• Itemize the different costs envisaged
• Suggest ways of reducing these costs
• Identify ways of maximizing profits

• Appropriate records and up-to-date information regarding the state of affairs are kept.
• Interpret the data and ratify the identified causes of poor performance on time.

Costs
Costs can be broadly categorized into:

• Fixed costs are incurred before any production can take place. They remain the same irrespective of any production increases or decreases, and are made up of:
  

  1) Building costs

  • The cost of housing and equipment should be paid for during the number of years the building is estimated to last.
  • If the building is estimated to last 5 years, divide the building cost by 5.
  • Add the figure obtained to the annual costs of production.

  2) Purchase/construction of feeding troughs Purchase or replacement of breeding stock Variable costs: These vary with the level of production. They are made up of:

  • Veterinary costs
  • Stationery
  • Transport
  • Maintenance of facilities
  • Marketing costs
  • Wages & salaries
  • Losses due to mortalities

  Income
  Expected sources of money are from sale of:

  • Weaners
  • Porkers and baconers
  • Cull boars and sows sold
  • Breeding boars and sows sold
  • Possible income from the sale of manure

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