Pig farming in Uganda, Haraam or Hidden Pearl?

When considering this business for investment, one must be mindful of religious sensitivities, especially as about 12% of Uganda’s 35 million people are Muslim. This is around 4.3 million people, and therefore quite significant, as it would be almost forbidden (loosely translated means taboo or “forbidden” in Arabic) to start this business in a neighborhood that has a sizeable Muslim population, such as Mbale, my hometown.

While on the religious subject, it is worth remembering that Matthew 7:6 says; “Do not throw your pearls to pigs. If you do, they may trample on them and then turn around and tear you to pieces.”

I recently invested in a 50/50 joint venture with a family friend to start a pigsty project in Mbale. I provided the initial working capital and he provided the land and housing. I’m still not sure if I’ve thrown away my pearls (ie money) because it’s been over 1 month and still no sign of the progress of the project in the form of photos or a progress report. His phone is off and I have no other means of contacting him.

He reminds me of another farmer friend I spoke to recently. Someone broke into his farm in Jinja and ran off with 3 adult pigs, squealing and everything I imagine. His security guard told her that he was drunk at the time and therefore did not hear anything. However, I believe that (the pigs) were stolen in collusion with the security guard because; firstly, an adult pig weighs about 120kg and secondly, they can squeal as loud as, say, 130dB. To put this into perspective, this is considered louder than the highest safe level for hearing (120 dB). Other sources compare the screeching of a frightened pig to the sound level of a plane taking off, i.e. 113 dB. Either way, that’s pretty loud.

So it’s hard to understand how these 3 adult pigs were robbed without the guard batting an eyelid, drunk or not.

The first rule of thumb for setting up this business in Uganda is to make sure you have reliable business partners or employees or else you will lose your “pearls” to pigs (literally).

There are other considerations you should consider before investing in this sector.

CONS FIRST

1. Food

Pigs eat huge amounts. A fully mature pig, especially one raised for commercial purposes, will eat around 3.4kg per day. A growing one eats an average of 2.02 kg. If you are buying animal feed, which consists mainly of maize flour, the cost will be significant, especially given the constant increase in maize prices in Uganda (due to droughts). You have two options to offset this high cost:

• Option 1: Grow your own food, ie corn and vegetables to feed them and supplement with protein (eg fish or soybean meal).
• option 2: Make sure the farm is located near a major boarding school and/or a hotel/restaurant so that you can pay almost nothing for “Swill” i.e. leftovers like corn/corn flour (called “Posho” in the slang local) and beans from schools (maize flour and beans are a staple food in Ugandan boarding schools and are readily available). Another alternative but cheap source of protein is Dagaa/Omena fish (called “mukene” in local slang). After all, pigs are omnivores and will eat literally anything (don’t feed them rotten food though).

2. Cash Flow/Working Capital

Like most activities related to agriculture, particularly in Uganda, you need to have cash on hand and particularly for at least 11 months (growth and gestation period for pigs) before you start earning from the sale of the pigs. This is an especially key consideration as advanced credit card services do not exist and agricultural loans, especially without security, are difficult to come by in Uganda.

3.Diseases

Pigs are susceptible to various diseases and it is not uncommon for the government to quarantine entire districts after outbreaks of diseases such as the deadly African swine fever. Therefore, it is essential that, as part of the start-up, you establish an arrangement with a veterinary officer who will be available for scheduled immunizations, routine check-ups and emergencies. The government program under the NAADS scheme can help provide free or subsidized veterinary services; however, I recommend a private arrangement to ensure regularity, as public officials in Uganda are sometimes unreliable.

4. Water source.

Pigs do not have sweat pads, and therefore, to cool off, they need water (or a “mud bath”). Similarly, you need water to cleanse your pansies and feeding areas, especially as your population increases, and it does so quickly! Therefore, it is essential to have plenty of water. Therefore, I recommend that you set up the farm near an easy water source, such as a swamp, or set up a water tank to collect rainwater. These are the cheapest and most effective options in Uganda compared to supplying piped water from the water supply company, NWSC.

AND NOW THE PROS

1. Less intensive management.

As long as you invest in good accommodation that, for example, properly separates lactating sows from the rest, has separate eating and sleeping areas and the like, then with a little land you can easily manage short-staffed pig farming.

2. Return on demand.

Many sources believe that this sector is one of the most profitable businesses in animal husbandry, especially as they require less intensive management compared to, for example, poultry farming or milk production. Profitability in Uganda is driven by huge demand for pork.

According to a Uganda Bureau of Statistics livestock census in 2008, there were just over 3.1 million pigs. Assuming growth rates since then based on the growth of the economy (real GDP) which was around 7.2% in 2009, 5.20% in 2010 and 6.4% in 2011, then the pig population is estimated at 4.3 million in 2012. This is still a very small number, especially when compared to chicken, which according to the same census exceeded 37 million in 2008 and was therefore estimated (on the same basis as the growth of the GDP) at 44 million in 2012.

I can expect that there will be a continued demand for pork and over time other industries related to pork products such as sausages, bacon, ham and the like will develop, particularly as income levels of the population increase. (driven by economic growth).

Based on a model analysis I have developed, I summarize the profitability of this sector as follows:

Return on capital

• Initial capital (including working capital for 11 months) (A): Shs. 7,738,248
• Income per year (B): Shs. 2,681,086
• Return on Investment/Capital (years to recover capital) (A/(B): 2,886 years.

*Earning is calculated over a 14-month period consisting of Season 1 and Season 2.

It should be noted that the original investment/startup capital will continue to be recouped in Seasons 3 and beyond as the Season 1 and Season 2 piglets mature.

last word

In light of the quick return on investment, this is definitely a sector worth looking into.