In 2013, our team developed a comprehensive long-term financial model to support the establishment of a hog farm in Armenia. The project envisioned a farm starting with 228 sows, with a production capacity of approximately 8,000 hogs annually. The financial model was designed to provide a detailed understanding of the costs and potential returns, offering a solid foundation for planning and decision-making throughout the project.
The financial model included a thorough analysis of operational costs, covering expenses such as salaries, utilities, veterinary supplies, and contingency costs to ensure the smooth operation of the farm. Production levels were forecasted on a weekly basis over a five-year period, carefully considering the different stages of the production cycle to ensure accurate projections. Additionally, the model accounted for capital investments, including taxes like VAT and customs duties, as well as transportation costs for both equipment and livestock. This detailed approach provided the client with a clear picture of the financial requirements and potential profitability, helping to secure the necessary resources and ensuring the long-term viability of the hog farm.