Simulation Research On Order Financing Of Pig Breeding Based On System Dynamics

Pig breeding industry is one of the pillar industries of rural economy in china,which plays an important role in promoting national economy and people’s livelihood.In recent years,under the dual role of demand-driven and policy-driven,the pig breeding industry has gradually developed to scale.However,in rural and remote areas,constrained by capital and technology,small-scale farming remains the industry’s main force.With the development of scale,the financing needs of pig breeding subjects are increasing.The subject of small-scale pig breeding is limited by the natural weakness,and it is difficult to alleviate the financing demand through traditional financing methods.On the one hand,the price of live pigs is prone to volatility and has poor risk resistance;on the other hand,it has urgent financing demand,high uncertainty,relatively small financing amount and relatively short financing term.All kinds of disadvantages make financing difficult to become the main drawback of small-scale pig breeding.In recent years,in order to support the development of "agriculture,rural areas and farmers",relevant government departments have issued a series of policies to enhance the credit support of banks and other financial institutions to small-scale pig breeding subjects and break the credit bottleneck of small-scale pig breeding.However,due to the high transaction cost of agriculture-related credit business,banks and other financial institutions have not changed their reluctance to lend to small-scale pig producers.As a new financing method,the order financing of supply chain finance makes full use of the trade relationship and information symmetry among the nodal enterprises in the live pig supply chain,and opens up a more optimized financing mode for the small-scale pig breeding subjects with financing difficulties.In this study,the financing characteristics and current situation of small-scale pig breeding enterprises are discussed in depth from the theoretical perspective,and the reasons for the financing difficulties of small-scale pig breeding enterprises are sorted out and summarized,and the advantages of order financing of pig breeding compared with the traditional financing mode are derived.Secondly,from a quantitative perspective,the system dynamics modeling was used to conduct a simulation study to explore the impact of capital constraints on the scale expansion of small-scale pig breeding enterprises.Finally,using the research method of system dynamics,a simulation study of order financing was established for the two-stage live pig supply chain,and it was concluded that how to choose the financing ratio and financing term to optimize the financing effect when the proportion of the expected expansion of breeding scale to the existing breeding scale changes.