Competitive Analyses of the Pig Industry in Swaziland
2018
Ndwandwe, Sandile Birthwell | Weng, Ruey-Chee
Over recent decades, Swaziland’s pork industry has been stagnant, failing to meet the domestic demand for pork. It is only in recent years that the number of pig farmers has increased rapidly, with smallholder farmers taking the lead. However, while higher demand for pork could lead to opportunities for growth, with uncertain future markets, increased pig production capacity could subject farmers to extreme market competition and failure to sell their produce. This study used a survey and SWOT analysis to assess the current pig production and market performance of smallholder farms in Swaziland. To quantify SWOT factors, the Analytical Hierarchy Process (AHP) was used to derive priorities for subsequent formulation of potential pig production strategies that are resilient both to market and climate changes. Strategy formulation was based on Porter’s cost leadership strategy. The findings revealed that, currently, the pig industry is attractive, and that the present is probably the best time for smallholder farmers to maximize their profits. Unfortunately, the industry was found to be threatened by the expected increase in production capacity, future market competition, and the socio-environmental challenges associated with expansion. Despite this, the findings suggest that smallholder farmers can survive future market challenges by strategically using agro-industrial by-products as alternative feed ingredients to reduce production cost. The formation of farmers’ associations could benefit smallholder farmers through economies of scale, processing and product value addition, and increased access to markets, and unity could strengthen their position in the market when bargaining for better prices.
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