Meticulous planning is needed when one embarks on setting up a piggery project. Proper planning is essential in order to avoid making costly mistakes. The following factors should be carefully considered when starting a piggery project.
It is difficult to be precise on the amount of capital required. The amount required depends on the intended scale of production. Capital is required for developmental purposes, that is, building sties and purchasing breeding stock. Working capital is required for feed, drugs, labour and other running costs. It is important to remember that cash inflows will start eleven months after the start of the project in most cases. Peak capital requirements are between the tenth and eleventh month. It is therefore critical to have enough capital for the first year of operation.
Sources of capital
It is advisable for an aspiring pig producer to use own resources or cheap funds for developmental purposes. Loans that carry high interests are not ideal it will be difficult to service the debt especially if the loan repayment period is short.
The Pig Industry Board (PIB) assist farmers to determine how much money is needed for different sow herd sizes.