Piggery Value Chain

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TABLE OF CONTENTS

1.0 INTRODUCTION ....................................................................................................................3


2.0 PRODUCTION POTENTIALS ..............................................................................................5
3.0 CONTRIBUTIONS AND BENEFITS ....................................................................................5
4.0 PRODUCTION SYSTEMS AND PATTERNS .....................................................................7
4.1. Production Zones ........................................................................................................................7
4.2 Production Systems.....................................................................................................................7
4.3 Types of Piggery Enterprises ...................................................................................................9
4.4 Diseases of Pigs ........................................................................................................................10
4.4.1 Pre-weaning period ...................................................................................................................10

4.4.2 Post-weaning period .................................................................................................................12

4.4.3 Breeding stock ..........................................................................................................................13

4.5 African Swine Fever .................................................................................................................14


5.0 OUTPUT AND PRODUCTIVITY LEVEL .........................................................................14
5.1 Enterprise Cost-Return Analysis ..............................................................................................14
5.1.1 Assumptions and Timelines ......................................................................................................14

6.0 PROCESSING ACTIVITIES ................................................................................................17


7.0 MARKETING ACTIVITIES ................................................................................................17
7.1 Marketing Channels in Pig Value Chain in Delta State............................................................17
8.0 PIG VALUE CHAIN CHALLENGES AND CONSTRAINTS ..........................................18
8.1 Challenges and Constraints ...................................................................................................19
9.0 COMMODITY ASSOCIATION ...........................................................................................20
9.1 Aims and Objectives .................................................................................................................20
10.0 INVESTMENT OPPORTUNITIES AND POSSIBILITIES ..............................................21
REFERENCES........................................................................................................................22

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1.0 INTRODUCTION

Pig (Sus scrofa), a monogastric animal, with its huge potential and

profitability, remains a very lucrative livestock venture with a capacity of

ameliorating the hunger problem and safeguard the future of the nation’s food

supplies as well as a veritable tool for curbing the increasing unemployment

occasioned by the current economic downturn. Ekarius (2008) defines pig as a

farm animal with hoofed feet, short prickly hair and a long snout used for digging

and is the oldest domesticated animal. It is omnivores and is a highly social and

intelligent animal. It has the potential to be highly prolific, because it is capable

of producing many litters after a relatively short gestation period.

Pig farming is one of the most important livelihood options that provides

clear opportunities for improving the livelihood and income of farmers in a

sustainable manner. It can easily be integrated into small-scale farming systems

and in spite of the cultural and religious reservations in some parts of the country,

the industry continues to enjoy the support and patronage of many Nigerians. The

breeding and rearing of pigs for domestic and commercial purposes have gained

more attention in recent time due to the rising demand, especially for dietary

purpose; thus, creating more market for those in the piggery enterprise (National

Agricultural Sample Survey, 2011). The importance of pigs in the livestock

industry in Nigeria cannot be over-emphasized. Although pigs represent about

4% of the total domestic livestock in Nigeria, they display a unique ability to

adapt and survive in areas where they are found (Ajala et al., 2006). Some of
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these unique characteristics include but not limited to high survival rate, very

good efficiency of feed utilization which brings better returns per units of inputs

than most other livestock, high prolificacy, having 10-15 piglets per litter and

ability to farrow two times per annum (Akinyosoye, 1999). These inherent and

unique characteristics have made its production more economically viable

compared to other farm animals and offer good incentives to boosting piggery

enterprise so as to improve the economic status of the farmers as well as their

nutritional wellbeing. Despite the economic leverage and nutritional advantages

of pig, its production still remains the least when compared to other livestock sub-

sector (poultry, goats, sheep and cattle) in the country in terms of meat supply

(Central Bank of Nigeria, 2008).

Pig enterprises are commonly used for food for the family as pigs grow at

a fast rate and are prolific. They provide a good source of animal protein

representing one of the fastest ways of increasing animal protein consumption in

households. Pigs can be considered as potential protein deficit gap-fillers. Pigs

are importantly also raised as a source of additional income and investment in

case of hard times. The additional income is especially important for women.

Incomes derived from the sale of pigs are usually spent on the acquisition of

household goods and in meeting social and cultural obligations (Ajala et al.;

2006).

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2.0 PRODUCTION POTENTIALS

Pig farming has great potential in Nigeria: thanks to urbanisation and

increasing disposable income among urban workers, pork consumption habits

have changed radically. Previously, regions in the South were the centres of pork

consumption but recently the demand for pork has increased in most towns and

cities all over Nigeria. The prospects for pork consumption are further enhanced

by the fact that the supply of beef, which accounts for over 70 percent of meat

consumption, is largely unsustainable.

Delta state has suitable agro-ecological conditions for rearing of pigs;

hence pig can be grown in all parts of the state, Delta North, Delta Central and

Delta South. With the growing population and increased government intervention

in the pig sub-sector, Delta has the potential to increase pig production to bridge

the demand gap.

3.0 CONTRIBUTIONS AND BENEFITS

Livestock production is an important part of the national economy and an

integral component of state and local economies. The production of livestock, as

well as other commodities, causes ripple effects throughout the economy in the

form of employment; production in allied industries; taxes paid to local, state and

federal governments; indirect impacts from purchases of input supplies; and

induced impacts from household spending throughout the state. Pig farming

contributes largely to the food production and security of the country as well as

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the generation of revenue by localising the production of pork

products. According to Ugwu, (1996), animal protein apart from palatability is

essential for normal physical and mental development of man. Pig industry in

Nigeria is an important aspect among the livestock sub-sector in the overall

agricultural sector. This assertion derives from the fact that pig production has

high potential to contribute to high economic gain in three ways. Firstly, pigs

have high feed conversion efficiency, early maturity, short generation interval

and relatively small space requirement. Secondly, they are multipurpose animals

providing about 40% of meat in the world market. Pig’s dung serves as a good

source of organic manure for enriching poor soils and provision of biogas

(methane) for cooking. Thirdly, pig’s skin is also useful for light leather

production (Babatunde and Fetuga, 1990). According to Food and Agriculture

Organization (FAO, 2001), pork is the most popular meat consumed in the world

today, forty percent protein is derived from pork and pork products. There is a

greater output of meat from pigs than the combined output of meat from cattle,

buffalo, sheep and goat. Pigs supply about 63.9 million metric tonnes of meat per

year (Dennis and Lutwama, 2012). In order to increase the quality and quantity

of animal protein intake in the country, past and present governments in Nigeria

have initiated various programmes aimed at enhancing pig production.

In Delta State for instance, the government in 2009 under its Youth

Empowerment through Agriculture (YETA) programme, trained prospective pig

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farmers. At the end of their training, 636 pig weaners, 450 in-pigs and the sum of

nine hundred and eighty-nine thousand naira (989,000) was shared to trainees as

starters pack (Ajieh and Okwolu, 2015). Also, the present administration in Delta

state through its Special Project Vehicle (SPV), the Job Creation Office, since

2015 (i) has supported 50 pig farmers with 10 grower pigs and N210,000 for

feeding and medication in it Production and Processing Support Programme

(PPSP) (ii) has trained and established 18 youths in pig enterprise and provided

a pig pen, 8 in-pigs and 2 boars as well as feeding/medication support as starter

pack for each of the beneficiaries in its Youth Agricultural Entrepreneurs

Programme (YAGEP) (iii) has supported 31 youths in pig enterprise, each with 8

in-pigs and 2 boars and N300,000 feeding/medication grant also in its YAGEP.

4.0 PRODUCTION SYSTEMS AND PATTERNS

4.1. Production Zones

The production zone in State include: Delta North, Delta Central and Delta

South. The records obtained from the Ministry of Agriculture Livestock

Department field officers show that in 2019, Delta North had the highest pig

farmers/population followed by Delta Central and Delta South MANR, Livestock

Department Field Report, 2021)

4.2 Production Systems

Production systems vary widely throughout the world, ranging from labour-

intensive systems to capital-intensive systems. The common types of production

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systems are as follows: -

(i) Free Range System. This is characterized by the following: -

a. Pigs roam freely in the neighbourhood.

b. Scavenge around for feed that are usually inadequate in quantity and

quality, hence supplemented with kitchen waste.

c. Little or no arrangement for shelter

d. Local breeds are used

(ii) Semi-Intensive

a. Confined to a limited space

b. Feeds and water are provided once or twice daily.

c. Feed consist of mainly fodders, kitchen refuse or agricultural

wastes.

d. Usually better feeding could be adopted in this system if necessary.

(iii) Intensive System

a. Pigs are completely confined

b. Pigs are well managed

c. High investment is needed

d. Quality feeds are provided

e. Improved breeds are used .

f. Animals are grown for the market

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There are other types of production systems being promoted by some scholars

and they include:

1. Organic Pig Production System, which requires pigs to be kept with

outdoor access to provide natural surroundings as, obtains in outdoor

systems.

2. Fermented Bed Technology, which requires pigs to be raised in houses

similar to conventional intensive systems but on deep litter. The

bedding encourages the natural behaviours of pigs such as rooting, and

feeds on the pig waste thus creating a living compost to improve soils.

Small-scale farmers new to pig farming are usually advised to commence

with a focus on adequate pig confinement using simple housing structures and

available local feed resources. This system may require significant input in time

and money but is aimed at producing meat for the market efficiently and

profitably

4.3 Types of Piggery Enterprises

A potential investor in pig farming should conduct a market feasibility in his

operating environment or target market, access the volume of investment capital

available to him and determine the type and level of knowledge and skill he

possess or can hire before deciding on the type of pig enterprise to embark on.

The enterprise options are as follows:

(i) Farrow to Wean Operation (Farrow Only Operation). It involves

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maintaining a breeding herd to produce weaners that are sold to

growing and finishing operators at the age of 58weeks. Weight at the

time of sales varies from 20-25kg.

(ii) Growing Finishing Operation (Finishing Operation). Pigs are

purchased as weaners or growers (20-25kg) and fed until weight of 60-

105kg).

(iii) Farrow to Finish Operation. This involves keeping a sow herd and

producing weaners that are finished by the same farmer within the same

farm.

(iv) Breeding Operation. This involves the production of breeding stock.

It is a very specialized enterprise that requires huge capital investment

and usually reserved for the experienced pig breeders.

In Delta state, the mostly practiced system of production is the small-scale

intensive system and a few medium-scale intensive system, followed by semi-

intensive and extensive. The farrow-to-finish operation and fattening operations

are common (MANR Livestock Services Department, 2018).

4.4 Diseases of Pigs

According to Zoe (2019), six most common diseases of pigs are:

4.4.1 Pre-weaning period

1. Exudative dermatitis (greasy pig)

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The symptoms of this disease are skin lesions, caused by an infection of the

bacteria Staphlococcus hyicus. In severe cases, mortality can occur, as the

bacteria damage the liver and kidneys. Lesions first present as dark areas of skin,

which spread and become flaky with a greasy feel. Antibiotics are used to treat

the infection, along with skin protectants; autogenous vaccines have also been

used with success. Improving hygiene in piglet housing is key to preventing this

condition, along with teat dipping of sows pre- and post-farrowing. It is also

important to reduce the potential for skin abrasions, as this is how the infection

enters the body. Abrasions are caused by rough floors, jagged teeth, sharp

equipment or even mange mites bites.

2. Coccidiosis

This disease is very common in suckling piglets and is caused by three types of

the intracellular parasite coccidia. It causes diarrhea, which can be bloody, often

between 10 and 21 days of age and up to 15 weeks of age. Acute cases are treated

with fluid therapy and coccidiostats. Secondary infections can result from damage

to the intestinal wall. Depending on the level of occurrence on the farm,

preventative treatment of sows with coccidiostats may be appropriate. Hygiene

should be improved to end the cycle of infection; sow feces are a major source,

and flies can spread infection. Providing a warm, dry, clean creep area will help

to reduce the parasite load and the likelihood of coccidial infection.

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4.4.2 Post-weaning period

3. Respiratory diseases

Coughing, sneezing, abdominal breathing, reduced growth rates and potentially

mortality are all signs of respiratory disease. Depending on the cause, antibiotics

may be given in feed, water or as an injectable. Poor ventilation or environmental

conditions can exacerbate respiratory conditions. For example, high levels of

ammonia can damage the respiratory tract, making pigs more susceptible to

infection. Infective agents include Streptococcus suis and Pasteurella. Vaccines

are available for some forms of pneumonia, although the strain affecting a farm

should be identified to ensure a successful outcome. Pleuropneumonia, caused

by Actinobacillus pleuropneumoniae, can result in significant mortality, and

those that do recover have impaired growth rates and lung damage. Overcrowded

and dusty housing are predisposing factors for respiratory disease, along with the

presence of PRRS virus.

4. Swine dysentery

Animals with this disease suffer from diarrhea, with or without the presence of

blood. It is caused by the bacteria Brachyspira hyodsenteriae. Growth rates of

post-weaning pigs are reduced, and, in some cases, sudden death can occur.

Antibiotics are used to treat the disease, either in feed, water or as an injectable.

Reducing stocking density can be an effective way of reducing infection pressure

and stress in the herd. As well as improving hygiene levels, rodent control is a

high priority; rodents are a vector for this disease. The strategy for buying and

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introducing replacement stock should be reviewed, as this a major route of disease

introduction.

4.4.3 Breeding stock

5. Mastitis

Reduced milk production, loss of appetite and a higher body temperature are

symptoms of mastitis in sows. It is caused by a bacterial infection of the

mammary glands, where skin discoloration can be seen. Antibiotics, along with

anti-inflammatory drugs are effective treatments. Oxytocin may be used to

encourage let down of milk and corticosteroids can be prescribed. Hygiene in

farrowing housing is important, along with nutrition during late pregnancy to

promote immunity. Stress can also be a factor, and it is important to make sure

that teats are not being damaged by sow housing facilities. This disease has a

significant effect on productivity because of the potential effect of reducing the

number of piglets weaned by sows.

6. Porcine parvovirus

If pregnant sows become infected with parvovirus (PPV), reproductive disease

can occur, but not in all cases. If it does, most commonly in gilts, reproductive

performance is significantly affected. Mummification and stillbirths occur,

resulting in small litter sizes. Other reproductive diseases have the same

symptoms so accurate diagnosis is essential. Unusually, the virus can survive

outside the host for several months, making it endemic in most herds. Although

it is only during pregnancy that PPV is a problem, other pigs can spread the virus.

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There are no treatments available; in order to prevent this disease routine

vaccination of gilts is advisable.

4.5 African Swine Fever

African swine fever (ASF) is a viral disease of pigs caused by an Asfivirus

in the family Asfarviridae which is highly contagious and often fatal (Ayoade and

Adeyemi, 2003). The first isolate of the virus from pigs in Nigeria has been

characterized by Odemuyiwa et al. in 2000. The acute disease in pigs causes

multifocal skin hemorrhages on the ventral abdomen, interstitial pneumonia,

acute orchitis and meningitis, lymphoid necrosis, and focal hemorrhages in

nervous tissues (Otesile et al., 2005). Outbreaks of the disease in the country

occurred in 1997, 1998, 2001, and the subclinical disease has persisted as an

enzootic condition (Otesile et al., 2005; Babalobi et al., 2007; Awosanya et al.,

2015)

5.0 OUTPUT AND PRODUCTIVITY LEVEL

In 2019, production of pig meat for Nigeria was 302,027 thousand tonnes.

Between 1970 and 2019, production of pig meat of Nigeria grew substantially

from 28,350 to 302,027 thousand tonnes rising at an increasing annual rate that

reached a maximum of 29.41% in 1984 and then decreased to 0.85% in 2019.

5.1 Enterprise Cost-Return Analysis

5.1.1 Assumptions and Timelines


(i) The enterprise start-off with 8 in-pigs (4-week pregnant) and 2 boars.

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(ii) The pigs have the ability to farrow twice a year.

(iii) The average liter size of the pigs is 9 piglets/sow.

(iv) Mortality rate within the period is 10%.

(v) The feeding and medication per pig is N300/day

(vi) It takes 8 months to attain a slaughter (market) weight of 80kg.

(vii) The price of slaughter weight is N1000/kg

(viii) Weaning is at 8 weeks old.

(ix) It takes one month before a sow is serviced again after weaning.

Table 1. Timelines of activities in a Farrow-Finish scheme


Month Activity Outcome No of Less No of No of
Piglets 10% Weaners Grower/
(8 pigs mortalit mature pigs
x9 y
litters)
0 Purchase of 8 in-pigs - - -
(4wk pregnant)
3 1st Farrowing piglets 72 64
5 Weaning 1st 64
weaners
6 Service
10 2nd Farrowing piglets 72 64
11 Sale of 1st set of 64
growers after at 8
months old
12 Weaning 2nd 64
weaners
13 Service
17 3rd Farrowing piglets 72 64
18 Sale of 2nd set of 64
growers after at 8
months old
19 Weaning 3rd 64
weaners
20 Service
22 Sale of 3rd set of 64
growers after at 5
months old
24 4th Farrowing piglets 72 64

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Table 2: A 2-year Cost-Return Analysis for Pig Enterprise

S/N Item Unit Quantity Unit Price Amount


(N) N

A. Revenue (R)
i. Sales of Pigs at slaughter weight of Pigs 128 80,000 10,240,000
80kg

ii. Sales of grower Pigs at weight of 40kg Pigs 64 40,000 2,560,000

Total Revenue (TR) 12,800,000


B. Variable Cost
i. Purchase of in-pigs (4weeks old Pigs 8 70,000 560,000
pregnancy)

ii. Purchase of boars Pigs 2 50,000 100,000


iii. Feeding and medication for 10 pigs for Days 7,200 300 2,160,000
720 days @N300/day

iv. Feeding and medication for 128 pigs for Days 23,040 300 6,912,000
180 days @N300/day

v. Feeding and medication for 64 pigs for Days 5,760 300 1,728,000
90 days @N300/day

Total Variable Cost (TVC) 11,460,000


C. Gross Margin (GM) =TR - TVC 1,340,000
D. % Gross Margin (GM/TR) 10.47
E Yearly GM 670,000.00
F. Monthly GM 55,833.33
G. Benefit/Cost Ratio (B/C)
1.12
Source: Field survey, 2021

The table above showed the Gross Margin (GM) of N1,340,000 for the pig

enterprise for 24-month period. This gives a yearly and monthly gross margin of

N670,000 and N55,833.33 respectively. It further showed a percentage gross

margin of 10.47% and Benefit/Cost ratio of 1.12:1.

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6.0 PROCESSING ACTIVITIES

At present, the major processing activity in the pig industry in Delta state

is the processing (slaughtering) of live pig into pork which is the marketed across

the state and eaten in different delicacies. Processing into bacon and sausage in

not common in the state. The main processors are the butchers who buy live pigs

from the farmer at farm gate and slaughter them in their various abattoirs.

7.0 MARKETING ACTIVITIES

Marketing of pigs and its products in Delta state follows a simple channel

as illustrated in schematic diagram below:

7.1 Marketing Channels in Pig Value Chain in Delta State

Producer
(Pig Farmers)

Other Pig Farmers Processors Other Pig Farmers


(Breeders) (Butchers) (Fatteners)

Retailers
(Meat Sellers)

Consumers

Most farmers sell their pigs to dealers/marketers on live weight basis, with

only a few who slaughter and sell their pigs based on carcass weight. The major
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customers of the pig farmer are the butchers who buy live pigs, slaughter and sell

pork to retailer (meat sellers) who in turn sell to consumers. Sometimes, the

butchers sell directly to the consumers. The pig farmers sometimes sell

weaners/growers to other pig farmers for breeding and for fattening (Field survey,

2021).

8.0 PIG VALUE CHAIN CHALLENGES AND CONSTRAINTS

The key players in the pig value chain are illustrated as follows:
Components Value chain outcomes
Inputs & Services Key inputs and services for breeding, feed, and animal health accessible
to both male and female smallholders
Increased access to information about best management and production
practices among male and female smallholders
Conducive policy and institutional environment established
Production Appropriate levels of investment in housing and better management
practices
Better selection within existing breeds, lower inbreeding index and
introduction of improved genetic resources
Better on-farm feed options and better use of local feedstuffs in
appropriately formulated, locally produced feed rations, with seasonal
variation minimized
Reduced risk of ASF and reduced incidence of helminths and
cysticercosis
Improved piglet survival and offtake rates
Transport & Improved pork safety
Processing
Reduced transport and transaction costs
Marketing Lower marketing margins and higher share of price captured by
producers, regardless of gender
Product and quality branding increases returns to value chain actors
Market information more widely available

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8.1 Challenges and Constraints

The growth of the pig industry is constrained by the following as articulated

by (MANR Livestock Services Department, 2018):

1. High cost of feed that are usually of questionable quality

2. Difficulty of getting feedstuff that are usually very expensive.

3. Limited access to genetically improved breeds of pigs and poor breeding

programmes in the country. .

4. Lack of critical technical and managerial skills by farmers. .

5. Poor advisory services in terms of livestock extension and veterinary

services.

6. High cost of veterinary medications that are usually of questionable quality.

7. Diseases and parasites. While many diseases affect pigs, African Swine

Fever (ASF) and anthrax stands out as the most devastating in Nigeria.

8. Lack of capital investment in terms of access to credit at affordable single

digits interest rates.

9. Lack of adequate investment in pig processing plants and product quality to

facilitate value addition.

10. Poor or non-existent market infrastructure.

11. Inadequate market driven research.

12. Inadequate information and data on activities in the pig value chain in the

state.

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9.0 COMMODITY ASSOCIATION

Pig farmers/stakeholders in Delta state are united under the umbrella of Pig

Farmers Association of Nigeria (PFAN) which was registered with the Corporate

Affairs Commission in 1999.

9.1 Aims and Objectives

The aims and objectives of the association include but not limited to:

(i) promote the wellbeing of its members, promote and secure its members

by all possible means within the constitution of the Federal Republic of

Nigeria.

(ii) Promote production and raise the standard of efficiency of the members

and see to the improvement in quality of the products of its members.

(iii) Investigate and assist members in accessing cheap and affordable

materials for their production.

(iv) Assist in providing solutions and information on issues that relate

directly or indirectly to pig production.

(v) Regulate the price of pigs by producer members to avoid unnecessary

competition in the industry.

(vi) Raise fund from members in the interest of advancement of the

association.

(vii) Enter into agreement corporate bodies and government for the

advancement of pig production, business and operations.

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The Delta state chapter of PFAN is an affiliate of the National body and has

Mr. Gerry Osai as its current Chairman. The association has a total of 165

registered members as at January, 2021. However, from field survey and

interview of some members of PFAN, there are over 1,500 active pig farmers in

the state. They posited that the number of pig farmers in the state has increased

due to government intervention programmes such as Youth Empowerment

Through Agriculture/Farmers Support Programme (YETA/FSP), Production and

Processing Support Programme (PPSP) and Youth Agricultural Entrepreneurs

Programme (YAGEP) among others.

10.0 INVESTMENT OPPORTUNITIES AND POSSIBILITIES

The possible areas for investment in the pig value chain in Delta State are:

(i) Investment in feed production

(ii) Investment in veterinary medicine services

(iii) Investment in pork production for local consumption and export

(iv) Invest in pork processing into value added products

(v) Investment in meat distribution

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Ajala M.K., Adesehinwa A.O.K., Bawa G.S., 2006. Socio-economic factors


influencing swine management practices among women in Jama’a local
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(2): 43-48.

Ajieh P. C. and Okwolu U. (2015). Constraints and Strategies for enhancing pig
production in Delta State. Agriculture-Science and Practice No. 3-4(95-96).

Akinyosoye V.O. (1999). Senior Tropical Agriculture. Ibadan: Macmillan


Nigeria Ltd.

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Babatunde, G.M and Fetuga B.L (1990). Pig Production in Nigeria Possibilities
and problem: Proceedings of the Agricultural Society of Nigeria, llorin. Vol.
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Dennis M, V and Lutwama, F.M (2012) Factors that influence pig production in
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Ekarius, C. (2008). Storey's Illustrated Breed Guide to Sheep, Goats, Cattle and
Pigs. Storey Publishing. ISBN 978-1-60342-036-5.

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report, 2021.

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(2018). Manual on Pig Farming for farmers participating in the Pig
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Water Resources and Rural Development, Abuja

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Otesile E.B., Ajuwape A.T.P., Odemuyiwa S.O., Akpavie S.O., Olaifa A.K.,
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Odemuyiwa S.O., Adebayo I.A., Ammerlann W., Ajuwape A.T.P., Alaka O.O.,
Oyedele O.I., Soyelu K.O., et al., 2000. An outbreak of African swine fever
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Ugwu, O.O. (1996) Agricultural science for tropical Area, London: Oxford
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Zoe Kay (2019). Six Most Common Diseases of Pig.


https://www.wattagnet.com/articles/25841-most-common-pig-diseases-
worldwide.

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