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MINISTRY OF AGRICULTURE
GROSS MARGINS LIVESTOCK
ENTERPRISES IN SWAZILAND
August 2014
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Grss !"rg#$ %r '(st)* )!!+#t#(s #$ S,"-#&"$+
I$tr+u)t#$
A gross margin (GM) is the difference between the gross income and the total variable costs
of production. Total variable costs (TVC) include production costs, operational costs and
mareting costs. Gross margins e!clude overhead cost such as insurance, fi!ed costs and
interest. Thus gross margins are not a measure of the profit of a particular enterprise. "hen
calculating whole farm profit it is necessar# to consider these overhead costs in addition to
enterprise gross margins. A gross margin changes as inputs prices change.
Gross margins are of great importance to assist the farmer in deciding on which livestoc
enterprise to venture into.
.r("*/ ('($ Pr#)( .EP
This is the amount that a farmer can charge for a particular commodit# in order to cover all
production costs. $or the farmer to realise profits it is important to charge a price above the
%&'.
N.B It is an important tool for the farmer to determine the price of the produce
.r("*/ ('($ Y#(&+ .EY
This is the uantit# of produce a farmer is e!pected to produce in order to cover all the
production costs. t is important for the farmer to target #ields above %&* in order to realise
profits.
.EY Tt"& V"r#"3&( Csts TVC
Y#(&+
N.B. Farmers are advised to seek further assistance from livestock extension officers,
which are available in all the regions of Swaziland.
The gross margins have been prepared b# the Gross Margin Tas Team (Mareting Advisor#+nit, &!tension taff, -ivestoc Mareting +nit (-M+), orticulture staff, /ational
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Agricultural Mareting %oard (/AM%oard), mall enterprises 0evelopment Compan#
(&0C1,2 Technoserve).
1 PIGGERY GROSS MARGIN 10 s,s "$+ 1 3"r
Grss I$)!(
It(! U$#t Kg Y#(&+ Pr#)( V"&u(
Growers 33 456 47 89:966
Total income 567600
L(ss Tt"& )sts
It(! U$#t Kg 8t9 Cst:U$#t Tt"& Cst
%oar ; 8866 8866
ows ;6 ;4;6 ;4;66ow and boar meal 36 :6 44;.66 ;:,7:6
-actating ow meal 36 ;6 498.66 4,986
'ig weaner 36 57 473.66 ;8,976
'ig grower 36 5
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%rea even #ield ;96 pigs ;3:.7:
Is P#gg(r9 '#"3&( #$ S,"-#&"$+>rtu$#t#(sThe maret for mil is available in the countr#. There is also a need to form linages b#
farmers in order to facilitate proper suppl# to the maret. These include the formation of
collection centres and further engaging into mil processing.
5. GROSS MARGIN FOR 500 LAYERS
ItemUnit(Kg) Yield Price !l"e
Egg trays 4,333 30 129990
Manure 50
80 10 800
Total income 130790
Le## $%t!l !ri!&le '%#t#
Item# Unit '%#tUnit $%t!l c%#t
Layers 50059.00 29,500
Laying mash 50g 345230.00 79,350
!acing 30 egg tray
containers 400 5.5
2,200
Electricity month 12 1802,1"0
La#our months 12 8009,"00
$ater months 12300.00 3,"00
Trans%ort 3,000
&iruill L 1170.00 170
&itamin stress%ac 1
25.80 2"
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$' *+,-0-
Gr%## M!rgin ,/
'E! (E)tray* 29.91
'E+ (trays* 4,320.19
Ar( &"9(rs '#"3&( #$ S,"-#&"$+>rtu$#t#(s
The maret for fish is available in the countr#. There is also a need to do some mareting
research b# the farmers before venturing into this enterprise.
7 Grss M"rg#$ %r 20 .((?#'(s E$t(r>r#s( TOP .AR
U$#ts YIELD
Kg
E:u$#t 8u"$t#t9 Y("r
1
Y("r
2
I$)!(
4 arvest per #ear
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Grss !"rg#$ %r 20 .(( ?#'(s
L"$gstrt=
Y#(&+Kg E:u$#t 8u"$t#t
9
Y("r 1
#$)!(
Y("r
2#$)!(
I$)!(
4 arvest per #ear ;666 ;:.3 ;:366 ;:366
E:U$#t U$#t Tt"&
)sts
Tt"& )sts
St"rt U> Csts
-angstroth %o!es 736 ;7 ;3866 6
Trap %o! 836 5 ;566 6
%ee uits
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%&*
(@g?&nterprise)
;6#)u&tur( '#"3&( #$ S,"-#&"$+