Abstract:

Objectve: In this study, we analyzed the economic benefit level in different business strategies, in order to fill the gap that the industrial standard of forest musk deer breeding is not determined and the cost-benefit issue still remains unclear in forest musk deer farming industry. Method: Based on the field investigation of various typical musk deer farms in Fengxian county, Shaanxi Province, the largest breeding base of musk deer in China, we calculated costs and benefits of farms in different scales, sex ratios, business goals, and stages of development. Result: 1) There are three different modes of farms according to their business goals:producing and selling musk, producing and selling breeding stocks, both producing and selling musk and breeding stocks. According to the characteristics of production cost composition, the farms can be divided into three types:large-sized farms with more than 100 forest musk deer, medium-sized farms with 40-100, and small-sized farms with less than 40. According to different business years, there are three stages of development:start-up stage, accelerated development stage and maturity stage. 2) There are many kinds of breeding modes in Musk farms:the leading enterprises, invested by pharmaceutical companies, are large-sized farms in which production of musk is the only purpose. The companies, invested and managed by professional households, are both large-sized and medium-sized, with the purpose of concurrently operating musk and breeding stocks businesses. Smaller-sized farms, run by individual households, mainly sell breeding stocks as their start-up stage, and may also sell both musk and breeding stocks afterwards. 3) The average cost per feeding a forest musk deer is 3 963.58, 2 798.55, and 3 296.29 yuan per year, respectively for large-sized farms, medium-sized farms and small-sized farms. Large-sized farms generally have higher feeding cost than small and medium-sized farms, and do not express a scale advantage. 4) The profit level is associated with the farm scale, business goal, sex ratio and development stage. Medium-sized and small-sized farms that sell both musk and breeding stocks with female outnumbering male at accelerated development stage can gain higher profit, theoretically. 5) Leading enterprises make relatively lowest profit because of high unit production cost and the only musk production. However, when the musk produced by them will create more profits in the downstream pharmaceutical chain sector. 6) The large professional households have the most advantages in musk deer raising because of the production and management characteristics that they produce and sell both musk and breeding stocks, and have stronger anti-risk ability and higher flexibility to the market. Conclusion: Based on the analysis of business strategies of typical forest musk deer farms, we believe that forest musk deer farming industry has bright prospects. Macroscopically, although the increase of musk production has lagged behind the population growth of forest musk deer in recent year, there is a trend that operators' business goal is transferring into producing musk, which indicates that forest musk deer farming industry is approaching maturity stage. Microscopically, the development of farms is sustainable:the long-term operating farms do not showed the recession due to the aging of musk deer population. In view of the problems exposed in some cases, we suggest that:to develop breeding and utilization of endangered wild animals, we should adhere to the principle of protection first. Scientific artificial breeding should achieve two goals at the same time:protecting wild population in the field and meeting the market demand. Leading enterprises need some government support during their start-up stages to smoothly pass the difficult period of low benefit level. The government and Industry Association should guide professional investors to bear their social responsibility and reduce excessive speculation.

Key words: forest musk deer (Moschus berezovskii), breeding modes, cost accounting, benefits, Fengxian county, Shaanxi Province