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Chapter 12: The temptation of raising pigs (4000 words long chapter please subscribe)

The chicken and duck at [Xiao Xianrou] are all self-operated by our company, but the pork is not. Guan Xuelie said slowly.

So you want to open a new pig-raising project? Wu Siyuan asked sharply.

Yes, Mr. Wu! Just like the company's fruit industry, this will allow us to better control the meat supply chain and build our company's moat! Guan Xueliang nodded.

Mr. Guan, raising pigs is different from raising chickens! Let's not talk about the large investment and high risks! Let's talk about profits! It is difficult to guarantee the profits of pigs. There is a famous pig cycle. Pig farmers often make a profit in one year and a flat profit in one year. If you lose a year, what's more, if you don't control costs well, you will lose money! Su Shixian said seriously.

Not to mention the problem of disease. If swine fever breaks out, all the piglets will be culled! The losses are not comparable to raising chickens! It's really better to sell pork well, this way the risk is low and the income is stable!

Guan Xuelie smiled faintly, and then continued to say to Wu Siyuan, Mr. Wu, over the years, I have only heard of rich people who raise pigs, but never heard of people who become rich just by selling pigs, right? Similarly, in terms of influence, Those who sell pigs are far inferior to those who raise pigs.

Our country has a population of more than 1.4 billion, and the annual per capita pork consumption is about 59 kilograms. That is to say, an average person eats more than 3 taels of pork every day. This means that our country's demand for pork is twice the world average. , in terms of total volume, my country accounts for more than half of the world’s pork consumption.”

If our company wants to continuously improve our company's influence in the domestic industry in terms of breeding, then pig farming will eventually be a test question we have to face!

Influence? A light flashed in Wu Siyuan's eyes, and he said to Guan Xuelia in a calm tone, Mr. Guan, please make a detailed report on pig raising at the meeting in two days!

For Wu Siyuan, money is insignificant, but influence is crucial.

Producing enough influence in reality is the guarantee that his soul can continue to travel through the heavens.

Okay! Mr. Wu! Guan Xueliang raised a victorious smile on his face. As expected, Wu Siyuan, the boss, attaches great importance to influence.

Starting from this aspect can often achieve twice the result with half the effort!

Three days later.

[Yangcheng Shennong Fruit Co., Ltd.] General Manager’s Office.

Guan Xuelie was wearing a crisp suit, blowing the air conditioner at 25 degrees, standing in front of the PPT and talking.

... From 2011 to 2012, the production capacity of my country's pig industry expanded rapidly, and the overcapacity situation in 2012 fully emerged in 2013.

“After the Spring Festival in 2013, domestic pig prices fell by nearly 30% in three months, hitting the lowest level since mid-August 2010. In late December, due to panic selling caused by the epidemic and price reductions by slaughtering companies, the slaughter volume was large and concentrated, and pork was put into production. The pig prices began to plummet due to round storage, delayed bacon production due to the warm winter, and shortened peak demand period, and continued until after the Spring Festival, resulting in peak season losses for the first time in 10 years.

The short-term rebound in pig prices is weak, and a large number of small farmers will withdraw from the pig market. It is expected to usher in an upward cycle in 2014.

This is also a good time for our company to get involved in the pig industry.

...Our country has the characteristics of a vast territory, a large population, strong regionalization of breeding, and a low degree of mechanization of breeding!

Based on these characteristics, the scale of my country's pig industry will also show a different model from other countries. I predict that two mainstream models will coexist in the future:

One is large-scale pig farms. This model is relatively common in the United States, such as the current Wenshi, Muyuan, and Young Eagles. The other is that many family pig farms will become the main force in breeding. This model is similar to Europe.

Currently, my country's domestic large-scale pig farming models mainly include the following types:

The first is the company + family farm model, which is represented by Wen's Group. The company stipulates the standards for family farms in terms of environmental protection, breeding scale, housing requirements, breeding equipment, etc. The company provides cooperative farmers with varieties Breeding, feed production, technical supporting services, feeding management, and full-service product launch; the company sets internal production material prices and pig sales prices to ensure a certain level of profitability for farmers, and losses are borne by the company.

The second is the company's vertical integration model. This model is represented by Muyuan Company. The company independently carries out all production and operation activities of pig raising, with highly centralized management and high level of modernization. It independently shares the profits of pig raising and assumes risks. It has formed a complete pig industry chain integrating feed processing, pig breeding, breeding pig expansion, and commercial pig breeding, and has entered downstream pig slaughtering enterprises through equity participation.

The third type is the company + base + farmer model. This model is represented by Chuying Group. The company builds its own breeding base and adopts two methods: breeding cooperation and construction of breeding farms.

The breeding cooperation means that farmers breed in the company's farms and strictly follow the breeding process to accept the feed supply, epidemic prevention, technical guidance and closed management provided by the company. The farmers set their own breeding plans and pay the farmers' breeding profits according to the breeding results.

Farm cooperation means that farmers invest in building their own farms according to the company's requirements and then lease them to the company. This model can achieve phased, streamlined, decentralized layout, unified management, and shared results of breeding production.

The fourth is the company + farmer model. This model is represented by Shuanghui Group. Meat slaughtering companies mainly sign contracts with farmers to set requirements for varieties and feeding; farmers produce according to order requirements, and the company provides certain supporting facilities. Services and guidance, the enterprise purchases live pigs; the enterprise gives a discount on the purchase price, purchasing it at a price slightly higher than the average market price of ordinary pigs.

The fifth type is the company + cooperative organization + farmer model. This model is represented by Delis Group. The company takes the lead in establishing a cooperative, which is equivalent to a high-quality commercial pig supply base in Delis and implements [three-level closed-loop pig raising] model】.

“The cooperative introduces parental surrogate sows from the original breeding pig farm of Delis Group and distributes the bred commercial piglets to members’ households for fattening; the cooperative provides unified services including funds, equipment, breeding pigs, feed, veterinary drugs, vaccines, ** , technology, training, acquisition, etc.; the fat pigs will eventually be recycled by the Delis Group’s slaughterhouse.”

The sixth type is the cooperative organization + farmer model. This model is a joint pig-raising organization where pig farmers voluntarily participate, implement self-service, and have a certain division of labor; cooperative members include farmers and full-time or part-time personnel; full-time or part-time personnel Liaison with farmers and external markets, engaged in feed processing, pig transportation, purchase and sales, information and technical services respectively.

Among these six models, I think the first three models are more suitable for our company!

Oh, tell me the reason! Wu Siyuan sat on the boss's chair, flipping through the report provided by Guan Xuelia, and said calmly.

The last three breeding methods, in the final analysis, are still individual households raising pigs. In fact, in the final analysis, they are still similar to the contract farming model. The pig farmer sells the pig to you today, but tomorrow the pig may be sold to you because someone else pays a high price. Selling to others is not very stable. Moreover, due to the scattered breeding, the breeding cost is relatively high. Due to the inherent limitations of rural pig farmers, the breeding environment is relatively dirty, messy and poor, and the company cannot effectively control the quality of the pigs. , thus restricting the company's next development! Guan Xuelie said conclusively.

Of course, this model also has advantages. For the company, its investment cost will be relatively low. Even if there is a loss, it will be within the acceptable range!

Wu Siyuan nodded secretly after hearing this. From his perspective, he was not optimistic about the next three breeding methods.

Guan Xueliang noticed the affirmative look in his boss's eyes, and he felt even more confident, and continued, Among the first three modes, the first two modes actually need to be paid attention to!

The [company + family farm] model represented by Wen's Group is actually a small and medium-sized breeding farm model under the indirect control of the company.

The [Company Vertical Integration] model represented by Muyuan Company, to put it bluntly, is all-inclusive. Everything is managed by oneself. The advantage is that the whole process is controllable, but the disadvantage is that the investment is too high!

Under the [vertical integration] model, Muyuan Company's gross profit margin is much higher than the industry average, but it is not much different from the Wen Group's profit level.

If Wen's Group includes farmers' profits, its gross profit margin will be higher than that of Muyuan. In other words, its breeding efficiency and unit breeding cost will be lower than that of Muyuan. It can be seen that the model of Wen's Group requires It’s more efficient than Muyuan Company’s model!”

Of course, this is based on the fact that Muyuan Company's pig-raising scale is not large enough. Once Muyuan Company's pig-raising scale reaches a certain level, then under this model, the cost side will become more and more obvious.

However, Muyuan Company's model requires large initial capital investment and slow expansion, so it has never been able to compare with the Wen Group in terms of scale.

You mean you are more inclined to the Wen Group's pig-raising model? Wu Siyuan asked bluntly.

The advantage of being a boss is that you can directly express your opinions without caring too much about other people's thoughts.

No, I think Muyuan's [vertical integration] is more suitable for our company! Guan Xuelia's answer was beyond the expectations of Wu Siyuan and Su Shixian who was observing.

Why? Judging from your report, Wen Group's gross profit margin is higher and its input costs are lower! Muyuan Company's initial investment costs are very high. Wu Siyuan asked strangely.

Yes, in principle, I am more inclined to the Wen Group's pig-raising model, but in fact, I have to adopt the Muyuan Company's model! Guan Xuelie nodded.

Because we have no one!

No one? Can't we hire someone? Wu Siyuan asked doubtfully.

Ordinary talents can be recruited, but professional talents with rich experience cannot be recruited on a large scale in a short period of time. Guan Xueliang said, I have studied the Wen Group and know their model. There must be something in front of it. High-quality employees go deep into front-line pig farms to provide guidance and solve problems encountered by farmers during the breeding process.

“We need to have cutting-edge technical personnel behind us to breed high-quality, high-yielding pig breeds.”

“The two complement each other and are indispensable!”

In addition, our company is currently not well-known, and we are unable to persuade some powerful farmers to join our company.

In addition, although our company has raised commercial chickens and ducks with wild taste, we are still a layman in the pig raising industry. Mr. Wu, to tell you the truth, we need to pay some tuition for raising pigs. Guan Learn to tell the truth.

I'm not afraid of paying tuition! Wu Siyuan said proudly. Now that he has developed, he no longer values ​​money.

The reason why we ask to make money is because this is the natural development need of a company.

A company that loses money cannot continue to operate, even if it continues to transfuse blood, it will be useless.

For a company that cannot see the future, high-quality people are not willing to stay and dawdle.

My vision, that is, the company's vision, is to become a large enterprise with significant influence and responsibility in the industry. A little tuition is nothing! Wu Siyuan confided in his heart.

In principle, I agree with the pig-raising plan. Please tell me your specific plans. Wu Siyuan thought for a moment and then said.

As Guan Xuelie said, pork is the most consumed commodity besides rice on the dining table of Chinese residents.

The company's self-operated fresh meat and vegetable store brand - [Xiao Xianrou] also requires pork.

The project of raising pigs is not only profitable, but most importantly, it can greatly increase his influence.

What else does Wu Siyuan have to disagree with!

Wu Siyuan agreed lightly, which made Guan Xuelia very excited. He took a sharp breath and said, Okay, Mr. Wu.

I plan to first build a pig farm with an annual output of 10,000 pigs, with an estimated investment of 12 million yuan.

Among them, fixed assets are 2 million yuan, pig houses on site are 7 million yuan, breeding pigs are 750,000 yuan, feed, water, electricity, and labor costs are estimated to be 1.25 million yuan, and other expenses are 1 million yuan...

Wu Siyuan interrupted Guan Xuelia's speech and said, Mr. Guan, 10,000 commercial pigs are too few. Your plan is too conservative.

You might as well be bolder!

“You don’t have to worry about funds!”

“I raised hundreds of millions from my friends, which is enough to meet our company’s current development needs!”

Don't forget what I just said, what is our company's vision? To be a large enterprise with a decisive influence in the industry and a sense of responsibility!

Yes, Mr. Wu! Guan Xueliang was in a state of excitement. He didn't expect Wu Siyuan's style to be so fierce and bold. It was also the first time he heard Wu Siyuan state the company's vision.

He had always thought that the company's vision was to make money and make more money.

Who knew Wu Siyuan had such a lofty and ambitious dream.

Since the boss dares to play, Guan Xuelie doesn't dare to accompany him!

In his previous company, he was known for his boldness.

So Guan Xueliang thought for a moment and said, Mr. Wu, I was too conservative just now!

In this case, I suggest that the company invests 80 million to build a modern pig farm that can handle breeding, pregnancy, farrowing, lactation, breeding, fattening, and sales, with an annual output of 60,000 pigs, and at the same time set up an organic fertilizer manufacturing facility. factory, achieve zero pollution, and achieve the goal of ecological recycling.”

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