Silva is a shrewd businessman. He hopes the cooperation model will involve Chen Yiyang importing coffee beans from Yunnan and shipping them to Brazil, where they will be blended and roasted before being exported to customers in Asia.
However, if done this way, Chen Yiyang and Yu Changping will only earn a little money from exporting coffee beans, with very little profit.
"A large portion of the profits from commodities are consumed by transportation costs," Chen Yiyang said, tapping his finger on the table.
"Shipping coffee beans from Yunnan Province in Huaxia to Brazil, roasting them in Brazil, and then shipping them back to Asia... how much profit will be eaten up by transportation costs?"
"You're a friend of little Marco, so I'll speak frankly," Silva said directly.
"If you guys only import coffee beans from here, but handle roasting and shipping there, how can I be sure you won't cut me out and go it alone?"
Silva wasn't too concerned about the profitability of this particular deal.
The yield of Brazilian coffee beans varies each year, and if a partner can be found to absorb all these customers and supply them steadily annually.
That's far more cost-effective than profits from local roasting in Brazil.
But he's worried that once the roasting and shipping are handled in Huaxia, Huaxia might, after gaining client information, cut him out and handle the business independently.
"Do your Asian customers include Japan and Korea?" Chen Yiyang suddenly asked an unrelated question.
"Of course, why do you ask?" Silva was puzzled by Chen Yiyang's meaning.
"Currently, the right-leaning ideologies among various nations internationally are quite serious, especially countries surrounding Huaxia that depend on Huaxia for income but wish not to use any products from Huaxia.
If these coffee beans come from Brazil, they certainly won't have any objections. But if they come from Huaxia, some with ulterior motives might take the opportunity to stir up trouble.
Therefore, in terms of exporting coffee beans to these clients, you could handle that, while we are responsible for roasting and shipping.
Publicly, you can say it's due to a lack of sufficient roasting equipment in Brazil, so the beans were sent to Huaxia for roasting and then sold to other Asian clients. How does that sound?"
Silva understood Chen Yiyang's meaning.
If the business is done this way, Silva earns reputation, while Chen Yiyang earns profit.
Silva expands his customer base and ensures his clients won't seek other suppliers due to the annual changing yield of Brazilian coffee beans.
Meanwhile, Chen Yiyang, through roasting and exporting coffee beans, gains substantial profits.
Each side gets what they need, making it perfectly beneficial.
"May our friendship last long," Silva nodded in agreement with Chen Yiyang, raising his coffee cup and said, "Let's finalize this deal quickly."
After agreeing on terms with Silva, Chen Yiyang found Yu Changping to discuss the matter.
Originally, Yu Changping thought it would be sufficient if the coffee beans he held could be exported.
Unexpectedly, Chen Yiyang even brought in the coffee roasting business.
"I recently established a trading company in Brazil,"
Chen Yiyang said, "So I will handle all the shipping from Brazil to Yunnan and then from Yunnan to Asian clients. Additionally, we can jointly establish a roasting company in Yunnan, specifically for roasting coffee beans. What do you think?"
"President Chen, how much equity do you hope to hold in the roasting company?" Yu Changping was worried that Chen Yiyang might demand a lion's share, leaving little profit.
Chen Yiyang didn't rush to address this issue but was curious and asked, "Frankly, I wasn't very familiar with the coffee bean industry in Yunnan Province before. Which countries does Yunnan's coffee mainly export to?"
"Primarily Europe and America, and ASEAN countries," Yu Changping answered, "Currently, the number one export country is the Netherlands, followed by Germany, the United States, and Belgium.
Within ASEAN, the primary export country is Vietnam, but recently, we're actively expanding export channels to other countries."
"What about Russia?" Chen Yiyang suddenly pinpointed a key point, "After the war, Russia faced international sanctions. Their previous coffee bean suppliers probably couldn't smoothly import anymore, right?"
Earlier, a major aspect of the European sanctions against Russia was sanctions on maritime insurance.
Maritime insurance is a complex industry, and due to Europe's early initiation of the great maritime era, they hold most of the discourse power in the current maritime insurance industry.
Even with technological advancements today, maritime shipping is still a high-risk transport method.
The main reason is that a single container can hold an enormous amount of cargo.
If a container mishap occurs, resulting in a whole ship's cargo being written off, the compensation the ship owner faces would be astronomical.
Not to mention the ship itself is a colossal entity, and if it gets into an accident, the impact on its surrounding environment is enormous, also requiring compensation.
For example, the incident where a ship crashed into a bridge in the United States previously.
The party responsible for the accident had up to one hundred million US dollars in preliminary accident claiming fees.
And that's just the initial accident claiming fees, not including the subsequent costs for rebuilding the bridge.
The rebuilding costs for the bridge were further estimated at two billion US dollars.
Such staggering compensation would make even the world's richest frown.
Let alone the ship owners.
Thus, once a ship sets out to sea, it must be insured to ensure that if an accident occurs, insurance can cover as much as possible.
However, with the advent of war, Europe passed resolutions refusing to insure ships heading to Russia.
Therefore, Chen Yiyang could confidently assert that, for commodities like coffee beans, few merchants would dare use maritime shipping to transport them to Russia without insurance.
"We had thought about selling coffee beans to Russia before, but as Yunnan Province's coffee wasn't well-known and I didn't know anyone over there, we struggled to find buyers," Yu Changping replied helplessly.
It's not entirely accurate to say buyers couldn't be found.
Brazil has a complex business environment, and Russia has rampant corruption, where many law enforcement entities like extorting foreign merchants.
Of course, Yu Changping could find merchants in Russia who would buy coffee beans, but whether he could receive payment is another matter entirely.
"I can help you discuss this," Chen Yiyang thought this business seemed feasible.
He was well-connected in Russia, even with military connections, a formidable strength.
As long as the profits suffice, there's no need to worry about business hassles.
Moreover, Gena, who would go so far as to burn his own country's archive for business, had high mutual trust with him.
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