Business plan of pig farm

«RICC» Ltd. conducts business plans of pig farms. We offer you the detailed structure of the business plan of the pig farm.  

«RICC» Ltd. develops business plans in Ukrainian, Russian and English. Business plan, made by «RICC» Ltd. will allow the client to handle this document in Ukrainian and foreign financial institutions in order to attract investment funds to the project and will consist of the following components:

RESUME

This section contains general information about the business plan. The resume forms an impression about the whole project, so it is always browsed by the potential investors. It will contain a brief summary of systematic information, and give answers to urgent questions of investors - the name and purpose of the project, the time period of implementation, investment, loan terms, repayment guarantees, the amount of own funds and others.

CHAPTER 1. MARKET ANALYSIS

 «RICC» Ltd. conducts market analysis that includes: a description of the situation, forecasts and trends in pig breeding, evaluation of market capacity of pork, an analysis of the competitive environment, analysis and forecast of prices for meat in live weight, sides, finished products.

CHAPTER 2. BUSINESS DEVELOPMENT STRATEGY

To compile this part we require information from the Customer:

1. Short description: start livestock breeding sows, the location of farms, the planned production volume
2. Existing resources: space, buildings, power, equipment, personnel
3. Desired goals. For example: achieving a rapid return (capitalization and sale of the project), creating a stable cash flow in the long term (maintenance and management of business), goodwill, etc.

«RICC» Ltd. experts on the basis of received information will schedule the project at the stage of START-UP ( Table 1), through which the calculation of investment costs passes.

Table 1

The schedule of project activities during the period START UP

In addition to investment costs in the project operating costs for maintenance and servicing of the pig farm are taken into account. The main articles of operating expenses: acquisition and cultivation of food, energy payments, salaries, medicines, fuel and other costs. On condition of growing of green crops in the designed enterprise and their processing on the mixed fodder efficiency of project will be considerably higher, than on condition of acquisition of feed for pigs. The presence or absence of prey affects the financial results of the project, so you should calculate every single option correctly. There are cases that the project is not recommended to implement due to economic inefficiency and it is already clear from preliminary calculations. Figure 1 shows the basic rules of operating income and expenses for the maintenance of a pig. Norms of expenditure must be calculated, they will be different in each project! Main factors: the presence or absence of forage, type of heating - gas or alternative, a remote object, etc.

The value of operating expenses for the maintenance of the herd is closely related to the production plan, which calculates the number of goals in herd (Table 2). Depending on the age structure and rate of pig feed change, and the cost of keeping pigs in different stages change accordingly.

It is separately necessary to select development of plan of production, which is based on the calculation of amount of pigs in a herd, that in turn depends on the chosen strategy of development of business. For example, you can start your business with 100 sows and increase the herd over time by natural reproduction, you can start immediately with the 1000 and give all pigs for slaughter and other options. At various business development strategy, you will get different financial results. Partial model of the pigs production is presented in Table. 2.

 Table 2

Movement plan of a livestock

 Next depending on the slaughter weight of pigs and the projected cost of 1 kg of pork formed a plan of income for the project. Revenues of the project is inextricably linked to production plan.

In addition to these articles in the business plan is calculated depreciation of buildings and equipment, is the plan of personnel and salary (example see Table 3), tax included features.

Table 3

Staff plan

CHAPTER 3. FINANCIAL PLAN

Necessary input data for developing a financial plan:

1. Requested investments
2. Equity participation: % of equity,% of investment capital
3. Terms of financing: interest rate, loan term, grace period, terms of payment of the loan principal

«RICC» Ltd. specialists constitute financial model of business process in the medium MS Excel, which consists of 10-15 pages and includes: schedules of executing and project financing, personnel and payroll plan , including taxes, calculation of needs for working capital, production plan, calculation of interest on the loan, the schedule of principal return, incomes plan for the project; plan of the project Cash Flow, the calculation of key performance indicators of the project IRR, PV, NPV, PBP, ARR, PI, risk analysis, sensitivity analysis, the resulting parameters of the project.

  Table 4

The resulting parameters of the project (individual project in 1500 head of sows, for example)

The calculation results for each business plan are unique and depends on the initial parameters set by the Customer.