Study On Profit And Loss Balance Of Large - Scale Pig Producers In Heilongjiang Province

In recent years, a series of documents introduced by the state have mentioned guaranteeing live hogs supply and stabilizing cultivation scale of live hogs for many times. The paper highlights the profit and loss condition of large-scale live hogs farms(household)(with annual off-take rate of 100-499 hogs) in Heilongjiang province by investigating live pig farms(household), and offer proposals from the angle of break even in sense of general theory and the break even angle as understood by the farm households to stabilize the supply for live hogs market by farm households of this scale.The paper utilizes the investigation data of 66 mid-scale live hogs farms(household)(with off-take of 52-220 hogs in each batch) in 42 towns(districts) in 10 counties(cities) in Heilongjiang province to calculate the profit and loss under 5 different cost structures at market price during the investigation period, and calculates break even off-take price and break even off-take quantity under two conditions according to whether sales earnings of each live pig can offset average variable cost.According to understanding of farm households for profit-making, the paper calculates profit under different cost conditions. Under both conditions of new born hogs fee and feed cost used as cost and new born hogs fee, feed cost and death-caused loss used as cost, 3.03% of farm households lost, and 96.67% of farm households made profit. Averagely each live pig’s profit range is 0.1-520.6 Yuan. Under condition of overall costs calculated, 39.39% of farm households lost, and 60.61% of farm households made profit. Averagely each live pig’s profit range is only4.23-184.73 Yuan.Above findings show the quantity of losing farm household increases and profit of farm households decreases with increase of cost structure types, indicating low expected profit from live hogs cultivation by farm households explains why they continue to cultivate live hogs. That all the farm households adopt new born hogs fee and feed cost to calculate yield shows these two costs are the key concern of farm households in terms of variable costs, and indicates farm households regard profit is made without concern for fixed cost and little concern for other variable costs otherwise than new born hogs fee and feed cost.In calculating break even off-take price, the sales revenue for each slaughtered live pig of27.27% of farm households failed to offset the average variable cost, so they have to raise off-take price to reach break even. The range of adjustment is0.18-3.19 Yuan/kg, and adjustment percentage is 1.31%-30.69%,i.e. the amplitude variation of off-take price needing adjustment is bigger. In calculating break even off-take quantity, when the sales revenue for each live pig can offset average variable cost, part of farm households reached break even off-take quantity when live hogs off-take quantity is lower as their fixed cost is lower.