FEDERAL UNIVERSITY OF AGRICULTURE, ABEOKUTA

Alabata Abeokuta, Ogun State.

BUSINESS PROPOSAL TO ESTABLISH (450) PIGGERY FARM

FOR A PRODUCTION CYCLE.

COURSE CODE: CVE 509

COURSE TITLE: ENGINEERING ENTERPRENEURSHIP II

SUBMITTED BY: AGRICULTURAL AND BIORESOURCES

ENGINEERING STUDENTS (GROUP A)
NAMES OF STUDENTS

ADEGBOYEGA OLUWAYINKA AYODEJI 20181537

ADEGOKE ADEOLUWA AL-AMEEN 20181538
ADETUKASI TIMOTHY ADEDEJI 20181539
ADEYEMI MUBARAQ ABAYOMI 20181540
ADEYINKA NATHANAEL ADEDOKUN 20181541
ADIMULA OLAYEMI MERCY 20181542
AFOLABI JOHNBELOVED TEMILOLUWA 20181543
AFOLABI OLALEKAN IYANUOLUWA 20181544
AJAYI BABAJIDE MIRACLE 20181545
AKINGBADE OLUWAFEMI ENIOLA 20181546
ALI-SANNI BABATUNDE NOAH 20181548

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 TABLE OF CONTENTS

1.0. EXECUTIVE SUMMARY …………………………………………………………...4

2.0. INTRODUCTION …………………………………………………………………….5
2.1. Mission statement ……………………………………………………………..5
2.2. Vision statement ………………………………………………………………5
2.3.Key success factor……………………………………………………………..6
2.4. Advantages of Pig farming ………………………………………………........6
2.5. Product ………………………………………………………………………...6
3.0. OBJECTIVES …………………………………………………………………………7
4.0. PROFIT ANALYSIS OF PIGGERY AND PORK PRODUCTION ………………….8
5.0. TECHNICAL ANALYSIS …………………………………………………………….9
6.0. MARKETING PLAN …………………………………………………………………10
7.0. MANAGEMENT PLAN ………………………………………………………….…...11
7.1. Chief Operating Officer ……………………………………………………......11
7.2. General Farm Manager ………………………………………………………...11
7.3. Administrator/Accountant ……………………………………………………...12
7.4. Piggery Manager/ Supervisor …………………………………………………..12
7.5. Sales and Marketing Officer ……………………………………………………12
7.6. Field Worker/Contract staff …………………………………………………….12
7.7. Client Service Executive ……..………………………………………………..13
8.0. FINANCIAL PLAN ……………………………..…………………………………….13
8.1. Initial Capital Outlay ………………….………………………………………14
8.2. Operating Cost ………………………………………………………………..14
9.0. CONCLUSION ……………………………………………………………………….15

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1.0. EXECUTIVE SUMMARY

Starting a piggery farm can be a rewarding and profitable business, but it requires careful
planning, research, and consideration of various factors. Here are some things to consider when
creating a business proposal for a piggery farm:
Market demand: The demand of pork in Nigeria has been carefully analysed for parties. Also,
extraction of other useful materials in pigs.
Location: The location of the farm is chosen carefully and easily accessible, has a reliable water
source, and in an area with a suitable climate for pig farming.
Infrastructure: The farm has adequate housing, feeding, and watering facilities for the pigs. The
size and layout of the buildings, as well as the materials and equipment are carefully considered.
Labor: The farm will be run by a team. 60 workers will be needed to care for the pigs and manage
the farm.
Capital: The total cost of establishing the farm, including land, buildings, equipment, and
working capital is ₦15 000 000. The farm be financed by loans from banks.
Production cycle: The production cycle from birth to maturity is one year. The expected growth
rate of the pigs and the expected yield of pork per pig is 12%.
Marketing: The pork will be sold to the local markets, supermarkets, and or exported.
By considering these factors and creating such a detailed business plan like this, there will be
increase in the chances of success for the piggery farm.

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2.0. INTRODUCTION
2.1. MISSION STATEMENT

To ensure effective and efficient production and distribution of meat at affordable prices.

2.2. VISION STATEMENT

To provide top quality meat (pork) for healthy living of people. Our business is production and
sales of pork and life pigs. We plan to establish a company that will produce these pigs in
commercial quantity and sell to 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 our business is hygiene and best practices in animal production. Pig farmers,
pig butchers, wholesalers, retailers, abattoirs, meat processing companies, food packaging
companies are our target customers. Our business is positioned to take advantage of growth
trends in the industry. Our most important company strengths are measurement of life pigs
weight, processing and packaging of pork, none of our products are exposed for contamination,
and best possible hygienic measures are taken. Our company will succeed because we provide
the most important basic need that is protein inform 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.

2.3. Key success factor

i. We will make sure the pigs housing are convenient which can help them to grow better
ii. We have a nutrient rich feeding formula to provide good and well-balanced feed to our
stock resulting in fast growth.
iii. We’ll constantly keep close checks on our swine ensuring disease control measure,
thereby reducing cost of medication for fighting diseases. By ensuring proper health
checks our herds would be healthy and able to use up nutrients for growth.
iv. We will avoid inbreeding and ensure we select best boars and sows for breeding, by
employing this breeding practice we are guaranteed good success.
v. Push to expand production, so as to enjoy more flexibility with economies of scale for
production at lesser cost.

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2.4. Advantages of pig farming
i. They have the potential to be highly prolific. Pigs are able to produce in large litters after
a relatively short gestation period.
ii. Pigs are able to produce more meat per ton of live weight of breeding females amounting
up to six times more than that of cattle.
iii. Pork has a longer shelf life than most fresh meat, easy to process into different form of
meat products making it very suitable to be sold or distributed to a wider section of the
population.
iv. Pigs have high feed efficiency; they can effectively and efficiently convert feed into meet
much more than any other domesticated ruminant animals.
v. In comparison with cattle, pigs are more lucrative in investment they bring about fast
turn-over and profit recouping.
2.5. PRODUCTS

Pig meat (Pork) is marketed in the form of:

Fresh meat – This is the most important product in the tropics in general, as processing facilities
are limited. Pig destined for the fresh meat trade are usually slaughtered at younger ages and
lower weights (porkers) than those used for processing.

 Offals – edible and palatable

 Lard (pig fat) – Sold as product for human feed, animal feed or soap production.
 Bristles – These can be used for brushes and are in special demand for shaving and paint
brushes.
 Intestines – these are usually used for sausage casings.
 Blood – This is collected separately and processed into sausages and other delicacies for
those who consumed it.
 Pig skin – Pig skin can be made into valuable leather.
 By-products – Bones, blood and inedible meat tissue is converted into animal feeds.
 Hoofs – These are used for gelatin and glue products.
 Cost of set-up and equipment needed for Piggery Farm

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3.0. OBJECTIVES

The following are the objectives of starting the piggery business:

1. To be the one-stop-shop for high quality pig farm/pork products.

2. To achieve our sales growth target quarterly and at the end of the fiscal year.
3. To achieve profit in the first year and increase the margin in subsequent years.
4. To exceed customer’s expectations by providing quality sales services and product at an
optimum price.

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4.0. PROFIT ANALYSIS OF PIGGERY AND PORK PRODUCTION BUSINESS
PLAN IN NIGERIA

As expected feeding takes most of the spending which could be three over four of the cost of
raising one pig. As a wise business man should pig farming is profitable by comparing the pork
price (pig meat) and cost of production. The pig is expected to achieve a 50kg of weight

Total cost of production per pig = total cost of feed + other operational costs

Where cost of feeding for 1 year = N 910 800.00

Resultant pork (at least 80% of 50kg) = 35kg would be realized per pig

Cost price per kg of pig (910 800 ÷ 35) = N 26 022.86 per kg

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5.0. TECHNICAL PLAN
This is a list of expenses for which I will require either start-up capital or financing. These items
include buying pigs, feeds, getting a computer (communication), equipment and fixtures, travel
expenses and start-up overhead expenses. These expenses are included in my monthly cash
flow projection to indicate the ongoing requirements for cash.

List of all expenses into cash flow projection/ year Cost (N)

1. Pig Feed 910 800.00

2. Salaries 1 440 000.00
3. Treatment and Drugs 22 950.00
4. Water bole hole 650 000.00
5. Legal Company registration 3 000.00
6. Repairs and Maintenance 97 100.00
7. Administrative cost 60 000.00
8. Advertising 78 000.00
9. Telephone 55 030.00
10. Communication 250 900.00
11. Land 2 100 000.00
12. Building 3 060 000.00
13. Farm Implements 112 400.00
14. Piglets 1 100 000.00
15. Equipment 5 000 000.00
16. Insurance 750 000.00
17. Utilities 200 000.00
18. E- Commerce 20 000.00
TOTAL 15 910 180.00

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6.0. MARKETING PLAN

We plan to use the following marketing tactics

1. Personal contact and letters to butchers, pig farmers, wholesalers, retailers, abattoir and
restaurants, hotels and food packaging companies in the major cities.
2. Product packaging by selling my packaged pork and live pigs will be used. This is an added
advantage as most meat is exposed without being packaged.
3. Point- of-purchase display and sales outlet will be used.
4. Relationship marketing to pig farmer, and other customers will be employed. This is
maintaining relationship and communication. I will visit them; send texts messages on special
days in their life in other to maintain relationship.
5. Free samples to food packing companies and restaurant will be used to increase customer
interest. This is for our processed product.
6. Publicity for increase awareness of huge benefit of pork consumption and using the medium
to advertise our product will be used.
7. Billboards as part of publicity and increasing awareness of our product will be used.
8. Our product will be weighed and sold on scale with increase customer services.
9. Our price will be fair, correct price for the value of our product.
10. My marketing and sales manager will personally be responsible for the contacts with the
appropriate buyers.

When these innovative marketing tactics are employed and the customers 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

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7.0. MANAGEMENT PLAN

7.1. Chief Operating Officer:

 Increases management’s effectiveness by recruiting, selecting, orienting, training,

coaching, counseling, and disciplining managers; communicating values, strategies, and
objectives; assigning accountabilities; planning, monitoring, and appraising job results;
developing incentives; developing a climate for offering information and opinions;
providing educational opportunities.
 Responsible for providing direction for the business
 Creates, communicates, and implements the organization’s vision, mission, and overall
direction – i.e. leading the development and implementation of the overall organization’s
strategy.
 Responsible for signing checks and documents on behalf of the company
 Evaluates the success of the organization

7.2. General Farm Manager

 Responsible for the planning, management and coordinating all farm activities across the
various sections on behalf of the organization
 Supervises other section manager
 Ensures compliance during project executions
 Provides advice on the management of farming activities across all section
 Responsible for carrying out risk assessment
 Using IT systems and software to keep track of people and progress of the growth of
crops, fishes, birds and animals
 Responsible for overseeing the accounting, costing and sale of farm produce after harvest
 Represents the organization’s interest at various stakeholders meetings
 Ensures that farming goals desired result are achieved, the most efficient resources
(manpower, equipment, tools and chemicals et al) are utilized and different interests
involved are satisfied. Responsible for preparing financial reports, budgets, and financial
statements for the organization
 Responsible for overseeing the smooth running of HR and administrative tasks for the
organization
 Defines job positions for recruitment and managing interviewing process
 Carries out staff induction for new team members

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 Responsible for training, evaluation and assessment of employees
 Oversees the smooth running of the daily farming activities across the various farming
sections.

7.3. Administrator / Accountant

 Responsible for overseeing the smooth running of HR and administrative tasks for the
organization
 Defines job positions for recruitment and managing interviewing process
 Carries out staff induction for new team members
 Responsible for training, evaluation and assessment of employees
 Responsible for preparing financial reports, budgets, and financial statements for the
organization
 Responsible for financial forecasting and risks analysis.
 Responsible for developing and managing financial systems and policies
 Responsible for administering payrolls
 Ensures compliance with taxation legislation
 Handles all financial transactions for the company
 Serves as internal auditor for the company

7.4. Piggery Manager / Supervisor

 Responsible for managing the commercial breeding of pigs and other livestock.
 Responsible for managing boarding services, breeding services, dairy support services,
livestock health services, farrier services, and shearing services et al.
 Works closely with the General Manager to achieve the organizations’ goals and
objectives

7.5. Sales and Marketing Officer

 Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
 Identifies development opportunities; follows up on development leads and contacts;
participates in the structuring and financing of new business
 Writes winning proposal documents, negotiate fees and rates in line with company policy

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 Responsible for handling business research, marker surveys and feasibility studies for
clients
 Responsible for supervising implementation, advocate for the customer’s needs, and
communicate with clients
 Develops, executes and evaluates new plans for expanding increase sales
 Documents all customer contact and information
 Represents the company in strategic meetings
 Helps to increase sales and growth for the company

7.6. Field Workers / Contract Staff

 Responsible for feeding pigs and other livestock as instructed by the supervisor
 Responsible for cleaning the piggery
 Changes the water in piggery as instructed by the supervisor on a regular basis
 Handles farm implements and machines as instructed by the section manager / supervisor
 Assists in handling the breeding of piglets, pigs and other livestock
 Carries out task in line with the stated job description
 Assists in transport working tools and equipment from the farm and back to the
designated store room
 Handles any other duties as assigned my the line manager

7.7. Client Service Executive / Front Desk Officer

 Welcomes guests and clients by greeting them in person or on the telephone; answering
or directing inquiries.
 Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the
client with a personalized customer service experience of the highest level
 Through interaction with clients on the phone, uses every opportunity to build client’s
interest in the company’s products and services
 Manages administrative duties assigned by the manager in an effective and timely manner
 Consistently stays abreast of any new information on the company’s products,
promotional campaigns etc. to ensure accurate and helpful information is supplied to
clients
 Receives parcels / documents for the company
 Distributes mails in the organization
 Handles any other duties as assigned by the line manager.

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8.0. FINANCIAL PLAN

8.1. Initial Capital Outlay:

S.N Items Cost (N)

1 Building 3 060 000
2 Land 2 100 000
3. Repair and Maintenance 97 100
4 Equipment 5 000 000
TOTAL 257 100

8.2. Operation Cost:

S.N Items Cost (N)

1 Feed 910 800
2 Transportation 120 000
3. Disinfectants 80 000
4 Piglets (450) 1 100 000
5 Treatments and Drugs 22 950
6 Water bole hole 650 000
7 Advertising 78 000
8 Telephone 55 030
9 Communication 250 900
TOTAL 3 267 680

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9.0. CONCLUSION

The business has put in place the necessary resources to kick start as soon as possible. Amongst
the services that the business will offer include pig rearing, pig product processing, and
packaging.

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