BUSINESS PLAN FOR SAKAZJOY PIGGERY INVESTMENTS PRIVATE LTD.

Business Plan for Piggery

Title of the action:

Location(s) of the action: Lot 11 Tynwald Township of Tynwald, Harare

Partners: Marshall Masaka; Julia Chimukoko; Harzel

Name of the applicant
Shambare, Wisdom Songozo & Purity Murenha

Nationality of the Zimbabwean

applicant

Contact Persons for this Partners: Marshall Masaka; Julia Chimukoko; Harzel
action: Shambare, Wisdom Songozo & Purity Murenha

Postal Address P.O Box CY 154, Causeway, Harare

Contact Numbers 0772 376 721, 0712 511 811 and 04-757337

E-mail Address sakazjoy@gmail.com

Total Eligible Cost of the (USD) Nine thousand dollars

Business

Total duration of action Three years

Total duration of loan 36 months

repayment:

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 Table of Contents

Title section

Tittle page

Table of contents

Executive summary 1

Nature and background of the business 2

Mission, objectives, goals 3

Stakeholder analysis 4

Infrastructure to be used 5

Marketing 6

SWOT analysis 7

Implementation plan 8

Beneficiaries 9

Benefits 9.1

Ownership of business plan 10

Key personnel and organizational structure 11

Critical success factors 12

Risks and assumptions 13

Financial plan 14

Conclusion 15

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1. EXECUTIVE SUMMARY

This is a business plan for the start-up piggery production business to be undertaken at
Lot 11 Tynwald Township of Tynwald, Harare. The farm has sufficient water and has
good road access to the market. There is a ready market in Harare.

The economic and social environment has created a new breed of consumers who are
quality and health conscious. This state of affairs calls for a dynamic and innovative
producer with the necessary expertise to supply high quality and GMO free porkers in
Harare and ultimately Zimbabwe.

The business will also help in averting the high unemployment amongst the youth
which has been a result and or consequence of sanctions imposed on the country and
the liquidity crisis which has affected a lot of nations the world over.

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2. NATURE AND BACKGROUND OF THE PROJECT

This Business Plan seeks a financial loan support of USD 5,000, 00(Five thousand
dollars) to start up a profitable production business. The loan will be obtained from
Central African Building Society which was mandated by the Ministry of Youth
Development and Indigenisation to disburse loans to youths who want to venture in
business. This loan will be repaid within a period of thirty six months.

The Business Plan is developed mainly to produce porkers for sale in the country and
to increase employment amongst the youth. The main centre of attraction in the
proposed Business Plan area is the existence of market for pork in and around the
country. Pork is regarded as the widely consumed meat around the world accounting
for around 40% of the total consumption. Currently, the country is producing less than
60 % of the pork requirements in the country. This Business Plan will, thus, go a long
way in averting pork and pork products shortage in the country.

The goal of Sakazjoy Piggery Investments is to be among the top 5 suppliers of pork
in the next 3 years’ time. The business’ main product will be pork meat, however
provisions for production of other products such as pork sausages, polony and bacon.

The main constraint to the Business Plan is initial investment outlay which is required
in order to achieve the required management levels in terms of quality assurance.
Capital in the form of a loan facility is needed to purchase feeds, pig pens
construction and the purchase of the gilts and boar.

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3.1 MISSION

To be the leading poultry producer in Zimbabwe and the SADC Region.

3.1.1 SHORT-TERM OBJECTIVES

 To raise income for the owners

 To create employment for 4 youths
 To meet customers pork requirements
 Build all the structures and equipment that are required to do the Business
Plan
 To increase capital base

3.1.2 LONG TERM OBJECTIVES

 To provide employment to over 6 youths

 Expand by opening distribution offices.
 To open manufacturing plant for value addition
 To increase capacity by setting up new production farms in three years’ time.
 To supply produce in and around the country and Africa.

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4. STAKEHOLDERS

Several strategic partners have been identified for this business. These partners
include the following;
 Harare Veterinary Central office KG6, for supply of vaccines used when
breeding porkers as well as providing advice on the best ways to rear them.
 Pig Industry Board – Ascertain the quality of the pork products before they
are released on the market and assist by finding a market for the products.
 Women in Poultry in Zimbabwe - establishes or find a market for the
produce
 Boarding Schools– customers/market
 Supermarkets-customers who will provide a market for the pork products.
 Pro brands – provides feeds for the porkers
 Agri Foods – provides feeds for the porkers
 Business Plan team – production of the porkers
 Partners – To manage the day to day activities of the Business Plan such as
human resources , bookkeeping and many more
 Regulatory authorities for instance City of Harare-to inspect and approve
plans for pig pens and licence the business.
 Colcom – market for porkers

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5. FACILITIES TO BE USED

The facilities are to be constructed well before the arrival of the gilts and boar.

 Housing:
The pig pens shall be constructed under the guidance of a technical person from the
Pig Industry Board in consultation with both the Environmental Management
Authority & the City of Harare. This will enable Sakazjoy Piggery Investments to
adhere to the best practices in Pig farming.

 Water:
Water is readily available. As this is a critical resource in this business, Sakazjoy
Piggery Investments intends to put up a water tank which shall work as a reservoir.
This shall work as a contingency measure or plan.

 Electricity:
Is available but is not a major input in the business. Although it is critical in the
provision of security, maximum effort will be put to provide physical barriers.

 Equipment:
As the Business Plan becomes sustainable, there is an intention to put up cold rooms
for the storage of the carcasses. In the interim, the pigs will be taken to hired abattoirs
for slaughter, delivered and some kept in the deep freezers.

 Veterinary services:
Sakazjoy Piggery Investments will be working in conjuction with the Central
Veterinary Services (KG 6) whenever any disease is noted.

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6. MARKETING

i. TARGET MARKET
The target market shall include the following;
 Hotels
 Supermarkets
 Boarding Schools
 Take-aways
 Individuals
 Zimbabwe Republic Police messes
 Zimbabwe National Army messes
 Zimbabwe Prison Services messes
 Government Hospitals

ii. PRE-MARKETING OF PRODUCE

The market for the porkers is readily available but given the size of the Business Plan it is
necessary that the market is secured first, before embarking on production activities. The
quality standards will have been ascertained as assessment of the orders for feasibility and
viability before producing the porkers. It should be noted however that this stage is the most
complicated as it may be difficult to hold the market over an extended time

iii. MARKET RESEARCH AND ANALYSIS

Market research was started in 2010 in order to establish if the market base is sustainable, the
consumer behaviour and the level of competition in the industry. research is on-going and
information gathered and analysed so far indicates that there is a great potential that needs to
be tapped on.

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 iv. PRICING

We shall use the cost plus mark-up pricing technique. This would keep our produce
affordable to our target market, as we will always strive to transfer production efficiency to
our customers.

v. SALES TACTICS

We shall supply Women in Poultry in Zimbabwe who have a ready market to sell on our
behalf and pay us within seven working days as well as using other methods at our disposal
such as links that exists between Partners and their employers as well as direct sales at the
plot.

vi. ADVERTISING AND PROMOTION

Advertising shall be done through placement of adverts in the classified section at least twice
a month. The Partners shall also make use of the Commercial Farmers’ Union electronic
classifieds platform, and direct selling to institutions such as schools, hospitals, restaurants,
hotels and other institutions as stated in part 6 (i).

vii. VALUE ADDITION

While the value-addition chain can be traced all the way from farm inputs to a porker, this
component of the concept refers to post-production processing and handling. In future,
Sakazjoy Piggery Investments will start processing and provide services to other producers,
suppliers and traders.

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 viii. INDUSTRY ANALYSIS

The main competitor is Colcom Company, and based on the research carried out feedback
received from most customers is that the supplier is failing to meet the demand as some
customers receive erratic deliveries. This will pose a great opportunity for Sakazjoy Piggery
Investments to venture into business without much competition.

ix. ENTRY THREAT

In view of the location of our business, there are no major threats of new firms since the
surrounding area is already occupied by other different firms. Therefore there is no room for
new entrance.

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8. SWOT ANALYSIS

Strengths

 Can offer produce at low prices due to low administrative overheads.

 The rate of turnover is high, giving us an opportunity to expand fast by reinvesting the
profits
 Demand is very high.
 Competent and dedicated personnel.
 The Business Plan is sustainable in the long run.

Weaknesses

 Lack of financial resources to start the piggery business

Opportunities

 Increased purchasing power because of economic stability and stable currency

 Increased capacity will result in gaining of scale
 Government policy is encouraging youths to venture into business so government
support will always be there
 Increased health awareness on consumption of white meat will result in increased
sales of porkers

Threats

 Drought might reduce the amount of grain that is reserved for stock feeds.
 Competition from established producers such as Colcom
 Frequent power outages

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9. IMPLEMENTATION PLANS

The business will be run in such a manner that there will be continuous monthly supply to the
market. A constant number of gilts will be bought and serviced every fortnight until a ten sow
head is achieved and a constant number of servicing will be done so that a constant number
of farrowing, weaning, growers to the market is maintained.

Potential customers would be notified about the expected date when the porkers would be
ready beforehand so that they can show interest. Orders for produce would be accepted prior
to slaughtering where provisional quality, quantity and delivery dates would be agreed upon.

10. BENEFICIARIES

The beneficiaries to this Business Plan are the youths in this community who are likely to be
employed as the business expand as well as the Partners who will become financially
empowered.

10.1 INTENDED BENEFITS

 Raise income for the owners of the business

 Create employment for the youths
 Improve the standard of living in the community
 Improved disposable income for youth

10.2 UNINTENDED BENEFITS

 Reduction of poverty in the community

 Reduction in crime in the community as the business expand more youths will be
employed

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  Improved health as people will be consuming more of white meat

11. OWNERSHIP

The piggery Business Plan will be wholly owned by Partners. From the initiation,
all the partners will not be earning any salary from the business up until it is self-
sustaining.

12. KEY PERSONNEL AND BUSINESS PLANSTRUCTURE

The following individuals in their capacity as Partners or management add value

to the company through their expertise.

ORGANOGRAM

Managing Director

Finance Business Marketing Loss Control Maintenance

Manager Development Executive Officer Manager
Manager

PARTNERS & SHAREHOLDING STRUCTURE

Marshall Masaka, Julia Chimukoko, Harzel Shambare, Wisdom Songozo and Purity Murenha
are the Partners/Directors of Sakazjoy Piggery Investments Private Limited with a 16%; 18%;
21%, 15% and 30% respectively shareholding structure. The shareholding structure was
arrived at, taking into account individuals’ cash contributions, material resources, skills and

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experience. Mrs H. Shambare will be in charge of the day to day management of the business
and Human Resources whilst Mrs P. Murenha will be in charge of Loss Control and Mr M.
Masaka, Finance and Mrs J Chimukoko will be doing the marketing and research of the
products.

Sakazjoy Piggery Investments has engaged the services of Musakana and Musakana Partners
for its legal representation. The legal firm is located at Hungwe House, First Floor, No.55 J.
Moyo Avenue, Harare. On another note, the business has also roped up the services of
Standards Association of Zimbabwe (SAZ), on the checking and confirming the quality of its
products before released on the market.
This stance was taken so as to assure our clients supply of quality products. Sakazjoy Piggery
Investments will also acquire a licence in Health and Butchery from the City of Harare before
operational. The business will also be subjected to routine inspection so as to maintain high
standards.

MANAGING DIRECTOR (MD) - Harzel Shambare

Masters in Business Administration (UZ) Holder of Diploma in Agriculture; PhD in Plant &
Animal Husbandry, 8 Years Principal Executive for Gwebi College

Responsible for day today management of the operations at Sakazjoy Investment, and
implementation of any new ideas generated from the partners. The MD will also have
mandate to purchase all the requisite materials needed in the rearing of porkers such as feeds,
vaccines, food containers and building materials.

BUSINESS DEVELOPMENT MANAGER - Julia Chimukoko

Holder of BSc Degree in Marketing (Institute of Marketing Management – South Africa), 5
Years with Ministry of Research.

This person is the one with the technical expertise in pig farming. The individual underwent
training with the Pig Industry Board. This person will be overseeing the production of the
porkers with the help of some other partners who will be feeding and cleaning the pigs.

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LOSS CONTROL OFFICER - Purity Murenha
Holder of Higher Diploma in Security (UZ), 25 Years in ZRP as Officer Commanding
Frauds.

This person will be responsible for any pilvages that may occur within the business, both on
the farm and from the marketing area. All loses should be guarded against, tracked and
treated accordingly to avoid re-occurrence and minimize loses to the business.

MARKETING EXECUTIVE
Holder of BA Degree in Marketing (Chartered Institute of Marketers), 3 Years with Econet
Wireless.
This person will be responsible for selling and distribution of the produce to customers
through placement of adverts, design of marketing plans, forecasting sales and market
development as well as conducting marketing research in liaison with other stakeholders.

FINANCE MANAGER - Marshall Masaka

Holder of BTech (NUST), 3 Years Accountant for Nestle Zimbabwe.
This person will be responsible for giving business financial advice, preparing budgets, cash-
flows, payments of suppliers, follow-up on debtors, processing of statutory payments (Tax,
NSSA, Aids Levy, pensions)

MAINTENANCE MANAGER
Journeyman Class 1, complete Apprenticeship as a Boiler Maker with ZISCO Steel & 15
years working experience with Zimbabwe Sugar Refinery.

This person will be responsible carrying out all the repairs within the business.

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13. CRITICAL SUCCESS FACTORS

In order to make sure the Business Plan is a success, the Partners will adhere to the
following:

 Use of good breeds

 Ethical conducts and adherence to quality services.
 Good management that includes correct feeding, pest and disease control and hygiene.
 Hire professional staff that will be professionally managed.
 Avoid bureaucracy in running the business
 Look for adequate in-service training to the staff.

14. RISKS AND ASSUMPTIONS

Risks

The major risks that the business might face are as follows:
 It may face difficulties getting some feed like maize and bran
 The economic climate may reduce the income that is traditionally channelled towards
our produce.
 Unforeseen outbreak of diseases such as:
 Iron deficiency
 Abortion
 Porcine stress syndrome
 Mange
 Diamond skin disease

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Assumptions

 The prevailing economic and political conditions will remain as they are or change for
the better
 The marketing drive will yield results within a short time
 Key raw materials will be available on the market

15. FINANCIAL PLANS

The Business Plan will be financed through a loan of US 5,000 (five thousand US Dollars)
from Central African Building Society (CABS) which will be repaid in a period of three
years with interest of 16% per annum.The loan amount will be start-up capital which will be
used to construct pig pens,buy feeds, vaccines, protective clothing, equipment, security
fences, and breeding stock. The instalment will be $205 per month for thirty six months.

See appendices for cash flow

16. CONCLUSSION
There is need for financial support in this Business Plan because of a number of reasons,
which include:
 The potential of the Business Plan to employ youths will go a long way in
circumventing the high levels of unemployment in the country.
 The great potential in the piggery production in the wake of improved consumer
buying power.
 High returns necessitated by quick sales and short operating cycle.
 There is a ready market for the produce and efficiency will enable us to charge
affordable prices.
 The Business Plan can build its own financial base for further expansion

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The repayments of the loan and the interest thereof will be met without fail.
APPENDI
X

  ITEM Year 1 Year 2 Year 3

I Opening balance - 3,018.00 5,551.00

ii Cash Inflow:      

  1. Loan from CABS Bank 5,000.00 - -

  2. Owner's contribution 4,000.00 - -

12,500.0
  3. Sales - 0 16,000.00

  4. Misc receipts - - -

15,518.0
  Total Cash Inflow (A) 9,000.00 0 21,551.00

iii Cash Outflow:      

 
1. Investment Costs:      

  - Pigsties 1,000.00 - -

  - Slaughtering machinery 1,000.00 - -

  - 2 Deep freezers 800.00 400.00 -

  - Maize & ban 700.00 960.00 1,000.00

  - One Generator 700.00    

  - Butchery knives 150.00 - 150.00

  - Gilts & boar 1,000.00 1,000.00 1,500.00

 
2. Operating Costs:      
 
(a) Fixed Operating Costs:      

  - Rentals - 1,000.00 1,000.00

  - Wages & Salaries - 6,000.00 7,000.00

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(b) Variable Costs:      

35.00
  - Bank charges 35.00 35.00
 
- Advertising & promotion 100.00 75.00 50.00

  - Insurance 35.00 35.00 35.00

- Fuel 150.00 150.00 200.00

  - Stationery 30.00 30.00 30.00

  - TelOne bills 20.00 20.00 20.00

  - ZESA bills 25.00 25.00 25.00

- Ecoweb (Internet & e-mail
  bill) 50.00 50.00 50.00

  3. Interest charges 67.00 67.00 67.00

  4. Taxation 120.00 120.00 150.00

  Total Cash Outflow (B) 5,982.00 9,967.00 11,312.00

         

iv Net Cashflow (A-B=C) 3,018.00 5,551.00 10,239.00

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