713 Multi-line combat
Price wars are definitely not that easy, and for merchants, price wars are also a double-edged sword. Whether you are cutting prices to grab the market or grab the market at a high price, you need to invest your funds in advance.
Now the normal price of coffee berries is the initiator of the acquisition, so it basically depends on his acquisition price, reaching 55-60 KSKS per kilogram.
Others used to buy coffee beans seriously, but after he came to Kenya, he led the coffee berries economy. Although many people gave up after the first round of follow-up, there were still some small trading companies continuing to play.
This year, due to the intervention of those large companies, coffee berries have suddenly become popular. The market for coffee berries has increased by 5 kt per kilogram.
Now we have to fight a price war again, Chen Cheng is also a generous person, and he directly mentioned 70 shillings per kilogram. Of course, those who can give such a price must be recognized by Liu Wenrui after tasting it himself or the coffee beans that the small farmer used to be of good quality.
This price is amazing. Almost five kilograms of coffee beans can wash out one kilogram of coffee beans, which is equivalent to one kilogram of coffee beans, which has reached 350 KShs. The price of coffee beans at the auction house is only 12,600 per fifty kilogram, which is equivalent to 252 KShshs per kilogram.
There is a price difference of 100 kans per kilogram. After selling these coffee berries, you won’t spend any money on washing them. You can make money very worry-free. What are you waiting for? Sell them.
It can be said that it is because of Liu Wenrui and his team's efforts that Kenyan coffee farmers can have a good harvest this year. They have also pushed the trading price of coffee beans up a little, directly breaking through 13,000 Kensing shillings.
This time, the brothers' companies were having a lot of fun, which not only made it impossible for small traders to follow up, but even those large companies with strong capital were very troublesome.
A very simple question is that the price of coffee berries has exceeded the actual transaction price in the auction house. If you have the money to collect coffee berries, why don’t you go to the auction house to touch the beans?
This is a very simple account, easy to calculate. But what's strange is that those big companies actually followed up on this price. Although it was two days later than Liu Wenrui's price increase, they still launched a charge.
"Simon, what's going on with you now? Although I also hope that the price of coffee beans can rise, is there a lot of risk at this price now?" Nick called Lao Liu.
"Nick, it doesn't matter much. As long as the small farmers can remain rational, there shouldn't be too much problem with this price." Liu Wenrui said with a smile.
"Simon, what I worry about is that they cannot remain rational. The impact this year will not be very big, but what about next year? If the coffee bean trade is affected, our country will suffer a lot." Nick said with a wry smile.
"Nick, I really don't think you have to worry too much. Kenya's production in African countries is not particularly high. It has been surpassed by Tanzania since last year, right? So this price increase is only a small fluctuation and can be digested." Liu Wenrui said.
"We also have our own difficulties. Those big companies rely on their brands to compete with us for the market. If we don't think of some solutions, we may not have a good time this year."
"There is not only coffee berries involved, but also fresh tea. This is a helpless choice. I'm afraid the cost of spending more is higher than we estimate, but we must also stick to it."
"If our company cannot tear a hole under the blockade of these large companies, then the future coffee bean trade will still be controlled by these companies and let them do whatever they want."
"Although the acquisitions this season may have an impact on the psychology of some farmers and may also cause a price collapse in next year's harvest season. But I think these are acceptable from a long-term perspective."
"These big companies have been doing whatever they want on this land of Africa for too long, and they have forgotten that even if they can control the market, they need to leave a way out for others."
"I think your official office should also rectify the coffee bean auction and tea crushed auction. You don't need to eliminate the corruption in the auction transaction at once, and at least let them restrain themselves."
"Simon, although you're saying it makes sense, it's still a bit too risky." Nick thought for a while and said.
"Haha, don't worry. Have you forgotten that we have a cooperating café forest? The quality of those coffee beans is very good. I will send these newly produced beans to participate in the competition in the flavor season coffee cup test competition next year." Liu Wenrui said with a smile.
"Kenya's coffee bean production is not top-notch, but they still have the title of "African Heart", which actually represents its quality. With such quality blessings, the impact on the overall market will not be very big. It depends on the control of price risks by these small farmers in the future."
"Anyway, I think that if this year's harvest season has gone through such a round, those big companies will be much more restrained. If I spend one hundred dollars on the acquisition, they will pay at least one hundred and thirty dollars or even more."
"Anyway, the company is my own, so I can be willful. Those big companies have shareholders, and if they are willful, they will affect their stock price."
"And our competition will not last long. We also have our own washing plants in other countries, and now it has been fully launched. In another three to four days, we will almost end this coffee berries acquisition."
"This year we will also enter the coffee bean auction market, and our company will become regular in the future, which will definitely promote the coffee bean trade in Kenya and even other African countries."
"Simon, are you so confident?" Nick asked for a while.
"Of course, our current sales have increased significantly every quarter. This proves that our brand has been accepted by more and more people, so those big companies will find ways to block us." Liu Wenrui said.
"This year is very important for us, and they have to admit that we are already very strong and accept our existence. Anyway, we think this is a good opportunity. If we give up, we may not necessarily wait for a few years next time."
"Well, Simon, I hope our choice is right this time and will not have much impact on the coffee bean trade." Nick said.
"Don't worry, no one is a fool. These small farmers will make money this year, and it will depend on their luck next year." Liu Wenrui said with a smile.
After hanging up the phone, Liu Wenrui's expression was not as relaxed as he said just now. When he made this plan with Chen Cheng, they did not consider the company. They just thought that they should be in a hurry to leave and recover their losses. In fact, these people are all capital tycoons, and they will not miss it when they see the opportunity to make money.
The sale price given by ng company is very interesting now. It bites very hard and comes with Liu Wenrui's funds. This means that Liu Wenrui's loan amount in the bank has been mastered by them.
They didn't want to see Liu Wenrui spend more money on the acquisition of coffee berries and coffee beans, but wanted Liu Wenrui to spend all the money on Sunshine Company's industry.
Even if you don’t contact Clan, Chen Cheng can see this clearly. It can only be said that everything has come together now, and the pressure on funds is relatively high.
After thinking for a while, Liu Wenrui dialed the phone number to Chen Cheng again.
"Have you finished talking with Nick?" Chen Cheng said with a smile after answering the phone.
"It seems that he will contact you first, so I told him not to worry." Liu Wenrui said.
"What should we do next? There is only so much money and there is only so much thing we can do. Should we have a priority?" Chen Cheng asked.
"Of course, we have to fight on multiple fronts now, but first we must ensure the acquisition funds for our coffee berries and fresh tea. Sunshine Company's quotation is so high, so we can just give us a psychological price."
"Anyway, I already own some of the casino shares, so I can take the rest slowly. If the acquisition of coffee berries and fresh tea does not meet the standards, it will affect our profit next year."
Chen Cheng on the phone was silent. He knew Liu Wenrui too much and instinctively felt that something was wrong with his words. Because according to Liu Wenrui's usual style of behavior, he would definitely have to attack in full this time and would not relax every line.
The reason why I asked that just now was just a joke, but I didn’t expect that Liu Wenrui was still very serious.
"Okay, I will reserve funds for the acquisition of coffee berries and fresh tea. But in this case, the offer to Sunshine Company would be too low." Chen Cheng thought about it for a while and said tentatively.
"There is nothing to do. Sunshine Company's price is too high. I can't give up our own main industries in order to acquire these industries, right?" Liu Wenrui said seriously.
"Their current offer is 65 million US dollars, right? Let them play by themselves, at most 38 million US dollars. This is much higher than their construction cost. Even if this hotel and casino can make money, it will take us a long time to recover the investment."
"If we all use this money to acquire coffee berries and fresh tea, how much money can we make in the future? It will definitely make more money than playing casinos and hotels."
"Okay, I'll reply to them the final offer is 35 million US dollars. If they don't agree, let's deal with it coldly first." Chen Cheng said with a smile.
He had guessed Liu Wenrui's intentions. Someone might be listening to the calls between them, so give them a real price and let them consider it themselves.
Chapter completed!