Business on pigs: where to start and how to make a business plan

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When deciding to start breeding pigs as a business, do not think it will be easy. Although, indeed, pig breeding, compared with the content of cattle and small ruminants, is simpler, the yield is greater. However, it has pitfalls and nuances that must be considered. This industry is characterized by large cash investments at the initial stage. In a good business plan, everything should be taken into account: premises, feed, veterinary services, number of employees, documents and taxes.

Why pigs are the best option

So, if you view the pig industry as a business, where to start and how to succeed, we will tell in detail.

Growing pigs for meat is not without reason considered one of the most profitable forms of animal husbandry. There is always a demand for any parts of pig carcasses, and their prices are stable and quite high.

The productivity of piglets is not tied to the time of year, so the income from them can be obtained continuously. Competently making a business plan, breeding pigs can be made very profitable. Consider the benefits of this activity.

First, almost all carcass is used in pigs. Slaughter yield is up to 95%, but even if you have it lower, 75-80% is still more than when breeding cattle or sheep.

Secondly, the pigs are fertile. They give birth at a time 10-12 pigs. A healthy sow can produce offspring 2 or even 3 times a year. This is also incomparable with other popular farm animals, which bring, at best, several heads of young animals per year.

Thirdly, the pigs were swift. They grow quickly and gain weight. In just a week, a newborn piglet almost doubles its mass. After 6-7 months, he will already weigh 100 kg - the amount with which the animal is considered mature economically. By the intensity of development, pigs are also ahead of sheep and cows.

What you should think about starting your own business

It is not necessary to immediately open a large pig-breeding complex for several hundred or thousands of pigs. You can start with a pork mini-farm. But in any case, the business will need:

  • rent premises, land for a pig farm (if you do not own);
  • be registered;
  • hire staff;
  • buy food;
  • purchase pigs;
  • buy household equipment, equipment, stationery, etc.;
  • find ways to market pig products.

All of this should be reflected in your pig farm business plan. It is also necessary to prepare for the fact that the breeding of pigs does not immediately begin to bring a large income. But it's not scary. It will take time to get the job done. The main thing is to calculate everything in advance.

If your farm will contain more than 100 pigs, it is better to register as an individual entrepreneur. About small enterprises at home from scratch, read the article "Pig-breeding - business at home."

We make an enterprise development plan

We start with a business plan. Below we will tell about it, but the example will be generalized. The amounts of costs and profits for each breeder can be different.

A summary of the business plan of the pig farm is attached. It indicates the goals of your undertaking and the amount of investment in it. In order to write about what you are going to make a profit, specify what exactly it is: sales of meat, young pigs, and so on.

Also, the objectives will be to meet the demand of buyers for pigs or their meat, high profitability of the farm. Next, specify the amount of money you intend to invest, their source is a bank loan, own funds. Do not forget that you can get a subsidy from the state to open a pig farm, equipment.

The content of the business plan should include a detailed description of the markets for pigs or their meat: indicate how you are going to sell products - sell them through networks, sell them to individuals, other agricultural enterprises.

Write to whom and what you are going to sell. For example, pork meat, lard will be bought by people in the market, and pig manure will be farmers.

If you want to open a smokehouse, shop, where produce semi-finished products, or other related production, write about it.

Market situation, competitiveness

Be sure to do a market analysis. Growing pigs as a business is popular, and you need to evaluate all aspects of the matter.

Although the food embargo made it possible for Russian agricultural producers to develop, competition was not too weak. The demand for pig meat remains high at all times, even in a crisis, but when analyzing "rivals", take into account not only pig producers. The main competitor of pork in the market is chickens, and the demand for them is growing.

Of the benefits, we note the rapid growth of the pig industry. Since 2013, pork production in Russia has increased by 26%. In 2017, our country ranked fifth in the world in the export of pig meat. At the same time, domestic demand is not 100% satisfied, so the way is open for novice pig producers.

What can make life difficult for you? In the first place - animal diseases such as African swine fever or salmonellosis. There is always a threat from the monopolists, and taxes also add hassle. Possible risks also need to be considered in the business plan.

Premises for pig farms, cost, requirements

To do business on pigs, it will take a lot of space, and not any, but corresponding to strict parameters.

Premises of pig farms should be located outside the city or village, away from water bodies, have a suitable area. You can rent the buildings of old pig farms, a building plot or build a farm on your own land for your money. Rental of premises for pigs may cost differently, depending on the area and condition. Building from scratch is more expensive, but it's easier to do everything as it should.

Construction and equipment of a pig farm for 200-300 heads will cost approximately 2 million rubles. For planning the area we take 2.5 square meters. m per adult pig. On each head of young stock - from 0.6 to 1 square. m. From the main equipment will need feeders, drinkers, manure removal system. Mandatory good ventilation system and heating.

In addition to the pigsty, we need a storage for feed, a shed for tools. You will also need a small truck and a tractor (in the amount of 400-500 thousand rubles) for the transport of pigs and their meat.

You can order the construction of a pig farm turnkey, but it is expensive. Complex area of ​​1200 square meters. m will cost 12-15 million rubles.

The choice of technology animals

Before you open a pig farm, you should choose a technology for growing pigs which your company will adhere to and specify it in the business plan. There are three recognized in the world: Danish, three-phase, Canadian.

When Danish pigs are in the machines that make up the sector. In each sector there are baths and a manure cleaning system. Sows and piglets are kept separately. The vet examines the livestock every day. Such a system is suitable for any animal, regardless of age and breed. It also allows you to achieve a good sanitary situation without much effort.

Canadian technology is almost the opposite. Pigs are kept in a large hangar, which they freely walk. Access to food and water is constantly provided. This allows you to keep several hundred piglets in a relatively small area.

True, all pigs must be the same age. The essence of the technology is that one batch of young animals is grown, given for slaughter, then a new one is purchased. Being a pig farmer, using such a scheme is quite beneficial.

The three-phase method is less productive than the previous two, but it is widely distributed in Russia. It lies in the fact that at first the piglets are kept with the sow, then they are fed for rearing, then for fattening. The downside is that pigs experience stress and inconvenience, “roaming” from one situation to another, which means they gain weight less.

Employees and salary costs

In the business plan for growing pigs you need to specify who you are going to hire and what wages. First you need the following staff.

A pig breeder is a person who feeds animals, monitors their well-being, the condition of the premises, is engaged in sending pigs for slaughter, weighs them. These workers may be several. Let's say he will have a salary of 15 thousand rubles.

Zootechnician - a specialist in breeding pigs. It controls reproduction, the mode of maintenance of the grown farm, introduces new methods, selects animals according to different parameters, and takes account of their productivity. Salary - 20 thousand rubles.

Veterinarian - monitors the health of adult pigs and piglets, preventive measures, holds them. Responsible for sanitary and veterinary examination. Salary - 25 thousand rubles.

Handyman - helps everyone a little. Salary - 12 thousand rubles.

Accountant - will conduct business related to finance. To list taxes, salary, contact with customers, suppliers, to make different reports. Salary - 20 thousand rubles.

This is the minimum list. The role of the manager can take on. The number of employees and salaries depend on you, we cited all amounts as an example. However, in any case, the salary you need about 1 million rubles a year with the most modest state.

Select breed, purchase animals and feed

There are many breeds of pigs. They differ not only in an exterior, but also an economic orientation. There are sebaceous breeds (black big, Berkshire), bacon (landraces, Vietnamese, Mirgorod, tamorsy), grease and meat (white big, petren, barbecue, dyurok).

Therefore, starting to breed pigs, it is necessary to immediately determine which breed will form the basis of your farm. For the first time, buy 300-400 heads, of which 15 are sows, 1 is a boar, and the rest are piglets.

It is better to choose a company where you will take young animals in advance, finding out as much about pigs as possible. Piglets should not be related, otherwise they will develop poorly and will not give good offspring. Remember that buying a young is an investment.

When choosing a breed, be sure to consider its adaptability to the climate of your region. This is very important - pigs adapted to the heat will not be able to live in the northern areas and vice versa.

Another golden rule: never save on feed. The slightest lack of nutrition in pigs immediately affects all livestock. There are diseases, weight gain, and even death of pigs. Today's gain tomorrow will result in a financial collapse, so animals - especially piglets - need to be fed as best as possible.

In a month for feed for 350 pigs you will need about 160 thousand rubles.

Documents for discovery, taxation

Pigs as a business will require the creation of a legal entity or individual entrepreneur. More profitable last and simplified tax system.

First of all, when starting your business, contact the tax office so that you are registered as an individual entrepreneur or a legal entity. Then you will need to get permission from the labor inspectorate, GPN (State Fire Supervision) and from the sanitary and epidemiological station. If you are going to build a pig farm, you will need to order the design and estimate documentation, obtain an authorizing administrative decree from the local authorities.

On the communication, open personal accounts, pay state fees. If the land or premises of the pig farm are leased, issue the appropriate agreement. Also for pig farms it is necessary to pass the sanitary and veterinary examination and have a license confirming the quality of products obtained from pigs. The license and examination are ordered after the launch of the pig complex.

Results: financial justification, profitability

For business on pigs, the business plan should include an analysis of the future work of the enterprise, financial justification of the project. Taking the approximate amounts of expenses and incomes, we will try to calculate how much money will be needed if we open a pig farm for 350 animals and how much it will bring.

  • proceeds from the sale of products - 650 thousand rubles per month;
  • staff salary - 125 thousand rubles (based on the fact that you have 2-3 laborers and the same number of pig producers);
  • utility payments - 30 thousand rubles;
  • stationery, fuels and lubricants, etc. - 25 thousand rubles;
  • insurance payments - 38 thousand rubles;
  • taxes - 17 thousand rubles;
  • feed for pigs - 160 thousand rubles.

The total profit of the pig farm will be 250 thousand rubles per month.

All this with the indication of the cost of production you bring to your plan for breeding pigs. It is easy to calculate that using a pig farm as a business and in the case of stable income it will pay off in 3.5 years.

If you have experience starting a pig-breeding complex, tell us about it in the comments.

Do not forget to like if the article was useful for you.

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