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Piglets, Price and Profit: Start-up Piggery Business

Say a grown pig averages 90kg upon sale. Trade price as of this writing is at Php120 per kilo of live pig. Per kilo of pork meat (essentially a dead sliced pig) is higher given the mark-ups (butchering plus transportation costs, and less the weight of inedible parts). Anyway, if you sell a pig of 90kg at Php120 per kilo, that translates to Php10,800 gross sale. Less investment cost of Php7,765, net income is Php3,035.

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It feels good to go back to livestock investments.


Years ago I dabbled into (very) small-time cattle (e.g. cow) raising, with me providing my uncle (some) capital to purchase (just) one cow (for trial purposes) while he takes care of raising it, feeding it and selling it afterwards (once grown into marketable size). We’re supposed to split what’s left of gross sale less other expenses (vaccines, medicine if necessary, etc). Food is not a problem for cows since there are vast grasslands (still) in Batangas. Unfortunately, I was forced to sell my share of the cow just after a few months to augment my emergency fundsNow, I’m raring to invest once more in cows. Target timeline: 2 months.

In the meantime, I’m trying a small-time piggery. Basically same set-up, I provide the start-up capital to purchase piglets while relatives take care of raising and eventually selling them. Caveat here is that they already have an existing piggery, as such permits and pigpens, waste management and supply chain are already established. I just come in as a small-time capitalist, to give them opportunity to raise a few more pigs for lesser cash out from their end.
Piglets
According to reliable relatives, normally, mother pigs (inahin) or more formally, a sow, can give birth to around 8 to 10 piglets at a time. Some as high as 16 if sow (and the sperm-producing boar/hog (bulugan)) are healthy and the owner is lucky. After 2 months of breastfeeding and weaning, the piglets are now ready to be separated from the sow, and at this point, are now ready for sale to potential pig growers. Given the number of piglet-siblings, sellers usually sell them as one group (hence around 8 to 10) so it’s more difficult to find sellers who are willing to sell just one or two or five piglets (in case your budget is only for that quantity). Also, mixing piglets from various mothers is not advisable as this causes quarrels and bullying among the piglets, against the minority (especially if they will be sharing the same pen). How do they know who’s the odd pig? Hog raisers say the piglets can tell via the bodily scent if the pig is from another mother.
Price
How much does it cost? As of this writing, the trade prices in San Jose, Batangas is at Php235/135 for piglets. For the first 10kg, price per kilo is Php235. The excess to 10kg is priced at Php135 per kilo. The piglets we got averaged at 19kg (some as low as 16kg while one weighed 20kg), so at this average, each piglet costs Php3,565. Estimated cost for feeds is at Php1,050 per pig per month, and usually, pigs are mature and big enough for sale in 4 months time after purchase (which started at month 2, so total of 6 months). Estimated total cash out is Php7,765. Except for the gilt (grown female pig with no offspring) which takes a bit longer to be ready for breeding /impregnation and eventual giving birth (as a sow) to a new set of piglets. Usually growers leave one gilt and prepare it for multiple cycles of “pig-bearing.” Per Google, one gestation period or pregnancy cycle of a pig is 114 days or additional 4 months). With this, a new set of piglets may be raised at minimal cost (e.g. retainer/performance fee of the bulugan, or payment for its (fertile) blood donation).

Profit
Say a grown pig averages 90kg upon sale. Trade price as of this writing is at Php120 per kilo of live pig. Per kilo of pork meat (essentially a dead sliced pig) is higher given the mark-ups (butchering plus transportation costs, and less the weight of inedible parts). Anyway, if you sell a pig of 90kg at Php120 per kilo, that translates to Php10,800 gross sale. Less investment cost of Php7,765, net income is Php3,035. Split into two between financier and raiser, that’s Php1,517 or 19.5% ROI on the part of financier (=1,517/7,765). Note that labor cost of hog raiser is not accounted for here. Also, water and electricity costs (if any) are usually borne by the raiser. Php1,517 may seem peanuts to you but %-wise, that is a high ROI. And imagine if you have 10piglets, that’s Php15k in 4 months of passive income, your money (and relatives) working for you. Price per kilo of live pigs tend to fluctuate with the season, with Christmas season and Fiesta seasons commanding a slightly higher price per kilo given the higher demand.

Am I counting my chicks before they hatch, este my piglets before they grow into big, fat, healthy and heavy pigs? I hope not. Stay tuned for updates.
***
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Photo: Piglets by  A. Sparrow

 

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About Geri (356 Articles)
Founder and main author. Husband, used-to-be-breadwinner, God-made multi-millionaire, employee, financial planner and adviser, investor, stocks trader, entrepreneur, agri-preneur, book author. Firm believer that all Pinoys deserve a richer life. Not a guru, but a forever student of the investments world, a work-in-progress.

10 Comments on Piglets, Price and Profit: Start-up Piggery Business

  1. Good article, I would also like to ask, how much php is needed to start a small investment? I plan to start small and would like to expand. Any tips for a newbie? Hungry for info here!

    Like

  2. Hi,

    My name is Jacob Kekea, from Solomon Islands.
    Living in Guadalcanal, 20 mins drive from the capital Honiara. I've been impressed on the information. I have bought two crossbreed piglets for the last nine months. Out of the two, I was lucky and got seven piglets now for the last two weeks. I used millrun mixed with local waste food for my feed. Can any one help me out on what feed to used. I would like to get into small business.

    Like

  3. Nice article! Thank you for this informative write up. Saw a glimpse of what (how much) to expect when it comes to costing.

    Like

  4. Yes they sell piglets and they are based in San Jose, Batangas. Leave me your contact details via private message in case you are interested.

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  5. Wow you have a lot! Congratulations. Actually we bought the piglets from a relative in Batangas who's into feedmills business as well. So we source all the feeds from them too. Busilac Feedmills is the name. So far we are spending 1.2k per pig per month so we might just be the same.

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  6. do you contacts selling piglets in Batangas? TIA.

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  7. i am also starting business like yours in cebu.. i haved now 2 sows n 15 fatteners. what feeds can you suggests so i can get less. i send php15k up/month just for feeds..

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  8. Excellent site you have here.. It’s difficult to find good quality writing like yours these days. I honestly appreciate individuals like you! Take care!!
    franchises for sale

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  9. It can often pay off to spend on brokers while buying a business. You get someone with all the training, and know the tried and tested processes.

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  10. Excellent post – thanks for the information. I would really appreciate it if you can read my Business For Sale article and give feedback and reviews. Thanks once again for this outstanding post.

    Like

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