I collect gold fingers in the heavens

Chapter 109 The Temptation of Raising Pigs (4000 words for subscription)

"[Little Fresh Meat]'s chicken and duck are all self-managed 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 a moat for our company!" Guan Xuelie nodded.

"Guan Zong, raising pigs is not the same as raising chickens! Let's not talk about the high investment and high risk! Let's talk about profits! It is difficult to guarantee the profit of pigs. There is a famous pig cycle. Pigs often earn a year, and the flat is one year. Years, a loss for a year, what's more, if the cost control is not good, it will be a blood loss!" Su Shixian said seriously.

"Not to mention the problem of disease, if there is swine fever, all the piglets will be culled! The loss is not comparable to raising chickens! It is really better to sell pork, so the risk is low and the income is stable! "

Guan Xuelie smiled lightly, and then continued to say to Wu Siyuan, "Mr. Wu, for so many years, you have only heard of rich people who raise pigs, but you have never heard of people who become rich just by selling pigs? 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 14 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 my country's demand for pork is twice the world's average. , In terms of the total amount, my country's consumption of pork accounts for more than half of the world."

"If our company wants to continuously increase our company's influence in the domestic industry in terms of breeding, then raising pigs is an exam question we have to face after all!"

"Influence?" A gleam of light flashed in Wu Siyuan's eyes, and he said to Guan Xuelie in a light tone, "Mr. Guan, let's make a detailed report on raising pigs at the meeting in two days!"

For Wu Siyuan, money is indifferent, but influence is very important.

Having enough influence in reality is the guarantee that he can continue to penetrate the heavens.

"Okay! Mr. Wu!" Guan Xuelie had a triumphant smile on his face. As expected, Wu Siyuan, the boss, valued influence very much.

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

three days later.

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

Guan Xuelie, wearing a neat suit and blowing the 25-degree air conditioner, stood in front of the PPT and talked freely.

"...During 2011-2012, 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, the domestic pig price fell by nearly 3% in three months, hitting the lowest level since mid-August 2010. In late December, due to the panic selling caused by the epidemic and the price reduction by slaughtering companies, the slaughter volume was large and concentrated. The round warehouse, the postponement of bacon production in the warm winter, and the shortening of the peak demand time caused the price of live pigs to plummet, which continued until after the Spring Festival, and it was the first peak season loss in 8 years.”

"The short-term rebound in pig prices is weak, and a large number of small farmers will withdraw from the pig raising 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."

"...my country has the characteristics of a large area and a large number of people, strong regional farming, and a low degree of mechanization of farming!"

"Based on these characteristics, the scale of my country's pig industry will also show a different model from other countries. I predict that in the future, two mainstream models will coexist:
One is large-scale breeding farms, which are more common in the United States, such as the current Wen's, Muyuan, and Young Eagle; the other is that many family pig farms will become the main force of breeding, and this model is similar to that in Europe. "

"At present, there are mainly the following types of large-scale pig raising models in my country:"

"The first one is the model of company + family farm. This model is represented by Wen's Group. The company stipulates the standards of family farms in terms of environmental protection, breeding scale, housing requirements, breeding equipment, etc. The company provides cooperative farmers with the right varieties Cultivation, feed production, technical supporting services, breeding management, and product listing services; the company sets the price of internal production materials and the sales price of live pigs to ensure a certain level of profitability for farmers, and the company will bear the losses."

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

"The third is the company + base + farmer model. This model is represented by the Young Eagle Group. The company builds its own breeding base and adopts two methods of breeding cooperation and farm construction cooperation."

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

"Farm cooperation means that farmers pay their own money to build farms according to the company's requirements, and then lease them to the company. This model can realize 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. It is mainly a meat slaughtering enterprise, which signs contracts with farmers and puts forward requirements for varieties and breeding; farmers produce according to the requirements of the order, and the company provides certain supporting facilities. For service and guidance, the company purchases live pigs; the company gives preferential treatment to the purchase price, which is 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. The cooperative is equivalent to a high-quality commercial pig supply base in Delis, and implements [three-level closed-loop pig farming] model】."

"The cooperative introduces parental sows from the original breeding pig farm of Delis Group, and distributes the bred commercial piglets to member households for fattening; the cooperative provides unified services including funds, equipment, breeding pigs, feed, veterinary drugs, vaccines, ** , technology, training, acquisition, etc.; and finally the slaughterhouses of Delis Group will recycle the slaughtered fat pigs.”

"The sixth type is the cooperative organization + farmer model. This model is a joint pig raising organization in which pig farmers participate voluntarily, 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 Connect with farmers, connect with markets, and engage in feed processing, pig transportation, purchase and sale, information and technical services respectively.”

"And 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 Xuelie, and said calmly.

"The latter three breeding methods, in the final analysis, are still pig raising by retail investors. In fact, in the final analysis, they are still similar to the contract farming model. Pig farmers sell you pigs today, but tomorrow they may sell pigs because of high prices from others. Selling to others, the stability is not high. Moreover, due to the scattered breeding, the cost of breeding is relatively high, and because of the inherent limitations of rural pig farmers, the breeding environment is relatively dirty, chaotic, and poor, and the company cannot effectively control the quality of pig raising , and then restrict the company's next development!" Guan Xuelie said with certainty.

"Of course, this model is also beneficial. For the company, its input cost will be relatively low, and even if there is a loss, it is within an acceptable range!"

Wu Siyuan nodded secretly when he heard this, and from his point of view, he was not optimistic about the following three breeding methods.

Guan Xuelie noticed the affirmative look in the boss's eyes, and he added a bit of confidence in his heart, and continued, "Among the first three modes, the first two modes 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, and everything is managed by itself. The advantage is that the whole process is controllable, and the disadvantage is that the investment is too large!"

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

"If Wen's Group includes farmers' profits, its gross profit margin will be higher than that of Muyuan. That is to say, 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 is more efficient than the model of Muyuan Company!"

"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 a large initial capital investment and slow expansion, so in terms of scale, it has always been inferior to Wen's Group."

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

This is the advantage of being a boss. You can express your opinions directly without caring too much about other people's ideas.

"No, I think Muyuan's [Vertical Integration] is more suitable for our company!" Guan Xuelie's answer was beyond the expectations of Wu Siyuan and Su Shixian who was listening.

"Why? From your report, Wen's Group has a higher gross profit margin and lower input costs! But Muyuan Company's initial investment costs are very high." Wu Siyuan asked strangely.

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

"Because none of us!"

"No one? Can't we hire them?" Wu Siyuan asked suspiciously.

"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 Xuelie said, "I have studied Wen's Group and know their model. High-quality employees go to the front-line pig farms to give pointers and solve problems encountered by farmers during the breeding process.”

"There must be cutting-edge technical personnel in the back to breed high-quality, high-yield excellent pig breeds."

"Both complement each other, it can be said that one is indispensable!"

"In addition, our company's current reputation is small, and we can't persuade some powerful farmers to join our company."

"In addition, although our company has produced commercial chickens and ducks with a wild taste, we are still laymen in the field of raising pigs. Mr. Wu, to tell you the truth, we need to pay some tuition fees in terms of raising pigs." Xue Lie told the truth.

"I'm not afraid of paying the tuition fee!" Wu Siyuan said proudly. He has developed to the present, but he doesn't value money anymore.

The reason for asking to make money is because this is a company's natural development needs.

A company that is losing money cannot continue to do so, even if it continues to transfuse blood.

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

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

"In principle, I agree with the plan of raising pigs, tell me about your specific plan." Wu Siyuan thought for a while, and then said.

As Guan Xuelie said, pork is the most consumed item on the table of Chinese residents, except for rice.

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

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

What else does Wu Siyuan disagree with?

Wu Siyuan agreed lightly, which made Guan Xuelie very excited. He took a deep breath and said, "Okay, Mr. Wu."

"I plan to first build a pig farm with an annual slaughter of 1200 pigs, with an estimated investment of [-] million yuan."

"Including 200 million yuan in fixed assets, 700 million yuan in pig houses, 75 yuan in breeding pigs, 125 million yuan in feed, water and electricity, labor costs, and 100 million yuan in other expenses..."

Wu Siyuan interrupted Guan Xuelie's speech and said, "Mr. Guan, [-] commercial pigs is too little. Your plan is too conservative."

"You might as well be bolder!"

"In terms of funds, you don't have to worry!"

"I raised hundreds of millions from my friends, which is enough to meet the current development needs of our company!"

"Don't forget what I just said, what is the vision of our company, to be a big company with a significant influence in the industry and a sense of responsibility!"

"Yes, Mr. Wu!" Guan Xuelie's mood was ups and downs. He didn't expect Wu Siyuan's style to be so fierce and bold. It was also the first time he heard Wu Siyuan speak out about the company's vision.

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

Who knows that Wu Siyuan has such a lofty and lofty dream.

Since the boss dared to play, how could Guan Xuelie not dare to accompany him!

At his previous company, he was known for his audacity.

So Guan Xuelie thought for a while and said, "Mr. Wu, I was too conservative just now!"

"In this case, I suggest that the company invest [-] million yuan to build a modern pig farm that can realize breeding, pregnancy, childbirth, breastfeeding, rearing, fattening, and sales, with an annual slaughter of [-] pigs, and at the same time establish an organic fertilizer manufacturing facility. factory, achieve zero pollution, and realize the goal of ecological cycle.”

(End of this chapter)