Executive Summery
Mr. Right had least the property about two years
ago in which he had been growing farm produce to feed his family and the
remaining portion was sold to higglers in Morant Bay Market, St. Thomas. Some of these farms produce are cane, coffee,
banana, plantain, hot pepper, sweet pepper, cassava, etc.
Mr. Right has built a concrete wall building where
he houses his pigs, so far he has one service boar and one fully mature sow has
farrowed on the 8 June 2011. Nine
piglets were littered and one died leaving eight piglets which has now reached
weaner stage. Business has been going
well for the past years, that is, the great demand for agricultural produce and
pork, Mr. Wright has been able to make sufficient money to sustain his
family. However, his wife and three boys
are now attending school and the profits is too small to sustain his family;
therefore he is seeking to expand his business so that he can take care of his
family. Mr.Right is currently in the
process of expanding the physical structure of the piggery’s housing. He already has constructed four pig pens and
about 70 feet more of concrete structure has just been completed and are
awaiting these animals. Mr. Wright
wishes to buy two guilt’s so that he can expand his piggery production.
Mr. Right has already sought market for the
expansion of his business, that is, Sweet River Abattoir & Supplies Company
Limited has agreed to purchase the live pigs for $125 per pounds for the live
pigs and they will be responsible for the transportation. The local market is purchasing the live pigs
at $130 per pounds.
Mr. Right’s contribution in the business thus far is
a total of about $300,000.00 and the business requires a financial support of
$500.000 (Jamaican).
Mr. Right is registered with the Rural Agriculture
Development Authority (RADA) and he is currently seeking to register with St.
Thomas Piggery Association. Therefore,
the business will not be liable for tax.
The business should be a financially viable one if it is properly
managed.
History and Background
Location and Description
Mr. Right’s Farm is located on one acre of land in
Somerset District St. Thomas. Located on
one acre of fertile land, the property is owned by Mrs. Gloria Davidson who
resides in Somerset District, St. Thomas.
This land was previously owned by her mother, Mrs. Imogene Telfer, and
this land has been a family land for over 50 years. This land was supported continuously by cane,
coffee, banana, plantain, hot pepper, etc.
The land was leased by Mr. Kevar Right for the past two years and he
has planted banana, plantain, pumpkin, corn, cassava, cane, sweet pepper and
hot pepper and other produce which has been produced in abundance on the
farm. In addition, it has been supported
by pigs. Some of the farm produce are
currently sold at the local market in Morant Bay, St. Thomas.
Business
Objectives
The farm is revitalized and is currently producing
on a commercial basis pigs and farm produce that are being marketed in the
Morant Bay, St. Thomas.
Plans are to further expand on the commercial
production of the pigs so that they can be marketed to Sweet River Abattoir
& Supplies Company Limited in Westmoreland. To implement this expansion,
financial assistance is now required to enable the purchase of more pigs to
expand the venture within the next two months.
Accomplishments
Mr. Right have sold several
pigs has weaner production and fattener production in order to sustain his
family thus far. (At one point, Mr. Right had thirty weaners and he had nowhere to house them, therefore he had to
sell them. If he had somewhere to house
them he would have been able to sell them as fattener production which would
have given him a greater profit.)
Mr. Right has put in place four pig pens, and
currently has one boar, one sow, one guilt and eight weaners which will be used
to sustain his family. He has also won the Best Pig Farmer
Trophy within the cluster from Women’s Resource and Outreach Centre Limited.
In terms of farming, Mr. Right plans to grow
cassava and cane to feed his pigs while he will continue to do minor farming to
sustain his family. That is, he will
plant banana, plantain, sweet & hot pepper, cabbage, callaloo, tomato and
so on.
Management &
Human Resources
The staffing that is currently in place consists of
two persons, that is, the owner, Mr. Kevar Right who manages the affairs of
the business. He is a pass student of
Elim Agricultural High School which is where he developed his passion towards
piggery and his knowledge grew to the extent that he now wishes to own his own
business in piggery.
The next staff member is his brother Mr. levoy Right who is a part time worker because he currently attends the College of
Agricultural Science and Education. levoy’s input is his knowledge and
expertise in which he administers the necessary injections and advises the
manager professionally.
All on-going supervision will be carried out by the
owner/manager, Mr. Kevar Right who also plans to hire two farm handlers to
assist with the piggery upon completion of the expansion.
Membership
Mr. Right is registered with the Rural Agriculture
Development Authority (RADA) and he is currently seeking to register with St.
Thomas Piggery Association. These
memberships will help to provide an alternate market for the expected increase
in piggery as the business develops and expands.
Challenges
The business main challenge is the need for
financing to implement the expansion plans.
Establishing Strategic Direction
Mission
Statement
“To establish Mr. Kevar Rights Piggery within
short run as the best run piggery in Somerset and St. Thomas which will produce
high quality pork (pigs) that will be preferred by customers in such a way that
it will generate a pride of achievement
and profits for the business.”
Short Term
Strategic Objectives
i.
To secure financing of Jamaica $500.000 by August 2011.
ii.
To purchase two guilt’s.
iii.
To purchase twenty weaners
iv.
On-going purchase of animal feeds.
The plans for Mr. Kevar Right’s piggery are to be
reviewed by experts from Sweet River Abattoir & Supplies Company Limited in
Westmoreland and also experts from RADA in St. Thomas. Ample space has been designated for the
expansion of the piggery house which will allow the animal’s adequate space and
protection while they will be properly contained.
The business will be operated with the highest
standards hopefully to keep on winning awards at farm fairs and probably a
trophy at Denbigh Agricultural Show in Clarendon.
Mid To
Long-Term Strategic Objectives
i. To have in place 20 sows to produce 60 fatteners to grace on a monthly
basis.
ii. To become one of the largest producers of quality pork within the
country.
iii. To produce biogas from the piggery’s waste matter to supply
neighbouring person’s with the biogas.
iv.
To offer pork in supermarkets islandwide.
Environmental Analysis
Domestic
Environment for Piggery
With the global threat of the high cost of imported
food and the threatening unavailability of some normally imported food such as
rice, agriculture is being encouraged by the Government of Jamaica (GOJ). (85% of this type of meat is being imported
but because of the heavy duty on tax, wholesalers and retailers find it
difficult to buy the imported meat, therefore, a great demand is now placed in
the local market for this meat.)
Advice and counsel on farming matters are readily
available from agencies such as Rural Agricultural Development Agency (RADA)
and Jamaica Agricultural Society (JAS). It
should be noted however that the supply of pork is not sufficient to meet the
demands of the local market. Presently
the Jamaica Piggery Association reports that local production of pork is only 33%
of the demand.
The relevance
of Mr. Rights Farm
There is no doubt that the proposed production of
pork is in high demand and has the potential of making a good return on the
investment. Skilled farms hands are
readily available in the community of Somerset at affordable wages. In Somerset, and the surrounding communities,
Mr. Right can find persons with experiences in the growing and rearing of
animals which is the core product of the business.
The more Mr. Right’s business grows more jobs will
be created; hence, the business will help to eliminate unemployment in the
country and also help to improve the economy of Jamaica on a whole.
Key
Stakeholder Analysis
The owner and operator of Mr. Right’s Piggery
Business, Orville Wright intends to seek membership with St. Thomas Piggery
Association and in addition alliances will be forged with RADA and JAS and so
on.
SWOT Analysis
Strengths
|
Weakness
|
Opportunities
|
A Piggery Business with
great potential run by a dedicated manager who is intent on attracting a skill
workforce.
|
Financing is required to
purchase the services of personnel, equipment and tools that are necessary to
make the business venture completely viable in the short and long term
periods.
|
There is variety of growing
markets for the produce:
i.
Processors
ii.
Supermarkets
iii.
Local butcher shops
iv.
Hotels
v.
Value Added Potential
vi.
Biogas Potential
|
The property boasts its own
water supply in the form of spring water in which the water is harnessed and
tank providing 600 gallons of water.
|
The need for financing to
get a bigger pipe line, such as a two inch pipe.
|
Agriculture is pushed by the
Government of Jamaica (GOJ).
|
Sales of quality fattening
pigs are very good.
|
The need for good quality
meat.
|
Pork is always in demand.
|
Critical
Success Factors
Critical to the success of this business venture as
a viable farm are:
i.
The expansion of the farm to attain optimum production to make the
business financially viable and hence sustainable.
ii.
The need for financing to implement the expansion plans.
Proposed
Products/Services
Mr. Kevar Right have already met with the Managing
Director, Mr. walford, J.P. from Sweet River Abattoir & Supply Company
Limited who said that they are currently on a drive to get persons to invest in
piggery because their demands for pork are not being met.
Pork is a popular item and 90% of the fattener will
be marketed to Sweet River Abattoir & Supply Company Limited in
Westmoreland under the trademark “Right’s
Highest Quality Pigs” and the remaining 10% of pigs will be marketed
locally in the cluster and Morant Bay Market in St. Thomas.
According to Sweet River Abattoir & Supply
Company Limited, there is a great demand for local pork and since they are only
getting 33% of the demand 67% of the demand still remains to be filled. Therefore, most of the pork available to
Jamaican consumers is currently being imported.
Pricing
As a small producer, Mr. Right’s piggery business
will sell for the prices dictated in the industry:
i.
Fatteners will be sold to Sweet River Abattoir & Supply Company Limited
at $125.00 per pounds alive.
ii.
Fatteners will be sold to local market at $130.00 per pounds after it
is killed.
As a price taker the business will concentrate on
efficiencies to reduce production costs and so maximize profits.
Competition
The demand for pork is so high and in excess of its
productive capacity of the industry that Mr. Right’s piggery business will have
no problem in disposing of its production.
The marketing strategy is not complicated as the demand for the produce
of this piggery business outstrips the current production capacity.
Organization Structure
Human Resource
Requirement & Functions
Staffing is currently in place, consisting of two
persons including the owner/manager and the part-time assistant.
Cash Flow Projections
Sales
of twenty (20) fatteners generate a income of four hundred forty two thousand
dollars ($442,000) minus the expenditure which is three hundred and thousand
four hundred dollars ($312,400), making a profit of one hundred and twenty nine
dollars ($129,600).
Break down of the
expenditure over a six month period:
Feeding
cost for six months for 20 pigs and the breeding animals- $276,400
Transportation
cost for animals $30,000
Transportation
cost for feeds $10,000
Medication
for animals $5,000
Conclusion
There is a
great demand for pork in Jamaica and according to the Managing Director, Mr. Walfford
of Sweet River Abattoir & Supply Company Limited. He also said that only
33% of his company’s demands are being met.
The project
requires a grant of $500,000.00 and the owner have already put in equity of
about $300,000.00. The cash flow
projections and financials indicates that the business will have a positive
cash flow throughout the first six month with a profit of $129,600
The business
hopes to provide best quality products both locally and internationally while
meeting the needs of our customers and stakeholders.
.jpg)
