Research On Cost Control Of Pig Breeding Enterprise

China is the world ’s largest hog breeding country,accounting for 56.6% of the world ’s hog breeding volume.It is also a big consumer of pork.The output value of hog breeding is close to1.3 trillion yuan.It contributes significantly to China ’s GDP in the food structure and is closely related to people’s lives.With the gradual segmentation of the pig breeding industry,increasing small and medium-sized farmers are gradually withdrawing from the market.Large-scale and professionalization is the direction of future market development.The large-scale operation of pig farms is conducive to maintaining breeding safety and standardizing breeding technology.Under the background of changing consumer demand and unstable market environment,most enterprises focus on outer elements which effect costs,but ignore strategic cost control which may be the focus of business benefits.As a modern breeding enterprise,cost control based on strategic cost theory requires companies to value chain,cost drivers and strategies to realize all-round monitoring,so as to focus on tightly integrated operations,promoting scale,creating unique competitive advantages,and achieve efficient cost control.This article takes Wen’s cost control system as the research object,and sorts out related theories and research results by consulting relevant literature on strategic cost control.Then studys from industry overview,development history,industry chain,to the current situation to analyze the development trend of the pig breeding industry.Therefore by summarizing the problems of Wen’s current cost control system,the case study of Wen’s shares analyzes the risks,objectives,measures and guarantees in the cost structure,cost accounting and cost control system of Wen’s shares,including industrial chain,diversification,cooperation with farmers,research and development,etc.,and concludes the key to the cost advantage created by Wen’s shares and the suggestions of the current "company + farmers(family farms)" breeding mode,and then puts forward policy suggestions for the pig breeding industry,especially for the enterprises of "company + farmer" breeding mode for reference.Finally,the paper draws a conclusion about the cost control of Wen’s.