A 10-head fattening batch needs ₱100,000 to ₱145,000 in working capital, with no revenue for 4-5 months and the deepest cash hole at month 4. Feed alone eats 65-70%. Plan around 95 kg market weight, ₱185/kg liveweight, and 5% mortality, and your breakeven price lands near ₱126/kg. Get those three numbers right before you buy your first piglet.
"Ayaw palit og baboy kung wala pa ka kahibaw pila imong magasto." (Do not buy pigs if you do not yet know how much you will spend.)
Free Tool
Pig Setup Planner
Not sure which model fits? 8 questions, get a recommended setup with capex range and a checklist — then anchor the rest of this plan to it.
Why You Need a Plan (Even for 5 Pigs)
A pig farming business plan answers three questions:
- How much money do I need upfront? Capital for piglets, pen, first 2 months of feed.
- When does money come back? Revenue arrives only at sale, 4-5.5 months later.
- What kills the business? ASF outbreak, feed price spike, mortality above 10%.
Without written answers to these questions, you are guessing. And guessing with livestock is expensive. I have watched farmers in Leyte and Bohol lose ₱80,000-₱150,000 on their first batch because they didn't know their own breakeven price.
Step 1: Define Your Operation
Before projecting numbers, decide what you are building.
| Decision | Option A | Option B | Notes |
|---|---|---|---|
| Scale | 5-10 head (backyard) | 20-50 head (semi-commercial) | Start small, scale after 2 profitable batches |
| System | Fattening only (buy weaners) | Farrow-to-finish (own sows) | Fattening is simpler and less capital-intensive |
| Breed | Landrace/Large White cross | Native or native cross | Commercial crosses grow faster but cost more to feed |
| Feed strategy | 100% commercial feeds | Mixed (commercial + local ingredients) | Mixed is cheaper but needs more knowledge. See cheapest way to feed pigs |
| Location | Rural (Visayas, Mindanao) | Peri-urban (near Metro Manila, Cebu) | Peri-urban has higher land costs but closer markets |
For first-time farmers, the safest entry point is: 5-10 head fattening, commercial crossbreeds, 100% commercial feed. It is not the cheapest model, but it has the most predictable costs and timeline. You can optimize later once you actually know your numbers. Most farmers who try to optimize from day one end up confused and underfed pigs. Before you commit, see pig farming profitability by scale for how margin and capital change at 5, 10, 25, 50, and 100 head, this is where most underplanned farms pick the wrong tier and run out of money mid-batch.
Step 2: Capital Requirements
You need two types of capital: fixed (one-time) and working (per batch).
Fixed Capital (One-Time Investment)
| Item | Estimate (5-Head Setup) | Estimate (10-Head Setup) | Notes |
|---|---|---|---|
| Pig pen construction | ₱15,000 - ₱30,000 | ₱25,000 - ₱50,000 | Concrete floor, GI roof, wooden posts. See how to build a backyard piggery |
| Feeders and waterers | ₱2,000 - ₱4,000 | ₱4,000 - ₱8,000 | Concrete trough or rubber tire feeders |
| Water system | ₱1,500 - ₱3,000 | ₱2,500 - ₱5,000 | Nipple drinkers + PVC pipe from water source |
| Manure pit / composting area | ₱2,000 - ₱4,000 | ₱3,000 - ₱6,000 | Required by municipal ordinances in many LGUs |
| Tools (shovel, hose, sprayer) | ₱1,000 - ₱2,000 | ₱1,500 - ₱3,000 | |
| Total fixed capital | ₱21,500 - ₱43,000 | ₱36,000 - ₱72,000 | Amortize over 5-10 years (10-20 batches) |
Working Capital (Per Batch)
| Item | Per Head | 5-Head Batch | 10-Head Batch |
|---|---|---|---|
| Weaner piglets (8-12 kg) | ₱2,500 - ₱4,000 | ₱12,500 - ₱20,000 | ₱25,000 - ₱40,000 |
| Feed (all phases, 4-5 months) | ₱6,500 - ₱9,000 | ₱32,500 - ₱45,000 | ₱65,000 - ₱90,000 |
| Vaccines and medications | ₱200 - ₱500 | ₱1,000 - ₱2,500 | ₱2,000 - ₱5,000 |
| Utilities (water, electricity) | ₱100 - ₱300 | ₱500 - ₱1,500 | ₱1,000 - ₱3,000 |
| Contingency (5% of total) | ₱465 - ₱690 | ₱2,325 - ₱3,450 | ₱4,650 - ₱6,900 |
| Total working capital | ₱9,765 - ₱14,490 | ₱48,825 - ₱72,450 | ₱97,650 - ₱144,900 |
Feed is 65-70% of your working capital. If you're using B-MEG or Thunderbird commercial feeds, expect ₱1,800-₱2,100 per 50kg sack for grower/finisher phases (as of early 2026). Prices in Mindanao tend to run ₱50-100/sack cheaper than Metro Manila due to lower logistics costs.
The number that matters: for a 10-head fattening batch, you need roughly ₱100,000-₱145,000 in working capital with no revenue for 4-5 months. If that amount will cause financial stress, start with 5 heads.
Do not count on income from a job or other source to cover months 3-4 feed costs. Life happens. If you cannot set aside the full working capital before buying piglets, you are not ready for 10 heads. Start with 5.
For detailed per-head cost breakdown, see cost to raise a pig in the Philippines. If your funding is from an OFW relative or any absentee owner, also read the real cost of a Philippine pig farm for OFW investors, it covers the line items (land, hired labor, biosecurity capex, financing) that family operators routinely omit when pitching the budget back home.
Step 3: Revenue Projections
Revenue depends on three things: market weight, price per kilo, and mortality rate.
| Scenario | Market Weight | Liveweight Price/kg | Gross Revenue/Head | Mortality | Sellable Heads (of 10) | Total Revenue |
|---|---|---|---|---|---|---|
| Conservative | 90 kg | ₱170/kg | ₱15,300 | 10% | 9 | ₱137,700 |
| Moderate | 95 kg | ₱185/kg | ₱17,575 | 5% | 9.5 | ₱166,963 |
| Optimistic | 100 kg | ₱200/kg | ₱20,000 | 3% | 9.7 | ₱194,000 |
Do not plan using optimistic numbers. Use conservative or moderate projections. If reality beats your plan, that's a bonus, not a surprise shortfall. Most first-time farmers assume optimistic and then panic when one pig dies and prices dip ₱15/kg in the same month.
Liveweight prices fluctuate by ₱15-30/kg across seasons and regions. Davao and Central Visayas typically get ₱5-15/kg more than Western Visayas or SOCCSKSARGEN. Check current prices at liveweight pig prices by region.
Step 4: Profit and Breakeven Analysis
Using moderate assumptions for a 10-head batch:
| Line Item | Amount |
|---|---|
| Total working capital invested | ₱120,000 |
| Gross revenue (9.5 heads @ ₱17,575) | ₱166,963 |
| Gross profit | ₱46,963 |
| Fixed cost share (amortized per batch) | ₱3,500 |
| Net profit | ₱43,463 |
| Return on capital | 36% |
| Breakeven price per kg | ₱126/kg |
As long as liveweight price stays above your breakeven (₱126/kg in this example), you make money. Over the last five years in Central Visayas and Davao, liveweight has only dipped below ₱130/kg during severe ASF oversupply periods. That's a decent safety margin.
Free Tool
Pig Profit Simulator
Drop your local weaner cost, feed price, and farmgate price into the simulator to project net profit and ROI for your specific batch size before you commit capital.
For a deeper look at 10-head batch economics, see pig farming profit for 10 pigs.
Step 5: Cash Flow Timeline
Cash flow is the part most plans ignore. You spend heavily in months 1-2 and get nothing back until month 5-6.
| Month | Cash Out | Cash In | Cumulative |
|---|---|---|---|
| Month 1 (buy piglets + starter feed) | ₱55,000 - ₱70,000 | ₱0 | -₱55,000 to -₱70,000 |
| Month 2 (grower feed) | ₱18,000 - ₱25,000 | ₱0 | -₱73,000 to -₱95,000 |
| Month 3 (grower/finisher feed) | ₱18,000 - ₱25,000 | ₱0 | -₱91,000 to -₱120,000 |
| Month 4 (finisher feed) | ₱15,000 - ₱22,000 | ₱0 | -₱106,000 to -₱142,000 |
| Month 5 (sell) | ₱2,000 - ₱3,000 | ₱140,000 - ₱195,000 | +₱30,000 to +₱55,000 |
The deepest cash position is month 4. You are ₱106,000-₱142,000 in the hole with pigs still a month from market weight. This is where undercapitalized farms cut feed quality, sell early at 70-80 kg (losing ₱2,000-₱4,000 per head in potential revenue), or borrow from lending apps at 3-5% monthly interest. All three destroy margins.
Plan for it: have the full working capital available before you buy piglets. Do not assume you can earn money from other sources to cover month 3-4 feed.
If you need financing, the DA-ACPC Agri-Negosyo Loan Program offers credit at 2% per annum (not per month) through accredited rural banks and cooperatives. That's far better than 5-6 lending app loans stacked together. Check with your Municipal Agriculture Office for ACPC-accredited lenders in your area.
Step 6: Risk Assessment
Every plan needs a section on what can go wrong. And in Philippine pig farming, the list is real.
| Risk | Probability | Impact | Mitigation |
|---|---|---|---|
| African Swine Fever (ASF) outbreak | Moderate (area-dependent) | Catastrophic, 100% mortality, no treatment | Strict biosecurity, quarantine new pigs, avoid swill feeding. See ASF recovery era farming |
| Feed price spike (+20-30%) | Moderate | Reduces profit by ₱10,000-₱20,000 per batch | Budget at 10% above current prices; consider alternative feeding |
| Liveweight price drop | Moderate | Can erase margins entirely | Know your breakeven; hold pigs 1-2 weeks if price is temporarily low |
| Disease outbreak (non-ASF) | Moderate | 10-30% mortality, treatment costs | Vaccination schedule, clean water, sanitation |
| Typhoon / flooding | Seasonal (Jun-Nov) | Pen damage, stress mortality | Elevated pen floor, sturdy roof, emergency feed supply |
ASF deserves special attention. If your municipality has been in a Red or Pink zone in the past 12 months, your risk is higher. The FAO ASF situation in Asia page tracks current status, and your municipal vet office can tell you your current zone classification under DA Administrative Circular No. 2, Series of 2022. Biosecurity is not optional. Budget for it from day one. A ₱2,000-₱5,000 footbath and quarantine setup can save a ₱120,000 batch.
One risk that does not fit cleanly in the table is fraud. If you are accepting outside capital (family, OFW relatives, partners), or if you are sourcing breeders, feed, or contract-buyer arrangements from people you do not know personally, read the seven most common pig farming scams in the Philippines before any money moves. Most failed startups in this space did not lose to disease, they lost to a "guaranteed buyer" who never existed. If the capital is coming from an OFW relative specifically, our due-diligence guide for OFW pig-farm investors walks through the SEC red-flag checklist and the family-trust risk patterns that are unique to remittance-funded farms.
Step 7: Simple Business Plan Template
Here is a one-page template structure. Fill it in with your actual numbers.
1. Operation Summary
- Location, number of heads per batch, batches per year, breed, feed strategy
2. Capital Budget
- Fixed capital table (pen, equipment, water system)
- Working capital per batch table (piglets, feed, vaccines, utilities)
- Total startup capital needed (don't forget the 12 hidden CAPEX items most plans miss: permits, septic, deep well, biosecurity, generator)
3. Revenue Projection
- Target market weight, expected liveweight price range, mortality assumption
- Revenue per head and per batch (conservative scenario)
4. Profit Projection
- Total cost vs. total revenue
- Breakeven price per kg
- Return on capital percentage
5. Cash Flow Schedule
- Month-by-month cash outflow and inflow
- Maximum cash needed (month 4)
6. Risk Plan
- Top 3-5 risks with mitigation strategies
- Insurance or emergency fund provisions
7. Growth Plan
- Criteria for scaling up (e.g., "after 3 consecutive profitable batches, add 5 heads")
- When to consider farrow-to-finish vs. fattening only
Common Mistakes in Pig Farm Business Plans
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Using optimistic numbers everywhere. Budget with conservative prices and moderate mortality. If you plan for ₱200/kg liveweight and it drops to ₱170, your "profitable" farm suddenly is not.
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Forgetting the cash flow gap. You need all the capital upfront. Revenue comes 4-5 months later. Many farmers borrow from 5-6 lending apps at 3-5% monthly interest, which destroys any profit. I see this constantly in the backyard scene.
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Not budgeting for mortality. Assume 5-10% mortality for backyard operations. Zero mortality is possible but should not be your base case.
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Ignoring feed price volatility. Feed prices in the Philippines have swung ₱200-₱400 per sack within a single year. Build a 10% buffer into your feed budget.
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No biosecurity budget. Honestly, this is the most common one. A ₱2,000 footbath and quarantine area can save a ₱120,000 batch.
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Skipping LGU registration. You need a barangay clearance and municipal business permit to operate legally. Some LGUs also require a sanitary permit and environmental compliance certificate for farms above 20 head. Registration is cheap (₱500-₱2,000 total) and gives you access to DA programs, PCIC livestock insurance, and legal protection if a neighbor complains about smell.
Making the Plan Work
A plan is only useful if you update it. After each batch:
- Record actual costs vs. projected costs
- Calculate actual profit and actual FCR (use our FCR calculator)
- Identify the biggest cost overrun and fix it for the next batch
Farmers who keep records consistently outperform those who do not. Not glamorous work, di gyud siya exciting. But knowing your actual FCR is 3.2 instead of the assumed 2.8 tells you exactly where money is leaking. That 0.4 difference is roughly ₱1,500-₱2,000 per head in wasted feed.
Keep a simple notebook per batch: date started, number of piglets bought, price paid, weekly feed purchases (brand, kg, cost), any medications, date sold, weight at sale, price received. After 2-3 batches with records, you will know your real numbers better than any business plan template can predict.
For a complete production cycle framework, see SwineFlow: building a profitable pig farm.
Bisaya / Cebuano
Para sa mga mag-uuma nga bag-o pa lang magsugod
Unsaon paghimo og plano sa negosyo sa baboy:
- Ilista ang tanan nimong gasto. Presyo sa piglets, feeds, bakuna, kuryente, tubig. Ayaw kalimti ang bisan usa.
- Ibutang sa papel ang imong cash flow. Pila ka bulan ka mogasto bago mobalik ang kwarta? Kasagaran 4-5 ka bulan.
- Hibal-i ang imong breakeven price. Pila ang minimum nga presyo sa liveweight aron dili ka malugi? Gamita ang Break-Even Calculator.
- Planohi ang risgo. ASF, mahal nga feeds, sakit sa baboy. Kung wala kay plano para ani, maproblema ka.
- Sugdi og gamay. 5-10 ka ulo lang sa. Pagkahuman sa 2-3 ka batch nga ganansya, mao na ka mag-expand.
"Ang negosyo sa baboy, dili ra basta pagpakaon, kinahanglan sad og pag-ihap." (The pig business is not just about feeding, you also need to count.)
Learn More
- Cost to raise a pig in the Philippines: full cost breakdown per head
- Pig farming profit for 10 pigs: real numbers for a backyard batch
- Pig farming breakeven calculator: interactive breakeven analysis
- SwineFlow: profitable pig farm framework: production cycle management
Sources: FAO Pig Production guidelines; PSA Quarterly Livestock Statistics; Philippine Institute for Development Studies (PIDS) small-scale hog farming analysis; DA-BAI Good Animal Husbandry Practices for Swine (GAHP); DA-ACPC Agri-Negosyo Loan Program; ThePigSite feed economics; DA Administrative Circular No. 2, Series of 2022 (ASF Zoning).
