I'm an almighty star

Chapter 1351 On Sow Breeding Techniques

"Mr. Mo, I didn't expect you to see so far."

When it comes to food security, both of them couldn't help shouting ashamed.

It's just that although they were ashamed, the two of them didn't say like chicken blood, Mr. Mo, you are right, let me do it with you.

They have been struggling with raising pigs for so long, but they are very aware of the risks of raising pigs.

"Mr. Mo, you are right. The country has always attached great importance to the safety of live pigs. It's just that our country has a large population, and our pig raising level has not been able to keep up with other countries. Foreign countries can reduce pork per catty to less than 6 yuan. There are even profits, but our average price is 10 yuan. With such a huge gap, we can only import a lot.”

"Yes, Mr. Mo, let's talk about raising pigs. I believe Mr. Mo also knows that there is a pig cycle in our pig industry. When the pig cycle comes, the whole industry does not know how many pig breeding bases lose money and go bankrupt."

The so-called pig cycle here refers to an economic phenomenon.

When the price of pork rises, the number of sows slaughtered will increase significantly, thereby increasing the supply of live pigs.Once the supply of live pigs increased substantially, meat prices fell.Once the price of meat falls, a large number of sows will be eliminated, and then the supply of live pigs will decrease, and then the price of meat will rise again...and so on and on and on.

Many pig breeding bases, including farmers who raise pigs, blindly raise pigs for a while because they cannot judge the supply of the market. In the end, when the whole market makes a profit, they make a lot of money, and when they lose money, they lose all their money.

Although the two of them knew that Mo Bai's ambition was extremely lofty, but no matter how lofty the ambition was, they had to see the reality clearly.

Therefore, the two continued to persuade Mo Bai.

However, Mo Bai shook his head.

He considered this issue before sending out the recruitment for pig farming.Regarding the persuasion of the two, Mo Bai said: "The price of domestic pork is too high because our breeding technology is relatively low. As long as we implement intelligent farming, I believe this cost will be reduced. Once our pig raising costs are reduced , then naturally there is no need to import a large amount of foreign pork.”

"As for the pig cycle, the reason why many manufacturers still fall into the passive position of the pig cycle is that they do not occupy the market enough. They cannot understand the supply and demand relationship of the entire market. As long as we occupy the market by a large margin, then the pig cycle will affect us. can be ignored."

However, Mo Bai's explanation still failed to convince the two of you. Chen Sen thought for a while and said, "Although the solution you mentioned, Mr. Mo, seems feasible. However, as you said, the scale of my country's live pig market is really huge. It’s too big, let alone occupy a certain market, even if we have a 1% market share, we may not be able to occupy it.”

"That's not necessarily true. The two of you don't believe in my strength?"

"Of course, if Mr. Mo spares no expense at all, even throwing Dream Company's cash flow here, then we don't say anything."

But, even though it is said so.

But even if Mo Bai is willing to spend money to enter this market at all costs, Chen Sen and Lu Buxuan are still not optimistic.

You know, such a waste of money requires at least [-] billion yuan or more, and it is not even enough.

Spending so much money just to raise pigs?
Even with great ambitions, the resulting profits are simply too low.

With so much money, it will be more helpful to the country if it is used to develop other industries.This is also the reason why Hua Guoming knows that the country imports a large amount of pork, but for the time being, he has not made such great efforts to support the domestic pig industry.It's not that they don't want to help, but it's that they haven't been able to produce the value they deserve with so much money.There are still many places in the country that need investment and development.Although there is a food security situation for live pigs, as long as the supply side is seized, there will be no major crisis for the time being.

"Hehe, I don't want to spend hundreds of billions of RMB on this market."

Mo Bai smiled and shook his head.

Taking hundreds of billions to raise pigs, Mo Baixiu was amused.

Besides, Dream Company has to reserve a large part of its cash flow to deal with international risks.

After all, as a global super giant, if it does not have a certain amount of cash reserves, it would be bad if it is targeted by some countries.

"It seems that Mr. Mo has thought very clearly."

Seeing that Mo Bai didn't want to smash the market in a flash, the two of them breathed a sigh of relief.However, Mo Bai continued: "I think the pig industry is not as complicated as we imagined, and it doesn't need hundreds of billions of funds."

"Mr. Mo, last year we sold 7 million pigs, which is basically equivalent to eating half a pig for each of us. It is absolutely impossible to raise so many pigs without an investment of hundreds of billions."

"No, I didn't say I raised it myself."

"If you don't raise it yourself, who will raise it?"

"Let the farmers help us raise them."

"Farmers help us raise them?"

The two of them didn't understand something.

"Mr. Mo, what do you mean?"

"It's actually quite simple."

After thinking for a while, Mo Bai said: "We have a large population in Huaguo, facing a population of 14 billion, if we rely solely on our company to raise these pigs, it is really impossible without an investment of hundreds of billions of yuan. So , we have also seen that although the major pig breeding bases in China seem to be large in scale, their market share is also limited. However, if we unite a large number of farmers from all over the country, then we can control more than half of the domestic pig farms in a single step Pig market."

"Control half of the domestic pig market, how do you say that?"

The two are still puzzled.

Mo Bai was not impatient, and continued to explain: "Mr. Chen, do you know the farmer's pig raising model?"

"Know something."

"Then tell me how our domestic farmers raise pigs?"

"This is relatively simple. Our pig raising model is actually similar to that of large-scale breeding bases. However, one is more advanced, and the other is a small workshop. Generally, we build some pig houses randomly and then buy piglets. , and some of them can raise sows themselves. When the market is good, they can make some money, but when the market is bad, and the supply of pork exceeds the demand, they will suffer huge losses.”

"That's right. Once the pig cycle hits and the price of pork plummets, not to mention that ordinary pig raising bases can't stand it, these farmers can't stand it either. But if these farmers are allowed to raise pigs for us, then It's different."

"Why is it different?"

"For example, I am now opening a large pig breeding base. But my base does not raise pigs, only sows."

"Just sell piglets?"

"It can also be said that. We distribute a large number of piglets born by sows to our farmers to raise them. When the farmers raise them, we will take them back at a certain price."

"and many more……"

Halfway through Mo Bai's speech, Chen Sen was taken aback suddenly.

He seemed to be stimulated by Mo Bai's words: "Mr. Mo, you mean to distribute the piglets to farmers, not sell them to farmers?"

"No, it's not for sale."

Mo Bai shook his head: "The traditional model is that pig breeding bases sell piglets to farmers. Although this model seems to work. However, buying piglets is a huge cost. It's okay when the market is good, but once the market is bad, That’s not a loss. However, if we don’t sell the piglets to them, but give them to raise them for us, then they don’t need to take the risk.”

"But, Mr. Mo, if you don't sell it to them, how will your breeding base make money?"

Lu Buxuan on the side also asked anxiously.

"Didn't I say that after the farmers raise the piglets, we can take them back and sell them?"

"But there is another problem. If the pigs are taken back, how will the farmer make money? He can't help us raise them for free, right?"

"This is even simpler. As long as we pay the farmers a fee for raising pigs when we get it back, the cost of raising pigs will be paid in terms of catties. When the piglets are given to farmers, they are 50 catties, and when they raise 200 catties, it is 150 catties. The cost of raising a catty of pigs. Multiply that by how many pigs they raised, wouldn’t they make money?”

This is the invincible model of Wen's pig farming and Zhengbang Group dominating the entire Chinese pig farming market in the previous life.

It is also based on this model that even if China has a population of 14 billion, our pigs can be self-sufficient.

After turning over the explanation, the brains of the two of them exploded with a bang.

"Farmers adopt piglets, they only raise them and don't sell them."

"Businessmen produce piglets, they only sell them and don't raise them."

"My God, there is still such a model."

Muttering to himself.

If this is the case, through this model, merchants can occupy most of the market without using too much capital, and then have the ability to absolutely resist market risks after occupying the market.At the same time, for farmers, because there is a fee for raising pigs, whether pork will rise or fall in the future is none of their business, and they no longer need to bear market risks.

This not only ensures the food safety of domestic pigs, but also increases the profits of merchants and farmers, and also reduces domestic imports.

This is not a win-win, it's a triple win, no, it's a quadruple win.

(End of this chapter)