Piggery Farm Plan b6a3m

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: [email protected]

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 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 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 t 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 t 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.

Information Email: [email protected] 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 ts, 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 hotel’s 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 ts 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 ts 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 ment.

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, ant, 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 A 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 s 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

0

0

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 organization’s 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 organization’s 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 ts 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 ing 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 ts 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.