The Application Of Break-even Analysis In Pig Farming Enterprises

Impacted by the feed market, price of live pigs, traditional style of production and management concept, the scale and level of pig farming industry in our country is low and resulting in low productivity and poor efficiency. With the reform and opening up and our country entering into WTO, the pig farming industry is facing increasingly fierce market competition. Therefore, enhancing the competitiveness of pig enterprises and sustainable development capability become issues of common attention.Break-even analysis is a simple, convenient, widespread application of modern management techniques. In this paper, the common problem concerned by the investors and operators can be solved through the break-even analysis. And the author provided powerful decision-making evidence, reminded the larger factors of movement, reduced loss and achieved the greatest profits.This paper is mainly to solve the following problems. According to the operating characteristics of pig production enterprises, the fixed cost and variable cost were detailed divided, the profit and loss balance of the slaughter weight was calculated and forecasted the feed conversion, and the price of commodity pigs at break-even point. To avoid calculating result lacking persuasion, the author made a discussion on the impact of feed conversion and commodity price on the result. The author made non-linear analysis on the balance of profit and loss through using the relationship of live weight and the feed conversion to calculate the best profit of slaughter weight. And the author made an analysis on the time of pig being slaughtered by using scale economic theory. At last, the author solved the problem of how to retain the capital of production ability, enlarged pig farm by the application of break-even analysis model, and explained whether it is feasible to resist market risk from financial aspect.