by Having decided to choose this industry for creating your business, first of all you should take into account that it will be necessary to radically change your usual way of life, devote a lot of time to the household and constantly (especially at first) bear material costs.
Before you start organizing a pig farm at home, you should realistically assess the profitability of pig farming.
Important Features of Business
If you are planning a small business, the products of which you can sell yourself at a market or fair, then a personal subsidiary farm is sufficient.
If your requests are more ambitious, you will need to register as an individual entrepreneur. Of course, this will require more serious bookkeeping, constant tax payments and dealing with permitting authorities, but it will give you the opportunity to increase the number of livestock and expand your business.
Once you have decided on the size of your future herd, be sure to draw up a sound business plan (either yourself or with the help of a professional) that you will follow for the first few years.
Many started with a few animals and then gradually increased the herd. Decide on a breed and plan for the future use of your breeding animals.
The main emphasis should be on the sale of meat and lard. The selection aspect should be left only within the framework of one’s own reproductive needs, since, as experience shows, focusing on the production of young animals for sale does not always pay off even the initial investment.
It is also worth considering sales markets for by-products (blood, skins, bristles, etc.). In the future, a good source could be your own smokehouse, since smoked pork products are stored longer than fresh meat, and the demand for nic is also high.
Once you have brought together all possible sources of income, move on to the expenditure side of your business plan.
It should include:
- investments in purchasing pigs for your herd;
- costs of purchasing feed (also consider where to buy it);
- expenses for initial organization and subsequent maintenance
- normal operation of the farm;
- costs of paying wages to hired workers;
- expenses for carrying out sanitary and hygienic measures and
- veterinary nature;
- fare;
- other unforeseen expenses.
Profitability of pig farming
To calculate profitability, we will take a specific herd size of 350-400 pigs, of which 15 are sows and two boars.
Such a herd will need 30 to 35 tons of grain and 250 to 300 kilograms of various vitamin and mineral supplements per year. It will need a staff of 4-5 people to serve it.
In order to reduce the cost of feed, you can grow grain crops and root crops on your own land. To do this, these sowing areas need to be provided for in the business plan.
For the calculation, we will take the average fertility of 10 piglets in one litter.
Then from 15 sows at one time we will get 150 babies. Since pigs give birth twice a year – we get an average annual offspring of 300 heads.
The piglets will gain a live weight of 100 kilograms in a year. The net slaughter yield from one individual is 50-60 kilograms. Multiplying this number by the total number of animals intended for slaughter and by the average market price of a kilogram of pork, we get the gross income of our work for the year.
Every beginning farmer, when drawing up a business plan, must take into account specific local conditions and decide for himself whether pig farming is profitable for him or not.
First steps
Having decided to choose this industry for creating your business, first of all you should take into account that it will be necessary to radically change your usual way of life, devote a lot of time to the household and constantly (especially at first) bear material costs.
Before you start organizing a pig farm, you should realistically assess the possibility of selling the final product.
If you are planning a small business, the products of which you can sell yourself at a market or fair, then a personal subsidiary farm is sufficient.
If your needs are more ambitious, you will need to register as an individual entrepreneur.
Of course, this will require more serious bookkeeping, constant tax payments and dealing with licensing authorities, but it will provide an opportunity to increase the number of livestock and expand the business.
Once you have decided on the size of your future herd, be sure to draw up a sound business plan (either yourself or with the help of a professional) that you will follow for the first few years.
Many started with a few animals and then gradually increased their herd.
Decide on the breed and plan for the future use of your breeding animals. The main focus should be on selling meat and lard.
The selection aspect should be left only within the framework of one’s own reproductive needs, since, as experience shows, focusing on the production of young animals for sale does not always pay off even the initial investment.
It is also worth considering sales markets for by-products (blood, skins, bristles, etc.).
In the future, a good source could be your own smokehouse, since smoked pork products are stored longer than fresh meat, and the demand for smoked pork is also high.
Once you have brought together all possible sources of income, move on to the expenditure side of your business plan.
It should include:
- investments in purchasing pigs for your herd;
- costs of purchasing feed (also consider where to buy it);
- expenses for the initial organization and subsequent maintenance of normal farm operation;
- costs of paying wages to hired workers;
- expenses for carrying out sanitary, hygienic and veterinary measures;
- fare;
- other unforeseen expenses.
It is also necessary to provide for the possible risks of this business, the necessary measures to minimize them and the possibility of involving veterinary and zootechnical specialists.
Documentary support
Engaging in this type of entrepreneurial activity requires a full package of permits and regulatory documentation.
Ignorance of this issue often leaves future farmers at a loss. However, everything is not as scary as it may seem at first glance.
First, decide on the location of the future farm, since it is local officials who will control you.
Agree with them the very possibility of working on the territory under their control and the specific location of your farm. At this stage, a well-written business plan will be of great help to you, demonstrating the seriousness of your intentions.
Usually there are no obstacles from local authorities, since every administration benefits from new taxpayers and new jobs.
Moreover, if your plans are serious enough, officials can help you choose a plot of land and get it properly registered.
Also, in some cases, you may even be assigned an assistant who will accompany you at all stages of registration and collection of documents – from tax authorities to permitting authorities.
Premises and equipment
After legalizing your business and obtaining all the necessary permits, your next step will be to properly organize the premises for keeping animals.
There are two options here – repairing the old one or building a new one. The second option is more expensive, but it allows you to build a pigsty that best suits your needs.
If your herd is planned to be larger than 100 pigs, you will need hired personnel who will need household, production and utility rooms.
They also need to be taken into account when planning a future pig farm. For example, with a livestock of 300 animals, the recommended area of all necessary premises is approximately 5000 square meters.
The pigsty must be clean, well lit, completely protected from drafts and provide the possibility of quick and easy cleaning.
An important aspect of successful pig farming is modern equipment.
At the first stage, you can get by with simple drinking bowls, feeders and manual labor, but the costs of modern equipment pay off quite quickly. Since they significantly reduce maintenance costs and reduce the share of manual labor, which leads to a decrease in the cost of production.
Breed selection
There are many pig breeds currently available. The choice depends on the products you want to obtain, as well as the climatic conditions of your region and the availability of suitable feed.
Those farmers who have already passed the initial stage of establishing their pig farm advise starting with a herd of 350-400 animals, which should include 2 boars and 15 sows.
Most of the pigs are fattened for subsequent sale of final products in order to begin to recoup the initial material costs.
If the starting capital is not enough for such a herd, you can start with a small herd, gradually increasing its numbers through your own reproduction.
Before purchasing breeding animals, it would be a good idea to visit several operating farms, look at several options for the young animals on offer, and look at their pedigree (preferably for several generations).
This is necessary for:
- eliminating the possibility of mating animals that are closely related, after which the offspring is non-viable and has deviations;
- determining the productivity indicators of purchased pigs, since they are transmitted hereditarily, and future offspring depend on the correct selection of parents;
- protecting your business investments for several years ahead, since the effectiveness of your investments depends on the correctly selected breeding core.
Nowadays, Vietnamese pigs have become very popular. This is due to their following qualities:
- High fertility.
- Good profitability of this breed.
High quality of the resulting bacon, which is highly valued in the market. - The popularity of this product among bacon connoisseurs ensures good sales and a high level of profitability.
- Good immunity to diseases.
However, keeping this pig variety requires several conditions. Firstly, they are quite heat-loving and require a warm pigsty. Secondly, they love grass pastures, so a spacious walking area should be provided.
Traditionally, the Large White and Northern Siberian breeds are popular among both novice and experienced pig breeders.
They are distinguished by high meat productivity, prolificacy and, which is important in most regions of our country, a good level of adaptation to any climatic conditions.
Principles of feeding and breeding
Reducing the cost of feed mixtures without compromising their quality and reducing feed costs per unit of weight gain are the main keys to success.
Well-balanced, high-quality feed mixtures in the right proportions for each age group of pigs allow you to get a high income and, as a result, a profitable business.
The same principles underlie the approaches to breeding and reproduction. Activities in these areas must be planned, targeted and carried out at the highest level, constantly.
This requires competent and experienced staff, which would ideally include a qualified zootechnician.
A good level of hired specialists will ensure proper mating of pigs, competent care of sows during gestation and after farrowing, which will ensure high survival of young animals, and, consequently, increase the profitability of your business.
Prevention and treatment of diseases
Pigs are susceptible to infectious diseases, it is important to carry out preventive measures in a timely manner:
- Provide access to food and clean water, clean and disinfect premises;
- Purchase feed from trusted suppliers and comply with feed storage conditions.
- Conduct vaccinations and routine veterinary examinations.
- Maintain the conditions of detention, temperature and ventilation.
- Select young animals for growing and fattening from trusted suppliers.
Sales of products
Methods of product sales, sales channels:
- Opening your own butcher shop. Working with individuals at a fair, market, shopping arcade. This method requires additional expenses for renting premises or a trading place, salaries for sellers, advertising, delivery. It takes a lot of time.
- Farmers’ cooperatives and aggregators. For example, LavkaLavka, Esh Derevenskoe, Ecoferma. In the regions, there are also cooperatives that sell farmers’ products. However, aggregators take a percentage of sales and work with certified products, and put forward additional requirements.
- Horeca shops and establishments (grocery stores). They work with large volumes of certified products, are interested in low selling prices and stable supplies. They often work with large farms.
- Wholesale buyers and resellers. They buy products at the place of business, but offer unfavorable working conditions.
- Local villagers. As a rule, they run their own subsidiary farm, save money, and prefer to buy products in a chain store.
It is important to work out possible sales channels at the planning stage. Take the obtained analysis into account when planning the scale of the farm.
Expand your boundaries
In 2020, major industry players brought production to full capacity. The market is saturated with products, despite the demand and popularity of pork, there is a decrease in prices. To recoup long-term projects, companies are considering export.
The specificity of farm products in taste and environmental friendliness. It is important to find the target audience. Buyers who value and understand the difference between farm products and industrial ones.
At the initial stage, a promising way to promote on the Internet and social networks. Competition is low.
An online store with delivery will allow you to acquire your first customers with minimal costs. It is important to make a professional website and promote it.
Continuously develop other sales channels on favorable terms for the farmer. For example, place ads on specialized resources.
Financial plan for a pig farm
Includes the following expense items:
- Costs for the acquisition and construction of a pig farm, obtaining permits and licenses.
- Purchase of equipment and vehicles for full-cycle enterprises.
- Purchase of young animals for subsequent fattening. Animals of the main herd (sows, boars) for breeding.
- Food supply for 2-3 months.
- Creation of a website, online store for promoting farm products.
- Costs of registering a peasant farm.
The production cycle (pig fattening period) is 4,5-5 months., During this time, the farm will pay variable and fixed costs on a monthly basis. It is important to accumulate a reserve of funds.
Determine the source of funding for the project, including:
- Own funds.
- Investments of business partners.
- Credit, leasing.
- Government grants.
- Crowdfunding platforms.
Monthly expenses
Variable costs (cost of production):
- purchase of animals for fattening;
- costs of feed, including our own production;
- veterinary care and vaccination.
Fixed costs:
- feeding and maintenance of fattening animals and the main herd (sows and breeding boars);
- lease of land, buildings, utility payments;
- wages of regular and seasonal workers;
- transportation costs, delivery;
- tax payments;
- administrative costs, communication, internet;
- advertising and promotion costs;
- costs of opening and maintaining an account with the Bank.
- costs of obtaining veterinary certificates and product certificates;
- additional services that are not provided by the enterprise, such as slaughtering animals in licensed slaughterhouses, artificial insemination.
- costs of disinfection and sanitization;
- expenses for livestock death, spoilage of products.
Possible problems
- High cost of the project, increase in price at the implementation stage.
- Long payback period, lack of sales market.
- The risk of losing animals from the main and rotating herds as a result of disease, non-compliance with feeding and housing conditions.
- Lack of qualified personnel in the region where the business operates.
- Low profitability due to the lack of own feed base, slaughterhouse, land. Availability of loans and credits.
- Difficulty in obtaining certificates, licenses, and permits.
