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Piggery Business Philippines

Piggery business is one of the traditional businesses of Filipinos.  The industry ranges from backyard ventures to commercial scale. This business has thrived because of one thing: Filipinos love to eat pork. 

Here, we will guide you on how to start your piggery business.

The Piggery Business in the Philippines

Despite the current pandemic, the demand for pork is still high. According to Statista, in their June 2021 report, Filipinos consumed about 14.9 kilograms per capita. It also mentioned that it is expected to rise this year.  This simply means that the piggery business will continue to thrive.

According to the Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development (PCAARRD), the swine industry is a P191-billion industry. Among the agricultural products, it is second to rice production.  However, more than half of the swine industry (65%) depends on backyard production.  

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Pros and Cons of Piggery Business

Pros

The piggery business is profitable.  That it has thrived for decades is strong proof of its viability. Among its notable advantages are the following:

Fast Growth Rate = Fast ROI

One of the advantages of the piggery business is its fast return on investment. Quick turnover is due to the short interval between raising and harvesting. One can expect to sell a pig after raising it for five months.

They have good feed-to-meat conversion.  This means that the amount and quality of feeds you give them will be converted to more weight and tasty meat.

High demand

As mentioned already, Filipinos love to eat pork so much that we have to import pork from other countries. Due to African swine flu in other countries, the importation of pork has been banned.  This increases the demand and price.

Easy to Raise

They don’t need much space and they are docile animals. Moreover, they are easy to breed.

Cheap to Feed

Pigs are not picky eaters.  You can supplement commercial feeds with other feeds like kitchen and agricultural wastes.  These can bring the cost of feeding down.

Not prone to diseases

Compared to other livestock, pigs are relatively hardy.  They don’t easily get sick like chickens, for example.  Aside from this, they can also easily adapt to different environments. This means the risk of losing your investment due to diseases is brought low.

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Cons

Smelly business

Pigs are friendly animals, but they have an unfriendly smell.  Pigs produce offensive odor coming from their manure, urine, and wastewater.  There are environmental laws and local ordinances that state where and how pigs should be raised.

Noisy business

This is not as bad as the smell, but pigs can be noisy.  Pigs make high-pitched squeals when they are hungry, fighting, or threatened.  Sometimes the squealing can be a nuisance. Like the smell, laws and local ordinances have to be followed when one puts up a piggery.

Commercial feeds prices

Commercial feeds offer convenient feed management and preparation.  Commercial feeds provide a well-balanced formulation of nutrients, thus helping in the optimal growth of pigs.  The problem is that these feeds are expensive.
  
There is a low-cost alternative which is to feed the pigs with kitchen and agricultural wastes.  But this is only viable when these feeds are readily available and with enough and steady supply.  If these are not so, then you have no other choice but to rely on commercial meals.  Experienced piggery businessmen say that 70-80% of the total cost of the whole operation.

Diseases

Yes, pigs are hardy animals, but they can get sick too. Asian swine flu can wipe out your mob. If not controlled, it can put your investment in trouble. Gastrointestinal diseases are not as bad as the African swine flu, but they should be attended to.  You have to spend on veterinarian’s services and medicines.

Inclement Weather

The biggest challenge concerning the weather is typhoons.  Typhoons can damage the shelter, and several things could happen to the pigs.  They could be crushed and killed or injured by the falling structure or flying debris.  If not killed, they could escape the shelter.

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Business Risks of a Piggery Business

The different items mentioned as cons above are already considered as risk factors. Before jumping into the piggery business, you have to consider the risks.  There are environmental, health, and financial risks involved.  This is where a good business plan comes in.

The Importance of a Piggery Business Plan

In any business, the risk is always present.  You cannot eliminate it,  but you can minimize it by having a piggery business plan.

However, a good business plan’s primary function is not to address risks but rather to provide a roadmap towards success in entering the business.  Through it, the goals and expectations will be achieved.

Piggery Business Plan Sample Outline

This is just to give you an idea of what is expected of a piggery business plan.  If you want to know more about creating a business plan, go to this blog found in Franchise Market Philippines, Ultimate Guide in Creating a Business Plan in 2020.

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Executive Summary

This section gives the piggery business stakeholders a picture of the overall content of the business plan. This would include the following: an overview of the business, the goals, objectives, mission, vision, projects, teams, and other departments. 

Include also the individuals you are still to hire.  Discuss how they make a good fit for your company.  Mention how the company will be managed.

Financial Plan

This is a very important part.  Here, you discuss financial forecasts and source funding for capital.

Appendix

The appendix should have references, diagrams, tables, and others that support the business plan.

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Type of Piggery Business

One of the things that you have to decide on before you start is the type of piggery business you want to have.

Breed and Grow vs. Grow-Out

With regards to piggery business operation, you decide whether it will be breeding and fattening or grow-out.

When reproducing and growing, you purchase a few quality piglets to grow to become your breeders.  You can raise them to become a boar and a sow or several sows. Or you can have sows only and have them artificially inseminated or have mated with boar from other piggeries.  

The piglets produced will be grown for marketing.  This model takes time, but you have breeders, so there is no need to buy piglets for an increase.

The other one is the grow-out model.  Some call this the “fattening model.”  You buy piglets and grow them. When they reach marketable age and weigh at least three-month-old, you sell them. This model gives the business a fast return on investment. The downside is that you keep buying piglets from others.

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Independent Grower vs. Contract-Grower

As an independent grower, you shoulder everything in the business from acquiring the permits, building the facilities, raising the pigs until the selling.  The advantage of this is that you have control over the company.  The disadvantage is that the whole load of work is on you.

The second type is contract growing.  Here, the grower (piggery owner) partners with big companies to process and market hog products.  The piggery owner provides pig buildings, electricity and water supply, workforce, security, and permits.   

On the other hand, the company offers the piggery owner hybrid pigs, quality feeds, medicines, veterinary services, delivery and hauling services, processing and marketing of the hogs, and reasonable payment.

This set-up is advantageous to piggery owners with not enough capitalization for the business.  Another thing is the technical know-how that you get from this successful company.  The disadvantage is that you are pressured to produce.  Partly, you are not in control of the business.

On the other hand, the company gets a reliable, steady source of hogs without worrying about growth.  It also frees them from legal obligations concerning labor and permits.  Monterey Foods, Pilmico, CP Foods, and Excel Feeds are companies that are into hog contract growing. 

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Facilities and Equipment Needed

Pig Shelter and Pens

You need to provide the pigs with a pig shelter to protect them from the elements of nature. Its location should be away from houses due to the offensive odor that pigs produce. The most common shelters in the Philippines are made of concrete and metal sheet roofing.

Inside the house should be a pen or pens for easy pig management.  When building a pen, you have to consider that each pig needs four square meters of space.

For example, you have four pigs.  This means that you need to build a pen the size of 16 square meters for these pigs.  The most common cells here in the Philippines are made of concrete.  But you can also use metal gates.  One advantage of metal gates over concrete is that you can change the configuration of the pens.

The floor of the shelter and the pens should be made of concrete because it is more efficient when cleaning.

The size of the pig house and the number of pens depends on the number of pigs you want to raise.

Feeders and Water Troughs

Feeders and water troughs are needed to hold feeds and water for the pigs. The best feeders and troughs are made of concrete.  They are heavy and sturdy.  However, other materials may be used like discarded automobile or truck tires cut into half as feeders and troughs.

These are the necessities.  As you grow in your business, you can add some automatic feeders and waterers later.

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Business Requirements for a Piggery Business

To avoid legal inconveniencies later, your piggery should comply with the different legal requirements for starting a business here in the Philippines.

The requirements given here will just be a summary. You can check out this blog, Legal Requirements for Business in the Philippines, for the complete list of requirements needed to start a business or you can inquire through the concerned agencies directly.

Register Your Piggery Business

There are three types of business ownership: sole proprietorship, partnership, and corporation.  For sole proprietorship, register with the Department of Trade and Industry (DTI) office.  You may check the procedure and requirements in registering on DTI's website.

For partnerships and corporations, register with the Securities and Exchange Commission (SEC).  For collaborations and corporations, you may access the SEC’s website.

Secure a Mayor’s Business Permit

Go to the local government unit where you want your piggery business to be.  Go to their city or municipal hall to secure the Mayor’s permit.  Be aware that this permit has many requirements that you have to work on beforehand.  Here are the following:

  • DTI Business Name Certificate for a sole proprietorship
  • SEC Articles of Partnership, or SEC Certificate of Incorporation
  • Barangay Clearance/ Permit
  • Authorization letter of the owner with ID
  • Contract of Lease or Land Title / Tax Declaration
  • Sketch of Location
  • Occupancy Permit
  • Location Clearance
  • Public Liability Insurance
  • Community Tax Certificate (Cedula)
  • Fire Permit
  • Sanitary Permit

There are  other additional documents or permits that the city or municipality may require from you. 

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Register with the Bureau of Internal Revenue (BIR)

Your business must be registered with the BIR to be given the Tax Identification Number (TIN). Visit the BIR’s Revenue District Office (RDO) of the place of your proposed piggery business.  Go to BIR’s TIN Application Information page to have an idea of the requirements.

Register with the SSS, PhilHealth and Pag-Ibig Fund

If you are hiring workers, they need to be registered with these three government agencies for their workers’ benefits.

Social Security System is in charge of retirement and some health benefits. Philippine Health Insurance Corporation (PhilHealth) provides health benefits solely.  Lastly, Home Development Mutual Fund (PAG-IBIG Fund) is for housing loans.

Each agency requires the employer and employees to share in the monthly contributions for the workers’ benefits.

Secure an Environmental Certificate

The blog, Legal Requirements for Business in the Philippines, does not discuss this.  An environmental certificate is one of the requirements for a Mayor’s Permit.

Depending on the number of heads you will raise, you will be required to acquire either a Certificate of Non-Coverage (CNC) or an Environmental Compliance Certificate (ECC) by the Department of Environment and Natural Resources (DENR). 

A piggery business with less than 100 heads will be required to apply for a CNC.  If a piggery has more than 100 heads, an ECC is required. A CNC or an ECC can be obtained from the DENR’s Environmental Management Bureau Regional Office of the region where the proposed piggery will be located.  To know how to apply for a CNC or an ECC, go to DENR’s Environmental Compliance Assistance Center page.

Location Requirements of a Piggery Business

As you choose the site for your piggery, be aware of the national laws and local ordinances affecting the location of your pigpen, like the zoning laws, distance from the nearest buildings (residential, commercial, and others), and the distance from the source of ground and drinking water, etc.

The Resolution 674 series 2000 of the Housing and Land Use Regulatory Board (HLURB) will give you the rules and regulations regarding piggery location.

This document even gives the features of the ideal site.  Some key features mentioned are the following:

  • It shall preferably have a rolling terrain to provide better drainage.  It is not flood-prone.
  • It shall not be built on high moisture soil since this tends to hold water.
  • It shall not be located in urban areas.
  • It shall be no less than 25 meters away from the nearest source of ground and drinking water.

Choosing the Right Piglets

To have a profitable piggery business, one of the most important requirements is to have the right piglets. The Agricultural Training Institute of the Cordillera Administrative gives the different considerations when purchasing piglets.

  • Buy weaners, piglets that had been weaned from their mother for at least 1-2 weeks.
  • If possible, buy piglets from one source or farm to come from the same breed.
  • Buy piglets that are of high quality and healthy.  You can ask the help of an experienced piggery farmer or a veterinarian.
  • Avoid buying the piglets that are being peddled (you are not assured of their health and quality).

Feeding Management of the Pigs

To grow healthy and optimally, Pigs need to be fed with all the nutrients they need at different stages of their growth. For this to happen, their feeding should be managed or programmed.  This is the advantage of commercial feeds over DIY, low-cost alternative meals.

Commercial feeds have a type of feed for each stage.  They offer the following:  booster, weaner, pre-starter, starter, grower, and finisher.  To give an idea of feed programming with commercial feeds, here is a sample program from one hog feed manufacturer:

STAGE AGE IN DAYS BODYWEIGHT FEED INTAKE
PER DAY

 
Booster 7 - 28 days 3.6 to 6 kg 50g to 100g
Weaner 29 - 40 days 6 to 8.5 kg 100g to 350g
Pre-starter 41 - 60 days 8.5 to 25 kg 350g to 1kg
Starter 61 - 90 days 25 to 50 kg 1kg to 1.6kg
Grower 91 - 131 days 50 to 85 kg 1.6kg to 2.3kg
Finisher 131 days to market 85 to 100+ kg 2.3kg to 2.6kg

 

Feeding management is one of the conveniences of commercial feeds.  Another is the preparation.  Since they are dry, they are easy to prepare.  But the downside is the cost.  Commercial dinners are expensive and could cut immensely on your profit.  

If you find them expensive, consider low-cost alternative feeds.  Some alternative meals are rice bran, banana trunks, sweet potato (leaves, vines, roots), and many others.  Remember that pigs are not picky eaters.  

If you are interested in this, read Backyard Piggery Project.  It gives you alternative feeds and even the formulation of mixing them to achieve the health and growth you want to see in your pigs.

Piggery Farming Tips

Tips that will be mentioned here are related to the capacity and the capability to do this business.

Start Small

If you have zero experience, try the traditional Filipino share growing.  The Cebuanos call this “pabatnan.” This is backyard farming, but you partner with someone knowledgeable and have the place to raise pigs. You either buy a sow to breed or a piglet to grow.  Your partner will be the one to care for and feed the sow until it produces or the piglet until it is marketable.

In the case of breeding, you sell the piglets and divide the profit or divide the number of piglets between the two of you.  There should be an agreement at the beginning of how you will divide the outcome.

In the case of growing out, your partner will fatten the piglet until it is marketable.  You sell the piglet and divide the income.

This system provides a good experience in the piggery business.  It gives a picture of the whole process so that when you launch out on your own, you will have some idea of what to do.

Even when you will venture on your own, to start small is wise. Start with a few piglets. Get the experience before expanding.

Get Financial Aid

Get some help if you do not have enough funds to start your business.  Franchise Market Philippines has this blog to assist you in getting funds if you do not have enough capital.  Read 9 Best Ways to Find Funds for Your Business.

Get Technical Help

To succeed, you need to have enough technical knowledge about the business.  There are a lot of institutions offering training or seminars on the piggery business.

Check these institutions and organizations that provide piggery business training or seminars.

Conclusion

Piggery business is a profitable business, but you have to understand the business just like any business.

Understand the advantages and the disadvantages.  Be aware of the risks.  To navigate success in the piggery farm armed with the knowledge of its opportunities and threats, you have to write down a business plan. Without the business plan, you could waste a lot of money and time.

Aside from the business plan, get to know the requirements and the operation of the business.  All of these will help you to the destination that you want to reach.

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Disclaimer: Franchise Market Philippines strives to provide relevant and accurate information in all its articles. However, some information in our articles may differ or might be outdated from what you can see or read directly from the establishments' or businesses’ websites. Please get in touch with us directly for any discrepancies.