KEITH SOBOYA

EXECUTIVE SUMMARY

The pork family farm will be a registered company that will be based in the

outskirts of the Lusaka town, Lusaka district, Zambia. Market research, feasibility

studies have been conducted and 20 hectares has been secured to start a pig

production business.

The pig production business is going to be a standard one therefore will be

involved in commercial breeding of the pigs.

In the first Three- five years of running The pork family business, a set up of a pork

processing plant and possibly start supplying to most parts of the country. Which

is why aside from the fact that a piece of farm land will be secured for breeding

purposes on commercial levels, we will also hire some key employees who will go

under some training in order for them to fit into the pig production workforce

that is going to be built.

The main reason for venturing into pig production is to leverage on the wide

range of opportunities available in the pig production industry, add on to the

growth of the Zambian economy, and help ensure National food security, raw

materials production for other industries and above all make profits.

The farm plans on being one of the well equipped and well positioned so that it

can be one of the leading pig farming business in Zambia.

Processes and strategies will be put in place that will help us take up the best

practices when it comes to pig production processes, meat processing and

packaging as required by the Zambian regulating bodies.

The pork family farm will be a private registered livestock company that will be

owned and managed by Keith Soboya and the immediate family members. The

Farm seeks funding from the American funding agencies for a certain period of

time till it’s able to finance its self which will be after the first cycle of sell.

KEITH SOBOYA

OUR PRODUCT OFFERINGS

The pork family farm will be a licensed livestock business that will be dedicated to

pig production and meat (pork) processing and packaging for Lusaka district and

other surroundings with potential market.

We will also make sure that we operate to the acceptable standard of pig

production. Below are the areas that will be focused on in our pig production

business but if need arises we will absolutely bring on other livestock to our

production list;

Sale of pig and venture into other livestock

Sale of processed meat (pork)

Breeding Services

Pig production related consultancy and advisory services

VISION STATEMENT

To become one of the leading pig production brands countrywide.

MISSION STATEMENT

Our mission is to sell produce (pigs), byproducts and processed meat (pork) in

commercial quantities both locally and countrywide. We want to build a pig

production business that can positively compete with other leading pig

production farms Zambia.

ORGANIZATIONAL STRUCTURE

The pork family farm intends to start small in Lusaka, but hope to grow bigger in

order to compete with other leading and well established farms in the industry

and so building a solid organizational structure that can support the picture of the

kind of business we intend to set up. We will make sure we hire qualified,

hardworking, dedicated and ready to work and contribute to the building of a

successful business that will benefit both internal and external stakeholders

(owner, employees and customers).

KEITH SOBOYA

Below are some of the qualified and competent hands that will be hired to occupy

the following positions.

ROLES AND RESPONSIBILITIES

Chief Operating Officer

Boost managements effectiveness by recruiting , orienting, inducting and

disciplining managers; communicating values, strategies, organizational

goals and objectives; assigning tasks; planning and monitoring as well as

appraising job results; developing incentives ; developing a channel of

communication and idea sharing; providing educational opportunities.

Responsible for providing direction for the business.

Chief Operating Officer

(Owner)

General Farm

Manager

Piggery Manager

Piggery Attendants

Book Keeper

Marketing

Executive

KEITH SOBOYA

Creating, communicating and implementing the organizations vision,

mission and the overall direction by the organizational strategy.

Approval of all requests and documents on behalf of the farm.

Evaluating the accomplishment of the business

GENERAL FARM MANAGER

Responsible for the planning, management and coordinating all farm

activities across the different sections on behalf of the organization.

Supervise farm enterprise managers

Ensuring compliance during project execution

Assessments of risks

Keeping track of people and progress of all farm enterprises

Responsible for checking the accounting, costing and sales of farm produce

Ensuring that farm goals are achieved in the right time frame

Define job positions for recruitment and managing interviews

Carry out inductions and trainings for new members

Evaluating employees

BOOK KEEPER

Responsible for preparing financial reports, budgets and financial

statements of the farm

Conducting financial forecast and risk analysis

Development of financial systems and financial policies

Responsible for administering payrolls

Handle all financial transactions of the farm

MARKETING EXECUTIVE

Identify development opportunities by making follow ups on development

leads and contacts

Participate in the structuring of a new business

Identify, prioritize, and draw up new partners as well as business

opportunities

KEITH SOBOYA

Writing wining proposal documents, negotiate product prices in line with

the farm policy

Conduct market research, market survey, customer feedback

Responsible for supervising implementations, advocate for customer needs

and communicate with clients

Developing, executing and evaluating new plans for expanding increase

sales.

Documenting all client contacts and information

Represent the farm in strategic meetings

Increasing sales and growth for the company

PIGGERY MANAGER

Responsible for managing pig breeding

Responsible for breeding services

Work closely with the General farm manager to achieve goals and

objectives

PIGGERY ATTENDANTS

Responsible for feeding pigs as instructed by the piggery manager

Responsible for cleaning the piggery

Changing of water as instructed by piggery manager

Assist in breeding pigs

Keeping tools and equipments from the piggery to the store room

SWOT ANALYSIS

The pork family farm has decided to conduct a swot analysis because it doesn’t

intend to have trial and error during its first conduct in the industry. The farm

looks forward to maximizing its strength and opportunities and also work around

the weaknesses and threats. Below is a Swot analysis that has been conducted;

KEITH SOBOYA

STRENGTHS Qualified and well trained team Good relationship with major

agriculture merchants Latest equipments that will help

in the management of the pigs Good farm location because it

will be easily accessed by the buyers

WEAKNESSES New entrants so the buyers have

to know more about the farm and the products

Face a lot of competition from well established farms

OPPORTUNITIES Source other farm land in the

future in order to expand on our production

Open supply outlets in all potential markets

Diversify into more processed products

THREATS Inflation of prices Diseases New entrants Bad weather Unfavorable government policies

MARKET ANALYSIS

MARKET TRENDS

Most farmers today day don’t only focus on a particular farm enterprise but they

diversify because of cost cutting and large market opportunities as well as

maximizing profits in the agriculture industry.

In spite of the fact that commercial pig production has been practiced for a long

period of time in Zambia that has not over saturated the industry but commercial

pig farmers shift to new technologies in order to improve pig production

processes and also meat preservation and package process. The pig market is

always a ready market.

KEITH SOBOYA

With the latest technologies, farmers are able to improve on their breeds and

able to import the hybrids pigs and latest technologies from countries of their

choice.

OUR TARGET MARKET

Almost every Zambian household consumes pork and its processed products as

well as international food places that operate in Zambia,

We will ensure that we position our business to attract consumers of agriculture

produce not just in Lusaka CBD but nationwide in both raw and processed state.

OUR COMPETITIVE ADVANTAGE

Most entrepreneurs are venturing to the pig industry because it’s one of the most

incomes generating agriculture industry in Zambia and other parts of Africa.

Government is encouraging entrepreneurs to embrace farming as this is part of

nation success.

The pork family farm is aware that is high competition in the pig industry

throughout the country that’s why a research was conducted in order to know the

available market and how to take advantage of it.

The main factors that will give us competitive advantage are effective and reliable pig production processes which will help us sell our pigs and processed meat in the future at a very competitive price, good network by joining livestock groups and maintain excellent relationship with the consumers. We will bring to the industry a well designed business that will operate in all different areas such as animal rearing, meat processing and packaging plant as this will enable us to take advantage of all the accessible opportunities within the industry.

Our employees will have an increasing package depending with the growth of the business because we want them to build the business with us and help deliver the organizational goals and achieve all our objectives in the right timeframe.

MARKETING STRATEGY

After setting up the piggeries a standard meat processing and packing plant to help us maximize profits will be initiated.

KEITH SOBOYA

The main organizational goal is to grow and become one of the leading livestock pig farms in Lusaka Zambia this is why we have put up strategies that will help us take advantage of the on hand market.

The marketing strategies have been well set; first by networking with agriculture merchants and companies who are likely to become our customers. The pork Farm will adopt the following marketing strategies:

Introduce our business by adding introductory letters in the company profile

Send brochures to stake holders in the agriculture industry and companies

Advertise our business on agriculture related magazines and websites

List the farms on yellow pages ads (local directories)

Print out stickers and business cards

Participate and exhibit at agriculture show grounds, expos and trade fairs.

Create social media accounts and use of other related platforms

Engage in direct marketing

Encourage the use of word of mouth marketing

SOURCES OF INCOME

The pork family farm will be a pig production business with the intention of maximizing profits therefore we have decided to search all the available opportunities in the industry in order to achieve our corporate goals and objectives.

We won’t totally rely only on the sale of our pigs to generate income but also other business interests within the value chain. Below are some sources of income generation income we will explore;

Sale of Pig

Sale of processed meat (pork)

Breeding services

Pig support services

KEITH SOBOYA

SALES FORECAST

A market research and survey was conducted, it was discovered that the sales generated by a commercial pig farm depend on the size of the farm or size of production and the network of the farm.

The marketing strategies are well outlined and we are quite optimistic that we will meet or even go beyond our set sales target from the year of operations and build the business from survival to sustainability.

The agriculture sector has been thoroughly examined and it has been analyzed that we have a positive chance of making 50% profit in the industry. The sales projection is based on information gathered on the field and some workable assumptions as well with respect to the nature of pig production business that we want to run.

We plan to start with 35 female pigs (Sows) and 3 male pigs (Boars) from which we expect an average of 350 to be born in the first cycle and half to be sold after 4 month while the other half will be put to the breeding stock. The process will be continuous for three years as a result

Below are some of the projections that we came up with for the first three years of running the farm;

KEITH SOBOYA

EXPECTED REVENUE FOR THE FIRST YEAR EXPECTED EXPENDITURE FOR THE FIRST YEAR

ITEM QUANTITY UNIT

COST

(K)

TOTAL

AMOUNT

(K)

ITEM UNIT

COST

(K)

TOTAL AMOUNT

(K)

SALE OF PIGS 175 1,900 332,500 VARIABLE COST

WAGES 6,600 133,200

FEED 3,000 36,000

TOTAL INCOME 332,500 FUEL 500 6,000

DRUGS 300 3,600

FIXED COST

PIGGERY BUILDING

25,000

EXPECTED TOTAL NET INCOME 128,700 TOTAL EXPENSE

203,800

KEITH SOBOYA

EXPECTED REVENUE FOR THE SECOND YEAR EXPECTED EXPENDITURE FOR THE SECOND YEAR

ITEM QUANTITY UNIT

COST

(K)

TOTAL

AMOUNT

(K)

ITEM UNIT

COST

(K)

TOTAL AMOUNT

(K)

SALE OF PIGS 935 1,900 1,776,500 VARIABLE COST

WAGES 24,000 288,200

FEED 20,000 240,000

TOTAL INCOME 1,776,500 FUEL 2,000 24,000

DRUGS 1,500 18,000

FIXED COST

PIGGERY BUILDING

75,000

EXPECTED TOTAL NET INCOME 1,131,300 TOTAL EXPENSE

645,200

KEITH SOBOYA

EXPECTED REVENUE FOR THE THIRD YEAR EXPECTED EXPENDITURE FOR THE THIRD YEAR

ITEM QUANTITY UNIT

COST

(K)

TOTAL

AMOUNT

(K)

ITEM UNIT

COST

(K)

TOTAL AMOUNT

(K)

SALE OF PIGS 4,750 1,900 9,025,000 VARIABLE COST

WAGES 41,000 492,000

FEED 70,000 840,000

TOTAL INCOME 9,025,000 FUEL 4,500 54,000

DRUGS 3,500 42,000

FIXED COST

PIGGERY BUILDING

150,000

EXPECTED TOTAL NET INCOME 7,447,300 TOTAL EXPENSE

1,578,000

N.B: This projection was done based on what is obtainable in the industry and with the assumption that the economy will be constant and that there won’t be any major economic meltdown that can impact negatively on household spending, natural disaster such disease outbreaks and unfavorable government policies. Please note that the above projection might be lower and at the same time might be higher

KEITH SOBOYA

OUR PRICING STRATEGY

In order to get the right pricing of our pigs, we ensured a good location for our farm was, a good swine breed will be chose so that will guarantee steady and multiple breeding (prolific breeds), cutting the variable of farm to minimum and to attract buyers by putting up promotions and offering discounts.

We want to penetrate the market and also get hold of of customers for all our produce which will be sold to them at competitive prices. The nature of our produce makes it possible for farmers to place prices for their farm produce based on their discretion without following the benchmark in the industry as this helps avoiding running into loss.

FINANCIAL PROJECTIONS AND COSTING

Calculating the cost of starting a commercial pig production farm involves considering key factors. The most important expense is the construction of the piggeries.

Below are some of the areas were we plan to allocate our start- up capital in setting up commercial pig farm;

The amount needed to acquire / lease a farm land = K100,000

The amount required for preparing the farm land (for construction of piggery and fencing = K50,000

The cost for acquiring the required working tools and equipment / machines = K5,000

The amount required for purchase of the first set pigs

= K80,500

Operational cost for the first 3 months (salaries of employees, payments of bills= K34,300

Additional Expenditure = K30,000

From the report from detailed research and feasibility studies conducted, we will need an average of K299, 800=00 to start a standard commercial pig production business in Lusaka, Zambia.

KEITH SOBOYA

GENERATING FUNDS

In order for this business to become a reality we will need financing. Finance is

the most important factor when it comes to starting a business such as

commercial farming. The start- up capital of a business is very costly but then

becomes cheap when everything stabilizes, but it is a task that an entrepreneur

must go through.

The farm will get startup capital from the owner and it also intends to get partly

from the farm.

SUSTAIANABILITY AND EXPANSION STRATEGIES

The success of the farm lies on the loyal customers and the capacity of the employees.

One of the goals of starting a pig production farm 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 pigs 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.

KEITH SOBOYA