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.
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.
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.
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.
|Research and Development||$10,000|
|TOTAL START-UP EXPENSES||$248,040|
|Other Current Assets||$222,000|
|Start-up Expenses to Fund||$248,040|
|Start-up Assets to Fund||$940,400|
|TOTAL FUNDING REQUIRED||$1,188,440|
|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|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$56,400|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$1,188,440|
|Loss at Start-up (Start-up Expenses)||$137,060|
|TOTAL CAPITAL AND LIABILITIES||$1,398,400|
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:
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.
|Potential Customers||Growth||Year 1||Year 2||Year 3||Year 4||Year 5||CAGR|
|Fast Food Chains||30%||31,600||37,920||45,504||54,605||65,526||10.00%|
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
6.4 Sales Yearly
6.5 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|
|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|
|Sales of Pigs||$187,500.00||$230,550.00||$283,484.28|
|Processed & Packaged Meat||$425,000.00||$522,580.00||$642,564.37|
|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|
|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|
|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.
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
|Year 1||Year 2||Year 3|
|Sales & Marketing Manager||$30,250||$33,275||$36,603|
|General Farm Manager||$30,500||$33,550||$36,905|
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
|Year 1||Year 2||Year 3|
|Current Interest Rate||8.12%||8.20%||8.26%|
|Long-term Interest Rate||8.40%||8.44%||8.47%|
8.2 Break-even Analysis
|Monthly Units Break-even||5340|
|Monthly Revenue Break-even||$132,500|
|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|
|Direct Cost of Sales||$492,500||$574,255||$639,146|
|TOTAL COST OF SALES||$492,500||$574,255||$639,146|
|Gross Margin %||65.44%||67.23%||70.33%|
|Sales and Marketing and Other Expenses||$145,000||$148,000||$156,000|
|Total Operating Expenses||$549,950||$591,275||$642,508|
|Profit Before Interest and Taxes||$382,550||$586,650||$872,827|
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
|Pro Forma Cash Flow|
|Cash Received||Year 1||Year 2||Year 3|
|Cash from Operations|
|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|
|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|
|SUBTOTAL CASH SPENT||$69,000||$74,520||$80,482|
|Net Cash Flow||$21,000||$23,000||$25,000|
8.5 Projected Balance Sheet
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$1,000||$1,000||$1,000|
|TOTAL CURRENT ASSETS||$282,000||$315,840||$355,004|
|TOTAL LONG-TERM ASSETS||$24,400||$27,328||$30,744|
|Liabilities and Capital||Year 4||Year 5||Year 6|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$19,000||$21,280||$23,919|
|TOTAL LIABILITIES AND CAPITAL||$300,000||$329,280||$370,440|
8.6 Business Ratios
|Year 1||Year 2||Year 3||INDUSTRY PROFILE|
|Percent of Total Assets|
|Other Current Assets||2.11%||2.34%||2.59%||2.40%|
|Total Current Assets||149.80%||151.00%||152.00%||158.00%|
|Percent of Sales|
|Selling, General & Administrative Expenses||93.56%||96.09%||98.78%||97.80%|
|Profit Before Interest and Taxes||41.50%||42.62%||43.81%||33.90%|
|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.|
|Accounts Receivable Turnover||7.7||7.8||7.8||N.A.|
|Accounts Payable Turnover||15.6||16||16.3||N.A.|
|Total Asset Turnover||2.5||2.5||2.6||N.A.|
|Debt to Net Worth||-0.04||-0.03||-0.04||N.A.|
|Current Liab. to Liab.||1||1||1||N.A.|
|Net Working Capital||$244,000||$257,664||$272,093||N.A.|
|Assets to Sales||0.85||0.87||0.89||N.A.|
|Current Debt/Total Assets||1%||0%||0%||N.A.|
- 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!
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