Pig Kingdom FarmProject feasibilty Study and Evaluation . Aj. chaiyawat Thongintr. Mae Fah Luang University (MFU) 2010

8/14/2019 Pig Kingdom FarmProject feasibilty Study and Evaluation . Aj. chaiyawat Thongintr. Mae Fah Luang University (MF

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Group 18

Pig Kingdom Farm

Section 2

Miss Krittaya Warasit ID: 5031205003

Miss Chutima Yaotanee ID: 5031205025

Miss Chetsopit Tongsawat ID: 5031205026

Miss Nattharin Yaem-Uthai ID: 5031205030

Miss Prapatsorn Luangpuangtong ID: 5031205043

Mr. Aekapong Temsirimongkol ID: 5031205098

Miss Siriporn Chinnawong ID: 5031205186

Miss Pirada Mora ID: 5031205207


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Chapter 1: Introduction

Background and significance of the project

Swine farm is a kind of business that is quite interesting for the investors. It is one

of the businesses that can gain high profit easily in the districts called Chiang Saen.

Besides, almost 95% of Chiang Sann citizens consume pork. Chiang Saen district has

been chose to be the target place in locating the swine farm. In Chiang Saen, there are

estimated 8,070 people who live in Chiang Saen. In other words, the estimated amount of

household in Chiang Saen is 2,117. In addition, the numbers of the pork consumers in

Chiang Saen are increasing because the Chiang Sann district is likely to be close to the

area that has high expanded level of the business industry such as the Laos border. When

the business industry expands, the amount of people living in that area will also increase.

The advantages that the swine farm will get from the location of the district are the

business growth as well as the improvement of the business industry.

The swine farm project is an effective business. The profit can gain in both way;

direct and indirect. The direct way to get the profit from the swine farm is swine, a core

product. We can sell the swine to butchers in the market of Chiang Saen district. The

middle man will turn a pig to the pork and sell to the 2,117 households that live in Chiang

Saen. Chiang Saen district is divided in 9 villages. The 2 villages are located in the

central part of the district called Wiang. The 7 villages are located in the outer area of

Chiang Saen. Apart from the direct product which is the swine, we can gain more profit

from dried pig excrement transformed into organic fertilizer which is the indirect product.

The organic fertilizer from the pig excrement can be sold to the agriculturists and farmers

in the area of Chiang Saen district. More than 70% of people in the district are the

agriculturists. The estimated amount of the agriculturist in the district is 17,894.

Therefore, this indirect product is quite valuable because the agriculturist can earn 15

baths per a kilogram of the pig excrement.

The key to succeed in this project composes of the good planning, the preparation

of facing with the unexpected problems, the solutions, and the importance of the capital

together with profit. The monetary matters are very important. We can calculate the

income of the business and its profit in each day. After computing the rate of profit in

each month, we find that the swine farm can earn about 638,715 baht per month. The

expenses of the farm are not included income during the first period. This amount of

income can help business in the long term development. The swine farm can be expanded

and covered many areas in future. The swine farm can be grown and expanded rapidly in


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the period of 5 years. When the target is being the best farm among the others, the farm

doer has to respond to the needs of the consumer and prevent the farm from the risky

effect such as the epidemic in swine, the price rate of the pig in the down economy

situations. However, these kinds of problem affect directly to the people who want to

invest in the farm industry. It might degrade the desire of the investors. Another main

thing that we can notice is the need for the big amount of fund in doing the swine farm.

This business needs big amount of money to support the business when it turns into

critical situations. There are a lot of difficulties in starting the swine farm, but this kind of

investment provides the long term benefit which it is still worth to do.

Project objectives

1. To study the significant of swine farm.

2. To know about the benefit of swine farm.

3. To practice planning and writing a frame of activities / time in Gantt chart.

4. To study about the environment of swine farm business.

5. To study how to analysis about the marketing of swine farm.

6. To study which factor is concerned about swine farm business.

7. To analysis the nature of industry and situation of the swine farm.

8. To practice development planning for swine farm.

9. To practice process planning for wine farm.

10. To analysis the process of the swine farm establishment.

11. To study which strategy of management suits for the swine farm business.

12. To analysis about the competition (3C Analysis).

13.To study the importance of financial analysis to operate resources.

14.To practice for writing the financial statement of the swine business.

15. To study how to do sale forecast and how to estimate profit.

Benefit of project

This project focuses on explaining analytical methods and useful techniques in

different facets of capital budgeting. The explanation makes us know how to plan

marketing method and we also analyze in each factor of marketing, measure of the

strategy of business and qualitative. The numerous examples have been included to

illustrate the method that can evaluate about growth of business and also prepare

themselves to face some situation which may happen. We study techniques and


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organizational considerations which impact on capital budgeting decision. It also

describes and evaluates the business practices in various areas.


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Activities / Time frame

Month

1 2 3 Process

1 2 3 4 5 6 7 8 9 10 11 12 13

1. Brainstorm and choose the swine farm.

2. Study the information of the swine farm and survey the

market demand.

3. Survey he area for establishing the swine farm and checking

the price at Chiang Sean District, CR.

4. Study the Evaporative Cooling System farm.

5. Provide the constructor, make an agreement & agree to a

price

6. Construct the Evaporative Cooling System farm.

7. Set the equipment such as electric system, cleaning system.

8. Require to cattle for license to open the farm.

9. Spray the anti- microorganism

10. Survey to find the swine breeding and piglet sources.

11. Make an agreement of price and buy 500 piglets.

12. Purchase of swine the one lot


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Month

Process 6 7 8

21 22 23 24 25 26 27 28 29 30 31 32 33 34

13. Purchase the one lot of swine

14. Purchase the swine the two lot

15. Period of sale the one lot

16. Purchase the three lot of swine

17. Period of sale the one lot

MonthProcess

11 12 13 1

41 42 43 44 45 46 47 48 49 50 51 52 53 54

18. Period of sale the two lot

19. Purchase the four lot of swine

20. Period of sale the two lot

21. Period of sale the three lot

22. Purchase the five lot of swine

23. Period of sale the three lot

24. Period of sale the four lot

25. Purchase the six lot of swine


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Month

Process 16 17 18

61 62 63 64 65 66 67 68 69 70 71 72 73 7

26. Period of sale the four lot

27.Period of sale the one lot

28. Purchase the seven lot of swine

29. Period of sale the five lot

30. Period of sale the six lot

31. Purchase the eight lot of swine

32. Period of sale the six lot

MonthProcess

21 22 23

81 82 83 84 85 86 87 88 89 90 91 92 93 9

33. Period of sale the seven lot

34. Purchase the nine lot of swine

35. Period of sale the seven lot

36. Period of sale the eight lot

37. Purchase the ten lot of swine

38. Period of sale the eight lot

39. Period of sale the nine lot

40. Purchase the eleven lot of swine


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Mouth

26 27 28 Process

101 102 103 104 105 106 107 108 109 110 111 112 113 1

41. Period of sale the nine lot

42.Period of sale the ten lot

43. Purchase the twelve lot of swine

44. Period of sale the ten lot

45. Period of sale the eleven lot

46. Purchase the thirteen lot of swine

47. Period of sale the eleven lot

Month

31 32 33 Process

121 122 123 124 125 126 127 128 129 130 131 132 133 13

48. Period of sale the twelve lot

49. Purchase the fourteen lot of swine

50. Period of sale the twelve lot

51. Period of sale the thirteen lot

52. Purchase the fifteen lot of swine

53. Period of sale the thirteen lot

54. Period of sale the fourteen lot

55. Purchase the sixteen lot of swine


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Month

Process 46 47 48 4

141 142 143 144 145 146 147 148 149 150 151 152 153 154

71. Period of sale the nineteen lot

72.Period of sale the twenty lot

73. Purchase the twenty-two lot of swine

74. Period of sale the twenty lot

75. Period of sale the twenty-one lot

76. Purchase the twenty-three lot of swine

77. Period of sale the twenty-one lot

Month

Process

51 52 53 54

161 162 163 164 165 166 167 168 169 170 171 172 173 174

78. Period of sale the twenty-two lot

79. Purchase the twenty-four lot of swine

80. Period of sale the twenty-two lot

81. Period of sale the twenty-three lot

82. Purchase the twenty-five lot of swine

83. Period of sale the twenty-three lot

84. Period of sale the twenty-four lot

85. Purchase the twenty-six lot of swine


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Month

Process 46th 47th 48th

181 182 183 184 185 186 187 188 189 190 191 192 193

86. Period of sale the twenty-four lot

87. Period of sale the twenty-five lot

88. Purchase the twenty-seven lot of swine

89. Period of sale the twenty-five lot

90. Period of sale the twenty-six lot

91. Purchase the twenty-eight lot of swine

92. Period of sale the twenty-six lot


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Chapter 2: Industry Profile

Nature of Industry

The swine industry in Thailand

Pork has become the second most important meat in Thai consumption, with

average consumption in the late 1990s of about 4.7 kg per person per year. This

consumption would have been much higher were it not for the governments restrictive

policies towards the slaughtering industry in the view of Siamwalla, Setboonsarng and

Patamasiriwat (nd). They point out that the restriction on the slaughtering industry also

has disadvantaged the beef industry.Development of pig production started in 1960 when the first groups of exotic pig

breeds were imported by the Department of Livestock Development from the United

Kingdom. These were Large Whites, Tamworth and Berkshire breeds. Later, Landrace

and Duroc Jersey breed pigs were imported from the United States. Up until these exotic

breeds were introduced, farmers relied on the relatively slow growing native pigs that had

the desirable quality of not needing much in the way of traded inputs. The imported pigs

were used for breeding improvement and were cross bred with the native pigs (Kanto

1991). Throughout the 1960s and 1970, crossbred pigs were raised by backyard

producers for consumption by the farm family and also as a source of income. Kehren

and Tisdell (1996) point out that while pigs generated the largest value added in the

livestock sector in 1975, the virtual stagnation of the industry up through the 1980s was

to a large degree due to government intervention that discouraged private investment in

the pig industry.

Sornnuwat (1994) says that swine production in Thailand follows a cycle,

determined by the pig price. This can lead to boom-bust cycles of the type that occurred

in the early 1980s. As a result of an oversupply of pigs in 1984 and 1985, pig raisers

suffered heavy losses (Sornnuwat 1994). Heavy losses were expected again in 1987 had it

not been for an outbreak of swine disease in the Central, Thailands main producing

region (Table 5.1). This region has about 50 percent of Thailands pig population. The

Southern has the smallest number of pigs, possibly reflecting the higher cost of pig

fattening because of a shortage of feed in this region. An alternate explanation could be

that the southern part of Thailand has a relatively high Muslim population for whom


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consuming pork is prohibited. Most of the pork produced in Thailand is consumed

domestically because of the presence of foot and mouth disease in some of the producing

areas in Thailand. Export markets are limited to Hong Kong, Vietnam and Singapore.

Finished (processed) pig meat based products are more widely exported. Most of the

industrys output comes from small or medium sized farms as these dominate the

industry (Table 5.1). According to Kanto (1991), modern swine feeding and management

systems from western countries have been accepted by farmers.

As we know most Thai people consume pork, so there are many entrepreneurs

who do the swine farm because this business provides more profits, The CPF was the

biggest company that does this business, they provide 70 farms around the country and

gain 20 percent of market share in swine industry (Prachachat Business) and 80 percent

of market share was the independent farm around the country. However, CPF can reduce

the cost of swine industries because they do this business in backward integration and

forward integration that affect to other entrepreneurs to close their business because they

have high cost and they do not have the distribution channels like the CPF.

The swine farm consists of two systems which are an Evaporative Cooling

System or closed system and an opened system. In developing areas, an Evaporative

Cooling System is appropriate for entrepreneurs. Although, it needs a lot of money in an

investment, but it provides clean, quality, and sterile. It also meets the standard of

livestock laws. On the other hand, the opened system is popular in the rural areas among

the local people because they can start the business with less investment and it lets swine

live and eat their feed with the nature. However, the quality of pork is different from

closed system due to uncontrolled the diseased from the nature, so it makes swine get

sick and become a pig pestilence. The Swine Influenza or Pig Flu has been affected

extremely the swine industry and made entrepreneurs close down their business.

Moreover, the lack of pork in the market and many problems occur following the Pig Flu

crisis.

Nowadays, the impact of Pig Flu makes the swine industry drive difficulty, but it

still has the opportunity to carry on this business because the livestock department creates

the law to control the situation and also set up the standard of swine house. Thus, it helps

entrepreneurs still survive in this industry. This creates more confidence of consumers

and increases the demand of the market as soon as everything will be better again.

Although, the swine industry is not in a perfect condition and doing this business

is not easy, but we see a chance to do the business because we can get profit not only


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from sell swine, but can also use and sell many utilities that we get from the swine farm;

for example, wastes from swine can be transformed into organic fertilizer and sell for

agriculturists or farmers and the biogas pond can produce the electric current and use in

the pig house.

Situation of industry

From the survey, we found both problems and benefits which are happening in the

market of swine industry.

Increasing the tend of swine export and import

It is not only the demand of domestic consumers, but there are also the needs of

neighboring countries, especially China. The China government faces the Porcine

Reproductive and Respiratory Syndrome (PRRS) problem and they have changed a

policy from domesticating swine for households into commerce. Therefore, the amounts

of swine decrease and are not enough for consumers within the country. These are the

cause why they need to import swine from Thailand. In addition, Japan is another country

that believes in the quality and standard of processed pork in Thailand, so it makes the

swine export from Thailand expand. However, Thailand has the pork imports from other

countries to produce the frozen food because the price of pork import is lower than the

price of pork in Thailand. This will cause the economic linkage problem; therefore, the

swine business is the business which has the opportunity to grow in the future because

the demand of swine, pork, and other pig products is high.


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STATISTICS OF IMPORT / EXPORT FOR SWINE AND PRODUCT (Jan Dec 2008)

Import ExportNo Menu Unit

Quantity Baht Quantity Baht1 Swine Head 257 16,294,629 189,930 717,750,990

Breeder Head 257 16,294,629 104,023 518,803,100

Piglet Head 56,752 79,590,890

Fattening Head 29,155 119,357,000

2 Pork Kg 2,803 1,142,245 5,747,604 538,342,811

Frozen pork

meatKg 153,257,947

Cool pork meat Kg 383,928,607

Other Kg 2,803 1,142,245 25,695 1,156,257

3 Meat product Kg 8,234,684 1,457,462,007

Cook pork meat Kg

4 Other product

Semen Dose 690 1,435,337

Visceral organ Kg 1,127,319 36,011,448 15 1,800

Hair Kg 35,210 6,833,471 136 80,798

Hide Kg 8,596,852 338,476,624 29,146 928,854

Total 9,766,191 417,630,628 14,417,140 3,970,580,263

Source: Number 1, 2, 4 International Animal Quarantine Station, Bureau of

Disease Control and Veterinary Service

: Number 3 Offices of Livestock Standard and Certification


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Source:

http://www.dld.go.th/ict/stat_web/yearly/yearly51/imex51/graph/graph_7.pdf

http://www.dld.go.th/ict/stat_web/yearly/yearly51/imex51.htm


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Strategy

- Corporate level

Concentration Growth Strategy

Because of the opportunity of pig kingdom farm in the Chiang Saen market, we

will select concentration growth strategy which emphasizes the study of researches,

production processes, and marketing for the study of the possibility of Pig Kingdom Farm

development and market expansion in the future. When beginning the business, we use

horizontal growth strategy to expand the business by controlling major competitors in the

Chiang Saen area. After we ensure the stability in the business we will select vertical

growth strategy to hold our own input, process, and output. Moreover, we use backward

integration to do the business in the form of a distributor or a supplier by using a fertilizer

produced from dried pig excrements for our wheat and corn cultivation. Therefore, pig

feed production can make us completely control the business and also reduce costs of the

pig feed and the deficiency of feed. In addition, we can get money from selling our pig

feed to other swine farms or agriculturalists.

Diversification Growth Strategy

We use concentric diversification which is production of a new product by using

technologies or knowledge related with the core product. Pig kingdom farm sell swine

which is the core product and also sell organic fertilizer produced from dried pig

excrements to agriculturalists or farmers which are the supporting product.

- Business level

Cost focus

There are many swine farms in Chiang Rai and we still lose the capability to

overcome competitors, so we use focus strategy which is to exploit a narrow targets

difference from the balance of the industry by serving swine near the area where we

chosen which is reducing the cost about the transportation and try to reduce the cost at the

production level. Therefore, pig kingdom farm reduce the cost by transforming dried pig

excrements into organic fertilizer using for plants which can be the feed for swine such as


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wheat and paddy. Moreover, we aim to maintain the high quality and standard of swine

and the price is nearby competitors in Chiang Saen area.

- Functional level

Human Resources

We want to generate the income to the community by hiring employees from the

local community. We do not need to hire the knowledge people to work in the farm

because this job only needs the patience people. Moreover, when we hire the local people

to take care of the swine farm, it can save costs in term of having human resources

department. According to the organization strategy, the vision is to develop and expand

the swine farm business into the Chiang Rai market and to be the number one of the

swine farm. Therefore, we need to train and give the knowledge to them about how to

take care the swine in the right way, the way to artificial insemination, how to feed the

swine with cleanliness, and the way to protect the diseases of the pig so on.

Marketing

In this part, we did not plan the complex strategy because the swine farm business

like Pig Kingdom Farm are in the type of SMEs Business and at this moment, there were

the problem about Swine Flu which affects to the market demand. It made the swine farm

business all the regions of Thailand receive the effect of the Pig Flu crisis. Thus, Pig

Kingdom Farm sets the strategy to solve the problem and to reduce the negative impact to

the swine business. We always keep the standard of swine in Pig Kingdom Farm.

However, we must have the certificate from the Livestock Department to confirm that our

farm concerns about quality of swine and cleanliness of the farm without the disease 100

percent. For the target group of customer, we focus only 2 groups; the agriculturists who

sell the pork in a small or retailers and theslaughter houses or wholesalers.

Operation

This part is about the management and organizing functions in the swine farm.

We divide it into four departments which are the swine caretaker, the general labor head,

the assistant of manager, and the animal nourishing in the farm and the swine caretaker

needs to use the human resource to be the main source of a farm and clean the farm, feed

the swine, hybridize, and protect the diseases of the pig. The general labor head control


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and monitor everything in the farm instead of us. They will response about take care of

and contact the consumers, the process to feed the swine, look forward to buy and sale

the breeders for the farm, ability to order and give the advice to the under level to work,

take care of the equipment and new technology that use in the farm, give the information

and train the under level to work and meet the standardization of the quality swine farm,

and summary the report and present the operational management of the production

processes. The assistant of manager is very important in every size of business. For Pig

Kingdom Farm we have to have the financial information deeply in every detail.

However, the Pig Kingdom Farm are just a small business, so we no need to hire the

accountant of the company and we transfer this function to the assistant of manager

responsibility who control the income statement and balance sheet of the company and

monitor everything following the general labor head. The animal nourishing man who

must create the confidence for consumers have to take care of the swine to be clean and

sterile and meet the standard of the livestock department.

Finance

For the investment of Pig Kingdom Farm, we loan the money from investors for 5

years and we have the policy to refund the principal and interest on time. Moreover, the

land for 2 rai in Chiang Saen is guaranteed to the investor and we expect that the

operation cost in the short-time must have a lot of money to build the farm, buy the pig

breeders, the feed, the hire the labor etc. Therefore, we use cost focus strategy at the

business level for reducing the cost. At the first time, we spend more money and after we

get the first lot of swine, we can create the secondary product from the savage of the

swine by processing it to be the fertilizer and sell to the agriculturists. Moreover, the

biogas can change to be the electricity and use in the farm 100 percent. These can create

the indirect income from supporting product and we can save the cost of the swine feed

by growing wheat and paddy which can be the feed for swine.


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Chapter 3: Market Feasibility Study

Market analysis

- General environment analysis

Politic

For the government policies that effect the swine farm in many ways as

following:

1. Special charge (Surcharge fee) import the raw materials for swine food that

also effect the high cost of production so the agriculturists loss profits.

2. The property tax, water bowels, social objectionable tax, etc. That can

create more cost for agriculturalists.

3. Set up and control the swine price by not concern about cost of production

and the way to survive of agriculturalists so it effect the income of the agriculturists

and many of them were closed their business because cannot hold all the costs.

4. Solve the problem of high price of swine by take care and satisfy the

consumers by arrow the agriculturalists to import the swine and sell in the country.

That will be effect to the agriculturalists that spend less budgeting because when the

swine cost drop down, the government does nothing to control the price or find the

international market.

5. The way to control the mouth and foot rot disease were not completely such

as high cost of vaccine, lack of vaccine, and low quality of vaccine that have been the

problems to export the swine.

6. The government doesnt pay any compensation for the agriculturalists who

face with the pestilence problem while doesnt have any punishment for the first

persons who discover the swine pestilence but didnt warning so the agriculturalists

need to protect themselves by decrease the cost and quickly sold the swine from the

farm to the slaughter that can expand the swine pestilence and danger for the

consumer.


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428,170 swine 1,316 million baht an in 2009, between January to October export the

swine 384,867 swine 850 million baht and Pock exporting products in 2009 between

January to October were 9,036 tons about 1,662 million baht. Therefore, can expect that

the trend of export the pocks and products in 2010 will be continuous expand 14 percent

in 2009 were expand 12 percent.

Source:

http://courseware.rmutl.ac.th/courses/110/unit302.html

http://www.phtnet.org/news52/view-news.asp?nID=658

http://www.thaibiogas.net/th/node/290

http://www.oknation.net/blog/print.php?id=58528

Economic

There are many factors which have affected to the Thai economy since 2005

2008 such as an increase in worldwide price of patrol and fuel, natural disaster, and

political issues. Therefore, the image of Thailand economy is unreliable which impacts

on a decrease in the number of investors who want to invest in Thailand. However, the

production process of food industry is increasing from 51 percent in 2005 to 57 percent in

2006. The production factors of each group are as following:

- The group of livestock: They are affected after epidemic spreading of birds flu

in Europe. The epidemic spreading also affected to the Thailands manufacture industry

of chicken. The manufacturing of it increase rapidly. It raises the value of Thai livestock

as well as Thailand economy. The increasing rate is at 8.5 percent. There is the

possibility in rising of the manufacturing from 2005 which is at 59.5 percent to 63.8

percent in 2006. The feed for animal is increasing in manufacture at 11.7 percent which is

the impact from the decrease of epidemic of birds flu. Other livestock and chicken

farming system are expanding their manufacture which is influent by the demand of

market. In other hand, the manufacture of feed for animal is also expanding especially the

manufacture of chickens feed increase to 6.5 percent and the manufacture of swines

feed increase to 19.8 percent.

- Domestic marketing in 2006 - 2008, the average selling condition of food

industry has increased from the past year at 7.5 percent. Even though the rise in price offuel and patrol is directly affected to the capital cost and logistic, it can lead to the


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inflation economy. The inflation has the influence on a price and the cost of raw material.

However, the level of the interest on a loan and deposit does not change, so the number

of sales will increase at 7 percent of livestock and at 8.4 percent of food for swine. The

effects of FTA bring the imported products to the country and it definitely becomes the

competitor of domestic products.

- Domestic marketing in 2009, the amount of selling in Thailand was increasing

at 2.9 percent at the same time in last year. It is caused by the proclamation of the

government which is related to the 6 way of distress mitigation with the changeability of

patrol and fuel price. It can affect directly to a price decline for somegood. Moreover, the

consumption is increasing in August to September and the overview of Thai economy

looks better. If we compared the 2008 and 2009, we will found the food marketing

increases at 1.4 percent. It shows that number of pork consumption is increasing which

tells us to plan for the future.

The tendency of the effects in the future has low possibility. However, the impact

will affect in short time after investment. Thai economy will develop well in 3 5 years

in the future based on the worlds economy.

Social

Chiang Saen is the big district in Chiang Rai. There are 47,141 persons that live

in Chiang Saen. Most local people in Chiang Saen breed swine in their house, but they do

not have enough money to build swine house or improve the area for swine. They do not

concern about the quality and safety of swine, so swine may get the disease which it

affects to people around the area. Nowadays, Chiang Saen district lack the swine farm

which get the standardization, cleanliness, and good management. Therefore, Pig

Kingdom Farm will be the best swine farm which provides the high quality of swine to

consumers in Chiang Saen.

For trade of swine in Chiang Saen, it is not enough because pork butchers and

swine wholesaler in Chiang Saen still buy the swine from outside Chiang Saen district.

However, Pig Kingdom Farm can attract them to purchase our swine which have the high

quality and they get convenience in going to buy the swine because our swine farm is

located in Chaing Saen district.


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Environment

The area in Chiang Saen is suitable to do the swine farm business because our

swine farm can be located far away from the community area around 2 kilometers

according the rule of the swine farm establishment. Therefore, we can decrease some

problems that occur from our swine farm such as air pollution and water pollution.

Moreover, Pig Kingdom Farm it can reduce the petition of communities about the smell,

sound and wastewater to government.

Technology

1. The biogas plant

The biogas plant consists of two components: a digester (or fermentation tank)

and a gas holder. The digester is a cube-shaped or cylindrical waterproof container with

an inlet in which the fermentable mixture is introduced in the form of liquid slurry. The

gas holder is normally an airproof steel container by floating like a ball on the

fermentation mix, cuts off air to the digester (anaerobiosis), and collects the gas

generated. In one of the most widely used designs, the gas holder is equipped with a gas

outlet, while the digester is provided with an overflow pipe to lead the sludge out into a

drainage pit.

2. Wastewater Treatment pond

The covered lagoon is the system that spends low cost to build. It does not need to

overtake care and it is appropriate with the farm which needs to use a lot of water a day.


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This system does not need to use the air because it is not a complex system to build and

this system has high performance of wastewater treatment.

3. Air flow system in the swine house

The function of ventilator or fan in the swine house is to vacuum air inside the

house to outside by setting up the honeycomb panel (the honeycomb panel will absorb

the water on the wall) in one side of the wall of a house and another side of the wall is the

ventilator. The damp from the honeycomb panel will spread around the house and make

the air in the house become cool; these will make the swine healthy, happy to eat more

food.

4. Dynamo

The gas from the biogas pond will be transferred to the generator and the

generator will produce the electricity to use in the farm.


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STP Analysis

Competition Analysis (3C Analysis)

- Competitor Analysis

Pig Kingdom Farm selects Evaporative Cooling System

used the closed-system and the advantages of closed-system are the cleanliness of

the swine house more than opened-system, the smell not bothers the local people than

opened-system and we can better control the swine diseases, so the swine in closed-

system will be more high quality as the large swine industry and stronger of investment.

Although the price of swine will a bit higher than competitors but we has the ability to

get into the retailers by provide the quality, clean and sanitary of pock near local

community. That is the reason that the consumer decide to buy our product and service.

- Customer Analysis

Consumers of Pig Kingdom Farm are the retailer in the district and in a nearby

district. Local people in Chiang Saen district currently feed themselves swine in their

household or buy from a nearby district. However, a demand for swine in each day is not

enough in the district and swine still lack good quality and standard.

According to the survey, the numbers of pock provider are 20 shops and the

quantities of consumer are 60 swine a day; however, the qualities of swine farm with

good management are the importance for consumers. Therefore, Pig Kingdom Farm has

to provide confidence and reliability for consumers.


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Retailer

Minor Group

wholesaler

- Competitive Analysis

The competitors of Pig Kingdom Farm can be divided into;

. Local pork providers are the main competitors of Pig Kingdom Farm in Chiang

Saen district. There are about 40 local swine farms which use opened-system and run

business by themselves. The advantage of opened-system of swine farm is low cost of

investment, but swine is easy to get disease.

2. Some pork providers buy pork from Tesco Lotus in Mae Chan district and

Macro in Ban Du district in order to sell because pork is already packaged up an the price

of pork is cheaper than buying from wholesalers. They sell pork in cheaper price, so pork

providers can gain more profits without concerning about the quality of pork.

STP Analysis

- Segmentation

Pig Kingdom Farm is the business which is different from other general business.

This business cannot separate the segmentation in various sectors, but our swine farm

divides the characteristic of our customers according to the customers demands as

following:

- The minor group of customer who needs 1 2 swine for their household

consumption.

- The group of customer who needs swine in a few amounts is classified

into retail group.

- The group of customer who needs swine in a numerous amounts is

classified into wholesale group.

Figure: The customer segmentation


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From the chart, we present the market segmentation of Pig Kingdom Farm. The

green color shows that the wholesaler is our main customer and we can get the most

profit from them because they need swine in the large amount. The wholesaler which we

focus on is the slaughter. The red and yellow color show the demand of market

segmentation respectively that are the small group who needs swine in the small number.

It is the second benefit which is less than the wholesaler. The customer that we focus in

this group is the butcher, villagers, or local people because they can purchase swine

directly from the swine farm.

- Target Market

From the research and the survey, the target market of Pig Kingdom Farm is

people who need the quality and standard swine. However, Pig Kingdom Farm is a new

farm, so we take a direct interest to people who relate with the swine industry. The main

target is wholesale group and the secondary target is retail group. We separate the target

from the occupations of customer that they have different demand. Thus, we divide the

target into:

- Slaughter

- Butcher

- Villagers or local people

- Product Positioning

Figure: The positioning of Pig Kingdom Farm


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- Pig Kingdom Farm is the standard swine farm which we have the management

and operation systematically in sterilization, so we are one of the best swine farms in

Chiang Rai which our swine has the higher quality. Moreover, we can easily access our

customers.

- The customers can have confidence of our swine which have the high

quality standard and safe from an epidemic because we have the effective

control system.

- Because of the higher demand of swine in the market at the present,

many farms sell swine in the low weight which it is without standard. However,

when we compare with competitors like a CP and a local farm, we are confident

in our ability to access customers which is better, faster, and easier than

competitors and we also have the higher standards of swine farm than a local

farm.

Marketing Mix Strategy

- Product

The products of pig kingdom farm are divided in 2 groups as following:

Core product

The core product of pig kingdom farm is swine that have the age around 5

month to 1 year. Swine from Pig kingdom farm has high quality and safety

because we use staffs to taking care, clean and check their health. Moreover, we

use an evaporative cooling system in swine house and our swine are guaranteed

from livestock department.


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Supporting Product

The supporting product of Pig Kingdom Farm is organic fertilizer

produced from pig excrement. We sell organic fertilizer to farmers or

agriculturalists and it also is used within the Pig Kingdom Farm.

- Price

From the observation of the market price to set swine price as following:

Core product: Swine price

Swines Age Weight /Kg. Price Unit

less than 100 55-57 Baht5 months 1 year

More than 100 58-59 Baht

Source of price: DIT, Department of Internal Trade (The setting price can be

changed depend on the market price)

Supporting product: Organic fertilizer price

Weight /Kg. Price Unit

2.5 10 Baht

12 30 Baht

50 120 Baht

Source of price: Ministry of Agriculture and Cooperatives (Thailand)

Pig Kingdom Farm use cost-plus pricing strategies to set the price by calculating

of average cost (AC) plus a mark up and it is not over the standard price. Moreover, we

use psychological pricing strategies to set the price which respond to the consumer

perception; for example, we have the cost which is 50 baht per kilogram and the standard

price is 61 baht per kilogram. Therefore, we will set the price at 59.99 baht because we

use psychological pricing strategies to make it cheap.


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- Place

Direct selling is the best way to sell our swine which leave out the marketing

intermediaries. Pig Kingdom Farm is located between Mae Chan and Chiang Saen

district. Therefore, we do not lose a proportion of the price which is paid to middleman

and our customers within Mae Chan and Chiang Saen district also receive the better

price.

- Promotion

Pig Kingdom Farm promotes swine directly to our customer in order to reduce the

cost of intermediaries. Word of mouth is the channel for promoting our swine farm to

customers and billboard in font of the farm is another way to promote our swine farm.

Furthermore, we are the sponsor of communities activities surrounding our swine farm

such as sport events and festival. This way can create the good relationship between our

swine farm and communities and it also reduces conflict between us.


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Sale forecast / Profit Estimation

In the first ten months, we establish the farm and feed the swine. Sales will

gradually increase and we will get profit in the beginning of eleventh month. We estimate

the demand of market tin first month about 5 percent for our farm and it will increase in

every month. In the fifth month, we will gain about 10 percent of market share and it will

increase to 50 percent. Moreover, it will decease to 17 percent in some month because of

the insufficiency of the amount of swine, decrease in demand, or diseases. However, Pig

Kingdom Farm has high performance in the safety, so the sale will increase and market

share will increase against.


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Sale Forecast in Year 1

Sale forecast in Year1

saleJan Feb. Mar Apr May Jun Jul Aug Sep Oct

swine- - - - - - - - 1,464,000 1,586,000

fertilizer- - - - 2,400 2,400 2,400 2,400 2,400 2,400

Total- - - - 2,400 2,400 2,400 2,400 1,466,400 1,588,400


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Sale Jan Feb Mar Apr May Jun Jul Aug Sep Oc

Swine 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,

fertilizer 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,40

Total 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,


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sale Jan Feb Mar Apr May Jun Jul Aug Sep Oc

swine 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,

fertilizer 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,40

Total 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,


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Sale forecast in Year 4

Sale Jan Feb Mar Apr May Jun Jul Aug Sep Oct

Swine 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,0

fertilizer 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,40

Total 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,4


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sale Jan Feb Mar Apr May Jun Jul Aug Sep

swine 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,525,000 1,5

fertilizer 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2

Total 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,527,400 1,5


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Marketing Expense (Sales Incentive)

Pig Kingdom Farm spend money about 3 percent of income for increasing sale

by taking care the stakeholder; for example, we promote customer to know our product

which have the highest quality in Chiang Rai and take care local community about air

pollution to build the reputation and image of the farm. Moreover, we spend money to

buy a gift and provide to our customer in a special events which make them happy and

also create customer loyalty, as well as increasing sales.

The Chart of Marketing Expense in Year1

Marketing Expense year1

Month Marketing Expense Profit

9 6,437 214,550

10 6,437 214,550

11 6,437 214,550

12 6,437 214,550


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The Chart of Marketing Expense in Year 2



13 19,310 643,650

14 19,310 643,650

15 19,310 643,650

16 19,310 643,650

17 19,310 643,650

18 19,310 643,650

19 19,310 643,650

20 19,310 643,650

21 19,310 643,650

22 19,310 643,650

23 19,310 643,650

24 19,310 643,650


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25 19,310 643,650

26 19,310 643,650

27 19,310 643,650

28 19,310 643,650

29 19,310 643,650

30 19,310 643,650

31 19,310 643,650

32 19,310 643,650

33 19,310 643,650

34 19,310 643,650

35 19,310 643,650

36 19,310 643,650


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37 19,310 643,650

38 19,310 643,650

39 19,310 643,650

40 19,310 643,650

41 19,310 643,650

42 19,310 643,650

43 19,310 643,650

44 19,310 643,650

45 19,310 643,650

46 19,310 643,650

47 19,310 643,650

48 19,310 643,650


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49 19,310 643,650

50 19,310 643,650

51 19,310 643,650

52 19,310 643,650

53 19,310 643,650

54 19,310 643,650

55 19,310 643,650

56 19,310 643,650

57 19,310 643,650

58 19,310 643,650

59 19,310 643,650

60 19,310 643,650

The chart show the marketing expense in 5 years, in every month the chart show

the average of marketing expense that has pay in the years therefore the expense will be

stable.


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Chapter 4: Technical Feasibility Study

Product and operation analysis

- Product characteristics

Core product

General characteristics of American Landrace Swine

- A white hog of long body length,

- Having sixteen or seventeen pairs of ribs

- The arch of back is much less pronounced than on most other breeds of swine

- The hair colour must be white.

- Dark skin spots are considered undesirable.

- A few freckles on the skin are allowed but black hairs are not.

Gender Characteristics

Hog

- The back is almost flat.

- Long head rather narrow and clean jowl.

- Large and heavy ears carried close to the face.

- Admirable meatiness about them on foot and particularly

on the rail.

- Long rumps comparatively level and plump hams but

trim.

- Long sides, of uniform depth, and well let down in the

flank.

Sow

- Milk producing abilities

- Top milk production after five weeks of lactation


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The various strains of Landrace swine are the descendants of the famous Danish

Landrace hogs that were developed in Denmark. The development of the breed began in

about 1895. It resulted from crossing the Large White hog from England with the native

swine. It was largely though the use of the Landrace that Denmark became the great

bacon-exporting country, with England as the chief market.

The American Landrace is a white hog of long body length, having sixteen or

seventeen pairs of ribs. The arch of back is much less pronounced than on most other

breeds of swine. For some hogs the back is almost flat. The head is long and rather

narrow and the jowl is clean. The ears are large and heavy and are carried close to the

face. There is an admirable meatiness about them on foot and particularly on the rail. The

rumps are long and comparatively level and the hams are plump but trim. The sides are

long, of uniform depth, and well let down in the flank. The sows are prolific and

satisfactory mothers. The sow has always been noted for their milk producing abilities.

Studies have shown that they reach their top milk production after five weeks of lactation

which is later than other breeds compared. The hair colour of the American Landrace

must be white. Dark skin spots are considered undesirable. A few freckles on the skin are

allowed but black hairs are not.

Source: http://www.ansi.okstate.edu/breeds/swine/americanlandrace/index.htm

Supporting product

The supporting product of Pig Kingdom Farm is organic fertilizer produced from

pig excrement. We sell organic fertilizer to farmers or agriculturalists and it also is used

within the Pig Kingdom Farm, so it can help to generate indirect income and reduce the

cost within the farm.


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Sewage from pig excrement

Organic fertilizer process from pig excrement

There are five organic fertilizer processes from pig excrement as following:

1. Excrement from swine.

2. Pig excrement preparation to the biogas pond.

3. Pig excrement is fermented in the biogas pond.

4. The dregs of pig excrement are brought to dry out.

5. Dried pig excrement is transformed to organic fertilizer.

Organic

Fertilizer

Swine

Pig excrement

Dried pig

excrement

Wastewaterpond

Biogas pond

Selling to

Farmers

Using within

our farm


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- Specification, Feathers, Dimension, Life Time etc.

Specification

Pig Kingdom Farm provides high quality of swine including standardization and

cleanliness of swine, swine house, and food for swine.

The breed of swine: we select American landrace because it is the best breed

of other swine for consumption; moreover, sows have high ability to caring their piglets.

The age of swine: At the first period, we buy piglets at 20 to 40 days of age for

breeding during 4 to 6 months, and then we will sell it to customers. Moreover, we have

around 10 swine breeders and we breed them for giving more piglets which have high

quality.

Organic fertilizer: In Pig Kingdom Farm, we bring organic fertilizer produced

from dried pig excrement to use with corn and wheat which our farm plant in the little

area. Corn and wheat can be the food for swine instead of the main food which the price

is expensive. It also helps our farm save the cost of food for swine

Features

The advantage of our farm is the quality of breeding, great food for swine, good

swine house, management of taking care of swine, and prevention of disease.

- Breeding: the food for swine which we select has the high nutrition for

swine. We have to pay more attention about food for piglets and we will change

food which is appropriate for hogs and sows

- Good swine house: this one is important to swine because swine house

will be clean and standard. For the feature of swine house, we select to build

double roofs style. This style can shade sunshine and rain. It is high and airy and

it also releases some pollution to outside. All of these can help pig have a good

healthy.

- Taking care of swine: we clean pig and swine house for impurity

protection and try as much as possible to reduce the bad smell from swine which

affects to social problems.

- Prevention of disease: we concern about safety, so we have to vaccinate

and check swines health regularly.


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- Production process

Swine breeding

Taking care of piglets after weaning

- When piglets after weaning during 28 days of age, around 6 kilograms, we

should move sows out from piglets, but piglets still stay in the same corral around 3 to 5

days. After that we will move piglets to take care in the corral of piglets for the

prevention of stress among piglets. Moreover, vitamins or antibiotic dissolved in water

should be used to piglets after weaning around 3 to 5 days.

- Piglets are vaccinated at 6 weeks of age to protect Porcine Reproductive and

Respiratory Syndrome (PRRS). Sows and hogs are also vaccinated every 6 months

(vaccine to be available during 6 to 12 months).

- Piglets are vaccinated at 7 weeks of age to protect mouth and feed rot. Sows and

hogs are also vaccinated repeatedly every 4 to 6 months (vaccine to be available during 4

to 6 months)

- Piglets at half 2 months should take vermifuge and 21 days late give vermifuge

again. Sows and hogs should also take vermifuge every 6 months.

Source: http://www.dld.go.th/service/pig/pigpig.html

Feeding food to swine in each period

A period of weaning piglets

When piglets wean milk around 28 days and their weight are around 6 kilograms,

the food for piglets which we feed them has 20 percents protein to them until 2 months

A period of swine, weight 20 35 kilograms

The food for swine has 18 percents protein. The food quantity for swine is 1 to 2

kilograms per day.

A period of swine, weight 35 60 kilograms

The food for swine has 16 percents protein. The food quantity for swine is 2 to 2.5

kilograms per day.


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A period of swine, weight 30 kilograms delivery to market

The food for swine has 14 to 15 percents protein. The food quantity for swine is

2.5 to 3.5 kilograms per day.


- Swine disease

Porcine Reproductive and Respiratory Syndrome(PRRS)

Ear oedema, a symptom of PRRS in older pigs

Stillborn piglets with PRRS Mummified PRRS piglet


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PRRS is important pandemic disease caused by virus. It has also known as blue

ear disease. PRRS infects all types of herd which are high or ordinary health status and

both indoor and outdoor units, irrespective of size. The virus spread rapidly in a herd

within 7 days and it may spread throughout the farm. Acute disease is seen in dry sows,

lactating sows, sucking piglets, and growers when the virus first enters the breeding herd.

General symptoms of PRRS include the body temperature elevated to 103 105 F,

reluctance to eat, lethargy, in appetence, discoloration of the skin and pressure sores

associated with small vesicles, diarrhea and so forth. When swine get disease, the death

rate of swine is up to 90 percents because they are not still immune, so they have not

stopped passing on immunity to their offspring.

The disease prevention is to produce vaccine for piglets at 6 weeks of age;

moreover, the vaccine for swine breeders should be produced every 6 months. However,

the vaccine should be avoided for a feeble swine, a sick pig, or pregnant sows which are

far gone in pregnancy.


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Large unruptured vesicle on nose

Unruptured vesicle on nose Ruptured vesicle on nose

Unruptured vesicle on foot


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Ruptured vesicle on foot Foot and Mouth: Underside of feet

Foot and mouth rot disease issevere pandemic disease which is contracted rapidly

in artiodactyls such as cattle, sheep, goats, and swine. Swine of all age can inflect with

this disease in the high rate, but the death rate is low. Foot and mouth rot disease is

caused by Picornavirus which O, A, and Asia-1 are found in Thailand. When the virus

spreads rapidly in a herd, it takes up 3 6 days for symptoms which the appearance a

little later of vesicles up to 30 millimeters around a nose tip, mouth, tongue, lips, gill and

hoofs are symptoms of this disease. Moreover, the symptoms of this disease are increased

body temperature about 40.5 C, reluctance to eat, dribbling saliva, chomping their jaws,

painful legs, and losing weight.

The disease prevention is to produce vaccine for piglet at 7 weeks of age and

produce it again 2 week later. For swine breeders, the vaccine is produced every 4 6

months.

Source:

http://www.dld.go.th/service/pig/pigpig.html

http://www.thepigsite.com/diseaseinfo/97/porcine-reproductive-respiratory-syndrome-

prrs

http://www.thepigsite.com/articles/?AREA=FeaturedArticle&Display=305


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- Medicine and a cure for swine

The way to use drug for swine to protect and heal can be many type of medicines,

it is sensitive with swine so we have to have a suggestion from the doctor.

1. Antibiotics; it is extracted from some type of microorganism that can stop the

growing of diseases or destroying that diseases. The antibiotics actually is used to protect

and heal such as Pneumonia, Bronchitis, Scar fen, Gastrointestinal disease, Urinary tract

infections, Uterine inflammation, and Anemic etc.

2. Sulfa Drugs; it is extracted for protecting and healing and the medicine of this

group is Trisulfan, Travertine, Vazlong, Sulfa Merasin, Sulfa quinnoksaleen,

Sulfadiazine, Sulfanilamide and Sulfa Tiazone etc.

3. Stimulant; it is almost the medicine in Phosphorus, Calcium, Magnesium,

Glucose and all vitamins and mineral that are necessary for health. It can help to

stimulate the absorption of Digestive System. The groups of medicine are Tonoforcefan,

Arizil, Katozal, Vitalex, Aminolite, Vitamin A, and Vitamin B complex multi vitamins

etc.

4. Disinfectant; it is used to clean the swine house such as Isla, Sanctus saffron,

Iodine, Formalin, Copper sulfate, Light liquid zone, Caustic soda, Corrine, Lime,

Onecline, and Battles Biocline, etc. There will be the approach and limitation to use in

the different way, so we should educate the medicine before using.

5. Pesticide external parasite; it is used for killing a Scabies, flea, Dry Scabies in

swine such as Engo, Yen go, Forestry, Malafresh, Marathon, Survins, Yermax, Nekuwon,

Ivomax Inject or Purge, etc.

6. Pathology cathartic; the medicine which kills all the Pathology in the large

intestine in the animal is the Pipperracine, Carbondatatra chloride Pilantialtarlate,

Tiabandasol and the commercial name is called Verbal down cline Hoktosan worm-ex

banminz Ivomek (for injection) Lamisol 10% Lava side Laevulin 10%, etc.

7. The medicine for filling up the mouth of the piglet; It protects piglets from

diarrhea such as Farmosin on the tongue of piglet (putting the medicine to piglet by

Chlortetracycline and Hydrochloride) Celia-card (using Streptomilezinzalfate

Sanfatiazone Atrofinsilfate) Liquid Diatreem (using with the Tripreamsulfardiacine)

Liquid Norodine (use with Sanfadiacinetrimetopream) and so on. Moreover, we can use

the medicine melt with water for the piglet or use Neomix 325 KD-Neo.


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8. Drugs for wound; it is used for fresh wound and Chronic wound such as

Tincture Iodine and Rouge fresh wound (yellow drug), Jencialviolate (violate drug)

Salphanilamild Negasunt (for killing the worm in the chronic wound) Sclorworm

Salphanilamide Wax and Sulfur, Alcohol, etc.

9. Hormone; this hormone is used for stimulating sows while they are travailing

such as Occitocine Hormone and the Prostaglandin F2Elpha Hormone which are the

hormone used to inject the sow for specifying the travail month. It is easy for

management of using in the case that sows meet the date of travail already (114 days),

but not travail yet after injecting. It will help sows to travail in 36 hours and if we use

special hormone, we need to have the suggestion from the doctor before using.

10. Iron; it protects the pale blood of piglets such as Fidex Miofure pigdrik Iron

Drextran Rona.



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- The growth of swine

Table: The weight and growth rate of swine and the quantity of food for s


The Age of Swine

(Day)

The weight of Swine

(Kilogram)

The growth rate of

swine

The efficiency of using

food supplement

Food

(

30 6.5 150 -

42 9.0 330 1.5

60 15.0 500 1.6

70 22.0 600 1.8

82 30.0 650 2.2

94 40.0 700 2.3

106 50.0 720 2.3

120 60.0 750 2.4

133 70.0 780 2.5

145 80.0 800 2.6

158 90.0 800 3.0

170 100.0 800 3.0


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- Vaccine injection for swine breeders


The Age of

Swine

Type of VaccineDose and

Injection

Note

6 weeks Mouth and Feed rot

Intramuscular

injection 1 c.c. per

pig

Vaccine injection every 6

months in the next time and

when vaccine dissolves

already, using within 1 hour

7 weeks

Porcine

Reproductive and

RespiratorySyndrome (PRRS)

Subcutaneous

injection

Vaccine injection every 4

months in the next time


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- Location


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1. Mae Fah Luang University

2. Route of Mae Chan District

3. Route of Mea Sai District

4. Ban Kiwproa

5. Ban Pangmohpong

** 6. Ban Phaton, Santart district

7. Chiang Saen district

8. Mae Kong River

The market of Pig Kingdom Farm is the main target groups from Chiang Saen,

and Mae Chan because they are expanding pig industry, so the location of Pig Kingdom

Farm is located in Phaton village at Chiang Saen district, Chiang Rai province where is

near customers. The advantage of this location is easy for trade and distribution and also

has opportunities to expand our business due to an increase in the number of people

living in Chiang Saen. Therefore, the demand of people also increases.

We emphasis on the area where provides convenient access and transportations

and it can also protect environment, control disease outbreaks from outside into the farm.

It is far away from the community around 2 kilometers which must be consented by local

government administration and the centre of government that show our business does not

cause negative impacts to society. Moreover, the location should have water source

which is adequate for consumption throughout the year.

8

4

1

2

7

6

3

5


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- Facility Layout

Pig kingdom farm has the area around 2 Rai located in Chiang Saen district, so we

have to think how to use the area effectively. Good facility layout is very important to the

business. We separate the area into 3 parts which consists of resident area, breeding area,

and planting area.

Behind the swine farm

In front of the swine farm


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The side of the swine farm

1. The first area, we use around 2000 square meters for build breeding area there

are swines house, treatment area and storehouse of feed.

- Swines house

It is important part for our farm, swine need to live with hygienic practice because

it will make the swine healthy and they will not pressure so they will eat a lot of feed. We

use this area around 1700 square meters for 2 building of swines house. We build

swines house follow main key of good characteristic, which is easy to manage in each of

sty, have an area for drain wastewater and far from the community around 2 kilometers,

and each of inside swines house have 24 sties for swine living in the number that feel

cramped.


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Building

We choose Evaporative System for building because it can control appropriate

environment of swines living such as temperature, humidity, ventilate and bright light.

The building is high around 9 meters, 4meters for wide and 100 meters of range.

Roof

For the roof we choose double triangle style of roof, this style is popular because

it is safety and good ventilate of inside, we use the tile for roofing, although this style is

expensive but it is worth for swines life.

Floor

We use concrete for lay the floor because it is cheap and easy to clean; moreover

if we lay slop floor and leave a space for put water for swines relax. Staffs of swine have

to change water in the morning everyday.

- Treatment system area

We set up treatment area around 200 square meters behind swines house. It

consists of 3 ponds; there are pigs excrement ferment pond, wastewater pond, and biogas

pond. The pig excrement and wastewater is brought to the wastewater pond for treatment.


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- Storehouse of feed

This area is around 100 square meters for building the storehouse. We use

storehouse to keep feed of swine and the equipment that involve with swine.

2. The second area is around 500 square meters. It consists of 2 buildings which

are staff house and office.

- Staff house

Pig kingdom farm employs people in the community around 2 - 3 person to be the

staff in swine farm, so we have to build a house for them. The location which we select

for resident is separated from swine house.

- Office

The office is located beside the staff house. It is clean and suitable for work in

that place. Our farm have veterinarian for checking swine health. Moreover, we have

farm management manual which shows about record information in order to protect and


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control the disease of swine and the way to taking care of swine. The head worker and

accountant (also assistant of head worker) work at the office.

3. The third area is plantation area which is used to plant corn and wheat in order

to be the feed for swine. The area is around 700 square meters and is divided into 2 parts;

the area of the first part for corn plantation is around 300 square meters and the area of

the second part for wheat plantation is around 400 square meters.

Machine / Tools / Equipments

- Principle of Evaporative Cooling System

Evaporative Cooling System is designed to be friendly with environment. The

water evaporation exchanges heat in the air by the water flowing pass the cooling pad.

When the water flowing pass the cooling pad, it will increase the area and decrease the

squeeze between the water an air which makes the water immediately evaporate. After

that heat from the air around the cooling pad is brought to use in the evaporative and

when the air absorbs the heat, the temperature decline. However, the temperature decline


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more or less depending on the moisture in the air temperature at that time and the wind

speed which flow through the cooling pad and the wind chill affects the system.

Figure: Evaporative Cooling System

- Evaporative Ventilation Air Cooler

"Hybrid Cool Unit" is like air condition and safe electric as fan by innovation

technology. It is designed based on the natural concept which is friendly with

environment and also protect contamination. It does not have water spray and uses only

10 percent of electricity.

The method of Evaporative Ventilation Air Cooler

1. When the squeeze pass through the Inlet Valve, it will drop into the water tray

until the pendulums is driven up.

2. The system will order water pump and make the water flow through the cooling

pad, but the water still flow through the Inlet Valve until the level of the water are highest

peak. Therefore, the system will cut the water itself.

3. The Motor of fan will take the cooling wind into the wind distributor system

following each distributor.

When it works completely in 9 hours, the Auto Wash Mod System will workingand the order controlling set outlet Valve will open to drainage the water.


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Figure: The Evaporative Ventilation Air Cooler

- Performance of highest properties of cooling pad

1. Indentation in the appropriate skin for the area increase.2. Having appropriate thickness because if it is too thin, it will be spray

out and if it is too thickness, the pressure drop will occur.

3. Cleaning without dust, lichen and sediment.

4. Useful life of the cooling pad is about 3 years or 10,000 hours

The air flowing through the system must flow through the dust filtration

Figure: Cooling Pad


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The advantage of the cooling pad

The usage objective

1. To improve the environment in the work area

2. To decrease the temperature in the work area about 4 10

degrees Celsius by distributing the cooling wind directly to the target area.

3. To protect the heat from outside the swine house.

4. To add the fresh air flowing inside the swine house.

5. To create the positive pressure to protect the dust, bad smell, and

bugs.

6. To save the energy and decrease the cost of electricity.

Figure: Comparison of the Incretion of Temperature Having Humidity 50 percent

- Air SystemVentilation1. To save the energy when compare with normal air condition system with the

same performance of cooling capacity over 1,250% a year.

2. To save the energy because uses electricity only 10 percent when compares

with the normal air condition.

3. Can be mixed-design with the normal air condition system which saves the

electricity about 40 percent to 60 percent in the case of needing to control the temperature

often.

4. Low maintenance cost because it is not complex system and easy to maintain. It

does not need the advice from specialist.

5. Friendly with environment without the CFC chemical to create the cooling air

and uncreated green house effect which is the main cause of global warming.

6. Can be designed to decrease the volume of humidity in the air. Ventilation Air

Flow System makes it occur less.


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7. Can be designed to build to be Positive Pressure or Negative Pressure and

create the air barrier to protect the contaminant from outside.

8. Can be designed to create wind chill effect the distributor, that make the air

touch with the skin the temperature feel decrease about 2 3 degrees Celsius.

9. Can use both inside and outside.

10. Has portable movement.

Figure: Air SystemVentilation

Source: http://evaporative-hybridcool.blogspot.com/

- Dynamo

The electricity which we generally use in the household and the business is the

electric stream from dynamo


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The main component of dynamo is as following:

1. The magnetic for creating the magnetic field.

2. The coil of wire that covered by insulator.

3. The sub equipments in the motor (brush, ring).

The dynamo uses rotating coils of wire and magnetic fields to convert mechanical

rotation into a pulsing direct electric current through Faraday's law. A dynamo machine

consists of a stationary structure called the stator which provides a constant magnetic

field, and a set of rotating windings called the armature which turn within that field. On

small machines the constant magnetic field may be provided by one or more permanent

magnets; larger machines have the constant magnetic field provided by one or more

electromagnets, which are usually called field coils.

The commutation was needed to produce direct current. When a loop of wire

rotates in a magnetic field, the potential induced in it reverses with each half turn,

generating an alternating current. However, in the early days of electric experimentation,

alternating current generally had no known use. The few uses for electricity, such as

electroplating, used direct current provided by messy liquid batteries. Dynamos were

invented as a replacement for batteries. The commutation is a set of contacts mounted on

the machine's shaft, which reverses the connection of the windings to the external circuit

when the potential reverses, so instead of alternating current, a pulsing direct current is

produced.

Source: http://en.wikipedia.org/wiki/Dynamo

- Exhaust Fan

An exhaust fan is a mechanical ventilation device that helps to draw out stale and

impure air from factory and bring in fresh air, thereby improving the quality of indoor


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air. Exhaust fans are typically ducted to the exteriors of factory, through which bad

indoor air can effectively be removed from the factory.

Exhaust fans are classified into various types, mainly depending on the type of

mount and the location where you need to install the fans. There are different types of

exhaust fan, but our swine farm use wall mounted exhaust fans. These exhaust fans are

installed on walls. Since they are installed on exterior walls of the factory and not on

interior walls, the stale air has a direct route to the outside of your home and thus no duct

work is required in installing these exhaust fans.

Source: http://lib.store.yahoo.net/lib/rewilliams/ventilationfanguide.html

- Logistics Management

- Location planning

The main target group of Pig Kingdom Farm is people who live in Chiang Saen

and Mae Chan. Therefore, the location of Pig Kingdom Farm is located in the Phaton

village at Chiang Saen district, Chiang Rai province because it is the center of

distribution which provides more convenience to our customers when they come to our

farm for buying swine. It can also help our farm save time and costs when we go to the

swine farm located in Santhat district, Chiang Khong to buy piglets.

- Transportation and Traffic

Pig Kingdom Farm focuses only on outbound logistics which is the process of

piglet imports from the swine farm located in Santhat district, Chiang Rai into our farm.

A truck is used to transport piglets because it can contain a lot of piglets.

- Warehousing and Inventory Control

Our swine farm pays attention to the quality of warehousing and inventory

control. We always have swine sufficiently for our customers all the time which they

have all confidence in our quality of swine because we have the effective management in

the disease control and prevention and we also cooperate with Department of Livestock

Development in order to check the quality of each pig and environment every month to

meet the standard on cleanliness.


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- Procurement and Purchasing

The processing of purchasing the American Landrace breed of piglets and swine

breeders is very important for costs and the quality of products. We select the swine farm

located at Santhat district, Chiang Rai province to order swine because this farm has the

swine which meets our demands and has high quality. These swine can be ordered direct

from the swine farm at Santhat district. We select a truck to transport piglets from that

place to our farm because it can save time and costs.

- Material handing and transportation

- Transportation preparation

To protect the accident which can happen to swine, truck floor has to be

laid by straw, dried grass, banana tree, or sandy soil. We should prepare a cage for

hogs and should prepare a separated stall to protect swine from overlapping each

other when transporting a lot of swine. However, a separated stall is essential for the

back of a truck; moreover, a truck roof and shading net are important for sunlight and

rain protection.


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- Swine management after getting in a truck

We should pour the water over swine during transport because it can help

to reduce the heat in swine. In addition to water, big ice which is pounded can be laid

on truck floor covered by straw. It can help to reduce stress among swine. While we

are transporting swine, we should not stop a truck if it is not necessary. Moreover, if

swine show the sign that they feel hot; we have to stop a truck to pour water over

swines head and swine body. Most importantly we should transport swine in good

weather condition during evening or night.

- Swine management when reaching the destination

After swine are herded together into a pig kraal, we should provide the

short period of time to swine for relaxation and should not give water and food

immediately for them. After that we give clean water which is mixed Iodine and

vitamins together for them during the first 3 to 5 days. In addition, we must separate

swine to protect the spread of disease over 15 day period.

- Waste Minimization & Quality control

The way of prevention and eliminating smell and waste from the swine farm

consists of 4 processes.

Biogas pond

The Large swine farm which has more than 1,000 swine should build biogas pond

to keep pig excrement and bring gas from biogas pond transformed into electricity. It can

be applied within the farm, cooking, or nursing a brood of piglets.


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Wastewater pond

The swine farm should have wastewater pond system, especially swine farm

located near the river. Wastewater pond system consists of fermenting pond, dregs thick

liquid pond, and the area for dried pig

Documents

Pig Kingdom FarmProject feasibilty Study and Evaluation . Aj. chaiyawat Thongintr. Mae Fah Luang University (MFU) 2010