A pig farming business plan is vital if you are interested in pig farming. Pig Farming is a booming area of production with much promise. Though there are a lot of pig farming business plan samples out there, going deep into reality is what this article is about.
The sector boasts higher and quick returns as Pig meat is widely consumed due high efficiency of special pig breeds.
How do pig farming? Pig farmers are encouraged to have a pig farming business plan to guide them through their production, assist them in accessing loans, and attract potential investors. This article discusses the steps to preparing a business plan for Pig Farmers. What do you need to include in a pig farming business plan doc?
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Sections of The Pig Farming Business Plan
How many pigs do you need to start a pig farm?
Introduction pig rearing business plan
Marketing Management
Production/ Operations Management
Human Resource Management
Financial Management
Summary
Appendices
How to write a piggery business plan
Introduction
This section gives a comprehensive background and overview of your piggery business. The section has several subsections to give or provide a thorough overview. However, feel free to remove subsections that do not apply to the business.
How to start a pig farming business
- Title Page
- This page provides the name of the pig business plan document, the business name, and the names of those involved in developing the business plan. Please provide the date in this section to remind you when it was developed and keep it updated.
- Executive summary
- Executive summary of the piggery business appears at the front of the business plan, but it is the last section developed; it presents the most crucial information, which may include the firm’s overall goals and objectives, i.e., it should talk concisely about what the business is, what it wants to do, how it will do it and the projected rewards from it. The executive summary should give a brief overview of the business plan.
- Table of contents
- The table of contents should provide the titles of all the section headings in the pig farming business plan and their page numbers.
- Vision and Mission statement
- The Mission statement talks about the primary reason for the existence of your piggery business, its unique circumstances, the product(s) it sells, and why it is in business. You always revise and update it to reflect the changing face of the firm. The Vision statement tells the reader what particular position the firm is in or plans to enter and the most important goals of the business.
- Business Organizations
- Briefly describe in this section the legal organization of the pig farming business plan (for example, partnership, corporation, or proprietorship).
- Overview of the current situation
- This section of the pig farming business plan may be helpful when the plan is to be used for securing financial assistance. The overview helps set the context of how the business has changed and gotten to its current form. It should discuss how the business’ financial measures have changed. Then, information related to the business location (you can add pictures), current sales, inventories, assets, marketing area, number of employees, and other helpful information. The reader should have a snapshot picture of the business’s current status.
Marketing Management of Pig farming business plan
How profitable is pig farming?
This section is more like the juice of the plan. The subsections include;
- Marketing SWOT analysis
- Talk about the Strengths, Weaknesses, Opportunities, and Threats surrounding your business and discuss the results.
- Products and services produced.
- Talk about the specific products or services you offer.
- Your statement may be like, ‘We raise pigs for meat.
- Industry Overview and Position
- Please talk about your industry and your business fit into it.
- Consider including trends in industry sales, competitors, cash markets, new market opportunities, and threats surrounding your business, and discuss the results.
- Thoroughly describe the customer base to help you better define your target market.
- Marketing strategy
- Describe your marketing opportunities and how you intend to take advantage of those.
- Talk about the advertising programs you will undertake, how you will distribute your product, and how you will measure your success with your marketing plan.
- Also, discuss how you plan to mitigate risks and what tactics you will use. You will need to talk about how you intend to manage risks associated with input and output prices.
- Managerial Expertise
- Take stock of the total managerial expertise used by the firm. Talk about the marketing-related knowledge the manager possesses.
Production/ Operations Management
Assessing the operations process and making pig farming business plans for the future is essential, especially when you’re planning on expanding or change is about to happen in the business.
In your pig farming business plan operations, talk about;
- Production SWOT analysis
- Overview of production assets
- Managerial expertise
- Production performance
- Production strategy
Human Resource Management
The competency of your labor force may determine how successful your business will perform.
In this section of the pig farming business plan, you are required to be strict on the following;
- Human Resource SWOT analysis
- Organizational chart
- Overview of current policies
- Managerial expertise
- Human Resources Strategy
In case you missed it: Here are some common mistakes to avoid in pig farming.
Financial Management
How to start pig farming
This section of the pig farming business plan is the most crucial factor from the potential lender’s viewpoint. Financial statements are best presented in the appendix. Explain the pig farming business plan finances. We advise that you work with a business consultant, accountant, or financial advisor to develop this part, especially if you’re pursuing other funding options.
Talk about;
- Financial SWOT analysis
- Review of the current economic situation
- Financial strategy
- Managerial expertise
Summary
This part of your pig farming business plan should tell your reader the highlights of your plan. Restate your most crucial goals and mention how you plan on achieving them. Draw focus on your plan to reach future profitability, efficiency, liquidity, and solvency.
Appendices
The appendix of the pig farming business plan might contain your financial statements, both Pro-forma and actual, which point to your financial management section. Include anything that may be crucial to the body of your pig farming business plan. Give each appendix a unique name, such as ‘SWOT analysis results’ or ‘Financial statements.’
What are the advantages of pig farming?
Slices of bacon are enjoyed everywhere in the United States, in homes and restaurants. The average farmer in the United States earns around $46,193 annually. The estimated profit earned from pig farming is dependent on the number of pig stock, production cost, and management cost. Pig farmers who earn extra cash from their production include processing, adding value to their final production.
What makes the piggery business an interesting and lucrative venture for most people? So, if you decide to venture into bacon or pork production, here are the benefits.
1) High feed-to-meat conversion ratio
Unlike raising poultry birds, birds are known to convert feed into feathers, eggs, and meat. What if you need more meat from the birds, but they keep developing more feathers? This is a typical problem I encountered during my service as an extension officer. But do you the interesting thing and joy pig farmers were enjoying? Pigs have no other business than to convert feed consumed into meat.
A well-fed pig takes 5 to 6 months to attain a weight of 200 to 300 lbs. (91 to 135 kg). In 2022, US pork prices are expected to be between US$ 2.47 and US$ 2.47 per kilogram or between US$ 1.12 and US$ 1.12 per pound (lb.). The price per kilogram is EUR 2.47. In New York and Washington, the average price for a ton is $2474.5.
Top 10 U.S. states by the inventory of hogs and pigs as of March 2022
2) High demand for Pig waste
Organic crop growers use pig farm waste to prepare manure for their crops. Organic vegetables, in particular, have a high value on the market. For this reason, some pig farmers collect and sell pig waste for extra cash, while others use it on their farms instead of buying synthetic fertilizer.
3) Highly prolific
If you own a sow and boar a new pig farmer, you can get up to an estimated number of 18 to 20 pigs within a year. A sow between the age of 8 to 9 months can farrow twice a year. The pig breed is highly prolific, so a sow can produce a litter size between 6 and 12.
4) Wide taste for a variety of feed
Pigs naturally feed on a lot of edible materials. From snakes to vegetables and grains, pigs can actually consume anything for survival. Yes, I stated pigs eat snakes. This was an eyewitness moment when a snake entered a pigsty. They killed and fed on the snake.
The fact that pigs can consume anything edible does not mean you should feed them garbage and a non-nutritional diet. A well-balanced diet mixed with fruits like watermelon helps the pigs grow and mature faster.
5) Most relied on meat for Sausage making
Sausage producers in the United States and most countries prefer using meat from pigs in producing sausages for the market. The United States sausage production industry is estimated at $19.2bn in 2022. Sausages are easy to use in making meals and attract many consumers year-round.
What are the disadvantages of pig farming?
This is a complete beginner guide, and the aim is to let you know what is good and bad about the pig farming business. This may not be a disadvantage, provided you have the means to take care of every cost.
1) Cost of building piggery structure
Each barn may cost $400 to build, depending on the materials used. This includes cement blocks, wood, roofing, and wire mesh. A standard piggery structure can be very costly. So, as a beginner, you can start with a small size and expand in the future.
2) Pig farming requires time
When you start a pig farming business, your presence is required on-site daily. By standards, you are required to feed the pigs twice daily and ensure they have enough water in their wallow to cool their hot body temperature. For most standard pig farms, air conditioners are installed instead of wallows.
Types of pig farming
The pig farming business can be classified into two forms the pig fattening farming business and the pig breeding farm business. Each type of pig farm business is very lucrative and depends on each other.
Pig breeding farming business
This category of pig farming specializes in raising what we call the breeder stock. The breeder stock has varieties of pig breeds crossed to produce offspring. Piglets from the breeder stock are considered pure line breeds when they come from the same breed and hybrid when it’s a cross between two different breeds. Pig breeders are relied on mostly by pig fattening farmers to supply their farms for production.
Pig breeders research into feed enhancers for pig growth, breeds best for local farmers, disease-resistant pig breeds, and minimizing mortality in piggery with proven research works in with their pig breeding programs.
Pig fattening farming business
Pig fatteners are solely interested in buying matured pregnant sows or piglets from pig breeders to start production. This type of production is responsible for the bacon, ham, and lard we enjoy from pig meat. Pig fatteners run daily farm management by caring for the piglets until they reach the maturity stage (5-6 months) for slaughtering.
Pig farming for beginners
The pig is one of the most important animals in modern-day farming. They are used for food, for their fat, for their skin, and organs. The amount of products made from pigs is incredible, and their use in farming is essential for keeping people fed and healthy.
Types of pig housing systems
The pig housing system is intended to safeguard pigs while providing them with the best possible habitat for growth and production. The types of pig housing systems are determined by a farming system that varies according to the prevailing farming conditions as well as the farmers’ financial status. It does not matter if having a small piggery business plan; pig housing is crucial.
List of pig housing systems
Pigs are housed in sites that are divided into one or more pens, each with a single or group of animals based on age, sex, and purpose. Below are some types of housing systems and low-cost pig farming housing plans to consider for a pig farmer.
Confinement Housing System
A pig confinement housing system is a complete production facility. Buildings, feed and water systems, manure handling systems, pig handling equipment, pens, and gating are included. This housing system allows for better mud, dust, and manure control and reduced labor for feeding, breeding, and transporting to the farrowing house. Confinement housing systems also allow the pigs to be separated from other animals, which improves biosecurity.
Outdoor or Free-Range Housing System
It is a pig-keeping system in which the pigs can freely move and forage on open lands. The pig has complete access to water, feed, wallows, sunlight, fresh air, and plenty of space to run about or sleep outside anytime it wants. Outdoor or free-range pig rearing is frequently advocated as having better animal welfare and environmental performance. Pigs reared in this system have greater production values and lower input costs.
Deep Litter System
This is a system where several pigs are housed in a single covered enclosure where they can wander freely. The floor could be concrete or appropriately compacted and raised litter. Litter acts as insulation to keep young pigs warm. Pigs grown in a deep litter system outperform pigs raised on a concrete floor in similar conditions.
The partially slatted floor system
Part of the floor is slatted in the partially slatted floor system, and manure and urine fall into a pit below the floor, forming a slurry. This approach is also far less labor-intensive than having to scoop or remove the waste on a regular basis. This housing method gives pigs a specialized (solid) resting place, improved drainage in farrowing pens, and pigs have more lesions.
All-Slatted Floor System
There are long and narrow openings in the floor of the all-slatted floor housing system. This housing system essentially provides a waste disposal system in the barn, preventing the pigs from lying around in messes. They also lessen the labor required. Because the pigs have no contact with the ground with this system, soil-borne diseases are eliminated, and there is no need for litter or bedding.
Straw-Bedded Housing System
The straw-bedded housing system refers to pig houses in which the floor is coated with a thick layer of litter straw that is removed only at many-month intervals. Straw has numerous benefits, the majority of which are beneficial to pig behavior and welfare by providing a comfy floor. This system has been identified as one method of growing pigs without tail docking by enhancing their natural exploratory activity.
Nursery Housing System
A nursery housing system is a facility or building that is specifically built to house newly weaned pigs until they reach the grower/finisher stage. This system requires the most capital and human resources, as well as the maintenance of clean facilities and proper ventilation. Pigs grown in this system have greater exit weights and better grow-out performance.
Farrowing Housing System
A farrowing housing system is one in which a sow gives birth to her piglets and then stays with them until they are weaned. Sows are transported to the farrowing house a few days before their projected delivery date. This housing system allows the piglets to be with their mother while also allowing the sow to walk around and obtain her food and water without contaminating them. It offers sows comfort and piglets a safe and warm environment.
Dry Sow Housing System
A dry sow housing system is where an adult female pig who is between litters and not producing milk is housed. A good dry sow housing system should provide an intriguing environment in which a variety of behaviors can be expressed. The system also contributes to the well-being of the pigs being produced. Aggression is also lessened by giving the sow greater space, bedding material, and barriers.
Finisher Housing System
A finisher housing system is where market-ready pigs are kept until they are sold or slaughtered. The finisher housing floor can be constructed with non-slip concrete flooring with varying degrees of openness. A solid floor is advised in the building to limit the amount of ammonia evaporation, resulting in better pig welfare.
Multi-tier Housing System
Multi-tier housing systems improve pig well-being by allowing them to express their natural behavior and stimulate healthy development. The multi-tier system is one in which tiers are the most common characteristic of the housing and give living space at various levels. This housing has numerous benefits, such as lower installation costs and lower feed consumption due to fewer pigs moving. There is also a reduced risk of illness and parasitism.
Climate-Controlled Housing System
This housing system is critical in determining the inside climatic conditions of the house for optimum pig health, growth, and productivity. The correct climate in the house promotes your animals’ growth and health while saving you money on feed, water, and electricity. The Climate-Controlled Housing System allows you to fully manage the environment inside your pigs’ confinement.
Breeding Housing System
A breeding housing system is a type of housing in which a boar and gilt or sow are paired for breeding in order to include or retain desired features. This housing system influences your pigs’ genetic background and hence plays a vital role in their activity performance and meat quality. It is intended to safeguard pigs and provide them with the best breeding environment possible.
Mobile Housing System
After a quick start-up, the mobile housing system is ready for the pigs to move in. It protects the pigs from the elements, supplies them with water and extra feed, and slowly moves across a field, introducing the animals to new grass every day. Ventilation can be adjusted in this system to keep animals healthy while also reducing overgrazing and overfertilization of the field.
Integrated Pig-Fish Farming System
An integrated pig-fish farming system is one that produces fish alongside pig-farming operations centered around the fish pond. Pig dung is a great pond fertilizer, boosting the biological productivity of the pond and, as a result, increasing fish production while also lowering the expense and demand for compounded fish feeds. The goal is to save resources while improving farm profits.
Conclusion
Pig Farmers can follow this guide to develop a pig farming business plan successfully. A well-written business plan can give a particular pig farmer an advantage over other farmers in securing funding or investors for their business.
Source:PoultryABC.com
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