How To Increase Profitability In Piggery Farming Business
Livestock production is a profitable segment many farmers settle for. Piggery business is part of that segment and is a favorite to many given the quick turnaround periods.
The relatively high reproductive rate of pigs also buttresses that further. As much as the profitability of piggery farming business is obvious, there is always a need to explore strategies to ethically profit more.
Exploring strategies to increase profitability is necessary because there are always bigger prospects. Today our subject matter is how to increase profitability in piggery farming business.
The Importance Of Market Research
Profitability is a function of revenue where costs are less than revenue. Revenue comes as a result of generating leads and ultimately, conversions.
Those elements do not materialize by chance, they require systematic steps. That is why you need to plan, have a piggery business plan in particular.
It is through writing a pig farming business plan that you realize the importance of market research.
There are 3 core areas that are the object of your market research namely, the customers, the competitors, and the piggery or pork industry.
The details you unearth whilst doing that market research will inform you on tactics to employ for profitability. That is why it is always prudent to start off with a piggery business plan before anything else.
Here are some of the best ways to consider if you want to increase the profitability of your piggery farming business:
Tweaking Your Feeding Or Nutrition Regime
On average, between 65 percent and 70 percent of overall costs in piggery farming go to purchasing feeds. Lowering that percentage is your answer to increased profitability.
You have to consider two variables here: the average selling price and the cost of feeding. Ideally, the difference between the two must be as high as possible i.e. that is being profitable. It is referred to as margin over feed cost.
To increase it you must figure out how to reduce the feeding costs. At the same, you must still ensure the pigs turn out with a high market value.
That is the delicate balance you must strike. Some of the ways you can use to lower feeding costs are using concentrates, premixes (also known as base mixes), or healthy human food waste.
These alternatives mostly work best if you have abundant and cheap access to grain.
Decreasing feeding costs can also be achieved by sourcing your feeds from cheaper suppliers. There are several livestock feed suppliers that you can choose from.
It is wise to check all of them out in order to find out which the cheapest is. However, do not settle for cheap at the expense of good feed quality.
Meticulous Care For Pigs
One of the ways of increasing profitability is closely monitoring the pigs from start to finish. Find out ways through which you can boost reproductive performance.
At times simple things like ensuring pristine hygiene and providing conducive housing for the pigs can go a long way. After all, pigs are highly sensitive to adverse temperatures or any abrupt changes to their environment.
Keeping up-to-date records pertaining to mating is also instrumental here. Another focus is to make sure the breeders have as few non-productive days as possible.
Constantly monitoring their health is a must here. You must also see to it that feed conversion is as high as possible – any wastage is not welcome. A solid understanding of pig reproduction is central in managing areas that culminate in profitability.
These are some of the things to pay attention to in providing meticulous care for the pigs. The overall thrust behind this is to increase their reproductive rates.
The intended outcome is to have bigger litter sizes. You want a scenario where at least 10 healthy piglets are weaned off every birth.
Most pig farmers fail to reach 10 healthy pigs per birth due to neglect of some or all of the aforementioned areas. It is simple math really; increase your number of live and healthy piglets weaned off, increase your profits.
Choosing The Right Niche And Diversifying
There are a number of focus areas one can settle for when engaging in piggery farming. One of the common focuses is farrowed to finish i.e. starting with piglets to live or slaughter sales.
In fact, this is the most common niching option in piggery farming. There is also another interesting focus which is feeder pig finishing or pig fattening.
This is whereby you purchase grown but low-weight pigs (weaners) and fatten them. With pig fattening, about 50 percent of variable costs will go to purchasing the weaners. These two focuses have more or less significantly high gross margins and net profits.
However, farrow to finish one enjoys the highest possible net profits.
This is a result of studies that have been conducted in various countries. Thus when you choose your niche, choose the right one.
You also have to diversify i.e. sell live pigs, sell slaughtered ones, and also sell breeding stock. This can increase your profitability in the long run.
You can also double up with including pig fattening as well. If you manage to get good and healthy weaners for a good price you can win big.
This is because it is possible to achieve market weights almost similar to the farrow to finish the approach. So do not confine yourself to just one niche; choose the best core one but include other niches too.
These are the 3 ways you can use to increase the profitability of your piggery farming business.
Additional strategies include keeping your customer acquisition costs as low as possible. In the piggery farming business, it is possible to become a notable brand with little to no costs incurred in marketing.
Just leverage on the platforms and people you have around you. Your customers are key players in marketing your products. Inculcate in them a personal willingness and initiative to create a buzz around your brand name. This further lowers operating costs.