How to really start a piggery business (LESSON 1)agrichculture.com/wp-content/uploads/2018/02/1st-lesson...2018/02/01 · That is why being a newbie in this business I made a lot

HOW TO REALLY START A PIGGERY BUSINESS (LESSON 1)

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© Agrichculture.com


Ya! Habibi! Sadik! Kabayan!

Hi! My name is Roffer Monajan. Author of the book How to Really Start a Piggery Business (an OFW guide before investing your hard earned MONEY). If you’re thinking of getting started then the book I wrote will be Incredibly important for you. This book that I wish I had when I started my piggery business, Will help you save time!! And money!! It’s a collection of the things you should know before diving and investing your hard earned money. You might be just starting out finding things that you wanted to invest and grow your money, If you are unsure, Or you just want to try this business, Or you might even don’t know anything about pigs, it’s possible that you can start this business if you wanted to. If you wanted to start this while you are still employed overseas or employed in a job that you wanted to escape or just like me who wanted to go full time, I can still remember when I told myself that this will be my last contract and I will be going home for good. And now I am home for good. But in the other hand, If you’re just wondering

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If it can really work, just like those stories that made success and you’re wondering if it could Really work…. For you…. This business covers a lot of big decisions:

Shall I use commercial feeds or mix my own feeds

What type of pig operation shall I start

I don’t know if I have a market or not in my area

How much capital do I really need?

This is where I was when I was starting out.

I know that you just want to be on the right path, you want to be sure that your money will be protected. I remember when I was on the same situation and all I am looking for is a map, a guide, of how am I going to really start and make money in this business I have chosen. 2014 I started planning this business, before I flew and work overseas. In 2016 we bought the propose site for our business. And in 2017 we started our operation. You might think that I am still new in the business So why would you listen to me? That is right!

That is why being a newbie in this business I made a lot of mistakes, mistakes that cost

me time and money. Mistakes that I know valuable and can be avoided for someone like you, who wants to start a piggery business.

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So what does this piggery business gives you?

You already heard a lot of stories regarding this business of how they started small and went from being an OFW or a full time employee and turned into a full time pig farmer. Those stories are all out there and true, But I need to warn you this business is not a get rich quick. It will never happen overnight even if you can avoid all the mistakes I made or even how good You are taking care of pigs, this business requires a lot of work for it to work. So again what does this piggery business gives you? Money?

While money can give us a lot of things, for me this business gives me

FREEDOM.

Well, It is not only piggery business, but mostly any business that you can scale up, grow, and increase your potential of making it big. And this business I chose gave me: Freedom to stay here in the Philippines, and being able to see my family everyday is one of the things I knew you always wanted to have as well.

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So would you allow me to go back to the start? I already planned a life overseas. Right after graduation I told myself I have to go to the fast lane and earn money abroad. I am an Aircraft Mechanic and a year after graduation I did and made it through my first 2 years as an OFW. Believe me that it was one tough fight living abroad. I saw how everybody have to deal with everything from the loneliness and to the thought of how they wanted to attend and take care of their sick children. And the worst….

Going home just to burry and say goodbye to a love one. And disaster…. If they won’t let you go home, because of manpower issues!!! Even how angry and sad you are, you can’t do anything because you need the job to sustain and provide for your family. After seeing and hearing stories like these I said to myself… This is the sacrifice I have to make to have a good life,

And I thought that this was the only way of having that life. I thought I knew where I was going.

After 2 years abroad, I came back and invested P 238,000 on a training that would somehow

increase my market value (my competency on my career). After the training I went on to search again for another employer overseas that would somehow employ the more qualified me.

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But time is passing and after a year I haven’t still find a place to work for. So I applied and worked locally for an International Airline. Every day I have to remind myself that this is not the fast lane and I knew I have to go back out, If I wanted to have a good life. I stayed, for a while… And it took me three years to realize that this work is not for me anymore. I am starting to build and plan of starting my own family, and I could not imagine myself leaving my family behind although we are now virtually connected through (Facebook, Skype, etc.),

It still hurts me just to think of working away without me taking care of the things a father or a parent should be doing for his children. That is why I will always look up to OFWs who had given a lot of sacrifices and shed too many tears just to give everything for their family.

SALUTE TO ALL OF YOU!!! But how can I be free? If the only thing I knew is to Study, Find a good job, Get an experience and Work overseas if you wanted to have a good life. There must be another option… I said… And so… I invested on myself... took trainings, seminars, looked for opportunities that would give that

FREEDOM I wanted to be financially free, I am a frugal person but that is not enough.

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And so having a business came to me; I moved and do something about it. I started to look for businesses that I could start. I changed the way I look at things. I developed areas that I think are valuable for a businessman. I’ve always been kuripot but I still need to increase my financial awareness. I invested and got myself a pre-need plan. I also become one of Phil plans sales Associate while being employed.

I also got hooked in those MLM promises (sure they are working, but you really have to work,

for it to work) but I could not give false hopes anymore to those that wanted money but don’t have that extra effort to really make it.

WER-PA. I tried to open a lotto outlet but my application was denied. Tried to open a LPG outlet (E.C. GAS). Have you heard about it? (Composite cylinder LPG gas) but again, denied in the area I am applying for because they said the one they took has more expertise in selling the product. I also became a Real Estate agent, But I came to realize…. That why would I look for something else if I can just start one thing that we don’t have, And that is… Our own supply. We have a meat shop and we are sourcing our pigs in different hog raisers and so I have the idea of using this as the answer for the freedom I am looking for. But I have to pay for that freedom. I have to have that capital to start my piggery business.

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..And so… I have to leave again but this time with the decision that this would be the last I will work overseas. So 2014 I left. I have a 2 year contract and that two years was all planning reading and motivating.

I was scared...

I was scared because I don’t know anything about pigs...

I don’t know which operation I have to go, I don’t know where to start at all… But I kept reading. I contacted a lot of professionals. I even consulted one of the swine consultants here in the Philippines. He is a good consultant but not just the consultant I need. I wanted to get that freedom fast. I wanted a strategy and a way on how to really start the business I have chosen. But information is not enough. And this is where our mistakes and our lessons will help you really start a piggery business.

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LESSON 1

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THE BIG PICTURE

Piggery business is like any kind of business where there is risk and potential loss, but your big picture will be your light when dark moments come. Your big picture is your motivation towards starting this business.

If you are an OFW your big picture may be:

1. To stay with your family all the time. Because you are tired of going in and out of the

country.

2. To have a sufficient income that can replace your salary overseas.

3. To prepare for your retirement so that when you go home for good, you still have an

income that will add to the money that you saved abroad.

4. Invest early so that I could be financially free.

5. Set up a business that would take me back home when it is already generating good

money. 6. Position my business to the growing need to feed the growing population.

This are just some of the Big Pictures that you might have, although it varies from person to person you might want to list some of your own.

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Go ahead and start creating yours!

Do you have it?!

Having this picture on your mind will remind you to be strong and tough. Risks are everywhere, but when you do have a dedication to stick to your big picture, you will stay and push through.

Think of your big picture as your big price, the ultimate goal. Get a good look at it and remember your reason why you will put your hard earned money in this business so that you will have the drive to make it work.

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Man often becomes what he believes himself to be. If I keep on saying to myself that I cannot do a certain thing, it is possible that I may end by really becoming incapable of doing it. On the contrary, if I have the belief that I can do it, I shall surely acquire the capacity to do it even if I may not have it at the beginning”. ― Mahatma Gandhi

https://www.goodreads.com/author/show/5810891.Mahatma_Gandhi

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WHY PIG??

Demand is growing

Source: BAI (Hog Industry Roadmap)

Growing Population

Check this link for an actual increase of our population.

With this population and the capita or the consumption per person of 14.9 kg and increasing, the need for fresh pork, those barbeques and sisig are rising. We need more producers because we already have issues in the past of shortage in the pig production and with the growing population for sure there will be more room for your piggery business.

http://www.worldometers.info/world-population/philippines-population/

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Shortage DA OKs import of 7M kilos of pork to stabilize market prices

Just last year in order to stabilize prices our Department of Agriculture give the green signal to import pork just to secure and protect the complaining consumers. So not only you got the chance to earn but a chance to contribute to our food security.

Rising pork prices due to decline in number of backyard raisers, tight global supply-www.pna.gov.ph

There is a big room for aspiring hog farmers actually if you would visit statistics of our swine inventory and production you would have a good look of how badly we need more pig farmers.

Another data from pig progress showing how Philippines is heavily relying on pork

imports to supply our own market demand.

https://psa.gov.ph/livestock-poultry-iprs/swine/inventory

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Income Potential

How much really would you gain in starting this business? And why does many of our kababayans rely on this business and some use this as their primary source of income?

Is the profit really that big?

It has been discussed before by other pig farmers but there are plenty of factors that makes your profit high.

From

Salary

Utilities (water, electric, gas)

Live weight price

Weight of the pigs you are disposing

The overall percentage of your produced pigs ( mortality, farrowing rate)

Feed cost

1,000 per pig, is the conservative amount. This might seem low especially the time you will invest in taking care of pigs but let me give you a sample of the income potential you can get.

I have a Ninong who manages a 250 sow level of his OFW brother, and he said that the net profit varies from 12-15% of the gross sales. The farm employs 10 people and they are disposing an average of 100 heads per month operating on a farrow to finish operation.

That’s their net income monthly 12% of the gross sales, of course this is before EBITDA (expenses before interest tax depreciation appreciation). This did not happened overnight. They are operating for almost 10 years now, but when they were on their 3rd year they wanted to close the business because they were losing money, but they persevere, re-assessed everything, looked back at their big picture and now they are growing and growing.

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YOUR BUSINESS GOAL

In this section you should ask yourself this question so that you will have an idea of how big your investment should be. The profit in the piggery business is not that big some may say that, but if you have a big population and you are disposing let’s say 100 heads a month then that would be different.

Just like having a sari-sari store, they didn’t put it up to use it as their main source of income. Usually what they say is (for sideline), but if you really wanted to use it as your primary source of income, your main source of living, then maybe one of the best way to do it is open up 10 or more sari-sari store or why not a grocery store. So in piggery business the more heads you raise the better.

My sole source of income

After leaving the life abroad I have save enough just to start the business but I will tell you frankly that what we have isn’t enough, that is why it is best to have a generating income from another source, so that you will have enough money that you can use while the business is still picking up or maybe it is wise to stay abroad while the business is growing.

And if you wanted to make this as your sole source of income you have to raise at least

50-100 Sow level farrow to finish operation or 50-100 heads of fattening pigs every month if you are going for a grow out operation.

And it is vital that you mix your own feed.

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I just want to try it out

If you are not definite about your decision in getting into this business and you just want to check and try the business if it’s going to work out for you or not? Then You should start on a backyard level and just raise 10 heads in grow out operation. Buy piglets around your area and check your profit afterwards. But having a backyard operation compared to commercial piggery have a big difference in profitability. Example:

Live weight price is low

Backyard= Given that you are raising small quantities and when the time comes for you to sell, then you don’t have any option but to sell them, otherwise, you will increase your feed costs if you wait for the price to go up. Commercial= They will sell the pigs that are ready for market but since they still have pigs again in the next month or in a few days they will pick up their loses from there.

Feeds costs

Backyard= No price discounts on buying small quantity of feeds, also you rely on commercial feeds, which is more expensive than mixing your own feed. Commercial= Due to capability of mixing their own feed they could lower their feed costs. Also in times of low live weight prices they have bigger advantage than those using commercial feeds. But I am not saying to start right away in a commercial piggery, just like a baby learning to stand you have to build you muscles first. That is why planning and your strategy in this business is important.

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BEFORE YOU START

Feasibility Study

Don’t overdo it because this is just a way of looking at the business and knowing if it is profitable, possible achievable or not. It is also a way of answering questions like: SHOULD YOU PROCEED WITH THE BUSINESS OR NOT??? AM I CAPABLE OF STARTING THIS BUSINESS??? Piggery is profitable but if you are going to raise in an area of mostly vegetarian or those who doesn’t eat pork then you are in the wrong market. Your feasibility study must consider the people who are consuming your produce. Piggery is not any product that you have to inform your customers about it, you just have to let them know you exist and that’s it. Check this link for a sample of piggery feasibility.

https://www.slideshare.net/JandelGimeno/a-project-feasibility-study-for-the-establishment-of-ej-farms

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Business Plan

Now this is where your strategy should be made. How are you going to make the business grow and the steps of how are you going to do that. While there are too many samples in the internet these are the key main factors you should be focusing to envision the success of your business.

Expansion Plan

You should ask yourself how big your operation shall be, how many heads are you planning to raise so that you could also buy a lot intended for your propose expansion.

Capital

Are you going to raise all the money intended for your operation or you shall ask for a bank loan?

Market

Check this link to know the volume of the pig produced in your area.

Your Piggery location

It is obvious that you need this before you start, but before buying a property that seems fit for your operation you should go and visit your Local Government Unit (Municipal or City hall) and proceed to the zoning department locate the site and tell them your plan and the number of heads you wanted to raise, or you could just use the things below before buying a property.

Look for a location that will be approved by the HLRUB/zoning requirements, it is hard to start investing and putting your money in this business and then just figuring out later that the area that you bought couldn’t be approved by the authorities.



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1,000 meters

Distance between piggery

farms

1,000 meters

Distance between Built up

area.(Yung magkakatabing

10 establishment up either

residential/industrial/commerci

al/neighborhood)

500 meters

Distance in Major roads

25 meters

Distance Between drinking

water

Source: House and Land Regulatory Board

http://hlurb.gov.ph/wp-content/uploads/laws-and-issuances/policies/PoultryPiggery.pdf

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Tip: Know which classification your propose piggery will fall

Source: House and Land Regulatory Board

How Measure the propose pig farm to nearest built up area

1. Go to google maps 2. Type or go to the exact location of the land 3. Click satellite on the lower left part of the map 4. Right click on the starting point or the location of your propose piggery and click measure distance. 5. Click on the area or your end point in which you wanted to measure.


https://www.google.com.ph/maps?source=tldsi&hl=en

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As you can see in the image above the propose site for our piggery business doesn’t conform with requirements of having a large scale piggery because it is only 689m instead of 1000m or 1 km. And take note that we have a 20 sow level operation and we are already considered a large scale operation.

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In the book that I will release we will discuss the things that you should do if you already bought your propose site and you already started your construction and the site is a non-conforming site. I tell you what! I thought that the property we bought for our piggery back then was far enough, because I measure it from the nearest house to our site through a cars odometer. And when I started to apply for a locational clearance intended for our building permit that was the time they break the bad news. I was shocked! I measured it, I told myself! But I can do nothing, I even explained to them, that I am an Ex-OFW and I escape and left the life abroad to start this and use this as our way to sustain our life in staying here.

I wanted to cry…

Believe me...

Because we already invested big money on this business. I kept on reading the Law regarding starting a piggery business under HLRUB (http://hlurb.gov.ph/wp-content/uploads/laws-and-issuances/policies/PoultryPiggery.pdf). And guess what I find? There is still a way! Wait well stop from here… Right now we have cover the first thing you need in moving forward in this business. In the second lesson we will talk about the one biggest factor that impacts your income in this business. Feeds


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How much you should really feed your pigs! We will also talk about the basic three operation and their different feeding requirement. And as we go further to our lesson, you will feel if this business will be worth your time and money and if you can really use this, To be Free and live the life you always wanted to have, having a business of your own that can give that freedom to you… I know you are all excited so watch out for my next email and so that you will be updated to our next lesson… But right now. I want to know a little more about you. What does having a business look like to you? What would happen in the level of? Your income Your lifestyle With your family If you start and make your business successful? Please leave comments in our FB PAGE HERE and if you find this useful I would love if you click the like button, and share it with your friends. You know when I was telling my colleagues and family and friends that I am staying home for good, they are skeptical and some didn’t believe me because they knew I already have enough salary that would be enough to shelter and provide to my family. And mostly what they advised is that Business is scary, It’s a tough journey.

https://www.facebook.com/agrichculture/

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But I never wanted a life that is just enough, so I will fear nothing And I will enjoy my journey. And have the life that I deserve, That YOU DESERVE If you just combine hard work and determination and you hold on to your big picture then the Sky is your limit.

There is no telling how far you can go.

You’re going to create an amazing life,

You’re going to take care of your family.

Leave a comment for me and I’ll see you in the next lesson.

P.S. Check your email in the next days to come for this next lesson. Enjoy! P.P.S JUST IN CASE YOU ARE NOT SIGNED IN THIS LESSON, CLICK HERE TO BE UPDATED WITH THE NEXT LESSONS TO COME!

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How to really start a piggery business (LESSON 1)agrichculture.com/wp-content/uploads/2018/02/1st-lesson...2018/02/01 · That is why being a newbie in this business I made a lot