2018-12-23 Hog Raising Plan.docx

HOG RAISING BUSINESS PLAN A DRAFT

LARRY DIAZ PROPONENT

Overview of the piggery business A piggery business is known to be one traditional business here in our country. Filipinos are known to be very good eaters. That being said, starting in the food business industry is a hit for most of us. Although food is a good idea, wouldn’t it be better to indulge in the production side as well? Pork is one of many Filipino favorites and it is, therefore, an ideal plan to start a business with pork. People who run businesses like this are mostly in provinces and secluded areas because of the stench. Many people fail to think that the farming business is a lucrative business. They think that because they’ll somehow get their hands dirty, it’s not going to be worth it – a total misconception. As a matter of fact, succeeding in the piggery business could bring you hundreds of thousands of pesos each month. Here in our country, the livestock industry continues to grow by 3.25% each year; that is equivalent to 61 billion PHP. The piggery business contributes to that by a shy 3.76%.

In conclusion, starting a piggery business, if managed and done accordingly, will continue to grow and you’ll fall in love even more.

https://www.boklit.com/2018/07/piggery-business-in-the-philippines.html

Objectives -

Operate the farm in a family owned land

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Build the farm up to 100-150 head by 2024

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Purchase all necessary equipment to operate the hog farm

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Obtain 1 Million grant to invest in building desired for hog farm operation

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Reach profits that allow the whole incorporators to work the company full time and make sufficient incomes

Mission The mission of the group is to own a hog farm that raises, breeds and sells top quality pork products and create profitable outputs based on the company’s performance.

Vision By the end of 2025, the group is already selling more than 50 hogs per week. Few more years, the company will already be selling 100 hogs per day, and is already capable of self sustaining the business in the upcoming years.

Keys to Success The keys to success in achieving the mission and vision are: -

Healthy hog complete with shots, food and clean water

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A good pork market

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Farm adaptation to weather conditions

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Low production costs

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Faith within the group

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Dedication and Diligence

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Passion towards the work

Company Ownership “Walang nag-tagumpay mag-isa.” Every business is a network within a network for a network. The idea is to make a corporate group, fund building and profit sharing supported by necessary by laws.

Products

The group can sell the following products: 1. Pork (hog meat) 2. Piglets 3. Processed products 4. Others

Financial Plan The financial plan is based on market value estimates and upon the knowledge of the proponent.

ESTIMATED PRICE LIST ALIVE PIGLET FEEDS STARTER 50KG FEEDS GROWER 50KG FEEDS FINISHER 50KG

Php 3000

DAYS

MONTHS

1400

57-85

2.7

1200

86-120

4

1000

121 UP

6

In the above-stated table, the market value of piglets as of 2018 ranges from 2500 – 3000 pesos.

On the other side, there are three varieties of feeds; STARTER, GROWER and FINISHER.

Type of Feed There are three types of feed available in the market. Each type differ in the proportion of nutrients in the feed. The change in nutrient proportion is important to address the needs of the pig at different stages of growth. 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. 1. Starter Feed – A starter feed is given to 10 to 20 kgs weaners until the pigs are about three months old and weigh 30 to 35 kgs. A starter feed contains 18 percent crude protein (CP) and 3,250 kilocalories (Kca/j) of digestible energy (DE). 2. Grower Feed – Next to starter feed is the grower feed. This is given until the pigs reach a weight of 60 kgs. Grower ration contains 16 percent CP and 3,200 Kcal DE. 3. Finisher Feed – At 60 kgs, the pigs’ ration is shifted to finisher feed. It is given to finish pig up to 80 to 90 kgs ready for the market. The ration contains 14 percent CP with 3,200 Kcal DE.

Feeding Methods The growth performance of the pigs is not only affected by the quantity and quality of feed given but also by the methods of feeding. The three basic feeding methods for finishers are restricted feeding, ad libitum, and combination of ad libitum and restricted. The level of feeding can vary from restricted feeding (about 80% satisfaction) to ad libutum level (100% satisfaction). A. Restricted Feeding In restricted feeding, the amount of feed given is controlled or limited to a certain amount just to satisfy the appetite of the pig. Advantages:

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better feed conversion ratio (FCR) (lower feed cost and better performance)

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good carcass quality

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better health control

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less digestive problems

Disadvantages:

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lower Average Daily Gain

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unequal growth especially if feed trough is not long enough to accommodate all pigs

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more laborious

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less chance of coping up with higher market price

Restricted feeding is done through the use of a long feeding trough where all pigs eat at the same time. However, the length of the trough should be long enough to accommodate each fattener during feeding time. A good criterion for restricted feeding is that the trough should be empty after 15 or 20 minutes if given as a slop. For dry mash or pelletized feeds, it is normally consumed in 20 to 30 minutes. The level of feeding is based on the growth rate of the pigs (refer to table on right). B. Ad Libitum Feeding Ad libitum feeding is feeding without restrictions and feed is mode available anytime. This feeding method should be practiced if pigs finished have high growth potentials and they are in good health. Dry feed should always be used for this feeding method. Fresh feed improves the feed intake and feed efficiency, thus self-feeders should be emptied and cleaned at least once a week to prevent microbial spoilage. Pigs find infested feed unpalatable thus, wastage of feed is high. Continuous

supply of fresh and clean water is important in ad libitum feeding because water intake increases when this method is practiced. Advantages:

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higher ADG is achieved

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less feed competition

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less laborious

Disadvantages:

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thicker backfat

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higher feed conversion ration (higher feed cost)

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more digestive problems in younger pigs

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less control on health problems

C. Combination of Ad Libitum and Restricted Feeding Pigs are fed ad libitum until they reach the weight of 50 kgs and fed restricted until they are marketed. With this feeding method, the growth potential of the animal can be maximized during its first 50 kgs of growth. Restriction is practiced to reduce backfat thickness with a corresponding increase in lean cut yield. Advantages:

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higher ADG with good carcass qualify

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lower feed cost

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better use of good feed (better FCR)

Disadvantages:

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higher possibility of digestive problems if shifting is not properly done

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less control of health problems and feed intake at the start

http://www.mixph.com/guide-to-proper-feeding-of-hogswine/

Food Additives add up to the cost. If the group wants to put additives to the feeds in order to boost health and growth, there are varieties available in the market for hog consumption.

Income The table below is an example projection of income per month. This method is for passive income generation and may change due to actual farm conditions. Some of the prices are based on the market value and some are hypothetical in manner.

The gains may vary depending on the number of hogs vs the number of months raising the hogs. Other products are not yet stated in the table above, like processed goods and livestock. In short, if we want higher revenue, we need higher investment, and of course that’s the purpose of fund building, which is to raise the necessary fund for purchase and operations. In my opinion, it is not that bad for a start-up hog farm.

SWOT Analysis Strengths -

Exclusivity of farm land Privacy of the land Constructed piggery Availability of feeds Proximity to marketplace Expertise of the land owner Passive revenue Less labor works

Weakness -

Market competition Timeline of raising Errors and mistakes in management Hog stress

Opportunities -

Sure income Expansion and growth Continuous demand Seasonal demand By products

Threats -

Swine Flu Heat stress Feed Shortage Budget Shortage Underweight growth

“ All the above-stated ideas are subject for change and may or may not be revised depending on the inputs of other group members. Queries and suggestions are open for discussions towards the success of this new venture. Conclusions may not be formulated as of the moment, for certainties are not dictated by this document. Only God can predict tomorrow. Cheers brothers, for success is on its way, in sha allah.” -LTD JR.