Pig Farm Business Plan Template

Written by Dave Lavinsky

Pig Farm Business Plan

You’ve come to the right place to create your Pig Farm business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Pig Farms.

Below is a template to help you create each section of your Pig Farming business plan.

Executive Summary

Business Overview

Heritage Farm is a new pig farm located in Swain County, North Carolina. The farm is founded by Tom Thatcher, who is a third-generation farmer with 10 years of experience breeding livestock. Tom is known for his expertise in animal husbandry, having bred top quality lamb, beef, and pork while working with his father on the family farm. His experience and family connections will provide a distinct advantage as he branches out on his own. While Tom is confident in his ability to manage all aspects of his commercial pig farm, he will be able to draw on his father’s knowledge, should the need arise. He will be assisted in the day-to-day labor of caring for the pigs by two experienced farmhands who followed him from his father’s operation when he branched out on his own.

Heritage Farm will focus on breeding and raising Berkshires and Landrace. Tom chose these breeds to start with, for top quality meat from Berkshires, and bacon and pork chops from Landrace. The farm will start with sales to local restaurants and households, but plans to quickly ramp up to commercial production for distribution throughout the Southeastern United States.

 

Product Offering

The following are the products that Heritage Farm will provide:

  • Market (meat) stock
  • Breeding stock

In addition, Heritage Farm will initially process its own meat to sell locally. It will offer whole hogs, and sides, as well as specific cuts by the pound.

 

Customer Focus

Heritage Farm will initially target all restaurants and households in Swain County, as well as selling live hogs at livestock auction. Once the herd is well-established, the farm will target commercial meat processors throughout the Southeast.

 

Management Team

Heritage Farm will be owned and operated by Tom Thatcher. His wife, Maggie Thatcher, will help manage the office and administrative operations.

Tom Thatcher has been working with his father on the family farm his entire life, and is a graduate of Auburn University with a Bachelor’s degree in Animal Sciences. In addition, Tom was in charge of stock breeding at his family farm for the last 10 years. His lifelong farming experience, family connections, and education are invaluable assets in this venture.

Maggie Thatcher, whom Tom met at University, has a Bachelor’s degree in Accounting. Tom relies strongly on Maggie’s business acumen in managing the books and all the administrative details that go into commercial farming. Maggie has worked alongside Tom and his family on the farm since they were first married, and she understands all aspects of running a successful animal production operation.

 

Success Factors

Heritage Farm will be able to achieve success by offering the following competitive advantages:

  • Tom is an experienced farmer, with deep roots in the area. His family connections and animal husbandry expertise will provide a distinct advantage over other pig farms in the county.
  • Heritage Farm will initially produce and process Berkshire and Landrace breeds, which will result in top-quality pork and high-yield bacon production.
  • Though Heritage Farm’s pricing will be comparable to products of similar quality, it will attract high-end restaurants that seek out locally-produced ingredients. In addition, quality-conscious households appreciate the opportunity to interact with the farmer who raised the meat.

 

Financial Highlights

Heritage Farm is seeking $610,000 in debt financing to launch its pig farm. The funding will be used towards purchasing an existing farm and procuring the initial livestock. Funding will also be used towards three months of overhead costs to include payroll and marketing costs and association memberships. The breakout of the funding is below:

  • Farm purchase: $50,000
  • Farm equipment, supplies, and materials: $100,000
  • Three months of overhead expenses (payroll, utilities, pig feed): $150,000
  • Marketing costs: $10,000
  • Working capital: $100,000

The following graph below outlines the pro forma financial projections for Heritage Farm.

Heritage Farm Financial Projections
 

Company Overview

Who is Heritage Farm?

Heritage Farm is a newly established pig farm located in Swain County, North Carolina. Heritage Farm will initially focus on breeding and raising Berkshire and Landrace breeds. These breeds have been chosen for the initial production cycle, for top quality meat from Berkshires, and high production of bacon and pork chops from Landrace. Heritage Farm will initially provide processed whole hogs, sides, and meat by the pound for local restaurants and households.

Heritage Farm’s founder, Tom Thatcher, is highly qualified and experienced in animal production and farm operations. Heritage Farm will produce healthy animals that exemplify breed standards, both to sell at auction, and to process into high quality pork products to local households and restaurants.

 

Heritage Farm History

Heritage Farm is owned and operated by Tom Thatcher, who is a third-generation farmer with 10 years’ experience breeding livestock. Tom is known for his expertise in animal husbandry, having bred top quality lamb, beef, and pork while working with his father on the family farm. His experience and family connections will provide a distinct advantage as he branches out on his own. While Tom is confident in his ability to manage all aspects of his commercial pig farm, he will be able to draw on his father’s knowledge, should the need arise. He will be assisted in the day-to-day labor of caring for the pigs by two experienced farmhands who followed him from his father’s operation when he branched out on his own.

Since incorporation, Heritage Farm has achieved the following milestones:

  • Registered Heritage Farm, LLC to transact business in the state of North Carolina.
  • Has located an existing farm, and has placed an offer for purchase.
  • Reached out to numerous contacts, including commercial meat processors and wholesalers, as well as local restaurants to advise them of their planned opening.
  • Identified property improvements and equipment necessary for a successful operation, and obtained quotes for construction and pricing for equipment purchases.

 

Heritage Farm Services

The following will be the services Heritage Farm will provide:

  • Market (meat) stock
  • Breeding stock

In addition, Heritage Farm will initially process its own meat to sell locally. It will offer whole hogs, and sides, as well as specific cuts by the pound.

 

Industry Analysis

The Pig Farming industry is expected to grow over the next five years to over $28 billion.

The growth will be driven by the rising price of red meat, and increasing per capita pork consumption. Higher prices for commodities, like red meat, boost farmers’ revenue and returns because downstream buyers will usually pay the new price. Higher prices also encourage producers to devote more resources to their farm’s production, raising national production. In addition, farmers that produce premium pig breeds can secure higher prices in livestock markets.

Costs largely come from the purchase of pigs from other farms, and from the price of feed. When pig farmers breed the majority of their stock, and grow their own feed, costs can be better managed.

 

Customer Analysis

Demographic Profile of Target Market

Heritage Farm will initially target local restaurants and households, and once established, will target commercial meat processors throughout the Southeast.

The precise demographics for Swain County, North Carolina are:

TotalPercent
    Total population1,680,988100%
        Male838,67549.9%
        Female842,31350.1%
        20 to 24 years114,8726.8%
        25 to 34 years273,58816.3%
        35 to 44 years235,94614.0%
        45 to 54 years210,25612.5%
        55 to 59 years105,0576.2%
        60 to 64 years87,4845.2%
        65 to 74 years116,8787.0%
        75 to 84 years52,5243.1%

 

Customer Segmentation

Heritage Farm will primarily target the following customer profiles:

  • Local high-end and farm-to-table restaurants
  • Local households who like to know where their meat comes from
  • Pork processors
  • Other farms (for breed stock)

 

Competitive Analysis

Direct and Indirect Competitors

Heritage Farm will face competition from other companies with similar business models. A description of each competitor company is below.

 

McLeod Farm

Founded in 2015, McLeod Farm is a small farm specializing in heritage breed animals and sustainable produce. Products include:

  • Chickens
    • Black Copper Maran
    • Old English Game
  • Ducks
    • Muscovy
  • Pigs
    • Mangalitsa
    • Gloucestershire Old Spot
    • Berkshire
      Rabbits

    • Flemish Giant

     

    Switcher Family Farm

    Founded in 2014, Switcher Family Farm is a small, family-run farm that raises pure Mangalitsa pigs, and poultry. The farm also grows as much of the livestock’s food as possible, which helps them guarantee high quality, non-GMO food sources. The farm currently grows walnuts, pears, cherries, grapes, berries and plans to establish a filbert orchard for finishing the mangalitsa.

    The meat produced on the farm is sold only to high-end restaurants, and to a limited number of private customers.

     

    Rockwell Farm

    Established in the 1983 Rockwell Farm is a multi-generational family-owned and operated commercial turkey and pork producer and processor. The business was founded on the cornerstone of responsible production, and is always implementing innovations in animal care and sustainability. Throughout the production process, Rockwell Farm takes steps to reduce its environmental footprint, including driving fuel-efficient vehicles and converting animal waste into green energy.

    Today, the company produces and processes turkey and pork with a dedicated team of employees and growers across the South, the Southeast, and the Midwest.

     

    Competitive Advantage

    Heritage Farm will have the following advantages over their competition:

    • The founder is an industry veteran, with deep connections along the supply chain, and significant experience with meat animal production
    • Heritage Farm will initially focus on breeds known for high quality meat, and for fast growth and high yields
    • Heritage Farm offers competitive pricing, but with higher profit margins due to a lower cost of production.

     

    Marketing Plan

    Brand & Value Proposition

    Heritage Farm will offer the unique value proposition to its clientele:

    • Founded and run by an industry veteran with proven success in breeding heritage livestock.
    • High-quality, locally-produced pork products.

     

    Promotions Strategy

    The promotions strategy for Heritage Farm is as follows:

    Word of Mouth/Referrals

    Tom Thatcher has built up an extensive list of contacts over the years of breeding quality meat animals. Further, he has lived in the community his whole life, and is continuing the family tradition of meat animal production. His reputation for high-quality meat production at his father’s farm has led to a significant following from high-end and farm-to-table restaurants. These restaurants have communicated to Tom that they will follow him to his new farm and help spread the word of Heritage Farm.

    Professional Associations and Networking

    Heritage Farm will become a member of North Carolina’s pork producer association, as well as the National Pork Producers Council. The farm will focus their networking efforts on expanding their client network.

    Website/SEO Marketing

    Heritage Farm will launch a website that will be well organized, informative, and list all the products currently on offer. The company will also hire a marketing firm to manage its website presence with SEO marketing tactics so that Heritage Farm will appear as a top result on relevant searches.

     

    Pricing

    The pricing of Heritage Farm will be moderate and on par with competitors, so customers feel they receive value when purchasing their products.

     

    Operations Plan

    The following will be the operations plan for Heritage Farm.
    Operation Functions:

    • Tom Thatcher will be the Owner and President of the company. He will oversee all operations.
    • Maggie Thatcher – Office Manager who will manage the office administration, client files, and accounting.
    • Keith Williams – Farmhand experienced in caring for livestock.
    • Ron Davis – Farmhand experienced in caring for livestock.

     

    Milestones:

    Heritage Farm will achieve the following milestones in the next six months.

    • 5/1/202X – Finalize contract to purchase the farm
    • 5/15/202X – Finalize contracts for construction/renovation of facilities
    • 6/1/202X – Purchase farm equipment
    • 6/15/202X – Begin sourcing breed stock
    • 8/22/202X – Finish facilities
    • 9/1/202X – Begin acquisition of breed stock
    • 9/30/202X – Begin breeding

     

    Management Team

    Heritage Farm will be owned and operated by Tom Thatcher. He is joined by his wife, Maggie Thatcher, who will help manage the office and operations.

    Tom Thatcher has been working with his father on the family farm his entire life, and is a graduate of Auburn University with a Bachelor’s degree in Animal Sciences. In addition, Tom was in charge of stock breeding at his family farm for the last 10 years. His lifelong farming experience, family connections, and education are invaluable assets in this venture.

    Maggie Thatcher, whom Tom met at University, has a Bachelor’s degree in Accounting. Tom relies strongly on Maggie’s business acumen in managing the books and all the administrative details that go into commercial farming. Maggie has worked alongside Tom and his family on the farm since they were first married, and she understands all aspects of running a successful animal production operation.

     

    Financial Plan

    Key Revenue & Costs

    The revenue drivers for Heritage Farm are sales of live pigs and processed pork.

    The cost drivers will be the overhead costs required to breed, maintain, and process pigs. The expenses will be the payroll cost, utilities, feed, and farm supplies.

     

    Funding Requirements and Use of Funds

    Heritage Farm is seeking $610,000 in debt financing to launch its pig farm. The funding will be used towards purchasing an existing farm and procuring the initial livestock. Funding will also be used towards three months of overhead costs to include payroll and marketing costs and association memberships. The breakout of the funding is below:

    • Farm purchase: $250,000
    • Farm equipment, supplies, and materials: $100,000
    • Three months of overhead expenses (payroll, utilities, pig feed): $150,000
    • Marketing costs: $10,000
    • Working capital: $100,000

     

    Key Assumptions

    The following outlines the key assumptions required to achieve the revenue and cost numbers in the financials and to pay off the startup business loan.

    • Number of Pigs Sold Per Month: 100
    • Average Sales per Month: $20,000
    • Input Costs per Year: $100,000

     

    Financial Projections

    Income Statement
    FY 1FY 2FY 3FY 4FY 5
    Revenues
    Total Revenues$360,000$793,728$875,006$964,606$1,063,382
    Expenses & Costs
    Cost of goods sold$64,800$142,871$157,501$173,629$191,409
    Lease$50,000$51,250$52,531$53,845$55,191
    Marketing$10,000$8,000$8,000$8,000$8,000
    Salaries$157,015$214,030$235,968$247,766$260,155
    Initial expenditure$10,000$0$0$0$0
    Total Expenses & Costs$291,815$416,151$454,000$483,240$514,754
    EBITDA$68,185 $377,577 $421,005 $481,366 $548,628
    Depreciation$27,160$27,160 $27,160 $27,160 $27,160
    EBIT$41,025 $350,417 $393,845$454,206$521,468
    Interest$23,462$20,529 $17,596 $14,664 $11,731
    PRETAX INCOME$17,563 $329,888 $376,249 $439,543 $509,737
    Net Operating Loss$0$0$0$0$0
    Use of Net Operating Loss$0$0$0$0$0
    Taxable Income$17,563$329,888$376,249$439,543$509,737
    Income Tax Expense$6,147$115,461$131,687$153,840$178,408
    NET INCOME$11,416 $214,427 $244,562 $285,703 $331,329
    Balance Sheet
    FY 1FY 2FY 3FY 4FY 5
    ASSETS
    Cash$154,257$348,760$573,195$838,550$1,149,286
    Accounts receivable$0$0$0$0$0
    Inventory$30,000$33,072$36,459$40,192$44,308
    Total Current Assets$184,257$381,832$609,654$878,742$1,193,594
    Fixed assets$180,950$180,950$180,950$180,950$180,950
    Depreciation$27,160$54,320$81,480$108,640 $135,800
    Net fixed assets$153,790 $126,630 $99,470 $72,310 $45,150
    TOTAL ASSETS$338,047$508,462$709,124$951,052$1,238,744
    LIABILITIES & EQUITY
    Debt$315,831$270,713$225,594$180,475 $135,356
    Accounts payable$10,800$11,906$13,125$14,469 $15,951
    Total Liability$326,631 $282,618 $238,719 $194,944 $151,307
    Share Capital$0$0$0$0$0
    Retained earnings$11,416 $225,843 $470,405 $756,108$1,087,437
    Total Equity$11,416$225,843$470,405$756,108$1,087,437
    TOTAL LIABILITIES & EQUITY$338,047$508,462$709,124$951,052$1,238,744
    Cash Flow Statement
    FY 1FY 2FY 3FY 4FY 5
    CASH FLOW FROM OPERATIONS
    Net Income (Loss)$11,416 $214,427 $244,562 $285,703$331,329
    Change in working capital($19,200)($1,966)($2,167)($2,389)($2,634)
    Depreciation$27,160 $27,160 $27,160 $27,160 $27,160
    Net Cash Flow from Operations$19,376 $239,621 $269,554 $310,473 $355,855
    CASH FLOW FROM INVESTMENTS
    Investment($180,950)$0$0$0$0
    Net Cash Flow from Investments($180,950)$0$0$0$0
    CASH FLOW FROM FINANCING
    Cash from equity$0$0$0$0$0
    Cash from debt$315,831 ($45,119)($45,119)($45,119)($45,119)
    Net Cash Flow from Financing$315,831 ($45,119)($45,119)($45,119)($45,119)
    Net Cash Flow$154,257$194,502 $224,436 $265,355$310,736
    Cash at Beginning of Period$0$154,257$348,760$573,195$838,550
    Cash at End of Period$154,257$348,760$573,195$838,550$1,149,286

    Pig Farm Business Plan FAQs

    A pig farm business plan is a plan to start and/or grow your pg farm business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

    You can easily complete your Pig Farm business plan using our Pig Farm Business Plan Template here.

    There are a number of different kinds of pig farm businesses, some examples include: Farrow-to-finish pig farm, Farrow-to-feeder pig farm, or Feeder-to-finish pig farm.

    Pig Farm businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

    Starting a pig farm business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

    1. Develop A Pig Farm Business Plan - The first step in starting a business is to create a detailed pig farm business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  
    2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your pig farm business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your pig farm business is in compliance with local laws.
    3. Register Your Pig Farm Business - Once you have chosen a legal structure, the next step is to register your pig farm business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 
    4. Identify Financing Options - It’s likely that you’ll need some capital to start your pig farm business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 
    5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 
    6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 
    7. Acquire Necessary Pig Farm Equipment & Supplies - In order to start your pig farm business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 
    8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your pig farm business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.