The Possible and the Impossible

The Impossible

Profits per pig vary according to the cost of feed and the market price of pork. In the wean-to-finish model where the producer buys small pigs and sells them to a processing plant or a pork wholesaler the profit per pig seldom exceeds $75 MEX or $7 USD. If one family raises 10 pigs a year and sells them to a wholesaler, their total income of $755 MEX/$69.50 USD per year would not even pay the interest on the loan that would be required to put this in business. Refer to the following charts:

The Possible

Selling backyard pork directly or almost directly to the consumer has multiple advantages. Initially, it is made possible by using the 40’ shipping container that delivers the required equipment as a production facility.  The attached shipping manifest includes a door and 2 windows that can are to be installed in the container to facilitate its transition into a meat processing facility. Before examining the other advantages of the meat processing plant, we can see clearly the financial advantage of selling the local consumer by referring to the following chart:

The producer’s monthly income will nearly double once the capital development loan is paid back.

The Excel Spreadsheet Business Plan Calculator associated with this engineering study found at http://helpforthehungry.focuspage.com/Backyard%20Agriculture/Backyard%20Farming%20Business%20Plan.htm makes it possible to change the assumptions regarding market values and costs. The spreadsheet instantly shows the effect of changing these assumptions. This calculator is intended as a tool for coordinating agencies to use to make decisions regarding sponsoring backyard agriculture projects.

Even when the added costs of labor are included, the advantage of selling directly or nearly directly to the consumer is clear.

Market and Economy Realities

In some cases, the woman raising the pork may not be able to afford the pork for their families. In these cases, profits may be distributed as meat or the individual may elect to work in the meat processing plant in exchange for meat.

One of the purposes of having a local meat processing plant is to make meat available to the local population. In many instances, the local consumer may not have cash to buy meat. It is recommended that a bartering system be established that will allow consumers to purchase meat with equivalent value produce that can be sold locally or transported to a nearby market.