Layout of the Farm and Finance

          Location


The Uglich Orphanage Pig Farm is  located just outside the city of Uglich in a small village called Kuznetsovo.
 
 

The Barn for Housing the Pigs
The People Involved

We will  model our farm after a successful  pig farm located in Sergiev Posad envisioned and created by Reverend Sergey Beschasny of DarGift, a Russian N.G.O.  Our  farm has been  purchased  and will be  operated by Miramed Russia, another N.G.O.  Tatyana Safarvona is the director the Uglich Orphanage and the C.E.O of Miramed Russia.
 
 

Tatyana Safarovna

The Farm Itself
We have made a ten percent earnest money deposit in order to buy several buildings and rent forty acres of land from a collective farm.  There are four buildings total.  The main building has an area of 600 square meters to sufficiently house the pigs.  It is in excellent shape and is complete with stalls and a chain and trough system to remove manure.  Two of the remaining three buildings will be used as storage for feed.  One is in excellent shape.  One of  the others needs repair.  The forth building will only be used if future feed storage requires its use. We will raise feed on the forty acre tract of land.  A flat for the workers on the farm is included in the deal.  This is a three to four man operation. We plan to recruit a family to care for the pigs and manage the farm.  We will hire workers from the collective farm to plant and harvest the feed grown on the forty acres.  The ability to do this will reduce our feed cost.
The 40 Acre (16 Hectare) Tract of Land to Grow Feed On
Money Needed to Begin Operation

We need $4,500  in addition to our earnest money for all the buildings.  We need an additional $5,500 to remodel the building to house pigs and buy equipment.  We need about $14,000 seed money or starting capital for the first four months of operation.  We need $24,000 total.  Rent of the land is minimal.  We will be looking at $8.00 a year per hectare of land or less than $3.00 per acre.
 

The Main Building (600 Square Meters)
 
 

Operation

We will receive 25 pigs a month from Father Beschasny and fatten them out for four months.  At the end of four months we will be able to market twenty-five 220 pound pigs each month.   After four months we will be self sustaining.  We plan to have on hand 100 pigs the first year, 200 the second year, and 300 every subsequent year thereafter.  At the end of the first year (4 months of start-up and 8 months of selling pigs) we will have fattened and marketed 200 feeder pigs.
 
 
 

                                                                                                                                                                                                                     A Typical Pigsty

Projected Costs and Income
 
After the Initial Four Months of Start-Up
*Costs and Income every four months as this is the cycle of operation and the duration of time each pig will be raised at the farm
 
 

Income (4 Months):

The price for pork is $3.00 per kilo ($1.36 per pound) if we market it ourselves.
The price for pork is $1.50 per kilo ($0.68 per pound) if we sell it wholesale.

A pig will weigh 100 kilos (220 pounds) at the time of selling.  We will sell 70 kilos (154 pounds) worth of meat.

Considering a 2-5% death rate, the best and worst case scenarios are:

Best Case:  98 pigs*70 kilos*$3/kilo           $20,580
Worst Case: 95 pigs*70 kilos*$1.50/kilo    $9,975
 
 

Costs (4 months):

 
Pigs(100 piglets @ $25/piglet)
$2,500
Feed($15/pig per month for100 pigs)
$6,000
Labor ($60/month*2 people)
$480
Labor ($100/month*1 person)
The head person will oversee the whole project and do the accounting and books as well. 
$400
Land Rental ($8/hectacre or $3/acre per year)
$40
Veterinarian Expense ($1 per head) 
$100
Equipment
$75
Medicine
$100
Utilities
$50
Shipping & Marketing
$75
Miscellaneous
$25
Unanticipated Costs
$25
Total Costs
$9,870
 


Net Profit (4 months):

Total Income - Total Costs (fixed and variable)

Best Case Scenario:       $20,580 - $9,870 =  $10,710 ($32,130 the first year - 8 months of selling)
Worst Case Scenario:    $9,975 - $9,870 =  $105 ($315 the first year - 8 months of selling)

The Initial Four Months
*During the first initial four months, no pigs will be sold.  During the first month we will raise 25 pigs.  The second month we
will acquire another 25 for a total of 50.  The third month we will have 75 and the fourth month we will have 100.  The fifth and
every subsequent month, we will sell and acquire 25 pigs a month.
 
Although the consumption of feed will be less the first four months, the Total Cost of the operation will be remain $9,755.00.  This is to allow for a reserve of feed.
Calculations

The cost to feed the pigs for the first four months of operation will be $3750.

Month   Cost of Feed per Pig     *   Number of Pigs to Feed      =   Monthly Cost

1st                     $15                         *                    25                        =          $375
2nd                    $15                         *                    50                        =          $750
3rd                    $15                         *                    75                         =          $1125
4th                     $15                         *                    100                      =          $1500
Total                                                                                                          $3750

If we are to get the best price on feed, it must be bought in bulk in at $6,000.  Therefore, for the first four months of operation, we  must expend $6,000 for feed.  The cost to raise the pigs is $3750.  The remaining $2250 ($6000 - $3750) worth of feed, will remain on hand at the end of four months and act as a reserve.  This reserve is absolutely necessary should any problems arise with the availability or transportation of incoming feed.  Of course, after the first four months the feed cost will be $6,000 for each four month period.


Yearly Profit

Assuming the current market price of pork remains constant our profit for the first year (four months of start-up and 8 months of selling) will be between $315 and $32,130.  As production increases two-fold for the second year and three-fold for the third year our profits will increase.   At this point it is too speculative to project the amount of those profits.
 
 

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