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3.3 Market Demand

Themek piggeries is located at Emene which is within easy reach of some markets like Obollo Afor, Obollo Eke, Orie-Emene, Nkwo-Eha Alumona and Nkwo Ogbede where pork meat high on demand. Information from experienced operators in the business reveals that about 40,000 porkers are demanded yearly in Enugu and its environs for the past 4 years. And that this demand figure is expected to increase as the population within the market area being considered increases, especially as the superstition pork meat consumption die off. Experienced operators are agreed on the fact that not more than 35% of the porkers demand figures are met by existing piggeries.

3.4 Projected Annual Demand of Porkers in Enugu and its environs (2009-2011).

AS earlier stated, about 40,000 porkers were demanded yearly in Enugu and its environs for the past 4 years. This figure is expected to grow with the growth in population. This, since population growth rate in the area hovers around 2.5% to 3.25 for about 5 years now, it seems rational to expect that the demand for porkers will grow with at least a growth rate ½% for the next three years. (See table 3).

Table 3: Projected Annual Demand for Porkers in Enugu and its Environs (2009-201 I)

s/n Years Annual       growth rate Projected demand
0 Base year (0) (2008) 0.5% 40,000
1 2009 0.5% 40,200
2 2010 0.5% 40,400
3 201 1 0.5% 40,000
Total 20% 161,200
Average 0.5% 40,300

This projected average .annual demand for porkers in Enugu andits environs is about 40,600 porkers. It is expected that this level of demand will subsist for the next years.

3.5  Projected  Demand-Supply Gap of Porkers in  Enugu and its Environs

As earlier stated that of the total demand figure of porkers, only about35% of the demand are met by the existing piggeries. Thus, the demandsupply gap of porkers in Enugu and its environs is shown in table 4.

Table 4: Projected Demand-Supply Gap of Porkers

Adjustment Demand-Supply Gap
Estimated average annual demand

Less 35% of supplies of existing piggeries in the area

40600

14210

Less 20% due to expansion of existing piggeries and establishment of new ones 26390

5280

Less 5% estimate error 21110

1100

Estimated Demand-Supply Gap

Anticipated annual production of porkers

20010

500

However, the plan is to produce about 500 porkers yearly (the installed capacity). This represents about 2.5% of the total demand-supply gap of porkers. Thus, it is assumed that selling the pig will not be a problem.

WRITING A BUSINESS PLAN PART IV

Market, customers and competitors

4.0   Market Analysis

Themek piggery has an exciting business opportunity since there is a huge market for pork in Enugu and its environs. The increase in the population and the fading away of the superstition regarding the consumption of pork meat.

4. 1    Customers/Market Segmentation.

The following are the classes of customers for piggery:

  1. These are those that mainly buy the market hog live and slaughter it for the purpose of selling it. They are usually price sensitive but can buy in bulk and even pay in advance.
  2. Households: The households mainly buy dressed pork. They usually buy in bits (usually in kilos) and sometimes are not particularly price sensitive. However, they are sensitive to hygienic issues and quality of the pork.
  3. Restaurants/Hoteliers   etc.   Like  the   households,  these   classes  of customers buy dressed pork, but unlike the households, they can buy in bulk, and sometimes pay in advance. They are price sensitive.

Themek piggery plans to articulate appropriate marketing strategy for each class of customer.

PART V

5.0   Marketing Plan.

K

There are no major piggeries in Enugu area hence there is complete absence of structured piggeries that can really put up commendable competition. Therefore, if BonQodus piggery commences operations as planned, it will be a market leader in no distant time.

5.1 Promotion Strategy

Themek piggery will embark on an aggressive awareness campaign to break the last restage of superstition on pork eating. This will make the demand for pork to really increase. To do this, Themek plans to use fliers, outreach sensitization programs, radio and also television programmes. Themek Piggery to sponsor cooking competitions to reach out to households.

5.2 Marketing strategy

To maintain a sizeable portion of the pork meat market in Enugu and its environs, Themek piggery has decided that her porkers will get to the market at a highly competitive price. Moreover, the breed of the porkers being a cross of large while and Hampshire species ensures that the porkers are of lean mean quality (i.e. relatively low fat contents) which is the types of pork that is very popular with consumers.

Furthermore, Themek has planned her piggery in such a way that 35 pig (as market hogs) porkers would be up for sales every month. The schedule of production would ensure that the farm maintains its reputation amongst their customers as the place where supplies of porkers is most assured.

Themek will also give trade discounts to drive the market faster. There are plans to distribute Calendars and Almanacs to her numerous customers. This will help in no small way to increase the farm’s popularity amongst the middlemen in the pork meat market.

5.3 Market Positioning

Themek piggery farm will position itself as the prime-mover and market leader in the pork meat market in Enugu and its environs. The farm will create peculiar leading edge profile for itself. The under stated is how the firm will want to be seen by its customers, competitors and the general public.

  • As a provider of pork meat with the best lean meat quality.
  • As a farm that has the customers’ interest, in the forms of hygiene, pricing and delivery, at heart.
  • As a trust worthy provider of consistently reliable pork meat.

5.4 Projected Sales

Sales     from porkers (N) Sales  from  dressed porkers (N) Total sales (N)
Year 1 830000 950000 1780000
Year 2 2904000 2970000 5874000
Year 3 3194400 3267000 6461400

Note: To push sales, 2% discount is given to regular customers.

PART VI

Technical Analysis, Management and Organization

6.0Technical Analysis.

The pig is a highly prolific animal that is capable of reproducing every 3 months. In fact, it is normal for pig to reproduce up to 4 piglets from a given pregnancy. Therefore it is a normal problem and challenge among piggeries to contain expansion. However, Themek has planned its schedule of operations in such a way as to contain these challenges.

6.1 Schedule of operation.

A parent stock of 22 (twenty two) pigs has been planned for the piggery. This will consist of 20 Sows and 2 Boars. It is expected that each of the sows will always reproduce 7 piglets every quarter.

This implies that the farm expects 35 piglets monthly. The plan is that the first set of 5 Sows will deliver in a hypothetical month I, while the second set of 5 Sows will deliver in the second month. The third set of 5 sows will deliver in the third month. By this third month, the first set of 5 sows is again ready for reproduction.

After birth, the piglets stay 1 month in the lactation stage during which it solely depends on the mother’s milk for survival. After the lactation stage, the piglets move over to weaners stage and will stay in this stage for 3 months. The next stage is the fattening stage where the pig will stay for two months. The last stage is the porkers’ stage, and the pigs stay in this stage for 3 months, and by the time the pigs complete the porkers’ stage, they must have been reared for 9 months and are ready for the market.

A 5% mortality rate is assumed between the period of birth to the market stage of the pigs. It is also assumed that the sows are prolific while the boars are strong enough. It is expected that the pigs would be massive enough by the 9ch month to fetch a price of N8000.00 each. After every three years, the parent stocks are disposed off at the market price of porkers and are replaced immediately. Table 6 shows that schedule of operations of the pig farm.

Table 6: Schedule of Farm Operate.

Parent stock Lactation

stage

Weaners

Stage

Fattening stage Porkers stage No of porkers sold No of porkers dressed
1 Jan 22 35
2Feb 22 35 35
3 Mar 22 35 70
4 Apr 22 35 105
5 My 22 35 105 35
6 jun 22 35 105 70
7Jul 22 35 105 70 35 1
8 Aug 22 35 105 70 70
9Spt 22 35 105 70 105 25 10
10 Ot 22 35 105 70 105 25 10
11 Nov 22 35 105 70 105 25 10
12 22 35 105 70 105 25 10
Total 22 420
13 Jan 22 35 105 70 105 25 10
14 Jan 22 35 105 70 105 25 10
15 Mar 22 35 105 70 105 25 10
16 Apr 22 35 105 70 105 25 10
17 May 22 35 105 70 105 25 10
18 Jun 22 35 105 70 105 25 10
19 Jul 22 35 105 70 105 25 10
20 Aug 22 35 105 70 105 25 10

s/n Feed cost parent stock Feed cost weaners Feed cost fattening stage Feed cost porkers stage Dressing cost Drug Total cost
1 24000 1200 25200
2 24000 3700 1800 29500
3 24000 7300 2500 33800
4 24000 11000 3300 38300
5 24000 11000 28000 3900 66900
6 24000 11000 57000 4600 96600
7 24000 11000 57000 15000 5400 112400
8 24000 11000 57000 30000 6000 128000
9 24000 11000 57000 45000 10000 7500 154500
10 24000 11000 57000 45000 10000 7500 154500
11 24000 11000 57000 45000 10000 7500 154500
12 24000 11000 57000 45000 10000 7500 154500
Total 288000 110000 427000 225000 40000 58700 1149000
13 25000 11200 58000 46000 10200 7700 158100
14 25000 11200 58000 46000 10200 7700 158100
15 25000 11200 58000 46000 10200 7700 158100
16 25000 11200 58000 46000 10200 7700 158100
17 25000 11200 58000 46000 10200 7700 158100
18 25000 11200 58000 46000 10200 7700 158100
19 25000 11200 58000 46000 10200 7700 158100
20 25000 11200 58000 46000 10200 7700 158100
21 25000 11200 58000 46000 10200 7700 158100
22 25000 11200 58000 46000 10200 7700 158100

Parent stock Lactation stage Weaners stage Fattening stage Porkers stage No of porkers sold No of porkers dressed Expected sales
21 Jan 22 35 105 70 105 25 10 335000
22 Feb 22 35 105 70 105 25 10 335000
23 Mar 22 35 105 70 105 25 10 335000
24 Apr 22 35 105 70 105 25 10 335000
Total 22 420 300 120 4020000
25 Jan 22 35 105 70 105 25 10 369000
26 Feb 22 35 105 70 105 25 10 369000
27 Mar 22 35 105 70 105 25 10 369000
28 Apr 22 35 105 70 105 25 10 369000
29 May 22 35 105 70 105 25 10 369000
30 Jun 22 35 105 70 105 25 10 369000
31 Jul 22 35 105 70 105 25 10 369000
32 Aug 22 35 105 70 105 25 10 369000
33 Sept 22 35 105 70 105 25 10 369000
34 Oct 22 35 105 70 105 25 10 369000
35 Nov 22 35 105 70 105 25 10 369000
36 Dec 22 35 105 70 105 25 10 369000
Total 22 420 105 70 105 300 120 4428000

s/n Feed cost parent stock Feed cost weaners Feed cost fattening stage Feed cost porkers stage Dressing cost Drug Total cost
A 25000 11200 58000 46000 10200 7700 158100
24 25000 11200 58000 46000 10200 7700 158100
Total 50000 134400 696000 552000 122400 92400 1897200
25 26000 11400 59000 47000 10400 7900 161700
26 26000 11400 59000 47000 10400 7900 161700
27 26000 11400 59000 47000 10400 7900 161700
28 26000 11400 59000 47000 10400 7900 161700
29 26000 11400 59000 47000 10400 7900 161700
30 26000 11400 59000 47000 10400 7900 161700
31 26000 11400 59000 47000 10400 7900 161700
32 26000 11400 59000 47000 10400 7900 161700
33 26000 11400 59000 47000 10400 7900 161700
34 26000 11400 59000 47000 10400 7900 161700
35 26000 11400 59000 47000 10400 7900 161700
36 26000 11400 59000 47000 10400 7900 161700
Total 312000 136800 708000 564000 124800 94800 1940400

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