In China's vast countryside, cattle raising has always been a traditional agricultural activity. For many farmers, raising cattle is not only a means of livelihood, but also an important source of family income. However, as the modernization process accelerates, the cattle industry is also facing unprecedented challenges.
This article will delve into the place of cattle farmers in the modern rural economy, as well as the economic pressures and risks they face, in an attempt to uncover the joys and pains behind this traditional industry.
Inputs and Returns: The Seesaw of the Cattle Economy
The bar for cattle farming may not seem high, but it is actually a capital-intensive industry. The first is the cost of buying cattle, and a high-quality beef or dairy cow often costs tens of thousands of yuan. This is a significant investment for many farmers. In addition, it is also necessary to invest in the construction of cattle farms, which is another expense of tens of thousands of yuan. Even if the cattle are in place and the site is built, the daily cost of forage and feed is an ongoing expense. These costs add up to a heavy burden for any family.
And what about the benefits? The benefits of cattle farming are not immediate, it takes a cycle. Dairy cows need to be pregnant and breastfeeding, and beef cattle need to be fattened, and the time cost in this process must be considered. In the days of waiting for a return, cattle farmers need to constantly invest, both in terms of energy and money. This creates a long payback period that cattle farmers must have enough patience and a stable source of funds to sustain themselves.
Cash Flow Strain: Challenges in Everyday Life
The day-to-day life of a cattle farmer is not easy. Not only do they have to take care of the herd, but they also have to deal with the various expenses of family life. Electricity, water, and the Internet, all of which are basic services in modern society, all require costs. Not to mention basic living needs such as food, medical care, etc. In such an era where cash is king, a few hundred dollars in reserve funds is obviously not enough. In the event of an emergency, such as equipment damage that needs to be repaired immediately, or a family member who is sick and needs medical treatment, cattle farmers often need to raise funds on an ad hoc basis.
At this point, borrowing becomes their only option. Borrowing money from friends and relatives may be the first option, but it's not a long-term solution. Borrowing money from financial institutions also requires complex procedures and high interest rates. This tight cash flow makes the lives of cattle farmers uncertain.
Risk Management: The Sword of Damocles Hanging Over Cattle Farmers
The risks in the cattle industry are everywhere. Disease, market price fluctuations, natural disasters, any one of these factors can be a huge blow to cattle farmers. Once a herd becomes ill, treatment is costly and there may be a risk of death. The fluctuation of market prices makes it difficult for cattle farmers to grasp the profits. Even in a good year, if the market price is low, it will also face a loss.
In order to deal with these risks, cattle farmers need to have certain risk management capabilities. This includes sensitivity to the market, knowledge of disease prevention, and response to weather changes. However, these require an investment of time and money, which is a significant expense for many cattle farmers who are just starting out.
The Break of the Funding Chain: The Achilles' Heel of the Cattle Economy
The economic cycle of cattle farmers is fragile. Once the capital chain is broken, the entire business model may collapse. The practice of borrowing the new to repay the old may work when the market is stable, but when the market is unstable, it is tantamount to dancing on the edge of a cliff. In the event of a large fluctuation in the market, or a large-scale disease in the herd, the borrowed money cannot be repaid on time, and the credibility of the cattle farmer will be seriously affected.
Hope and challenge for the cattle industry
While the cattle industry is promising, it also faces many challenges. From capital investment to risk management to cash flow issues in daily life, the problems that cattle farmers need to face are far more complex than they think. However, it is precisely these challenges that have shaped the tenacity and innovation spirit of cattle farmers. In the days to come, they will continue to look for hope for life on the back of the bull, and at the same time, they also need more support and understanding to overcome various difficulties in the development of the industry.