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The reborn Prince Hechingen of the Swabian branch of the Hohenzollern family perceives the unfolding situation in Europe, where war is imminent. Europe cannot afford to delay. The strategy involves establishing a presence in East Africa, fostering immigration and development, and laying the foundations for agriculture. This gradual approach leverages the crisis to expedite the process of industrialization

African Entrepreneurship History

Chapter 174: Food Industry Independence

In January 1869, Ernst was in Vienna, Austria, and he was focused on establishing a modern food enterprise group within the Hechingen Consortium. The objective was to separate food production from the daily necessities group under the Hechingen Consortium and form a specialized food group.

Here are the key points from this chapter:

1. **Land Acquisition**: Ernst and Boone, the head of the Hechingen Consortium stationed in Vienna, were discussing the purchase of land on the outskirts of Vienna. The land was around 1.642 thousand mu (Chinese unit of land area) in size and was suitable for building several factories.

2. **Strategic Location**: The selected land was conveniently located, less than 20 minutes away from the train station and the Danube River. It had potential for efficient supply collection and distribution.

3. **Food Industry Focus**: With the East African colony's development and abundant agricultural raw materials, Ernst intended to establish a modern food enterprise group in Europe. Food production would no longer be subsumed under the daily necessities group.

4. **Increased Export Potential**: As immigration to East Africa was reduced in 1869, surplus food production could be exported. Ernst aimed to make East African food more competitive in the European market.

5. **Advantages of Austria**: Austria's geographical location, stable social order, and strong agricultural resources made it an ideal choice for establishing food companies. Austria's cooperation with the Hechingen Consortium was mutually beneficial, with Ernst planning to utilize Austria's resources effectively.

6. **Trieste as a Key Hub**: The construction of a food factory in Trieste was planned for the second half of the year, coinciding with the opening of the Suez Canal. This would facilitate the export of East African products to Europe.

7. **Competition and Profits**: Ernst recognized the fierce competition in the European food industry. While significant profits were possible, he expected steady income and long-term returns, given the large quantities of products from East Africa.

8. **Future Agricultural Output**: The establishment of food companies in Europe also laid the foundation for future agricultural products from East Africa. Ernst foresaw that as the population in East Africa increased and more people engaged in agricultural production, the agricultural profits would rise. However, this required time for crops to grow and mature.

Ernst's strategic approach aimed to harness the agricultural potential of East Africa while establishing a foothold in the European food industry, leveraging the advantages of Austria's resources and geographical location.

Chapter 173