Piggery business plan in nigeria

Produced by

Chuma.ND.OK.

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TABLE OF CONTENTS PAGE
Cover page 1
Table of contents 2
1.0 Enterprise Objective and Justification 4
2.0 Project Description 5
3.0 Agri-business Product/Service Mix 6
4.0 Targeted Market for the Enterprise Product(s) 7
Table 1: Market segmentation and distribution of revenue 7
5.0 Financial Plan 8
Table 2a Checklist of Items/Cost 8
Table 3a Revenue and Cost Table 9
Table 3b Asset Register 10
Table 4 Cash Flow Projection (for 3 years) 11
Table 5 Financial analysis 10
7.0 Risk Assessment and Mitigation measures 10
Table 6a Risk Management and mitigation measure 11
Table 6b Implementation plan 12
Table 7 Environmental and Social Plan 13

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1.0 ENTERPRISE OBJECTIVE AND JUSTIFICATION:
1.1 Overall Objectives
Production of pig in No 7a Okoye street co-operative housing abakpa Nike
Enugu with the view of reducing malnutrition, unemployment and cost of
pork meat.

1.2 Specific Objectives

 To produce 300 pigs per annun and sales of 285 pigs,
 To create at least 5 job opportunities for 10 people,
 To reduce the prevalency of disease caused by lack of protein,
minerals and vitamins down to 2%.
 To generate net profit of N2,209,795

1.3 BUSINESS JUSTIFICATION

The basic raw materials which includes constant water supply, nearness to
breweries, palm oil processing company, and in our host community pig
feed will be produced locally with more protein contents. One skilled labour
will be employed to work as farm manager. The uniqueness of my product
is to produce pig with high protein, vitamins and mineral content. Our
market will be basically on hospitality industries, household, local market
and processors.
The fat in pork is Tran-fat free and mostly mono-and poly-unsaturated, so
trimmed pork is suitable for even cholesterol-lowering or healthy heart
diets. Pork has a high mineral content of Phosphorus, Selenium, Sodium,
Zinc, Potassium and Copper. The two minerals which are present in good
quantities are Iron and Magnesium, while Calcium and Manganese are
found in traces only. Pork is highly enriched with Vitamin B6, Vitamin B12,
Thiamin, Niacin, Riboflavin and Pantothenic Acid. Some quantities of

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 Vitamin A and Vitamin E are found in very small amounts. Calorific value of
Pork is 458.0 per 100gm.

2.0 BUSINESS DESCRIPTION

The proposed enterprise targets to purchase about 150 piglets and sell 285
pigs per annum [with 5% loss].
This can be achieved in 2 cycles per annum. Under this business enterprise,
value will be added to piggery farms and the quality of the pork meat will
be improved. The enterprise is expected to cost is ₦9,800,000.00. This
amount will be used to purchase all the materials listed on the checklist
table.

3.0 AGRI-BUSINESS PRODUCTION/SERVICE MIX

The process involved in the implementation of production of pig includes:
 Stocking
 Feeding
 Separating
 Cleaning of pig house
 Mating
 Delivering
 Winning
 Separating
 Sales of matured one/piglet

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4.0 MARKET DESCRIPTION/ASSESSMENT
The main marketing strategies for the enterprise are as tabulated below;
Table 1: Market Segmentation And Distribution Of Revenue
SEGMENT VOLUME PERCENTAGE PRICE/KG SALES
DISTRIBUTION (₦) (₦)

Marketers 100 35% 45,000 4,500,000

Hospitality 55 19.3% 45,000 2,475,000
HouseHold 30 10.7% 45,000 1,350,000
processors 100 35% 45,000 4,500,000
Total 285 100% 12,825,000

From the table above, After the first year I realised total sales of ₦12,825,000.
Our major market is the marketers, processors and the hospitality industries,
while we try to increase home sales to reduce retail cost.

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5.0 FINANCIAL PLAN
5.1 Checklist of items required for startup
TABLE 2a: Checklist Of Items/Cost Required By Beneficiary

S/N ITEMS UNIT QTY UNIT PRICE TOTAL COST

1 PURCHASING OF LAND/FENCING 100 BY 100 1 3,000,000 2,957,500
FT
2 CONSTRUCTION OF PIG HOUSE 40 BY 40 FT 4 500,000 2,000,000

3 GEEPEE TANK 4000 LITERS 4 80,000 320,000

4 DIGGING WELL 60FT 1 80,000 80,000
5 PUMPING MACHINE 2.5HP 1 60,000 60,000
6 PIGLET LUMP 150 10,000 1,500,000
7 FEED BARLEY 500 TONS 1000/TON 500,000
8 FEED PKC 10 TONS 120,000/TON 1,200,000
9 MEDICATION(5%OF FEED) LUMP 85,000
10 INSURANCE(2.5% OF PIGLET COST) LUMP 37,500
11 GENERATOR 15KVA 1 230,000 230,000
12 TRANSPORT NO 1 60,000 60,000
13 PROPRIETOR MONTH 12 18,000 216,000
14 MANAGER MONTH 12 18,000 216,000
15 UTILITY MONTH 12 10,000 120,000
16 LABOUR MONTH 10 4,000 40,000
17 SAFETY BOOT NO 5 5,000 25,000
18 FUEL LITRE 200 145 29,000
19 WAIGHING SCALE NO 1 24,000 24,000
20 TANK STAND NO 2 50,000 100,000
TOTAL 9,800,000

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5.2 Revenue and Cost Stream Of The Enterprise
Table 3a: Revenue and Cost Stream Of The Enterprise
ITEMS UNIT QUANTITY UNIT PRICE/ VALUE
COST(₦) (₦)
REVENUE (INCOME)

Sales of pig No 285 45,000 12,825,000

Sales of manure bag 600 200 120,000
TOTAL REVENUE (A) 12,945,000
VARIABLE COST (INPUTS)
Piglet NO 300 10,000 3,000,000
Feed (brewery waste) Ton 1000 1000 1,000,000
Feed (PKC) Ton 20 120,000 2,400,000
medication (5% of feed) 170,0000
Fuel Litre 200 145 29,000
Labour Months 10 4,000 40,000
Insurance (2.5% of piglet) 75,000
TOTAL VARIABLE COST (B) 6,714,000
GROSS PROFIT(A-B) 6,231,000
FIXED COST(OVER HEAD) (C)
Safety boot No 5 5,000 25,000
Proprietor salary Months 12 18,000 216,000
Manager Salary Months 12 18,000 216,000
Utility Months 12 10,000 120,000
Transport 60,000
Land 1 2,957,500 2,957,500

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 TOTAL FIXED 3,594,500
COST(OVERHEAD)
Depreciation (D) 310,400
TOTAL FIXED COST (C + D = E) 3,904,900
TOTAL COST (B + E = F) 10,618,900
OPERATING PROFIT (A-F) 2,326,100
TAX(5% profit) 116,305
NET PROFIT 2,209,795

Assets Registered
Table 3b: Assets Registered (To calculate depreciation)
S/N DESCRIPTION OF QUANTITY VALUE(₦) LIFESPAN DEPRECIATION
ASSETS
Year 1 Year 2 Year 3

1 Pig house 4 2,000,000 10 years 200,000 200,000 200,000

2 Tank 4 320,000 10yeras 32,000 32,000 32,000

3 well 1 80,000 10 years 8,000 8,000 8,000

4 Pumping machine 1 60,000 5 years 12,000 12,000 12,000

5 Generator 1 230,000 5 years 46,000 46,000 46,000

6 Weighing scale 1 24,000 10 years 2,400 2,400 2,400

7 Tank stand 2 100,000 10 years 10,000 10,000 10,000

TOTAL 2,814,000 310,400 310,400 310,400

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 Table 4: Cash Flow Projection

S/NO DESCRIPTION YEAR 1 YEAR 2 (5%) YEAR 3(10%)

INFLOW
CADP grant 9,800,000
Sales 12,825,000 13,466,250 14,139,562.5
Other revenue 120,000 126,000 132,300
Re-investment 3,849,000 4,956,330
TOTAL INLOW (A) 22,745,000 17,441,250 19,228,192.5
OUT FLOW
Total variable cost 6,714,000 7,049,700 7,402,195
Fixed cost (overhead) 3,594,500 3,774,225 3,962,936.25
Value of Fixed assets 2,814,000
TOTAL OUT FLOW(B) 13,122,500 10,823,925 11,365,131.2
NET CASH FLOW (C= A-B+F) 9,622,500 12,390,825 15,297,556.3
CASH BROUGHT FORWARD 5,773,500 7,434,495
RE-INVESTMENT(40%OF 3,849,000 4,956,330 6,119,022.52
C)=D
CASH CARRIED DOWN 5,773,500 7,434,495 9,178,533.78
(C-D) = F

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 FINANCIAL ANALYSIS
Table 5: Financial Analysis
1 2 3 4 5 6 7
YR TOTAL COSTS REVENUE PROFIT DISCOUNT NET PRESENT DISCOUNTED DISCOUNTED
(SALES) (2-1) FACTOR VALUE COST REVENUE
(25%) (3*4) (1*4) (2*4)
1 10,618,900 12,945,000 2,326,100 0.80 1,860,880 8,495,120 10,356,000

2 11,134,325 13,592,250 2,457,925 0.64 1,573,072 7126,968 8,699,040

3 11,675,531.2 14,271,862.5 2,596,331.3 0.51 1,324,128.96 5,954,520.91 7278,649.88

4,758,080.96 21,576,608.91 26,333,689.9

𝑇𝑜𝑡𝑎𝑙 𝑑𝑖𝑠𝑐𝑜𝑢𝑛𝑡𝑒𝑑 𝑅𝑒𝑣𝑒𝑛𝑢𝑒

BENEFIT COST RATIO =
𝑇𝑜𝑡𝑎𝑙 𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡𝑒𝑑 𝐶𝑜𝑠𝑡

=1.22
NPV = 4,758,080.96

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 Table 6a: Implementation Plan

S/ WORK JAN FEB MAR APR MAY JUN JULY AUG SEPT OCT NOV DEC
N DESCRIPT
ION
1 Receipt of
approval

(wp) no
objection

2 Receipt of
quaotations
from service
providers/ev 
aluation and
ward of
contract

3 Buying and
Site clearing


4 Construction
of pig house


5 Procurement
of equipment


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6 Procurement
of feed

7 Procurement
of piglet

8 Feeding/
Medication

        

9 separation

        

10 Mating

        

11 Delivering

     

12 Winning
 

7.0 RISK ASSESMENT AND MITIGATION MEASURES

It is envisaged that expecations in some areas may not be realised due to inherent risks
associated with the business in the farm. Some of this risks are:

RISK ASSESSMENT CAUSES IMPACT MITIGATION MEASURES

Disease Poor managment High mortality Giving appropriate drug.
outbreak Procurement of good
Bad Feed Stunted Growth Feed from good Vendor
Theft Insecurity Loss of pig security

Collapse of building Sub-standard Loss of pig and Proper construction with

materials building good materials

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Predators Wide animals pig Good security door should
be provided
Table 6b: risk management and mitigation measures

TABLE 7:Environmental And Social Safeguard Plan

Environmenta proposed Monitoring Responsibility Shedule

l and social MITIGATION
impact measures
identified

Disease Regular Enterpreneur Enterpreneur, Every week

Outbreak cleaning. farm worker.
Procurement of
good feed

Theft Tight Enterpreneur Enterpreneur, Daily

security/fencing farm worker.
.

Collapse of Standard Enterpreneur Relevant Yearly

building material facilitator,enter
preneur

Cannibalism Proper feeding Enterpreneur Enterpreneur, Daily

shedule farm worker.

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