MONEY CLINIC: I'd like to start a piggery project. How do I end up in the market? | Fin24
 
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MONEY CLINIC: I'd like to start a piggery project. How do I end up in the market?

Nov 22 2019 07:03

A young Fin24 user is interested in starting a pig business in the rural North West, but is not sure how to go about it. She writes

I am a young South African lady from North West rural areas and interested in starting a pig business, but don't have much information on how to take care of pigs and end up in the market. 

Can you please share some advice and tips with me. 

Kgadi Senyatsi, head of business development at The South African Pork Producers' Organisation (SAPPO) responded with some key points:

It is in the interest of SAPPO to assist aspiring and existing pig farmers to become sustainable, profitable pig farmers. SAPPO is an organisation that acts as a mouthpiece of all pig farmers in South Africa, irrespective of the unit size or the location of the farmer. The role of SAPPO is to enable pig producers in South Africa to be economically viable and to maximise long-term profitability. 

The pork producers organisation offers the following assistance to aspiring and developing pig farmers:

• Provision of a generic business plan to be used as a guideline.

• Training of prospective and existing pig farmers.

• Training of government and non-government Extension Officers and Animal Health Technicians

• Provision of mentorship to piggeries that meet SAPPO’s mentorship guidelines

• Provision of technical advice during farm visits

• Coordination of information at information sharing platforms, such as study groups and farmers days.

• Facilitate and advice on market access and production inputs.

Here are a few guidelines to consider:

1. Land

It is the responsibility of the farmers to acquire land for the intended pig farming business. Prospective farmers must ensure that ownership or a long-term lease for the intended land is acquired.

SAPPO can advise on the required land size upon indication of the intended unit size.

2. Environmental Management Plan (EMP)

Upon acquisition of the land, the farmer is advised to contact Environmental authorities for the arrangement of the Environmental Management Plan as per the environmental regulations. The approved Environmental Management Plan will ensure that the land is suitable for pig farming. Any pig farmer must provide an approved EMP for the identified land as required by the environmental laws.  

An EMP is a component of an Environmental Impact Assessment (EIA) which must be provided in any commercial piggery. 

SAPPO can assist with contact details of environmental consultants who can provide detailed advice on the EMP. Prospective pig farmers are also advised to enquire about Water User and Waste Discharge Water Related Use licences from the Department of Water Affairs.

3. Market agreements

According to SAPPO, any prospective pig farmer must ensure that prior to the operation of the piggery, there is a secured market within a reasonable distance from the production point. 

It also remains the responsibility of the farmer to do a feasibility study and research about the availability and proximity of markets to the proposed piggery. The prospective farmer must further negotiate agreements with prospective markets. 

SAPPO will assist with provision of relevant information regarding available markets.

4. Finance

Due to the intensiveness and complexity of pig farming, the enterprise requires high start-up capital. 

While SAPPO does not offer any financial assistance, it will assist farmers with a generic business plan which should be used as a guideline in preparation of a business plan. 

It is the responsibility of the prospective farmer to acquire quotations from inputs suppliers and update the figures in the generic business plan. A list of financial institutions can be provided by SAPPO on request.

5. Production inputs

It is the responsibility of a farmer to negotiate better deals when purchasing production inputs for her/his business operation. SAPPO will assist in identifying sources of production inputs for the piggery project.

Compiled by Allison Jeftha

Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers. Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.

pig farming  |  money clinic
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