PIGGERY


Introduction
This business idea is for rearing pigs. The business idea needs planning, coordinating and at most care if one has to benefit from it. The business idea aims at production and sale of 1,000 animals annually. The revenue potential is estimated at US $, 100 per year. The total capital investment for the project is US $ 500.


Production capacity
The envisaged project is aimed at selling 360 pigs annually. The idea assumes a 6 month production cycle. I.e. pigs are sold after 6 month.


Technology and processes description
The technology needed includes shelter, feeds, the piglets, water, feeding troughs and medicine. The process of rearing pigs involves buying piglets, feeding them very well, cleaning the pen and
removing all waste, and monitoring the health of the animals. Feed the pigs till they can way 80Kgs and above and sell. Pigs also reproduce so you don’t have to buy more piglets.


Market Analysis
Pork is on high demand throughout the Country. They can also be exported to neighboring Countries. Among the key players includes; Fresh Cuts, Top Cuts, Quality Cuts, among others.


Scale of Investment
1. Capital Investment Requirements in US $

Capital Item

Units

Qty

Unit Cost

Amount

Wheel Barrows

No

5

30

150

Spades

No

40

2.5

100

Feeding Troughs

No

25

10

250

Total

500




 

2. Production and Operating Costs in US $

Cost Item

Units

Unit
cost

Qty
per
day

Prod
Cost/
day

Prod
Cost/
month

Prod

Cost/
Year1

Direct costs:







Piglets

No

10

0

0

167

2000

Feeds

Bags

1.5

0

0

608

7300

Medicine

0

0

0

23

280


Other Feeds

0

0

0

42

500


Subtotal

840

10,080





General costs (Overheads)







Labor

400

4,800





Utilities

200

2,400





Administrative expenses

100

1,200





Shelter(rented)

200

2,400





 

Depreciation (Asset write off) Expenses

21

250

Sub-total

921

11,050

Total Operating Costs

1,761

21,130

1. Production is assumed for 365 days per year.
2. Depreciation assumes 2 year life of assets written off at 50% per year for all assets.
3. Project product Costs and price Structure in US $

Item

Period

Out
put

Unit
Cost

Unit
price

Total
cost

Total
revenue

Pigs

6month

195

61

90

11,808

17,550

Pigs

1 year

195

61

90

11,808

17,550

TOTAL






35,100

4. Profitability Analysis Table

Profitability Item

Per
day

Per
Month

Per Year

Revenue

113

2,925

35,100

Less: Production and Operating Costs

68

1,761

21,130

Profits

45

1,164

13,970