To ensure your pig farming business success in this highly competitive market, you need a properly structured pig farming business plan. With over 12 years of experience, we have helped over 5,000 entrepreneurs create business plans to start and grow their pig farming businesses. Using the following pig farming business template, you can put together an effective business plan for pig farming.
The pig and Hog farming business is one of the big industries in the USA. According to an IBISWorld report on pig farming industry, the pig farming business consists of commercial pig farms that breed and raise pigs for consumption in the food industry.
Typically, the pig farms are owned by large meat-producing companies that raise pigs according to food industry standards and sell them either directly to consumers via small shops, sell to butchers, or sell the pig meat to hotels and restaurants.
The industry generates almost all of its revenue by selling pig meat and other body parts.
The pig farming industry’s GDP stands at $24.1 billion as of 2022. The industry has experienced almost no growth, only 0.1%, in the last 5 years (2017-2022) and there are little growth prospects, 0.3%, for the coming 5 years (2022-2027).
The pig farming industry operates at approximately 9.8% profit margin with only a 1.5pp growth for 2017-2022. The overall industry profit grew to $2.4 billion an annual growth of 3.5%.
The industry has lost participants quite rapidly, at 4.4% per annum. The current number of businesses in the industry is 16,447. The industry offers 50,743 and the number of jobs is on the decline in the pig farming industry.
The pig farming industry earns revenue from these products and services
Before you start with the pig farming business, let’s see what are the key success factors of becoming successful in the pig farming business.
Use Specialized Equipment: Technology makes pig farming efficient. You can get better output by using advanced technology for breeding, feed mixes for pigs, climate conditions control for the housing for pigs, etc.
Easy Access to Suppliers: The main supply for pig farming is feed. If you are closer to the market and suppliers for the feed, you can lower costs and get a better supply.
Easy Access to Markets: The bulk of revenue for the pig farming industry comes from pig meat. Being closer to the pork processing facilities reduces transit time and cost.
Produce Heavy Hogs: The pig farmers that farm the heavy hogs (also called premium hogs) sell pigs at a better price in the livestock market.
Long-term Contracts: The pig farmers who can secure long-term contracts with corporations, wholesalers, meat exporters, or big food chains make better profits. This also secures a consistent demand for their products or services.
Better Growing Conditions for Pigs: Healthy growing conditions for the pigs, good weather, healthy feed, and technologically-advanced production systems increase the volume and quality of pig meat production.
A pig farming business plan is a road-map for starting and growing your pig farming business. Your business plan outlines your business concept, identifies your target customers, presents your marketing strategy, and details your financial projections.
Any bank or investor you approach will require a pig farming business plan, so putting one together will be critical to securing funding.
In short, writing a business plan can help you succeed if you’re thinking of starting a pig farming business or pitching to investors or venture capitalists.
Pig farming business plans can be used to gain interest from potential investors or to secure loans from banks. They are also helpful to you as the owner. A pig farming business plan allows you to thoroughly analyze every aspect of your potential business.
A solid, detailed plan gives you a clear path to follow, forces you to examine the viability of a pig farming business idea, and may help you better understand your company’s finances and competition.
Pig farming business owners who have a business plan grow 35% faster than those who don’t, and 75% of fast-growing businesses have one.
A pig farming business plan is a living document that should be updated annually as your company grows and changes.
Do you need help creating a business plan? Check out these six free, proven business plan examples from different industries to help you write your own.
The pig farming industry does not get much support from the financial system. It gets limited funding, loans, and grants. Moreover, the ASPCA is working actively against the pig framing industry in particular and animal farming in general.
Let’s explore the limited options of pig farming funding options available to you.
The first option for pig farming funding is your own savings and money from friends and family. Since the average cost of starting a pig farming business varies between $500 to $10,000 (depending on the size of the farm), you can start a pig farming business with your own money.
You can get money from an angel investor if you can convince them of your pig farming business plan. For that, you will need a professionally written business plan.
USDA offers loans and grants for pig farmers but most grants and loans are for existing farmers. For minorities, there are grants for pig farmers.
You can also secure a bank loan for pig farming. You can get information about farming loans in general. The US government has one place for farmer loans.
To write a pig farming business plan, you don’t need to be an expert. Our step-by-step guide will show you how to write a pig farming business plan, or you can just download our proven sample business plans to get a better idea.
The executive summary is the most important part of the document since it outlines the whole business plan. Despite the fact that it appears first in the plan, write the executive summary last so you may condense key concepts from the other nine parts.
It’s a part that catches the investor’s eye and provides key information about your company’s overview and upcoming short- and long-term goals.
Tell them what kind of pig farming business you have and what stage you’re in; for example, are you a startup, do you have a pig farming business plan that you want to expand, or do you have a lot of pig farming businesses?
Finally, an executive summary should provide investors with a preview of what they may expect from the rest of your document.
Check out these executive summary examples to help you write a perfect one for your pig farming business plan.
An executive summary is the most important part of your business plan, and it need not be challenging to write. This is why we have put together some awesome free Executive Summary examples for you.
Your company overview section in a business plan will be short and clear, similar to the executive summary.
Even if they just have a few minutes, your reader has to understand what your company does and who your customers are.
The following sections will be included in your business plan’s Company Analysis:
Your company analysis will describe the type of pig farming business you are running and its future goals.
The type of pig farming business you might be focused on: the indoor herds, the outdoor herds, industrial farm, pig farming services, etc. Selecting on the type of pig farming business will help you determine the scale of your business in short and long run.
Provide a brief overview of the pig farming industry in your industry analysis. This may seem unnecessary, but it serves multiple purposes.
First, researching the pig farming industry will educate you. It gives you an understanding of the market in which you are operating. Secondly, market research can improve your strategy, especially if it identifies market trends.
Third, market analysis shows readers you are an expert within your field. Conducting research and presenting it in your plan is the most efficient way to accomplish this.
Industry analysis can be presented as a 8-step process when written as part of a company’s business plan.
The customer analysis section is an important part of any pig farming business plan since it evaluates the consumer segments that your company serves. It identifies target customers, determines what those customers want, and then explains how your pig farming products and services will meet those requirements.
Customers can be categorized into the following segments:
Customer analysis may be divided into two parts: Psycho-social profiles (why your pig farming services suits a customer’s lifestyle) and Demographic profiles (descriptions of a customer’s demographic qualities).
With regards to demographics, include information about: the ages, genders, locations, and income levels of your customers. When targeting businesses, describe what kind of business, size, and location your target customers are.
The psychological profiles of your target clients reveal their wants and needs. The better you understand and identify these demands, the better your chances of attracting and retaining customers will be.
It is necessary to do a competitor analysis. Because you may use their data to define your goals, marketing plans, tactics, new product lines, pricing, and more. Use competitor analysis to:
The first step is to determine who your direct and indirect competitors are.
The direct competitors consists of other pig farming businesses that offer essentially the same services to the same people as you do.
Indirect competitors are other pork or pig farming services options that people have in addition to direct competitors. These indirect competitors may include other livestock farming as a replacement for pork, other types of meats, etc.
Once you’ve identified the competition, concentrate on the direct, head-to-head competitors, since they are the most threatening to your pig farming business— but keep an eye on the indirect competition as well, just in case.
Provide an overview of each direct competitor’s business and detail their strengths and weaknesses.
You will be able to position yourself competitively in the market if you perform proper competition research. Perform a SWOT Analysis to learn your competitors’ strengths, weaknesses, and competitive advantages in the following areas:
The final section of your competitive analysis should include a list of your areas of competitive advantage. for example: Are you going to offer premium pig farming services and products? Do you offer unique pig farming services/products that your competitors do not? Will you offer better pricing or will you offer greater customer support?
Consider how you will outperform your competitors and include them in this portion of your pig farming business plan.
Take advantage of our free SWOT analysis examples. Make your business future-proof by identifying your strengths, weaknesses, opportunities, and threats using this free SWOT Analysis Template.
Creating a marketing plan for a pig farming business involves identifying the target demographic and finding the pig farming products and services that will be the most popular with your target audience.
As part of your marketing plan for a pig farming business, you should include:
Pricing and Product Strategy
Your pig farming business must offer pig farming services/products that are different, unique and eye catching from those of your competitors. Research what your competitors offer and how they price their pig farming services/products.
Placing and Promotions
Place refers to the location of your pig farming company. Describe how your location might attract customers. As an example, is your pig farming business office located near to large food chain companies offices, is your pig farming business located close to a big market like a big city or a pork processing facility, or close to an area where there is a cluster of the pig farmers.
Promoting your pig farming business is the final part of your marketing plan. In this step, you document how you will drive customers to buy your services. A few marketing methods you could consider are:
You should also think about your pig farming company’s Unique Selling Proposition (USP), which should explain why clients should choose you over other pig farming businesses. Ensure that your USP is reflected in your marketing.
Read Later: How to create a marketing plan in a business plan.
While the previous sections described your goals, your operational plan in a business plan discusses how you will achieve them.
An operations plan is helpful for investors, but it’s also helpful for you and employees because it pushes you to think about tactics and deadlines.
Your operations plan should be divided into two individual parts, as seen below.
Your daily short-term processes include all the tasks involved in running a pig farming business, including hiring and training employees and administering the business. etc.
Your long-term goals are the milestones you hope to reach. It may include the date when you hope to lease the facility or remodel the facility: or when you hope to reach $X in revenue.
The management team section in a business plan‘ outlines your management team, staff, resources, and how your business ownership is structured.
This part may be easily organized by dividing it into the following points:
This section outlines your pig farming business’s legal structure. If your company is a sole proprietorship, it may simply be one phrase. It might be longer if your company is a partnership or a corporation. You should make it a point to clarify who owns what part of the business.
Internal Management Team
This section should not only outline who is on your management team but also how each person’s skill set and experiences will contribute to the growth of your pig business. Ideally, you and/or your team members have direct expertise in the pig farming business. If this is the case, highlight your experience and skills.
External Management Resources
Think of these external management resources as your internal management team’s backup. Consider forming an advisory board if your team is lacking expertise and experience with pig farming business.
An advisory board would consist of 3 to 7 people who would serve as mentors to your pig farming company. They would assist in answering queries and providing strategic direction.
If necessary, search for advisory board members with expertise running pig farming business.
Describe all of your company’s external professional advisers, such as accountants, bankers, attorneys, IT experts, business consultants, and/or business coaches.
The final topic to consider in the management area of your pig farming business plan is your human resource needs.
As part of your financial plan, you should present a 5-year financial statement broken down monthly or quarterly for the first year, and then annually. Financial statements include your income statement, balance sheet, and cash flow statement.
A profit and loss statement is more commonly called an income statement. It shows your revenue and subtracts your expenses to determine whether you were profitable or not.
As you develop your income statement, you need to develop assumptions. Will you serve 30 patients per day or 200? Will sales grow by 2% or 10% per year? Your choice of assumptions will greatly impact your business’s financial forecasts. Conduct as much research as possible in order to ground your assumptions in reality.
Create a financial statement for your business by downloading our free income statement templates.
While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities.
The balance sheet shows your pig farming business’s net value at a specific point in time. It categorizes all of your company’s financial data into three categories:
The equation that expresses the relationship between these financial data elements is Assets = Liabilities + Equity.
Create a pro forma balance sheet for your pig farming business plan that highlights the information in the income statement and cash flow projections. A balance sheet is normally prepared once a year by a company.
Balance sheets indicate your assets and liabilities, and while they contain a lot of information, they are simplified to highlight the most important things you need to know.
For example, spending $200,000 to build out your pig farming business will not result in instant revenues. Rather, it is an asset that should help you earn money for many years to come.
Similarly, if a bank sends you a check for $200,000, you do not have to pay it back right now. Rather, that is a liability that you will repay over time.
Cash Flow Statement:
Your cash flow statement will help you determine how much money you need to start or grow your pig farming business. In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a pig farming business:
Pro Tips: Learn how to write a financial plan in a business plan to help you write a winning pig farming business plan.
Create a financial statement for your business by downloading our free balance sheet templates.
List any additional material you cannot include elsewhere, such as resumes from key employees, licenses, equipment leases, permits, patents, receipts, bank statements, contracts, and personal and business credit histories.
Attach your full financial projections along with any supporting documents that make your plan more compelling in the appendix.
Bonus Tip: Learn how to write a business plan appendix for your pig farming business.
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A pig farming plan is a worthwhile investment. As long as you follow the template above, you will become an expert in no time. By following the template, you will understand the pig farming business, your competition, and your customers. The plan will help you understand the steps necessary to launch and grow your pig farming business.
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