Pig Farm Business Plan Template

Pig Farm Business Plan Template

If you want to start a Pig Farm or expand your current Pig Farm, you need a business plan.

The following Pig Farm business plan template gives you the key elements to include in a winning Pig Farm business plan.

You can download our pig farm business plan template (including a full, customizable financial model) to your computer here.

 

Sample Pig Farm Business Plan Template

Below is a pig farm business plan example with each of the key sections to help you write a pig farm business plan for your own company.

I. Executive Summary

Business Overview

[Company Name], located in [insert location here], is a registered and licensed pig farming company. The Company provides quality meats to local residents, wholesalers and retailers. The Company raises their animals in an all-natural environment- no antibiotics, hormones, or steroids.

Products Served

[Company Name] will be involved in the commercial breeding of pigs to provide the following products:

• Bacon
• Ground pork
• Ham
• Chops and ribs
• Roast and tenderloin
• Sausage

Customer Focus

[Company Name] will primarily serve local residents, butchers, retailers of meat, and restaurants within a 100-mile radius of the farm. The demographics of the target customer profile is as follows:

• 152,313 residents
• Average income of $65,000
• 350 restaurants
• 7 butchers
• 50 grocery stores

Management Team

[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [First name] has been a pig farm operations manager for the past [xx] years.

[Company name] will also employ an experienced sales executive to sell to wholesalers and retailers in the 100-mile area. This will be a skilled salesperson trained in farm sales by [Founder’s Name]. An assistant manager will manage the day-to-day operations of the farm.

Success Factors

[Company Name] is qualified to succeed due to the following reasons:

• There is currently a high demand for pork products in the community. In addition, the company surveyed the local population and received highly positive feedback pointing towards an explicit demand for the products, supporting the business after launch.
• The Company has healthy relationships with many major players in the industry.
• The management team has a track record of success in the pig farming business.
• The pig farming business is a proven business and has succeeded in communities throughout the US.

Financial Highlights

[Company Name] is currently seeking $400,000 to start the company. Specifically, these funds will be used as follows:

• Land and Equipment: $250,000
• Working capital: $150,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

Financial Summary	FY 1	FY 2	FY 3	FY 4	FY 5
Revenue	$560,401	$782,152	$1,069,331	$1,379,434	$1,699,644
Total Expenses	$328,233	$391,429	$552,149	$696,577	$776,687
EBITDA	$232,168	$390,722	$517,182	$682,858	$922,956
Depreciation	$7,000	$7,000	$7,000	$7,000	$7,000
EBIT	$225,168	$383,722	$510,182	$675,858	$915,956
Interest	$6,016	$5,264	$4,512	$3,760	$3,008
Pre Tax Income	$219,152	$378,458	$505,670	$672,098	$912,948
Income Tax Expense	$76,703	$132,460	$176,985	$235,234	$319,532
Net Income	$142,449	$245,998	$328,686	$436,864	$593,416
Net Profit Margin	25%	31%	31%	32%	35%

 

II. Company Overview

Who is [Company Name]?

[Company Name], located in [insert location here], is a new pig farming company focusing on catering to the needs of the local residents, restaurants, and retailers of meat. The Company raises their animals in an all-natural environment- no antibiotics, hormones, or steroids. [Company Name] is also fully equipped with the latest technology and equipment used in the pig farming industry.

[Company Name]’s History

[Founder’s Name] is an entrepreneur with a passion for pig farming who seeks to contribute to the growing US economy through pig farming. [Company Name] will become a recognized pig farming company in [Location], ensuring a continuous supply of pork products.

[Founder’s Name] has selected an initial location and is currently undergoing due diligence on each property and the local market to assess the most desirable location for a commercial pig farm.

Since incorporation, the company has achieved the following milestones:

• Found a business location and signed a Letter of Intent to lease it
• Developed the company’s name, logo, and website located at [website]
• Determined supply requirements
• Began recruiting key employees

[Company Name]’s Products

The Company will provide the following products:

• Bacon
• Ground pork
• Ham
• Chops and ribs
• Roast and tenderloin
• Sausage

 

III. Industry Analysis

[Company Name] competes against large-scale pig farmers in the U.S. Pig and hog farming has developed into a highly automated production process. Feeding, watering and waste removal are carried out with minimal labor input. Moreover, the dramatic shift from small-scale production toward vertically integrated factory farms or large, single-phase specialized farms has further raised the overall level of industry automation over the past five years.

Pig production in the US is a $20 billion industry. The rising price of beef and chicken has resulted in higher demand for pork. The market size of the Pig Production industry is expected to increase by 0.4% over the next five years.

 

IV. Customer Analysis

Demographic Profile of Target Market

[Company Name] will primarily serve local residents, restaurants, and retailers of meat within a 100-mile radius of the farm. These businesses typically gross from $5 million to $10 million in annual revenues and source their supplies from within a 100-mile radius of their facilities.

Below is an overview of the business market within the farm’s target market radius:

Total Businesses	38,124
Forestry, Fishing, Hunting, and Agriculture Support	0.29%
Mining	0.35%
Utilities	0.23%
Construction	9.64%
Manufacturing	4.16%
Wholesale Trade	5.62%
Retail Trade	14.54%
Transportation and Warehousing	2.83%
Information	1.81%
Finance and Insurance	6.56%
Real Estate and Rental and Leasing	4.75%
Professional, Scientific and Technical Services	11.36%
Management of Companies and Enterprises	0.69%
Admin, Support, Waste Mgt, Remediation Services	5.15%
Educational Services	1.20%
Health Care and Social Assistance	10.80%
Arts, Entertainment and Recreation	1.66%
Accommodation and Food Services	8.59%
Other Services (Except Public Administration)	9.78%

Customer Segmentation

The Company will primarily target the following customer segments:

• Local Residents: The Company will sell its products to local residents within 50-mile radius of the farm.
• Restaurants: The Company will sell its products to restaurants within a 100-mile radius.
• Retailers and Wholesalers: The Company will sell its products to meat wholesalers and retailers within a 100-mile radius.

 

V. Competitive Analysis

Direct & Indirect Competitors

Edson Farms
Shayla Farms is one of the large-scale pig farms in the US, owning an 8,000 ha area. It has well-established relationships with local retailers. It has been in business for 32 years. Edson Farms offers good quality pork products. It also has automated equipment and machines, which helps in improving its operations. Moreover, it is also known for delivering large orders at the right time without delay.

Peterson Farm
Peterson Farm has been operating since 1995 and is a well-known company that provides good quality pork with affordable pricing as it has effective and efficient automation. It aggressively targets local companies and retailers and has a large distribution network that can serve customers up to a 500-mile radius. Peterson Farm also has a very effective distribution and supply chain network. However, Peterson Farm’s offerings are only limited to half and whole hogs.

Heritage Farms
Heritage Farms has been in business for the past [xx] years and enjoys great success. It is one of the largest meat producers in the 200-mile area. It easily caters to local residents primarily due to its prime location. It provides pork, chicken, beef and a variety of dairy products including: cheese, yogurt, and milk.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

• Management: The Company’s management team has years of business and marketing experience that allows them to market and serve customers in an improved and sophisticated manner than the competitors.
• Relationships: Having lived in the community for xx years, [Founder’s Name] knows all the local leaders, media, and other influencers. As such, it will be relatively easy for [Company Name] to build brand awareness and an initial customer base.
• Quality products at affordable pricing: The Company will provide quality products at affordable pricing, as it has high-quality equipment and uses the latest techniques.
• Good Packaging: [Company Name] will utilize product-oriented packaging materials that can reduce the damage in the products at the time of supply.
• Suitable Working Conditions: [Company Name] also ensures that the entire workforce is provided with the best work conditions necessary for optimal functioning.

 

VI. Marketing Plan

You can download our pig farm business plan template (including a full, customizable financial model) to your computer here.

The [Company Name] Brand

[Company name] seeks to position itself as a respectable, upper-middle-market competitor in the pig farming industry. Customers can expect high-quality products with affordable pricing and excellent packaging.

The [Company Name] brand will focus on the Company’s unique value proposition:

• Efficient and Effective Delivery network
• Good Packaging
• Quality products at affordable pricing
• Providing excellent customer service and customer experiences
• Suitable working conditions

Promotions Strategy

[Company Name] expects its target market to be local residents, restaurants, and retailers of meat in the 100-mile area. The Company’s promotions strategy to reach the audience includes:

Advertisement
Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. The Company will advertise its company offerings in local magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.

Public Relations
[Company Name] will hire an experienced PR agency/professional(s) to formulate a compelling PR campaign to boost its brand visibility among the target audience. It will look to distribute stories about the company and its services in various media outlets like television stations, radio shows, etc.

Social Media Marketing
Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The Company will use social media to develop engaging content in terms of various forms and technologies of pig farming and post customer reviews that will increase audience awareness and loyalty.

Pricing Strategy

[Company Name]’s pricing will be moderate, so customers feel they receive great value when availing of the products. Pricing will be about 50% lower than retail prices to allow wholesalers and retailers to earn their margins.

 

VII. Operations Plan

Functional Roles

The assistant manager will run the day-to-day operations of the farm, including scheduling and assigning the work of farm hands, sourcing and purchasing supplies and basic equipment, keeping the company’s books, maintaining legal licenses, handling insurance and ensuring that the company meets government regulations. He will contact specialists for equipment repairs when needed and veterinarians to care for the pigs when they require medical attention.
Work by the farm hands will be from sunrise to sunset, and will include feeding the herd, taking them in and out of the pasture, and slaughtering and dressing the pigs for sale to the end consumer.

Milestones

[Company Name] expects to achieve the following milestones in the following [] months:

Date	Milestone
[Date 1]	Finalize lease agreement
[Date 2]	Design and build out [Company Name]
[Date 3]	Hire and train initial staff
[Date 4]	Kickoff of promotional campaign
[Date 5]	Launch [Company Name]
[Date 6]	Reach break-even

 

VIII. Management Team

Management Team Members

[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [First name] has been a pig farm operations manager for the past xx years.

[First name] is intimately familiar with the operations requirements for a pig farm producing the same products as [Company Name].

[Founder] has an in-depth knowledge of the pig farming business, including:

• Supply chain management
• Brand management
• Refinement management
• Team Building
• Employee Retention

[Company name] will also employ an assistant manager to manage operations. This will be an experienced operations manager who will be trained in pig farm operations by [Founder’s Name]. Furthermore, a sales manager will be hired to focus on marketing, sales, and customer service to distributors, and manufacturers for [Company Name] products. These two individuals will either have undergraduate business degrees or years of relevant operations or sales experience.

Hiring Plan

[Founder] will serve as the CEO. To launch the pig farm, the company will need to hire the following personnel:

• Farmhands [Number]
• Logistics and Supply Chain Manager [Number]
• Assistant Manager [Number]
• Sales Executive [Number]

 

IX. Financial Plan

Revenue and Cost Drivers

[Company Name]’s revenues will come from the sales of pork products to its customers. The major costs for the company will be the cost of land and equipment. The staff will earn competitive salaries allowing [Company Name] to hire experienced workers. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.

Capital Requirements and Use of Funds

[Company Name] is currently seeking $400,000 to launch its company. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses, and working capital. Specifically, these funds will be used as follows:

• Land and Equipment: $250,000
• Working capital: $150,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Key Assumptions

The following table reflects the key revenue and cost assumptions made in the financial model:

Revenue Stream	Current Price	% of Revenue
Bacon	$2 / pound	68%
Ham	$1 / pound	8%
Sausage	$2 / pound	24%

 
5 Year Annual Income Statement

		Year 1	Year 2	Year 3	Year 4	Year 5
Revenues
	Product/Service A	$151,200	$333,396	$367,569	$405,245	$446,783
	Product/Service B	$100,800	$222,264	$245,046	$270,163	$297,855
	Total Revenues	$252,000	$555,660	$612,615	$675,408	$744,638
Expenses & Costs
	Cost of goods sold	$57,960	$122,245	$122,523	$128,328	$134,035
	Lease	$60,000	$61,500	$63,038	$64,613	$66,229
	Marketing	$20,000	$25,000	$25,000	$25,000	$25,000
	Salaries	$133,890	$204,030	$224,943	$236,190	$248,000
	Other Expenses	$3,500	$4,000	$4,500	$5,000	$5,500
	Total Expenses & Costs	$271,850	$412,775	$435,504	$454,131	$473,263
EBITDA		($19,850)	$142,885	$177,112	$221,277	$271,374
	Depreciation	$36,960	$36,960	$36,960	$36,960	$36,960
EBIT		($56,810)	$105,925	$140,152	$184,317	$234,414
	Interest	$23,621	$20,668	$17,716	$14,763	$11,810
PRE-TAX INCOME		($80,431)	$85,257	$122,436	$169,554	$222,604
	Net Operating Loss	($80,431)	($80,431)	$0	$0	$0
	Income Tax Expense	$0	$1,689	$42,853	$59,344	$77,911
NET INCOME		($80,431)	$83,568	$79,583	$110,210	$144,693
Net Profit Margin (%)		-	15.00%	13.00%	16.30%	19.40%

 
5 Year Annual Balance Sheet

		Year 1	Year 2	Year 3	Year 4	Year 5
ASSETS
	Cash	$16,710	$90,188	$158,957	$258,570	$392,389
	Accounts receivable	$0	$0	$0	$0	$0
	Inventory	$21,000	$23,153	$25,526	$28,142	$31,027
	Total Current Assets	$37,710	$113,340	$184,482	$286,712	$423,416
	Fixed assets	$246,450	$246,450	$246,450	$246,450	$246,450
	Depreciation	$36,960	$73,920	$110,880	$147,840	$184,800
	Net fixed assets	$209,490	$172,530	$135,570	$98,610	$61,650
TOTAL ASSETS		$247,200	$285,870	$320,052	$385,322	$485,066
LIABILITIES & EQUITY
	Debt	$317,971	$272,546	$227,122	$181,698	$136,273
	Accounts payable	$9,660	$10,187	$10,210	$10,694	$11,170
	Total Liabilities	$327,631	$282,733	$237,332	$192,391	$147,443
	Share Capital	$0	$0	$0	$0	$0
	Retained earnings	($80,431)	$3,137	$82,720	$192,930	$337,623
	Total Equity	($80,431)	$3,137	$82,720	$192,930	$337,623
TOTAL LIABILITIES & EQUITY		$247,200	$285,870	$320,052	$385,322	$485,066

 
5 Year Annual Cash Flow Statement

	Year 1	Year 2	Year 3	Year 4	Year 5
CASH FLOW FROM OPERATIONS
Net Income (Loss)	($80,431)	$83,568	$79,583	$110,210	$144,693
Change in working capital	($11,340)	($1,625)	($2,350)	($2,133)	($2,409)
Depreciation	$36,960	$36,960	$36,960	$36,960	$36,960
Net Cash Flow from Operations	($54,811)	$118,902	$114,193	$145,037	$179,244
CASH FLOW FROM INVESTMENTS
Investment	($246,450)	$0	$0	$0	$0
Net Cash Flow from Investments	($246,450)	$0	$0	$0	$0
CASH FLOW FROM FINANCING
Cash from equity	$0	$0	$0	$0	$0
Cash from debt	$317,971	($45,424)	($45,424)	($45,424)	($45,424)
Net Cash Flow from Financing	$317,971	($45,424)	($45,424)	($45,424)	($45,424)
SUMMARY
Net Cash Flow	$16,710	$73,478	$68,769	$99,613	$133,819
Cash at Beginning of Period	$0	$16,710	$90,188	$158,957	$258,570
Cash at End of Period	$16,710	$90,188	$158,957	$258,570	$392,389