Many people are interested in entrepreneurship today. One of the first questions that arises when a person decides to start their own business is the choice of direction of activity. There are really many options: some choose the service sector, others open stores, and some are engaged in car resale or other similar types of business. Have you thought about starting a pig farm? And is it profitable, you ask? Let's try to understand this topic in more detail.
This text will focus on the financial aspects of such entrepreneurial activity to find out how profitable it is, what profits can be made, and to consider the advantages and disadvantages.
Pigs as a business: main aspects
It's worth starting with the fact that pig breeding is a very promising business that can become a source of stable profit, but only if there is a competent approach to its organization.
You must understand that your task is to create suitable conditions in which the animals will grow quickly and stay healthy. As in any other business, in pig farming you need to make sure that the expenditure of your resources, including time and money, is minimal, and the income from this activity is maximum. Then it will be truly profitable.
If we talk about the main costs, then this is construction or equipment pig sty, purchase of piglets, feed, equipment and veterinary care. Do not over-save, as this can increase risks and reduce potential profits. It is important to find a balance between costs and efficiency.
Pig farming: advantages
There are many advantages here, which is why we recommend considering this area of business activity. Let's move on to the positive aspects:
- Rapid population growth. Pigs gain weight quickly, and their reproductive cycle allows for multiple litters per year.
- Wide sales opportunities. Meat, sausages, lard, offal - all of this is in demand on the market. You can either sell just meat and lard, or independently produce the aforementioned meat products from it.
- High demand for products. Pork and pork products, as well as lard, are something that almost everyone loves. Fortunately for this business, vegetarians make up only a small percentage of the population. Most people eat meat, if not every day, then at least several times a week.
- Scalability. You can start with a few heads, gradually increasing the number of animals and the range of products. This is good because you don’t need a lot of start-up capital. If you are not sure about the success of such an undertaking, we advise you to do it. Then, if things go well, you can expand, and there will be funds for it.
Pig farm: cons
Of course, there are certain difficulties in any business and this one is no exception. Here are the main negative points that you should be prepared for:
- The need to comply with strict sanitary standards. First, it is important that there are no problems with animal health, because the services of a veterinarian and a vet are not cheap now. Secondly, if we are talking about a fairly large farm, then regulatory authorities may visit you. If they find violations, you will have to pay a fine - and this is again additional costs. Thirdly, poor conditions negatively affect the quality of meat. Only a healthy animal can produce a quality product.
- High competition in the market. Today, this is relevant in almost any niche, so there is nothing surprising here.
- The risk of epidemics among animals, for example, a typical disease faced by pig farms is African swine fever. To prevent this from happening, it is necessary to monitor the conditions and carry out all necessary vaccinations.
Options for making money from pigs
A significant advantage is the ability to choose a specific business concept. What is it about? The fact is that a pig business can be organized in different ways, depending on your resources and goals.
- Firstly, it can be selling animals. What is the advantage? You do not need to invest in production and spend time on it. Usually they sell piglets. They grow quite quickly. The costs are minimal. This is a good option for beginners.
- Secondly, you can hand over animals for slaughter. Here we are talking about adult pigs. Their weight should be about 100–120 kg. You can cooperate with both meat processing plants and private individuals. This is more profitable than the previous option.
- Thirdly, you can raise animals and organize the slaughter yourself, and then sell the meat and have an income from that. The advantage of this option is greater profit, because the price per kilogram of meat is much higher than for live weight.
- Fourth, you can independently produce meat products: sausages, canned goods, lard, dried meat chips, hot dogs, etc. This is the most promising direction. Yes, it requires larger investments (equipment, certification), but the profitability is much higher.
How much can you earn?
Of course, it all depends on what kind of earning option you choose and how many animals you will keep. Let's take the option of slaughtering adult animals as an example.
1 pig
For calculations, let's assume that you purchased a piglet for 2,000 UAH and raised it to 120 kg. The average live weight price is 80 UAH/kg. That is, for one pig you will receive 9,600 UAH. The costs for feed and care will be approximately 4,000 UAH. Net profit is 5,600 UAH.
5 pigs
With 5 pigs, your income will be 48,000 hryvnias (at live weight), expenses will be about 20,000 hryvnias. Thus, the net profit will be 28,000 hryvnias.
10 pigs
When scaling up to 10 heads, income increases to UAH 96,000. Expenses (feed, veterinary care, electricity) will increase to UAH 40,000. Net profit – UAH 56,000.
50 pigs
At this stage, expansion will be needed pig sty and hiring employees. Income will be 480,000 hryvnias, and expenses will be about 250,000 hryvnias. Profit will be 230,000 hryvnias.
Of course, these are rough estimates and may vary depending on a number of factors.
Let's summarize
Pigs as a business can be promising and profitable. Profitability depends on the number of animals, effective resource management, and product sales opportunities. The main thing is to approach the organization wisely and think through all the details.
