Pig Farming Business Plan Written by Ken
Pig Farming Business Plan Written by Ken
Pig Farming Business Plan Written by Ken
Business Name
Ifekentus Nigeria Limited (Best producer of the only meat to meet your need)
Description of My Business
Mission Statement: To ensure effective and efficient production and distribution of meat at
affordable prices.
Vision Statement: To provide top quality meat for healthy living of people all over the world.
My business is production and sales of pork and life pigs. I plan to establish a company that will
produce these pigs in commercial quantity and sell to my numerous customers.
We want to feed Nigeria with healthy meat and export to other countries. We will ensure that we
sell the highest number of pigs for pork in Nigeria and increase production every year in other to
satisfy our customers.
The most important thing in my business is hygiene and best practices in animal production.
Pig farmers, pig butchers, wholesalers, retailers, abattoirs, meat processing companies, food
packaging companies are my target customers.
My business is positioned to take advantage of growth trends in the industry.
My most important company strengths are measurement of life pigs weight, processing and
packaging of pork, none of my products are exposed for contamination, and best possible hygienic
measures are taken.
My company will succeed because we provide the most important basic need that is protein in
form of animal meat and our products are consumed daily by majority of Nigerians. Due to the
fact that the available meats are not enough and are not of the best hygienic standard, we will
provide quality meat and make profit.
With the experience, skills, and strengths of management team and workers to be employed, we
will ensure that this business grows to become a house hold name in Nigeria and a world class
company.
Pig butchers in Onitsha, Nnewi, Awka, Nkpor and Oba, Anambra State are our valued customers.
These customers buy pig from farmers in the state. It is our responsibility to locate and market our
products to them.
Local consumer of pork in Onitsha, Nnewi, Awka, Nkpor and Oba, Anambra State will be
encouraged through proper marketing technique using our point on purchase sales outlet. These
consumers buy pork in the market for consumption. Through proper marketing strategy, these
customers will be encouraged to buy our products.
Pig farmers in the state who need boar, piglets or sows are our targeted customers. They may
want to buy a boar, piglets or in- sows (pregnant pigs) for their farms. All pig farmers in the state
will be located and visited and how to sell products to them when they need them will be
strategized.
Wholesalers and retailers of pig in the state are our valued customers. They buy from farm and
resell to the butchers and consumers. They will be searched and located and their contact kept in
our record. They will be contacted when they need any product.
Public markets are places where our customers may want to come and buy our product. Sellers
of pork are also our targeted customers.
Abattoir and meat processing companies are our targeted market. Our product will be sold to
them for further processing.
Food processing and packaging companies like UAC foods and other food packaging
companies in the state, eateries, restaurants and hotels are also our targeted customers. These
companies will be encouraged to put pork in their menu, and will be sold to customers. A very
good marketing strategy will be employed.
Growth Trends in this Business
Comparative statistics puts Nigeria’s total meat production at more than 110 million metric
tons/year, resulting in a meat production index of 22g per caput per day (Ademosun, 2010). In
fact, the Food and Agricultural Organization of the United Nations (FAO) quarterly bulletin of
statistics reported that there is a greater output of meat from pigs (63.9 million metric tons/ year)
than the combined output of meat from cattle, buffalo, sheep and goats (58.9 million metric
tons/year) in Nigeria.
Local pig farmers hold greater percentage of the market share. When I start my business, I plan to
take more than 50% market share in the long run because I will employ the latest production
technique more than the local farmers. All the pig farmers are my targeted customers because of
the production technique in artificial insemination in pig production to be used. I plan to be a
major factor in the market.
Demand for meat has risen more than five-fold in the past 50 years in Nigeria, according to
the FAO. The FAO said that it believes that the rapid growth of developing economies
suggests meat consumption will continue to grow and outpace the growth of supply.
The growth trends on the market is seriously increasing rapidly and more consumers preferring to
eat pork because it is affordable and readily available upon increase production. However
products in the market are not packaged and I will take advantage of this. We will introduce
product packaging to increase product development.
The pig industry can be a very reliable one due to certain attributes of pigs and the Nigerian
production system. Pigs have a high survival rate and also have the ability to utilize a host of
agro- industrial bye – products and crop residues with little or no processing and minimal cost.
Pork is the most popular meat consumed in the world today and about 44% of the world meat
protein consumption is derived from pork and pork products (FAO, 2004).
Pricing Power
Pricing
My method of setting prices is based on weight of my life pigs and pork. For my business, my
pricing policy is higher than that of my competitors because I am starting. I will increase
quality of my products and use this to sell my products to my targeted customers. My price
will be fair and I will compete on quality.
My company will charge fifteen thousand naira for 100 kilogram of life pig. Our processed
one kilogram of pork will go for four hundred naira. Price is important in this market but my
customers mostly make their purchase decision on quality. This is my pricing power.
The Vision
Managing Ifekentus Nigeria Ltd has been a dream I have conceived for long and it is definitely a
profit making business (from market research) I have an undoubting zeal and passion for. My
days as an undergraduate, from 2006 till date, have given me the privilege to run and manage
Benco Pig Farm, a family pig farm. It has given me the needed technical experience. My training
in the National Youth Service Corps Millennium Development Goals War Against Poverty
(NYSC/MDGs WAP) program, 2011 on Animal Husbandry and Youth Enterprise with
Innovation in Nigeria (YouWin) on Business Management and Planning has given me the needed
basic skill and training on improved technology and entrepreneurial skill needed to run this
business successful and profitably and have the realism to make inevitable hard choices. With
continuous training and re- training on business skills and entrepreneurship, I will grow this
business to compete internationally and also extend my tentacle to other agro based enterprises.
The People
Work Experience
Organization Position Nature of Work Duration
Benco Pig Farm Manager Production 2006 till date
Special Training
Training in Venue Duration
Animal Husbandry at National National Youth Service Corps 11th October to 20th October,
Youth Service Corps Orientation Camp Kubwa 2011
/Millennium Development Abuja
Goals, War Against Poverty,
Agro Entrepreneurial Skill
Acquisition
Business Management and Metro Event Centre, 36, 1st 12th to 15th December, 2011
Planning by Youth Enterprise Ugbor Road, GRA, Benin City
with Innovation in Nigeria
(YouWin)
My days as an undergraduate from 2006 till date have given me the privilege to run and manage
Benco Pig Farm, a family pig farm. It has given me the needed technical production skills. The
table below shows list of required and acquired skill needed in my business.
COMMUNICATIONS
Computer and Communication Tools
I plan to take advantage of all the computer and communication tools presently available to
establish myself on the same level playing field as my large competitors. Following are the
tentative specifications and budget for this equipment.
Resource Requirements
Telephones
I plan to buy two (2) Nokia 1206 with Etisalat Elite World Sim, as my mobile operator
Budget for Telephone equipment
Telephones Quantity Unit Total (Naira)
Price(Naira)
Nokia 1202 2 3,500 7,000
Elite World 2 200 400
Etisalat Sim
Total 7,400
Computers
I plan to buy two (2) standard Dell laptops mini of 500GB of hard disk, 4GB ram, 3.0 GHz of
processor speed. I will also by 3 in 1 printer. The printer will print, photocopy and scan. Computer
tables will be bought for both the laptop and general work table in the administrative building.
Internet
I plan to buy two Etisalat modems with sims. Etisalat will be my internet providers.
ORGANIZATION
Business Organization
I plan to form a Private Limited Liability Company for my business. It is my intention to grow
Ifekentus Nigeria Ltd into a large firm with international standard and relationships. The initial
and ongoing cost of operating as private limited liability company will be a necessary business
expense. Also, since a properly run private limited liability company will afford me limited
liability, I feel this is the right form of business for me. I intend to depend on my attorney to
handle all aspects of setting up the limited liability company and maintaining proper company
records.
Management
I will manage the business on a day‐to‐day basis. My experience in managing my father’s pig
farm will be brought to this business. With my management team and me as managing director,
we will grow this business and provide jobs to many Nigerians. There is a plan for continuation of
the business if I am dead, or incapacitated. I can be replaced by the owners of this company.
Working hours will be from 8am to 4pm everyday from Monday to Friday except for security
agents who will work all day and night.
Personnel
• Number of employees: 8
• Type of labor (4 skilled, 4 unskilled, and 8 professional). They are owners of the Private
limited liability company. This is to encourage them to put in their best and ensure business
successes.
• I will employ young graduates. I will pay them very well. I will train them and increase
their salary.
• Quality of existing staff is high. This is because I will ensure that best hands are
employed.
• Pay structure: I will pay twenty thousand to young youths who are unemployed when
starting the business. This salary structure will increase after one year to a standard compared to
the one paid by good companies. I believe in paying my workers well so that they are
motivated.
• Training methods and requirements. My workers will be trained. The cost will be the cost
of doing business.
• The job descriptions for employees will be drafted.
Organizational chart
Managing
Director
Professional
Consultants
Laborer 1 Security 1
Laborer 2 Security 2
Professional and Advisory Support
These risks are covered when I have satisfied such conditions relating to good animal husbandry
which I plan to achieve.
Cost of Insurance cover.
The cost of the insurance cover is 7.5% of the insured amount. I plan to budget N750, 000 if I
receive N10, 000, 000 grants from YOUWIN. I plan to pay this to an agricultural insurance
company, Nigerian Agricultural Insurance Corporation in Anambra State. I will depend on my
insurance agent to give me expert advice and take up all insurance covers for my business.
PREMISES
Location Criteria
My location is important to my customers. This is because it will reduce the cost of transportation.
It is located along a Federal Government road, Onitsha Owere road. It will help transportation
because my customers will purchase life pigs with trailers and long vehicles. This location is not
close to residential areas in the town. This will also help us to transport our raw materials and
feeds from agro based companies in the state.
This is to prevent residents from complaining of the noise of the animals.
This location is good for expansion because there is vast area of land available.
When customers come to my location, it is convenient for parking.
It is competitively located. There are two nearby pig farms in the area. This is good because they
are also my target customers and we can co-operate. The location is very close to my market and
also very close to my raw material especially agro based industries.
Space requirements
• Amount of space: Three plots of land are enough for a start. This space will house fifty
pens of 10 by 10 feet built strategically. This will also house my administrative building. The
space can house at least five hundred pigs conveniently.
• Type of building: I plan to build low cost housing that will last for a long time. This is
because I don’t want to tie a lot of capital to land and building. However this is important
considering the location criteria for the business. The cost of land and construction of building is
provided in the cost analysis.
• Power and other utilities: Power and water bole hole are required. The cost of sinking bore
hole and that of power are adequately considered.
Accounting
(Upload Starting balance sheet and projected income statement for the next 6 month to 1 year)
Analysis of cost
(What are all my cost, fixed, variable, product, delivery etc)
ESTIMATE COST OF BUILDING FIFTY PENS (FIXED COST)
1. To build ten pens, one can use about one tipper load of stone for floor concrete, N 24,000
2. For 10 by 10 size of pen, one pen will gulp two bags of cement for floor concrete. Cost of
2 bags of cement at N3, 600. Plaster of one pen will take one bag of cement at N 1, 800.
Workmanship N2, 500
3. For ten pens to be built, it will take 30 bags of cement at N1, 800 each at N 54, 000 and
for workmanship of the ten pens it would cost N25, 000
4. Block for the ten pens. To build tens pens, it will gulp 1, 600 blocks which at 40 blocks
per one bag of cement. It will cost 40 bags of cement. At N1, 800 a bag, it would cost
N75, 000
5. The amount of sand to be used for molding of the 1, 600 blocks, will be at least 10 tippers
of sand and the cost of one tipper load sand is N6, 000 each. So 10 tipper will cost N60,
000
6. Cost of molding the ten tippers of sand with the 40 bags of cement is N400 per bag of
cement the workmanship cost N16, 000
7. To lay the 1600 block by the bricklayers will be 4 days job of a bricklayers will be 4 days
job of a bricklayer with a serving job man, cost of a day work for a brick layer N 2, 500.
For the 4 days cost of bricklayer is N10, 000 then the serving job man N1, 500 a day,
costing N6, 000 for the 4 days. The total cost of the labor is N16, 000
8. The roofing of the ten pens. The roof will use 10 bundles of zinc which cost N10, 000
each. So ten bundles will cost N100, 000.
9. Wood for roofing of the ten pens is 100 pieces of 2 × 2 wood at N200 each. Total cost
N20, 000. 30 pieces of 2 × 4 wood cost N300 each total cost N9, 000. 20 pieces of 3 × 4
wood for wall plate cost N600 each total N12, 000. Nail and other miscellaneous cost N
10, 000. Workmanship for the roofing N12, 000. Total cost of the roofing cost N75, 000
10. Total overhead cost of ten pens is N412, 000
11. Total cost of building fifty pens will be N412, 000 × 5 = N2, 060, 000
12. Estimated cost of building two offices for administrative building is N1, 000, 000
13. Total cost of building is N2, 060, 000 + 1, 000, 000 = N3, 060, 000
4. Packer 20 20 400
FINANCING
Financing Strategy
(Upload a chart or spreadsheet showing all of the sources of your startup capital)
(Upload a cash flow projection and projected income statements to show sources of repayment of
loan, if applicable)
Explain any government assistance or loan guarantee program you intend to apply for
I intent to apply for National Youth Service Corps Millennium Development Goals War Against
Poverty Loan. With my owners equity of two hundred and fifty thousand naira (N250, 000), and
the two hundred and fifty thousand naira loan (N250, 000), I intend to raise five hundred thousand
naira (N500, 000) to start my business.
List your sources of referrals to lending institutions (your accountant etc)
1. My board of directors: Production Manager, Marketing Manager and Administrative Manager.
2. My management advisory board: Mr Sylvester Efosa and Mr Kenechi Nwogwugwu, Jane
Njimogu Ukamaka.
3. My Attorney, Barrister Emmen Udifia
4. My chartered Accountant: Mr Jimmy Akpan.
5. My insurance agent: Mr Essua of Essua Nigeria Agencies, opposite Itam Main Park Itu.
6. My Consultant: Dr. E. O Izegaegbe
7. My mentor and key advisor: Mr Benjamin Nwogwugwu
E-COMMERCE
E – Commerce Plans
A website focusing on business – to – business E- commerce will be an important tool in my
overall marketing program. I plan to build and install the www.ifekentusng.com website, which I
plan to register. This will permit my marketing and sales department store customers to have
access to my products and to order (and reorder) merchandise via this website. I plan to hire Mr
Oshin Oluwole Omotolani of Brandforte consulting company (www.brandparcel.com) to design,
install and maintain this site.
This site will help my company succeed by increasing revenue, reaching new customers, creating
web presence and helping to drive traffic to my site by linking our social media networking that
my customers may visit like linkin and facebook etc.
The features of the www.ifekentusng.com will include:
It will be easy to use with good navigational features and prompt loading.
The site will provide useful content including detailed information about all items in product line.
Purchasing procedures on a business to business basis will be designed and implemented.
I intend to use this site to generate feedback to help improve every aspect of my products,
operation and business procedures.
E – Commerce Budgeting
The budget for design, implementation and start- up of the E-Commerce site will be twenty
thousand naira (N20, 000)
This is based on a firm contract with my Brandforte consulting company. The estimated monthly
maintenance cost to support the site will be free. I will use the free hosting and maintenance site
initially for the first year.
E – Commerce Competition
The use of E-Commerce presence or websites is not common in my industry. It is an important
marketing tool that my competitors are not using. It is my intention to maintain a website that will
project the image of fresh and dynamic products to my customers. I plan to keep abreast of the
website developments of my competitors and to constantly improve my site.
ACQUISITIONS
Due Diligence Procedures for Acquisitions
I may have opportunities to acquire businesses in the future. In order to position myself to
investigate acquisitions intelligently, following “due diligence” process will be adhered to.
I will use a team of experts to give advice on the various components of the acquisition:
1. My Attorney
2. My Accountant
3. My Banker
4. My Broker
When these innovative marketing tactics are employed and the customer show interest to buy, the
sales manager will sell to the customers directly. The customers will come to the farm to purchase
live pigs. If customers want us to deliver the live pigs, transportation charges will be included. For
processed products, it will be delivered to the customer. Sales agent will be employed to sell and
distribute the product in the state.
Training Policies
All my workers will be given an assistance to go for masters, further training in their fields
because they are mostly young graduates. My company will train them on a regular basis
because it is better to work with an expert and pay more than to work with a novice and pay
less and he or she will damage my business. Fresh graduate in veterinary medicine, animal
science, food science, butchering, sale and marketing will be employed and further trained at a
minimal cost.
Initially only my marketing and sales manager will handle sale to customers. As my business
expands, I intend to employ more marketers to begin marketing to smaller retailer, hotels,
farmers etc. I will hire sales associates who can gain the confidence of my customers. To achieve
these qualities, I will look for the following characteristics in marketing employee. People who:
Like what they do
Are quick learners
Project a pleasant and positive image
Like people and relate well to them
Are helpful to customers and follow associates
Are ambitious and seek to grow in responsibilities
The competition
List of competitors and their address
S/N Competitors Address
1 Benco Farm Isu Umuezedim, Oba, Anambra.
2 Mrs Eze Piggery and Poultry Farm Aboji, Oba, Anambra.
3 Bro Emma Anodiadi Piggery Farm Aboji, Oba, Anambra.
4 Francis Emone Piggery Farm Umuogali, Oba, Anambra.
5 Alexander Obi Piggery Farm Aboji, Oba, Anambra.
6 Chief F. M Nwosu Piggery Farm Urueze, Oba, Anambra.
7 Festus Oragi Piggery Farm Umunnakwa, Oba, Anambra.
8 Samuel Nbielu Piggery Farm Isu Umuezedim, Oba, Anambra.
9 Ifeanyi Onwutalu Piggery Farm Isu Umuezedim, Oba, Anambra.
10 Edwin Obi Piggery Farm Umuogali, New Road, Oba,
Anambra.
11 Mrs Nwajuaku Piggery Farm Umokokpa, Oba, Anambra.
12 Panock Piggery and Poultry Farm Ltd Oba junction, Anambra
13 Nwaeke Abu Nwa Piggery Farm Ukpono, Oba, Anambra
14 Emeka Udeaja Piggery Farm Ichi, Anambra
15 Kinsly Ikegbunam Piggery Farm Umuogali, Oba, Anambra
16 Micheal Chukwudozie Piggery Farm Aboji, Oba, Anambra
17 Okey Nnaemeka Piggery Farm Umuokokpa, Oba, Anambra
18 Emenike Osigwe Piggery Farm Abime, Oba, Anambra
19 Innocent Nnoruka Piggery Farm Ojoto, Anambra.
20 Godwin Etoniru Piggery Farm Isu Ebi, Oba, Anambra.
21 Cliford Piggery Farm Isu Umuabu, Anambra.
22 Mrs Theresa Uwaezuoke Piggery Farm Ojoto, Anambra.
23 Jame Ibeneme Piggery Farm Urueze, Oba, Anambra
24 Solomon Ekene Piggery Farm Isu Ebi, Oba, Anambra
25 Okey Iwuchukwu Piggery Farm Aboji, Oba, Anambra.
My principal competitor is Panock Piggery and Poultry Farm Ltd. I listed all major competitors in
this business and their contact address. Other competitors are farmers of cattle, sheep, goat, fish
and chicken. They have the same or equivalent product provided to the market.
We produce Higher cost They produce in They may not Our customers like
Reliability in high of keeping small satisfy their us because we meet
quantity. inventory. quantity(Local customers. their need.
farmers)
Stability and - - They like stability
Stability continuity.
Experts are They employ They employ low Quality products are
Expertise employed low quality quality labor. patronized by
labor. customers
Will build - - - Customer like trust
Company customer and will patronize us
Reputation trust and
reputation
Close to the Are located in Are located in Lesser cost for our
Location road and places close to places close to customers to reach
market, easy residential areas residential areas us.
access to
feed
Good Produce Pigs Produce Pigs that Quality sells itself to
Appearance looking that may not be may not be of our customers. They
products of higher quality higher quality like good looking
(pigs) standard standard pigs.
GROWTH PROGRAM
Expansion
Once my business has been established I plan to implement the following growth strategy. I
anticipate it will take approximately five years to gain sufficient experience and level of profits
before any expansion plans are implemented.
My growth strategy will be guided by the following:
I will not set an inflexible timetable for expansion but will wait until a sound basis of experience,
earnings and cash flow is achieved.
Accounting and cash flow controls will be in place with profit and loss statements prepared for
expansion on a six monthly basis.
Internal controls for accounting, money handling and inventory will be in place.
My attorney will review all documentation regarding expansion. This will include leases,
employment and incentive agreements, licensing, important commitments customers, etc
Hiring and training policies will be in place. Fringe benefit plans will be in place
My intention is to delegate authority and responsibility to expansion management personnel with
the following conditions in place.
1. Managers will be motivated by a profit incentive plan which will be tied to manager’s
individual success. My plan will be in writing, simply stated and call for frequent periods of
accountability.
2. Capital allocations and signing checks will not be delegated.
My policy in handling problem or risks identified above will be to identify and acknowledge
problems promptly and honestly. I plan to put the following policies into effect promptly if and
when the following adverse scenarios emerge during my growth program.
The risk of running out of cash: I plan to maintain very frequent monthly cash flow projections.
Forecasts for income, expenses and unanticipated contingencies will be stated conservatively.
Any period of cash deficits will be remedies promptly by cutting cost to maintain a positive cash
flow and profitability.
Disease outbreak will be handled by the veterinary doctor and appropriate action taken to prevent
further outbreak and loss. Death and other related issues will be handled seriously.
A drop in sales or insufficient sales:
1. I will be prepared to take prompt remedial steps by cutting costs.
2. I will improve every aspect of product value, performance and image
3. I will seek out new ways to expand sales
4. I plan to stick with this specialized business that I know best unless fatally defective
Dishonestly, theft, shrinkage: I intend to implement the same policies that have been proven by
Panock Piggery and Poultry Farm, one of my biggest competitors.
Business recessions: I am prepared to promptly cut costs to maintain liquidity. I will also be on
the lookout for good business opportunity during periods of adversity.
On 25% reduction of sales, I plan to increase cost on advertising to increase sales but
maintain cost of production due to increase number of pigs in the farm.
Contingency Plans
I plan to start this business with my two hundred and fifty thousand naira now. How to start with
this sum of money is the training I received in Abuja. I plan to start small now if I don’t win and
grow big tomorrow.
Employment Impact