PCJ – Chapter 334 Establishing a Factory

“Jiaohua, when I was in Zijiang, I heard Master Chen say that bamboo tube black tea sells for hundreds of dollars a box, and some even reach a thousand dollars a box. How much did you actually make last year?” Liu Qiaoye asked.

“Hundreds? A thousand? It’s not that much. All my bamboo tube black tea was purchased by the Zijiang City Government, and they were all sold at 220 dollars a box. The Zijiang City Tea Factory set that price. After deducting various expenses, it seems like I earned about 156 dollars a box. I’m not even sure of the exact amount; Uncle Zhao directly transferred it to my account. Besides, I also have income from the horticultural farm’s tea leaves, and for those tea fields managed in partnership, I can also get a share of the income. I think I have some accounts.” Zhang Jiaohua took out a ledger.

As a child, Zhang Jiaohua wasn’t very interested in accounts. However, seeing that bamboo tube black tea sold for hundreds or even thousands in the market, only to earn one or two hundred, felt like a significant loss to him. But there was no alternative; with Meishan black tea in his hands and no sales channels, he might not even sell it for more than a hundred. Previously, Zhao Jinyuan mentioned that all the Meishan black tea was supplied to government orders. Although there were short-term losses, it was the best way to promote bamboo tube black tea.

Zhang Youping and Liu Qiaoye calculated the accounts all day and finally sorted everything out. They made quite a bit, much more than Zhang Youping earned from the recycling station. Moreover, bamboo tube black tea was priced very low. If the price could reach a normal level, this amount would at least multiply several times.

“More than 260,000.” Zhang Youping and Liu Qiaoye exchanged glances, both with expressions of disbelief. They knew Jiaohua made quite a bit, but they didn’t expect it to be this much.

“This year, the tea production will definitely increase. If it’s at last year’s level, we’ll probably earn even more,” Zhang Youping calculated.

“Yeah. The tea trees at the horticultural farm were almost dead before. I don’t know how Jiaohua revived them. This year, the growth of the tea trees is better than when they were in the production team. The yield will definitely be double that of last year.” Liu Qiaoye nodded.

“Other horticultural farms should be similar. Jiaohua seems to have said he transformed all of them. So the yield of other horticultural farms will also increase this year. My goodness, if you calculate it this way, aren’t we going to earn over 500,000 this year?” Zhang Youping initially thought he’d done well earning a few tens of thousands from Guangdong, but who knew his child would quietly become a little millionaire at home.

However, the situation changed in an instant.

When Zhang Jiaohua returned home from school, Luo Changjun hurried to Meizi’ao, bringing news from the Zijiang City Tea Factory.

“I originally wanted the Zijiang City Tea Factory people to come to Meizi’ao to discuss this year’s contract, but they refused and insisted on discussing it in Zijiang City. The new director of the tea factory, Fei Zheng Lu, is quite imposing,” Luo Changjun said excitedly, but also a bit nervously.

“Since they are unwilling to continue cooperating, there’s no need to discuss it further,” Zhang Jiaohua shook his head. There was no need to beg others for cooperation like that.

“But our county’s tea factory has been shut down for years, and there’s no sales channel. It might lead to a large accumulation of tea leaves, causing huge losses for the tea farms. The county’s tea industry expansion plan will also face significant challenges,” Luo Changjun expressed his concerns.

With the tea trees in each tea farm thriving, this year’s tea production in Xintian County would definitely reach new heights. Even when the Xintian County Tea Factory was operating, it couldn’t handle such a large production, let alone now that it had been shut down for years. Restarting operations would not be easy. Tea picking is concentrated in a short period, and if processing isn’t done in time, the tea will go to waste.

Last year, Xintian County’s tea production reached over 6,000 tons. Although this was just raw tea, it was still a staggering amount for the county tea factory.

This change caught Zhang Youping and Liu Qiaoye off guard. Because of the horticultural farm, Zhang Youping had already given up on the recycling station that had shown some promise. If the horticultural farm couldn’t succeed, what would they do next?

“I can try to increase the production of bamboo tube black tea,” Zhang Jiaohua said quietly.

Luo Changjun shook his head, “How much difference can that make? Even if your bamboo tube black tea’s production increases tenfold, it still won’t be able to digest much tea.”

“We can set up a factory to digest all the tea,” Zhang Jiaohua thought for a moment and said.

Luo Changjun was taken aback, “Set up a factory in Meizi’ao?”

Zhang Jiaohua nodded, “Our black tea is so good; the Zijiang City Tea Factory used to want to benefit from the bamboo tube black tea. Why can’t we use the reputation of bamboo tube black tea ourselves? Right, since we’re no longer cooperating with the Zijiang Tea Factory, they definitely won’t want to send our bamboo tube black tea abroad for awards anymore. We need to find a way to use our own tea factory to send the tea out.”

Luo Changjun’s eyes lit up, “Exactly! As long as we win a world gold award internationally, our tea will need no advertising; others will come knocking. As for the Zijiang City Tea Factory, let them regret their decision later. Jiaohua’s plan is good. It’s better for you to set up the factory yourselves. We don’t have to worry about funding; I’ll report back to the county leaders. Although it’s different from the county’s initial plan, the result will still be the same. As for where to build the factory, shouldn’t we think it through? The transportation in Meizi’ao isn’t very convenient. If all the county’s tea is sent here, it will incur costs and affect the tea’s quality. It’s better to build the tea factory in the county. Or even directly contract the county’s tea factory; the site is already available, which can save a lot of money.”

Zhang Youping and Liu Qiaoye found themselves unconsciously letting Zhang Jiaohua take charge. After Luo Changjun left, the couple finally came back to their senses.

Liu Qiaoye gently tugged at her child’s ear, “You child, how can you be so bold? Do you think setting up a factory is child’s play? Our family’s money thrown in might not even make a bubble!”

“Exactly. Several thousand tons of tea, even at a few cents per pound, will require over a million in funds. If the tea doesn’t sell, the interest alone will be a huge amount,” Zhang Youping, although also an entrepreneur, felt that jumping into investing millions in a factory was beyond his capacity.

“Dad, the tea isn’t picked in a day. Didn’t Uncle Luo say he would try to get a low-interest loan?” Zhang Jiaohua had no concept of money and wasn’t cautious; he was fearless as a newborn calf, and he didn’t think about the troubles that would come if he failed.

Zhang Jiaohua viewed this adventure as a breakthrough in his cultivation. The old Taoist master said that cultivation is about going against the heavens. If one doesn’t have the courage, how can one change their fate? He hadn’t considered failure at all.

Luo Changjun hurried back to Xintian County and immediately reported to Deng Junshan.

“They want to set up their own factory? What about the county tea factory?” Deng Junshan originally intended to resolve the county tea factory’s issues.

“I’ve decided that the county can contract out the tea factory. Comrade Zhang Youping is the best candidate. Otherwise, the county tea factory will continue to be a burden that cannot be shaken off. Private enterprises are more flexible, and Comrade Zhang Youping has mastered the key techniques for tea production. This will alleviate their concerns and allow them to boldly engage in tea processing,” Luo Changjun noticed Deng Junshan still had doubts and hurriedly explained the pros and cons.

Deng Junshan nodded, “But does Zhang Youping have enough funds for the tea factory investment?”

“Of course not. Can the county find a way to apply for a poverty alleviation loan from the province? After all, if the tea factory is successfully set up, it will be crucial for our county’s farmers to escape poverty and become prosperous,” Luo Changjun knew that as a poverty-stricken county, Xintian County had a certain quota for poverty alleviation loans every year. These loans were low-interest or even interest-free.

“I’ll consider this,” Deng Junshan didn’t make an immediate decision.

“Zhang Jiaohua said this year he could increase the production of bamboo tube black tea,” Luo Changjun added.

Deng Junshan looked at Luo Changjun without immediately responding. After a while, he said, “How’s the matter regarding the bamboo tube black tea’s participation in the World Agricultural Expo going?”

“The Zijiang City Tea Factory is indeed preparing to withdraw bamboo tube black tea. The province disagrees because bamboo tube black tea is the most likely to win a gold award. My idea is to let Comrade Zhang Youping register the tea factory and use the newly registered factory to submit the tea for evaluation,” Luo Changjun said.

“This matter must be handled quickly,” Deng Junshan said.

Zhang Youping still decided to set up the factory in Meizi’ao. Although the county was much more convenient in terms of transportation and other aspects, it was also much more complicated. There might be various restrictions at that time. The county tea factory was even more of a mess; taking over the county tea factory would also mean taking over its various troubles.

Instead of this, it was better to build a new factory. Zhang Youping didn’t plan to invest too much; he knew his capabilities. Managing a recycling station was fine, but running a big factory was simply not possible. So he prepared to take it step by step.

With nearly 300,000 in funds, the majority would be used to build the factory and buy some necessary machines, which would be enough. He also hired some experienced tea masters and brought in some retired tea masters from the Zijiang City Tea Factory through Zhao Jinyuan. Some of these individuals had already left their posts for their children and retired early. This situation was not uncommon in state-owned enterprises.

This also explained why Deng Junshan hadn’t responded; construction had already started at the Meizi’ao horticultural farm. Even if Deng Junshan agreed now, it would be too late. Luo Changjun felt quite regretful.