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University of Nigeria

Author Research Publications

OGBU, Cosmas C.
PG/MBA/93/18063
Title

A Feasibility Study On The Prospects Of


Establishing A Piggery Farm In Enugu-Ezike
Faculty

Business Administration
Department

Management

September, 1998
Date

Digitally signed by Ejikeme

Ejikeme Anthonia Nwamaka


DN: CN = Ejikeme Anthonia
Signature

Nwamaka, C = NG, O =

Anthonia University of Nigeria, OU =


University Library
Reason: I have reviewed
Nwamaka this document
Date: 2008.11.25 21:49:48 -
12'00'
CERTIFICATION

Ogbu, Cosmas Chijama -a p o s t g r a d u a t e s t u d e n t %n t h e Department

o f Management w i t h R e g i s t r a t i o n No. PG/MBA/93/18063 - h a s

s u c c e s s f u l l y completed t h e r e q u i r e m e n t s f o r t h e c o u r s e and

r e s e a r c h work f o r t h e Degree Master o f Busj-ness A d m i n i s t r a t i o n i n

Management. The work embodies i n t n i s p r o j e c t r e p o r t i s o r i g i n a l and

h a s n o t b e s n s u b m i t t e d i n p a r t o r f u l l f o r any o t h e r Diploma o r

Q e g r e e o f t h i s o r any o t h e r u n i v e r s i t y .

( Head o a ~ e ~ a r t r n e n t ) (Supervisor)
DEDICATION

To the memory of my Iatc brother Hyacinth Ogbu:


Like 11 candle in the wind, that bounteous force thal
stood by my side just flickered and d i d , leaving
I~chintla lingering pain.
This study is an attempt t o pr-obe into the potentials of pig p r o d ~ ~ c r i oer-r~erprise
in Ni!leria, by making an articulate study of the basic requiremerlts necessary for I
n I
commercial investment: in a tnodern pigclet-y farm. It seek:; to t.st;hlish tirat pig
pl oc111ctio1\ i:; ;I pt u1it;hlc itlvestrrlul~ttur Nigeria etltrcpr c:rwur s.
Chapter oric sc\-s O I I ~ t t 11: ~ ) ~ I c ~ ~ ~ I - c )~I II I~I (I ~~ ,~ I ~'11r(1 ~ . : l j r o l > l c ~or f~ t t ~ r:CLC'II 1.11,
o : ; t11i:
while chapter t w o dwells on the theoretical franework a n d the review of the
existing literature, thereby defining the dilection o f the stt~cly.This exercise
crystallised irlto t w o working a:;suinptions, th;it t h e r e is ii scar-lly body o f
information on how t o rear pigs in modert~ways in the country and that d e s i ~ l t c
the existence o f incipient demai~dfor por.k, production level is still very low.
In cthapter three, the method of research was set down. A total of 8 0 pork
cons rmers and 16 pork se1ler.s in the four cornmc~tlitiesin ~ n u ~ u - ~ zwere ikc
involt~edin the study. Tkle town was chosen because of its divetse religious
back!yound, with a good representation of adherents of Christian, traditional and
Mosltbm religions, which is very critical factor in the dernand for pork. In the study,
each participating consirrrw wiis required t o fill irr a ciuestiorrr~ait.c:cont.ail~iriy1 3
caref A y construcred questiorls, while each seller- was asked l o frll orre corrcainirlg
I 6 cll-restions.
In Ct~apterfour, d a t a was p ~ e s z r ~ t eand d arlalysed. Ttlt: resultanr tr~er~d stlowed
that ihere exists a large, growing undertrapped rnarket for poi-k, m d the pi-oblerns
o f the pork sellers are found t o be largely lack of storage facilities, capital, irnage
of pcrk and the belief among many that it is usually infected by diseases.
However, the feasibility report based or) the research findings are presented in
Chapcer Five X-raying market and plarlt capacity, materials input, location and site,
project engineering, plant organisation and overhead costs, rrlmpower, pr-oject
impltmentation, financial and economic evaluation. A t the end, it is estdblished
t h a t there exists ;I gond pr.o:;pt:ct for t h e project i t ) tliu towri. Arl;rly:.,el; of
pr'0jt:~Lcdfiila~rcialr atios stwwed yr UIILn~argirls as t ~ i y las i 3 0 per writ in t l ~ ef~rsc
year, with the expected rise up t o 59.2 per L ~ I by I ~the fifth year. Return on the

Equity (ROE) is 4 3 per cent in the first year, alrd 160 per cent by the fititl year.
Return on investment (ROI) is also estimated a t 2 4 per cent by the first year,
rising t o 88.3 per cent by the fifth; while the current ratio is 72 per cent in the
first year, before irlakirlg a quai-rtun~leap t o 93.1 per cerlt by the fifth. -I'he pay-
back period is projected t o be at 2.04 years, and the break-eve11 point as a rate
o f utilisation of production capacity is 19.14 per cent.
Final;y, the study establishes tha.t pig production enter,pr-ise in a typical Nigeria
rural :mviror~rnentis not only feasible but very profitable.
ACKNOWLEDGEMENTS

No srucly of \his narurc is \he wIc el'fort only of irs author. 1 owe m ~ t c hto Professor E.U. I ~ n a p ,
~ l entire stages ol' this work.
who s u p e r v i ~the
'J'.lBI.E OF CONTENTS
TITLE PAGE
CERTIFICATION
DED!CA'TION
ACKNOWLEDGEMENTS
AB S'L'R ACT
TABL,E OF CONTIINTS

CHAPTER ONE: 1NTRODUCTION


BACKGROUND TO THE STUDY
STATEMENT OF PROBLEM
PURPOSE OF STLDY
SIGKIFICANCE OF STUDY
LIlCIITATION OF STUDY

CHAPTER TWO: CONCEI'TUAI, 1:OUND,4rl'IONS


FEASIBILITY AN11 VIABILITY I'IPPKAISALS
FEASIBILlTY ANtILYSIS INDICATORS
LITERATURE REVIEW ON PIG PRODUCTION IN NIGERlA

Cl-1AI"IXR THREE: IIRSEAIICH ~IISTHODOLOCY


SOLJKCESOF DA1.A
METE-IQDS OF INVESTIGATION
DE'TERI\/lINA'I'lOh OF SLIMPLESIZE

CHAPTER FIVE: THE FEASIBILITY IIEPORT


MARKET AND PL4NT CAPACITY
IvIATERIAIS INPL'T
LOCATION AND SITE
PROJECT ENGINE.ERINC
PLANT OKGANIS.4TION AND OVERHEAL) COSTS
MANPOWER
PROJECT IIvlPLEMENTATION
FINANCIAL A N D ECONOMIC EVALUATION

CI-IAJ'TEII SIX: SUMMARY AND CONC1,USION


CHAPTER 01'.J1;'

l o g y c:f the i n s r u s t r i a l i s e d n a t i o n s . Thus, t h e p u b l i c sector' dominated

t h e economic s c e n e , wtiile t h e p r i v a t e s e c t o r p l a y e d ori1.y p e r i p h e r a l role.

I a a d v e n t e n t l y : government a p p r o p r i a t e d more r e s p o n s i b i l i t y t h a n i t

cod1.d .?f
f'iciently discharge. Everybody l o o k e d up t o i t ; -for the ,:conon~ic,

p o l i t l c : t l l , s o c i a l , i n d u s - t r i a l and t e c h n o l o g i c a l e m a n c i p a t i o n of Lhe

N i g e r i t n natioil. P r o v i s i o n o f s h e l t e r , j o b s , f o o d , e d u c a t i o n and i-teal-th-

c a r c w c r c a 1 1 s e e n a s tiic e x c l u s i v e duLy of govcrnnlent ( J o h n Lzc, 1 9 9 3 ,

1) :!) .
'1'11:counLry g n i n c d the lr:verag(: L o colic: L t ~ r c ~ u ~ ~ i i rii:;cvv( i',y ui
i.k~;:

i n t h e 1 980:i, c c o n o r ~ ~ ir ce c e s s i o n , i n t e r n a t j o i i d dcL L or id Lhc a d j u s Lrnent


The programme opened t h e m a r k e t f o r s m a l l and medium- s c a l e

e n t e r p r i s e s , i n t e r m s o f a c c e s s t o r e s o u r c e s and m a r k e t s . Nigerians

~ o o kt h e c h a l l e n g e and a r e now found i n diverse business spheres,

rxost of whict. were h i t h e r t o n e g l e c t e d .

However, a n i m a l b r e e d i n g seems n o t t o have g a i n e d s i g n i f i c a n t l y

from t h e growth i n e n t e r p r e n e u r s h i p v e n t u r e s . The r e s u l t 2 ; t h a t

meat which i s t h e m a j o r h ~ ; o u r c e . . o fp r o t e i n i n t h e c o u n t r y h a s

remained s c a r c e and u n a f f o r d a b l e b y - l o w income e a r n e r s . .

This r e s e a r c h e r b e l i e v e s t h a t through a w e l l - a r t i c u l a t e d

plsogramme or, p f g p r o d u c t i o n , t h e p r i c e s of meat may come do.i*lfi and

mEny inare p e o p l e c o u l d a f f o r d t o h a v e i t i n t h e i r menu.


The o p t i m i s m i s p r e d i c a t e d on t h e n a t u r e o f p i g , which b e l o n g s t o

t h ? group o f d o m e s t i c a t e d a n i m a l s , g e n e r a l l y c a l l e d m o n o g a s t r i c o r

no:l-ruminant a n i m a l s . I t i s a v o r a c i o u s e a t e r whose f o o d s r a n g e froin

t a m c r o p s , w a s t e p r o d u c t s t o o f f a l s o f l i v e s t u c k and p o u l t r y . These

f o o d s a r e e f f e c t i v e l y c o n v e r t e d i n t o p o r k , which y i e l d s e d i b l e p r o t e i n

and food! o f h i g h c e l o r i f i c v a l u e .

But p i g p r o d u c t i o n i n N i g e r i a , e x c e p t f o r a few i s o l a t e d c a s e s

a r e s t i l l l a r g e l y i n t h e hands of t h e n a t i v e s u b s i s r e n c e f a r m e r s .

T h e r e f o r e improvement h a s b e e n q u i t e s l o w , a s t h e a n i m a l s a r e c s a d i t i c j -

n a l l y l e f t t o scavenge f o r f o o d s w i t h l i t t l e o r no a t t e n t i o n s p a i d

t o them. T h i s h a s l e d t o s m a l l littcr s i z e , liigh mortal.ity r a t e ,

and low p r o d u c t i v i t y .
The i n t e r e s t f o r t h i s s t u d y t h e r e f o r e a r i s e s f r o m t h e b e l i e f that
by e : ; t a b l i s h i n g r a t i o n a l e and t h e r e q u i r e m e n t s i n e s t a b l i s h i n g a modern
piggi:ry farm i n a r u r a l s e t t i n g l t k e Enugu-Ezike, t h e r e s e a r c h e r may
have c o n t r i b u t e d t o t h e q u e s t f o r a b e t t e r i u ~ k ~ o v epdo r k p r o d u c t i o n
progrannes i n the country.
I-I; h a s been e s t & l i s k l e d I h - t p r o t e i n i n h k e i n N i g e r i a h a s reds-iced

(.!I>;.(!;1, I ( ; i . ( I 11 :,v(.!C I L ~ I c yciir;; LIZ -jut: 1, i r ~ ~ , : ~ ~ l l : ; c ~ ~ pl'(>pOr


~ u ~ : r l; 1i ~~ 0i ~
1 1~
01' L,~Ic:

p o p u l , (~; i o n c.nri af'l'ortl s~ut'f'iciurlL i ~ l t n l t e01' 1r1c:~iL p : l,c


~ i n. ' T ~ I c I I C : ~LLIL
I

and n ~ l L r - i t i o n : ~survey-
l conducLcd by Lkic 1;cderal. O f f i c e oi' SLal;isl.ic:; i n

1988( .:i Uun I. Anadu, 1'390, P . 2 ) e s t a b l i s h e d t h a t t h e !l+.Lions u r b a n

c e n t r ~ : s h a v e h i g h p r o p o r t i o n o f m a l n o u r i s h e d p o p u l a t i o n w h i l e o v e r 20

p e r c e n t of c h i l d r e n a g e d f i v e oi- l e s s J-ears are i n d i r e s t a t e of' m a l n o u r i s

rnent .
blany N i g e r i a n s h a v e g a v e i n t o f i s h e r y , c s t t l e r e a r i n g , g o a t r y , p o u l t r ;

among o t h e r s , b u t their. efforts have n o t a c h i e v e d t h e d e s i r e d r a t e of

success. N e a n w h i l e , n o t many p e o p l e have e x p l o r e d -tho e c o n o ~ n i cs u p e r i o r i - i ; , ~

of' 11i[,s o v e r o~i;herred mi?;lt. Yt:t, pigs arc rncrc p r o 1 il'ic: t h a n r ; ~ L L l e ,

s h e e p , o r goal;. II; i s a l s o cstirnatud t h t p i g s i n t h e c o u n t r y pi>orluce a b o ~

t e n a . ~ dwean e i g h t p e r L i t t e r and t h a - t Lhcy are c a p a b l e oi' p r o d i l c t i n g -Lr:lc.

1 ti . J y1 . I n a d d i t-Lcin, p i g s hiivc~ h i ~ i h c rI'cct~rlili.l;y, higt-l,.:~~


ma.turXi-I,,
F u r p a s e of t h e S t u d y

T h j - s s t c d y i s i r k e n d e d t o make a v a i l a b l e e o m p r e h e n s i ~ e

in2ormat:'-on on t h e p r e l i m i n a r y p r o j e c t d e s i g n a n d ezonomic
d
a n a l y s i s re<uire/b:! entrepreneurs i n t h e decision-making

p r o c e s s i n cornmittins s c a r c e r e s o u r c e s t o a p i g p r o d u c t i o n

venture. T h e r e s e a r c h p r o b l e m h ~ bs e e n i d e n t i f i e d as t h e

f e a s i b i l t y and t h e e f f i c a c y of e s t a b l i s h i n g a piggery farm i n

t h e rur.-al a r e a s a s a means t o a r r e s t i n g p r o t e i n d e f i c i e n c y

among t h e n a t i o n s c i t i z e n r y .

F i g e r i a i s a c o u n t r y w i t h h i g h p o p u l a t i o n gro7.nkh r a t e ,

b u t low a g r i c u l t u r a l p r o d u c t i v i t y . T h i s makes i t i m p e r a t i v e

f o r t h e n a t i o r , t o show m o r e i n t e r e s t i n a g r i c u l t u r a l b u s s i n e s s ,

i f it would a v e r t m3jor Sisaster i n n e a r f u t u r e .

The p u r p o s e o f s t u d y i s t h e r e f o r e t o e x p l o r e t h e p o t e n -

t i a l s o f a p i g g e r y f a r m as a way a n d m e a n s o f e c o a o m i c d i v e x s i f

i c a t i t > n , b o o s t i n q p r o t e i n i n t a k e ainonq t h e p o g u l a e e , a n d

g e n e r a t i n g n e a n i n q f u l employment f o r t h e p e o p l e .
Thic, i . n v e s t i g a t i o n i s s i g n i f i c a n t i n a v a r i e t y iiL ways. Ir: tile

f Lr :;t pl.ace, t:hrS f c a : ; i b i l i t y : ; t ~ i l y011 t h c prospect:; O: iLJijt:r ~if8.irn1i.tll;

coil l d b c o f good u s e t o prospect i v c -Investors r i Ll.vc:; t n c k p r o d u c t i o n ,

whc, may Eind i t a u s c f u l i n s i g h t i n t o t h e i n d u s t r y nlld a g u i d e t u

s i n i l a r s t u d i e s i n t h e i r ow11 g e o g r a p h i c a l a r e a s . Secondly, t h e s t u d y

mar b e b e n e f i c i a l t o o t h e r r e s e a r c h e r s on s p e c i f i c A s p e c t s o f p i g g e r y

f a r m i n g , as i t may s e r v e a s a u s e f u l s p r i n g b o a r f i . F i n a l l y , t h e general.

p u k l i c may g a i n u s e f u l i l l s i g h t from t h a s t u d y on t h e modern W;LYS of p i g

p r s d u c t i o n and t h e r e b y change t h e i r c o n s e r v a t i v r . b e l i e f s a b o u t p i g s b e i ~

d i r t y , and i n f e s i - c d w i ~ hd l s e ; ~ s e s .
OIIC u~,i.!ctt l;trtl.on ul. tlil:; s ~ u c l yi:, i t : ; i ~ ~ c t l . t i . - t .c
.I.lil~l l ~ 1.1: l . i ~ l i i r - w
j turc.

I t tlrxwt; i t s di1t.n i r o m J l f rerent: f i e 1 . d ~u f s t u d y : Ikinagemcl~t,i\k:rjculture,

Environ.nenta1 s t u d i e s , C i v i l E n g i n e e r i n g rind F i n a n c e . I!& means ttls t

the b u l k of t h e d a t a u s e d a r e a s g l e a r ~ e d Erom p r o i ' e s s i . o n a l s in r e l e v a n t

f i e l d s of s t u d y . T h e r e f o r e , r e l i a b i l i t y of t h e d a t a i s ~s t h e e x t e n t

of a u t h o r s c i t e d o r persons interviewed. A s a r e ~ u l t ,t h e r e s e a r c h e r d i d

nor go i n t o t h e i n t r i c a c i e s of p r o d u c t i o n t e c h n i q u e s but: adcpted produc-

t i o n method which p r a c t i t i o n e r s and r e s e a r c h e r s o c p i g p r o d u c t i o n

p o i n t e d o u t were most s u i t e d f o r t h e e ~ w i r o n m e n tG S t h e a r e a u n i l ~ rs t u d y .

i n ada;.ton, d a t a c o l l e c t e d from ifie s m a l l - s c z l e farmers were 1.imite.d

Lo w11.1t t h e y c o u l d r e c o l l e c t from memory rii.r~ce they d i d n o t keep m i . t cen

records.

.\noth,?r remark:ibli.! l i m i t a t i o n t o t h i s r e s e a r c h w,.t:; fiwncc.. This

rcsca::ctlc r .",as c o n f r o n t e d by ;I I o t oL l o l s i s t i c a l L o t - t . l ( . ~ ~ c c kis


s ing
CHAPTER TWO
f

CONCEPTUAL --
FOUNDXl'IONS

F e a s i b i l i t y and V i a b i l i t y A p p r a i s a l s :

?re-f e a s i b i l i t y l f e a s i b i l i t y t o d e s i g n t r a n s f e r s i x g e i s econonlical..ly

t h e prime s t e p i n a p r o j e c t ' s l i f e . I n t h e United S t a r e s , major f e d e r a l

a c q u i s i t i o n s a r e by p o l i c y proceeded by t h o r o u g h f e a s i b i l i t y s t u d i e s

(D. C l e l a n d and King Williatns, 1988, p. 41). Project appraisal involves

;L c r i t i c a l e v a l u a t i o n of a p r o j e c t from t h e p o i n t s o f v i e w o-f market:,

t e c h n o l o g y , f i n a n c e , management and economy. A l l t h e s e a s p e c t s s h o u l d bg!

p r o p e r l y s t u d i e d because they a r e p i v o t a l t o t h e s u c c e s s f u l o p e r a t i o n a f

the project. The n e g l i g e n c e of any p a r t t h e r e o f may r i s k o r l i m i t : tl-~e

e x p e c t z d p r o f i t a b i l i t y of t h e v e n c u r e (E.U.L. Image, 1995, p . 6U3).

According C l e l a n d and W i l l i a m s ( l 9 8 8 ) , a p r o j e c t u s u a l l y s t a r t s ,is t'

i d e a i s e x p l o r e d f o r f i n a n c i a l and t e c h n i c a l f e a s i b i l i t y i n t h e f e a s i b i l r

o r prefeasibility stage. I t i s t h e r e s u l t of t h e i n v e s t i g a t i o n of t h i s

c r u c i a l s t a g e t h a t d e t e r m i n e s w h e t h e r t o go i n t o o t h e r a s p e c t s which

include capacity d e c i s i o n , l o c a t i o n choice, f i n a n c i a l arrangements, over-

a l l s c h e d u l e and budget f o r ~ n u l a t i o nand t h e o r g a n i s a t i o n s s e t up. It i s

a t t h i s s t a g e t h a t t h e f i n a l l $ o / n o go" d e c i s i o n i s t a k e n .

F e a s i b i l i t y a p p r a i s a l s answer t h e q u e s t i o n , ' c C ~ n 1itt be d o n e ' .

Any venturewhose f e a s i b i l i t y i n v e s t i g a t i o n i n d i c a t e s n e g a t i v e r e t u r n s

on Lnvestment ( K O I ) i s u s u a l l y n o t u n d e r t a k e n , e x c e p t o f c o u r s e t h e

p r o j e c t i s non-commercial i n n a t u r e and t h e p r i m a r y moti-ve b e h i n d it:

i s not p r o f i t b u t s o c i a l b e n e f i t s .
F e a s i b i l i t y and V i a b i l i t y I n d i c a t o r s

I n o r d e r t o understclnd t h e i s s u e s i n t h e assessment of t h e f e a s i b i -

l i t y a n d v i a b i l i t y o f a p r o j e c t , i t i s n e c e s s a r y t h a t we l o o k a t t h e

a s p e c t s t h a t would g u i d c a p r o j e c t a n a l y s t do a good work o f t h e f e a s i b i l i t y

study. S c h o l a r s w r i t i n g on t h i s s u b j e c t h a v e d i f f e r e n t names f o r t h e s e

a s p e c t s , s u c h a s c r i t e r i a , components, i n d i c a t o r s o r g u i d e l i n e s , b u t t h i s

d i f f e r e n c e l i e s o n l y i n nomenclature, a s t h e b a s i c e l e m e n t s of p r o j e c t

f e a s i b i l i t y remain t h e c e n t r a l i s s u e .

N. I k e d i a n y a ( 1 9 7 5 ) :;ees f e a s i b i l i t y a p p r a i s a l a s a d e p e n d e n t v a r i a b l e

i n c l u d i n g t h e p11ysi c a l , t e c h n o l o g i c : ~ l , l e g a l , f i n a n c i a l , ecnnomic , m a r k e t

and m e r c h a n d i s i n g , p r o f i t a b i l i t y , v i a b i l i t y , s o c i a l , p o l i t i c a l and o t h e r

strategic constraints,

imaga ( 1 9 9 5 ) however c r y s t a l i s e d t h e s e a s p e c t s i n t o f i v e , name1.y -


market , t e c h n i c , ~ l , f i n,lni. ia1 , econornic and managemen t . He i n c o r p o r a t e s

i s s u e s r e l a t i n g t o s o c i o - p o l i t i c a l c o n s t r a i n t s under economic a n a l y s i s .

However, J o s e p h L u s k e t and J a c k bIann (1978) i d e n t i f i e d e c o n o m i c ,

m a r k e t , p h y s i c a l a n d f i . n ~ n c i a fl a c t o r s a s t h e most germane t o d e t e r m i n i n g

Eeasibil i ty. They w c o m ? a ~ ; s e t l t h c s o c i o - p o l i t i c a l c o n s i d e r a t i o n u n d e r

p i ~ y is c a 1 a s p e c t s ant1 s k i pl)ed t e c h n i c a l a s p e c t .

.I . A . 1Ji1icl1 ( 1 9 9 7 ) i s o o u t 1 inctl w!tat h e c a l l e d s i x i n d i c a t o r s , Viz.

t e c h n o l o g i c a l , p l ~ y s i c a - I ,s o c i o - p o l i t i c a l , l e g a l , economic and f i n a n c i a l

indicators..

F o r 1:he p u r p o s e c ~ f t h i s s t u d y , h o w e v e r , we h a v e f o u n d I m a g a ' s a s p e c t

more a p p r . > p r i , i t e :IS t l i c y ~ i p p e a rInore p r e c j s e , w l ~ i . l e i n c o r p o r a t i n g t h e


c r i t i c < l l management a:;pec t l n i s s e d o u t by o t h e r s . I n acldi t i o n , t h e
c h o i c e i s e n h a n c e d by t h e f a c t t h a t a l . 1 o t h e r i n d i c a t o r s e n u m e r a t e d
by o t h e r s c h o l a r s a r e i n c o r p o r a t e d a s s u b - p a r t s of h i s g u i d e l i n e s .
For i n s t a n c e , 1)hysic:ll i n d i c a t o r s a r e p r o p e r l y t r e a teci u n d e r t e c h n i c a l
a s p e c t i n h i s ~ 1 ~ 1 si si ci ' i t i o n .
Market Aspect

Llrider tk.e nlarlcet a s p e c t of f e a s i b i l i t y s t u d y , - n v e s t i g a t i o n i s


c d r r i c d o u t t o a s c e r t a i n t h e p o t e n t i a l nlrrrkec f o r t h e p r o d u c t . LL
c o n s i d e r s t h e e x i s t i n g s u p p l y and demand p a t t e r n , t h e m a j o r c o r n p e r i t i o n s
w i t h i n t h e mzrket. It a l s o i n v o l v e s t h e q u a n t i t a t i v e and q u a l i t a t i v e
a n a l y s i s of b o t h t h e p r o d u c t s o f f e r e d and t h e m a r k e t ' s r e a c t i o n t o them,

p r o d u c t s and a b s o r p t i o n t r e n d s - t o f i n d whether t h e market i s s a t u r a t e d

o r undersupplied.

T h i s a s p e c t of t h e s t u d y a l s o o u g h t t o u n d e r t a k e market segnientatioxi

and p r o d u c t d i f f e r e n t i a l a n a l y s i s , i n o r d c r t o d i v i d e t h e t o t a l m a r k e t

i n t o product c h a r a c t e r i s t i c s such a s l o c a t i o n , type, s i z e , p r i c e o r

o r i . e n t ; i t i o n [:hat c a n be r e l a t e d purposefully 1-..o c o r l s u l ~ ~ c rand


s to Cl~e

e x i s t i n g c m p e t i t i o n t o g u i d e i n t h e p r o d u c t development ( L u s k e t alld

Muln, 1378 11.. IO'I.

T e c h n i c a l Aspect

T e c h n i c a l : ; ~ u d y i s c o n c e r n e d wich t h e t e c h n o l o & , i c a l r e c l u i r c r ~ ~ c n tosf a

p r o j e c t , w h e t h e r i t i s v i a b l e from t e c h n i c a l and e n g i n e e r i n g p o i n t s of

view. T h i s t e c h n i c a l a p p r a i s a l i n v o l v e s t h e a n a l y s i s of t h e teclillology/

p r o d u c t i o n p r o c a s s , p l a n t c a p a c i t y , machinery and e o u i p ~ n e n t ~ n l c l t c r i a l s

and i n : m t s , L o c r r t i o n / p r u j e c c s i t e , b u i l d i n g and c i v l c works, mL!~ , r o j e c t

c h c + r t s and l a y o u t (Imaga, 1 9 9 5 , p. 6 0 7 ) .

T h i s a s p e c t .-tQnwt.rs t h e q u e s t i o n w h e t h e r t h e p r o j e c t i s r e a l i s a b l e

w i t h i n t h e a v a i l a b l e t e c h n o l o g y , l d b u u r Lorce and s k i l l and o t l ~ c c

physical constraints. T h i s i s i m p o r t a n t b e c a u s e i t af:ects the ~ o s t

o f development and d e t e r m i n e s whether t h e p r o j d c t c a n b t devclupeil, even

when o t h e r a s p e c t s a r e p o s i t i v e .
Financial Aspect
I
This aspect of the .study determines whetlier. a prsject is financially

profitable in a given environment. The major sources of funds for projectsI

are equity and debt. These sources are critically anal-ysed under this I
aspect and a proper mix determined.

The financial analysis is an exercise that begins. with


.
the calcu-

lation of the total project cost, followed by preparation of projected

income stetements and then the breakeven point, as well as, internal rate

of return. The format used for this analysis vary from analysts to

cnalysts and in accordance with available information and convenience.

But the purpose of analysis is always the ascertainment of the financial

position and the profitability of a project (Imaga, 1995 p. 611).

Economic A S D ~ C ~

Economic analysis has two facets: economic benefits and impact of

a project to the social-economic well being of the people. This aspect is

more important to the government which statutorily h a w t h e development

of socio-economic infrastructure as its main objective. This aspect

involves the analysis of value added, impact on foreign exchange position,

employment effect, and environmental impact. It also evaluates the

influence of economic conditions on the project.

It requires the review of the general economic conditions so as

to determine the past trend, :he current position and the future direction

of the national economy. Here, the analyst looks at the economic environ-

ment but instead of considering the possibility of establishing the

project, he now considers how the economy will affect the growth and

sustenance of the project.


T h i s a n a l y s i s i s v e r y important e s p e c i a l l y i n t h e c a s e of swine
-
Y
p r o d u c t i o n because pork meat a s i t i s known i n t h i s c o u n t r y today i s

l a r g e l y income e l a s t i c : any major s h i f t i n economic f o r t u n e may a f f e c t I


i t f o r good o r f o r bad, depending on t h e d i r e c t i o n of t h e economic t u r n . I

David C l i f t o n and David F y f f e (1977), p. 8) s e e . t h i s a s p e c t a s

s o c i a l p r o f i t a b i l i t y a n a l y s i s , and lump t o g e t h e r market, t e c h n i c a l and

f i n a n c i a l a s p e c t s a s economic f e a s i b i l i t y s t u d y .

Management Aspect

Management a n a l y s i s i s o f t e n n e g l e c t e d i n . f e a s i b i l i t y s t u d i e s of

,nany p r o j e c b . P r o j e c t s w i t h h i g h p o t e n t i a l s have been knowrto come t o

r u i n s because of poor management s k i l l s of t h e p ~ o p l ei n charge.

There =Ire p r o j e c t s t h a t demand a g r e d t deal- of ulanagement s k F l l s ,

s t a r t i n g from t h e f e a s i b i l i t y t o d e s i g n and p r o d u c t i o n t o t u r n over and

s t a r t up. And such p r o j e c t s may meet w i t h g r i e f i f the r i g h t t y p e o i

managers a r e n o t i n charge.

I t i s important a t t h e f e a s i b i l i t y s t a g e t h a t t h e a ~ a i l ~ l b i l i tofy

t h e r i g h t c a l i b r e of management team and t h e i r procurclnent r e q u i ~ ~ e r n e n t ~

a r e a s c e r t a i n e d and c o n s i d e r e d a l o n g o t h e r f a c t o r s i n d e t e r m i n i n g t h e

f e a s i b i l i t y and v i a b i l i t y of a p r o j e c t .

T h i s m a n a g e r i a l a s p e c t i s n e c e s s a r y because i t i s t h e managers t h a t

d e t e r m i n e how t h e r e s o u r c e s a r e a l l o c a t e d and t r a n s i c r m e d i n t o t h e

p r o d u c t i o n p r o c e s s , through and w i t h o t h e r p e o p l e , towards t h e achievement

of t h e o v c r a 1 1 o b j e c t i v e s of t h e p r e j e c t . I n soi!ie complex p r o j c c t s l i k e

is
A j 61c,kutd St,ecl Complex, ii~~inagement '1 critics'. s u c c e s s L a c t o r whLch

oi~l:l~tt o ! ) e g l v e u p r l m ~ r yc ~ o n s i d c r at i 0 1 1 I n tlic? f i ~ ~ s l b i l l t2 1y1 ~ 1Lys L:, ,


Review of Literature on Pig Production

i. Experimentation and Breeds:

Literature on pig production in Nigeria is still scanty. Most of the

studies on pig production as reported in books and journals are works

done in America and Europe, especially with regards to marketing and

production. Thus we have to adopt their methods, irrespective of the

perculiarities of the environment.

As far back in time as 18th Century, meaningful experimentation on

pig production h ~ started


s in the western nations of Europe and America.

The Yorkshire (large white), the world's most popular breed, originated

in Britain at the time. Both Japan and the Soviet Uniun too were in the

late 20th Century trying to breed leaner hogs with the help of iru~~ortant

breeds (The New Encyclopadia Britanica, P. 437).

However, scientific breeding was concentrated in Europe and the

United States of America. Theremarkable breakthrough in the United

States in the experiment with Maize in which two inbred strains were

countercrossedto give an improved yield of 20 percent, started more concer;

efforts towards breeds of pigs. The experiment was copied with pigs by

the University of Minnesota and else>;here by 1937. They crossnatched

the inbred. lines Tamwarth and Landrace to produce minnesota and China

No. 2 line (Canadian Yorkshire $Poland China) and these breeds have

been cross-bred commercially thereafter. Since then,

similar workshave been undertaken in other places in United Scates and

the results were the maryland, montana, Belt:-villeand Palouse breeds. In

Canada too, the Lacombe is the product of a similar result (Encycl.-.pr:dia

Britannica, vol 17, p. 1070).


S r a n t y a s t h e l i t e r a t u r e on N l g e r i ~ nP i g p r o d u c t l o n may t e , ~ h ~ ~ t
w
d o e s n o t however mean1 t h a t t h e c o u n t r y i s c o m p l e t e l y b e r e f t o f any

ii1(1,1ii L u \ : ~ u I c I 1 arts i n t l i ; i ~rel:,lrd. 'I'llc E ' l r n t Is t 1 1 ; ~ tLI:I. e l l orL: of N i f : r ! - I


r h n p i g p r o d u c e r s a r e l a r g e l y e m p i r i c a l arid n o t f o m d e ( l on modern s c i e n -
I

t- i i L c l o g i c and c x p e r i m c n t a t i o n l i k e t h o s e i n Eurolw a d Unitcd SL:~tt?:i.

iluwevcr, c r l o r t s by N i g c r l a n P r o d u c e r s have y i e l d e d a fcw I 1 1 t l i~ : c~~i ri t r s

. h e e d s of pigs. The predominant b r e e d s h i e t h o s e t h a t e v o l v e d by a d o p t i o n

t o t r o p i c a l e n v i r o n m e n t o r by c r o s s - m a t i n g the l o c a l v a r i e t i e s with

improved e x o t i c b r e e d s . C o n s i d e r a b l e improvements h a v e no d o u b t b e e n made

by g r a d l n g u p , t o s u c h a n e x t e n t t h a t p e r h a r p s t h e n a t i v e p i g s 'lie no

_ o n g e r t y p i c d i n d i g e n i o u s p i g s o f many y c a r s ago. D . Kroesk.? ( I ,173, p . 1 5 )

p o i n t e d o u t t h a t u p g r a d i n g p i g s w i t h h i g h l y p r o d u c t Lve e x o t i c : hrc-ecis r e . + u l t s

i n h e a v i e r weamers and f a s t e r f a t t e n i n g s t o c k i n comparison w i t h t h e l r

native pdrents.

T h e l o c a l b r e e d s however e n j o y p r e f e r e n c e i n roany t r o p i c a l . c o u n t r i e s

b c c a u s c t h e y a r c c h e a p e r t h a n t h e e x o t i c b r e e d s and a r e more ~ V , I IL ; i L l e

t o the l o c a l farmers. They u s u a l l y have s m a l l e r l i t t e r and eve:, body

s i z e v h l c h concluiee mo-rc t o ~ ~ 1 1 3 1s c
1 ale e x t c n s i v c ? t y p e of pi.g rc;~r:lng

t h a t a r e p r e p o n d e r a n t i n A f r i c a a n d most t h i r d w o r l d c o u n t r i e s . In

a d d i t i o n , t h e y a r e more a d a p t i . v e t o t h e l o c a l c.or,dit:ions anil more r e s i s -

t a n t t o t h e t r o p i c a l d i s e a s e s 2nd c l i m a t e

C. h v e n d r a and M.F. F u l l e r (1979, p . 7 ) l i s t e d some c f thc: i n d i g c -

nous b r e e d s which c r e Iound i n t h e t r " p i c s a s , nmo;~g o t h e r s : A\h.int:i

(Ghana) . Hairosi (Camerou-) . l b c e r i ~(Co-.go), J a I a j s = l (l'hilipincls),


k~.wai ( C h i n a ) , Cuino and Cardo C o s c a t e ( M a l a y s i a ) Piau (Ijrdzil) ,
l h l i i w s e ( i ~ l d o n e s i n )and Kwai ( T h a i l a n d ) .
The e x o t i c b r e e d s t h a t enjoy p o p u l a r i t y and h i g h r a t e of adoptic
i n the t r o p i c s include: Large w h i t e ( Y o r k s h i r e ) , B e r k s h i r e , l a r g e
b l a c k , Durcc J e r s e y s , Landrace, Hampshire and Poland China. I n Nigel
hokever, l a r g e w h i t e and l a n d r a c e a r e t h e most p o p u l a r .

ii. Production and Marketing Problems:

The s o c i a l image c a r r i e d by p i g s i s a t t h e r o o t s of some of t h e

p e r c u l i a r problems a s s o c i a t e d w i t h p i g p r o d u c t i o n and marketing i n

many p a r t s of t h e world. The s a c r e d n e s s and t h e r e l i g i o u s c o n n o t a t i c

a s c r i b e d t o p i g s i n many c u l t u r e s of t h e world make i t a taboo t c

a d h e r e n t s of c e r t a i n r e l i g i o n s . For i n s t a n c e , i n New Guinea and Japz

r i t u a l c l e a n s i n g was n e c e s s a r y f o r t h o s e who come i n c o n t a c t w i t h pig

and pork i s f o r b i d d e n t o Jews and moslems. They have come symbolise

d e g r a d a t i o n i n c h r i s t i a n p a r a b l e s and words d e r i v e d from them have cc

;o be u n i v e r s a l words of abuse.

P i u s Nweke (1986, p. 45) s a i d t h a t pork was p o p u l a r among Niger:

r u r a l d w e l l e r s because i t provided them w i t h cheap s o u r c e of a n i r n ~ l

p r o t e i n , p o i n t i n g o u t t h a t w h i l e t h e demand f o r q e a t p r o d u c t s l i k e

b e e f , mutton, chicken e t c i n c r e a s e d d u r i n g t h e o i l boom e r a i n t h e

c o u n t r y , t h a t of p i g showed no s i g n i f i c a n t changes. T h i s he a t t r i -

buted t o t h e p e r c e p t i o n h e l d by people about pork.

This may be r e s p o n s i b l e f o r t h e low number of p i g s i n t h e coun

Less t h a n t e n p e r c e n t of t h e p r o d u c t i o n i s u n d e r t a k e n i n commercial

farms. And even t h e s u b s i s t e n c e r e a r e r s of t h e a n i m a l i n t h e r u r a l

a r e a s a r e few. The s i t u a t i o n i s a f a r c r y from what o b t a i n s i n scr

o t h e r l e s s developed c o u n t r i e s of South E a s t Asia and South Ameri::.

where many poor f a m i l i e s i n r u r a l a r e a s r e a r one o r two p i g s a t t h

back y a r d a s means of s a v i n g f o r t h e r a i n y day (H.B. Davidson, 195

P. 8 ) .
The p r e d i c a m e n t of t h e N i g e r i a n p i g g e r y i n d u s t r y was made more

m a n i f e s t by a s t u d y on t h e p r o d u c t i o n s y s t e m s and t y p e s of p r o d u c e r s

o f swine i n S o u t h e r n Z a r i a . The s t u d y found t h a t w h i l e 98% o f t h e

1)l.g; were r a i s e d on s u ~ a l lf a m i l y f a r m s , tlic r c ~ n a i n h l ; two p c r c e n t wer

i n s t i t u t i o n a l o r large production u n i t s . This r e f l e c t s t h e patt-ern o

pii; p r o d u c t i o n i n most p a r t s of t h e c o u n t r y w i t h e x c e p t i o n of Hendel,

Kw.xa, Imo, Oyo, Anambra, Enugu and C r o s s R i v e r where u;,, t o 8Z were

r e a r e d i n commercial f a r m s (Zeb Taiwo, 1995, p. 1 0 ) .

What i s o b v i o u s from t h e above i s t h a t p i g p r o d u c t i o n i n N i g e r i a

i:; s t i l l low and c h a t t h e p r o d u c t i o n p r o c e s s i s a r c h a i c and i n a p p r u -

p r i a t c f o r modern p i g g e r y e n t e r p r i s e s .

Tllis s t u d y t l ~ c r e f o r ca t t e m p t s t o i n v e s t i g a t e f c a s i b i l . i t y a ~ ~ d

.)respects o f e s t a b l i s h i n g a p i g p r o d u c t i o n f a r m i n Enug-Ezi.ke, wic'h

a view t o f i n d i n g sol.utions t o t h e i d e n t i E i c l l problems of under-

p r o d u c t i o n and p o o r p r o d u c t i o n s y s t e m s .
CHAPTER THREE

RESEARCH
-- METHODOLOGY

.-S o u r ~ ?of Data:

The s u b j e c t of t h i s r e s e a r c h i s t o i n v e s t i g a t e t h e f e a s i -

bi1ir:y of e s t a b l i s h i n g a modern piggery farm i n Egugu-Ezike.

The s t u d y tht.:r~?fou?involvesan e x t e n s i v e i n v e s t i g a t i o n of t h e

market and t h e p a t t e r n of consumption of porks i n t h e a r e a .

I t a l s o i n v o l v e s proper knowledge of t h e modern methdd of p i g

p r o d u c t i o n a v a i l a b l e i n t h e country. T h e r e f o r e , d a t a have been

o b t a i n e d from b o t h primary and secondary s o u r c e s .

The d a t a from t h e primary s o u r c e s a r e o b t a i n e i by adminis-

t r z . t i o n of q u e s t i o n a i r e s . Questionaires a r e designed f o r

consumers and s e l l e r s o f pork, w h i l e i n t e r v i e w s a r e adopted ;is

2 ,neans t o e x t r a c t i n f o r m a t i o n from producers and d e a l e r s -on p i g s ,

s c a f f of M i n i s t r y of A g r i c u l t u r c Enugu, s t a f f of F e d e r a l Live-

st..ock C e n t r e , Okpuje, e t c and d e a l e r s on b y i l d i n g m a t e r i a l s and

v i x t i n a x y d r u g s i n Enugu s t a t e , t o a s c e r t a i n r e l e v a n t p r i c e s .

Secondary d a t a a r e sourced from works i n t e x t s : books,

j o u r n a l s , newspapers, magazines and unpublished m a t e r i a l s .

Methods of I n v e s t i g a t i o i - L

To g r a p p l e w i t h t h i s problem, we have t o i n v e s t i g a t e t h e

market f o r t h e p r o d u c t . T h i s i s because i t i s one of t'ne key

determinants of t h e f e a s i b i l i t y of a p r o j e c t . The n a r k e t w i l l

be surveyed u s i n g a sampling method. The a r e a s t o be sampled

have been s e l e c t e d on t h e b a s i s of t h e f o u r autononous communi-

t i p s in t h e town w h i 1 ~t h e 11n-ft c tn h o c ~ m n l o r lh g ~ r r , haan ,-hr.,-n.-.


usi.1~random sapling. The questionnaires are randomly adminiscered to

people who live in the communities: Umnuozzi, Umuitodo, Essodo, and Ezeoc

The researcher also intends to probe into the production and :...

management of pigs, the cost factors of the civil engineering and other

facilities needed in the farm etc through personal interviews and

sustained participation approach.

The sustained participation~approachis a method of detailed

study of a social phenomenon, so that all the structural mechanisms and

aspects of the phenomenon could be researched. This method has been

applied to the study of the operations of the Federal Livestock Farm

(Pig Unit), Olcpuje in Nsukka T,ocal Government Area and the Intergrated

Feed Breeders farm, Isi Uja also in Nsukka Local Government Area. These

are pig farms managed in modern ways, and have helped the researcher see

in practice some of the techniques of pig production.

Determination of Sample Size:


In this study, the researcher defines the consumers (universe)

as people who individually have the potency of earning money and who

can affect and or effect purchase decisions on the foods they eat.

In designing of survey, one must confront the problem of the size

of the sample to be selected from the population. The implications

of the sample size decisions are obvious: if the sample is too large,

time and efforts are wasted; if the sample is toc small, inadequate

info::mation is obtained. That is why various statistical methods have

been deviced to arrive at appropriate sample sizes in researches.

When probability sampling is used to determine the sample size

from the uiliverse (consumers) ;


we have standard formulas for deriving the desired size. Clifcon

and Fyffe (1977, p. 12) reco~nmendthat the appropriate formula for

determining the size of sample, using random sampling is:

Where n = Sample size


p = Percentage of consumers who will buy the prodxct
z = The standard error units that corresponds to the required
reliability (using a normal distribution'table).

In order to resolve the difficulty inherent in this formula which

is determining the percentage of the universe which will purchase the

product, thz researcher has conducted a pilot study of the universe.

The pilot study has been conducted by administering three (%) question-

naires to pork consumers living in each of the four communities,

selected on random basis. All the questionnaires were returned.

However one in Umuitodo, two in Essodo, two in Umuozzi and one in

Ezeodo who were sampled were not williqg to buy. On the whole, we

h;d s i x out of twelve dissenting to purchase. From this study, the

percentage of consumers who would buy the product was put at 50%.

If therefore we assume that 95% reliability is sufficient in

the study and that the sample size is small in comparison with the

universe and that the precision - + 10


d of the percentage will be -

percent, using a normal probability table, where the number of

standard error unit Z that corresponds to the required reliability of

55% found to be 1.9'6, we can then s~bstitutefigurcs in the formula

thus :
n = 50 (50) (1 .96)2 = 9604 = 96
1o2 100
This implies that if a random sample of 96 consumers are conducted,

an estimate with a 95% probability that he sample percentage within

+- 10 percent would be obtained.

The researcher however intends to sample the entire population

of pork sellers in the town, because the initial investigation has

shown that there are just a few of them, who could conveniently b e

reached. The regular pork sellers number 16 on the whole: eight in

Umuozzi, four in Umuitodo, three in Essodo and one :-n Ezeodo

communities.
C.HAPTER FOUR

DATA PRESENTATION, INTERPRETATION AND ANALYSIS:

The primary data on the market and marketing situation

of pigs was collected using questionnaires - (see appendix).

T h r s data is separated and organised into meaningful order for

better understanding and analysis. On the whole, 1 1 2 question-

aires were distributed to pork sellers dnd consumers. Out of

the number 96 returned their own, in a response pattern of 80

consumers and 16 pork sellers.

This represents 86% re~rievalrate on the whole, and 83% and

100% retrieval rates from the consumers and pork sellers respec-

tively.

The researcher found the response rate significant enough

to yield a reliable result and decided to carry on with the s t u d y .

Consumption of Pork

4.1:
Table-
-

i
~:ommunity No. of Respondents Percent

Umuozzi 37 46.25

Umuitodo 18 22.50

l!!ssorlc8 18-75

12.50
-. -
The table indicateathata significant proportion of the p x k

consumers ( 4 6 . 2 5 % ) live in Umuozzi conununity, while Umuitodo, Essodo

and Ezeodo are inhabited by 22.5, 18.75 and 12.5% of pork consuming

respondents respectively.

Characteristics of Consumers

Table 4.2

Sex No. of respondents Percent


I
Male
Female
1
1
52
28
65
35

The number of male that responded to questionnaire outnumbered

females significantly at the proportion of 65:35.

Table 4.3

Religion No of consumers Percent

Christian 45 51.25
Muslim 3 03.75

Traditional 35 43.75
Others 1 01.25

80 100

Table 4.4

Age . No of Consumers Percent


30 29
31 - 40 21
41 - 50 17
51 and above 13
Table
-
.- 4.5

-.

-. Annual/ income (W) No of consumers -Percent


-
Lzss than 15,000 15 18.75
16,000 - 25,000 46 57.50
26,000 - 35,000 12 15.00
36,000 - 45,000 5 06.25
Above 45,000 (32.50
--
I
The analysis of the personal data of the respondents shows that

65% of pork consumers are males and 35% are females. It also indicai

that the majority of pork consumers were of the ages of 30 or less.

rhe trend shows that the meat is gaining in popularity, the table

4.4 (ages) indicates a progressive growth in conswnption of pork


towards che younger ages. ofthe 80 consumer:; sampled, 29 were 30

years or less; 21 were 30 years or less; 17 were aged between

41 - 50 years, while 13 were 51 and above,

On the religious inclination of respondents, the percentage

distribution as shown in table 3 were as follows; Christians 51.25,

Muslims 3.75, traditional 35% and others one percent. This findin?

indicates a strong presence of both Christian and tr~+ditionalrelig

in the area. This means that those who see eating of pork as tabu

on the basis 02 religion is negligible as it is not restrained by

christianity, while those who practice traditional religion are

known to patronise pork heavily especially during their festiviti,


'The iilcorne c l i s t r i h u t l o ~ ip a t t e r n of t h e r e s p o n d e n t s ( t a b l c , . 5 )

h l ~ o w s L h t a b o u t 46X e a r n between W16,000 - 25,000 p e r ilnnum.

18.751 e a r n l e s s t h a n W15,OCO; i l v c p c r c c n t earn between W36,000 -


W45,000, w h i l e o n l y two p e r c e n t e a r n above W45,000. The i n f e r e n c e

from t h e t a b l e i s t h a t most of t h e p o p u l a t i o n i s w i t h i n t h e income

r a n g e of W16,000 - H25,OOO, and t h a t p a t r o n a g e d e c l i n e s p r o g r e s s i v e l y

a s income i n c r e a s e d . This r e f l e c t s t h e widely h e l d b e l i e f t h a t pork

i:; a meat f o r t h e p o o r .

S o u r c e s of P o r k Consumed

Do you e a t p o r k meat?

Response No of Consumers Percent


Yes 61 76.25
No 19 23.75
-
80 100
-.- ---. -
I f y e s , why?

T a b l e 4.7

----- No of Consunrers Percent -


Availability 20 32.78
Palatability 18 29.50
Variety 12 19.67
Uniqueness 11 18.03
-
61 1 00
--.. -
I f no, why?

Table 4.8
----

---
No of Consumers Percent

Religion 5 26.32
I i i r t y Habbits 6 31.57
Fatness 4 21 .05
Diseases 4 21 .05
-
19 100

How o f t e n do you e a t pork?

Table 4.9

- lo of Consumers - Percent
Everyday 12 15 .OO
Once a s e e k 15 18.75
Regularly 18 22.50
Once a month 10 12.50
Occasionally 25 31.25

100
-
Where do you buy t h e pork from?

Table 4.10

it--
- ------
Native market
Meat shops
Producers
No of Consumers
65
Percent
81.25
1.25
17.50

100
Most consumers i n t e r v i e w e d (76.25%) p a t r o n i s e p o r k , w h i l e 22%

did not. Those tha: e a t p o r k gave a v a i l a b i l i t y , p a l a t a b i l i t y ,

variety and uniqueness a s t h e i r r e a s o n s f o r a c c e p t i n g p o r k , b c t

w i t h a v a i l a b i l i t y t o p p i n g t h e l i s t w i t h 32.78% ( s e e t a b l e 7 ) .

Those who d i d n o t e a t pork gave v a r i o u s r e a s o n s a s s o c i a t d

r e l i g i o n , d i r t y h a b b i t s , f a t c o n t e n t s and d i s e a s e s . Again, 31.25%

of thasrb:;.h,-,e ~ : t p o r kdo s o o c c a s i o n a l l y , 15% everyday; 18.75X once a

week, 22.5% r e g u l a r l y and 12.5% once a month ( t a b l e 9 ) .

A m a j o r i t y of t h e consumers (81.25%) buy p o r k from t h e n a t i v e

m a r k e t , 17.5;2 from p r o d u c e r s , w h i l e a m a r g i n a l 1.25% buy from meat

shops. The t r e n d i s e x p l a i n a b l e by t h e v i r t u a l absence of nodern

meat shops i n t h e town.

P r i c e s of Pork i n R e l a t i o n t o Other Meat Types

A t what p r i c e p e r kilogramme do you buy meat?

Table 4.11

- WKg -- No of Consumers Percent


loo - 110 15 18.75
111 - 120 7 08.75
121 - 130 9 11.25
131 - 140 15 18.75
N o response 34 42-50

How do you view pork i n r e l a t i o n t o o t h e r meat t y p e s ?


-
T a b l e 4.12

.
- Less
- expensive --

i- More expensive
- 1
06.25
-

I f o f f e r e d c h o i c e , which meat would you p r e f e r ?

Table 4.13

No of Consumers --- Percent


Pork 15 18.75
Beef 16 20.00
Coat 15 18.75
Chicken 25 31.25
Caws 9 11.25
I
' Others 5 06.25
- -
- 80 100

Ln t a b l e 4.11, w e c a n s e e t h a t m a j o r i t y of t h e consumers 42.50%

d i d not i n d i c a t e t h e price:, o1 pork p c r kilograrame, because most of

them bought t h e i r meat from t h e open market where meat i s n o t s o l d

by weight. P r i c e s given by r e s p o n d e n t s were a s h i g h a:; d l 0 0 t o

W140 p e r kilogramme, Sor t h o s e who a d m i t t e d t o buying by weight.

When t h e consumers were asked t o make a c h o i c e of meat, c h i c k e

was ahead of t h e pack w i t h 31.25% of r e s p o n d e n t s shswing prefcrenc.2

for it ( t a b l e 4.13). O t h e r s followed i n c h i s o r d e r : beef 20%,

g o a t ( l 8 . 7 5 ) , pork ( l 8 . 7 5 % ) , games (11.25%) and o t h e r s (6.252).


NARKETING OF PIGS (PORK)

Characteristics of the Sellers


-
Table 4.14

Name of Community Percent


No of Consumers - -
Umuozzi 8 50
Essodo 4 25
Umuitodo 3 18.8
Ezeodo 1 06.2
,-.---

Table 4.15

Male
Female 12.5

Table 4.16

Marital Status No oE Consumers Percent


Nnrried 12
Single 4 25

No of Sellers
3Oyrs or less 1 t .3 1
3lyrs - 40yrs
41yss - 50yrs
2
8
i 12.5
50
i
I
i
5lyrs - 60yrs i 3 18.7 (
-- .-
Religion No o f S e l l e r s Percent
Christianity 6 37.5
1:;lamism 0 0
Traditionalism 10 62.5
Others 0 0

16 100

Table 4.19

Do you engage i n o t h e r j o b s ?

Table 4.20

I f yes, specify

No of s e l l e r s Percent
Farming 4 I 40
Wine t a p p i n g 5 50
Trading 1 10
1
1

From t h e r e s p o n s e s g a t h e r e d from t h e s u r v e y , i t h a s been observed

t h a t men dominate t h e b u s i n e s s of pork s e l l i n g i n t h e town. A whopping

87.5% of them were males, w h i l e only 12.5% were femal-e s e l l e r s . Of

t h e s e s e l l - e r s 6 . 3 % of them were l e s s t h a n 3 1 y e a r s , 12.5% were between

31 and 40 y e a r s , 50% of them were between 51 a n d f8O y e a r s , w h i l e


1 Q c-/ - ---- -I---- c,-,
Majority of the sellers were christians, while 35% were practi-

tioners of traditional religion. Apart-from selling pork 62.5 of

them engage in other business, namely wine tapping, farming and

trdding (table 20).

What are the sources of pigs slaughtered by you?

Table 4.21

No of sellerss Persent

Own animals 1 6.3


Bought from producers 5 31.2
Bought from middlemen 10 62.5
Boughc from another state - -
16 100
m

Who are your major customers?

I
I
No of seilers Percent

Households 8 50
Butchers 0 0
Hotels
Middlemen
6
2 1 37.5
12.5

What are the classes of pigs slaughtered?


Table 4.23

No 6f sellers Percent
Porkers 4 25
Boars 1 06.3
S~WS 3 18.7
Combination 8 50
16 100 -.
What are the determination of the selling prices?

Table 4.24

I No of sellers Percent,,
- Quality of meat 4 25
Quantity of meat 10 62.5
Weight of meat 2 10

16 100

How do you preserve CnSbld pork after the day's business'?

Table 4.25

No of sellers Percent
By boiling frying 6 37.5
By freezing 0 0
No left over 10 62.5

What .?roblems are encountered in marketing pork in the rown?


-
Table-4.26

NO of sellers Percent
--
Leck of storage facilities 31.25
18.75
Disease infection 3
Poor image of pork 5

16

By what measures are prices of pigs determined?


Table 4.27
--
No of sellers Percent
By weight 4 25
By vi;ual size 12 75
-
16 100
H i m many pigs do you slaughter i n a month'!

No. of s e l l e r s Percent.
2 12.50
3 18.75
8 50
1 6.25
1 6.25
1 6.25

How much do y ~ pay


u for a pig?

Table 4.29:
--
--
PI No of sellers Percent -
Lcss t h a n 2000
2000 - 3000
5000 - 4000
About 5000
Abov? 5000
--
I
How much do you gain from selling a pork?

- --
-W.- No. of sellers
-.--
Percent. -
About ,500 8 50.00
I,l)ou t 1000 '15 . O O
:\bout 2000 12.50
About 3000 1.2.50
About 4000 -
-S o u r c e s o f P i g S l a u g h t e r e d .

M a j o r i t y of t h e p o r k s e l l e r s l>oui;hL pigs Lroar Ll~c111Lddlc111cr1


oLlrers g o t from producers ;tnd t h o s e tllcy r e a r e d or1 t l ~ c l rowrr.
()u.-tntLtstivcLy, 6Z.5Z 01 t h e s e l l e r s p r o c u r r e d p t g s Irorn tile middle-
men, 31.2% from p r o d u c e r s , w h i l e 6.2;; i n d i c a t e d own p i g s a s t h e i r
source.
752 df t h e s e l l e r s v a l u e t h e p i g s purchclsed by v i s u a l a s s e s s m e n .
w h i l e 25X d e t e r m i n e t h e v a l u e by p e r c e i v e d w z i g h t a s a s c e r t a i n e d by
hand.
From t h e f i n d i n g , a l l s e l l e r s s l a u g h t e r e d between 3 - 14 p i g s
e v e r y week.

~ I S S C Sof
C ~-
- P i g s S l a u g h t e r e d and T h c i r R--
espective Prices:
I i e s u l t s show t h a t 37.5% of s e l l e r s bought p l g s v a l u e d betwecn
W2000 - 3000, 35X b o u g l l ~ f o r betwecn W3000 - 4000, lU.7SZ bought £01

a b o u t W5000, w h i l e o n l y 6.25% bought f o r above W5000.


O f t h e 16 p i g s e l l e r s p o l l e d , 501 bought any c o m b i n a t i o n s -
p o r k e r s , b o a r s o r sows, 25% c o n c e n t r a t e d on p o r k e r s , 18.72 p a t r o n i s r
sows, w h i l e 6.3% g o e s f o r b o a r s .

P r e s e r v a t i o n oL u n s o l d P o r k and Problems E n c o u n t e r e d by t h e S e l i e r s

The r e s u l t of t h e s u r v e y shows t h a t 62.5% o f t h e p o r k s e l l e r s


i n Ilnugu 1Czllw olwilys f i n i s h t h c i r s t o c k s on clay 01 s:Laughtcr i111ti

t h e r e f o r e e x p e r i e n c e no l e f t o v e r , w h i l e 37.5X t h a t a d m i t t e d t o t h e
problem of l e f t o v e r s a i d t h e y p r e s e r v e i t by b o i l i n g o r f r y i n g o r
both. None of then1 made u s e of f r e e z i n g a s t h e i r i e s p o n s e s show.
The ~ > r o b l e m sof t h e p o r k s e l l e r s v a r i e d frora I.ack of s t o r a g e
f a c i l i t i e s , c a p i t a l , image of p o r k , and t h e b e l i e f among many t h a t
i t i s u s u a l l y i n f e c t e d by d i s e a s e s .
MARKET :\NU .PLANT CAPACITY

Demand and Market S -


t u d ~

P o r k i s consumed around t h e w o r l d , b u t b e c a u s e i t i s r e g a r d e d

a s o t a b o o by some r G l i g i o u s g r o u p s s u i n a s J u d a i s m and Islauiism,

i t i:; v e r y u n p o p u l a r among t h e p c 6 p l c o f Middle East iind some-locill

p o p u l a t i o n s i n A f r i c a and A s i a . H o w e v e r i . ~Germany, Denmark, P o l a n d

and A u s t r i a i t is a v e r y c h e r i s h e d d e l i c a c y .

Back home i n N i g e r i a , 2 i e w y e a r s ago po?k w a s ' h a r d l y .~cceptalile

i n t h e c u i s i n e s of t h e p e o p l e . The r e p u t a t i o n of p o r k a s b e i n g d i r t y ,

d i s e a s e d and b a s e r e p e l l e d many N i g e r i a n s from c h , e r i s h i n g i t . At t h a t

t i m e , i t s consumption was l i m i t e d and o r p e r i o d i c a l , o f t e n r e s t r i c t e d

LO t h e t i m e 01 sonic t r a d i t i o n a l f e s t i v a l s .

But t o d a y , t h e u s e of p o r k i s E a s t l y g a i n i n g in a c c e p t a n c e . Morc

p e o p l e a r e coming t o terlns w i t h i t as a d e c e n t meat t h a t s h o u l d bt.

a c c o r d e d s i m i l a r r e g a r d s and r e c o g n i t i o n a s o t h e r meat t y p e s , s u c h

as c h i c k e n , b e e f and mutton. T h i s i s e v i d e n t i n s u p e r m a r k e t s and

c h a i n s t o r e s i n u r b a n c e n t r e s i n t h e c o u n t r y w t e r e p o r k e n j o y prominer

displays. Secondly, commercial p i g g e r y e n t e r p r i s e s a r e now s p r i n g i n g

a s thc? demand f o r p o r k h a s c o n t i n u e d t o s o a r .

Demand e s t i m a t e f o r p o r k i n Enugu-Ezike c o u l d b e done t h r o u k h

t h e c o ~ l ~ u r ! ~ p tri a~tiens i n t h e a r e a whlch c o u l d b e esi-irnated through thc

number of p i g s s l a u g h t e r e d . F i g u r e s o b t a i n e d frorll r e g u l a r p o r k s e l l e l

i n the iirL!il p u t t h e a v e r a g e number 01 p i g s s l a u g h t e r e d i n t h e Lown a t

150 p e r month. The p r i m a r y c o n c e r n of t h e r u r a l b r e e d e r s is t h e

f a t t e n i n g of t h e anirnals w i t h o u t c o n s i d e r a t i o n f c r 11sc o r appropriate.

nc?ss. When one c o n s i d e r s t h i s , i t c o u l d b e e s t i m a t e d that-the-sxies-*


brought to the market have an average weight of 100 kilogrammes.

This estimate will put the demand for pork at 150,000 kilograrnmes

per month (1,800000'kilogrammes per month).

Future demand

The demand for pork is entrapolated to be on the increase side

in the future. Nigeria which is a highly populous country with an

annual population growth rate of 2.5% is already experiencing food

shortage problems. It is therefore expected that the country will

seek succour in the prolificacy, quick generation interval acd high

food conversion rate, of pigs by higher patronage of pork, more so

now that greater intensive management systems have put paid to

misapprehensions about the nature of pigs. Pork consumption no doubt

will continue tc increase. It is now a common practice for pork to

be served in our restaurants .i-n. form of exotic'menus~commonin Western

countries, such as bacon, ham, etc.


A conservative estimate will put the rate of increase percent to
10 per annum in the next few years, this general scenario is expected

to i.mpact at a similar quantum on pork demand in Enugu-E3i.e. The

projection for the-demand in the town is shown in the table below:

- -
Table 5.1 Demand Projection fox Pork (1995 -2000;

- 7
---
1
Year Quantity (kg) Kevenue at current of 120 per kg@mJ
1995 1800000 216.0
!% -.--..--
1980000 ,.,-
237.6
1997 2178000 -261.4
1988 2396000 287.5
1999 2636000 316.3
2000 2900000 348.0
The p r o j e c t i o n shows t h a t t h e dcn~aud f o r p o r k i n t h e a r e a w i l l

b c a b o u t t h r e e t i m e s t h e q u a n t i t y demanded i n 1995 by t h e y e a r 2000,

and t h e market p o t e n t i a l s f o r p o r k i n t h e town i s shown t o b e abouc

H348 m i l l i o n &t t h a t y e a r .

Market Study

Piggery e n t e r p r i s e s u s u a l l y adopt d i f f e r e n t approaches i n t h e

p r o d u c t i o n and m a r k e t i n g of t h e i r p r ~ d u c t s . Some of them s p e c i i l i g e

i n tKe p 2 o d u c t i o n ahd s a l e of f i n e b r e d a n i m a l s , e s p e c i a l l y f o r

foundation stocking. I n t h i s c a s e , a t t e n t i o n i s given t o developing

s t r a i n s with desired characteristLcs. Some of t h e c h a r a c t e r i s t i c s

d e s i r e d i n sows i n c l u d e q u a l i t y , l e n g t h of body, f e m i n i n i t y , and a

w e l l - d e v e l o ~ e d u d d e r , h a v i n g two rows of t e a t s w i t h a t l e a s t s i x t e a t :

ill cilch row ; ~ n dcapablc of s u c k . L h g l i ~ r g el i t ~ e r sof p I . ~ s . The ; ) o a r

ill t h e o t h e r haqd i s e x p e c t e d t o show q u a l i t y , n ~ a s c u l l n i t y , good

d i s p o s i t i o n , and a b i l i t y t o s i r e s t r o n g r i g o r w ~ sp i g s . So t h e s e

e n t r e p r e n e u r s s e e t h e i r m i s s i o n i n b u s i n e s s a s t h e p r o d u c t i o n of p i g s

t h a t m a n i f e s t t h e s e q u a l i t i e s and which t h e y s e l l t o o t h e r f a r m e r s

a s i n - p i g s s g i l t s , b o a r s , sows o r f e e d e r s .

The second t y p e of t h e p i g s p r o d u c t i o n e n t . , ~ - r p r i s e sa r e i n t e r e s t e c

i n t h e b r e e d i n g of q u a l i t y p o r k e r s t o be s l a u g h t e r e d and s o l d as pork.

mcilt. Although some e n t e r p r i s e s may o p e r a t e a :ombination of t h e s e

a p p r o a c h e s , a g r e a t d e a l of them s p e c i n l i s e i n one.

Thc m i s s i o n oL t h i s b u s i n e s s i s t o p r o v i d c meat t o t h e p e o p l e

.lt p r o f i t , and e f f o r t s s h a l l be c o n c e n t r a t e d i n t h e p r o d u c t i o n and

m a r k e t i n g of p o r k e r s . These a n i m a l s a r e grown t o tl:u a g e and s i z e

01' p o r k e r s , ,lnd a r c s o l d as p c r t h e i r w e i g h t t o tlle r e t a i l e r l o r


s l l u g h t e r o r i n t h e a l t e r n a t i v e , t h e a n i m a l s may be s l a u g h t e r e d m d

packaged u i t h i n t h e farm and s o l d t o r e t a i l e r s ( ~ ~ s u a l meat


ly sl~oy,s

o r :;uperni;~rkcts). llhis businesv w i l l a l s o explore c s t a b l i s h l n g s e l l

poZ3ts where I t may c a r r y o u t d i r e c t s a l e s t o t h e f i n a l consumers.

Producer
I
I
Butcher
(RZitailer) .
1 > Consumer < I

F i g 1: M a r k e t i n g Channels f o r pork.

The c u r r e n t w h o l e s a l e p r i c e s f o r q u a l i t a t i v e p o r k meat i n t h e

c o u n t r y i s p u t a t a r a n g e of W120 - 150 p e r k i l o ~ r a m r n e . I n some mea

s h o p s and s u p e r m a r k e t s , t h e p r i c e d i f f e r e n t i a l s r a n g e from 15% t o

30X p e r kilogramme h i g h e r t h a n t h e w h o l e s a l e p r i c e .

Although i t has b e e n c s t a b l i s h c d 111 o u r s u r v e y t h a t t h e r e a r e

some s i g n i f i c a n t m i s g i v i n g s a b o u t p o r k meat, t h e e x i s t e n c e o f a marl

prc: 1 ou11t1 nou ugh t o s u s t a i n b i g c n t e r p r i s c s i n t h e i n d u s t r y h a s bccr~

e s t ~ t b l i s h c d . And one way t o Ilarnc~!;:;Llle p o t e n t i a l s t o a d v a n t a g e i s

t h r o u g h l o w - p r i c i n g t e c h n i q u e , e s p e c i a l l y i n t h e p r h l r y a r e a of

Afte:: c a x e f u l c o n s i d e r a t i o n of t h e c ~ s of
t p r o d u c t i o n , t h e Grr

of o t h e r meat t y p e s which a s o f now e n j o y more p : p u l a r i t y than por

and t h e r o l e Lhat t h e p r o d u c t i o n of t h i s itern s h o u l d p l a y i n Enugu

E z i k e i n p a r t i c u l a r , a p r i c e of W120 p e r kilogramme i s recommendec

w i t l i a n e x p e c t e d mat b margin
I I ~ OF a t l e a s t 15X. T h i s w i l l rnske 1

p r i c e s v e r y t t t r a c t i v e i n r e l a t i o n t o o t h c c meat t y p c ~l i k e b e e f :

m u t t o n , c h i c k e n e t c whose p r i c e s r a n g e o v e r W180/Kg.
Although t h e r e i s o n l y s c a n t y s t a t i s t i c s i n a d e q u a t e t o e s t a b l i s h

th(! i n d u s t r y demand f o r t h e p r o d u c t , p o i n t e r s from t h e s u r v e y on p o r k

co~isuincrs conducted i n Enugu-Ezike i n d i c a t e t h a t t h e r e i s h i g h p r e s e n t

and p o t e n t i a l demand f o r t h e p r o d u c t . Even t h o s e whose a v e r s i o n - L o r

p u r k s i s h i n g e d on s u c h r e a s o n s z s d i r t i n e s s and d i s e a s e i n f e c t i o n

.lrc e x p e c t e d t o be p o s i t i v e . ~ b o u cp o r k when p r o p e r l y informed a b o u t

t h e modern methods i n v o l v e d i n t h e i n t e n s i v e p i g g e r y e n t e r p r i s e s and

how t h e s e n e t h o d s e x c u l p a t e t h e b l e m i s h e s t h a t r e p e l them. T h i s w i l l

be b e t t e r a c h i e v e d i f a p u r p o s e f u l and i n t e n s i v e m a r k e t i n g e f f o r t i s

c a r r i e d o u t on t h e consumers. It i s p r o j e c t e d b a s e d on t h e f i n d i n g s

from t h e s u r v e y t h a t t h e company s h a l l b e a b l e t o s e l l a b o u t 600

p o r k e r s p e r annum.

l u o r d e r t o e f f e c t i v e l y s e l l t h e p r o d u c t , j g g r e s s i v e and '

a r t a c u l a t e d m a r k e t i n g s t r a t e g i e s have t o be a d o p t e d t o p l a c e n p o r k a t a

r e a s o n a b l e comparison w i t h o t l i e r common nieat t y p e s t h a t e n j o y p o p u l a r i t ]

i n our society.

The f i r s t and v e r y paramount m a r k e t i n g s t r a t e g y i s t o produce a

qua1 i t i 1 t i v c p r o d u c t . T h c g e n e r a l a s s u m p t i o n I n o u r s a c i c t y i s rh'lt

p o r k i s a n i n f e r i o r meat which do n o t e n j o y t h e p a t r o n a g e o f d . i c c n t m m e n

e n t e r p r i s e i s e x p e c t e d t o employ modern p r o d u c t i o n t e c h n i q u e s t o

produce p o r k t h a c w i l l p r o v e wrong s u c h m i s c o n c e p t i o n s . The m o ~ t

d e s i r a b l e p o r k i:; g r e y i s h i n c o l o u r , f i r m and f i n e g r a i n e d , w e l l

marbLed and c o v e r e d w i t h a n o u t l a y e r of f i r m w h i t e t i s s u e ( t h e New

Encyclopeadia). I n addition t o a high q u a l i t y pork, t h e production

p r o c e s s and meat packaging s h o u l d bc I n t h e most s a n i t a r y of c o n d i t i o n


LO ,:I lily L I W I c , ~ r uo C t h o s c wllo t-l~iulcI L i s a d i r t y u~cat.

It s h a l l a l s o be n e c e s s a r y t o engage i n a s y s t e m a t i c , a g g r e s s i v e

~ C C S O L I ;s~e~l l i n g strategy. dy t h i s means, t h e s a l e s team w i l l c o n t a c t

meat shops, supermarkets and d e p a r t m e n t a l s t o r e s w i t h i n t h e town dnd

o t h e r s n e a r b y , and i f p o s s i b l e e n t e r i n t o supply arrangements w i t h

thcm. The s a l e of t h e product i n such b l u e c h i p market u n i t s w i l l

h e l p enhance i t s r e p u t a t i o n among consurncrs. Moreover, t h e e n t e r p r i s e

s h a l l s e t up meat shops a t some d e s i g n a t e d c e n t r e s i n and around t h e

town where t h e i r s a l e s p e r s o n s w i l l be s t a t i o n e d t o s e l l t h e p r o d u c t

d i r e c t t o con-;umers. The l a t e r a p p r o ~ c hh a s t h e advantage oE e n a b l i n g

t h e s a l e s team t o canvas; t h e i n h e r e n t n e r i t s i n t h e product t o t h e i r

c u s torners.

w i t h a q u a l i t y product and decent s e l l i n g p o i n t s , t h e e n t e r p r i s e

i s expected t o a l s o engage t h e s e r v i c e of l o c a l a d v e r t i s e r s , e s p e c i a l l y

t h o s e who have p u b l i c a d d r e s s system f L i c i l i t i e s and u s them t o i n l o r m

t h e c o n s m e r s on t h e h i g h p o i n t s 01 t h e p r o d u c t . The)' a r e t o c m v a s

t h e decency, h i g h q u a l i t y and n u t r i t i v e Galue of pork produced under

t h e modern p r o d u c t i o n system l i k e t h e p r o j e c t i n c a s e .

I n a d d i t i o n , h a n d b i l l s may be d i s t r i b u t e d w!iere p r o p e r e x p l a n a t i o n

i s m.lde of t h e modern management system of t h e p i g p r o d u c t i o n p r o c e s s

i n t h e f !rm ~ t sa g a i n s t t h e w i l d l y rei1rc.d p i g s thiit abound i n tlle

, ~ r e a ,p o i n t i n g o u t t h e h e a l t h and d c i t a r y advantages i l l h e r e n t i n

t l fmn!s
~ produced pork.

A 1 1 t h e s e no d o u b t , w i l l he enough Ln Lhe f i r s t few y e a r s t o

make t h e product g a i n s i g n i f i c a n t acceptance.


Market P e n e t r a t i o n and A c c e p t a b i l i t y

The p r o j e c t , upon commi.sslon.wi.11 be expected t o p e n e t r a t e an

c a p t u r e about 22X of t h e p r e s e n t niarkce s i z e i n Enugu-Ezike. Lnfa

i f t h e r e i s an i n f i n i t e c a p a c i t y , a v a i l a b l e t o cne p r o j e c t , i t cou

c a p t u r e up t o 80% of t h e market s i z e i n about i t s t h i r d y e a r of

operation. Since t h e p r o j e c t would be t h e p i o n e e r modern p i g farrr

i n t h e town, i t s market s h a r e of 22% w i l l n o t be i n any doubt.

The prime market of t h e pork h a s been i d e n t i f i e d a s Enugu-Ezi

bur t h e e n t e r p r i s e s marketing a c t i v i t i e s s h a l l s t r e t c h t o o t h v r a r

e s p e c i a l l y t h e meat shops i n Erlugu s t a t e . It i s expected t h a t 702

of t h e product would be s o l d i n Enugu-Ezike, 30% i n Nsukka, Obollc

O r i e Orba and 10% i n Enugu and i t s e n v i r o n s . The p r o j e c t i s expec

t o c o n c e n t r a t e on t h e s e t a r g e t e d markets.

Sales Forecast

The s a l e s f o r e c a s t f o r t h i s p r o j e c t w i l l be based on t h e prcr

y e a r l y production and t l ~ es u g g e s t e d market p r i c t . I t i s expectec:

ex-farm p r i c e f o r t h e pork w i l l be H120/kg. The p o t e n t i a l f o r t h

p r o j e c t i s a s shown i n t a b l e 5.2

Table 5.2- S a l e s P r o j e c t i o n f o r t h e P r o j e c--t

--
----?
Year of
- P o r k e r s ( a t 70lcg each)
S a l e s a t W120/kg
.-
of C n p a c i t j
Revenue £row s a l e s t o t h e p r o j e c t a t t h e c u r r e n t p r i c e s h a l l

amount t o 242.7 m i l l i o n i n i t s f i r s t y e a r of o p e r a t i o n . This i s

expected t o i n c r e a s e t o W5.04 m i l l i o n by t h e f i f t h y e a r of o p e r a t i o :

a t f h l l production u t i l i z a t i o n .

P l a n t Capacity

The a n a l y s i s of demand and supply of pork i n t h e town h a s amply

demonstrated t h a t t h e r e e x i s t s a huge p o t e n t i a l f o r b r e e d i n g of pork1

pigs there. C o n s t r a i n t s i n t h e d e s i g n f o r o p t i m a l p l a n t c a p a c i t y arc

t h e s e f o r e mainly t h e a v a i l a b i l i t y of improved s t o c k t o b e used a s

i n i t i a l s t o c k ; funds f o r i n i t i a l c a p i t a l i n v e s t m e n t , and t h e r e q u i r e -

n e n t s of minimal c a p a c i t y t o breed p o r k e r p i g s economically and

c o m p e t i t i v e l y , v i s - a v i s r u r a l producers who p r a c t i c e w i l d and e x t e n s i

r e a r i n g which t a k e s minimal c o s t .

Taking a l l t h e s e i n t o a c c o u n t , we recommend a farm s i z e c a p a c i t y

o:i 600 p o r k e r p i g s p e r annum, which w i l l s e r v e about 22% of t h e t o t a l

p c r k market i n Enugu-Ezike. The major c o n s t r a i n t s S e r e i s t h e s e l e c t :

of pure b r e e d animals a s f o u n d a t i o n s t o c k . To a c q u i r e s t r a i n s t h a t

p o s s e s s t h e r i g h t t r a i t s o f t e n pose problems t o f a r m e r s because what

arc? u s u a l l y a v a i l a b l e i n most farms s r e mixed b r e e d s w i t h no g e n e r a t i c

s t a t i s t i c s t o guide t h e farmer i n p i c k i n g t h e animals f o r t h i s farm.

However, t h e farm i s expected t o c a r e f u l l y p i c k i t s f o u n d a t i o n

sto.:?~ from t h e ~ > i gPs r o g m y , Ckntre a t Okpu'je, i t w i l l s t a r t w i t h

53% c a p a c i t y u t i l i s a t i o n i n t h e f i r s t y e a r , t h e a mwe up t o 802 i n

t h e second y e a r b e f o r e a t t a i n i n g t h e f u l l c a p a c i t y l e v e l i n t h e

t h i r d year.
The b a s i s f o r a n n u a l c a p a c i t y u t i l i S A t i 6 f i - i s :

i. t h a t t h e f a r r o w i n g of sows averaged a t twice a y e a r and e i g h t


p i g l e t s per l i t t e r ;

ii. t h a t t h e primary m i s s i o n of t h e farm i s t o produce and s e l l


p o r k e r s only;

iii t h a t t h e animals t h a t p o s s e s s t h e d e s i r e d q u a l i t i e s a r e b r e d t
sows and b o a r s t o i n c r e a s e t h e b r e e d i n g s t o c k a t a r a t e t h a t
would y i e l d t h e 600 p o r k e r s a-year p r o d u c t i o n .

Table 5.3

Capacity U t i l i s a t i o n and Estimated Annual Capacity P r a d u c t i o n of PC

Particulars (~r.1 / Yr.2 Yr.3 Yr.4 Yr.5


U t i l i s a t i o n of c a p a c i t y
I
153% ' 80% 100% 100% 100%
T o t a l annual p r o d u c t i o n (kg) 22400 33600 42000 42000 42000
L-

MATERIALS- INPUT
-- . -2

M a t e r i a l a and I n p u t

An e s t i m a t e d y e a r l y m a t e r i a l s c o s t f o r t h e p r o j e c t e d f i v e y e z

o p e r a t i o n a t 1995 c o s t c o n s t a n t p r i c e s h a s been p u t a s f o l l o w s :

Year 1
Year 2
Year 3
Year 4

The primary raw m a t e r i a l s i n p i g p r o d u c t i o n i s t h e beginning

n gockmay come i n form of p i g l e t s , weaners, q i l i s ,boar


~ t o c k - 6 a ~ i n n i .st

sows i n c h e i r r e q u i r e d p r o p o r t i o n s a c c o r d i n g t o t.he s i z e of t h e f

i n - p i g s w i t h b o a r s f o r f u t u r e mating o r a combin&tion of them a s

d e s i r e d by t h e farmer. The important t h i n g i s t h a t t h e farmer i s

guided by t h e d e s i r 6 d q u a l i t i e s i n t h e s e l e c t i o n of t h e b r e e d i n g
s i n c e i t i s paramount t o t h e f u t u r e performance of t h e farm. In

t h i s s e l e c t i o n , t h e farmer i s guided by such f a c t o r s as p r o l i f i c i t }

f e e d u t i l i z a t i o n e f f i c i e n c y , s i m i l a r i t y of c o l o u r , markings and

conformation. Sows a r e d e s i r e d i f they show q u a l i t y , l e n g t h of

body, f e m i n i n i t y , well-developed udder, two rob:, of t e a t w i t h a t

l e a s t s i x t e a t s i n each row and c a p a c i t y of s u c k l i n g l a r g e l i t t e r s

of p i g s ; while t h e boar i s a p p r e c i a t e d i f i t h a s q u a l i t y , m a s c u l i n i t

good d i s p o s i t i o n and a b i l i t y t o s i r e s t r o n g , v i g o r o u s p i g s (Encyclop

B r i t a n n i c a , 1970 e d , p 107).

For t h e purpose of t h i s p r o j e c t , i t i s recommended t h a t i n - - p i g s

2e purchased a s t h e b r e e d i n g s t o c k . I f t h i s i s done, i t i s expected

10 f a c i l i t a t e t h e p r o g r e s s of t h e f a r q a s l e s s time i s s p e n t i n

growing weaners t o mating s i z e o r mating g i l t s o r sows.

Thus, t h e in-pigs and b o a r s needed f o r t h e d i f f e r e n t e s t i m a t e d

r e as Follows:
~ ~ 1 p . 1 : i t i . ea ~ 20 i n - p i g s 2nd -one b o a r f o r t h e beginning

y e a r , a n o t h e r t e n in-pigs added i h t h e second y e a r , t h e t h i r d y e a r

e i g h t a r e added - and a t t h i r d s t a g e t h e number needed f o r t h e farm

is attained.

Ta3le 5.4
--
No of In-pigs - No of -Boars
Required Required
Cost p e r
In-pig ypl) Boar (H) 1
Cost p e r I ~ r Tot
.

1 20 1 "7500 - 9,000 159 ,OO


1
2 I 10 - I1 - 75 ,oo
I
I 8 - II - 1 60,OO
I - - I
I -
- - -
-
Another important m a t e r i a l s needed f o r t h e s u s t e n a n c e of t h

f a r u a r e t h e animal f e e d s . Feed r e p r e s e n t s about 43.4% of t h e t

c o s t of y o d u c t i o n s i n c e f e e d s a r c very c o s t l y , i t i s recommende

t h a t they be manufactured i n t h e farm. P i g s a r e normally f e d w i

d i e t s b u i l t on hay, s p e n t g r a i n s , palm k e r n e l c i l , f i s h w a s t e ,

groundnut cake, soyabeans meal, and sometimes c a s s a v a , a t v a r i o u

combinations. It i s however recommended t h a t t h i s p r o j e c t adopt

use of palm k e r n e l kake (PKC), groundnut c a k e , soyabean meal, s p

g r a i n , f i s h waste and such combinations which have been found no

o n l y economical b u t r i c h i n n u t r i e n t and a r e 6 f f i c i e n t l y i n u s e

many modern p i g g e r y e n t e r p r i s e s v i s i t e d i n c o u r s e of o u r i n v e s t i

The m a t e r i a l s needed f o r t h e p r o d u c t i o n of -the complete corn

of f e e d s f o r t h e 320 p o r k e r s f o r t h e f i r s t y e a r on average consu

t i o n r a t e of 200 kilogrammes of f e e d s p e r p o r k e r a r e e s t i m a t ~ d :L

shown i3 t a b l e 5.5

Table 5.5 Feed P r o d u c t i o n

?laterial Unit p r i c e (W) Quantity - T o t a l Cost (W:


PKC 16.8lkg 16 t o n e s 26,880
Groundnuc cake
Soyabem cake
Spent g r a i n s
13.O/kg
25.0lkg
8
4
tones
tones
i 104,000
100,000
-2.olkg 43 tones 86,000
F i s h waste 1201kartons 24 cartons 28,000
Salt 500lbag'
.- - 8 bags
2
4,000

591,600
The t o t a l c o s t of primary m a t e r i a l s ( p i g s ) i n y e a r one i s

W159,000, w h i l e t h e c o s t 6f f e e d s i s p u t a t W591,600. Therefore, t

t o t a l m a t e r i a l c o s t s f o r t h e p r o d u c t i o n of 320 p o r k e r s a r e e s t i m a t e

a t W750,000 whi2h amounts t o W2,346 p e r porker f o r y e a r 1.

I n y e a r two, t h e p r o j e c t e d p r o d u c t i o n volume i s 480 p o r k e r s , a

h o l d i n g t h e above y e a r one c o s t constant, we e s t i m a t e t h a t 10 a d d i t i

i n - p i g s needed t o meet t a r g e t f o r t h e y e a r w i l l c o s t W75,000 and t h .

f e e d s f o r t h e p r o d u c t i o n of t h e p r o j ecrsed W48Orpprkers rare e x p e c t e d

c o s t W887;400, whiSi'sli&^up t o W962,400. And f o r t h e t h i r d y e a r ,

t o produce a t t h e f u l l c a p a c i t y of 600 p o r k e r s p e r y e a r , e i g h t

a d d i t i o n a l i n - p i g s a t t h e c o s t of 4460,000 a r e t o be added, and t h e

m a t e r i a l needed'for f e e d i n g t h e animals a r e e s t i m a t e d a t W1,109,250

t h u s t o t a l l i n g W1,169,250. The c o s t f o r subsequent y e a r s a r e expec

t o average a t t h i s amount (W1,169,250), a s t h e number of sows needel

i n t h e farm h a s been a t t a i n e d a t 38, and s h a l l remain a t t h a t u n t i l

change i s e f f e c t e d on t h e farm c a p a c i t y .

Packaging Cost

I n o f d e r t o enhance t h e decency of t h e p r o d u c t , p o r k i s u s u a l l :

s o l d i n n e a t packs. The u s u a l method i s packing i t i n s m a l l po1.y-

t h e n e bags. To pack 1000 kilogrammes of pork, a n a v e r a g e of 1000

s m a l l - s i z e polythene bags a r e needed a t a c o s t of a b o u t W200

(quantity price).

Annual package c o s t s a r e shown i n t a b l e 5.6


Year Annual Prodn of Pack (kg) Annual Packing c o s t (W)
1 22,400 4480
2 33,600 6720
3 42,000 8400
4 42,000 8400
5 ' 42;ooo -8400

U t i l i t y Costs

(a) Electricity
To produce p o r k e r s , t h e e l e c t r i c i t y usage i s l i m i t e d t o what

i s used by e l e c t r i c p i g brooder ( f o r warming p i g l e t s , weaners, and

growers) and what i s consumed a t t h e farm house f o r t h e farm hands.

Cansumption i s e s t i m a t e d t o c o s t about W12,500

(,b) kerosine O i l

About 200 l i t r e s of k e r o s i n e f o r lamps t o p r o v i d e l i g h t i n t h e

farm a t n i g h t and s t o v e s t o be used i n p l a c e of e l e c t r i c P i g Brooders

d u r i n g c a s e s of power f a i l u r e s a r e r e q u i r e d p e r annum. The c o s t i s

e s t i m a t e d a t W8.50 p e r l i t r e = W1700.

(cj Water

Water c o s ~ sa r e e s t i m a t e d a t W52,000 f o r t h e f i r s t y e a r of

operation. T h i s i s based on an e s t i m a t e d W l O O O FeT-wi5iZk n e e d e d - f o - '

f i l l t h e 500 g a l l o n t a n k i n t h e farm. The t o t a l u t i l i t y c h a r g e s

a r e t a b u l a t e d i n t a b l e 5.7.
Table 5.7 Annual Utilitv Costs

I. Kerosine .. Water .
i
I
Electricity
Charges (N)
I
Charges(W) Charges(8)
Toral Utility cha
(%>

Supply Programme

The breeding stock of in-pigs which are the primary material £01

the farm is expected to be obtained from the Federal Livestock Depart

ment, Pig BreedingIProgeny Centre, Okpuje,'-Nsukka Local Government

Area, Enugu State, which is just 30 kilometres away from the locatios

site of the project. Since it is of paramount importance to stock

qualitative breeds that would sire offsprings that will meet the '

farmer's various desires of high fecundity, high maturity, short

generation interval and the degree of lean meat or fat stored by the

animal etc, the search for these initial stock may involve going to

alternative sources such as Austen Farms; An&, Oyi Local Govern-

ment Area, Anambra State. As already stated above, these animals

will-be purchased in the following order: twenty (20) in-pigs

and a boar in the first year, ten (10) in-pigs fcr year two, and

eight in year three to make for the required number 38. These

animals (38 in-pigs and a boar) are expected to yield not less than

600 porkers per annum as from year three.

These animals are expected to be of the exotic breeds such as

large wh:te, landrace and some crossbreeds.


\\ lipition, fuel for the farm's vehicle and kerosine oil for the

standby lamps and stoves are easily procured in the many filling

stations near the location. Furthermore, the presence of access

roads to the location will no doubt facilitate the movement of iten

to and from the project location. The availability c.f these utili-

ties will contribute in no small measures to the successful operatic

of the project.

ii. Availability of Manpower

The existing social amenities in the location will help attraci

people into the area. The movement trend in the town is towards

the headquarters where these amenities exist, and thus will make

labour readily available for hire for the farm.

iii Social Amenities


-

Thp i m n n r t a n t s n r i a l i n f r a s t r l ~ r t ~ ~1 irkee h n s n i ta1 s . nine-bc


v. Plant Size and Local Conditions
-
The piggery farm is medium in scale and is expected to cover

a land spsce of about 1000 sq metres. The farm is located in a wide d


expanse of land which is close by the Nkpamute-Igogoro road. The -i
land is inexhautible in the near future and is copiously available

for future expansion activities.

Our findings also indicate that while a plot of land (50 X 50sqm)

sells for W40,000-50,000 at some more central points, a plot of land

here could be procured with W25,OOO. The site is quite serene and

conducive to concentrated farming, in addition to being under no

environmental threat.

Environment Impact

Contrary to general opinion, the pig is a clean animal if given

sanitary surroundings. Most pigs are forced to live in anunsnnitary

environment. Under an intensive management system, the type expected

in the farm, the farm poses no environmental harzard to the people.

On the contrary, the pig dungs when collected and dried are sold as

manure which will help to enrich the environment with healthy plants.

PROJECT ENGINEERING

Lay out and Physical Coverage of Project

The farm will be made up of three farm houses, each with an

average of 16 pens. These houses will be arranged 'in a row in the

eastern part of the farm, with a minimiurn of six feet gap to enable

air to circulate freely in and around the houses. At the Southwest end

of tte farm will be an office block, with three rooms attached for

attendants.
J u s t c l o s e b y t h e farm h o u s e s , towards t h e s o u t h e a s t w i l l be Located

a s t o r e h o u s e , where f e e d s and some f a r m implements w i l l b e s t o r e d .

AC Clic ~ i o r t l i c r nn- ~ ~ ps ltr t of ~ l l cI'i~ralw I I1 he l o ~ i ~ t ~ ~i ~~h li ~i t~L [OiL r ,

where tlic: 1;1r1na n . l r n ~ ~ w


l s l l l be s l a u g l l t e r e d and packaged L n sali1l;dry

c o n d i t i o n . f o r t h e onward t r a n s m i s s i o n t o t h e s e l l i n g p o i n t s . This

a r r n n g e m e n t i s e x p e c r e d t o e n a b l e t h e f a r m a t t e n d a n t s t o have s l e e p i n g

a b o d e s which a r e of s a f e d i s t a n w from t h o s e of t h e a n i m a l s . The

c l o s e n e s s of t h e f e e d s s t o r e t o t h e p i g h o u s e s w i l l a l s o e n a b l e t h e

f e e d i n g p r o c e s s t o be e a s i e r and l e s s cumbersome. The s p a c i o u s

a r r a n g e m e n t i n a d d i t i o n g i v e s room f o r f r e e nioveinent of farm p e r s o n n e l .

1':nch f:irin house i s e s t i m a t e d t o c o v c r a f l o o r s l ) a c e oC 75sq

lrletrus, t h e o l l l c e b l o c k i s t o c o v e r 60sq nierre w h i l e t h e a b a L t o l r

i s a l l o c a t e d 20sq m e t r e . The p h y s i c a l c o v e r a g e of t i i e f a r m house

a n d o t h e r e s s e n t i a l b u i l d i n g s w i t h i n t h e farm i s e s t i m a t e d a r n o t

lc-i:; t h a n 430sq mctrtls.

Te'chnology
- and Dquipir!r.rlt
-

a. --Technology

The p i g p r o d u c t i o n p r o c e s s i n t h i s p r o j e c t w i l l be a d a p t e d t o

t h e l o c a l . t e c h n o l o g y , e s p e c i a l l y i n f e e d i n g of t h e a u i m a l s . Uut i n

g e n e r a l t h e production technology i s simple.

The S t a g e s i n P i g P r o d u c t i o n

The g i l t s a r e u s u a l l y b r e d a t 8 t o 81 months o f a g e , t o f a r r o w

t h e i r f i r s t l i t t e r when one y e a r o l d . A f t e r t h a t , two l i t t e r s a

y e a r may bc a t t a i n e d ant1 rllc sow i s r c t ; ~ i t ~ c ca ls Lu~lg a s h c r u s e f u l l -

lwss continues. A young b o x on L-llc o t h e r hand w h i ~ hshow v i g o r d s i t y

t o 20 oi 30 so\,.; a t t h e
111ay be b r e d a t e i g h t months 01 a g e and ~n~ltccl

f i l ' s t s e a s o n , and ~ u b ~ s q u e n t ltvo 40


-
- 60 snwq dlli inct n cnlcnn
(the Encyclopeadia Britannica, 1970 ed, p 1070). The period of

extrus (he~t)in the sow is about three days, and it should be

nated with the boar on the second or third day. If not pregnant,

the sow a a e s on heat every three weeks. After the mating, the gilt

or sow is restricted and fed properly in an isolated pen to minimise

disturbance by other pigs. The pregnancy period is 114 days. The

feeding ration at pregnancy is properly regulated to have the animal

:.n good condition at farrowing time, but it must not be fed to be

too fat.

Farrowing of The Pigs

Accurate breeding rates should be maintained so that the sows

or gilts could be removed to a clearly prepared individual farrowing

pen three days before parturition. Straws are usually provided to

the sow to make nest. The sow is usually scrubbed with warm water,

soap and disinfectant and put in the crate. Providing pens with

guard rai1.s (Creep) helps prevent sows from crushing their young.

=he mother cannot enter the creep area and this restricts contact

with the piglets in the pen. The sow is usually removed from the

crate three days after farrowing. The use of the electric pig brood

:stove) facilztates warmth and prevents chilling of young pigs.

Special-attention should be given to preventing loss of pigs during

:he first two weeks of life when most losses usually occur. The

,~igreproduces by multiple birth with litter size of about 8 to

12 under intensive management system.


Castration of the Piglets

It is the usual practice among farmers to castrate male pfgleti

:lot required for breeding. This is done to prevent uncontrolled

rlating and the development of boar odour. The castration is usually

cione when the piglets are still suckling their mother.

-Keaning of the Pigs


New'born pigs depend on their mothers for the first three weeks

AEter that they eat supplementary feeds in addition. Pigs are

weaned from their mothers at six to ten weeks of age. The sow is

usually taken away from the piglets. This is done to reduce suEkling

period and make the sow available to be served again.

The target weight of each piglet at weaning is between I 1 -


23 kg, and the number of piglets weaned by a sow after each litter
is on the average of eight.

-
Fat:tening of the Pigs

Pigs should be well fed and cared for during the growing and

fattening periods to produce rapid and economic gains. They are

nornally fattened in groups of the same size. The type of ration

givcn to them should be rich in protein. Pigs produced for pork

are usually slaughtered at between 57 to 90 kg of live weight.

Processing of Pork

Pigs are glaughtered at the abattoir and their carcasses reduced

to saleable weight. The pork is usually dressed and sold, it is

usually stored in the refrigerator or cold store.


Routine Management of the Farm

There are some management practices basic to well-managed

piggery enterprises, which include daily and periodic operations.

Some of these practices are outlined hereunder:

Table 5.8
Schedule of Day - to - Day Operations in a
Modern Piggery Farm

Appropriate Time Farm Operations


(Hour)

Routine Daily Operations


Cleaning of all pig pens
Cleaning of Farm premises
checking the herd, spotting out sick animi

Periodic Operations
Weighing of the stock
Cutting needle teeth of piglets
Castration and vaccination
Identification of ba6y pigs by ear-notchin
Sale of ready for market stock.

Routine Daily Operations


Disinfection of pens
Disposal of animal waste
Washing of pigs

Periodic Operations
Deworming the animals
Treatment of sick pigs

Routine Daily Operations


Feeding of the second half of concentrate
ration to breeding and growing steck
Making daily entries in farm records
I13

B
Checking n u r s i n g sows and g i l t s i n t h e f a

Periodic Operations
1 Weaning of p i g l e t s
2 weekly s c r u b b i n g of t h e f e e d and w a t e r trc
3 Attending t o farm p u r c h a s e s -

Source: Imo S t a t e A g r i c u l t u r a l Development C o r p o r a t i o n (hDC) p i g


farm (1985).

(b) Equipment:

I n r e c e n t y e a r s , equipment c o s t s have become g r e a t e r a s l a r g e

p i g producers a r c i n c r e a s i n g l y s u b s t i t u t i n g more c a p i t a l f o r l a b o u r

w i t h g r e a t e r u s e of t h e confinement system. The equipment f o r t h i s

p r o j e c t 2s h e r e d e f i n e d t o !.nclude a l l t h e instr-uments and machines

in u s e f o r t h e e x e c u t i o n of t h e b u s i n e s s .

The t o t a l sum expected t o be s p e n t i n t h i s a s p e c t of t h e p r o j e c

i s P15463420. Some of t h e equipment and t h e i r cost; a r e a s f o l l o w s :

1ptr) m e t a l water t a n k (W20,OOO) ; 4 wllecl harrows (Hll,5OO) ; 4 m e t a l

pickers (PIB0.00 e a c h ) , 4 head p a n s (PI600 e a c h ) : 4 11,ct;ll buclccts

(MOO e a c h ) ; 7 p a i r s of work b o o t s (W350 e a c h ) , 4 c ~ ~ l a s s e(W5OOeac


s

4 f i f t y - l i t r c cans (H250 e a c h ) ; t e n sto$es '(W500-edch3;'2 lanips

(F650 e a c h ) ; a s e t of t a b l e s and c h a i r s (W5,000); t y p e w r i t e r (W5,OOC

5 deep f r e e z e r s (W45,000 each) and a f a i r l y used second-hand pickup

Other equipments a r e e i g h t p i g c a t c h e s (g4000) and 3 p i n c e r s


C i v i l Engineering

Land and S i t e Development

Land development w i l l i n v o l v e c l e a r i n g and l e v e l l i n g of s i t e ,

c o n s t r u c t i o n of r o a d , d r a i n a g e s and supply of u t i l i t i e s . It i s

e s t i m a t e d t h a t 1000 s q metre of l a n d w i l l be r e q u i r e d f o r t h e t h r e e

farm houses, t h e o f f i c e b l o c k , t h e s t o r e house and t h e a b a t t o i r ,

a:ld s t i l l l e a v i n g enough room f o r f u t u r e expansicn. IJsing t h e 1000

s q m e t r e s l a n d s p a c e , t a b l e 6.2 below shows t h e t o t a l c o s t of l a n d

development.

Cost of Land Development

t1
I
Cost of l a n d
C l e a r i n g and l e v e l l i n g 1
Rate ( W )
100
30
Area
1000m2
I 1000n12
c o s t i.n ( W ) .
100,000
30,000
\

i Drainage
1 Roads 1 2500 1 120m 30,000
1 : l e c t r i c i t y supply(connec I I
1:iun tc main l i n e ) 5000 5 poles :!5,000
/ I1encc and g a t e I I lOU,OOO ,

t A_-_
I
(ontigencies I 10,000
--

--
1 I 310,000

B u i l d i n g and S t r u c t u r e s

Far-n House

P i g housing, i n a d d i t i o n t o t h e primary o b j e c t i v e of p r o v i d i n g

p r o t e c t i o n t o t h e p i g s a g a i n s t h a r s h weather c o n d i t i o n s , s a v e s l a b o u

heal t h y growth and development of t h e animals.


Structures
-- of the Farm House

The floor of the pig house is usually strongly built with

ccrncrete, and it slopes gently to one end of each row of the pens.

The sloping is to facilitate the run off of urine and water when

the pens are being washed.

The roofs should be made of corrugated asbestos sheets because

it needs to be weather proof (ie a bad conduct of heat and light).

The walls of the farm houses should be built with blocks at

the lower half and the other half closed only with galvanised wire

guaze.

These pig houses are normally demarcated into pens, with each

pel having a floor space of 0.9 -- 1.8m2. While a fhrrowing pen

accommodates a sow and its litter, the weaners and fattening pens

house up to'30' pigs.

Three 16-pen farm houses are to be constructed in this farm.

And according to findings, estimated cost of one 16-pen pig house

Another building structure needed in the farm Is the office

block with three rooms attached for attendants. This will cost an

estimated amount of W250,OOO. The store house is estinated to cost

W55,000, while the abattoir's cost is put at $425,000. Table 5.10

shcw the total cost of buildings.


Table 5.10

Particulars -- in (W)
Cost
3 Farm Houses (W350,OOO each) l,O5O,OOO
Office B1oc.k (with rooms attached) 250,000
Store House 55,000
Abattoir 25,000

Total 1,380,000

PLANT ORGANISATION AND OVEKHEAD COSTS

Plant Organisation
The farm is to be organised in such a way that functions are
dcpartmented into two-production and administrationlsales. These
two departments shall be manned by two staffers of supervisors rank,
wto are to be answerable to the farm manager, who is the head of the
farm administration and is responsible for the success of the enterpr:
He is only answerable to the Director (the owner) of the farm from
whom he needs to seek endorsement for policy matters.
The two supervisors are entrusted with specific functions.
The production supervisor ensures that all opera'cional details are
carried out by the farm attendants. The administrative/sales super-
visor oversees the work of administrative and sales staff to ensure
that they are working to targets. The manager on the other hand is
the chief executive of the farm and co-ordinates both production and
administrative/sales department.

Fig 5.1

Director
I
I
Farm Manager
I
s i_=J
AdrninISales Supervisor

17=-Tpl
Salesmen ecurity Typists Driver
Farm Supervisor

p-ajtendants/
' h b costs of training, technical assistance is cclpitalised and cha

to loachinery/equipment and written off over 10 years. T h i s increa

t h e depreciation charge to W205,756.

Maintenance and Supplies

The additional costs for accessories i~ndspares i o r ma-Lntainl

farm equipment has been put at .5% of the total equipment costs fc

the initial two years. And for subsquent years, an allowance of 2

of equipment is made for this purpose. This will amount to N2732

the first two years and W10,928 in subsequent years.

Interest Expenses

The annual interest expenses according to the proposed nlethoc

of financing are shown in table 5.12

-- .-
Interest on :Interest on
short-term loan 3 long-term loan
I

It is expected that working capital will be generated intern;

from capital reserve after the fi.rst three years of operation.


MANPOWER
.-

The proposed cnrerprise will require the recruitment and

training of farm attendants as well as administrative, clerical and

ancillary staff to achieve its targets.

Labour and Staff

Piggery enterprise draws its workforce largely from the unskil

labour, which abound in the town of l_acation. These unskilled labou

usually school leavers are trained on the job to discharge routine

duties in the farm. There is however need for competent technical

personnel on the areas OF pig management and sales. This group of

staff should be drawn from among the University/Polytec?nic graduate2

in Agricultural and Business disciplines. It is this c-op of skillet

staff that provide training to the farm attendants.

The enterprise should engage the services of a farm manager,

preferably a graduate of Agricultural Economics. He takes the

responsibility of thc whole busincss of pig production. This includ~

all activities of breeding, financial affairs and ~aarketfingoutlets.

Production
-----
The production department also requires 6 professional

husbandman or Animal Science graduaa to take charge of the breeding

process. He is to serve as the production supervisor and would

work with the four pig attendants to ensure that the animals are

properly managed.
Administrative/Sales

It will be necessary to employ one more supervisor to oversee

the activities of all non-production staff, including clerical staf

security men, and sales force. A sales force of five sales persons

will be needed to man each of the five selling points to be created

for the sales of the enterprise's product. Two typists/clerical sta

would be needed to handle the purchases of raw materials for the

company and to handle orders and deliveries to (or collections by)

organisation's selling or consuming pork. One driver w X l be require

for the picking van. Two security men will be required to ensure the

safety of property of the enterprise both at day and nigit.

The administrative/sales supervisor shall be HND/B:;C holders

in Business Administration, and should be responsible for designing

the appropriate saleslmarketing strategy for the farm's groduct, and

overseeing the activities of all the staff in the department to

ensure they work to targets and specifications.

Personnel Costs
--
The progressive increase in the capacity utilization of the

farm up to near 3 is not expected to increase the total manpower

requirements, at least in the foreseeable future. An estimated

allowance of 50% is made for fringe benefits and annual increase in


labour cost due to inflation and promotions. A breakdown of annual

labour costs is estimated thus:


-
Table 5.13 Breakdown of Laboar Costs

--- --- Total S


Ccsignation -
No-loyed Annual salary (W) expense
Farm Manager 1 60,300 60,C
Production
Farm Supervisor
Pig attendants
Admin/Sales
Supervisors
Sales persons
Driver
Security men
l'ypist s

Add 50% Fringe Benefits and allowance for Salary increases 240,001

PROJECT IMPLEMENTATION

It is expected that implementation of the pig production projec.

will be in four phases. The first phase involves the preliminary

activities necessary for the project developmenr such as (a) the

financial approval (b) detailed farm design and equipmeni: selection.


-*
this first phase is expected to last one month.

The second phase should consist of site preparatioc, the erect

of buildings and allied structures, ( c ) delivery oi equipnent and

{hen- the initial personnel training. This second chase is expected

to take five months.


1.1 :he t h i r d phase, what t a k e s centra.L s t a g e i s t h e t e c h n i c a l

duty of ;ourcing and s e l e c t i n k t h t breeding s t o c k t h i s i s supposed

t o t a k e one month, s i n c e t h e animals have t o be observed and propel

t t s t e d .to e n s u r e t h e y meet t h e q u a l i t i e s neede! by t h e e n t e r p r i s e .

However, tlic p r o j e c t should n o t be regarded a s completed u n t i l t h e

f o u n d a t i o n s t o c k of i n - p i g s a r e farrowed and watched LO measure thc

performance, t e s t t h e f a c i l i t i e s a v a i l a b l e and e F f e c t any c o r r e c t i

measures wh,.c:re n x e s s a r y .

The f o u r t h s t a g e b e g i n s a f t e r about f i v e months of thc farrow:

02 t h e i n - p i g s . A t t h i s s t a g e t h e s a l e s f o r c e i s r e c m i t e d , and

t r a i n e d and t h e marketing channels e s t a b l i s h e d , r e a d y t o t a k e f i r s t

s t o c k of pork.

The p r o j e c t should be commissioned f o r u s e w i t h i n one y e a r of

inception.

I n order t o a f f e c t these clan-, a n u c l e u s p r o j e c t team s h o u l d

be s e t up t o t a k e r e s p o n s : i 3 i l i t y f o r over a l l p r o j e c t implementatil

I:? - t h i s i n s t a n c e , t h e n u c l e u s p r o j e c t team shou7J be made up of thl

d i r e c t o r (tl-r! owner) and t h e farm manager. I t i s t h i s f a r m manage-

who should r e c r u i t t h e n e c e s s a r y p e r s o n n e l and c a r r y o u t on t h e s i

t r a i n i n g of t h e p e r s o n n e l , e s p e c i a l l y t h e farm a t t e n d a n t s . The

s t a f f i n g s h ~ u l dbegin w i t h t h e engagement of t h e s ~ : e r v i s o r s which

s h o u l d b e used a s r e s o u r c e p e r s o n s f o r t h e t r a h i n g of t h e j u n i o r

staff.
FINANCIAL AND ECONOMIC EVALUATION

(a) (TaSle 5.14) Total Investment Outlay


i. Fixed Assets Investment: .-
Value i.n(W)
Land and Site development 310,000
Building and Civil works 1,380,000
Farm machinery/Equipment 558,400
Furniture, Fixture and office
equipment 15,000

Pre-operating Expenses

ii. Working Capital:


Raw materials 750,000
Other Liquid Assets 234,000
Net working capital 958,000
Total project cost (i + ii) 3,378,000

(b) Project Financing

It has been estimated that the over all investment cost for

piggzry farm of the capacity proposed, including the first year's

working capital put at W985,000 is about W3.37 million. The fixed

assets component of this project whose costs amount tc W2.39 millio

is expected to be financed as follows:

Equity:

The entrepreneufi . stake in this ventures is expected to

account for about 55% of the long term funds required for it,

amounting to W1.31 sillion; while the remaining 45% should be raise

through long-term loan. The entrepreneur may invite 3ther interes-

ted financiers to contribute to the equity funds of the enterprise


Long-term Loan

The long-term-loan of W1.08 m i l l i o n (which i s 45% of t h e

non-working c a p i t a l of t h e p r o j e c t ) i s expected t c ~be f i n a n c e d

through t h e a g r i c u l t u r a l f i n a n c i n g i n s t i t u t i o n s i n t h e c o u n t r y a t

an expected i n t e r e s t r a t e of 10%. The l o a n i s expected t o b e p a i d

back w i t h i n f i v e y e a r s - i n f i v e i n s t a l m e n t s .

Short-term Loan

The working c a p i t a l of about W985,OOO which forms a s i g n i f i -

c a n t 30% of t h e t o t a l c o s t o u t l a y of t h e p i g p r o d u c t i o n p r o j e c t i s

expected t o be r a i s e d through commercial Banks. The l o a n i s p r o j e c t e d

t o b e f o r a p e r i o d of t h r e e y e a r s a t a n i n t e r e s t r a t e of 2.1 p e r annum.

T h i s f i n a n c i n g p r o p o s a l i s expected t o y i e l d a d e b t / e q u i t y

r a t i o of about 2:l. Table 5.15 and 5.16 show t h e i n t e r e s t and

p r i n c i p a l repayment s c h e d u l e f o r t h e p r o j e c t .

Table 5.15 I n t e r e s t and P r i n c i p a l Repayment S c h e d d e ,


Short-term Loan

Year
Total Principal '
Outstanding
Principal
Payable
I,
Interest Total I Payable
( w (W (W

1 985,000 328,300 206,850 535,150


2 656,700 328,300 137,900 466,200
328,400 238,400 1 69,000 397,400
Table 5.16 I r L t e r e s t and P r i n c i p a l Repayment S-hedule,
Long-term Loan

I ( Total Principal 1 Principal


I Interest Total
Year Outstanding Payable Payable E'ayabl e
(W (W ( w
1,080,000 216,000 108,000 324,000
I

roduction Costs

The expected p r o d u c t i o n c o s t s f o r t h e p r o j e c t f o r a y e a r i s

computed hereunder, w h i l e t h o s e f o r subsquent y e a r s cr e e x tr apol a

based on y e a r 1 f i g u r e s .

Table 5.17 Year 1 Production Cost -


Value i n (N)

Direct Material
D i r e c t Labour
I n d i r e c t Wages
Indirect materials
Rent
Depr.. of f a c t o r y p l a n t and
Equipment ,

Power ,-h e a t and l i g h t

For t h e subsquent y e a r s , a l l t h e p r o d u c t i o n f a c t o r s a r e

expected t o be c o n s t a n t , e x c e p t f o r v a r i a t i o n s i n d i r e c t all11 i n d i r e

materials. When t h e s e expected v a r i a t i o n s a r e computed i.nto t h e

p r o d u c t i o n c o s t s f o r t h e s e y e a r s up t o t h e f i f t h , we have s p p r o x i

t o t a l s a s follows:
Year 2 , W1,754,000; y e a r 3, W1,850,000; y e a r 4, W1,955,400 and

y e a r 5, F2,077,100.

Commercial P r o f i t a b i l i t y

Table 5.18 P r o j e c t e d Income Statement ( y e a r 1 - y e a r 5)

--
Year 1 year 2 year 3 fear 4 Year 5
(HI (W (W -
(W - (W
Sales 2,688,000 4,032,000 5,049,000 5,043,000 5,040,(
Cost of s a l e s (1523567) (1823567) (2012368) (2012368) (20123(
Gross p r o f i t 1164433 2208433 3027632 3027632 302763:
Admin expenses (48600) (30,000) (20,500) (2G,500) (20,501
I n t e r e s t Expen. (314,850) (224,300) (133,800) (43,200) (21,601
Operating p r o f i t 800983 1954133 2873332 2963932 298553:
Other income - - - - -
P r o f i t before
tax 800983 1954133 2873332 2963932 298553
Tax ( a t 35%) (280,347) (683947) (1005666) (1037376) (LO449
Profit after
Tax 520,639 1,270,186 1,867,666 1,926,556 1,940,
Appropriat;iOn
Dividend (I,l2O6OO: (1155934) (11643
Retained p r o f i t 747066 770622 7762
P r o i e c t e d Balance Sheet f o r End of Year 1 - vear 5

year 1 year 2 ear 3 rear 5


- - (N (W (W (m
ASSETS

Fixed A s s e t s

buildings ,242,000 L ,lO4,O(

pickup Van 125,000 -


machinery/
equipment 254,800 lgl,2O

Current A--
ssets

Stock a c end:

Feeds 392,300 377,30(

Pigs 475,472 475,472


Cash a t hand 46,900 46 ,go(
Bank Balance l4O,6O@ l4O,6O(
---
! ,677,072 2,335,47:
-
LTAUILITIES
-
C a p i t a l and
Reserves :
Equity investm. 1,210,00(
Cencral Reserve 776,231:
Current
- iabiiities:
L
Shcrt-term l o a n -
111,6%
Long-ter 11
L i a b i l i t i-
es
Provisioa for
L i a b i l i Lies &
Charges 237,601
2,335,47
PROJECTED CASHFLOW STATEMEtTT
-

Particulars

i\ -INFLOW
-
L e a r 1 (W) Year2 (W) y e a r 3 (W)

Sales 5,040,000
zquity
l n v e s trnent -
Long-term
Loans -
Short-term
Loans

--
-
OUTF1,CW
--.-
Fixed A s s e t s
Investment 2,393,640
Materials
lnpu t 750,000
Salaries 723,Or)O
Adrnin/General
Service 119,280
Debt S e r v i c e 859,150
C o r p o r a t e rdx 52G,G39
--
-- -
:ash S u r p l u s 600,291 51,374 463,38t 823 ,A94 H31 , O

--a t i o s
A n a l y s i s of S e l e c t e d F i n a n c i a l R

I n o r d e r t o measure t h e performance of t h e b u s i n e s s a g a i n s t

c e r t a i n i n d i c e s and g u i d e l i n e s , some f i n a n c i a l r a t i o s a r e p r e s e n t e d t

a s s e s s th? p r o j e c t e d o p e r a t i o n s of t h e b u s i n e s s . These r a t i o s would

h e l p t o g Lve a n i n s t a n t p i c t r t r e of t h e o r g a n i s a u i o n ' s h e a l t h and I t s

a b i l i t y t o g e n e r a t e conf i d e n c c among !ts v a r i o u s p u b l i c s .


(i> Frofit Margin = profit Before Tax (PBT),
Sales

In year 1, PBT = N800983


Sa1.e~ = F12688000

: . the profit margin = W800983 = 30%


W2688000
For the susquent years, the margin would be 45.5%,58.2% and 59.2%

from second year to the fifth year respectively.

(ii) Return on Equi.ty:

Profit After Tax (PAT)


Equity

for year, PhT = £4520639


Equity = W1210,OOO

: Return on Equity = £4520639 = 432


W1210,OOO

In the second year it would be 105%; third year, 160%.

(iii) Return on Investment (ROT)

Profit Before Tax


Total investment

For year 1, ROI = W800983 = 24x


W3378000
For other years, the ROI are 58%, 85%, 87.72, and 88.3% respuctivel

from year 2 - year 5.


(iv) CurrentRatio:

Current Assets
Current Liabilities

For year 1, Current Ratio W832375 = 12z


=
W597000
For subsquent years it is as high as 130% in year 2, 252% in year 3

654% in year 4; and 931% in year 5.


(v) Pay Back P e r i o d :

= T o t a l Investment
Average P r o f i t a f t e r t a x + Depr
The p r o j e c t c o s t i s p r o j e c t e d t o be W3,378,000, w h i l e t h e

e s t i m a t e d average n e t p r o f i t i s W1505279. I f we add t o t h i s the

a n n u a l d e p r e c i a t i o n of W150,800, t h e n e t c a s h i n f l o w would sutn up

thus: W1505279 f 150,800 = W1656,079


3378000
: t h e pay back p e r i o d =
1656073
= 2.04 y e a r s

Break Even A n a l y s i s

The Break-even a n a l y s i s i n d i c a t e s a l e v e l of o p e r a t i o n a t wl

a p r o j e c c makes n e i t h e r p r o f i t nor l o s s . I f an e n t e ~ p r i s e soperat

above t h e break-even p o i n t , i t h a s h i g h e r chances of making p r o f i t

ant1 lower chonccs nl' making l o s s ( l n ~ a ~ a1995,


, p 6 1 4 ) .,

'I'he Break-even p o i n t (BEP) ( i n terms of p l ~ y s i c i t lu n i t s ) :

BEP ( i n terms of S a l e s Revenue):

The UEP o f t h i s p r o j e c t i n terms of p h y s i c a l u n i t s :


T o t a l f i x e d c o s t (FC) = 585600
S e l l i n g p r i c e p e r u n i t (SF) = W120/kg
v a r i a b l e c o s t p e r u n i t (VC) = W47.17
:. BEP = FC
-
SP-vt:
BEP as a r a t e of u t i l i z a t i o n of production capacl-ty e q u a l s :

8040.6 X 100 = 19.14%

Break-even p o i n t i n terms of s a l e s revenue:

BEP = SPFC = 120 (585600) = W964877


SP-VC 120 -
47.17

This means t h a t s a l e s revenue a t a production l e v e l of 8040.6kg

of pork (115 porkers) equals W964877 and t h a t a t t h i s s a l e s l e v e l ,

t h e e n t e r p r i s e w i l l make n e i t h e r p r o f i t nor l o s s .
T h i s post--tax p r o f i t a b i l i t y i s expected t o grow subsquent:Ly up t o

W1.94m i n t h e f i f t h y e a r .

From t h e a n a l y s i s of some of t h e performance . i n d i c a t o r s , tile

p r o f i t margin f o r t h e f i r s t y e a r ' s o p e r a t i o n i s a s h i g h a s 30X. Thi~

i s expected t o grow s u b s q u e n t l y from 48.5% i n t h e seconc! y e a r up t o

59.22 i n t h e f i f t h yeLr. The Return on Equity ( R O E ) Eor t h e f i r s t

y e a r i s a l s o e s t i m a t e d a t 43% b u t would i n c r e a s e t o 105% i n t h e seconc

y e a r , r i s i n g f u r t h e r up t o 160% i n t h e f i f t h . The Return on I n v e s c -

ment (ROI) i s a l s o good a t 24% i n t h e f i r s t y e a r , 58% i:~


t h e second

y e a r , s o a r i n g up t o 88.3% i n t h e f i f t h y e a r . The payback p e r i o d f o r

t h e investment i s j u s t a low 2.04 y e a r s . T h i s means t h a t i t w i l l

take j u s t bout two y e a r s t o g a i n hack t h e o r i g i n a l i n v e s t m e n t on t h e

project. The BreakEven P o i n t (BEP) i s a t 19.4Z, when e x p r e s s e d a s

,I ~ L I L C01 u t i l i z a t i o n oL procltlctlon c a p a c i t y . T11.l.s g i v e s I wlrlc:

margin of s a f e t y i n c a s e of u n f o r e s e e n o p e r a t i o n a l h i t c h e s . What a l l

the:^ p o i n t t o i s a projecL chat s c o r e s h i g h i n v a r i o u s a s p e c t 5 o i

investment. a p p r a i s a l .

T h i s s t u d y h a s been a b l e t o a f f i r m t h a t p i g p r o d u c t i o n e n t e r p r i s e

i n Enugu-Ezike i s f e a s i b l e because of t h e s i r p l e p r o c e s s technology

a v ~ i l a b l e ,modest e q u i t y investment r e q u i r e d , and t h e z x i s t c n c c of

l a r g e market f ~ pork.
r I n a d d i t i o n , t h e v i a b i l i t y of t h e p r o j e c t i s

underscored by i i S h i g h p r o f i t a b i l i t y .

T h i s r e s e a r c h e r t h e r e f o r e adjudges t h e p r o j e c t a s a sound i n v e s t -

m n t and recommend i t t o e n t r e p r e n e u r s , government a g e n c i e s , f i n a n c i a l

i n s t i t u t i o n s and any o t h e r b o d i e s t h a t may be i n t e r e s t e d i n it:.


.- .-mv*T\! 6 N~GF'~,
D.I.
Alludu,
Rural Development"
E n w , 1990.
.
"Pisherieu Development i n N i ~ o r i u : Contribution t o
Unpublished Lecture M i r ? ~ o ( ~ ; r u ~ASUTLCH,
lh,
a

Cleland, D. and W i l l i a m King, eds. Pro;iect Management Handbook. 2nd ec


New York: Van Nostrand Reinhold Inc., 1988.

C l i f t o n , David S. and David E. Fyffe. P r o j e c t F e a s i b i l i t y Analysiz:


a Guide t o P r o f i t a b l e New Ventures. New York: John Wiley & Sons
Inc., 1977.

Dafwang , I. Extension Services and Pig Production i n Nigeria" .


paper presented a t t h e I n t e r n a t i o n a l Seminar on Pig Production
p p e r i n the t r o p i c s , UNN, February 4, 1985.

Davidsoxi, H.R. The Production and Marketing of Pi~s.


B r i s t o l : Western Printing Service, 1966.

Devandra, C . and M.F. Fuller. P i g Production i n the tropic.


London: Oxford University Press, 1976.

Downs, Anthony. "Characteristics of Varlous Economic Studies"


Appraisal Journal, 36 No 5 , 1366, 329 341. -
E m , John. "Sw11 3uoinesr;". Unpubliuhed Lec turn M i ~ e o ~ m p h ,
U e p r t n e n t of Management, UNN, 1994.

Grasskamp, J.A. A Guide t o F e a s i b i l i t y Analysis. Chicago:


Co-society o f , R e a l E s t a t e Appraisers, 1970.

Ikedianya , N. "A Syst e a t i c Approach t o F e a s i b i l i t y Analysis"


The Ee t a t e Surveyor and Valuer, 1, No 2 ( ~ u l y1975), 32.
.
Imaga, 13UL. Production and Operations Management. Lagos:
h f r i t m d e I n t e r n a t i o n a l Limited, 1994.

Kroeske , D, "Stimulating Pig Production i n Developing Countries".


World Animal Review, 2 ( 1 ~ 7 2 )15.
~

Lua-teck, J. and L. Mann. "The E'errtiibility 9f kcmcrt;ioml Land


.
9uvclopn~ant" A p p m i s u l J o u n u l , 45 (19'[l~) 599. ,
Nweke, Pi-&. "Inv6sting in Pig ProSuction". Paper presented a t
a Seminar on Economics of P i g Production i n Nii:erits,
University of Ibadan, A p r i l 12, 1986.

Omorodion, Geoffery. " S t r u c t u r a l Adjustment Programme i n Black Afr.


Impact on Small and Medium Scale Enterpr5ses". Unpublished
Articlo.

llPigs'l New Encyclopeadia Britannica. l97Oed.


New EncycPopeadia Britannica. lg93ed.

,
S cheaf f erantizl Richard, e t a1
3rd ed. Massachussets:
. . Elementary Survey Samplixg
Pitman Publishing I n c , 1970.
.
Taiwo, Zeb. Problems of Commercial Pig Production i n Kigeria.
Paper presented a t a Seminar on Economics of P i g P r o d u c t i m i i
Nigeria, University of Ibadan, April 12, 1986.

U m e h J.A. F e a s i b i l i t y and V i a b i l i t y Appraisal, Ibadan:


Onibono je Pub1i s h e r s , 1977.
T h i s q u e s t i o n n a i r e is d e s i g n e d f o r acndemi:: research

purposas only. All r e s p o n s e s made t o q u e s t i o n ; i n i t s h d l


h e t r e a t e d i n s t r i c t c o n f i d e n c e and s h a l l be u s e d on1.y i n

r e l a t i o n t o t h e study of t h e p r o s p e c t s o f a p i g * p r o d u c t i o n

e n t e r p r i s e i n dnugu-Ezike, P l e a s e as much a s ~ o s s i b l eg i v e
a c c u r a t e answers t o t h e s e q u e s t i c n s , a s y o u r r e s p o n s e s s h a l l
h e l p t o d e t e r m i n e t h e r)bize o f p o t e n t i a l p o r k consumers i n t

-
Please t i c k / V / a g a i n s t y o u r c h o i c e o f ;tn:;u.rer, v:here
a3plicable.
1, h ~ m cof c o m u n i t y -
2. Sex: Elale Female -/I
3. Marbtal s t h t u s : Single /7M a r r i e d /-'7
I;. : 30 y e a r s o r l e s s 1-7

years -- 50 y e a r s
51 y e a r s -- 60 y e a r c /-
Above 60 pears L3
5. Religion: Christainity 1 - 1 Islamism -I/
Trsditional /
-/ others 1
-
6. To which income g r o u p do you b e l o n g ?

More t h a n i435,000 / /
6. (a) 00 y o u e a t p o r k ? Yes /- No /-.-7
(b) I f y e s , why - -
(c I I F NU, dhy -
, How o f t e n do you e a t p o r k ?
I rr ,-1
10. HOVI is t h e p i c e o f p o r k in r e l a t i o n t o o t k r

sive /7
11. i i ~what p r i c e 2 e r hilcpamme do you h i y p o r k ?

12. I f o f f e r e d c h o i c e which meat wohld y o u r a n k

Goat meat (chevon) / /

53. How do y o u u s e p o r k ?

As stew meat /'?or 7


c o o k i n g sou& /7
A s r o a s t d d neat
-1 6s f r i e d meat 1-/'

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