Qn1: Identify a business idea that you would like to pursue.

Assess the strategic

window for this idea.
Pigs can birth up to 15 offspring at once and that is just one of the things that make
pig farming attractive to investors. Pigs also grow very fast and pork meat is in huge
demand in most countries where there is a minority of people practicing religions that
forbid consumption of pork meat. In a typical pig herd, there are the males which are
known as the boar, the females known as the sows and the little pigs known as the
piglets or the farrows. Pig farming is very lucrative. One can get more than 200 new
piglets in a year even with a small herd and that’s a lot of money if you are able to
grow them to the right size and sell them. Pigs have low mortality rate compared to
other animals. They are more rugged and easier to raise and can also survive days
without food or water. Pigs are also cheaper to raise compared to fishes or poultry
because they can eat most foods that humans eat and even if you have to buy feed
for them, their feeds are cheaper than those of other animals. The immune system of
pigs is higher than other animals. As long as you give them the needed vaccines
regularly, they would not fall sick. Likewise, pigs also generate more profit.

We can argue that pig farming business is a very profitable business and many
people are making money all over the world by starting a piggery business. However,
to build a successful, sustainable pig farming business, one requires sufficient
knowledge of how to efficiently raise the pigs, good management skills, and a good
piggery business plan. Pig farming is a lucrative business, providing income for
millions of people, but there are some essential things one needs to do before they
venture into the piggery business. One must decide on the size of the pig farming
business project i.e. the number of sows you want to keep; location of the pig farming
business e.g. a piggery farm, and the target market. These choices will be affected
by the amount of capital one has and the size of the target market.

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Qn2: Develop a business plan for the idea and discuss the various strategies you
will employ in the business at various stages of its growth.

Piggery Business Plan

Executive Summary
1.1.1 Introduction
RDM enterprises is a pig farming business formed on guidance provided under the
partnership act, 2010 and partnership regulation, 2016. It is a sole proprietorship. It
will be registered with the relevant authorities in Uganda. The farm and processing
plant will be established in land (5 acres) purchased by the farm in any area as
agreed. The business will be concerned with the rearing of pigs and piglets. To start
the business, I shall need capital of about UGX 112.5 million which will be sourced
from my savings.

1.2 Company Overview

1.2.1 Products and Services
RDM enterprises is a pig farming business that has been licensed and it is fully
committed to operating the business while conforming to the Ugandan laws. The
business will focus on the rearing and sales of pigs, and the processing and
packaging of pork for consumption. The following are the services the business will
focus on in the course of running the pig farming business; sales of pigs, sales of
processed and packaged pig meat (pork), breeding services, shearing services and
boarding services. 

1.2.2 Vision
Our vision statement at RDM enterprises is to be recognized as the top leading pig
farming business in the country and to also be counted amongst the top ten pig
farming brands in the Uganda.

1.2.3 Mission
Our mission in the industry is to become the number one reputable brand in the
district that sells pigs and piglets, together with processed and packaged pork and
other pig products at affordable prices. We want to establish the business to the level
where it would compete amongst the leading pig farming businesses in Uganda and

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 in the region. In due time, we will expand the business to the international stage, into
countries in East Africa, Africa and parts of Asia and Europe.

1.2.4 Business Structure

RDM is a pig farming business that will be owned and managed by Mr. Ronald David
Mukisa who undertook a short course in piggery management and value -addition
which knowledge will be applied for the success of the business. He will make sure to
hire employees who, amongst other things, are loyal, competent, dedicated, and
have a very positive spirit in doing business. Also, he will make sure more than 60%
percent of the required positions are occupied by prospective candidates who have
had several years of experience. The following are the key positions to be filled:
General Farm Manager, Accountant/Administrator, Piggery Supervisor, Sales and
Marketing Officers, Field Employees and Receptionists. However, in the first two
years of operation, he shall employ a general manager, one field employee and he
shall volunteer to do some of the work due to limited finances. 

1.2.5  Premises
The location of the business is important to customers. This is because it will reduce
the cost of transportation. It is located along a road. It will help transportation
because customers will purchase live pigs with trailers and long vehicles. This
location is not close to residential areas in the town. This will also help us to transport
the raw materials and feeds from agro-based companies in the state. This is to
prevent residents from complaining of the noise of the animals. This location is good
for expansion because there is vast area of land available. The secured two plots of
land will be used for the start. This space will house fifty pens of 10 by 10 feet built
strategically. This will also house business offices. Plans have been made to build
low cost housing that will last for a long time. The place is located in an area with
access to power and water.

1.2.6 Growth Program

Once the business has been established, we plan to implement the following growth
strategy. It is anticipated that it will take approximately five years to gain sufficient
experience and level of profits before any expansion plans are implemented. We
shall not set an inflexible timetable for expansion but will wait until a sound basis of

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 experience, earnings and cash flow is achieved. Accounting and cash flow controls
will be in place with profit and loss statements prepared for expansion on a six-
monthly basis. Internal controls for accounting, money handling and inventory will be
in place.
Our attorney will review all documentation regarding expansion. This will include
leases, employment and incentive agreements, licensing, important commitments
customers, etc.

2.0 Market Analysis

2.1 Market Trends
One notable trend in the industry is that pig farmers no longer focus on rearing pig
livestock alone but are finding it pleasurable to compliment the business with either
crop cultivation or pig meat (pork) processing and packaging. Also, even though pig
raising had been in existence for long, the industry has in no way become
oversaturated. There is still room for innovations and improvements. Technology has
helped the industry in no small way as regards the packaging and preservation of the
products. Another trend is that, because of improvements in technology, it has
become very easy for pig farmers to experiment with cross-breeding. Various species
of pigs are cross-bred to produce new breeds.

2.2 Business Growth Trends

Pork production and consumption have risen rapidly in Uganda over the past decade,
driven by population growth, urbanization, increasing incomes and changing tastes.
In 2011, Uganda had the highest per capita consumption of pork in East Africa (3.4
kg/person per year). The number of pigs has increased more than tenfold from less
than 200,000 three decades ago to roughly 3.2 million. More than 1 million
households in Uganda raise those pigs. The majority of the pigs are kept by women
in rural areas, with limited access to technology, services and markets. Local pig
farmers hold greater percentage of the market share. When I start my business, I
plan to take more than 50% market share in the long run because I will employ the
latest production technique more than the local farmers. All the pig farmers are my
targeted customers because of the production technique in artificial insemination in
pig production to be used. I plan to be a major factor in the market.

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 The FAO said that it believes that the rapid growth of developing economies
suggests meat consumption will continue to grow and outpace the growth of supply.
The growth trends on the market is seriously increasing rapidly and more consumers
preferring to eat pork because it is affordable and readily available upon increase
production. However, products in the market are not packaged and I will take
advantage of this. We will introduce product packaging to increase product
development. The pig industry can be a very reliable one due to certain attributes of
pigs and the Ugandan production system. Pigs have a high survival rate and also
have the ability to utilize a host of agro-industrial by-products and crop residues with
little or no processing and minimal cost. Pork is the most popular meat consumed in
the world today and about 44% of the world meat protein consumption is derived
from pork and pork products (FAO, 2004).

2.3 Target Market

As you would expect, the target market of those who are the end consumer of
livestock farm produce and also those who benefits from the business value chain of
the agriculture industry is all encompassing and far reaching. Every household
consumes produce from livestock farms be it meat, milk, and the skin (leather) used
for bags, belts and shoes production et al. So also a large chunk of manufacturing
companies depends on livestock farms for some of their raw materials. In essence a
pig farmer should be able to sell his or her farm produce to as many people as
possible. We will ensure that we position our business to attract consumers of
agriculture produce not just in Uganda alone but also other parts of the world which is
why we will be exporting some of our livestock farm produce either in raw form or
processed form to other countries of the world.

3.0 Sales & Marketing Strategy

We are well aware that most pig farming businesses fail to make substantial profits
because of their inability to market their business and products. Bearing this in mind,
we have been able to come up with several marketing strategies to promote our
business and products. We will start by introducing our business and products to
everybody. Starting with our friends and extended family, list the business in yellow
pages ads and make sure to advertise the business and products in food-related and
agro-allied magazines, reputable newspapers, radio and television stations. Likewise,

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 we will make sure to always attend agriculture-related trade shows, exhibitions,
symposiums, seminars and food expos, create customer reward programs and
promos to reward loyal customers. We will make sure we leverage the online world in
advertising our business and products.

3.1 Pricing Strategy

We are aware that if you want to get the right pricing for your livestock, then you
should ensure that you choose a good location for your commercial livestock farm,
choose a good breed that will guarantee steady and multiple breeding (prolific
breeds), cut the cost of running your farm to the barest minimum and of course try as
much as possible to attract buyers to your farm as against taking your livestock or
even your produce to the market to source for buyers; with this, you would have
successfully eliminate the cost of transporting the goods to the market and other
logistics. So also, we are quite conversant that one of the easiest means of
penetrating the market and acquiring loads of customers for all our livestock produce
is to sell them at competitive prices hence we will do all we can to ensure that the
prices of our livestock and processed and packaged beef are going to be what other
commercial livestock farmers would look towards beating. One thing is certain; the
nature of commercial livestock farming we are involved in makes it possible for
farmers to place prices for their livestock / farm produce based on their discretion
without following the benchmark in the industry. The truth is that it is one of the
means of avoiding running into loss. The easier you sell off your livestock when they
are mature the better for your business.

The payment policy adopted by RDM is all inclusive because we are quite aware that
different customers prefer different payment options as it suits them but at the same
time, we will ensure that we abide by the financial rules and regulation of Uganda.
Here are the payment options that RDM will make available to her clients payment
via bank transfer, payment with cash, payment via online bank transfer, payment via
check and payment via bank draft. In view of the above, we have chosen banking
platforms that will enable our client make payment for farm produces purchase
without any stress on their part. Our bank account numbers will be made available on
our website and promotional materials to clients who may want to deposit cash or
make online transfer for our livestock and processed pork.

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3.2 Marketing Plan
Personal contact and letters to butchers, pig farmers, wholesalers, retailers, abattoir
and restaurants, hotels and food packaging companies in the major trading centers in
the district. Product packaging by selling our packaged pork and live pigs will be
used. This is an added advantage as most meat is exposed without being packaged.
Point-of-purchase display and sales outlet will be used. Relationship marketing to pig
farmer and other customers will be employed. This is maintaining relationship and
communication. We shall visit them; send texts messages on special days in their life
in other to maintain relationship. Free samples to food packing companies and
restaurant will be used to increase customer interest. This is for our processed
product. Publicity for increase awareness of huge benefit of pork consumption and
using the medium to advertise our product will be used. Billboards as part of publicity
and increasing awareness of our product will be used. Our marketing and sales
manager will personally be responsible for the contacts with the appropriate buyers.
When these innovative marketing tactics are employed and the customer show
interest to buy, the sales manager will sell to the customers directly. The customers
will come to the farm to purchase live pigs. If customers want us to deliver the live
pigs, transportation charges will be included. For processed products, it will be
delivered to the customer. Sales agent will be employed to sell and distribute the
product in the state.

3.3 Advertising & Promotions

Initially our advertising and promotion will be done on an entirely personal basis
without any budget for paid advertising. Our customers require personal visitation. It
will be our plan to limit our advertising budget to personal travel expenses in making
these presentations and follow-up presentations. To establish brand recognition and
make name in the market, we plan to budget 10% of sales. Likewise, we plan to
aggressively build recognition and loyalty by budgeting 20% of sales. We shall
increase advocacy to reduce the negative image of pigs, pig production and pork
consumption through workshops, seminars etc, and also collaborate with
entertainment and hospitality industries in the marketing of my products. We shall call

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 on the central Government to advocate on pork consumption, development of
products from pork as it exists for beef.

3.4 Purchasing and Inventory Control

For inventory control, we plan to participate in just-in-time tracking with our customer,
ensuring that from first day of stocking, marketing begins before our products reach
100kg weight requirement before sales. One major challenge in pig production is cost
of feeding. Keeping large inventory will not be allowed because of the high,
unnecessary cost associated with it. This is pig production business, and with
artificial insemination, where sales are periodic until the farm grows very large to
supply every day. As much as possible, keeping finished products (pigs) to eat our
money will be kept to a minimum by use of direct and rapid delivery systems and
efficient marketing plan. The following procedures will be implemented for
purchasing. We will ask for 30-day payment terms for companies in the state, where
individual will pay before delivery. A low-cost effective inventory control system will
be maintained and all merchandise received will be counted and inspected. We will
pay our contractors, supplier of feed and other product on time and be loyal to them.
When the farm grows large, the following inventory control technique will be
employed.

4.0 Competition Analysis

Our principal competitor is Son Piggery and Poultry Farm Ltd. We listed all major
competitors in this business and their contact address. Other competitors are farmers
of cattle, sheep, goat, fish and chicken. They have the same or equivalent product
provided to the market.

5.0 SWOT Analysis

RDM does not intend to launch out with trial and error hence the need to  conduct a
proper SWOT analysis. We know that if we get it right from the onset, we would have
succeeded in creating the foundation that will help us build a standard pig farming
business that will favourably compete with leading livestock farms in the United
States of America and in the rest part of the world. As a pig farming business, we

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 look forward to maximizing our strength and opportunities and also to work around
our weaknesses and threats. Here is a summary from the result of the SWOT
analysis that was conducted on behalf of RDM;

Strength
Our strength as a livestock farming business is the fact that we have healthy
relationships with loads of major players (agriculture merchants) in the livestock
farming industry; both suppliers and buyers within and outside of Uganda. We have
some of the latest livestock farming machines, tools and equipment that will help us
breed pigs and other livestock in commercial quantities with less stress. Aside from
our relationship (network) and equipment, we can confidently boast that we have
some the most experienced hands in livestock farming industry under our payroll.
Weakness
Our weakness could be that we are a new livestock cum pig farms in Uganda and we
may not have the required cash to pump into the publicity of our business. We are
aware of this and from our projection will overcome this weakness with time and turn
it to a major advantage for the business.
Opportunities
The opportunities that are available to us as a pig farming business cannot be
quantified, we know that there are loads of people, and industries that will source for
pigs, pork, and also industries that will source for the raw materials from our livestock
farms both in Uganda and other parts of the world.
Threat
Some of the threats and challenges that we are likely going to face when we start our
own livestock farm cum piggery business are global economic downturn that can
impact negatively on household spending, bad weather cum natural disasters,
unfavourable government policies and the arrival of a competitor as our livestock
farms within same location. There is hardly anything you can do as regards this
threats and challenges other than to be optimistic that things will continue to work for
your good.

6.0 Start-up Expenditure (Budget)

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When it comes to calculating the cost of starting a commercial livestock farm, there
are some key factors that should serve as a guide. The most important expenses are
the construction of the piggery, cattle ranch / cages / fencing as the case may be.
Below are some of the basic areas we will spend our start-up capital in setting up our
commercial livestock pig farm;

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 The Total Fee for incorporating the Business in Uganda $750
The total cost for payment of insurance policy covers coverage at a total $1,000
premium
The amount needed to acquire/lease a farm land. $3,000
The amount required for preparing the farm land (for construction of piggery $3500
and cages / fencing).
The cost for acquiring the required working tools and equipment / machines / $2,000
fencing.
The amount required for purchase of the first set of piglets, pigs and other $3,000
livestock
Operational cost for the first 3 months (salaries of employees, payments of bills $4,000
et al)

Going by the report from detailed research and feasibility studies conducted, we will

need an average of $30,000 to start a standard commercial livestock pig farming
business in Uganda. No matter how fantastic your business idea might be, if you
don’t have the required money to finance the business, the business might not
become a reality. Finance is a very important factor when it comes to starting a
business such as greenhouse commercial farming. No doubt raising start-up capital
for a business might not come cheap, but it is a task that an entrepreneur must go
through. RDM is a family business that will be owned and managed by Mr. Mukisa
and his immediate family members. They are the sole financial of the firm, but may
likely welcome other partners later which is why they decided to restrict the sourcing
of the start-up capital for the business to just three major sources. These are the
areas where we intend sourcing for fund for RDM. Generate part of the start-up
capital from personal savings, friends and other extended family members and a
larger chunk of the start-up capital from the bank (loan facility).

7.0 Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the
capacity and competence of the employees, their investment strategy and the
business structure. If all of these factors are missing from a business (company),
then it won’t be too long before the business close shop. One of our major goals of
starting RDM is to build a business that will survive off its own cash flow without the
need for injecting finance from external sources once the business is officially
running. We know that one of the ways of gaining approval and winning customers
over is to sell our farm produce a little bit cheaper than what is obtainable in the
market and we are well prepared to survive on lower profit margin for a while. RDM

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will make sure that the right foundation, structures and processes are put in place to
ensure that our staff welfare are well taken of. Our organization’s corporate culture is
designed to drive our business to greater heights and training and re-training of our
workforce is at the top burner of our business strategy. As a matter of fact, profit-
sharing arrangement will be made available to all our management staff and it will be
based on their performance for a period of five years or more as determined by the
management of the organization. We know that if that is put in place, we will be able
to successfully hire and retain the best hands we can get in the industry; they will be
more committed to help us build the business of our dreams.

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Qn3: Discuss the exit/succession plan you will have for this business
Succession planning is essential to protect assets, business, family and more broadly
the future viability of the piggery business. Succession planning is not about
retirement. It is simply about the long term plan for the piggery business, its goals,
vision and the plan to achieve them. A lack of succession planning is a serious
problem for agricultural businesses in Uganda. Highly efficient, technically sound
farmers, with excellent business skills and the ability to adopt new technology,
understand risks and build resilient businesses are essential for the future of
agriculture. Research on more than 700 farming businesses, conducted for the Let’s
Talk Succession campaign, shows less than half have a succession plan in place. It
paramount to starting the conversation on succession planning. However, this isn’t
easy, but it is absolutely necessary for all sides. The key is to ensure that everyone in
the family that might be affected is involved and ideally an independent facilitator is
bought in to take the emotion out of the conversation and find out what each family
members wants for their own future. Bringing in an independent adviser or specialist
succession planning consultant can yield huge benefits when starting the
conversation with your family.

On one hand, passing the business and assets onto the right person is essential and
the fact that 80% of those surveyed in the Let’s Talk Succession research had a will
reveals this is an important consideration for farmers. The first phase of the plan is to
establish how the assets of the farm are owned, who is occupying the land and
buildings and on what basis, what each member of the family wants or needs from
the farm, the longer term direction of the farm and its business and what role each
member of the family will play now and in the future. Succession can facilitate new
entrants through a variety of alternative arrangements such as joint ventures,
tenancies and share farming. Joint ventures can help in every case, enabling
businesses to grow by marrying different skills and resources, bringing in young
enthusiasm tempered by mature wisdom. A key part of succession planning is
making sure that all members of the family involved in the business have
valid wills and, where appropriate, a partnership (or shareholder) agreement is in
place. This will ensure the ownership of the business ends up in the right hands at
the right time. When giving assets away, it’s important to consider what would
happen in the event of a son or daughter divorcing in the future.

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Pre-nuptial agreements can help protect the family business. Getting the right legal
advice in this area is essential. Giving the younger generation the skills and
experience to drive the business forward while the older generation takes a step back
or sideways is essential. A phased plan that enables the senior generation to
`mentor’ the successor in the responsibilities that come in running the business,
without stifling or interfering with the ambitions of the new generation, are not always
easy in a family environment. Again, independent advice or a professional outsider
can help to facilitate this. Likewise, pensions can play an important part in succession
planning. They can provide a source of income for the older generation which may
allow them to take less from the business. When it comes to making provision for
those children who do not wish to be involved in the future of the business, there is a
wide range of investment options that can be utilised as part of the family’s plan.
However, deciding when is the right time. There are practical challenges such as
housing, pensions, and supporting other generations to consider. There
are charities that can help in difficult cases where the farm cannot support more than
one generation.

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