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Dear visitor and international
investor,
We
warmly welcome you, if this is
your first visit to Africabiz
Online - The ultimate newsletter
on trading and investing in 49
sub-Saharan African countries.
If you are a regular and faithful
reader, welcome back.
If you are a regular and faithful reader, welcome
back.
SWIM IN OIL AND PROSPER.
PART III: FATTEN HOGS
This issue continues our series on oil production
from oil containing seeds and kernels started
with issue N° 25.
After exposing the high profit making potential
of a small
scale oil processing operation, we end the
series with an additional operation (hog fattening)
which boost up the profit making potential of
the combined oil production and animal breeding
operations.
Figures available here
clearly show what a tremendous impact the multiplication
of that kind of operation could have on the development
of rural areas of an emerging country. Many operations
of the kind will doubtless trigger the "Synergetic
Impact Factor" here
available
REGULAR MAINTENANCE IS
THE RECIPE AGAINST TROUBLE
The "Control Your Desktop" section
deals with the problem of regular / routine maintenance
of your desktop. If you use your working tool
/ computer for heavy duty on a daily basis (I
use mine for 14 hours every day) you need to perform
some routine maintenance tasks in order to avoid
trouble and work smoothly. Here
are described the minimum you should always
perform to maintain your computer in good shape.
COMPARE PRICES BEFORE
SHOPPING ON THE NET
Few months ago I purchased Microsoft Cordless
Phone on the net. I made some research before
giving my credit card number. Believe me or
not the same device was proposed at different
prices - ranging from US $ 225 to 67 - on
several eCommerce sites. Since that experience
I always compare prices before purchasing on the
net.
Thanks to Bravenet.com AFRICABIZ has set
up "Africabiz Price
Comparison OneStop Shop" where you
have the possibility to compare prices for any
article / device (books, cameras, video, software.
Etc.) before purchasing. Click
here to reach the Price Comparison One
Stop Shop
ESTABLISH PREVENTIVE
MAINTENANCE FOR YOUR OPERATION
As for your computer, any operation needs maintenance
for all equipment. The best that task is performed
preventively the better for your bottom line.
You will then avert unexpected breakdown which
might proved detrimental for your productivity
and make you lose important clients and contracts.
At AFRICABIZ Freebie Section you are introduced
to a piece of software which handles all preventive
maintenance duties with the utmost efficiency.
It tracks maintenance history and expenditures
on each asset, tracks spare parts inventories,
and creates purchase orders for parts and so on.
Click
here for more.
Click
here to review Contributor's
Guidelines. Your contribution is welcome.
Many thanks for dropping
by and see you here next month.
Dr. B.M. Quenum
Editor
of AFRICABIZ
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EDIBLE AND INDUSTRIAL OILS AS INCOME BUILDING
POWER FOR AN AFRICAN COMMUNITY. PART III: HOG
PRODUCTION
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In
issue N° 26 we discussed a small scale
edible / industrial oil operation with an
interesting ROI. Click
here for more. The byproduct - Oil cake
- was sold as it is for animal feed. Here,
in this issue N° 27, the oil cake is
used on the production compound as animal
feed and contribute to the diversification
of production into Hog fattening.
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Different kinds of animal breeding could be based on
the oil cake
Oil
meal produced as byproduct is an excellent animal
feed; as it is or as component to an animal feed
formulation. It can be used to breed fowls (poultry,
ducks, pentads) or for hog breeding. Both breeding
may be done either intensively in confined compound,
extensively in open area / pasture or in mix operation
combining semi confinement and open air pasture.
Either way fowls breeding will need more additional
investment for shelter building than hog breeding.
Let's consider hog breeding
for this time. All assumptions based
on tropical area's hog production stats (Brazil)
here
available
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Additional investment to the small oil producing operation
In tropical area, it is possible to breed hog
extensively. One needs to have a fenced area to
contain second step finishing hogs - above
one month after weaning. (It can be electrified)
and a U-shaped open shed for open air feeding.
Plus two hooped shelters. One for sow gestating
and another one for first step finishing weaned
hogs (up to one month after weaning). For glossary
click
here
1° - Feed
Formulation:
From the small oil production unit here
exposed, we have 209,664 kg of oil meal
for one year operation.
That quantity of oil meal can be mixed with cereals
and mash to produce feed for the hogs. Vegetable
waste (sprouts, carrots and so on) being also
used as complement of feeding. That kind of "natural" (some
may call it bio) feeding will preserve the hogs
from strange diseases as generated by flour-meat
diet.
If one uses a feeding composition
/ mixture likes this one per kg: 20% of oil
meal, 40% of mash (from corn head,
rice wastes and so on) and 40% of cereals
(corn, sorghum; etc.) the quantity of oil-cake
above mentioned will give: 1,048,320 kg of animal
feed mixture for the hog breeding; one could
add 250,000 kg of breweries wastes; plus
160,000 kg of vegetable waste.
2°- Feeding Cost Estimate: in US$
| Components |
Quantity
/ kg |
Price / metric ton |
Cost
|
| Oil
meal |
209,664 |
68 |
14,257 |
| Mash |
419,328 |
5 |
2,097 |
| Cereals |
419,328 |
113 |
47,384 |
| Breweries
wastes |
250,000 |
20 |
5,000 |
| Vegetable
wastes |
160,000 |
20 |
3,200 |
| Medicine
mix |
3,090 |
600 |
1,854 |
| Total
animal feed |
1,461,410 |
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| Total
Cost |
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|
73,792 |
| Cost
per metric ton |
|
50.51 |
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3°- Initial Hog Breeding
Stock Acquisition:
Following assumptions
are used to estimate the initial breeding stock
of boars and gilts: For glossary click
here
| Average
total piglets born alive per litter |
10.4
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| Pigs
weaned per litter |
9.9
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| Average
age at weaning |
20.2
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| Sow
Boar ratio |
70
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| Turnover
ratio |
2.81
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| Feed
conversion ratio |
1.95
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| Average
gestation length |
114.9
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| Farrowing
interval |
144.4
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| Average
finishing days |
127.69
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| Feed
consumed / head / day (kg) |
1.25
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All
assumptions based on tropical area's hog production
stats (Brazil) here
available
We leave aside the replacement rate of the
breeding stock for simplification and consider
therefore the quantity of piglets weaned
constant throughout the bottom line calculation.
Let's consider a starting breeding stock of 110
gilts and 33 boars. The first farrowing
in line with assumptions made above
should give: 110 x 9.9= 1089 weaned piglets;
that is to say 1089 hogs ready for farrowing
to finishing. That is for the first farrowing.
That amount multiply by the turnover ratio gives
1089 x 2.81 = 3,060 pigs from farrowing to
finishing for the whole year.
The
total amount of animal to feed being: 3,060.+143
(boars and sows) = 3,206 Total feed consumption
for a year will be: 1.25x3,060 x 365 = 1,462,738
kg (there is a very small gap of 1,328 kg
compare to what is here
exposed) Finished hog weight: 1.25 x 127.69 : 1.95 = 81.85 kg - carcass weight.
Selling price for a finished hog: 1.30
x 81.85 =106.405 US$
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We have the following gross profit of the whole operation
(combination of oil production and hog fattening):
Click here for comparison with data related
to oil production alone.
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Items
|
Amount
(US$)
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INVESTMENT
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|
Shelters;
Storage Area; etc.
|
25,000
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|
Three Expellers; small power generating
set; quad- cart; miscellaneous
|
50,500
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Preliminary
expenses
|
5,000
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|
Starting
expenses (gilts and boars purchase)
|
60,000
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| Operational
funds (3 months) |
25,000
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| Total
investment |
165,500
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TURNOVER
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| Oil
= 30 x 8x 26 x 12 = 74,880 liters |
74,880
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| Finished
hogs 106.405 x 3,060 = |
326,000
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| Total
Turnover |
400,479
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OPERATING
COSTS
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|
Total
Salaries
|
15,800
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| Other
Operating Costs |
150,000
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| Total
Operating Costs |
165,800
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GROSS
PROFIT
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|
Total
Gross Profit
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234,679
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To
compare data above with oil production data alone
click
here
One can see that for an increase of investment from
US $ 50,000 to 165,500 the gross profit jumped
from US 35,000 to 234,679. Click
here for data related to oil production alone.
That performance could be greatly improved if:
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The initial breeding gilts and
boars are from a good / sane genetic stock
- A second farrowing herd is established after
the first.
- Animal feed experience are carried out to
decrease the feed conversion ratio.
-
Behavioral experience are
implemented on the hogs in order to increase
the total of piglets born per litter (In
Europe:24.3; In North America: 22.14
against 10.4 in tropical area)
Figures outlined in above table
clearly show that the establishment of a network
of small scale oil processing units - based on
nuts, kernels and oil-containing seeds - combined
with hog fattening, stands as a perfect "Income
Building Power" operation;
labor intensive and foreign currency provider
or saver. Capable of generating the double
digit sustained annual growth rate for 10 to 20
years running. Click
here for a case study
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