I don’t want to dash your hopes and enthusiasm but in the spirit of transparency, I want you to know that we are no longer into hog raising after our first try. The reason is that we found the ROI small, as such we are focusing on other investments which can give us a higher ROI.
For me the time to quit my job is when my passive income stream is already way beyond my monthly wage as an employee. Some also quit their day jobs to focus on growing the business, but if you’re eyeing a piggery start-up, then it may not require full attention from you, especially if you don’t have much experience about it anyway.
It’s good that you’re doing some numbers crunching before you dive into any business. The cost of feeds you quoted is indeed almost twice the price of what we’re getting in Batangas. And at the price we’re getting the feeds in Batangas, the returns were actually thin already (hence I have yet to return to piggery business as of this writing).
There are government agencies (such as department of agriculture) which can possibly offer start-up capital for livestock raising, especially if they want to promote this in certain areas such as the countryside. Not necessarily cash but they might have a program that gives away or lends piglets to help their countrymen.
I have yet to go back to the piggery business after the first try as I am still reconsidering my investment options (i.e. looking to diversify but in better yields). But given the previous results, which, admittedly, were less than spectacular, here are some questions I asked myself, which might help you in probing your situation.
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.
Less than 3 months in the venture and we have already invested PHP7K per pig: PHP3.5K for the piglets and PHP3.5K for the feeds (both Starter and Grower feeds). Based on discussions with the caretakers, we are looking at mid-August to see if the pigs are market-ready.
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.