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Here you’ll find resources for planning a new meat processing business or expanding an existing one.  The economics of small-scale meat processing are tough .  It is a capital-intensive, thin-margin, high-risk business.  A solid business plan is absolutely essential in this industry.  There are several links here to help you get started:

Q: How do I write a business plan for a small-scale meat processing facility? Are there sample plans I can look at? What about spreadsheets? 

NMPAN’s Small Meat Processors Business Planning Guidebook

• Small Meat Plant and Marketing Company Business Plan Models
• CISA Tools: Cash Flow Template and Feasibility Template for Small Plants
• Oklahoma State University: Financial Planning Template for a Small Meat Plant

Cost Analysis: Are You Making Money?

Strategies to increase throughput.

• What business structure is right for me?

Q: We want to do a feasibility study for our region.  Has one already been done? Are there examples we can look at? Do we even need our own study? 

Meat Processing Feasibility Studies

Q: I want to hear from other processors about their businesses!

• Meat Processing Planning Webinars

Every business needs a plan, whether you’re just getting started or changing course after many years. This recently updated guide walks you through a basic business plan, from a processor looking to upgrade and expand their facility. It contains detailed financial projections based on 2023 costs and provides suggestions for planning other plant configurations.

PLEASE NOTE: This guide does NOT provide an easy answer to the question of how many head of livestock you need to process at what price to have a “successful” business. There is no one solution. Figure out what it costs you to run the plant, figure out how many head of livestock you can source, and divide costs plus margin by that number of livestock to get your price .

All three variables can be manipulated — increase number of head, decrease costs (start-up and operating), increase prices — but the end result must be a balanced equation. And remember that price feeds back on head, because if you raise prices, demand for your services can go down and vice-versa.

Download the new 2023 Guide here!

Download the 2011 guide here, model plan cash flow template (year 1).

This template (in Excel) contains the year 1 cash flow projections for the sample business plan featured in the guidebook. Not all cost/revenue categories will be applicable to your plans, but this will show you one way to set it up. Read the instructions page first (tab 1 of the workbook). Please note that this template was created in 2011 so the numbers are out of date. Use your own numbers.

Small Meat Plant and Marketing Company Business Plans

This link will take you to a pair of model business plans for a small, USDA-inspected meat processing plant and linked meat marketing company, including a multi-part business and marketing analysis.

The plans describe a plant that provides fee-based slaughter and processing services to livestock producers and manufactures processed meats for sale to wholesale or retail customers. It can harvest and process ~25 to 32 beef cattle per week and a similar amount of hogs and lambs/goats and would employ 7 to 11 full-time workers.

The plans were prepared by Food and Livestock Planning, Inc  in 2011 as part of a project funded by USDA Rural Development to examine processing and marketing options for the South Coast region of Oregon.

CISA Cash Flow Template for a Small Meat Plant

This cash flow template tool , created by Community Involved in Sustaining Agriculture (CISA), can help you develop your own cash flow model and explore business options.

CISA designed the template in 2008 to test the financial feasibility of establishing a small-scale, low-tech, mixed species slaughterhouse and processing facility in Western Massachusetts. CISA partnered with a small group of farmers to estimate cash flow inputs for building or renovating a small-scale slaughter and processing facility. Based on this, they developed a cash flow projection and Profit and Loss Statement, in template format for others to use.

The template, detailed instructions, and the full feasibility study, “Demand and Options for Local Meat Processing,” are on the CISA website .

CISA Feasibility Template for a Small-Scale Meat Processor (cut & wrap only)

This feasibility template was designed to help test the economic viability of establishing a small-scale meat-processing facility. It assumes the facility will not slaughter animals, but will instead receive whole animal carcasses, halves, or quarters, which will then be further processed. This template can provide a quick analysis of a potential business, as well as the relevant criteria to consider. The template, however, should not be the sole tool used in your determination.

The template was developed a part of CISA’s 2013 study on expanding meat processing capacity in Western Massachusetts. You can find the study (and more) here, on CISA’s website .

Oklahoma State University Planning Template for a Small Meat Plant

OSU developed this feasibility template, released in 2012, to guide potential plant operators through financial planning for construction and/or operation of a small, multi-species meat processing facility.  Lead author is Dr. Rodney Holcomb, with assistance from Dr. Phil Kenkel and Mr. Kyle Flynn.

• Template:  http://www.fapc.biz/files/smallmeatplant_feasability.xls
• Instructional Video:  http://www.youtube.com/watch?v=hJcnL0KY864&feature=related

How do you know if you’re making money? And what can you do about it if you’re not? Most small processors (like most small businesses) don’t fully understand why they are or aren’t making money and what they can do about it.  On  this page ,  based on a NMPAN webinar given by  Arion Thiboumery, co-founder of the Niche Meat Processor Assistance Network and a processor himself (Lorentz Meats, Vermont Packinghouse), we introduce systems to help you sort out which activities in your plant are most profitable and which are less profitable. Armed with this financial information, you can make decisions that improve your business’s performance.

Research has shown some strategies for increasing profitability for small and very small plants. These include management policies and improving the retail case. See this article by Nick McCann , formerly of Iowa State University, about research showing that targeted education and training for plants can make a significant difference on their bottom line. McCann, N. (2014). Improving profitability for small and very small meat processors in Iowa. Leopold Center Completed Grant Reports. 471.

Meat processors, like most businesses, work hard to cut costs, hoping to improve their bottom line. But while cost cutting can sometimes improve profits, too often it doesn’t get us very far. So what can? Research with small plants in Iowa indicates that increasing throughput — sales less raw materials — is almost three times more effective at raising profits than cost cutting.

Now, that’s easy to say, but harder to do.  Most folks think it’s impossible to put any more meat through their plant.  Sometimes that’s true. Yet often small changes can significantly improve your  bottom line.

In these short articles , written by Nick McCann with Iowa State University Cooperative Extension, you’ll learn about useful and practical strategies that some small plants have used to increase throughput and profitability.

Business Structure

Different groups around the country have conducted feasibility studies to learn what kind of processing solution makes the most sense for their area and circumstances. Our summaries of selected studies tell you how the studies were done and what they learned. We give contact info for the authors and links to the full reports.

Meat Processing Planning Webinar Archives

To build or not to build: lessons learned from new processing ventures.

Finding a processor that does what you need, when you need it, can be challenging. Building a new facility to meet that need might seem like a good idea. Sometimes it is, but often it isn’t. On this 1-hour webinar, we discuss what works — and what doesn’t work — when building new processing facilities. Our speakers share lessons learned, with real examples from the field.

Building a Small Meat Processing Plant

Thinking about building a new plant? Want to expand your existing plant? Considering getting into the meat processing business? This 1-hour webinar will help you understand the process and the pitfalls of plant design and construction.

Local Meat Processing: Successes and Innovations

Host: National Good Food Network

Local meat and poultry can’t get to market without a processor, but processors are pulled in many directions: Farmers would like more processing options, but the kind of processing needed depends on the market, the regulations are complex, and even with premium-priced meats, the profit margins are slim.

So how can local meat processing survive … and even thrive? On this 90 minute webinar, Lauren Gwin and Arion Thiboumery, co-founders and co-coordinators of the Niche Meat Processor Assistance Network , share the results of their research on this topic, featuring innovations and lessons learned from successful processors around the country.  We also heard from several regional support efforts — in Vermont, New York, and North Carolina — to improve access to local processing.

The Business of Meat Processing: Planning and Profitability

Planning to expand, change, or build a new meat processing business? Trying to figure out how to make your small processing business more profitable? On this 75-minute webinar, business management and planning experts will address these important topics and answer your questions. We will also roll out two new user-friendly guides for small meat processors on planning and profitability.

Many meat processors watch their checkbook balances and hope for the best.  Some wade through P&L statements looking for answers and often come up short.  Most small processors don’t fully understand why they are or aren’t making money and what they can do about it.  This hour-long webinar will teach you how to develop systems that will give you the financial information you need to make decisions that improve your business’ performance.

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How to Write a Butchery Business Plan [Sample Template]

By: Author Tony Martins Ajaero

In South Africa just like in some countries in Africa, it can be truly challenging starting any business, but one business that you can start with little challenges and wide market coverage is a butchery business or better still slaughterhouse business.

If you are considering starting a butchery business in South Africa, the good news is that you can’t get it wrong because various types of animals are consumed by a large number of South Africans. Please note that starting a butchery business in South Africa requires that you secure the necessary permits from regulatory bodies, although some entrepreneurs run this type of business in SA without the required permits.

So, if you have decided to start your own butchery business, then you should ensure that you carry out thorough feasibility studies and market survey, and secure the needed public health and hygiene certificates and permits. This will enable you to properly locate the business in a good location and then hit the ground running.

Business plan is yet another very important business document that you should not take for granted when launching your butchery business. Below is a sample butchery business plan template that can help you to successfully write your own with little or no difficulty.

A Sample Butchery Business Plan Template

1. industry overview.

Butchery business falls under the Meat, Beef & Poultry Processing industry and businesses in this industry basically engage in the slaughtering of livestock to produce red meat. The butchery business also produces fresh or frozen meat as carcasses and cuts, in addition to by-products like rendered lard, tallow, pulled wool, bone, preserve and pack meat. It is important to state businesses that primarily cut and pack meats from purchased carcasses are also part of this industry.

In South Africa, to become a professional butcher, training is essential and short training courses for a minimum of two weeks are available in South Africa. The training of butchery staff is addressed in the R918 ‘Regulations Governing General Hygiene Requirements for Food Premises and the Transport of Food’ of the Health Act, 1977, as well as in the Occupational Health and Safety Act.

Even though meat consumption based on per capita income is expected to remain stagnant in the next half a decade, economic woes before this period aggravated consumption drops.

Because of recovering consumer sentiment, population growth and strong export demand, meat-processing revenue is projected to increase going forward. In spite of the stability of consumer demand for meat-based products, unpredictable weather conditions and disease outbreaks can cause instability in the revenue generated by industry players.

The butchery business in South Africa will continue to blossom because people will always want to purchase fresh meat. Despite the fact that the industry seems over – saturated, there is still room big enough to accommodate aspiring entrepreneurs who intend opening their own butchery business in any part of South Africa.

In South Africa and of course, in all countries of the world, butchers are required to adhere to stringent hygiene regulations and to undertake general cleaning tasks in the meat preparation and serving areas. Professional butchers may require particular skills and knowledge.

If you are looking towards leveraging on the beef, meat and poultry processing industry to generate huge income, then one of your best bet is to start a butchery business. One thing is certain about starting your butchery business, if you are able to conduct your market research and feasibility studies, you are more likely not going to struggle to sell your meat because there are loads of businesses (hotels, caterers and restaurants) and consumers out there who are ready to buy from you.

2. Executive Summary

Durban City® Butchery House, LLC is a registered butchery business that will be involved in the slaughtering and retailing of fresh meat. Our slaughterhouse will be located close to one of the largest residential communities in Durban – KwaZulu-Natal Province. We have been able to lease a warehouse cum storage facility that is big enough to fit into the kind of butchery business that we intend launching and the facility is centrally located in the heart of town with easy delivery network.

Durban City® Butchery House, LLC will be involved in butchering of animals, producing cuts of beef, lamb, pork, other red meats and selling by-products from the slaughtering process to a wide range of customers.

We are aware that there are several butchery businesses all around Durban that are also into meat and beef retailing, which is why we spent time and resources to conduct our feasibility studies and market survey so as to offer much more than our competitors will be offering. We have a robust distribution network, strong online presence and modern storage facilities and we are armed with the various payments options available in South Africa.

Much more than retailing meats, our customer care is going to be second to none in the whole of Durban – KwaZulu-Natal Province and our deliveries will be timely and highly reliable. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they patronize us.

Durban City® Butchery House, LLC will ensure that all our customers are given first class treatment whenever they visit our butchery facility. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large they may grow to. We will ensure that we get our customers involved in the selection of the types of animal to be butchered and also when making some business decisions that will directly affect them.

Durban City® Butchery House, LLC will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Durban City® Butchery House, LLC is a family business that is owned by Eric Zulu and his immediate family members. Eric Zulu is a professional butcher with over 10 years’ experience.

3. Our Products and Services

Durban City® Butchery House, LLC is in the butchery line of business to retail fresh meats and we will ensure that we are involved in butchering a wide range of animals that are consumed in South Africa. Our products and services offerings are listed below;

• Butchering animals
• Producing cuts of beef
• Producing cuts of lamb
• Producing cuts of pork
• Producing cuts of other red meats
• Selling by-products from the slaughtering process.

4. Our Mission and Vision Statement

• Our vision is to become one of the leading brands in the butchery line of business in the whole of Durban – KwaZulu-Natal.
• Our mission is to establish a butchery business that will slaughter and sell a wide range of animals at affordable prices to wholesalers and retailers in and around Durban.

Our Business Structure

Durban City® Butchery House, LLC has no plans to start an unregistered butchery business; our intention of starting a butchery business is to build a standard butchery in Durban – KwaZulu-Natal. We will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business.

We will make sure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all our stake holders. As a matter of fact, profit-sharing arrangement will be made available to all our old staff and it will be based on their performance for a period of ten years or more.

In view of that, we have decided to hire competent hands to occupy the following positions that will be made available at Durban City® Butchery House, LLC;

• Manager (Owner)
• Warehouse/Storage Facility Manager

Merchandize Manager

Sales and Marketing Manager

• Drivers/Distributors

5. Job Roles and Responsibilities

Manager/Owner

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Accountable for fixing prices and signing business deals
• Responsible for providing direction for the business
• Accountable for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Warehouse cum Storage Facility Manager

• Responsible for organizing the safe and efficient receipt, storage and dispatch of slaughtered animals and byproducts
• In charge of planning, coordinating and monitoring the receipt, order assembly and dispatch of slaughtered animals and byproducts
• Responsible for using space and mechanical handling equipment efficiently and making sure quality, budgetary targets and environmental objectives are met
• Responsible for keeping stock control systems up to date and making sure inventories are accurate;
• Ensures that proper records of goods are kept and warehouse does not run out of products
• Ensures that the slaughterhouse facility is in tip top shape and meets the health and safety requirements
• Controls meat, beef and poultry meat distribution and supply inventory
• Supervises the workforce in the butchery floor.
• Manages vendor relations, farm cum market visits, and the ongoing education and development of the organizations’ buying teams
• Responsible for the purchase of cows, goats, pigs, turkeys and chickens et al directly from farmers for the organization
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing orders for vendors
• Ensures that the organization operates within stipulated budget.
• Responsible for butchering animals
• Responsible for cleaning the slaughterhouse before and after butchering of animals
• Handle any other duty as assigned by the manager (owner)
• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps increase sales and growth for the company

Accountant/Cashier

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Distribution Truck Drivers

• Assists in loading and unloading live cows, goats, pigs and birds et al and also slaughtered animals
• Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
• Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment
• Assists the transport and logistics manager in planning their route according to a distribution schedule.
• Local-delivery drivers may be required to sell meat, beef and poultry et al or services to stores and businesses on their route, obtain signatures from recipients and collect cash.
• Inspects vehicles for mechanical items and safety issues and perform preventative maintenance
• Complies with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
• Collects and verifies delivery instructions
• Report defects, accidents or violations

6. SWOT Analysis

Our plan of starting our butchery business in Durban – KwaZulu-Natal is to test run the business for a period of 6 years to know if we will invest more money, expand the business and then open our slaughterhouse in major cities in South Africa.

We are quite aware that there are several butchery businesses all over Durban and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.

Durban City® Butchery House, LLC employed the services of an expert HR and Business Analyst with bias in the meat, beef, and poultry processing industry to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.

This is the summary of the SWOT analysis that was conducted for Durban City® Butchery House, LLC;

Our location, the business model we will be operating on, varieties of payment options, healthy environment, latest butchery equipment and our excellent customer service culture will definitely count as a strong strength for Durban City® Butchery House, LLC. So, also our management team are people who have what it takes to grow a business from startup to profitability with a record time.

One major weakness that may count against us is the fact that we don’t have our cattle ranch and we don’t have the financial capacity to compete with leaders in the industry for now.

• Opportunities:

The fact that we are going to be operating our butchery business in Durban – KwaZulu-Natal which happens to be one of the provinces with high purchasing power provides us with unlimited opportunities to sell our fresh meats to a large number of wholesale distributors and retailers.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our butchery house; we are well positioned to take on the opportunities that will come our way.

Some of the threats and challenges that we are likely going to face when we start our own butchery business are global economic downturn that can impact negatively on household spending, bad weather cum natural disasters, unfavorable government policies and the arrival of a competitor within the same location where we have our butchery house.

7. MARKET ANALYSIS

• Market Trends

In recent time, consumers are become conscious or what they eat especially as it relates to meat. Those advocating for healthy eating are against the consumption of meat especially red meat. With that, it takes extra effort for those in the butchery business to canvass such people to patronize them especially those who are under a nutritionist.

The truth is that slaughtering of animals for food has been in existence for as long as humans started trading goods, but one thing is certain, the meat, beef and poultry processing industry is still evolving. The introduction of technology has indeed helped in reshaping the industry.

It is now a common phenomenon for butchery houses to leverage on technology to effectively predict consumer demand patterns and to strategically position their business to meet their needs; in essence, the use of technology helps businesses like slaughterhouses to maximize supply chain efficiencies.

8. Our Target Market

The meat, beef and poultry processing industry has a wide range of customers; a large chunk of people on planet earth consume different types of meat or poultry products and it is difficult to find people around who don’t.

In view of that, we have positioned our butchery business to serve consumers in and around Durban and every other location we will cover all over KwaZulu-Natal Province. We have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to engage in the sale of freshly butchered meats to the following businesses;

• Restaurants
• Retailers of meat
• Grocery Stores
• Super Markets
• Wholesale Distributors of meats

Our competitive advantage

Durban City® Butchery House, LLC is launching a standard butchery business that will indeed become the preferred choice of consumers, retailers, wholesale distributors, grocery stores and supermarkets et al in Durban – KwaZulu-Natal.

One thing is certain; we will ensure that we have a wide range of freshly butchered meat available in our warehouse facility at all times. One of our business goals is to make Durban City® Butchery House, LLC a one stop butchery. The fact that our output is sold to incorporate long-term sales contracts, and that we enjoy upstream vertical integration (ownership links) and economies of scale gives us an edge over our competitors.

So also, our excellent customer service culture, neat and healthy environment, timely and reliable delivery services, online presence, and various payment options will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Durban City® Butchery House, LLC is in business to engage in slaughtering animals and retailing fresh meats and byproducts. We are in the business to maximize profits and we are going to go all the way out to ensure that we achieve or business goals and objectives. In essence, our source of income will be;

• Selling by-products from the slaughtering process

10. Sales Forecast

The truth is that when it comes to butchery business, if your business is centrally positioned coupled with a reliable supply of healthy animals and good distribution network, you will always attract customers cum sales and that will sure translate to increase in revenue for the business.

We are positioned to take on the available market in Durban – KwaZulu-Natal and we are quite optimistic that we will meet our set target of generating enough income from the first six months of operation and grow the business and our clientele base.

We have been able to critically examine the meat, beef and poultry processing industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Durban – KwaZulu-Natal.

• First Fiscal Year : R300,000
• Second Fiscal Yea r: R650,000
• Third Fiscal Year : R900,000

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and home delivery services as we do within the same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Prior to settling for a location to launch Durban City® Butchery House, LLC, we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice for households, wholesale distributors, retailers, grocery stores and supermarkets in and around Durban – KwaZulu-Natal.

We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.

We hired experts who have good understanding of the industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in and around Durban – KwaZulu-Natal.

In summary, Durban City® Butchery House, LLC will adopt the following sales and marketing approach to win customers over;

• Open our business in a grand style with a party for all
• Introduce our business by sending introductory letters alongside our brochure to households, restaurants, hotels, caterers, BBQ joints, wholesale distributors, retailers, grocery stores, supermarkets and other key stake holders in and around Durban – KwaZulu-Natal
• Ensure that we have a wide range of meat in our butchery business at all times
• Make use of attractive hand bills to create awareness of our business
• Position our signage / flexi banners at strategic places around Durban – KwaZulu-Natal
• Create a loyalty plan that will enable us reward our regular customers

11. Publicity and Advertising Strategy

In spite of the fact that our butchery business is well structured and well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote the business.

Durban City® Butchery House, LLC has a long-term plan of opening distribution channels all around KwaZulu-Natal Province and key cities throughout South Africa which is why we will deliberately build our brand to be well accepted in Durban before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Durban City® Butchery House, LLC;

• Place adverts on community based newspapers, radio and TV stations
• Encourage the use of word of mouth publicity from our loyal customers
• Leverage on the internet and social media platforms like YouTube, Instagram, Facebook, Twitter, LinkedIn, Google+ and other platforms to promote our business.
• Ensure that our we position our banners and billboards in strategic positions all around Durban
• Distribute our fliers and handbills in target areas in and around our neighborhood
• Advertise our butchery business in our official website and employ strategies that will help us pull traffic to the site
• Brand all our distribution vans/trucks and ensure that all our staff members wear our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

Meats are sold in Kilograms in South Africa. Our pricing system is going to be based on what is obtainable in the butchery line of business, we don’t intend to charge more and we don’t intend to charge less than our competitors are charging in South Africa.

Be that as it may, we have put plans in place to offer discounts once in a while and also to reward our loyal customers especially when they refer clients to us or when they purchase over R5000 worth of meat per time. The prices of our meat will be same as what is obtainable in the open market and it will be based on miles covered and time.

• Payment Options

The payment policy adopted by Durban City® Butchery House, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the government of South Africa

Here are the payment options that Durban City® Butchery House, LLC will make available to her clients;

• Payment with cash
• Payment via credit cards / Point of Sale Machines (POS Machines)
• Payment via POS machines
• Payment via online bank transfer
• Payment via check

In view of the above, we have chosen banking platforms that will enable our clients make payment for meat, beef and poultry purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed budget of how to achieve our aim of establishing a standard butchery business in Durban – KwaZulu-Natal. We know that no matter where we intend starting our butchery business, we would be required to fulfill most of the items listed below;

• The total fee for incorporating the business in South Africa – Name reservation application costs R50 and company registration R125
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – R3,300.
• Marketing promotion expenses for the grand opening of Durban City® Butchery House, LLC the amount of R3,000 and as well as flyer printing (2,000 flyers at R0.04 per copy) for the total amount of R3,580.
• The cost for hiring business consultant – R2,500.
• The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – R2,400.
• The cost for payment of rent for 12 months at R1.76 per square feet warehouse facility in the total amount of R120,000
• The total cost for facility remodeling (construction of drainages et al) – R20,000.
• Other start-up expenses including stationery ( R500 ) and phone and utility deposits ( R2,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – R60,000
• The cost for Start-up inventory – R100,000
• Storage hardware (bins, rack, shelves, food case) – R3,720
• The cost for store equipment (cash register, security, ventilation, signage) – R13,750
• The cost of purchase and installation of CCTVs – R5,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – R4,000.
• The cost for the purchase of distribution vans / trucks – R25,000
• The cost of launching a website – R600
• Miscellaneous – R10,000

We would need an estimate of Three hundred and fifty thousand Rand ( R350,000 ) to successfully set up our butchery business in Durban – KwaZulu-Natal.

Generating Startup Capital for Durban City® Butchery House, LLC

Durban City® Butchery House, LLC is a family business that is owned and financed by Eric Zulu and his immediate family members. They do not intend to welcome any external business partners which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

These are the areas we intend generating our startup capital;

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my bank

N.B : We have been able to generate about R100,000 ( Personal savings R80,000 and soft loan from family members R20,000 ) and we are at the final stages of obtaining a loan facility of R150,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Durban City® Butchery House, LLC is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to retail/distribute our meat, beef and poultry a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.

Durban City® Butchery House, LLC will make sure that the right foundations, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit : Completed
• Purchase of Insurance for the Business: Completed
• Leasing of butchery facility and remodeling the facility: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Printing of Packaging Marketing/Promotional Materials: In Progress
• Recruitment of employees: In Progress

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GENERIC ABATTOIR MODEL – UPDATE

As mentioned in our previous quarter’s newsletter, the risks that are associated with the illegal/informal slaughtering of livestock are endless and dangerous to consumers and the environment, as no inspection is performed on the carcasses and there is no adherence to the regulations that govern the slaughtering industry. Farmers are also faced with the risk of selling their livestock to the agents at lower prices.

Financial Analysis

The abattoir business model allows the owner to decide between two methods of operating the business, namely carcass ownership and fee based slaughtering. Both methods have risks associated with them. However, years of experience and training will enable the owner to mitigate the risks, for example that of buying poor quality livestock. The owner must be able to know the quality of the meat he will get from the animals by visual inspection only. Table 1 provides a summary of the financial requirements and the financial projections for the abattoir.

The capital requirement for an abattoir with the capacity to slaughter 10 units is estimated at R4 743 000 excluding VAT. Adding a poultry slaughtering facility at the same premises, but not in the same building, will increase the capital cost to R5 793 600.00. As indicated in Table 1, the estimated profit for the fee based slaughtering is R986 354.00 while the carcass ownership method has the potential to generate a profit of R1 776 561. The carcass ownership method requires a lot of operating capital, as livestock needs to be bought in cash. The advantage with this model is that the abattoir can charge premium prices when selling to the end consumer unlike the fee based slaughtering where no sales to the direct consumer is possible. However, the fee based model returns are also attractive given the fact that no stocking risk is carried and no marketing of the meat occurs. A return on equity of R0.21 for fee based slaughtering and R0.37 for carcass ownership for every R1 is achieved.

To maximize the profits, the owner can introduce poultry slaughtering, which will increase the capital to R5 793 600 and importantly the profit to R2 247 645 for the carcass ownership scenario. On this scenario, the return of equity will increase to R0.39 for every R1 invested.

Due to the risks that are associated with animal slaughtering, the abattoirs are regulated. There are rules and regulations that the abattoir must adhere to to ensure that people and the environment are protected. Compliance to the regulations and laws of the slaughtering industry is the key to the success of the abattoir business. The abattoir should be compliant with the following Acts:

• Animal Health Act, 2002 (Act No. 07 of 2002)
• Health Act, 1977 ( Act No. 63 of 1977)
• Animal Protection, 1962 (Act No. 71 of 1962)
• Fertilizers, farm feeds, Agricultural Remedies and Stock Remedies Act, 1947 (Act No. 36 of 1947)
• Occupational Health and Safety Act , 1983 (Act No. 3 of 1983)
• Atmosphere Pollution Prevention Act, 1965 (Act No.45 of 1965
• Agricultural Products Standards Act, 1990 (Act No. 119 of 1990)
• Stock Theft Act, 1959 (Act No. 57 of 1959)
• Meat and Safety Act, 2000 (Act No. 40 of 2000)
• National Environmental Management Act, 1998 (Act No. 107 of 1998)
• General Hygiene Requirements for Food Premises and the Transport of Food
• R918 of 1999.
• National Water Act 1998 (Act No. 36 of 1998)

Other compliance for abattoir include:

• All the buildings should be approved by the municipality
• The plans and layout must be approved by the Department of Agriculture
• Necessary stamps and roller mark to be obtained to identify species
• Registration with the Department of Agriculture for unique identity number

An environmental impact assessment authorization is a requirement as well as a waste license.

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Starting Cattle Fattening Business Plan (PDF)

Cattle fattening is a very profitable business, and many people are making money all over the world by starting cattle feedlot business. Cattle pen fattening involves the feeding of beef cattle with a protein balanced, high-energy diet for a period of 90 days under confinement to increase live weights and improve degree of finish and thus obtain better grades at the abattoir. Beef cattle fattening enables the cattle to express fully their genetic potential for growth. Cattle fattening is not only a lucrative business but also plays a vital role in meeting the ever-growing global demand for high-quality beef. As populations continue to rise, particularly in urban areas, the demand for beef as a primary source of protein remains strong. This presents a golden opportunity for aspiring cattle farmers to step into the industry and contribute to the supply of premium-quality beef products.

To build a successful, sustainable cattle fattening livestock business, you require sufficient knowledge of how to efficiently do cattle pen fattening i.e cattle fattening techniques, good management skills, and a good cattle feedlot business plan. This article will outline how to start cattle fattening business, and the cattle pen fattening business plan-PDF, Word, Excel.

Note that this article and business plan is about cattle fattening.  We also have articles and business plans for

Beef Cattle Farming/Ranching/Breeding Business  

Dairy Farming Business

Click the links above to go to the articles and business plans. 

Market Research

Market research is a pivotal step in the journey of starting a cattle fattening business. As an integral part of market research, selecting the appropriate cattle breed is a critical decision that hinges on various factors. Researching the suitability of different breeds is imperative, taking into account factors such as the availability of specific breeds in your region, their feed conversion efficiency, the cost to acquire them, and alignment with market demands. Each breed comes with its unique characteristics, and the choice must be made strategically to optimize profitability and meet consumer preferences. Assessing your supply chain is critical. Consider the availability and cost of inputs such as cattle feed, veterinary services, and transportation. A reliable supply chain is fundamental to the success of your cattle fattening operation, ensuring a consistent and cost-effective production process.

Comprehending the pricing dynamics of various beef grades within your target market is pivotal. This entails delving into the pricing structures of different grades of beef, discerning the preferences of potential customers, and recognizing the seasonality of cattle and beef prices. By gaining insights into these aspects, you can fine-tune your pricing strategy to align with market expectations, cater to specific consumer preferences, and navigate the fluctuations in cattle and beef prices effectively. Market research should also encompass economic feasibility. Calculate your initial investment requirements and estimate operating expenses. Develop financial projections to determine the profitability of your venture. This financial insight will not only aid in securing funding but also guide decisions regarding the scale and scope of your cattle fattening business.

Cattle Fattening Business Model

The cattle fattening business model is a structured approach that revolves around the purchase, management, and strategic feeding of cattle to enhance their weight and beef quality over a 90-day period. This meticulous process serves as the cornerstone for generating profits in this business. As the cattle undergo this feeding regimen, they experience a substantial increase in both weight and grade, resulting in higher-value beef. The crux of profitability lies in the fact that the revenue derived from selling these well-fattened cattle significantly surpasses the initial costs of purchasing the livestock, along with the expenses incurred for feeding and operational needs. This substantial revenue surplus serves as the primary source of profit, and by repeating this cycle consistently throughout the year, cattle farmers can ensure a steady and reliable stream of income.

By adhering to this cattle fattening model, farmers can harness the economic potential of efficiently converting cattle into high-quality beef. The 90-day timeframe allows for a well-defined production cycle, which aids in managing costs, optimizing resources, and ensuring a consistent supply of market-ready cattle. This business model not only offers a lucrative opportunity for farmers but also contributes to meeting the ever-growing demand for premium beef products, making it a compelling and sustainable venture within the agricultural sector.

Land For Cattle Fattening

The decision of where to locate your cattle feedlots is very important so as to ensure economic viability of the cattle fattening business. Important factors to consider when choosing land for your cattle feedlot business include : availability of cheap labour, proximity to market & to sources of feed, prevailing climatic conditions as well as good road networks. Other factors to consider include : the land should be suitable for construction of cattle feedlots, availability of water supply, low risk of flooding or veld fire and it should be a distance away from residential or industrials areas to avoid causing noise and dust pollution to those areas. The recommended land for cattle feedlots should have a slope of 2-5%, and the soil with 25% or more clay is better as compared to sand. There should be a reliable source of clean water that can be used for both human and cattle consumption. Possible water sources for the cattle feedlot farm include boreholes, rivers and dams. In case of inadequate water source, water tanks can be installed.

Cattle Feedlot Housing

The cattle feedlot business model requires keeping and raising the cattle in confined areas. Feed and water is brought to the cattle rather than the cattle grazing or seeking pasture. Feedlots are actually concentrated cattle feeding operations. The cattle feedlot pens are confined yard areas where the cattle are completely hand or mechanically fed for the purpose of beef fattening. The reason why the cattle are fed under confinement is to prevent loss of energy through movement. Cattle feedlot housing should have the following features : protect the cattle against adverse weather conditions, offer easy access to water & feed, allow efficient collection of cattle manure, offer freedom of cattle movement and provide natural ventilation and lighting. The feedlot pens can be constructed using timber frames. Cattle feedlots housing are usually open sided.  The cattle fattening pens should allocate 5-10 square meters per each cattle. The floors of the cattle fattening pens should be smooth and not slippery. Roofing is usually not necessary except to cover feeding equipment so as to prevent the feed from getting wet when its raining. The costs of constructing the cattle pens should be included in the cattle pen fattening business plan.

Equipment for Cattle Fattening Business

Essential equipment for cattle pen fattening operations include feeding equipment and drinking equipment. Feeding equipment may be fixed inbuilt within the cattle pen structure. They can also be in the form of self-feeders which can be moved around within the pens. Self-feeders are usually more suitable for small cattle fattening operations.  Large commercial feedlot operations use feed bunks/feed troughs which are fixed and inbuilt close to the edge of the cattle pens. The feed troughs usually run the entire length of the cattle pen to provide easy access to food. Similarly, cattle drinking equipment may also be in the form of movable drinkers, or it can be in the form of fixed inbuilt water troughs at the edge of cattle pens. Whichever type of equipment that you use, you should ensure that the equipment provides easy access of water and feed to the cattle. The cattle feedlot business plan should include the costs of the required equipment.

Selecting Cattle for Fattening

You need the cattle to feed in order to start cattle beef fattening business. There are two options, either you use cattle from your own herd, or you purchase the cattle from other farmers. You have to be careful when buying cattle to use for cattle pen fattening. If you choose cattle which are not suitable for feedlot fattening, you will be in a financial loss before you even start the cattle feedlot operation. Important factors to consider when choosing cattle for fattening include : breed of cattle, age, gender and maturity type. Some breeds of cattle are more suitable for cattle pen fattening as compared to others – this is because those cattle breeds gain more weight faster with less feed. Some of the popular cattle breeds used for cattle feedlot fattening include the Brahman, Angus, Limousin and Hereford among others. Native cattle breeds can also be used successfully for cattle feedlot fattening. Money to buy cattle must be available at all times. A lack of funds to buy the cattle for beef fattening when prices are favorable is a lost opportunity to make a profit. Your cattle feedlot business plan should cater for money for buying the cattle.

Feed And Nutrition

It’s very essential that you give the right quantity and type of feed to your cattle. The success of your cattle fattening business depends on the ability of the cattle to gain weight and to produce high quality beef. These factors are affected by the quality and quantity of feed. The proper feeding techniques will ensure that the cattle will grow and utilize the feed efficiently and produce good quality beef.  This will maximize your profits of the cattle fattening farming business. Failing to properly feed the cattle will lead to losses. The losses will be due to failure to meet the target slaughter weights and beef quality grade.

There are companies which sell cattle fattening stock feeds. These are complete, balanced feeds, which are designed for fattening cattle in feedlots over 90 days. The stock feeds are high energy fattening meals which contain all the nutrients necessary for ad lib cattle pen fattening. You can also make your own home made cattle beef fattening feeds. The amount of feed consumed by the cattle daily will depend on factors such as live weight and age of the cattle. Normally, it averages between 8-15kg per head per day or 3.4% of a steer’s live mass per day. The average daily weight gain at 350Kg live mass is about 1.6Kg.

When you sell your cattle to the abattoir or butcher, they will slaughter it and grade the beef according to its quality. Beef is graded in two ways: quality grades for tenderness, juiciness and flavor; and yield grades for the amount of usable lean meat on the carcass. After fattening cattle in feedlots for 90 days, its beef should fetch the highest quality grade. This grade is usually called Prime beef or Super beef. This is the beef which fetches the highest price on the market. The purpose of cattle fattening is to increase the weight of the cattle over 90 days (more weight, more money when you sell) and to increase the quality of the beef (higher grade of beef, more money when you sell).

Health & Disease Management

Health and disease management is a paramount aspect of running a successful cattle fattening business. Ensuring the well-being of your cattle not only promotes their growth and overall performance but also safeguards your investment. Regular health checks and preventive measures are essential to mitigate the risks associated with diseases that can adversely affect your herd. This includes vaccinations, deworming, and providing proper nutrition to boost their immune systems. Additionally, maintaining a clean and well-ventilated environment in the feedlots is crucial to minimize stress and the spread of diseases among the cattle.

In the event of illness outbreaks, prompt diagnosis and treatment are imperative. Collaborating with a veterinarian who specializes in cattle health is advisable, as they can provide guidance on disease prevention and management strategies. Moreover, implementing a robust biosecurity protocol can help prevent the introduction of diseases to your herd, further ensuring the health and productivity of your cattle. A proactive approach to health and disease management not only safeguards your cattle but also contributes to the reputation and long-term success of your cattle fattening business within the industry.

Management and Labour

You need farm workers who will be responsible for taking care of the cattle. Their duties include : feeding the cattle, monitoring the health of the cattle, cleaning the cattle feedlot pens, carrying out maintenance work at the cattle farm, providing medical care to the cattle where necessary, maintaining accurate cattle records and other cattle farm duties. The number of required farm makers will depend on the size of the feedlot. For large cattle feedlots, full time sales, marketing, accounting and security staff may be required.  There is need for good technical knowledge of cattle fattening techniques for success in the feedlot business, and good management skills. You need to understand the techniques of effectively raising cattle for beef. Some farmers don’t take farming as a business, thus they will never be successful, as they don’t properly manage it.

Capital for Cattle Feedlot Business

You obviously require money in order to start the cattle feedlot business. The capital that you need to start the cattle fattening business will depend on the size of your feedlot operation. Obviously a 500 head cattle feedlot operation will  require significant capital as compared to a 20 head cattle fattening business. The major expenses when starting a cattle fattening business are feedlot construction costs, costs of purchasing the cattle to fatten as well as stock feed costs. There are various source of funds to use for starting this business, they include loans from banks, money from your savings, government grants and well as investment from equity investors.  If you plan to raise capital from investors or to apply for a loan from the banks, then you need a good cattle fattening project proposal. Don’t have access to capital? Start small, and grow your cattle fattening business overtime! The feedlot business is very profitable, so if you reinvest the profits you get, you can quickly grow your business. You will require a good cattle fattening business plan to guide you in your feedlot business.

The market for beef is very huge and is ever increasing. The annual global demand of beef is 75 million tonnes. That’s a lot! You can supply your cattle/beef to individual households, butchers, auctions, farmers, schools, restaurants, companies, supermarkets, organizations, events, abattoirs etc. You can sell your cattle as live cattle or you can slaughter and sell the beef.

The export market for beef is also very huge! As you grow your business you will be able to export the beef to other countries.  The largest importers of beef are Russia, United States of America, Japan, China, South Korea, European Union, Hong Kong, Egypt, Canada, Chile and Malaysia. Currently, the top producers of beef are United States of America, Brazil, European Union, China, India, Argentina, Australia, Mexico, Pakistan, Turkey and Russia.

Profitability of Cattle Fattening Business

Cattle beef fattening is very profitable when done the right way. The profitability of the cattle fattening farming business depends on the buying price of the cattle, cost of the feed, price margin, feed margin, feed conversion efficiency ratio, unit cost per KG when selling.  It is important that you understand the mentioned margins and conversion ratios before you start this livestock business.

When you understand these margins and ratios, then you can easily calculate how much profit you will get buy buying and fattening the cattle at a specific price. Thus you will make an informed decision of whether the price at which you are buying the cattle for is profitable for beef fattening purposes.  The maximum price payable for the cattle must be calculated before you start the beef fattening business. It is easy to make a financial loss before fattening even starts by paying too much for the cattle. All those factors are clearly explained in our cattle fattening farming business plan.

Advantages of Cattle Fattening Business

The cattle fattening business offers a host of compelling advantages that make it an attractive venture within the agricultural sector. Foremost among these benefits is the potential for lucrative returns. By efficiently converting purchased cattle into higher-value beef over a relatively short period, farmers can realize substantial profits. The revenue generated from selling well-fattened cattle surpasses the initial purchase and operational costs, making it a financially rewarding endeavor. This profitability is particularly appealing for those seeking a sustainable and profitable agricultural business.

Moreover, cattle fattening follows a predictable production cycle, typically lasting around 90 days. This predictability allows farmers to plan and manage resources effectively, from feed procurement to marketing strategies. The cyclic nature of the business ensures a consistent stream of income throughout the year, providing financial stability and reducing the uncertainties often associated with agriculture.

Additionally, the global demand for high-quality beef remains strong, making the cattle fattening business strategically advantageous. As populations grow and consumer preferences evolve, the need for premium beef products continues to rise. Farmers can tap into this demand by producing well-fattened cattle that meet market requirements and command competitive prices. This not only contributes to financial success but also positions the cattle fattening business as a key player in ensuring food security by supplying a consistent and readily available source of high-quality protein, making a positive impact on local and regional food systems.

Why You Need A Cattle Fattening Business Plan

A well-structured and comprehensive business plan is an indispensable tool for anyone looking to venture into the cattle fattening business. It serves as a roadmap that outlines your business objectives, strategies, and the necessary steps to achieve your goals. This clarity of purpose helps you stay focused and ensures that every decision you make aligns with your long-term vision for the business.

Moreover, a business plan includes detailed financial projections, including startup costs, operating expenses, revenue forecasts, and potential sources of funding. One of the primary roles of a business plan is to help entrepreneurs calculate the potential return on their investment. It outlines the expected revenue generated from the sale of fattened cattle and compares it to the total costs involved in purchasing, feeding, and managing the cattle. This comprehensive financial analysis allows prospective cattle farmers to gauge whether the business is likely to be profitable and, if so, the magnitude of the expected profit. This financial information is crucial for understanding the financial feasibility of your business and securing investment if needed.

Additionally, a well-constructed business plan helps you identify potential risks and challenges that may arise during the course of your cattle fattening operations. By recognizing these risks upfront, you can develop strategies to mitigate them, enhancing the resilience and sustainability of your business. Your business plan also serves as a guide for day-to-day operations, outlining the procedures and processes necessary for the successful management of your cattle, including feeding, healthcare, and record-keeping. It ensures consistency and efficiency in your operations, laying the foundation for long-term success.

Whether you plan to seek financing from investors or lenders or are simply looking to manage your cattle fattening business effectively, a well-prepared business plan demonstrates your commitment and professionalism. It instills confidence in potential stakeholders by showcasing your understanding of the industry and your ability to navigate and thrive in the cattle fattening business.

Pre-Written Cattle Fattening Farming Business Plan – PDF, Word And Excel: Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements

For an in-depth analysis of the cattle fattening farming business, we encourage you to purchase our well-researched and comprehensive cattle fattening  business plan. We introduced the cattle fattening business plan after discovering that many were venturing into the cattle fattening farming business without enough knowledge and understanding of how to run the business, how to keep the cattle, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.

The StartupBiz Global business plan will make it easier for you to launch and run your cattle fattening business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the cattle beef fattening business.

Uses of the Cattle Fattening Business Plan – PDF, Word And Excel

The Cattle fattening business plan can be used for many purposes including:

• Raising capital from investors/friends/relatives
• Applying for a bank loan
• Start-up guide to launch your cattle fattening farming business
• As a cattle fattening project proposal
• Assessing profitability of the cattle fattening business
• Finding a business partner
• Assessing the initial start-up costs so that you know how much to save
• Manual for current business owners to help in business and strategy formulation

Contents of the Cattle Fattening Business Plan – PDF, Word And Excel

The business plan include, but not limited to:

• Marketing Strategy
• Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
• Risk Analysis
• SWOT & PEST Analysis
• Industry Analysis
• Market Analysis
• Operational Requirements (Including technical aspects of how to raise beef cattle, feed requirements etc)
• Operational Strategy
• Why some people in cattle fattening business fail, so that you can avoid their mistakes
• Ways to raise capital to start your cattle fattening business

The Pre-written Cattle Fattening Business Plan package consist of 4 files

• Cattle Fattening Business Plan – PDF file (Comprehensive Version – 77 Pages)
• Cattle Fattening Business Plan – Editable Word File (Comprehensive Version – 77 Pages)
• Cattle Fattening Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 45 pages)
• Cattle Fattening Business Plan Automated Financial Statements – (Editable Excel File)

The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the number of cattle, selling price of  the beef etc, and all the other financial statements will automatically adjust to reflect the change.

Click below to download the Contents Page of the Cattle fattening Business Plan (PDF)

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I purchased a business plan from you, and I’m glad to inform you that I was able to get my loan, and I’m starting my poultry farming business on the 1 st of July. This was made possible because of your business plan. Thank you very much, you made my dream come true.

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I was able to understand the business side of farming because of your business plan. You did extensive research; the business plan was well prepared and fully detailed.  It made everything clear, and I have somewhere to start now. I am confident that I am going to succeed in my business because of the guidance from your business plan.

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Get the Cattle Fattening Business Plan - PDF, Word And Excel

Click Buy Now  below to purchase using Paypal, Credit Card, or Debit Card. After you have purchased, you will immediately see the download link for the business plan package on the screen. You will also immediately get an email with the business plan download link. The Pre-written business plan package (PDF, Word, and Excel) costs $30 only!

If you want to purchase multiple business plans at once then click here: Business Plans Store.

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.

Cattle Fattening Business Frequently Asked Questions

What is needed for cattle fattening.

Three most important things required for cattle fattening business are cattle, feed and market. You start with beef cattle that you feed under confinement over a period of 90 days after which you sell them to the market. A good cattle fattening business plan is also required before venturing into this business.

What cattle business is most profitable?

Cattle fattening business is more profitable than other types of cattle businesses like cattle ranching, cattle breeding and dairy cattle farming. Cattle fattening also brings returns quicker as it is done over a period of 90 days.

How long does it take to fatten a cow?

When doing intensive cattle fattening, it takes up to 90 days to fatten a cow. However it may take upto a year to fatten a cow when you are doing cattle ranching whereby the cattle will be grazing.

What breed of cattle gain weight the fastest?

Pure breeds of beef cattle are the ones which gain weight the fastest. Some examples of good breeds for cattle fattening include Brahman, Angus, Shorthorns, Limousin, Beefmaster and Hereford among others. Native cattle breeds can also be used successfully for cattle feedlot fattening.

How much space do feedlot cattle need?

Feedlot cattle need 5-10 square metres per head. This space ensures that the cattle have freedom of movement and enables easy access to feed and water. Feedlot cattle should not be crowded in a small space as that is not good for their health and growth.

Are feedlots profitable?

Cattle fattening feedlot is a very profitable business with a quick return to investment. You will start getting profits from the cattle fattening business after only 90 days. However to be profitable in the feedlot business, you should choose the right type of cattle, adequately feed the cattle with affordable feed, and have a ready market which offers good prices. It’s also important that you get a good feedlot business plan so that you understand factors which affect the profitability of the cattle fattening business.

What are the advantages of cattle fattening business?

One of the major advantages of cattle fattening business is that you get money quickly – after only 3 months, unlike for cattle breeding where you have to wait for 1 year to start making money. Cattle fattening also require less space as the cattle won’t be grazing, they will be housed all the time.

What is the business model of cattle fattening?

The business model of cattle fattening involves purchasing cattle and feeding them over a period of 90 days, thereby increasing the beef grade of the cattle and weight of the cattle thus producing profits at the time of the sale. This is a very straight forward business model which just requires adequate knowledge of cattle fattening techniques.

Where do feedlots get their feed?

Feedlots can either use commercial stock feeds purchased from stock feed suppliers or farm-made feeds which they make on their own. For large scale feedlot operations, farm made feed is usually cheaper, but it requires adequate feed making knowledge so as to ensure that the cattle get all the required nutrients.

How much do feedlot cattle gain per day?

The weight gained by feedlot cattle depends on the amount of feed given and the feed-conversion ratio. The feedlot cattle daily weight gain is usually between 1.2Kg – 1.8Kg.

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When should ranchers start tax planning.

Does it seem too early to start planning for taxes?

Even though calves await weaning, and crops still stand in the fields, September and October are excellent times to meet with your tax accountant and start looking ahead for tax purposes.

Pre-tax planning allows producers to plan for upcoming income and expenses. Make or hold off on major equipment purchases, sell or wait to sell livestock and crops—pre-tax planning will help avoid unforeseen tax implications of your decisions.

What should you do when planning a pre-tax meeting with your tax accountant?

• Start early . Set an appointment with your accountant. September and October will allow for time to make end-of-the-year decisions. Planning in advance is an advantage for cattle producers, where livestock are not as easy as crops to sell quickly, if needed, and sale checks are sometimes larger. 
• Come prepared . Get your books up to date and bring these to your pre-tax meeting. Email your tax accountant any reports for the year. Electronic bookkeeping programs, like Quickbooks and Quicken, have templates for reports, or you can create a custom report, and share information in Excel or PDF form.
• Look ahead . What are estimated future expenses? Will any additional income come in before December 31? 
• Did you purchase or trade any equipment? Bring the purchase agreements/trade papers for this year’s equipment purchases.

After reviewing the numbers, if your operation has a surplus, what sound business decisions can you make with the profit?

• Estate and transition planning for your operation. Some of your attorney’s fees may qualify as tax-deductible expenses.
• Maintenance and repairs. Schedule a time before the end of the year to repair equipment, buildings, pivots, or make land improvements, such as fence, new tanks or stock wells, or control invasive species.
• Pay down debt, with a plan. According to Tina Barrett, Executive Director of the Nebraska Farm Business Inc, “excess funds are tricky.”  To have extra cash to pay down debt, you need taxable income. “But if someone takes $100,000 and pays down a land note, they may get to the end of the year and realize their taxable income is $100,000 higher than usual. It is not a pleasant surprise, when there is no money to pay expenses,” explains Barrett.  Every situation is different, so ask your accountant about your position.
• Do not spend money on tax deductible expenses, just to reduce tax payments. “If you didn’t spend that $100,000 on stuff that’s not needed, and if instead, you could have spent $30,000 on taxes and $70,000 to reduce debt you would be further ahead financially,” Barrett comments. Again, each tax situation is unique, so ask what works best for your operation.

Ask your accountant how hard it has become, or if it’s still a good plan, to try and meet the March 1 deadline to submit taxes for agricultural producers. An alternative is to make an estimate by January 15, pay the estimate, then producers have until April 15 to file and pay the difference. This can be beneficial with late information, or if income is higher this year than the previous year.

With weaning and harvest around the corner, take the time to prepare and set up a pre-tax planning appointment with your tax account.

For financial planning, budget and decision-making tools, check out our beef producer toolbox . 

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