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 drugs. 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 | 58 | 1,769 | 21,226 |
| Profits | 180 | 5,469 | 65,624 |
Sources of supply of equipments
All equipments and raw materials can be got in Uganda.
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.
Risk:
The animals are prone to diseases such as swine fever that need close monitoring by a Veterinary expert.
