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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 (359 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.

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

  1. how about FeedPRO. try nyo po search. may mga guidelines sila kung paano ma minimize yung gastusin sa piggery. and thanks to sir Geri very informative po yung blogs mo.

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  2. Yes please keep us posted! Business doesn't have to be related to your work, but related to your passions. Hope you get to explore more investment and business

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  3. I would say it is seasonal but approaching Christmas season the demands pick-up. Question is how is the supply in the area where you want to build the piggery? 1700sqm is too big, i suggest you start small and plant some crops first on the rest of the property. In our previous tries ROI was very small but if you can control your costs you might achieve better returns.

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  4. Hi. we are planning to start a small business. and we chose piggery. but because we are not actually a business minded person, i mean our work is not so related in business, that's why i'm researching on different blogs and ideas of more experienced person… (like u). and this is the first site that i open. I hope, when we start our first step in business, i will go back to dis site 😀 reaching out for some help…. thank you! and God bless….

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  5. mahirap b magbenta ng buhay n baby.balak ko din sana magstart ng piggery.I'm here working in Jamaica but I want a business sa pinas may pwesto n ko mapapagtayuan 1,700 sqm sa ngayon b maganda business ang piggery?thanks sana po masagot nyo

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  6. mahirap b magbenta ng buhay n baby.balak ko din sana magstart ng piggery.I'm here working in Jamaica but I want a business sa pinas may pwesto n ko mapapagtayuan 1,700 sqm sa ngayon b maganda business ang piggery?thanks sana po masagot nyo

    Like

  7. Sir Geri have you known someone or a farm who is looking for a slaughtering service? I work as a Sales and Marketing Head of Matutum Meat Packing Corporation, located at Glamang Polomolok South Cotabato. Please PM me once you received this message at 0995-673-2069

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