Liu Yonghao said, "I thought it was something so great that it would change our future. Compared with partridges, forage for pigs was a big industry. It affected numerous Chinese farmers and their lives. So I decided to try pig forage."
In 1987, the Hope Forage Factory was set up in Gujia village. The initial investment was ten million yuan. Soon "Hope Forage" advertisements were plastered all over Sichuan's streets.
In 1988, China Central Television launched a new programme, called "Zhengda Variety Show". The programme announced the arrival of Zhengda forage from Thailand on the Chinese market. Work began on a 100-bilion yuan factory in Chengdu.
Suddenly, Liu Yonghao had a rival – Zhengda Forage.
Liu Yonghao said, "We started with a price campaign, setting our price lower. Farmers are pragmatic people. They compared, calculated, and finally chose us."
Chen Yuxin said, "Price was determined by cost, not the competition. Our costs were lower, so we could set a lower price and still earn the same profits. The farmers appreciated the lower price."
People began turning to Hope Forage. Many customers who had been buying Zhengda products, were attracted by Hope's lower price.
Finally, "Zhengda" approached "Hope". The two companies reached an agreement – "Hope" would take the Chengdu market; "Zhengda" would have the rest. For the first time a private Chinese enterprise had defeated a foreign company.
From then on, Liu Yonghao became even busier. Every day, he found himself receiving officials and journalists who wanted to visit his factory.
Liu Yonghao said, "Some time during the late 80s and early 90s.
