PROJECT REPORT ON

PIG FARMING

SUBMITTED BY

Vinu Kumar CA
No 44 Kaikeri Gonikoppa Virajpet 571213
Mobile No.: 9448406493

NODAL TRAINING INSTITUTE

Self

SUBMITTED UNDER

Agri Clinics & Agri Business Center Scheme

Sponsored by-
Ministry of Agriculture & Farmers Welfare, Government of India
National Institute of Agricultural Extension Management
(MANAGE), Hyderabad & NABARD
www.agriclinics.net

PREPARED ON

2020 - 21
Project Report on Goat Farming by Vinu Kumar CA Page 2 of 15

CONTENTS

CHAPTER NO. PARTICULARS PAGE NO.

I. HIGHLIGHTS OF THE PROJECT REPORT

A. About the Promoter 3

B. Project Profile 4

II. PROJECT DESCRIPTION 5

III. MARKET POTENTIAL 6

IV. EXTENSION ACTIVITIES 7

V. SWOT ANALYSIS 8

VI. ECONOMICS OF THE PROJECT

A. Basis & Presumptions 9

B. Total Cost of Project 10

C. Means of Finance 11

D. Projected Performance & Profitability

Flock Production Chart 12

Projected Profitability 13

E. Financial Analysis 14
F. Term Loan Repayment 15
 CHAPTER - I

HIGHLIGHTS OF THE PROJECT REPORT

A. ABOUT THE PROMOTER

PARTICULARS ABOUT THE PROMOTER

1. Name : Vinu Kumar CA

2. Address : No 44 Kaikeri Gonikoppa Virajpet 571213

3. Contact number 9448406493

4. Date of birth : 17/12/1976

5. Educational qualification : PUC

6. Project location : Kaykeri

7. Professional Experience 16

8. Constitution : Proprietorship
B. PROJECT PROFILE (FINANCIAL)

PARAMETERS VALUES

1. Breed Osmanabadi

2. Unit Size

Doe 25

Buck 1

3. Product Kids, Mannure etc

4. Cost of the project 604,112

5. Bank loan 513,495

6. Margin money 90,617

7. Financial Indicators

BCR at 15% DF 3.44:1

NPW 15% DF(Rs.) 3,777,116

IRR (%) 84.42

DSCR 8.5

8. Interest rate (% per annum) 8

6 years including moratorium

9. Repayment period
for the 1st year
 CHAPTER - II

PROJECT DESCRIPTION

Introduction

Pig is a multi functional animal and plays a significant role in the economy and nutrition of landless, small and
marginal farmers in the country. Pig rearing is an enterprise which has been practiced by a large section of population
in rural area. Pigs can efficiently survive on available shrubs and trees in adverse harsh environment in low fertility
lands where no other crops can be grown. In pastoral and agricultural subsistence societies in India, pig is kept as a
source of additional income and as an insurance against disaster.

Pigs are among the main meat-producing animals in India , whose meat is one of the choicest meats and has huge
domestic demand. The emerging favorable market conditions and easy accessibility to improved pig technologies are
also catching the attention of entrepreneurs. Due to its good economic prospects, pig rearing under intensive and
semi-intensive system for commercial production has been gaining momentum. A number of commercial pig farms
have been established in different regions of the country.

Production Technology

Project Location:

Pig farm is located in the area where assured market round the year is available. It is easily accessible to the main
road.

Housing:

Low cost housing will be constructed in such a way in a raised platform (about 1 meter height from ground level) by
using bamboo/wooden poles or ‘pakka’ building by establishing concrete pillars. Floor and side walls will be made of
wooden material. Roof will be thatched with coconut leaves, grass or asbestos sheets. . Average floor space per kid
is 0.75 to 1 sq. meter. Floor should have at least 1 cm space between bamboos/wooden planks to allow passage of
dung and urine down to the ground.

Feed & Fodder cultivation:

Fertile land with assured irrigation facilities is available so that fodder crops could be successfully raised and
abundant good quality green fodders will be made available for animal feeding throughout the year.

Water:

Good quality fresh water for animal drinking and for the cleaning, washing etc. is available.

Labour:

Honest, economic and regular supplies of labours are available.

Veterinary Aid:

Veterinary aid/breeding centers facilities is availability near the pig farm.

 CHAPTER - III

MARKET POTENTIAL

In India pig meat is preferred by all. Indians' love for pig meat has led to the commodity's price increasing at 20% per
annum. The demand for pig meat is increasing faster than the growth in pig population.

The pig meat is a high protein diet with high nutritional value. The pig meats are widely used in various hotels and
restaurants. It is also used at special occasions like parties and marriages.

Direct marketing of animals is highly profitable. Involvement of middleman can reduce the price of animals. There is
also scope for exporting Frozen Pig Meat.

There is always good opportunity for pig owners during Bakri Id festival. There is a mad rush of customers looking for
pigs during this festive period, which they would sacrifice on Bakri Id day. The prices pig goes high varying between
Rs 10,000 and Rs 50,000 per pig.

As the demand far exceeds supply, pig meat prices have been increasing steadily. This increased price has created a
need and opportunity for a large scale organized and scientific method of pig rearing in controlled conditions (Stall-
Fed method).
 CHAPTER - IV

EXTENSION ACTIVITIES

1. Starting a pig farming business requires planning and preparation. Before starting a pig farm the entrepreneurs/
farmers are generally advised to undergo training. They can contact Local Animal Husbandry Department
staffs/Veterinary College/agriculture university etc. for the purpose. However availability of training facilities &
resources are inadequate. Hence I will provide training on pig farming to farmers both onsite and off-site. During
training program special thrust health management (medications and vaccinations used), fodder management, kids’
management & kind of records to be kept in the farm will be also given.

2. For the farmers of nearby locality, visits will be arranged on my pig farm & they will be educated on scientific
lines regarding various aspects of pig management. It will help them to improve their knowledge and skill regarding
scientific practices so as to enable them to adopt the same.

3. Farmers will be motivated to adopt improved breeds of pig.

4. I will take Initiatives to strengthen linkages between State Departments, Dairy Development agencies, NGO’s and
farmers.

5. For farmers who have decided to avail loan from bank for pig farming, assistance will be provided to prepare
their bankable project report.

6. For the marketing of animals, farmers will be provided necessary support & guidance.

7. Visits of farmers will be arranged to exhibitions with the prime objective of exposing them the technological
innovations.

8. Nowadays internet has become important tool to get latest information. There are various websites available on
pig farm which provides useful content. This information will be shared to farmers.

9. Necessary assistance will be given to farmers for setting up model sheds and pig farm units.

10. Field visits of pig farmers will be arranged to progressive farmers & research stations which will motivate them
to adapt good husbandry practices.
 CHAPTER - V

SWOT ANALYSIS

Strengths:

• Low labor requirement.

• Pig is a multi functional animal and plays a significant role in the economy and nutrition of landless, small and
marginal farmers in the country.

• Pigs can efficiently survive on available shrubs and trees in adverse harsh environment in low fertility lands where
no other crop can be grown.

• The initial investment needed for Pig farming is low.

• No religious taboo against pig slaughter and meat consumption prevalent in the country.

• Pig creates employment to the rural poor besides effectively utilizing unpaid family labor.

• Pigs are strong creatures that are able to resist various diseases.

• Since pigs are relatively small in size, the facilities and amenities to support them are also minimal.

• Pigs generally love being with humans and they are extremely docile.

• They have a high fertility rate achieving maturity with just 5 to 6 months. The probability of producing twins is high.

• Risk associated with drought is less in commercial pig farming compared to other livestock breeds.

• Pigs are good instruments to enhance the health of the grazing land and minimize encroachment of bushes.

• Pig meat is a great appeal to the public because of the health benefits it provides to its consumers. It is extremely
low in calories. This is good for people who have low energy diet scheme.

Opportunities:

• High and ready market of pig meat.

• Confirmed ever increasing Market price.

Weakness

• Large-scale, organized pig farming has not yet become a successful venture in the country.

• High mortality rate of pig kids

Threats

• The pig population is increasing & according to the government census, declining grazing land poses a big
challenge to the industry.
 CHAPTER - VI
ECONOMICS OF THE PROJECT
A. BASIS & PRESUMPTIONS
PARTICULARS UNIT QUANTITY
I. Techno-economic parameters
Breed of pig Landracer
System of rearing Semi Intensive
No. of does 25
No. of bucks 1
Age of maturity Months 10 to 12
Kidding interval Months 8
No. of kidding per year 1.5
Kidding percentage % 80
Average litter size (average of single, twinning, triplet, quadruplet) 2
Sex ratio 1.1
Mortality of kids % 20
Saleable age of kids Months 11
Payback period: 6 years including moratorium for the 1st year
II. Expenditure norms
Space requirement per head for buck Sq.ft 15
Space requirement per head for doe Sq.ft 15
Space requrement per head for kid Sq.ft 4
Cost of construction of shed for buck,doe & kid Rs./sq.ft 140
Cost of one doe (Female) Rs. 7,500
Cost of one buck (Male) Rs. 9,000
No. of unskilled labour Nos. 2
Cost of one semiskilled labour/annum Rs. 80,000
Cost of Chaff of cutter- 1 nos. Rs. 10,000
Requirement of concentrate feed (adult animal/month) Kg. 10.5
Requirement of concentrate feed (kid/month) Kg. 4.5
Rate of concentrate per Kg Rs. 17
Misc. expenditure i.e. Vaccine medicine and Veterenery aid per animal per
Rs. 100
year
Electricity and Water supply per month 1,000
Rate of interest for bank loan % 8
Own contribution in project cost % 15
III. Income norms
Sale price of Buck (at the age 11 months) Rs. 22,000
Sale price of Doe (at the age 11 months) Rs. 22,000
B. TOTAL COST OF PROJECT

PARTICULARS UNIT UNIT RATE QUANTITY AMOUNT

Rs. Rs.

I.Capital Cost

1.Land Own

2.Site development Ls. 30,000

3.Cost of does Nos. 7,500 25 187,500

4.Cost of bucks Nos. 9,000 1 11,250

5.Shed of does Sq.ft. 140 375 52,500

6.Shed of bucks Sq.ft. 140 15 2,100

7.Shed for kids Sq.ft. 140 375 52,500

8.Equipment for feeding-ghemale & other Nos. 100 26 2,625

9.Chaff cutter Nos. 10,000 1 10,000

10.Rope,chains Ls. 5,000

11.Water storage and distribution Ls. 10,000

12.Contengencies % 5 18,174

TOTAL-A 381,649

II.Working Capital (Ist Year requirement)

1.Fodder cultivation Acre/season 5,000 2 10,000

2.Concentrate feeds for two months @ 7.5 kg per
Kg. 17 390 6,630
animal/month

3.Cost of concentrate feed for kids @ 4.5 kg

Kg. 17 135 2,295
month/kid for one months

4.Wages of labour per annum Per labour 80,000 2 160,000

5.Insurance % 5 9,938

6.Misc expenditure i.e.vaccine, medicine /Animal/year 100 26 2,600

7.Electricity and water supply /month 1,000 26 26,000

8.Transport charges Ls. 5,000

TOTAL-B 222,463

TOTAL COST OF PROJECT TOTAL (A+B) 604,112

C. MEANS OF
FINANCE

PARTICULARS UNIT UNIT RATE AMOUNT Rs.

1. Term loan % 85 513,495

2. Own contribution % 15 90,617

TOTAL 604,112

3. Subsidy entitlement @36% from NABARD under AC & ABC Scheme 217,480
D. PROJECTED PERFORMANCE & PROFITABILITY

I. FLOCK PRODUCTION CHART

PARTICULARS IYEAR IIYEAR IIIYEAR IVYEAR VYEAR VIYEAR

Nos. of kidding/year 1.5 1.5 1.5 1.5 1.5 1.5

Nos. of kids born male 38 38 38 38 38 38

Nos. of kids born female 38 38 38 38 38 38

Nos. of kids died male 20% 8 8 8 8 8 8

Nos. of kids died female 20% 8 8 8 8 8 8

Nos. of male kids available for sale * 30 30 30 30 30

* Kids produced in first year will be sold in second year & so on.

Nos. of female kids available for sale - 30 30 30 30 30

II. PROJECTED PROFITABILITY
(Value in
Rs.)

PARTICULARS UNIT UNIT RATE QUANTITY I YEAR II YEAR III YEAR IV YEAR V YEAR VI YEAR

I. Income

From sale of male pigs Buckling 22,000 30 - 660,000 660,000 660,000 660,000 660,000

From sale of female pigs Doeling 22,000 30 - 660,000 660,000 660,000 660,000 660,000

Mannure Tonne 5,000 5 25,000 25,000 25,000 25,000 25,000 25,000

Interest on subsidy @ 6% 13,049 13,049 13,049 13,049 13,049 -

Subsidy - - - - - 217,480

TOTAL (A) 1,358,049 1,358,049 1,358,049 1,358,049 1,358,049 1,562,480

II. Expenditure

Concentrate feeds Rs./kg 17 3,150 53,550 58,905 58,905 58,905 58,905 58,905

Concentrate feeds for kids Rs./kg 17 1,620 27,540 30,294 30,294 30,294 30,294 30,294

Fodder cultivation acre/year 5,000 1 5,000 5,000 5,000 5,000 5,000 5,000

Unskilled workers Nos. 80,000 2 160,000 176,000 176,000 176,000 176,000 176,000

Misc expenditure i.e vaccine, Per animal 100 85 8,500 8,500 8,500 8,500 8,500 8,500
medicine

Insurance of animals % 5 9,938 9,938 9,938 9,938 9,938 9,938

Animal/yea
Electricity and Water supply 1,000 26,000 28,600 31,460 34,606 38,067 41,873
r

Transport charges Ls. 5,000 5,500 6,050 6,655 7,321 8,053

TOTAL (B) 295,528 322,737 326,147 329,898 334,025 338,563

III. Net Income TOTAL(A-B) 1,062,521 1,035,312 1,031,902 1,028,151 1,024,024 1,223,917
E. FINANCIAL ANALYSIS

(Value in Rs.)

PARTICULAR I YEAR II YEAR III YEAR IV YEAR V YEAR VI YEAR TOTAL

Capital costs 381,649

Recurring costs 188,042 167,013 326,147 329,898 334,025 338,563

TOTAL COST 677,177 167,013 326,147 329,898 334,025 338,563

Benefit 1,358,049 1,358,049 1,358,049 1,358,049 1,358,049 1,562,480

Depreciated value of building @10% 62,707

Depreciated value of machinery &

7,552
equipments @15%

Closing stock value (adult & kids) 144,911

TOTAL BENEFIT 1,358,049 1,358,049 1,358,049 1,358,049 1,358,049 1,777,650

NET BENEFIT 680,872 1,035,312 1,031,902 1,028,151 1,024,024 1,223,917

Discounting factor @15% 0.87 0.76 0.66 0.57 0.5 0.43

NPV cost at 15% DF 589,144 245,280 215,257 188,042 167,013 145,582 1,550,318

NPV benefits at 15% DF 1,181,502 1,032,117 896,312 774,088 679,024 764,390 5,327,434

NPW at 15% DF 3,777,116

BCR at 15% DF 3.44:1

IRR% 84.42
F. TERM LOAN REPAYMENT

Rate of interst - % per annum : 8

Opening balance of term loan : 513,495
(Value in Rs.)

Loan Total
Year Outstanding Net Income Principal Interest Repayment Net Surplus DSCR

1 513,495 - - 41,080 - - -

2 513,495 1,035,312 102,699 41,080 143,779 891,533 7.2

3 410,796 1,031,902 102,699 32,864 135,563 896,339 7.6

4 308,097 1,028,151 102,699 24,648 127,347 900,804 8.1

5 205,398 1,024,024 102,699 16,432 119,131 904,893 8.6

6 102,699 1,223,917 102,699 8,216 110,915 1,113,002 11.0

Average DSCR 8.5