New Business Idea PIGGERY Production and Marketing with Costs in USD

 PIGGERY

Introduction
This business idea is for rearing pigs. aimed at production and sale of 360 pigs annually. The revenue potential is estimated at US $ 86,850 per year with a profit margin of 75%. The total capital investment for the project is US $ 11,900 and the payback period is almost 5 months. The business risk involved in this idea is the high rate of infection, which spreads quickly among the animals.
However, this can be mitigated by increasing the animal’s resistance e.g. by improving the quality of feeds.

Technology and processes description
The items needed include shelter, feeds, piglets, water, feeding troughs and animal remedies. The pig rearing process involves feeding them very well, cleaning the pen, monitoring the health of the animals and have them grow to the weight of 80Kgs and above to be ready for sell. Pigs also reproduce so you don’t have to buy more piglets.

Scale of Investment

Capital Investment Requirements in USD
Capital Item	Units	Qty	@	Amount
Wheel Barrows	No	5	30	150
Spades	No	40	5	200
Piglets	No	25	50	1,250
Piggery Shade	No	1	10,000	10,000
Feeding Troughs	25	12	300
Total	11,900

Production and Operating Costs in US $

Item	Units	Unit cost	Qty per/ day	Pdn Cost/ day	Pdn Cost/ month	Pdn Cost/ Year1
Direct costs3:
Feeds	Bags	2	0	0	608	7,296
Animal
Drugs	0	0	0	23	276
Other Feeds	0	0	0	42	504
Sub-total	840	8,076

General costs (Overheads)

Labour	400	4,800
Utilities	100	1,200
Administrative expenses	100	1,200
Depreciation (Asset write off) Expenses	496	5,950
Sub-total	1,096	13,150
Grand Total	1,936	21,226

Production is assumed for 365 days per year.
Depreciation assumes 2 year life of assets written off at 50% per year for all assets.

Project product Costs and Price Structure in US $

Item	Period	Out put	Unit Cost	Unit Price	TC	Total Revenue
Pigs	6mnth	195	109	150	21,226	29,250
Pigs	1 yr	360	59	160	21,226	57,600
TOTAL	86,850

Profitability Analysis Table

Profitability Item	Per day	Per Month	Per Year
Revenue	238	7,238	86,850
Less: Production and Operating Costs Profits	58	1,769 21,226
180	5,469	65,624

Sources of supply of equipment
All types of equipment and raw materials can be bought locally or online.

Market Analysis
The structure of the pig market is wide throughout the year in
butcheries as pork is popular among the public. There are several
pork joints in the city and upcountry making demand for pork high. There is a big export potential to export to other countries. 

Risk:
The animals are prone to diseases such as swine fever that needs
close monitoring by a Veterinary expert.