King of the Wilderness

Chapter 582: Chapter 296: The King’s Authority (Part 3)

Including:

Basic cattle herd: 500 heads, which is the core of our productivity.

Premium breeding bulls: 20 heads, each with rigorously screened genes, valued at over 50,000 dollars each.

Calves awaiting fattening: approximately 350 heads.

Beef cattle in the fattening process and ready for slaughter: approximately 330 heads.

The estimated biological asset value of the entire cattle herd is approximately 3.2 million dollars.”

”The former ranch owner’s business model was order-based production and targeted supply. The focus was on extreme quality and profit margin, not on quantity.”

”Last financial year, a total of 158 fattened cattle were slaughtered. The average live weight per head was about 1300 pounds, producing approximately 750 pounds of bone-in beef after slaughter.”

Arthur pulled up an extremely detailed income and expenditure report.

”Prices vary by part. The most premium ribeye, sirloin, and filet, for Michelin restaurants, command a supply price of up to 150 dollars per pound.”

”Ordinary cuts like brisket and shank are priced at about 30 dollars per pound. After processing and packaging at the factory, the total sales revenue generated by each cow averages about 77,600 dollars.”

”Therefore, the total sales revenue for last year’s 158 cattle—the gross income of the cattle business—was: 12,260,800 dollars.”

”However, the cost of maintaining this quality is also extremely high.” Arthur’s tone was very serious as he pointed to the huge numbers in the expenditure section, ”This is the necessary cost of maintaining quality, and last year’s total expenditure was 10,660,000 dollars.”

Lin Yu’an quickly calculated in his mind. Expenditure of 10,660,000... income of 12,260,000... In between, there is indeed profit space, but it is far less massive than he imagined.

This made him even more convinced of the authenticity and sustainability of the project.

He originally thought that achieving a balance of income and expenditure for such a top-grade estate’s supporting industry would already be considered quite an outstanding operation.

Arthur’s voice continued, pulling Lin Yu’an back to reality from his thoughts, ℯℯ𝘭.

”The specific expenditure composition is:

”Employee salaries and benefits: 3.8 million dollars. The average annual salary of 45 employees exceeds 84,000 dollars, which is absolutely the top level in Wyoming’s agricultural field, enough to attract and retain the best talents.”

”Feed costs: 3.3 million dollars. This is the largest single expense aside from payroll. To ensure the ultimate meat quality and flavor, an extremely complex feed formula is used, including a large number of special ingredients that need to be sourced externally.”

”Veterinary and medication: 600,000 dollars. You have an independent small gene lab that builds complete genetic profiles and health traceability systems for every cow, using the highest level of preventive medicine standards.”

”Energy and fuel: 800,000 dollars.”

”Equipment depreciation and maintenance: 1.8 million dollars.”

”Property tax: 900,000 dollars.”

”Insurance: 460,000 dollars. Each premium breeding bull is insured with independent high-amount life and fertility insurance.”

”Administrative and miscellaneous: 300,000 dollars.”

”Genetic research and pasture ecological maintenance: 1.1 million dollars. This money is not only used to introduce new top-quality bull semen but also includes the large expenditure of partition-rotation grazing of 31,000 acres of pasture, soil improvement, and irrigation system maintenance each year.”

Arthur paused and pointed to the number at the very bottom of the report.

”Therefore, under such a huge investment last year, the cattle industry achieved an operating net profit of 1,608,800 dollars after deducting all costs, with a net profit margin of about 13.1%.”

”Sir, compared to the usual net profit margin of conventional commercial cattle ranches in the United States, which is typically between 5% and 10%, achieving a net profit margin of over 13% with such a luxurious operational scale already proves the unparalleled value of the Giant Stone River brand.”

Lin Yu’an was once again astonished internally. Nearly four million dollars in salary not only supported these 45 families but also facilitated the daily operation of such a vast and luxurious manor...

The key is that it can still make a profit of over 1.6 million every year! He originally just wanted to buy a super yacht moored in a quiet harbor, only to find that this yacht not only comes with a fuel replenishment system!

It can even go out to sea during berths to catch the most precious bluefin tuna and then sell it at a high price!

This is no longer a business chasing maximum profit but a work of art that doesn’t count costs. The former owner, Mr. Hunter, has painstakingly transformed a traditional agricultural project into a luxury brand with a healthy profit margin through massive investment.

An annual net profit exceeding 1.6 million dollars!

What does this mean?

This means that this vast ranch, this Kingdom with an extremely luxurious residence, top-notch horse farm, private airport, and dozens of employees, can really be self-sustaining!

It doesn’t need him to invest an extra penny to maintain itself, and after covering all commercial costs, it can still have a surplus of 1.6 million dollars.

This money is enough to easily cover most of the expenses of non-profit assets like the horse farm, making the entire Kingdom almost perfectly self-sufficient!

Lin Yu’an’s knuckles began to tap lightly on the smooth mahogany surface unconsciously.

He was more satisfied with this result; this is no longer just a consumer product, but a quality asset.

This is not only a profitable project that can bring stable cash flow, but more importantly, it is a luxury enterprise with top-level branding, high barriers, and strong bargaining power.

The former owner, Mr. Hunter, polished a brilliant commercial diamond over decades, and now this diamond has fallen into his hands.

A subtle and barely noticeable curve raised at the corner of Lin Yu’an’s mouth.

Countless thoughts flashed through his mind instantly.

Since the brand foundation is so good, why not make it bigger? With such a high-profit margin, why not try to optimize capacity?

With such a top-tier client base, why not develop more value-added services around them? For example, private hunting experiences? Top fly-fishing tours? Even...a members-only private club?

Raising the net profit margin from 13% to 15%, or even 20%, seems not a difficult matter for him.

At this moment, Lin Yu’an’s outlook on this ranch completely changed.

If yesterday, he was someone who was just satisfied with finding a perfect home for his family, now he has switched to a business mindset.

This ranch will no longer just be his home.

It will become a brilliant pearl with infinite potential in his commercial empire.

Arthur continued, ”Aside from the core cattle industry, the ranch also holds several glory assets that do not directly generate profit but are crucial for maintaining ranch quality and brand image.”

The projection screen switched to a bright and impressive stable.

”First is the horse farm, which according to the configuration of the former owner, currently has sixteen registered horses.”

”Among them are ten well-trained American Quarter Horses, which are the most effective assistants for cowboys managing herds.”

”The other six are the former owner’s personal mounts, including two gentle Arabian horses and four Quarter Horse hybrids suitable for family members to ride.”

”By the way, sir, these six horses have very pure bloodlines and were specially selected by Mr. Hunter from Kentucky’s top breeding farms, with a total value of over 500,000 dollars.”

”The horse farm itself is a pure expenditure department... Last year’s annual operating cost was about 350,000 dollars.”

”Next is the equipment and work vehicles.” Arthur flipped to the next page, and on the projection appeared rows of orderly, green-painted heavy machinery parked in a huge warehouse.

”The ranch owns a fleet of work vehicles essential for ensuring operations, with a total asset valuation of approximately 3.8 million dollars.

This includes...

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(Hehe, the scale of the farm in your mind has gone up, hasn’t it~)