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SEPT.15, 2020

Pig Farm Business Plan Template

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Pig Farm Business Plan Template

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Table of Content

    Pig farming business plan for starting your own business

    Pig farming is a profitable business and a trendy and lucrative business in America. Pork has been a vital part of the American diet for many years. To help you understand how to start a pig farm business, here we provide a business plan for pig farming used by Ben’s Heritage Farm. It is pretty similar to a cattle farming business plan.

    If you are making a business plan for a pig farming business yourself, you can take help from this sample as well as the ones available on the web. However, it is recommended to hire a professional business plan writer for getting an accurate business plan developed. It is because strategic and operational plans involve such complexities that can be hard for an inexperienced person to assess.

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    Executive Summary

    2.1 About the Business

    Ben’s Heritage Farm is a pig farming family business registered with the relevant authorities in the United States. The business will be established in Iowa, United States. The pig farming business will be situated in one of Ben’s landed properties in Iowa. It is a vast piece of land where we can rear our pigs and piglets and install our processing plant. The business will be concerned with the rearing of pigs and piglets and the processing and packaging of pig meat.

    If you are planning to have a similar business model and are confused about how to put up a piggery business, this sample can help. 

    2.2 Management of pig farming

    Before you start pig farming business, it is essential to ensure that all aspects of your business plan on pig farming are coherent. A well-developed strategic business plan can help get funding from potential investors as well. 

    A piggery business plan is similar to a poultry farming business plan. It is advised that you analyze a few relevant business plans to get some insights.

    2.3 Customers of pig farming

    According to this pig farming business plan sample pdf, Ben’s Heritage Farming targets the following customer groups in Iowa:

    • National Supermarket Chains
    • Fast Food Chains
    • Wholesale Distributors
    • General Public

    2.4 Business Target

    Our mission in the industry is to become the number one reputable brand in Iowa that sells pigs and piglets, processed and packaged pork, and other pig products. We want to establish our business to the level where it would compete among the leading pig farming businesses in the United States.

    Pig Farming Business Plan - 3 Years Profit Forecast

    Franchise Business Plan
    Helps the franchisee get business case approval from the franchisor

    Company Summary

    3.1 Company Ownership

    Ben Hardy would be the CEO of the business and with his wife, Martha Hardy, as co-manager. Martha will bring her veterinary knowledge to the company, and she will hold key positions in the first few years of the business. We will employ qualified employees to fill in the required positions in due time. 

    3.2 Business History

    Pigs have fast growth rates and good feed-to-meat conversion ratios. They are also relatively easy to raise, do not require much space, and have prolific breeding potential. To capitalize on these factors, Ben and Martha decided to use their lands and dive into a starting piggery business.

    3.3 How pig farming will be started 

    Step1: Plan Everything

    It would help if you started planning while deciding how to start a pig farm business. Given that commercial pig farming is an old business, there is tons of research material that you can analyze. It will help you plan and see if you have enough resources to meet requirements for the piggery business. 

    Step2: Branding

    Ben and Martha decided to be different to define their brand in an exclusive way. Raising animals with care and love is something that will define their brand. This piggery business plan pdf emphasizes abiding by all sorts of regulatory laws with respect to raising cattle with care.

    Step3: Establish Your Corporate Office 

    Ben’s Heritage Farms will have an office beside the farmland for direct supervision. This is to ensure the quality standards are met and everything is done as per the pig farm business plan.

    Step4: Web Presence

    These days, online presence is imperative for a business’s success. Digital transactions is a preferred mode of payment these days. For this very reason, Ben’s Heritage Farm will have a website with details of the services and options for online payments and bookings.

    Step5: Promote and Market

    The last step is developing and executing a marketing plan to promote your services. To make your pig farm business successful, you must employ marketing strategies that complement your business objectives. This business plan for pig farming pdf has documented detailed marketing strategies that helped Ben and Martha boost their sales.

    Pig Farming Business Plan - Startup Cost

    Start-up Expenses  
    Legal $115,600
    Consultants $0
    Insurance $26,540
    Rent $36,100
    Research and Development $10,000
    Expensed Equipment $56,400
    Signs $3,400
    TOTAL START-UP EXPENSES $248,040
    Start-up Assets $222,400
    Cash Required $245,600
    Start-up Inventory $39,000
    Other Current Assets $222,000
    Long-term Assets $211,400
    TOTAL ASSETS $940,400
    Total Requirements $1,188,440
    START-UP FUNDING
    Start-up Expenses to Fund $248,040
    Start-up Assets to Fund $940,400
    TOTAL FUNDING REQUIRED $1,188,440
    Assets
    Non-cash Assets from Start-up $1,201,800
    Cash Requirements from Start-up $111,600
    Additional Cash Raised $50,000
    Cash Balance on Starting Date $35,000
    TOTAL ASSETS $1,398,400
    Liabilities and Capital
    Liabilities $16,500
    Current Borrowing $0
    Long-term Liabilities $0
    Accounts Payable (Outstanding Bills) $56,400
    Other Current Liabilities (interest-free) $0
    TOTAL LIABILITIES $72,900
    Capital
    Planned Investment $1,188,440
    Investor 1 $0
    Investor 2 $0
    Other $0
    Additional Investment Requirement $0
    TOTAL PLANNED INVESTMENT $1,188,440
    Loss at Start-up (Start-up Expenses) $137,060
    TOTAL CAPITAL $1,325,500
    TOTAL CAPITAL AND LIABILITIES $1,398,400
    Total Funding $1,188,440
    Any questions? Get in Touch!

    Services of pig farming

    This piggery business plan sample lists the services Ben’s firm will provide. Going through it can help you shortlist possible options for your business.

    • Sales of Pigs

    We look forward to selling weaners and slaughtering piglets and pigs. Under this piggery project business plan, we will serve as a regular intermediary for numerous European pig farms, who will then rely on our constant supply of weaners and meat piglets. As soon as we know their requirements, we will offer them the products that are best suited to their needs.

    • Processed and packaged pig meat

    As an extension of the pig farm plan, Ben’s Heritage Farm also provides packaged meat processed in a controlled, clean environment. This product can be a great source of revenue as supermarket chains and restaurants highly demand it, hence being an integral part of our pork farming business plan.

    • Boarding Services

    Long-term boarding is now highly demanded by parents who must be away for extended amounts of time but do not wish to put their pigs up for adoption. Both indoor and outdoor boarding facilities are available for all pigs, irrespective of their age and size.

    • Breeding Services

    Because the genetics of a pig plays an essential role in its performance and meat quality, different techniques such as inbreeding, crossbreeding, and line-breeding will be a part of pig production business plan employed by Ben’s Heritage Farm.

    Marketing Analysis of pig farming 

    A small pig farm business plan is quite like an agriculture farm business plan. Before starting, you must understand the current market patterns. This pig farming business plan pdf gives detailed insights into market trends and market segmentation.

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    5.1 Market Trends

    According to IBIS, the market size of the pig farming industry is expected to go up by 3.8% in 2022. More than 60,000 pork producers annually market more than 115 million hogs nationwide. These animals provide a total gross income of more than $20 billion on average. A pigs farming business plan has a lot of potential and market demand.

    5.2 Marketing Segmentation

    While thinking, “how to start a commercial pig farm”, you must investigate your target audience. Market segmentation needs to be done before you start pig farm business operations. 

    Here we provide a sample pig farming business plan template that highlights Ben’s Heritage Farm’s target audience:

    Pig Farming Business Plan - Marketing Segmentation

    Business Plan for Investors

    5.2.1 National Supermarket Chains

    We will send a customized pig farming business proposal to all major supermarkets in the country, which will help us do business with them. As per the proposal, we’ll provide pig meat to supermarkets every year. 

    5.2.2 Fast Food Chains

    According to this sample business plan for pig farming, fast food chains are Ben’s Heritage Farming’s most prominent client. Various fast-food restaurants will procure pork from the pig farm on a contractual basis.

    5.2.3 Wholesale Distributors

    Wholesale distributors will either use our boarding facility until the pigs are slaughtered or order pork in bulk to sell it to various retailers. These distributors will use a B2B business model, commonly seen in a dairy farm business plan.

    5.2.4 General Public

    Individuals who are health conscious and do not prefer buying meat off the rack from stores are expected to visit pig farms to get their pork directly from the source. Such clients will always be welcomed at our farms and will be offered a tour of the site.

    Market Analysis
    Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
    Supermarket Chains 35% 43,600 52,320 62,784 75,341 90,409 10.00%
    Fast Food Chains 30% 31,600 37,920 45,504 54,605 65,526 10.00%
    Wholesale Distributors 23% 21,100 25,320 30,384 36,461 43,753 10.00%
    General Public 12% 26,100 31,320 37,584 45,101 54,121 11.00%
    Total 100% 122,400 146,880 176,256 211,507 253,809 10%

     

    5.3 Business Target

    • Capture 42% market share in Iowa after one and a half years of operations.
    • Expand the boarding facility by 10% within the first year of business.
    • Increase revenue generation by 25% by 2023.
    • Achieve a customer satisfaction score of 99%.

    5.4 Product Pricing

    To gain the needed customers for the first few months of our business and increase awareness, we intend to offer reduced prices for our clothing articles. The reduced prices will last three months and will only reduce our profit margin but won’t make us run at a loss. This pig farming business plan free download pdf will help you navigate various pricing strategies.

    Marketing Strategy of pig farming

    We understand most pig farming businesses fail to make substantial profits because of their inability to market their business and products. Bearing this in mind, we have come up with several marketing strategies to promote our business and products. This blog on how to run a piggery business can not only help you understand the basics of business but can also give you unique sales strategy ideas.

    6.1 Competitive Analysis

    After you have explored how to start a small piggery business, the next step is to compare your startup to that of your competitors to identify your potential. If you don’t know what can be a competitive advantage, you can see those of Ben’s farm here:

    • Martha has vast experience in pig farming, and her strong leadership skills will help to gain an edge over the competitors.
    • The introductory prices offered by the brand will be lower than the market rates without compromising the quality of services
    • Our customized piggery business proposal plans stand out in terms of customer-centric policies.
    • Our pig farm business plan pdf includes state-of-art boarding facilities that our competitors are not providing in Iowa.

    6.2 Sales Strategy

    • Introduce customer reward programs and promos to reward our loyal customers.
    • Utilize online presence for marketing purposes.
    • Listing our pig farming business in yellow pages ads.
    • Engage in direct marketing.

    6.3 Sales Monthly

    Pig Farming Business Plan - Sales Monthly

    Any questions? Get in Touch

    6.4 Sales Yearly

    Pig Farming Business Plan - Sales Yearly

    6.5 Sales Forecast

    Pig Farming Business Plan - Unit Sales

    Sales Forecast      
    Unit Sales Year 1 Year 2 Year 3
    Sales of Pigs 2,500 2,650 2,809
    Processed & Packaged Meat 3,400 3,604 3,820
    Boarding Services 500 530 562
    Breeding Services 450 477 506
    TOTAL UNIT SALES 6,850 7,261 7,697
    Unit Prices Year 1 Year 2 Year 3
    Sales of Pigs $75.00 $87.00 $100.92
    Processed & Packaged Meat $125.00 $145.00 $168.20
    Boarding Services $950.00 $1,102.00 $1,278.32
    Breeding Services $750.00 $870.00 $1,009.20
    Sales
    Sales of Pigs $187,500.00 $230,550.00 $283,484.28
    Processed & Packaged Meat $425,000.00 $522,580.00 $642,564.37
    Boarding Services $475,000.00 $584,060.00 $718,160.18
    Breeding Services $337,500.00 $414,990.00 $510,271.70
    TOTAL SALES $1,425,000.00 $1,752,180.00 $2,154,480.53
    Direct Unit Costs Year 1 Year 2 Year 3
    Sales of Pigs $25.00 $27.50 $28.88
    Processed & Packaged Meat $50.00 $55.00 $57.75
    Boarding Services $250.00 $275.00 $288.75
    Breeding Services $300.00 $330.00 $346.50
    Direct Cost of Sales
    Sales of Pigs $62,500.00 $72,875.00 $81,109.88
    Processed & Packaged Meat $170,000.00 $198,220.00 $220,618.86
    Boarding Services $125,000.00 $145,750.00 $162,219.75
    Breeding Services $135,000.00 $157,410.00 $175,197.33
    Subtotal Direct Cost of Sales $492,500.00 $574,255.00 $639,145.82

    Personnel plan of pig farming

    The average cost of starting piggery business is similar to that mentioned in chicken farming business plan.

    Note

    It is important to account for different kinds of costs in your pig business plan pdf to forecast financial returns accordingly. These costs also include the cost of recruiting and maintaining an updated workforce at all times.

    7.1 Company Staff

    As per the pig farming business plan of Ben’s Heritage Farm, the company will hire for the following positions:

    • 1 Sale and Marketing Manager
    • 1 General Farm Manager
    • 6 Field Employees
    • 2 Piggery Supervisors
    • 2 Caretakers
    • 4 Cleaners

    7.2Average Salary of Employees

     Personnel Plan      
    Year 1 Year 2 Year 3
    Sales & Marketing Manager $30,250 $33,275 $36,603
    General Farm Manager $30,500 $33,550 $36,905
    Field Employees $120,500 $132,550 $145,805
    Piggery Supervisors $67,000 $73,700 $81,070
    Caretakers $42,500 $46,750 $51,425
    Cleaners $80,000 $88,000 $96,800
    Total Salaries $370,750 $407,825 $448,608

     

    Financial Plan of pig farming

    In your financial plan, you must identify when and how to cover your investment amount with the earned profits. Moreover, you should analyze your yearly expenses to determine the possibilities of reaching an economy of scale. This information is an integral part of your business plan for piggery project.

    Developing an accurate financial plan is essential for a business. To ensure correctness, it is imperative to hire a professional financial analyst for the purpose. In case, you have a degree in business administration, you can make it yourself by analyzing the monetary plans of similar startups.

    It is good to conduct a marketing analysis beforehand to estimate how much the existing farms are currently making. The revenue generated by pig farms is similar to a goat farming business plan. But depending on your financial management, risk assessment, and proactive measure to cater to potential losses, you can earn a lot more. 

    Here we’re documenting pig farming business plan sample used by Ben’s Heritage Farms for you to use as a reference.

    8.1 Important Assumptions

     General Assumptions      
    Year 1 Year 2 Year 3
    Plan Month 1 2 3
    Current Interest Rate 8.12% 8.20% 8.26%
    Long-term Interest Rate 8.40% 8.44% 8.47%
    Tax Rate 24.03% 24.21% 24.60%
    Other 0 0 0

    8.2 Break-even Analysis

    Pig Farming Business Plan - Break-even Analysis

     Break-Even Analysis  
    Monthly Units Break-even 5340
    Monthly Revenue Break-even $132,500
    Assumptions:
    Average Per-Unit Revenue $231.00
    Average Per-Unit Variable Cost $0.62
    Estimated Monthly Fixed Cost $163,800

    8.3 Projected Profit and Loss

     Pro Forma Profit And Loss    
    Year 1 Year 2 Year 3
    Sales $1,425,000 $1,752,180 $2,154,481
    Direct Cost of Sales $492,500 $574,255 $639,146
    Other $0 $0 $0
    TOTAL COST OF SALES $492,500 $574,255 $639,146
    Gross Margin $932,500 $1,177,925 $1,515,335
    Gross Margin % 65.44% 67.23% 70.33%
    Expenses
    Payroll $370,750 $407,825 $448,608
    Sales and Marketing and Other Expenses $145,000 $148,000 $156,000
    Depreciation $2,300 $2,350 $2,500
    Leased Equipment $0 $0 $0
    Utilities $2,900 $3,000 $3,100
    Insurance $2,100 $2,100 $2,100
    Rent $2,900 $3,000 $3,200
    Payroll Taxes $24,000 $25,000 $27,000
    Other $0 $0 $0
    Total Operating Expenses $549,950 $591,275 $642,508
    Profit Before Interest and Taxes $382,550 $586,650 $872,827
    EBITDA $382,550 $586,650 $872,827
    Interest Expense $0 $0 $0
    Taxes Incurred $76,510 $117,330 $174,565
    Net Profit $306,040 $469,320 $698,262
    Net Profit/Sales 21.48% 26.78% 32.41%
    Any questions? Get in Touch

    8.3.1 Profit Monthly

    Pig Farming Business Plan - Profit Monthly

    8.3.2 Profit YearlyPig Farming Business Plan - Profit Yearly

    8.3.3 Gross Margin MonthlyPig Farming Business Plan - Gross Margin Monthly

    8.3.4 Gross Margin Yearly

    Pig Farming Business Plan - Gross Margin Yearly

    8.4 Projected Cash Flow

    Pig Farming Business Plan - Project Cash Flow

     Pro Forma Cash Flow      
    Cash Received Year 1 Year 2 Year 3
    Cash from Operations
    Cash Sales $51,000 $55,080 $59,486
    Cash from Receivables $22,000 $23,760 $25,661
    SUBTOTAL CASH FROM OPERATIONS $73,000 $79,570 $85,936
    Additional Cash Received
    Sales Tax, VAT, HST/GST Received $0 $0 $0
    New Current Borrowing $0 $0 $0
    New Other Liabilities (interest-free) $0 $0 $0
    New Long-term Liabilities $0 $0 $0
    Sales of Other Current Assets $0 $0 $0
    Sales of Long-term Assets $0 $0 $0
    New Investment Received $0 $0 $0
    SUBTOTAL CASH RECEIVED $74,000 $79,000 $85,000
    Expenditures Year 1 Year 2 Year 3
    Expenditures from Operations
    Cash Spending $42,000 $42,000 $45,000
    Bill Payments $27,000 $28,000 $31,000
    SUBTOTAL SPENT ON OPERATIONS $69,000 $70,000 $76,000
    Additional Cash Spent
    Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
    Principal Repayment of Current Borrowing $0 $0 $0
    Other Liabilities Principal Repayment $0 $0 $0
    Long-term Liabilities Principal Repayment $0 $0 $0
    Purchase Other Current Assets $0 $0 $0
    Purchase Long-term Assets $0 $0 $0
    Dividends $0 $0 $0
    SUBTOTAL CASH SPENT $69,000 $74,520 $80,482
    Net Cash Flow $21,000 $23,000 $25,000
    Cash Balance $27,000 $30,000 $33,000

    8.5 Projected Balance Sheet

     Pro Forma Balance Sheet    
    Assets Year 1 Year 2 Year 3
    Current Assets
    Cash $275,000 $308,000 $338,800
    Accounts Receivable $24,000 $26,880 $30,213
    Inventory $4,300 $4,816 $4,900
    Other Current Assets $1,000 $1,000 $1,000
    TOTAL CURRENT ASSETS $282,000 $315,840 $355,004
    Long-term Assets
    Long-term Assets $10,000 $10,000 $10,000
    Accumulated Depreciation $19,400 $21,728 $24,444
    TOTAL LONG-TERM ASSETS $24,400 $27,328 $30,744
    TOTAL ASSETS $294,000 $329,280 $370,440
    Liabilities and Capital Year 4 Year 5 Year 6
    Current Liabilities
    Accounts Payable $18,700 $20,944 $23,541
    Current Borrowing $0 $0 $0
    Other Current Liabilities $0 $0 $0
    SUBTOTAL CURRENT LIABILITIES $19,000 $21,280 $23,919
    Long-term Liabilities $0 $0 $0
    TOTAL LIABILITIES $15,000 $16,800 $18,883
    Paid-in Capital $30,000 $30,000 $31,000
    Retained Earnings $53,000 $57,770 $63,547
    Earnings $193,400 $210,806 $231,887
    TOTAL CAPITAL $285,000 $310,650 $341,715
    TOTAL LIABILITIES AND CAPITAL $300,000 $329,280 $370,440
    Net Worth $293,400 $319,806 $351,787

    8.6 Business Ratios

     Ratio Analysis        
    Year 1 Year 2 Year 3 INDUSTRY PROFILE
    Sales Growth 7.25% 8.03% 8.90% 3.00%
    Percent of Total Assets
    Accounts Receivable 9.21% 10.20% 11.31% 9.80%
    Inventory 5.39% 5.97% 6.62% 9.90%
    Other Current Assets 2.11% 2.34% 2.59% 2.40%
    Total Current Assets 149.80% 151.00% 152.00% 158.00%
    Long-term Assets 11.55% 11.60% 11.64% 12.00%
    TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 4.90% 4.94% 4.98% 4.34%
    Long-term Liabilities 0.00% 0.00% 0.00% 0.00%
    Total Liabilities 7.59% 7.65% 7.72% 7.38%
    NET WORTH 100.45% 101.25% 102.19% 110.00%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 94.60% 97.15% 99.87% 99.00%
    Selling, General & Administrative Expenses 93.56% 96.09% 98.78% 97.80%
    Advertising Expenses 1.52% 1.56% 1.60% 1.40%
    Profit Before Interest and Taxes 41.50% 42.62% 43.81% 33.90%
    Main Ratios
    Current 34 35 36 32
    Quick 33 33.8 34.645 33
    Total Debt to Total Assets 0.18% 0.18% 0.17% 0.40%
    Pre-tax Return on Net Worth 74.08% 74.89% 75.00% 75.00%
    Pre-tax Return on Assets 96.30% 101.12% 106.17% 111.30%
    Additional Ratios Year 1 Year 2 Year 3
    Net Profit Margin 33.56% 34.60% 35.67% N.A.
    Return on Equity 55.80% 57.53% 59.31% N.A.
    Activity Ratios
    Accounts Receivable Turnover 7.7 7.8 7.8 N.A.
    Collection Days 100 100 100 N.A.
    Inventory Turnover 32.4 34.02 35 N.A.
    Accounts Payable Turnover 15.6 16 16.3 N.A.
    Payment Days 27 27 27 N.A.
    Total Asset Turnover 2.5 2.5 2.6 N.A.
    Debt Ratios
    Debt to Net Worth -0.04 -0.03 -0.04 N.A.
    Current Liab. to Liab. 1 1 1 N.A.
    Liquidity Ratios
    Net Working Capital $244,000 $257,664 $272,093 N.A.
    Interest Coverage 0 0 0 N.A.
    Additional Ratios
    Assets to Sales 0.85 0.87 0.89 N.A.
    Current Debt/Total Assets 1% 0% 0% N.A.
    Acid Test 29 29.12 29.16 N.A.
    Sales/Net Worth 2.1 2.2 2.2 N.A.
    Dividend Payout 0 0 0 N.A.

    FAQ

    • How much profit does a pig farmer make?

    Generally, in the U.S. from 1 pig, you can get a net profit of $100- $500 after half a year of pig farming business depending on how you sell the pig’s meat (whether you will process its meat or not). One pound of pork is usually sold for $2-4. A pork business plan is quite promising in the U.S in terms of financial returns. 

    • Is pig farming a profitable business?

    Starting a pig farming business is a profitable business. Piggery is the most potent source of meat production among the various livestock species. Suppose you look forward to using Ben’s Heritage Farm’s business model. In that case, this pig production business plan pdf will provide you with financial estimates that clarify the profitability potential.

    • How do I start a pig farming business plan?

    To start writing your business plan, it is suggested that you do thorough research on multiple business models, visit various pig farms, and devise your marketing & sales strategies after accounting for your resources. In writing your business plan, your ambiguities regarding how to make a piggery farm will be cleared. You can also consult chicken farming business plan for greater insight.

    • How do I start a pig business?

    Estimate the type and number of customers who might buy your products to ensure that your pig unit is as successful as possible. This is particularly important if you look to add value to the animals you produce by selling directly to the public. If you plan to sell a large proportion of your product through local retailers and catering outlets, consider surveying those businesses to find out what market sector you should aim for. Talk to prospective customers to establish the type of product that is popular and you will be good to go!

    Download Pig Farm Business Plan Sample in pdf

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