Expanding Sugar Production
Although Rabik felt that if the production capacity of sugar products in the territory were to be expanded significantly, it might not be able to open up sales channels as the Marquis had said, he had no choice but to obey the Marquis's orders.
Fortunately, with the Marquis's permission, neither manpower nor resources are a problem; we just need to proceed with the construction step by step.
Rabik scratched his head, touched his thinning hair, and sighed. The Ministry of the Commerce Department's caravans hadn't increased in the past two years. Everyone in the department had devoted their energy to sugar production and trade. They thought it was over, but it seemed they would be busy for a long time to come.
Victor noticed Rabik's negative mood. "You've seen the Telegraph Merchants' Guild's business model, so I'm planning to establish a chamber of commerce mainly dealing in sugar products, under your Commerce Department. A portion of the profits will be allocated as bonuses to everyone in the Commerce Department each year based on the business's performance, but it shouldn't exceed 10% of the total profits. What do you think?"
Rabik was also shocked by Victor's generosity. Based on this year's estimated sugar production and pricing, there would be at least 50,000 gold in net profit. Even if only 10% of that amount was earned, it would still be more than 5,000 gold. The entire Commerce Department only had about 30 people, and even including the original caravans and supply and Supply and Marketing Cooperatives, there were only about 250 people. On average, each person could get about 20 gold, which was incredibly generous.
Rabik quickly refused. "Marquis lord, my annual income is only 30 gold. If we calculate based on 10% profit, each person can get 20 gold, which is too much. If our Commerce Department does this, it will offend other departments in the territory."
Victor chuckled. "You only counted the people from the Commerce Department and the caravans? What about the serfs and workers from this farm and Sugar Refinery?"
"This!" It's no wonder Rabik didn't expect there to be such people. Although the Sugar Beet Plantation and Sugar Refinery were under the management of the Commerce Department, in his mind these serfs and workers were not considered employees of the Commerce Department.
However, Rabik immediately realized that the farm had 1,500 people and the Sugar Refinery had 300 people, totaling a little over 2,000. Calculated this way, each person would receive an average of 2.5 gold coins. Although this was not a small amount, it was much more reasonable than 20 gold coins. At least he wouldn't have to worry about being targeted by other departments.
Victor: "It's not just your Commerce Department; other departments will also increase this type of bonus revenue, but they will definitely try to cover as many people as possible."
This will increase the number of people with money to spend within the territory, providing a relatively stable market environment and promoting the economic cycle within the territory.
"It's possible that a significant portion of the White Sugar you sell in the future will come from the Two Rivers Territory."
Rabik thought about it and realized it made sense. If the serfs and workers had money, they could buy necessities, the workers could repay their loans ahead of schedule, the territory's products would have more markets, and the territory would collect more taxes.
Rabik: "Your Marquis, you are truly remarkable to have come up with such a solution."
Forgive my ignorance, I still need your guidance, sir. My respect for Marquis, is as boundless as the flowing river...
Victor waved his hand, interrupting Rabik: "Stop flattering me, get on with expanding production capacity."
The territory has been expanded extensively during this period, costing a considerable amount of money, and the spoils of this Civil War have been largely used up.
There will be plenty of expenses in the next year or two. We need to ramp up White Sugar production as soon as possible so that the territory has enough funds to continue expanding."