Professional Documents
Culture Documents
Project objectives
1. To study the significant of swine farm.
2. To know about the benefit of swine farm.
3. To practice planning and writing a frame of activities / time in Gantt chart.
4. To study about the environment of swine farm business.
5. To study how to analysis about the marketing of swine farm.
6. To study which factor is concerned about swine farm business.
7. To analysis the nature of industry and situation of the swine farm.
8. To practice development planning for swine farm.
9. To practice process planning for wine farm.
10. To analysis the process of the swine farm establishment.
11. To study which strategy of management suits for the swine farm business.
12. To analysis about the competition (3C Analysis).
13.To study the importance of financial analysis to operate resources.
14.To practice for writing the financial statement of the swine business.
15. To study how to do sale forecast and how to estimate profit.
Benefit of project
This project focuses on explaining analytical methods and useful techniques in
different facets of capital budgeting. The explanation makes us know how to plan
marketing method and we also analyze in each factor of marketing, measure of the
strategy of business and qualitative. The numerous examples have been included to
illustrate the method that can evaluate about growth of business and also prepare
themselves to face some situation which may happen. We study techniques and
organizational considerations which impact on capital budgeting decision. It also
describes and evaluates the business practices in various areas.
Activities / Time frame
Month
Process
1 2 3 4 5
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Process 6 7 8 9 10
21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40
13. Purchase the one lot of swine
Month
Process
11 12 13 14 15
41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60
Process 16 17 18 19 20
61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80
26. Period of sale the four lot
27.Period of sale the one lot
28. Purchase the seven lot of swine
29. Period of sale the five lot
30. Period of sale the six lot
31. Purchase the eight lot of swine
32. Period of sale the six lot
Month
Process
21 22 23 24 25
81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100
33. Period of sale the seven lot
34. Purchase the nine lot of swine
35. Period of sale the seven lot
36. Period of sale the eight lot
37. Purchase the ten lot of swine
38. Period of sale the eight lot
39. Period of sale the nine lot
40. Purchase the eleven lot of swine
Mouth
26 27 28 29 30
Process
101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120
41. Period of sale the nine lot
42.Period of sale the ten lot
43. Purchase the twelve lot of swine
44. Period of sale the ten lot
45. Period of sale the eleven lot
46. Purchase the thirteen lot of swine
47. Period of sale the eleven lot
Month
31 32 33 34 35
Process
121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140
48. Period of sale the twelve lot
49. Purchase the fourteen lot of swine
50. Period of sale the twelve lot
51. Period of sale the thirteen lot
52. Purchase the fifteen lot of swine
53. Period of sale the thirteen lot
54. Period of sale the fourteen lot
55. Purchase the sixteen lot of swine
Month
Process 46 47 48 49 50
141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160
71. Period of sale the nineteen lot
Month
Process
51 52 53 54 55
161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180
Nature of Industry
Pork has become the second most important meat in Thai consumption, with
average consumption in the late 1990s of about 4.7 kg per person per year. This
consumption would have been much higher were it not for the government’s restrictive
policies towards the slaughtering industry in the view of Siamwalla, Setboonsarng and
Patamasiriwat (nd). They point out that the restriction on the slaughtering industry also
has disadvantaged the beef industry.
Development of pig production started in 1960 when the first groups of exotic pig
breeds were imported by the Department of Livestock Development from the United
Kingdom. These were Large Whites, Tamworth and Berkshire breeds. Later, Landrace
and Duroc Jersey breed pigs were imported from the United States. Up until these exotic
breeds were introduced, farmers relied on the relatively slow growing native pigs that had
the desirable quality of not needing much in the way of traded inputs. The imported pigs
were used for breeding improvement and were cross bred with the native pigs (Kanto
1991). Throughout the 1960s and 1970, crossbred pigs were raised by backyard
producers for consumption by the farm family and also as a source of income. Kehren
and Tisdell (1996) point out that while pigs generated the largest value added in the
livestock sector in 1975, the virtual stagnation of the industry up through the 1980s was
to a large degree due to government intervention that discouraged private investment in
the pig industry.
Sornnuwat (1994) says that swine production in Thailand follows a cycle,
determined by the pig price. This can lead to boom-bust cycles of the type that occurred
in the early 1980s. As a result of an oversupply of pigs in 1984 and 1985, pig raisers
suffered heavy losses (Sornnuwat 1994). Heavy losses were expected again in 1987 had it
not been for an outbreak of swine disease in the Central, Thailand’s main producing
region (Table 5.1). This region has about 50 percent of Thailand’s pig population. The
Southern has the smallest number of pigs, possibly reflecting the higher cost of pig
fattening because of a shortage of feed in this region. An alternate explanation could be
that the southern part of Thailand has a relatively high Muslim population for whom
consuming pork is prohibited. Most of the pork produced in Thailand is consumed
domestically because of the presence of foot and mouth disease in some of the producing
areas in Thailand. Export markets are limited to Hong Kong, Vietnam and Singapore.
Finished (processed) pig meat based products are more widely exported. Most of the
industry’s output comes from small or medium sized farms as these dominate the
industry (Table 5.1). According to Kanto (1991), modern swine feeding and management
systems from western countries have been accepted by farmers.
As we know most Thai people consume pork, so there are many entrepreneurs
who do the swine farm because this business provides more profits, The CPF was the
biggest company that does this business, they provide 70 farms around the country and
gain 20 percent of market share in swine industry (Prachachat Business) and 80 percent
of market share was the independent farm around the country. However, CPF can reduce
the cost of swine industries because they do this business in backward integration and
forward integration that affect to other entrepreneurs to close their business because they
have high cost and they do not have the distribution channels like the CPF.
The swine farm consists of two systems which are an Evaporative Cooling
System or closed system and an opened system. In developing areas, an Evaporative
Cooling System is appropriate for entrepreneurs. Although, it needs a lot of money in an
investment, but it provides clean, quality, and sterile. It also meets the standard of
livestock laws. On the other hand, the opened system is popular in the rural areas among
the local people because they can start the business with less investment and it lets swine
live and eat their feed with the nature. However, the quality of pork is different from
closed system due to uncontrolled the diseased from the nature, so it makes swine get
sick and become a pig pestilence. The Swine Influenza or Pig Flu has been affected
extremely the swine industry and made entrepreneurs close down their business.
Moreover, the lack of pork in the market and many problems occur following the Pig Flu
crisis.
Nowadays, the impact of Pig Flu makes the swine industry drive difficulty, but it
still has the opportunity to carry on this business because the livestock department creates
the law to control the situation and also set up the standard of swine house. Thus, it helps
entrepreneurs still survive in this industry. This creates more confidence of consumers
and increases the demand of the market as soon as everything will be better again.
Although, the swine industry is not in a perfect condition and doing this business
is not easy, but we see a chance to do the business because we can get profit not only
from sell swine, but can also use and sell many utilities that we get from the swine farm;
for example, wastes from swine can be transformed into organic fertilizer and sell for
agriculturists or farmers and the biogas pond can produce the electric current and use in
the pig house.
Situation of industry
From the survey, we found both problems and benefits which are happening in the
market of swine industry.
Import Export
No Menu Unit
Quantity Baht Quantity Baht
1 Swine Head 257 16,294,629 189,930 717,750,990
Breeder Head 257 16,294,629 104,023 518,803,100
Piglet Head 56,752 79,590,890
Fattening Head 29,155 119,357,000
Vision of organization
We are going to be the best swine farm which concern problems about air
pollution, water pollution, and soil pollution. Moreover, we will maintain the health and
quality of swine to become the high standard farm and we also expect that consumers can
consume the high quality and sterile pork.
Mission
- We will gain profit from selling core product.
- We deliver the high quality of swine in Chiang Saen and Chiang Rai.
- We transform dried pig excrements into manure for using in our farm.
- We sell manure to agriculturists or farmers.
- We bring manure to use within the farm.
- We control and manage swine farm following the standard of Animal
Husbandry Department, including fresh and clean, quality and healthy of swine.
Strategy
- Corporate level
- Business level
Cost focus
There are many swine farms in Chiang Rai and we still lose the capability to
overcome competitors, so we use focus strategy which is to exploit a narrow target’s
difference from the balance of the industry by serving swine near the area where we
chosen which is reducing the cost about the transportation and try to reduce the cost at the
production level. Therefore, pig kingdom farm reduce the cost by transforming dried pig
excrements into organic fertilizer using for plants which can be the feed for swine such as
wheat and paddy. Moreover, we aim to maintain the high quality and standard of swine
and the price is nearby competitors in Chiang Saen area.
- Functional level
Human Resources
We want to generate the income to the community by hiring employees from the
local community. We do not need to hire the knowledge people to work in the farm
because this job only needs the patience people. Moreover, when we hire the local people
to take care of the swine farm, it can save costs in term of having human resources
department. According to the organization strategy, the vision is to develop and expand
the swine farm business into the Chiang Rai market and to be the number one of the
swine farm. Therefore, we need to train and give the knowledge to them about how to
take care the swine in the right way, the way to artificial insemination, how to feed the
swine with cleanliness, and the way to protect the diseases of the pig so on.
Marketing
In this part, we did not plan the complex strategy because the swine farm business
like Pig Kingdom Farm are in the type of SMEs Business and at this moment, there were
the problem about Swine Flu which affects to the market demand. It made the swine farm
business all the regions of Thailand receive the effect of the Pig Flu crisis. Thus, Pig
Kingdom Farm sets the strategy to solve the problem and to reduce the negative impact to
the swine business. We always keep the standard of swine in Pig Kingdom Farm.
However, we must have the certificate from the Livestock Department to confirm that our
farm concerns about quality of swine and cleanliness of the farm without the disease 100
percent. For the target group of customer, we focus only 2 groups; the agriculturists who
sell the pork in a small or retailers and the slaughter houses or wholesalers.
Operation
This part is about the management and organizing functions in the swine farm.
We divide it into four departments which are the swine caretaker, the general labor head,
the assistant of manager, and the animal nourishing in the farm and the swine caretaker
needs to use the human resource to be the main source of a farm and clean the farm, feed
the swine, hybridize, and protect the diseases of the pig. The general labor head control
and monitor everything in the farm instead of us. They will response about take care of
and contact the consumers, the process to feed the swine, look forward to buy and sale
the breeders for the farm, ability to order and give the advice to the under level to work,
take care of the equipment and new technology that use in the farm, give the information
and train the under level to work and meet the standardization of the quality swine farm,
and summary the report and present the operational management of the production
processes. The assistant of manager is very important in every size of business. For Pig
Kingdom Farm we have to have the financial information deeply in every detail.
However, the Pig Kingdom Farm are just a small business, so we no need to hire the
accountant of the company and we transfer this function to the assistant of manager
responsibility who control the income statement and balance sheet of the company and
monitor everything following the general labor head. The animal nourishing man who
must create the confidence for consumers have to take care of the swine to be clean and
sterile and meet the standard of the livestock department.
Finance
For the investment of Pig Kingdom Farm, we loan the money from investors for 5
years and we have the policy to refund the principal and interest on time. Moreover, the
land for 2 rai in Chiang Saen is guaranteed to the investor and we expect that the
operation cost in the short-time must have a lot of money to build the farm, buy the pig
breeders, the feed, the hire the labor etc. Therefore, we use cost focus strategy at the
business level for reducing the cost. At the first time, we spend more money and after we
get the first lot of swine, we can create the secondary product from the savage of the
swine by processing it to be the fertilizer and sell to the agriculturists. Moreover, the
biogas can change to be the electricity and use in the farm 100 percent. These can create
the indirect income from supporting product and we can save the cost of the swine feed
by growing wheat and paddy which can be the feed for swine.
Chapter 3: Market Feasibility Study
Market analysis
Politic
For the government policies that effect the swine farm in many ways as
following:
1. Special charge (Surcharge fee) import the raw materials for swine food that
also effect the high cost of production so the agriculturists loss profits.
2. The property tax, water bowels, social objectionable tax, etc. That can
create more cost for agriculturalists.
3. Set up and control the swine price by not concern about cost of production
and the way to survive of agriculturalists so it effect the income of the agriculturists
and many of them were closed their business because cannot hold all the costs.
4. Solve the problem of high price of swine by take care and satisfy the
consumers by arrow the agriculturalists to import the swine and sell in the country.
That will be effect to the agriculturalists that spend less budgeting because when the
swine cost drop down, the government does nothing to control the price or find the
international market.
5. The way to control the mouth and foot rot disease were not completely such
as high cost of vaccine, lack of vaccine, and low quality of vaccine that have been the
problems to export the swine.
6. The government doesn’t pay any compensation for the agriculturalists who
face with the pestilence problem while doesn’t have any punishment for the first
persons who discover the swine pestilence but didn’t warning so the agriculturalists
need to protect themselves by decrease the cost and quickly sold the swine from the
farm to the slaughter that can expand the swine pestilence and danger for the
consumer.
Pollution Control Department
The Pollution Control Department tries to help the swine farm’s environment by
coo-working with another departments and go into the areas and educate the
agriculturalists for understanding of the environmental law and can help them following
the law correctly, moreover there will be the Understanding Environmental laws and
regulation Helping Center in the pollution areas like swine farm for appropriated to
investment.
Ministry of Energy
The ministry of energy are supporting for the swine farm owners, produce the
biogas from sewage water for the renewable energy and environment concern and that
can be decrease the cost of production and pollutions that create by swine farm.
Ministry of Agriculture
There are the policies of the clean food and good taste for the quality product
without the residue and concern the standardization both inside and outside country. So
there are controlling and operating of production from farm level until consumer level
especially the agriculturalist’s farm treatment and change the approaches of feed and
treatment so that can be make the providers improve and develop the management system
and increase production quality.
Source:
http://courseware.rmutl.ac.th/courses/110/unit302.html
http://www.phtnet.org/news52/view-news.asp?nID=658
http://www.thaibiogas.net/th/node/290
http://www.oknation.net/blog/print.php?id=58528
Economic
There are many factors which have affected to the Thai economy since 2005 –
2008 such as an increase in worldwide price of patrol and fuel, natural disaster, and
political issues. Therefore, the image of Thailand economy is unreliable which impacts
on a decrease in the number of investors who want to invest in Thailand. However, the
production process of food industry is increasing from 51 percent in 2005 to 57 percent in
2006. The production factors of each group are as following:
- The group of livestock: They are affected after epidemic spreading of bird’s flu
in Europe. The epidemic spreading also affected to the Thailand’s manufacture industry
of chicken. The manufacturing of it increase rapidly. It raises the value of Thai livestock
as well as Thailand economy. The increasing rate is at 8.5 percent. There is the
possibility in rising of the manufacturing from 2005 which is at 59.5 percent to 63.8
percent in 2006. The feed for animal is increasing in manufacture at 11.7 percent which is
the impact from the decrease of epidemic of bird’s flu. Other livestock and chicken
farming system are expanding their manufacture which is influent by the demand of
market. In other hand, the manufacture of feed for animal is also expanding especially the
manufacture of chicken’s feed increase to 6.5 percent and the manufacture of swine’s
feed increase to 19.8 percent.
- Domestic marketing in 2006 - 2008, the average selling condition of food
industry has increased from the past year at 7.5 percent. Even though the rise in price of
fuel and patrol is directly affected to the capital cost and logistic, it can lead to the
inflation economy. The inflation has the influence on a price and the cost of raw material.
However, the level of the interest on a loan and deposit does not change, so the number
of sales will increase at 7 percent of livestock and at 8.4 percent of food for swine. The
effects of FTA bring the imported products to the country and it definitely becomes the
competitor of domestic products.
- Domestic marketing in 2009, the amount of selling in Thailand was increasing
at 2.9 percent at the same time in last year. It is caused by the proclamation of the
government which is related to the 6 way of distress mitigation with the changeability of
patrol and fuel price. It can affect directly to a price decline for some good. Moreover, the
consumption is increasing in August to September and the overview of Thai economy
looks better. If we compared the 2008 and 2009, we will found the food marketing
increases at 1.4 percent. It shows that number of pork consumption is increasing which
tells us to plan for the future.
The tendency of the effects in the future has low possibility. However, the impact
will affect in short time after investment. Thai economy will develop well in 3 – 5 years
in the future based on the world’s economy.
Social
Chiang Saen is the big district in Chiang Rai. There are 47,141 persons that live
in Chiang Saen. Most local people in Chiang Saen breed swine in their house, but they do
not have enough money to build swine house or improve the area for swine. They do not
concern about the quality and safety of swine, so swine may get the disease which it
affects to people around the area. Nowadays, Chiang Saen district lack the swine farm
which get the standardization, cleanliness, and good management. Therefore, Pig
Kingdom Farm will be the best swine farm which provides the high quality of swine to
consumers in Chiang Saen.
For trade of swine in Chiang Saen, it is not enough because pork butchers and
swine wholesaler in Chiang Saen still buy the swine from outside Chiang Saen district.
However, Pig Kingdom Farm can attract them to purchase our swine which have the high
quality and they get convenience in going to buy the swine because our swine farm is
located in Chaing Saen district.
Environment
The area in Chiang Saen is suitable to do the swine farm business because our
swine farm can be located far away from the community area around 2 kilometers
according the rule of the swine farm establishment. Therefore, we can decrease some
problems that occur from our swine farm such as air pollution and water pollution.
Moreover, Pig Kingdom Farm it can reduce the petition of communities about the smell,
sound and wastewater to government.
Technology
4. Dynamo
The gas from the biogas pond will be transferred to the generator and the
generator will produce the electricity to use in the farm.
STP Analysis
- Competitor Analysis
Pig Kingdom Farm selects Evaporative Cooling System
used the closed-system and the advantages of closed-system are the cleanliness of
the swine house more than opened-system, the smell not bothers the local people than
opened-system and we can better control the swine diseases, so the swine in closed-
system will be more high quality as the large swine industry and stronger of investment.
Although the price of swine will a bit higher than competitors but we has the ability to
get into the retailers by provide the quality, clean and sanitary of pock near local
community. That is the reason that the consumer decide to buy our product and service.
- Customer Analysis
Consumers of Pig Kingdom Farm are the retailer in the district and in a nearby
district. Local people in Chiang Saen district currently feed themselves swine in their
household or buy from a nearby district. However, a demand for swine in each day is not
enough in the district and swine still lack good quality and standard.
According to the survey, the numbers of pock provider are 20 shops and the
quantities of consumer are 60 swine a day; however, the qualities of swine farm with
good management are the importance for consumers. Therefore, Pig Kingdom Farm has
to provide confidence and reliability for consumers.
- Competitive Analysis
The competitors of Pig Kingdom Farm can be divided into;
. Local pork providers are the main competitors of Pig Kingdom Farm in Chiang
Saen district. There are about 40 local swine farms which use opened-system and run
business by themselves. The advantage of opened-system of swine farm is low cost of
investment, but swine is easy to get disease.
2. Some pork providers buy pork from Tesco Lotus in Mae Chan district and
Macro in Ban Du district in order to sell because pork is already packaged up an the price
of pork is cheaper than buying from wholesalers. They sell pork in cheaper price, so pork
providers can gain more profits without concerning about the quality of pork.
STP Analysis
- Segmentation
Pig Kingdom Farm is the business which is different from other general business.
This business cannot separate the segmentation in various sectors, but our swine farm
divides the characteristic of our customers according to the customers’ demands as
following:
- The minor group of customer who needs 1 – 2 swine for their household
consumption.
- The group of customer who needs swine in a few amounts is classified
into retail group.
- The group of customer who needs swine in a numerous amounts is
classified into wholesale group.
Retailer
Minor Group
wholesaler
- Target Market
From the research and the survey, the target market of Pig Kingdom Farm is
people who need the quality and standard swine. However, Pig Kingdom Farm is a new
farm, so we take a direct interest to people who relate with the swine industry. The main
target is wholesale group and the secondary target is retail group. We separate the target
from the occupations of customer that they have different demand. Thus, we divide the
target into:
- Slaughter
- Butcher
- Villagers or local people
- Product Positioning
- Product
The products of pig kingdom farm are divided in 2 groups as following:
Core product
The core product of pig kingdom farm is swine that have the age around 5
month to 1 year. Swine from Pig kingdom farm has high quality and safety
because we use staffs to taking care, clean and check their health. Moreover, we
use an evaporative cooling system in swine house and our swine are guaranteed
from livestock department.
Supporting Product
The supporting product of Pig Kingdom Farm is organic fertilizer
produced from pig excrement. We sell organic fertilizer to farmers or
agriculturalists and it also is used within the Pig Kingdom Farm.
- Price
From the observation of the market price to set swine price as following:
Source of price: DIT, Department of Internal Trade (The setting price can be
changed depend on the market price)
Pig Kingdom Farm use cost-plus pricing strategies to set the price by calculating
of average cost (AC) plus a mark up and it is not over the standard price. Moreover, we
use psychological pricing strategies to set the price which respond to the consumer
perception; for example, we have the cost which is 50 baht per kilogram and the standard
price is 61 baht per kilogram. Therefore, we will set the price at 59.99 baht because we
use psychological pricing strategies to make it cheap.
- Place
Direct selling is the best way to sell our swine which leave out the marketing
intermediaries. Pig Kingdom Farm is located between Mae Chan and Chiang Saen
district. Therefore, we do not lose a proportion of the price which is paid to middleman
and our customers within Mae Chan and Chiang Saen district also receive the better
price.
- Promotion
Pig Kingdom Farm promotes swine directly to our customer in order to reduce the
cost of intermediaries. Word of mouth is the channel for promoting our swine farm to
customers and billboard in font of the farm is another way to promote our swine farm.
Furthermore, we are the sponsor of communities’ activities surrounding our swine farm
such as sport events and festival. This way can create the good relationship between our
swine farm and communities and it also reduces conflict between us.
Sale forecast / Profit Estimation
In the first ten months, we establish the farm and feed the swine. Sales will
gradually increase and we will get profit in the beginning of eleventh month. We estimate
the demand of market tin first month about 5 percent for our farm and it will increase in
every month. In the fifth month, we will gain about 10 percent of market share and it will
increase to 50 percent. Moreover, it will decease to 17 percent in some month because of
the insufficiency of the amount of swine, decrease in demand, or diseases. However, Pig
Kingdom Farm has high performance in the safety, so the sale will increase and market
share will increase against.
Sale Forecast in Year 1
Jan Feb. Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
sale
- - - - - - - - 1,464,000 1,586,000 1,464,000 1,586,000 6,100,000
swine
- - - - 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 19,200
fertilizer
- - - - 2,400 2,400 2,400 2,400 1,466,400 1,588,400 1,466,400 1,588,400 6,119,200
Total
Sale Forecast in Year 2
Sale Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Swine 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 18,300,000
fertilizer 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 28,800
Total 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 18,328,800
Sale Forecast in Year 3
sale Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
swine 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 18,300,000
fertilizer 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 28,800
Total 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 18,328,800
Sale Forecast in Year 4
Sale Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Swine 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 18,300,000
fertilizer 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 28,800
Total 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 18,328,800
Sale Forecast in Year 5
sale Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
swine 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 18,300,000
fertilizer 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 28,800
Total 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 18,328,800
Marketing Expense (Sales Incentive)
Pig Kingdom Farm spend money about 3 percent of income for increasing sale
by taking care the stakeholder; for example, we promote customer to know our product
which have the highest quality in Chiang Rai and take care local community about air
pollution to build the reputation and image of the farm. Moreover, we spend money to
buy a gift and provide to our customer in a special events which make them happy and
also create customer loyalty, as well as increasing sales.
9 6,437 214,550
10 6,437 214,550
11 6,437 214,550
12 6,437 214,550
The Chart of Marketing Expense in Year 2
25 19,310 643,650
26 19,310 643,650
27 19,310 643,650
28 19,310 643,650
29 19,310 643,650
30 19,310 643,650
31 19,310 643,650
32 19,310 643,650
33 19,310 643,650
34 19,310 643,650
35 19,310 643,650
36 19,310 643,650
The Chart of Marketing Expense in Year 4
37 19,310 643,650
38 19,310 643,650
39 19,310 643,650
40 19,310 643,650
41 19,310 643,650
42 19,310 643,650
43 19,310 643,650
44 19,310 643,650
45 19,310 643,650
46 19,310 643,650
47 19,310 643,650
48 19,310 643,650
The Chart of Marketing Expense in Year 5
49 19,310 643,650
50 19,310 643,650
51 19,310 643,650
52 19,310 643,650
53 19,310 643,650
54 19,310 643,650
55 19,310 643,650
56 19,310 643,650
57 19,310 643,650
58 19,310 643,650
59 19,310 643,650
60 19,310 643,650
The chart show the marketing expense in 5 years, in every month the chart show
the average of marketing expense that has pay in the years therefore the expense will be
stable.
Chapter 4: Technical Feasibility Study
- Product characteristics
Core product
Gender Characteristics
Source: http://www.ansi.okstate.edu/breeds/swine/americanlandrace/index.htm
Supporting product
The supporting product of Pig Kingdom Farm is organic fertilizer produced from
pig excrement. We sell organic fertilizer to farmers or agriculturalists and it also is used
within the Pig Kingdom Farm, so it can help to generate indirect income and reduce the
cost within the farm.
Organic fertilizer process from pig excrement
Organic
Fertilizer
Dried pig
excrement
Swine
Wastewater
pond
There are five organic fertilizer processes from pig excrement as following:
1. Excrement from swine.
2. Pig excrement preparation to the biogas pond.
3. Pig excrement is fermented in the biogas pond.
4. The dregs of pig excrement are brought to dry out.
5. Dried pig excrement is transformed to organic fertilizer.
- Specification, Feathers, Dimension, Life Time etc.
Specification
Pig Kingdom Farm provides high quality of swine including standardization and
cleanliness of swine, swine house, and food for swine.
The breed of swine: we select “American landrace” because it is the best breed
of other swine for consumption; moreover, sows have high ability to caring their piglets.
The age of swine: At the first period, we buy piglets at 20 to 40 days of age for
breeding during 4 to 6 months, and then we will sell it to customers. Moreover, we have
around 10 swine breeders and we breed them for giving more piglets which have high
quality.
Organic fertilizer: In Pig Kingdom Farm, we bring organic fertilizer produced
from dried pig excrement to use with corn and wheat which our farm plant in the little
area. Corn and wheat can be the food for swine instead of the main food which the price
is expensive. It also helps our farm save the cost of food for swine
Features
The advantage of our farm is the quality of breeding, great food for swine, good
swine house, management of taking care of swine, and prevention of disease.
- Breeding: the food for swine which we select has the high nutrition for
swine. We have to pay more attention about food for piglets and we will change
food which is appropriate for hogs and sows
- Good swine house: this one is important to swine because swine house
will be clean and standard. For the feature of swine house, we select to build
double roofs style. This style can shade sunshine and rain. It is high and airy and
it also releases some pollution to outside. All of these can help pig have a good
healthy.
- Taking care of swine: we clean pig and swine house for impurity
protection and try as much as possible to reduce the bad smell from swine which
affects to social problems.
- Prevention of disease: we concern about safety, so we have to vaccinate
and check swine’s health regularly.
- Production process
Swine breeding
Source: http://www.dld.go.th/service/pig/pigpig.html
Source: http://www.dld.go.th/service/pig/pigpig.html
- Swine disease
Foot and mouth rot disease is severe pandemic disease which is contracted rapidly
in artiodactyls such as cattle, sheep, goats, and swine. Swine of all age can inflect with
this disease in the high rate, but the death rate is low. Foot and mouth rot disease is
caused by Picornavirus which O, A, and Asia-1 are found in Thailand. When the virus
spreads rapidly in a herd, it takes up 3 – 6 days for symptoms which the appearance a
little later of vesicles up to 30 millimeters around a nose tip, mouth, tongue, lips, gill and
hoofs are symptoms of this disease. Moreover, the symptoms of this disease are increased
body temperature about 40.5 ºC, reluctance to eat, dribbling saliva, chomping their jaws,
painful legs, and losing weight.
The disease prevention is to produce vaccine for piglet at 7 weeks of age and
produce it again 2 week later. For swine breeders, the vaccine is produced every 4 – 6
months.
Source:
http://www.dld.go.th/service/pig/pigpig.html
http://www.thepigsite.com/diseaseinfo/97/porcine-reproductive-respiratory-syndrome-
prrs
http://www.thepigsite.com/articles/?AREA=FeaturedArticle&Display=305
- Medicine and a cure for swine
The way to use drug for swine to protect and heal can be many type of medicines,
it is sensitive with swine so we have to have a suggestion from the doctor.
1. Antibiotics; it is extracted from some type of microorganism that can stop the
growing of diseases or destroying that diseases. The antibiotics actually is used to protect
and heal such as Pneumonia, Bronchitis, Scar fen, Gastrointestinal disease, Urinary tract
infections, Uterine inflammation, and Anemic etc.
2. Sulfa Drugs; it is extracted for protecting and healing and the medicine of this
group is Trisulfan, Travertine, Vazlong, Sulfa Merasin, Sulfa quinnoksaleen,
Sulfadiazine, Sulfanilamide and Sulfa Tiazone etc.
3. Stimulant; it is almost the medicine in Phosphorus, Calcium, Magnesium,
Glucose and all vitamins and mineral that are necessary for health. It can help to
stimulate the absorption of Digestive System. The groups of medicine are Tonoforcefan,
Arizil, Katozal, Vitalex, Aminolite, Vitamin A, and Vitamin B complex multi – vitamins
etc.
4. Disinfectant; it is used to clean the swine house such as Isla, Sanctus saffron,
Iodine, Formalin, Copper sulfate, Light liquid zone, Caustic soda, Corrine, Lime,
Onecline, and Battles Biocline, etc. There will be the approach and limitation to use in
the different way, so we should educate the medicine before using.
5. Pesticide external parasite; it is used for killing a Scabies, flea, Dry Scabies in
swine such as Engo, Yen go, Forestry, Malafresh, Marathon, Survins, Yermax, Nekuwon,
Ivomax Inject or Purge, etc.
6. Pathology cathartic; the medicine which kills all the Pathology in the large
intestine in the animal is the Pipperracine, Carbondatatra chloride Pilantialtarlate,
Tiabandasol and the commercial name is called Verbal down cline Hoktosan worm-ex
banminz Ivomek (for injection) Lamisol 10% Lava side Laevulin 10%, etc.
7. The medicine for filling up the mouth of the piglet; It protects piglets from
diarrhea such as Farmosin on the tongue of piglet (putting the medicine to piglet by
Chlortetracycline and Hydrochloride) Celia-card (using Streptomilezinzalfate
Sanfatiazone Atrofinsilfate) Liquid Diatreem (using with the Tripreamsulfardiacine)
Liquid Norodine (use with Sanfadiacinetrimetopream) and so on. Moreover, we can use
the medicine melt with water for the piglet or use Neomix 325 KD-Neo.
8. Drugs for wound; it is used for fresh wound and Chronic wound such as
Tincture Iodine and Rouge fresh wound (yellow drug), Jencialviolate (violate drug)
Salphanilamild Negasunt (for killing the worm in the chronic wound) Sclorworm
Salphanilamide Wax and Sulfur, Alcohol, etc.
9. Hormone; this hormone is used for stimulating sows while they are travailing
such as Occitocine Hormone and the Prostaglandin F2Elpha Hormone which are the
hormone used to inject the sow for specifying the travail month. It is easy for
management of using in the case that sows meet the date of travail already (114 days),
but not travail yet after injecting. It will help sows to travail in 36 hours and if we use
special hormone, we need to have the suggestion from the doctor before using.
10. Iron; it protects the pale blood of piglets such as Fidex Miofure pigdrik Iron
Drextran Rona.
Source: http://www.dld.go.th/service/pig/pigpig.html
- The growth of swine
Table: The weight and growth rate of swine and the quantity of food for swine
Source: http://www.dld.go.th/service/pig/pigpig.html
- Vaccine injection for swine breeders
Source: http://www.dld.go.th/service/pig/pigpig.html
- Location
8
7
6
4
1
2
3
The market of Pig Kingdom Farm is the main target groups from Chiang Saen,
and Mae Chan because they are expanding pig industry, so the location of Pig Kingdom
Farm is located in Phaton village at Chiang Saen district, Chiang Rai province where is
near customers. The advantage of this location is easy for trade and distribution and also
has opportunities to expand our business due to an increase in the number of people
living in Chiang Saen. Therefore, the demand of people also increases.
We emphasis on the area where provides convenient access and transportations
and it can also protect environment, control disease outbreaks from outside into the farm.
It is far away from the community around 2 kilometers which must be consented by local
government administration and the centre of government that show our business does not
cause negative impacts to society. Moreover, the location should have water source
which is adequate for consumption throughout the year.
- Facility Layout
Pig kingdom farm has the area around 2 Rai located in Chiang Saen district, so we
have to think how to use the area effectively. Good facility layout is very important to the
business. We separate the area into 3 parts which consists of resident area, breeding area,
and planting area.
1. The first area, we use around 2000 square meters for build breeding area there
are swine’s house, treatment area and storehouse of feed.
- Swine’s house
It is important part for our farm, swine need to live with hygienic practice because
it will make the swine healthy and they will not pressure so they will eat a lot of feed. We
use this area around 1700 square meters for 2 building of swine’s house. We build
swine’s house follow main key of good characteristic, which is easy to manage in each of
sty, have an area for drain wastewater and far from the community around 2 kilometers,
and each of inside swine’s house have 24 sties for swine living in the number that feel
cramped.
Building
We choose Evaporative System for building because it can control appropriate
environment of swine’s living such as temperature, humidity, ventilate and bright light.
The building is high around 9 meters, 4meters for wide and 100 meters of range.
Roof
For the roof we choose double triangle style of roof, this style is popular because
it is safety and good ventilate of inside, we use the tile for roofing, although this style is
expensive but it is worth for swine’s life.
Floor
We use concrete for lay the floor because it is cheap and easy to clean; moreover
if we lay slop floor and leave a space for put water for swine’s relax. Staffs of swine have
to change water in the morning everyday.
2. The second area is around 500 square meters. It consists of 2 buildings which
are staff house and office.
- Staff house
Pig kingdom farm employs people in the community around 2 - 3 person to be the
staff in swine farm, so we have to build a house for them. The location which we select
for resident is separated from swine house.
- Office
The office is located beside the staff house. It is clean and suitable for work in
that place. Our farm have veterinarian for checking swine health. Moreover, we have
farm management manual which shows about record information in order to protect and
control the disease of swine and the way to taking care of swine. The head worker and
accountant (also assistant of head worker) work at the office.
3. The third area is plantation area which is used to plant corn and wheat in order
to be the feed for swine. The area is around 700 square meters and is divided into 2 parts;
the area of the first part for corn plantation is around 300 square meters and the area of
the second part for wheat plantation is around 400 square meters.
The air flowing through the system must flow through the dust filtration
Source: http://evaporative-hybridcool.blogspot.com/
- Dynamo
The electricity which we generally use in the household and the business is the
electric stream from dynamo
The main component of dynamo is as following:
1. The magnetic for creating the magnetic field.
2. The coil of wire that covered by insulator.
3. The sub equipments in the motor (brush, ring).
The dynamo uses rotating coils of wire and magnetic fields to convert mechanical
rotation into a pulsing direct electric current through Faraday's law. A dynamo machine
consists of a stationary structure called the stator which provides a constant magnetic
field, and a set of rotating windings called the armature which turn within that field. On
small machines the constant magnetic field may be provided by one or more permanent
magnets; larger machines have the constant magnetic field provided by one or more
electromagnets, which are usually called field coils.
The commutation was needed to produce direct current. When a loop of wire
rotates in a magnetic field, the potential induced in it reverses with each half turn,
generating an alternating current. However, in the early days of electric experimentation,
alternating current generally had no known use. The few uses for electricity, such as
electroplating, used direct current provided by messy liquid batteries. Dynamos were
invented as a replacement for batteries. The commutation is a set of contacts mounted on
the machine's shaft, which reverses the connection of the windings to the external circuit
when the potential reverses, so instead of alternating current, a pulsing direct current is
produced.
Source: http://en.wikipedia.org/wiki/Dynamo
- Exhaust Fan
An exhaust fan is a mechanical ventilation device that helps to draw out stale and
impure air from factory and bring in fresh air, thereby improving the quality of indoor
air. Exhaust fans are typically ducted to the exteriors of factory, through which bad
indoor air can effectively be removed from the factory.
Exhaust fans are classified into various types, mainly depending on the type of
mount and the location where you need to install the fans. There are different types of
exhaust fan, but our swine farm use wall mounted exhaust fans. These exhaust fans are
installed on walls. Since they are installed on exterior walls of the factory and not on
interior walls, the stale air has a direct route to the outside of your home and thus no duct
work is required in installing these exhaust fans.
Source: http://lib.store.yahoo.net/lib/rewilliams/ventilationfanguide.html
- Logistics Management
- Location planning
The main target group of Pig Kingdom Farm is people who live in Chiang Saen
and Mae Chan. Therefore, the location of Pig Kingdom Farm is located in the Phaton
village at Chiang Saen district, Chiang Rai province because it is the center of
distribution which provides more convenience to our customers when they come to our
farm for buying swine. It can also help our farm save time and costs when we go to the
swine farm located in Santhat district, Chiang Khong to buy piglets.
- Transportation and Traffic
Pig Kingdom Farm focuses only on outbound logistics which is the process of
piglet imports from the swine farm located in Santhat district, Chiang Rai into our farm.
A truck is used to transport piglets because it can contain a lot of piglets.
- Transportation preparation
To protect the accident which can happen to swine, truck floor has to be
laid by straw, dried grass, banana tree, or sandy soil. We should prepare a cage for
hogs and should prepare a separated stall to protect swine from overlapping each
other when transporting a lot of swine. However, a separated stall is essential for the
back of a truck; moreover, a truck roof and shading net are important for sunlight and
rain protection.
- Swine management after getting in a truck
We should pour the water over swine during transport because it can help
to reduce the heat in swine. In addition to water, big ice which is pounded can be laid
on truck floor covered by straw. It can help to reduce stress among swine. While we
are transporting swine, we should not stop a truck if it is not necessary. Moreover, if
swine show the sign that they feel hot; we have to stop a truck to pour water over
swine’s head and swine body. Most importantly we should transport swine in good
weather condition during evening or night.
Biogas pond
The Large swine farm which has more than 1,000 swine should build biogas pond
to keep pig excrement and bring gas from biogas pond transformed into electricity. It can
be applied within the farm, cooking, or nursing a brood of piglets.
Wastewater pond
The swine farm should have wastewater pond system, especially swine farm
located near the river. Wastewater pond system consists of fermenting pond, dregs thick
liquid pond, and the area for dried pig excrement.
Source: http://www.dld.go.th/service/pig/pigpig.html
- Facility Management
Environmental management
Waste disposal
- Large amount of pig excrement
1. Set the total amount of food which is proper for types or ages of swine
2. A mixture of food which has recipes to reduce the amount of waste
- Ineffective food distribution system for swine
- Change equipments for food distribution to protect the food falling from
the food distribution system.
- Ineffective food systems management
- Always check the quality of food for swine
- Use the existing food for swine before opening a new food bag
- Mixing food for swine and shipping scatteringly
- Without waste reduction
- Pig excrement transformed into organic fertilizer
- Fresh pig excrement to be the food for fishes
- Produce biogas from wastewater
- Worker’s ignorance of
- Raise awareness of workers
- Have a plan for workers to operate
Noxious odors management
- Principle and practice for the swine house and the a pig kraal
We should build a pig kraal which is proper for swine. The area for defecating
should be located behind a pig kraal due to easy cleaning.
We have to take pig excrement from the area for defecating before cleaning up. A
pig kraal should be suitable for each type and age of swine. The proper area for
defecating should be located behind a pig kraal because it is easy to clean and it should
also be a bright area, ventilation, and damp.
- Cleaning a swine house
The area of a pig kraal which is not the area for defecating should be dried all the
time, so we should wash a pig kraal at least 2 times per day.
Equipment which can help to reduce the size of the tip of rubber tube should be
installed in order to help water flow rapidly. Moreover, it can decrease water quantity and
save time in cleaning.
- Overuse of water
- Decrease water loss from any equipment related to water
- Wash a pig kraal by water from the wastewater treatment system
Source: http://ptech.pcd.go.th/present-pig/
Cost of Investment
Source: http://www.dld.go.th/inform/law/minis_order/duty2546.html
Investment cost
According to the information that we has received from ….. ….. The owner of
close system swine farm in Mae Lao district Chiang Rai province that has investment
cost;
Price per No of
No List price Percent
1 unit unit
1 Land 200,000 4.03%
2 office 300000 1 300,000 6.05%
3 Swine house 1,350,000 2 2,700,000 54.41%
Warehouse
6 100,000 1 100,000 2.02%
storage
7 Biogas pond 10,125 4 40,500 0.82%
8 Housing Workers 100,000 1 100,000 2.02%
9 10,000 2 20,000 0.40%
10 Dynamo 25,000 4 100,000 2.02%
11 Truck 385,000 1 385,000 7.76%
12 swine cage 2,800 30 84,000 1.69%
13 Pick-Up Car 650,000 1 650,000 13.10%
14 2,500 12 30,000 0.60%
15 Breeder pound 2,800 30 84,000 1.69%
16 Stud cage 3,500 10 35,000 0.71%
Treatment pond
17 20,000 2 40,000 0.81%
Fee
18 Exhaust fans 1,150 16 18,400 0.37%
bowels of the
19 10,000 1 10,000 0.20%
earth fee
20 !"#$% 2,800 20 56,000 1.13%
21 cooling pad 1,200 8 9,600 0.19%
22 Computer 30,000 1 30,000 0.60%
Total 4,962,500 100%
Depreciation
Depreciation
Annual Monthly
Investment Amount Depreciation
Depreciation Depreciation
Office 20 years 15,000.00 1,250.00
300,000.00
Swine house 20 years 135,000.00 11,250.00
2,700,000.00
Warehouse
20 years 5,000.00 416.67
storage 100,000.00
Biogas pond 20 years 2,025.00 168.75
40,500.00
Housing
20 years 5,000.00 416.67
Workers 100,000.00
Breeder pound 20 years 4,200.00 350.00
84,000.00
21 years 1,000.00 83.33
20,000.00
Dynamo 5 years 5,000.00 416.67
100,000.00
Truck 5 years 19,250.00 1,604.17
385,000.00
Swine cage 5 years 4,200.00 350.00
84,000.00
Pick-Up Car 5 years 32,500.00 2,708.33
650,000.00
5 years 1,500.00 125.00
30,000.00
Dynamo 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 5,000.04
100,000.00
Truck 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 19,250.04
385,000.00
Swine cage 84,000.00 350 350 350 350 350 350 350 350 350 350 350 350 4,200.00
Pick-Up Car 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 32,499.96
650,000.00
30,000.00 125 125 125 125 125 125 125 125 125 125 125 125 1,500.00
Stud cage 35,000.00 145.83 145.83 145.83 145.83 145.83 145.83 145.83 145.83 145.83 145.83 145.83 145.83 1,749.96
Treatment
40,000.00 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 2,000.04
pond Fee
Exhaust fans 18,400.00 76.67 76.67 76.67 76.67 76.67 76.67 76.67 76.67 76.67 76.67 76.67 76.67 920.04
bowels of
10,000.00 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 500.04
the earth fee
!"#$% 56,000.00 233.33 233.33 233.33 233.33 233.33 233.33 233.33 233.33 233.33 233.33 233.33 233.33 2,799.96
Computer 30,000.00 125 125 125 125 125 125 125 125 125 125 125 125 1,500.00
Total 4,792,500.00 19,968.76 19,968.76 19,968.76 19,968.76 19,968.76 19,968.76 19,968.76 19,968.76 19,968.76 19,968.76 19,968.76 19,968.76 239,625.12
Depreciation year 2
Investment Amount Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Total
Office 300,000.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 15,000.00
Swine house 2,700,000.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 135,000.00
Warehouse
100,000.00 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 5,000.04
storage
Biogas pond 40,500.00 168.75 168.75 168.75 168.75 168.75 168.75 168.75 168.75 168.75 168.75 168.75 168.75 2,025.00
Housing
100,000.00 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 5,000.04
Workers
Breeder
84,000.00 350 350 350 350 350 350 350 350 350 350 350 350 4,200.00
pound
20,000.00 83.33 83.33 83.33 83.33 83.33 83.33 83.33 83.33 83.33 83.33 83.33 83.33 999.96
Dynamo 100,000.00 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 5,000.04
Truck 385,000.00 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 19,250.04
Swine cage 84,000.00 350 350 350 350 350 350 350 350 350 350 350 350 4,200.00
Pick-Up Car 650,000.00 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 32,499.96
30,000.00 125 125 125 125 125 125 125 125 125 125 125 125 1,500.00
Stud cage 35,000.00 145.83 145.83 145.83 145.83 145.83 145.83 145.83 145.83 145.83 145.83 145.83 145.83 1,749.96
Treatment
40,000.00 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 2,000.04
pond Fee
Exhaust fans 18,400.00 76.67 76.67 76.67 76.67 76.67 76.67 76.67 76.67 76.67 76.67 76.67 76.67 920.04
Bowels of
10,000.00 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 500.04
the earth fee
!"#$% 56,000.00 233.33 233.33 233.33 233.33 233.33 233.33 233.33 233.33 233.33 233.33 233.33 233.33 2,799.96
Computer 30,000.00 125 125 125 125 125 125 125 125 125 125 125 125 1,500.00
Total 4,792,500.00 19,968.76 19,968.76 19,968.76 19,968.76 19,968.76 19,968.76 19,968.76 19,968.76 19,968.76 19,968.76 19,968.76 19,968.76 239,625.12
Depreciation year 3
Investment Amount Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Total
Office 300,000.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 15,000.00
Swine house 2,700,000.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 135,000.00
Warehouse
100,000.00 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 5,000.04
storage
Biogas pond 40,500.00 168.75 168.75 168.75 168.75 168.75 168.75 168.75 168.75 168.75 168.75 168.75 168.75 2,025.00
Housing
100,000.00 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 5,000.04
Workers
Breeder
84,000.00 350 350 350 350 350 350 350 350 350 350 350 350 4,200.00
pound
20,000.00 83.33 83.33 83.33 83.33 83.33 83.33 83.33 83.33 83.33 83.33 83.33 83.33 999.96
Dynamo 100,000.00 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 5,000.04
Truck 385,000.00 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 19,250.04
Swine cage 84,000.00 350 350 350 350 350 350 350 350 350 350 350 350 4,200.00
Pick-Up Car 650,000.00 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 32,499.96
30,000.00 125 125 125 125 125 125 125 125 125 125 125 125 1,500.00
Stud cage 35,000.00 145.83 145.83 145.83 145.83 145.83 145.83 145.83 145.83 145.83 145.83 145.83 145.83 1,749.96
Treatment
40,000.00 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 2,000.04
pond Fee
Exhaust fans 18,400.00 76.67 76.67 76.67 76.67 76.67 76.67 76.67 76.67 76.67 76.67 76.67 76.67 920.04
Bowels of
10,000.00 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 500.04
the earth fee
!"#$% 56,000.00 233.33 233.33 233.33 233.33 233.33 233.33 233.33 233.33 233.33 233.33 233.33 233.33 2,799.96
Computer 30,000.00 125 125 125 125 125 125 125 125 125 125 125 125 1,500.00
Total 4,792,500.00 19,968.76 19,968.76 19,968.76 19,968.76 19,968.76 19,968.76 19,968.76 19,968.76 19,968.76 19,968.76 19,968.76 19,968.76 239,625.12
Depreciation year 4
Investment Amount Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Total
Office 300,000.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 15,000.00
Swine house 2,700,000.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 135,000.00
Warehouse storage 100,000.00 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 5,000.04
Biogas pond 40,500.00 168.75 168.75 168.75 168.75 168.75 168.75 168.75 168.75 168.75 168.75 168.75 168.75 2,025.00
Housing Workers 100,000.00 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 5,000.04
Breeder pound 84,000.00 350 350 350 350 350 350 350 350 350 350 350 350 4,200.00
20,000.00 83.33 83.33 83.33 83.33 83.33 83.33 83.33 83.33 83.33 83.33 83.33 83.33 999.96
Dynamo 100,000.00 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 5,000.04
Truck 385,000.00 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 19,250.04
swine cage 84,000.00 350 350 350 350 350 350 350 350 350 350 350 350 4,200.00
Pick-Up Car 650,000.00 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 32,499.96
30,000.00 125 125 125 125 125 125 125 125 125 125 125 125 1,500.00
Stud cage 35,000.00 145.83 145.83 145.83 145.83 145.83 145.83 145.83 145.83 145.83 145.83 145.83 145.83 1,749.96
Treatment pond Fee 40,000.00 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 2,000.04
Exhaust fans 18,400.00 76.67 76.67 76.67 76.67 76.67 76.67 76.67 76.67 76.67 76.67 76.67 76.67 920.04
Bowels of the earth
10,000.00 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 500.04
fee
!"#$% 56,000.00 233.33 233.33 233.33 233.33 233.33 233.33 233.33 233.33 233.33 233.33 233.33 233.33 2,799.96
Total 4,762,500.00 19,843.76 19,843.76 19,843.76 19,843.76 19,843.76 19,843.76 19,843.76 19,843.76 19,843.76 19,843.76 19,843.76 19,843.76 238,125.12
Depreciation year 5
Investment Amount Jan Feb Mar April May June July Aug Sep Oct Nov Dec Total
Office 300,000.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 15,000.00
Swine house 2,700,000.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 135,000.00
Warehouse
100,000.00 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 5,000.04
storage
Biogas pond 40,500.00 168.75 168.75 168.75 168.75 168.75 168.75 168.75 168.75 168.75 168.75 168.75 168.75 2,025.00
Housing
100,000.00 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 5,000.04
Workers
Breeder
84,000.00 350 350 350 350 350 350 350 350 350 350 350 350 4,200.00
pound
20,000.00 83.33 83.33 83.33 83.33 83.33 83.33 83.33 83.33 83.33 83.33 83.33 83.33 999.96
Dynamo 100,000.00 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 5,000.04
Truck 385,000.00 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 1,604.17 19,250.04
Swine cage 84,000.00 350 350 350 350 350 350 350 350 350 350 350 350 4,200.00
Pick-Up Car 650,000.00 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 2,708.33 32,499.96
30,000.00 125 125 125 125 125 125 125 125 125 125 125 125 1,500.00
Stud cage 35,000.00 145.83 145.83 145.83 145.83 145.83 145.83 145.83 145.83 145.83 145.83 145.83 145.83 1,749.96
Treatment
40,000.00 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 2,000.04
pond Fee
Exhaust fans 18,400.00 76.67 76.67 76.67 76.67 76.67 76.67 76.67 76.67 76.67 76.67 76.67 76.67 920.04
bowels of the
10,000.00 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 500.04
earth fee
!"#$% 56,000.00 233.33 233.33 233.33 233.33 233.33 233.33 233.33 233.33 233.33 233.33 233.33 233.33 2,799.96
Total 4,762,500.00 19,843.76 19,843.76 19,843.76 19,843.76 19,843.76 19,843.76 19,843.76 19,843.76 19,843.76 19,843.76 19,843.76 19,843.76 238,125.12
Depreciation year 6
Investment Amount Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Total
Office 300,000.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 15,000.00
Swine house 2,700,000.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00 135,000.00
Warehouse
100,000.00 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 5,000.04
storage
Biogas pond 40,500.00 168.75 168.75 168.75 168.75 168.75 168.75 168.75 168.75 168.75 168.75 168.75 168.75 2,025.00
Housing
100,000.00 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 5,000.04
Workers
Breeder
84,000.00 350 350 350 350 350 350 350 350 350 350 350 350 4,200.00
pound
20,000.00 83.33 83.33 83.33 83.33 83.33 83.33 83.33 83.33 83.33 83.33 83.33 83.33 999.96
Total 3,344,500.00 13,935.42 13,935.42 13,935.42 13,935.42 13,935.42 13,935.42 13,935.42 13,935.42 13,935.42 13,935.42 13,935.42 13,935.42 167,225.04
Operation Cost
- Administration cost
We estimate the administration cost per month.
Income Statement
Income statement of year Month Month Month Month Month Month Month Month Month Month Month Month
1 1 2 3 4 5 6 7 8 9 10 11 12
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Sale in Units 0 0 0 0 - - - - 240 260 240 260 1,000
Sale revenue 0 0 0 0 - - - - 1,464,000 1,586,000 1,464,000 1,586,000 6,100,000
sale fertilizer 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 19,200
Total Sale 0 0 0 0 2400 2400 2400 2400 1466400 1588400 1466400 1588400 6,119,200
Less Cost of goods sold 0 0 0 0 240,000 260,000 240,000 260,000 1,000,000
Gross margin - - - - 2,400 2,400 2,400 2,400 1,226,400 1,328,400 1,226,400 1,328,400 5,119,200
Operating expenses 0 0 0 0 -
Operating income 0 0 0 0 -1,180,600 2,400 -1,180,600 2,400 43,400 1,328,400 43,400 1,328,400 387,200
Marketing expense 0 0 0 0 - - - - 43,920 47,580 43,920 47,580 183,000
Administration expense -
Salaries 0 0 0 0 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 168,000
Electricity 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 24,000
Telephone 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 8,000
Internet 590 590 590 590 590 590 590 590 590 590 590 590 4,720
Others 5,410 5,410 5,410 5,410 5,410 5,410 5,410 5,410 5,410 5,410 5,410 5,410 43,280
Total Administrative 10,000 10,000 10,000 10,000 31,000 31,000 31,000 31,000 31,000 31,000 31,000 31,000 248,000
Total Marketing
10,000 10,000 10,000 10,000 31,000 31,000 31,000 31,000 74,920 78,580 74,920 78,580 431,000
administrative Expense
EBIT -10,000 -10,000 -10,000 -10,000 -1,211,600 -28,600 -1,211,600 -28,600 -31,520 1,249,820 -31,520 1,249,820 -43,800
Interest 33,333 33,333 33,333 33,333 33,333 33,333 33,333 33,333 33,333 33,333 33,333 33,333 266,667
Interest income -43,333 -43,333 -43,333 -43,333 -1,244,933 -61,933 -1,244,933 -61,933 -64,853 1,216,487 -64,853 1,216,487 -310,467
Tax income -13,000 -13,000 -13,000 -13,000 -373,480 -18,580 - 373,480 -18,580 -19,456 -364,946 -19,456 -364,946 -823,032
-
Net income -30,333 -30,333 -30,333 -30,333 -43,353 - 871,453 -43,353 -45,397 851,541 -45,397 1,581,433 512,565
871,453
Month Month Month Month Month Month Month Month Month Month Month Month
Income statement of year 2
13 14 15 16 17 18 19 20 21 22 23 24
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Sale in Units 250 250 250 250 250 250 250 260 250 250 250 250 3,010
Sale revenue 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,586,000 1,525,000 1,525,000 1,525,000 1,525,000 18,361,000
Sale fertilizer 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 28,800
Total Sale 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,588,400 1,527,400 1,527,400 1,527,400 1,527,400
Less Cost of good sold 250,000 250,000 250,000 250,000 250,000 250,000 250,000 260,000 250,000 250,000 250,000 250,000 3,010,000
Gross margin 1,277,400 1,277,400 1,277,400 1,277,400 1,277,400 1,277,400 1,277,400 1,328,400 1,277,400 1,277,400 1,277,400 1,277,400 15,379,800
Operating expenses -
Pig food cost 1,183,000 1,183,000 1,183,000 1,183,000 1,183,000 1,183,000 7,098,000
Operating income 94,400 1,277,400 94,400 1,277,400 94,400 1,277,400 94,400 1,328,400 94,400 1,277,400 94,400 1,277,400 8,281,800
Marketing expense 45,750 45,750 45,750 45,750 45,750 45,750 45,750 47,580 45,750 45,750 45,750 45,750 550,830
Administration expense
Salaries 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 252,000
Electricity 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000
Telephone 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
Internet 590 590 590 590 590 590 590 590 590 590 590 590 7,080
Others 5,410 5,410 5,410 5,410 5,410 5,410 5,410 5,410 5,410 5,410 5,410 5,410 64,920
Total Administrative 31,000 31,000 31,000 31,000 31,000 31,000 31,000 31,000 31,000 31,000 31,000 31,000 372,000
Total Marketing
76,750 76,750 76,750 76,750 76,750 76,750 76,750 78,580 76,750 76,750 76,750 76,750 922,830
administrative Expense
EBIT 17,650 1,200,650 17,650 1,200,650 17,650 1,200,650 17,650 1,249,820 17,650 1,200,650 17,650 1,200,650 7,358,970
Interest 33,333 33,333 33,333 33,333 33,333 33,333 33,333 33,333 33,333 33,333 33,333 33,333 400,000
Interest income -15,683 1,167,317 -15,683 1,167,317 -15,683 1,167,317 -15,683 1,216,487 -15,683 1,167,317 -15,683 1,167,317 6,958,970
Tax income -4,705 350,195 -4,705 350,195 -4,705 350,195 -4,705 364,946 -4,705 350,195 -4,705 350,195 2,087,691
Net income -10,978 817,122 -10,978 817,122 -10,978 817,122 -10,978 851,541 -10,978 817,122 -10,978 817,122 4,871,279
Month Month Month Month Month Month Month Month Month Month Month Month
Income statement of year 3
25 26 27 28 29 30 31 32 33 34 35 36
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Sale in Units 250 250 250 250 250 250 250 260 250 250 250 250 3,010
Sale revenue 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,586,000 1,525,000 1,525,000 1,525,000 1,525,000 18,361,000
Sale Fertilizer 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 28,800
Total Sale 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,588,400 1,527,400 1,527,400 1,527,400 1,527,400 18,389,800
Less Cost of goods sold 250,000 250,000 250,000 250,000 250,000 250,000 250,000 260,000 250,000 250,000 250,000 250,000 3,010,000
Gross margin 1,277,400 1,277,400 1,277,400 1,277,400 1,277,400 1,277,400 1,277,400 1,328,400 1,277,400 1,277,400 1,277,400 1,277,400 15,379,800
Operating expenses -
Pig food cost 1,183,000 1,183,000 1,183,000 1,183,000 1,183,000 1,183,000 7,098,000
Operating income 94,400 1,277,400 94,400 1,277,400 94,400 1,277,400 94,400 1,328,400 94,400 1,277,400 94,400 1,277,400 8,281,800
Marketing expense 45,750 45,750 45,750 45,750 45,750 45,750 45,750 47,580 45,750 45,750 45,750 45,750 550,830
Administration expense -
Salaries 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 252,000
Electricity 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000
Telephone 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
Internet 590 590 590 590 590 590 590 590 590 590 590 590 7,080
Others 5,410 5,410 5,410 5,410 5,410 5,410 5,410 5,410 5,410 5,410 5,410 5,410 64,920
Total Administrative 31,000 31,000 31,000 31,000 31,000 31,000 31,000 31,000 31,000 31,000 31,000 31,000 372,000
Total Marketing
76,750 76,750 76,750 76,750 76,750 76,750 76,750 78,580 76,750 76,750 76,750 76,750 922,830
administrative Expense
EBIT 17,650 1,200,650 17,650 1,200,650 17,650 1,200,650 17,650 1,249,820 17,650 1,200,650 17,650 1,200,650 7,358,970
Interest 33,333 33,333 33,333 33,333 33,333 33,333 33,333 33,333 33,333 33,333 33,333 33,333 400,000
Interest income -15,683 1,167,317 -15,683 1,167,317 -15,683 1,167,317 -15,683 1,216,487 -15,683 1,167,317 -15,683 1,167,317 6,958,970
Tax income -4,705 350,195 -4,705 350,195 -4,705 350,195 -4,705 364,946 -4,705 350,195 -4,705 350,195 2,087,691
Net income -10,978 817,122 -10,978 817,122 -10,978 817,122 -10,978 851,541 -10,978 817,122 -10,978 817,122 4,871,279
Income statement of year 4 Month Month Month Month Month Month Month Month Month Month Month Month
37 38 39 40 41 42 43 44 45 46 47 48
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Sale in Units 250 250 250 250 250 250 250 260 250 250 250 250 3,010
Sale revenue 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,586,000 1,525,000 1,525,000 1,525,000 1,525,000 18,361,000
Sale Fertilizer 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 28,800
Total sale 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,588,400 1,527,400 1,527,400 1,527,400 1,527,400 18,389,800
Less Cost of goods sold 250,000 250,000 250,000 250,000 250,000 250,000 250,000 260,000 250,000 250,000 250,000 250,000 3,010,000
Gross margin 1,277,400 1,277,400 1,277,400 1,277,400 1,277,400 1,277,400 1,277,400 1,328,400 1,277,400 1,277,400 1,277,400 1,277,400 15,379,800
Operating expenses -
Pig food cost 1,183,000 1,183,000 1,183,000 1,183,000 1,183,000 1,183,000 7,098,000
Operating income 94,400 1,277,400 94,400 1,277,400 94,400 1,277,400 94,400 1,328,400 94,400 1,277,400 94,400 1,277,400 8,281,800
Marketing expense 45,750 45,750 45,750 45,750 45,750 45,750 45,750 47,580 45,750 45,750 45,750 45,750 550,830
Administration expense -
Salaries 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 252,000
Electricity 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000
Telephone 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
Internet 590 590 590 590 590 590 590 590 590 590 590 590 7,080
Others 5,410 5,410 5,410 5,410 5,410 5,410 5,410 5,410 5,410 5,410 5,410 5,410 64,920
Total Administrative 31,000 31,000 31,000 31,000 31,000 31,000 31,000 31,000 31,000 31,000 31,000 31,000 372,000
Total Marketing
76,750 76,750 76,750 76,750 76,750 76,750 76,750 78,580 76,750 76,750 76,750 76,750 922,830
administrative Expense
EBIT 17,650 1,200,650 17,650 1,200,650 17,650 1,200,650 17,650 1,249,820 17,650 1,200,650 17,650 1,200,650 7,358,970
Interest 33,333 33,333 33,333 33,333 33,333 33,333 33,333 33,333 33,333 33,333 33,333 33,333 33,333
Interest income -15,683 1,167,317 -15,683 1,167,317 -15,683 1,167,317 -15,683 1,216,487 -15,683 1,167,317 -15,683 1,167,317 6,958,970
Tax income -4,705 350,195 -4,705 350,195 -4,705 350,195 -4,705 364,946 -4,705 350,195 -4,705 350,195 2,087,691
Net income -10,978 817,122 -10,978 817,122 -10,978 817,122 -10,978 851,541 -10,978 817,122 -10,978 817,122 4,871,279
Income statement of year 5 Month Month Month Month Month Month Month Month Month Month Month Month
49 50 51 52 53 54 55 56 57 58 59 60
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Sale in Units 250 250 250 250 250 250 250 260 250 250 250 250 3,010
Sale revenue 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,586,000 1,525,000 1,525,000 1,525,000 1,525,000 18,361,000
Sale fertilizer 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 28,800
Total Sale 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,588,400 1,527,400 1,527,400 1,527,400 1,527,400 18,389,800
Less Cost of goods sold 250,000 250,000 250,000 250,000 250,000 250,000 250,000 260,000 250,000 250,000 250,000 250,000 3,010,000
Gross margin 1,277,400 1,277,400 1,277,400 1,277,400 1,277,400 1,277,400 1,277,400 1,328,400 1,277,400 1,277,400 1,277,400 1,277,400 15,379,800
Operating expenses -
Pig food cost 1,183,000 1,183,000 1,183,000 1,183,000 1,183,000 1,183,000 7,098,000
Operating income 94,400 1,277,400 94,400 1,277,400 94,400 1,277,400 94,400 1,328,400 94,400 1,277,400 94,400 1,277,400 8,281,800
Marketing expense 45,750 45,750 45,750 45,750 45,750 45,750 45,750 47,580 45,750 45,750 45,750 45,750 550,830
Administration expense -
Salaries 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 252,000
Electricity 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000
Telephone 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
Internet 590 590 590 590 590 590 590 590 590 590 590 590 7,080
others 5,410 5,410 5,410 5,410 5,410 5,410 5,410 5,410 5,410 5,410 5,410 5,410 64,920
Total Administrative 31,000 31,000 31,000 31,000 31,000 31,000 31,000 31,000 31,000 31,000 31,000 31,000 372,000
Total Marketing
76,750 76,750 76,750 76,750 76,750 76,750 76,750 78,580 76,750 76,750 76,750 76,750 922,830
administrative Expense
EBIT 17,650 1,200,650 17,650 1,200,650 17,650 1,200,650 17,650 1,249,820 17,650 1,200,650 17,650 1,200,650 7,358,970
Interest 33,333 33,333 33,333 33,333 33,333 33,333 33,333 33,333 33,333 33,333 33,333 33,333 400,000
Interest income -15,683 1,167,317 -15,683 1,167,317 -15,683 1,167,317 -15,683 1,216,487 -15,683 1,167,317 -15,683 1,167,317 6,958,970
Tax income -4,705 350,195 -4,705 350,195 -4,705 350,195 -4,705 364,946 -4,705 350,195 -4,705 350,195 2,087,691
Net income -10,978 817,122 -10,978 817,122 -10,978 817,122 -10,978 851,541 -10,978 817,122 -10,978 817,122 4,871,279
Statement of Cash Flow
Balance sheet 1 January February March April May June July August September October November December
Asset
Current asset
Cash 8,000,000 - - - 2,400 2,400 2,400 2,400 1,466,400 1,588,400 1,466,400 1,588,400
Inventory 591,500 591,500 591,500 591,500 591,500 591,500 591,500 591,500
Office suppliers 30,000 29,167 28,333 27,500 26,667 25,833 25,000 24,167 23,333 22,500 21,667 20,833
land 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000
Other current asset 2,417,021 2,440,531 2,464,042 2,734,772 2,290,663 2,787,373 2,337,683 544,338 1,252,868 937,725 2,029,780
Total current asset 8,230,000 2,646,188 2,668,864 2,691,542 3,555,339 3,110,396 3,606,273 3,155,750 2,825,571 3,655,268 3,217,292 4,430,513
Fixed Asset
Operating fixed
1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000
asset
( Accumulative
-4,438 -8,875 -13,313 -17,750 -22,188 -26,625 -31,063 -35,500 -39,938 -44,375 -48,813 -53,250
depreciation)
Administrative asset 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500
( Accumulative
-18,240 -36,479 -54,719 -72,958 -91,198 -109,438 -127,677 -145,917 -164,156 -182,396 -200,635 -218,875
depreciation)
Total fixed asset 5,419,823 5,397,146 5,374,469 5,351,792 5,329,115 5,306,437 5,283,760 5,261,083 5,238,406 5,215,729 5,193,052 5,170,375
Total asset 13,649,823 8,043,333 8,043,333 8,043,334 8,884,453 8,416,834 8,890,033 8,416,833 8,063,978 8,870,997 8,410,344 9,600,888
Liability and Equity
Liability
Tax payable 13,000 13,000 13,000 13,000 13,000 373,480 18,580 373,480 18,580 19,456 364,946 19,456
Long term note
8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000
payable
Other 5,606,490 - - - - - - - - - - -
Total liability 13,619,490 8,013,000 8,013,000 8,013,000 8,013,000 8,373,480 8,018,580 8,373,480 8,018,580 8,019,456 8,364,946 8,019,456
Equity
Retain earning 30,333 30,333 30,333 30,333 871,453 43,353 871,453 43,353 45,397 851,541 45,397 1,581,433
Owner equity - - - - - - - - - - - -
Total owner equity 30,333 30,333 30,333 30,333 871,453 43,353 871,453 43,353 45,397 851,541 45,397 1,581,433
Total liability and
13,649,823 8,043,333 8,043,333 8,043,333 8,884,453 8,416,833 8,890,033 8,416,833 8,063,977 8,870,997 8,410,343 9,600,889
Equity
Balance sheet 2 January February March April May June July August September October November December
Asset
Current asset
Cash 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,588,400 1,527,400 1,527,400 1,527,400 1,527,400
Inventory 591,500 591,500 591,500 591,500 591,500 591,500 591,500 591,500 591,500 591,500 591,500 591,500
Office suppliers 20,000 19,167 18,333 17,500 16,667 15,833 15,000 14,167 13,333 12,500 11,667 10,833
land 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000
Other current asset 529,086 1,704,229 576,106 1,751,250 623,127 1,798,271 670,148 1,833,462 717,169 1,892,313 764,190 1,939,333
Total current asset 2,867,986 4,042,296 2,913,339 4,087,650 2,958,694 4,133,004 3,004,048 4,227,529 3,049,402 4,223,713 3,094,757 4,269,066
Fixed Asset
Operating fixed
1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000
asset
( Accumulative
-57,688 -62,125 -66,563 -71,000 -75,438 -79,875 -84,313 -88,750 -93,188 -97,625 -102,063 -106,500
depreciation)
Administrative asset 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500
( Accumulative
-237,115 -255,354 -273,594 -291,833 -310,073 -328,313 -346,552 -364,792 -383,031 -401,271 -419,511 -437,750
depreciation)
Total fixed asset 5,147,698 5,125,021 5,102,344 5,079,667 5,056,989 5,034,312 5,011,635 4,988,958 4,966,281 4,943,604 4,920,927 4,898,250
Total asset 8,015,684 9,167,316 8,015,683 9,167,317 8,015,683 9,167,317 8,015,683 9,216,487 8,015,683 9,167,317 8,015,684 9,167,316
Liability and Equity
Liability
Tax payable 4,705 350,195 4,705 350,195 4,705 350,195 4,705 364,946 4,705 350,195 4,705 350,195
Long term note
8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000
payable
Other
Total liability 8,004,705 8,350,195 8,004,705 8,350,195 8,004,705 8,350,195 8,004,705 8,364,946 8,004,705 8,350,195 8,004,705 8,350,195
Equity
Retain earning 10,978 817,122 10,978 817,122 10,978 817,122 10,978 851,541 10,978 817,122 10,978 817,122
Owner equity - - - - - - - - - - - -
Total owner equity 10,978 817,122 10,978 817,122 10,978 817,122 10,978 851,541 10,978 817,122 10,978 817,122
Total liability and
8,015,683 9,167,317 8,015,683 9,167,317 8,015,683 9,167,317 8,015,683 9,216,487 8,015,683 9,167,317 8,015,683 9,167,317
Equity
Balance sheet 3 January February March April May June July August September October November December
Asset
Current asset
Cash 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,588,400 1,527,400 1,527,400 1,527,400 1,527,400
Inventory 591,500 591,500 591,500 591,500 591,500 591,500 591,500 591,500 591,500 591,500 591,500 591,500
Office suppliers 10,000 9,167 8,333 7,500 6,667 5,833 5,000 4,167 3,333 2,500 1,111 556
land 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000
Other current
809,931 1,986,354 856,951 2,033,375 903,972 2,080,396 950,993 2,115,587 998,014 2,174,438 1,045,590 2,221,736
asset
Total current asset 3,138,831 4,314,421 3,184,184 4,359,775 3,229,539 4,405,129 3,274,893 4,499,654 3,320,247 4,495,838 3,365,601 4,541,192
Fixed Asset
Operating fixed
1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000
asset
( Accumulative
-110,938 -115,375 -119,813 - 124,250 -128,688 -133,125 -137,563 -142,000 -146,438 -150,875 -155,313 -159,750
depreciation)
Administrative
4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500
asset
( Accumulative
-455,990 -474,229 -492,469 -510,709 -528,948 -547,188 -565,427 -583,667 -601,906 -620,146 -638,386 -656,625
depreciation)
Total fixed asset 4,875,573 4,852,896 4,830,219 4,807,541 4,784,864 4,762,187 4,739,510 4,716,833 4,694,156 4,671,479 4,648,802 4,626,125
Total asset 8,014,404 9,167,316 8,014,403 9,167,316 8,014,403 9,167,317 8,014,403 9,216,487 8,014,403 9,167,317 8,014,403 9,167,316
Liability and Equity
Liability
Tax payable 3,425 350,195 3,425 350,195 3,425 350,195 3,425 364,946 3,425 350,195 3,425 350,195
Long term note
8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000
payable
Other
Total liability 8,003,425 8,350,195 8,003,425 8,350,195 8,003,425 8,350,195 8,003,425 8,364,946 8,003,425 8,350,195 8,003,425 8,350,195
Equity
Retain earning 10,978 817,122 10,978 817,122 10,978 817,122 10,978 851,541 10,978 817,122 10,978 817,122
Owner equity - - - - - - - - - - - -
Total owner equity 10,978 817,122 10,978 817,122 10,978 817,122 10,978 851,541 10,978 817,122 10,978 817,122
Total liability and
8,014,403 9,167,317 8,014,403 9,167,317 8,014,403 9,167,317 8,014,403 9,216,487 8,014,403 9,167,317 8,014,403 9,167,317
Equity
Balance sheet 4 January February March April May June July August September October November December
Asset
Current asset
Cash 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,588,400 1,527,400 1,527,400 1,527,400 1,527,400
Inventory 591,500 591,500 591,500 591,500 591,500 591,500 591,500 591,500 591,500 591,500 591,500 591,500
Office suppliers 6,667 6,111 5,556 5,000 4,444 3,889 3,333 2,778 2,222 1,667 556 278
land 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000
Other current asset 814,544 1,989,410 842,770 2,035,875 907,474 2,082,340 953,940 2,116,976 1,000,405 2,175,271 1,047,426 2,222,014
Total current asset 3,140,111 4,314,421 3,167,226 4,359,775 3,230,818 4,405,129 3,276,173 4,499,654 3,321,527 4,495,838 3,366,882 4,541,192
Fixed Asset
Operating fixed
1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000
asset
( Accumulative
-110,938 -115,375 -119,813 -124,250 -128,688 -133,125 -137,563 -142,000 -146,438 -150,875 -155,313 -159,750
depreciation)
Administrative asset 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500
( Accumulative
-455,990 -474,229 -474,229 -510,709 -528,948 -547,188 -565,427 -583,667 -601,906 -620,146 -638,386 -656,625
depreciation)
Total fixed asset 4,875,573 4,852,896 4,848,458 4,807,541 4,784,864 4,762,187 4,739,510 4,716,833 4,694,156 4,671,479 4,648,802 4,626,125
Total asset 8,015,683 9,167,317 8,015,684 9,167,316 8,015,683 9,167,316 8,015,684 9,216,487 8,015,683 9,167,317 8,015,683 9,167,317
Liability and Equity
Liability
Tax payable 4,705 350,195 4,705 350,195 4,705 350,195 4,705 364,946 4,705 350,195 4,705 350,195
Long term note
8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000
payable
Other
Total liability 8,004,705 8,350,195 8,004,705 8,350,195 8,004,705 8,350,195 8,004,705 8,364,946 8,004,705 8,350,195 8,004,705 8,350,195
Equity
Retain earning 10,978 817,122 10,978 817,122 10,978 817,122 10,978 851,541 10,978 817,122 10,978 817,122
Owner equity - - - - - - - - - - - -
Total owner equity 10,978 817,122 10,978 817,122 10,978 817,122 10,978 851,541 10,978 817,122 10,978 817,122
Total liability and
8,015,683 9,167,317 8,015,683 9,167,317 8,015,683 9,167,317 8,015,683 9,216,487 8,015,683 9,167,317 8,015,683 9,167,317
Equity
Balance sheet 5 January February March April May June July August September October November December
Asset
Current asset
Cash 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,588,400 1,527,400 1,527,400 1,527,400 1,527,400
Inventory 591,500 591,500 591,500 591,500 591,500 591,500 591,500 591,500 591,500 591,500 591,500 591,500
Office suppliers 30,000 29,167 28,333 27,500 26,667 25,833 25,000 24,167 23,333 22,500 21,667 20,833
land 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000
Other current asset 791,211 1,966,354 838,231 2,013,375 885,252 2,060,396 932,273 2,095,587 979,294 2,154,438 1,026,315 2,201,459
Total current asset 3,140,111 4,314,421 3,185,464 4,359,775 3,230,819 4,405,129 3,276,173 4,499,654 3,321,527 4,495,838 3,366,882 4,541,192
Fixed Asset
Operating fixed
1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000 1,065,000
asset
( Accumulative
-110,938 -115,375 -119,813 -124,250 -128,688 -133,125 -137,563 -142,000 -146,438 -150,875 -155,313 -159,750
depreciation)
Administrative asset 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500 4,377,500
( Accumulative
-455,990 -474,229 -492,469 -510,709 -528,948 -547,188 -565,427 -583,667 -601,906 -620,146 -638,386 -656,625
depreciation)
Total fixed asset 4,875,573 4,852,896 4,830,219 4,807,541 4,784,864 4,762,187 4,739,510 4,716,833 4,694,156 4,671,479 4,648,802 4,626,125
Total asset 8,015,684 9,167,316 8,015,683 9,167,316 8,015,683 9,167,317 8,015,683 9,216,487 8,015,683 9,167,317 8,015,684 9,167,317
Liability and Equity
Liability
Tax payable 4,705 350,195 4,705 350,195 4,705 350,195 4,705 364,946 4,705 350,195 4,705 350,195
Long term note
8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000
payable
Other
Total liability 8,004,705 8,350,195 8,004,705 8,350,195 8,004,705 8,350,195 8,004,705 8,364,946 8,004,705 8,350,195 8,004,705 8,350,195
Equity
Retain earning 10,978 817,122 10,978 817,122 10,978 817,122 10,978 851,541 10,978 817,122 10,978 817,122
Owner equity - - - - - - - - - - - -
Total owner equity 10,978 817,122 10,978 817,122 10,978 817,122 10,978 851,541 10,978 817,122 10,978 817,122
Total liability and
8,015,683 9,167,317 8,015,683 9,167,317 8,015,683 9,167,317 8,015,683 9,216,487 8,015,683 9,167,317 8,015,683 9,167,317
Equity
(Fixed Loan Structure Settings)
External forces
- Economic condition
Year 2008
In 2008, the average swine price was 53 baht / kilogram. However, the cost of swine
production was very high because of an increase in the price of food raw materials and rising
in death rate of swine.
Source:
http://www.thaivetcentral.com/veterinarywithanimals/economicaniml/72-pig-2551.html
http://www.cpffeed.com/%E0%B8%82%E0%B8%B2%E0%B8%A7%E0%B8%AA%E0%B
8%B2%E0%B8%A3/%E0%B8%82%E0%B8%B2%E0%B8%A7%E0%B8%AA%E0%B8
%B2%E0%B8%A3/tabid/64/articleType/ArticleView/articleId/285/--.aspx
http://www.nidambe11.net/ekonomiz/2007q2/2007may18p6.htm
http://www.scb.co.th/LIB/th/article/mong/2550/m1954.html
Government stability
Ministry of Commerce Thailand sets the standard in solving the problem of price rise
for swine.
- Marketing and the price of swine
- Track and check the retail price of swine very closely.
- Meet institute involved with swine such as Department of Livestock, Office
of Agricultural Economics, Swine Thailand, Swine raisers. They have to consider the
price of living swine and the wholesale and retail price of pork which suit the cost of
production in each a production period. Moreover, the consideration of the price
issues should provide benefits to a person who involve with swine such as swine
raisers, entrepreneurs, and consumers.
- Marketing management by direct contact between swine raisers and pork
sellers in order to sell the special price for consumers
Source: http://www.ryt9.com/s/cabt/564023
Swine disease
The disease is one factor of external force that has more effect to swine farm business
because if the swine get virus disease and bacteria, it can make swine get sick and then it will
be the negative impact for our business. There are two mains of disease that can damage the
swine farm.
- Swine influenza
Swine influenza is breathing system communicable disease and infect between swine,
it is occurring from Virus A and there are many type of virus H1N1 H1N2 and H3N2 (it can
infect from swine to people). Normally it will contract in swine; however it can be direct
contract to people which the swine get pathogen (virus) from environment and the group that
high opportunity to get risk to be infect with this virus is swine raisers, swine provider,
swine merchant and consumer that consume half-cooked of food. This reason can be most
important problem that effect to Pig Kingdom swine farm but if swine raisers attend about
breeding, cleanliness of swine’s house, feed of swine and health of swine, it will be safety
and reprieved from Swine influenza.
- Porcine Reproductive and Respiratory Syndrome (PRRS)
It is serious epidemic of swine that damage to economic because it will happen all
swine of age and spread out rapidly so swine raiser have to find the way to protect this
disease such as checking the cleanliness of swine’s house, pig’s excrement and urinate.
Although this disease don’t have vaccine but we can decrease the risk that emphasize for
control the factor cause of PRRS such as concern about sterilize before come into swine’s
house area. For the protection, we have to manage in the right way there are cleaning swine’s
house everyday, limited the number of swine in each of sty and vaccinate protect disease
follow vaccine program.
Diseases problem can make Pig Kingdom Farm get negative impact including direct
impact and indirect impact. Direct impact is a decreasing in the number of customer or sale
decrease, when the news of Swine influenza spread widely in society many people do not
consume pork because they concern about their safety so swine seller have to decrease order
to buy swine from swine farm. Indirect impact is unceasingly from direct impact, if customer
do not to buy pork; swine seller decrease the number to buy swine and then will remain many
swine in swine farm so this situation influence to the price of swine decrease. All of the
reason Pig kingdom Farm choose risk reduction for maintain and prevent these problem that
can occur in every time so Pig Kingdom Farm have to pay more attend about feeding
hygienic practice including with cleaning of swine, swine’s house, sty and environment. If
Pig Kingdom Farm perform like this, it will safety and keep our high quality of swine as
well.
Competitors
The number of the middle size of swine farm in the area of Chiang Saen district, is
still less. The quality control of the swine farm is not good enough. The management within
the organization includes the human resource and the financial management is not accurate.
In addition, the ability to solve the problems in the farm is still not correct. The errors that
occur will consequently change the faults to the way of learning and developing new skills
which can be applied to use positively. Another thing that the errors will help is increasing of
the competition among the entrepreneurs. However, there is one more reason that helps in
decreasing of the risk condition for the business is the entrepreneurs and customers know
more about the root of the problems and they can solve it accurately. In other words, the
entrepreneurs and the customers are able to buy the product they choose, so we can forecast
that the owner of the swine farm in Chiang Sean will be increased in amount.
Due to the facts of the customer numbers increasing continuously and the people
moved to live in Chiang Saen for more job opportunity, the topic of doing this business in the
Chiang Saen area attracts the investors. More people included the farmer of the neighbor
districts, such as the farm from the San That village; want to invest the swine farm business
in this particular district. It is good because there will always be the movement and
developing of the business. All will be result as the decreasing of pig price but increasing in
the market share.
The risk condition that occurs is the way to the standard and the quality control of our
swine farm. Learning and observing the strategies of the competitor to adapt and develop
our strategies will be the good idea. Moreover, being friendly and having the nice
relationship with the customers and the suppliers will help in the way to run the business
because the customers, the suppliers, and our company can be the supporter for each other.
Legal and regulatory risk
We have to practice following the law and regulation of Animal Husbandry
Department. The swine farm should concern about the regulation strictly. If farm does not
practice following the regulation, it will get risk to go out of business because this business
can create many problems to environment, communities, sellers and consumers
For the swine farm establishment, there are many things which we have to practice
following the regulation of Animal Husbandry Department such as register for the swine
farm establishment, the swine farm management, and swine health management.
Management of HR
Swine farm does not need to use more human resource, but we need enough
labor for the quantity of swine. We separate the duty and responsibility of each
person clearly and every worker should receive health check program every year.
Veterinarian who control and take care of swine health must have the license for
healing animal disease and the permission from Animal Husbandry Department to
work in swine farm.
Management of swine feeding
We have to concern about the quality. If we want to buy feed for swine, we
should buy from a seller who has the permission. However, if we want to mix feed
for swine by ourselves, we have to make sure that the feed have the high quality and
nutrient following legislation of quality control of animal fee. Furthermore, the site
for storing the feed should clean and dry and free from bugs.
- Managing of environment
This part is important for swine farm because this is critical problem that can provide
the negative impact on environment and other sectors who involve with swine farm. Thus,
we must have the treatment system for garbage, pig excrement, swine carcass, and
wastewater. We also have to control the treatment system in order to prevent impact on t
communities and environment.
- Garbage: cleaning and eliminating the garbage at sanitation district.
- Pig excrement: transforming the pig excrement transform to organic
fertilizer which can reduce the noxious odor.
- Swine carcass: managing the swine carcass in the right hygienic conditions.
- Wastewater: having the appropriate and standard wastewater system.
Source:
http://natres.psu.ac.th/department/animalscience/515-
408/word_files/standard%20of%20farm.htm
http://www.dld.go.th/certify/certify/page/knowledge/data/7001-2540.doc
http://www.kodmhai.com/m4/m4-2/H2/m13-22.html
http://www.acfs.go.th/km/act_food_animal_quality_2525.php
http://www.pcd.go.th/Info_serv/reg_std_water04.html
Internal forces
- Operational risk
Communities
Swine farm always creates more pollution which consists of odor, sound, pig
excrement as well as wastewater. These pollution can affect to communities located
surrounding Pig Kingdom Farm. Local people may stage a protest against our swine farm
and they may petition the government to close the farm.
Pig Kingdom Farm selects risk reduction to reduce and protect the swine farm from
problems which disturb local communities. The first problem is odor from swine which we
use microbe chemical such as Effective Microorganisms (E.M.) to strew in the area of swine
house, pig excrements, wastewater pond as well as around the swine farm. The second
problem is wastewater within the swine farm which we try to prevent and eliminate the
problem by using the effective wastewater pond. It consists of fermenting pond, dregs thick
liquid pond, and the area for dried pig excrement which reduce the effect on communities.
The last problem is the sound from the swine farm. However, we can reduce this problem
because our swine farm is located far from communities more than 2 kilometers. It can help
to reduce the problem which impacts on local communities. It can help to reduce the problem
which impacts on local communities. In addition, Pig kingdom farm always check and
control our farm system quality in every two week to control the quality and problem and it
can reduce problem which affects communities. Pig Kingdom farm will be the sponsor in
many activities of communities around the farm such as in festival event, sport event, or
many important events. This way can increase the interaction and good relationship with
community and it can reduce the petition problem about the smell, sound and wastewater to
government.
Exhaust Fan
The good ventilation is the system which creates air flow performance. The air
transfers a balance between inside and outside. There are 2 systems of ventilation; natural
ventilation and fan ventilation.
The ventilation fan or exhaust fan is popular to use in 2 sizes which are 36 inches and
48 inches. The 36 inches of fan has the absorption performance about 181 – 255 cubic meters
per minute and the 48 inches of fan has higher absorption performance about 538 – 623 cubic
meters per minute. When the fan is set up, we have to consider the air flow in the farm and
where is appropriate place to set up the fan and bring the air to inside.
Source:
http://store.tkc.go.th/multimedia/webmaster/New%20TKC/Evap/chicken_feed_closed_system
.html
http://www.panasonic.co.th/web/pid/2652
http://www.patana-chai.com/index.php?option=com_content&view=article&id=6&Itemid=12
Cooling pad
The cooling pad is made from paper or synthetic fabrics that have the ability to
absorption. It links a waterspout into the cooling pad in front of the exhaust fan when the fan
works by absorbing the heating water inside the farm to the outside. The gravitation of fan
will absorb the air flow from the opposite side through the wet cooling pad and make the air
flow to inside the farm become cool.
The way to clean the cooling pad has 2 ways to do as following;
1. Use the water spraying to clean the dust.
2. Let the cooling pad dry and use the soft brush clean the outside of the pad
to clear the dust, and then open the water to clean the dirt again.
Source:
http://www.u-saveplus.com/faq.htm
http://evaporative-hybridcool.blogspot.com/
Dynamo
Dynamo is the important one of the farm system because the dynamo generate
electricity machine to use in the farm.
The way to control dynamo is one thing that we should consider by checking from
1. Lamp and Control Panel equipments.
2. The protecting joints equipment.
3. The ground connection and the system of line correct or not.
4. Fuel, lubricant, and cooling water.
5. Air filter, belts, and resin pad.
6. The barrier of ventilation air system.
7. Battery and charger that need to be cleaned every 6 months.
Dynamo is very important to the swine farm and is the source of energy all the
whole farm, so we should take care regularly every 6 month.
Source:
http://www.u-saveplus.com/faq.htm
http://evaporative-hybridcool.blogspot.com/
Investment cost and income of Pig Kingdom farm
Year 1
Investment cost is in the first fourth month that we have establish the Pig kingdom
farm therefore for the firth fourth month we do not have income to the farm.
1 1 Land 500,000
Others 20,000
Total -520,000
1 Office 250,000
others 20,000
Total -1,270,000
8 Ventilators 9,200
4 dynamo 100,000
Others
Total -731,200
1 computer 25,000
Telephone
1 3,000
others 20,000
Total -738,000
5 1 Truck 385,000
others 20,000
Total -1,740,500
Others 20,000
Total -63,500
others 20,000
Total -1,244,000
Others 20,000
Total -61,000
Total -260,100
Others 10,000
Total 1,547,400
Others 10,000
-
Total 138,100
Others 10,000
Total 1,425,400
-
Total of years 1 3,793,600
From the table have show the investment and income of Pig kingdom in year 1.After
we have calculate the different of income and cost of investment is 3,792,600 baht that we
lost in the first year of Pig kingdom farm.
Year 2
In years 2 the farm has own regular customer therefore the sale quit stable and the
farm has buy their own swine breeder that can help to decrease the cost of piglet.
Others 10,000
Total -199,100
Administration 10,000
Others 10,000
Total 1,486,400
Others 10,000
- 199100
Total
Others 10,000
Total 1,486,400
Others 10,000
Total -199,100
Others 10,000
Total 1,486,400
Others 10,000
Total -199,100
Others 10,000
Total 1,486,400
Others 10,000
Total -199,100
Others 10,000
Total 1,486,400
Others 10,000
Total -199,100
Others 10,000
Total 1,486,400
The sum of profit in year 2 is 7,723,800 baht and the average profit in years 2 is
643,650 baht moreover that show the farm can get every cost that has investment back and
get pro fit 3,930200 baht from the operation in 2 years.
Year 3
In years 3 after the farm have their own regular customer; the sale will be stable .And
after operating in 2 years past the cost in every lot of swine quit stable there for the profit of
every lot quit stable.
Others 10,000
Total -199,100
Others 10,000
Total 1,486,400
Others 10,000
Total -199,100
Others 10,000
Total 1,486,400
Others 10,000
Total -199,100
Others 10,000
Total 1,486,400
Others 10,000
Total -199,100
Others 10,000
Total 1,486,400
Others 10,000
Total -199,100
Others 10,000
Total 1,486,400
Others 10,000
Total -199,100
Others 10,000
Total 1,486,400
The total profit in years 3 is 7,723,800 baht, and the average profit per month in years
3 is 643,650 baht per month. The total profit for operating in 3 years is 11,654000 baht.
Year 4
In Years 4 the income and cost will stable therefore the profit of years 4 is stable.
Others 10,000
Total -199,100
Others 10,000
Total 1,486,400
Others 10,000
Total -199,100
Others 10,000
Total 1,486,400
Others 10,000
Total -199,100
Others 10,000
Total 1,486,400
Others 10,000
Total -199,100
Others 10,000
Total 1,486,400
Others 10,000
Total -199,100
Others 10,000
Total 1,486,400
Others 10,000
Total -199,100
Total 1,486,400
The profit of firth years of year 4 is 7,723,800 baht and the average profit per month
is 643,650 baht and the total profit for operation in 4 years is 19,377,800 baht.
Years 5
In Years 5 the income and cost will stable therefore the profit of years 5 is stable.
Others 10,000
Total -199,100
Others 10,000
Total 1,486,400
Others 10,000
Total -199,100
Others 10,000
Total 1,486,400
Others 10,000
Total -199,100
Others 10,000
Total 1,486,400
Others 10,000
Total -199,100
Total 1,486,400
Others 10,000
Total -199,100
Others 10,000
Total 1,486,400
Others 10,000
Total -199,100
Others 10,000
Total
1,486,400
The profit of firth years of year 4 is 7,723,800 baht and the average profit per month
is 643,650 baht and the total profit for operation in 4 years is 27,101,600 baht
Conclusion
Pig kingdom farm was investment the first fourth month and after that from month
fifth to month twelfth in the first years the pig kingdom farm has the different from the cost
and income is -3,793,600 baht and in the second years the pig kingdom farm giant the profit
is 7,723,800 baht and in the third years The farm gain the highest pro fit is 7,723,800 baht
and the fourth years, fifth years the pig kingdom farm giant profits 7,723,800 baht and the
sum of profit when minus the cost in five years is 27,101,600 baht.
The problem in sale decrease
Sale decrease can be occurs by many things such as epidemic in swine, new
competitors, problem in operation of the farm and others.
These table will show the profit when sale decrease 5 percent in each month.
Year 1
Investment cost is in the first fourth month that we have establish the Pig kingdom
farm therefore for the firth fourth month we doesn’t have in come to the farm.
In month fifth we start to pick the piglet to the farm and begin to tack care the piglet
therefore in this month we doesn’t have the income and after we take care the swine in first
lot 2 month we will pick the second lot of swine to the farm.
1 1 Land 500,000
Others 20,000
Total -520,000
1 Office 250,000
others 20,000
Total -1,270,000
8 Ventilators 9,200
4 dynamo 100,000
Others
Total -731,200
Dried swine excrement
4 2 panel 20,000
1 Computer 25,000
1 Telephone 3,000
Others 20,000
Total -738,000
5 1 Truck 385,000
Others 20,000
Total -1,740,500
Others 20,000
Total -63,500
Others 20,000
Total -1,244,000
Others 20,000
Total -61,000
Others 10,000
Total -260,100
Others 10,000
Total 1,467,980
Others 10,000
Total -217,520
Others 10,000
Total 1,352,080
From the table have show the investment and income of Pig kingdom in year 1.After
we have calculate the different of income and cost of investment is 4,025,760 baht that we
lost in the first year of Pig kingdom farm.
Year 2
These tables show the sale decrease 5 percent per month from the sale forecast that
we have established.
Others 10,000
Total -275,470
Administration 10,000
Others 10,000
Total 1,410,030
Others 10,000
Total -275,470
Others 10,000
Total 1,410,030
Others 10,000
Total -275,470
Others 10,000
Total 1,410,030
Others 10,000
Total -275,470
Others 10,000
Total 1,410,030
Others 10,000
Total -275,470
Others 10,000
Total 1,410,030
Others 10,000
Total -275,470
Others 10,000
Total 1,410,030
From the table have show the profit from sale decrease 5 % per month they get in
years 2 is 6,807360 baht and the average profit per month is 567,280baht
The profit was decrease 916,440 baht per year and decrease 76,370baht per month
when compare with the sale forecast.
Year 3
These tables show the sale decrease 5 percent per month from the sale forecast that
we have established.
Others 10,000
Total -275,470
Others 10,000
Total 1,410,030
Others 10,000
Total -275,470
Others 10,000
Total 1,410,030
Others 10,000
Total -275,470
Others 10,000
Total 1,410,030
Others 10,000
Total -275,470
Others 10,000
Total 1,410,030
Others 10,000
Total -275,470
Others 10,000
Total 1,410,030
Others 10,000
Total -275,470
Others 10,000
Total 1,410,030
From the table have show the profit from sale decrease 5 % per month they get in year
3 is 6, 807,360 baht and the average profit per month is 567,2800baht.
The profit was decrease 916,440 baht per year and decrease 76,370baht per month
when compare with the sale forecast.
Year 4
These tables show the sale decrease 5 percent per month from the sale forecast that
we have established.
Others 10,000
Total -275,470
Others 10,000
Total 1,410,030
Others 10,000
Total -275,470
Others 10,000
Total 1,410,030
Others 10,000
Total -275,470
Others 10,000
Total 1,410,030
Others 10,000
Total -275,470
Others 10,000
Total 1,410,030
Others 10,000
Total -275,470
Others 10,000
Total 1,410,030
Others 10,000
Total -275,470
Others 10,000
Total 1,410,030
From the table have show the profit from sale decrease 5 % per month they get in
years 4 is 6, 807,360 baht and the average profit per month is 567,2800baht.
The profit was decrease 916,440 baht per year and decrease 76,370baht per month
when compare with the sale forecast.
Year 5
These tables show the sale decrease 5 percent per month from the sale forecast that
we have established.
Others 10,000
Total -275,470
Others 10,000
Total 1,410,030
Others 10,000
Total -275,470
Others 10,000
Total 1,410,030
Others 10,000
Total -275,470
Others 10,000
Total 1,410,030
Others 10,000
Total -275,470
Others 10,000
Total 1,410,030
Others 10,000
Total -275,470
Others 10,000
Total 1,410,030
Others 10,000
Total -275,470
Others 10,000
Total 1,410,030
From the table have show the profit from sale decrease 5 % per month they get in
years 5 is 6, 807,360 baht and the average profit per month is 567,2800baht.
The profit was decrease 916,440 baht per year and decrease 76,370baht per month
when compare with the sale forecast.
Sale Forecast Decrease 5 % different of sale decrease 5%
- 3,763,600 - 4,025,760 -262,160
Conclusion
Pig kingdom farm was investment the first fourth and after that from month fifth to
month twelfth in the first years the pig kingdom farm has the lost is 3,763,600 baht when
compare with sale forecast that have decrease 5 percent in each month the result is the lost
increase 262,160 baht in first years. And in the second years the pig kingdom farm giant the
profit is 7,723,800 baht when compare with sale forecast that have decrease 5 percent in each
month the result is the pro fit will decrease 916,440 baht and in the third years The farm gain
the highest pro fit is 7,723,800 baht when compare with sale forecast that have decrease 5
percent in each month the result is the pro fit will decrease 916,440 baht and the fourth years
the pig kingdom farm giant the profit 7,723,800 baht when compare with sale forecast that
have decrease 5 percent in each month the result is the pro fit will decrease 916,440 baht ,
fifth years the pig kingdom farm giant profits 7,723,800 when compare with sale forecast
that have decrease 5 percent in each month the result is the pro fit will decrease 916,440 baht
and the sum of profit when minus the cost in five years is 27,131,600 baht when compare
with sale forecast that have decrease 5 percent the result is the pro fit will decrease 3,927,920
baht.
These table will show the profit when sale decrease 10 percent in each month.
Year 1
Investment cost is in the first fourth month that we have establish the Pig kingdom
farm therefore for the firth fourth month we doesn’t have in come to the farm.
In month fifth we start to pick the piglet to the farm and begin to take care of the
piglet therefore in this month we doesn’t have the income and after we take care the swine in
first lot 2 month we will pick the second lot of swine to the farm.
1 1 Land 500,000
Others 20,000
Total -520,000
1 Office 250,000
Others 20,000
Total -1,270,000
8 Ventilators 9,200
4 dynamo 100,000
Others
Total -731,200
Dried swine excrement
4 2 panel 20,000
1 computer 25,000
1 Telephone 3,000
others 20,000
Total -738,000
5 1 Truck 385,000
others 20,000
Total -1,740,500
Others 20,000
Total -63,500
others 20,000
Total -1,244,000
Others 20,000
Total -61,000
Others 10,000
Total -260,100
Others 10,000
Total 1,388,560
Others 10,000
-
Total 296,940
Others 10,000
Total 1,278,760
-
Total of years 1 4,257,920
From the table have show the investment and income of Pig kingdom in year 1.After
we have calculate the different of income and cost of investment is 4,257,920 baht that we
lost in the first year of Pig kingdom farm.
Year 2
These tables show the sale decrease 10 percent per month from the sale forecast that
we have established.
Others 10,000
Total -351,840
Administration 10,000
Others 10,000
Total 1,333,660
Others 10,000
Total - 351,840
Others 10,000
Total 1,333,660
Others 10,000
Total -351,840
Others 10,000
Total 1,333,660
Others 10,000
Total -351,840
Others 10,000
Total 1,333,660
Others 10,000
Total -351,840
Others 10,000
Total 1,333,660
Others 10,000
Total -351,840
Others 10,000
Total 1,333,660
From the table have show the profit from sale decrease 10 % per month they get in
years 2 is 5, 890,920 baht and the average profit per month is 490,910 baht.
The profit was decrease 1,832,880 baht per year and decrease 152,740 baht per month
when compare with the sale forecast.
Year 3
These tables show the sale decrease 10 percent per month from the sale forecast that
we have established.
Piglet f 1,183,000
labor cost of
5 transport 2,500
Others 10,000
Total -351,840
Others 10,000
Total 1,333,660
Others 10,000
Total -351,840
Others 10,000
Total 1,333,660
Others 10,000
Total -351,840
Others 10,000
Total 1,333,660
Others 10,000
Total -351,840
Others 10,000
Total 1,333,660
Others 10,000
Total -351,840
Total 1,333,660
Others 10,000
Total -351,840
2,160
Others 10,000
Total 1,333,660
From the table have show the profit from sale decrease 10 % per month they get in
years 3 is 5, 890,920 baht and the average profit per month is 490,910 baht.
The profit was decrease 1,832,880 baht per year and decrease 152,740 baht per month
when compare with the sale forecast.
Year 4
These tables show the sale decrease 10 percent per month from the sale forecast that
we have established.
Others 10,000
Total -351,840
Others 10,000
Total 1,333,660
Others 10,000
Total -351,840
Others 10,000
Total 1,333,660
Others 10,000
Total -351,840
Others 10,000
Total 1,333,660
Others 10,000
Total -351,840
Others 10,000
Total 1,333,660
Others 10,000
Total -351,840
Others 10,000
Total 1,333,660
Others 10,000
Total -351,840
Others 10,000
Total 1,333,660
From the table have show the profit from sale decrease 10 % per month they get in
years 4 is 5, 890,920 baht and the average profit per month is 490,910 baht.
The profit was decrease 1,832,880 baht per year and decrease 152,740 baht per month
when compare with the sale forecast.
Year 5
These tables show the sale decrease 10 percent per month from the sale forecast that
we have established.
Others 10,000
Total -351,840
Others 10,000
Total 1,333,660
Others 10,000
Total -351,840
Others 10,000
Total 1,333,660
Others 10,000
Total -351,840
Others 10,000
Total 1,333,660
Others 10,000
Total -351,840
Others 10,000
Total 1,333,660
Others 10,000
Total -351,840
Others 10,000
Total 1,333,660
Others 10,000
Total -351,840
Others 10,000
Total 1,333,660
From the table have show the profit from sale decrease 10 % per month they get in
years 5 is 5, 890,920 baht and the average profit per month is 490,910 baht.
The profit was decrease 1,832,880 baht per year and decrease 152,740 baht per month
when compare with the sale forecast.
different of sale decrease
Sale Forecast Decrease 10 % 10%
Conclusion
Pig kingdom farm was investment the first fourth and after that from month fifth to
month twelfth in the first years the pig kingdom farm has the lost is 3,763,600 baht when
compare with sale forecast that have decrease 10 percent in each month the result is the lost
increase 494,320 baht in first years. And in the second years the pig kingdom farm giant the
profit is 7,723,800 baht when compare with sale forecast that have decrease 10 percent in
each month the result is the pro fit will decrease 1,832,880 baht and in the third years The
farm gain the highest pro fit is 7,723,800 baht when compare with sale forecast that have
decrease 10 percent in each month the result is the pro fit will decrease 1,832,880 baht and
the fourth years the pig kingdom farm giant the profit 7,723,800 baht when compare with
sale forecast that have decrease 10 percent in each month the result is the pro fit will decrease
1,832,880 baht , fifth years the pig kingdom farm giant profits 7,723,800 when compare
with sale forecast that have decrease 10 percent in each month the result is the pro fit will
decrease 1,832,880 baht and the sum of profit when minus the cost in five years is
27,131,600 baht when compare with sale forecast that have decrease 5 percent the result is
the pro fit will decrease 7,825,840 baht.
These table will show the profit when sale decrease 15 percent in each month.
Year 1
Investment cost is in the first fourth month that we have establish the Pig kingdom
farm therefore for the firth fourth month we doesn’t have in come to the farm.
From the graft show investment cost that high in second month because we have
building the swine house after that the cost decrease in third month and fourth month because
in this 2 month we have investment in facility and others expends.
In month fifth we start to pick the piglet to the farm and begin to tack care the piglet
therefore in this month we doesn’t have the income and after we take care the swine in first
lot 2 month we will pick the second lot of swine to the farm.
1 1 Land 500,000
Others 20,000
Total -520,000
1 Office 250,000
others 20,000
Total -1,270,000
8 Ventilators 9,200
4 dynamo 100,000
Others
Total -731,200
Dried swine excrement
4 2 panel 20,000
1 computer 25,000
1 Telephone 3,000
others 20,000
Total -738,000
5 1 Truck 385,000
others 20,000
Total -1,740,500
Others 20,000
Total -63,500
others 20,000
Total -1,244,000
8 labor cost 21,000
Others 20,000
Total -61,000
Others 10,000
Total -260,100
Others 10,000
Total 1,309,140
Others 10,000
Total -376,360
12 240 Sell swine#2 1,244,400
Others 10,000
Total 1,205,440
From the table have show the investment and income of Pig kingdom in year 1. After
we have calculated the different of income and cost of investment is 4,490,080 baht that we
lost in the first year of Pig kingdom farm.
Year 2
These tables show the sale decrease 15 percent per month from the sale forecast that
we have established.
Others 10,000
Total -428,210
Administration 10,000
Others 10,000
Total 1,257,290
Others 10,000
-
Total 428,210
Others 10,000
Total 1,257,290
Others 10,000
Total -428,210
Others 10,000
Total 1,257,290
19 250 Sell swine #6 1,296,250
Others 10,000
Total -428,210
Others 10,000
Total 1,257,290
Others 10,000
Total -428,210
Others 10,000
Total 1,257,290
Others 10,000
Total -428,210
Others 10,000
Total 1,257,290
From the table have show the profit from sale decrease 15% per month they get in
years 2 is 4, 974,480 baht and the average profit per month is 415,540 baht.
The profit was decrease 2,749,320 baht per year and decrease 229,093 baht per month
when compare with the sale forecast.
Year 3
These tables show the sale decrease 15 percent per month from the sale forecast that
we have established.
Others 10,000
Total -428,210
Others 10,000
Total 1,257,290
Others 10,000
Total -428,210
Others 10,000
Total 1,257,290
Others 10,000
Total -428,210
Others 10,000
Total 1,257,290
Others 10,000
Total -428,210
Others 10,000
Total 1,257,290
Others 10,000
Total -428,210
Others 10,000
Total 1,257,290
Others 10,000
Total -428,210
Others 10,000
Total 1,257,290
From the table have show the profit from sale decrease 15% per month they get in
years 3 is 4, 974,480 baht and the average profit per month is 415,540 baht.
The profit was decrease 2,749,320 baht per year and decrease 229,093 baht per month
when compare with the sale forecast.
Year 4
These tables show the sale decrease 15 percent per month from the sale forecast that
we have established.
Others 10,000
Total -428,210
Others 10,000
Total 1,257,290
Others 10,000
Total -428,210
Others 10,000
Total 1,257,290
Others 10,000
Total -428,210
Others 10,000
Total 1,257,290
Others 10,000
Total -428,210
Others 10,000
Total 1,257,290
Others 10,000
Total -428,210
Others 10,000
Total 1,257,290
Others 10,000
Total -428,210
Others 10,000
Total 1,257,290
From the table have show the profit from sale decrease 15% per month they get in
years 4 is 4, 974,480 baht and the average profit per month is 415,540 baht.
The profit was decrease 2,749,320 baht per year and decrease 229,093 baht per month
when compare with the sale forecast.
Year 5
These tables show the sale decrease 15 percent per month from the sale forecast that
we have established.
Others 10,000
Total -428,210
Others 10,000
Total 1,257,290
Others 10,000
Total -428,210
2,040
Others 10,000
Total 1,257,290
Others 10,000
Total -428,210
Others 10,000
Total 1,257,290
Others 10,000
Total -428,210
Others 10,000
Total 1,257,290
Others 10,000
Total -428,210
Others 10,000
Total 1,257,290
Others 10,000
Total -428,210
Others 10,000
Total 1,257,290
From the table have show the profit from sale decrease 15 % per month they get in
years 5 is 4, 974,480 baht and the average profit per month is 415,540 baht.
The profit was decrease 2,749,320 baht per year and decrease 229,093 baht per month
when compare with the sale forecast.
Sale Forecast Decrease 15 % different of sale decrease 15%
Conclusion
Pig kingdom farm was investment the first fourth and after that from month fifth to
month twelfth in the first years the pig kingdom farm has the lost is 3,763,600 baht when
compare with sale forecast that have decrease 15 percent in each month the result is the lost
increase 726,480 baht in first years. And in the second years the pig kingdom farm giant the
profit is 7,723,800 baht when compare with sale forecast that have decrease 15 percent in
each month the result is the pro fit will decrease 2,749,320 baht and in the third years The farm
gain the highest pro fit is 7,723,800 baht when compare with sale forecast that have decrease
15 percent in each month the result is the pro fit will decrease 2,749,320 baht and the fourth
years the pig kingdom farm giant the profit 7,723,800 baht when compare with sale forecast
that have decrease 15 percent in each month the result is the pro fit will decrease 2,749,320
baht , fifth years the pig kingdom farm giant profits 7,723,800 when compare with sale
forecast that have decrease 15 percent in each month the result is the pro fit will
decrease2,749,320 baht and the sum of profit when minus the cost in five years is 27,131,600
baht when compare with sale forecast that have decrease 5 percent the result is the pro fit will
decrease 11,723,760 baht
Summary
Sale decrease can be occurs by many things such as epidemic in swine, new
competitors, problem in operation of the farm and others.
The problem in the farm will be occurs when sale was decrease more than 15% per
month that will cause of surplus swine in the farm around 75 swine and it will cause of
decrease in sale around 222,093 baht per month that effect to profit decrease 222,093 per
month more over it will effect to cash liquidity in the farm so if this situation occurs more
than 3 month will effect to cash liquidity so much therefore we have 3 ways to protect and
decrease this problem are
1. If the sale decrease and have the surplus swine in the farm we will decrease in
buying of new piglet to the farm that will help to build the equilibrium point of demand and
supply in the farm.
2. Try to sale the surplus swine from last lot before sale the new lot of swine that will
help to control the age and quality for suitable for the demand of market.
3. Give the discount for the customer who buys the surplus swine, this way can help
to sale swine and increase sale moreover it can help to control the number of swine in the
farm to not more overcrowded and easy to control the quality of swine more than have the
surplus swine in the farm.
The best ways that can help to protect the sale decrease is analyses the situation of
market all time and try to find the equilibrium point of demand and supply and use it to be
the way to produce the swine and the last is have to control the quality of swine.
Chapter 7: Summary
Normally swine farm is quite popular business because it is dirty and has an
opportunity get risk from community so this is big problem of this business. However swine
farm has a few of competitor so it will be advantage of this business and from survey in
Chiang Saen, tendency of swine farm in Chiang Saen will increase and target group will also
expand too. Pig Kingdom Farm is the one of business would like o gain more profit though
selling quality of swine to market. The key to succeed in this business compose of good
planning, preparation of facing with unexpected problem, the solution and importance of the
capital together with profit. Another thing that we can notice is the need for big amount of
fund to doing swine farm so we need big amount of money to support, when business turn
critical situation.
For our vision and mission will be identical, we are going to be the best swine farm
which concern problems about air pollution, water pollution, and soil pollution. Therefore we
attend to control and manage swine farm following the standard of Animal Husbandry
Department, including fresh and clean, quality and healthy of swine. Although we practice
follow standard of Department of Livestock Development, it not mean we will not get risk or
any problem because doing real swine farm is not easy. We can find with problem that occur
from external and have an effect to swine farm. For example increasing the tend of swine
export and import, that is not only the demand of domestic consumers, but there are also the
needs of neighboring countries, even if the number of export and import of swine in
Thailand. Therefore we have to create strategy for decrease problem and will be secret of Pig
Kingdom Farm to do business smoothly. However if we create good strategy but we do not
have good operation include with Finance, Marketing, Human Resource and Operation,
swine farm can not run on smoothly, then we have to do everything to be balance.
Before we do real business, we going to know and do marketing analysis because
when do the business we will find with problem that occur form external factor. The external
factor can be affected to Pig Kingdom Farm both of direct and indirect. From survey, we
found 9 factors that can effect to Pig Kingdom Farm, There are Technology, Environment,
Social, Politic, Pollution Control Department, Ministry of Energy, Ministry of Agriculture,
The current situation and Economic. All of factor control Pig Kingdom Farm to practice in
standardization and have good management because if Pig Kingdom Farm ignore to attend
follow this factor, it may be make swine farm have some problem about sale because
customer do not trust and competitor will practice follow standardization.
Moreover swine farm have to think about competitor analysis, there are Competitor
Analysis; Pig Kingdom Farm selects Evaporative Cooling System or closed-system and the
advantages of closed-system are the cleanliness of the swine house more than opened-
system, the smell not bothers the local people than opened-system and we can better control
the swine diseases, so the swine in closed-system will be more high quality as the large swine
industry and stronger of investment. Customer Analysis; Consumers of Pig Kingdom Farm
are the retailer in the district and in a nearby district. Local people in Chiang Saen district
currently feed themselves swine in their household or buy from a nearby district. However, a
demand for swine in each day is not enough in the district and swine still lack good quality
and standard. Competitive Analysis; The competitors of Pig Kingdom Farm can be divided
into Local pork providers are the main competitors of Pig Kingdom Farm in Chiang Saen
district and some pork providers buy pork from Tesco Lotus in Mae Chan district and Macro
in Ban Du district in order to sell because pork is already packaged up an the price of pork is
cheaper than buying from wholesalers.
After that we have to do STP analysis, for segmentation Pig Kingdom Farm is the
business which is different from other general business. This business cannot separate the
segmentation in various sectors, but our swine farm divides the characteristic of our
customers according to the customers’ demands as 3 groups such as wholesale group, retail
group and household consumption. Target group, we separate the target from the occupations
of customer that they have different demand. Thus, we divide the target into 3 group,
Slaughter, Butcher and Villagers or local people. Last product positioning, we show
that Pig Kingdom Farm is the standard swine farm which we have the management and
operation systematically in sterilization, so we are one of the best swine farms in Chiang Rai
which our swine has the higher quality. Moreover, we can easily access our customers and
customer - The customers can have confidence of our swine which have the high quality
standard and safety. Moreover we attend in term of marketing mix to be clearly.
We are searching about Technical Feasibility Study and Product and operation
analysis. Pig Kingdom Farm have 2 product characteristics, there are core product and
supporting product.
Core product; we choose American landrace because they have good general
characteristics of Swine such as A white hog of long body length, having sixteen or
seventeen pairs of ribs, the arch of back is much less, pronounced than on most other breeds
of swine, the hair color must be white, dark skin spots are considered undesirable, a few
freckles on the skin are allowed but black hairs are not.
Supporting product is organic fertilizer produced from pig excrement. We sell
organic fertilizer to farmers or agriculturalists and it also is used within the Pig Kingdom
Farm, so it can help to generate indirect income and reduce the cost within the farm.
Production process
We have to taking care of Swine breeding and piglets after weaning
When piglets after weaning during 28 days of age, around 6 kilograms, we should
move sows out from piglets, but piglets still stay in the same corral around 3 to 5 days. After
that we will move piglets to take care in the corral of piglets for the prevention of stress
among piglets. Moreover, vitamins or antibiotic dissolved in water should be used to piglets
after weaning around 3 to 5 days.
Piglets are vaccinated at 6 weeks of age to protect Porcine Reproductive and
Respiratory Syndrome (PRRS). Sows and hogs are also vaccinated every 6 months (vaccine
to be available during 6 to 12 months).
Piglets are vaccinated at 7 weeks of age to protect mouth and feed rot. Sows and hogs
are also vaccinated repeatedly every 4 to 6 months (vaccine to be available during 4 to 6
months)
Piglets at half 2 months should take vermifuge and 21 days late give vermifuge again.
Sows and hogs should also take vermifuge every 6 months.
Breed swine not only to inject vaccine but have to attend about good management to
be standardization and waste system. Waste Minimization & Quality control are prevention
and eliminating smell and waste from the swine farm consists of 3 processes. There are
Biogas pond, Pig excrement pond and Using Microbe Chemical.
For income per year after deduct expense per year 7,723,800 baht.
Income after operating 5 years is 27,701,600 baht.
Swine Farm has many risks that effect to business. We divided into 2 main factors
there are external and internal. For example, the trend towards the rising price of swine in
2008, A downward trend of the amount of swine raisers, The epidemic condition and
growing tend of the feed price. Moreover there are direct risk that related with swine farm
business such as Swine disease, Competitors and Legal and regulatory risk (Register for the
swine farm establishment). All of them is about external risk but also has internal risk, it
about management include with Human resource, swine health, swine feeding and
management environment.
Pig Kingdom farm is the one of business that can gain more profit to owner and
investor, however swine farm have to practice follow the rule and regulation of Department
of Livestock Development, then both of owner and customer will be confidence each other.
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