This is how our Hog Raising Works:
- We find a farmer-beneficiary with existing pig pen
- As much as possible, Lunti provides the piglets, feeds, and market logistics
- Farmer provides the labor, electricity, water, and pig pen; Lunti on financing, technical, and market support. Sharing is 50/50 on NET profit.
FEASIBILITY
Price of Piglet
P3,200 at 15-20 kilos
1st 10 kilos ~P1,700
Excess of 10 kg is P150/kg
Price of Feeds
Premium Starter Feeds
0.85kg/day x 14 days feeding x P40.20/kg = P478.38
Starter Feeds
1.5kg/day x 21 days feeding x P26/kg = P819
Grower Feeds
2.3kg/day x 35 days feeding x P24/kg = P1,932
Finisher Feeds
2.7kg/day x 30 days feeding x P20.60/kg = P1,668.60
Total Feed Cost / head = P4,897.98 or ~P5,000 including transport costs
TOTAL CAPITAL
Piglet + Cost of Feeds = P3,200 + P5,000 = P8,200
PROJECTIONS
Sale of Animal
A. 85kg at P120/kg = P10,200
B. 85kg at P115/kg = P9,775
C. 85kg at P110/kg = P9,350
D. 85kg at P105/kg = P8,925
E. 85kg at P100/kg = P8,500
F. 85kg at P90/kg = P7,650 (~P550 loss/head)
G. 85kg at P80/kg = P6,800 (~P1,400 loss/head)
H. 85kg at P70/kg = P5,950 (~P2,250 loss/head)
Profit Sharing: Farmer (50%) and Lunti (50%)
A. P10,200 - P8200 = P2,000 shared at P1,000 each party
B. P9,775 - P8200 = P1575 shared at P787.50 each party
C. P9,350 - P8200 = P1,150 shared at P575 each party
D. P8,925 - P8200 = P725 shared at P362.50 each party
E. P8,500 - P8200 = P300 shared at P150 each party
F. ~P550 loss/head sustained by LUNTI
G. ~P1,400 loss/head sustained by LUNTI
H. ~P2,250 loss/head sustained by LUNTI
Lunti Profit Sharing with Venture Partner
A. P1,000 profit, P300 to Lunti, P700 to Venture Partner
B. P785.50 profit, P85.50 to Lunti, P700 to Venture Partner
C. P575 profit, P125 loss sustained by Lunti, P700 to Venture Partner
D. P362.50, P337.50 loss sustained by Lunti, P700 to Venture Partner
E. P150, P550 loss sustained by Lunti, P700 to Venture Partner
F. ~P550 loss/head - no profits to share
G. ~P1,400 loss/head - no profits to share
H. ~P2,250 loss/head - no profits to share
Mortality rate is ~2-3% (this is where in-house insurance is spent)
Lunti recovers losses from selling of piglets.
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UPDATE
With the recent onset of African Swine Fewer, farm gate price of live hog plummeted to all time low of P70. We will sustain losses until price gets back to normal, but we appeal to our Venture Partners that we invoke the force majeure clause of the hog raising contract - wherein fulfilment of obligation shall be delayed for up to 1 cycle.
IN THE NEWS:
...average farmgate price of pork has declined to P70-80 per kilo for backyard growers: https://www.bworldonline.com/hog-growers-claim-lost-revenue-of-p10-billion-since-asf-outbreak/
There are some reports that hog prices have gone down to P60 or P70 per kilo:
https://www.manilatimes.net/2019/09/17/news/headlines/group-to-da-stop-all-pork-imports/617358/
Farmer losses P100k from 25 hogs: https://www.philstar.com/business/2019/10/21/1961811/raisers-want-standard-buying-price-live-hogs