Middle man/ biyahero

[nemo]

They say that only the middle man earn in swine raising. So i created this post to give side to the middle man.  When i was in the field i sometimes ask question to the drivers of this middleman. and this is some that i have unearth.

If they buy an 80 kilos pig at 75 pesos they will incur an investment of 6000 pesos.  And when this is slaughtered it will have around 80% dress percentage. So 80 kg x .8 = 64 kg. This 64 kg will be sold and let as assume it would cost 105  per kilo.  So, it will generate a  6720 sales or 720 profit.

Summary:

80 kgs    x    75 pesos    =6000
x.8 dress percentage     
64 kg     x     105 pesos=  6720
net of=                           720 pesos

Transpo would be 1000, 400 labor

Then =50 to 200 slaughter fee

Assume  they have 10 pigs x720 profit=7200
-                                                1000  transpo cost
10 x 200 slaughter fee                        2000=slaughter fee
                                                   400= labor
total       net                                     3600 for a 12 hours work

 Yes 3600 per night is still a big money.  But if we compute it would only mean that they earn around 360 per pig.

What are the risk:

1.   Because of the competition they have to give credits to store owner. They will be paid a day or two (worst case sometimes it goes up to a week.)
2.   Holdup, an approximate of 3 incidences per month for central Luzon and it increases usually if election is nearing. Do not know why?
3.   Death of animal. If the animal die before it reaches the slaughterhouse then it is considered as condemned.
4.   If there is luck of supply of animal. The profit margin would be also small.
5.   If you were dealing with big meat processor it would take sometimes a month before they pay you.
6.   Bribery, you need to bribe checkpoint etc.
7.   If  monitoring agency think that one of your hogs have FMD , they will confiscate that particular hog , kill it and burn it.

I'm not taking side but:

In most incidence hog raisers will always say that it is the meat dealers, feed manufacturer, middle man who only earn.  But I do believe it is not the real case. We all earn in one way or another.  If you will ask a semi commercial or even big farms they will say that it is a cycle. There are times that they earn there are times they don’t. And that is business. You cannot find a business that all year round will earn. Being the middleman, feed dealer, feed manufacturer is not a walk in the park. They attained that position/business because they have triumph over adversaries. So, as backyard raiser we must also jump over the hurdle.

How to do it:

Backyard raiser do earn but to earn more then be the middleman ( most of the time we are just clamoring because we are at the other end of the stick.). 

Sell your products directly to restaurant owners.

Or create or join a cooperative that have their meat processing plant.

 Or organized your barangay or cities backyard raisers and ask them not to sell their produce lower than this price etc. In this way you will have a uniform liveweight pricing. But be aware that it could back fire at you.  Middle man might just go to other place to look for hogs.

Learn meat processing technique and sell your produce to consumer or supermarket.

Put a stall in the supermarket.

Best of all do not support feed company who have meat processing facility but do not buy your produce even though you are a customer of their feed company.

Correct me or post your ideas.

[mikey]

Dr. Nemo,well.we sure are not making the money,a 2 1/2-3 month old pig we get 1,400.00 pesos each,someone is making money and it is not us,if not the farmer,then who,the middleman is the only other one left.
Have A Good Day                                            Mikey

[nemo]

Sir, try to find another middle man. 2 1/2 month pig would cost around maybe 1 800 pesos above it depends on the weight of the animal.

IN every business there are righteous people, there are also those unrighteous.  Maybe you have done business with the greedy type of a person. So try to find other middleman

[mr hog]

Dr.nemo is right we sell one month old piglets for 1800p and live weight price her is around 69 to72 p kg

[mikey]

Dr. Nemo,am now told a 45 day old piglet here is worth 1,500.00 each,the real market is in Cebu.             Good Day                       mikey

[nemo]

The current price you said is better  compared to the 1800 for 2 1/2 month pig.

The market of swine or other livestock is more profitable if your area is nearer to the city or megacity.

If your area is a not a progressive place then livestock concerning with meat production will not improved.

There is such area that raising animal is not applicable due to very limited demand.  Try to assess if your area is one of them.

[mikey]

Dr. Nemo,how true location.location.location,I see our main problem is not having the transportation to deliver the livestock to Cebu.Not sure if we can get 1500.00 for a 45 day old piglet,like I have said we can only get 1400.00 for a 2 1/2 to 3 month old piglet now,the school teacher in the town told me a 45 day old piglet is worth 1500.00,on the other hand they are only worth what someone is willing to pay you for them.Now I need to find a buyer in Cebu,one can always rent a truck in the short term to deliver the stock.On the other hand maybe poor business management on our part,have a new manager now,time will tell
Good Day Doc                         mikey

[nemo]

Find a middleman in your nearby slaughter house or market. Ask around.
For sure there are still people who will buy your produce on the right price.
The difficult part of it is finding them.

[mikey]

Doc, thanks,because of our location we are limited,realize now we must find our own market in Cebu.Transportation will be a key part of the operation,a large livestock carrier maybe a bonus.
Good Day Doc                                           mikey

[nemo]

If you can create an opportunity out of your transportation problem then the better.

[mr hog]

We are very lucky for that are farm is like 5 minutes from the public market

[mikey]

Mr Hog, the public market at your place is only 5 min. away,you lucky guy you,no such luck at our place,there is a small slaughter house near our village,you are only allowed to bring in 1 animal at a time,makes no sense to me.Cebu is the main off loading area,still thinking about a 5 ton truck to start off with,seen one here before with 2 levels,should be able to get the welding shop to make something for us,the brother in law is good at that sort of thing.     Good Farming To You                      mikey