Raising pigs, an ancient and basic business, has now become a capital war. In the war, the top ten stocks of pig breeding operated with high debt, borrowed money to raise pigs, and kept losing money, allowing people to see another side of this industry. These companies, despite their poor performance, were able to thrive on mythical financing. However, in this feast of capital, what will be the fate of ordinary farmers?
First, the debt puzzle of the ten major stocks of pig farming
In recent years, with the improvement of people's living standards, the demand for meat has been growing. This undoubtedly brings great business opportunities to the pig industry, but it also brings the problem of high debt operation. Many listed companies have borrowed heavily to expand production, hoping to achieve high returns in the short term. However, for a variety of reasons, these companies tend to fall into loss-making situations.
Second, borrowing money to raise pigs, listed companies collectively lose money
Among the top ten stocks of pig farming, many companies choose to borrow money to raise pigs when their financial situation is not ideal. However, due to fierce market competition, price fluctuations, diseases and other factors, these companies' investment often does not get the expected return. As a result, there was a collective loss.
Third, make up myths to raise money and take the money of shareholders to lose money
Faced with losses, these companies did not choose to scale back or pause expansion to adjust their strategy. Instead, they chose to concoct mythical financing stories to attract more investors. These companies continue to expand production with the help of shareholders' funds in order to achieve economies of scale. However, the end result is continuous losses, which brings huge risks to the investment of shareholders.
Fourth, the fate of ordinary farmers
In this capital war, the fate of ordinary farmers is particularly concerning. In order to pursue higher profits, many ordinary farmers choose to cooperate with these listed companies. However, when these companies fall into the red, their fortunes change with them.
Some ordinary farmers have had to continue to cooperate because of contractual constraints and lack of other options. They are dragged forward in this game of capital, under great economic pressure and psychological burden. Other ordinary farmers choose to withdraw, but often face huge economic losses and competitive pressures.
V. Rumbling advancing chariots and unknown distances
In this capital war in the pig industry, listed companies, ordinary farmers and other participants are trying to seek their own interests. However, the rumbling chariot of this capital game does not seem to be delivering the expected returns to all involved.
While ordinary farmers take huge risks, they expect to obtain huge profits through cooperation with listed companies. However, once listed companies fall into the red, their hopes are often dashed. At the same time, these companies neglect long-term development in pursuit of short-term interests, which also brings many destabilizing factors to the industry.
In this industry, some companies may gain market share through short-term financing, but in the long run, to be truly market-oriented and sustainable, it must rely on innovation, scientific management and good reputation. Otherwise, in this rumbling chariot, they may end up being trapped and lost in the unknown distance.
In summary, the capital war in the pig industry has brought a lot of uncertainty. In this industry, while listed companies use financing to expand scale and compete for the market, they should not ignore long-term development and responsibility to ordinary farmers. When ordinary farmers seek to cooperate with listed companies, they also need to be more cautious and rational in view of market changes. In this industry full of challenges and opportunities, only through rational development, scientific management and good reputation can we achieve sustainable development and create real value.