Complete Pig Farming Business Plan: How To Start A Piggery

Having 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.

The sector boasts higher and quick returns as Pig meat is widely consumed due high efficiency of special pig breeds.

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 required to prepare a business plan to guide Pig Farmers.

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Sections of The Pig Farming Business Plan

Introduction

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 that come together to give or provide a thorough overview. However, feel free to remove subsections that do not apply to the business.

• Title Page
  • This page provides the name of the document, the business’ name, and the names of those involved in coming up with the business plan. Please provide the date in this section to remind you when it was developed and keep it updated.
• Executive summary
  • This section appears at the front of the business plan, but it is the last section developed; 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 over time and gotten to its current form. It should talk about how the business’ financial measures have changed over time. Then, information related to the business location (you can add pictures), current sales, inventories, assets, marketing area, number of employees, and any other helpful information. The reader should have a snapshot picture of the business’s current status.

Marketing Management of Pig farming business plan

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 the marketing opportunities you face 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 whether you’re successful with your marketing plan.
  • Also, talk about how you plan on mitigating 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;

1. Production SWOT analysis
2. Overview of production assets
3. Managerial expertise
4. Production performance
5. 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;

1. Human Resource SWOT analysis
2. Organizational chart 
3. Overview of current policies
4. Managerial expertise
5. 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;

1. Financial SWOT analysis
2. Review of the current economic situation
3. Financial strategy
4. 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 what your plan intends to do 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?

Bacons are enjoyed everywhere in the United States, 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 which adds value to their final production.

What makes they piggery business and interesting and lucrative venture for most people. So, if you decide to venture into bacon or pork production, here 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 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.

It takes 5 to 6 months for a well fed pig to attain a weight of 200 to 300 lbs. (91 to 135 kg). In 2022, the price of US pork is 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 inventory of hogs and pigs as of March 2022

2) High demand for Pig waste

Organic crop growers, utilize waste from pig farms in preparing manure for the crops they grow. Organic vegetables in particular has high value on the market and for this reason, some pig farmers collect and sell pig waste for extra cash while other 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 within the age of 8 to 9 months can farrow twice in year given that the pig breed is highly prolific, a sow can produce a litter size between 6 and 12.

4) Wide taste for variety of feed

Pigs naturally feed on a lot of edible materials. From snakes to vegetables and grains, pig can actually consume anything for survival. Yes, I stated pig 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 non-nutritional diet. A well balanced diet mixed with fruits like water melon with help the pigs grow and mature faster.

5) Most relied 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 use in making meals and attracts a lot of consumers all 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 in building piggery structure

Each barn may cost $400 to build depending on the materials used. This include cement blocks, wood, roofing, and wire mesh. A standard piggery structure can be very costly. So, as beginner, you can start with a small size and expand in future.

2) Pig farming requires time

When you start pig farming business, your presence is required on site daily. By standards, you are required to feed the pigs twice daily and also ensure they have enough water in their wallow to cool their body temperature it is hot. For most standard pig farms, air conditioners are installed instead of wallows.

Types of pig farming

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 they all depend 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 is consider as 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 pigs 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 form 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.

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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