KEITH SOBOYA
EXECUTIVE SUMMARY
The pork family farm will be a registered company that will be based in the
outskirts of the Lusaka town, Lusaka district, Zambia. Market research, feasibility
studies have been conducted and 20 hectares has been secured to start a pig
production business.
The pig production business is going to be a standard one therefore will be
involved in commercial breeding of the pigs.
In the first Three- five years of running The pork family business, a set up of a pork
processing plant and possibly start supplying to most parts of the country. Which
is why aside from the fact that a piece of farm land will be secured for breeding
purposes on commercial levels, we will also hire some key employees who will go
under some training in order for them to fit into the pig production workforce
that is going to be built.
The main reason for venturing into pig production is to leverage on the wide
range of opportunities available in the pig production industry, add on to the
growth of the Zambian economy, and help ensure National food security, raw
materials production for other industries and above all make profits.
The farm plans on being one of the well equipped and well positioned so that it
can be one of the leading pig farming business in Zambia.
Processes and strategies will be put in place that will help us take up the best
practices when it comes to pig production processes, meat processing and
packaging as required by the Zambian regulating bodies.
The pork family farm will be a private registered livestock company that will be
owned and managed by Keith Soboya and the immediate family members. The
Farm seeks funding from the American funding agencies for a certain period of
time till it’s able to finance its self which will be after the first cycle of sell.
KEITH SOBOYA
OUR PRODUCT OFFERINGS
The pork family farm will be a licensed livestock business that will be dedicated to
pig production and meat (pork) processing and packaging for Lusaka district and
other surroundings with potential market.
We will also make sure that we operate to the acceptable standard of pig
production. Below are the areas that will be focused on in our pig production
business but if need arises we will absolutely bring on other livestock to our
production list;
Sale of pig and venture into other livestock
Sale of processed meat (pork)
Breeding Services
Pig production related consultancy and advisory services
VISION STATEMENT
To become one of the leading pig production brands countrywide.
MISSION STATEMENT
Our mission is to sell produce (pigs), byproducts and processed meat (pork) in
commercial quantities both locally and countrywide. We want to build a pig
production business that can positively compete with other leading pig
production farms Zambia.
ORGANIZATIONAL STRUCTURE
The pork family farm intends to start small in Lusaka, but hope to grow bigger in
order to compete with other leading and well established farms in the industry
and so building a solid organizational structure that can support the picture of the
kind of business we intend to set up. We will make sure we hire qualified,
hardworking, dedicated and ready to work and contribute to the building of a
successful business that will benefit both internal and external stakeholders
(owner, employees and customers).
KEITH SOBOYA
Below are some of the qualified and competent hands that will be hired to occupy
the following positions.
ROLES AND RESPONSIBILITIES
Chief Operating Officer
Boost managements effectiveness by recruiting , orienting, inducting and
disciplining managers; communicating values, strategies, organizational
goals and objectives; assigning tasks; planning and monitoring as well as
appraising job results; developing incentives ; developing a channel of
communication and idea sharing; providing educational opportunities.
Responsible for providing direction for the business.
Chief Operating Officer
(Owner)
General Farm
Manager
Piggery Manager
Piggery Attendants
Book Keeper
Marketing
Executive
KEITH SOBOYA
Creating, communicating and implementing the organizations vision,
mission and the overall direction by the organizational strategy.
Approval of all requests and documents on behalf of the farm.
Evaluating the accomplishment of the business
GENERAL FARM MANAGER
Responsible for the planning, management and coordinating all farm
activities across the different sections on behalf of the organization.
Supervise farm enterprise managers
Ensuring compliance during project execution
Assessments of risks
Keeping track of people and progress of all farm enterprises
Responsible for checking the accounting, costing and sales of farm produce
Ensuring that farm goals are achieved in the right time frame
Define job positions for recruitment and managing interviews
Carry out inductions and trainings for new members
Evaluating employees
BOOK KEEPER
Responsible for preparing financial reports, budgets and financial
statements of the farm
Conducting financial forecast and risk analysis
Development of financial systems and financial policies
Responsible for administering payrolls
Handle all financial transactions of the farm
MARKETING EXECUTIVE
Identify development opportunities by making follow ups on development
leads and contacts
Participate in the structuring of a new business
Identify, prioritize, and draw up new partners as well as business
opportunities
KEITH SOBOYA
Writing wining proposal documents, negotiate product prices in line with
the farm policy
Conduct market research, market survey, customer feedback
Responsible for supervising implementations, advocate for customer needs
and communicate with clients
Developing, executing and evaluating new plans for expanding increase
sales.
Documenting all client contacts and information
Represent the farm in strategic meetings
Increasing sales and growth for the company
PIGGERY MANAGER
Responsible for managing pig breeding
Responsible for breeding services
Work closely with the General farm manager to achieve goals and
objectives
PIGGERY ATTENDANTS
Responsible for feeding pigs as instructed by the piggery manager
Responsible for cleaning the piggery
Changing of water as instructed by piggery manager
Assist in breeding pigs
Keeping tools and equipments from the piggery to the store room
SWOT ANALYSIS
The pork family farm has decided to conduct a swot analysis because it doesn’t
intend to have trial and error during its first conduct in the industry. The farm
looks forward to maximizing its strength and opportunities and also work around
the weaknesses and threats. Below is a Swot analysis that has been conducted;
KEITH SOBOYA
STRENGTHS Qualified and well trained team Good relationship with major
agriculture merchants Latest equipments that will help
in the management of the pigs Good farm location because it
will be easily accessed by the buyers
WEAKNESSES New entrants so the buyers have
to know more about the farm and the products
Face a lot of competition from well established farms
OPPORTUNITIES Source other farm land in the
future in order to expand on our production
Open supply outlets in all potential markets
Diversify into more processed products
THREATS Inflation of prices Diseases New entrants Bad weather Unfavorable government policies
MARKET ANALYSIS
MARKET TRENDS
Most farmers today day don’t only focus on a particular farm enterprise but they
diversify because of cost cutting and large market opportunities as well as
maximizing profits in the agriculture industry.
In spite of the fact that commercial pig production has been practiced for a long
period of time in Zambia that has not over saturated the industry but commercial
pig farmers shift to new technologies in order to improve pig production
processes and also meat preservation and package process. The pig market is
always a ready market.
KEITH SOBOYA
With the latest technologies, farmers are able to improve on their breeds and
able to import the hybrids pigs and latest technologies from countries of their
choice.
OUR TARGET MARKET
Almost every Zambian household consumes pork and its processed products as
well as international food places that operate in Zambia,
We will ensure that we position our business to attract consumers of agriculture
produce not just in Lusaka CBD but nationwide in both raw and processed state.
OUR COMPETITIVE ADVANTAGE
Most entrepreneurs are venturing to the pig industry because it’s one of the most
incomes generating agriculture industry in Zambia and other parts of Africa.
Government is encouraging entrepreneurs to embrace farming as this is part of
nation success.
The pork family farm is aware that is high competition in the pig industry
throughout the country that’s why a research was conducted in order to know the
available market and how to take advantage of it.
The main factors that will give us competitive advantage are effective and reliable pig production processes which will help us sell our pigs and processed meat in the future at a very competitive price, good network by joining livestock groups and maintain excellent relationship with the consumers. We will bring to the industry a well designed business that will operate in all different areas such as animal rearing, meat processing and packaging plant as this will enable us to take advantage of all the accessible opportunities within the industry.
Our employees will have an increasing package depending with the growth of the business because we want them to build the business with us and help deliver the organizational goals and achieve all our objectives in the right timeframe.
MARKETING STRATEGY
After setting up the piggeries a standard meat processing and packing plant to help us maximize profits will be initiated.
KEITH SOBOYA
The main organizational goal is to grow and become one of the leading livestock pig farms in Lusaka Zambia this is why we have put up strategies that will help us take advantage of the on hand market.
The marketing strategies have been well set; first by networking with agriculture merchants and companies who are likely to become our customers. The pork Farm will adopt the following marketing strategies:
Introduce our business by adding introductory letters in the company profile
Send brochures to stake holders in the agriculture industry and companies
Advertise our business on agriculture related magazines and websites
List the farms on yellow pages ads (local directories)
Print out stickers and business cards
Participate and exhibit at agriculture show grounds, expos and trade fairs.
Create social media accounts and use of other related platforms
Engage in direct marketing
Encourage the use of word of mouth marketing
SOURCES OF INCOME
The pork family farm will be a pig production business with the intention of maximizing profits therefore we have decided to search all the available opportunities in the industry in order to achieve our corporate goals and objectives.
We won’t totally rely only on the sale of our pigs to generate income but also other business interests within the value chain. Below are some sources of income generation income we will explore;
Sale of Pig
Sale of processed meat (pork)
Breeding services
Pig support services
KEITH SOBOYA
SALES FORECAST
A market research and survey was conducted, it was discovered that the sales generated by a commercial pig farm depend on the size of the farm or size of production and the network of the farm.
The marketing strategies are well outlined and we are quite optimistic that we will meet or even go beyond our set sales target from the year of operations and build the business from survival to sustainability.
The agriculture sector has been thoroughly examined and it has been analyzed that we have a positive chance of making 50% profit in the industry. The sales projection is based on information gathered on the field and some workable assumptions as well with respect to the nature of pig production business that we want to run.
We plan to start with 35 female pigs (Sows) and 3 male pigs (Boars) from which we expect an average of 350 to be born in the first cycle and half to be sold after 4 month while the other half will be put to the breeding stock. The process will be continuous for three years as a result
Below are some of the projections that we came up with for the first three years of running the farm;
KEITH SOBOYA
EXPECTED REVENUE FOR THE FIRST YEAR EXPECTED EXPENDITURE FOR THE FIRST YEAR
ITEM QUANTITY UNIT
COST
(K)
TOTAL
AMOUNT
(K)
ITEM UNIT
COST
(K)
TOTAL AMOUNT
(K)
SALE OF PIGS 175 1,900 332,500 VARIABLE COST
WAGES 6,600 133,200
FEED 3,000 36,000
TOTAL INCOME 332,500 FUEL 500 6,000
DRUGS 300 3,600
FIXED COST
PIGGERY BUILDING
25,000
EXPECTED TOTAL NET INCOME 128,700 TOTAL EXPENSE
203,800
KEITH SOBOYA
EXPECTED REVENUE FOR THE SECOND YEAR EXPECTED EXPENDITURE FOR THE SECOND YEAR
ITEM QUANTITY UNIT
COST
(K)
TOTAL
AMOUNT
(K)
ITEM UNIT
COST
(K)
TOTAL AMOUNT
(K)
SALE OF PIGS 935 1,900 1,776,500 VARIABLE COST
WAGES 24,000 288,200
FEED 20,000 240,000
TOTAL INCOME 1,776,500 FUEL 2,000 24,000
DRUGS 1,500 18,000
FIXED COST
PIGGERY BUILDING
75,000
EXPECTED TOTAL NET INCOME 1,131,300 TOTAL EXPENSE
645,200
KEITH SOBOYA
EXPECTED REVENUE FOR THE THIRD YEAR EXPECTED EXPENDITURE FOR THE THIRD YEAR
ITEM QUANTITY UNIT
COST
(K)
TOTAL
AMOUNT
(K)
ITEM UNIT
COST
(K)
TOTAL AMOUNT
(K)
SALE OF PIGS 4,750 1,900 9,025,000 VARIABLE COST
WAGES 41,000 492,000
FEED 70,000 840,000
TOTAL INCOME 9,025,000 FUEL 4,500 54,000
DRUGS 3,500 42,000
FIXED COST
PIGGERY BUILDING
150,000
EXPECTED TOTAL NET INCOME 7,447,300 TOTAL EXPENSE
1,578,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that the economy will be constant and that there won’t be any major economic meltdown that can impact negatively on household spending, natural disaster such disease outbreaks and unfavorable government policies. Please note that the above projection might be lower and at the same time might be higher
KEITH SOBOYA
OUR PRICING STRATEGY
In order to get the right pricing of our pigs, we ensured a good location for our farm was, a good swine breed will be chose so that will guarantee steady and multiple breeding (prolific breeds), cutting the variable of farm to minimum and to attract buyers by putting up promotions and offering discounts.
We want to penetrate the market and also get hold of of customers for all our produce which will be sold to them at competitive prices. The nature of our produce makes it possible for farmers to place prices for their farm produce based on their discretion without following the benchmark in the industry as this helps avoiding running into loss.
FINANCIAL PROJECTIONS AND COSTING
Calculating the cost of starting a commercial pig production farm involves considering key factors. The most important expense is the construction of the piggeries.
Below are some of the areas were we plan to allocate our start- up capital in setting up commercial pig farm;
The amount needed to acquire / lease a farm land = K100,000
The amount required for preparing the farm land (for construction of piggery and fencing = K50,000
The cost for acquiring the required working tools and equipment / machines = K5,000
The amount required for purchase of the first set pigs
= K80,500
Operational cost for the first 3 months (salaries of employees, payments of bills= K34,300
Additional Expenditure = K30,000
From the report from detailed research and feasibility studies conducted, we will need an average of K299, 800=00 to start a standard commercial pig production business in Lusaka, Zambia.
KEITH SOBOYA
GENERATING FUNDS
In order for this business to become a reality we will need financing. Finance is
the most important factor when it comes to starting a business such as
commercial farming. The start- up capital of a business is very costly but then
becomes cheap when everything stabilizes, but it is a task that an entrepreneur
must go through.
The farm will get startup capital from the owner and it also intends to get partly
from the farm.
SUSTAIANABILITY AND EXPANSION STRATEGIES
The success of the farm lies on the loyal customers and the capacity of the employees.
One of the goals of starting a pig production farm is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to sell our pigs a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
KEITH SOBOYA
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