Business Plan for Piggery _ Pauline
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Business Plan for Basic Pig Husbandry Introduction This Business Plan is in respect of an existing Private Pig Husbandry at Oke Aro pig farm, in Ifo Local Government Area, Ogun State. The investor is interested in expanding the l evel of returns on the pig Husbandry The Project. The Pig Farm Estate was acquired from Ogun State Government for onward allocatio n to would be farmers by the Lagos State Government. The private Pig Husbandry is within th e Oke-Aro Pig Farm on a site of 30 X 120 with twenty one standard rooms and two stores for food storage and an office for administrative duties. We have also acquired the adjoining pen with nineteen standard rooms and a store which need to be renovated and dedicated to farrowing . Business Plan / Operation Concept Pig farming has two major concepts; breeding and production of pigs for slaughte r. We intend to acquire thirty gilts (about to cross) for breeding and fifty grower s to be fattened for sale in the fourth month. We will carefully cross the gilts on heat and must be taken care of because we w ould have carefully selected them for breeding. One of the greatest effects on profitability is the number of piglets reared per sow per year. As well as possessing the genetic potential to improve the production characteristi cs of her progeny, the sow must have the ability to rear large, healthy litters. Breeding We will select animals that are proven superior to their contemporaries because we know that if gilts are not managed properly when they arrive, wastage can be high, which c an be expensive and disrupt breeding programs. We propose a max of 30 Gilts 50 Growers sourced from a genetically superior stoc k at take off time. The boars among the growers will be castrated and separated from the sows. However, three boars from our present stock will be used for crossing the gilts as soon a s they come on heat. Grower Phase: 20 50 kg
Management practices during this period are aimed at fast economical growth of p igs and for this reason feeding is on a generous scale to achieve quite heavy weights in pig s. Page 1 of 5
Reducing stress during this period is critical. Overcrowding in particular cause s high stress factors, which depress the efficiency of food utilization, limit growth rate and cause unevenness of growth. Finisher Stage: 50 -75 Kg When growers attain 50kg live weight, the gilts would have come on heat the seco nd time at which stage they can be crossed/mated with a boar. These gilts, s to farrow. things being g mortality. Though, they
when mated with the boars available, will take 114 days for the sow All equal, 30 inpigs should farrow an average of 180 piglets considerin normally farrow between 5 and 12 piglets.
However, during the inpigs gestation period of three months, three weeks and thr ee days, we will keep fattening the other growers for sale in the week we expect the inpigs to begin farrowing. This is to create room for the inpigs to farrow. We project that at the end of the first four months 50 Castrates/Sows at a targe ted weight of 75kg should be offered for sale. Piglets The newborn piglets have no protective immunity at birth and it relies on the in take of colostrums for the transfer of passive immunity from the sows. This immunity las ts for 10 14 days, but the piglet s own system does not start to develop until it is 21 28 days o f age during this period, the baby pig s digestive system is geared to handle a milk-based diet . Therefore, piglets weaned at less than 28 days are at risk because their ability to resist a disease challenge is at its lowest. As the piglet matures so does its enzyme system. Therefore, pi gs weaned after 28 days of age are more capable of handling non-milk carbohydrate and protein. Weaning is a stressful experience for young piglets, affecting them both sociall y and physiologically. However, high standards of management can dramatically reduce p ost-weaning losses and improve growth rates by moderating the stress of weaning. The shorter the suckling period, the more sophisticated the housing, feeding and management skills requir ed to raise the piglets. Therefore, we adopt Conventional weaning: 5 10 kg liveweight (LW) (5 6 weeks of age) . At this age, pigs are of a size and age to fend for themselves under average far m conditions. It
must be known that age of weaning is an integral part of the breeding program an d to reduce weaning age will involve changes in the mating and farrowing programs. It is une conomical to feed the piglets via the sow s milk beyond six weeks. However, in order to maintain piglet growth rates, they must receive additional feed. Fortunately, by this age and weight, pigs are becoming accustomed to dry feed an d can better adjust to temperature changes and stress. However, a high standard of hygiene mu st still be Page 2 of 5
maintained. Where a suitable environment can be maintained and producers have th e expertise, they can progressively reduce the weaning age to a point where they f eel they can still gain the necessary benefit of the pigs undergoing an earlier weaning. Feeding Diets fed during this period are termed medium density . Pigs differ widely in thei r response to various diets and general recommendations are inappropriate for any individual s et of circumstances. Nutrient requirements vary according to the genetic quality and s ex of the pig and the surrounding environment. Staffing. We have two competent and dedicated staff; a pen attendant and a vet attendant w ith knowledge of pig husbandry. Their emoluments are detailed below. RECURRENT EXPENDITURE FOR THE FIRST SEVENTEEN MONTHS A PURCHASE OF GROWERS AMOUNT N Cost of initial 30 Gilts @ N10,000.00 each. 300,000.00 Cost of 50 growers @ N5,000.00 each 250,000.00 B FEEDING/DAY FOR 80 PIGS PARTICULARS/FOOD ITEMS DAILY MONTHLY 50kg of PKC /days @N18,500 p/ton. 925.00 27,750.00 Blood meal 300.00 9,000.00 20kg of Bread 400.00 12,000.00 Premix 100.00 3,000.00 Bone Meal 40.00 1,200.00 10 bags of Brewery waste 1,000.00 30,000.00 C MEDICATION/SALARIES Salary for one attendant 10,000.00 Vet attendant Salary/Medication monthly 10,000.00 Monthly Feeding/Medical Expenses N102,950.00 i) Feeding and medication for the first 4 months 411,800.00 ii) Feeding 30 sows and 3 boars for the next 2 months 205,900.00 iv) Feeding 30 sows, 3 boars & 30 growers for the next 6 months 617,700.00 1,235,400.00 Total Expenditure For 12 Months 1,785,400.00 However, during the inpigs gestation period of three months, three weeks and thr ee days, the additional 50 growers acquired will be fattened and sold in the week we expect t he inpigs to begin farrowing. This is to create room for the inpigs to farrow. Page 3 of 5
INCOME ANALYSIS FOR TWELVE MONTHS Fourth Month 50 pigs at a targeted weight of 75 kg each=3750kg Sales price is N230.00 per kg. N862,500.00 Sixth Month 150 weaners @ sales price of N3,000.00 per weaner. N450,000.00 Twelfth Month *150 weaners @ sales price of N3,000.00 per weaner. N450,000.00 *30 pigs at a targeted weight of 100 kg each=3000kg Sales price is N230.00 per kg. N 690,000.00 N2,452,500.00 The sale of weaners will continue for as long as we continue to cross the existi ng sows. Meanwhile, the stock of 30 sows with an average weight of about 100kg each will be sold after farrowing twice @ N230.00 per kg = N690,000.00. However, the thirty weaners set aside from the initial 180 weaner farrowed, will be groomed for breeding to replace the old sows sold while yet having additional thirty wea ners, weaned in the twelfth month of operation. This will be the practice on a continuous basis until probably a new pen is purchased for expansion. SUMMARY OF INCOME & EXPENDITURE FOR THE FIRST TWELVE MONTHS MONTH DESCRIPTION EXPENDITURE INCOME BALANCE 0 Initial Capital outlay 1,000,000.00 1 Cost of initial 30 Gilts 300,000.00 700,000.00 1 Cost of 50 Growers 250,000.00 450,000.00 1 -4 Feeding & medication for first 4 months 411,800.00 38,200.00 4th Sales of 50 pigs N862,500.00 900,700.00 5 -6 Feeding & medication for next 2 months 205,900.00 694,800.00 6th Sales of 150 weaners 450,000.00 1,144,800.00 7-12 Feeding & medication for next 6 months 617,700.00 527,100.00 12th Sales of 150 weaners 450,000.00 977,100.00 12th Sales of 30 pigs 690,000.00 1,667,100.00 Please note that a further analysis into the successive months will show a huge increase in the income over expenditure. SENSITIVITY TEST AND RISK ANALYSIS General Our projections are based on estimates and forecasts. However, we have deliberat ely built up our expenditure estimates far ahead of income estimates, to prove the point that the piggery Page 4 of 5
project is actually very reliable and worthy. The results of our analysis show t hat despite our generosity with regards to expenditure, the Actual Profits, Cash surpluses (Curr ent and cumulative) still show good returns on investment. We must however point out tha t if expenditure growth rate had been slightly lower or pegged to the growth rate in income, the projected returns would have been much higher progressively for succeeding month s. Generally, in order to prevent a situation where serious losses can result, we h ave tried as much as possible to be conservative in our estimation of income and generous wit h our expenditure. By adopting these rather cautionary measures, our aim is to ensure that the reve nue receipts will eventually match or surpass the projections, while actual expenditure will also be at par or below our projected figures. Despite the above precautions, we have still though t it necessary to further adjust our projections for unexpected setbacks. Finally, therefore, we aver that our survey, analysis, projections and calculati ons indicate that this investment promises to be remarkably rewarding to the financiers/investor. Page 5 of 5