Introduction
This business idea is for rearing pigs. aimed at the production and sale of 360 pigs annually. The revenue potential is estimated at NGN36m ($94,489) per year with a profit margin of 75%. The total capital investment for the project is NGN 1.68m ($4406) and the payback period is almost 5 months. The business risk involved in this idea is the high rate of infection, which spreads quickly among the animals. However, this can be mitigated by increasing the animal’s resistance e.g. by improving the quality of feeds.
Technology and processes description
The items needed include shelter, feeds, piglets, water, feeding troughs, and animal drugs. The pig rearing process involves feeding them very well, cleaning the pen, monitoring the health of the animals, and have them grow to the weight of 80Kgs and above to be ready for sale. Pigs also reproduce so you don’t have to buy more piglets.
Scale of Investment
| Capital Investment Requirements (CBN Exchange rate – $1 to 380) as of 26 Oct, 2020 | ||||
| Capital Item | Qty | Cost/unit (NGN) | Amount in (NGN) | Amount in (USD) |
| WheelBarrows | 5 | 15000 | 75,000 | 196.85 |
| Spades | 40 | 1500 | 60,000 | 157.48 |
| Piglets | 25 | 40,000 | 1.000,000 | 2624.67 |
| Piggery Shade | 1 | 200,000 | 200,000 | 524.93 |
| Feeding Troughs | 25 | 13,750 | 343,750 | 902.23 |
| Total | 1,678,750 | 4406.17 | ||
Production and Operating Costs
| Item: Direct costs | Pdn Cost/ month | Pdn Cost/ Year1 (NGN) | Pdn Cost/ Year1 (USD) |
| Feeds | 200000 | 1,200,000 | 3149.61 |
| Drugs | 8763 | 105,156 | 276. |
| Sub-Total | 1,305,156 | 3425.61 |
General costs (Overheads)
| Cost/ Year1 (NGN) | Cost/ Year1 (USD) | |
| Labour | 1,200,000 | 3149.61 |
| Utilities | 320,000 | 839.90 |
| Administrative expenses | 150,000 | 393.70 |
| Total | 1,670,000 | 4383.21 |
Production is assumed for 365 days per year. Depreciation assumes 2-year life of assets written off at 50% per year for all assets
Project product Costs and Price Structure
| Item | Period | Output | Unit Price (NGN) | Total Revenue(NGN) | Total Revenue(USD) |
| Pigs | 1 year | 360 | 100,000 | 36,000,000 | 94,489 |
Profitability Analysis Table
| Profitability Item | Per Year (NGN) | Per Year (USD) |
| Revenue | 36,000,000 | 94,489 |
| Less: Production and Operating Costs | 4,653,906 | 12214.99 |
| Profits | 31,346,094 | 82273.21 |
Sources of supply of equipment
All equipment and raw materials are readily available in most African states.
Market Analysis
The structure of the pig market is wide throughout the year in butcheries as pork is popular among the public. There are several pork joints in the city and upcountry making the demand for pork high.
Risk
The animals are prone to diseases such as swine fever that need close monitoring by a Veterinary expert.
