Non-Disclosure Agreement

You are being furnished with confidential information that has been prepared by
Boondock Piggery Farm owner, and you may be furnished with additional information by the
Company by its representatives or agents in connection with evaluating a possible transaction
with the Boondock Piggery Farm. By your acceptance and as a condition hereof, you agree to
treat all information concerning the Boondock Piggery Farm which is furnished to you by or on
behalf of the Company, whether furnished before or after the date of this letter and regardless of
the manner in which it is furnished, together with analyses, studies or other documents or
records prepared by you or any of your employees or agents (collectively, "Representatives") to
the extent that such analyses, studies or documents contain or otherwise reflect or are
generated from such information (hereinafter collectively referred to as the "Evaluation
Material"), in accordance with the provisions of this agreement.

You hereby agree that the Evaluation Material will be used solely for purposes in
connection with a possible transaction with the Boondock Piggery Farm, and that such
information will be kept permanently confidential by you and your Representatives and you will
not distribute this Evaluation Material or any part hereof to others at any time without the prior
written consent of the Boondock Piggery Farm. You agree to restrain your Representatives
from prohibited or unauthorized disclosure or use of the Evaluation Material and shall be
responsible for any such breach hereof. This Evaluation Material is being delivered for
informational purposes and upon the express understanding that it will be used only for the
purposes set forth above. In the event that the possible transaction which is the subject of this
agreement is not completed or at the Boondock Piggery Farm's request, you shall promptly
return to the Boondock Piggery Farm all written material containing or reflecting any
information contained in the Evaluation Material and will not retain any copies, extracts or other
reproductions in whole or in part of such written material.

It is understood and agreed that money damages would not be a sufficient remedy for
any breach of this agreement and that Boondock Piggery Farm shall be entitled to specific
performance and injunctive or other equitable relief as a remedy for any such breach. In the
event of litigation relating to this agreement, the prevailing party shall be entitled to receive
reasonable legal fees and costs incurred in connection with such litigation. The legal system of
the Philippine will govern the terms and conditions of this agreement.

Your retention of the Evaluation Material shall constitute acceptance of the terms and
conditions hereof. If you do not agree to the terms hereof, please do not read the Evaluation
Material and immediately return such to the Boondock Piggery Farm. We would nonetheless
appreciate your kindly signing and returning one copy of this agreement which will constitute our
agreement with respect to the subject matter hereof.

______________________________

______________________________

Dated: ____________

Page 1 of 28
 INTRODUCTION

Pig farming is the raising and breeding of pigs. Among the various livestock species,
piggery is most potential source for meat production and pigs are more efficient feed converters
after the broiler. Pig rearing has traditionally been in the main occupational axis of the socially
backward down-trodden class of the Philippines population since time immemorial.

Pig production in the Philippines has intensified in the rural areas in response to a
radical structural change in the pig industry and a growing demand for pork products. Alongside
this rapid growth is the emergence of societal concern about the increasing negative
environmental externalities that the industry produces, particularly those related to the disposal
of waste and dead animals. Pig producers are said to benefit from negative externalities when
they do not bear the full social costs of their business enterprise. Non-internalization of such
externalities occurs when pig producers receive payment for their output while not investing in
pollution abatement or not making compensatory payments to surrounding communities
affected by their production processes. In some cases, producers are able to recycle all
nutrients from swine production on-farm through various cropping mechanisms. In other cases,
pig production is so large that there is no land to properly dispose of such by-products without
some environmental mitigation effort. Failure to implement any sort of measure will most likely
lead to an environmental externality. To determine whether a farmer has the ability to utilize all
manure produced on-farm, we use a mass balance calculation approach in this paper. Results
for the mass balance calculations suggest that, in general, smaller farms generate less excess
nutrients per hectare than larger farms. This is because most small-scale pig farms are mixed
systems where some croplands are available for nutrient assimilation. Large commercial farms
tend to be “pure land-intensive” systems.

In the Philippines, pork is one of the basic foods which Filipinos eat. It is one of the best
sources of protein needed by the body to be strong and healthy. That is why a need for a farm
arises.

Hog raising is a very popular enterprise in the Philippines such that there is a
proliferation of backyard producers, which dominates the swine industry and a healthy viable
commercial sector.

Despite the crises facing the swine industry, still many people are venturing in this
enterprise. This manual hopes to bring appropriate technology to the interested farmers and
would-be swine producers in order that they may realize profitable production and improve their
quality of life.

This statement had marked our traditional way of celebrating special occasions in our
lives, and it proved our undying taste for pork. The Philippine Department of Agriculture’s vision
is to modernized smallholder agriculture and fisheries to a diversified rural economy which
would be dynamic, technologically advanced and internationally competitive.

As of July 2020 it was recoded Unemployment Rate in Philippines averaged 8.31

percent from 1994 until 2020, reaching an all-time high of 17.70 percent in the second quarter of
2020 and a record low of 4.50 percent in the fourth quarter of 2019 of the labor force, roughly
around 12 million people, are employed in the agriculture industry, which includes the hunting
and forestry sectors. The situation being such, the agriculture sector aims for security,
sustainability of the natural resource base, social equity and global competitiveness.

Page 2 of 28
 The Philippines takes specific measures to achieve these goals through the protection
and development of watersheds; proper management of agricultural land and water resources;
establishment of biogas facilities; providing marginalized sectors preferential access to
productive assets and providing essential measures and support services.

Page 3 of 28
 EXECUTIVE SUMMARY

The Business

A piggery is one of the more traditional businesses you can find in predominantly
agricultural areas in the provinces. Some families initially raise pigs in their backyard as a
source of food. But eventually, they end up expanding the facility or venture to larger areas to
start a full blown piggery business.

One of the reasons why a piggery is a viable business idea is because Filipinos love to
eat meat and pork is our primary staple.

According to a study by United Kingdom research firm Chatham House, the Philippines
ranks among the top 10 meat consumers in the world. The United States and the United
Kingdom lead the world at 115kg and 80kg per person per year respectively.

On the other hand, the average Filipino eats 35kgs of meat per year. Of the 35kg, 15kg
is from pork. In terms of livestock production, pork accounts for 60% of the industry with chicken
coming in second at 27%.

Why do Filipinos prefer pork over other sources of meat?

 It’s affordable.
 It has a pleasant taste; comparable to chicken.
 Pork can be cooked and prepared in many ways.

Not many people know that pork can be healthy depending on the cut and how it is
prepared. Unlike steak where the fat resides in the meat, with pork the fat is located outside.
Cook the meat with the fat on to ensure juiciness then slice it off before eating.

Roasted pork loin, grilled Butterfly pork chops and ground pork as chili con carne can be
prepared and served in a healthy manner. And they will not break the budget.

In fact, a growing segment of the piggery business is raising native pigs which are
healthier because the cholesterol count of the meat is significantly lower than commercially
grown pigs.

The livestock industry continues to grow by a modest 3.25% or 61 Billion Pesos. Of this
figure, piggeries accounted for the highest contribution at 3.76%.

Business Opportunity

Investment in new production and processing capacity is evident. A recent example of

this is the announcements by PIC of a new sire and dam line nucleus facility on the main island
of Luzon, Hormel/San Miguel’s US$ 1.2 billion investment in doubling its meat processing
capacity (to 120,000 tonnes) at General Trias, Cavite and the Charoen Pokphand Group’s (CP
Group) plan to invest around US$ 2 billion on swine and poultry production in the Philippines in
the next 5 years.

However, it’s not all plain sailing since the domestic swine industry has a record of low
productivity and has only recently begun expanding albeit the majority of local producers (mainly
backyard and small farmers) are unlikely to be part of ‘commercialisation’. A particular challenge
for the Philippines is the high feed and energy prices that are prevalent: these affect all
producers and contribute to a relatively high cost of production for the domestic industry
(estimated at US$ 1.80 per kg).

Although the Philippines has some significant export markets (mainly Middle East) pig
meat imports have grown to meet these export customers’ needs (up by circa 12% from the EU
in 2016) and this may put some parts of the local supply chain under significant cost pressure in
the future. The meat processing sector complains that locally produced raw pig meat does not
meet its quality or presentation requirements and those imports of suitable pig meat are the only
way that it can satisfy its export and domestic customers and this may be the main reason why
new investments in integrated production and processing capacity are being seen (Figure 1).

Reports of corruption and irregularities in customs processing are not uncommon as are
complaints about unwieldy and bureaucratic SPS procedures and this may also be encouraging
domestic investment. Lastly, the ever present threat of typhoons can seriously disrupt local
production and this aspect of the weather’s behaviour affects decisions on location for new
capacity.

Figure 1 – Breakdown of pig meat imports into the Philippines, 2015.

Hog Industry Roadmap

Under the auspices of the Bureau of Animal Industry (BAI) the swine industry’s supply
chain has signed up to a ‘Hog Industry Roadmap’ which describes the major challenges facing
the domestic industry and the way to meet them over the next decade.

This 26 page ‘action plan’ is most interesting and has been put together after
consultations with commercial businesses and, if carried through, signals significant changes for
local producers, their supply chain, and the value chain for pig meat in the Philippines. This plan
envisages a growth of per capita consumption of pork in the Philippines from 14.9 kg/capita in
2015 to 16.4 kg/capita in 2017. This is relatively modest but still implies a growth of +30% in the
domestic herd. The technical KPIs for production are also targets for improvement in the
roadmap.

The number of hogs sold per year is required to increase from 18.8 in 2015 to 30 in
2027, and the FCR needs to shrink from 3.7 to 2.27 in the next decade. A final, ambitious, target
worth mentioning is to get carcass meat production per sow per year up from 1.7578 tonnes to
3.5445 tonnes in ten years. That’s an improvement of just over 100%. It’s easy to see why these
target figures imply that the Philippines is a ‘hot zone’ for investments in modern pig production.
Big challenges
In conclusion, the Philippines is, classically, facing some big challenges if it wants to supply
itself with more pig meat but it’s also clear that this is a country where opportunities beckon –
and where the local industry has ambitions.

These challenges and the potential to grow have not gone unnoticed by the local supply chain.
The investment decisions of the CP Group and others noted earlier are a sign that moves are
afoot to develop the pig and pig meat industry but there are other straws in the wind.

A recent announcement of new power supply agreements between Aboitz Power Corporation
and four of the largest members of Pampi; Foodsphere (CDO), Virginia Food, LIIP Food
Processors (Century Pacific) and GenOSI (McDonald’s) is more evidence that wheels are
turning and investments are being made. These major businesses need reliable and competitive
power supplies to support their growing meat processing operations.

That Hog Industry Roadmap for 2017-2027 has an ambitious vision – a sustainable and
globally-competitive hog industry by the year 2027. The Philippines is one country where we
can expect plenty of action for the swine industry in the years ahead.
 BUSINESS CONCEPTS

Business Overview

The Boondock Piggery Farm is a domestic sole proprietorship, owned and managed by
Joven D Tadije, engaged in the business of its business operation is located at the
____________________________________. The company started its business on August 22,
2020. The piggery farm will be established in land area of 9,708 square meters purchased by
the farm in any area as agreed.

The business will be concerned with the hog raising, the start-up capital of the Company
shall need capital of about _______________pesos (Php____________) which will be sourced
from our savings and borrowings.

The project will adopt a sole proprietorship type of business organization. Sole
proprietorship type of business organization is one which is owned and run by an individual and
where there is no legal distinction between the owner and the business.

All assets of the business are owned by the proprietor and all the debts of the business
are proprietor’s debts and he/she must pay it from his/her personal resources which will result to
unlimited liability.

The proposed location had been chosen by the proponents considering such factors as
the availability of resources, accessibility to the potential customers, location cost and the
environment of the business which fall under agro – industrial land type as being classified by
the DENR which is the only approved land type and location for the establishment of a Hog
Farm.

According to the very nature of the proposed project, which is in line with the livestock
type of business, a none-residential area has been the prime consideration of the proponents in
choosing the site of the business.

The Boondock Piggery Farm will be situated at ____________________________,

Quirino.

Business Requirements for a Piggery

The following requirements have been comply with in setting up a piggery to legalize
your operations:

a. Business Name Registration – The Company were already registered business

name with the Department of Trade and Industry (DTI) provincial office where your
proposed piggery is located. The business name will be valid for up to 5 years.

b. Barangay Clearance – Barangay office where were already secured in the area were
we plan to set up the piggery business.
 c. Mayor’s Permit and License and Sanitary Permit – The company were about to
secure this from the local government. Business license and permit have to be
renewed every year.

d. Tax Identification Number (TIN) – Application for Business Registration with Bureau
of Internal Revenue (BIR) office in the province.

e. Environmental Compliance Certificate – A piggery carries potential risks to the

environment. There will be guidelines that you will have to comply with strictly. You
can get the ECC from the Department of Environment and Natural Resources
(DENR) which is located at Cabarroguis, Quirino.

Organizational Structures

With regard to the business operations, the proposed business will have a total of five
(5) persons including the General Manager, Technical Operations Manager and two (3)
Farmhands. Each of them must have knowledge about the production processes of hogs. They
will be trained and oriented properly and will be given some seminars regarding hog farming.

Table 6 – Organizational Chart

Owner/General Manager

Technical Operation
Manager

Farmhand 1
Farmhand 2 Farmhand 3

Management Functions

The General Manager will be the one to plan and will be in charge of the overall
supervision of the farm. He will be the one to screen the applicants to be recruited and hired.
The Technical Operations Manager will oversee the efficiency and effectiveness of the
farmhands. He will also be responsible for the general care of the pigs, maintaining the herd
health and environment of the pigs.

PRODUCTS AND SERVICS

Products and Services Overview

 Company will provide a comprehensive set of valued added consumer services that will
be specifically catered to our customers and product sponsors. These services include:

 Sales of pigs.
 Sales of processed and packaged pig meat (pork).
 Breeding services.
 Sales of dairy products.
 Shearing services.
 Boarding services.

Classification of swine

There are many imported breeds in the country today and it is sometimes difficult to
determine the best breed most suited to our conditions. Here is a guide to help you select the
breed to raise depending on your purpose, money and experience.

a. Yorkshires or Large White - Yorkshires are entirely white with medium, erect ears. Sows
have superior mothering ability, farrow and wean large litters and are excellent milkers.
They adapt well to confinement but not to rugged conditions.

Slaughter animals yield a high dressing percentage, produce fine quality meat and
compare favorably with other breeds in growth and economy of gains.

b. Landrace - Landrace are white, have short legs and medium to large drooping ears. The
sows are noted for their excellence in mothering ability and litter size. They are heavy
milkers and produce pigs with superior rate of growth and efficiency in feed utilization.
When crossed with other breeds, they produce pigs of highly acceptable carcass quality.
They are however, weak on the feet and legs and have problems adapting to rugged
conditions. Such defects should be corrected by proper selection and breeding.

c. Duroc - The Duroc color is of varying shades of red. The sows are prolific and are good
mothers. They produce pigs that are superior in growth rate, feed conversion, and "their
performance under rugged conditions is better than any of the white breeds.
d. Hampshire - Hampshires are black with a white belt around the shoulder and body. They
are generally short legged and lack body thickness. The sows have a reputation of
weaning a high percentage of the pigs farrowed and are able to adapt to very rugged
conditions. The growth rate, however has generally been average or below.

e. Bershire - Berkshires are black with six white points -four white feet, some white in the
face and tail. The ears are erect and inclined forward as the animal grows older. They
are known for their style, meatiness and good adaptability to rugged conditions. They
have desirable length, depth and balance ofbody but lack good growth and efficiency in
converting feed to weigh gain. The sows are not as prolific as the other breeds.

f. Pietrain - The Pietrain is a very meaty type of pig with spotted black and white color. It
has well-shaped hams, loin and shoulders. Ears are erect, the carcass has a high lean
meat percentage, but it has a poor body constitution. Feed efficiency is not really good
and they are a little bit slow grower. This breed is also highly susceptible to stress. Thus,
Pietrain is only worthwhile in crosses but not as pure breeds.
 Table 1. Characteristics of the Different Breeds of Pigs

BREED COLOR EARS TYPE COUNTRY OBSERVATIONS

OF
ORIGIN
Landrace White Hanging Meat Denmark Long face, good
mothers, weak
legs, prolific
Large white White Standing Meat England Fertile, high quality
meat, fast grower
Bershire Black w/ 6 Standing Meat USA Short, black skin,
white points more resistant to
diseases compared
to white breeds
Hampshire Black with white Standing Meat USA Short, good quality
bands meat, strong legs
Duroc Jersey Red (golden) 2/3 erect 1/3 Meat USA Good constitution,
hanging strong legs, fast
grower, resistant to
stress
Pietrain Black & white Standing Very Belgium Very meaty ham and
meaty very suscep-
tible to stress

Breed Selection Guide

Here are some guidelines for selecting breeder sows on the basis of physical appearance:
 Young female swine should have a minimum of six pairs of well-developed and properly
spaced functioning teats. If not, they are likely to have poor milking capacity.
 Teats that are inverted do not secrete milk, so choose pigs whose teats are not inverted.
 Long-bodied sows are desirable because of the more space created for udder
development.
 Body width should be uniform from front to rear.
 When selecting a breeding animal, see to it that it has a well-developed ham, loin and
shoulder.
 The feet and legs should be well placed. Medium-short feet and short upright pasterns
are preferable.
 Select the biggest among the litter.
 Having a litter of 8 or more good-sized piglets with high survivability indicates a good
female breeder.
 Do not select young female swine that fail to secrete milk.
 Select vigorous pigs from a healthy litter in a herd raised under good swine sanitation.
Do not keep gilts or boars nor breed from litters that have physical abnormalities for
these may be inherited.
 In selecting a gilt or sow, these pointers should be considered: clearly visible and well-
developed primary sex organs, equal-sized testicles, pigs that have been proven and
tested with traits that can overcome the defects of the herd. Ignore any minor defects
present in the pigs, provided that they are not present among the sows.
 TECHNICAL PLANS

Housing Management

In generally, boars should be four to six months old at the time of selection. Whatever
systems of operation, hog houses must be constructed properly to ensure maximum
performance of the pigs. A good hog house may not improve the health conditions of the
animals but a poor one will certainly increase disease problem easily.

Its floor of the house is 3.0 X 3.0 m, about 60 cm above the ground, the floor boards
have spaces of 2 cm in between, the roof is be rain, proof, the high side of the roof is face in a
direction where some sun can shine a little way into the house on this side, with shade in some
part of the house. Hog houses were constructed on a slightly sloping and well- drained area so
that it will not become too muddy and convenient to work in.

Permanent hog houses is concrete floors for easy cleaning and to minimize the
occurrence of parasites and diseases. Concrete floors must not be too rough to cause foot and
leg problems nor too smooth to be slippery when wet.

A pigsty was constructed cheaply by using locally available materials. It needs to be

constructed according to climatic conditions and according to the pig production system.

Facilities and Equipment

The Company provide the pig house with the proper equipment such as feeders and drinking
troughs. Feeders and water troughs are best made of concrete although other materials may be
used as a substitute.

Table 2. Space Requirements for Different Classes of Swine*

SOW WITH
BEFORE GR WING-FINISHING PIGS
LITER O
TYPE OF BOAR FARROWING GILTS
HOUSE SOW Young Mature 10-20 20-40 40-70 70-100
Kg Kg. Kg. Kg.

Farrowing house:
Pen size (min) m2 1.858 1.858 1.580 4.460 5.948 -- -- --
--------------------------------
Stall size (total) m2 3.903 3.903 -- -- --
Stall width, cm. -- -- 50.8 60.96 -- -- --

Growing-Finishing House:
Solid Floor (total) m2 -- -- -- -- -- .46-.56 .56-.74 .74- .84 .84-1.11
Pigs per watering cup (hole) 1 10 12 4 4 20-25 20-25 20-25 20-25

Pigs per feeder hole 1 2 3 1 1 4 3 3 3

*Source: Squibb Swine Farming Manual

Care and Feeding Management of the Hogs

Begin feeding a commercially good pre-starter ration when the pigs are about one week
of age.
 The ration of the pigs should be changed at different stages of growth but the
shift from one ration to another should be done gradually in order not to upset the
normal feeding behavior of the pigs. Always allow a transition period of at least one
week before making any changes.

A starter ration is given to pigs from weaning until two months of age and weighing about
10 – 25 kgs. The grower ration is next given to pigs when they are 30 – 35 kgs or two months
old and until they are about 15 – 20 weeks old. When pigs reach 60 kg. or are about 20 weeks
old, a finisher ration is given. In formulating a simplified ration, keep in mind that it should
always contain sufficient carbohydrates, protein, vitamins, and minerals. Cassava, camote, corn
and corn by-products, and discards from slaughterhouses, which are abundant in some parts of
the country may be used provided they are properly cooked and dried. Dry feeding is practiced
in commercial operations to save on labor and feeding equipment costs. Wet feeding is
practiced mostly by backyard producers. Provide clean drinking water at all times.

Health Management

The company’s make sure that we always keep buildings, runways, pens, and equipment clean.
Sanitize and disinfect them regularly. Put in quarantine or isolate the hogs that are bought
recently from other sources. When buying breeding stock for replacement, make sure that the
animals have been immunized against prevalent diseases such as hog cholera and swine
plague. Always seek the advice/services of the nearest veterinarian, the Office of the Provincial
Veterinarian, or the Office of the Bureau of Animal Industry (BAI).

Record Keeping

Record keeping must be simple and precise. This can be used as a guide for
improvements or adjustments to be done. This will also be helpful in the day to day operation.
Through record keeping, profitability can be easily determined.

The kind of record that we keep depends on the particular aspect of swine enterprise
that we want to emphasize.

Type of Records Kept

 Technical - records regarding production and schedule in the farm. Example: age
of the sow, farrowing date, number of piglets
 Economics – records regarding the financial aspect of the operation. Example:
price of meat, price of weanlings, price of feed

Location Requirements of a Piggery Business

A piggery is a good business, but it carries environmental risks. Waste disposal is of

paramount importance and the ensuring the cleanliness of the pens will protect the pigs from
getting sick or infected with communicable diseases.

When it comes to our piggery business, location is not enough. It must be situated in an
area which complies with environmental guidelines:

The company piggery was located at least within a 25-meter radius from sources of
ground or surface drinking water and more than 1,000 meters away from residential, industrial,
institutional and commercial areas.
 We have a Dry lot area having the following specifications:
86m – 2.79m per sow
74m – 1.12m per head of pig under 100 pounds
12m – 1.86m per head of fattening pig from 100 to 200 pounds
32m – 3.25m per boar

Vicinity Map

Table – Vicinity Map

 HEALTH AND DISEASES AFFECTING PIGS

This pig diseases guide is a reference list of pig diseases commonly encountered. It is
not intended as an aid for diagnosing pig diseases but is intended to provide basic information
about diseases that pork producers should be aware of. We recommend consulting a
veterinarian for diagnosing, treating and controlling disease in the pig herd. The recognition of
disease is extremely important to keep adverse effects on production and economic losses to a
minimum.

When an antibiotic is used to treat and control a disease, the user must understand the
reasons for its use, the correct dose rate and the antibiotic's withholding period (the minimum
period that must elapse between the last use of the antibiotic and the slaughter of the treated
animal). Where antibiotics are listed in this guide, the abbreviations following them stand for:

I - injectable
O - oral
W - in-water medication
F - in-feed medication.

Other chemicals, such as miticides, wormers and others, also have withholding periods
that must be heeded to prevent the detection of chemical residues in pork.

Where vaccines for the prevention of disease are listed, they must be used according to
manufacturers' recommendations or optimum vaccine antibody protection will not be produced
and disease breakdowns may occur.

Foot and mouth

FMD is a contagious, viral disease of swine, cattle, sheep, goats and pigs and other
cloven footed animals. The disease in pigs is mild and is important as being a potential danger
for transmission to cattle.

Transmission: Direct and indirect contact with infected animals. The

virus can also be spread by aerosol, saliva, nasal discharge, blood, urine,
faeces, semen, infected animal by-products, will containing scraps of meat or
bones and by biological products, particularly vaccines. Pigs can transmit the
disease to cattle and other animals.

African swine fever

ASF is a highly contagious viral disease of domestic pigs manifested by fever, blotching
of skin, haemorrhage of the lymph nodes, internal organs and haemorrhage of the
gastrointestinal tract. It is observed in acute and occasionally subacute and chronic forms.

Transmission: There is a natural cycle of the ASF virus between bush

pigs, warthogs and giant forest hogs and some tick species (Ornithodorus) in
which the virus replicates. The spread of the virus is by contact with affected
pigs and infected fomites, ingestion of contaminated uncooked pork garbage,
tick bites and contact with domestic and wild carrier pigs.
 The virus is quite resistant to cleaning and disinfection. It survives for 2 – 4 months in an
infected premises and 5 – 6 months in infected meats. The virus can survive in smoked or partly
cooked sausages and other pork products. Humans are not susceptible to this disease.

Table 1. Diseases of the pre-weaning period

Diarrhoea at 10-21 days of Fluid therapy; Improve hygiene; provide a
Coccidiosis -
age coccidiostats warm, clean creep area
Provide a warm, clean creep
Overlay / trauma Sudden death None area; check farrowing crate -
design
Starvation (hypo- Dextrose solutions; Ensure gilts have adequate
Weakness; death Improve sow's milk supply
glycaemia) supplementary feeding functional teats
Many causes; consult a
Stillbirths Born dead None Various methods
veterinarian
Improve hygiene; repair Infection due to bacteria;
Miscellaneous infections Lameness; sudden death Antibiotics (I)
flooring swollen joints commonly seen
Improve hygiene; provide a
Exudative epidermitis Antibiotics; skin Staphylococcus
Skin lesions; death dry, warm, clean creep area;
(greasy pig) protectant; vitamins hyicus infection
prevent skin abrasions

Table 2. Diseases of the post-weaning period

 Diarrhoea with blood;
Antibiotics (I,W,F); Improve hygiene; antibiotics Avoid purchasing infected
Swine dysentery diarrhoea; reduced growth
reduced stocking density (F) pigs; control rodents
rates; death

Diarrhoea with blood;

Proliferative enteropathy Antibiotics (I,W,F); iron; Three main syndromes
diarrhoea; reduced growth Antibiotics (F)
(PE)(ileitis) vitamin B affecting different aged pigs
rate; sudden death

May go unnoticed in a herd;

Itching; dermatitis; Miticidal sprays; pour-
Strategically treat breeder pigs may add to pneumonia
Sarcoptic mange rubbing; scratching; ons; injection and in-feed
and weaners/growers problems; pigs of all ages can
reduced growth rate premix
be affected

A common cause of death in

Intestinal torsion Sudden death Diet manipulation None
some herds

Manipulate diet, including feed Probably feed and disease

Loss of appetite; vomiting;
Gastric ulceration Rarely effective coarseness; reduce stress; related; can affect pigs of any
death
reduce disease age

Arthritis; skin lesions;

Most losses occur between
Erysipelas reduced growth rate; Antibiotics (I) Vaccinate
two and six months of age
condemnations at slaughter

Diarrhoea; reduced growth Parasiticides in-feed or Roundworm; whipworm;

Internal parasites (worms) Parasiticides
rate; pneumonia injection kidney worm

Improve hygiene; provide a

Exudative epidermitis Antibiotics; skin Staphylococcus
Skin lesions; death dry, warm, clean weaner pen;
(greasy pig) protectant; vitamins hyicus infection
prevent skin abrasions

Table 3. Diseases of breeder pigs

 Improve floor design; control
Premature culling; reduced Regularly check breeder pigs
Lameness Rarely effective erysipelas; prevent injuries;
herd fertility for leg lesions
reduce conformation defects

Antibiotics (I,W,F); Cull affected animals; improve

Reproductive tract Caused by bacteria and poor
Vaginal discharge syndrome antibiotic treatment of hygiene of mating pens and
infections hygiene
boar's prepuce dry-sow shed

Boars transmit bacteria to

Bladder infection (cystitis) Blood-stained urine Antibiotics (I,W,F) Antibiotics
sows and gilts at mating

Reluctance to stand; Antibiotic infection of Increase water intake; improve

Kidney infection
sudden death boar's prepuce hygiene in dry sow shed

Stillborn or weakborn pigs;

Leptospirosis Antibiotics (I,W,F) Vaccinate Can also affect humans
abortion; returns to service

Abortions; reproductive Can also cause arthritis and

Erysipelas Antibiotics (I,W,F) Vaccinate
failure skin lesions

Feed twice or three times per

Gastric torsion (see Commonly seen when level
Sudden death None day; do not overfeed hungry
intestinal torsion ) of feeding is increased
pigs

Loss of appetite; vomiting; Investigate feed, fineness,

Gastric ulcers depraved appetite; blood in Antibiotics (I); wet feed crude fibre and vitamin Can occur in pigs of any age
dung; sudden death E/selenium; reduce stress

MARKET ANALYSIS AND STRATEGIES GOALS

Market Description

According to the Business Mirror, the pork production will increase by 3.15% in 2018 to
reach 1.635 million metric tons (MMT), a 3.15 percent increase than the projected output of
1.585 MMT for this year.

The swine production amounts to a whopping PHP 191 billion industry, the largest
among the livestock and poultry industries in the Philippines.

In 2017, swine production was contributing to 18% of the total value of agricultural
output, ranking just behind rice, making it the eighth country in the world in terms of pork volume
production and number of breeding sows.

As of today, swine production growth is stimulated by a high demand from a growing

middle class. It plays a major role in ensuring the food security of the Philippines by providing
more than 60% of the total meat consumption of the Filipinos.

Around 65% of the swine production is done by backyard farmers (versus 35% by large-
scale farm operations), which shows a growing number of Filipinos venturing into this field.

Despite being technologically advanced, backyard swine farmers can be confronted with
low productivity and swine mismanagement practices which results in low sow productivity and
high mortality rates.

External factors may also contribute to these challenges. According to animal health
experts, global warming may heighten the unpredictable weather in the country, resulting in an
increase in infection and respiratory diseases for the farm animals, which could in turn
negatively affect farm productivity and profitability.

The Philippines Council for Agriculture, Aquatic and Natural Resources Research is
supporting different research and development initiatives through the Industry Strategic Science
and Technology Program for Swine, launched in 2016. The project aims to develop
technologies and systems which can improve the productivity and production efficiency of the
swine industry.

At different levels, hog feed producers are investing their expertise and time to bridge
this gap. Neovia Philippines, with its range of hog and swine complete feed, —Evialis, Ultrapak,
Popular, Primepak and Budgetpak–, is striving in this direction. Our technical experts have
already brought their advice and technical training about feeding and nutrition performance, bio-
security and hygiene monitoring on the farm, breeding, diseases diagnostics and treatment to
hundreds of backyard farmers.

Target Market

The proposed business will be established at __________ Cabarroquis, Quirino. The

target market will be the public markets of Cabarroguis and other near Municipalities of Quirino
Province.

The selected towns of Quirino Province has a total of ______ meat vendors operating in
their respective public markets.
 _____________________ is an upland town situated at Southwest portion of the
province. It is one of the highly recommended place for the establishment of Hog Farms as
approved by the Provincial Veterinary Office. According to Cabarroguis Zoning Map, the said
town provides preferable locations for the possibility of opening business operations in line with
agriculture.

According to the Provincial Veterinary Office, there were about ____ commercial farms
and ___ backyard farms operating in areas of ______________ Cabarroguis, Qurino as of 2020
Provincial Veterinary Office official count. In Cabarroquis alone, there are about ___ commercial
farms and ____ backyard farms.

Market Size & Revenue Potential

The Philippines is undeniably one of the more interesting countries in Asia. With over a
100 million populations and a rapidly developing economy, there is a constant demand for pig
meat and pork.

The swine industry of the Philippines is one where jobs and economic opportunity seem
guaranteed for the next decade for those who want to commit to a career or investment in
modern pig production and processing. Demand is growing, in line with population and income
(and tourism), and meat consumption is expected to grow in parallel. And, on the supply side,
there is a deficit in pork and pig meat for the processing industry at the moment. The industry is
a ‘hot zone’ for an expanding and growing supply chain from farm to fork (genetics, AI, feed,
animal health, and equipment) and for foreign suppliers and importers/processors of pork.

The swine sector is the second largest economic activity in the Philippines’ agricultural
sector. Domestic pig production has been rising in both backyard and modern commercial
farms. In 2016 (July 1), the total hog inventory in the Philippines was reported to be almost 12.5
million head – an increase of 1.4% compared with 2015.

Backyard farms accounted for 64% of these animals and commercial farms made up
36% of the total hog population. Approximately 35% of the total breeding herd (1.68 million
sows or 560,000 head) were on commercial farms (July 1 census 2016).

The total breeding herd increased by 2.6% in 2016 and by 5.3% in 2015. The key
regions for pig production are Central Luzon and Calabarzon which, together, account for
almost two thirds of all commercial pig production. This proportion falls to around 30% of all pigs
when backyard pig production is considered since these smaller units are spread more evenly
around the Philippines. Although a lot of domestic pig meat is sold through wet markets there is
a growing and vibrant meat processing sector which serves foodservice, retail and export
customers. The Philippines’ Association of Meat Processors (Pampi) has around 50 company-
members and claims that they account for more than P300 billion in revenues (US$ 6 billion)
and provide jobs to more than 300,000 Filipinos.

Swine Situation Report, April-June 2020

As of 01 July 2020, the total swine inventory was estimated at 11.74 million heads
indicating an annual decline of 7.6 percent as it recorded a stock of 12.70 million heads in the
same period of 2019. Population of swine in both backyard and commercial farms posted
decreases of 2.7 percent and 15.9 percent, respectively. Of the total swine inventory, 66.5
percent were raised in backyard farms while the remaining 33.5 percent were from commercial
farms.

By age, fattener had the highest share (25.7 %) to the total swine inventory, followed
closely by grower (24.6%).

Table 3 – Annual Growth Rate of Swine Inventory by Farm Type, Philippines: as of 01 July,
2018-2020

Competitive Advantage

Growing Period and Feed Consumption Average Daily Gain. This Refers to the average
gain in weight of pigs in kilograms per day. Weaners should have an ADG of at least .350 kg.
Aand fatteners should have an ADG of .800-.825 kg. The higher the ADG the better because it
means faster growth of pig and lower fattening period.

Feed Conversion Ratio - refers to the amount of feeds consumed by the pig per kilogram
gain in weight. The lower the FCR the better. It means lesser feeds per gain. Weaners should
have an FCR of 1.5 and fatteners should have an FCR of 3.0.

Marketing Strategy

The Company will use tarpaulin in its introductory stage as well as Transit advertising,
which means the use of vehicles to carry the advertising material for the clients to be aware of
the existence of the proposed business. Deliveries to clients will be available everyday.

The Company will also reach out to different charitable institutions such as orphanage,
churches and government hospitals, charity and organizations. Help will be extended to those
chosen charity by means of goods and financial help.

Distribution Channels

The products will undergo channels of distribution. These will be done by the E&J Farms
through selling of hogs to slaughter houses and haulers which will serve as the middlemen or
resellers. Next, the slaughter houses will deliver the meats to different public markets in
selected towns and city for retailing purposes.
 These group of meat vendors will sell the meats to household who are considered as the
consumers/end-users of meats for final consumption purposes.

MANAGEMENT PLANS
Staff Recruitment

Boondock Piggery Farm will announce job vacancies. The proposed business will recruit
and employ workers on the basis of their qualifications of work. Referrals from trusted people
will also be entertained. Qualified applicants will then pass the necessary requirements to the
management such as:

 Barangay, Police and NBI Clearance

 Copy of Birth Certificate
 High School/College Diploma/Form 137
 Medical Certificate
 Driver’s License

Staff Trainings

Staff trainings will be conducted for the farmhands to gain additional knowledge that will
enhance their abilities and skills to become more productive and more efficient.

Security Measures

The Company will construct fence around the farm to prevent the entrance of
unauthorized person despite the safety of the location against possible threats.

Policies on Work Schedules

Employees will work six (6) days a week. The compensation will be on a daily basis. The
employees are entitled to one (1) rest day a week.

All employees are entitled to one (1) rest day. The Farmhand 1 will take his rest day on
Saturday and the Farmhand 2 will take his rest day on Sunday. The Technical Operations
Manager will take his rest day every Friday.

Employee Benefits

PhilHealth, PAG-IBIG, SSS, 13th month pay and safety apparels will be provided for all
employees.

SWOT ANALYSIS
 Pork products remain popular in the economic climate given that these are low-cost
forms of protein. As such, pig farms tend to do very well in any economic climate given the
continued and ongoing demand for pork and pig related products on an ongoing basis. One of
the common trends within this industry is to develop more humane methods for raising and
slaughtering pigs and hogs. One of the trends and needs us to be made aware of, that more
and more regulations are being introduced as relates to a pig farm. These businesses typically
have high barriers to entry given the substantial upfront start-up costs associated with a pig
farm. Generally, these businesses typically have start-up costs range anywhere from P1 million
to P5 million depending on the location and the initial size of the hog farming facility.

However, these costs can be much more substantial if the entrepreneur is looking to
establish a much more expansive pig farm from the onset populations. The gross margins
generated from the sale of products typically generates 20% to 30% gross margins. While these
gross margins are considered to be moderate, most pig farms do very well given the substantial
amount of revenue that is generated on a monthly basis from purchase orders. One of the nice
things about owning and operating a pig farm is that there was always a continued demand
among wholesale food distributors as well as meat processors that often have ongoing and
standing purchase order relationships with these companies so that the revenue generated can
be highly predictable. As this is a commodity focused business – swaps, options, and other
financial instruments can be acquired in order to hedge against the value of the underlying pork
products.

As it relates to the demographic profile that needs to be included within the business
plan, this can be somewhat minimal given that it’s going to primarily be food wholesalers,
slaughterhouses, meat packaging businesses, supermarkets, and related entities that are going
to be making purchases of hogs and pork products. However, it should be noted that an
examination of the annual revenues, annual profits, number of employees on staff, and the
scope in which these businesses operate should be included as it relates to developing a
marketing campaign that will allow the business to generate highly predictable streams of
revenue on a monthly basis from purchase orders.

The company is also aware that we should developed a good pig farm marketing plan
should. The company also immediately noted that in some instances, the company must
conforms to allow individuals to make smaller purchases especially among people that have an
interest in sourcing their food locally. If this is going to the case for this pig farm that an online
flat form should be developed so that the individuals who want to participate in food online site
to directly purchase meat or hogs can immediately find the Company business quickly. This
online site should showcase the pig farming facility, hours of operation, pricing as relates to
whole hogs as well as for specific products, and the sustainable and potentially organic
practices that are used in conjunction with the hog farming operation. This online site should be
listed among all major search engines including Facebook,Google, Bing, and Yahoo.

Pertaining to sourcing potential local customers, a presence on social media is also

important. Given that platforms like Facebook, Twitter, Google+, Instagram, and related
websites now maintain community profiles and forums. As many people now ask for
recommendations via social media channels, a presence on these platforms can substituent
substantially boost the revenues of this business on an ongoing basis. However, the total need
for a significant presence on social media is somewhat low. This can simply just be by
maintaining one page that allows individuals to understand what is being provided and at what
cost.

As it relates to marketing to purchase order customers, this can be done relatively easy
by simply distributing print advertisements as well as directly contacting companies that are
continually sourcing new vendors for their produced pork products. Once these purchase order
relationships are developed then far less effort can be allocated towards marketing. However, if
the business is going to engage in packaging and distribution of supermarkets that a much more
expensive marketing campaign may need to be developed given that oftentimes these
businesses will brand their products with the pig farms corporate name. This is especially true if
the business is going to be engaging in organic pig farming and wants to make sure that
customers are aware of the businesses practices. As such, a marketing consultant may be hired
in order to properly develop and position the pig farm’s marketing message to the general
public. While a marketing consultant can be an expense the results can be significant if this is
done correctly.

A pig farm SWOT analysis should be produced as well. This document focuses on the
strengths, weaknesses, opportunities, and threats that are normally faced by pig farms hog
farms. As it relates to strengths, these businesses are able to generate significant revenues on
a monthly basis from raising and selling live pigs as well as pork products to wholesalers as well
as the general public. While the gross margins are considered to be moderately low the ongoing
demand for these products does not decline. As such, pig farms are generally able to remain
profitable and cash flow positive in any economic climate. The barriers to entry are moderately
high given the high start-up costs and expensive ongoing operating costs that are associated
with these businesses.

For weaknesses, sustainable farming practices are expensive to maintain and many
more consumers are demanding that the businesses from which they purchased meat engage
in these types of practices. As such, this may contribute to a significantly higher upfront start-up
cost as well as higher ongoing operating costs. However, this can be a strong investment for a
new pig farm given that they will be able to market themselves as an organic and sustainable
business. Competition within this market is also significant. However, there is a continued and
ongoing demand within the United States and abroad for pork products. As such, the current
demand currently is exceeding the supply available.

As it relates to opportunities, one of the ways that the farms often expand their
operations is by simply developing secondary locations so that additional hogs can be raised on
an ongoing basis. Additionally, and as discussed above – these businesses will often take to
selling a portion of their produced pork products to the general public correctly. This is
especially true among businesses that maintain organic farming practices as individuals who
purchased directly from farms are looking to source their food locally or regionally with a focus
on sustainable business practices. These sales usually generate higher gross margins.

For threats, ongoing changes to regulation can impact the way that these businesses
conduct their operations on an ongoing basis. However, these regulations are generally easy to
follow once they have been approved by the federal and state governments. One of the things
that may impact hog farms and take farms moving forward is an ecologically these businesses
do have to engage in a number of strategies in order to minimize their footprint. In time, this may
become law and may contribute to a much higher and much more complicated operating cost
infrastructure as it relates to raising and selling pigs for pork production.

Pig farms can be highly lucrative farming businesses given that the operator has an
extensive amount of experience with livestock businesses. The high start-up costs, high
operating costs, and ongoing complexities provides an established business with a significant
amount of barriers to entry so that competition is kept to a moderate level. One of the things that
the entrepreneur that is looking to start this business needs to be aware of is how technology
will change the way that farming is done moving forward. More and more aspects of farming are
becoming automated, and as such – the owner of the pig farm needs be able to integrate new
technology into the farming practices in order to remain price competitive.

FINANCIAL FORECAST
Projected sales for 3 years

Projected cost of sales for 3 years

Projected operating expenses for 3 years

Profit and loss for 3 years

Projected cash flow for 3 years