Interpretation of the "fostering cost" misunderstanding to effectively reduce the cost of raising pigs

In many cases, people make serious mistakes when trying to reduce the cost of raising pigs, and their actions often end up being counterproductive. What's even more regrettable is that those who have suffered significant losses are usually unaware of the real issue, instead blaming their bad luck and thinking that they will always lose money in tough situations. They focus too much on pig prices and waste time and energy on things that don't really matter. As a result, the goal of efficient and healthy pig farming becomes increasingly distant. The main reason for this problem lies in the misunderstanding of key concepts related to "breeding costs," which leads to incorrect strategies. Therefore, when pig prices drop, how can we effectively lower the "fostering cost" and maintain a better profit margin? The first step is to correct some long-standing misconceptions and gain a comprehensive and accurate understanding of the concept of "feeding cost" in the pig industry. Only by basing our approach on scientific principles and practical measures can we achieve the goal of raising pigs efficiently and sustainably. **Input is not a cost, output is the main factor affecting cost** From a literal perspective, the word "cost" refers to the expenses involved in producing something, with success being the ultimate goal. According to the Modern Chinese Dictionary (2002 edition), "cost" is defined as the total expenses incurred in producing a product, with the core being the "product." The China Cost Association defines it more precisely: it refers to the value of resources used or paid for during the process of value addition and achieving effective results. In other words, "value added" or "effective results" must be present for something to be considered a cost. In the context of the pig industry, only the inputs directly linked to the final products can be classified as "fostering costs." Therefore, the amount of money spent during the production process is not the cost itself, but just one component of it. To calculate the actual cost, we need to link the input to the output (i.e., the commodity). The correct way to express cost should be: Output = Cost. It's common for people to say how much it costs to raise a sow in a year. However, this is actually a wrong concept because the purpose of raising sows is to produce healthy piglets—valuable outputs. A proper benchmark should be used to calculate the true cost. For example, if raising a sow costs about 4,000 yuan annually, this is not a cost, but an investment made to produce piglets. If the sow fails to show estrus, is infertile, or gives birth to stillborn or non-saleable piglets, there is no output, meaning no value has been added. In such a case, the 4,000 yuan would simply be considered an input, not a cost. However, if the sow produces 15 healthy weaned piglets in a year, the cost per piglet would be 267 yuan (4,000 ÷ 15). If she produces 25 piglets, the cost per piglet drops to 160 yuan (4,000 ÷ 25). Thus, with input remaining constant, it is the output that determines the actual cost. Therefore, most people mistakenly believe that reducing investment will lower costs, but the real solution lies in focusing on improving output, which is the key to effectively reducing feeding costs. **Market pig price and feeding cost are two independent events that are not related** Many pig farmers tend to compare market pig prices with feeding costs. When prices are high, they are willing to increase investments, using whatever they can to maximize profits. But when prices fall, they try to cut costs by reducing spending, believing that this will help them survive. However, upon closer analysis, it becomes clear that pig prices are determined by supply and demand in the market, and producers have little control over them. Feeding costs, on the other hand, depend largely on production efficiency, which is determined by the ratio of input to output. It is an inevitable outcome of the actual operations of the farmer and has nothing to do with market supply and demand. These are two separate events that are not directly connected. For instance, at the current pig price of 10.5 yuan per kilogram, many farmers feel they are at a break-even point, with some even suffering losses. However, there are a few successful farmers, like Mr. Xia Xinxin from Yixing, Jiangsu Province, who manage to raise 200 to 4,000 sows and still make a profit of 2 yuan per kilogram, earning around 250 yuan per pig. This shows that focusing on efficiency and output is the real path to profitability, regardless of market conditions.

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