Professional Documents
Culture Documents
Business Name
G&K Piggery Farm (Best producer of the only meat to meet your need)
Description of My Business
Mission Statement: To ensure effective and efficient production and distribution of meat at
affordable prices.
Vision Statement: To provide top quality meat for healthy living of people all over the world.
Our business is production and sales of pork and life pigs. I plan to establish a company that will
produce these pigs in commercial quantity and sell to my numerous customers. We want to feed
Ghana with healthy meat and export to other countries. We will ensure that we sell the highest
number of pigs for pork in Ghana and increase production every year in other to satisfy our
customers. The most important thing in my business is hygiene and best practices in animal
production.
Pig farmers, pig butchers, wholesalers, retailers, abattoirs, meat processing companies, food
packaging companies are my target customers. The business is positioned to take advantage of
growth trends in the industry. The most important company strengths are measurement of life pigs
weight, processing and packaging of pork, none of my products are exposed for contamination,
and best possible hygienic measures are taken.
The company will succeed because we provide the most important basic need that is protein in
form of animal meat and our products are consumed daily by majority of Ghanaians. Due to the
fact that the available meats are not enough and are not of the best hygienic standard, we will
provide quality meat and make profit. With the experience, skills, and strengths of management
team and workers to be employed, we will ensure that this business grows to become a house hold
name in Ghana and a world class company.
Local pig farmers hold greater percentage of the market share. We plan to take more than 50%
market share in the long run because we will employ the latest production technique more than
the local farmers. All the pig farmers are my targeted customers because of the production
technique in artificial insemination in pig production to be used. We plan to be a major factor in
the market.
Demand for meat has risen more than five-fold in the past 50 years in Ghana, according to the
FAO. The FAO said that it believes that the rapid growth of developing economies suggests meat
consumption will continue to grow and outpace the growth of supply. The growth trends on the
market is seriously increasing rapidly and more consumers preferring to eat pork because it is
affordable and readily available upon increase production. However products in the market are
not packaged and we will take advantage of this. We will introduce product packaging to increase
product development.
The pig industry can be a very reliable one due to certain attributes of pigs and the Ghanaian
production system. Pigs have a high survival rate and also have the ability to utilize a host of
agro- industrial bye – products and crop residues with little or no processing and minimal cost.
Pork is the most popular meat consumed in the world today and about 44% of the world meat
protein consumption is derived from pork and pork products (FAO, 2004).
Pricing Power
Pricing
The method of setting prices is based on weight of the life pigs and pork. For the business, the
pricing policy is higher than that of the competitors because it is a startup. We will increase
quality of the products and use this to sell the products to the targeted customers. The price will
be fair and we will compete on quality.
My company will charge two hundred and fifty Ghana cedis (HC 250) for 100 kilogram of life
pig. Our processed one kilogram of pork will go for ten Ghana cedis (GHC10). Price is
important in this market but my customers mostly make their purchase decision on quality. This
is my pricing power.
ORGANIZATION
Business Organization
We plan to form a Private Limited Liability Company for the business, and it is our intention to
grow G&K Piggery Farm into a large firm with international standard and relationships. The
initial and ongoing cost of operating as private limited liability company will be a necessary
business expense. Also, since a properly run private limited liability company will afford me
limited liability, I feel this is the right form of business for me. .
Personnel
• Number of employees: 5
• Type of labor (3 skilled, 2 unskilled).
• Training methods and requirements. The workers will be trained. The cost will be the cost of doing
business.
Organizational chart
Managing
Director
Professional
Consultants
Laborer 1 Security 1
Laborer 2 Security 2
Licenses
The company will apply for all necessary licenses. We plan to register the company immediately
the company is empowered. I plan to complete tax registration forms and get a tax identification
number. We will ensure that the following requirements are achieved.
• Licensing and bonding requirements
• Permits
• Health, workplace, or environmental regulations
• Special regulations covering my industry
• Trademarks and copyrights
INSURANCE
Insurance
We plan to take and insurance cover under the State Insurance Company (SIC). This will cover
the livestock, farm buildings, machinery and equipment which form part of the investment on the
farm in accordance with its policy.
PREMISES
Location Criteria
Location is important to customers. This is because it will reduce the cost of transportation. It is
located along a Pokuase Medie. It will help transportation because customers will purchase life
pigs with trailers and long vehicles. 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 state.
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 my 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 my market and also very close to my raw material especially agro based industries.
Space requirements
Amount of space: a plot of land is enough for a start (100 by 70). This space will house fifty pens
of 10 by 10 feet built strategically. This will also house administrative building. The space can
house at least five hundred pigs conveniently.
Type of building: we plan to build low cost housing that will last for a long time. This is because
we don’t want to tie a lot of capital to land and building. However this is important considering
the location criteria for the business. The cost of land and construction of building is provided in
the cost analysis.
Power and other utilities: Power and water bole hole are required. The cost of sinking bore hole
and that of power are adequately considered.
S/N List of all expenses into cash flow projection/ year Cost (GHC)/year
1 Pig Feed 1,800
3 Treatment and Drugs 2,500
4 Water bole hole 5,000
5 legal Company registration 200
6 Repairs and Maintenance 1000
7 Administrative cost 2,000
8 Advertising 2,000
13 Structure 12,000
14 Pig 5,000
15 Furniture and Fixtures 50, 000
16 Insurance 1,000
17 Utilities 9,000
18 E- Commerce 2,000
TOTAL 10,789,180
Analysis of cost
(What are all my cost, fixed, variable, product, delivery etc)
ESTIMATE COST OF BUILDING FIFTY PENS (FIXED COST)
1. To build ten pens, one can use about one tipper load of stone for floor concrete, N 24,000
2. For 10 by 10 size of pen, one pen will gulp two bags of cement for floor concrete. Cost of
2 bags of cement at N3, 600. Plaster of one pen will take one bag of cement at N 1, 800.
Workmanship N2, 500
3. For ten pens to be built, it will take 30 bags of cement at N1, 800 each at N 54, 000 and
for workmanship of the ten pens it would cost N25, 000
4. Block for the ten pens. To build tens pens, it will gulp 1, 600 blocks which at 40 blocks
per one bag of cement. It will cost 40 bags of cement. At N1, 800 a bag, it would cost
N75, 000
5. The amount of sand to be used for molding of the 1, 600 blocks, will be at least 10 tippers
of sand and the cost of one tipper load sand is N6, 000 each. So 10 tipper will cost N60,
000
6. Cost of molding the ten tippers of sand with the 40 bags of cement is N400 per bag of
cement the workmanship cost N16, 000
7. To lay the 1600 block by the bricklayers will be 4 days job of a bricklayers will be 4 days
job of a bricklayer with a serving job man, cost of a day work for a brick layer N 2, 500.
For the 4 days cost of bricklayer is N10, 000 then the serving job man N1, 500 a day,
costing N6, 000 for the 4 days. The total cost of the labor is N16, 000
8. The roofing of the ten pens. The roof will use 10 bundles of zinc which cost N10, 000
each. So ten bundles will cost N100, 000.
9. Wood for roofing of the ten pens is 100 pieces of 2 × 2 wood at N200 each. Total cost
N20, 000. 30 pieces of 2 × 4 wood cost N300 each total cost N9, 000. 20 pieces of 3 × 4
wood for wall plate cost N600 each total N12, 000. Nail and other miscellaneous cost N
10, 000. Workmanship for the roofing N12, 000. Total cost of the roofing cost N75, 000
10. Total overhead cost of ten pens is N412, 000
11. Total cost of building fifty pens will be N412, 000 × 5 = N2, 060, 000
12. Estimated cost of building two offices for administrative building is N1, 000, 000
13. Total cost of building is N2, 060, 000 + 1, 000, 000 = N3, 060, 000
FEEDING COST OF 200 PIGS
1. Three tons of PKC (palm kernel oil cake) at N20, 000 each can be used with total cost
N60, 000. Eight bags of “dusa” (corn chaff) can be used. Each bag costs N600. Eight bags
will cost N4, 800.
2. Total cost of January is N60, 000 + N4, 800 =N64, 800.
3. February feeding cost the same as N64, 800.
4. March cost is same as N64, 800
5. April cost is N64, 800
6. May cost is N64, 800
7. June feeding cost four tone of PKC was used and this was because seize and the numbers
changed. More than 200 piglets were produced. So new total number of pigs was 400.
Also 12 bags of “dusa” were used. The cost of 12 bags is N7, 200. Total cost of June
feeding is N80, 000 + N7, 200 = N87, 200.
8. July feeding cost the same as N87, 200.
9. August feeding cost the same N87, 200
10. September feeding cost the same N87, 200
11. October feeding cost is N87, 200
12. November feeding cost is N87, 200
13. December feeding cost is N87, 200
Internal control
FINANCING
Financing Strategy
(Upload a chart or spreadsheet showing all of the sources of your startup capital)
(Upload a cash flow projection and projected income statements to show sources of repayment of
loan, if applicable)
Explain any government assistance or loan guarantee program you intend to apply for
I intent to apply for National Youth Service Corps Millennium Development Goals War Against
Poverty Loan. With my owners equity of two hundred and fifty thousand naira (N250, 000), and
the two hundred and fifty thousand naira loan (N250, 000), I intend to raise five hundred thousand
naira (N500, 000) to start my business.
List your sources of referrals to lending institutions (your accountant etc)
1. My board of directors: Production Manager, Marketing Manager and Administrative Manager.
2. My management advisory board: Mr Sylvester Efosa and Mr Kenechi Nwogwugwu, Jane
Njimogu Ukamaka.
3. My Attorney, Barrister Emmen Udifia
4. My chartered Accountant: Mr Jimmy Akpan.
5. My insurance agent: Mr Essua of Essua Ghana Agencies, opposite Itam Main Park Itu.
6. My Consultant: Dr. E. O Izegaegbe
7. My mentor and key advisor: Mr Benjamin Nwogwugwu
E-COMMERCE
E – Commerce Plans
A website focusing on business – to – business E- commerce will be an important tool in my
overall marketing program. I plan to build and install the www.ifekentusng.com website, which I
plan to register. This will permit my marketing and sales department store customers to have
access to my products and to order (and reorder) merchandise via this website. I plan to hire Mr
Oshin Oluwole Omotolani of Brandforte consulting company (www.brandparcel.com) to design,
install and maintain this site.
This site will help my company succeed by increasing revenue, reaching new customers, creating
web presence and helping to drive traffic to my site by linking our social media networking that
my customers may visit like linkin and facebook etc.
The features of the www.ifekentusng.com will include:
It will be easy to use with good navigational features and prompt loading.
The site will provide useful content including detailed information about all items in product line.
Purchasing procedures on a business to business basis will be designed and implemented.
I intend to use this site to generate feedback to help improve every aspect of my products,
operation and business procedures.
E – Commerce Budgeting
The budget for design, implementation and start- up of the E-Commerce site will be twenty
thousand naira (N20, 000)
This is based on a firm contract with my Brandforte consulting company. The estimated monthly
maintenance cost to support the site will be free. I will use the free hosting and maintenance site
initially for the first year.
E – Commerce Competition
The use of E-Commerce presence or websites is not common in my industry. It is an important
marketing tool that my competitors are not using. It is my intention to maintain a website that will
project the image of fresh and dynamic products to my customers. I plan to keep abreast of the
website developments of my competitors and to constantly improve my site.
ACQUISITIONS
Due Diligence Procedures for Acquisitions
I may have opportunities to acquire businesses in the future. In order to position myself to
investigate acquisitions intelligently, following “due diligence” process will be adhered to.
I will use a team of experts to give advice on the various components of the acquisition:
1. My Attorney
2. My Accountant
3. My Banker
4. My Broker
The following information will be required:
1. Seller records and verification of revenues
2. Current financial statements
3. Cash deposit records
4. Supplier bills
5. Financial comparisons of similar businesses
Valuation analysis will include:
Evaluation of predictable future earnings
Status of seller’s motivation of sell
Sources of acquisition financing
Inspection of seller’s personal and business tax returns
Evaluation of leases and contracts
Quality of improvements
Quality and size of inventory: Obsolete merchandise?
Condition of receivables
Status of payables
Status of verified order backlog
Evaluation of customer relationships and goodwill
Evaluation of government approvals and licenses
Status of pending litigation
Basis for valuation: appraisals,
Method of purchase: stock, assets, etc
MARKETING
Marketing Plan
I plan to use the following marketing tactics
1. Personal contact and letters to butchers, pig farmers, wholesalers, retailers, abattoir and
restaurants, hotels and food packaging companies in the major cities of Anambra State.
2. Product packaging by selling my packaged pork and live pigs will be used. This is an
added advantage as most meat is exposed without being packaged.
3. Point- of –purchase display and sales outlet will be used.
4. Relationship marketing to pig farmer, and other customers will be employed. This is
maintaining relationship and communication. I will visit them; send texts messages on
special days in their life in other to maintain relationship.
5. Free samples to food packing companies and restaurant will be used to increase customer
interest. This is for our processed product.
6. Publicity for increase awareness of huge benefit of pork consumption and using the
medium to advertise our product will be used.
7. Billboards as part of publicity and increasing awareness of our product will be used.
8. Our product will be weighed and sold on scale with increase customer services.
9. Our price will be fair, correct price for the value of our product.
10. My marketing and sales manager will personally be responsible for the contacts with the
appropriate buyers.
When these innovative marketing tactics are employed and the customer show interest to buy, the
sales manager will sell to the customers directly. The customers will come to the farm to purchase
live pigs. If customers want us to deliver the live pigs, transportation charges will be included. For
processed products, it will be delivered to the customer. Sales agent will be employed to sell and
distribute the product in the state.
Training Policies
All my workers will be given an assistance to go for masters, further training in their fields
because they are mostly young graduates. My company will train them on a regular basis
because it is better to work with an expert and pay more than to work with a novice and pay
less and he or she will damage my business. Fresh graduate in veterinary medicine, animal
science, food science, butchering, sale and marketing will be employed and further trained at a
minimal cost.
Initially only my marketing and sales manager will handle sale to customers. As my business
expands, I intend to employ more marketers to begin marketing to smaller retailer, hotels,
farmers etc. I will hire sales associates who can gain the confidence of my customers. To achieve
these qualities, I will look for the following characteristics in marketing employee. People who:
Like what they do
Are quick learners
Project a pleasant and positive image
Like people and relate well to them
Are helpful to customers and follow associates
Are ambitious and seek to grow in responsibilities
I will follow a checklist in hiring marketing associates:
Have a hiring policy in place including written salary structure, commission,
compensation and perks
Create job descriptions for everyone
Conduct ongoing marketing meetings.
Have written policies and procedures on handling customer complaints
Maintain clear guidelines for pricing policies and handling customer’s complaints.
Maintain clear guidelines for pricing policies and handling customer’s inquiries
The competition
List of competitors and their address
S/N Competitors Address
1 Benco Farm Isu Umuezedim, Oba, Anambra.
2 Mrs Eze Piggery and Poultry Farm Aboji, Oba, Anambra.
3 Bro Emma Anodiadi Piggery Farm Aboji, Oba, Anambra.
4 Francis Emone Piggery Farm Umuogali, Oba, Anambra.
5 Alexander Obi Piggery Farm Aboji, Oba, Anambra.
6 Chief F. M Nwosu Piggery Farm Urueze, Oba, Anambra.
7 Festus Oragi Piggery Farm Umunnakwa, Oba, Anambra.
8 Samuel Nbielu Piggery Farm Isu Umuezedim, Oba, Anambra.
9 Ifeanyi Onwutalu Piggery Farm Isu Umuezedim, Oba, Anambra.
10 Edwin Obi Piggery Farm Umuogali, New Road, Oba, Anambra.
11 Mrs Nwajuaku Piggery Farm Umokokpa, Oba, Anambra.
12 Panock Piggery and Poultry Farm Ltd Oba junction, Anambra
13 Nwaeke Abu Nwa Piggery Farm Ukpono, Oba, Anambra
14 Emeka Udeaja Piggery Farm Ichi, Anambra
15 Kinsly Ikegbunam Piggery Farm Umuogali, Oba, Anambra
16 Micheal Chukwudozie Piggery Farm Aboji, Oba, Anambra
17 Okey Nnaemeka Piggery Farm Umuokokpa, Oba, Anambra
18 Emenike Osigwe Piggery Farm Abime, Oba, Anambra
19 Innocent Nnoruka Piggery Farm Ojoto, Anambra.
20 Godwin Etoniru Piggery Farm Isu Ebi, Oba, Anambra.
21 Cliford Piggery Farm Isu Umuabu, Anambra.
22 Mrs Theresa Uwaezuoke Piggery Farm Ojoto, Anambra.
23 Jame Ibeneme Piggery Farm Urueze, Oba, Anambra
24 Solomon Ekene Piggery Farm Isu Ebi, Oba, Anambra
25 Okey Iwuchukwu Piggery Farm Aboji, Oba, Anambra.
My principal competitor is Panock Piggery and Poultry Farm Ltd. I listed all major competitors in
this business and their contact address. Other competitors are farmers of cattle, sheep, goat, fish
and chicken. They have the same or equivalent product provided to the market.
Table 1: Competitive Analysis
High quality Meat Meat contain fat Meat contain fat Fat is a loss to
Quality meat produced at because the big because the big customer. They will
without fat higher cost size. size. like my products
We produce Higher cost They produce in They may not Our customers like
Reliability in high of keeping small satisfy their us because we meet
quantity. inventory. quantity(Local customers. their need.
farmers)
Stability and - - They like stability
Stability continuity.
Experts are They employ They employ low Quality products are
Expertise employed low quality quality labor. patronized by
labor. customers
Will build - - - Customer like trust
Company customer and will patronize us
Reputation trust and
reputation
Close to the Are located in Are located in Lesser cost for our
Location road and places close to places close to customers to reach
market, easy residential areas residential areas us.
access to
feed
GROWTH PROGRAM
Expansion
Once my business has been established I plan to implement the following growth strategy. I
anticipate it will take approximately five years to gain sufficient experience and level of profits
before any expansion plans are implemented.
My growth strategy will be guided by the following:
I will not set an inflexible timetable for expansion but will wait until a sound basis of experience,
earnings and cash flow is achieved.
Accounting and cash flow controls will be in place with profit and loss statements prepared for
expansion on a six monthly basis.
Internal controls for accounting, money handling and inventory will be in place.
My attorney will review all documentation regarding expansion. This will include leases,
employment and incentive agreements, licensing, important commitments customers, etc
Hiring and training policies will be in place. Fringe benefit plans will be in place
My intention is to delegate authority and responsibility to expansion management personnel with
the following conditions in place.
1. Managers will be motivated by a profit incentive plan which will be tied to manager’s
individual success. My plan will be in writing, simply stated and call for frequent periods of
accountability.
2. Capital allocations and signing checks will not be delegated.
Contingency Plans
I plan to start this business with my two hundred and fifty thousand naira now. How to start with
this sum of money is the training I received in Abuja. I plan to start small now if I don’t win and
grow big tomorrow.
Employment Impact
Pig Farming
Business Proposal
1. General Information
Pig breeding, poultry farming, mixed production of meat and egg
Livestock farming
40 gilts (female), 5 hogs (male)
2. Project Overall Cost
414 000 US Dollars / 197 000 000 AMD
In case of project implementation, the project will bring profits only starting from the
second year
3. Project Short Description
Pork production
Modelled buildings are planned to be constructed that would have:
Maternity units;
Gilt and hogs unit;
Breeding unit;
Fattening unit
In addition to these units a heating house, a residence for the employees and specialists, a
closet, a slaughterhouse, cooling units for food storage, a warehouse and other necessary
units are to be built.
In Armenia pork constitutes 50-70% of overall meat production. Pig farming project has
been calculated based on the movement of the herd of the pigs. The project is for 3 years
and for each year includes separate calculations of all production processes.
The project includes monthly calculations of the regular food ration for pigs. More details
can be found in the business plan.
4. Project objective
To be successful and competitive in the market the strategy of the production will be
based on providing maximum amount of high quality products at the lowest expenses for
a relatively low price, developing retail sale, promoting service development and
advertising as well as ensuring producer-consumer relationship on mutually beneficial
terms.