1. Blindly expand the scale of infrastructure and reduce the proportion of production input.
Some large-scale pig farms that have closed down have blindly expanded their infrastructure. The pig farming industry is a low-profit breeding industry, and the recovery of its infrastructure investment is very slow and takes a long time. A high proportion of infrastructure funds will inevitably affect the capital turnover and profitability of the enterprise, resulting in long-term overloaded operation of the enterprise.
2. The proportion of loans is too high and the proportion of self-owned funds is too low.
Most of the large-scale pig farms, in order to earn high profits under the condition of insufficient self-owned funds, borrow a large amount of private private loans with high interest rates. With the intensification of capital turnover difficulties, the creditors who came to collect debts auctioned off the debtor's current assets because they could not collect the principal and interest, leading to bankruptcy.
3. Poor business management, unclear accounts, unclear income or insufficient income.
Some large-scale pig farms lack technical knowledge of operation and management. There is no plan for production, no goal for work, no level of management, and no long-term planning. The result is that it is difficult to grasp the profit and loss, the income and expenditure are unclear, and the deficit is inevitable.
Some large-scale pig farms that have closed down have blindly expanded their infrastructure. The pig farming industry is a low-profit breeding industry, and the recovery of its infrastructure investment is very slow and takes a long time. A high proportion of infrastructure funds will inevitably affect the capital turnover and profitability of the enterprise, resulting in long-term overloaded operation of the enterprise.
2. The proportion of loans is too high and the proportion of self-owned funds is too low.
Most of the large-scale pig farms, in order to earn high profits under the condition of insufficient self-owned funds, borrow a large amount of private private loans with high interest rates. With the intensification of capital turnover difficulties, the creditors who came to collect debts auctioned off the debtor's current assets because they could not collect the principal and interest, leading to bankruptcy.
3. Poor business management, unclear accounts, unclear income or insufficient income.
Some large-scale pig farms lack technical knowledge of operation and management. There is no plan for production, no goal for work, no level of management, and no long-term planning. The result is that it is difficult to grasp the profit and loss, the income and expenditure are unclear, and the deficit is inevitable.