Dynamic and Static Comparative Analysis on the Cost-Profit of Backyard Hog Production and Scale Hog Production in China

Abstract

This paper uses a combination of dynamic comparison and static comparison to comprehensively compare the cost-profit changes and gaps between backyard hog production and small, medium and large scale production from 2007 to 2018 in China, and discusses the relationship between the cost-profit of hog production and production scales. The purpose is to provide data basis and support for the government to formulate relevant policies, and to provide reference for the transformation of farmers’ hog production behavior, so as to further promote the healthy and stable development of the pig industry. The results showed that: (1) the cost of backyard hog production is the highest, and the cost of large-scale production is the lowest, and the cost is inversely proportional to the scale of production; (2) the main incentives for the high cost of backyard hog production are the input of piglets, feed and labor, and The main incentives for the high cost of scale hog production are the input of piglets and feed. Scale hog production saves labor costs more than backyard hog production; (3) The net profit of backyard hog production is the lowest, and the net profit of medium-scale production is the highest. It is not that the larger the scale, the higher the profit; (4) The profit gap between backyard hog production and scale hog production is gradually expanding, and the economic advantages of scale hog production are obvious. Therefore, it is necessary to improve the production technology service system, develop moderately scale production, and improve the level of organization of farmers in order to promote the modernization and transformation of backyard hog production and further enhance the competitiveness of China’s pig industry.