Volume 1 Chapter 18 Not enough money to spend is the norm

There are a lot of cattle in Brazil, which also means that the competition in the cattle industry is very fierce. www.biquge.info This fierce competition is not only the competition of cattle farms, but the competition of the whole world's cattle industry chain.

In fact, the price of beef in the world has not increased much in recent years, while the price of beef in Brazil has been rising. The main reason is inflation, and the minimum wage for workers has been increasing.

This is the same as what China did in the past, which used the adjustment of the minimum wage as the main means of balancing the distribution of wealth. Of course, there is a big difference between the two. The constant use of strikes in Brazil as a means of constant demand for higher wages is also one of the main drivers of wage increases. Maybe that's why the country likes to go on strike so much – why not go to work and raise wages?

I am afraid that no government can afford to allow workers in a certain industry to travel for long periods of time without going to work. Especially in civil servants or financially funded positions, these jobs are the most violent. Because they can get paid even if they don't go to work - that's where the benefits of the annual salary system are. This kind of thing has to be put on hold in Huaxia, and if you raise your salary, you will be dismissed directly!

Regardless of the industry, if the wages of workers are raised, the cost will inevitably rise. Of course, the cattle industry cannot escape this law. As a result, the price of beef in Brazil has risen, but in fact the price is still lower than that of other major cattle-producing countries, and the profit margins are also declining. As a result, the competition in the cattle industry has become more and more fierce.

For Brazilian cattle, the domestic market is almost saturated. Every year, each person eats between a quarter and a fifth of a cow.

If they eat it all, the average weight of Brazilians may increase by more than ten kilograms, and the Brazilian football team may also become a Chinese national football team. Therefore, in order to prevent the unrestricted weight gain of the population, the export of beef is a must.

However, Brazil's beef exports are also subject to competition from other countries, and in the continent of South America, the main competitor is Argentina, a country that is said to be rich in world-class beauties. Other major competitors worldwide include the United States, Australia and New Zealand.

Although Brazilians claim to produce some of the best beef in the world, they actually outperform Brazilian cattle in terms of quality. So Brazil can only compete in the low-to-mid market. The competitiveness of these countries is lagging behind.

Worst of all, the productivity of the cattle industry in Argentina, which is also a developing country in South America, is 20% higher than that of Brazil, and more than twice as high as that of the United States. In fact, this is the main reason why Brazilians have cheap beef in the country, because if the country can't digest most of it, a lot of beef will have to be fed to the mermaids in the Amazon.

Under the incentive competition, the business of selling 300,000 calves at once is also a big business that is hard to come by for a large company like the Matsuda Group. So, the representatives of their headquarters quickly visited Li Sheng, and the next day they came to Obidos.

Soon a small plane landed on the airfield in Silent Pasture. This time, the efficiency of the Matsuda Group appears to be very high.

Li Sheng, as the boss, should greet the object of business negotiations, after all, this time the other party is not a salesman but a business representative sent by the other party after he came to the door.

Brazil's business negotiators are serious, they are not used to making deals by phone or email, preferring or preferring to negotiate terms face-to-face – some say this is the main reason for their inefficiency.

There were two representatives from the Matsuda Group. One was the head of their aunt at Obidus yesterday, and the other was a white man in his forties.

After the two got off the plane, the aunt gave Li Sheng a hug very warmly, but quickly let go: "Mr. Li, it's a pleasure to see you again." This is Mr. Holder, the representative of our Matsuda Group headquarters. He is the General Manager of the Sales Department at the head office. ”

According to the business habits of Brazilians, Li Sheng stretched out his hand: "Hello, Mr. Holder." Welcome to Silent Pastures. ”

Holder smiled and shook his hand and said, "It's an honor to be on your ranch, Mr. Lee." It's very beautiful here. ”

"I think we can come to my house and have a cup of coffee first. "Brazilians are the world's largest producers of coffee, and at the beginning of the last century, they even created a miracle of the coffee economy for more than a decade. In those decades, Brazil accounted for more than 80% of the world's coffee production, and the whole country relied on coffee to develop rapidly, but unfortunately the good times did not last long. There's no reason why they shouldn't like coffee, though.

Li Sheng doesn't know the level of coffee he makes, he usually brews and drinks it by himself, but in fact he rarely drinks coffee. This time, although his clients were complimenting, they took a sip and put it down, thinking that the politeness component was very heavy.

As soon as the three of them sat down, Holder and his aunt complimented him on how beautiful his cottage was, and how incredible it was that the grass in his pasture grew like this in the dry season. Anyway, it's just to praise what you catch.

Li Sheng is not used to this kind of business exchange. However, he also checked the living and communication habits of Brazilians, and had to follow the local customs.

Brazilians will wait for each other to get to the point first. This, he felt, was a bit overkill. It's as if whoever brought it up first had the upper hand. Of course, perhaps they have adopted this as a necessary etiquette in business dealings.

This kind of etiquette only has an illusion in Li Sheng's eyes: "Ya, do you want to stay for lunch?"

He had no choice but to take the initiative to change to the topic after a while: "Mr. Holder, I want to know, are all the calves provided by the Matsuda Group bred by your group?"

"In fact, a large part of it is cultivated for us by the cattle farms we are affiliated with. But we've been tracking these calves. There is absolutely no problem with health and epidemic prevention. Holder immediately restrained his smile and entered the negotiation mode.

Li Sheng frowned and said, "In other words, the cattle you provide are likely to be at risk in terms of quality, which you can't be sure of." ”

"No, no. Mr. Lee, you can't understand the cooperation between us and other cattle farms in this way. In fact, we've been implementing this breeder model for five years now, and millions of these calves have been sold, with no major quality issues. All our customers have a lot of trust in the quality of the calves we sell. So your worries are unwarranted. ”

Li Sheng nodded and said, "I believe that your company will not sell problematic calves." But when I ask Matsuda Group to buy cattle, I look at your quality, but now the cattle you sell are bred from other cattle farms. Can you guarantee the same quality as your own farm? I don't think so. ”

Holder also understood that this was a bargain. But he couldn't open his own mouth to lower the price: "So what do you mean?"

"Prices are down 10 percent. Of course, I can buy all the calves between six months and one year old. At the same time, 13,000 heifers were purchased. ”

Holder immediately shook his head and said in an exaggerated tone, "That can't be, Lee." We're going to lose money at this price. ”

"In that case, I think we have lost the basis for negotiation. ”

Hold, of course, could not give up such a big deal. And just now he saw that the quality of the grass in this pasture is very good, at least far better than other cattle farms in the Amazon plain.

He frowned and thought about it for a moment and said, "Lee, we can accept the condition of a 3% price reduction." ”

“5%。 Li Sheng added.

"Good. However, you will need to pay a deposit of R$100 million in advance. When the number of cattle delivered reaches 100,000 heads, another 150 million reais is paid. Full payment within one week after full delivery. Holder thought for a moment and said.

Li Sheng nodded and said, "I accept this condition." ”

"Great, I think we should have a drink to celebrate. Holder didn't expect it to be so easy to negotiate this time. Although the price has been lowered, the one-time shipment of more than 360,000 cattle is not a small profit.

Li Sheng re-brewed a cup of coffee for them. The two parties agreed to go to Brasilia the day after tomorrow to sign a formal contract.

After sending the two away, Li Sheng began to think about how to raise enough money. He still has an advance payment. But this batch of cattle, at most, will be delivered to all two. And the second payment, he can't get it. If this is to complete the business, he may have to raise at least 150 million reais within half a month. That's about $70 million.

Last time, he was able to get 200 million euros, mainly because he sold a "large amount" of rosewood. Not this time. It's only been more than four months, and if a large amount of red sandalwood is taken out again, it will be a blow to Fernando. Although the two sides also don't have much to do with each other. But the other party seems to have a lot of power in Brazil, and if you offend, you don't know what trouble it will be.

If he provokes the other person, he may be given special attention in Brazil. So he gave up the idea of taking out red sandalwood.

Of course, he can also take out the jade thing. But he wasn't going to do that. The value of jadeite is difficult to define. And he was a little reluctant to take out high-quality jadeite for money.