Deciphering Ding Lei's Pig raising Sutra: raising pigs may make more money than real estate.

NetEase CEO Ding Lei's "pig raising" plan has gradually changed from a slogan to a reality. "NetEase's pig breeding base in Zhejiang will be selected in the first few days of November." Zhou Jiong, deputy general manager of NetEase's agricultural division, confirmed. In an interview with the Daily Economic News, Ding Lei revealed that the actual funding for raising pigs has yet to be reviewed by the board of directors, and it is certain that "pigs will definitely be raised." Ding Lei said with a smile: "you can't eat good pork in a hurry!" Zhejiang is not a traditional pig-raising province. However, as a county-level city under Wenzhou City, Zhejiang Province, Yueqing City has welcomed 110 million yuan of investment since 2008. Wenzhou businessmen focused their thoughts on real estate, mining, and so on, to raising pigs. It is said that investing in pig farms accounted for 85% of the industrial and commercial capital invested in animal husbandry in the same period. "raising pigs is more interesting. You can make money." Pan Aguo, chairman of Zhejiang Kangshun Animal Husbandry Co., Ltd. (hereinafter referred to as Zhejiang Kangshun), explained why he transferred from the real estate industry to the aquaculture industry. Pan Zhi, the general manager of the company and son of Pan Aguo, calculated the account for raising pigs to Ding Lei, a would-be colleague: "this is the case with pig farms in 3 years and 5 years." Ding Lei, who was born on the Internet after raising pigs for profit or making more money than real estate, first came up with the idea of raising pigs when he was having a hot pot dinner with friends, because "pig blood doesn't look good." Before him, Pan Aguo, chairman of Zhejiang Kangshun, who was born in real estate, raised pigs and had a pure dream of "falling leaves returning to their roots." he left Chen Tan Village, Sidu Township, Yueqing, when he was a teenager. "he has been out there for more than 30 years. I do real estate business in places such as Beijing, Shaanxi and Tianshui, Gansu, and I have the idea of going back to my hometown when I am old." The "Le Shang return" policy issued by Yueqing City proposes that foreign music businessmen can enjoy unique treatment when they return to their hometown to invest in agriculture, which also makes Pan's heart inclined to engage in agriculture. But it was the saying that "100000 yuan earns 200000 yuan a year" that made Pan Agua really notice pig farming. During the Spring Festival in February 2008, Pan and two other shareholder partners went back to their hometown for the Spring Festival. A relative made a fortune in 2007, but came to borrow money from Pan. "what are you borrowing money for?" Pan asked. "Last year, I invested 100000 yuan to raise pigs and made a net profit of 200000 yuan. I want to make another big one." The relative's answer made Pan Aguo joke: "raising pigs makes so much money, it is better for us to raise pigs." Pan Zhi told the reporter that it was true that the real estate business had a profit level of 30% to 40% before, "but the return of 200000 yuan per year of 100000 yuan is really high and too attractive." "2007 is the best pig raising market so far. It's normal for a pig to earn 1000 yuan or 1200 yuan per pig." Fang Miaohua, director of the Animal Husbandry and Veterinary Bureau of Yueqing City, said in an interview with the Daily Economic News, "it can be said that those pig farmers have made a lot of money, which is also the root of the pig boom in 2008 and 2009." Pan Aguo quickly put his ideas into action. The Pan family also reached a formal conclusion on investing in raising pigs, requiring "Pan Aga and his son Pan Zhi to hand over their real estate business to others and first invest 10 million yuan to raise pigs." Despite the strong financial strength of the family consortium, the Pan family was not familiar with raising pigs at that time, which made Fang Miaohua, director of the Yueqing Animal Husbandry and Veterinary Bureau, think that Pan was still joking until Pan took 10 million yuan in cash to the Animal Husbandry and Veterinary Bureau to find him. He couldn't believe it. According to reports, from 2008 to September this year, Le Shang has spent 110 million yuan to set up and continue 33 pig breeding projects, "will increase Yueqing pig self-sufficiency rate from 25% to 40%, in order to avoid excessive worries when pig prices are unstable." Fang Miaohua said. However, there is still a big gap between Yueqing's 160000 live pigs and 460000 pigs in consumption this year. "pigs should be transferred from Fujian, Northeast and other places." At present, there are about 5300 pigs in Kangshun, Zhejiang Province, but it costs NT $70,000 to NT $80,000 a day to eat pigs alone. Pan Zhi believes that "if there is not enough return to attract, no matter how rich people are, they will not be able to raise pigs." A reporter from the Daily Economic News took Pan Aguo's pig farm as an example to calculate an account for Ding Lei's future pig business. At first, he expected to invest 10 million yuan, but after entering the industry, the Pan family soon found that raising pigs was not easy. "the investment of 10 million yuan has almost doubled, with an investment of 18 million yuan, and a further 2 million yuan of working capital is needed." Perhaps this is one of the reasons why NetEase's pig-raising behavior has always been "half-covering his shy face with the pipa in his arms." Previously, Zhou Jiong, deputy general manager of NetEase's agricultural department, told the Daily Economic News that when Ding Lei and NetEase decided to enter the pig industry, they conducted research and inspection at home and abroad. "it was not simple at all after investigation and demonstration." The person in charge of Kangshun, Zhejiang, told the reporter in detail the various inputs in raising pigs, and 18 million yuan was mainly invested in three fixed investments. The first item is the construction project. "the ground was broken on June 25, 2008 and was basically completed on October 1 of the same year. According to the scale design of 16000 live pigs per year, the total construction investment of the pig farm is about 11 million yuan." Pan Aguo said. However, steel prices were skyrocketing at that time, and if construction was delayed by two months, the cost of steel and cement could be reduced by 2 million yuan. Land is often the biggest headache for entrepreneurs and a big investment for enterprises, but pig farms can avoid the shortage of land and get land at a low cost. "if it is to run an industry, Yueqing will certainly not be able to grant land. even if there is land, the price will be very high. But now we are renting wasteland from Chentan Village, and the rent per mu is only about 1000 yuan per month. " Pan Aguo said that the company has a target of 119 mu, and now it has used 52 mu. The second is the purchase of equipment. "Pig farming has positioning bars, heavy birth pens, delivery rooms, nurseries and fat pig pens, and so on. Each place needs professionally manufactured equipment, which costs about 3 million yuan." Pan Zhi said. The third item is pollution control. Aquaculture often brings environmental pollution problems. For this reason, Zhejiang Kangshun invested 4 million yuan to set up an orchard, which took three years to produce the first fruit. Fang Miaohua also said that pig farms in Yueqing need to pay special attention to the environmental pollution caused by pig manure. "after all, there is no such developed local planting industry to digest so much fertilizer." Zhou Jiong also said bluntly that "the conditions for raising pigs in Zhejiang are not good." in addition to the unfavorable factors such as high temperature and humidity in summer, cold and dry in winter and high logistics cost far away from the main feed producing areas, Zhejiang has to face difficulties such as dense population, complex biological environment, low land carrying capacity, dense water network and great pressure on environmental protection. The current market of pig raising cycle can be returned in three or five years, which has become a common saying in the pig industry. Dongshannan Pig Farm, another pig farm in Yueqing, is experiencing such a "miracle." according to its person in charge, the company ushered in the first litter of pigs on August 8, 2008. by September this year, it had made a profit of 1 million yuan a year, while the original investment was only 4 million yuan. Basically, it can be returned in 3 to 5 years. " "you know, in the year when Dongshannan made money, that is, from the second half of last year to the present, pig prices have been falling, rising and rising, and are generally at a low level." Fang Miaohua said. Zhejiang Kangshun's first batch of commercial pigs went out on August 25 this year. "it has been a loss for a year so far, but in terms of pigs alone, we are already making money." Pan Zhi's remarks aroused the reporter's curiosity. The secret of making money lies in the ratio of meat to meat. Pan Zhi explained that pig farming is divided into three stages: breeding in the delivery room, nursery and fat pig pen. "in the delivery room and breeding room, the feed-to-meat ratio of live pigs is 0.8 per kilogram, that is, eating 0.8 jin of feed to gain one jin of meat. At this time, the nutritional requirements of the feed are the highest, and the price is the most expensive, up to 3.5 yuan per jin. However, even if the price of a pig is only 5 yuan per jin, it can still earn 2.2 yuan per jin of pork. " In the second stage, when pigs enter the nursery after weaning, the ratio of feed to meat rises to 1.1 yuan / jin, but the price of feed also drops to 1.68 yuan / jin. In this way, each jin of pork can still earn about 3.15 yuan / jin. In the third stage, pigs enter the fattening pen, when the unit price of feed is 1.1yuan / jin, the ratio of feed to meat rises to 3:1, and the profit per jin of pork is 1.7yuan. "it can be seen that the ratio of feed to meat has always been profitable. As long as the wages of employees, utilities, veterinary health care, and other expenses are reduced or shared equally among more live pigs, the temporary loss will become a profit." Pan Zhi said. Pan Zhi told the Daily Business News that the resources for existing doctors and other major expenses in pig farms are provided according to the standard of 16000. "after one year, the utilization efficiency of sows in pig farms can be optimized, and the number of sows will reach 16000 by the end of 2009. even at a pig price of 5 yuan per jin, according to our estimates, the profit per pig will be about 300 yuan. The profit in one year will reach more than 4.8 million yuan. " "basically, it is still three to five years, but the knowledge in it is very important. if you raise well, you can get your money back in three years, and five years with a little better will be enough, which is already well known in the industry." Pan Zhi said that in this way, "NetEase's investment of 100 million yuan can also be recouped in three or five years." Fang Miaohua pointed out that in the current market, the average profit of Yueqing's pig industry is 15% to 20%. Pig farming has a cycle of 3 to 5 years, and its profit curve can stand on the "capital preservation line" in the first year of 3 years, and then advance to "small profit" and "high profit" with the passage of time. Pan Zhi also believes that although the pig industry is "rising in three years and falling in three years", as long as you raise pigs well, you need not be afraid of the market. "there is a saying: if you make a profit for one year and lose money for three years, you can still make a profit when others lose money." this is the same as all other businesses. " In addition, Pan Zhi's optimism and confidence in the pig industry also comes from "a large reduction in the number of retail pig farmers", "there is no shortage of sales", "the state's support for pig farming and the protection of collection and storage policies" and so on. Pig raising policy investment 20 million can be subsidized 20 million Zhou Jiong, deputy general manager of NetEase's agricultural department, said that at the beginning of this month, NetEase's pig breeding base will be selected, and a new company will be set up to be fully responsible for pig-raising agricultural business. "according to the preliminary plan, the first batch of live pigs will be listed in 2010, when the annual production capacity of 20,000 pigs will be reached at full capacity." Ding Lei said on the 1st of this month that consumers can eat pork that is easy to raise online as early as mid-2010. But Fang Miaohua told the Daily Business News that pig farming has a cycle, and it takes seven months for sows to go from a little sow to a breed. It takes another 114 days from pregnancy to delivery. It takes 6 months for piglets to be born to commercial pigs. "if you start from breeding sows to commercial pigs, it will take about 17 months." This means that NetEase's schedule for raising pigs is already very tight. Guo Huiyong, an agricultural analyst at Oriental Iger, also pointed out that according to the breeding cycle, ordinary pigs can generally be fenced in four or five months, but Ding Lei mainly focuses on high-end pigs. It may take about eight months to get out of the column. "and the ratio of feed to meat will be higher, and the unit price of feed will also be higher, which is also a challenge for NetEase. It depends on whether its high-end pork can be sold at a high price." Pig raising is based on scale and financial resources. Pan Zhi believes that NetEase has a solid financial backing, "as long as you can recruit a suitable pig farm manager, there should not be a big problem." When Ding Lei enters the pig industry, there will be two kinds of income that other industries will not have: first, according to the policy, pig farming enterprises invest 100 million yuan, and the state will subsidize 20% of the total investment; second, more importantly, pig farming enterprises do not have to pay business tax and personal income tax. Take Kangshun, Zhejiang as an example, the investment of 18 million yuan was estimated as 10 million yuan, with a subsidy of 2 million yuan. The huge business income from selling 16000 live pigs a year does not have to pay tax, and personal income tax can be avoided after 4.8 million yuan of profits are paid to individuals. "the burden of agricultural tax has also been lifted, increasing our enthusiasm for investing in pig farming." Pan Aguo said. "it can breed more than 300 and less than 600 sows, the annual number of commercial pigs is 5000,999, with a subsidy of 800000 yuan; the number of sows that can reproduce is more than 1500, and the annual number of commercial pigs is more than 30, 000, with a subsidy of 3 million yuan." Yueqing City has also introduced supporting incentive measures. According to conservative estimates in the industry, once Ding Lei's pig farm is determined to have an investment of about 100 million yuan, it will not only receive a subsidy of about 20 million yuan, but also local governments will have more supporting and incentive policies. Help Ding Lei calculate the "pig account" □ investment mainly includes plant construction, equipment and environmental protection facilities □ return according to the current market, the cost can be recovered in 3 to 5 years □ profit is heard to earn 200000 yuan a year, it is very attractive □ policy can get 20% subsidy There are other supportive policies-not paying attention to technology, getting on the horse blindly and falling fast-pigs are so easy to raise? Still waiting for these rich people to do it?! The experts in animal husbandry have already done it. To be realistic, in raising pigs in China, equipment should not blindly believe in science and technology, but should be practical + input-output ratio. According to Boss Pan's algorithm, no pig farm is losing money. Pigs are so easy to raise? Still waiting for these rich people to do it?! The experts in animal husbandry have already done it. To be realistic, in raising pigs in China, equipment should not blindly believe in science and technology, but should be practical + input-output ratio. According to Boss Pan's algorithm, no pig farm is losing money. -- not so good?-- what on earth can he do? Let's just watch it together-- we'll watch it next year for entertainment-- people in the industry seldom take his pig farming seriously. -- it's pure entertainment! -- like a mountain apart, my brain is soaked in water! Yxdl in 2009-11-20 10:53 to add the following content, such as across the mountain, brain-soaked! Yxdl added the following at 11:24 on 2009-11-20, so that pigs can burn high incense without losing money, and perhaps the later tax preference policy is the key.