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AESA R A M I E N T O P R E S A R I
F E A S I B I L I T Y STUDY OF THE PROJECT
FOR THE
PRODUCTION, FATTEN1NG AND PROCESS1 NG
OF HOGS
CONTRACT NO, 511-0000-C-00-3005-01
USAID - BOLIVIA
JUNE 1983
-
VENEZUELA NO. 1440 TELFS
ASESORAMIENTO EMPRESAKIAL S.A.
CONTENTS
--------
Page No. 5
1.1. O b j e c t i v e
1.2. Description o f t h e 'Project

1.2.1, F i r s t Stage
1.2.2. Second Stage
1.2.3. Primary P a r t i c i p a n t s
2. ANALYSIS OF AGROPECUARIA COPACABANA
2.1. Rackground
2.1.1. Legal Aspects
2.1.2. F i n a n c i a l Aspects
2.1.3. Technical Aspects
2.1.4. Administf-ative Aspects
2.2. The Role o f Agmpecuaria Copacabana i n t h e P r o j e c t

2.2.1. P i g Production
2.2.2. Balanced Feed Production
2.2.3. Technical A s s i s t a n c e
2.2.4 Evaluation and Control
2.3. P r i c e Fixing
2.4. R e l a t i o n s h i p between Agropecuaria Copacabana and t h e

Small Farmer
2.5. F i n a n c i a l Requirements
2.5.1. Investment C a p i t a l Requirements
2.5.2. Working C a p i t a l Requirements
2.6. F i n a n c i a l Analysis
2.6.1. Income Determination
2.6.2. Cost l?etermlnatlon
2.7. Financial Projections

2.7.1. Income Statement
2.7.2. Cash Flow
2.8. P r o f i t a b i l i t y Analysis
2.8.1. Net P r e s e n t Value
2.8.2. I n t e r n a l Rate o f Return
2.8.3. Cost B e n e f i t
2.9. S e n s i t i v i t y Analysis
2.9.1. Price Increase of 105
2.9.2. Cost I n c r e a s e of lm
2.9.3. Conclusion
ASESORAMIENTO EMPRESARIAL S.A.
3. ANALYSIS OF THE FABRICA NACIONAL DE CONSERVAS DILLMANN 26
3. I.Backgmund
3.1.2. I n f r a s t r u c t u r e and EQuipment Investment
3.1.3. Cost of Production f o r Goods Containing Pork
3.1 .I+. Production S t a t i s t i c s
3.1.5. Sources o f R a w M a t e r i a l
3.1.6. I n s t a l l e d Production F a c i l i t i e s
3.1.7. P r o c e s s o f Meat P r o d u c t i o n beginning w i t h t h e hog
3.1.9. A d m i n s t r a t i v e Aspects
3.2. The Role of t h e F a b r i c a Nacional de Conservas Dillmann 32

3.2.1. Market 33
3.2.2. Neans o f Supply 32
3.2.3. R e l a t i o n s h i p w i t h t h e Small Farmer 32
3.3.2. Korking C a p i t a l Requirements
3.3.3. Financing
3.3.4. F i n a n c i a l P r o j e c t i o n s and P r o f i t a b i l i t y R a t i o s
3.4.1. Price I n c r e a s e of 1%
3.4.2. Cost I n c r e a s e o f 105
3.4.3. Conclusion
4. ANALYSIS OF HOG FATTENING BY THE SMALL FARM% 37

4.1. P r e s e n t Condition o f Swine R a i s i n g i n t h e Chapare 37
4.2. Survey Taken

4.2.1. Landholding
4.2.2. T e c h n i c a l Aspects
4.2.3. N u t r i t i o n a l Aspects
4.2.4. Commercialization a n d Narkets
4.2.5. R e c e p t i v i t y towards t h e P r o j e c t .
Design o f t h e I!odule
Pig Production
Production o f Feed Conceril.rates
Technical Assistance
S i z e a n d Location o f t h e 'odule
p.linimum Required Infras: r ~ l c t u r e
Propo s e d ' lanagemen t Sy:: .-em
Feed System
Support O r g a n i z a t i o n s
F i n a n c i a l Analysis
Design o f a Marketing System
Project'ion o f t h e Modules
T o t a l v o r k i n g C a p i t a l Requirements
5. CONCLUSION
6 RECOMMENDATIONS 49
7. TABLES
Index :
Table 1. AC. Technical Parameters

Table 2. Formula f o r Fattening Hogs f o r t h e Small Farmer
Table 3 . AC. ~ n v e s t m e n tCapital
Table 4. AC. Vorking Capital - Variable Costs
Table 5. AC. Yorking Capital - Fixed Costs
Table 6. AC. Working Capital - Financing
Table 7. AC. Loan Repayment Schedule
Table 8. AC. Income Statement
Table 9. AC. Cash Flow
Table 10. P r o f i t a b i l i t y Ratios
Table 11. FNCD. Organizational Chart
Table 12. FNCD. Investment and Working Capital Requirements
Table 13. FNCD. Financing Requirements
Table 14. FNCD. Monthly Cash Flows 1984-1985
Table 15. FNCD. Income Statements and Cash Flows 1984-1986
Table 16. FNCD. Combined Cash Flows 1984-1986
Table 17. Swine Population of t h e Chapare
Table 18, Balanced Feed Requirements p e r ?log
Table 19. ' T o t a l Feed Requirements p e r Hog
Table 20. SF. Income Statement and Return on Capital
Table 21. SF. Adjusted Income Statement and Return on
Capital
Table 22. SF. Income Statement and Return on Capital with
Additional Financing
Table 23. Schedule of Hog Production
Table 24. SF. Schedule of A c t i v i t i e s
Table 25. Schedule of A c t i v i t i e s of t h e P r o j e c t
Table 26. AC. Income Statement with 1% P r i c e Increase
Table 27. AC. Income Statement with 1% Cost Increase
Table 28. FNCD. Income Statement with 10%P r i c e Increase
Table 29. FNCD. Income Statement with 1% Cost Increase
Table 30. SF. Projection o f t h e Module
Table 31. SF. Working C a p i t a l Requirements
8. DESIGNS
Design 1. Hog S h e l t e r
Design 2. Hog Houses
9. APPENDIXES
Appendix I. Hog c o n t r o l Cards (3) of Agropecuaria

Copacabana
Appendix 11. Survey Form
Appendix 111. Chapare. 14ap.
Appendix I V . Chapare. Work Areas
Appendix V. FNCD. Balance Sheet as of 9.30.82
Appendix V I . FNCD. Income Statement as of 9.30.82
Appendix VII.. AC. B i r t h Dates and Weights of Hogs
Appendix VIII. AC. Appraisal 85

Appendix IX. AC. Transportation Costs 92
Appendix X. AC. Present Profitability per Hog 93
Appendix XI. AC. Present Profitability per Pig 94
Appendix XII. Supply and Demand for Pork in Cochabamba ?5
(state)
1. ------------
INTRODUCTION
1.1. O b j e c t i v e
The primary o b j e c t i v e of t h i s s t u d y is t o determine t h e economic,

f i n a n c i a l and t e c h n i c a l f e a s i b i l i t y o f f a t t e n i n g and s e l l i n g hogs i n t h e
Chapare by t h e small f a r m e r s of t h a t r e g i o n .
With t h i s o b j e c t i v e i n mind, t h r e e b a s i c components which form

a n i n t e g r a l p a r t o f t h e P r o j e c t have been d e f i n e d . These components a r e :
a ) Agropecuaria Copacabana ( A C ) , a n e s t a b l i s h e d f i r m i n t h e Chapare which
b r e e d s p i g s ; b ) F a b r i c a Nacional de Consemas Dillmann (FNCD , an
e s t a b l i s h e d company i n Cochabamba which p r o c e s s e s pork and c t h e Small
~ a r m e r s ( o~ f~ t)h e Chapare who w i l l f a t t e n t h e hogs provided by AC.
1
Consequently, t h i s Study w i l l e s t a b l i s h t h e advantage o f a c h i e v i n g
the following goals :
a ) I n c r e a s e AC's c a p a c i t y f o r p i g production, t h e r e b y c o v e r i n g t h e
demand o f t h e SF.
b ) E s t a b l i s h a simple program, complete and prof i t a b l e , of hog

f a t t e n i n g by t h e SF. The program should b e e a s i l y a s s i m i l a t e d by t h e
m a j o r i t y o f t h e SF o f t h e Chapare.
c ) C r e a t e an e f f i c i e n t d i s t r i b u t i o n system f o r t h e SF o f p i g s and
balanced f e e d , o f t e c h n i c a l a s s i s t a n c e and o f s l a u g h t e r , t r a n s p o r t a t i o n
and s a l e o f t h e hogs when t h e y a r e f a t t e n e d .
d ) P r o c e s s t h e e n t i r e hog production, A C 1 s as w e l l as SF'S i n t h e

i n s t a l l a t i o n s of FWD.
e ) E s t a b l i s h a s t r i c t system of c o n t r o l and follow-up f o r t h e

e v a l u a t i o n o f t h e Project.
1.2. Description o f t h e P r o j e c t
1.2.1. F i r s t Stage
The first s t a g e o f t h e P r o j e c t is experimental i n n a t u r e . T h i s

phase w i l l last one y e a r and w i l l have t h e f o l l o w i n g b a s i c o b j e c t i v e s :
a) Evaluation o f t h e economic, f i n a n c i a l and t e c h n i c a l f e a s i b i l i t y

o f f a t t e n i n g hogs by t h e SF o f t h e Chapare..
b ) E v a l u a t i o n o f t h e system designed t o supply p i g s and f e e d t o

t h e SF, t o p r o t e c t t h e h e a l t h of t h e hogs and f i n a l l y , t o provide t h e
s l a u g h t e r and s a l e o f t h e f a t t e n e d hogs t o t h e pork p r o c e s s i n g p l a n t of
FNCD i n Cochabamba.
I n t h i s s t a g e , 1 0 farmers w i l l b e chosen who a r e i n t e r e s t e d i n

d e v e l o p i n g a f a t t e n i n g program. A d d i t i o n a l l y , t h e s e farmers would have t o

meet c e r t a i n b a s i c r e q u i r e m e n t s , such as minimum i n f r a s t r u c t u r e , a n d
cultivations .
These i n i t i a l 1 0 f a r m e r s w i l l be s o l d 1 0 p i g s a p i e c e t o be
f a t t e n e d d u r i n g t h e c o u r s e o f f o u r months. The f e e d a n d t h e a n i m a l
s a n i t a t i o n would b e provided p e r i o d i c a l l y by AC. A t t h e end o f t h e f o u r
months, t h e SF w i l l d e l i v e r t h e f a t t e n e d hogs t o A C t o b e weighed a n d t h e y
would s u b s e q u e n t l y be p a i d . Payment w i l l c o n s i s t o f m u l t i p l y i n g t h e c u r r e n t
p r i c e f o r pork i n Cochabamba by t h e weight. W m t h i s sum t h e f o l l o w i n g
w i l l be deducted: f r e i g h t c h a r g e s from t h e Chapare t o Cochabamba, t h e c o s t
o f t h e b a l a n c e d f e e d , t h e c o s t of t h e h e a l t h s e r v i c e s a n d t h e i n t e r e s t
charges.
Once t h e f o u r month c y c l e is o v e r , t h e P r o j e c t w i l l be e v a l u a t e d
and, i f c o n s i d e r e d n e c e s s a r y , a n a d d i t i o n a l e x p e r i m e n t a l c y c l e would be
u n d e r t a k e n , t h i s time w i t h 30 modules i n s t e a d o f 1 0 . N a t u r a l l y , i f t h e
e v a l u a t i o n were n e g a t i v e and t h e problems p r e s e n t e d were d i f f i c u l t t o
r e s o l v e , t h e ,Project s h o u l d be t e r m i n a t e d at t h i s s t a g e o f 1 0 modules.
If t h e e v a l u a 2 i o n were p o s i t i v e , however, t h e n e c e s s a r y a d j u s t m e n t s
s h o u l d b e made s o t h a t t h e o p e r a t i o n would f u n c t i o n w e l l on a l a r g e r s c a l e ,
I n t h i s case, a t t e n t i o n s h o u l d be g i v e n t o t h e f i n a n c i a l a n d t e c h n i c a l
a s p e c t s and t o t h e management o f t h e P r o j e c t i t s e l f , f o r once t h e
e x p e r i m e n t a l s t a g e is completed, --- AC w i l l no l o n g e r p r o v i d e t h e s e s e r v i c e s .
For t h i s reason, during t h e experimental cycle, t h e bases

n e c e s s a r y f o r t h e c r e a t i o n o f a mixed s h a r e h o l d e r i n s t i t u t i o n l i k e t h e
Fondo Ganadero d e l Beni s h o u l d b e s t u d i e d t o h e l p d e v e l o p p o r c i n e l i v e s t o c k
i n t h e Chapare. The f o r m a t i o n o f a development i n s t i t u t i o n o f t h i s t y p e i s
a c o m p l i c a t e d p r o j e c t w i t h many v a r i a b l e s a n d components which a r e o u t s i d e
t h e r e a c h o f t h i s Study.
1.2.2. Second S t a g e
T h i s s t a g e w i l l be t h e development o f t h e P r o j e c t which w i l l begin

w i t h 1 0 0 modules a n d w i l l g r a d u a l l y r e a c h 1 , 5 0 0 modules (15,000 hogs) i n
t h e f i f t h y e a r w i t h a n economic impact on 1 , 0 0 0 families. The t e c h n i c a l
a s s i s t a n c e a n d f i n a n c i n g w i l l be p r o v i d e d by the l i v e s t o c k development
institution.
A t t h i s s t a g e , a n o t h e r s o u r c e -- a l s o b e found. It may
o f p i g s s h o u l d ---
be e i t h e r t h e c r e a t i o n o f a new hog b r e e d i n g c e n t e r o r t h e purchase o f p i g s
f r o m o t h e r p i g r a i s i n g f a r m s a l r e a d y i n e x i s t e n c e , such as Flonteagudo i n
S u c r e o r El Prado i n S a n t a Cruz.
1.2.3. Primary P a r t i c i p a n t s
a ) Agropecuaria Copacabana. To p r o v i d e t h e SF w i t h p i g s i n t h e
e x p e r i m e n t a l s t a g e , AC w i l l u s e its e x i s t i n g i n f r a s t r u c t u r e i n t h e Chapare.
T h i s i n f r a s t r u c t u r e s h o u l d b e e n l a r g e d i n t h e second s t a g e t o c o v e r t h e
n e c e s s i t i e s of t h e P r o j e c t u n t i l it r e a c h e s i n two y e a r s a p r o d u c t i o n o f
6,000 and 1 4 , 0 0 0 p i g s p e r y e a r f o r t h e AC and f o r t h e m s e l v e s r e s p e c t i v e l y .
I n t h e first y e a r s , AC w i l l be e n t r u s t e d e x c l u s i v e l y w i t h t h e
p r o v i s i o n o f p i g s because it a l r e a d y h a s t h e n e c e s s a r y i n f r a s t r u c t u r e and
I ASESORAMIENTO EMPRESARIAL S.A.
technology f o r e f f i c i e n t production. !iith A C ' s production l i m i t e d t o 6,000

p i g s p e r y e a r f o r t h e SF, o t h e r s o u r c e s w i l l be needed t o f u l f i l l t h e
P r o j e c t ' s g o a l o f 15,000 p i g s f o r t h e SF by t h e f i f t h y e a r .
In t h e experimental s t a g e , AC w i l l a l s o have t h e r e s p o n s i b i l i t y of
providing balanced f e e d and v e t e r i n a r i a n a s s i s t a n c e t o t h e SF and o f t h e
f i n a n c i a l administration of t h e Project.
F i n a l l y , AC w i l l be r e s p o n s i b l e f o r s l a u g h t e r i n g t h e hogs f o r t h e
SF and f o r sending them t o FNCD i n Cochabamba t o be purchased. For t h i s
purpose, a c o n t r a c t w i l l b e subscribed between AC and t h e SF in which t h e
terms and c o n d i t i o n s o f t h e buying and s e l l i n g of t h e hogs a r e c l e a r l y
defined.
b) Small Farmers, The SF must comply with c e r t a i n b a s i c requirements

t o b e a b l e t o p a r t i c i p a t e i n t h e P r o j e c t . B a s i c a l l y , t h e y should show
i n t e r e s t i n t h e P r o j e c t and have t h e minimum i n f r a s t r u c t u r e o f a covered
shed of 10m2 and 1/8 o f a h e c t a r e c u l t i v a t e d with yucca and 1/8 o f a h e c t a r e
c u l t i v a t e d with kudzu, Other c r o p s such as bananas o r c i t r u s f r u i t could be
considered i f approved by t h e t e c h n i c i a n s ,
The SF should a l s o have t h e f i n a n c i a l l i q u i d i t y t o purchase t h e

f i r s t 1 0 p i g s (approximately $b 6,240, each). -
During t h e f a t t e n i n g p e r i o d , t h e SF w i l l r e c e i v e t h e balanced f e e d
provided by AC every 15 days and a t t h e same time a v i s i t from t h e v e t e r i n a r i a n .
These s e r v i c e s w i l l be p a i d f o r at t h e end of t h e f a t t e n i n g period. This
t h e SF do n o t need t o handle money during -
way, ------ t h e fattening cycle.
The hogs should show an approximate weight i n c r e a s e from 15 kg t o

80 kg during t h e f o u r months o f f a t t e n i n g .
The f i n a n c i a l and t e c h n i c a l a s s i s t a n c e during t h e second s t a g e w i l l

be provided by t h e i n s t i t u t i o n f o r l i v e s t o c k development.
It i s important t o r e p e a t t h a t t h e f a t t e n i n g o p e r a t i o n i n hands o f
t h e SF w i l l slowly i n c r e a s e u n t i l it r e a c h e s 15,000 hogs p e r y e a r i n a
p e r i o d of f i v e y e a r s . In t h e first y e a r , it is estimated t h a t t h e SF can
f a t t e n 3,000 hogs o r 300 modules o f 10 hogs a p i e c e . These 300 modules
s i g n i f y 150 f a m i l i e s which have t o be organized, supervised, e v a l u a t e d e t c .
Consequently, i t is n o t r e a l i s t i c t o consider a g r e a t e r number o f
p a r t i c i p a t i n g SF. In t h e second y e a r , it is estimated t h a t t h e SF can
f a t t e n double t h e number o f t h e first y e a r , t h a t is, 6,000 hogs. In t h e
subsequent y e a r s , it i s e s t i m a t e d t h a t t h e SF can f a t t e n an a d d i t i o n a l
3,000 hogs p e r year. The f i f t h y e a r would gee 15,000 hogs f a t t e n e d o r 1,500
modules. These modules w i l l be managed by approximately 1,000 f a m i l i e s ,
t a k i n g i n t o account t h a t some f a m i l i e s w i l l manage more t h a n one module.
To achieve t h i s g o a l , it is necessary t o i n s t a l l a n o t h e r production c e n t e r
a p a r t from AC beginning i n t h e t h i r d y e a r .
c ) F a b r l c a Nacional de Conservas Dillmann. FNCD w i l l be o b l i g a t e d

t o purchase t h e e n t i r e production o f hogs from AC as w e l l as from t h e SF.
T h i s o b l i g a t i o n w i l l be supported by formal w r i t t e n c o n t r a c t s which w i l l
d e f i n e c l e a r l y t h e c h a r a c t e r i s t i c s and vo1wn.e -
of - - -
t h e product (hogs) arid
t- h e f i n a n c i a l terms,
FNCD w i l l p r o c e s s t h e hogs a t its f a c i l i t i e s and w i l l s e l l t h e

f i n i s h e d product i n t h e l o c a l and i n t e r n a t i o n a l marketplace. A marketing
study, prepared by t h e f i r m Coopers and Lybrand, shows t h e e x i s t e n c e of a
adequate market - f o r pork products.
2. ANALYSTS OF AGROPECUARTA COPACABANA (AC)

2.1. Background
Agropecuaria Copacabana was e s t a b l i s h e d by M r . Alfredo ~ a l a z a rwho,

a f t e r experimenting w i t h b r e e d i n g p i g s , proved t h a t t h e r a i s i n g and
f a t t e n i n g o f p i g s was p o s s i b l e . o n h i s p r o p e r t y i n t h e Chapare.
Thus, M r . S a l a z a r made h i s first i n v e s t m e n t s i n i n f r a s t r u c t u r e .

He a l s o bought i n Buenos A i r e s 30 brood sows a n d 6 b o a r s . The h e r d s l o w l y
i n c r e a s e d i n Agropecuaria Copacabana u n t i l it reached a l e v e l o f c o n s i d e r a b l e
importance and r e n d e r e d a high l e v e l o f p r o d u c t i v i t y .
P r e s e n t l y , AC h a s t h e c a p a c i t y t o produce 1 , 8 0 0 t o 2,000 hogs p e r

y e a r by m a i n t a i n i n g a group o f 140 brood sows.
To a r r i v e a t t h e p r o d u c t i o n c a p a c i t y o f 20,000 hogs, AC should

make a d d i t i o n a l investments i n i n f r a s t r u c t u r e a n d working c a p i t a l by
borrowing t h e f u n d s as shown i n t h e corresponding c h a p t e r . ( s e e Chapter
.
2.5 F i n a n c i a l ~ e q u i r e m e n t)s
Agropecuaria Copacabana is a company o f l i m i t e d l i a b i l i t y owned by

Mr. Alfredo S a l a z a r and h i s w i f e w i t h a n a u t h o r i z e d c a p i t a l o f $b 5 m i l l i o n .
a) A s s e t s .
The Fixed A s s e t s o f AC c o n s i s t o f a s e r i e s o f i m p o r t a n t
investments which were r e c e n t l y a p p r a i s e d a t a t o t a l o f $b 416,464,610. -.
These i n v e s t m e n t s a r e t h e f o l l o w i n g :
Fixed A s s e t s
Land (74,661 h e c t a r e s )
Covered A r e a s ( s h e d s , machine room,
oven, warehouses, h o u s e s , r a n c h
house e t c . )
Var.ious ( p o o l , grazing l a n d , f e n c i n g ,
walls, b r i d g e s e t c . )
Electrical Installations
Po t a b l e Water I n s t a l l a t i ~ n s
Sanitary Tnstallations
Equipment and Tools ( t r a c t o r s , plough,
t r a i l e r s , cages, troughs e t c . )
Total
The a s s e t s o f AC i n swine l i v e s t o c k a r e composed o f t h e f o l l o w i n g

( ~ a ,y 1982) :
Description --
No.- --------
Value $b ----------
T o t a l $b
Gilts
Boars
-----------
% s c r i p t ion ---
No. --------
Value $b ----------
T o t a l 6b
Piglets 216 6,240. - 1,347,840.-

Barrows 202 15,600.- 3,151,200.-
Hogs being f a t t e n e d 142 20,800.- 2,953,600.-
Brood Sows 124 35,000.- 4,340,000.-
Total 856 17,068,140.-
b) L i a b i l i t i e s
On t h e o t h e r hand, t h e company does n o t have any debts. The only

l i a b i l i t y is t h e c a p i t a l which w a s i n i t i a l l y $b 5,000,000.- and which should
be i n c r e a s e d by t h e same proportion as t h e r e v a l u a t i o n o f a s s e t s .
c ) Current P r o f i t a b i l i t y p e r Hog
The c u r r e n t p r o f i t a b i l i t y p e r hog, produced and f a t t e n e d by AC,

is shown i n d e t a i l i n Appendix X. Each hog produced weighing 95 kg h a s a
p r o f i t a b i l i t y o f $b 4,062. - o r 2075 above t h e sale p r i c e .
d ) Current Prof i t a b i l i t y p e r p i g
The c u r r e n t p r o f i t a b i l i t y p e r p i g produced by AC is shown i n

d e t a i l i n Appendix X I . Each p i g s o l d weighlng 15 kg has a n e g a t i v e
p r o f i t a b i l i t y o v e r t h e s a l e p r i c e o f approximately 9% o r $b 586.-. T h i s
l o s s , however, is b a s i c a l l y t h e r e s u l t o f t h e high rate o f d e p r e c i a t i o n
which is used because o f t h e r e v a l u a t i o n o f t h e a s s e t s o f AC. T h i s
r e v a l u a t i o n w a s done a t t h e end o f 1982 i n a proportion much h i g h e r than
t h e i n c r e a s e i n t h e p r i c e o f pork. It can be concluded t h a t AC l o s e s money
on t h e s a l e of p i g s b u t t h i s c a l c u l a t i o n depends t o a g r e a t e x t e n t on t h e
d e p r e c i a t i o n t h a t is a p p l i e d t o t h e breeding o f hogs.
2.1.3. Technical Aspects
According t o t h e opinion o f e x p e r t s , AC is considered t o be one o f

t h e b e s t hog farms i n B o l i v i a . It is known f o r its e x c e l l e n t i n f r a s t r u c t u r e ,
Its h i g h r a t e o f r e p r o d u c t i o n , t h e t y p e o f f e e d u s e d a n d f o r b e i n g g e n e r a l l y
w e l l run.
The most important t e c h n i c a l s t a t i s t i c s d e l i n e a t e t h e following

parameters f o r Agropecuaria Copacabana. ( s e e Appendix VII)
TABLE 1. TECHNICAL PARAMETERS OF AGROPECUARIA COPACABANA
-----------
Description -------
Indexes
Age o f g i l t a t first farrowing 11 t o 1 2 months

Number of p i g l e t s p e r farrowing 8.69 u n i t s
Number o f p i g l e t s a t weaning 6.98 u n i t s
Live weight of p i g l e t s a t b i r t h 1.31 kg
Live weight of p i g l e t s a-t weaning 12.15 kg
Live weight o f p i g s at market 90-100 kg
Breeds f o r h y b r i d i z a t i o n : Yorkshire, Hampshire and Duroc
I n s p i t e o f having a l l o f t h e n e c e s s a r y i n f o r m a t i o n , AC does n o t
keep a g e n e t i c p l a n n o r do t h e y have a s e l e c t i o n system f o r t h e b o a r s . They
o n l y change n a l e s e v e r y 4 y e a r s , c o n t r o l mounting and c r o s s t h e female t w i c e .
T n i t i a l l y , t h e h e r d was predominantly T)uroc, t h e n Hampshire .and now

it is Yorkshire which means t h a t t h e hogs t o be f a t t e n e d a r e h y b r i d s o f t h r e e
l i n e s and o f h i g h p r o d u c t i v i t y .
The l i v e s t o c k is f e d b a l a n c e d f e e d which is p r e p a r e d w i t h o u t u s i n g
t h e p r o p e r p r o p o r t i o n s . T h i s . d e f i c i e n c y w i l l b e remedied promptly now t h a t
AC.has engaged t h e s e r v i c e s o f a t e c h n i c i a n i n g e n e t i c s a n d n u t r i t i o n . The
s e r v i c e s o f t h i s e x p e r t w i l l r e s u l t i n a h i g h e r number o f b i r t h s , f a r r o w i n g s
and weanings .
For t h e moment, f o o d produced i n t h e r e g i o n is n o t used i n t h e
f e e d i n g o f t h e l i v e s t o c k . In t h e n e a r f u t u r e , t h e l i v e s t o c k w i l l b e f e d
kudzu, a leguminous p l a n t , which is grown throughout t h e Chapare. To t h i s
end, 20 h e c t a r e s w i l l be sowed a t t h e hog farm. Other c r o p s such as yucca
and bananas which a r e l o c a l l y grown w i l l a l s o b e c o n s i d e r e d .
The h y g i e n i c p r a c t i c e s of AC a r e e x c e l l e n t ; t h e hog houses a r e

cleaned once a day and t h e y a r e d k i n f e c t e d w i t h chemicals 4 t i m e s a month.
The w a t e r t r o u g h s a r e d i s i n f e c t e d once a week. The s a n i t a r y program i n c l u d e s
v a c c i n a t i o n s a g a i n s t swine f e v e r (once a y e a r ) , f o o t and mouth d i s e a s e ( e v e r y
f o u r months), b r u c e l l o s i s (once a y e a r ) and p n e u m o e n t e r i t i s (once d u r i n g
g e s t a t i o n a n d once 20 days b e f o r e f a r r o w i n g ) . It a l s o i n c l u d e s t h e u s e o f
supplements such as i r o n ( t w i c e a y e a r ) and t h e u s e o f a n t i b i o t i c s such as
p e n i c i l l i n and o x y t o x i n s when n e c e s s a r y .
The pregnant f e m a l e s a r e t o t a l l y confined. B e f o r e f a r r o w i n g t h e y a r e

switched t o pens a f t e r having been washed and undergoing d i s i n f e c t i o n o f t h e
vulva and t h e t e a t s .
The p i g s a r e t a k e n c a r e on e a r l y on. They have t h e i r u m b i l i c a l c o r d s

d i s i n f e c t e d and t h e i r e y e t e e t h c l i p p e d . C a s t r a t i o n t a k e s p l a c e t h r e e weeks
b e f o r e weaning.
2.1.4. ' A d m i n i s t r a t i v e Aspects
P r e s e n t l y t h e company is r u n by t h e owner, M r . Alfredo S a l a z a r and

by a t e c h n i c i a n i n b r e e d i n g and f a t t e n i n g o f hogs who l i v e at t h e farm. They
manage a l l o f t h e systems and c o n t r o l s o f f e e d , s a n i t a t i o n , p r o d u c t i o n ,
s e r v i c e s , s a l e s , p u r c h a s e s e t c . Attached t o t h i s Study a r e t h e c o n t r o l c a r d s
used by AC which s e r v e as an example o f t h e e f f i c i e n c y o f t h e i r management.
( s e e Appendix I ) . AC, moreover, h a s t h e t e c h n i c a l a s s i s t a n c e o f a
v e t e r i n a r i a n w i t h much e x p e r i e n c e i n t h e b r e e d i n g and f a t t e n i n g o f hogs.
2.2. The Role o f Ag-ropecuaria Copacabana in t h e P r o j e c t .
The s u i t a b i l i t y o f AC t o become t h e b r e e d i n g c e n t e r f o r t h e P r o j e c t
i s a s s u r e d by t h e c o n d i t i o n and s i z e o f its i n f r a s t r u c t u r e , t h e q u a l i t y of
its a n i m a l s and its e x c e l l e n t management e t c . Above a l l , AC is t h e b e s t
candidate f o r t h e experimental stage.
Therefore.. AC w i l l p a r t i c i p a t e a c t i v e l y i n t h e P r o j e c t i n t h e
following areas:
2.2'.1. P i g Production
With t h e enlargement of its i n f r a s t r u c t u r e , AC w i l l be a b l e t o

provide 6,000 p i g s p e r y e a r t o t h e farmers o f t h e a r e a (3,000 t h e f i r s t
y e a r and 6,000 from t h e beginning o f t h e second y e a r ) . To s o l i d i f y t h i s
arrangement, AC w i l l formally guarantee t h e provision of 6,000 p i g s p e r
y e a r t o t h e SF f o r as long as necessary.
The f e e d system o f AC which is based upon a balanced d i e t of t h e

c o r r e c t n u t r i t i v e v a l u e and percentage o f p r o t e i n s , enables t h e p i g s t o
g a i n 15 k i l o s i n 56 days. ( a c t u a l l y t h e 1981/1982 average o f 12.5 k i l o s p e r
p i g h a s a l r e a d y been surpassed and it is expected t h a t t h e 15 k i l o s w i l l be
a t t a i n e d with ACl s new t e c h n i c a l e x p e r t 1.
TWO days a f t e r b i r t h , t h e p i g s have t h e i r eye t e e t h c l i p p e d and

r e c e i v e an i n j e c t i o n o f i r o n . A t 6 weeks t h e y a r e vaccinated a g a i n s t swine
f e v e r and a t 8 weeks against f o o t and mouth. During t h i s time t h e animals
a r e also castrated.
With t h i s complete s a n i t a r y program t h e SF w i l l r e c e i v e t h e p i g s a t

56 days o f age in optimum condition and ready t o be f a t t e n e d .
2.2.2. Balanced Feed Production
The production of balanced f e e d w i l l be undertaken by AC who w i l l

use a formula designed by e x p e r t s i n swine l i v e s t o c k so t h a t t h e f e e d w i l l
be t h e most s u i t a b l e and a t a minimum c o s t t o t h e SF. The composition of
t h i s formula, based on a l i n e a l program e s p e c i a l l y developed by FNCD and i n
l i n e with c u r r e n t market p r i c e s , i s t h e following:
TABLE 2. FORMULA FOR FATTENING HOGS FOR THE SMALL FARMER
Ingredient Weight Digestable Digestable Price Cost

Protein Nutrient
--------- -----
kg -z-gzlE~- ---
n m-----
/kg $b&g -$@-
Sorghum 0.3219
Cottonseed
Meal 0.3000
Soy Meal 0.2485
Bran Meal 0,1000
Bone Meal 0.0250
Iodized S a l t 0.0040
Zoodry VM SA 0.0006
Total 1.000
The requirements f o r t h e p r e p a r a t i o n o f balanced f e e d a r e ,

a ) The content o f bran meal should n o t be more than 1%.
b ) The cottonseed meal content should n o t be g r e a t e r than 30%.
c ) A l l of t h e mixtures should contain 2.5% o f bone meal, 0.4% of

i o d i z e d salt and 0.06% of Zoodrey (VM-SA vitamin c o n c e n t r a t e manufactured

by ~ o c h e ).
d ) The percentage o f d i g e s t i b l e p r o t e i n s should be 18< f o r t h e
first month and 3m f o r t h e f o u r t h month. For s i m p l i c i t y ' s s a k e and ,in
o r d e r t h a t t h e same formula w i l l b e used by a l l of t h e SF, an average o f
2M of d i g e s t i b l e p r o t e i n is used.
e ) The t o k a l o f d i g e s t i b l e n u t r i e n t s should n o t b e less t h a n 500
units.
Therefore, t h e c o s t of t h e balanced f e e d f o r t h e hogs is e s t i m a t e d a t

$b 39.62 p e r k i l o . N a t u r a l l y t h i s formula may vary i n accordance with t h e
changing p r i c e s . o f t h e i n g r e d i e n t s .
2.2.3. Technical A s s i s t a n c e
A C l s experience e n a b l e s them t o provide t e c h n i c a l a s s i s t a n c e t o t h e

SF who p a r t i c i p a t e i n t h e experimental modules during t h e first y e a r . A f t e r
t h e first y e a r o f experimentation, t h e t e c h n i c a l a s s i s t a n c e should be
provided by a l i v e s t o c k development i n s t i t u t i o n , as t h e number o f modules
w i l l have i n c r e a s e d c o n s i d e r a b l y and t h e i r requirements f o r t e c h n i c a l
a s s i s t a n c e would b e beyond t h e c a p a b i l i t i e s of AC. On t h e o t h e r hand, AC
does n o t have any interest i n providing t h i s service on a permanent b a s i s ,
2.2.4. Evaluation and Control
The e v a l u a t i o n and c o n t r o l of t h e P r o j e c t d u r i n g t h e experimental

s t a g e w i l l a l s o be t h e r e s p o n s i b i l i t y of AC. T h i s r e s p o n s i b i l i t y w i l l be
s h a r e d w i t h t h e o r g a n i z a t i o n s which have promoted t h e P r o j e c t , such as
USAI?I/BOLIVIA, nTA, etc.
Control o f t h e i n d i v i d u a l experimental module o f each SF w i l l be

done i n w r i t i n g ( c o n t r o l s h e e t s ) by t h e v e t e r i n a r i a n i n h i s bimonthly v i s i t s .
T h i s c o n t r o l w i l l c o n s i s t of e s t a b l i s h i n g t h e amount of f e e d consumed by
each hog, balanced f e e d as w e l l as kudzu, yucca o r banana; a h e a l t h r e c o r d
and, most important, t h e weight i n c r e a s e o f t h e hogs.
Thie last p o i n t is of great importance because it w i l l show t h e SF

t h e p r o g r e s s made i n t h e f a t t e n i n g o f h i s hogs. T h i s s t r i c t c o n t r o l , moreover.
has t h e advantage o f being a b l e t o d e t e c t problems which r e q u i r e prompt
s o l u t i o n . F i n a l l y , it h a s t h e advantage t h a t t h e hogs, once f a t t e n e d , can b e
t r a n s p o r t e d d i r e c t l y t o FNCD without preoccupation.
The e v a l u a t i o n of t h e p r o g r e s s o f t h e P r o j e c t should b e monthly. The

f i n a l e v a l u a t i o n w i l l be done by t h e v e t e r i n a r i a n i n w r i t i n g a t t h e end o f
t h e program. I n t h i s e v a l u a t i o n h e should recommend t h e necessary changes i n
t h e Program and i n d i c a t e if a n o t h e r experimental p e r i o d i s r e q u i r e d .
2.3. P r i c e Fixing
A t t h e time t h a t t h i s Study was done arch, 1983) t h e r e d i d n o t

J
I
e x i s t an o f f i c i a l " p r i c e f o r pork. According t o t h e D i r e c t o r of t h e Meat
Committee, Engineer Alex Senzano, t h e Government is s t u d y i n g t h e p o s s i b i l i t y
o f r e e s t a b l i s h i n g an " o f f i c i a l " p r i c e based on v a r i o u s parameters of
Monteagudo ( s u c r e ) hog production c o s t s . When AESA analyzed t h e Cochabamba
market t h e p r e v a i l i n g p r i c e was $b 260.- p e r k i l o l i v e i n t h e market o r a t

t h e t h r e e p r o c e s s i n g p l a n t s . G e n e r a l l y t h e market p r i c e f o r a l l meat is
f i x e d by t h e m u n i c i p a l i t y . A s an " o f f i c i a 1 " p r i c e does n o t e x i s t t h i s p r i c e
s e t by t h e m u n i c i p a l i t y w i l l be used. h he " o f f i c i a l " p r i c e r e f e r s o n l y t o
pork of good q u a l i t y and n o t t o t h e l o c a l n a t i v e v a r i e t y . ' )
Agropecuaria Copacabana w i l l s e l l t h e p i g s t o t h e SF a t a c o s t o f
$b 6,240. - a p i e c e i n accordance w i t h t h e e s t a b l i s h e d formula o f m u l t i p l y i n g
t h e p r i c e o f l i v e pork by t h e weight o f t h e p i g and by a compensating
f a c t o r o f 1.60 (Jerome D. Belanger. --- Usted Puede Criar Cerdos. Ed. E l Ateneo,
Ruenos A i r e s , Argentina, 1977). Thus t h e p r i c e i s determined as $b 260.-/
15 kg / 1.60.
With r e s p e c t t o t h e purchase p r i c e o f t h e f a t t e n e d hogs from t h e SF,
v a r i o u s p o s s i b i l i t i e s were c o n s i d e r e d such as: f u t u r e c o n t r a c t s where t h e
minimum p r i c e is e s t a b l i s h e d , f o r example, t h e p r e v a i l i n g p r i c e i n t h e c i t y
o f Cochabamba a t t h e t i m e o f t h e s i g n i n g o f t h e c o n t r a c t ; t h e " o f f i c i a l "
p r i c e s e t by t h e Government; o r t h e p r e v a i l i n g p r i c e i n t h e Municipal
Slaughterhouse o f Cochabamba a t t h e t i m e o f t h e s a l e .
2.4. R e l a t i o n s h i p between Agropecuaria Copacabana and t h e Small Farmer
The first y e a r , d u r i n g t h e experimental phase o f t h e P r o j e c t , AC

w i l l make a v a i l a b l e t o t h e SF t h e r e q u i r e d t e c h n i c a l a s s i s t a n c e , f e e d and
s a n i t a r y c o n t r o l by means o f t h e v i s i t of a v e t e r i n a r i a n every 15 days.
Likewise, AC w i l l s e r v e as a d m i n i s t r a t o r o f t h e c o s t s i n c u r r e d by t h e SF
d u r i n g t h e P r o j e c t , t h a t is t o s a y , t h e c o s t o f t h e f e e d , o f t h e v e t e r i n a r i a n
p r o d u c t s , o f t h e t r a n s p o r t a t i o n , o f t h e t e c h n i c a l a s s i s t a n c e and o f t h e i n t e r e s t
accrued d u r i n g t h e 4 months o f f a t t e n i n g .
Consequently, t h e r e l a t i o n s h i p between AC and t h e SF w i l l b e f o r m a l

and h i g h l y s t r u c t u r e d . A c o n t r a c t w i l l b e s i g n e d i n which t h e purchase and
s a l e p r i c e o f t h e hogs w i l l be s t i p u l a t e d . It w i l l a l s o i n c l u d e a purchase
g u a r a n t e e f o r t h e SF o f t h e f a t t e n e d hogs. On t h e o t h e r hand, t h e SF a r e
o b l i g a t e d t o c a r e f u l l y f o l l o w t h e t e c h n i c a l f e e d program f o r t h e i r hogs and
t o s e l l them t o AC once t h e y a r e f a t t e n e d .
L a t e r , i n t h e second s t a g e , t h i s r e l a t i o n s h i p w i l l have a more

commercial n a t u r e as t h e SF w i l l r e s o r t t o s p e c i a l i z e d e o u r c e s o f f i n a n c i n g
and t e c h n i c a l a a a i a t a n o e ( t h e development i n s t i t u t i o n ) , N e v e r t h e l e s s , an
i n f o r m a l r e l a t i o n s h i p o f mutual b e n e f i t w i l l b e maintained between AC and
t h e SF whereby t h e former as t h e l e a d e r i n t h e p r o d u c t i o n o f p i g s w i l l
p r o v i d e i n f o r m a t i o n r e l e v a n t t o b e t t e r i n g t h e p r o d u c t i o n and f a t t e n i n g o f
hogs.
I n t h i s phase, t h e same formal r e l a t i o n s h i p w i l l b e maintained

between t h e SF and AC with r e g a r d t o t h e purchase and s a l e o f t h e hogs. The
d i f f e r e n c e is t h a t t h e i n s t i t u t i o n w i l l b e r e s p o n s i b l e f o r p r o v i d i n g t h e
t e c h n i c a l a s s i s t a n c e and t h e f i n a n c i a l a d m i n i s t r a t i o n o f t h e P r o j e c t . The
i n s t i t u t i o n w i l l a l s o have t h e r e s p o n s i b i l i t y o f f i x i n g t h e p r i c e s o f t h e
hogs, o f t h e f e e d , o f t h e v e t e r i n a r i a n p r o d u c t s and o f t h e o t h e r s u p p l i e s .
2 F i n a n c i a l Requirements

The a c t u a l i n s t a l l a t i o n s o f AC a r e n o t s u f f i c i e n t f o r a production
o f 6,000 hogs p e r y e a r f o r t h e SF which is t h e o b j e c t i v e o f t h e P r o j e c t f o r

t h e second y e a r . Consequently, a l l o f t h e a r e a s which would b e i n d i s p e n s a b l e
f o r t h e expansion have been c a r e f u l l y s t u d i e d at V i l l a T u n a r i , Chapare and a t '
Pairumani which w i l l s e r v e as t h e f a t t e n i n g c e n t e r f o r A C ' S own hogs. The
r e q u i r e m e n t s f o r t h e r e s u l t i n g c a p i t a l investment a r e shown i n Table 3 and
a r e d e s c r i b e d below :
a ) Construction
The c o n s t r u c t i o n program is d i v i d e d i n t o two y e a r s . I n Year 0 o r

during t h e experimental y e a r , t h e evaluation of t h e P r o j e c t w i l l t a k e place
by t h e end o f t h e y e a r and t h e expansion o f AC can a l s o begin. In Year 1, a l s o
towards t h e end, c o n s t r u c t i o n could commence a t t h e Pairumani Farm t o f a t t e n
t h e hogs.
The c o n s t r u c t i o n needed i s r e l a t i v e l y s i m p l e t o b u i l d and would be

modular. T h e r e f o r e , it can b e done w i t h t h e n e c e s s a r y c e l e r i t y . ( s e e Table 25
Schedule of A c t i v i t i e s of t h e P r o j e c t and T a b l e 23 Schedule of Hog P r o d u c t i o n )
1) Agropecuaria Copacabana
AC w i l l produce a l l o f t h e p i g s t o be f a t t e n e d , 13,000 t h e first

y e a r and 20,000 beginning t h e second y e a r . Taking i n t o a c c o u n t t h e a c t u a l
a v e r a g e r e s u l t s o f AC, t h e s u r f a c e r e q u i r e m e n t s , t h e a v e r a g e l i t t e r , t h e
number o f weaner p i g l e t s , t h e c o s t o f f e e d e t c . , 1 , 4 3 0 brood sows and 50 males
( b o a r s ) a r e needed. To a v o i d i n b r e e d i n g and t o improve t h e b l o o d l i n e 200
f e m a l e s f o r brood sows and 20 q u a l i t y males o f t h e t h r e e d i f f e r e n t b r e e d s
e x i s t i n g a t AC s h o u l d be imported f r o m t h e USA.
To s h e l t e r t h e s e brood sows and t h e i r o f f s p r i n g u n t i l weaning,

t h e f o l l o w i n g b u i l d i n g s a r e needed which a l s o t a k e i n t o account t h e e x i s t i n g
b u i l d i n g s f o r 140 brood sows and 2,000 hogs b e i n g f a t t e n e d p e r y e a r t
i) Hog Houses
Four hog houses a r e needed o f 99 m e t e r s l o n g by 9 m e t e r s

wide t o cover t h e n e c e s s i t i e s o f hog production. The 1,290 new brood sows
w i t h 8076 prepotency need a minimum o f 258 pens o f t h e F o e s t e r t y p e (one pen
f o r e v e r y f o u r brood sows). Each pen w i l l be 9rn2 (3m~3m)f o r t h e brood sow
and h e r l i t t e r . T h e r e f o r e , each house w i l l have 65 pens o f 9m2 each b u i l t
i n t w rows w i t h a 3 meter wide c o r r i d o r i n t h e c e n t e r and a s t o r a g e room
2
o f 9m a t one end.
The t o t a l number o f pens w i l l b e 260 (65 x 4) i n f o u r

hog houses o f 891m2 each. ( s e e Design 2 Hog ~ o u s e s )
A l l o f t h e hog houses w i l l have a c o r r i d o r 3 m e t e r s wide

i n t h e c e n t e r f o r t h e d i s t r i b u t i o n o f f e e d and f o r c l e a n i n g by means o f a
small t r u c k ( f o r example, a Ford 350).
ii) Farrowing Pens ( c a g e s )
Two houses o f 41.36 m e t e r s l o n g by 9 m e t e r s wide a r e

needed t o cover t h e f a r r o w i n g needs o f t h e 1 , 2 0 0 brood sows. The sows w i t h
807r, prepotency need a minimum o f 86 pens o r a pen f o r every 1 2 brood sows.
Each pen is 5. &m2 ( 3 x 1.88m). T h e r e f o r e , each house w i l l have

44 pens i n two rows w i t h a c o r r i d o r 3 m e t e r s wide d i v i d i n g them.
Consequently, t h e t o t a l number o f pens w i l l b e 88 (44 x 2 ) i n
two houses o f 372 .24m2 each.
iii) G e s t a t i o n Houses
Four houses, 6 2 - 7 9 m e t e r s l o n g by 9 m e t e r s wide a r e needed t o

c o v e r t h e needs o f t h e p r e g n a n t sows. The 1 , 2 9 0 brood sows need a minimum
o f . 1 0 4 s e c t i o n s o r one s e c t i o n p e r 12.4 sows.
Each p a r t i t i o n o r s e c t i o n is 14,5m2 (3m x 4.83m). T h e r e f o r e ,

each house w i l l have 26 p a r t i t i o n s o f 14.5m2 i n two l i n e s w i t h a c o r r i d o r 3
m e t e r s wide i n t h e c e n t e r .
A d d i t i o n a l l y , each s e c t i o n w i l l have a c c e s s t o a y a r d o f p a s t u r e
s o t h a t t h e f e m a l e s i n t h e first 1 2 weeks o f pregnancy may e a t grass a d - l i b i t u m ,
walk around a n d g e t enough s u n s h i n e . Each of t h e s e open y a r d s is 10m2 (2.07m x
4.83m).
The t o t a l number o f g e s t a t i o n pens w i l l b e 104 ( 2 6 x 4) i n f o u r
houses w i t h 565.11m2 o f covered s p a c e and 259.95m2 o f uncovered a r e a .
Construction Costs
The c o n s t r u c t i o n c o s t f o r t h e open houses, t a k i n g i n t o account

t h e l a y i n g o f p i p e s a n d t h e e l e c t r i c a l i n s t a l l a t i o n is e s t i m a t e d a t $b 10,000.-/
m2.
The c o n s t r u c t i o n c o s t o f t h e p a s t u r e y a r d s is c a l c u l a t e d a t h a l f
o r $b 5,000.- t h e s q u a r e meter.
I n a d d i t i o n t o t h e s e f i x e d i n v e s t m e n t s which are r e q u i r e d f o r
t h e program o f b r e e d i n g p i g s , AC w i l l c o n t r i b u t e t h e e x i s t i n g i n f r a s t r u c t u r e .
T h i s i n f r a s t r u c t u r e c o n s i s t s o f b u i l d i n g s ( s h e d s ) , warehouses, l a b o r a t o r y ,
houses, e l e c t r i c a l a n d s a n i t a r y i n s t a l l a t i o n s e t c . ( s e e Appendix V I I I f o r
f u r t h e r d e t a i l ) The a c t u a l v a l u e o f t h e e x i s t i n g i n f r a s t r u c t u r e , without
t a k i n g i n t o a c c o u n t t h e l a n d is $b 189.4 m i l l i o n . T h i s i n f r a s t r u c t u r e i s
c o n s i d e r e d t o b e t h e c a p i t a l investment o f AC i n t h e P r o J e c t .
iv) T o t a l C o n s t r u c t i o n AC
The t o t a l c o s t o f t h e new c o n s t r u c t i o n o f AC is $b 70.9 m i l l i o n .

The e x i s t i n g c o n s t r u c t i o n is v a l u e d a t $b 189.4 m i l l i o n making a t o t a l o f
$b 260.3 m i l l i o n .
2 ) Pairumani Farm
The Pairumani Farm (PF) w i l l f a t t e n p a r t o f t h e hogs produced by AC.

I n Year 1, 10,000 hogs w i l l b e f a t t e n e d and beginning i n Year 2 , 16,000 ,
hogs p e r y e a r .
The c o n s t r u c t i o n program f o r t h e hog houses f o r f a t t e n i n g w i l l b e

g r a d u a l and dependent upon t h e hog p r o d u c t i o n program o f AC. The c o n s t r u c t i o n
is s i m p l e a n d t h e r e f o r e , can b e r a p i d l y done when n e c e s s a r y ( s e e T a b l e s 2 3
a n d 25 and Design 2).
i) Hog Fattening Houses
Two houses of 90 meters long by 9 meters wide a r e needed

t o cover t h e need f o r f a t t e n i n g 14,000 hogs p e r year.
Each s e c t i o n w i l l be f o r 10 hogs with a s u r f a c e of 9m2

(3m x 3m). Each house w i l l have 60 s e c t i o n s i n two rows with a c o r r i d o r 3
meters wide i n t h e c e n t e r .
The t o t a l number of s e c t i o n s f o r f a t t e n i n g w i l l t h e r e f o r e
be. 480 (60 x 8) i n 8 houses of 810m2 each.
The f a t t e n i n g capacity w i l l be o f 4,800 hogs every f o u r

months o r 14,400 p e r year.
A s with t h e houses of AC, t h e houses o f PF w i l l a l s o have

a 3 meter wide c o r r i d o r at t h e c e n t e r which w i l l allow f o r f e e d d i s t r i b u t i o n
and cleaning by a small t r u c k ( t y p e Ford 350).
Construction Costs
The c o s t o f c o n s t r u c t i o n is estimated a t $b 10,000.- p e r

square meter.
ii) Dung Containers
Two dung c o n t a i n e r s should be b u i l t with a capacity f o r

10,368 t o n s of f e r t i l i z e r p e r year. This q u a n t i t y was a r r i v e d a t by multiplying
t h e t o t a l number of hogs (14,400) by 2 k i l o s of dung p e r day by 360 days p e r
year.
The estimated c o s t o f each dung c o n t a i n e r is $b 500,000,-

o r $b 1,000,000.- in total.
iii) Warehouses
Two s t o r a g e b u i l d i n g s should be b u i l t of 50m2 each; one
t o s t o r e feed a n d . t h e o t h e r f o r supplies.
The estimated c o s t i s $b 10,000.- p e r square meter of
$b 1,000,000.- i n t o t a l .
i v ) T o t a l Cor~structionPF
The tot:.' l:ontruction c o s t f o r PF i n accordance with t h e

above mentioned program is 56.8 m i l l i o n .
3) T o t a l Constr~l:. Lon
The t o t a l cos!. ,,f t h e new b u i l d i n g s f o r AC and PF is
$b 137.7 m i l l i o n . The t o t a l value o f a l l construction including t h e e x i s t i n g
i n f r a s t r u c t u r e of AC is $b 327.1 m i l l i o n .
b ) Machinery and muipment
The r e q u i r e d machinery and equipment f o r AC as well as f o r PF

is shown i n d e t a i l with t h e r e s p e c t i v e p r i c e s i n Table 3.
ASESORAMIENTO EMPRESAYIAL S.A.
1) Agropecuaria Copacabana
A dung t r a i l e r i s needed t o move t h e dung s o t h a t it can b e

more e a s i l y used as o r g a n i c f e r t i l i z e r .
A w a t e r p r e s s u r e system is needed f o r t h e c l e a n i n g o f t h e
yards.
A small 2.5 t o n t r u c k ( t y p e Ford 350) is needed t o d e l i v e r t h e
p i g s and t h e f e e d t o t h e SF and f o r t h e s u p e r v i s o r y u s e o f t h e v e t e r i n a r i a n .
Two 1 0 t o n t r u c k s a r e needed t o purchase t h e raw m a t e r i a l s used

i n t h e p r e p a r a t i o n o f t h e balanced f e e d . These raw m a t e r i a l s a r e p r i n c i p a l l y :
sorghum, b r a n meal, c o t t o n s e e d meal, soy meal, corn e t c . which a r e bought i n
S a n t a Cruz. These t r u c k s w i l l a l s o b e used f o r t h e t r a n s p o r t o f t h e balanced
f e e d f r o m Cochabamba t o t h e Chapare f o r t h e SF and f o r A C 1 s own b r e e d i n g
c e n t e r . F i n a l l y , t h e y w i l l b e used f o r t h e t r a n s p o r t o f t h e f a t t e n e d hogs o f
t h e SF t o FNCD i n Cochabamba.
For b e t t e r c o n t r o l and t o i n s u r e permanent communication,

e s p e c i a l l y i n an emergency, t h r e e r a d i o t r a n s m i t t e r s a r e r e q u i r e d ; one f o r
Cochabamba, one f o r AC (chapare) and one f o r t h e small t r u c k which w i l l be
used by t h e v e t e r i n a r i a n .
Another t r u c k is a l s o needed (4 x 4 ) f o r u s e d by Acts management

and technicians.
F i n a l l y , two s e p a r a t o r s o f dung a r e needed t o o p t i m i z e t h e u s e

o f t h e dung. These two s e p a r a t o r s a r e a d a p t a b l e t o a l e a f production system.
The t o t a l c o s t o f t h i s equipment and machinery is $b 46.7 m i l l i o n .
A d d i t i o n a l l y , AC w i l l c o n t r i b u t e a S h i b a u r a t r a c t o r o f 25 HP, a sower, a
plow, a f u m i g a t o r and a weeder f o r a t o t a l v a l u e o f $9 m i l l i o n . The t o t a l
v a l u e o f machinery and equipment f o r AC w i l l b e $b 55.7 m i l l i o n .
2 ) Pairumani Farm
A water p r e s s u r e system is needed f o r c l e a n i n g t h e y a r d s .

A s m a l l t r u c k ( t y p e Ford 350) is needed f o r t h e t r a n s p o r t o f
s u p p l i e s 'and f o r t h e management of PF.
c ) Swine Livestock
A s e x p l a i n e d p r e v i o u s l y i n Chapter a) 1) C o n s t r u c t i o n , it is
n e c e s s a r y t o import 200 f e m a l e s f o r brood sows and 20 q u a l i t y males t o b e t t e r
t h e b l o o d l i n e o f t h e a c t u a l h e r d o f AC.
To r e a c h a production f i g u r e o f 13,000 hogs t h e first y e a r , AC

s h o u l d add 730 females and 13 b o a r s . I n t h e second y e a r an a d d i t i o n a l
c o n t r i b u t i o n o f 500 f e m a l e s and 17 b o a r s should b e made.
The e s t i m a t e d c o s t o f , t h i s a d d i t i o n a l l i v e s t o c k is $b '47.5 m i l l i o n .
d) Installations
The a d d i t i o n a l i n s t a l l a t i o n s needed a r e :
ASESORAMIENTO EM PRESARIAL S.A.
1) Pens
88 pens a r e needed f o r t h e brood sows o f which AC w i l l

contribute 36.
2 ) Doors f o r t h e Yards
Hog Houses 260

Farrowing Houses 104
F a t t e n i n g Houses 480
Total 844
3) Nipple Valves
Hog Houses 260 x 2 520
Farrowing Houses 140 x 1 104
F a t t e n i n g Houses 480 x 3 1,440
Total 2,064
4) Troughs
A t r o u g h is needed f o r each pen which means 88 t r o u g h s a r e
needed i n t o t a l . A C w i l l p r o v i d e t h e 88 t r o u g h s .
5) T o t a l I n s t a l l a t i o n s
The t o t a l c o s t f o r t h e s e i n s t a l l a t i o n s is e s t i m a t e d a t
$b 22.4 m i l l i o n o f which AC w i l l c o n t r i b u t e $b1.4 m i l l i o n . The p u r c h a s e o f
t h e t o t a l o f t h e s e i n s t a l l a t i o n s h a s been planned f o r Year 0 a l t h o u g h some
would b e f o r PP.
e ) T o t a l Investment
The t o t a l investment is e s t i m a t e d a t $b 461 m i l l i o n o f which AC

w i l l c o n t r i b u t e $b 238 m i l l i o n . In t h e first y e a r ( y e a r 0 ) o n l y $b 370.1
million w i l l be required.
O f t h e t o t a l new c a p i t a l investment f o r t h e first y e a r ($b 370.1

m i l l i o n ) , f i n a n c i n g f o r o n l y $b147.8 m i l l i o n (4W) is needed. T h i s f i n a n c i n g
is o n l y needed t o expand A C ' s p r o d u c t i v e c a p a c i t y o f p i g s i n t h e Chapare
( s e e T a b l e 6). I n t h i s way AC w i l l b e a b l e t o meet t h e t o t a l requirement o f
p i g s by t h e SF f o r t h e first two y e a r s and a f t e r w a r d s t h e i r p a r t i a l
requirement. The second y e a r does n o t r e q u i r e f i n a n c i n g .
2.5.2. Working Capita ; kiequirements
The working c a p i t a l needs have been determined based on t h e g e s t a t i o n

p e r i o d , w e a n i n g - p e r i o d and f a t t e n i n g p e r i o d o f t h e hogs. These r e q u i r e m e n t s
have been d i v i d e d i n t o v a r i a b l e and f i x e d c o s t s which a r e shown i n d e t a i l i n
T a b l e s 4 and 5 and i n Chapter 2.6.2. Cost Determination.
The working c a p i t a l needs a r e summed up as f o l l o w s :
BEST AVAILABLE COPY

($b m i l l i o n s ) Year 1 Year 2
Variable Costs 150.2 218.8

Fixed Costs 48.6 60.4
c) Total 198.8 279.2 .
O f t h e t o t a l r e q u i r e d working c a p i t a l f i n a n c i n g is only needed f o r t h e
'
first y e a r and only f o r $b 143.4 m i l l i o n . The r e s t w i l l b e p r o v i d e d by AC and
by t h e P r o j e c t i t s e l f . ( s e e Table 6)
In a d d i t i o n t o t h e working c a p i t a l needs o f AC, f i n a n c i n g is a l s o

r e q u i r e d t o keep t h e f a t t e n i n g program o f t h e SF s o l v e n t during t h e
experimental s t a g e .
T h i s program c o n s i s t s i n f i n a n c i n g f o r t h e SF t h e i r c o s t s of t h e
balanced f e e d , t h e t e c h n i c a l a s s i s t a n c e , t h e v e t e r i n a r i a n products and t h e
t r a n s p o r t a t i o n c o s t s i n c u r r e d during t h e f o u r months o f t h e f a t t e n i n g
period.
These c o s t s are e s t i m a t e d t o be $b 9l,?OO.- p e r module o f 10 p i g s

excluding t h e i n t e r e s t charges f o r f o u r months. ( s e e Chapter 4.3.9. F i n a n c i a l
~ n a l y s i)s
AC w i l l t h e r e f o r e r e q u i r e a loan o f approximately $b 9l?,OOO. - f o r

t h e first 10 modules and $b 2,751,000.- f o r t h e second 30 modules. These
l o a n s w i l l be r e p a i d i n t h e i r t o t a l i t y , c a p i t a l p l u s i n t e r e s t , every f o u r
months when each f a t t e n i n g c y c l e is completed. Therefore, t h e source o f
repayment is t h e SF. Consequently, t h i s loan is n o t considered p a r t of t h e
f i n a n c i a l a n a l y s i s of AC. ( s e e Table 31 SF. Working C a p i t a l ~ e q u i r e m e n t s )
2.6.1. Income Determination
The hogs are s o l d d i r e c t l y t o Fabrica Nacional de Conservas Dillmann

f o r $b 24,700.- each, with an average weight o f 95 k i l o s and a p r i c e of
$b 260.- per k i l o . A s a l e s volume of 10,000 hogs t h e first y e a r and 14.000
hogs beginning t h e second y e a r h a s been estimated.
The p i g s are s o l d d i r e c t l y t o t h e SF f o r $b 6,240.- each with an

average weight o f 15 k i l o s . A s a l e s volume of 3,000 p i g s t h e first y e a r and
6,000 from t h e beginning o f t h e second y e a r h a s been estimated. Therefore,
t h e income from s a l e s would be $b 265,720,000. - t h e first y e a r and
$b 383,240,000.- beginning t h e second year. ( s e e Table 8 )
2.6.2. c o s t Determination'
Operating c o s t s have been divided i n t o v a r i a b l e and f i x e d and r e f e r

e x c l u s i v e l y t o t h e o p e r a t i o n s o f AC. The o p e r a t i o n s r e l a t i n g t o t h e SF a r e
s e l f - f inanced and a r e n o t taken i n t o account i n t h i s a n a l y s i s .
a ) Variable Costs
The d e t a i l o f t h e v a r i a b l e c o s t s is shown i n Table 4. An explanation

is p r e s e n t e d b e l o w o f t h e s e c o s t s f r o m t h e beginning of t h e second y e a r o r
a t f u l l production capacity.
- ASESORAMIENTO EMPRESARIAL S.A.
1) Feed
The c o s t of f e e d f r o m t h e second y e a r o n , i s e s t i m a t e d a t
$b 188.7 m i l l i o n . The volume o f f e e d needed i s 3,909 t o n s p e r y e a r . These
e s t i m a t e s t a k e I n t o account a m o r t a l i t y r a t e o f 15%f o r t h e p i g s and 1%
f o r t h e hogs, which i s reduced by h a l f as an average.
2) Animal S a n i t a t i o n
To determine t h e c o s t o f animal s a n i t a t i o n , t h e c o s t s r e l a t e d
t o t h e vaccines a g a i n s t f o o t and mouth ( 3 times a y e a r ) and swine f e v e r
(once a y e a r ) e t c . were taken. The medicines and vitamins given during t h e
f a t t e n i n g process o f swine a r e many, f o r example, Oxylosin, O x y t e t r a c y l i n ,
Colosal, Amsil, Negubon, Negasin, Iosan e t c . The c o s t o f animal s a n i t a t i o n
h a s been e s t i m a t e d a t $b 1 2 m i l l i o n p e r y e a r .
3) T r a n s p o r t a t i o n
The c o s t o f t r a n s p o r t a t i o n has been determined based on t h e
d e l i v e r y o f t h e balanced f e e d fdr t h e boars, t h e brood sows and t h e p i g s
f r o m Cochabamba t o t h e Chapare and t h e t r a n s p o r t of t h e p i g s fmm t h e
Chapare t o Cochabamba. It i s assumed t h a t t h e t r u c k s w i l l pay f o r t h e r e t u r n
t r i p by c a r r y i n g f r e i g h t . The t o t a l c o s t o f t h i s category is e s t i m a t e d a t
$b 2.5 m i l l i o n p e r y e a r ( y e a r 2). he t r a n s p o r t a t i o n c o s t of raw m a t e r i a l s
l i k e bran meal, corn, sorghum, cottonseed meal, soy meal e t c . f o r t h e making
o f t h e balanced f e e d i s included i n t h e p r i c e o f t h e f e e d , )
4 ) Basic Labor Force
Labor n e c e s s i t i e s have been estimated i n t h e following manner:
Item No. Monthly No, o f Total

- S a l a r y ea. Salaries ($b)
Chapare Workers 8 12,400. - 15 1,488,000.-
Pairumani Workers 8 12,400. - 15 1,488,000.-
Drivers 4 20,000.- 15 1,200,000,-
Helpers 4 12,400.- 15 744,000.-
Social Benefits 3% 1,476,000, -
Total 6,396,000. -
5) Renting of S i l o s
The c o s t h a s been c a l c u l a t e d a t $b 37.- p e r q u i n t a l o r $b 0.80 /
kg with a permanence o f a month which s i g n i f i e s $b 0.80 / kg x 3,909 t o n =
$b 3.1 m i l l i o n p e r year.
6 ) various
i) Insurance
An average o f two months s t o c k of its annual value h a s been

e s t i m a t e d f o r f e e d and f o r t h e swine l i v e s t o c k its annual v a l u e according t o
actual rates.
Insured Item Amount $b Rate Annual Cost
Feed 188,076,000/6 0.004 125,000

Swine Livestock 47 ,535 000 0.030 1,426,000
Total 1,551;000
ii) Electricity
The e l e c t r i c a l c o s t is composed of t h e combustibles used

i n t h e motors owned by AC. Approximately 60 l i t e r s of g a s o l i n e a r e used per
day and 48 l i t e r s of o i l p e r y e a r t o maintain t h e motors i n o p e r a t i o & 12
hours a day. In t h i s way t h e annual c o s t would be $b 56&,300.-.
i i i ) Others
A monthly e s t i m a t e of $b 500,000. - o r $b 6,000,000. - p e r

y e a r has been c a l c u l a t e d .
iv) Total
The t o t a l cost of t h e v a r i o u s items is t h e r e f o r e

$b 8,115,300.-a
b) Fixed Costs
The d e t a i l of t h e f i x e d c o s t s is shown i n Table 5. An explanation

of t h e s e c o s t s f r o m t h e beginning of t h e second y e a r o r f u l l production
capacity is o u t l i n e d below:
I 1 ) Administrative Expenses
The a d m i n i s t r a t i v e expenses have been estimated as follows:
It em No. Monthly No. of Total

- S a l a r y ea. Salaries ($b)
General Manager 1 35,000.- 15 525,000. -

( p a r t time )
Administrators 2 60,000. - 15 1,800,000.-
Vet e r i n a r i a n s 2 50,000.- 15 1,500,000.-
Specialist 1 33,333.- 12 400,000, -
S o c i a l Benefits 1,148,000.-
(except f o r swine s p e c i a l i s t )
Total 5,372,000.-
2) Maintenance
Maintenance has been c a l c u l a t e d a t 1.5% of t h e value of t h e new

and e x i s t i n g b u i l d i n g s and i n s t a l l a t i o n s whose t o t a l value is t h e sum of
$b 349 m i l l i o n . Likewise, t h e value of t h e machinery and equipment has been
determined at 3%which reaches a value of $b 24 m i l l i o n excluding t h e f o u r
t r u c k s . The t o t a l c o s t of maintenance w i l l be $b 6 m i l l i o n p e r year.
3) Depreciation
ASESORAMIENTO EM PRESAylAL S.A.
-
In accordance with l e g a l d i s p o s i t i o n s t h e following depreciation
r a t e s are used t o c a l c u l a t e t h e depreciation o f t h e a s s e t s of t h e company:
Asset % Dep. Value t o be Cost of

Depreciated Annual
($b) Depreciation
Quildings and
Installations 10 349,4433,000 34,948,300
Machinery and
EQuipment 20 64,000,000 12,800,000
Total 47,748,300
4 ) Insurance
Insurance on t h e buildings and i n s t a l l a t i o n s and on t h e machinery

and equipment is estimated as follows;
Insured Item Amount ($b) -

Rate Yearly Cost
Buildings and
Installations 349,483,000 0.004 1,397 ,932
Machinery and
Quipment 64,000,000 0.020 1,280,000
Total 2,677,932
c ) F i n a n c i a l Costs
The s t r u c t u r e of t h e loans is shown i n Table 6. The repayment

schedule of t h e loans with t h e following terms is sho'm i n Table 7.:
1 ) Investment C a p i t a l
T o t a l amount r e q u i r e d $b 370,127,000.-
Amount t o be financed $b 147,821,000.-
I n t e r e s t Rate: Banco Central de B o l i v i a 38%p.a.
I n t e r e s t Rate: P a r t i c i p a t i n g F i n a n c i a l I n s t i t u t i o n 48% p.a.
Tenort B.C.B. 2 y e a r s grace
Tenor; P.F.I. 2 years grace
Partlolpatlona B.C.B. 80%
P a r t i c i p a t i o n : P.F.I. 2W!
2 ) Working C a p i t a l
T o t a l amount r e q u i r e d $b 159,370,000'. -
Amount t o be financed $b 143,433,000.-
I n t e r e s t Rate: B.C.B. 3&4 p.a.
I n t e r e s t Rate : P F I... 485 p.a.
1 year grace
Tenor: B.C.B.
Tenor; P.F.I. 1 y e a r grace
P a r t i c i p a t i o n r B.C.B. 80%
P a r t i c i p a t i o n ; P.F.I. 2Q%
2.7. Financial Projections
2.7.1. Income Statement

The income s t a t e m e n t shows a l o s s of $b 49.6 m i l l i o n f o r t h e first

y e a r . The subsequent y e a r s , however, show a p o s i t i v e s i t u a t i o n r e a c h i n g a
p r o f i t o f $b 100.4 m i l l i o n i n Year 6. ( s e e Table 8 )
2.7.2. Cash Flow
The cash flow shows a l i q u i d i t y of $b 2.4 m i l l i o n i n t h e first y e a r

which is n o t s u f f i c i e n t t o cover t h e d e f i c i t o f t h e second y e a r when repayment *
begins'6n t h e c a p i t a l investment l o a n . For t h i s r e a s o n , t h e owners must

c o n t r i b u t e $b 11.3 m i l l i o n . The Years 4 t o 6 show an important l e v e l o f
l i q u i d i t y r e a c h i n g $b 376.3 m i l l i o n o f accumulation i n Year 6. ( s e e Table 9 )
2.8. Prof i t a b i l i t y Analysis
2.8.1. Net P r e s e n t Value
The Net P r e s e n t Value (NPV) h a s been c a l c u l a t e d t o t h e r a t e o f t h e c o s t

of t h e c a p i t a l which is 34%p e r y e a r . T h i s rate was used because it is t h e
s a v i n g s account r a t e o f f e r e d by t h e banks. ( s e e Table 1 0 )
To c a l c u l a t e t h e NPV t h e cash flow without t h e a d d i t i o n a l c a p i t a l

c o n t r i b u t i o n and t h e c a p i t a l i n c r e a s e i t s e l f a r e t a k e n , independently. The
NPV, t h e r e f o r e , is t h e d i f f e r e n c e between t h e two. , '
The Net P r e s e n t Value a t 9%is $b 16.8 m i l l i o n ,

A s can be s e e n , t h e NPV is a very p o s i t i v e amount.
2.8.2. I n t e r n a l Rate o f Return
The I n t e r n a l Rate o f Return (IRR) h a s been c a l c u l a t e d a t 41%, a

r e a s o n a b l e r a t e o f r e t u r n . To c a l c u l a t e t h e IRR t h e cash flow without t h e
c a p i t a l i n c r e a s e and t h e same c a p i t a l c o n t r i b u t i o n were p r e s e n t valued u n t i l
r e a c h i n g a v a l u e ($) o f d i s c o u n t which equaled t h e two amounts.
2.8.3. Cost B e n e f i t
The c o s t b e n e f i t has been c a l c u l a t e d a t 34$ p e r y e a r as t h e c o s t o f
t h e c a p i t a l . The p r e s e n t v a l u e a t o f t h e cash f l o w without t h e c a p i t a l
i n c r e a s e was taken as a b e n e f i t and t h e p r e s e n t v a l u e o f t h e owner's
capital contribution also at p e r y e a r was t a k e n as a c o s t .
The Cost B e n e f i t a t w$ is 1.32.

These r a t i o s r e f l e c t p o s i t i v e v a l u e s .
2.9. S e n s i t i v i t y Analysis .
A s e n s i t i v i t y a n a l y s i s was done with r e s p e c t t o t h e sales p r i c e of
t h e animals, both f o r t h e p i g s s o l d t o t h e SF as w e l l as t h e f a t t e n e d hogs
s o l d t o FNCD and with r e s p e c t t o t h e c o s t s of production and o p e r a t i o n
( i n c l u d i n g t h e c o s t s o f t h e investment).
2.9.1. P r i c e I n c r e a s e o f 10f4
The p r i c e p e r k i l o o f l i v e pork was i n c r e a s e d f r o m $b 260.- t o

ASESORAMIENTO EMPRESANIAL S.A.
$b 286.- thereby i n c r e a s i n g t h e p r i c e f o r t h e p i g s f r o m $b 6,240.- t o

$b 6,864.- and t h e p r i c e f o r t h e f a t t e n e d hogs f r o m $b 24,700.- t o $b 27,170.-.
A l l of t h e o t h e r f a c t o r s remain constant. The r e s u l t of t h i s i n c r e a s e i s
summarized as follows:
1% INCREASE I N THE PRICE OFPORK INCREASES PROFITABILITY ,(IRR)

FOR AC BY 45 PERCENTAGE POINTS FROM 41% TO 86%. (SEE TABLES 1 0
AND 26)
2.9.2. Cost Increase of 1%
A l l of t h e v a r i a b l e and f i x e d c o s t s , t h e investments and t h e owner's

c a p i t a l c o n t r i b u t i o n were increased by 1% ( t h e o r i g i n a l p r i c e p e r k i l o of
pork remains unchanged). The r e s u l t o f t h i s i n c r e a s e is summarized as followst
1% INCREASE I N COSTS (EXCEPTFOR INTEREST RATES) DECREASES

THE PROFITABILITY (IRR) FOR AC BY 31 PERCENTAGE POINTS FROM
41% TO 1%. (SEE TABLES 1 0 AND 27).
2.9.3. Conclusion
It can be concluded t h a t t h e P r o j e c t is s e n s i t i v e t o changes in p r i c e s .

and c o s t s and t h a t t h e r e a c t i o n is g r e a t e r t o t h e p r i c e change than t o t h e c o s t
change. An i n c r e a s e of 1% i n both p r i c e s and c o s t s b e n e f i t s AC by approximately
14 percentage points..
T h i s s e n s i t i v i t y a n a l y s i s has a r e l a t i v e v a l i d i t y as it is v a l i d f o r
a very s h o r t p e r i o d of time given t h e i n f l a t i o n a r y s i t u a t i o n i n Bolivia. For
t h i s reason, a l l of t h e p r o j e c t i o n s made i n t h e Study are based on a s t a t i c
model, t h a t is t o say, without i n c r e a s e s i n p r i c e s and c o s t s . The b a s i c
premise is t h a t t h e i n c r e a s e s i n p r i c e and c o s t w i l l compensate one another.
L ASESORAMIENTO EMPRESAYIAL S.A.
' 3. ANALYSIS OF THE FABRICA NACIONAL DE CONSERVAS DIT'LMANN (FNCD)
3.1. Background
The F a b r i c a Nacional de Conservas Dillmann was founded i n 1923 by M r .

Ricardo Dillmann.
It s t a r t e d i t s a c t i v i t i e ~as a sausage and processed meat f a c t o r y and .

t h e n moved on a f t e r experimenting s u c c e s s f u l l y t o t h e canning o f meats,
f r u i t s and v e g e t a b l e s .
An i n d u s t r i a l complex i n Pinami, Cochabamba was r e c e n t l y b u i l t

because o f t h e s u c c e s s o f t h e company. T h i s complex is t o t a l l y f i n i n s h e d ,
i n f u l l production and it u t i l i z e s t h e newest technology.
FNCD can be considered one o f t h e b e s t i n d u s t r i a l p l a n t s i n B o l i v i a .

Its f i n a n c i a l , a d m i n i s t r a t i v e and t e c h n i c a l c a p a c i t y e n a b l e s it t o meet l o c a l
market demand and t o expand production with e x p o r t markets i n mind.
The F a b r i c a Nacional de Conservas Dillmann is a l i m i t e d l i a b i l i t y

company which was r e s t r u c t u r e d a n September 1 2 , 1958. It h a s a p a i d i n
c a p i t a l o f $b 53,571,650.-. The r e v a l u a t i o n o f a s s e t s h a s i n c r e a s e d t h e n e t
worth o f t h e company t o $b 614,804,139
See Appendix V)
.-.
(source: FNCD September, 1982 -
The s h a r e h o l d e r s o f t h e company a r e t h e f o l l o w i n g persons:
E s t h e r F i e r r o vda. de Pena 450 shares

Raul ~ e n aC l a v i j o 90 shares
Clara Pena Rodriguez 120 shares
Qoberto Pena Rodriguez 120 shares
Hugo Pena Rodriguez 120 shares
Total 900 s h a r e s ,
3.1.2. I n f r a s t r u c t u r e and Equipment Investment
As o f September 30, 1982 FNCD showed t h e f o l l o w i n g v a l u e s i n its

balance s h e e t I
Account Net Revalued Balance ($b]

Land 47,140,012.-
Buildings 564,354,504.-
Machinery and EQuipment 88,214,062.-
Vehicles 3,605,214.-
Assets i n T r a n s i t 313,210,648.-
Total 1,016,524,440.-
3.1.3. Cost o f Production f o r Goods Containing Pork
FNCD produces b a s i c a l l y two t y p e s o f p r o d u c t s c o n t a i n i n g pork. The

first is c o l d meats and s a u s a g e s and t h e second is canned meats.
A d e t a i l e d a n a l y s i s of t h e production o f canned meat c o n t a i n i n g

pork would be t o o complicated f o r t h e purposes o f t h i s Study. Even more s o

c o n s i d e r i n g t h a t ' t h e volume of pork t h a t a c t u a l l y goes i n t o t h e canned meat
h a s diminished o v e r t h e p a s t y e a r s . ( s e e Chapter 3.1.4.)
F o r t h i s reason t h e a n a l y s i s o f t h e P r o j e c t o n l y t a k e s i n t o 'account
t h e production o f c o l d meats and sausages.
The a c t u a l production c o s t s a r e summarized as f o l l o w s :
a) Raw M a t e r i a l
For t h e production o f c o l d meats and s a u s a g e s , t h e f o l l o w i n g raw

materials a r e needed:
Pork w i t h o u t bones 48.9%

Beef without bones 37.01%
O t h e r raw m a t e r i a l s 1 4 .b 3%
Total 100.0%
The e s t i m a t e d r e s u l t s , t h a t is t o s a y , t h e r e l a t i o n s h i p between
t h e weight o f pure meat without bones and t h e l i v e weight o f t h e hog is t h e
following1
Hogs
Cattle
T h e r e f o r e , f o r t h e p r o c e s s i n g o f each hog, 0.29 o f beef is needed.

The cow should be approximately 300 k i l o s i n weight.
Hogs 90 kg x 63.755 = 57.375 kg = 48.%

Hogs / Cattle 57.375 kg x 37 . O N ) /
148.5% x 50% x 300 kg) = 0.29%
The e s t i m a t e d c o s t s o f production f o r t h e p r o c e s s i n g o f each hog

i n t h e making o f c o l d meats and s a u s a g e s a r e t h e f o l l o w i n g :
1 hog (90 kg x $b 260.-/ kg) $b 23,400.-

0.29 beef (300 kg x $b 160.- / k g ) $b 13,920.-
Other ingredients
( ~ p p r o x . 5% o f t h e c o s t o f t h e hog) !$b 12,174. -
T o t a l Raw M a t e r i a l s $b 49,494.-
b ) Conversion Cost
The conversion c o s t f o r t h e p r o c e s s i n g o f each hog i s e s t i m a t e d

a t $b 3,310.-.
c ) T o t a l Production Cost
The t o t a l c o s t o f production f o r t h e p r o c e s s i n g o f each hog o f 90

kg i n t h e making o f c o l d meats and s a u s a g e s i s t h e following:
Raw M a t e r i a l s $b 49,694.-
Conversion Cost $b 3,310.-
Total $b 53,004.-
ASESORAMIENTO EMPRESAYlAL S.A.
3 .i -4. Production S t a t i s t i c s
The production s t a t i s t i c s of FNCD f o r t h e meat p l a n t a r e shown below.
One may observe t h a t t h e l a r g e s t emphasis was placed on t h e f r e s h products
because of t h e i r g r e a t e r r o t a t i o n and t h e i n t r o d u c t i o n o f new more economical
l i n e s . The canned products because of t h e i r high c o s t ( e s p e c i a l l y due t o t h e
c o s t o f t h e t i n p l a t e which i s t o t a l l y imported) have d e c l i n e d s i g n i f i c a n t l y .
FNCD is making e f f o r t s t o change t h e i r packaging t o l e s s expensive m a t e r i a l s .
such as p l a s t i c , cellophane e t c .
Production S t a t i s t i c s - FNCD
~g 1980 ~g 1981 ~g 1982(est.) 1983(proj.)
- -
Unit - - U n-
it Unit Unit
Fresh Products 366 382 416
Canned Products 282 562 123 247 55 194
Hogs (animals)* 495 5,500 385 4,280 360 4,000 20,800
C a t t l e ( a n i m a l s ) ~ * 4 8 01,600 372 1,240 348 1,160 6,000
*For t h e c a l c u l a t i o n of t h e number o f hogs and l i v e k i l o s o f pork needed,

a conversion rate o f 1 l i v e k i l o o f pork f o r each 1.31 k i l o s o f f r e s h product
( c o l d meats and sausages) and canned meats is used. The average weight of t h e
hogs is 90 kg.
**For t h e c a l c u l a t i o n of t h e number of cows and l i v e k i l o s o f beef needed,

t h e conversion r a t e o f 0.29 cows f o r each hog is used. The average weight of
t h e cows i s 300 k i l o s .
3.1.5. Sources o f Raw M a t e r i a l
F'NCD s u p p l i e s i t s e l f with raw materials f r o m t h e l o c a l market although

t h e supply is n o t s u f f i c i e n t t o optimize t h e i n s t a l l e d c a p a c i t y of t h e f a c t o r y .
T h e i r t r a d i t i o n a l s u p p l i e r s of hogs are8
Supplier P l a c e where Slaughtered

L u i s Sandoval Mont eagudo
Florencio ~ a i c h e z Monteagudo
Marina de Vargas Mont eagudo
F e l i x Camboa Co chabmba
Angel Mercado Co chabamba
F e l i x Mercado Co chabamba
Alf redo S a l a z a r Chapare
Proyecto Fomento a l a Ganaderia
Porcina Monteagudo
Marciano Sanchez Mo nt eagudo
Agapito Vargas Mon teagudo
Gaston Herboso Mon t eagudo
Edgar C l a r o s Monteagudo
Juan Llanos Punata
Mario G a l indo Punata
Carmela T o r r i c o Co chabamba
3.1.6, I n s t a l l e d Production F a c i l i t i e s
FNCD possesses a complete and modern f a c t o r y f o r t h e processing of

meats, both beef and pork. The capacity of t h e p l a n t i n a l l of its areas is1
Maximum Capacity I
Hogs r 12 p e r hour o r 89,856 per year*
Cattler 4 p e r hour o r 29,952 p e r year
Actual Capacity : (70%)
Hogs r 8.4 per hour o r 62,899 p e r year*
Cattle; 2.8 p e r hour o r 20,966 per y e a r
* 24 hours per day x 26 days / month x 1 2 months
3.1.7. Process of Meat Production Beginning with t h e Hog
I n t h i s chapter t h e process by which meat products a r e elaborated

beginning with t h e hog w i l l be described.
a ) Purchase of Animals
1 ) Live Purchases
The hogs which meet t h e weight requirements ( n o t less than 80

kg) and o t h e r s a n i t a r y conditions are purchased l i v e , The animals are then
put i n t o yards t o r e l a x .
2 ) Purchase of Slaughtered Animals
This procedure c o n s i s t s of a c q u i r i n g hogs k i l l e d away f r o m t h e

f a c t o r y , usually from slaughterhouses. The weight as well as t h e p r i c e per
k i l o a r e determined i n function of p r e e s t a b l i s h e d p r o f i t guide l i n e s . A f t e r
a s a n i t a r y evaluation is made, t h e meat is cleaned before p u t t i n g it i n a
cold s t o r a g e room.
b ) Hog Slaughter
The hogs which were r e s t i n g i n t h e yards a r e s e l e c t e d f o r q u a l i t y

and then guided down a c o r r i d o r equipped with showers where they a r e cleaned.
Continuing on, they e n t e r t h e slaughterhouse where they a r e stunned by means
of an e l e o t r i o shock. Once stunned they axe t r a n s p o r t e d by meane of a system
of rails t o where they a r e k i l l e d and bled. The blood is l a t e r used t o make
blood sausage o r blood meal.
The animal then passes through a s c a l d i n g process where it is

submerged i n a t u b of hot water t o wet t h e s k i n , permitting quicker peeling.
The hog then goes t o t h e peeling machine where 9% of t h e s k i n is removed.
The s k i n may be used f o r t h e manufacture of brushes o r f o r f e e d concentrates.
The r e s t o f t h e s k i n is taken o f f manually with a knife. Once desklnned, t h e
animal is q u a r t e r e d and t h e i n t e r n a l organs, i n t e s t i n e s , lungs, h e a r t ,
spleen, l i v e r e t c . a r e removed. The r e s u l t i n g c a r c a s s i s cleaned and c u t up.
In t h i s s t e p t h e head, e a r s , hoofs and t a i l s a r e separated o u t . The c a r c a s s
is then divided i n t o two p a r t s which a r e weighed and s t o r e d i n a r e f r i g e r a t e d
room f o r approximately 15 hours, This meat is now ready t o be processed.
c ) Deboning and Selection

The carcasses a r e brought from t h e r e f r i g e r a t e d room t o t h e
deboning t a b l e s where t h e meat is s e p a r a t e d f r o m t h e bones. The bones a r e

ground down t o b e used f o r balanced f e e d and t h e meat goes t o t h e l e a n meat
t a b l e s . A t t h e s e t a b l e s , t h e meat i s s e p a r a t e d and p u t i n t o t r a y s o f s t a n d a r d
weight. The meat i s t h e n c u r e d by a d r y p r o c e s s o r by immersion and c h i l l i n g .
A f t e r t h e meat is c h i l l e d i n t h e r e f r i g e r a t e d chamber, it is ready t o be used
as a raw m a t e r i a l i n t h e p r o c e s s o f making s a u s a g e s and c o l d meats.
d ) P r o c e s s i n g of t h e Meat u n t i l t h e F i n i s h e d Product
The meat p r o d u c t s can be d i v i d e d i n t o s c a l d e d , cooked, raw, c u r e d

and c o l d c u t s . -
1) Scalded Sausages
The p r o c e s s b e g i n s w i t h t h e g r i n d i n g o f t h e meat s e l e c t e d f o r
t h i s purpose. The meat then g o e s t o a machine c a l l e d n ~ u t t e r " w h e r eit is c u t
a n d e m u l s i f i e d w i t h o t h e r i n g r e d i e n t s such as bacon, w a t e r and s p i c e s . T h i s
e m u l s i f i e d mass p a s s e s t o a sausage making machine where v a r i o u s s i z e s and
l e n g t h s o f s a u s a g e s a r e made. The s a u s a g e s a r e t h e n s e n t t o a h e a t e d smoked
room where t h e y a c q u i r e t h e d e s i r e d aroma a n d c o l o r . Afterwards t h e s e .
s a u s a g e s a r e p u t i n a p o t w i t h a ( f a 1 s e bottom where t h e y a r e cooked and t h e n
c h i l l e d i n w a t e r , F i n a l l y , t h e s a u s a g e s a r e weighed, t h e q u a l i t y is checked
and t h e y a r e s t o r e d as a f i n i s h e d p r o d u c t .
2) Cooked Sausages
The p r o c e s s b e g i n s with t h e cooking o f t h e meat a l o n g w i t h
s p e c i a l bones. Then t h e f a t is removed manually a t a t a b l e f o r t h i s purpose.
From t h e r e it p a s s e s t o t h e g r i n d e r t o o b t a i n t h e d e s i r e d c o n s i s t e n c y . The
meat is t h e n t a k e n t o t h e mixer where it is blended w i t h s p i c e s and o t h e r
i n g r e d i e n t s a c c o r d i n g t o each t y p e o f d e s i r e d f i n i s h e d p r o d u c t . The mass
p a s s e s t o t h e s a u s a g e making machine where it i s encased i n d i f f e r e n t s i z e
sausages. These s a u s a g e s a r e t h e n cooked i n f a l s e bottom p o t s and l a t e r
c o o l e d i n w a t e r . The s a u s a g e s a r e t h e n weighed, t h e q u a l i t y is checked and
t h e y a r e s e n t t o t h e f i n i s h e d product s t o r e h o u s e .
3) Uncooked Sausages
The p r o c e s s b e g i n s w i t h t h e s e l e c t i o n o f meat which is t h e n
m u n d i n t h e meat g r i n d e r . It t h e n p a s s e s t o a mixer where it is blended
w i t h s p i c e s and o t h e r i n g r e d i e n t s i n accordance w i t h each t y p e o f f i n i s h e d
p r o d u c t . From t h e r e t h e mass g o e s t o t h e sausage making machine where it is
encased i n s a u s a g e s o f d i f f e r e n t s i z e s . These s a u s a g e s a r e weighed, checked
f o r q u a l i t y and s e n t t o t h e f i n i s h e d product s t o r e h o u s e .
4) Smoked Sausages
The p r o c e s s a l s o b e g i n s w i t h t h e s e l e c t i o n o f t h e t y p e o f
cured meat which i s t h e n ground i n t h e meat g r i n d e r t o o b t a i n t h e d e s i r e d
s i z e i n accordance w i t h t h e t y p e o f f i n i s h e d product b e i n g made. Then t h e
meat is taken t o t h e mixer where s p i c e s a r e added a n d t h e mass i s
homogenized. T h i s mass t h e n g o e s t o t h e sausage making machine where it is
encased i n s a u s a g e s o f v a r i o u s si'zes. These s a u s a g e s a r e t h e n s e n t t o a
c o l d smoked chamber and l a t e r t o a d r y i n g room. Then t h e y a r e weighed,
checked f o r q u a l i t y and s e n t t o t h e s t o r e h o u s e o f f i n i s h e d p r o d u c t s .
5) Cold Cuts
These a r e s e l e c t e d c u r e d meats p r e p a r e d w i t h o u t c a s i n g s t o
enhance t h e i r p r e s e r v a t i o n .
i) Cooked Cold Meats
The p r o c e s s .begins w i t h t h e s e l e c t i o n o f meat f o r t h e s e

p r o d u c t s a n d c o n t i n u e s w i t h t h e p r e p a r a t i o n of t h e meat. Once p r e p a r e d , it is
t r a n s p o r t e d t o t h e i n j e c t o r where b r i n e i s i n j e c t e d . From t h e r e it g o e s t o a
massage machine where t h e muscular f i b e r s a r e broken down. I n t h e c a s e o f ham
t h e meat i s p l a c e d i n a mold, cooked, weighed, q u a l i t y c o n t r o l l e d and s e n t t o
t h e s t o r e h o u s e f o r f i n i s h e d goods. I n t h e c a s e o f encased ham, t h e meat i s
put i n t o a synthetic sheath.
i i ) Smoked Bacon
I n t h e c a s e o f smoked bacon, t h e meat is p r e p a r e d a n d then.

passed t o a v a t c o n t a i n i n g b r i n e t o complete t h e c u r i n g p r o c e s s by immersion.
Afterwards t h e bacon is q u a l i t y c o n t r o l l e d , weighed and s e n t t o t h e s t o r e h o u s e
f o r f i n i s h e d goods.
The expansion o f t h e i n s t a l l a t i o n s i n Pinami r e q u i r e d an investment

o f approximately ~ ~ $ 3 m . 5i l l i o n which w a s f i n a n c e d by s e v e r a l n a t i o n a l banks,
s h a r e h o l d e r c a p i t a l i n c r e a s e s and by t h e r e p e a t e d r e i n v e s t m e n t o f d i v i d e n d s .
The expansion was a f f e c t e d by s u b s t a n c i a l i n c r e a s e s i n c o s t s as a

r e s u l t o f i n f l a t i o n a r y f a c t o r s which were a d v e r s e l y a f f e c t i n g t h e economy o f
t h e country. T h i s caused a h i g h degree o f i l l i q u i d i t y as working c a p i t a l had
t o b e used f o r t h e c o n s t r u c t i o n o f t h e Pinami complex.
The company, however, is i n a c c e p t a b l e f i n a n c i a l c o n d i t i o n a n d t h e r e

a r e s t r o n g p o s s i b i l i t i e s o f i n c r e a s i n g i t s s a l e s n a t i o n a l l y as w e l l as i n t h e
e x p o r t market.
The preliminary financial statements of FNCD as o f September 30, 1982

can be found i n Appendixes V and V I . The r e s u l t s as o f December 31, 1982 a r e
still not audited s o they have not been takan i n t o oonslderation i n t h i a
Study.
3.1.9. A d m i n i s t r a t i v e Aspects
A s i l l u s t r a t e d by t h e O r g a n i z a t i o n a l C h a r t shown i n Table 11, FNCD

h a s a t t h e i r d i s p o s a l an a d e q u a t e a d m i n i s t r a t i v e s t r u c t u r e which a l l o w s it t o
e f f i c i e n t l y c o n f r o n t t h e marketing, f i n a n c i a l , p r o d u c t i v e , p l a n n i n g and
administrative functions of t h e business.
Major p o l i c y d e c i s i o n s a r e t a k e n by t h e s h a r e h o l d e r s i n E x t r a o r d i n a r y
Meetings. The Ordinary S h a r e h o l d e r s Meetings a r e c a l l e d a n n u a l l y on a r e g u l a r
b a s i s t o d e a l with items r e l a t i n g t o t h e approval of t h e f i n a n c i a l statements,
t h e d i s t r i b u t i o n o f p r o f i t s , t h e d e s i g n a t i o n o f committees and o t h e r m a t t e r s
r e l a t i n g t o t h e normal a c t i v i t y of t h e company.
The B e c u t i v e Committee i s charged w i t h a n a l y z i n g a d m i n i s t r a t i v e
m a t t e r s and it meets once a month o r when n e c e s s a r y . The a t t r i b u t i o n s o f t h i s
Committee a r e s p e c i f i e d by t h e by-laws o f t h e company.
The General Manager is r e s p o n s i b l e f o r t h e e x e c u t i v e d e c i s i d n s o f t h e

company and h e c o n t r o l s and a d m i n i s t e r s its o p e r a t i o n s through ea'ch one o f h i s
Area Managers.
3.2. The Role o f t h e F a b r i c a Nacional de Conservas Dillmann
The r o l e which FNCD p l a y s i n t h e P r o j e c t o f Breeding and F a t t e n i n g o f

Hogs i n t h e Chapare w i l l be fundamentally commercial i n n a t u r e . It w i l l have
t h e f u n c t i o n o f buying t h e hog p r o d u c t i o n o f Agmpecuaria Copacabana and o f
t h e small f a r m e r s of t h e Chapare, paying t h e market p r i c e i n c a s h and a t t h e
moment o f d e l i v e r y o f t h e animals. T h i s way a c o n s t a n t dynamic p r o c e s s w i l l
be o b t a i n e d whereby t h e s u p p l i e r s o f hogs can count on a permanent l i q u i d i t y . .
3.2,1, Market
The market f o r FNCDts pork p r o d u c t s ( c o l d meats, s a u s a g e s and canned

meats) is d i v i d e d i n t o t h e n a t i o n a l market and t h e f o r e i g n ( e x p o r t ) market,
A c t u a l l y , F'NCD h a s ample n a t i o n a l coverage. T h e i r s a l e s volume, however, is
c o n c e n t r a t e d i n t h e c i t y o f Cochabamba, O u t s i d e o f t h e c o u n t r y FNCD h a s very
good p o s s i b i l i t i e s f o r e x p o r t i n g meat, f r e s h and canned t o Peru as well a s to'
t h e n o r t h o f C h i l e . I n Peru a d i s t r i b u t o r h a s a l r e a d y been c o n t r a c t e d who
w i l l begin t h i s y e a r t o a c t i v e l y s e l l F N C D ' s p r o d u c t s . With r e s p e c t t o t h e
n a t i o n a l market, t h e u n s a t i s f i e d demand f o r hogs i n t h e C i t y o f Cochabamba
i s e s t i m a t e d as s u f f i c i e n t t o a b s o r b t h e supply g e n e r a t e d by t h e P r o j e c t
( a c c o r d i n g t o a Marketing Study p r e p a r e d by Coopers & Lybrand e s p e c i a l l y
f o r FNCD. See Appendix XII),
I n any c a s e , t h e P r o j e c t contemplates a s t r o n g promotional and

p u b l i c i t y campaign. A s a r e s u l t FNCD w i l l i n v e s t 12% o f t h e v a l u e o f t h e i r
s a l e s i n promotion and p u b l i c i t y a n d 5% o f t h e s a l e s v a l u e i n a d d i t i o n a l
a d m i n i s t r a t i v e expenses. ( s e e Chapter 3.3.2. Working C a p i t a l ~ e q u i r e m e n t s )
3.2.2. Means o f Supply
Agropecuaria Copacabana w i l l d e l i v e r t h e hogs t o FNCD i n an amount of

20,000 p e r y e a r under a w r i t t e n c o n t r a c t g u a r a n t e e i n g t h i s supply. T h i s
q u a n t i t y o f hogs w i l l i n c l u d e t h e 14,000 hogs o f AC and t h e 6,000 hogs o f t h e
SF. The hogs w i l l be d e l i v e r e d by AC t o t h e p l a n t i n Pinami where t h e y w i l l
be weighed and payment made,
3.2.3. R e l a t i o n s h i p w i t h t h e Smal Farmer
I n t h e p r e s e n t Study t h e r e is no d i r e c t r e l a t i o n s h i p between t h e SF
and FNCD as t h e SF a t first w i l l ileal p r i n c i p a l l y w i t h AC and i n t h e second
s t a g e w i t h t h e development i n s t l t u t i o n .
3.3. Financial Analysis
FNCD w i l l q o t r e q u i r e any investment c a p i t a l because it a l r e a d y h a s

ASESORAMIENTO EMPRESAHIAL S.A.
t h e ' n e c e s s a r y i n f r a s t r u c t u r e t o carry o u t its f u n c t i o n i n t h e P r o j e c t .
3.3.2. Working C a p i t a l Requirements
The monthly requirements of working c a p i t a l f o r FNCD a r e shown i n

Tables 12 and 14. Below is t h e y e a r l y summary:
Working C a p i t a l Requirements
($b) ------
1984 ------
1985
a ) Purchases
Hogs (animals) 13,000 20,000
Value (average weight 90 kg
p e r hog a t $b 260/kg) 304,200 468,000
C a t t l e and o t h e r s 339,240 521,880
T o t a l Purchases 643,440 989,880
b) Conversion Cost
(26 days / month x 1 2 months) 43,032 66,203
c) Administrative Cost
5% of s a l e s
d ) Marketing Cost
12% of sales
e ) T o t a l Working C a p i t a l 860,341 1,334,441
O f t h e t o t a l working c a p i t a l needs, f i n a n c i n g is only r e q u i r e d f o r

$b 171,613,000. -.
( s e e Chapter 3.3.3. Financing and Table 13. )
3.3.3. Financing
To determine t h e f i n a n c i n g requirements, monthly cash flows have been

prepared f o r t h e first two y e a r s ( s e e Table 14). Financing is only needed t h e
first y e a r according t o t h e following d e t a i l :
a ) Investment C a p i t a l
Not required
b) Working C a p i t a l
See Tables 12 and 13
T o t a l Amount $b 191,536,000. -
Amount t o be Financed $b 171,613,000.-
I n t e r e s t Rate - Banco Central de B o l i v i a 38% p.a.
I n t e r e s t Rate - P a r t i c i p a t i n g F i n a n c i a l
Institution 48% p.a.
Average I n t e r e s t ate 40% p e a .
Tenor - B.C.B. 6 months
Tenor - P.F.I. 6 months
P a r t i c i p a t i o n : B.C.B. 80%
P a r t i c i p a t i o n : P.F.I. 20:g
c ) Investment Program
January 1984
Shareholders contribution
Finahcing
~ e b r u a G1984
Shareholders contribution
Financing
J u l y 1984
Financing
d ) Repayment Schedule
June 1984
Capital
Interest
J u l y 1984
Capital
Interest
December 1984.
Capital
Interest
3.3.4. F i n a n c i a l P r o j e c t i o n s and P r o f i t a b i l i t y R a t i o s
,
The f i n a n c i a l p r o j e c t i o n s have been made o n l y fbr t h e P r o j e c t and
combined t o s e e t h e e f f e c t of t h e same i n t h e o p e r a t i o n s o f FNCD.
a ) Hog P r o j e c t
The p r o j e c t i o n o f t h e income s t a t e m e n t and o f t h e cash f l o u f o r

t h e y e a r s 1984-86 a r e shown i n T a b l e 15,
1 ) Income Statement
The f i n a n c i a l r e s u l t s of t h e P r o j e c t a r e extremely p o s i t i v e f o r
FNCD ( s e e T a b l e 1 5 ) . The first y e a r a l r e a d y shous a p r o f i t o f $b 210 m i l l i o n
b e f o r e t a x e s and o f $b 147 m i l l i o n a f t e r t a x e s i n c r e a s i n g t o $b 221 m i l l i o n
a f t e r t a x e s i n t h e y e a r 1986.
2) Caeh Flow
With r e s p e c t t o t h e c a s h flow t h e r e s u l t p r e s e n t e d f o r t h e first
y e a r is a l i q u i d i t y o f $b 30.8 m i l l i o n which i n c r e a s e s t o $b 230 m i l l i o n i n
t h e y e a r 1986. ( s e e T a b l e 1 5 )
3) P r o f i t a b i l i t y R a t i o s
A s t o be expected., t h e p r o f i t a b i l i t y r a t i o s a r e v e r y f a v o r a b l e .
( s e e Table 1 5 )
The n e t p r e s e n t v a l u e a t 34% is $b 182 m i l l i o n . The owner

c a p i t a l c o n t r i b u t i o n o f $b 19.9 m i l l i o n i s c o n s i d e r e d as an expense and t h e
p r e s e n t v a l u e o f t h e cash f l o w s w i t h o u t t h e c a p i t a l i n c r e a s e as income.
The i n t e r n a l r a t e of r e t u r n o f t h e P r o j e c t is 274%.
The Cost B e n e f i t a t 34% is 10.15 t i m e s . The p r e s e n t v a l u e of t h e

c a s h ' f l o w s without t h e owner c a p i t a l i n c r e a s e is takpn as a b e n e f i t and t h e

owner c a p i t a l i n c r e a s e is t a k e n as a c o s t .
b ) Combined Iiog P r o j e c t p l u s Current O p e r a t i o n s
1) Cash Flow
The combined p r o j e c t e d cash flow is shown i n Table 16. For t h e

p r o j e c t i o n o f t h e c u r r e n t o p e r a t i o n s o f FNCD, t h e p r o j e c t i o n s done by FNCD on
November 30, 1982 were used as t h e base.
The r e s u l t s of t h e combined cash flow a r e r e l a t i v e l y similar t o

t h o s e o b t a i n e d by t h e P r o j e c t a l o n e . T h i s is due t o t h e f a c t t h a t t h e p r o j e c t e d
cash flow by FNCD does n o t show major s h a r e h o l d e r c a p i t a l c o n t r i b u t i o n s n o r
major cash s u r p l u s e s . Consequently, t h e P r o j e c t because o f i t s dimension
r e l i e s p r e p o n d e r a t e l y on r e s u l t s .
The combined r e s u l t is a p o s i t i v e cash f l o w o f $b 44 m i l l i o n

t h e first y e a r which i n c r e a s e s t o $b 252 m i l l i o n i n t h e y e a r 1986.
2) Prof i t a b i l i t y R a t i o s
~ 8 T
ea b l e 16,
The NPV a t 345%is $b 183 m i l l i o n
The I R R is 273%
The Cost B e n e f i t a t 34% is 7.67 times
These r e s u l t s make it n e c e s s a r y t o a n a l y z e more profoundly t h e

l o a n s programed by FNCD f o r t h e y e a r s 1985 and 1986 and o t h e r i t e m s such as
t h e s a l e of a s s e t s , shareholder c a p i t a l contributions e t c .
On t h e o t h e r hand, it s h o u l d be remembered t h a t t h e high r a t e o f

r e t u r n o f t h e combinedProjectisbecause t h e l a r g e investment s a n d c a p i t a l
i n c r e a s e s made by F'NCD up t o 1983 were n o t t a k e n i n t o account.
T h i s a n a l y s i s , however, g o e s beyond t h e o b j e c t i v e s of t h e p r e s e n t
Study. It is enough t o r e p e a t t h a t t h e P r o j e c t w i l l be o f g r e a t b e n e f i t t o
FNCD a8 t h e y w i l l be a b l e t o d u p l i c a t e t h e production o f t h e i r meat p r o c e s s i n g
p l a n t from 3076 t o 6076 of c a p a c i t y without t h e n e c e s s i t y o f any f i x e d investment
and which w i l l be h i g h l y p r o f i t a b l e .
A s e n s i t i v i t y a n a l y s i s h a s been made w i t h r e s p e c t t o t h e s a l e p r i c e
o f t h e c o l d meats and sausages and w i t h r e s p e c t t o t h e p r o d u c t i o n and o p e r a t i n g
c o s t s . T h i s a n a l y s i s was done i':ily with t h e Hog P r o j e c t and n o t with t h e
Combined P r o j e c t .
3.4.1. Price Increase of lo$
The s a l e s p r i c e s were i n c r e a s e d by 1% ( a l l o f t h e o t h e r f a c t o r s
remain c o n s t a n t ) from $b 709.- p e r k i l o o f c o l d meat and s a u s a g e s t o $b 780.
The r e s u l t o f t h e i n c r e a s e is summarized as f o l l o w s r
-.
BES 7 AVAILABLE COPY

ASESORA.MIENT0 EMPRESAKIAL S.A.
10$ INCREASE I N PRICES INCREASES THE PROFITABILITY OF THE PROJECT

BY 255 PERCENTAGE POINTS FROM 273% TO 528% ( SE$ I R R TABLES 15 AND
28)
3.4.2. Cost I n c r e a s e of 1Qg
A l l c o s t s , investments, o p e r a t i o n s , c a p i t a l i n c r e a s e s e t c . were
i n c r e a s e d by 10$ ( t h e o r i g i n a l s a l e s p r i c e remains c o n s t a n t ) , The r e s u l t of '.
t h i s increment is summarized as f o l l o w s :
10%INCREASE I N ALL COSTS DIMINISHES THE PROFITABILITY OF THE

PROJECT BY 233 PERCENTAGE POINTS FROM 273% TO 4% (SEE I R R TABLES
15 AND 29)
3.4.3. Conclusion
It may be concluded t h a t t h e P r o j e c t f o r FNCD is very s e n s i t i v e t o

changes i n p r i c e and c o s t s and t h a t t h e s e n s i t i v i t y is g r e a t e r i n t h e p r i c e s
t h a n i n t h e costs. An i n c r e a s e of 10% i n both would b e n e f i t FNCD by
approximately 22 percentage p o i n t s . ( s e e a l s o Chapter 2.9.3. conclusion)
4 ANALYSIS OF HOG FATTENING BY THE SMALL FARMER
4.1. P r e s e n t Condition o f Swine R a i s i n g . l n t h e Chapare
I n s p i t e o f t h e f a c t t h a t a number of socio-economic s t u d i e s have been

made i n t h e Chapare, n o t enough emphasis h a s been p l a c e d on t h e r a i s i n g and
f a t t e n i n g o f swine.
According t o s t a t i s t i c s provided by PRODES (1978) 4% o f t h e f a r m e r s

a r e d i r e c t l y employed i n t h e r a i s i n g o f hogs b u t t h e y do s o under r u s t i c
c o n d i t i o n s i n terms of q u a l i t y o f f e e d and p a s t u r e .
According t o t h e same s o u r c e , t h e r e e x i s t e d i n 1981 a swine p o p u l a t i o n

of 757 as shown below:
TABLE 17. S!!JINE POPULATION OF THE CHAPARE
----------
Settlement ------
Number
P u e r t o Alegre 108
Mariposas 55
Chimore 75
Valle I v i r e a 296
Cooperatives 10
Coloma Independencia 115
Valle d e l S a j t a 98
Total 757
4.2. Survey Taken
A survey was made o f 56 f a r m e r s who raise hogs t o d i s c o v e r c e r t a i n

t e c h n i c a l i n d i c a t o r s of t h e p r o f i t a b i l i t y o f hogs i n t h e Chapare and t o g e t
t o know t h e o p i n i o n o f t h e s e f a r m e r s r e g a r d i n g t h e P r o j e c t . ( s e e Survey Form
i n Appendix 11)
The survey was t a k e n i n zones 7,8 and 9 ( t h e d i v i s i o n s a r e t h o s e of

Prodes - See Appendixes 111 and IV: Map and Work Areas o f t h e chapare) which
include t h e following regions:
Zone 7: I b u e l o , I,auca, Ens

Zone '8: Chimore, Mariposas, Melga
Zone 9: I v i r z a , Ivirgarzama, h e r t o V i l l a r r o e l
O f t h e s e a r e a s , t h e most p o p u l a t e d is zone 7 where spontaneous

c o l o n i z a t i o n took p l a c e and t h e s e t t l e m e n t s a r e 50 y e a r s o l d o r more. These
s e t t l e m e n t s a r e grouped t o g e t h e r i n 24 unions and 3 f e d e r a t i o n s . On t h e o t h e r
hand, zone 8 h a s c o n t r o l l e d c o i o n i z a t i o n and t h e s e t t l e m e n t s a r e 15 t o 20
y e a r s o l d . These f a r m e r s have formed 33 unions and 4 f e d e r a t i o n s ,
These r e g i o n s were chosen f o r t h e Hog P r o j e c t f o r t h e f o l l o w i n g

reasons:
a) There is n o t as much p r e c i p i t a t i o n i n t h i s r e g i o n as i n o t h e r
a r e a s a c c o r d i n g t o t h e " ~ o s i "r e p o r t .
b ) Agropecuaria Copacabana is a l r e a d y e s t a b l i s h e d i n zone 7.

c) C u r r e n t l y , eone 8 is t h e a r e a w i t h t h e most a c t i v i t y i n l i v e s t o c k .
T h i s a r e a h a s t h e H e i f e r P r o j e c t and t h e c a t t l e m a n ' s A s s o c i a t i o n o f Chimore,
d ) Zone 9 is a n a t u r a l e x t e n s i o n of zone 8. It h a s good d r a i n a g e a r e a s

with easy access t o Puerto V i l l a r r o e l .
e ) The t h r e e zones 7,8, and 9 have a highway which r u n s f r o m west t o .

e a s t , t h a t is, f r o m Villa T u n a r i t o P u e r t o V i l l a r r o e l .
The survey covered t h e f o l l o w i n g sub-zones and communities i n i t s

simpling :
Sub-zone A: P a r a i s o , Mariposas, T r a i l s I, 11, I11 and I V

Sub-zone B: Chimore, V i c t o r i a , S a n t a Rosa and T r a i l s A , B , C , D , E
and F
Sub-zone C: Loma m e , T a c u a r a l and Trails 2 and 3
Sub-zone D: Villa T u n a r i , Agrigento, Dorado, I b u e l o , Rio Vinchuta,
Rio Con1 and T r o p i c a l
The r e s u l t s o f t h e survey a r e t h e f o l l o w i n g :
4.2.1. JandhoTding
98% o f t h e farmers p o s s e s s one p i e c e o f l a n d o r a l o t . The m a j o r i t y o f

t h e p r o p e r t i e s were g i v e n t o them by t h e C o l o n i z a t i o n I n s t i t u t e a c c o r d i n g t o
t h e f o l l o w i n g d i s t r i b u t i o n : 3',Z o f t h e farms have more than 20 h e c t a r e s , 86"4
from 1 0 t o 20 h e c t a r e s and 11" have l e s s t h a n 1 0 h e c t a r e s .
The m a j o r i t y o f t h e farms i n q u e s t i o n a r e managed by t h e i r owners,

t h a t i s , no a d d i t i o n a l l a b o r i s employed.
4.2.2. T e c h n i c a l Aspects
A t t h e 56 farms surveyed t h e r e were 241 hogs r e g i s t e r e d which signifies

a n a v e r a g e o f 4.3 hogs p e r surveyed farm.
The survey determined t h a t 62%o f t h e farmers r a i s e hogs t o be

f a t t e n e d , 2% f o r b r e e d i n g and 918 d i d n o t p r o v i d e t h e n e c e s s a r y i n f o r m a t i o n .
The animals d e s t i n e d f o r f a t t e n i n g have d i f f e r e n t c h a r a c t e r i s t i c 6 as

can be s e e n below:
I n i t i a l Weight -
% -
Age % F a t t e n i n g Time -
$
TO 6 kg 3 mos.
11 21 6 months 16
6 t o 15 kg 7 3-6 nos. 9 1 2 months 32
More t h a n 15 kg . 5 6-t mos
' . 20 1 2 months 2
( n o t weighed) 77 (unknown) 50 (unknown) 50
Only 29 $ o f t h e f a r m e r s know t h e s i z e o f t h e l i t t e r s , t h e r e f o r e it
can b e e s t a b l i s h e d t h a t t h e a v e r a g e l i t t e r r a n g e s around 7 p i g l e t s .
Likewise, from t h e small p e r c e n t a g e ' o f answers, it can be determined

t h a t o n l y 45% l i v e t o weaning.
With r e s p e c t t o animal s a n i t a t i o n t h e f o l l o w i n g can b e concluded from

t h e r e s u l t s o f t h e sampling and from v i s u a l o b s e r v a t i o n s :
a ) The small f a r m e r p l a c e s l i t t l e importance on t h e h e a l t h o f h i s hogs.

More t h a n 6% o f t h o s e c o n s u l t e d a r e i g n o r a n t o f t h e d i s e a s e s t h a t can a f f e c t
t h e i r animals.
b ) A small p e r c e n t a g e o f t h e SF s p o r a d i c a l l y v a c c i n a t e a g a i n s t swine
f e v e r , f o o t and mouth d i s e a s e &d r a b i e s . There a r e no f a c t s on t h e
predominant d i s e a s e s .
c ) An e x c e s s o f i n t e r n a l p a r a s i t e s i n c l u d i n g t r i g a n o s i s was a l s o n o t e d
i n t h e o b s e r v a t i o n s . The SF do n o t t r e a t t h e a n i m a l s t o r i d them o f t h e s e
parasites.
With r e s p e c t t o t h e t y p e and q u a l i t y o f t h e hogs o f t h e SF, t h e

survey showed t h a t i n g e n e r a l t h e g e n e t i c and p h y s i c a l q u a l i t y o f t h e hogs of
t h e a r e a is poor. The e x c e p t i o n s a r e Agropecuaria Copacabana and t h e a r e a
where t h e H e i f e r P r o j e c t (chimore) h a s been o p e r a t i n g w i t h t h e i n t r o d u c t i o n
o f b e t t e r hogs, The hog most a d a p t a b l e t o t h e c o n d i t i o n s and l a c k o f
management o f t h e Chapare is a p p a r e n t l y t h e n a t i v e hog. T h i s hog is used t o
p r e p a r e '\chichamon" b u t it is n o t good enough f o r t h e p r o d u c t i o n o f c o l d
meats and s a u s a g e s because o f t h e e x c e s s i v e q u a n t i t y o f f a t ,
4.2.3. N u t r i t i o n a l Aspects
The census showed t h a t yucca is predominant as t h e b a s i c f e e d , To

t h e yucca o t h e r c r o p s grown on t h e farm a r e added. To a s m a l l e r d e g r e e , p a s t u r e ,
corn and waste p r o d u c t s a r e used.
4.2.4. Commercialization and Markets
The m a j o r i t y of t h e SF a c q u i r e t h e i r a n i m a l s f r o m neighboring f a r m s ,
28% purchase them i n t h e c i t y and t h e remainder f i n d them i n o t h e r a r e a s such
as P o t o s i and Sucre.
A s is l o g i c a l , a l m o s t a l l o f t h e farms s e l l t h e i r f a t t e n e d hogs t o
t h e i r neighbors. From t h i s f a c t it is obvious t h a t t h e hog production o f t h e
SF h a r d l y r e a c h e s Cochabamba.
h . o m t h e p r i c e s t h a t t h e SF s a i d t h e y r e c e i v e d f o r t h e s a l e o f t h e i r
-
hogs, t h e ma j o r i t y were between $b 150. and $b 170. - p e r k i l o l i v e . The
e x c e p t i o n s r e g i s t e r e d i n t h i s c a t e g o r y r e f e r t o a r e a s o f a c t i v e commercial
a c t i v i t y i n i l l i c i t coca where as much as $b 600.- p e r k i l o l i v e h a s been
r e c e i v e d ( ~ a ,y 1983).
4.2.5. R e c e p t i v i t y towards t h e P r o j e c t
82% o f t h e f a r m e r s surveyed showed c o n s i d e r a b l e p r e d i s p o s i t i o n t o

j o i n t h e P r o j e c t i n t e r m s o f fattening and marketing hogs. The r e s t p o i n t e d
o u t l i m i t a t i o n s of space o r o t h e r d e t e r e n t s .
4.3. Design o f t h e Module
The beginning o f t h e program h a s been d e s i g n e d f o r t h e e s t a b l i s h m e n t

o f 1 0 modules f o r which 1 0 f a r m e r s s h o u l d b e chosen who have e x p r e s s e d i n t e r e s t
a n d who a r e l o c a t e d i n t h e a r e a o f Chimore.
The s i z e o f each module w i l l b e o f 1 0 p i g s a p i e c e . Fach pig w i l l b e

56 days o l d and weigh approximately 15 k i l o s .
The b a s i c i n f r a s t r u c t u r e w i l l be b u i l t by t h e small f a r m e r u s i n g
m a t e r i a l s o f t h e a r e a . For demonstration purposes, Agropecuaria Copacabana
w i l l c o n s t r u c t a module where a t r a i n i n g c o u r s e f o r i n t e r e s t e d f a r m e r s w i l l
be g i v e n . T h i s demonstration w i l l b e g i v e n by D r . Magrobejo ( v e t e r i n a r i a n )
and by M r . Marcelo Tonaggoli ( A C ) both of whom a r e known and r e s p e c t e d i n t h e ,
area.
I n t h e modular program, it is t a k e n f o r g r a n t e d t h a t t h e f a r m e r w i l l
be a b l e t o a c q u i r e t h e p i g s w i t h h i s own money and a t market p r i c e s .
A s a fundamental requirement, t h e f a r m e r who p a r t i c i p a t e s i n t h e

module program must p o s s e s s 1/8 of an h e c t a r e sowed w i t h yucca and kudzu i n
a d d i t i o n t o having a minimum i n f r a s t r u c t u r e .
In t h e t h i r d month a l l o f t h e hogs w i l l be d e p a r a s i t e d and v a c c i n a t e d

against f o o t and mouth d i s e a s e . The c o s t s o f t h i s t r e a t m e n t w i l l be absorbed
by t h e farmer. The program w i l l last a t o t a l of 4 months.
4.3.1. P i g Production
Agropecuaria Copacabana w i l l p r o v i d e 3,000 p i g s t h e f i r a t y e a r f o r t h e

SF and s t a r t i n g f r o m t h e second y e a r 6 , 0 0 0 p i g s . I n a l a t e r s t a g e o f t h e
P r o j e c t , it i s f o r s e e n t h a t t h e SF should be p r o v i d e d w i t h up t o 15,000 hogs
p e r y e a r f r o m d i f f e r e n t s o u r c e s . ( s e e Chapter 4.3.11. P r o j e c t i o n o f t h e ~ o d u l e s )
The p i g s d e l i v e r e d t o t h e f a r m e r s w i l l weigh 15 k i l o s and be 56 days

o l d . They w i l l be d e l i v e r e d d e t o o t h e d , v a c c i n a t e d , dosed w i t h i r o n and c a s t r a t e d .
4.3.2. Production o f Feed C o n c e n t r a t e s
The formula f o r t h e n u t r i t i o n a l and v i t a m i n c o n t e n t of t h e b a l a n c e d

f e e d t o be used by t h e SF h a s been c a r e f u l l y balanced t o p r o v i d e a l l o f t h e
basic r e q u i r e m e n t s a t t h e least p o s s i b l e c o s t . T h i s formula was developed by
computer a n d r e f l e c t s t h e minimum c o s t i n accordance w i t h c u r r e n t p r i c e s f o r
t h e f o o d s t u f f s . These r a t i o n s w i l l be d e l i v e r e d t o t h e SF a t t h e i r own farms
every 15 daye. (see Chapter 2.2.2. )
4.3.3. Technical Assistance
The t e c h n i c a l a s s i s t a n c e c a l l e d f o r i n t h e P r o j e c t s h o u l d be s k i l l e d
and r e a d i l y a v a i l a b l e . It s h o u l d b e provided by a s p e c i a l i z e d i n s t i t u t i o n such
as t h e Institute B o l i v i a n o de Tecnologia Agropecuaria.
I n t h e experimental s t a g e d u r i n g t h e first y e a r , Agropecuaria Copacaban'a

w i l l b e t h e one i n charge of a s s i s t i n g t h e f a r m e r i n t h e f a t t e n i n g p r o c e s s .
The s u c c e s s o f t h e P r o j e c t depends t o a l a r g e e x t e n t on t h e t e c h n i c a l
a s s i s t a n c e g i v e n t o t h e SF. For t h i s r e a s o n , it w i l l be g i v e n t h e n e c e s s a r y
importance and r e s o u r c e s .
4.3.4. S i z e and Location of t h e Module
The s i z e of t h e module h a s been f i x e d a t 1 0 p i g s f o r a t l e a s t t h e

e x p e r i m e n t a l s t a g e . These 1 0 p i g s need a covered s h e l t e r o f 10m2. It is

assumed t h a t t h i s q u a n t i t y o f a n i m a l s s h o u l d be r e l a t i v e l y e a s y t o maintain
and t o f e e d .
The zone o f t h e Chimore h a s t h e f o l l o w i n g advantageous c o n d i t i o n s

f o r t h e e x e c u t i o n o f t h e P r o j e c t a t t h e l e v e l o f t h e SF:
a ) There a r e a g r e a t number o f f a r m e r s i n o l d e r s e t t l e m e n t s who

t h e r e f o r e a r e e s t a b l i s h e d i n t h e area.
b ) The c o o p e r a t i v e s o f Che a r e a have been s u c c e s s f u l i n t h e i r work

and o r g a n i z a t i o n .
c ) The r o a d i n f r a s t r u c t u r e is i d e a l as t h e r e is a n a s p h a l t e d highway,
lateral r o a d s and a v a i l a b l e communication by t h e t r a i l s .
d ) Hog r a i s i n g i s a t r a d i t i o n a l a c t i v i t y o f t h e a r e a .
e ) Its proximity t o Agropecuaria Copacabana a n d IIRTA a l l o w s f o r t h e

p r o v i s i o n o f a l l needed s u p p l i e s and f o r adequate t e c h n i c a l a s s i s t a n c e .
4.3.5. Minimum r e q u i r e d I n f r a s t r u c t u r e
The minimum r e q u i r e d i n f r a s t r u c t u r e c o n s i s t s o f a housing system. A l l

p a s t u r e l a n d should b e , e l i m i n a t e d because t h e humid t r o p i c a l c o n d i t i o n s
s i g n i f y a r i s k in t h e w e l l being o f t h e hog as d i s e a s e , weight l o s s and low
productivity r e s u l t .
The f a t t e n i n g s h e l t e r as mentioned p r e v i o u s l y w i l l have a s u r f a c e o f

10m2 (lm2 p e r hog) w i t h a d i r t f l o o r . T h i s f l o o r w i l l b e i n c l i n e d 34 towards
t h e s o u t h . The c o n s t r u c t i o n w i l l b e r u s t i c and can be b u i l t by t h e same SF
using only t h e materials of t h e area.
The f e e d e r s and w a t e r t r o u g h s a t t h e n o r t h end o f t h e hog house w i l l

be b u i l t o u t o f wood as s e e n i n Design 1.
For p r o t e c t i o n t h e hog h o u s e w i l l b e surmunded by h a l f w a l l s , one

meter high. P i l l a r s o f Almendrillo o r C o l o r a d . i l l o w i l l b e b u i l t on t o p o f t h e
w a l l e . The s i t e o f t h e s h e l t e r ehould be on h i g h ground t o p r o t e c t t h e hoge
f r o m t h e r a i n and p o s s i b l e f l o o d i n g which o c c u r s i n t h e Chapare.
The walls and t h e roof s u p p o r t system c o u l d b e made from whatever t r e e

grows i n t h e a r e a such as t h e l a u r e l .
4.3.6. Proposed Management System
The small f a r m e r i n a d d i t i o n t o r e c e i v i n g t h e 1 0 p i g s t o f a t t e n , a l s o
r e c e i v e s bimonthly t h e r e q u i r e d amount o f f e e d c o n c e n t r a t e s a c c o r d i n g t o t h e
growth p a t t e r n o f t h e hogs. ( s e e T a b l e 24. Schedule o f ~ c t i v i t i e s )
A s a d a i l y r o u t i n e t h e f a n n e r s h o u l d c l e a n t h e f l o o r o f t h e hog house
and then w a t e r them down b u t b e i n g c a r e f u l t h a t t h e water does n o t accumulate
near the shelter.
A f t e r t h e f l o o r is c l e a n e d t h e SF s h o u l d f e e d t h e hogs t h e yucca,
kudzu o r bananas and t h e balanced f e e d t w i c e a day.
The p r o v i s i o n o f w a t e r s h o u l d b e preceeded by a thorough c l e a n i n g o f

t h e w a t e r t r o u g h . Water s h o u l d n e v e r b e l a c k i n g i n t h e l i f e of t h e hog.
The f a t t e n i n g p e r i o d w i l l b e 4 months u n t i l r e a c h i n g approximately 80

k i l o s i n weight. A t t h a t a g e t h e hogs w i l l be picked up t o b e t r a n s f e r r e d t o
AT where t h e y w i l l be weighed and t h e o p e r a t i o n t e r m i n a t e d .
The f a t t e n i n g p e r i o d o f 4 months was chosen a f t e r a l o n g d i s c u s s i o n

between t h e t e c h n i c i a n s o f AC and AESA f o r t h e f o l l o w i n g r e a s o n s :
a ) If t h e SF is r e s p o n s i b l e and f o l l o w s t h e t e c h n i c a l i n s t r u c t i o n s
f a i t h f u l l y , h i s hogs may r e a c h 8 0 t o 100 k i l o s , l i k e t h e AC hogs.
b ) If t h e SF is u n r e l i a b l e and squanders t h e balanced f e e d by g i v i n g

it t o t h e chickens f o r example, h i s hogs w i l l n o t r e a c h 80 k i l o s i n t h e f o u r
o r f i v e months. An e f f o r t i s made t o s e l e c t t h o s e SF who r e a l l y have a n i n t e r e s t
in c a r r y i n g o u t t h e P r o j e c t c o r r e c t l y as far as p o s s i b l e .
c ) It is b e t t e r t o have a f i x e d d a t e f o r t h e p i c k up o f t h e hogs from

a l l of t h e SF p a r t i c i p a n t s . To s e a r c h f o r hogs i n d i v i d u a l l y who have d i f f e r e n t
w e i g h t s c o s t s money, time and c r e a t e s g r e a t e r d i f f i c u l t i e s i n t h e running o f
the Project.
d ) A f t e r a hog weighs 80 k i l o s t h e e f f i c i e n c y o f t h e f a t t e n i n g p r o c e s s
d i m i n i s h e s and each k i l o o f a d d i t i o n a l meat produced c o s t s more. U n t i l 8 0
k i l o s t h e conversion r a t e from f e e d t o meat is approximately 4 t o 1; p a s s i n g
t h e 8 0 k i l o s t h i s conversion r a t e d e c r e a s e s t o 5 t o 1 a f t e r 100 k i l o s .
e ) During t h e f o u r months o f f a t t e n i n g , t h e v e t e r i n a r i a n w i l l v i s i t
t h e SF every 15 days t o c o n t r o l t h e s a n i t a r y c o n d i t i o n o f t h e hogs and t h e
management o f t h e same. He w i l l a l s o d i s t r i b u t e t h e f e e d r a t i o n f o r t h e n e x t
15 days.
N a t u r a l l y when t h e r e s u l t s o f t h e e x p e r i m e n t a l s t a g e a r e i n , a d j u s t m e n t s
i n t h e f a t t e n i n g p&cess, i n t h e f e e d e t c . can be a n a l y z e d .
4.3.7.. Feed System,

The f a c t o r t h a t w i l l determine t h e s u c c e s s o r f a i l u r e o f t h e f a t t e n i n g
program by t h e SF, i n a d d i t i o n t o t h e t e c h n i c a l a s s i s t a n c e , is t h e f e e d . The
a n i m a l s should b e p r o p e r l y f e d s o t h a t optimum r e s u l t s i n terms o f meat may b e
a t t a i n e d . If t h e hogs r e c e i v e i n t h e i r r a t i o n s a g r e a t e r q u a n t i t y o f energy
t h a n p r o t e i n , t h e y w i l l produce a l o t o f s o f t f a t and w i l l a l s o t a k e more t i m e
i n f a t t e n i n g . If t h e hogs r e c e i v e more p r o t e i n t h a n e n e r g y , t h e c o s t o f t h e
f e e d w i l l go up as each gram o f p r o t e i n c o s t s much more t h a n a kilogram o f
energy.
I n t h e Chapare t h e l i m i t i n g f o o d f a c t o r is t h e s h o r t a g e of p r o t e i n as
t h e r e a r e few c r o p s grown i n t h e a r e a which a r e r i c h i n p r o t e i n such as c o r n ,
soybeans, sorghum e t c . For t h i s r e a s o n , t o p r o p e r l y , f e e d t h e hogs p r o t e i n r i c h
balanced f e e d s h o u l d be u s e d and complemented w i t h f e e d r i c h i n energy such as
yucca, banana a n d kudzu which a r e produced l o c a l l y .
TABLE 18 BALANCED FEED REQUIRENENTS PER HOG

F i r s t Month 1.00 kg/day per hog x 30 days = 30 kg
Second Month 1.20 kg/day per hog x 30 days = 36 kg
Third Month 1.30 kg/day per hog x 30 days = ,39 kg
Fourth Month 1.40 kg/day per hog x 30 days =, 42 kg
Total 120 days 147 kg
The t o t a l f e e d requirements can be seen i n t h e following t a b l e t
TABLE 19 TOTAL FEED REQUIREmNTS PER HOG

K~/MY Balanced Kudzu Banana Total
------ --------
Feed ----- ------
Yucca* -----
F i r s t Month 1.00 0.50 0.30 1.80
second Month 1.20 1.00 0.80 3.00
Third Month 1.30 1.50 1.30 4.10
Fourth Month -
1.40 -
2.00 -
1.80 -
5.20
T o t a l 4 mos. kg 147.00 150.00 126.00 423.00
+The u s e of any of t h e s e crops f u l f i l l s t h e f e e d requirement. B a s i c a l l y

its u s e w i l l depend upon market p r i c e s . When t h e Study was prepared, t h e banana
s o l d f o r $b 3.75 per k i l o and t h e yucca f o r $b 26.00 p e r k i l o . Therefore, it
can be assumed t h a t t h e SF w i l l use t h e banana f o r f e e d f o r t h e i r hogs a n d t h e
yucca w i l l be s o l d f o r human consumption. lIowever, many SF a r e used t o g i v i n g
yucca t o t h e i r hogs and it is believed t h a t they w i l l continue t o do s o i n
s p i t e of the price.
4.3.8. Support Organizations
The o r g a n i z a t i o n s which w i l l support t h e P m j e c t w i l l be a l l t h o s e s

which provide te'chnical, f i n a n c i a l and marketing a s s i s t a n c e such as t h e
Institute Boliviano de Tecnologia Agropecuaria, PRODES, Agropecuaria Copacabana,
F a b r i c a Nacional de Conservas Dillmann, Asociacion de Ganaderos d e Chimore etc.
A n i n s t i t u t i o n , however, which can f u l f i l l a l l o f t h e requirements o f t h e
P r o j e c t does n o t e x i s t , For t h i s r e a s o n , as Is mentioned i n t h e I n t r o d u c t i o n ,
a mixed s h a r e h o l d e r i n s t i t u t i o n should be c r e a t e d f o r t h e development of
l i v e s t o c k i n t h e Chapare.
4.3.9. F i n a n c i a l Analysis
The f i n a n c i a l a n a l y s i s o f t h e SF h a s been done by t a k i n g t h r e e d i f f e r e n t

approaches.
The first approach i s . w h a t is b e l i e v e d t o be t h e most a c c u r a t e

r e f l e c t i o n s of t h e condition o f t h e SF in t h e Chapare in r e l a t i o n t o t h e
f a t t e n i n g o f hogs. In t h i s approach t h e SF have t h e money with which t o
purchase t h e p i g s from AC. They a l s o have s u f f i c i e n t l a b o r between t h e farmer
and h i s family t o a v o i d having t o h i r e workers t o c a r e f o r t h e hogs. On t h e
o t h e r hand t h e value t h a t t h e kudzu, banana o r yucca t h a t is used f o r f e e d
f o r t h e hogs could have is n o t taken i n t o account. The r e s u l t o f t h i s approach
is shown i n Table 20. The p r o f i t of t h e SF i n f o u r months is 6%, c e r t a i n l y
an a t t r a c t i v e rate o f r e t u r n .
The second approach is t o e s t i m a t e t h e v a l u e o f l a b o r and o f t h e f e e d
(kudzu, banana *and yucca) which i s given t o t h e hogs i n t h e P r o j e c t . The r e s u l t
of t h i s approach i s d o w n i n T a b l e 21. The p r o f i t a b i l i t y o f t h e SF i n f o u r
months i s 47$, a l s o an a c c e p t a b l e r e t u r n .
The t h i r d approach is t h a t which assumes t h a t t h e SF do n o t have t h e

money a n d t h e r e f o r e need f i n a n c i n g t o purchase t h e p i g s . The r e s u l t o f t h i s
approach i s seen i n Table 22. The p r o f i t a b i l i t y o f t h e SF i n f o u r months i s
p r a c t i c a l l y n i l as t h e SF does n o t c o n t r i b u t e any money.
J
Of t h e s e t h r e e approaches, t h e first i s t h e one used throughout t h i s
Study. The t h r e e a r e p o s i t i v e , however, as can b e e a s i l y seen i n t h e t a b l e s
which f o l l o w c
TABLE 20 INCOME STATEMENT AND RFTURM ON CAPITAL
a ) E s t i m a t e o f O p e r a t i o n a l C o s t s p e r Module
1) Purchase o f p i g s :
10 p i g s x 15 kg/& x $b 260. -/kg x 1.60 $b 62,400.-
2 ) Feed:
Balanced able 2 ) $b 39.62 / kg
Making a n d usage (13%) $b 5.16,
T r a n s p o r t t o t h e Chapare
( ~ b b a - A CAppendix IX) $b 5.22
Total $b 50,00 / kg
147 kg / 4 months x $b 50.00 / kg $b 73,500.-
3) T r a n s p o r t of Feed (AC-SF) r
8 t r i p s (every 15 d a y s ) a t $b 125. -/km x 1 0 km $b 10,000. -
4) T r a n s p o r t o f Animals (AC-SF-AC):
2 t r i p s ( d e l i v e r y and p i c k up) at $b 125. -/km
x 10 km $b 2,500.-
5) Veterinarian Technical Supervision I
S a l a r y $b 50,000. -/month d i v i d e d by 25 days/mo,
= $b 2,000.-/day d i v i d e d by 5 daily v i s i t s =
$b 400, - / v i s i t times 9 visits $b 3,600.-
6) T r a i n i n g course^
AC a d m i n i s t r a t o r and v e t e r i n a r i a n a t $b 2,000. -/
day each = $b 4,000. -/course d i v i d e d by 1 0
modules $b 400. -
7) Vaccines:
Against f o o t and mouth d i s e a s e a n d p a r a s i t e s
$b 170.- x 10 . $b 1,700.-
8) I n t e r e s t Charges t
Working C a p i t a l ( 2 t o 7 ) = $b 91,700.- d i v i d e d
by 2 ( a v e r a g e ) = $b 45,850. x 40$ p .a, -
d i v i d e d by 4 months $b 6,113.-
9) T o t a l Costs: $b 160,213.-
Working C a p i t a l requirement ( l e s s p i g p u r c h a s e s
and i n t e r e s t c h a r g e s ) $b 91,700.-
' b) Estimate of Income

Sale of 10 hogs of 80 kg each a t $b 260,- per
live kilo $b 208,000.-
Less: transportation from t h e Chapare t o
Cochabamba a t $b 745.- p e r hog times 10 hogs $b' 7,450.-
T o t a l Income $b 200,550.-
c ) Net P r o f i t ~ a l c u l a t ' i o n
Total income
Total, expenses
Net P r o f i t
d) Return on Capital Calculation
Capital investment $b 62,400,-
Net P r o f i t $b 40,337.-
P r o f i t a b i l i t y of Investmentr 65% i n f o u r months
TABLE 21 ADJUSTED INCOME STATEMmT AND RETURN ON CAPITAL

*
The information contained i n Table 20 is used a t t h e base f o r t h i s t a b l e .
a) Estimate of Operational Costs per Module
Total Costs $b 160,213. -
Labor t
I n f r a s t r u c t u r e and construction of pens
2 days a t $b 600. -/day $b 1,200.-
Care of t h e hogs:
1 hour d a i l y a t $b 600.-/day of 8 hours times
120 days $b 9,000.-
Total Labor $b 10,200.-
Sub-Product s t
Kudzu 150 kg a t $b 0,50*/kg ( c o s t ) $b 75.-
Banana 126 kg a t $b 3.75**/kg fSb 472. -
547 -
*Cost p r i c e ($b 35,000/hectare t I ~ i d e dby 70 tons/
hectare
**Sale p r i c e
Total Costs
b) Estimate of Income
c ) Calculation of Net P r o f i t
Prof i t a b i l i t y of Investment
($b 62,400.-) i n four months
TABLE 22 INCOME STATENEXT AND RETURN ON CAPITAL WITH ADDITIONAL

FINANC INC
The information contained i n Table 20 is used as t h e base f o r t h i s t a b l e .
a) Estimate of Operating Costs p e r Module

Working C a p i t a l p l u s t h e p i g purchase
$b 91,700.- + $b 62,400.-
I n t e r e s t charges:
$b 1$,000 d i v i d e d by 2 (average) = $b 77,050. -
x 40% p e a . d i v i d e d by 4 months $b 10,273.-
T o t a l Costs $b 164,373.-
b) Estimate of Income $b 200,550.-
c ) C a l c u l a t i o n o f Net P r o f i t $b 36,177.-
d ) Prof i t a b i l i t y o f Investment 1 infinite
4.3.10. Design o f a Marketing System
A t f o u r months t h e f a t t e n e d hogs are picked up by t r u c k by Agropecuaria

Copacabana, weighed and checked o v e r i n f r o n t o f t h e SF. Afterwards they a r e
moved t o AC and placed a t a d i s t a n c e from A c ' s own hogs t o a v o i d p o s s i b l e
contagion. U t e r they a r e c l a s s i f i e d according t o t h e i r appearance and t h e
f a t t e n i n g is terminated and t h e y a r e immediately s e n t t o Cochabamba.
The p r i c e which is given t o t h e farmer f o r h i s animals i s t h e same as

t h e p r e v a i l i n g market p r i c e which w i l l be p a i d i n cash once t h e c o s t s of
t r a n s p o r t a t i o n , v e t e r i n a r i a n a t t e n t i o n , medicines and accrued i n t e r e s t have
been deducted.
It is e s t i m a t e d t h a t t h e hogs w i l l have a minimum weight of 80 k i l o s

i n 120 days by means o f t h e planned f e e d program. However, if t h e SF is
r e s p o n s i b l e and pays a t t e n t i o n t o t h e c a r e o f h i s hogs, t h e same can r e a c h
90 k i l o s i n t h e same f o u r months i n c r e a s i n g i n t h i s way h i s income considerably.
4.3.11. P r o j e c t i o n o f t h e Modules
The f o l l o w i n g p r o j e c t i o n f o r t h e modules h a s been e s t i m a t e d f o r t h e SFt
TABLE 30 PROJECTION OF THE MODULES
Year Semester Stage New Repeated Total Total

---- -------- ----- -------
Modules --------
Modules -----_-
Modules Hogs
-_---
0 first I
second
1 first II
second
2 first
second
3 first*
second
4 first
second
5 first
second
* A t t h e start of t h i s semester it is.assumed t h a t a second center of

hog production w i l l e n t e r i n t o operation.
4.3.12. Total Working Capital Requirements
The t o t a l working c a p i t a l requirement has only been determined f o r t h e

new modules a s it is assumed t h a t t h e o l d and repeating modules no longer need
financing .
TABLE 31 WORKING CAPITAL REXJUIREMENTS
----
Year ------------
New bodules ------ [$b
Total ------
000)
0 30 91,700.- 2,751
1 170 91,700.- 15,589
2 200 91,700.- 18,340
3 200 91,700.- 18,3110
4 200 91,700.- 18,31~0
5 -
200 91,700 18,340
Total 1,000 91,700
Therefore t o implement the Project at t h e l e v e l of t h e SF, $b 91.7

million is needed in a 5 year period, This c a p i t a l w i l l serve t o r a i s e 45,400
hogs and b e n e f i t approximately 1,000 families.
5. CONCLUSION
The p a r t i c i p a t i o n o f t h e t h r e e b a s i c g r o u p s o f t h e P r o j e c t is h i g h l y
p r o f i t a b l e i n t h e program o f r a i s i n g a n d f a t t e n i n g hogs i n t h e Chapare.
Likewise, t h e r e s u l t s o b t a i n e d from t h e e v a l u a t i o n o f t h e , P r o j e c t show.

t h a t e x c e l l e n t c o n d i t i o n s e x i s t t h e r e b y p e r m i t t i n g t h e e x p e c t a t i o n o f good
p o s s i b i l i t i e s f o r s u c c e s s . These c o n d i t i o n s among o t h e r s a r e t h e l a r g e
u n s a t i s f i e d demand f o r hogs i n Cochabamba and t h e p o s i t i v e d i s p o s i t i o n o f t h e
small f a r m e r , t h e owner o f Agropecuaria Copacabana and o f t h e F a b r i c a Nacional
de. Conservas Dillmann towards t h e P r o j e c t .
Likewise, it can be n o t e d t h a t t h e a c t i v i t y o f r a i s i n g a n d f a t t e n i n g
hogs i s p r a c t i c a l l y t r a d i t i o n a l i n t h e r e g i o n o f Chimore where t h e first p a r t
o f t h e program w i l l be c a r r i e d o u t w i t h t h e small farmers. T h i s t r a d i t i o n o f
f a t t e n i n g hogs w i l l s e r v e as a b a s e f o r t h e implementation o f a more t e c h n i c a l
and p r o f i t a b l e program.
The proposed t e c h n i c a l a s s i s t a n c e if c o r r e c t l y a n d t i m e l y a p p l i e d w i l l
g r e a t l y h e l p t h e s u c c e s s o f t h e P r o j e c t . The t e c h n i c a l a s s i s t a n c e a l o n g w i t h
t h e f i n a n c i n g are t h e p r i n c i p a l f a c t o r s o f t h e P r o j e c t . Both f a c t o r s s h o u l d be
h a n d l e d c a r e f u l l y by s p e c i a l i z e d i n s t i t u t i o n s .
The e x p e r i m e n t a l phase o f t h e P r o j e c t which w i l l l a s t a p p r o x i m a t e l y

one y e a r s h o u l d p r o v i d e e f f i c i e n c y , dynamism a n d s u f f i c i e n t e x p e r i e n c e s o t h a t
t h e f a r m e r o f t h e Chimore a n d o t h e r r e g i o n s o f t h e Chapare w i l l be a t t r a c t e d
t o t h e a c t i v i t y o f f a t t e n i n g hogs.
It is hoped t h a t t h e r e a s o n a b l e p r o f i t margin p r o v i d e d by t h e f a t t e n i n g
o f hogs w i l l be s u f f i c i e n t l y a t t r a c t i v e t o t h e small f a r m e r t o p r o v i d e him w i t h
a l i m i t e d a l t e r n a t i v e t o growing coca. That i s why it is extremely i m p o r t a n t
t h a t t h e Program p r o v i d e c o n t i n u i t y a n d s t a b i l i t y i n t h e purchase o f p i g s , i n
t h e t e c h n i c a l a s s i s t a n c e a n d l i k e w i s e i n t h e s a l e o f t h e hogs. T h i s s t a b i l i t y
and f a i r n e s s w i l l c o u n t e r a c t t h e temporary a n d r i s k y n a t u r e which c h a r a c t e r i z e s
t h e growing o f coca.
A s f o r Agropecuaria Copacabana, t h e s i t u a t i o n o f t h i s company is most

f a v o u r a b l e f o r t h e p r o d u c t i o n o f p i g s b o t h f o r t h e i r own needs as w e l l as t o
s u p p l y t h e small fazmer.
F o r t h i s r e a s o n t h e r o l e t h a t Agropecuaria Copacabana p l a y s i n t h e
P r o j e c t is o f g r e a t importance e s p e c i a l l y i n t h e b e g i n n i n g when t h e small
f a r m e r f i n d s h i m s e l f i n t h e e x p e r i m e n t a l p e r i o d a n d needs a s s i s t a n c e . The
expansion o f AC s b r e e d i n g c a p a c i t y o f p i g s is an i n t e g r a l and i n d i s p e n s a b l e
part of the Project.
L a s t l y , t h e r o l e w h i c h a F a b r i c a Nacional d e Conservas Dillmann w i l l

p l a y w i l l be t o a b s o r b t h e t o t a l i t y o f t h e hog p r o d u c t i o n o f t h e small f a r m e r s
a n d o f Agropecuaria Copacabana. The p r o d u c t i v e i n f r a s t r u c t u r e o f FNCD j o i n t l y
w i t h its t e c h n i c a l , a d m i n i s t r a t i v e a n d marketing c a p a c i t y w i l l o f f e r t h e
P r o j e c t a g u a r a n t e e d market a n d above a l l c o n t i n u i t y . To a c h i e v e t h i s , a
c o n s i d e r a b l e amount o f working c a p i t a l w i l l b e needed.
I ASESORAMIENTO EMPRESARIAL S.A.
By t h e c o n c l u s i o n s p r e s e n t e d , implementation o f t h e P r o j e c t i s
recommended.
For t h e i n i t i a l phase t h e s e t t i n g up of 1 0 experimental m o d h e s t o

f a t t e n 1 0 p i g s a p i e c e is recommended. In t h e beginning t h e breeding of p i g s
by t h e small f a r m e r is n o t recommended due t o h i s l a c k o f e x p e r i e n c e and
i n f r a s t r u c t u r e . A f a t t e n i n g program. is s i m p l e r t o c a r r y o u t t h a n a hog
b r e e d i n g program.
I n t h e second phase t h e n e c e s s a r y a d j u s t m e n t s should be made and t h e

implementation o f t h e modules should t a k e p l a c e as planned.
L a t e r o n , once t h e P r o j e c t is s u c c e s s f u l , t h e c r e a t i o n o f one o r more

hog breeding c e n t e r s is recommended. They w i l l perform t h e same f u n c t i o n as
Agropecuaria Copacabana. I n t h i s way t h e supply o f p i g s f o r t h e small f a r m e r s
is g u a r a n t e e d and t h e c o n t i n u i t y o f t h e P r o j e c t is a s s u r e d .
V i t h t h i s purpose in mind two a l t e r n a t i v e s a r e proposed:
a ) The Canadian I n s t i t u t e o f Chimore - for t h e following reasons:
1) T t is an a g r i c u l t u r a l s c h o o l and h a s shown i n t e r e s t in t h e
ITTI
ject .
2 ) It h a s a c c e s s t o B o l i v i a n p r o f e s s i o n a l s t o t e a c h a g r i c u l t u r e
and zoology.
3) The s t u d e n t s a r e t h e s o n s and d a u g h t e r s o f t h e SF o f t h e a r e a
and t h e y w i l l be t h e ones c a r i n g f o r t h e hogs.
4) It h a s t h e n e c e s s a r y i n f r a s t r u c t u r e t o s h e l t e r l i v e s t o c k .
5) It h a s a t r a c t o r and a g r i c u l t u r a l machinery with which t o
produce a l a r g e p a r t o f t h e f e e d , such as yucca, c o r n , bananas and kudzu.
6) Chimore is i n t h e c e n t e r o f t h e a r e a o f g r e a t l i v e s t o c k
activity.
b ) Design o f a New P r o j e c t f o r t h e Production o f P i g s
For t h e first a l t e r n a t i v e as w e l l as f o r t h i s one, a s p e c i a l study

t o determine t h e c o s t s , f u n c t i o n s , a d m i n i s t r a t i o n e t c . o f a c e n t e r f o r t h e
b r e e d i n g of hogs whould be prepared.
The f a r m e r s who j o i n t h e P r o j e c t should f u l f i l l t h e i n d i s p e n s a b l e

r e q u i r e m e n t s as i n e x p l a i n e d i n t h e p e r t i n e n t s e c t i o n .
Marketing agreements s h o u l d b e made as t o p r i c e and volume between

t h e small f a r m e r and Agropecuaria Copacabana and between Agropecuaria
Copacabana and t h e F a b r i c a Nacional de Conservas Dillmann as t h i s is what
p r o v i d e s s e c u r i t y and t r u s t w i t h i n t h e P r o j e c t and t o its d i f f e r e n t p a r t i c i p a n t s .
A s w i t h AC it i s recommended t h a t i n t h e f u t u r e a l t e r n a t i v e markets
be found f o r t h e f a t t e n e d hogs. These a l t e r n a t i v e s could be t h e o t h e r
p r o k e s s o r s o f pork l o c a t e d i n Cochabamba such as F y s a l a n d Haas.
With r e s p e c t t o t h e i n s t i t u t i o n which w i l l t a k e o v e r t h e P r o j e c t once

t h e e x p e r i m e n t a l phase is o v e r (one y e a r ) i , e . t h e Fondo d e Desarollo d e
Ganado, it is recommended t h a t a s p e c i a l s t u d y be p r e p a r e d t o determine t h e
s h a r e h o l d i n g , its f u n c t i o n s , i t s a d m i n i s t r a t i o n e t c . T h i s s t u d y s h o u l d be done
and approved d u r i n g t h e experimental p e r i o d s o t h a t it can begin o p e r a t i n g in
t h e second s t a g e o f t h e P r o j e c t .
TABLE 3
AGR~PECUARIA COPACABANA INVESTMENTCAPITAL
($b 000) ------

END OF YEAR 0 ------
YEAR 1 -----
TOTAL
A ) BUILDINGS
1 ) Agropecuaria Copacabana
4 Hog Houses 10000 $b/m2 x 891.00m2/eae 35640 35640
2 Farrowing Houses 10000 $b/m2 x 372.24m2/ea. 7445 7445
4 Gestation Houses 10000 $b/m2 x 565.11m2/ea. 22604 22604
4 Yards - Gestation 5000 $b/m2 x 259.95m2/ea. 5199 5199
In e x i s t a n c e : Warehouses, Lab. , Houses, ~ l e ./sane
c 189409 Own. Cont . 189409
2 ) Pairumani Farm
8 Hog Houses 10000 $b/m2 x ' 810.00m2/ea.
2 Dung Containers 500000 $b/each
2 Warehouses 10000 $b/m2 x 50.00m2/ea.
3 ) Total Buildings 26029 66800 327097
B) MACHINERY AND EQUIPMENT
1 ) Agropecuaria Copacabana
1 Dung t r a i l e r $b 1000000 each
1 Water p r e s s u r e system $b 3300000 each
1 Truck F-350 (2.5 ton) $b 5000000 each
2 Trucks (10 t o n ) $b I5000000 each
3 Radio Transmitters $b 200000 each
1 Truck ( 4 x 4 ) $b 2800000 each
2 Dung Separators $b 2000000 each
1 Tractor and Weeder $b 9000000 each
2 ) Pairumani Farm
1 Truck F-350 (2.5 ton) $b 5000000 each
1 Water pressure system $b 3300000 each
3) T o t a l Flachinery and Equipment 55700 8300 64000
C) SWINE LIVESTOCK
------0
Year Year -----------
------1 Cost $b/ea.
Gilts 200 40000 8000 8000
Quality Males 20 62000 1240 1240
~ilts 730 500 30000 0wn~on.21900 15000 36900
Boars 13 17 46500 Owncon. 605 791 1395
T o t a l Swine Livestock 31745 15791 47 535
D) INSTALLATIONS
------0
Year ------1 Cost
Year ------- ---
AbLea.
Pens 36 27200 OwnCon. 979

Pens 52 30000 1560
Yard Tbors 841 12000 10092
Nipple Valves 2064 5000 10320
Troughs 88 4700 OwnCon. 414
Total I n s t a l l a t i o n s 22386 22386
E) MTAL INVESTMENT 370127 90891 461018

TABLE 4
AGROPECUAR
IA COPACABANA WORKING CAPITAL
13000 AU Year 1 20000 AU Year 2
A ) VARIABLE COSTS Year 1 Days Racion Total Price ~ o s t / a u T o t a l Year 2 Total
1 ) FEED ------
No. ---- I~E/E!- -kg-- $b/& -_$b---- ----- ------ -----
$bOOO1 No. $boo0
Boars* 33 365 912.50 30113 47.94 43745 1444 50 2187
Pregnant Sows* 935 243 486.00 454251 43.27 21029 6 1437 30219
Milking Sows* 935 112 560.00 523417 50.47 28263 26417 1437 40614
SOWS i n heat* 935 10 35.00 32714 47.97 1679 1569 1437 2413
P i g s (13000+15/2$
m o r t a l i t y ) 13975 56 11.20 156520 57.23 641 8958 21622 13853
Growing Hogs* 10050 60 66.00 663300 48.02 3169 31852 14070 44592
Hogs being Fattened10050 60 81.00 814050 47.55 3852 38708 14070 9191
Total 2674364 128603 188076
*Includes mortality r a t e
Year 1 Year 2 ~ o s t / a u Total Total
2) ANIMAL SANITATION ------ ------
No. No. -------
$b -----
$boo0 $boo0
-----
Boars 33 50 goo 30 45
Sows 935 1437 900 841 1293
Pigs 13975 21622 200 2795 4324
Hogs -
10050 -
14070 450 4523 -
6332
Total 24993 37179 8188 11994
3) TRANSPORTATION
Gasoliner Feed kg1197014 1841188 / 10 ton x 163h x $b 25/km-lt 488 750
Pigs 10000 14000 / 105 au x 163km x $b 25/km-lt 388 543
O i l : T r i p s ( ~ i g s + ~ e e215)
d 317 x 163km / 400kn-lt x '$b350/lt-oil 31 45
Truck F,laintenance No. 3 4 x 3% of t h e i r value -
1050 -
1200
Total 1957 2 539
Year 1 Year 2 Monthly No. of Total Total
4 ) BASIC LABOR FORCE ------
No. No.------ ---------
Salary $b --------
salaries -----
$boo0 Bbooo
-----
AC workers 8 8 12400 15 1488 1488
PF workers 8 12400 15 1488
Drivers 3 4 ' 20000 15 900 1200
Helpers 3 4 12000 15 558 744
S o c i a l Benefits -
884 1476
Total 3830 6396
5 ) RENTING OF SILOS
Annual f e e d i n kg 2674364 3909478 x 0.80 $b/kg 2139 3128
6) O T H ~ S
Insurance-feed
Elec.:Gas. It.
128603 188076 $b
Insurance-livestock31745
21900
47535 $b
21900 x $b
I 000 !
000 / 6 ( a v e . ~mos. )x 4/100Q% 86
x % 952
2 5 / l t + 48 It o i l x $b350/lt 564
125
1426
564-
Various $b000/mo) 400 500 x 12 months 4800 6000
7 ) TOTAL VARIABLE COSTS 150167 218822
TABLE 5
AGROPECUARIA COPACABANA WORKING CAPITAL
B ) FIXED COSTS Year 1 Year 2
1 ) ADMINISTRATIVE COSTS .
Year 1
------
No
Year 2
No.
Monthly
------ ---------
Salary $b
No. of
--------
Salaries
Total
~______
$boo0
Total
$boo0
------
General Manager ( p a r t time) 1 1 35000 15 * 525 525
Administrators 1 2 60000 15 900 1800
Veterinarians 1' 2 50000 15 7 50 1'jbo
Swine S p e c i a l i s t ( c o n t r a c t e d ) 1 1 33333 12 400 400
S o c i a l B e n e f i t s 30% 653 -
1148
Total 3227 5372
2) MArnTrnANCE
Buildings & I n s t . ($b000) 282683 349483 x 1.5% p e r y e a r 4240
Machinery & Equip. ($b000) 20700 24000 x 3.0% (no t r u c k s ) 621
Total 4861
3 ) DEPRECIATION
~ u i l d i n g s& I n s t . ($b000) 282683 349683 x 10.00% p e r y e a r 28268
Machinery & Fauip. ($b000) 55700 64000 x 20. OM p e r y e a r 11140
Total
4 ) INSURANCE
Buildings & I n s t . ($b000) 282683 349483 x 0.4% p e r y e a r 1131
Yachinery & Equip. ($b000) 55700 64000 X 2.0% p e r y e a r 1114
Total 2245
5) TOTAL FIXED COSTS (EXCEPTFINANCIAL) 48611
TOTAL VARIABLE AND FIXED COSTS

TABLE 6
AGROPECUAR IA COPACABANA WORKING CAPITAL
C ) FINANCIAL EXPENSE Owner B.C.B. P.F.I. ,Total Total

Financing Year 1 ------------ ------ ------
Contribution ---------
Financing -----
Investment C a p i t a l 222306 118257 29564 147821 , 370127
Working C a p i t a l 15937 114746 28687 143433 159370 without
depreciation
Total 238243 233003 58251 291254 529497
%
: Participation 45 44 11 55 100
$ o f P a r t i c i p a t i o n i n Financing 80 20 100
$ I n t e r e s t Rate 38 48 40
TABLE 7
AGR'OPECUARIA COPACABANA LOAN REPAYMENTSCHEDULE ($B 000)
!ear-!! Year-; !ear-: !ear-2 !ear-! :ear-2 :ear-6 ?cia:

B.C.B. (1nv. c a p . ) % = 38
I ~ a nBalance : Sem. 1 118257 118257 103475 73911 44345 14782
Sem. 2 118257 118257 118257 88693 59128 29564
C a p i t a l Paymentst Sem. 1 14782 14782 14782 14782 ,
Sem. 2 14782 14782 14782 14782

T o t a l C a p i t a l Payments: 14782 29564 29564 29564 14782 118257
I n t e r e s t Payments: Sem. 1
Sem. 2
T o t a l I n t e r e s t Payments
P.F.I. (1nv. Cap.) % = 48

Loan Balancer Sem. 1
Sem. 2
C a p i t a l Payments: Sem. 1
Sem. 2
T o t a l C a p i t a l Payments:
Sem. 2
T o t a l I n t e r e s t Payments:
B.C.B. ( ~ o r k . ~ a p .$ ) = 38
Loan Balance: Sem. 1
Sem. 2
C a p i t a l Payments: Sem. 1
Sem. 2
I n t e r e s t Paymentsr Sem. 1
Sem. 2
T o t a l I n t e r e s t Payments:
P.F.I. (work.cap.) $ = 48
Loan Balance: Sem. 1
Sem. 2
C a p i t a l Payments1 Sem. 1
Sern. 2
Sem. 2
T o t a l I n t e r e s t Payments ,
TABLE 8
AGROPECUARIA COPACABANA
----------------- ------
INCOME STATEMENT ($b 000)
Year0 Year1 Year2 Year3 Year 5 Year 6 Total
SALES
Hogs Weight 95 kg au 10000 14000 14000
Pigs Weight 15 kg au 3000 6000 6000
Hogs Price $b 260/kg 247000 ,95800 345800
pigs &ice $b 6240/au 18720 37440 37440
TOTAL SALES 265720 383240 383240
VARIABLE COSTS 150167 218822 218822
FIXED COSTS 48611 60363 60363
INTEREST EXPENSE (without
accrual) 116501 73472 48042
PROFIT -49559 30583 56013
TABLE
INCOMF:
Sales 265720 383240 383240
Investment Cap. Own
Contribution 222306 15791
Working Cap, Own
Contribut ion 15937 11335
Loan-Invest.Cap, 147821
Loan-Working Cap. 143433
TOTAL INCOME 370127 440880 394575 383240
EXPENSES
Investments 370127 90891
Variable Costs 150167 218822 218822
Fixed Costs (with-
out ~ e p r e c i a t i o n ) 9203 12615 12615
I n t e r e s t Expense 116501 73472 .48042
T ~ a nAmortization 71716 90194 36955
TOTAL EXPENSES 370127 438478 395103 316434.
CASH FLOW 0 2402 -528 66806
ACCUMULATED CASH FLOW 0 2402 1874 68680
..................... ------
PROFITABILITY RATIOS ($b 000) TABLE 10
CASH FLOW without owner
Contribution -29325 -11863 66806 81588
OWNER CONTRIBUI'ION
(new investments)* 22505 31727 11335
PRESENT VALUE OF CASH FLOW WITHOUT OWNER CONTRIBUTION 34% =
PRESENT VALUE OF OWNER CONTRIBUTION 9% =
N E T PRESENT VALUE w
o =
I R R OF CASH FLOW WITHOUT OWNER CONTRIBUTION 41% =
I R R OF OWNER CONTRIBUTION 41% =
NET INTEIiNAL RATE OF RETURN 41% =
COST BENEFIT w
o =
TABLE 12
FNCD - HOG PROJECT

INVESTMENT CAPITAL
Not necessary.
MONTHLY WORKING CAPITAL FOR YEARLY PROCESSING: 13000 HOGS 20000 HOGS
Hogs Processed p e r month:
MONTHLY SALES
Each hog of 90 kg is converted i n t o
117.90 kg of c o l d meats and sausages
a t $b 709/kg
MONTHLY PURCHASES
1.00 Hog of 90 kg purchased a t $b 260/kg
0.29 Beef of 300 kg purchased at $b 160/kg
Other purchases a t $b 12174 p e r hog
TOTAL PURCHASES
MONTHLY CONVERSION COST
ADMINISTRATIVE COST - 5%.of S a l e s
MARKETING
COST - 12% of S a l e s
TABLE 13
F'NcD - HOG PROJEET

FINANCING REQUIREMENTS* YEAR 1984**
Owner Banco Central P ,F, I. TO t a i Total

------------ -------------
Contribution de Bolivia -------- ---------
Financ . -------
WORKING CAPITAL
% Participation 10 72 18 90 100
% of P a r t i c i p a t i o n i n Financing 80 20 100
% I n t e r e s t Rate 38 48 40
*In accordance with Table 14.

** The i n i t i a t i o n of t h e P r o j e c t is planned f o r January, l9&,
-60-
FFED - HOG T9OJECT
------------------------- TABLE
---------14
-------------------------
CASH 7 1 W FOR THE PROCESSING OF 13000 HOGS
................................................... - YEAR 1984 ($B 000)
-,-,--,----,----------,-,,,,----------------- =r====== --------
M
om6 o r n lo MONTH 1 1 ~ N T H12
MONTH 1
----- NONTH2 MONTH 3
----- -----4
IBDNTH MONTH 5
----- ----- -----7 mNT-----
MOHTH H 8
-----9 H ------
WNTH
------ ------ TOTAL
-----
INCOME:
---------
-----
SALES 90557 90557 90557
OWN33 CONTRIBUTION 4528 15395
WANS 57204 57204
TOTAL INCOKE 61732 72599. 90557 90557 90557
EXPENSES
-------
HOC PU3CUS%S 25350 25350 25350 25350 25350
B S F / O T H ~ P ~ ~ C H A S E S28268 2826a 28268 28268 28268
CO:IVZ?SION COST 3586 3566 3586 3586 3536
AEt41NIsTaATIVE COST 4529 4528 4528 4529 4528
U Y A R K ~ ICOST
~~C 10867 10867 10867 10a67
THTZ3EST TEXPP:SE
M A N REPAYHZNT
TAX33
TOTAL EXPSNSn& 61732 72599 72599 72599 72599
CASH r'wi 0. 0 17958 17953 17958
ACCUMULATED CASH F U W 0 0 17958 359 16 53373
CASH FWY FOR THE PROCESSING OF 20000 HOGS YEAR 1985

---------------------------------------------------
-------------------*------------------------------- --------
--------
MONTH I MONTH 2 NONTH 3 MDNTH 4 MONTH 5 MONTH 6 MONTH 7
-- - - -- -- - -- --
SALOS 90557 90557 139318 133313 139319 133318 133318
OWNE9 C O E R IBUT ION
UIAIlS
TOTAL INCOME WS57 90557 133318 139318 133318 139313 133318

EXPErlSOS
---- ---- -. ----
HW, T~JRCHASES
8 4~1.'/0~39 PMCYASES
cOnVz!!srON C33T
AT)!IIHTSTRATIVE COST
!fAItKZl'INC, COST
[H'rlS!IEST SXPSYSE
IDA11 REPAYMENT
TAXSS
TOTAL EXPENSE3
"!A::H F M Y -15?!j -21 134 27627 -35538 2'702'1 27627 27627

Ar:r:!JNllWT3D CASH FU)W 15,ioa -5470 2205'; -1 3441 14 187 418111 69'142
- . - -. .
.. -. -- --- -- -- -.--- ---.-
. Best Available Document

TABLE 15
FNCD - HOG PROJECT
INCONE STATE31ENT
-------
TOTAL
Sales 996127 1623061 1671822 4291010

EXPENSES
Cost o f Purchasing Hogs
Cost o f Purchasing Beef and Others
Conversion Cost
Administrative Cost - 5$ o f S a l e s
Yarketing Cost - 1%o f S a l e s
I n t e r e s t Expense
Depreciation
TOTAL EXPENSES
PROFIT REFORE TAXES 210418 337277 316145 863840
TAX 63125 101183 94.843 259152
PROFIT AFTm TAXES 147293 236094 221301 604688
CASH FLOW
INCOME
Sales
Owner Contribution
Loans
TOTAL INCOME 1097106 1574299 1671822 4343227
EXPFSJSES
Hog Purchases 304200 468000
Other Purchases 339222 521880
Conversion c o s t 43032 66203
Administrative Cost 54334 83591
Marketing Cost 119535 194767
I n t e r e s t Expense 34323
Loan ~rnort ization 171613
Taxes ( t o be p a i d t h e f o l l o w i n g y e a r ) 63125
TOTAL EXPENSES 1066260 1397567 1441476 3905303
CASH FLOW
ACCUWLATED CASH FLOW
CASH PW1d WITHOUT OWNEE3
CONTRIBUTION
NFT PRESENT VALUE OFCASH FMW .= 182389s
INTERNAL RATE OF RITTURN 274% = O**
COST BENEFIT 34% = 10.15***
*The owner c o n t r i b u t i o n is n o t included because it is made a t t h e beginning o f 1984.
*+The owner c o n t r i b u t i o n is t a k e n as an expense and t h e p r e s e n t value o f t h e cash
flow without t h e owner c o n t r i b u t i o n is taken as income.
**+The p r e s e n t v a l u e of t h e cash flow without t h e owner c o n t r i b u t i o n is taken as a
b e n e f i t and t h e owner c o n t r i b u t i o n is taken as a c o s t .
TABLE 16
FNCD - HOG PROJECT

COMBINED CASH FWW ($b 000)
INCOME
------
1984 ------
1985 ------
1986 -------
TOTAL
National S a l e s
Yxport S a l e s
Owner Contribution - C a p i t a l
Joans
Fepresentatlons
4ccounts g e c e i v a b l e
S a l e o f Assets
~eturns/~ecoveries
O t h e r Income
TOTAL INCOMF:
EY PENSES
!WH tqi)+.p-+)$
(pgs and o t h e r s )
Zohvek3 O n COB
Administrative Cost
t'arketing Cost
lnterest Bpense
Ioan Amortization
Fxport Cost
Representations
Other Expenses
'['axes (only o f t h e Hog ~ r o j e c t )
'I'OTAL EXPENSES
CASH FIIOW
ACCUMULATED CASH FLOW
CASH FLOW WITHOUT OWNm
CONTRIBUTION
l1hESENT VALUE OF CASH FLOW WITHOUT O#NM CONTRIBUTION = 210132
1,HESENT VALUE OF OWNER CONTRIBUTION 3% = 2738.5 (Present value orrl y
o f 1985 c o n t r i b ~ I~L , ,tI
NhT PRESENT VALUE 3416 p 182747
I R R OF CASH FLOW WITHOUT OWNER CONTRIBUTION 3 1 22603
TRR OF OWNER CONTRIBUTION 273% = 22605
N E T INTERNAL RATE OF RETURN 273% = -
2
COST/BENEFIT / OWNER CONTRIBUTION 34% 7.67
SOURCE: Cash Flow without Hog P r o j e c t : FNCD Analysis o f p r e s e n t and p r o j e c t e d c o n d i t i o n .

November, 1982
Cash Flow o f Hog Projecta See previous t a b l e .
BEST AVAILABLE COPY

-63-
TABLE 2 3
SCHEDULE OF HOG PRODUCTION
Agropecuaria Copacabana - Breeding 900 900 900 900

Agropecuaria Copacabana - Fattening 800 600 900 900
Small Farmers - Fattening 100 300 L -
Agropecuaria Copacabana - Breeding

New Breeding Center - Breeding
Pairumani Farm - F'attening
Sinall Farmers - Fattening
3. TOTAL
AC and New Center - Breeding 900 900 5000 8000 9500 10500 11500 11500 12500 13500 14500 14500
AC and Pairumani Farm - Fattening 800 600 4000 6000 7000 7000 7000 7000 7000 7000 7000 7000
Small Farmers - Fattening 100 300 1000 2000 2500 3500 4500 4500 5500 6500 7500 7500
SF. SCHEDULE OF ACTIVITIES
MONTH ----0------ ----1---- -- -----2----- -----3------ ------4------

DAY ----
1 ---_15 _--_
1 ----15 -_--1 ----15 ----
1 ----15 --- 15 ---
1 --- 30
Training Course
Building o f I n f r a s t r u c t u r e
Purchase of P i g s
Feed Delivery X X X X
V l s i t of Veterinarian X X X X X
Vaccine a g a i n s t Foot and Mouth and P a r a s i t e s X
Weight Control X X X
S a l e of Hogs X
Payment Received X
h r a l u a t ion X
F i n a l Report X
Daily A c t i v i t y :
Feed
Water
Cleaning
Note: Months 5 and 6 a r e f o r r e s t , cleaning, d e s i n f e c t i n g and r e p a i r o f pens.

-65-
TABLE 25
SCHEDULE OF ACTIVITES OF THE PEiOJECT

YEAR ----------
0 ----------
1 ----------
2 3
---------- ----------
4 -------_--
5
SEX ST^ ----
1 ----2 ----
1 ----2 1 ----
---- 2 ----
1 ----2 ----
1 ----2 ----
1 ----
2
1. Approval o f t h e P r o j e c t (USAID) X
2. Experimental Stage:
Segin 1 0 TTodules X
Evaluation o f t h e 1 0 l k d u l e s X
Begin 30 F'odules
W a l u a t i o n o f B p e r i m e n t a l Stage
3. Development I n s t i t u t i o n :
Study and Approval X
Formation
Implementat i o n
4. Agropecuaria Copacabanar
Begin 1 0 Elodules . X
Begin 30 Modules
Begin ~ x p a n s i o n ( l a s t semester)
F i n i s h Expansion ( l a s t semester)
Pro d u c t i o n
5. Pairumani Farmr
Begin Construction ( l a s t semester)
F i n i s h Construction ( l a s t semester)
Hog F a t t e n i n g
6 . New Breeding Centerr
Study and h r a l u a t i o n of P o s s i b i l i t i e s X
Begin C o n s t r u c t i o n
Pig Production
7. Nodule P r o j e c t i o n s
BEST AVAILABLE COPY

AGROPECUARI A COPACABANA SALES PRICE INCREASE OF 10$
I--------------*-- ------
NCOME STATEMENT ($b 000)
Year0 Year1 Year2 Year3 Year4 Year5 Year6 Total
1
SALES
Hogs Weight 95 kg au 10000 14000 14000 14000 14000 ' 14000
Pigs Weight 15 kg au 3000 6000 6000 6000 6000 6000
Hogs Price $b 286/kg 271700 380380 380380 380380 380380 380380
Pigs m i c e $b 6864/au 20592 41104 41104 41184 41184 41184
Total ~ a i e s 292292 421564 421564 421564 421564 421561,
VARIABLE COSTS 150167 218822 218822 218822 218822 218822
FIXED COSPS 48611 60363 60363 60363 60363 60363
INTEREST EXPENSE (without 116501 73472 48042, ' 33260 18478 3696
accrual)
PROFIT -22987 68907 94337 109119 123901 138683
---------- -----
CASH FLOW [$b0001
INCOME
Sales 292292 421564 421564 421564
Investment Cap.
own c o n t r ibut ion 222306 15'791
Working Cap. Own Cont
Loan-Investment Cap147821
. 15937 11335
Loan-TJorking Cap. 143433
TOTAL INCOME 370127 467452 432899 421564 421564
EVPFNSES
Investlnents 370127 90891
Variable Costs 150167 218822 218822 218822
Fixed Costs
(without deprec. ) 9203 12615 12615 12615
I n t e r e s t Expense 116501 73472 48042 33260
Loan Amortization 71716 90194 36955 36955
TOTAL EY PENSES 370127 4384.78 395103 316434 301652
CASH FMW 0 28974 37796 105130 119912
CASH FLOW
ACC~~ATED 0 28974 66770 171900 281812
-E?l
PEF,~~A,B,zI,T,Y,-E!~Io_s_-~~!
CASH FLOW without
owner contribution -2753 2i461 105130 119912
OWNER CONTRTBUI'ION
(new investments)* 22505 31727 11335
PRESENT VALUE OF CASH FLOW WITHOUT OWNER CONTRIBUTION =
PRESENT VALUE OF OWNER CONTRIBUTION 345% =
NE3' PRESENT VALUE 34% =
I R R OF CASH FLOW 1dTTHOUT OWNER CONTRIBUTION 86% =
I R R OF OWNER CONTRIBUTION 86% =
NE2 INTERNAL RATE OF RETURN 86% =
COST BENEFIT 34% =
BEST AVAILABLE COPY

-67-
TABLE 27
AGROPECUAR I A COPACABANA FIXEDBVARe,BINVESTe

BOWN.CONTR..COST
INCREASE OF 10%
----------------- ------
INCOME STATEFrENT ($b 0001
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Total
SALES
Hogs Weight 95 kg au
Pigs Weight 15 kg au
Hogs R i c e $b 260/kg
pigs Price $b 6240/au
TOTAL SALES
VARIABLE COSTS
FIXED COSTS
INTEREST EXPENSE (without
accrual)
PROFIT
INCOME:
Sales
Investment Cap. Own
Contribution 2Wl.537
'forking Cap. Own
Contribution
Loan- Invest. cap. 162603
Loan-Working Cap.
TOTAL INCOME 40'7140
EXPENSES
Investments 407 140
variable Coats
Fixed Costs (with-
out depreciation) 10123 13876 13876 13876 13876 13876
Interest Expense 128152 80819 52846 36586 20325 4065
Loan Amortization 78888 99213 40651 40651 40651 20325
TOTAL EXPENSES 407140 482326 434613 348078 331817 315557 278971
CASH PTBFI 0 -23930 -38905 35162 51423 67683 104269
ACCIJMUIATED CASH FMW 0 -23930 -62834 -27672 23751 91434 195703
------------- ------ -----
PROFITABILITY RATIOS ($b 000)
CASHr PUlW .without bwnei
contribution
OVNER CONTRIBUTION
(new investments) * 24755
PRESENT VALUE OF CASH FLOW WITHOUT OWNER CONTRIBUTION = -8274

PRESENT VALUE OF OWNER CONTRIBUTION = 57744
NFT PRESENT VALUE = -66017
I R R OF CASH FLOW WITHOUT OWNER CONTRIBUTION 1% = 66814
TRR OF OWNER CONTRIBUTION 1 = 66813
N E T INTERNAL RATE OF RFTURN 10% = 0
COST BENEFIT 34% = -0 14
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TABLE 28
FNCD - HOG PROJECT

COMBINED CASH FLOW PRICE INCREASE OF 1%I N SALE OF MEAT ($b 000)
-------
TOTAL
INCOME
National S a l e s
Export S a l e s
Capital Contribution
Loans
~e~resentatlons
Accounts Receivable
Sale of Assets
~eturns/~ecoveries
Other Income
TOTAL INCOME
EXPENSES
Raw Material ( ~ o g sand o t h e r s )
Conversion Cost
Administrative Cost
Marketing Cost
Interest Bpense
Loan Amortieat ion
Export Cost
Representations
Other Expenses
Taxes (only of t h e Hog P r o j e c t )
TOTAL EXPENSES
CASH FLOW
CASH FLOW WITHOUT OWNER

CONTRIBUTION
PRESENT VALUE OF CASH FLOW WITHOUT OWNER CONTRIBUTION = 364213
PRESENT VALUE OF OWNW CONTRIBUTION 34% = 29377 (Present value only
of 1985 c o n t r i b u t i o n )
N E T PRESENT VALUE - = 334836
I R R OF CASH FLOW WITHOUT OWNER CONTRIBUTION 528% = 23506
I R R OF OWNER CONTRIBUTION 528% = 23506
NET INTERNAL RATE OF RETURN 528%= 0
COST BENEFIT / OWNER CONTRIBUTION 34% = 12.40
SOURCE: Cash Flow without Hog Project: FNCD Analysis o f present and 3 r o j e c t e d condition
Cash Flow of Hog Project: See previous t a b l e
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TABLE 29
FNCD - HOG PROJECT

I
COMBINED CASH FLOW COST INCREASE OF 1m * ($b 000)
------
1984 ------
1985 ------
1986 -------
TOTAL
INCOME
National S a l e s
' Export S a l e s
C a p i t a l Contribution
Loans
Representations
Accounts Receivable
S a l e of Assets
~eturns/~ecoveries
Other Income
TOTAL INCOME
EXPENSES
Raw Material ( ~ o g sand o t h e r s )
Conversion Cost
Administrative Cost
llarketing Cost
I n t e r e s t Expense
Loan Amortization
Export Cost
Representations
Other Expenses
Taxes (only of t h e Hog P r o j e c t )
TOTAL EXPENSES
CASH FLO!J
CASH FLOW WITHOUT OWNER

CONTRIBUTION
PRESENT VALUE OF CASH FLOW WITKOUT OWNER CONTRIBUTION 36120

PRESENT VALUE OF OWNER CONTRIBUTION 29377 (Present value only
of 1985 c o n t r i b u t i o n )
NFT PRESENT VALUE 6742
I R R OF CASH FLOW WITHOUl' OWNER CONTRIBUTION 29076
I R R OF OWNEXt CONTRIBUl'ION 29076
NFT INTERNAL RATE OF RETURN 0
COST BENEFIT / OWNER CONTRIBUTION 1.23
SOURCE: Cash Flow without Hog Pro j e c t : F'NCD Analysis of p r e s e n t and p r o j e c t e d condition
November, 1982
Cash Flow of Hog P r o j e c t : See previous t a b l e
+Only t h e c o s t s r e l a t e d t o t h e Hog P r o j e c t ; a l l o t h e r c o s t s remain constant.
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DESIGN 1
ELEVATION-
- -.
of Water/
~ e t a h
- -Feed Trough-'-.
FLOOR PLAN-
.-
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DESIGN 2
DIAGRAM O F HOG HOUSES
I ~ ~ ~ I I I I I I I I I I I I I I I I ~ I I I ~ I storage
I I I I room
I I ~ -
- HOG HOUSE (4. of 65 s e c t i o n s each)
. FARROVING HOUSE ..~. (2 of '-& pens each)

.....
--. GESTATION HOUSE (4 of 26 sections each) .
-FATTXNING HOUSE (8 o f 60 s e c t i o n s each)
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APPENDIX I
ACROPECUARIA "COPACABAMA"
I N D I V I D U A L R E G I S T E R O F FENALES ]
1
JTarne ----
i
Number
Breed
Date o f b i r t h
, Character
'size
Udders
Color
/Origin
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-73-
AGROPECUARIA I' COPACABANA"

LITTER REGISTER
L
, Number
.Breed
,Data F a t h e r
Data Mother
, D a t e of b i r t h
- P i g l e t s born
P i g l e t s weaned
Other
I N D I V I D U A L R E G I S T E R O F WEANER PIGS .
- ---. ...-- ,
Contractions
Birth
Placenta
Transfer p i g l e t s J
,
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AGROPECUARIA I' COPACABANA"
BESTAVAILABLE COPY
-75- APPGNDIX I1
FORM FOR CENSUS RE HOG STOCK

SMALL FARMERS.
1.- GENERAL ASPECTS:

1.1. Name of farmer.........................................
1.2. P l a c e and d a t e of birth,,..,............................
1.3. P r e s e n t p l a c e of residence.............................
1.4. No, of children,,,.,,,,,,.~........children who l i v e on a.
t h e farm...........................Age.........b.......
1.5. How many y e a r s have you l i v e d i n t h e Chapare?..........
2 .- LPLNDO\dNERSHIP
2.1:IIow
:
many p r o p e r t i e e o r l o t s do you have?...............
2.2. N a m e of t h e property...................................
2.3, How d i d you g e t it?.......,,,,.........................
2.4. Area held....,,........................................
'2.5.
.......................................................
Documents proving ownership,..,.. ......................
S i t u a t i o n of t h e f a r m i n t h e p r o j e c t (co-ordinated and
i n r e l a t i o n s h i p t o t h e e x i s t i n g t r a c k s ) , . ..........,...
2.6,
2.7.
.......................................................
Way of r e a c h i n g t h e property.,.............. ...........
3. - ADMINISTRATION & MANAGEPIE2JT :
3.1. Do you a d m i n i s t e r t h e p r o p e r t y p e r s o n a l l y o r do you have
employees?.............................................
3.2,
................ 3
If you have emplo e e s , how many? a)On a f i x e d salary...
C ) Others..............................................
b On shares............................
3.3.
.......................................................
Have you e v e r bred p i g s ? Yes....No....H~w many?........
3.4.
......................
If you have bred p i g s , what f e e d d i d you give them?....
.................................
3.5.
.......................................................
h v e you bred p i g s f o r f a t t e n i n g o r f o r reproduction?..
3.6.
3.8.
.........................
On what f e e d do you t h i n k p i g s f a t t e n best?............
and what d i d t h e y weigh?.,....
How long d i d you f a t t e n them?..........................
3.9. What d i d t h e f a t p i g s weigh when you s o l d them?........
3.10.
....
What method d i d you use t o feed t h e pigs?..............
On d i r e c t grazing.,.. ;.,.......bCost.......-.......
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On grazing and balanced feed...........................

Cost...................................................
On grazing- w i t h bananas and cassava.,..................
cost......
On balanced feed onls.....
.............................................
.....................i.......
"
Cost.................*.................................
On cassava and bananas only...............Cost.........
Other methods.......................................,..
....................................................... ...
3.11, Where d i d ' y o u buy t h e young p i g s f o r fattening?.,...
3-12, Who o r what company bought t h e pigs?,. .................
3.13.
.......................a t what price?.,. ...............
If they paid by weight what p r i c e d i d they pay?..... ...
T - --
WEIGHT TOTAL PRICE PER KGR.
AGE OF PIG KGRS SALE PRICE LIVEWEIGHT
4
0-4 Months
4-6 Months
6-8 Months
8-10 Months
10-12 Months
More than
1 2 Months L
5
4. - REPRODUCTION
4.1. Do you have a boar? Fes.,...No ....Where d i d you g e t i t ?
.......................................................
4.2. A t what time do you put t h e boar w i t h the sows?........
4.3.
.......................................................
I f you have bred sows f o r reproduction, a t what age does
4.4.
........................................................
t h e sow have hes fisst litter?..........................
Do you use a brand o r any i d e n t i f i c a t i o n f o r your pigs?
4.5.
.......................................................
What animal husbandry techniques do you use on your....
piglets?...... .........................................
- m e t o o t h c l i ping..........................
-Weaning (Age P
-Left over food
..........................
..........................
4.6,
-Cleaning .......................... I
If you have bred sows f o r reproduction, how many p i g l e t s

do they have i n each litter?................*........,.
How many l i v e u n t i l weaning?.........................,.
5.- OTHER TECHNICAL DATA:
5.1. Are you f a m i l i a r w i t h t h e d i f f e r e n t breeds of pig? Such

as:-
Duroc J e r s e y
Hampshire.
.................
................... Yorkshire,.....,...,..,....
Poland China..............
f
Lan&ace.....................Berkshire,,...............
5.2. Do you p r a c t i c e s e l e c t i o n i n your herd? Yes....No......
What method do you use?..,.............................
5,3. Are you f a m i l i a r w i t h ' h e t e r o s i s ? If so, u n t i l what
generation do you consider technique should be used?...
.......................................................
5.4. Do you vaccinate your herd? For which diseases?........
Foot and mouth.....,..................
Rabies................................
Brucelosis.. ..........................
Swine fever,........,.................
Others..,.............,...............
5.5.
.......................................................
What a r e t h e d i s e a s e s t h a t most a f f e c t your herd?......
5.6. What problems o f major importance do you consider
.......................................................
a f f e c t t h e e x p l o i t a t i o n of pigs,,........,. ............
5.7. If you were offered good q u a l i t y p i g s t o f a t t e n , would
you d e d i c a t e yourself t o t h i s a c t i v i t y ? Yes......No.,..
5.8. Would you f a t t e n p i g s i f you were offered a s a f e
market? Yes......No..........,
5.9. If you agreed t o f a t t e n young p i g s , would you b u i l d t h e .
stm t h a t t h e s p e c i a l i s t s advise? Yes......No..........
5.10. Would you agree t o work i n a system of Co-operatives
...................................
f o r f a t t e n i n g p i g s o r would you p r e f e r t o breed on your
property?...........
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APPENDIX I11
B O L I V I A
Locatidn of t h e Chapare Region -
ARGENTINA
i
i
York Areas
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- -80
APPENDIX V*
FABRICA NACIONAL DE CONSERVAS DILLMANN

SUCCESSORS OF CARMS PENA S.R.L.
BALANCE SHEET
as of SEPl'EMBEEl 30, 1982
CURRENT ASSFTS
CASH
Cash and Banks 6,733,209.--
ACCOUNTS RECEIVABLE
Accounts Receivable - Clients 21,551,284.--

Down Payments to Suppliers 839,264.--
Accounts Receivable - Personnel 12,592,795.--
Prepaid Taxes 1,648,059.--
Other accounts receivable 5,859,241.--
Provision f o r Past Due Loans (!%0,763*--) 41,909,880.--
INVENTORY
Raw Material 756,000. --

':'ark i n Progress 12,368,275.--
Finished Goods 41,359,428.--
Stored )?aterials and Supplies 96,974,025 --
C O O ~in~ ~ r a n a i t 79,263,147*-- 230,720,875,--
t
TOTAL CURRENT ASSFTS
OTHER ASSETS
ACCOUNTS RECEIVABLE
From Building Sale
Shares and Securities '10,100.--
FIXED ASSmS
Land, plant and equipment (net

of accumulated depreciation of
$b12,478,389*--)
DEFERRED EXPENSES
Planning Studies and Projects
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ASESORAMIENTOEMPRESARIAL S.A.
' New Product Promotional Expenses

(net of accumulated amortization
of $b979,754. --)
OTHER DEFERRED EXPENSES
Foreign Exchange Position
TOTAL OTHER ASSE;TS
LIABILITIES AND CAPITAL WNDS
LIABILITIES
CURRENT LIABILITIES
Banks (net of prepaid i n t e r e s t of

$b933,250 * 0 0 )
B i l l s Discounted
Suppl lers
S a l a r i e s and Bonuses
I n t e r e s t Payable (net of
deferred i n t e r e s t of
$b6,498,820. -- )
Employee Benefits
Taxes Payable
Commercial Representations Payable
Others
TOTAL CURRENT LIABILITIES
--
LONG TERM LIABILITIES
LOANS
.. Banks
B i l l s Discounted
Accounts Payable
PROVISIONS
---
TOTAL LONG TERM LIABILITIES
TOTAL LIABILITIES
CAPITAL FUNDS
CAPITAL
Paid i n Capital
Capital by Revaluation
Supreme Decree 17.240
Capital by Revaluation
RESERVES
Legal
RTI'AINED EARNINGS
Loss 1981
P r o f i t o f t h e Period
TOTAL CAPITAL FUNDS
TOTAT1 ?,IABILITIES AND CAPITAL FUNDS

,
APPENDIX VI
FABRICA NACIONAL DE CONSERVAS DILLMANN

SUCCESSORS OF CARIBS PFXA S.R .L.
INCOME STATEMENT
as o f SEPTEMBER 30, 1982
P e r i o d b e g i n n i n g Jahuary 1, 1982
Net S a l e s
Cost o f S a l e s
Gross Profit
Commissions Received on Consignments
A d m i n i s t r a t i v e Expenses
Marketing Expenses
Finan c i a 1 Expenses
Plus:
O t h e r Income
Less r
Other Expenses
Net Profit o f t h e p e r i o d
APPENDIX VII.
AGROPECUAR I A COPACABANA
The following data covers t h e a g r i c u l t u r a l year July, 1981 t o June, 1982.

This data is but a small percentage of t h e t o t a l information recorded by
AC and it serves as an example of t h e type of data registered.
.
DATE FARROWINGS PIGS PER BIRTH WEIGHT PIGLFTS PIGLEn'S WEIGHT PEH PIGLETS
LITTER , PE3 PIGLET ' BORN WEANED PIGLFT AT !iEA?ED
(AVERAGE) WEANING (AVERAGE)
- (NO.) (NO.) (KG ) (NO.) (NO.) (KG) (NO.)
81 July 25 238 1.384 9-52 193 12.841 7 *72
~ugust 20 173 1.25 8.65 141 12.315 7.05
September 21 179 1.34 8.52 148 12.243 7.04
October 30 266 1.28 8.87 220 12 393 7 933
November 10 69 1.362 6.90 53 11.727 5 30
December 13 109 1.303 , 8.38 91 12.802 7.00
82 January 15 139 1.403 9-27 105 10.828 7.00
February 20 166 1 277 8.30 133 12.254 6.65
March 21 190 1.204 .
9 05 19' 11.445 7-33
April 19 151 1.302 7 95 117 12.24 6.15
May 5 47 1 33 9.40 34 11.808 6.80
June 18 158 1 317 8.78 126 12.896 7.00
TOTAL 217 1885 15.752 8.63 1515 145.792 6.86

AVERAGE ( ~ i v i d e dby 12 months) 1.31 12.15
APPENDIX VIII.
A P P R A I S A L
PROPERTY I
AGROPECUARIA COPACABANA
OWNeR I
MR. ALFREDO SALAZAR R I V A S

APPRAISAL
Property: Agropecuaria Copacabana
Juan G a l l o P a l a c i o s , a r c h i t e c t w i t h p r o f e s s i o n a l r e g i s t r y no. ' 148, a t

t h e r e q u e s t o f t h e manager and owner, M r . Alfredo S a l a z a r Rivas t o v a l u e h i s
p r o p e r t y Agropecuaria Copacabana, do hereby p r e s e n t t h e f o l l o w i n g a p p r a i s a l ;
The p r o p e r t y Agropecuaria Copacabana is l o c a t e d i n t h e zone o f I b u e l o

o f Villa T u n a r i , F m v i n c e o f Carrasco o f t h e S t a t e o f Cochabamba.
2. Extension of t h e landr
General C h a r a c t e r i s t i c s : The a g r i c u l t u r a l p r o p e r t y h a s a t o t a l
e x t e n s i o n o f 74,661.25 h e c t a r e s . The l a n d is r e c t a n g u l a r i n shape, 320.00
m e t e r s wide by approximately 1,700.00 meters l o n g w i t h a north-south o r i e n t a t i o n
and i s t r a n s v e r s a l l y c r o s s e d by t h e a s p h a l t e d highway 1-4 between I b u e l o and
Villa T u n a r i . Because o f i t s l a y o u t , t h e p r o p e r t y is e a s i l y d i v i d e d i n t o f o u r
s e c t i o n s f o r t h e s o l e purpose of making t h e a p p r a i s a l more e x a c t .
a. Zone 11
With 2 0 , 9 1 . 2 5 h e c t a r e s , it is l o c a t e d a t t h e s o u t h e r n end of t h e
p r o p e r t y , more s p e c i f i c a l l y , from t h e s o u t h e r n boundary o r Trail 2 t o t h e
a s p h a l t e d highway. , I n t h i s area a r e l o c a t e d a l l o f t h e b u i l d i n g s of t h e farm
i n c l u d i n g t h e houses. Consequently it h a s an i n t e r n a l r o a d system f o r t h e
c i r c u l a t i o n o f v e h i c l e s a n d p e o p l e , a sewage system, p o t a b l e w a t e r and
e l e c t r i c a l c u r r e n t with o u t s i d e illumination.
b e Zone 21
With an e x t e n s i o n o f 28,243.10 h e c t a r e s l o c a t e d i n t h e c e n t e r o f t h e
p r o p e r t y , t h i s is t o t a l l y c l e a r e d a g r i c u l t u r a l l a n d w i t h i n f r a s t r u c t u r e f o r t h e
c i r c u l a t i o n o f heavy farm equipment. T t a l s o h a s two b r i d g e s o f r e i n f o r c e d
c o n c r e t e and a d r a i n a g e system f o r t o r r e n t i a l r a i n s . The e n t i r e a r e a i s p l a n t e d
w i t h c i t r u s t r e e s , 286 p e r h e c t a r e t o t a l l i n g 7,120 t r e e s p l a n t e d s c i e n t i f i c a l l y .
I
c . Zone 31
With an e x t e n s i o n o f 23,199.90 h e c t a r e s , t h i s is l a n d which i s in

t h e p r o c e s s o f b e i n g c l e a r e d . It h a s brooks f o r water.
d . Zone 4:
It corresponds t o t h e a r e a covered by t h e s t r e a m s and t h e I b u e l o

R i v e r which is 2,677 h e c t a r e s . .
3 . Cost o f t h e l a n d !
To more c o r r e c t l y estimate t h e v a l u e o f t h e l a n d , I i n v e s t i g a t e d
o t h e r p r o p e r t y v a l u e s i n t h e a r e a t o determine t h e p r e s e n t v a l u e of t h e l a n d .
Taking i n t o account my r e s e a r c h , below is my a p p r a i s a l :
-
Zone Surface i n h e c t a r e s Price per hectare T o t a l i n d:b
1 20,541 - 2 5 400,000. - 82,165,000.-
2 28,243.10 3OO,OOO.- 84,729,300.-
3 23,199.90. 200,000. - . 46,399,800.-
4 2,677.00 100,ooo.- 2,677,000.-
Sub T o t a l $b 215,971,100.-
I
4. Covered Arear
The b u i l d i n g s c o n s i s t o f a. breeding houses f o r p i g s , machine room,
oven b. warehouses c . worker houses, v e t e r i n a r i a n house, l a b o r a t o r i e s d.
a d m i n i s t r a t o r house and e . ranch house and g u e s t house.
a. Breeding houses f o r p i g s , machine room, oven
These b u i l d i n g s a r e c o n s t r u c t e d o f t h e f o l l o w i n g m a t e r i a l s : s t o n e
f o u n d a t i o n s with cement m o r t a r s i n t h e o u t s i d e and d i v i d i n g walls; columns o f
r e i n f o r c e d c o n c r e t e i n t h e s u p p o r t i n g roof s t r u c t u r e ; cement o v e r t h e f o u n d a t i o n ;
walls o f cement b l o c k s o f 1.40 meters h i g h ; r o o f o f f ibrocement " Thralit" above
l a y e r s of a l m e n d r i l l o wood of 2l\ x 7" with l a t h i n g o f 2" x 3" a l l o v e r beams of
6" x 6" b o l t e d t o t h e columns o f r e i n f o r c e d c o n c r e t e o f 0.25 x 0.25 m e t e r s ;
c o n c r e t e f l o o r s ; f l o o r i n g of s t o n e , s t o n e d r a i n a g e system f i n i s h e d with c o n c r e t e
s h e e t s between open g u t t e r s o f 0.40 x 0.40 meters w i t h o v e r p a s s e s o f i r o n
g r i l l e s o f 9''i n d i a m e t e r ; m e t a l l i c doors w i t h frames o f g a l v a n i z e d p i p e s o f 2"
and round i r o n g r i l l e o f 3'' rustproofed; a l l o f t h e buildings painted with l a t e x
p a i n t due t o t h e humidity of t h e a r e a .
b. Warehouses
They a r e b u i l t with s t o n e f o u n d a t i o n s covered w i t h cement; walls o f

cement b l o c k s w i t h a network o f beams o f r e i n f o r c e d c o n c r e t e ; roof of fibrocement
" ~ u r a l i t " above l a y e r s o f a l m e n d r i l l o wood o f 2" x 6 " ; s o f f i t s of s t u c c o e d
p l a s t e r o v e r l a t h i n g ; c o n c r e t e f l o o r s and s t o n e f l o o r i n g s ; m e t a l l i c doors with
frames o f g a l v a n i z e d p i p e s o f 2" and i r o n metal g r i l l e , c i r c u l a r o f 3"; windows
of wood w i t h s c r e e n s ; l a t e x p a i n t on walls and s o f f i t s ; o i l o f t h e windows and
rustproofed m e t a l l i c doors.
c . !Jorker houses, V e t e r i n a r i a n house, L a b o r a t o r i e s
These are b u i l t with s t o n e f o u n d a t i o n s with cement m o r t a r s , covered

w i t h cernenti walls o f cement b l o c k s with a network o f r e i n f o r c e d c o n c r e t e beams;
roof of fibrocement \ \ D u r a l i t " above l a y e r s o f wood 2 " x 6 I ' ; f l o o r s o f l e v e l e d
cement; p l a s t e r i n g o f sandy cement! s o f f i t s o f p l a s t e r o v e r l a t h i n g ; doors and
windows o f wood with s c r e e n s i n t h e windows; l a t e x p a i n t o f t h e w a l l s ; t h e
workers houses have t u r k i s h t y p e bathrooms; t h e v e t e r i n a r i a n house h a s a
bathroom w i t h a t o i l e t , a tank. .a wash b a s i n , a shower and t i l - e s lmported from
Brazil.
d. A d m i n i s t r a t o r House
The house h a s a s t o n e f o u n d a t i o n w i t h cement m o r t a r s ; s t o n e walls

seen f r o m t h e o u t s i d e t o t h e h e i g h t (1.00 meter) o f t h e windowsills; b r i c k
walls w i t h a network o f c o n c r e t e beams; roof o f fibrocement above l a y e r s o f
a l m e n d r i l l o wood 2" x 6"; cement f l o o r s , cement s i d e w a l k s , p l a s t e r e d walls
w i t h sandy cement; s o f f i t s w i t h s t u c c o e d p l a s t e r above wood l a t h i n g ; d o o r s and
windows o f mara wood w i t h s c r e e n s i n t h e windows; l a t e x p a i n t on t h e walls,
s o f f i t s a n d e a v e s ; o i l on t h e d o o r s a n d windows. The house h a s t h r e e bedrooms,

a l i v i n g - d i n i n g mom, a k i t c h e n w i t h a s i n k and c a b i n e t s , a bathroom w i t h
B r a z i l i a n f i x t u r e s i n c l u d i n g t h e t o i l e t , shower, b a s i n and t i l e s .
e . Ranch House
It h a s two s e c t i o n s ; t h e ranch house h a s an e n t r a n c e h a l l , den,

f o t l r b e d r o ~ m s , d i n i n g room, k i t c h e n w i t h c a b i n e t s and s i n k b u i l t i n t o t h e
c a b i n e t s , bathroom w i t h B r a z i l i a n f i x t u r e s i n c l u d i n g t i l e s , t o i l e t , s i n k ,
m i r r o r , c a b i n e t a l l i n w h i t e . The g u e s t house h a s a l a r g e bedroom, two
bathrooms w i t h t o i l e t s and showers, a s p a c e f o r a s i n k , covered g a r a g e f o r 2
vehicles.
It s h o u l d b e n o t e d t h a t t h e s e houses a r e s e p a r a t e d from t h e r e s t o f
t h e farm by a m e t a l l i c door f o r v e h i c l e s and barbed w i r e f e n c e 1 . 8 0 m e t e r s high.
The r a n c h and g u e s t houses have s t o n e f o u n d a t i o n s w i t h cement

m o r t a r s ; s t o n e walls seen from t h e o u t s i d e t o 1.00 meter t h e n b r i c k w i t h a
network o f r e i n f o r c e d c o n c r e t e beams, r o o f o f f i b r o c e m e n t above a l m e n d r i l l o
wood o f 2" x 6"; c o n c r e t e f l o o r s ; walls p l a s t e r e d w i t h f i n e sandy cement;
s o f f i t s p l a s t e r e d with s t u c c o above l a t h i n g ; d o o r s and windows o f mara wood;
s c r e e n s i n t h e windows, s e c u r i t y l o c k s on t h e d o o r s .
f . Pool
I n s i d e t h e barbed wire compound is a r e i n f o r c e d c o n c r e t e pool o f

140.00m2 and 1 . 6 0 m e t e r s deep, p a i n t e d w i t h p l a s t i c p a i n t f o r t h i s t y p e o f
construction.
g. P a s t u r e l a n d
Alongside s h e d 2 is 1,750.00 m2 o f g r a z i n g l a n d , d i v i d e d by barbed

wire f e n c e s 1.20 meters high i n t o 1 0 a r e a s ; p i l l a r s o f r e i n f o r c e d concrete.
Each a r e a h a s a m e t a l l i c door o f 2.00 m e t e r s l o n g by 1.20 m e t e r s h i g h b u i l t
w i t h a g a l v a n i z e d p i p e frame o f 2 " a n d m e t a l g r i l l e o f +"rustproofed.
h . Hen House
With a s u r f a c e o f 1,260m2 p e r i m e t r i c a l l y c l o s e d w i t h g a l v a n i z e d
s c r e e n i n g o f 1" t o a h e i g h t o f 1.80 m e t e r s f i x e d t o p o s t s o f 2" g a l v a n i a e d
p i p e s w i t h m e t a l l i c doors.
5. Infrastructqre
5.1. Road System
A l l o f t h e m a d s have Beds f i l l e d w i t h r e f u s e and s u r f a c e d w i t h s t o n e .
The e n t r a n c e m a d t o t h e warehouses i s U shaped a n d i s s u r f a c e d w i t h s t o n e as
are t h e r o a d s t o t h e g a r a g e s and t o t h e r a n c h house.
5.2. Reinforced Concrete B r i d g e s
I n zone 2 t h e r e . a r e two b r i d g e s o f r e i n f o r c e d c o n c r e t e above s t r e a m s

and b u i l t o v e r containment walls o f s t o n e w i t h cement m o r t a r s and b u t t r e s s e s
o f 45 d e g r e e s a c c o r d i n g t o c a l c u l a t i o n s f o r t h a t purpose. The first b r i d g e i s
4.90 m e t e r s wide by 3 . 0 5 m e t e r s l o n g . The second b r i d g e is 4.90 m e t e r s wide by
4-83 meters l o n g , The two b r i d g e s have i n v e r t e d beams o f 0.50 meters high as

handrails.
5.3. D i s i n f e c t i n g Well
To e n t e r t h e a g r i c u l t u r a l p r o p e r t y one p a s s e s a m e t a l l i c g a t e 3.90
meters wide a t whose s i d e s a r e sone walls w i t h cement m o r t a r s 2..5' meters h i g h .
Immediately t h e r e a f t e r is l o c a t e d a d i s i n f e c t i n g w e l l w i t h sone c o n t a i n i n g w a l l s .
with cement m o r t a r s , and a cement f l o o r . T h i s w e l l i s b u i l t i n such a way t o
p e r m i t t h e e n t r y o f heavy v e h i c l e s on ramps t o a l l o w f o r washing and d i s i n f e c t i n g .
' 5.4. Cess Pool

It is a t a n k b u i l t o f r e i n f o r c e d c o n c r e t e w i t h a c a p a c i t y o f 56.20m2.
It h a s a d r a i n a g e system t o t h e sewage system which p a s s e s p r e v i o u s l y through
t h e s e p t i c tank.
5.5. P o t a b l e Slater System

The w a t e r system h a s two s o u r c e s ; one i n t h e s o u t h e a s t s e c t i o n o f t h e
p r o p e r t y w i t h a t a n k and p i p e s o f 3'' and 2+" a t a d i s t a n c e o f 245.00 meters;
t h e second is i n t h e southwest s e c t i o n with a t a n k and p i p e s o f 3" and 2"' a t
a d i s t a n c e of 90 meters. Roth r a n w a t e r t o a s t o r a g e t a n k o f 32.00m3 c a p a c i t y
a t t h e h i g h e s t p o i n t on t h e p r o p e r t y s o t h e r e i s p r e s s u r e , I'rom t h e tank p i p e s
go t o t h e complex and t o t h e houses by means o f l", 3/4" and 8" p i p e s which a r e .
normal f o r t h i s t y p e o f i n s t a l l a t i o n .
5.6. s a n i t a r y I n s t a l l a t i o n
The e n t i r e complex h a s a sewage system w i t h cement t u b e s whose s e c t i o n s ,
i n t e r c e p t o r s e t c . a r e b u i l t a c c o r d i n g t o c o n s t r u c t i o n s o f t h i s t y p e . The system
f l u s h e s from each house t o t h e s e p t i c t a n k t h e n i n t o an open c a n a l t o a brook
on t h e p r o p e r t y . The a g r i c u l t u r a l complex h a s an independent s e w w e system
from t h e houses.
5.7. E l e c t r i c a l I n s t a l l a t i o n ,
The e l e c t r i c a l system i s g e n e r a t e d by two d i e s e l and g a s o l i n e g e n e r a t o r s

on g a l v a n i z e d s t e e l p o s t s which d i s t r i b u t e c u r r e n t throughout t h e complex.
5.7. Equipment
The company h a s a Shibaura t r a c t o r o f 2 5 horsepower, a weeder, a sower
and a t r a i l e r .
6 , A p p r a i s a l of Covered Areas
P r i c e i n $b
No.
- Name -
Unit Amount 1Jnit Total
6.1. Sheds 1 & 2 m2 2,072.80 39,000.- 80,839,200.-
6.2. Farrowing Shed m2 289.00 40,500. - 11,70~~,500.-
6.3. G e s t a t i o n Shed m2 517 50 40,500.- 20,953,?50*-
6.4. Boar Shed m2 239.00 35,000.- 8,365,000.-
6.5. Storagehouse m2 82.50 32,000.- 2,61~o,ooo.-
6.6. Laboratory m2 18.60 34,000.- 632,400. -
6.7. Machine Room m2 201.00 32,000.- 6,432,000.-
6.8. Oven m2 31.30 35,000,- l,0951500.-
ASESORAIMIENTO EMPRESARIAL S.A.
P r i c e i n $b
No.
6.9
-
Name
Workers Houses
Unit
7
Amount Unit
186,00 32,000.-
1
'0
' tal
5,952,000.-
6.10 Veterinarian House m2 60.00 35,000.- 2,100,000.-
6.11 Administrator House m2 117.00 42,000.- 4,914,000.-
6.12 Ranch House m2 190.00 45,000.- . 8,550,000.-
6.13 Guest Ifouse m2 107.00 43,500.- 4,654,500.-
Sub t o t a l 158,037,850.-
7. Appraisal - Various
7.1. Pool
7.2. Pasture Land
a . Barbed Wire 1.20m ml
b. P o s t s pieces
c. M e t a l l i c doors pieces
7.3. Earbed wire and p o s t s
around houses ml
7.4. Entrance doors 3
a. Stone walls m2
b. P o s t s m3
c. M e t a l l i c Door m2
7.5. Screens & Bsts
Hen House ml
7.6. Bridges A
R
7.7. Cess Pool
Sub t o t a l
8. Appraisal E l e c t r i c a l I n s t a l l a t i o n
8.1. E l e c t r i c a l a r t e f a c t s piece
8.2. Cables
8.3. C a t e r p i l l a r motor 60kw
8.4. Onan motor 12.5 kw
Sub t o t a l
9. Appraisal Potable Water system

9.1. Water tank
9.2. Pipe system ml
9.3. D i s t r i b u t i o n system
9.4. Field tanks
Sub t o t a l
10. Appraisal S a n i t a r y I n s t a l l a t i o n
10.1. Tube system
10.2. Inspection t a n k s Pieces
10.3. Interceptors Pieces
10.4. S e p t i c tank
i0.5. Waste c a n a l
Sub t o t a l
11. Tools and EQuipment
BESTAVAILABLE COPY
11.1. Shibaura t r a c t o r
sower, t r a i l e r ,
fumigator Piece 1 7,500,000.- 7,500,000.-
11.2. Weeder Piece 1 I.,~OO,OOO.- 1,500,000.-
11.3. I l e t a l l i c cages f o r
Farm w ing Piece 36 27,200.- 979,200 -
11.4 Feeders Piece 274 4,700.- 1,287,800.-
sub t o t a l 11,267,000.-
Sum of Sub T o t a l s
3. Cost of t h e land $b 215,971,100. -

6. Appraisal covered a r e a $b 158,837,850 -
7. Appraisal Various $b 8,407,660.-
8. Appraisal E l e c t r i c a l I n s t . $b 17,820,000.-
9. Appraisal Potable Water $b 3,650,000.-
10. Appraisal Sanitary I n s t . $b 511,000. -
11. Appraisal Ehquipment $b 11,267,000.-
Grand t o t a l $b 416,464,610.-
Cochabamba, March 24, 1983
Signed Architect Juan Gallo Palacios

APPENDIX IX
AGROPECUARTA COPACABANA TSANSPORTATION COSTS
1 ) Truck ( t y p e ~ o r d - 3 5 0 ) o f 2.5 t o n s
T o t a l Cost
Financing 8C@
Maintenance 3%
Payment of C a p i t a l 5 year tenor
Payment o f I n t e r e s t 405 p . a , ( f i r s t y e a r )
T o t a l c o s t first y e a r
Depreciation 2% p.a.
Total
Distance covered 40000 km
Cost p e r km
Gaso 1i n e $b 25/lt-km
T o t a l c o s t p e r km
Approximate -fit 1%
T o t a l P r i c e p e r km
2) Truck of 1 0 t o n s
T o t a l Cost
Financing 8%
Maintenance 3%
Payment o f C a p i t a l 5 year tenor
Payment o f I n t e r e s t 40% p e a . ( f i r s t y e a r )
T o t a l c o s t first y e a r
Depreciation 2% p . a .
Total
Distance covered 40000 km
Cost p e r km
Gasoline $b 25/lt-km
T o t a l c o s t p e r km
Approximate Prof it 1%
T o t a l P r i c e p e r km
Cost p e r t r u c k $b 320/km x 163 km

Cost p e r hog* 7 0 hogs / t r u c k
Cost p e r k g / f r e i g h t 10000 kg / truck
+hog weighing between 8 0 and 100 kg

AG90PECUARIA COPACABANA PRESMT PROFITABTLTTY PER HOG
1 ) Cost p e r Fattened Hog

Roarr Annual f e e d 912.50 kg
x Cost of f e e d 47.94 :i;b/kg
/ Sows serviced 28.60 / y e a r
/ P i g l e t s weaned 13.95 ,/ y e a r
= Cost
Sow t Gestation f e e d 486 kg 43.27 $b/kg
+ Milking f e e d 560 kg 50.47 $b/kg
+ Tn h e a t f e e d 35 kg 47.97 @/kg
Total feed 1081 kg
/ P i g l e t s weaned 13.96 / year
Pig: Feed f o r 56 days
x Cost of f e e d
= Cost
Iiog Being Fattened: Growing Feed 66 kg 48.02 $b/kg
+ Pattening f e e d 8 1 kg 47.55 $b/kg
= Cost
Cost of Medicines r
Boar $b 900 / ( 1 3 . 9 6 ~x 28.6)
+ SOW $b 900 / (13.96)
+ Pig
+ Hog
= Cost
Transportation Cost r
Hog 95kgx$b/kg 4.35
Feed:
Boar 912.50 kg / (13.96 x 28.6)
+ SOW 1081.00 kg / 13.96
+ Pig 11.20 kg
+ Hog 147.00 kg
= Cost o f f e e d 238 kg X $b/kg 4m35
= Cost
Labor:
1 ~echnician/~dministrator $b 25000 x 15 sal. $b 375000
3 Workers $b 12400 x 15 s a l . $b 558000
3W S o c i a l B e n e f i t s $b 279900
1 Veterinarian (contra&) $b 20000 x 12 sal, rib 2140000
Total $b 1452900
= Cost divided by 1800 hogs $b 807
Other Costs:
Insuranca, E l e c t r i c i t y , Maintenance e t c . $b
Administrative Cost:
1 General Manager $b 30000 x 15 sal. $b
30% S o c i a l Benefits ' $b
Various, Accounting
Total
= Cost divided by 1800 hogs $b
Depreciation:
Fixed Assets $b 200439.5M x 1%x 5W/1800
T o t a l Costs $b
2 ) Income p e r Hog
3 ) P r o f i t p e r Hog
APPENDIX XI
ACROPECUARIA COPACABANA * PRESENT PROFITABILITY PER PIG
1 ) Cost p e r Pig
Boar: Annual Feed 912.50 kg
x Cost of f e e d 47.94 $b/kg
/ Sows serviced 28.60 / year
/ P i g l e t s weaned 13.96 / y e a r
= Cost
Sow : Gestation f e e d 486 kg 43.27 $b/kg
+ Milking f e e d $60kg 50.47 $b/&
+ In h e a t f e e d 35 47 *97 @/kg
Total feed 1081 kg
/ P i g l e t s weaned 13.96 / year
Pig: Feed f o r 56 days
x Cost o f f e e d
= Cost
Cost of Medicines!
Boar
+ Sow
+ Pig
= Cost
Transportation Cost;
Feed:
Boar 912.50 kg / (13.96 x 28.6)
+ Sow 1081.00 kg / 13.96
+ Pig ' 11.20 kg
= cost 90.92 kg x $ b / k 4.35 $b 395 6.34
Labor:
1 ~echnician/~dministrator $b 25000 x 15 sal. $b 375000
3 Workers $b 12400 x 15 sal. $b 558000
3% Social B e n e f i t s $b 279900
1 Veterinarian $b 20000 x 12 sal. $b 240000
Total $b 1452900
/ Cost divided by 1800 ' hogs $b 807
= By 25% estimated f o r breeding o f p i g s $b 202 3.23
Other Costs:
Insurance, E l e c t r i c i t y , Maintenance e t c . $?I 150
= By 25% estimated f o r breeding of p i g s $b 38 0.60
Administrative Cost;
1 General Manager $b 30000 x 15 sal. $b
3% S o c i a l B e n e f i t s $b
Various, Accounting Dep. Gas. $b
Total $b
/ Cost divided by 1800 hogs $b
= By 255 estimated f o r breeding of p i g s $b
Depreciation :
Fixed Assets . $b 2 0 0 4 3 9 . 5 ~x 10%x 50$/1800 $b
= By 2% estimated f o r breeding of p i g s $b
Total Costs $b 6826 109.40
2) Income p e r Pig 1.60 x 15.00 kg / $b 260/kg $b 6240 100 -00
3) P r o f i t (LOSS) per Pig $b -586 -9.110
AFPENDIX XI1
SJPPLY AND DEMAND FOR PORK I N COCHABAMBA (STATE)
----
Pork
5820 5880 5940 6000 6060 6120
9134 9313 9504 9694 '9886 10087
Balance (000 MT) -3314 -3433 -35a -3694 -3826 -3967
?ro j e c t (OOOMT)* 74-6 1147 1320 1492
$ Project of Balance 21 31 38
Project (hogs) 13000 20000 95
23000 26000
Source: Coopers & Lybrand - June 18, 1983
* I t is assumed t h a t t h e Project w i l l begin operating in 1985. For the calculation

of t h e metric tons of t h e Project, t h e quantity o f hogs produced times the
average weight of 90 k i l o s per hog times t h e rendition of 63.73% in meat is taken.
(-ample: 1985 - 13,000 hogs x 90 kg/hog x 0.6375 = 746 MT)

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AESA R A M I E N T O P R E S A R I

F E A S I B I L I T Y STUDY OF THE PROJECT

PRODUCTION, FATTEN1NG AND PROCESS1 NG

CONTRACT NO, 511-0000-C-00-3005-01

1.2. Description o f t h e 'Project

2. ANALYSIS OF AGROPECUARIA COPACABANA

2.2. The Role o f Agmpecuaria Copacabana i n t h e P r o j e c t

2.4. R e l a t i o n s h i p between Agropecuaria Copacabana and t h e

2.7. Financial Projections

3. ANALYSIS OF THE FABRICA NACIONAL DE CONSERVAS DILLMANN 26

3.2. The Role of t h e F a b r i c a Nacional de Conservas Dillmann 32

4. ANALYSIS OF HOG FATTENING BY THE SMALL FARM% 37

4.2. Survey Taken

Table 1. AC. Technical Parameters

Appendix I. Hog c o n t r o l Cards (3) of Agropecuaria

Appendix VIII. AC. Appraisal 85

The primary o b j e c t i v e of t h i s s t u d y is t o determine t h e economic,

With t h i s o b j e c t i v e i n mind, t h r e e b a s i c components which form

b ) E s t a b l i s h a simple program, complete and prof i t a b l e , of hog

d ) P r o c e s s t h e e n t i r e hog production, A C 1 s as w e l l as SF'S i n t h e

e ) E s t a b l i s h a s t r i c t system of c o n t r o l and follow-up f o r t h e

The first s t a g e o f t h e P r o j e c t is experimental i n n a t u r e . T h i s

a) Evaluation o f t h e economic, f i n a n c i a l and t e c h n i c a l f e a s i b i l i t y

b ) E v a l u a t i o n o f t h e system designed t o supply p i g s and f e e d t o

I n t h i s s t a g e , 1 0 farmers w i l l b e chosen who a r e i n t e r e s t e d i n

d e v e l o p i n g a f a t t e n i n g program. A d d i t i o n a l l y , t h e s e farmers would have t o

For t h i s reason, during t h e experimental cycle, t h e bases

T h i s s t a g e w i l l be t h e development o f t h e P r o j e c t which w i l l begin

technology f o r e f f i c i e n t production. !iith A C ' s production l i m i t e d t o 6,000

b) Small Farmers, The SF must comply with c e r t a i n b a s i c requirements

The SF should a l s o have t h e f i n a n c i a l l i q u i d i t y t o purchase t h e

The hogs should show an approximate weight i n c r e a s e from 15 kg t o

The f i n a n c i a l and t e c h n i c a l a s s i s t a n c e during t h e second s t a g e w i l l

c ) F a b r l c a Nacional de Conservas Dillmann. FNCD w i l l be o b l i g a t e d

FNCD w i l l p r o c e s s t h e hogs a t its f a c i l i t i e s and w i l l s e l l t h e

2. ANALYSTS OF AGROPECUARTA COPACABANA (AC)

Agropecuaria Copacabana was e s t a b l i s h e d by M r . Alfredo ~ a l a z a rwho,

Thus, M r . S a l a z a r made h i s first i n v e s t m e n t s i n i n f r a s t r u c t u r e .

P r e s e n t l y , AC h a s t h e c a p a c i t y t o produce 1 , 8 0 0 t o 2,000 hogs p e r

To a r r i v e a t t h e p r o d u c t i o n c a p a c i t y o f 20,000 hogs, AC should

2.1.1. Legal Aspects

Agropecuaria Copacabana is a company o f l i m i t e d l i a b i l i t y owned by

The a s s e t s o f AC i n swine l i v e s t o c k a r e composed o f t h e f o l l o w i n g

Piglets 216 6,240. - 1,347,840.-

On t h e o t h e r hand, t h e company does n o t have any debts. The only

The c u r r e n t p r o f i t a b i l i t y p e r hog, produced and f a t t e n e d by AC,

The c u r r e n t p r o f i t a b i l i t y p e r p i g produced by AC is shown i n

2.1.3. Technical Aspects

According t o t h e opinion o f e x p e r t s , AC is considered t o be one o f

The most important t e c h n i c a l s t a t i s t i c s d e l i n e a t e t h e following

TABLE 1. TECHNICAL PARAMETERS OF AGROPECUARIA COPACABANA

Age o f g i l t a t first farrowing 11 t o 1 2 months

T n i t i a l l y , t h e h e r d was predominantly T)uroc, t h e n Hampshire .and now

The h y g i e n i c p r a c t i c e s of AC a r e e x c e l l e n t ; t h e hog houses a r e

The pregnant f e m a l e s a r e t o t a l l y confined. B e f o r e f a r r o w i n g t h e y a r e

The p i g s a r e t a k e n c a r e on e a r l y on. They have t h e i r u m b i l i c a l c o r d s

2.1.4. ' A d m i n i s t r a t i v e Aspects

P r e s e n t l y t h e company is r u n by t h e owner, M r . Alfredo S a l a z a r and

2.2. The Role o f Ag-ropecuaria Copacabana in t h e P r o j e c t .