Benefit Analysis of large-scale Pig raising

Benefit Analysis of Large-scale Pig Raising

The benefit of large-scale pig farming depends on the proportion of output and input. The proportion of output is positively correlated with economic benefit, and the proportion of input is negatively correlated with economic benefit. Economic benefit = output-input, from this formula can be seen: pig farm to achieve the maximization of economic benefits, on the one hand, to maximize output; on the other hand, to minimize input. Output, input and economic benefit are respectively called income, cost and profit in enterprise financial analysis.

Income from large-scale pig farming

The income of large-scale pig farming mainly refers to the sales income of commercial pigs. That is, pig income = sales unit price × sales quantity.

Cost of large-scale pig farming

According to the current financial system, the cost items of pig breeding include:

Direct material costs are directly used to produce feed costs, veterinary vaccine costs, piglet outsourcing costs and other direct costs actually consumed.

Direct labor costs directly engaged in production personnel wages, bonuses, subsidies and according to the provisions of the state to extract staff welfare costs.

Manufacturing costs are indirect costs incurred in organizing and managing production, including management salaries and welfare costs, depreciation of fixed assets, repair costs, office expenses, utilities, travel expenses, etc.

In the actual calculation of pig costs, direct material costs and direct labor costs are directly included, and manufacturing costs are included in a certain standard allocation. That is, pig cost = direct material cost + direct labor cost + allocated manufacturing cost.

Profits from large-scale pig farming

The profit of large-scale pig farming is mainly the amount after deducting the cost incurred from the realized income. That is, pig profit = pig income-pig cost.

Data Analysis of Economic Benefit of Large-scale Pig Raising

Taking a local fattening pig farm with excellent breed and perfect management as an example, the recent economic benefit of the pig farm was analyzed roughly. (Take 1 fattening pig as an example)

Profit analysis of large-scale pig farming:

① Income obtained: calculated by 100 kg for a fattening pig, the recent local pig market price is 13 yuan/kg, income =13 yuan × 100 =1 300(yuan)

(2) Cost incurred: lll0+40+40= 1,190 yuan.

(3) realized profit: l 300-1 190=110 yuan.

It is particularly worth mentioning that for pig farms with relatively stable breeding scale, the amount of income obtained mainly depends on the unit price of live pig sales. The unit price of live pig sales is not determined by the pig breeder, nor by the pork consumer, but mainly by the market supply and demand relationship of live pig. In the pig market, if supply exceeds demand, the price of live pigs will fall; if demand exceeds supply, the price of live pigs will rise. Therefore, in order to truly maximize the economic benefits of raising pigs, the most fundamental and effective way is to minimize all kinds of waste, save costs and minimize the cost of raising pigs.