Pig Farming in Nigeria: A Business Plan for Beginners

Executive Summary

Packed-Pig Ltd. is an agro-processed company that engages in the production of animal protein as a food supplement. Its products range from processed pork to manure for farmers.

According to the statistics gathered by the researcher, the demand for pork is growing daily. This growth has led to queues in the front of morning butchers who sell pork to households and small businesses. Pack-Pig processes and delivers pork to households and businesses at affordable prices.

Pack Pig Ltd. has high capacitated machines and staff that process and packages mature pig into pork. This processed pork will be delivered to businesses and identified households at the doorstep.

The market for pork is increasing daily. Households and businesses are continuously scouting for pig and pork products to meet the rising demand. We identified 3 segments of the market that will drive demand. They include the export market, business and consumer markets.

Many businesses are serving the same market. These businesses either produce piglets for resale or mature pigs for resale. With their capacity combined, they could only meet 25% of the market demand. Our areas of competitive advantage include our products, product features, size, and sales strategy.

To efficiently and effectively deliver on our promise, we have employed experienced and committed team members. Also, with my experience in leadership, haven worked with the UN for 15 years, will help us make progress.

Considering that quality is our watchword, we are seeking to purchase equipment & machinery worth N3,000,000. In general, to increase our working capital, we are seeking a loan of N20,000,000.00. Our sales forecast reveals turnover of N35,200,000, N54,950,000, and N74,575,000 for the first 3 years respectively. With estimated average yearly expenses of N28,350,000, we will be able to pay back the loan in 3 years.

Our experience in disease control helped us to keep the mortality rate at25% compared to the 55% industry average 2years ago. With our focused team who are determined to lead the pig export market, success is within the hand.

Note:

This is a sample business plan based on real business estimates on pig farming in Nigeria. You can use it as a standard to develop your plan.

Business Opportunity

The problem

According to the statistics gathered by the researcher, the demand for pork is growing daily.

This growth has led to queues in the front of morning butchers who sell pork to households and small businesses.

Also, in restaurants and hotels, demand is equally high because businesses do not have reliable supplies. Available suppliers do not process pork before delivery. This leads to businesses seeking extra hand to butcher and process into pork before they can use them.

Pack-Pig processes and delivers pork to households and businesses at affordable prices.

The solution

Pack Pig Ltd. has high capacitated machines and staff that process and packages mature pig into pork. This processed pork will be delivered to businesses and identified households at the doorstep.

Our solution will eliminate queuing in butchers’ desks, and additional employment of staff at businesses. Because of our proposed large-scale production, the prices of pork will be reduced drastically.

Target Market

The market for pork is increasing daily. Households and businesses are continuously scouting for pig and pork products to meet the rising demand.

Market research & analysis

In the past 3 months, I have been monitoring the market for pig and pork products. During this period, I realized that the demand for mature pig and pork meat has grown by 15%.

These statistics were derived from monitoring those queuing at butchers’ table and demand at restaurants.

Also, on a global scale, the market demand for pigs has been trending upward every year. This trend will continue to rise till 2024 and beyond.

This makes pig farming important and lucrative; not just for the immediate market, but for the global market.

Market segments

From the analysis, we identified the following market segments.

Export Segment: Demand for pigs is rising and production within countries is not enough to meet demand. There is an opportunity to export to locations such as Norway, China, and Canada.

Business Segment: Businesses such as hotels and restaurants are constantly scouting for a mature pig to meet customer demand. This creates a potential market for our products locally.

Households: Different households are seeking an alternative to red meat and poultry and fish products are fewer alternatives. This has increased the demand for pork among households.

TAM, SAM & SOM analysis

Our total addressable market (TAM) in this respect includes businesses and households that need pork. Because of our capacity, we shall focus on meeting demand within our state and other surrounding states.

To ensure timely delivery of products, and to avoid disappointments, our served available market (SAM) is the business segment. By serving the business segment, we shall guarantee demand.

Finally, our target share of the market (SOM) is about 65% of the business segment. We are proposing this based on our capacity and observed demand and existing businesses serving them.

Ideal and key customer

The ideal customer of Pack-Pig Ltd. is a high-class restaurant and eatery. Each business entity will have daily demand of at least 250kg of processed pork.

Our key customers include Chastity Fast Food, Maridline & Milan Restaurant, and Ugoleen Hotels & suits.

The Competition Analysis

Many businesses are serving the same market. Among these key businesses are:

1. Buchi’s farms: Pig production to maturity
2. C & C farms: Production of piglets only
3. Nnamdi’s farms: Pig production to maturity and sale of mature pig
4. Cheta’s farm: Production of pig to maturity
5. Nnego’s farms: Pig production of piglets and growers only
6. C. Amaike’s farms: Production of mature pigs
7. Okpulo’s farms: production of mature pigs only

These businesses either produce piglets for resale or mature pigs for resale. With their capacity combined, they could only meet 25% of the market demand. Also, they do not process their products, but sale to butcher directly.

Because our business is focused on processed pork, they are not direct rivals.

Competition analysis

	Pack-Pig Ltd.	Buchi Farms	C & C Farms	Cheta Farms	Remark
Location	4	4	5	2	S
Products	5	4	4	4	S
Product features (quality)	5	3	3	3	S
Price	1	1	3	1	W
Size	4	2	3	2	S
Sales strategy	5	4	4	4	S

The above factors are ranked on a scale of 1 – 5, with 5 being very important and 1 least important.

The factors depicted above are areas of our strengths and weaknesses. The only area we have a weakness is in pricing because the final price is a factor of production cost.

As shown in the table above, our areas of competitive advantage include our products, product features, size, and sales strategy.

All the competitors use a similar sales strategy, which is, selling directly to butchers. So they mostly cover the household market segment.

SWOT analysis

	Internal factors	External factors
Growth factors	Strengths 1. Product packaging 2. Customer service 3. Brand promotion 4. Size and production capacity 5. Experience	Opportunities 1. Government policy 2. Changes in taste and habit 3. Population trend & demography
Diminishing factors	Weaknesses 1. Product pricing 2. Sourcing of materials	Threats 1. Diseases & pig flu 2. Stealing & theft

With our proposed capacity, we can determine the price of products in the near future.

Our increasing experience and training will help us overcome the threat of diseases and pig flu.

We shall establish a good security outfit to protect the pigs from theft and stealing. Also, our capacity will help us to source the best breeds in the market to maximize profit.

Remember:

This is a hypothetical sample business plan based on real business estimates. You can use it as it is if you want to do exactly what it says.

Operations and Marketing Plan

Pack-Pig Ltd. produces, processes, and package pig and pig products into pork under good hygienic conditions. The products are preserved and sold to customers at affordable prices.

In a nutshell, the business operation is depicted in the BMC below.

Business Model Canvas

Operations Plan

The key operations of the business involve sourcing materials, rearing, processing, and packaging finished products.

Production

The production of our finished products undergoes the following processes:

1. Sourcing for piglets, mature pigs, and other materials for rearing and packaging.
2. Rearing of piglets to maturity based on weight (average weight is 25 – 35kg per pig)
3. Mixing of feeds, watering, and cleaning of environs
4. The butchering of mature pig (either sourced or reared)

Packaging of finished products

Remember:

This is a hypothetical sample business plan based on real business estimates. You can use it as it is if you want to do exactly what it says.