KYAMBOGO

UNIVERSITY

FACULTY OF ENGINEERING
DEPARTMENT OF MECHANICAL AND PRODUCTION
ENTREPRENEURSHIP SKILLS
BUSINESS PLAN PRESENTED BY;
1. AKATWIJUKA OSBERT
15/U/200/EMD/GV
2. RUTAREMWA ALEXANDER 15/U/7243/EMD/PD
3. NSEMERIRWE JOHN
15/U/209/EMD/GV
4. SSEKIWERE GEOFREY
15/U/211/EMD/GV
5. KISEKKA DICKSON
6. KULUBYA MARTIN
15/U/7267/EME/PE
7. MWIRUGAZU JOSEPH
8. GYAGENDA YOWERI
9. WAMALA ANDREW JUNIOR
10.SEKIDE HOOD

TUKWATANISE PIGGERY FARM

LOCATION: KIREKA ,KAMPALA

TELEPHONE: 0783469909/0772454683
EMAIL ADDRESS: Tukwatanisepiggeryfarm@gmail.com

TABLE OF CONTENTS

EXECUTIVE SUMMARY................................................................................................. 5
1.1 Business Overview............................................................................................ 5
1.2 Financial Overview............................................................................................ 5
GENERAL COMPANY DESCRIPTION..............................................................................6
Company Ownership............................................................................................... 6
Motto....................................................................................................................... 6
Vision....................................................................................................................... 6
Business Objectives................................................................................................. 6
Mission of the farm.................................................................................................. 6
Address................................................................................................................... 7
Contact Information................................................................................................. 7
PRODUCTS AND SERVICES.......................................................................................... 7
MARKET ANALYSIS...................................................................................................... 8
Background to the market:...................................................................................... 8
MARKET TRENDS..................................................................................................... 9
Competitive Comparison:........................................................................................ 9
MARKET STRATEGIES............................................................................................... 9
Product and pricing strategy.............................................................................. 10
Distribution and promotion strategy..................................................................10
Challenges facing the piggery farm.......................................................................10
MANAGEMENT AND ORGANISATION.........................................................................11
Management team................................................................................................ 11
MANAGEMENT SALARIES....................................................................................... 11
Organizational structure........................................................................................ 11
START UP EXPENSES AND CAPITALISATION FOR TUKWATANISE PIGGERY FARM........13
FINANCIAL PLAN....................................................................................................... 14
Projected Income statement.................................................................................14
CASH ANALYSIS..................................................................................................... 15

OPERATIONAL PLAN.................................................................................................. 16
ANALYSIS OF ENVIRONMENTAL FACTORS..................................................................17
Strength................................................................................................................ 17
Opportunities........................................................................................................ 17
Weakness.............................................................................................................. 17
Threats.................................................................................................................. 17
1.6 Exit Strategy.................................................................................................... 18
APPENDICES............................................................................................................. 19

EXECUTIVE SUMMARY
1.1 Business Overview
Tukwatanise Piggery farm is a new business offering piggery products such as pork, fat oil and
manure among others.
We are to locate the farm in kireka 1.6km off Jinja road. We hope to build up a loyal following
by providing only the freshest products in time using a mobile van.
We will source all our feeds from local providers such as weeds, poultry droppings and maize
seeds among others from local providers.
We will prepare the products on farm, thereby ensuring our customers receive the freshest
products possible.
By focusing on particular local people keeping pigs, we hope to create a good relationship with
these local producers to give our products a unique feel.
We have forecasted to achieve an annual net profit of 43060000 Ugandan shillings by the end
of Year 1. Year 2 is forecast at 43060000Ugandan shillings, and year three at 43060000
Ugandan shillings. All from an initial plan investment of 157,258,700 Ugandan shillings.

1.2 Financial Overview

By looking to expand the business by approximately 5% per month, we have forecasted strong
sales in the first year, following by improving this into years two and three.
Sales for Year 1 are forecasted at 151,000,000 Ugandan shillings.
This is based upon slowly developing the business by capturing additional customers each
month. These forecasted figures are based on the propensity to buy in the area, whilst including
other factors such as the footfall on the main high street and being able to capture customers
from our competitors.
Even by Year 3 we are well below saturation point in terms of number of customer transactions
per month, and feel that even Year 1 could be relatively conservative.
By the end of Year 3 we are expecting sales for the year to be 151,000,000 Ugandan shillings
with Net Profit of 43,060,000 Ugandan shillings.

GENERAL COMPANY DESCRIPTION

Company Ownership
Tukwatanise piggery farm is owned by ten people. They include Akatwijuka Osbert, kisekka
Dickson, Gyagenda yoweri, wamala Andrew, Ssekiwere Geofrey, Ssekide Hood, Kulubya martin
, Nsemerirwe John, Rutaremwa Alexander, and Mwirugazu Joseph. It is a joint venture and each
person has an equal share in the business and liability.

Motto
Quality assurance

Vision
Providing quality products at affordable price

Business Objectives
Short Term
Our aim is to try and grow the business by approximately 5% each month, achieving total sales
by the end of the first year of 30million Ugandan shillings.
This equates to selling 100kg of pork, 15 jerry cans of fat per day, for 12 months.
Medium Term
For years 2 and 3, we plan on continuing to grow the business by 5% per month.
Look to start up a pork joint by the end of the second year.
Expand to neighboring parts in the region.
Long Term
Following successful expansion in the local region, we would look to expanding to additional
municipalities and towns.

Mission of the farm

To ensure continued reduction in levels of malnutrition, poverty, and unemployment problems
which are common in the neighbouring areas and generally in Uganda.

Address
We intend to locate the farm in kireka a suburb in Kampala city, 1.6km off Jinja
road highway. This location is not close to residential areas in the town. This will also help us
to transport our raw materials and feeds from agro based companies in the area. This is to
prevent residents from complaining of the noise of the animals. This location is good for
expansion because there is vast area of land available. When customers come to our location, it is
convenient for parking. It is competitively located. There are two nearby pig farms in the area.
This is good because they are also my target customers and we can co-operate. The location is
very close to our market and also very close to the raw material sources especially agro based
industries.

Contact Information
Email: Tukwatanisepiggeryfarm@gmail.com
Tel: 0783469909/ 0752454683/0772454683/0700436308
For more information you can reach us at our offices at the above address.

PRODUCTS AND SERVICES

The products are pork and animal fat oil. The farm will distribute these products
around Kampala city areas including restaurants, pork joints, takeaways,
hotels, schools, clubs, catering businesses and supermarkets. To ensure the
quality we shall always take high care of our pigs. The manure as a bi product shall be sold to
the neighbouring crop gardens to improve crop yields.

MARKET ANALYSIS
Background to the market:
The market comprises of both low and high income earners. The changing
trends and development in consumer behavior and buying habits, for
instance many reduce the consumption of red meat due to health reasons;
this is the key to the growth rate of market. Therefore it is important to note
that the market size is quite large. Piggery is quite a famous business that
allover Uganda there is market for pork/bacon and fat oil. The business is so
blessed with a vast number of market places, most of the biggest places
include; Serena hotels five start restaurant where I have always watched
corporates rapidly emptying the bacon dish during breakfast, Quong Xing
where shredded dry pork with onions is favorite lunch order, Emin Pasha
Hotel where bacon is a main part of the popular seven deadly sins most
served breakfast dish, Arirrang Korean Restaurant where shizziling pork, a
dish served on its frying pan while still blazing is an interesting dinner order,
Nakulabye and wandegeya towns near Makerere where droves of students
and young corporates alike never stop filling up the pork joints every evening
, Hakuna Matata Hotel where pork is the most loved dish and it is sold as
nyama choma with spicy stew, which makes it ideal mostly for football fans
during weekends while watching their premier league games. All these are
places where we can supply our pigs of different types depending on the
brand required. With research we discovered that the Landrace type has a
very good daily gain and high lean meat content ideal for pork and bacon
and this is the brand served at Emin Pasha Hotel.
Large white brand is very prolific with good mothering ability and it is also
served to daily customers as pork and bacon. Duroc type is very suitable for
anything from light to heavy pork production. Hampshire produces lean meat
in abundance and comparatively produces more meat than all other brands
and therefore it is ideal for nyama choma.

Pork can also be served to local butchers for sell to daily low earning
customers who buy for their families. . Specifically there is a high demand for
pork for home consumption during festivals like Christmas, New Year, and
Easter.
Research has also shown that low earners who enjoy pork are found roaming
around the local bars, gulping down plateful of pork and cutting bottles
Supplying pigs to super markets like Nakumatt, Uchumi, Capital shoppers,
Tuskys, Game, Mega standard is also a target as this can favour and boost
the expansion of our business. Such places have a large number of
customers.

MARKET TRENDS
We h a v e a h i g h p r o s p e c t o f s u c c e s s , a n d t h e r e f o r e w e n e e d t o c o n d u c t
c o n t i n u o u s market research by following;

Competitive Comparison:
The competitors are quite many in the area but most of them are on small
scale. Therefore they are likely to negatively respond to this business
venture.
With regard to our research, we have noticed that many of our competitors
lack proper managerial skills hence end up over capitalizing the business.
There are a number of weaknesses we have realized amongst our
competitors therefore if we can work towards them, we believe we can gain
a competitive advantage over them.
Given the fact that most of the competitors are on small scale, there is
inconsistence in the service and product provision, so we strongly believe
that we can highly compete with them.

Poor customer services, unreasonably high prices and weak promotional

strategies plus many more weakness amongst our competitions.

MARKET STRATEGIES
Under this Tukwatanise piggery farm shall undergo the following;
Product and pricing strategy

We intend to sell out the piglets to other farmers and grown ones to the
different pork joints plus fat oil produce to various customers.
Provide hygienic and nutritious feeding that may help to attain distinguishable quality factors
like color and test of meat.
Relatively to our customers, we also intend to charge slightly lower prices
and discounts so as to attract customers therefore; price reducing will be
used to establish prices.
Distribution and promotion strategy

We intend to use direct supply of distribution of the product to the customers

and so we will not need intermediaries.
The promotional strategy as a way of approach to informing the customers
about the products, advertising messages will be used brochures, business
cards and networking which will include;
Creating a better relationship with our competitors. In a long run sales
promotion and media will be used for advertisement.

Challenges facing the piggery farm

High incidences of diseases which affects the productivity.

There is a need to improve the quality of the produce.

Low quality agricultural inputs like fake vaccines and feeds which find their
way to the market. It is a challenge for farmers to determine good quality
inputs from counterfeits.

Difficulty to access credit by farmers due to the lack of local credit unions, as
well as difficulties for creditors to assess credit risks of individual farmers.

Weak farmers' organizations lead to an inefficient market chain where the

producers cannot sell collectively and need middle men.

The farmers do not have enough market knowledge to be an active partner in

the negotiations.

MANAGEMENT AND ORGANISATION

Management team
The management team includes share holders in this business. They are
Akatwijuka Osbert, kisekka Dickson, Gyagenda Yoweri, wamala Andrew, Ssekiwere Geoffrey,
Ssekide Hood, kulubya martin, Nsemerirwe John, Rutaremwa Alexander, and Mwirugazu
Joseph.
The key management positions in this business include the managing director, legal
officer, veterinary doctor, accountant, and the sales manager. Since these positions
are ethical in business therefore. For one to qualify must qualify must hold a
bachelors degree in that particular field with minimum experience of two years in
the related job. This further analyzed below using a core team matrix.
Key management personnel
Position
Managing director

Skill
Management and
leadership skill

Veterinary doctor

Technical skill

Financial manager

Transparency and
networking skill
Martial art and technical
skills

security personnel

Background/experience
minimum experience of
three years experience as
managers
Minimum experience of
one years as a senior
veterinary doctor
Must have a CPA
certificate
Minimum experience of
three years in any security

related job. An army

background will be of an
added advantage

MANAGEMENT SALARIES
TITLE
Managing director
Human resource officer
Veterinary Doctor
Financial manager

MONTHLY
REMUNERATION
650000
500000
350000
450000

Organizational structure

ANNUAL
REMUNERATION
7800000
6000000
4200000
5400000

Board of
Directors
Managing
Director

Veterinary Doctor

Financial Manager

Sales
representative

Human Resource

General workers

The company requires a board of directors composed of professionals in the

different fields in order to drive the company to achieve its set goals and objectives.
The company will have a managing director who has an experience of three years in
rearing pigs and has a rich leadership background. His role as the managing
director is to strive to achieve the set goals within the specified period of time and
to help the company grow and expand.
Managing Director

The director will be responsible for the coordination of the different departments
and to make major decisions concerning the growth and daily operation of the
company.
He will be the chairman all meetings in the company.
Veterinary Doctor
He will be responsible for the treatment of all the pigs on the farm. He will also
advise on the feeds to be given to the pigs for their healthy living.
Financial Manager
He will be the head of all accounts department. He will be in charge of all cash
inflows and outflows in the company.
He will also be responsible for remuneration of the employees in the company.
Human Resource Manager
He is responsible for the recruitment of workers into the farm.

START UP EXPENSES AND CAPITALISATION FOR

TUKWATANISE PIGGERY FARM
Investment Structure
ITEM
Land
Buildings
purchase of 2 months piglets
Expenses on farm tools and

AMOUNT(SHS)
5000000
40858700
2500000
1500000

accessories
pre-operative expenses
TOTAL CAPITAL EXPENDITURE
Working capital
TOTAL INVESTMENT

1500000
51358700
105900000
157258700

Working capital structure

ITEMS
Feeds

PERIOD
12mont

AMOUNT(SHS)
79440000

Labor expenses

hs
12mont

21960000

Drugs and vaccines

hs
12mont

1800000

Water supply system

hs
12mont

600000

Other expenses

hs
16mont

2100000

hs
TOTAL WORKING CAPITAL

105900000

FINANCIAL PLAN
The farm is seeking shs.157258700 in both short-term and long-term loans and from personal
savings of share holders to finance the purchase of the land and other facilities, and cover startup expenses. It is estimated that the company will begin to make a profit in Year 1 of operations.
The company does not expect to have any cash flow problems during the first three years of
operations.

Projected Income statement

Income
year

1st year

3rd

Live pig Sales

20000000

Pork sales and fat oil

126000000

Manure

5000000

5000000

5000000

Total income

151000000

151000000

151000000

Expenses

20000000

2nd Year

126000000

20000000
126000000

Feeds

79440000
2500000
2500000

79440000
Purchase of 2 months piglets
2500000

Labor expenses
21960000
Drugs and vaccines

79440000

21960000

21960000

1800000

1800000

1800000

2100000

2100000

2100000

Total expenses
107800000

107800000

107800000

Net income before tax

43200000

Tax

100000

100000

100000

Depreciation

40000

40000

40000

Net income

43060000

43060000

43060000

Other expenses

43200000

CASH ANALYSIS
Particulars
Costs:
Capital cost
Recurring Costs:
Land and building
Cost of piglets
Cost of feed
Labor
Drugs and vaccines
Other expense
Total
Benefits
Sale of manure
Sale of pork and fat oil
Sale of live pigs
Depreciation
Tax
Total benefit

Year 1

Year 2

Year 3

157258700

45858700
2500000
79440000
21960000
1800000
2100000
153658700

0
2500000
79440000
21960000
1800000
2100000
153658700

0
2500000
79440000
21960000
1800000
2100000
153658700

5000000
126000000
20000000
40000
100000
151140000

5000000
126000000
20000000
40000
100000
151140000

5000000
126000000
20000000
40000
100000
151140000

OPERATIONAL PLAN
An operational plan refers to a specific plan for the use of the organizations
resources in pursuit of the strategic plan. It contains details of specific activities and
events to be undertaken to implement strategies.
Its purpose is to provide organization personnel with clear picture of their tasks and
responsibilities in line with the goals and objectives listed within a strategic plan. It
is a management tool that facilities the condition of the organizations resources
(human, financial, physical) so that goals and objectives in a strategic plan can be
achieved.
Company summary
The idea behind the business is to provide health pigs and deliver nice products to
the public. On addition to pigs and their products, the company plans to market pig
waste as manure in gardens.
The reared breeds shall be Duroc, Hampshire, large black, large white, landrace,
Tamworth
Strategy and implementation summary
The piggery company strategy is to profitably and efficiently utilize present and
future agricultural technology in the piggery industry.
The company by acquiring exiting profitable pork joints with all the necessary
custom-innovated equipment will gain a significant industry advantage.
Addition application and utilization of machinery in the rearing of pigs will ease work
and also reduce expense on labor.

ANALYSIS OF ENVIRONMENTAL FACTORS

This mainly includes SWOT analysis and can be briefly stated as follows;

Strength

Produce high quality pork and fat oil

Improved infrastructure systems
Favorable market system
Piggery is an environmentally friendly project.

Opportunities

Our type of product delivery is unique to the area.

There is a large volume of passing trade since most people in the region are not Muslims.
Setting up of more institutions like hotels and super markets in the area.
There is a good road network to facilitate easy delivery of our products.
There are a number of maize millers which is a source of feeds.
Enough space for expansion.

Weakness

Capital intensive. Starting a piggery business requires a large capital

funding.
Disease outbreak like swine fever can ruin entire business in a short
time
Noise and smell from the sties

Threats

There are other beef seller in a radius of 200 meters away

Disease out break
We need to ensure that we can deliver on quality and price every time, as this is the main
focus of the business.

1.6 Exit Strategy

Best case
As mentioned in the Business Objectives, our overall intention is to make this outlet successful,
add an additional pork joints in the region, and then look to expanding to other towns.
Assuming the continued success of Tukwatanise piggery farm, we will be looking to appoint a
managing director and take a back seat in the day to day running of the business.
Worst case
If we fail to reach our sales targets for the first year, then the viability of the business model must
be questioned. Activities will be monitored closely on a daily basis.
We will review the sales and profit monthly, and conduct our first serious review of the position
in sixth month. If we are significantly under target at that point we should re -examine our
publicity and marketing. If changes made at this point do not bring the company into profit by
the end of the first trading year, then we will cease trading.
Outstanding debts at this point should be minimal

APPENDICES
Appendix 1
Piggery facility
The farm will construct 2 blocks, the first one will have 10Fatterning pens and
the
Second will have 10 Farrowing pens plus 2 Boar pens. Each pen will measure
4x6
Feet, hence the 1st block will measure 40 x 6 feet and the 2nd will measure
48 x 6 feet.
There will be a store and office measuring 12x6 feet and should be attached
to the
first block. The labor line will be made of four rooms, 2rooms for the
Manager, one room for the
Store keeper and one room for general purpose
The farm will construct a disposable pit measuring 10 x4 x3 feet. To each
piggery
Sty there will a urine collection facility measuring 2 x 2x 2feet and made of
Concrete. The perimeter fence will measure 0.5 acres. The Piggery buildings
are
estimated to cost Shs 40,858,700.

Appendix 2

Summary for the buildings expenses

Block 1

113810

Block 2

00
129670

Labor line

00
103572

Disposable pit

00
300000

Toilet

147950

Fencing

0
387400

Site preparation
TOTAL

0
500000
408587
00

Appendix 3
Common Breeds of Pigs reared
Breed

features

Berkshire

A black and white animal with

erect ear.
must have white on all four
legs, face and tail

Tamworth

Face slightly dished, wide

between the ears
Golden-red, abundant, straight
and fine and as free from

Appearance

black hairs
Large Black

Solid Black snout to tail

Large lop ears covering the
eyes
Long straight face and snout
Long deep bodies

Landrace

white in color , ears droop and

slant forward with its top
edges nearly parallel to the
bridge of a straight nose,
noted for their ability to
farrow and raise large litters

Hampshire

Erect ears, Black in color with

a white belt totally encircling
the body

Duroc

His ears are droopy, covering

the eyes. He is big boned and
stands with his feet firmly
planted.