Profiles of the Chinese Pig Industry
;before taxes 50.9
Net income 48.9 3-5% taxes and fees
Net income per pig 16.3
Advantages to be a backyard producer
· Enter or withdraw business to/from pig industry at essentially no cost.
· Production flow is totally adjustable depending on market price.
· Two or three pigs sold per year used to account for 30 to 40 percent cash income for her family but now may be down to only 10 percent.
Disadvantages and constraints
· No leverage power on inputs and products prices.
· Diseases can cause serious problems and losses.
· More difficult to find market and sell pigs due to higher cost of transportation, thus usually receive lower prices.
· Always being a lowest price receiver no matter how much you improved genetics.
· Young generation consider odor a problem and neighbor’s complaints of odor. Decreased interests in pig production by younger generation. Actually, backyard pig production is disappearing in areas around big cities.
· Opportunity cost of labor has been noted and begins to increase.
Emerging Issues
Industrialization, continuous reform, and opening to the outside world are bringing about many changes in the Chinese pig industry. Observers and researchers interested in the Chinese pig industry are studying the issues currently emerging in the country in order to sketch the outlook for Chinese industry.
Concerned about potential problems caused by reductions in rural incomes, the Chinese government, with a long history of planned economy, will probably continue to provide various supports to the households in agricultural areas. Pig production is one of the sectors chosen by the government to help raise farm incomes. The trend towards household specialization and expanding farm sizes will continue in the hope of increasing production efficiency.
Although the pace towards privatizing state-owned swine farms is not fast enough to meet the industry expectation, the resolve of the government to drop the long—-suffered burden of poor-managed farms is evident. In Guangdong, local governments have already liquidated many swine farms, facilitating purchase by farm managers and technicians at very reasonable prices. One popular model is to let the managers own up to&nb 《Profiles of the Chinese Pig Industry(第3页)》
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Net income 48.9 3-5% taxes and fees
Net income per pig 16.3
Advantages to be a backyard producer
· Enter or withdraw business to/from pig industry at essentially no cost.
· Production flow is totally adjustable depending on market price.
· Two or three pigs sold per year used to account for 30 to 40 percent cash income for her family but now may be down to only 10 percent.
Disadvantages and constraints
· No leverage power on inputs and products prices.
· Diseases can cause serious problems and losses.
· More difficult to find market and sell pigs due to higher cost of transportation, thus usually receive lower prices.
· Always being a lowest price receiver no matter how much you improved genetics.
· Young generation consider odor a problem and neighbor’s complaints of odor. Decreased interests in pig production by younger generation. Actually, backyard pig production is disappearing in areas around big cities.
· Opportunity cost of labor has been noted and begins to increase.
Emerging Issues
Industrialization, continuous reform, and opening to the outside world are bringing about many changes in the Chinese pig industry. Observers and researchers interested in the Chinese pig industry are studying the issues currently emerging in the country in order to sketch the outlook for Chinese industry.
Concerned about potential problems caused by reductions in rural incomes, the Chinese government, with a long history of planned economy, will probably continue to provide various supports to the households in agricultural areas. Pig production is one of the sectors chosen by the government to help raise farm incomes. The trend towards household specialization and expanding farm sizes will continue in the hope of increasing production efficiency.
Although the pace towards privatizing state-owned swine farms is not fast enough to meet the industry expectation, the resolve of the government to drop the long—-suffered burden of poor-managed farms is evident. In Guangdong, local governments have already liquidated many swine farms, facilitating purchase by farm managers and technicians at very reasonable prices. One popular model is to let the managers own up to&nb 《Profiles of the Chinese Pig Industry(第3页)》
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