Sail across the sea

Chapter 252 Telling You Not To Crow Your Tail

Gao Yiping's explanation made Gao Fan confused.He looked at Gao Yiping and asked, "Why, is the county not allowing us to sell urea to other counties? Our county can't digest it, so we can sell it to Yanxiu and Wuyuan."

Yanxiu and Wuyuan are both neighboring counties of Cangtang, both belong to the Luping area, and Gao Fan has visited there before.

Gao Yiping said: "This is the problem. Of course the county will not stop us from selling urea to Yanxiu and Wuyuan, but Yanxiu and Wuyuan also have chemical fertilizer factories. I even took you to eat at Yanxiu chemical fertilizer factory. What about the meal, you should remember, right?"

Of course I know that both Yanxiu and Wuyuan have chemical fertilizer factories. Does this have anything to do with whether they have eaten or not?Gao Fan thought depressingly.

"You mean, the farmers in Yanxiu and Wuyuan are only willing to buy their local fertilizers? No, you mean, Yanxiu Fertilizer Factory and Wuyuan Fertilizer Factory won't let us sell urea from them?"

Although Gao Fan was a little belated, he still figured out the joints.

Yanxiu Fertilizer Factory and Wuyuan Fertilizer Factory, like the previous Canghai Fertilizer Factory, were both fertilizer factories built when the local "five small industries" were being promoted, and even the production equipment was exactly the same as Canghai Fertilizer Factory, that is, 5000 tons Synthetic ammonia plant plus 2 tons of ammonium bicarbonate plant.

Ammonium-to-urine conversion at the Canghai Chemical Fertilizer Factory is a national pilot project of the Ministry of Chemical Industry, and it is the only one in the entire Maolin Province.After transformation, the Canghai Fertilizer Plant can produce urea, while the Yanxiu Fertilizer Plant and Wuyuan Fertilizer Plant are still producing ammonium bicarbonate.

Urea is better than ammonium bicarbonate, that's something all farmers know.If both urea and ammonium bicarbonate are available in the market, farmers have no reason to reject urea and choose ammonium bicarbonate.

Since it is not the farmers' own choice, there is only one situation, that is, Yanxiu Fertilizer Factory and Wuyuan Fertilizer Factory stumbling Canghai Fertilizer Factory in order to keep their own market.

"That's right." Gao Yiping nodded, "We produced the first batch of urea, so I asked the supply and marketing department to contact the agricultural materials companies in the surrounding counties. They were very happy at first and booked a urea with us. Lots of urea.

"But within two days, they backtracked, saying that the county had sent them a notice asking them to give priority to purchasing fertilizers from the county's fertilizer factory, and only use our urea for the shortage."

"This is local protectionism." Gao Fan sighed.

The concept of local protectionism, nowadays, appears in the speeches of leaders every three days. It refers to the situation where localities protect their own markets and resources for fear of being taken over by others.

The concept opposite to local protectionism is the formulation of "a game of chess across the country".According to the theory of the key political situation, China's propaganda belongs to what is lacking, and the reason why the country is desperately advocating a national game of chess is precisely because the whole country has not formed a pattern of chess, but each region is in its own right and divided.

In the era of material shortage, the manifestation of local protectionism is to prevent local resources from flowing to other places.For example, when there is a shortage of chemical fertilizers, local officials will arrange militiamen to stand guard on the main roads. Whoever dares to transport locally produced chemical fertilizers to other places will be intercepted at the border, confiscated and confiscated. "The hat, where to send it to sift the sand for several months.

When the supply of certain materials starts to rise and the market exceeds demand, local officials will reverse the situation and restrict the sales of products from other places to the local area to protect the operations of local enterprises.

In addition to the movement of goods, the movement of people is also true.Sometimes the national ministries and commissions want to transfer a talent from the province to work in the central government, but they will encounter all kinds of resistance, and finally have to exchange some benefits with the local government, so that they can achieve their wish.

Many young people in later generations don't understand what the words "reform and opening up" mean, because they don't know what kind of system we came from.

When Gao Fan first traveled here, he was very unfamiliar with the current system.But after more than half a year, he already had some common sense, and Gao Yiping made a little noise, and he guessed the truth.

"What about the counties that are farther away?" Gao Fan asked again, "I heard Director Xu said that our province generally lacks chemical fertilizers, especially urea. Ten thousand tons should be no problem, right?"

"That's why I've been telling you not to cock your tail. Your understanding of fertilizer production is only superficial." Gao Yiping taught with an inscrutable look, and Gao Fan could even faintly hear some schadenfreude in his tone .

Alas, it seems that my evil behavior in the past half a year has cast a shadow on my father's heart. Now that I have finally found a blind spot in my knowledge, my father can't help but feel terrified.

"Dad, when did I have a tail? You don't have a tail in your genes, right?" Gao Fan said with a smile on his face.

Seeing Gao Fan's resignation, Gao Yiping explained: "Of course it's no problem to transport to other counties. But if the freight is included, our profit will be gone, and we may even suffer a loss. In the past, when the country engaged in small fertilizers, you Do you think it is because a large chemical fertilizer plant cannot be built? The main reason for building a chemical fertilizer plant in each county is to save transportation costs.

"If only one large chemical fertilizer plant is built in the whole province, and the fertilizers are transported from the provincial capital to the farthest counties, the sales price will not even cover the freight."

"There is such a saying?" Gao Fan was really surprised this time, this was an angle he had never thought of.

There is a concept in economics called scale effect.This concept first came from industrial production.

A large factory is more efficient than a small factory, and this rule is applicable to most industrial production.

Taking chemical fertilizer production as an example, the small chemical fertilizers produced by the state in the past basically had an annual output of 3000 to 5000 tons of synthetic ammonia, plus 12000 to 20000 tons of ammonium bicarbonate.If a medium-sized chemical fertilizer plant with an annual output of 5 tons of synthetic ammonia is built, its energy consumption will be far less than the sum of ten 10-ton small chemical fertilizer plants, which is obviously more economical.

What's more, the management cost and the number of employees of a factory are far less than that of 10 factories, so the cost savings are also very considerable.

However, from the late 60s to the mid-70s, the country did not vigorously build large and medium-sized chemical fertilizer plants, but built a number of small chemical fertilizer plants everywhere.In Gao Fan's opinion, this is mainly because the equipment and technology requirements of large and medium-sized chemical fertilizer plants are higher, and the country does not have the ability to build so many large and medium-sized chemical fertilizer plants, so these small chemical fertilizer plants have to be used first to meet the demand.

According to Gao Yiping, it seems that building a small chemical fertilizer plant is more efficient than building a large and medium-sized chemical fertilizer plant, which is beyond the scope of Gao Fan's knowledge.

(End of this chapter)