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f you are planning to write the piggery farm business plan on your own, then this sample piggery farm business plan can be great for guidance. However, if you are looking for a professional business plan writer for a business loan, SBA loan or to find out the possibility of success for your new business then let’s talk!  

Executive Summary

Overview: We are delighted to be a family-owned and operated business located in the center of the pig farming industry in Iowa. Iowa Select Farms employs over 1,200 people, contracts with over 650 farmers, and supports hundreds of small businesses around the state, with approximately 800 swine farms. We’re proud to collaborate with over 1,700 Iowa firms in over 320 Iowa cities and towns, and we work hard to make those communities better places to live, work, and raise a family.

Mission: To provide our clients and the food businesses they serve with safe, healthy, and high-quality pork.

Vision: By cultivating a culture of operational excellence and innovation, we will be able to compete in a global market for protein production.

Industry Overview: After chicken meat and beef, pork is the third most popular meat in America. Pork accounted for about a quarter of Americans’ average yearly meat intake in 2020, with 52.1 pounds eaten per capita. The United States produces the second-largest amount of pigs in the world. The pork industry in the United States is not widely dispersed; rather, it is concentrated in a few states and counties in the Midwest and eastern North Carolina. Over 98 percent of farmed pigs in the United States are kept in factory farms, with many of them concentrated in only a few of the country’s top pork-producing states. Pig production intensification boosts profits for a few mega-corporations at the expense of animals, customers, employees, nearby communities, and global health.

Financial Overview:

piggery farm business plan financial overview

Financials is one of the most important sections of a piggery farm business plan. You can get an idea of your projected revenue, required investment amount, is the business sustainable without additional funding, etc.

Financial Highlights:

Liquidity2020A2021A2022F2023F2024F
Current ratio612233242
Quick ratio611223140
DSO88888
Solvency
Interest coverage ratio8.211.114.2
Debt to asset ratio0.010.010.20.180.16
Profitability
Gross profit margin51%51%53%53%53%
EBITDA margin12%14%21%22%22%
Return on asset5%6%13%14%14%
Return on equity5%6%16%17%17%

FUND USAGE:

piggery farm investment Capex

Industry Analysis

The industry analysis section of the piggery farm business plan will help you get better insights into competitors, market growth, and overall industry prospects. You can order a custom market research report for your piggery farm business.

According to the USDA, 129.9 million farmed pigs were killed for food in the United States in 2019. The pork sector in the United States is projected to be worth $19 billion, with 26,310 enterprises and 53,236 jobs. The United States has been one of the largest exporters of hog meat in the world during the previous three decades. Between 2014 and 2019, the pork industry sold an average of 22% of U.S. pork output to overseas purchasers (equal to more than 1 in 5 pigs). Pork exports have been steadily increasing. Pork exports in the United States hit a new high of $7 billion in 2019, and by September 2020, a record 29 percent of pork production—nearly one out of every three pigs—had been exported.

The worldwide pork sector attracts attention as a market dominated by China, the European Union, and the United States. These nations continue to dominate the world in terms of pig population, pork production/consumption, and pig feed production, and their development prospects are bright. From 2021 to 2027, the worldwide pork meat market is expected to grow at a CAGR of 3.9 percent to $257,874.5 million. Pig feed is predicted to expand at a similar rate. During the projected period of 2020-2025, the pig feed market is estimated to grow at a CAGR of 4.1 percent.

The worldwide pig business may be classified into two categories: meat and feed. According to Allied Market Research’s “Pig Meat Market (2021–2027)” analysis, the worldwide pork meat market was worth $236,112.7 million in 2019, and is expected to grow to $257,874.5 million by 2027, with a CAGR of 3.9 percent from 2021 to 2027. Pig feed is predicted to expand at a similar rate. According to Mordor Intelligence’s Swine Feed Market (2021-2026) analysis, the swine feed market was valued at USD 135.30 billion in 2019 and is predicted to grow at a CAGR of 4.1 percent from 2020 to 2025.

While working on the industry analysis section of the piggery farm business plan make sure that you add a significant number of stats to support your claims and use proper referencing so that your lender can validate the data.

GLOBAL PORK MARKET

Pork is the most extensively eaten meat in the world, especially in Europe and Southeast Asia. Pork is less expensive than other meats, which contributes to its widespread popularity. Furthermore, the customer is captivated by its flavor, fat content, and texture. Pork production and consumption are very high in industrialized areas like North America and Europe, as well as emerging nations like China and Japan, according to Mordor Intelligence’s Swine Feed Market research. USDA data also backs this up.

Global pork output in 2021 is expected to reach 105 million metric tons, according to the USDA’s “Livestock and Poultry: World Markets and Trade” study. China was the market leader, producing more than 43 million metric tons of pork. With 24 million metric tons, the European Union came in second, followed by the United States with 12 million metric tons. Brazil, Canada, Mexico, South Korea, Japan, the Philippines, and Hong Kong were the nations that came in second, third, and fourth place, respectively.

The most widely eaten meats in the world, according to the USDA research, are chicken and pork, however poultry is anticipated to exceed pig in popularity in the coming years. Pork consumption is expected to rise from 117.35 metric kilotons in 2017 to about 131 metric kilotons by 2027, according to estimates. However, after reaching about 114 pounds per person in the United States, per capita red meat consumption is predicted to plateau.

piggery farm business plan industry analysis

According to Allied Market Research’s Pork Meat Market (2021–2027) study, the worldwide pork meat market was worth $236,112.7 million in 2019 and is expected to reach $257,874.5 million by 2027, with a CAGR of 3.9 percent from 2021 to 2027. In 2019, the frozen sector contributed the most to the pig meat market, and it is expected to rise at a CAGR of 3.9 percent between 2021 and 2027. Asia-Pacific accounted for more than half of worldwide market share in 2019, and is expected to increase at a CAGR of 4.5 percent during the forecast period.

According to a type-by-type study of the worldwide pig meat industry, frozen pork meat had the largest share in 2019. Due to the fast rise in meat, poultry, and seafood consumption, the frozen category is rapidly expanding. During the projected period, however, the frozen sector is predicted to increase at a slow pace. Consumers prefer chilled pig meat over frozen pork meat, which explains the segment’s rise.

In 2019, the commercial category accounted for the largest proportion of the worldwide hog meat market by application, according to forecasts. The expanding working population, as well as the tendency of eating meals outside the house, may be directly attributed to the development in commercial application of pig. The epidemic of coronavirus, on the other hand, has lowered demand for pork in commercial facilities, which has had a detrimental influence on swine meat consumption via these businesses. During the projection period, the household sector is expected to develop at a significant pace. Pork consumption has expanded significantly in Asia-Pacific households, owing to the fact that it is a basic diet. Furthermore, several advantages linked with pig meat, such as its high protein and vitamin content as well as its delectable flavor, contribute to the market’s expansion. Furthermore, owing to the installation of strict lockdown, the demand for pig meat for home consumption has grown, resulting in increased home food consumption. In terms of region, Asia-Pacific was the most important market for pork meat in 2019, and it is predicted to rise rapidly over the next several years. Because of the existence of a significant number of local players, Europe and North America are likely to expand at a constant pace during the projection period.

Marketing Plan 

A key part of the marketing plan in a piggery farm business plan is the marketing budget. The growth in the number of customers is proportional to the budget and dependent on the CAC.

piggery farm business plan promotional budget

Direct feeder pig producer to feeder pig finisher. The producer may place local ads for feeder pigs to attract prospective customers, or he or she may form long-term supply agreements with one or more purchasers. In most cases, the price is negotiated, and in cases where the contract is for a longer period of time, the price is also negotiated.

Public auction. A farmer delivers or consigns pigs to a company or farmer-owned marketing cooperative that runs a livestock auction. Pigs are sold to the highest bidder, and the price is determined by the demand of the buyer.

Electronic auction. Health programs, feeding programs, and herd management are used to grade feeder pigs for sale. Using computer modems, potential purchasers may access this information as well as the seller’s identity.

Organizational Plan: 

piggery farm business plan organogram

Financial Plan

This section of the piggery farm business plan helps your lender figure out whether you will be able to pay off the loan, whether the business is sustainable, what are the growth prospects, etc.

Earnings:

Break-Even Analysis:
piggery farm business plan break-even analysis

Income Statement:

2020A2021A2022F2023F2024F
ANNUAL REVENUE
Item 19,21759,117175,410415,277781,357
Item 234,701222,558660,3681,563,3942,941,580
Item 34,06719,56146,43278,519114,905
Total annual revenue47,985301,236882,2112,057,1893,837,842
% increase528%193%133%87%
COST of REVENUE
Item 13602,2596,61715,42928,784
Item 24803,0128,82220,57238,378
Item 352,00065,00078,00091,000104,000
Item 47203,6158,82216,45823,027
Item 5140,000336,000560,000840,0001,120,000
Item 660,000144,000240,000360,000480,000
Item 732,00061,33385,533112,153141,435
Total Cost of Revenue285,560615,220987,7941,455,6121,935,625
as % of revenue595%204%112%71%50%
Gross Profit-237,575-313,984-105,583601,5781,902,218
SELLING & ADMIN EXPENSES
Item 128,00096,800154,880175,692193,261
Item 275,000105,000120,000120,000120,000
Item 336,00096,000108,000120,000120,000
Item 48,00012,00012,00012,00012,000
Item 53,83918,07444,11161,716115,135
Item 63,35912,04926,46641,14476,757
Item 75,60010,00012,90415,03417,376
Item 86,66714,00022,06730,94040,701
Total selling & admin expenses166,464363,924500,428576,525695,230
as % of revenue347%121%57%28%18%
Net profit-404,039-677,907-606,01125,0521,206,987
Accumulated net profit-404,039-1,081,947-1,687,957-1,662,905-455,918

Cash Flow Statement:

2020A2021A2022F2023F2024F
CASH FLOW from OPERATING ACTIVITIES
Net profit before tax-$404,039-$677,907-$606,011$25,052$1,206,987
Depreciation$44,267$85,333$120,504$158,127$199,512
Payables
Item 1$4,333$5,417$6,500$7,583$8,667
Item 2$11,667$28,000$46,667$70,000$93,333
Item 3$6,250$8,750$10,000$10,000$10,000
Item 4$3,000$8,000$9,000$10,000$10,000
Item 5$667$1,000$1,000$1,000$1,000
Total payables$25,917$51,167$73,167$98,583$123,000
change in payables$25,917$25,250$22,000$25,417$24,417
Receivables
Item 1$320$1,506$3,676$5,143$9,595
Item 2$360$1,807$4,411$8,229$11,514
Total receivables$680$3,314$8,087$13,372$21,108
change in receivables-$680-$2,634-$4,773-$5,285-$7,736
Net cash flow from operating activities-$334,536-$569,958-$468,280$203,311$1,423,180
CASH FLOW from INVESTING ACTIVITIES
Item 1$16,000$13,200$14,520$15,972$17,569
Item 2$20,000$22,000$24,200$26,620$29,282
Item 3$28,000$22,000$14,520$10,648$11,713
Item 4$96,000$88,000$72,600$79,860$87,846
Item 5$20,000$22,000$24,200$26,620$29,282
Net cash flow/ (outflow) from investing activities-$180,000-$167,200-$150,040-$159,720-$175,692
CASH FLOW from FINANCING ACTIVITIES
Equity$400,000$440,000$484,000$532,400$585,640
Net cash flow from financing activities$400,000$440,000$484,000$532,400$585,640
Net (decrease)/ increase in cash/ cash equivalents-$114,536-$297,158-$134,320$575,991$1,833,128
Cash and cash equivalents at the beginning of the year-$114,536-$411,693-$546,014$29,978
Cash & cash equivalents at the end of the year-$114,536-$411,693-$546,014$29,978$1,863,105

Balance Sheet: 

2020A2021A2022F2023F2024F
NON-CURRENT ASSETS
Item 1$16,000$29,200$43,720$59,692$77,261
Item 2$20,000$42,000$66,200$92,820$122,102
Item 3$28,000$50,000$64,520$75,168$86,881
Item 4$96,000$184,000$256,600$336,460$424,306
Item 5$20,000$42,000$66,200$92,820$122,102
Total$180,000$347,200$497,240$656,960$832,652
Accumulated depreciation$44,267$129,600$250,104$408,231$607,743
Net non-current assets$135,733$217,600$247,136$248,729$224,909
CURRENT ASSETS
Cash-$114,536-$411,693-$546,014$29,978$1,863,105
Accounts receivables$680$3,314$8,087$13,372$21,108
Total current assets-$113,856-$408,380-$537,927$43,349$1,884,214
Total Assets$21,878-$190,780-$290,791$292,078$2,109,122
LIABILITIES
Account payables$25,917$51,167$73,167$98,583$123,000
Total liabilities$25,917$51,167$73,167$98,583$123,000
EQUITIES
Owner’s equity$400,000$840,000$1,324,000$1,856,400$2,442,040
Accumulated net profit-$404,039-$1,081,947-$1,687,957-$1,662,905-$455,918
Total equities-$4,039-$241,947-$363,957$193,495$1,986,122
Total liabilities & equities$21,878-$190,780-$290,791$292,078$2,109,122