PIGGERY BUSINESS IN UGANDA

By: wmutenza0 comments

Introduction

This business idea is for rearing pigs. aimed at production and sale of 360 pigs annually. The revenue potential is estimated at US $ 86,850 per year with a profit margin of 75%. The total capital investment for the project is US $ 11,900 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 sell. Pigs also reproduce so you don’t have to buy more piglets.

Scale of Investment

Capital Investment Requirements in USD
Capital Item Units Qty @ Amount
Wheel Barrows No 5 30 150
Spades No 40 5 200
Piglets No 25 50 1,250
Piggery Shade No 1 10,000 10,000
Feeding Troughs 25 12 300
Total 11,900

Production and Operating Costs in US $

Item Units Unit cost Qty per/ day Pdn Cost/ day Pdn Cost/ month Pdn Cost/ Year1
Direct costs3:
Feeds Bags 2 0 0 608 7,296
Animal
Drugs 0 0 0 23 276
Other Feeds 0 0 0 42 504
Sub-total 840 8,076

General costs (Overheads)

Labour 400 4,800
Utilities 100 1,200
Administrative expenses 100 1,200
Depreciation (Asset write off) Expenses 496 5,950
Sub-total 1,096 13,150
Grand Total 1,936 21,226
  1. Production is assumed for 365 days per year.
  2. Depreciation assumes 2 year life of assets written off at 50% per year for all assets.
  3. Project product Costs and Price Structure in US $

 

Item Period Out put Unit Cost Unit Price TC Total Revenue
Pigs 6mnth 195 109 150 21,226 29,250
Pigs 1 yr 360 59 160 21,226 57,600
TOTAL 86,850

Profitability Analysis Table

Profitability Item Per day Per Month Per Year
Revenue 238 7,238 86,850
Less: Production and Operating Costs 58 1,769 21,226
Profits 180 5,469 65,624

Sources of supply of equipments

All equipments and raw materials can be got in Uganda.

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 demand for pork high.

Risk:

The animals are prone to diseases such as swine fever that need close monitoring by a Veterinary expert.

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