While coastal fishermen improve their standard of living by fishing, villagers in this small village can only work in the surrounding seafood processing companies.
The company chosen by Duncan Li is a company that specializes in producing processed seafood, especially canned sardines.
Morocco is the world’s largest exporter of sardines. There are at least hundreds or thousands of domestic companies that rely on the production of canned sardines and other seafood products.
Although Morocco’s GDP increases due to sardines, the companies that produce canned sardines are large and small.
Because they are only the most basic food processors, the threshold is relatively low, and because the threshold is low, the competition between similar companies is also very fierce.
When new companies want to gain a foothold, they often rely on price wars to get orders.
As time goes by, everyone starts competing with each other. The price drop has caused the profit margins of the entire industry to continue to decline. Currently, many companies are struggling to survive.
Likewise with the company chosen by Duncan Li.
It was funded and established by former local government civil servants. After more than ten years of continuous development, its scale has indeed become larger and larger. However, due to backward production technology and low efficiency, the business conditions here have gradually declined.
The business owner is getting older, gradually losing his ambition, and only wants to continue to make a little profit from this company.
It is precisely because of this idea that he did not invest money in the company for improvement and expansion in recent years that the company became increasingly competitive.
More importantly, it is very difficult to sell such an old company. The profit of this industry is not high.
The cost of upgrading and transforming here is a huge cost. If you are not careful, you may suffer losses to take risks.
And Duncan Li also likes another natural advantage of seafood processing companies, namely, they must have vehicles that transport raw materials that are constantly moving between factories and route docks.