Financial Modeling for Establishment of Hog Farm in Armenia
Within the framework of the project the Consultant elaborated a long-term financial model in 2013 for establishment of a hog farm in Armenia. A hog farm containing initially 228 sows and having production capacities of approximately 8 thousand heads annually was considered by the project.
Operational costs calculations included salaries, communal expenses, drugs consumption expenses as well as contingency costs were indicated for maintaining a normal and regular work of the farm.
The calculation of the forecasted production levels was made on a weekly basis for a five year timeframe, taking into consideration the duration of the necessary stages of the production cycle.
The calculation of the capital investments included taxes (VAT and customs duty) as well as the transportation costs both of the equipment and the sows/hogs.