How to Startup Pig Farming Business – A Step by Step Approach
How to Startup Pig Farming Business – A Step by Step Approach: Pig Farming Business is really an area of the farming business that is looked down on. I can vividly tell you that Pig Farming Business is very lucrative and does not require a lot of money to start. On this informative article, you will learn the rudiment and also how to structure a good business plan for Pig Farming Business.
For the purpose of this article, we would name our supposed Pig Farming Business “Ryan Pig Farms”. At this junction, get your mind prepared to get the best Pig Farming Business Plan. Hop into the next paragraphs and have an insightful perusal.
This pig farming business proposal was prepared based on years of experience in managing pig farms. It was submitted in pursuit of a soft loan from a financial institution. The business proposal can serve as a guide to anyone who wishes to go into the piggery business.
Prices used in this business proposal may differ depending on location and would have changed due to the inflation rate. You can change the prices based on your stock and the current market price in your location.
We advise that you be thorough in the cleanliness and management of your pig farm to avoid the outbreak of diseases. Experience has shown that one major loss you may incur is due to the outbreak of disease. This will result if you fail to be hygienic, vaccinate your pigs appropriately, and restrict the movement of persons around your farm. By using this business proposal you accept that we are not liable to losses incurred in your pig farming business.
Executive Summary
In the zeal to give support in the fight against the dwindling economic situation of the nation and in a bid to help diversify the economy as to reduce the tension of the heavy dependency on crude oil exploration, the management of Ryan Pig Farms applies the innovative methodology and creative ideas to uniquely brand our product to solve the problem of a well-defined market of over 15 million people.
pig farming business is an establishment whose area of business will involve the production, packaging, and marketing of highly nutritional livestock food – pork meat. As a result of high demand for white meat to replace the overemphasized red meat which has been noted for its effect on the health situation of the masses, Ryan Pig Farms intends to bridge the demand-supply gap in the pork meat market.
Successful establishment of Ryan Pig Farms business will help to provide highly nutritional meat for a large population of the country, solve the problem of restiveness and unemployment of youths, contribute to the nation’s economy as well as encourage the Nigerian youths to venture into entrepreneurship and create jobs for others.
The project which is estimated to cost the sum of two million, seven hundred and fifty thousand naira (N2,750, 000) is expected to return so fast on investment and break-even of all its invested capitals within one year and eleven months of operation. The innovative features of the business lie mainly in the production process and the process of product delivery. Instead of the usual seven to twelve months, most pig farmers spend to raise a well mature pig, the management of Ryan Pig Farm has researched and discovered how to raise a well mature pig in just four (4) months, which will give us a turnover edge over our competitors.
Ryan Pig Farm business products will be consumed at all seasons and by all manner of people due to their nutritional value. The social and religious belief that forbids the eating of pork has been recently upturned by the level of awareness and benefits of white meat over red meat and also by the improved level of cleanliness in the training of the pigs. The change in the feed formulae also contributes to the nutritional value of the meat. This is part of the reason our market is unlimited.
On the other hand, the new invention in the preservation, package, and use of animal waste as organic manure and the high demand for such has paved the way for more profitability, result in addition to the cleanliness of the environment and reduction in environmental pollution of pig farms.
We have a strong conviction of success in the business because we have invested so much in information about the business and we are so willing to spend even more in the research and development department of the business. Our product primary market is over 10 million people and our secondary market is over 30 million people of mixed sexes, ages, and income levels. The management of Ryan pig farm has received timely training on how to keep learning in the process of building businesses to achieve success. Therefore Ryan Pig farming business is a venture that is viable, profitable, and sustainable.
Business Overview
Description of pig farming business
Pig farming in Nigeria is an interesting adventure that involves raising livestock animals for food or meat, from the weaner stage to consumable size.
Ryan Pig Farm has the interest in culturing a unique animal of high nutritional value, naturally, pigs have fast growth but the long breeds like Auckland Island pig, Bazna, Bisaro, and British landrace grows very fast and has a high surviving rate, and it’s resistant to diseases. These advantageous qualities make the production cost of piggery lower than its range of market prices presently; livestock farming is a very lucrative and profitable business because of its high and increasing demand in Nigeria.
The plan is to brood and sales method, a situation where the pig will only stay for four months before maturity and it will be sold without keeping it to reproduce which will be very expensive.
The pork meat that will be cultured in our pig farm, Ryan pig farm have a special advantageous quality such as high resistance to disease, high protein content, high digestibility, and high maturity rate which will enhance profitability.
The production requirement includes a borehole for water, Pen (Pig house), generator, land, plastic tanks, etc. The simple process involved in the production of Ryan pig farm includes Stocking of the piglets, feeding of the animal, Cleaning of the rooms, administering of blood meal, and antibiotic and finally harvesting of the animal after 4 months of maturity.
Vision and mission
Mission Statement
- This is firstly targeted at ensuring the financial well–being of the business.
- To create at least 150 jobs in 10 years
- Dedicated to providing our customers with the best quality livestock meat which will serve as a source of food and protein to mankind.
- In 3 years from the inception of the business, we anticipate that our impact on our host community, youth, and the general public would be so visible through our sense of mission.
Vision Statement
Ryan pig farms vision is to become the most celebrated live-stock farm in the southern part of Nigeria in terms of output, size, innovation, quality, product, and the best product delivery.
Value proposition
- Ryan pig farms will serve as a source of encouragement and training for the Nigerian youths that want to venture into entrepreneurship which will help to solve the unemployment problems in Nigeria.
- After thorough research on the health status of the Nigerian populace and the decreasing rate of adequate nutritional balance in their food, it becomes a necessity for Ryan pig farms to intervene in the production of high-quality meat like pork meat which will suit and alleviate the yarning’s for a quality and quantity supply of livestock products in the country.
Critical success factor
The critical keys to success of Ryan pig farm are follows:
- Ryan pig farms are into a business that has a large market of over 20 million people ready to buy our product every time and success.
- Our management team is very innovative and skillful, they are ready to think critically and generate outstanding ideas on how to be pacesetters.
- Our entrepreneurial qualities of decisiveness, self-control, determination, ability to focus, and trustworthy character are also our strengths.
- Constant research by the company to keep knowledge of market needs and quick ability to respond to them.
- Establishment of good relationships and trust with our customers as a shield from future competition.
- Constant evaluation of the strength and weaknesses of the company with proper adjustments made as warranted.
Current status of the business
Ryan pig farm is a startup business.
Everything needed for this business to start has been budgeted for or identified. The land which is one of the most important factors have been made available, generators, some of the prospective customer have been identified, and the workers have been recruited coupled with an advert that has been placed both in radio and social networks. Ryan pig farm will likely to kick off by “THIS DATE”.
Description of business industry
The pig farming business in Nigeria is an interesting adventure that involves raising livestock animals for food or meat, from the weaner stage to consumable size.
Ryan pig farms has the interest in culturing a unique animal of high nutritional value, naturally, pigs have fast growth but the long breeds like Auckland Island pig, Bazna, Bisaro, and British landrace grows very fast and has a high surviving rate, and it’s resistant to diseases. These advantageous qualities make the production cost of piggery lower than its range of market prices presently; livestock farming is a very lucrative and profitable business because of its high and increasing demand in Nigeria.
The plan is to brood and sales method, a situation where the pig will only stay for four months before maturity and it will be sold without keeping it to reproduce which will be very expensive.
The pork meat that will be cultured in our farm, Ryan pig farm have a special advantageous quality such as high resistance to disease, high protein content, high digestibility, and high maturity rate which will enhance profitability.
The production requirement includes Borehole for water, Pen (Pig house), generator, land, plastic tanks, etc. the simple process involved in the production of Ryan pig farm includes Stocking of the piglets, feeding of the animal, Cleaning of the rooms, administering of blood meal, and antibiotic and finally harvesting of the animal after 4 months of maturity.
Contribution to the local economy
Ryan pig farming business will be of benefit to the local economy in the following ways:
- Creation of employment opportunity for the Youths.
- It will provide food (meat) with good vitamins and protein.
- Ryan pig farming business will lead to the improvement of the economy of the individuals and government.
- In the long run, it will serve as a tourist Centre.
- It will serve as a medium for foreign exchange.
- It will serve as the Centre of learning for entrepreneurs.
- It is a means to encourage agriculture in Nigeria.
- The animal dungs are used as manure by farmers.
- It is a source of revenue for me and my family.
Marketing Plan
Description of product
The process of development of Ryan pig farm products is not in any way tedious or technical. Our development virtually involves all the staffs of Ryan Pig farms that can help in the process of stocking, feeding, cleaning, and harvesting of the products. The head of the team is the CEO/president of the company, MR. Ryan. who will supervise the processes and give any technical advice to other employees.
Ryan Pig farming business offers unique livestock products with high nutritional value. We intend to differentiate ourselves by our unique packaging which will maintain us as a brand. We shall be ensuring that our products are sold at a uniform price in any part of the country. Our product shall not be a commodity for everybody, it will be specially designed for people who know the value of our product and he will be willing to exchange their money for the value.
Market Growth
The rate at which the pork meat market is growing has been quite interesting in that the demand for white meat is almost doubling every year. The reason for this is because of the increasing awareness created by the white meat ages of white meat and seafood over red meat. People continually become aware of the high proteinous nature of pork meat. Pork meat is eaten by the rich, the middle class, and the poor. This means that pork meat will be eating by all manner and classes of people thereby making the entire population the target market.
The opportunity
There are business internal environmental factors that can affect the business.
–Patents: Ryan Pig farms will ensure that our products will be certified by the standard organization of Nigeria (SON) and get our trademark. Also, our future services like the company’s book will be patent so that no illegal competitor can copy them.
–Strong brand names: One unique marketing strategy of our products is that it is not meant for everybody, our products are only meant for our customers, so we produce the commodity, but a brand. At the startup of the strong brand name, but with time we shall succeed.
Good reputation among customers: Ryan company is a business where there shall be trust between us and our customers. We shall maintain quality, make on-time delivery of our products to our suppliers, and keep to our words.
–Cost advantages from proprietary know-how: the management of Ryan Pig farms here made through research and discovered the best way to optimize the cost of pig production. We can now harvest our matured pigs in 4-months against most of our competitors that almost spend 7-8 months to raise a mature pig.
Pricing strategy
The marketing strategy of Ryan pig farm is to employ every necessary road map towards reaching the goal of selling a reasonable product.
Therefore, we are going to apply good market segmentation, and take advantage of our right positioning, unique process, attractive promotion, and good pricing strategy to gain market penetration and get the anticipated share of 0.0% and 10% of the market before the first 5 years and 15 years respectively in the industry.
We shall brand our products and make them different from what is already in existence in the market. We will ensure that the products are well packaged.
Ryan pig farming business plans to get her customers through developed efficient marketing campaign targeted customers.
Target market
Ryan pig farming business target all the people who cook in their houses and those that visit hotels and eateries in Umuahia, Aba, Owerri, and Okigwe. These include the businessmen and women, bank workers, civil servants, oil company workers, teachers, students, visitors even farmers, etc. we intend to supply those hotels that will sell to their final consumers.
Distribution strategy
The major problems Nigeria is facing are poverty, hunger, and health problems due to malnutrition. That is why the government is out to invest in agriculture and support anyone that wants to go into agriculture. Therefore, Ryan Pig farms being a business that will provide food and employment to Nigeria citizens is a business with a choice product and services both to the government and the populace.
Promotion Strategy
We will start by designing signposts at the entrances of our outlet shops. Also, personal (one-on-one) adverts will be effectively used, where we shall be contacting the eateries, hotels, and restaurants around to tell them about our product.
There will be an effective use of the internet to market our product. The farm already has an e-mail and Facebook account through which the product is being communicated and advertised. Our potential customers have started expecting the arrival of the product in the market.
As the company grows and the network of our customers expands, we intend to subscribe to the television and outline advertisement that can be viewed by millions of population that use the net. The farm will also have a well-designed website where millions of potentials customers will be directed to post their comments and learn more.
Competition
Recently, there is no stiff competition in the pork business especially in the southeastern part of Nigeria because there is a massive shortfall in the supply of other substitutes like beef and fish in the market. Secondly, the size of the pork meat and the price in comparison to other competitors are different. In this effect, the Ryan Pig farming business has gathered quality knowledge and experience as regards the production of quality pork products that are most desirable in the market.
Our products are designed for those who know the nutritional values of our pork products and are willing to spend on them. Also, our society is getting more advanced and people are getting busier due to the improved means of growing pigs introduced by the Ryan Pig farms and how the waste product is being recycled for agricultural (farming) purposes.
Amongst all the dealers of pig products, none of them has the concept of drying and packaging of the waste which we are improving to meet the status of exporting to other localities with time. This will give us a good edge over our competitors.
Production/ Operation Plan
Description of location
Ryan pig farming business is located 229 Ojo Road Lagos, Nigeria, 102211.
Raw material
The following are the raw materials that will be needed in Ryan pig farming business from time to time.
| MATERIAL | DESCRIPTION/ USES | KEYS SUPPLIER/ SOURCE |
| PKC (feed) | This is one of the feed that the pigs feed on, it is a rich source of vitamins, protein, fat and oil, calcium, etc. it nourishes their body and makes them grow fast. | I will be buying from Umuahia. |
| Blood meal | This is another delicacy that the pigs feed on their speeds their growth rate. It is always mixed with their food. But it must be boiled to kill the germs that came with the blood. | We will get it from the Abattoir. |
| Antibiotics | This presents them from disease outbreak and to cure any client at any given time and to nourish their body. | We will buy from the veterinary medicare store. |
| Water | They drink it and sometimes swim in it. | From the borehole. |
Production equipment
- land
- Generator
- 10 chamber rooms
- Borehole
- Plastic tank (2)
- Wheelbarrow
- Head pans & shovels
Production process
The production process in Ryan pig farming business starts from the stocking of the farm with weaners, (piglet) when they are one month old and culturing it, taking care of it from them tell when it will be 4 months in my pig farm, i.e. the maturity stage. This is when the meat is ready for the market and can be supplied or butchered and sells on a table to consumers.
Production cost
___________ pig farming business intends to start with 100 weaners that will mature in four months i.e. brood and sale. So in a year, we intend to brood 300 weaners and sell them.
The cost of a weaner i.e. 100 weaners is N800, 000
Initial Investment Cost:
| S/N | Raw Material | Unit Required | Cost Per Unit | Total Value |
| 1. | Weaner & transport | 100 | 8,000 | 800,000 |
| 2. | Blood meal | 150 gallon | 1,200 | 180,000 |
| 3. | PKC (feed) | 20 tons | 40,000 | 800,000 |
| 4. | Antibiotics, drugs | – | – | 80,000 |
| 5. | Disinfectants | – | – | 60,000 |
| 6. | Transportation | – | – | 60,000 |
| 7. | Labour | 4 months only | 15,000 | 60,000 |
| 8. | Vet medicine services | 4 months | 10,000 | 40,000 |
| 2,080,000 |
Stock control process
I intend to use manual record-keeping which entails a paper-based record-keeping system for the fact that it is less expensive, correcting entries may be easier with manual systems, as opposed to computerized ones that can leave complicated audit traits and the risk of corrupted data is much less and data loss is less of risk.
RECORD KEEPING DOCUMENTS ARE AS FOLLOWS:
| S/N | BOOKS TO BE KEPT | REASON |
| 1. | Income & expenditure record | To know my income and expenditure on the farm. |
| 2. | Annual valuation record | To know the statement of the value of stocks at the beginning & end of the year. |
| 3. | Farm diary | To know the daily activities on the farm. |
| 4. | Farm monetary of tools & properties | To know the items on the farm and their value. |
| 5. | Profit and loss account | To know the success and failure of the business. |
| 6. | The yield of production record | To know the yield of crops cultivated on the farm. |
| 7. | Labor records | To know how much was paid for Labour during the period. |
| 8. | Sales record | To know the total product sold during the period. |
| 9. | Purchase record | To know the expenses made on the pig farm. |
The method of inventory to adopt is FIFO i.e. first in, first out.
Pre–operating activities and expenses
| S/N | ITEMS | DESCRIPTION | TOTAL AMOUNT |
| 1 | Land | Where the whole activity will be done | owned |
| 2 | Borehole | This will supply water to the pig farm | 250,000 |
| 3 | Plastic tanks | For water reservation | 125,000 |
| 4 | Generator | It Will be used to pumping water | 150,000 |
| 5 | 10 chamber rooms | This is where the pigs will be kept | 1,800,000 |
| 2,325,000 |
Organizational and Management Plan
Ownership of the business
The Ryan pig farms is a sole proprietorship business that is being owned and managed by Ryan The Manager from Nigeria.
I prefer sole proprietorship ownership to enable me to explore any strategy that will enhance the growth of the farm.
Profile of the entrepreneur
Please, add the profile of the entrepreneur.
Key management staff
Ryan Pig farms is the initiative of Ryan Uchechukwu, who is the founder and director with the highest share capital in the business. The business is a private company that will grow into PLC in the future, and the founder shall be an active participant in the management decision. The business is a private business that will be incorporated with the Nigeria cooperate Affairs Commission (CAC). Farm owners saw the need to venture into piggery (a branch of agriculture), to principally help eradicate hunger and create employment for the youth of Nigeria. To be able to achieve her objectives, of Ryan Pig farms intends to employ capable people with great team spirit to manage the business. The key management staff is tabulated below:
| Staff | No. | Functions | Skill |
| Farm manager | 1 | Will give management direction to the business. He will be doing the general managerial works on the farm. The farm director is the CEO/MD of ___________ Pig farms. | Will be experienced in management and farming operations. The skills of the business administrator will be very important. The Manager has entrepreneurial qualities of determination and innovation that will make him succeed in the business. |
| Farm attendants | 2 | Will do the stocking, feeding, and maintenance of the farm. They will operate under supervision. | Will be trained to do the job. |
| Farm vet doctor | 1 | Will be resisting the farm twice a month to inspect the health condition of the pigs, and other future livestock products. | He/she will be an experienced veterinary doctor. |
| Chief accountant | 1 | It will be on a contract basis on the farm. The accountant is needed for financial advice and audition. | He/she will be an experienced accountant. |
| Farm lawyer | 1 | It will be on a contract basis I the farm. He shall be responsible for purchasing the company properties, legal advice, and other legal issues in the company. | I will be an experienced lawyer. |
| Security men | 2 | Will ensure the security of the farm, gatekeeping, and the constant secured status of the farm. | Will be experienced in security and gatekeeping work. |
| Farm driver | 2 | In charge of driving the company vehicles. | Experienced drivers with at least an o’ level certificate. |
Details of the salary schedule
SALARY STRUCTURE FOR 3 YEARS
1ST YEAR SALARY STRUCTURE
| STAFF | MONTHLY SAL. | 4-MONTH SAL. | ANNUAL SAL. |
| Farm director | N 20,000 | N 80, 000 | N 240, 000 |
| Farm attendant 1 | N 10, 000 | N 40, 000 | N 120, 000 |
| Total | N 30, 000 | N 120, 000 | N 360, 000 |
2ND YEAR SALARY STRUCTURE
| STAFF | MONTHLY SAL. | 4-MONTH SAL. | ANNUAL SAL. |
| Farm director | N 25, 000 | N 100, 000 | N 300, 000 |
| Farm attendant 1 | N 12, 000 | N48, 000 | N 144, 000 |
| Farm attendant 2 | N 10, 000 | N 40, 000 | N 120, 000 |
| Total | N 188, 000 | N 564, 000 |
3RD YEAR SALARY STRUCTURE
Same as 2nd year.
Organizational Structure
The expected hierarchy and channel of information flow in Ryan Pig farms can be best described using the organizational chart.
Financial Plan
Financial assumption
Some of the important assumptions that support my estimation is as follows:
- The loan interest rate is assumed to be 9%
- The loan and accrued interest rate are paid annually and spread across the 4 months of the year by dividing by 3
- It is assumed that insurance premium is at 2% of total insurable risk
- It is assumed that the depreciation rate is 20%
- It is assumed that the price is constant over a given period
- It is assumed that the mortality rate on the farm is 4%
- It is assumed that the cost of sales/buying is constant over a given period
- It is assumed that the maturity/harvest time is 4 months
- The profit and loss plan is calculated in 4 months.
Start-up capital
| Activity | Description/details | Amount |
| Pre–operating expenses | Borehole | 250,000 |
| Plastic tank | 125,000 | |
| Generator | 150,000 | |
| 10 chamber room building | 1,800,000 | |
| Initial stock | 100 weaner and transport | 800,000 |
| Initial operation | Blood meal | 180,000 |
| Expenses | PKC (feed) | 800,000 |
| Antibiotics, drugs, treatment, and disinfectants | 140,000 | |
| Transportation | 60,000 | |
| Labour | 40,000 | |
| Veterinary doctor services | 40,000 | |
| Advert and miscellaneous | 20,000 | |
| TOTAL | 4,405,000 |
Source of Capital
| Source | Amount |
| Shareholder Equity | 500,000 |
| Loan | 4,000,000 |
| Total | 4,500,000 |
Security for loan
The security to access loan capital shall be a parcel of land located at “location”
Loan repayment plan
LOAN = N 4, 000, 000
INTEREST RATE = 9%
| Year | Loan Balance | Interest | Amount Due | Monthly Repayment | Total Paid |
| 1 | 4,000,000.00 | 360,000.00 | 4,360,000.00 | 180,000.00 | 1,080,000.00 |
| 2 | 2,920,000.00 | 262,800.00 | 3,182,800.00 | 150,000.00 | 1,800,000 |
| 3 | 1,120,000.00 | 100,800.00 | 1,220,800.00 | 101,735.00 | 1,220,820.00 |
NOTE: The loan is repaid monthly after 6 months period of moratorium. Total repayment period of 30 months.
Business Risk and Mitigating Factor
Business risk
Some of the risks normally encountered are as follows:
- Risk of diseases outbreak
- Risk of stunted growth
- Risk of malnutrition
- Risk of deflation
- Risk of stealing
- Burning encroachment
- Increase in price of raw material with a decrease in the sale price
- Increase in tax
- Increase in cost of production
- Implementation of harsh policies
- Damage or loss of equipment’s
- Mismanagement of fund etc.
SWOT analysis
Strength and opportunity of the business
There are business internal environmental factors that can affect the business.
–Patents: – Ryan Pig farms will ensure that our products will be certified by the standard organization of Nigeria (SON) and get our trademark. Also, our future services like the company’s book will be patent so that no illegal competitor can copy them.
–Strong brand names: – One unique marketing strategy of our products is that it is not meant for everybody, our products are only meant for our customers, so we produce a commodity, but a brand. At the startup of the strong brand name, but with time we shall succeed.
–Good reputation among customers: – Ryan Pig Farming company is a business where there shall be trust between us and our customers. We shall maintain quality, make on-time delivery of our products to our suppliers, and keep to our words.
–Cost advantages from proprietary know-how: – the management of Ryan Pig farms here made through research and discovered the best way to optimize the cost of pig production. We can now harvest our matured pigs in 4-months against most of our competitors that almost spend 7-8 months to raise a mature pig.
Opportunities and threats (O.T.)
-There are business external environmental factors that can affect business growth and profits.
–Unfulfilled customers need: – The mission of Ryan Pig farms is to innovate and respond to the customer’s needs in a well-defined market. The producers of pigs (pork meat) in Abia State and its environs do not produce enough meat to satisfy the market. There is still a demand-supply gap, and Ryan Pig farms want to bridge this gap with our unique product.
–Government regulations: – Nigerian government wants the number of local producers to increase before placing a ban on imported livestock food. If it happens it will give us the great size of the market.
Financial Forecast
Sales forecast
Cost of piglets forecast
Operating expenses forecast
Profit and loss account
Miscellaneous
Annual profit projection
Insurance details
1ST YEAR INSURABLE ASSETS
| Asset | Amount |
| Plastic tank (2) | 125000 |
| Generator | 150000 |
| 10 chamber room for pigs | 1,800,000 |
| Borehole | 250,000 |
| Total | 2,325,000 |
| Insurance premium | 2% of insurable assets per annum |
| Premium | 46,500 per annum |
2ND YEAR INSURABLE ASSETS
| Asset | Amount |
| Plastic tank | 200000 |
| Generator | 150000 |
| 12 chamber room for pigs | 2,160,000 |
| Borehole | 250,000 |
| Total | 2,760,000.00 |
| Insurance premium | 2% of insurable assets per annum |
| Premium | 55,200 per annum |
3RD YEAR INSURABLE ASSETS
Same as year 2.
