Becoming Rich with Daily Scavenging APP-Chapter 406: Fifteen Days Apart

Saudi Arabia is by the sea, but it lacks freshwater.

That’s why the prices for freshwater fish and vegetables are extremely high in Saudi Arabia, with a considerable profit margin.

"Is there a market for freshwater fish in Saudi Arabia?" Chen Yiyang curiously asked, "Or rather, do people here get used to eating freshwater fish?"

"I used to be in this business, and for sure it’s because the freshwater fish market in Saudi Arabia is huge." Abdul explained.

"However, Saudi Arabia used to import freshwater fish products from Myanmar, but recently the freshwater shrimp supplied from there was found to have a virus, so all freshwater products from Myanmar were banned from entering Saudi Arabia."

"I see." Chen Yiyang understood why Abdul was eager to discuss with Huaxia businessmen.

For a country like Saudi Arabia, with a fragile ecosystem, once an imported live animal carries a virus, it would definitely be banned from importing any live animal products for a long period.

Now that Myanmar’s freshwater products are banned from entering Saudi Arabia, Abdul urgently needs a reasonably priced freshwater fish supplier to replace Myanmar’s position.

After all, others could eat sea fish, but he himself would face bankruptcy.

Thinking it over, Huaxia was almost the first choice.

Chen Yiyang has a lot of industries under his name too.

After chatting with Abdul for half a day, he realized he could really take on this business.

When he was collaborating with Meihe’s CEO from Japan, Chen Yiyang happened to establish an aquaculture company, mainly to help Meihe’s CEO with aquaculture in Huaxia, so he also has a relevant team and talent.

After exchanging contact information with Abdul, they parted ways.

Returning to the hotel room, Chen Yiyang called the supervisor in charge of aquaculture back home to discuss this matter.

"Boss." The aquaculture supervisor said, "This kind of business might not be easy to do."

"Why is that?" Chen Yiyang curiously asked, "If you’re worried about the business environment, I’m here with the delegation of domestic business negotiators, so there’s no worry if any issues arise."

"It’s not about the business environment." The aquaculture supervisor said, "It’s about the distance. Myanmar’s port can directly reach Saudi Arabia through their own port, we still have to detour through the South Sea. There’s about a fifteen-day difference in the shipping route."

Shipping is currently the most efficient and economical mode of transportation in the world.

Because of this, a day’s difference in shipping time can make a huge cost difference.

Let alone the fact that it takes fifteen days longer to ship from Huaxia’s port to Saudi Arabia compared to Myanmar.

The total shipping time from domestic ports to Saudi Arabia’s Jeddah Port is between twenty and thirty days.

This means the transportation cost would be twice as high as from Myanmar.

"We have no problem supplying Saudi Arabia with farmed freshwater fish, but if we want to expand capacity and operate the line, the upfront costs can’t be recouped in less than five or six years without a return on investment.

At this time, Myanmar is indeed unable to export freshwater fish to Saudi Arabia due to the virus issue with their shrimp products.

But if Myanmar completes their rectifications and the quality of their freshwater fish satisfies Saudi Arabia, regaining the qualification to export.

Then Myanmar could use its fifteen-day transportation time advantage to squeeze us out of the market.

Boss, if you can guarantee that Myanmar won’t regain the export qualification to Saudi Arabia within ten years, we could still consider this business."

How can anyone guarantee these things when it involves countries?

Chen Yiyang worriedly knocked on his head.

Even though Saudi Arabia is a monarchy and currently, the Crown Prince of Saudi Arabia holds power.

Even if Chen Yiyang wins the favor of that Crown Prince and lets his company dominate the freshwater fish and shrimp market in Saudi Arabia.

It takes at least five to six years to recoup costs and a ten-year period to make big profits, which is too long.

If anything goes wrong in between, this business will be a loss.

Even if the Crown Prince himself agrees, people change, what if the Crown Prince changes his mind in three or four years and allows Myanmar’s fish back into the market?

What if the Crown Prince is even ousted and someone else takes over Saudi Arabia?

By then, all the preliminary investment would be wasted.

The fifteen-day shipping time difference from Myanmar’s freshwater fish industry would be enough to erase all technological advantages.

What’s more, Myanmar’s labor cost is even cheaper than domestically, and equipment purchased from Huaxia wouldn’t be too expensive either.

After finishing the call with the aquaculture supervisor, Chen Yiyang prepared to find some time to discuss with Abdul.

Because of this uncertainty with Myanmar, the cooperation between both sides was unlikely.

Chen Yiyang wasn’t willing to take risks. The cost of freshwater fish farming domestically is very low, and all the fish farms’ profits are squeezed too much already.

If Saudi Arabia doesn’t buy the fish then, and the farmed freshwater fish is sold domestically, it might not even recover the cost.

"Why are you so busy today?" At that moment, the small accountant happened to come out of her room and asked why Chen Yiyang had been on the phone all day.

"Finally thought I could do some business, but it turned out to be no go after understanding it." Chen Yiyang said a bit depressed. 𝐟𝗿𝐞𝚎𝚠𝐞𝚋𝕟𝐨𝚟𝐞𝕝.𝕔𝕠𝚖

"What kind of business?" The small accountant asked.

"A fifteen-day voyage is really a problem." After hearing Chen Yiyang’s account, the small accountant quickly thought of something.

"If we directly set up a farm in Saudi Arabia, wouldn’t the transportation distance be even shorter than from Myanmar?"

"A farm in Saudi Arabia?" Chen Yiyang widened his eyes, "This is about farming freshwater fish, not seawater fish. Saudi Arabia doesn’t have rivers luxurious enough for farming freshwater fish."

"We can use net-cage farming or closed-loop aquaculture," the small accountant said, "When you went to Japan earlier, didn’t you engage in aquaculture?

I coincidentally researched current aquaculture technologies at that time. Domestically, net-cage and closed-loop aquaculture can do external water resource interchange.

But not in Jidah Port, as it’s by the sea and there’s no way to run closed-loop farming. We need to find a climate-suitable, enclosed area."

"You’ve really opened my eyes," Chen Yiyang said after listening to the small accountant, showing the look of meeting her for the first time.

"Can’t I study?" The small accountant crossed her arms and scoffed.

Apparently, Chen Yiyang’s surprise brought her great pleasure.

"People say you should look at someone with fresh eyes after three days." Chen Yiyang patted the small accountant’s head, "As a reward, I’ll buy you a lion as a gift in Saudi Arabia."

"Are you crazy? How are you going to raise a lion as a gift? The lion will leave nothing but a few bones of you to take home afterwards."