In terms of business model, Wen's shares adopt the "company + farmers" model, that is, the company is responsible for producing chicks, piglets, feed, veterinary drugs and vaccines for cooperating farmers, and providing farmers with a complete set of technical guidance and services for key links in breeding, such as feeding management, disease prevention and control, and environmental protection treatment. The cooperating farmers are responsible for raising broilers and pigs until they are slaughtered, which are sold by the company to the outside world, and the company pays farmers a breeding fee.
The main customer base for Wen's broiler chickens is wholesalers, supplemented oman phone number list by terminal retailers; the main customer base for pigs is wholesalers and meat processing plants.
The company's profit level is mainly affected by product prices . Due to the long breeding cycle of pigs and poultry, the adjustment of the industry's total supply often lags behind changes in industry production capacity and market prices.
Take pork prices as an example. When the total supply of pork in the market gradually increases to a certain level, pork prices begin to fall. When the price falls to a certain level, breeders suffer deep losses and are forced to withdraw. When surplus production capacity is cleared and total supply decreases, pork prices begin to rise again. This cycle is the legendary "pig cycle.