I See through Everything

Chapter 255: Chapter 139: A Succession of Happy Events (Middle)

"Alright, I’ll inform him this afternoon." Jiang Haibo nodded slightly, then asked, "Boss, what are your thoughts on the development plan for Hero Dairy?"

Jiang Miao looked at Hero Dairy’s asset statement. It had four core industries, all centered around the dairy business, including:

Dairy Farming: Its animal husbandry division engages in dairy farming, with a large farm in Jiaoqiao Town, Yuzhang City. The herd size is about 10,000 head, providing a high-quality milk source for dairy product manufacturing.

Forage Cultivation: It owns a grass technology company that not only sells grass seed but also cultivates forage grasses like Guimu-1 Elephant Grass and other high-yield varieties, guaranteeing the feed supply for the dairy herd.

Feed Processing: It owns a feed processing plant with an annual output of 60,000 tons of compound feed and various premixes, satisfying the feed requirements of the dairy farm.

And finally, its main business: Dairy Product Manufacturing. Its dairy plant is a national Grade-II enterprise with advanced production equipment. It has an annual processing capacity of 10,000 tons of milk powder and 30,000 tons of liquid milk, producing dozens of dairy products across four major lines, including milk powder and liquid milk.

After reviewing the materials, Jiang Miao shook his head and picked up his desk phone. "Hey, Hanming, come to my office. Bring the reports on the dairy industry."

"Alright."

「A short while later.」

Market Research Department Manager Qin Hanming walked in, carrying a huge stack of files.

"Boss, General Manager."

"Have a seat." Jiang Miao poured him a cup of tea. "I asked you to investigate the dairy industry before, didn’t I? Tell me about the situation in Gan Province and Lingnan Province."

After taking a seat, Qin Hanming handed Jiang Miao a labeled file and said, "Boss, Gan Province currently consumes 400,000 to 500,000 tons of dairy products annually, while Lingnan Province consumes 1.1 to 1.2 million tons per year."

"Hero Dairy’s annual output is this low... No wonder it can’t get out of Gan Province," Jiang Miao said as he flipped through the documents.

Qin Hanming continued, "Hero Dairy’s cows have a mediocre milk yield, producing only about 80,000 tons of milk a year. The average annual yield per cow is only 8 tons. Moreover, the herd’s breeds haven’t been updated quickly enough in recent years, and many of the cows are old."

"You have to understand, the average cow in America produces 22 tons a year. Of course, American dairy farming uses a lot of advanced tech and some hardcore methods, but let’s not get into that right now. Even the more advanced breeding bases here in our country can manage 11 to 14 tons per cow annually."

Jiang Miao set the file down. After a moment of thought, he said slowly, "Our plan for Hero Dairy will have three main points."

"First, increase the per-cow milk yield. Even if we can’t match America’s 22 tons, we must reach the leading domestic level of 14 tons."

"Second, stop producing pasteurized milk and UHT milk. Switch to producing products like milk powder, cheese, whey protein, and cream."

"Third, we need to expand our footprint. In addition to maintaining our production base in Yuzhang City, we will also continue to purchase new dairy cows and build the Luling Breeding Base, the Gannan Breeding Base, and the Shanmei Breeding Base."

Jiang Haibo said while jotting down notes, "So, Boss, are you planning to use our feed and forage from those three regions to supply the new bases locally?"

"Exactly." Jiang Miao nodded.

After all, Hailufeng Company’s Gannan Branch had 200,000 mu of oil-seed camellia plantations in Luling City and Gannan City. About 160,000 mu of that was under-forest pastureland where white clover and Purple Alfalfa could be grown.

With two harvests a year, each harvest could yield around 3,000 kilograms of fresh grass, which made about 600 kilograms of hay.

That meant 160,000 mu would produce 960,000 tons of fresh grass, 192,000 tons of hay, or 576,000 tons of silage annually.

A typical high-yield dairy cow consumes 3-4 tons of concentrate feed, 6-10 tons of forage or green fodder, and 1-2 tons of hay per year.

Therefore, the forage produced by the Gannan Branch could support the annual needs of about 40,000 dairy cows.

Moreover, white clover and Purple Alfalfa are high-protein, high-quality forages. They are not only highly palatable but can also increase milk production.

Although domestic demand for high-quality Purple Alfalfa Hay is high, with the import price reaching 3,000 to 3,500 yuan per ton, the returns weren’t particularly high for Hailufeng Company.

Because the transportation costs for hay are relatively high, it’s better to use it as a raw material on-site for raising dairy and beef cattle.

At the thought of beef cattle, Jiang Miao looked up and asked, "Hanming, what’s the current domestic price of beef?"

"Beef?" Qin Hanming rummaged through the large stack of files and pulled out a market survey report. "Last year, in February and March, the national beef procurement price rose slightly by 7%, to 58-62 yuan per kilogram. It fluctuated in that range until last September when the price fell again. Currently, the price is holding between 52 and 56 yuan per kilogram."

Jiang Miao tapped his fingers lightly on the desk. "That’s a decent price. We can consider purchasing a batch of beef cattle."

"So, you mean...?" Jiang Haibo stopped his pen.

Jiang Miao immediately gave his orders. "Here’s the plan. Hero Dairy’s task this year is to purchase 40,000 dairy cows, build four large-scale dairy farms, and the related supporting factories."

"Understood."

"And build a 10,000-head dairy base in Gongping Town, Hai Feng County. It also needs to be equipped with a deep-processing plant," Jiang Miao added.

"As for the beef cattle, there’s no hurry. I plan to have the Monan Branch handle that later. After all, we grow so many soybeans in Monan, we need to use some of them ourselves."

For Hailufeng Company, raising dairy and beef cattle wasn’t a major challenge. Jiang Miao could devise superior feed formulas with better feed-to-milk and feed-to-meat conversion ratios at a moment’s notice. While he still couldn’t match the advanced tech and hardcore methods of the America Milk Company, he could at least boost the annual yield per dairy cow to around 14 to 16 tons and reduce the fattening time for the beef cattle.