Research On Value Chain Cost Management Of Muyuan Foods Co Ltd

Since 1998,China’s annual pork consumption has accounted for roughly half of global pork consumption.In the statistics of 2018,domestic pork consumption was as high as 55.95 million tons,accounting for 49.70 percent of the total global pork consumption.In contrast,pork imports accounted for only 3 percent of the total domestic pork output in the same period.It can be seen from this that China’s current pork market is mainly realized by self-production and self-marketing.In 2018 and the first half of 2019,due to the impact of African swine fever and the withdrawal of retail investors,the production capacity of China’s pig breeding enterprises dropped sharply,and the import volume of pork also dropped sharply due to the impact of trade war and ractopamine,resulting in the price of pork skyrocketing in the second half of 2019.Pig-breeding industry,it is found that since the 21 st century,because our country residents’ consumption level rising,the domestic pig breeding and the transition to comprehensive breeding enterprise from the original pure pursuit of growth,only now gradually to pay attention to the breeding structure,operating efficiency and quality of pig and so on various aspects and angles development concept of change.The breeding structure of enterprises gradually changed,resulting in the relatively high cost of breeding retail farmers out of the market,low-cost,efficient large-scale enterprises continue to grow.However,the traditional cost management method is not enough to meet the requirements of pig breeding enterprises in China,so it has become a new development direction of pig breeding enterprises to actively seek a new cost management method to adapt to the development of The Times.And from the perspective of value chain cost management of the company to study is a critical analysis method,combining value chain analysis and the cost of enterprise,is regarded as a kind of new cost management method is more applicable to the modern company’s sustainable development,it will be through the analysis of the correlation of enterprise of internal production,the relation between the pig-breeding industry upstream and downstream,and the relationship between the same industry competitors,make the enterprise in the process of breeding in considering the specific factors,reduce the cost of it is also our country pig-breeding company to consider and solve the problem,it can make enterprise gain greater cost advantage in the process of breeding.The main research method of this paper is case analysis.In this article,the relevant theoretical basis of domestic value chain,cost management,value chain cost management and domestic and foreign research literature are first explained.Based on the perspective of the value chain,the entire pig breeding industry is analyzed,and two different breeding models that currently exist in the market are compared.Second,the cost management of Muyuan Foods Co Ltd ’s internal value chain and external value chain is analyzed in detail,and its value is summarized.The cost advantages of a complete chain system,a high gross profit margin of commercial pigs,and a low total cost of pig farming are precisely these advantages that make Muyuan’s production and breeding scale larger and larger.The number of pigs on the market and the number of pigs on the market increase year by year,and the company’s competitiveness is sharp.Promotion.However,during the rapid development of Muyuan Foods Co Ltd,some problems in cost management have also been exposed.The main problems are low R & D investment,irrational staff structure,high company financial expense ratio,single upstream procurement method,and consumer market.Poor development ability and other issues.For the existing cost management of Muyuan Foods Co Ltd,the main measures are to increase investment in R & D personnel,which will help enterprises maintain their existing advantages in market competition;do a good job of building a talent team,which will help the stable development of enterprises;optimize the financing structure to facilitate The company further develops;it innovates the upstream procurement method,thereby reducing the company’s procurement costs;and increases the downstream market share,which is conducive to increasing the sales price of commercial pigs.Based on value chain of enterprise cost management research in recent years,more and more,but in the aquaculture industry is relatively small,the pig belong to the intermediate links in the industry value chain,from the Angle of the internal value chain cost management were studied according to the author deeply analyzes the enterprise cost,to shepherd Muyuan Foods Co Ltd with the cost control of industry analysis,is conducive to understand the advantages and disadvantages of enterprise at present in the aspect of cost management.In addition,this essay has some limitations in data collection and case study.