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Mini Piggery Venture: SOLD!

Personally, I’m not yet closing my doors to this piggery venture, as long as I / we can correct the previous projections, and improve on the whole process. There were lots of learnings along the way.

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As promised, here are the latest updates on our piggery venture.Β After 3.5 months, we finally decided to sell the piggies.
Unfortunately, the option to keep the female pigs (gilt) and raise them further to bear offspring (as sow) was not feasible at that moment as some business partners already need to recover their capital, and with the way costs are running, additional capital is expected to yield marginal returns anyway.
Cost
As early as the previous post, we have already breached our cost assumptions as the pigs consumed more feeds than expected, and got sick more often (medical expenses were not included in the projections). Their weight also did not reach the desired level, with only two out of 8 pigs reaching the 90kg weight. Overall average was only at 76kg as some piglets got sickly early on.
Price
The timing of the year might have affected the selling price per kilo of live pigs. Projection was at PHP120 per kilo but by the time we opted to sell, market price was only at PHP115. The price trend was increasing though as we were nearing -ber months, but the partners cannot wait any longer to cash in on the venture.
Returns
Return per pig was a measly PHP576 for a 7% ROI. Splitting this return between caretaker and financier yields just 3.5% or PHP288 per pig for the 3.5 months. Yes, it was very small and could have been smaller if we decided to keep them longer (and feed them more) without the increase in selling price to compensate for it. But still, such yields beats your ordinary bank deposits.
Next Steps
Personally, I’m not yet closing my doors to this piggery venture, as long as I / we can correct the previous projections, and improve on the whole process. There were lots of learnings along the way. Also, since my previous partners have other investment options at the moment, it seems that I will have to invest a bigger amount, should I decide to go solo in investing in pigs again.
But for now, I’m leaning on exploring other opportunities. Anyway, 3.5% return on a bullish stock market in less than 3 months is easy. But I’m also concerned on diversification and building other passive income streams. Whatchathink?
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About Geri (348 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.

6 Comments on Mini Piggery Venture: SOLD!

  1. I praise your honesty here. This is not a failure it's just selling your stock rather than taking a loss. The best poker player is one who knows when to fold. The problem may not originate from you though as it seems you were pressured to work around your business partners on their terms instead of your own. I'm also looking into this, the thing is you'll always experiences losses in pig numbers and from sickness. The thing is if you can lock down that ROI you just need to scale it which I'm sure your obviously aware of and the only thing that seemed to stop you from doing that was you didn't have 100% trust in your partners to go along with you.

    I did read most of your other posts regarding the topic. Starting out with proper feeding procedures seems important as to not waste feeds, I'll keep this in mind thanks to you. We are way down in Masbate so I'll have to check on the feed price. Do you have a sack per month calculation you can give me on 1 pig etc? That would help me out a lot. I do have a vet who I've talked to actually hes a Godfather of mine he informed me of 70kg in 3 months. Sort of like a get rid of the pig after 3 months and not too much wasted on feeds. Let me know what you think of that. Nice blog by the way I just found it today. I'm looking forward to seeing you get back into livestock, I seen you did cows at one point which seems like it could be a good investment as well. If you have any advise/information on cows I'd love to know.

    Thanks Geri

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  2. Talk about the set up of a simple structure for piggery

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  3. Actually I find it low as well that is why I haven't reinvested my funds in another round of hog raising. I'm sticking with other tried and tested investments for now that yield higher ROI with less manual labor.

    Still if you're interested and do not have other investment options you're comfortable with, might be worth a shot. Here's my answer to a previous query similar to yours.

    http://www.investmentjuan01.com/2014/11/ask-geri-start-up-piggery-piglets-price-profit-types-feeds-how-to-be-profitable-reader-comments.html?m=1

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  4. Thank you for sharing your learnings and experiences of hog raising business. I am actually interested to venture this kind of business. However, it seems the profit you have earned is less than what I expected. Is it worth it, the effort and risk you put into? Part of calculating the profit is you also include yourself as one of labor expenses. Meaning, the owner must also be paid for the effort he did in running the business. Upon learning with your computation it seems the profit you will received minus all expenses is way very low, it made me think twice if it is worth it. What do you think?

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  5. Appreciate it rcmags. Just keep on reading and commenting. Let's learn from Juan another.

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  6. Thank you for post. I really appreciate the numbers you have given- very informative as well as an eye openerfor me who is just starting.

    rcmags

    Like

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