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Many people have made serious mistakes when trying to reduce the cost of raising pigs, and their actions often end up being counterproductive. What’s even more disappointing is that most individuals who have suffered significant losses are unaware of the real issue. Instead, they believe they’re just unlucky and think that losses are inevitable during tough market conditions. They focus too much on pig prices and waste time and energy on irrelevant details. As a result, the goal of efficient and healthy pig farming becomes increasingly out of reach. The root cause of this problem lies in a misunderstanding of the concept of "farming costs," which leads to flawed strategies. So, when pig prices drop, how can farmers effectively lower "fostering costs" and maintain a better profit margin? The key is to first correct outdated misconceptions and gain a comprehensive understanding of what "feeding costs" truly mean in the pig industry. This requires a scientific approach and practical measures aimed at achieving efficient production and maximizing output.
Input is not a cost, but output is the main factor that affects cost
Literally, the term "cost" refers to the expenses involved in producing something, with the ultimate goal being success. According to the Modern Chinese Dictionary (2002 edition), "cost" is defined as the total expense required to produce a product, with the core being the "product." The China Cost Association defines "cost" more precisely as the value of resources consumed or invested in the process of value creation, with "value added" or "effective results" being essential prerequisites. Applying this logic to the pig industry, only the inputs directly linked to the final products can be considered "fostering costs." Therefore, the amount of money spent during the production process is not itself a cost, but rather one component of it. To calculate the actual cost, we must consider both input and output. The correct formula should be: Output = Cost.
It's common for people to say that raising a sow costs around 4,000 yuan per year. However, this is a misconception because the purpose of raising sows is to produce healthy piglets, which are the valuable outputs. A proper benchmark should be used to calculate the true cost. For example, if raising a sow costs 4,000 yuan annually, this is an investment aimed at producing piglets. If the sow fails to give birth or produces no saleable piglets, then there is no output and no value added—only an expense of 4,000 yuan. But if the sow produces 15 healthy weaned pigs in a year, the cost per piglet would be about 267 yuan (4,000 ÷ 15). If it produces 25 piglets, the cost per piglet drops to 160 yuan (4,000 ÷ 25). Thus, when input remains constant, output determines the actual cost. Most people mistakenly believe that reducing input will lower costs, but in reality, focusing on increasing output is the most effective way to reduce feeding costs.
Market pig price and feeding cost are independent factors that do not influence each other
Many pig farmers tend to compare market pig prices with feeding costs. When prices are high, they are willing to invest more, using the best feed and practices to maximize profits. When prices fall, they try to cut costs by reducing investments, thinking this will help them survive. However, upon closer analysis, it's clear that pig prices are determined by supply and demand in the market, which producers cannot control. Feeding costs, on the other hand, are largely influenced by production efficiency, which depends on the ratio of input to output. These are two separate events that are not directly related. For instance, even with current pig prices at 10.5 yuan per kilogram, some farmers are still profitable. One example is Mr. Xia Xinxin from Yixing, Jiangsu Province, who manages between 200 to 4,000 sows and still makes a profit of 2 yuan per kilogram. Each pig earns him approximately 250 yuan. This shows that with the right management and focus on output, profitability is still achievable even in a low-price environment.
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