In recent years, the pig breeding industry has experienced unprecedented challenges and changes, and the whole industry is facing huge operating pressure. As the pig price continues to fall, pig enterprises have adjusted the focus of development strategy, put forward "reduce cost and increase efficiency". How to achieve practical and effective "cost reduction and efficiency", to achieve the predetermined enterprise goals, is the problem that most enterprises think about.

What is the cost?

From the perspective of operation, the cost of an enterprise is actually planned. In order to reasonably control the cost, we should first establish the cost thinking of all staff, and at the same time, plan new technology, new process and new management according to the actual situation of the enterprise, improve efficiency, and reasonably control the cost to reduce the cost.

From the perspective of enterprises, the costs incurred by enterprises are controllable.

From the perspective of business personnel, cost is divided into controllable cost and uncontrollable cost, from the point of the pig industry, pigs only feed, medicine, artificial is controllable cost, for depreciation of fixed assets completely belong to uncontrollable cost, and for pig depreciation, not completely belong to uncontrollable cost, this paper will pig depreciation classified as uncontrollable cost.

In the controllable cost, the production personnel can control it from the "dimension of quantity". In daily feeding, feed, vaccines and drugs can be reasonably used to eliminate waste, and the use of other materials can be reused, streamlined and economical. Auxiliary personnel can control it from the "dimension of price". For purchasing personnel, choose multiple suppliers, control the bargaining power, and reasonably determine the purchase price. For the salary assessment personnel, combined with the enterprise and the actual production situation, to develop a reasonable salary performance plan.

In the face of the cyclical fluctuations of the industry, in order to control the cost reasonably, it must raise the awareness of all staff, control expenses reasonably, ensure the safety of cash flow, and maintain a reasonable development speed according to the capital situation; on the other hand, it must boost the pig industry to improve production efficiency, replicate benchmarking results and reduce production cost through scientific and technological innovation and management upgrading.