Core Insights - The beef cattle farming industry in China is experiencing a price recovery, while the dairy farming sector continues to face pressure from low fresh milk purchase prices. Despite these challenges, Xuyi Animal Husbandry Co., Ltd. in Inner Mongolia has shown resilience and growth in output and profits, providing valuable lessons for the industry in cost reduction and efficiency [1][2]. Group 1: Cost Reduction and Efficiency - The company has achieved a record high of 36,000 cattle in total stock, with a projected output value exceeding 1.5 billion yuan and a profit of approximately 50 million yuan for 2024 [2]. - The company focuses on reducing feed costs, which account for over 70% of farming costs. By leasing 10,000 acres of land and signing contracts for 20,000 acres to grow silage corn and alfalfa, the company saves about 200 yuan per ton compared to market prices. This strategy allows the company to save over 25 million yuan annually on feed costs alone [2]. - The company employs scientific and standardized farming practices, including a research team dedicated to improving feeding cycles and beef quality. The organic certification of Angus beef has added value of 1,000 to 1,500 yuan per head [2]. Group 2: Deep Processing and Market Adaptation - The company emphasizes the importance of deep processing to enhance product value and mitigate raw material price fluctuations. This strategy includes transitioning from supplying fresh milk to producing dairy products, which has generated over 8 million yuan in profit [4]. - The company has adopted a flat management structure to reduce administrative costs, with over 90% of employees engaged in production. This approach has led to significant savings in labor costs [4]. - The company has received support from local government policies, including 80 million yuan in special bond funds for dairy product processing facilities, which has strengthened its risk resistance [5]. Group 3: Challenges and Recommendations - Despite good operational performance, the company faces challenges such as financing difficulties due to cautious lending practices from financial institutions. There are calls for enhanced credit insurance support and interest subsidies for farming loans [6]. - Local officials and business leaders have highlighted the need for improved cold chain logistics infrastructure to reduce transportation costs for deep-processed products, which would enhance price competitiveness [6]. - Recommendations include increasing subsidies for feed and farming, lowering the thresholds for policy benefits for dairy processing companies, and supporting local dairy product processing to improve the consumption of fresh milk [7].
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Xin Lang Cai Jing·2025-12-30 20:11