BETTER LIFE FOREVER COMMUNITY BASED

ORGANISATION
Registration Certificate No. MNF/315
“PIGGERY PROJECT”

BUSINESS PLAN PROPOSAL (2018-2022)

PREPEARED BY: WANAMBWAH FRED MUNGOMA

EXECUTIVE DIRECTOR: WANAMBWAH FRED MUNGOMA.

SISUNI PARISH

MANAFWA DISTRICT LOCAL GOVERNMENT,

TEL: O772 997718 / O772 576110

Email:fwmungoma@gmail.com

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 TABLE OF CONTENTS

Table of contents………………………………………………………………………….
Executive summary………………………………………………………………………..

CHAPTER ONE:
1.0 Business description…………………………………………………………………….
1.1 Mission of the business……………………………………………………………….
1.2 Vision………………………………………………………………………………..
1.3 Objectives of the business…………………………………………………………..
1.4 Positioning Statement………………………………………………………………
CHAPTER TWO
2.0 Marketing and sales………………………………………………………………………….
2.1 Target marketing……………………………………………………………………………
2.2 Customers’ location……………………………………………………………………….
2.3 Why they might buy…………………………………………………………………………
2.4 When they might buy……………………………………………………………………..
2.5 Market trends………………………………………………………………………….
2.6 Growth potential………………………………………………………………………
2.7 Market growth……………………………………………………………………………
2.8 Power of supply…………………………………………………………………………
2.9 Threat of new entrants……………………………………………………………….
2.10 Power of the buyers………………………………………………………………..
2.11 Threats of substitutes………………………………………………………………..
2.12 Rivalry amongst firms……………………………………………………………….
2.13 Small scale piggery farms………………………………………………………………
2.14 Medium sized piggery farms……………………………………………………………….
2.15 Marketing strategies……………………………………………………………….
2.16 Market intelligence………………………………………………………………….
2.17 Market portioning……………………………………………………………………
2.18 Sale and distribution………………………………………………………………….
2.19 Deliveries……………………………………………………………………………
2.20 Packaging……………………………………………………………………………
2.21 Promotion…………………………………………………………………………….

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CHAPTER THREE
3.0 Research and Development……………………………………………………………..
3.1 Research………………………………………………………………………………….
3.2 The Industry………………………………………………………………………………
3.3 The Pork Industry………………………………………………………..
3.4 Legal aspects on food additive…………………………………………………………….
3.5 Price determination in the piggery industry………………………………………………….
3.6 Stages of price determination………………………………………………………………..
3.7 Systems of price discovery for farm products……………………………………………….
3.8 Cost analysis of piggery industry……………………………………………………………..

CHAPTER FOUR
4.0 Operations……………………………………………………………………………
4.1 Location…………………………………………………………………………………
4.2 Physical space and facilitates……………………………………………………………..
4.3 Production processes………………………………………………………………………..
4.4 Quantity and quality of labour…………………………………………………………………

CHAPTER FIVE
5.1 Management and organization………………………………………………………………
5.2 5.2 Management structure…………………………………………………………………..
5.3 Management………………………………………………………………………………
5.3.1 Roles and duties……………………………………………………………………….
5.3.2 Finance manager………………………………………………………………………..
5.3.3 Technical manager…………………………………………………………………………

CHAPTER SIX
6.0 Financial Analysis………………………………………………………………………………
6.1 Source and uses of funds…………………………………………………………..
6.2 Finance state…………………………………………………………………………….
6.3 Supplies payment……………………………………………………………………………….
6.4 Debt relief………………………………………………………………………………………
6.5 Projecting statements…………………………………………………………………………..

CHAPTER SEVEN

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7.1 Risks and Problem facing Piggery farm operators………………………………………

CHAPTER EIGHT
8.1 Research and Feasibility Study:…………………………………………………………..

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 EXECUTIVE SUMMARY

Better Life Forever is a Community Based Organisation was formed, registered as a CBO
UNDER Reg. No: MNF/315 in 2011 by a group of over 473 People with a common purpose of
eradicating Poverty among households spread over 10 Lower Local Governments in Manafwa
District Local Government headed by Wanambwah Fred Mungoma. Well aware of the
challenges facing the community and limited by the capacity to uplift their statusquo, strained by
available resources and being held hostage by their inability to have a decent living, Poverty has
been the way to go in this community and the efforts to see themselves out of this problem has
come with a lot of lamentations and self-sacrifice.

It is upon this very humble background that Better Life Forever Community Based Organisation
has interested itself in engaging the entire community in reducing the burden of poverty and
thereof, increasing their household incomes through initiating income generating activities.

The Organisation is slated to start a piggery farm as its business in December 2018 and is fully
registered as a Community Based Organisation. The Organisation is planning to operate on a five
acre piece of land located in Sisuni Sub-County.

Better Life Forever Community Based Organisation will majorly deal in selling piglets to
prospecting farmers, then in the third year, sell mature pigs. The market is already assured
because pork is a serious delicacy in the area and beyond. The major needs the farm intends to
solve include; construct a shade, secure the required number of pigs and tools to that effect.

In order to strengthen her role in the Piggery industry, Better Life Forever Community Based
Organisation has decided to put together a five year business plan to act as an operational guide
and tool for mobilizing resources. In order tom implement this plan, the Organisation will require
1,562,110,000/= (USD 411,082) of which the promoters are expected to contribute 5 acre piece
of land valued at a cost 5 million per acre.

The business is expected to generate a net profit of 134,220,000/= in the second year,
201,330,000/= in the 3rd year, 301,995,000/= in the fourth year and 452,992,500/= in the fifth
year. For this to be realized, Better Life Forever Community Based Organisation will need to
tighten her cost control mechanisms while at the same time increasing sales.

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CHAPTER ONE: INTRODUCTION

5.0 Business description

If you stayed in Manafwa District, Sisuni Sub-County in particular for some time, you will
notice that Sisuni S/C is still a virgin area in Piggeries that will offer the best Pigs for Pork.
People within Sisuni and Manafwa District find it hard to get the right Pigs to slaughter for Pork,
and many are disappointed by what they see that goes on. The idea of setting up a Piggery
project was conceived by Better Life Forever Community Based Organisation, an Organisation
headed by Wanambwah Fred Mungoma, then others constituting; Mwalye Pius,Nalela Richard
Natanga John, Mungoma Jude Ted, Kimono Jenipher, Naikoba Olivia, Weyusya Joseph,
Mabonga Cyrus Damascus, and Matembu Deo, Wamalero Bosco. They felt that, with the skills
they had and the research they had made, as a group they would venture out in the Piggery
business.

Better Life Forever Community Based Organisation will deal in Pigs, Distribute over 16,000
piglets to households to fight household poverty, rear 9000 piglets in the constructed pig pen, sell
mature Pigs to Pork joint owners for slaughter and also supply pigs and piglets to prospecting
farmers within and beyond. The farm is going to be organized in the way that, it will
subsequently become a model and demonstration Centre for other categories of farmers.

We hope to use the following factors for our business to enjoy a unique position:

 Good feeding and care for the pigs which will include; feeding them well, routine
checks with the help of a Veterinary Doctor.

 World class services provision. This will include offering customer care with what they
order for to the best of our ability and in the shortest time possible.

 Excellent Hygiene. We hope to maintain hygiene standards as required by the health

inspectors so that our pigs remain healthy and win the confidence of our buyers.

 Select exotic breeds that mature within a short time.

The above factors will enable the pigs to grow well and also for the members to benefit from the
business in the long run.

We hope to start supplying Pork to established entities such as; hotels and Sausage
manufacturers after three years of operations.

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1.1 Mission of the business
To link up small rural farmers with the unsatisfied existing urban market.

1.2 Vision
To be the leading supplier of high quality Pigs and Pork seller in Sisuni, Manafwa business area
and the outside world not limited to Kenya, South Sudan.

1.3 Objectives of the business

- To provide the missing link between the rural farmer and the existing outside market to
avoid exploitation
- To provide employment to rural youth through active participation in project activities.
- To offer quality service and timely delivery of our products.
- To ensure poverty reduction and increased household incomes.
- To provide affordable and customer care services

1.4 Positioning Statement

Value for money

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 CHAPTER TWO

6.0 Marketing and sales

2.1 Target marketing

Better Life Forever Community Based Organizations’ Piggery project targets all categories of
people within and outside Sisuni, because Pork is considered a serious delicacy in the locality.
Also prospective Buyers from other areas like The Republic of Kenya, Tororo district, Malaba
Town Council, Manafwa Town Council and Mbale Municipality among others will be
considered.

2.2 Customers’ location

The prospective customers for both pigs and the products are located within Sisuni and far away
areas like Tororo District, Malaba Town Council, Butiru Town Council, Manafwa Town
Council, Lwakhakha Town Council, and Mbale Municipality among others. After three years,
the members intend run Pork Butcheries and also supply meet who sale buyers. Our potential
customers often use routs as they transverse the area in search for fairly priced but quality pigs
and pork.

2.3 Why they might buy?

Pocket friendly prices, fast and quality services; many of those customers are usually on tightly
scheduled days, so want fast and better service.

The price of piglets will be at 40,000/= compared to other competitors who do sell between
80,000 – 100,000/= which will create a higher multiplier effect in the community and hence
addressing the challenge of poverty and low household income.

The prices of pork will be at market friendly charges of 8,000/= compared to what is currently
offered on the market of 10,000 – 12,000/=. This will create a competitive edge over others.

Price matrix

Market Price of piglet Price of pork Mature pig Area

SISUNI 40,000 8,000 150,000 Rural
KENYA 120,000 15,000 400,000 Urban
MBALE 80,000 12,000 300,000 Urban
TORORO 90,000 12,000 300,000 Urban
MALABA 100,000 12,000 400,000 Urban

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Conducive environment; customers are looking for nice and descent places where they will feel
with the products therein.

2.4 When they might buy

A programme will be made with customers through communication to seasoned ones and also
advertise through the radio medium for awareness purposes.

Customers from distant places will be informed through emails and mobile telecommunication.

2.5 Market trends

Due to the ever increasing population growth and high rural-urban migration coupled with the
increase in income, there lies a huge unsatisfied market need.

2.6 Growth potential

The potential of the community to rear this animals and the multiplier effect that will come with
it will tremendously increase the market size, production and productivity levels.
We intend to distribute at least 4 piglets to each household with a total population of over 12,000
people and a household coverage of 4,000 homesteads.
The industry at large got a great upward as result of recent suggestions or the upgrading of Sisuni
to Sub county status and neighboring centers to Town Councils, thus a great number of new
customers and market entrants.

2.7 Market growth

The market will grow due to estimated growth in population.

The general increase in income will increase the customer’s real income.

There will be increase in technological development leading to improved and better service in
the industry.

The farm is to get fridges for storage of pork and other packaging machines that will help in
safety and preservation to mitigate losses associated with poor storage.

2.8 Power of supply

The venture attracts a large number of buyers who are heavily concentrated and willing to
engage into piggery farming and enjoy pork as a delicacy.

The specific suppliers are also faced with high competition amongst them due to lack of market
intelligence making the switching cost very low for the customers.
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The capacity of the organisation to have at least 4 refrigerated trucks that will distribute the pork
to prospective buyers.

Availability of pickup trucks that will assist in delivery to our sister stations of Mbale
Municipality, Bukhofu supply center, Bukhadala supply station, Butiru Town Council
Operations area, among others will in a long way increase our supply channels and increase
market coverage.

The trucks will help pick up animal wastes for use in other sister projects of afforestation and bee
keeping.

2.9 Threat of new entrants

The entry barriers are relatively high and exit barriers are low. New firms enter the market and so
many poorly performing firms easily exit the industry. Hence the profit potential is stable.

But through adequate management skill/capital sourcing and strategic marketing using quality
and service leader focusing in a particular niche we will penetrate the market.

2.10 Power of the buyers

Power of the buyers is relatively high but due to large number of customers in the market, it
eliminates strong competitors’ rivalry. Though; due to low switch costs and pigs and pork prices
being a repetitive cost of the buyer’s income, it is a threat. But due to the superior package of
offer, the buyers will not resist; this includes good prices, quality products, hygiene, strategic
location and good customer care.

2.11 Threats of substitutes

At present, there is no potential known prospect of products that can substitute pork and thus no
threat due to substitutes exists.

2.12 Rivalry amongst farms

This could be divided into three levels
1 – Small scale Piggery farms
2 – Medium sized piggery farms
3 – Large scale piggery farms

2.13 Small scale piggery farms

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These are found in homesteads and are individually owned, but there are a handful near where
we plan to set up. These keep pigs and sell to all, then again buy piglets and restock. Their major
strength is timing but they have major weaknesses; poor premises, poor quality products and
hygiene environments, language barriers and poor management strategy.

These have unsatisfactory performance but an opportunity exists for improvement but is not
capacitated to handle the changes.

2.14 Medium sized piggery farms

We look at piggery and pork businesses, with the capacity to serve a huge number of customers,
and for pork joints to meet customers’ needs. These have got reputation as main strategy that is
to say quality service and technology and have a large capital base. They even have fridges for
preservation. These are major competitors for they target a different market segments.

2.15 Marketing strategies

Here, Better Life Forever Community Based Organisation is identifying its strategic group. This
is a group of farms following the same strategy in a given market.

Here, through market and development, the farm will venture into slaughter and sausage
manufacturing, packaging and sell fresh pork.

It is to differentiate its self along quality aspects.

High preference will be given to branding of our products and this will range from packaging,
trucks for delivery.

Establishment of free internet café at all our distribution centers / channels which will ease
communication between management and the donor community.

2.16 Market intelligence

Through continuous market intelligence, the farm is to identify its rivalry objectives drives and
behavior.

- Profit maximization
- Market share
- Cash flow
- Expansive plans

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The management has carried out research on the three main niche competitors which as below;
Table 2.1: Competitors
Piggery farm Customer care Product quality Product availability Selling staff
Buwabuyi farmers G E G G
Organisation (215
Members)
Busumbu farmers P F G F
Organisation (105
Members)
Manafwa Piggery P E E F
project (76
Members)
N.B: E –Excellent, G –good, F – fair, P– poor
Our co-operation with other Community Based Organisation in similar business will be
leveraged by our capacity to providing the missing link between them and the outside market
which will in the short or long run reduce competition and better returns on their products thus,
increased productivity levels, returns on investment hence fighting household poverty.

2.17 Market portioning

Share of market: competitor’s share of the target market

Share of mind: the percentage of customers who named the competitors when responding to the
statement “Name the Pork dealer that comes to mind”.

Share of heart: The percentage of customers who named the competitors in responding to Pork
dealer “Name the Pork dealer from whom you would prefer to buy.

In carrying out the study above, the premise was to attack the following: Buwabuyi farmers
Organisation, Busumbu farmers Organisation and Manafwa piggery project on customer
awareness by carrying out intense promotion activities in niche market then attack Manafwa
Piggery project on quality through its skills, employees and supply channels and then attack
Busumbu farmers Organisation on selling staff through hiring of staff with customer care skills.

The prices, and hygiene and leave those without glaring weakness.

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Table 2.2: Pricing
Pork Dealer Average @Kilogram Average @ Piglet
Buwabuyi farmers Organisation 8,500 100,000
Busumbu farmers Organisation 8,500 80,000
Manafwa Piggery project 9,000 90,000
Better Life Forever Community Based 8,000 40,000 – 50,000
Organisation

Better Life Forever Community Based Organizations’ Piggery Project’s proposed price will rule
for the first 6 months assuming the inflation rate remains constant.

This will serve as a strategy for market penetration and customer creation, we will look at
turnover instead of profit margin per order.

2.19 Sale and distribution

The sales persons will be 5 men who are going to be in the house built.

First by training them on how to handle pigs and also how to preserve pork hygienically.

And also orient them towards active order getters other than the traditional passive order takers.

An order with cash is going to be the system used, where one will be the cashier while other will
be taking measurements for order sought by customers.

We hope to increase on our distribution channels across the catchment area of Bukhofu,
Bukhadala, Butiru Town Council, and Mbale Municipality.

2.20 Deliveries
This is going to be an option for the farm’s customers within the first six months and an extra
1000/-sh. will be charged using our refrigerated trucks and pick-ups.

Potential customers will make their orders on phone and pay upon delivery or press weekly
orders that will be prepaid.

2.21 Packaging
Environmentally friendly, high and quite stylish materials are going to be used.

The other packaging bags will bear Better Life Forever Community Based Organizations’ logo.
These will be brought from print pack Uganda.

2.22 Promotion
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The target market is local and of average middle class; businessmen, traders and travelers.

The main promotion package will include:

Television 40%
Radio 30%
Brochure 10%
Discount 20%
After six months assuming already with market penetration and customer creation,
Discount 20%
Brochures 30%
Radios 50%

Conclusion
There is room for Better Life Forever Community Based Organizations’ piggery business in the
market.

Market penetration, customer awareness and retention are to be the foremost objectives for the
first six months.

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 CHAPTER THREE

7.0 Research and Development

3.1 Research
It is an organized, systematic, data based. Critical, objective, scientific inquiry or investigation
into a specific problem, encountered in a given setting and undertaken with purpose of getting
solutions

3.2 The Industry

A cornerstone of Uganda’s economy, Pork business is one of the nation’s largest sector
employers, generating an appreciable annual economic impact. Every shilling spent pigs and its
products generates over two shillings for other industries. A recent survey ranked Ugandans as
the leading Pork consumers in Africa, indicating better market prospects for piggery and pork
dealers. Today, consumers spend approximately 05% of every shilling on Pork, purchased in
happening places and Butcheries for home consumption. Pork is now considered integral part of
Ugandans life.

3.3 The Pork Industry

As part of the Piggery industry, pork segment is still on the list of the hottest. To get an idea of
how strong the demand for Pork, one only needs to look at Uganda’s facility growth. In 1997,
there were just over 2,000 Piggery and Pork dealers listed in Uganda. There are now over 30,500
adding over, 1,005 for the first half of 2015 or 9.42%. The Pork demographics represent those
with some of the highest levels of disposable income aging into more disposable income and
more discerning tastes.

3.4 Legal aspects on food additive

Under the food additives amendments of 1958, all additives in use prior to January 1 st 1958 and
not deemed by qualified aspects to be safe on the basis of either appropriate scientific tests or
experience in common use in Pork are subject to approval by the FDA.

Petition for a regulation governing the conditions undertaken by a food additive may be used and
must contain full information concerning its identity composition, proposed use and effect,
analytical determinations and toxicity.

Unless exempted from regulatory control, the use of an additive is subject to regulations that will
prescribe the pork and its products under which it may be safely used; a specific maximum limit

15
of use, the manner of addition or use, directions labeling and packaging requirements and other
conditions of use.

3.5 Price determination in the Piggery industry

This is the process by which the broader forces of supply and demand establish a general market-
cleaning equilibrium price for commodity.

The Piggery industry is highly run by price discovery. This is the process by which buyers and
sellers arrive at a specific price for a given lot of produce in a given location. This has been
found to be advantageous because it makes it possible for buyers and sellers to shop around
alternatives and to bargain on prices and other terms of trade.

3.6 Stages of price determination

Application of the estimated price to a specific trade, taking into consideration grade premiums,
quality discounts, buyers and sellers services and bargaining power. Evaluating the supply and
demand forces and establishing the market clearing price. Error at both levels can be minimized
and price discovery improved by high quality market information and grading programs.

3.7 Systems of price discovery for farm products

Individual, decentralized negotiations (private treaty negotiations)
Organized central market trading (terminal markets and auctions)
Formula pricing
Bargaining prices (Pork, fruits and vegetables)
Administered prices (Pork, feed grain and food grains)
Variation in pricing efficiency of these systems results from;
Amount of price information they generate
Freedom allowed buyers and sellers in arriving at prices (trading skills)

Relative bargaining strength conferred on both buyers and sellers

Below is a detailed comparison of established price discovery methods in the piggery

industry:
Individual, decentralized negotiations
Prices discovered tend to vary widely for different transactions
High times and energy costs
Organized central market trading
Create a considerably more information than privately treaty markets
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 Prices for individual transactions are likely to be more uniform
Formula pricing
Reduce transaction and bargaining costs
Formulas can become obsolete
Pork and its products that can be stored or withheld from the market
Administered
Price supports
Price ceilings
Supply control programs are applied

3.8 Cost analysis of Piggery industry

This is the process of analyzing total costs, which include all factors of inputs for any product
sold. Total cost re made up of both fixed and variable costs.
Research has availed the following as the costs:
Fixed costs
Depreciable
Equipment – itemized
Buildings
Non depreciable
Land building repairs property taxes
Insurance
Director’s emoluments
Storage costs

Variable costs
Labour wages – list per worker
Ingredients
Packaging materials
Equipment repairs
Utilities
Interest on loans

Production
Units per day

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Units per year
Inventory
Units sold
Revenue
Price per unit
Units sold per year
Shipping costs
Below is a set of formulas by which an estimate can be calculated for an average annual cost
that can be compared to the average annual price received for the products,. These costs are
based on the actual or estimated volume or capacity of production.
NP = TR – TC
Net profit [NP] = Total revenue [TR] – Total Costs [TC] for one year.
TR = Q x P
Total revenue [TR] = total number of items sold [Q] x price of each item sold [P] throughout
the year.
TC = TFC + TVC

TC = Total fixed costs that do not vary during the year

TFC = annual costs that do not vary during the year

TVC = Cost that will vary with production levels

AVC = TVC/Q
Average variable cost [AVC] = total variable costs [TVC]/Number of items sold [Q}

AFC = TFCQ

Average fixed costs [AFC] = Total Fixed costs [TFC]/Number of items sold [Q]

ATC = TC/Q

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 CHAPTER FOUR
8.0 Operations
4.1 Location
The Piggery business will be located in Sisuni Sub-County, Sisuni Parish. It will be located on a
five acre land, which is enough for future expansion.
However, the organisation will have different sales points located in areas such as Bukhofu,
Bukhadala, Butiru Town Council, Mbale Municipality, Tororo, Malaba border point to Kenya
among others deemed necessary for growth and expansion of the enterprise.
This

This location will have the following advantages:

 Its proximity to the road will enable us to easily serve customers.

 Transportation costs for the pigs and pork will be low since their sources aren’t far from
the business.

 Labour for use in the piggery business is readily available and at low costs.

 The pork dealers’ location makes it convenient in the evening for use by those rushing
home after work. Also its location near the road makes it convenient for pork dealers
from distant places to access and purchase mature pigs for slaughter and also buy pork on
wholesale.

 Water and electricity facilities are readily available in the proposed location for the
business.

 Space for expansion of the business is readily available

However, the seasonal changes especially drought may affect the health of the pigs if not
handled well, which the management institute measures to mitigate.

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Table 4.1: Projected annual marketing expenses

ITEM Amount(000shs)
2018 2019 2020 2021 2022

Radio 400 420 441 463.05

Adverts
Product 7,200 7560 7938 8334.9 8751.645
Distribution
Costs
Public Public 420 441 463.05 486.2025
Address Address
Systems Systems
Product 300 315 330.75 347.28 364.6519
Leaflets
Total 10,600.00 12,030.00 14,481.50 16,608.28 18,453.35
Expenses

4.3 Equipment and their Sources

The major equipment that BELIEVE will require in order to operate the business includes a
motorcycle, weighing scale, feeding troughs, and pick –up truck in the third year of to our
distributors or customers. BELIEVE will purchase the pick-up truck in the third year of
operation (2020) the number and cost of the equipment are indicated in the table below;

Table 4.2: List of tools and equipment

Item Quantity Rate Amount

Hillux pick up 2 80,000,000 160,000,000
Weighing scale 3 200,000 450,000
Motorcycle (BAJAJ) 3 4,500,000 13,500,000
Refrigerated trucks 4 100,000,000 400,000,000
Internet café 5 5,000,000 25,000,000
Furniture Assorted 20,000,000 20,000,000
Computer accessories Assorted 15,000,000 15,000,000
Office phone 2 1,000,000 2,000,000
Stationery Assorted 5,000,000 5,000,000
Refrigerators 5 5,000,000 25,000,000
Generators 5 2,000,000 10,000,000
Total 675,950,000

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4.4 Organization and Management plan.

4.4.1 Management plan

There will be aboard of directors and workforce of 5 employees headed by the general Manager.
The managing directors and the operations and marketing manager will be selected from the
board of Directors. Better Life Forever Community Based Organisation is governed by the board
of directors. The board is responsible for policy formulation, resource mobilization and
monitoring the overall operations of the Community Based Organisation

Better Life Forever Community Based Organisation will have a board of directors as the overall
body in charge of making policies that will be complied with by the management and the entire
staff.

The board of directors will comprise of the shareholders and will be assisted by other technical
persons appointed from time to time.

4.4.2 Management Chart

4.4.3 Personnel Plan

The day to day running of the operations of Better Life Forever Community Based Organisation
will be carried out by the management team headed by the General Manager will be supported
by Operations and marketing manager, a part time accountant (four the first 3 years ), 2 sales
executives and number of casual laborers.

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4.4.4 Human Resource Plan
The Community Based Organisation intends to forecast future demand and supply of labour so
as to determine the required number of employees that will be hired. More still the management
will carry our continuous appraisals to try and check the performance of its staff and use it as
means of motivation.

The recruitment plan will majorly be through referrals and head hunting in a bid to get the best
staff.

Table 4.3: Personnel requirements and annual costs

Designation No Monthly Salary Social Benefits Total Monthly Total Annual

General Manager 1 2,000,000 400,000 2,400,000 28,800,000
Operations and 2 1,800,000 200,000 2,000,000 24,000,000
marketing manager
Casual labourers 5 400,000 70,000 470,000 5,640,000
Accountant 1 1,500,000 180,000 1,680,000 20,160,000
Drivers 5 500,000 80,000 580,000 6,960,000
Training of workers - 3,000,000 36,000,000
Total 10,130,000 121,560,000

NB. Social benefits include NSSF contributions, medical and welfare contributions for staff on
full time employment. Better Life Forever Community Based Organisation expects to employ a
full time account in the 4th year of operation. In the first 3 years, Better Life Forever Community
Based Organisation will rely on using part time accounting services from competent accounting
firms.

Better Life Forever Community Based Organisation expects to increase the salaries and wages
for employees by at least 10% for the next five years in order to be able to attract and retain
skilled personnel. This is due to the fact that the demand for labor is expected to increase as
many people venture into business and the fact that employees will be more expectant in terms of
remuneration.

4.5.5 Farm Requirements

Piggery pens and a constellation of things and equipment that will be required for the day to day
running of business in the farm are listed in the table below.

Table 4.4: List of farm requirements

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Item Number Unit cost Amount
Piglets 25,000 120,000 300,000,000
Feeds 5,000 bags(maize bran) 85,000 425,000,000
Vaccination No factored - -
Protective gear No factored - -
Total 725,000,000

4.4.6 Overhead and administration

Table 5.5: Construction of Piggery pen
Item Number Unit cost Sub-Total
required
Iron sheets 100 (28 Gauge) 50,000/= 5,000,000/=
Poles 100 22,000 2,200,000/=
Timber 2000 FT 1500 per feet 3,000,000/=
Cement 100 bags 33,000/= 3,300,000/=
Nails 100KGs 8,000/= 800,000/=
Aggregates 10 Trips 350,000/= 3,500,000/=
Hardcore 20 Trips 120,000/= 2,400,000/=
Bricks 5000 Bricks 200 per brick 1,000,000/=
Sand 12 130,000/= 1,560,000/=
Trips
Water tank 1 1,000,000/= 1,000,000/=
Wheel barrow 2 120,000/= 240,000/=

Other farm tools - - 5,000,000/=

Grand total 29,000,000/=

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 CHAPTER FIVE

5.0 DEPRECIATION AND PROJECTED INCOME

5.1 Depreciation
Depreciation has been calculated on a straight line method and rates used for depreciating the
assets are as follows;

Land and buildings 2.5%

Wheel barrow 10.0%

Furniture and fittings 12.55%

Motor vehicle 20.0%

6.3.7 Net profit

The business is not expected to generate profits in the 1 st year of planning period. It will generate
according to our estimates a net profit of 134,220,000/= in the second year, in the third year,
201,330,000/= in the 3rd year, 301,995,000/= in the 4th year and 452,992,500/= in the 5th year. For
this to be realized, Better Life Forever Community Based Organisation will need to implement
stringent measures on costs while at the same time increasing sales.

6.3.8 Projected production volume

The projected sales volume has been based on the following assumptions:

Capital equipment to operate all day long

Working fourteen (14) hours a day

Full utilization of all resources

Table 6.1: Projected Income Statement

Item Piglets Mature pigs Sub-Total

Year 1 50,000*62500 - 3,125,000,000/=
Year 2 50,000*125000 - 6,250,000,000/=
Year 3 50,000*250000 10,000*200,000/= 14,500,000,000/=
Total 23,875,000,000/=

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NB.

120,000/= represents the price of piglets in the 1st year

130,000/= represents the price of piglets in the 2nd year

140,000/= represents the price of piglets in the 3rd year

900 Represents the number of piglets in the 1st year because they produce twice in a year.

2400 Represents the number of piglets in the 2nd year because they produce twice in a year.

230 Represents the number of piglets in the 3rd year because they produce twice in a year.

100 Represents the number of pigs to be sold in the 3rd year

400,000 Represents the number of mature pigs to be sold in the 3rd year.

As envisaged above, the farm will not make any profits because the earnings in the 1 st year will
cover up the costs incurred to set up the farm, but in the 2 nd year will be able to make a
substantial profit and so is the 3rd year.

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 APPENDICES

APPENDIX 1:
STATEMENT OF CONFIDENTIALITY

(DISCLAIMER)

This plan is confidential and is the property of Better Life Forever Community Based

Organisation. It is intended only for use by the persons to whom it is presented and any

reproduction or divulgence of any of its contents without written permission of the Community

Based Organisation is strictly prohibited.

It is the original work of the owner and has never been presented to any institution before.

NAME- WANAMBWAH FRED MUNGOMA SIGN---------------------------------

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