Visiting cattle farmers, understanding their joys and hopes

Currently, the basic situation of the entire Chinese beef cattle market is: beef cattle inventory has been continuously declining, while beef prices keep rising. Under the huge contradiction between supply and demand, what kind of situation are cattle farmers facing?

The profit margin of cattle farming is large


In 2013, Wu Guangrong joined the cattle farming base of a family farm in Cai'e Township, Daxiang District, Shaoyang City, Hunan Province, as the person in charge. At present, this farm raises more than 20 head of beef cattle.

When asked why he raises cattle, Wu Guangrong told the reporter without hesitation: “Because the profit from cattle farming is large.”

Wu Guangrong introduced that currently very few people in Shaoyang raise cattle, and there is huge room for development. “In the past, a village still had a dozen or so cattle, but now, farmland no longer uses cattle and has switched to mechanization. Having one or two cattle in a village group is considered quite good!” For this reason as well, most of the cattle on the farm come from Yunnan and Guizhou, and there are also “foreign cattle” from Myanmar and Thailand.

Second, beef prices are higher than pork prices.

Public data shows that from April 28 to May 4, 2014, pork prices fell for 11 consecutive weeks, while beef prices remained at a high level, showing no sign of falling at all. And if we look back over a longer period, the contrast is even more striking: while pork prices kept going through cyclical ups and downs, beef prices kept rising continuously all along!

The reporter learned that the lowest beef price in Shaoyang City is currently 35 yuan per 500 grams, and during this year's Spring Festival it even reached more than 40 yuan per 500 grams. Wu Guangrong said: “In the past, one jin of pork could buy three or four jin of beef; now one jin of beef can buy three or four jin of pork.”

Wu Guangrong told the reporter that starting in the second half of last year, as pork prices fell, many pig farmers lost money.

The continuous rise in beef prices let Wu Guangrong see a business opportunity. He did the math for the reporter: in cattle farming now, after deducting labor wages and machinery costs, one head of cattle can yield a net profit of about 4,000 yuan to 5,000 yuan. “Actually, if you raise cattle in the countryside, you can earn even more.” Wu Guangrong said, “Because cattle farming in the countryside is free-range, there is no need to hire people, and feeding is simple, so you can earn at least 6,000 yuan to 7,000 yuan.”

Lack of money is the biggest problem

Since cattle farming is so profitable, why does the farm only raise more than 20 head of cattle?

Mr. Ruan, the person in charge of the farm, told the reporter, “I also want to raise two or three hundred head of cattle, but funds are limited.”

“Previously, the municipal Agriculture Bureau gathered the heads of family farms across the city for a meeting and said it would support the development of family farms. At the meeting, everyone said with one voice that they lacked money.” Wu Guangrong introduced.

“My initial investment was several hundred thousand yuan. Now cattle basically cost around 10,000 yuan per head, and those of better breeds cost 15,000 yuan.” Mr. Ruan said.

In addition to the large amount of funds needed to buy cattle, raising cattle is also very money-consuming.

According to He Xianjun of the Linhai Chengshan Livestock and Poultry Farm in Jiangsu Province, in cattle farming, the biggest expense is feed. Cattle are big eaters; the food they eat in a day, including water, averages 200 jin. To get tender and delicious meat, the ration must also be rich. What they eat here includes brewer's grains, soybean meal, wheat bran, cornmeal, and broccoli leaves. Calculated this way, each head of cattle eats 25 yuan of feed per day, and over 16 months the feed cost alone comes to 12,000 yuan.

Besides the large investment, Wu Guangrong told the reporter that the long cattle-raising cycle is also a main reason the farm lacks money.

It is understood that cattle basically give birth to a single calf. Under the current feeding level, it takes at least 18 months for a head of cattle from birth to fattening and being ready for market. Cattle breeding produces two calves in three years, compared with pigs, which farrow twice a year with more than ten piglets per litter. The beef cattle breeding cycle is not only long, but the reproduction rate is also low.

The large one-time investment and the long capital recovery cycle increase the risk of cattle farming on the farm. Mr. Ruan sighed and said: “It would be great if the state offered preferential policies for cattle-farming loans!”