Study On The Prevention Of Financing Risk Of Pig Breeding Enterprises

The demand for pork in China is very strong,and the pig industry is an important component of national food security.It plays a very important role in improving people’s living standards,maintaining social stability,reducing price fluctuations,and maintaining stable economic development.Although the comprehensive production capacity of domestic pig breeding enterprises has been greatly improved in recent years,compared with advanced foreign countries,there is still a large gap,with frequent occurrence of diseases,market uncertainty,and policy changes.These issues have led to the urgent need for pig breeding enterprises to increase investment to improve the development of the pig industry.At present,under the combined effect of multiple adverse factors such as increased environmental protection pressure and the "African swine fever" epidemic,China’s pig breeding enterprises lack systematic financing plans and have weak risk resistance capabilities,resulting in greater financing difficulties for pig breeding enterprises,which seriously restricts their modernization.This paper takes Muyuan Co.,Ltd.as a case study,and takes the financing situation and a series of problems faced by Muyuan Co.,Ltd.as the starting point.It applies risk management theory,internal control theory,capital structure theory,financial leverage theory and related concepts,and employs various research methods such as literature search and case study.Firstly,the financing risks of pig breeding enterprises in China are analyzed,including pig breeding overview,financing characteristics and financing risks.It is analyzed that the financing risks of pig breeding enterprises in China include debt Financing repayment risk,improper financing funds risk,financing interest rate change risk,financial leverage risk,financing scale and term structure risk,etc;Secondly,a financing risk analysis was conducted on the case enterprise Muyuan Co.,Ltd.,which mainly includes the overview,financing status,and financing risk types of Muyuan Co.,Ltd;Then,the financing risks of Muyuan Co.,Ltd.were identified and evaluated.The Analytic Hierarchy Process was used to identify the financing risk factors of Muyuan Co.,Ltd.Finally,an evaluation analysis was conducted to determine that there are certain financing risks in Muyuan Co.,Ltd.In response to the financing risk causes of Muyuan Co.,Ltd.,financing risk prevention strategies were provided for pig breeding enterprises,mainly by optimizing the financing structure Optimize financing risk management from four aspects: improving the financing risk management system,strengthening the construction of enterprise financing risk capacity,and improving the internal and external control environment of enterprises,in order to help Chinese pig breeding enterprises better cope with financing risks and achieve long-term development of the company.Through analysis and research on such issues,it is possible to provide Muyuan Stock with some strategies to avoid financing risks,and help the company better raise the required capital in the future development process,thereby reducing the company’s financial pressure.At the same time,this article also hopes that through the research on the above points,it can give some beneficial enlightenment to the vast number of pig breeding enterprises that are in financial difficulties.