Pig Farming in India – Design, Business Plan & Profit

Demand-supply gap combined with faster economic return due to better FCR, early maturity, short gestation interval, large litter size and utilisation of food waste makes pig farming in India a very lucrative business.

Pig has the most importance among meat producing animals for the people of the socio-economically weaker section in India. They do pig farming with indigenous pig breeds in the backyard system in a low-tech low-input model. But, there is a huge scope for commercial pig farming in India.

Scope of Pig Farming in India

As per the 20th livestock census (2019) pig population has decreased over 12% from the previous census (2012). Furthermore, the situation worsened during COVID-19 lockdown due to unavailability of waste food from hotel, restaurant and catering industry. 

Globally pork is a very popular meat but in India pork is only about 9% out of total meat production. North-east India alone consumes 70% of domestic pork production but fails to meet its local demand and imports from other states like Punjab, Uttar Pradesh, Bihar etc. There is a high demand for pork in neighbouring countries like Vietnam, Singapore, Philippines, Hong Kong, Myanmar, Bhutan, Nepal etc.

In the present scenario the supply is far lower than growing demand and the need of the hour is to ramp up production of piglets and pork. Another scope is in high quality processed pork like sausage, bacon, ham, frozen pork etc.

Advantages and Disadvantages of Pig Farming in India

Advantages

• Pigs mature early and give birth at as early as 8 months. They farrow twice a year and give birth to 8-12 piglets at a time.
• Piggery is a very profitable business. Pigs grow very fast with an FCR around 3 and gain marketable weight within 6-8 months. The FCR is second best after broiler poultry for any kind of meat producing animals.
• Pigs can eat almost all types of feeds including damaged food, byproducts from mills and slaughterhouses, garbage, forage, agri waste, etc. and convert them into nutritious meat. 
• Live body weight to carcass is 60-80% which is quite high. Pig meat is very nutritious, high in fat and energy and low in water.
• Small and landless farmers can earn a handsome income by investing very low initial capital without any elaborate housing and commercial feed.
• Pig faeces is a very good manure for both crops and aquaculture.
• Demand for pig fat, pig meat and meat products is high and increasing steadily among the well travelled middle class and catering sector.
• Good opportunity in food processing and exporting of pork products like bacon, ham, sausage, frozen meat etc.
• Scope for replacing indigenous breeds with high yielding exotic/crossbred animals.
• Huge growth potential in the piggery sector.

Disadvantages

• Cultural taboo is holding back this sector.
• Though new farmers are opting for high yielding crossbred/exotic breeds ¾ of the total pig population is from low quality indigenous breeds.
• Inadequate breeder farms throughout India to make available quality piglets for fattening in required quantities.
• Speciality feed for pigs is not available pan-India.
• No control over breeding and traceability.
• Piggery is a labour intensive business. Due to social taboo and the nature of work, getting and retaining manpower is harder compared to other farming activities.
• Though India has high pork demand most of it is concentrated in 8 north-eastern states and Goa. Piggery from other states requires good market linkage.
• Swine flu and other swine diseases wreak havoc periodically.
• Import of cheap pork products.
• Price and profitability depends on various global factors.

How to Start a Pig Farm in India

Feeding management is the main factor in pig farming but this business involves some technical knowledge.

1. Know Your Farm Animals

• Boar: A boar is a male pig used for breeding purposes.
• Farrowing Sow: A female pig that has given birth (farrowed) to a litter of at least one pig dead or alive.
• Gilt: A gilt is a female pig which has not farrowed or given birth to a litter yet. It can be a pregnant animal.
• Weaner: Weaner is a pig which has left the nursing period and is under 8 weeks of age and 20 kg of liveweight.
• Dry Sow: A female pig which has given birth to a litter but is separated from its piglets after the nursing period (weaning). They are called dry sow until furrowing.

2. Pig Farming Business Plan

A piggery can be started for various reasons. Every business model has its own advantages and pitfalls. Here are the top three most popular business models for a piggery.

a. Selling Piglets

Pigs mature early and give birth at as early as 8 months. They farrow twice a year and give birth to 8-12 piglets at a time. These piglets can be sold to other pig farmers at 2-3 months of age for quick return, they will then rear those piglets up to market weight.

This is a relatively low risk, low investment business model. As the batch duration is short and feed requirement for piglets is quite low there will be relatively low investment stuck in case of any disease outbreak or external problem.

This business model needs to raise high quality pure breed pigs with utmost care and breeding management. Commercial dry feed is preferred over low cost hotel waste to prevent diseases and unnecessary weight gain and get maximum productivity. Marketing is another constraint as the piglets can not be sold to the meat market directly for meat purpose and demands higher effort and trust to sell the piglets to other farmers.

b. Selling Fatteners

Instead of selling the piglets, rearing them up to marketable weight as fatteners for meat purpose is the most popular business model in pig rearing. This is a high risk high return business model.

A pig needs 6-8 months to gain marketable weight of 80-100 kg. Thereafter they are sold as per live body weight. Current market rate for live fatteners is Rs.130-145/kg. On an average a 100 kg. fattener is sold at around Rs.13,500 within which around 40% is profit margin depending on FCR and feed cost. Hotel waste can be fed if available to reduce feeding cost. 

Marketing of fatteners is very easy but the quantity matters. In places like north-east India, Goa and high pork demand areas small batches can be sold directly in the market but other places with low pork demand selling large batches of animals fetch more profit due to transportation and middlemen.

c. Selling Breeding Animals

Another popular business model is selling breeding animals but this is often done with any of the previous two models. There is a demand for good quality animals to be used as breeding stock. Gilt, pregnant sow and quality boar can be sold at a high price. Some new farmers prefer to buy female pigs after the first lactation as inexperienced farmers face difficulties managing female pigs at their first farrowing (giving birth to piglets).

3. Choose the Right Location

Choosing the right location is very important for the success of a piggery. The land must not be waterlogged. As piggery is a labour intensive practice, availability of cheap labour from surrounding areas is an advantage.

Due to unhygienic farming practices by most of the farmers this sector is considered dirty and any piggery project near locality may face public objection. Rural areas away from locality but with good road connectivity, transport facility, electricity, clean drinking water, feeds and veterinary service where the environment has low level of pollution and noise are ideal for setting up a piggery.

4. Selection of Breed

More than 75% of the pig population in India is of indigenous breeds and the rest are exotic/crossbred. Most popular pig breeds are-

• Indigenous Breeds: Ghungroo, Agonda Goan, Nicobari, Doom, Zovawk, Niang Megha, Tenyi Vo.
• Exotic/ Crossbred: Large White Yorkshire, Hampshire, Landrace, Duroc.

The indigenous breeds are region specific and thrive in that region’s agroclimate and farming practices. But, in a pure commercial setup exotic/crossbred pigs give better results. Large White Yorkshire is the most preferred breed for new commercial piggeries due to its FCR, weight gain and litter size.

5. Housing Plan

Pig farming can be done without expensive housing but there are some factors to remember when designing a pig farm. 

• Shedding is required for the safety and security of the pigs so that they can take shelter in adverse weather and protect themselves from parasites, diseases and predators.
• Most of the traditional small pig farms in India are unhygienic and do not have scientific housing but proper housing and equipment is essential for large scale commercial farming. The shed must be ready before introducing the animals.
• The shed must be well ventilated, routinely cleaned and dry with a good drainage system.
• Proper housing planning and layout should be followed to accommodate all necessary activities and lower consumption of water and labour.
• Different types of pigs should be grouped into separate pens.
• Heating lamps should be fitted at proper height to protect from cold in winter months. Wallows or sprinkler systems to be built to protect pigs from heat.
• At the time of site selection availability of clean water and electricity must be considered.

There are different components in a piggery house including creep space, covered space, open area, furrowing pen, wallows etc. The shed should be built by taking consultation from experienced farmers or domain experts. 

Calculation of Floor Space and Water Requirement

Calculating the floor space and water requirement at the very initial stage may help in site selection and budget allocation and avoid problems of maintaining the farm in the long run. 

6. Feeding Management

Feeding management is the main factor in pig farming. Young pigs can not digest high fibre food well and should be given food with low fibre in regular intervals. Before serving the food, previously served unutilised food in the tub or trough should be cleaned well.

Though commercial feeds are available in the market one can formulate dry feed by collecting and mixing ingredients in proper ratio. Pigs need grains, protein supplements, vitamins, minerals and antibiotics in their feed.

• Grains: Maize, wheat, rice, oats, sorghum, millets, wheat bran, rice bran, broken rice, etc.
• Protein: Oil cakes from groundnut, sesame, soybean, linseed, etc. Animal protein can be sourced from fish meal, meat meal, dairy waste, etc.
• Vitamins: Pigs should be sent to pasture or given some fodder to get vitamins from natural sources otherwise vitamins should be mixed with dry feed. 
• Minerals: Mineral mixture and salt.
• Antibiotics: Mixed with feed to fight disease (except organic pork).
• Molasses: A good source of iron, calcium, magnesium, potassium and phosphorus.

Pigs should not be overfed. Requirement of feed at different stages as per Indian Veterinary Research Institute is listed below.

Dry Feed or Hotel Waste?

Pigs have excellent feed conversion efficiency and have the ability to convert waste rotten foods which no other animals consume into delicious meat. But, the profitability largely depends on the feeding cost. Commercial feed is less economical and should be replaced by cheap alternatives if available.

Agricultural waste, vegetable waste from the market, spoiled dairy and poultry feed, food waste from hotel, restaurant and catering industry can be served to minimise feeding cost. Food waste must be clean and fresh and served only after boiling. Food waste from hotels (swill) has about 70% water content and needs 3 times more than dry feed. On an average 4-8 kg of swill is required per pig.

Hotel waste is an excellent cheap alternative to commercial dry feed for fattening but it should be avoided for sows intended for piglet production. Hotel waste has high fat oily content which results in weak piglets and more death rate of piglets by crush during furrowing.

7. Disease Control and Prevention

Pigs suffer from various diseases including viral, bacterial, parasitic and nutrient deficiency diseases. Most common diseases are swine fever, swine pox, FMD, swine brucellosis, leptospirosis, worms, anaemia, hypoglycemia, etc.

Maintaining vaccination schedules is the best way to prevent diseases like swine fever, FMD etc. Routine check up for diseases, disinfecting the farm, isolating newly purchased pigs, restricting external visitors, etc. are few steps to prevent diseases.

Swine flu pandemic wreak havoc periodically in African countries and China causing loss of lakhs of pigs in a short period of time. Indian Pig farmers should keep an eye on global events to fight any future pandemic.

Tips for success

Pig farming is a very profitable business in general but a certain percentage of farms are forced to close down their operation due to three main reasons.

1. Knowledge: Managing different types of pigs of different life stages requires knowledge and prior experience. It is advised to take training and hands-on experience before starting a piggery.
2. Budget allocation: New farmers fail to assess future expenses and growth potential and they allocate most of the budget towards housing or animal purchase. But, it is to remember that even before the first batch of fatteners are ready for the market there will be a considerable amount of feeding and maintenance cost. Budget allocation should be based on a detailed project report.
3. Labour: Finding and retaining labourers is a major and never ending problem in this sector due to social taboo and nature of work. The proposed site should be away from locality in a rural area where social taboo is minimal and cheap labourers are available.

A Sample Pig Farm Project Report

Below is a sample pig farming project report for bank loan based on the following assumptions.

1. One acre of land is required for the project. The land is considered pre-owned by the promoter, therefore no additional cost for land has been added. There will be some open space left for future expansion.
2. A modern pig shed will be built with steel pipe and proper drainage system for better aeration, hygiene and management.
3. Large White Yorkshire breeds will be reared with the objective of selling fatteners.
4. Healthy breeding parent stock of 6-7 months age will be purchased in two equal batches three months apart. The first furrowing will be 3 months after starting the project and the piglets will be sold 9 months after starting the project.
5. As the breeding stock will be purchased in two equal batches, 50% of sows will be allowed to furrow at a time. This reduces the cost of capital investment and improves farm efficiency.
6. Breeding stock will be sold as culled animals after 4^th furrowing every 2^nd year and new breeding stock will be introduced from grown up piglets as the litter size starts to reduce after 4^th-6^th furrowing.
7. Mortality among breeding stock will be compensated from insurance money and hence not considered in this report.

Techno-Economic Parameters

Technical Parameters

Expense Parameters

Income Parameters

Pig Farm Shed Area Calculation

Floor space for dry saw and furrowing pen is calculated considering 50% of sows are allowed to furrow at a time.

Heard Projection

Feed Calculation

Production Calculation

* Estimated no. of empty gunny bags per tonne of concentrated feed is 20.

Project Cost

Working Capital Computation

The working capital is computed for the first 9 months when the first batch of fatteners will be sold and the farm starts generating revenue.

Pig Farming Profit

(All figures are in Rs.)* The gross surplus for the 1^st year has been added with the working capital as the working capital has been capitalised as recurring expense for the first year of the project cost (11).

Some Frequently Asked Questions