Pig Business Plan

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THE BUSINESS PROFILE

Business Name ViviGold Farms Nigeria Limited

(Best producer of the only meat to meet your need)

DESCRIPTION OF MY BUSINESS

MISSION STATEMENT

To ensure effective and efficient production and distribution of meat at

affordable prices.

VISION STATEMENT

To provide top quality meat for healthy living of people all over the world. My

business is production and sales of pork and life pigs. I plan to establish a

company that will produce these pigs in commercial quantity and sell to my

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 my business is hygiene and best practices in animal

production. Pig farmers, pig butchers, wholesalers, retailers, abattoirs, meat

processing companies, food packaging companies are my target customers. My

business is positioned to take advantage of growth trends in the industry. My

most important company strengths are measurement of life pigs weight,

processing and packaging of pork, none of my products are exposed for

contamination, and best possible hygienic measures are taken. My company will

succeed because we provide the most important basic need that is protein in

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form 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.

TARGETED MARKET AND CUSTOMERS PIG BUTCHERS

In Onitsha, Nnewi, Awka, Nkpor and Oba, Anambra State are our valued

customers. These customers buy pig from farmers in the state. It is our

responsibility to locate and market our products to them.

LOCAL CONSUMER

Local consumer of pork in Onitsha, Nnewi, Awka, Nkpor and Oba, Anambra

State will be encouraged through proper marketing technique using our point on

purchase sales outlet. These consumers buy pork in the market for consumption.

Through proper marketing strategy, these customers will be encouraged to buy

our products Pig farmers in the statewho need boar, piglets or sows are our targeted

customers. They may want to buy a boar, piglets or in- sows (pregnant pigs) for

their farms. All pig farmers in the state will be located and visited and how to

sell products to them when they need them will be strategized.

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WHOLESALERS AND RETAILERS OF PIG IN THE STATE

Wholesalers and retailers of pig in the state are our valued customers. They buy from

farm and resell to the butchers and consumers. They will be searched and

located and their contact kept in our record. They will be contacted when they

need any product.

PUBLIC MARKETS

Public markets are places where our customers may want to come and buy our

product. Sellers of pork are also our targeted customers.

ABATTOIR AND MEAT PROCESSING COMPANIES

Abattoir and meat processing companies are our targeted market. Our product will be

sold to them for further processing.

FOOD PROCESSING AND PACKAGING COMPANIES

Food processing and packaging companies like UAC foods and other food packaging

companies in the state, eateries, restaurants and hotels are also our targeted

customers. These companies will be encouraged to put pork in their menu, and

will be sold to customers. A very good marketing strategy will be employed

Growth Trends in this Business.

Comparative statistics puts Nigeria’s total meat production at more than 110

million metric tons/year, resulting in a meat production index of 22g per caput

per day (Ademosun, 2010). In fact, the Food and Agricultural Organization of

the United Nations (FAO) quarterly bulletin of statistics reported that there is a

greater output of meat from pigs (63.9 million metric tons/ year) than the

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combined output of meat from cattle, buffalo, sheep and goats (58.9 million

metric tons/year) in Nigeria. Local pig farmers hold greater percentage of the

market share. When I start my business, I plan to take more than 50% market

share in the long run because I will employ the latest production technique more

than the local farmers. All the pig farmers are my targeted customers because of

the production technique in artificial insemination in pig production to be used.

I plan to be a major factor in the market.

Demand for meat has risen more than five-fold in the past 50 years in Nigeria, according to

the FAO. The FAO said that it believes that the rapid growth of developing economies

suggests meat consumption will continue to grow and outpace the growth of supply.

The growth trends on the market is seriously increasing rapidly and more

consumers preferring to eat pork because it is affordable and readily available

upon increase production. However products in the market are not packaged and

I will take advantage of this. We will introduce product packaging to increase

product development. The pig industry can be a very reliable one due to certain

attributes of pigs and the Nigerian production system. Pigs have a high survival

rate and also have the ability to utilize a host of agro- industrial bye products

and crop residues with little or no processing and minimal cost. Pork is the most

popular meat consumed in the world today and about 44% of the world meat

protein consumption is derived from pork and pork products (FAO, 2004)  

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PRICING POWER

My method of setting prices is based on weight of my life pigs and pork. For

my business, my pricing policy is higher than that of my competitors because I

am starting. I will increase quality of my products and use this to sell my

products to my targeted customers. My price will be fair and I will compete on

quality. My company will charge fifteen thousand naira for 100 kilogram of life

pig. Our processed one kilogram of pork will go for four hundred naira. Price is

important in this market but my customers mostly make their purchase decision

on quality. This is my pricing power.

THE VISION AND PEOPLE

The Vision Managing ViviGold Farms Nigeria Ltd has been a dream I have

conceived for long and it is definitely a  profit making business (from market

research) I have an undoubting zeal and passion for. My days as an

undergraduate, from 2006 till date, have given me the privilege to run and

manage Benco Pig Farm, a family pig farm. It has given me the needed

technical experience. My training in the National Youth Service Corps

Millennium Development Goals War Against Poverty (NYSC/MDGs WAP)

program, 2011 on Animal Husbandry and Youth Enterprise with Innovation in

Nigeria (YouWin) on Business Management and Planning has given me the

needed basic skill and training on improved technology and entrepreneurial skill

needed to run this business successful and profitably and have the realism to

make inevitable hard choices. With continuous training and re- training on

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business skills and entrepreneurship, I will grow this business to compete

internationally and also extend my tentacle to other agro based enterprises.

The People Work Experience Organization Position Nature of Work Duration

Benco Pig Farm Manager Production 2006 till date

Computers

I plan to buy two (2) standard Dell laptops mini of 500GB of hard disk, 4GB

ram, 3.0 GHz of processor speed. I will also by 3 in 1 printer. The printer will

print, photocopy and scan. Computer tables will be bought for both the laptop

and general work table in the administrative building. Budget for Computers

and its accessories

Computers Quantity

Unit Price (Naira)

Total (Naira)

Dell Inspiron mini 2 60, 000 120,000

Hp Inject printer….

 1 60,000 60,000

HP inject printer 1 25, 000 25, 000 Total 205, 000

Internet

I plan to buy two Etisalat modems with sims. Etisalat will be my internet

providers. Budget for Internet access.

Internet access Quantity Unit Price (Naira) Subscription/month (Naira) Subscription/year

(Naira) Total (Naira)

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Etisalat Modem 1 6,000 2,500 30,000 38,500

Business Organization

I plan to form a Private Limited Liability Company for my business. It is my

intention to grow ViviGold Farms Nigeria Ltd into a large firm with

international standard and relationships. The initial and ongoing cost of

operating as private limited liability company will be a necessary business

expense. Also, since a properly run private limited liability company will afford

me limited liability, I feel this is the right form of business for me. I intend to

depend on my attorney to handle all aspects of setting up the limited liability

company and maintaining proper company records.

Management

I will manage the business on a day to day basis. My experience in managing

my father’s pig farm will be brought to this business. With my management

team and me as managing director, we will grow this business and provide jobs

to many Nigerians. There is a plan for continuation of the business if I am dead,

or incapacitated. I can be replaced by the owners of this company. Working

hours will be from 8am to 4pm every day from Monday to Friday except for

security agents who will work all day and night.

Personnel

• Number of employees: 8

• Type of labor (4 skilled, 4 unskilled, and 8 professional).

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They are owners of the Private limited liability company. This is to encourage them to put in

their best and ensure business successes.

• I will employ young graduates. I will pay them very well. I will train them and

increase their salary.

• Quality of existing staff is high. This is because I will ensure that best hands

are employed.

• Pay structure: I will pay twenty thousand to young youths who are

unemployed when starting the business. This salary structure will increase after

one year to a standard compared to the one paid by good companies.

I believe in paying my workers well so that they are motivated.

• Training methods and requirements. My workers will be trained. The cost will

be the cost of doing business.

• The job descriptions for employees will be drafted.

Professional and Advisory Support

• Board of directors: Production Manager, Marketing Manager and

Administrative Manager which are part of the owner of the Private Limited

Liability Company.

Licenses

My company will apply for all necessary licenses. I plan to register the

company immediately the company is empowered. I plan to complete tax

registration forms and get a tax identification number. I will pay myself salary,

pay payroll taxes, company tax and formalize my business with the government.

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I will consult my professional consultants on how to acquire these licenses. I

will ensure that the following requirements are achieved.

• Licensing and bonding requirements

• Permits

• Health, workplace, or environmental regulations

• Special regulations covering my industry

ESTIMATED PURCHASE AND SALE OF 200 PIGS AT DECEMBER

I started with 200 pigs. 150 are piglets and 40 sows and 10 boars are purchased.

I plan to purchase 150 piglets at N4,000 each. I will purchase 150 piglets at

N600,000. The 50 pigs will be purchased at N10,000 each totalling N500,000.

The total cost of 200 pigs is N500,000 + N600,000 = N1,100,000

After six months, I assume that 200 pigs will be added making a total of 400 pigs. This

assumption is based on the lowest possible birth rate on the average, a pig gives birth

three times a year with average birth rate of 10 piglets. So 40 pigs will give

birth to 40 × 3 × 10 = 1200 piglets

I assume only 200 pigs are given birth to instead of 800 piglets which is fair enough as an

estimate. At the end of the year, I assume I will sell first 200 piglets bought at N4,000 at

N15, 000 which is the least selling price possible.

ESTIMATED COST OF WAGES

Cost of labor for the four managers is N80, 000 at N20, 000 each per month.

Cost of labor for the four unskilled N40, 000 at N10, 000 each. Total cost of

labor per month is N120, 000

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