Records, Marketing and Growing the Business

You do not need accounting software. You need five records, written the day the thing happens, kept where the work happens. A pig farm without records is a farm where you cannot tell a good sow from a bad one, or a good feed from an expensive one.

1. The breeding card (one per sow)

A card per sow, hung by her pen or kept in a folder. Columns:

• Sow identity and date of birth, her dam and sire if known
• Date served, boar used, method
• Date returned to heat, if she did
• Expected farrowing date
• Actual farrowing date
• Born alive, born dead, mummified
• Number weaned and date weaned
• Litter weight at weaning if you can weigh
• Notes: farrowing difficulty, savaging, mastitis, poor milk

This card is what allows you to cull the right sow. Without it, culling is guesswork and sentiment.

2. The feed log (one per pen or group)

Date, pen, feed type, kilograms issued, and who issued it. Written at the moment the bag is opened, not reconstructed at month end. This single record is what makes feed conversion ratio possible, and feed is 60 to 70 percent of your cost.

3. The mortality log

Date, pig or pen identity, age or weight, sex, signs seen before death, suspected cause, action taken, who was informed. Add a column for what you changed as a result. Patterns emerge from a dozen rows that no single death would show you.

4. The treatment and health record

Date, pig or pen, product used, dose, route, who gave it, and the withdrawal date before which the pig must not be sold for meat. This protects your buyers, protects consumers, and protects you legally. It also tells you whether a treatment worked, which is the only way to stop repeating one that does not.

5. The sales ledger

Date, buyer name and contact, number of pigs, live or dead weight, price basis, total received, transport cost, payment received in full or outstanding. Add a column for how the buyer behaved: did they pay, did they collect on time, did they change the price at the gate.

Making it stick

1. Keep the book where the work is. A pen line notebook in a plastic sleeve beats a beautiful ledger in the house.
2. One minute a day beats one hour a month. Reconstructed records are usually wrong in the direction that flatters you.
3. Number your pigs and pens. Ear tags, notches or paint. A record about an unnamed pig is not a record.
4. One person owns each book. Shared responsibility means nobody writes.
5. Review monthly. Sit down for thirty minutes with all five records and write three sentences on what they tell you.

Records and credit

There is a second payoff. Banks, microfinance lenders, cooperatives, buyers offering contracts and grant programmes all ask the same question: show me your numbers. A farmer with two years of feed logs, sales ledgers and farrowing records is a far more fundable proposition than one with a good story. Your records are also an asset.

Records that are never read are just paperwork. This lesson turns them into a short list of numbers you review every month and act on.

The numbers to calculate

• Pigs weaned per sow per year. The master number for the breeding side. It combines litter size, piglet survival and how quickly sows get back in pig.
• Pre weaning mortality. Piglets that died before weaning as a percentage of those born alive. Losses here are common and are usually about crushing, chilling and poor colostrum intake rather than disease.
• Farrowing interval. Days between one farrowing and the next for the same sow. A sow that is empty is costing feed and earning nothing.
• Average daily gain and FCR for each growing group, from Module 10.
• Age and weight at sale. The single clearest measure of whether your finishing system works.
• Grower and finisher mortality. Deaths after weaning as a percentage of pigs placed.
• Cost per kg of gain and gross margin per pig, from Lesson 3 of this module.

Reference ranges, used honestly

Published ranges vary widely by breed, feeding and system, so use them as a mirror rather than a target. Two anchors are solid enough to rely on: FCR in growing and finishing pigs commonly runs about 2.5 to 3.5 kg of feed per kg of gain in smallholder conditions and better in well managed commercial herds, and market weight of 85 to 100 kg live is commonly reached from about 5 to 6 months in good systems and considerably later on poor feeding. For litter size, weaning numbers and mortality, compare yourself against your own farm last year and against other farmers in your district using the same breeds. That comparison is more useful than any imported figure.

The monthly review, in thirty minutes

1. Write this month's numbers next to last month's on one page.
2. Circle anything that moved by more than a small amount, in either direction.
3. For each circled number, write the most likely cause in one line.
4. Choose one number to work on for the next month. Only one.
5. Write the specific action, the person responsible and the date to check.

Choosing the right number

Pick the number where a small improvement moves the most money. On most smallholder farms that is one of three things: feed conversion, because feed is 60 to 70 percent of cost; piglet survival to weaning, because a piglet lost in week one is a whole finished pig lost; or days to market, because every extra week is feed with no extra sale value.

Beware the flattering number

It is easy to celebrate a big litter and ignore that half of it did not reach weaning. Always look at born alive and weaned together. Likewise a fast gain figure means little if FCR is terrible, and a low feed bill means little if pigs took ten months to finish. Read numbers in pairs.

Set the sample right

Do not judge your farm on one sow or one pen. Use at least a few litters or a full batch before you conclude that a change worked. A single good result can be luck; a trend across batches is management.

Most farmers know what a pig sold for. Far fewer know what it cost. Without that, you cannot tell profit from turnover, and you cannot negotiate, because you do not know your floor.

Every price below is a clearly labelled placeholder in currency units (CU), used only to show the method. Phone three feed suppliers and three buyers this week and replace all of them with your real numbers.

The cost list

Variable costs - these change with the number of pigs:

• Feed from weaning to sale, and the sow's feed share for the piglet
• Weaner cost, if you bought the pig in rather than bred it
• Veterinary medicines, dewormers, vaccines
• Breeding cost - boar service fee or AI
• Bedding, water and electricity attributable to the pigs
• Transport to the buyer
• Marketing costs, levies and market fees
• Mortality allowance - the pigs that died still cost you their feed

Fixed costs - these continue whether you have ten pigs or forty:

• Housing depreciation and repairs
• Permanent labour
• Loan interest, licences, insurance

Gross margin per pig

Gross margin = revenue per pig minus all variable costs per pig. Fixed costs are then covered by the total gross margin of the whole herd.

Worked example, placeholder prices only:

On these placeholder numbers the pig loses money before a single fixed cost is counted. That is not a trick; it is exactly the situation many farmers are in without knowing it, and the arithmetic is the only thing that reveals it.

Reading the loss

Look at the feed line. It is roughly 80 percent of variable cost here, above the typical 60 to 70 percent share, which points to poor feed conversion. At an FCR of 3.0 rather than the implied higher figure, that feed line falls sharply and the margin turns positive. This is why Module 10 comes before this one.

Break even price

Break even price per kg live = total variable cost per pig divided by sale weight in kg. In the example, 2630 divided by 90 = about 29 CU per kg. Any offer below that loses money on every pig. That number is your negotiating floor, and you should know it before you pick up the phone.

Build your own sheet

1. Take one batch you have actually sold.
2. From your feed log, total the real kilograms fed and multiply by the real price you paid.
3. Add every other variable cost from your records, including the pigs that died.
4. Divide by the number of pigs sold to get cost per pig.
5. Compare with what you actually received from the sales ledger.

Do this once and you will never again accept a price because it sounds reasonable.

Marketing starts long before the pig is ready. A farmer who begins looking for a buyer on the day the pig hits weight is a farmer who takes whatever price is offered.

Who buys pigs

• Local butchers. Small volumes, often good prices, usually want a specific weight and want it regularly. Excellent for a small farm that can supply consistently.
• Abattoirs and processors. Larger volumes, often pay on dead weight and may grade the carcass. More formal, may require documentation, and may pay on terms rather than cash.
• Live pig traders. Convenient because they collect, but the price reflects that convenience, and some are also a biosecurity risk because they move between farms.
• Direct sale to households, especially around festive periods, often at the best price per kilogram but with much more work per sale.
• Restaurants, lodges, schools, mines and institutions. Contract style customers who value reliability and often pay better than the spot market for guaranteed supply.
• Farmer groups and cooperatives that aggregate pigs and negotiate as a block.

The three offer types

You cannot compare offers until they are on the same basis.

1. Per kg live weight. Simple. Ask which scale is used, who owns it, when it was last checked, and whether the pig is weighed before or after a period off feed.
2. Per kg dead weight. Multiply the dead weight price by the dressing percentage to get the equivalent live weight price. Pigs commonly dress out at roughly 70 to 80 percent depending on whether head, trotters and offal are included, so confirm the exact basis before comparing.
3. Flat price per pig, sometimes within a weight band. Divide by the expected weight to get a price per kilogram, and remember that under a flat price every kilogram above the band minimum is given away.

Worked comparison with placeholder prices: Buyer A offers 25 CU per kg live. Buyer B offers 35 CU per kg dead at 74 percent dressing, which is 35 x 0.74 = about 25.9 CU per kg live equivalent. Buyer C offers a flat 2200 CU for a 90 kg pig, which is about 24.4 CU per kg. Now they are comparable, and you can also weigh in transport cost and payment terms.

The costs hidden behind the price

The highest headline price is not always the best deal. Subtract:

• Transport to the buyer, and who bears the cost of a rejected pig
• Market or abattoir levies and slaughter fees
• Deductions for condemned carcasses or parts
• The value of waiting 30 or 60 days for payment
• The cost of holding pigs longer because the buyer collects late

Getting paid

The worst price is the one you never receive. Practical protections:

1. Weigh and record in front of the buyer, and both sign the weight sheet.
2. Write a simple delivery note with date, number of pigs, weights, agreed price and total.
3. For a new buyer, sell small first and require payment on collection.
4. Never release pigs on a promise from someone you cannot find again.
5. Record every buyer's payment behaviour in your sales ledger, and stop selling to the ones who fail.

Build the list before you need it

Keep a written buyer list with names, numbers, price basis, weight preference, volume, collection ability and payment record. Refresh the prices by phone every month. Three live options at sale time is the difference between negotiating and accepting.

Negotiation is not argument. It is the exchange of information between two people who both want a deal. The farmer who knows their numbers and has alternatives usually gets the better price, without raising their voice.

Prepare four things

1. Your break even price per kilogram, from Lesson 3. This is your floor. Below it you are paying someone to take your pigs.
2. The current market range, from having phoned three or more buyers in the last week.
3. Your exact product: number of pigs, live weights, ages, breed type, treatment withdrawal status, and when they are ready.
4. An alternative. Even one other willing buyer changes the entire conversation.

What buyers actually want

Price is not the only thing a butcher cares about. Understand their business and you find things you can trade that cost you little:

• Consistent weight. A butcher cutting to a standard wants pigs in a narrow weight band, not a batch ranging from 70 to 110 kg.
• Reliability. A supplier who delivers the agreed number on the agreed day every month is worth a premium over one who appears twice a year.
• Predictable quality. Not too fat, well finished, clean, unbruised.
• Convenience. Delivered pigs, ready on time, with paperwork in order.
• Safety. Correct withdrawal periods observed and healthy stock, which protects their business.

Offer the things you can honestly deliver: a fixed number of pigs at a fixed weight on a fixed date each month. That is what earns a standing price rather than a spot price.

How to open

Do not name the first number if you can avoid it, and never open with what you need. Ask instead: what are you paying this week, on what basis, and for what weight range? Then quote your batch precisely and ask what they can do for a regular supply of exactly that.

Handling the gate price drop

A common tactic is agreeing a price by phone and lowering it when the pigs are already loaded or delivered. Protect against it:

• Agree the price, basis and weight range in writing or by message before transport, and keep the message.
• Weigh at your farm before loading and record it.
• Know your walk away point and be genuinely prepared to take the pigs home once. Doing it a single time changes how that buyer treats you forever.
• Have the phone number of your second buyer with you.

Grading and deductions

Where carcasses are graded, ask for the grid before you deliver: what is measured, what is the target, and what does each grade pay. If you are penalised for fat, that is feedback on your finishing programme and your sale weight, not just a lost payment. Ask for the actual grading result on your pigs and record it. If deductions are made for condemnations, ask to be told what was condemned and why, because that information improves your health management.

Things not to trade away

1. Do not let a buyer's vehicle or staff into your clean zone. Load at the boundary.
2. Do not sell pigs still inside a treatment withdrawal period.
3. Do not accept payment terms you cannot survive.
4. Do not undercut other farmers into a price that is below everyone's cost. That destroys the market you both depend on.

Group strength

Ten smallholders selling twenty pigs a month together are a different customer from ten farmers selling two pigs each. Aggregation also shares transport, allows a consistent weight band, and gives access to buyers who will not deal in ones and twos. This is often the single largest price improvement available to a small farm.

Most failed pig expansions fail the same way. The farmer has a good season, buys more sows, and six months later cannot feed the pigs those sows produced. Growth in pig farming has an order, and skipping steps is what turns a profitable small farm into an unprofitable larger one.

The rule of sequencing

Never add breeding capacity until feed, housing, water, labour and market are already able to carry the pigs that capacity will produce. A sow is not an asset until her offspring can be fed and sold.

A workable order

1. Fix efficiency first. Improving FCR, cutting pre weaning mortality and shortening days to market raise profit on the herd you already have, at little or no capital cost. This is always the highest return step and it is nearly always the one skipped.
2. Secure water and feed supply. Reliable water, adequate storage, and a buying arrangement that keeps a buffer of feed on hand. Feed is 60 to 70 percent of cost, so feed security is business security.
3. Build market first, then volume. Get one or two committed buyers wanting more pigs than you can supply. Expanding into an unsold surplus is how farmers end up dumping pigs at any price.
4. Add finishing housing. Pens, water, shade and drainage for the extra pigs, ready before the pigs exist.
5. Then add sows, one or two at a time, from a known source, through full quarantine.
6. Improve genetics and add a better boar or AI once the basics are solid.
7. Consider value addition last - selling cuts, sausage, or slaughtering yourself. It needs licences, cold chain, food safety compliance and different skills. It can pay well, but it is a second business, not an extension of this one.

Cash flow, not profit

Pig farming has a long gap between spending and earning. From the day a sow is served to the day her offspring are sold is many months of feed with no income. A profitable farm can still run out of cash mid cycle and be forced to sell pigs at the wrong weight, which is the most expensive mistake in the whole business.

Build a simple twelve month cash flow: a row for expected money in, a row for expected money out, month by month. Find the month where the balance goes negative before it arrives. Then act early: stagger farrowings so sales come in every month instead of twice a year, hold a feed reserve, or arrange finance before you need it rather than during a crisis.

Staggering is the small farm's best tool

Serving all your sows in the same week means all your feed cost lands in the same month and all your pigs are ready in the same week, flooding your own buyer. Spread services so that you farrow and sell regularly. Regular supply also gets you better prices, as Lesson 5 explained.

Deciding on borrowing

Debt is a tool, not a sin, but test it against three questions. Will the borrowed money increase income by more than the cost of the loan, from a change you have already proven works at small scale? Can you service the repayment in your worst month, not your best? And what happens to the repayment if African Swine Fever, a feed price spike or a market closure hits during the loan term? If the honest answer to the third question is that you lose the farm, borrow less.

Write the plan on one page

Where the farm is now, in numbers. Where you want it in twelve months, in numbers. The steps in order, each with a cost, a funding source and a date. The trigger that must be met before you move to the next step. Review it every quarter with your records in front of you and change it honestly.