Study On The Financing Programs And Effects Of Dy Company In Pig Industry

With the development of market economy and significant increase in people’s income level, consumers’ demand of agricultural products have significantly raised in terms of quantity and quality. However, the traditional mode of farming operations have been unable to effectively meet the demand of the market due to the backward production technology, high production costs, low productivity and other reasons. At the same time, this self-sufficient agricultural production patterns result in an unstable supply of agricultural products, frequent fluctuations in the prices of agricultural products, which have seriously affected the daily lives of residents.Pig farming is one of the most important branches of agriculture, pork and its products are also the necessities in people’s daily life. China is the largest pork consuming country in the world, however, the quality and quantity of pork and its products cannot be guaranteed at present because of the existing pig-breeding structures, which have many defects like outmoded production capacity and out-dated management styles. Therefore, in order to meet the demand of the market, and ensure the quality and quantity of pork and its products, we need to improve current situation of the pig-breeding industry, cultivating some industry leaders so that leading the healthy development of pig-breeding market.However, the first problem encountered by small and medium scale pig-breeding companies is the financing difficulty in the process of improving the pig-farming industry. Despite the Government has proposed some support policies for the pig-breeding industry, but such resources are almost applied to the large farming enterprises, small and medium scale enterprises rarely get benefits from the policies. Coupled with a high risk of small and medium scale enterprises, lack of collateral and other features, make it cannot effectively financing through commercial banks and other formal financing channels. Some small and medium size enterprises of Pig farming that have the potential and strength cannot be able to extend efficiently, the development of these enterprises has been severely hampered, and this is not conducive to the healthy development of live pig market.Therefore, we analyzed the financing schemes and the effect of these schemes of DY Company as an empirical case in this paper, the conclusion is that diversified financing strategy should be adopted by small and medium scale pig-breeding companies. Introducing external strategic investors actively on the basis of tamping the original strength and advantages, and effectively use the Government support policies; At the same time, financing a certain number of money through financial institutions such as commercial banks, and rural credit AP; Besides, with itself enabling status in industry chain, using seller financing and buyer financing coordinately, and shift the resources they have to capital. In short, small and medium scale pig-breeding companies should use multiple financing vehicles reasonably for their own long-term development.Research on this issue, not only can provide some recommendations about financing strategies to DY company, but it also benefit to many small and medium enterprises facing financing difficulties in other industries.