The pig industry chain can be divided into upstream, middle and downstream links, the upstream is feed, animal health and pig breeding, the middle is pig breeding, and the downstream is slaughtering, sales and postpartum industry. Among them, pig breeding as an important part of the industry, with the expansion of scale and the development of technology, China's pig breeding industry is gradually turning to the direction of intensification and scale. Actively studying the pig breeding industry through successful project cases is of very positive significance for the long-term benign development of the pig breeding industry.
First, the general situation of pig breeding
1.Pig industry backgroundChina is the world's largest pig breeder and pork consumer, and pork is the most important component of the "vegetable basket" of urban and rural residents. The pig industry is a strategic industry in China, and it is also a pillar industry of China's agriculture, and the output value of China's pig industry reaches 13 trillion is the sum of the three major food crops of wheat, corn and rice. Pigs are of great significance to the entire industry and to the stability and development of the whole society. Compared with the world's advanced level, there is still a gap in the performance of breeding pigs in China, and the basic work of breeding is relatively weak. 2.Definition and classification of pig farmingPig breeding is a process of breeding and breeding until commercial pigs are bred and reproduced through a series of breeding and breeding such as pig breeding and piglet fattening. Among them, the purpose of breeding pig production and sales is breeding and multiplication, including great-grandparent breeding pigs, grandparent breeding pigs and parent breeding pigs; Piglets point out the piglets that are not born for a long time, which can be used for continued fattening, breeding or direct **; Commercial pigs refer to fattening pigs sold for the purpose of providing pork. From the perspective of the breeding cycle of pigs, sows are generally fattened for 4 months after birth to become gilts, gilts fattened for 4 months to become fertile sows, fertile sows to give birth to piglets after 4 months of gestation, and piglets can be slaughtered after fattening 6 months to become pigs. Therefore, it generally takes 18 months for newborn sows to be slaughtered by pigs. There are three main business models of pig breeding: farmer free-range, company + farmer, self-breeding, self-breeding and self-raising. In order to minimize costs, the domestic breeding model has also been upgraded and transformed in the past few years. Before 2000, the mainstream farming method in China was free-range pig farming. After 2000, with the development of modern animal protection industry, industrial feed and hybrid technology, pig production efficiency has become higher. The "company + farmer" model represented by Wen's shares was born. Under the company + farmer model, the company is mainly responsible for pig breeding and littering, providing farmers with piglets, feed, vaccines, veterinary drugs and technical support. This kind of farming model is an asset-light model, which can quickly increase the scale of breeding and control costs, but the ability to resist risks is weak. Wen's shares and New Hope adopt this business model. After 2015, industrialization, standardization, refinement, and automated breeding have significantly improved the output efficiency. Self-breeding and self-raising industrial farming has begun to replace "company + farmer", and this model will become the mainstream of the times in the future. Under the integrated mode of self-breeding, self-breeding and self-raising, the enterprise builds its own standardized farms and hires farm leaders, technicians and breeding workers. This model is an asset-heavy model, with high capital investment in the early stage, large land demand, and more depreciation, but the process is controllable, can better reduce costs and increase efficiency, and has strong anti-risk ability. Muyuan Group is this business model. 3.What is the Pig CyclePig breeding is a typical cyclical industry, and the breeding link is affected by the fluctuation of pig price cycle, so the gross profit margin and net profit margin of pig breeding fluctuate greatly, showing obvious cyclical characteristics. Pig production follows the spider web model, resulting in the pig cycle. When the pig price is in an upward cycle, the profit margin of pig breeding increases, and the willingness of bulk farmers to expand production is stronger, so they make up the column. At this time, the number of sows that can reproduce and the number of pigs will rise, and the number of piglets will rise simultaneously with the pig price. With the increase of pig ** and gradually exceeding the market demand, the pig ** enters a downward stage, and the profit margin of the industry decreases. When the industry loses money for a long time, the culled sows rise, the pig herd declines, the piglets decline synchronously, and the number of pigs gradually decreases. And when the pig ** is reduced to short supply, ** enters the upward channel again, and then enters the next round of the pig cycle again. 
Analyze the investmentSecond, the status quo and development trend of the pig breeding industry
1.The status quo of the pig breeding industryAccording to the "14th Five-Year Plan for Promoting the Modernization of Agriculture and Rural Areas", the long-term mechanism for the stable and orderly development of the pig industry will be improved, standardized large-scale breeding will be promoted, and the pork production capacity will be stabilized at about 55 million tons to prevent production from fluctuating. Affected by the outbreak of African swine fever in August 2018, China's pig production capacity was seriously damaged, and the number of live pigs in 2019 decreased to a large extent, which were 31 and 54.4 billion heads. In order to ensure the supply of live pigs, since 2019, the state has issued a series of policies and measures to promote the recovery of pig production, and the pig production situation has begun to improve, and the number of live pigs and slaughter in China in 2022 will be 453 and 700 million heads. After more than 40 years of development after the reform and opening up, China's pig breeding system has been initially established as of 2022, with a national breeding sow herd of 43.9 million heads, which is 107% of the normal stock of 41 million heads, slightly higher than the upper limit of the green and reasonable area of production capacity regulation. 2.The development trend of the pig breeding industryIn recent years, with the significant increase in labor costs and epidemic prevention requirements, the gap between the economy and output efficiency of the breeding model and the large-scale breeding model will gradually widen, which has accelerated the clearance of the breeding model to a certain extent. Leading enterprises in the industry have rapidly occupied market share by virtue of their advantages in capital, cost, technology, environmental protection, etc., and the scale of the industry has increased rapidly. As of 2022, the total market share of the top five enterprises in pig slaughter is about 1534%, an increase of 612 percentage points. 
Data**: Zhiyan Consulting, "2024-2030 China Pig Breeding Industry Market Research and Investment Strategy Research Report".
The large-scale integrated business model is conducive to the establishment of a complete quality control system and the improvement of pig product quality; It is conducive to the establishment of a sound epidemic prevention and control system and the improvement of the epidemic prevention and control ability of enterprises; It is conducive to reducing the transaction cost of intermediate links and improving the profitability of enterprises; It is conducive to the implementation of standardization, mechanization and intensive breeding, improving labor production efficiency and saving social resources. Therefore, the large-scale integrated operation model of enterprises will become the development trend of pig breeding. According to the "14th Five-Year Plan" to promote the modernization of agriculture and rural areas, the standardized breeding of pigs belongs to the safety and security project of important agricultural products such as grain, and a new round of standardized pig breeding and upgrading actions have been launched, and a number of standardized pig farms have been promoted to transform facilities and equipment such as breeding and feeding, animal epidemic prevention and manure treatment, and continue to carry out incentives for the transfer of pigs out of large counties, and increase credit support for large-scale pig farms. According to the "National Plan for the Construction of Modern Facility Agriculture (2023-2030)" (hereinafter referred to as the "Plan") issued by the four ministries and commissionsIt is necessary to steadily promote the construction of three-dimensional facilities for pig and poultry breeding, and in areas where land resources are relatively scarce, on the premise of saving intensive landThe development of pig and poultry three-dimensional facilities farms. The construction of three-dimensional multi-storey breeding enclosures, the promotion of high-rise building pig breeding according to local conditions, equipped with the whole process of efficient production equipment and intelligent management system, to achieve the whole process of closed feeding from the basic sow to the slaughter of fattening pigs. By 2025, 60 three-dimensional and multi-storey large-scale pig farms will be built; By 2030, 150 three-dimensional and multi-storey large-scale pig farms will be built.
3. The income of pig breeding projects
1.Revenue from the sale of commercial pigsThe sales revenue of commercial pigs is one of the main incomes of pig breeding projects. The unit price of commercial pigs is mainly based on the transaction statistics published by the national pig market (SPEM), and there are differences in live pigs in various provinces, and the average weight of commercial pigs is about 120 kg. Single-year commercial pig sales revenue of pig breeding project = unit price of commercial pigs, number of commercial pigs slaughtered annually, average transaction weight. 2.Farm rental incomeAccording to the "Planning" of the four ministries and commissions and its annex "Special Implementation Plan for the Construction of Animal Husbandry with Modern Facilities (2023-2030)" on the construction of pig farms, it is mentioned that the focus will be on the construction of three-dimensional multi-storey closed pig houses, integrating advanced technology and facilities and equipment, equipped with advanced facilities and equipment such as precision feeding, environmental control, disease prevention and control, and manure treatment, and supporting automated and intelligent information control systems. Strengthen the precise control of the six biosecurity systems, including the pig house layout system, the material circulation system, the air circulation system, the pig circulation system, the waste circulation system, and the water circulation system. The construction of high-standard pig farms in the local government can attract social capital to participate, and the farms can be rented to local farmers or enterprises to drive the development of the local pig breeding industry and increase farmers' income. 3.Manure resource incomeAccording to the "Opinions of the General Office on Accelerating the Resource Utilization of Livestock and Poultry Breeding Waste" issued by the General Office, we will unswervingly promote the utilization of manure resources, focus on large animal husbandry counties, support the construction of manure treatment and utilization facilities, and achieve full coverage of 585 large animal husbandry counties. In 2019, the matching rate of manure treatment facilities and equipment for large-scale farms reached 93, and that of large-scale farms reached 96; The comprehensive utilization rate of livestock and poultry manure reached 75.
Fourth, the case of pig breeding
In recent years, with the support of the pig breeding industry policy, there have been successful cases of special bond projects on pig breeding every year in the past three years. The pig breeding project is in line with the scope of special bond support in the field of agriculture, forestry and water conservancy. It should be noted that pig breeding projects generally involve breeding, relatively speaking, agricultural production is relatively colorful, breeding income as debt repayment funds, income accounted for a relatively high proportion of income, easy to cause industrialization suspicion, for example, the construction background of some projects is the specific implementation of the pig price stability and supply policy, the construction content is simply the construction of high-standard standardized farms, such projects have successful cases, but there is a risk of being considered to be too heavy in the industrialization of the project in the declaration process. Therefore, in the process of pre-planning of the pig breeding project, more consideration should be given to the public welfare of the projectSome of the projects are planned around the rural revitalization strategy combined with multiple subdivisions of agricultureThe completion of the project is conducive to improving farmers' sense of gain, happiness and security, and promoting the comprehensive revitalization of the countryside. Yanting County Rural Revitalization ProjectIn 2020, the total investment in rural revitalization construction projects in 4 districts and townships, including Yulong, Yanting County, Mianyang City, Sichuan Province, will be 95.2 billion yuan, of which 3 special bonds are planned to be issued4 billion yuan, with a term of 10 years, and the rest will be funded by the financial department. The implementation unit and competent department of the project are Yanting County Agriculture and Rural Bureau. The construction content of the project plans to build 80 standardized pig breeding units in Yanting County, with each unit breeding 1,400 heads per year, a total of 112,000 heads; The construction of high-standard farmland construction projects related to the modern park industry of pig substitution, including farmland land consolidation, soil improvement, field road construction, efficient water-saving irrigation and efficient process management, irrigation station construction projects, and land consolidation in Baihua Village, Gao Harrier Village and other areas. The project income is abundant, including land transfer income, pig substitution modern industrial park income, high-standard farmland construction subsidy income, farmland irrigation and breeding water supply income, sewage treatment income, etc. The project is in line with the "Opinions of the Communist Party of China on the Implementation of the Rural Revitalization Strategy" to promote large-scale rural land consolidation and high-standard farmland construction, strengthen farmland water conservancy construction, and improve drought and flood control capabilities. While implementing the rural revitalization strategy, the project was planned as a whole based on the current needs of local pig breeding. The project has issued special bonds every year from 2020 to 2023, and has issued 34 billion yuan. .Linshui County Rural Revitalization ProjectThe construction of the first phase of the construction project of the Rural Revitalization Demonstration Zone in Linshui County will form a network of demonstration parks in various forms such as the introduction of new varieties and technologies, standardized production, agricultural product processing, marketing, and logistics. The total investment of the project is 28600 million yuan, financial co-ordination 8600 million yuan, and plans to issue special bonds 200 billion yuan, with a term of 20 years. The project implementation unit is Linshui Modern Agricultural Development Group, and the competent department is Linshui County Agriculture and Rural Bureau. The construction content of the project includes the construction of about 40,000 acres of high-standard farmland, the construction of a high-efficiency planting and breeding cycle (pigs, beef cattle, rice and fishery, etc.) production base, a new aquatic cycle planting and breeding demonstration belt, and a new comprehensive processing base for agricultural products. The project income is abundant, including comprehensive income from high-standard farmland construction, comprehensive income from planting and breeding cycle production base, income from aquatic cycle planting and breeding demonstration belt, rental income from comprehensive processing base of agricultural products, advertising space, parking lot and other income. The principal and interest coverage multiple of the project is 122 times. The project is a concrete implementation of the rural revitalization strategy, further improving the rural infrastructure and public environment in Linshui County, promoting the rational development of rural characteristics, developing rural tourism and characteristic industries, promoting the cross-integration of rural primary, secondary and tertiary industries, and promoting the comprehensive revitalization of rural areas. After the completion of the project, part of the project operation will cooperate with agricultural cooperatives, so that farmers can be fully guaranteed, and farmers can enjoy a share of income.
5. Summary
Since 2019, the State Council Office has issued the "Opinions on Strengthening the Prevention and Control of African Swine Fever" and "Opinions on Stabilizing Pig Production and Promoting Transformation and Upgrading", etc., clarifying the guiding ideology, goals and tasks, and putting forward for the first time the general requirements of the province for stable production and supply of pigs, which has become the basic compliance for promoting the transformation and upgrading of the pig industry in the future. The relevant departments have introduced 19 policies and measures to support the development of pig production, such as capital construction, financial subsidies, financial insurance, breeding land, environmental impact assessment commitment system, green channel, etc., the policy intensity is large, the gold content is unprecedented, and the policy system to support the pig industry to accelerate transformation and upgrading has been built. In particular, the introduction of breeding land, environmental impact assessment and loan policies has basically solved the problems that farmers have been looking forward to solving for many years but have not been able to solve. The policy clarifies that the land used for pig breeding facilities can use general cultivated land, and there is no need for cultivated land to occupy and compensate for balance; Where a small amount of permanent basic farmland is really difficult to avoid, it is allowed to be used but must be rezoned; The construction of multi-storey buildings is permitted. Combined with the policy and the current situation of the pig breeding industry, plan a good project, effectively drive the income growth of farmers engaged in agricultural production, and promote the comprehensive revitalization of rural industries.
References: [1] "2024-2030 China Pig Breeding Industry Market Research and Investment Strategy Research Report".Zhiyan Consulting [2] "Opinions of the Ministry of Agriculture and Rural Affairs, the National Development and Reform Commission, the Ministry of Finance, the Ministry of Ecology and Environment, the Ministry of Commerce, and the China Banking and Insurance Regulatory Commission on Promoting the Sustainable and Healthy Development of the Pig Industry" [3] "Food & Beverage & Agriculture: Pigs Fall Down, Continue to Pay Attention to the Breeding Sector".First**. 2023-09-06[4]"2023 annual pig sales or more than 800 million head of "one super and many strong" pattern formedChina Business Daily.