When considering this business for investment, one should be aware of religious sensibilities, particularly as approximately 12% of Uganda’s 35 million population is Muslim. This is about 4.3 million people and therefore quite significant as it would be almost illegal (loosely translated means taboo or “forbidden” in Arabic) to start this business in a neighborhood that has a sizeable Muslim population, such as for example Mbale, my hometown.
Regarding the religious issue, it is worth remembering that Matthew 7: 6 says; “Don’t throw your pearls at pigs. If you do, they can trample them under their feet, and then turn around and tear you apart.”
I recently invested in a 50/50 joint venture with a family friend to start a pig farming project in Mbale. I provided the initial working capital and he provided the land and housing. I’m still not sure I have thrown away my pearls (i.e. money) because more than 1 month has passed and there is still no sign of project progress through photos or a progress report. His phone is off and I have no other means of communicating with him.
It reminds me of another farmer friend I spoke to recently. Someone broke into his farm in Jinja and got away with 3 adult pigs, screaming and everything I imagine. His security guard told him that he was drunk at the time and therefore he did not hear anything. However, I think they (pigs) were robbed in collusion with the security guard because; First, an adult pig weighs around 120 kg, and second, they can squeal as loud at, say, 130 dB. To put this in perspective, it is considered louder than the highest safe level for hearing (120 dB). Other sources compare the squeal of a frightened pig to the sound level of a plane taking off, that is, 113 dB. Either way, that’s pretty loud.
Therefore, it is difficult to understand how these 3 adult pigs were robbed without the guard hitting an eyelid, drunk or not.
The first basic rule of thumb in setting up this business in Uganda is to make sure you have reliable business partners or employees or else you will lose your “pearls” to pigs (literally).
There are other considerations to consider before investing in this sector.
THE CONS FIRST
1.Feeding
Pigs eat huge amounts. A fully mature pig, especially one to raise for commercial purposes, will eat about 3.4 kg a day. A growing one eats an average of 2.02 kg. If you are buying animal feed, which mainly includes cornmeal, the cost will be significant, especially given the constant rise in corn prices in Uganda (due to droughts). You have two options to offset this high cost:
- Option 1: Grow your own food ie corn and vegetables to feed and supplement with protein (eg fish or soy flour).
- option 2: Make sure the farm is located near a major boarding school and / or a hotel / restaurant so that you can pay next to nothing for “waste”, that is, leftovers like corn / corn flour (called “Posho” in the local language ) and school beans (cornmeal and beans are a staple in boarding schools in Uganda and so readily available). Another alternative but cheap protein source is Dagaa / Omena fish (called “mukene” in the local language). After all, pigs are omnivores and will literally eat anything (don’t feed them rotten food though).
2. Cash flow / working capital
Like most activities related to agriculture, particularly in Uganda, it is necessary to have cash on hand and, in particular, for at least 11 months (period of growth and gestation of the pigs) before starting to earn money from the sale of pigs. This is especially a key consideration, as advanced credit card services do not exist and agricultural loans, particularly without security, are hard to come by in Uganda.
3. Diseases
Pigs are susceptible to various diseases and it is not uncommon for the government to quarantine entire districts after outbreaks of diseases such as the deadly African swine fever. Therefore, it is essential that, as part of the start-up, you enter into an agreement with a veterinarian who will be available for scheduled vaccinations, routine check-ups, and emergencies. The government program under the NAADS scheme can help provide free / subsidized veterinary services; however, I recommend a private arrangement to ensure consistency, as public officials in Uganda are sometimes unreliable.
4. Water source.
Pigs don’t have sweat glands, so they need water (or a “mud bath”) to cool down. Likewise, you need water to clean your pens and feeding areas, especially as your population increases – and you do so quickly! Therefore, it is essential to have a lot of water. Therefore, I recommend that you set up the farm near an easy water source such as a swamp or that you set up a water tank to collect rainwater. These are the cheapest and most effective options in Uganda compared to piped water supply from the water supply company, NWSC.
AND NOW THE PROS
1. Less intensive handling.
Provided you invest in good housing that, for example, adequately separates lactating sows from the rest, has separate feeding and sleeping areas and the like, with a little land you can easily manage understaffed pig farming.
2. Profitability on demand.
Many sources believe that this sector is one of the most profitable companies in animal husbandry, especially since it requires less intensive management compared, for example, with poultry or dairy production. Profitability in Uganda is driven by the huge demand for pork.
According to a cattle census by the Uganda Bureau of Statistics in 2008, there were just over 3.1 million pigs. Assuming growth rates since then based on the growth of the economy (real GDP), which was approximately 7.2% in 2009, 5.20% in 2010 and 6.4% in 2011, the pig population is estimated at 4.3 million in 2012. This is still a very small number, especially compared, for example, with chickens, which according to the same census exceeded 37 million in 2008 and were therefore estimated (on the same basis GDP growth) at 44 million in 2012.
I can expect that there will be a continued demand for pork and other related industries for pork products such as sausage, bacon, gammon and the like will develop over time, particularly as income levels from the company increase. population (driven by economic growth).
Based on a model analysis that I have developed, I summarize the profitability for this sector as follows:
Return on capital
- Start-up capital (including working capital for 11 months) (A): Shs. 7,738,248
- Profit per year (B): Shs. 2,681,086
- Return on investment / capital (years to recover capital) (A / (B): 2,886 years.
*The benefit is calculated over a 14-month period consisting of Season 1 and Season 2.
It should be noted that the original investment / seed capital will continue to recover in seasons 3 onwards as the piglets from seasons 1 and 2 mature.
Final word
In light of the rapid return on investment, this is definitely an industry worth looking into.