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An Application of Discounted Cash Flow Techniques in Feasibility Assessment: The Case of Pig Abattoir for Mafutseni Pig Farmers’ Associations (MPFA) of Swaziland

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Author(s): M.B. Masuku | T. Shabalala | A. Belete

Journal: Asian Journal of Agricultural Sciences
ISSN 2041-3882

Volume: 3;
Issue: 4;
Start page: 327;
Date: 2011;
Original page

Keywords: Cash flow techniques | discounted cash flow | feasibility assessment | pig abattoir

ABSTRACT
The Pig is one of the most prolific and efficient feed converting domestic animal amongst the livestock. Pigs grow and mature fast, hence quickly provide maximum returns. Pig meat is tender with appetising flavour, thus it is an essential food item. Pork is considered the most nutritious meat which provides high energy value in human diet. The study aimed at establishing the feasibility of an on-farm pig abattoir for the Mafutseni Constituency pig farmers. A feasibility study was conducted at three levels; namely, the marketing feasibility, technical feasibility and financial feasibility. The on-farm pig project was found to be feasible. The Net Present Value (NPV) of the project at fourteen percent (14%) discount rate was positive (E 14,921, 546.14). The Internal Financial Return (IFR) was high and attractive at 66.5%. The study recommends that more efforts should be focused on the marketing of pigs and that farmers would have to honour their contract conditions with the abattoir to ensure continuous operation of the abattoir.
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