PROJECT PROPOSAL

NEMROD PIGGERY
INTRODUCTION

NEMROD PIGGERY is a pig production project run by Mr Nemrod Dube. He has the responsibility to
manage and run the corporation smoothly. The pig production and processing plant is established in
land rented by the project owner. The core business will be rearing of pigs, processing and packaging
of meat. The capital (USD$ 6 693.50) to start the business is required and (USD$1 693.25) has so far
been raised by the project owner and he currently require seed funding of (USD$5 000.00).

BUSINESS OVERVIEW

Our Products and Services

NEMROD PIGGERY is a pig farming business fully committed to operating the business while
conforming to the Zimbabwe laws. The project focuses on the rearing and sales of pigs, and the
processing and packaging of meat for consumption. The following are the services we will focus on in
the course of running our pig farming business:

i. Sales of pigs.

ii. Breeding services.

iii. Sales of processed and packaged meat.

Vision Statement

The vision of NEMROD PIGGERY is to be recognized as world class pig production business in
Zimbabwe with a global reach

Our Mission

Our mission in the pig production industry is to become the best brand in Zimbabwe and beyond
that sells quality pigs, together with processed and packaged meat and other meat products that
offer value for money.

Our intent is to grow our business to the level where it would compete amongst the leading pig
farming business in Africa and we will penetrate global markets in America and Asia

1.2.1.3 Business structure

NEMROD PIGGERY is owned and managed by Mr Dube. The managing director position will be held
by one of the member and the term of office will be three years.

The project will employ a diversified team of employees who are loyal, skilled and experienced. All
the employees will be hired on the basis of merit and have a passion in pig farming. The key
employees who are driving the pig farming business are the Farm Manager, Finance and
Administration Manager, Production Supervisor, Sales and Marketing Strategist, Information
Manager and General Workers.
INDUSTRY OVERVIEW

There are uncertainties that come with pig farming, as such we would need to insure our
investments with a local and credible insurance company. Our insurance plan will cover all our pigs
processing plant, and farm buildings. Our plan will cover pig deaths and injury caused by diseases,
drought, and floods.

Our pig farm and processing plant will be about 90 km along the Bulawayo-Kezi road and this
location convenient because we are located very close to both input and output markets. Our
location is important to us and customers because it reduces transportation costs. Furthermore, the
farm is located in a region where rainfall is high making it suitable to grow crops which can be used
in feed formulation. In addition, the farm is located away from residential areas hence there will be
no complaints from residents relating to noise pollution by the plant and animals. The farm is
relatively big for the project and there is more space for expansion if need be.

CHALLENGES

Our business is likely to face the following challenges:

i. Feed shortages due to drought leading to an increase in prices of feed

ii. Drop in volume of business we get from surrounding pig/goat farms

iii. A major customer cancels a contract to buy our products.

iv. One of our processing machines might go down

v. Our cash flow projections are not realized.

vi. Failure to manufacture feed to supplement what we buy because of unavailability of cereals.

vii. Shortage of labor due to on-going illegal mining activities in the area

The company’s policy in dealing with the above challenges is to be always monitoring the operating
environment in order to identify problems as early as possible. The following plans will be followed
in handling the threats:

i. Feed shortages due to drought leading to an increase in prices of feed: we have to enter into
contracts with our key suppliers of feed so that even if there are shortages, we will still get our

ii. A major customer cancels a contract to buy our products: We should always be looking for
markets especially international markets

iii. One of our processing machines might go down: we need to ensure that our machines are
services on a regular basis to avoid unnecessary breakdowns.

iv. Our sales projections are not realized: we have to employ cost cutting measures so that we
remain in business and do further analysis to find out the causes of failing to meet projections.

vi. Failure to manufacture feed to supplement what we buy because of unavailability of cereals:
Since we have plenty of water at our farm and some idle land, from now going into the future we
need to grow our own crops which we will use in the production of feed.
viii. Shortage of labor due to on-going illegal mining activities in the area: we need to offer
employees better packages so that they do not run away to do illegal gold mining in the area
and also need to engage with employees on a regular basis to find out about their concerns.

SALES AND MARKETING STRATEGY

For our pig farming business to make substantial profits and survive the prevailing harsh
macroeconomic conditions as well as ensure business growth, the following marketing strategies will
be put in place:

i. We have adopted social media marketing wherein we are using WhatsApp, Facebook, Twitter
and other social media platforms to market our products.

ii. We are working on an e-commerce website to market our products.

iii. We will employ marketing officers who distribute company fliers in and around town as a way
of marketing our products.

iv. We will advertise our business and products in food-related and agro-allied magazines,
reputable newspapers, and radio and television stations.

v. We will use database and email marketing where we send promotional messages to key
customers in our database through email.

vi. We will use SMS marketing in which we send SMS messages to our key customers reminding
them about our products.

MARKET ANALYSIS

In Zimbabwe at the moment, most farmers are growing pigs together with poultry and some crops.
The crops are being used in own-feed formulation. Furthermore, most small holder farmers are
growing pigs and selling them as live animals or they slaughter and sell meat. There are very few
small holder farmers who are doing value addition Due to support pig farmers are getting from
NGOs, the pig farming business is now growing and the supply of pigs, meat and related products is
on the increase. There is still market for the products even though the prices are depressed. Some
farmers are adopting Artificial Insemination in order to improve genetics and hence the quality of
pigs and products which will eventually go to the market.

GROWTH TRENDS

With the support from government and NGOs, the production and consumption of meat and meat
products have risen rapidly in Zimbabwe and we expect to see this upward trend

TARGET MARKET

Currently, we are targeting all people regardless of age and race. More specifically, our target
customers include:
 i. Any Zimbabwean farmers who need pigs are our targeted customers.

ii. Consumers in the surrounding areas can buy meat and related products through our factory
shop.

iii. Wholesalers and retailers of meat in Bulawayo are our valued customers. They buy meat
and related products from us and resell to the butchers and consumers.

PRICING STRATEGY

Our pricing strategy will be based on the live weight of our pigs and meat. The price of all products
sold at our factory shop will be 5% less than the price of products delivered to customers to take into
effect transport costs. The same 5% discount will be given to wholesalers. Our price will be fair and
we will compete on quality. Our company will charge USD$ 300.00 for 100 kilograms of live pig .Our
processed one kilogram of meat will go for USD$ 3.00.

Price is important in this market but my customers mostly make their purchase decision on quality.
This is our pricing power.

MARKETING PLAN

• In Bulawayo we shall use personal selling wherein our marketing officers will move door to
door marketing our products to butchers, pig farmers, wholesalers, retailers, and
restaurants.
• Promotional messages about our products are going to be communicated through our
product package and this will give us a competitive advantage because most competitors
do not sell packaged products.
• In our farm factory shop, we will have in-store displays of our products.
• We will use brand ambassadors to help raise brand awareness and increase sales
 Farm open days will be used to promote our products. We will invite the public to our farm
so that we showcase our products to them

 Our product will be weighed and sold on scale with increase customer services.

 SMS messages and emails will be sent to key customers on a regular basis reminding them of
the need to buy our products.

 If our marketing tactics arouse the interest of some customers, then we will sell to the
customers directly. We have opened a factory shop at our farm where customers can come
and

 buy products but if customers want us to deliver products, we can do so at an extra cost of
transport.

ADVERTISING AND PROMOTIONAL LAN

It is our company policy that we always employee university graduates for all posts except for
general workers whom we except to have some qualification in animal husbandry and a wealth of
experience in working on a farm. In addition to that, our company will offer on-job training to
employees especially on new technologies new ways of growing pigs, new genetics, new feed
formulation approaches and so on. These trainings will be conducted twice per year, one at the
beginning of the year and another one at the end of the year.

PURCHASING AND INVENTORY CONTROL

• For inventory control, we will ensure that we have enough feed to take us for a month and
we need to place orders about two weeks before the feed is finished. This will ensure that we always
have a steady supply of feed. We will always buy our feed in bulk to enjoy bulk discounts.

6.3 • Concerning finished products, we will ensure that a month before our pigs
mature, we have already secured a market because once they mature, they must
be offloaded otherwise we incur unnecessary costs of feeding or keeping them. In
addition, we will slaughter pigs just-in-time when the customers want the meat
and we will package products such that they leave the shop as soon as possible for
we do not want our products to occupy a lot of shelf space.
• The market prices of goats/pigs are going to be stable over the five year planning period

• The market for pigs/goats will always be available when the goats/pigs are ready for the market

• The pig/goat farming business is going to continue operating for the five year planning period
and even beyond.

COMPETITORS

Dimension JUBILEE PIG FARMS BK PIG FARMING GREENSIDE FARM

BK Pig Farming A pig-rearing farm
Company profile Founded in 2010 and is into pig farming
Zimbabwe is a group focused on the sale
and selling of meat
of farmers sharing of pork
resources,
knowledge and skills
to grow their pig
businesses
Key competitiveadvantage They have entered into backward They are more They are both
focused on producers and
integration with one of the industry’s key
harnessing the distributers, cutting
feed manufacture power of synergy the supply chan
efforts hence short
operating on large
scale and maximizing
on economies of
scale
Target market Wholesalers Wholesalers Consumers

Market share 30% market share 10% Market Share 10% Market Share

Marketing strategy Supply only to major wholesalers and Maximize on

pushing volumes
Abattoirs at prices lower than ours

Products and services Meat Meat, Inputs Meat

Pricing $2.60/ kg $3.50/kg $ 5.00/kg

Distribution channels They use mainly wholesalers Wholesalers, agents Retail Butcheries
SWOT ANALYSIS

Opportunities Threats

i. government support for exporters ofmeat i. high inflation rate

ii. unstable currency
iii. cheaper imports from China
Strengths SO ST

i. world-class Develop high-quality products for the export i. Reduce the effect of inflation by producing
breeding market by using world-class breeding and products which track inflation
ii. skilled & skilled and experienced staffand then take ii. Reduce the effect of currency instabilityby
experienced advantage of the export support from the using adopting a stronger currency like
staff government USD$
i. high feed costs the company will have to take advantageof iii. Do deal with cheaper imports, we will
iii. inadequate the government support to deal with the use our skilled and experienced staff and
capital problem of high feed cost and lack of world-class breeding to produce high-
quality products to compete with
capital but will then have to produce for the
imports from china
export market

A. overcome weaknesses by making them

strengths (move towards OS strategy)
• to reduce feed cost, the company should
consider making its feed
• to deal with inadequate capital the
company can enter into contract farming
with major wholesalers
 B. Possible options
• The company should consider entering
into a joint venture with the Chinese
Company bringing cheaper imports
• Look for other markets where
competition is not tense and maybe
locate to other areas where the
competition from Chinese products
will not be much

FINANCIAL PLAN
ESTIMATED COST OF BUILDING 10 PENS
 FEED COST DURING FIRST YEAR OF OPERATION

Item Unit price Quantity Total

To build ten pens, one can use about 2 cubic metres of ¾quarry 30 2 60
stones for floor concrete

For 10 by 10 size of a pen, one pen needs two bags ofcement for 8.15 20 163
floor concrete.

Plaster (one pen will take one bag of cement and 10 penstake 10 8.15 10 81.5
bags)

labour charges for building pens (one pen is charged 14 10 140

$14.00)

labour charges for plastering (one pen is charged $14.00) 14 10 140

Block for the ten pens. To build ten pens, it takes 1, 600 blocks 8.15 40 326
which means 40 blocks per one bag of cement. So40 bags of
cement are required

About 20 cubic metres of sand is required for moulding ofthe 1, 13 20 260

600 blocks

Cost of moulding the 20 cubic metres of sand with the 40bags of 5 40 200
cement is $5 per bag of cement

Labour for moulding 140 1 140

To lay the 1600 block by the bricklayers will be 4 days job ofa 19 4 76
bricklayer, the cost of day work for a bricklayer is $19.

The roofing of the ten pens. The roof will use 10 bundles ofzinc 5 10 50
which cost $5 each.

Timber for wall plate and roofing of the ten pens is 100pieces at 8 100 800
$8 each

Nail, tying wire and other miscellaneous 50 1 50

Labour for roofing 50 10 500

The total overhead cost of ten pens is 2986.5

The total cost of building fifty pens will be 2986.5 5 14932.5

The estimated cost of building two offices 1 2000 2000

The total cost of building 16932.5

 Kgs of feed per

Total Feed (kg)

day per animal
Description

Month Days

cost of feed

Comment
number of

Total cost
animals
Month

per kg
January 2 pregnant 3 31 2 0.50 186 93.00
sows

February 2 pregnant 3 29 2 0.50 174 87.00

sows

March 2 pregnant 3 31 2 0.50 186 93.00

sows

April 2 pregnant 3 30 2 0.50 180 90.00

sows

May 2 lactating 3.5 31 2 0.50 217 108.50 Each sow

sows delivers 12
piglets

24 piglets - 0.25 31 24 0.50 186 93.00 b1y1 - batch 1

b1y1 of year 1

June 2 lactating 3.5 30 2 0.50 210 105.00

sows

24 piglets - 0.25 30 24 0.50 180 90.00

b1y1
 Kgs of feed per

Total Feed (kg)

day per animal
Description

Month Days

cost of feed

Comment
number of

Total cost
animals
Month

per kg
July 2 pregnant 3 31 2 0.50 186 93.00
sows

24 piglets - 0.5 31 24 0.50 372 186.00

b1y1

August 2 pregnant 3 31 2 0.50 186 93.00

sows

24 piglets - 0.95 31 24 0.50 706.8 353.40

b1y1

September 2 pregnant 3 30 2 0.50 180 90.00

sows

24 piglets - 1.5 30 24 0.50 1080 540.00

b1y1

October 2 sows 3 31 2 0.50 186 93.00

24 piglets 2 31 24 0.50 1488 744.00

November 2 lactating 3.5 30 2 0.50 210 105.00 Each sow

sows delivers 12
piglets
24 piglets - 2.5 30 24 0.50 1800 900.00
b1y1

24 piglets - 0.25 30 24 0.50 180 90.00

b2y1

December 2 lactating 3.5 31 2 0.50 217 108.50

sows

24 piglets - 2.5 31 24 0.50 1860 930.00

b1y1

24 piglets - 0.25 31 24 0.50 186 93.00 Number 0

b2y1 sold

Total 10356.8 5178.40 Sales $0

revenue
AFTER YEAR ONE WE HAVE

2 sows ready to conceive equivalent to 2*$380 =$760.00

24 weaned piglets ready for sale or on-growing equivalent to 24*$30 =$720.00

All these will be raised to maturity.

ACTIVITY

24 mature gilts weighing over 120kg either to be sold or be used for breeding purposes equivalent to
24*$190 = $456.00.

19 will be sold for 19*$190 to wholesalers) and 5 left to breed. If we add value, a kg can go for not
less than $3.25. Assuming each of these pigs has about 80kg of flesh, then 80*$3.25 = $260 earned
from each pig. This totals to a value of = $4940.00
ANALYSIS OF SECOND YEAR OF OPERATION

Number of animals

Unit cost of feed

Days in a month
Kgs of feed per

Total Feed (kg)

day per animal
Description

Comments
Total cost
Month

per kg
January 7 pregnant 3 31 7 0.50 651 325.50 19 Sold and left 5 for
sows breeding

24 piglets 0.5 31 24 0.50 372 186.00 b2y1 - batch 2 of

- b2y1 year 1

February 7 pregnant 3 29 7 0.50 609 304.50

sows

24 piglets 0.95 29 24 0.50 661.2 330.60

- b2y1

March 7 pregnant 3 31 7 0.50 651 325.50

sows

24 piglets 1.5 31 24 0.50 1116 558.00

- b2y1
 Number of animals

Unit cost of feed

Days in a month
Kgs of feed per

Total Feed (kg)

day per animal
Description

Comments
Total cost
Month

per kg
April 7 pregnant 3 30 7 0.50 630 315.00
sows

24 piglets 2 30 24 0.50 1440 720.00

- b2y1

May 7 lactating 3.5 31 7 0.50 759.5 379.75 deliver 12 piglets

sows each

84 piglets 0.25 31 84 0.50 651 325.50

b1y2

24 piglets 2.5 31 24 0.50 1860 930.00

- b2y1

June 7 lactating 3.5 30 7 0.50 735 367.50

sows

84 piglets 0.25 30 84 0.50 630 315.00

b1y2

24 piglets 2.5 30 24 0.50 1800 900.00

- b2y1

July 9 pregnant 3 31 9 0.50 837 418.50 sold 22 and left 2 for

sows breeding

84 piglets 0.5 31 84 0.50 1302 651.00

b1y2

August 9 pregnant 3 31 9 0.50 837 418.50

sows

84 piglets 0.95 31 84 0.50 2473.8 1236.90

b1y2

September 9 pregnant 3 30 9 0.50 810 405.00

sows

84 piglets 1.5 30 84 0.50 3780 1890.00

b1y2

October 9 pregnant 3 31 9 0.50 837 418.50

sows

84 piglets 2 31 84 0.50 5208 2604.00

b1y2
 Number of animals

Unit cost of feed

Days in a month
Kgs of feed per

Total Feed (kg)

day per animal
Description

Comments
Total cost
Month

per kg
November 9 lactating 3.5 30 9 0.50 945 472.50 have delivered 12
sows piglets each

84 piglets 2.5 30 84 0.50 6300 3150.00

b1y2

108 0.25 30 108 0.50 810 405.00

pigletsb2y2

December 9 lactating 3.5 31 9 0.50 976.5 488.25

sows

84 piglets 2.5 31 84 0.50 6510 3255.00

b1y2

108 0.25 31 108 0.50 837 418.50 Number 41

pigletsb2y2 sold

Total 38061.80 19030.90 Sales $10660.00

revenue

AFTER YEAR 2

The total feed for year 2 $19030.90 and the weight of the feed is 38061.80.2 kg or 38.1 tonnes

Stock at the end of year 2 is

 9 lactating sows

 84 gilts which are 7 months old

 108 piglets which are 2 months old

Total revenue obtained from sell of pigs 41*$260 = $10660.00

 Month on month sales forecast for the pig production business (5 YEARS)

Total
Year

Aug
May
Mar

Nov
Feb

Jun
Apr

Dec
Sep
Jan

Oct
Jul
Sale of 1 0.00
mature
goats

Sale of 2 800.00 800.00 1600.00

mature
goats

Sale of 3 800.00 800.00 1600.00

mature
goats

Sale of 4 800.00 800.00 1600.00

mature
goats

Sale of 5 800.00 800.00 1600.00

mature
goats
INCOME STATEMENT FOR THE PIGGERY PROJECT

Year 1 Year 2 Year 3 Year 4 Year 5

Revenue from sales of pigs

Sales 0 10660 48360 64220 102960

Less sales returns and 0 0 0 0 0

allowances

Less sales discounts 0 0 0 0 0

Net Sales 0 10660 48360 64220 102960

Cost of Pigs Sold

Opening Stock 0 0 0 0 0

Land Purchases 814.554 814.554 814.554 814.554 814.554

Protective Equipment 2.716 2.716 2.716 2.716 2.716

Pig Pens 54.304 54.304 54.304 54.304 54.304

Security Fence 38.012 38.012 38.012 38.012 38.012

Treated Gum Poles 8.146 8.146 8.146 8.146 8.146

Pregnant Sows 86.886 86.886 86.886 86.886 86.886

Piglets 54.304 54.304 54.304 54.304 54.304

Net Purchases 1058.922 1058.922 1058.922 1058.922 1058.922

Goods available for sale 1058.922 1058.922 1058.922 1058.922 1058.922

Less closing stock 0 0 0 0 0

Cost of goods sold 1058.922 1058.922 1058.922 1058.922 1058.922

Gross profit -1058.922 9601.078 47301.078 63161.078 101901.078

Gross profit margin 0 90 98 98 99

Operating Expenses

Vaccines and drugs 27.15 162.91 162.91 162.91 162.91

Labour 651.64 651.64 651.64 651.64 651.64

 Year 1 Year 2 Year 3 Year 4 Year 5

Stationary 5.43 5.43 8.15 8.15 8.15

Supplies 2.72 2.72 5.43 5.43 5.43

Advertising and promotion 0 0 0 0 0

Feed 5178.4 19030.9 42500.25 59092.35 77782

Total Operating Expenses 5865.34 19853.6 43328.38 59920.48 78610.13

Income from operations 0 0 0 0 0

Other expenses

interest expense 0 0 0 0 0

Net income -6924.262 -10252.522 3972.698 3240.598 23290.948

ASSUMPTIONS OF THE FINANCIAL PLAN

 The prices for all inputs will be relatively stable over the five year planning period
 The market prices of goats/pigs are going to be stable over the five year planning period
 The market for pigs/goats will always be available when the goats/pigs are ready for the market
 The pig/goat farming business is going to continue operating for the five year planning period and
even beyond.

CONCLUSION

The business plan for NEMROD PIGGERY presented in the forgoing section gives the background
information about the business and its management structure. Furthermore, the plan gave a sales
and marketing strategy, SWOT and Competitor Analysis. The plan ended by presenting a financial
plan which covers financial statements such as the income statement, balance sheet and cash flow
analysis.