In July, the previous round of "pig nameless hyperthermia" in Jiangyou Province began to emerge in Viet Nam and Jiangnan provinces, reflecting the rise in pork prices in the market. Look at the 'wool line, Chinese literature, and the Internet, but neither the industry nor the relevant government departments have attracted enough attention.

Judging from the current outbreak of cases, swine fever struck, and it was these small and medium-sized retail investors who fell first. Most of them are fed with swill, have poor sanitation and do not have enough money to build biosecurity facilities.

However, compared with the scale of hundreds or thousands of heads, retail investors are at least not heavy assets, and after selling more than 10 or at most 100 pigs, they can quickly realize and get out in advance.

In the face of the unknown epidemic, many farmers are even more reluctant to fill the column.

Whether active or passive, this round of continuous outbreaks of the epidemic has accelerated the exit of small and medium-sized retail investors, and also accelerated the reshuffle of the entire pig industry.

"The thatched house is no longer inhabitable, and now it has to live in a 'high-rise building'. Li Dongliang of Jiagu Agriculture and Animal Husbandry said after summarizing the new epidemic in various places, "I am more and more convinced that this round of epidemic is far from over." ”

Qi Zheng is not surprised: "Every pig cycle fluctuation is an upgrade of the industry. The trough of the cycle and the epidemic will make the weak enterprises and retail investors completely exit, but they are opportunities for profit and development for the advantageous enterprises. ”

Advantageous enterprises naturally refer to large-scale pig enterprises.

Looking at the market, Wen's shares are well-deserved leading pig enterprises, ranking second, is the new pig farm after the completion of the annual slaughter scale of nearly 2 million Jiagu agriculture and animal husbandry.

Every industry has its own doorway, and pig farming is no exception.

It's easy to raise pigs, but it's hard to raise them "how quickly and saved".

Raising pigs well is nothing more than the six-character mantra "live more, die less, grow faster".

In this industry, through the pursuit of perfection, excellent companies often end up in the same way.

"In their respective areas of expertise, the different business models to the extreme, Wen's and Jiagu agriculture and animal husbandry, will have the opportunity to become a typical representative of the domestic large-scale pig industry. Qi Zheng encouraged Li Dongliang and said.

In the eyes of Qi Zheng, Muyuan shares, which take the same path, are difficult to catch up with Jiagu agriculture and animal husbandry, which occupies the first-mover advantage and is backed by the support of the group.

In fact, pig farming, like large factories, reduces costs through management and technology, and the cost is low enough to expand quickly, thereby further reducing costs.

As the second leader in the industry, if you want to turn over, of course, you must learn from the industry boss with an open mind.

However, Wen's advantages are difficult to replicate in Jiagu agriculture and animal husbandry.

As mentioned earlier, the medium-scale decentralized farming of "company + farmer" is the most significant feature of Wen's business model.

The key to this model is to achieve asset-light operation and expansion, so as to optimize capital allocation in high value-added projects such as scientific and technological research and development and comprehensive operation.

"But I've studied Wen's, and to play this model well, there must be high-quality front-line staff at the front desk, and equally high-quality technical staff at the back office. In this regard, Jiagu agriculture and animal husbandry are much inferior. Li Dongliang said frankly.

Qi Zheng also understood. You must know that Wen's is one of the first enterprises in China to recognize that knowledge has capital value, and mobilizing the enthusiasm of all parties is the secret of its successful rise.

To take the simplest example, Wen's top ten shareholders only account for about 14 shares, and the employee shareholding coverage ratio exceeds 13, and it will be further expanded in the future, and the shareholding is extremely dispersed.

Li Dongliang said with admiration, "What connects the company and farmers is Wen's thousands of grassroots employees, who face the three rural areas every day, solve various specific problems, and serve to improve production efficiency." ”

This is a typical bottom-up decentralized decision-making system, and it is also the management model that Jiagu Group began to implement.

Through the experience of raising chickens, Wen's has developed a mature system - let people who can hear the sound of artillery call for artillery fire, and the front desk has the right to flexibly mobilize back-office resources to support the business.

This not only requires solid experience and technology, but also requires a high sense of responsibility, everyone holds shares as the boss tied together, each grassroots employee is like a team, there is a temperament of enterprise integration, in order to break out amazing combat effectiveness - no wonder Wen's is known as the "Huawei" of the breeding industry, in the field of agriculture has such a bearing, the only one.

"We also have our own advantages in agriculture and animal husbandry. "Qi Zheng can't destroy his ambition.

The model of Jiagu agriculture and animal husbandry, to put it bluntly, is industrial pig raising, and all links are handled by one hand.

There are many advantages to this, such as the complete industrial chain is conducive to product quality control, disease prevention and control, operation standardization, and scale.

"Jiagu agriculture and animal husbandry is absolutely controlled by major shareholders. Through a well-functioning production-oriented industrial organization, the number of grassroots employees is reduced, and only the grassroots level is required to resolutely implement the process and standards, which is also effective!"

"Frankly speaking, there is no superiority or inferiority between the two models, if you want to dance with pigs, you have to do a solid job, and when the tuyere comes, it is really a pig can fly. Qi Zheng said with a smile.

Li Dong nodded yes.

What Qi Zheng didn't say was that in addition to the opening of the spirit array, Jiagu Agriculture and Animal Husbandry also had his own advanced vision, and when was the outlet, it was simply one-way transparent for him.

Now it's undoubtedly an outlet.

Qi Zheng reminded Li Dongliang and said, "Do you remember the quick money we made before?"

Li Dongliang came to the spirit, "You mean ......"

"Combined with the looming swine fever epidemic, the opportunity on the supply side of breeding has appeared again, and this time the opportunity is even greater. Qi Zheng said.

Qi Zheng knows that in this round of swine fever epidemic from the end of this year to the beginning of next year, the damage to sows and piglets that can reproduce is the most direct and serious.

The level of sow inventory is the most critical, and the number of sows that can reproduce has an absolute impact on the rise and fall of pig prices.

After the epidemic, in the face of the strong demand of farmers to fill the pen, the price of sows and piglets is not the same, and the price of piglets has increased more than ten times compared with now.

The profit of the pig industry chain also follows the "smile curve" theory, from breeding, slaughtering to retail, the most profitable link lies in the direct sales of pigs and the retail of pork products, and the lowest profit in the pig slaughtering link.

In the direct sale of live pigs, the profit of breeding pigs is much higher than that of commercial pigs.

The net profit of grandparent sows can reach more than 1,000 yuan, while the current price of commercial pigs cannot reach 1,000 yuan, and the gap is so obvious.

Pigs on the tuyere are easy to earn, and sows and piglets on the tuyere are more profitable.

Taking advantage of the fact that the sows and piglets on the market are still too cheap to buy, we should pay close attention to the purchase of a batch of sows and piglets that can reproduce, and then we can make a lot of profits whether they are self-raising or exported. Qi Zheng pointed.

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