PROJE

CT PROPOSAL DOCUMENT
FOR

LIVESTOCK REHABILITATION
PROJECT

PREPARED BY
SRI VINAYAKA FARMS

FOR
FUNDING

Project Summary

Name of Project

SVF Livestock Rehabilitation

Name of implementing
organization

Sri Vinayaka Farms

Project

Contact Address
Contact Person

Mr. Siva Prathap

Position

Project Co-ordinator

Type of Project

Livestock Rehabilitation Project

Location of Project
Type of Project Beneficiaries

Five Hundred and Eighty Five (585)

Duration of Project

1 (one) year

Legal Status The project has registered with the Ministry of Agricultural, Forestry and
Marine Resources, National Association of Farmers of Sierra Leone (NAFSL), Ministry of
Rural Development and Local Government, Ministry of Social Welfare Gender and
Childrens Affairs
Community Contribution
Amount of Fund requested
Total Cost

Pig Farming

1. Introduction
The challenges faced by our country in securing the food as well as nutritional security to fast
growing population need an integrated approach in livestock farming. Among the various livestock
species, piggery is most potential source for meat production and pigs are more efficient feed
converters after the broiler. Apart from providing meat, it is also a source of bristles and manure. Pig
farming will provide employment opportunities to seasonally employed rural farmers and
supplementary income to improve their living standards. The advantages of the pig farming are:
a. Pig has got highest feed conversion efficiency i.e. they produce more live weight gain from a
given weight of feed than any other class of meat producing animals except broilers.
b. Pig can utilise wide variety of feed stuffs viz. grains, forages, damaged feeds and garbage and
convert them into valuable nutritious meat.
However, feeding of damaged grains, garbage
and other unbalanced rations may result in lower
feed efficiency.
c. They are prolific with shorter generation
interval. A sow can be bred as early as 8-9
months of age and can farrow twice in a year.
They produce 6-12 piglets in each farrowing.
d. Pig farming requires small investment on
buildings and equipment.
e. Pigs are known for their meat yield, which in terms of dressing percentage ranges from 65 80 in comparison to other livestock species whose dressing yields may not exceed 65%.
f.

Pork is most nutritious with high fat and low water content and has got better energy value
than that of other meats. It is rich in vitamins like thiamin, Niacin and riboflavin.

g. Pigs manure is widely used as fertilizer for agriculture farms and fish ponds.
h. Pigs store fat rapidly for which there is an increasing demand from poultry feed, soap, paints
and other chemical industries.
i.

Pig farming provides quick returns since the marketable weight of fatteners can be achieved
with in a period of 6-8 months.

j.

There is good demand from domestic as well as export market for pig products such as pork,
bacon, ham, sausages, lard etc.

2. Scope for pig farming and its contribution to national

The pig population of the country is 11.1 million as per the 2012-13 annual report of Animal
Husbandry. Pork production in India is limited, representing only 7% of the countrys animal protein
sources. Production is concentrated mainly in the northeastern corner of the country and consists
primarily of backyard and informal sector producers. According to 18th Livestock Census of India
(2007), there was a marginal decline in total swine population. The Indian market for processed pork
products is small, and the majority of this market is supplied through imports. Although there are
some local companies which manufacture processed products such as sausages and bacon, quantities
are limited and the industry is small. According to MoFPI, there are 3600 slaughter houses in India,
although the majority of these facilities do not export. There are a small number of abattoirs in India
which meet international standards. However, these facilities do not process pork.
The pig farming constitutes the livelihood of rural poor belonging to the lowest socio-economic strata
and they have no means to undertake scientific pig farming with improved foundation stock, proper
housing, feeding and management. Therefore, suitable schemes to popularise the scientific pig
breeding cum rearing of meat producing animals with adequate financial provisions are necessary to
modernise the Indian pig industry and to improve the productivity of small sized rural pig farms.
In view of the importance of pig farming in terms of its contribution to rural poor and possible
potentials for pig rearing in our country, Government of India has initiated measures to promote the
pig farming on scientific lines under its five year plans. In order to make available good foundation
stock 115 pig breeding farms were established throughout the country.

3. Financial assistance available from banks / Nabard for pig farming

For piggery development schemes with large outlays, detailed project reports will have to be
prepared. The items such as land development, construction of sheds and other civil structures,
purchase of the breeding stock, equipment, feed cost up to the point of income generation are
normally considered under bank loan. Other items of investment will be considered on need basis
after providing the satisfactory information justifying the need for such items.

4. Project formulation for Bank Loan

4.1 The report normally should include information on land, livestock markets, availability of water,
feeds, veterinary aid, breeding facilities, marketing aspects, training facilities, experience of the
farmer and the type of assistance available from State Government Regional Pig breeding centres.
The report should also include information on the number of and type of animals to be purchased,
their breed, production performance, cost and other relevant input and output costs with their

description. Based on this, the total cost of the project, margin money to be provided by the
beneficiary, requirement of bank loan, estimated annual expenditure, income, profit and loss
statement, repayment period, etc., can be worked out and included in the project cost.
4.2 The project should include the following information on technical, financial and managerial
aspects in detail based on the type of unit and capacity
Technical:
a. Nearness of the selected area to financing bank's branch.
b. Availability of good quality animals in nearby livestock markets/ breeding farms.
c. Source and availability of training facilities.
d. Availability of concentrate feeds and kitchen/ hotel/ vegetable market waste and broken
grains from godowns.
e. Availability of medicines, vaccines and veterinary services etc.
f.

Availability of veterinary aid and marketing facilities near the scheme area.

g. Reasonability of various production and reproduction parameters

Financials:
a. Unit cost - The average cost of piggery breeding stock.
b. Input cost for feeds, veterinary aid, insurance, labour charges, etc.
c. Output costs i.e. sale price of fatteners, piglets and culled animals
d. Income-expenditure statement and annual gross surplus
e. Cash flow analysis.

Managerial:
Borrowers profile
a. Individual/Partnership /Company / Corporation/ Co-operative Society /Others
b. Capability in managing the proposed business
c. Experience in proposed activity or others
d. Financial soundness
e. Technical and other special qualifications
f.

Technical/ Mangerial staff and adequacy there of

Others:
a. Name of the financing bank
b. Assistance available from State/ Central Government

c. Regulatory clearances, if any etc.

5. Appraisal of the project

The project so formulated considering the above mentioned aspects should be submitted to the nearest
branch of the bank for availing credit facility for establishment of the broiler farm. The bank will then
examine the project for its technical feasibility, financial viability and bankability.

6. Sanction of Bank loan and its disbursement

After ensuring technical feasibility and economic viability, the scheme is sanctioned by the bank. The
loan is disbursed in stages against creation of specific assets such as construction of sheds, purchase
of equipment and animals. The end use of the fund is verified and constant follow-up is done by the
bank.

7. Lending terms General

7.1 Unit cost and Outlay
Outlay of the project depends on the local conditions, unit size and the investment components
included in the project. Prevailing market prices / cost may be considered to arrive at the outlay.
7.2 Margin Money
Margin depends on the category of the borrowers and may range from 10% to 25%.
7.3 Interest Rate for ultimate borrower
Banks are free to decide the role of interest within the overall RBI guidelines. However, for working
out the financial viability and bankability of the model project we have assumed the rate of interest as
12% p.a.
7.4 Security
Security will be as per NABARD/RBI guidelines issued from time to time.
7.5 Repayment Period of Loan
Repayment period depends upon the gross surplus in the scheme. The loans will be repaid in suitable
half yearly/annual instalments usually within a period of about 5-6 years with a grace period of one
year.
7.6 Insurance
The animals may be insured annually or on long term master policy, where ever it is applicable.

8. Economics of Pig Farming

A model economics for pig farming with 20 sows and 2 boars is given below. This is indicative and
applicable input and output costs and the parameters observed at the field level may be incorporated.

A. Project cost
Amount in
Rs.
Sr.N
o
1
A
i

Particulars
Buildings
Pig styes
for sow @ 20 Sq.ft per sow at Rs 150 per Sq.ft for 20 Sows

ii

For boar @ 70 Sq.ft per boar for 2 boars at Rs 180 per Sq.ft

25200

iii

Farrowing pen at 80 Sq.ft per sow for 8 sows at Rs 150 per Sq.ft
(Considering always 40 % of pigs in farrowing )

96000

iv

For piglets @ 10 Sq.ft per piglet for 300 piglets at Rs 100 per Sq.ft

Store room 200 Sq.ft at Rs 150 Per Sq.ft

vi

Labour quarters 300 Sq.ft @ Rs. 200 per Sq.ft for 1 labourer
Total

2
a

b
3
a

c
d

Piglets for breeding

Cost of 20 four months old gilt weighing about 40 Kg @ Rs 80 per
Kg live
Cost of 2 six months old boar weighing about 50 Kg @ Rs 90 per
Kg
Total
Feed (Concentrate and roughage at 50 :50 Basis)
120 Kg concentrate +180 Kg roughage up to maturity for 20 gilts
@ Rs 12/Kg Concentrate and Rs.1.50 /Kg roughage
2.0 kg feed (1.00 Kg Concentrate+1.00 Kg Roughage) per day
per adult sow at above prices

I Year

II Year

60000

300000
30000
60000
271200

64000

9000
73000

34200

32400

300 Kg per boar (1:1 Con. & Rough) up to maturity

4050

2.0 kg feed (1 Kg Concentrate+1 Kg Roughage) per day

per adult boar at above prices

3240

240 Kg per piglet up to marketable age for 200 pig lets - 240 days
(1:1 Concentrate : Roughage)
Total

300000

98550

19710

324000
73890

442260

4
5
6
10
11
12

Equipement Rs 200 per animal

Equipments for piglets @ Rs. 20 for 300 piglets
Medicines & Vaccines @ Rs 100 per animal
Insurance charges @ 5 % of cost of breeding stock
One labour @ Rs 4500 /month/labour
Vehicle hiring for garbage collection
Total
Grand total

4400
6000
2200
3650
54000
54000
124250
542340

54000
54000
108000
850260

Margin 25 %

135585

212565

406755

637695

0.25
Loan

B. TECHNO ECONOMIC PARAMETERS

Sl. No.

Particulars

1
2
3
4
5
6
7
8
9
10
11
12

No. of sows (6-7 months old)

No. of boars
No. of batches
Purchase price of sow in Rs.
Purchase price of boar in Rs.
Sale price of culled sow in Rs.
Sale price of culled boar in Rs.
Interval between two batches (months)
No. of farrowings per year
No. of piglets per sow per farrowing
Mortality among piglets (weaners)
Mortality among fatteners

13

Mortality among adults is not considered as insurance

cover is available
Weaning period (months)
Space requirement (s.ft.)
Boar
Lactating sow with it's piglets
Dry sow
Fattener of 3-5 months age
Fattener of 6-8 months age
Store room (s.ft.)
No. of gunny bags per ton of feed
Income from gunny bags (Rs./bag)

14
15
16
17
18
19
20
21
22
23

20
2
2
3200
4500
4500
5500
3
2
11
20%
10%

2
70
80
20
10
15
200
13.3
10

C. Projection chart for piggery unit of 20 +2

Y
ea
r

Stock at the
begining

So
ws
1

Bo
ars

No. of
piglets
after
farrow
ing

II

20

158A

220B

III

20

158B

220C+
220D

VI

20

20

20

Weane
rs

Mort
ality
durin
g
fatten
ing

Piglets

IV

Mort
ality
durin
g
wean
ing

20+2* 220A

158D

220E+
220F

Culled
pigs for
sale

Bo
ars

So
ws

Piglets
availab
le for
sale

10

11

12

44A

176A

18A

44B

176B

18B

20

44C+
44D

176C+
176D

18C+
18D

20B

44E+
44F

176E+
176F

220G+
220H

44G+
44H

220I

44I

176G+
176H
176I

18I

158D+
158E
2

So Bo
ws ars

Piglets

20

158A

20

158B

20

158D

20

158F

20

138G+
158H

20

158I

156F

2F+
20G
20G

Stock at the End

18E+
18F
18G+
18H

158A
138B+
176C

158F

138G+
158H

Pigl
ets
retai
ned
for
bree
ding
purp
ose

20
138G+
158H

D.Income and expenditure statement for a piggery unit of 20+2 units based on
flock chart
Particulars

Years
I

II

III

IV

VI

758400

1507200

1516800

162240
0

142080
0

13500
7700

120000
13500
7700
156200
0

INCOME
Sale of piglets(Avg.B.Wt at market 75 kg
/Piglet @ Rs 80 per Kg Live wt.
Sale of salvage sow and boar(Avg.Wt 100 Kg
@ Rs 60 /kg live wt.
Manure at Rs 75 per animal
Gunny bags at Rs 10 per bag

13500
7700

13500
7700

120000
13500
7700

Total

21200

779600

1648400

1538000

25350
13000
166075
0

73890

118260

118260

118260

118260

118260

18000
54000

648000
18000
54000

648000
18000
54000

648000
18000
54000

648000
33800
54000

648000
18000
54000

6050
54000

6050
54000

6050
54000

6050
54000

6050
54000

6050
54000

Total

205940

898310

898310

898310

914110

898310

Gross Income

13400

215550

750090

639690

746640

663690

EXPENDITURE
Concentrate and roughage for breeding stock
Concentrate and roughage for fattening stock
Vety.aid @ Rs 100 per animal
Labour
Insurance charges @ 5 % of breeding stock
price
Vehicle maintenance and garbage collection

E. Repayment schedule
Year
1
2
3
4
5
6

Loan
outstanding
406755
1044450
1044450
619116
344822
200000

F. NPV,IRR

Gross
income
13400
215550
750090
639690
746640
663690

Interest

Principle
0

174145
125334
74294
41379
24000

300000
200000
200000
200000

Total
Repayment
0
174145
425334
274294
241379
224000

Surplus
13400
41405
324756
365396
505261
439690

YEARS
ITEM
Capital cost
Recurring cost
Capitalised costs
Total cost
Benifits
Income
Capitalised costs
Net benefits
DF at 15%
NPW of costs
NPW of benefits
NET PRESENT VALUE
at 15% DF
BCR at 15 % DF
Internal rate of return (irr)
of the scheme

II

III

542340
205940
198140
550140

850260
898310
550260
1198310

21200
-528940
0.869
478071.66
18422.8
7,39,672.66
1.222157193
46%

IV

VI

898310

898310

914110

898310

898310

898310

914110

898310

779600

1648400

1538000

1660750

1562000

-418710
0.756
905922.4
589377.6

750090
0.657
590189.7
1082999

639690
746640
0.571
0.497
512935 454312.7
878198 825392.8

663690
0.432
388069.9
674784