to the consideration of not putting all the eggs in the same basket, the relatively developed economies and perfect market systems in Europe and the United States are also important factors that attract Xiao Feng.

Perhaps in the future, when China's economy surpasses that of the United States and becomes the largest economy, the high-end food market will usher in a state of vigorous development in China, but at this stage, the capacity of the European and American markets is still much larger than that of China!

Although no one objected to Xiao Feng's decision in person, there must be a lot of concerns behind it, and now that a backbone like Xiao Qiang has a sense of identity, it also makes Xiao Feng a lot easier.

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The news of the first batch of beef cattle slaughtered by 'Dream Ranch' was not hidden from the outside world, and even many media reporters were interviewed on the spot on the day of the test, which also made this amazing transaction known to the outside world for the first time.

Xiao Feng's fans saw that the price of a cow in the idol's ranch was higher than their annual salary, and they were shocked, but also all kinds of envy and hatred!

After getting used to eating 30RMB/kg pork, it is difficult for everyone to understand the prime grade steak that costs more than 500 USD/kg, and the gap is indeed not ordinary!

For a while, on the domestic Internet, the discussion about whether the high price of prime-grade beef is reasonable and worth it has become the hottest topic in the past few days, and everyone has joined in.

From the sky-high price of 'fantasy beef', everyone's topic gradually turned to the asset status of Xiao Feng and 'Jinghu Group', what will be the ranking on the Forbes rich list this year......?

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