Chapter 368 – Tian Peng Pig Farm wins
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It became a nightmare for those illegal sellers of imitation Tian Peng Pork overnight. The Central Government was aware of this issue and was looking into this matter. The names of these sellers and farms were pointed out during the program!
The local officials of those regions where the farms and sellers were located were going crazy. Their higher-ups had called to reprimand them.
This was a disgrace, and their dirty laundry was shown to the whole nation!
The “eradicate imitation Tian Peng Pork” movement had started all over China!
Many pig farms which had to make use of Tian Peng Brand to turn losses into profits. Now, the government started to clamp down on them. There was no way for them to escape. These farm owners suddenly remembered that Tai Hua Food Processing Factory had warned them about the illegal usage of Tian Peng brand.
But these people had ignored the warnings. The local government had not taken any actions against them. What can a private company do to them? Now, the local authorities can no longer turn a blind eye on their activities. The punishment was severe too.
Hefty fines, force closures, confiscation of their vehicles and illegal monetary gains. These pig farm owners and sellers were all in trouble! All of them regretted not heeding the warnings.
Those officials that were in cahoots with these farmers and sellers were investigated by the higher authorities. Some of them were thrown into jail.
All these people had made a lot of money recently. They thought that they would earn more than double than last year.
But none of them expected CCTV to expose them. They heard that the top officials from the Central Government wanted the crackdown on such activities. They were only the first ones to sacrifice.
Once the government began to look into this issue, all the Tian Peng Pork imitations disappeared within 3 days!
At the same time. Tai Hua Food Processing Factory’s representatives appeared again and started to negotiate with those farm owners. Now, Tai Hua Food Processing Factory was no longer negotiating about buying a stake into their farms. They also wanted to buy over the entire farm!
These farm owners had suffered heavy losses, and they can’t even afford to pay the hefty fines. The local government had told them that if they were unable to pay the penalties, their farms would be confiscated!
If their farms were confiscated, they would be left with nothing. However, if they sell their farms to Tai Hua Food Processing Factory, they might still have some money left after paying the fines. They might even have a chance to bounce back.
But when the negotiations started, these farm owners broke down. They had spoken to Tai Hua Food Processing factory’s representatives previously and had almost finalized the prices for their shares. But before the deal was settled, those representatives suddenly left.
Now, those representatives returned. It was evident that they wanted to make use of this opportunity to take advantage of them. All their previous offers were changes. They were not interested in investing anymore. They wanted to buy over their farms, and the amount they offered was too low!
The amount offered to buy out their farms could only buy 70% shares before the crackdown. There were no profits for those owners now!
The representatives were firms in their stand. Times were different now. If you do not agree, fine. We shall sue you. You think after paying the government fines, all your troubles will be over? We will sue you, and you will still need to pay us damages. This matter had blown up now. After paying your fines, you might even be jailed!
We will not sue you, but you must agree to our buyout price of your farms. You have to clear all those pigs in your farms, and we will send a batch of pigs over. We will use our scientific methods of rearing pigs and animal feeds. These pigs will then be qualified to be sold as Tian Peng Pigs!
We are buying your farms because of your locations. The pigsty in your farm will be tear down and rebuild into modernized pig farms!
These people did not agree to such low prices. They have nothing left after paying the fines.
So, these people came up with al sort of tricks. Some of them used bribery, hiring thugs, and some even went into hiding.
Zhang Ming told those representatives to ignore these owners. Whoever that can buyout those farms will get rewards. The highest prize money was more than 10,000 RMB! Those that received bribes from the owners will not only be sacked. They will be handed over to the police!
Actually, it was impossible for Tai Hua Food Processing Factory to buy out all these farms. Not only they do not have enough funds, but they also do not have enough resources to manage so many farms. Furthermore, there was no need to take over those small farms. Most of these farms were still invested using Tian Peng Brand.
But there were a few large farms which Zhang Ming wanted to buyout. These farms were city level scale and were suitable to be converted into Tian Peng Pig farms.
To convert a pig farm was not an easy task. It was because of the layouts and environmental conditions. So, Zhang Ming had to engage Professor Su to help out. Those farms that Professor Su thinks that it was suitable to be converted into modernized farms were Zhang Ming’s target.
Those farms that were not suitable will be invested using Tian Peng brand.
Zhang Ming was still in Chengdu, negotiating with the most prominent pig farm’s owner. This farm was his top target, and he must get it. It was because Sichuan province had the highest population of live pigs. This province was one of the top pork producers in China. China’s most famous ham and sausage company were using the pork from Sichuan.
If Zhang Ming could take over this farm, then Tian Peng brand would be established in this region.
……
“Manager Zhang, these are not the terms offered by you a few days ago. How can you change it?”
“Those are the terms a few days ago. That was in the past! You had used our brand illegal, and now the government is investigating into this. Your losses should be huge, right? If you refuse to sell your farm to use, you will not be able to pay your fines and can’t repay your bank loans. Not only your farm will be confiscated, you will also still be thrown into jail!” Zhang Ming firmly said.
“Manager Zhang, but you cannot lower your offer by so much. You are taking advantage of our plight!”
Zhang Ming smiled: “I have given you this chance. Have you ever wonder how we got the higher-ups to look into this matter and punish the farms all over China?”
……
Feng Yu listened to Zhang Ming’s update and nodded. Zhang Ming had done an excellent job with his business strategy and negotiations. Not only he had successfully invested in more than a dozen pig farms, but he had also acquired 4 large-scale farms. These 4 farms were now under reconstructions.
Zhang Ming had said that Tian Peng brand was now China’s biggest pork brand. But they still have not captured the whole of China’s market. They had only obtained the major cities’ market. When those food processing factories they acquired started operations, Tai Hua animal feeds will be China’s top animal feed.
Overall, Feng Yu was satisfied with Zhang Ming’s performance in the handling of this incident. If Zhang Ming can let Tian Peng Pork to sold all over China within 3 years, Feng Yu would renew his contract and give him the company’s shares as promised!
The Tian Peng Pork incident had finally come to an end. It was time for Feng Yu to fly to Russia. He needs to discuss with Kirilenko about their Mining enterprise’s development.
Translator Notes: This Tian Peng Pig farm incident had shown the reasons why Feng Yu needs to suck up to the government. Local government officials can be in cahoots with businesses. These officials can do whatever they want in their region. Unless the higher-ups from the central government take actions, these officials can turn a blind eye over illegal activities. They had too much authority in their area.
Although Feng Yu was frequently taken advantage by the Bing City government, he did not move his operations out of Bing City. It was because the local governments tends to protect their own people first. If Feng Yu were to shift his businesses to another province or city, the government there might be worst than Bing City’s.