Economic Performance and Viability of Small-Scale Pig Farms in the Context of the Agro-Food Market

Abstract

Small-scale pig farming plays a crucial role in rural economies by supporting food security, employment, and income diversification. However, these farms face increasing challenges due to rising input costs, market volatility, and competition from industrial producers. This study aims to evaluate the economic performance and viability of small-scale pig farms within the agro-food market. The research is based on a quantitative case study of a representative 100-head pig farm and employs key economic indicators, including total costs, gross margin, net profit, and profitability rate. A cost–benefit analysis and sensitivity analysis were conducted to assess the impact of feed cost fluctuations on farm performance. The results indicate that feed costs represent the dominant component of total production costs (over 60%), making profitability highly sensitive to input price changes. Under baseline conditions, the farm achieves a positive profitability rate of 13.8%, but a 20% increase in feed costs leads to negative economic outcomes. The findings demonstrate the high economic vulnerability of small-scale pig farms to feed price volatility and emphasize the necessity of adaptive cost management strategies and market-oriented diversification. The study concludes that while small-scale pig farms can remain viable, their sustainability depends on cost optimization, market integration, and diversification strategies. Policy support and improved access to short supply chains are essential for enhancing competitiveness in the agro-food sector.