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CATTLE FATTENING BUSINESS PLAN

I would like to start a new beef cattle so that I need some valid information.

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Hamdi H Mayulu

Livestock is an integral part of agriculture which significantly contributes to the economic and socio-economic development. Based on its potential in natural resources and human resources, East Kalimantan Province has opportunity to become a beef cattle development area. The development of a corporate-based beef cattle breeding area is an approach which taken toward industrial and business-oriented beef cattle breeding. The concept of breeder corporation will create new strengths such as strengths in human resources, capital, and banking in business development, which can more open the opportunities for the success and growth of the breeder's business. The development of a corporate-based beef cattle breeding area provides opportunities, including: 1) improving the competitiveness and added value of the region and beef cattle commodities in order to support national sustainable food security; 2) strengthening the livestock business system in one area management in a holistic ma...

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The purpose of this study was to determine the development strategy of beef cattle fattening as an effort growing an entrepreneur in Indonesia. The research was conducted in District Boyolali, Central Java, Indonesia in August to September 2016. Methods of data collection techniques do with literature study, observation, interviews and focus group discussions. Design research using descriptive analysis. Data were analyzed using SWOT analysis. SO were in cooperation with other agencies / departments involved in the development of feed processing technologies by utilizing the availability of land and agricultural wastes, in cooperation with the local government to expand the marketing network linked to the demand for beef pieces that continue to increase and improved knowledge of farmers in the development of beef cattle. WO were implement educational programs, training and demonstration plots to improve the skills of farmers and foster the entrepreneurial spirit, feed processing tech...

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Cattle Fattening Farm: A Business Opportunity

By: Fazal Jawad Seyyed, Hafsa Ashfaq

The case is based on the feasibility analysis of a feedlot fattening farm. Tariq Ahmad's eldest son, Faisal Ahmad, was looking into the prospects of setting up a cattle fattening farm near their…

Length: 9 page(s)
Publication Date: Dec 1, 2017
Discipline: Finance
Product #: LCA026-PDF-ENG

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The case is based on the feasibility analysis of a feedlot fattening farm. Tariq Ahmad's eldest son, Faisal Ahmad, was looking into the prospects of setting up a cattle fattening farm near their 200-acre family farm in a village in Tehsil Depalpur, Punjab. At the end of January 2016, the market prices of potato crops had collapsed at the time of harvest with an abundant supply of stocked potatoes in the domestic market. Tariq was worried about the shrinking margins in crop farming and asked Faisal to explore other opportunities within the agriculture sector to initiate an alternative source of income for the family. Faisal was attracted to the idea of setting up a feedlot - an emerging phenomenon in the beef sector in Pakistan that had gained traction over the years. Tariq encouraged Faisal to carefully assess the financial viability and risks associated with setting up a cattle fattening farm as a potential venture. By mid-February 2016, the situation in the domestic potato market had worsened, despite government efforts to facilitate exports. While Faisal was gathering the required data and information, he heard that the farmer who held the plot adjacent to Tariq Ahmad's family farm was selling his entire holding of 10 acres. Tariq and Faisal now had the option to either go for the feedlot or acquire additional land from the neighbour.

Learning Objectives

The case will introduce students in introductory finance courses to:

Learn about the challenges faced by the beef sector in Pakistan.

Assess the current situation and potential of feedlot fattening.

Understand the various costs involved in setting up a cattle fattening farm.

Estimate the cash flows provided by the fattening farm venture at different time periods.

Incorporate the effect of time value of money and apply capital budgeting techniques to assess viability.

Perform sensitivity analysis for the key variables, primarily feed costs.

Dec 1, 2017

Discipline:

Geographies:

Industries:

Agriculture sector

Lahore University of Management Sciences

LCA026-PDF-ENG

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Feedlot Business Plan Sample PDF Example | Free Download Presented by BizMove

Watch This Video Before Starting Your Feedlot Business Plan PDF!

Checklist for Starting a Feedlot Business: Essential Ingredients for Success

If you are thinking about going into business, it is imperative that you watch this video first! it will take you by the hand and walk you through each and every phase of starting a business. It features all the essential aspects you must consider BEFORE you start a Feedlot business. This will allow you to predict problems before they happen and keep you from losing your shirt on dog business ideas. Ignore it at your own peril!

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Calculating Break-even for a Given Profit

C: We can find out what kind of sales B-E needed to make a profit using the formula again. Leaving the other figures the same, let's put in a modest profit - say, 9,000 - and see what sales they needed. The formula now looks like this:

Sales = Fixed Expenses + Variable Costs + Profit.

M: You just add the desired amount of profit in?

C: Yes, really it affects the break-even point just like a fixed expense:

S = 19,200 + .70S + 9,000 (desired profit)

10S = 192,000 + 7S + 90,000 (multiple by 10 to eliminate fraction)

3S = 282,000

M: May I check the figures this time?

C: Certainly.

M: All right, let's see:

C: Convinced?

M: Yes, I can see how this formula can help you find how much you need to sell to break even or make a given profit, but what about my problem?

Break-even Analysis for Planning

C: Break-even analysis is just what you need. It's primarily a planning tool. I've looked at your Income Statement and divided it into fixed and variable costs. As I see it, your cost of sales, which we'll consider as your total variable costs, comes to about 60 percent of sales. Your fixed expenses ran about 60,000. So for last year:

S = 60,000 + .60S

10S = 600,000 + 6S

4S = 600,000

You had to sell only 150,000 worth of merchandise to break even.

M: As you can see, I sold 200,000 worth, but I didn't make a 50,000 profit.

C: Right, you made a 20,000 profit just as the bottom line indicates. Remember, you still had those variable costs on sales even after all of your fixed expenses were covered at the 150,000 level.

M: Oh, I see, it's like this:

S = F + V + Profit

S = 60,000 + .60S = 20,000

10S = 600,000 + 6S + 200,000

4S = 800,000

S = 200,000

C: Now you've got it. Let's consider your expansion question. How much will your rent increase?

Using Break-even Analysis to Examine Expansion Feasibility

M: It would be about 5,000 more. I figure the utilities for the larger space will be 2,000 more than I paid last year. Taxes, the "fixed" ones, I expect to run about 500, I also think I may need to hire another sales person.

C: Let's say you do. What do you plan to pay?

M: I'd pay an experienced sales clerk about 9,000. I'm toying with the idea of instituting a 2 percent commission on sales as an incentive,too.

C: All right. We know it's not as simple as we'll lay it out, but I think the analysis will give you an idea of whether or not to explore the expansion idea more carefully and in greater detail.

M: Fine

C: Your fixed expenses will rise by 17,500, if you include hiring another employee. That brings them to 77,500, assuming no other increases from last year's 60,000. For simplicity's sake let's assume your cost of sales (your variable costs) will increase only by the 2 percent commission. That means 62 percent of sales for variable costs. so:

S = 77,500 + .62S

100S = 7,774,000 + 62S (multiplied by 100 to eliminate fraction)

38S = 7,775,000

S = 205,000 (approximately)

M: Only 5,000 more than I did last year? I can do that easily.

C: And be 20,000 in profits worse off than last year. Let's put last year's 20,000 profit in - in an expansion you still might want to do at least as well:

S = 77,500 + .62S + 22,000

100S = 7,750,000 + 62S + 2,000,000

38S = 9,750,000

S = 257,000 (approximately)

M: Hm, that's approximately a 25 percent sales increase just to make the same profit as last year.

Business Judgment Still Necessary

C: Do you think you can boost sales by that much? Perhaps you see long range benefits from expansion that justify sacrificing some profit for the short run.

M: I'm not sure. I'll have to give it more thought, look at the trends in my business and in this area. My pricing policy may need adjustment. Maybe I can cut costs. But now at least I've got a starting point, a dollar figure I can work with and from. Most importantly of all, I have a technique to help me attack my problem and help point me toward a rational decision.

C: That's what break-even analysis is all about.

Pricing Policies

A word of caution is in order regarding the popular but misunderstood pricing method known as retailers mark-up. Retail mark-up means the amount added to the price of an item to arrive at the retail sales price, either in dollars or as a percentage of the cost.

For example, if a single item costing $8.00 is sold for $12.00 it carries a mark-up of $4.00 or 50 percent. If a group of items costing $6,000 is offered for $10,000, the mark-up is $4,000 or 66.33 percent. While in these illustrations the mark-up percentage appears generally to equal the gross margin percentages, the mark-up is not the same as the gross margin. Adding mark-up to the price merely to simplify pricing will almost always adversely affect profitability.

To demonstrate, assume a manager determines from past records that the business's operating expenses average 29 percent of sales. She decides that she is entitled to a profit of 3 percent. So she prices her goods at a 32 percent gross margin, in order to earn a 3 percent profit after all operating expenses are paid. What she fails to realize, however, is that once the goods are displayed, some may be lost through pilferage. Others may have to be marked down later in order to sell them, or employees may purchase some of them at a discount. Therefore, the total reductions (mark-downs, shortages, discounts) in the sales price realized from selling all the inventory actually add up to an annual average of six percent of total sales. To correctly calculate the necessary mark-up required to yield a 32 percent gross margin, these reductions to inventory must be anticipated and added into its selling price. Using the formula:

To obtain the desired gross margin of 32 percent, therefore, the retailer must initially mark up his inventory by nearly 36 percent.

Pricing Policies and Profitability Goals

Break-Even Analysis and Return on Investment, discussed earlier in this section, should be reviewed at this time. Remember, all costs (direct and indirect), the break-even point, desired profit, and the methods of calculating sales price from these factors must be thoroughly studied when you establish pricing policies and profitability goals. They should be understood before you offer items for sale because an omission or error in these calculations could make the difference between success and failure.

Selling Strategy

Proper product pricing is only one facet of overall planning for profitability. A second major factor to be determined once costs, break-even point, and profitability goals have been analyzed, is the selling strategy. Three sales planning approaches are used (often concurrently) by businesses to develop final pricing policies, as they strive to compete successfully.

In the first, employed as a short-term strategy in the earliest stages of a business, the owner/manager sells products at such low prices that the business only breaks even (no profit), while trying to attract future steady customers. As volume grows, the owner/manager gradually builds in the profit margin necessary to achieve the targeted Return on Investment.

Evaluate your budget periodically with actual operations figures. With effective records you can accomplish this. Then, where discrepancies show up it is possible to take corrective action before it is too late. The proper decisions for the ideal corrective action will depend upon your understanding of management techniques in purchasing, pricing, selling, selecting and training staff, and handling other management issues. You're thinking you are able to hire a bookkeeper or an Accountant to handle the record keeping for you. Yes, you can. But remember two very important facts: 1. Provide the accountant with true input. If you buy something And do not record the sum in your business checkbook, the accountant can not enter it. Should you sell something for money and don't record it, then the accountant won't understand about it. The records the accountant prepares will probably be no greater than the info that you provide. 2. Utilize the documents to make decisions. If you moved to a physician And he told you you were sick and needed certain medication to get well, you would follow his guidance. Should you pay an accountant and he tells you that your earnings are down this year, do not hide your head in the sand and pretend the issue will go off. It won't. Business Management Roll in Personnel Selection. If your Small Business Will be big enough to require outside help, a significant duty will be the choice and training of one or more workers. You may start out with relatives or business partners that will assist you. But when the business grows - as you hope it will - that the time will come when you have to select and train employees. Careful choice of employees is vital. To select the right Employees determine beforehand what you need each one to do. Then search for applicants to fill these specific needs. In a small Business you may need flexible employees who can shift from task to task as required. Include this in the outline of those tasks you would like to fill. At precisely the exact same time, look ahead and organize your hiring to assure an organization of individuals capable of accomplishing every crucial role. In a retail store, a salesperson might also do stock-keeping or bookkeeping at the outset, but as the business grows you'll need sales people, stock-keepers and bookkeepers. Once the job descriptions are written, line up applicants from whom To make a selection. Don't be swayed by clients who might suggest relatives. In the event the candidate doesn't succeed, you might lose a customer in addition to a worker. Some sources of potential new employees are: 1. Tips by friends, business acquaintances. 2. Employment agencies. 3. Placement agencies of top schools, business schools, and colleges. 4. Trade and industrial institutions. 5. Help-wanted advertisements in local newspapers. Your next job is to display want ad responses and/or program Forms sent by employment agencies. Some applicants will be eliminated sight unseen. For every one of those others, the application form or letter will act as a foundation for the interview that ought to be conducted privately. Put the applicant at ease by describing your company generally and the job in particular. As soon as you have completed this, invite the applicant to speak. Selecting the right person is very important. Ask your questions carefully to learn everything about the applicant that's pertinent to the job. References are crucial, and should be checked prior to making a final decision. Check through a personal visit or a phone call directly to the applicant's immediate previous manager, whenever at all possible. Verify that the information given you is correct. Consider, with judgment, any negative remarks you hear and what is not said. Checking references can bring to light important information Which may help save you money and future inconvenience. Personnel Training. A well-selected employee is only a potential Asset to your organization. Whether or not he or she becomes a true advantage is dependent upon your own training. Remember: To allow sufficient time for instruction. Not to expect too much from The trainee in too short a time. To let the worker learn by doing under real working conditions, with close oversight. To follow along with your training. Examine the worker's performance after he or she has been in work For a time. Re-explain important points and short cuts; bring the employee up to date on new developments and encourage inquiries. Training is a continuous process which becomes excruciating oversight. Personnel Supervision. Supervision is the third crucial of personnel control. Fantastic oversight will lessen the cost of operating your company by cutting down on the amount of employee mistakes. When mistakes are corrected early, employees will find more satisfaction from their jobs and perform better. Motivating Employees. Small businesses sometimes face particular Problems in motivating employees. In a large company, a good employee can see An chance to advance into management. In a small business, You're the management. One thing you Might Wish to consider would be to give good employees a Small share of their proceeds, either via part-ownership or a profit-sharing plan. Somebody Who has a"share of this action" will be more Concerned about helping to make a success of the business.

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Starting Beef Cattle Fattening Farming Business in South Africa – Business Plan (PDF, Word & Excel)

Posted by BizBolts | Agriculture , All Articles , Business Ideas , Business Plans , Livestock Farming

Commercial cattle farming and fattening form the backbone of the beef industry in the country. In a lot of cases, cattle fattening can be part of a diversified farming enterprise, which can help manage production and market risks. The majority of cattle sold through abattoirs come from feedlots. This livestock can be self-produced or brought in, with commercial feedlots being the major finishers of beef. Beef cattle fattening a a very profitable business to start in South Africa. First off let’s just familiarise ourselves with what beef cattle pen fattening is. Cattle pen fattening entails the feeding of beef cattle with a balanced protein-high diet for a period of 3-4 months under confinement. This is done to increase live weight of the cattle and improve the grade/quality of the beef so as to fetch higher prices when selling the beef cattle. Cattle fattening ensures that the cattle express their full potential for growth. Confinement of beef cattle in pens is meant to ensure that the genetic coding of the beasts is fully expressed in their growth and to minimize weight loss through movement.

The demand for beef in South Africa is very high. Over 85 000 metric tonnes of beef are consumed every month in South Africa. In case you’re wondering how you can start such a cattle fattening farming business then kindly read along. This article will outline how to start a beef cattle fattening business in South Africa, and the beef cattle fattening business plan – PDF, Word and Excel.

Before you start a beef cattle farming business in South Africa, there are some important decisions which you have to make. You have to decide on the size of your beef cattle fattening business ie how many cattle you will have at your cattle farm. There are many different cattle breeds, so you have to select which breed you will use, location of your business, and your target market. The size of your beef cattle farming business will depend on the amount of capital you have, and your target market. It’s important that you get a good beef cattle fattening business plan before you start beef cattle fattening business in South Africa.

Business Model

Cattle pen fattening is the feeding of beef cattle with a balanced, high-protein diet for a period of 3–4 months under confinement. Animals can be fed in different ways in order to obtain a heavy carcass. When purchasing your cattle, it’s important to evaluate the potential for beef fattening because different types of cattle respond differently to feed. You should also consider the market price of various beef grades. You should take into account the cattle’s breed, gender, maturity type, and age. Some cattle are more suitable for fattening than others. It’s very important that you give your cattle the right quantity and type of feed. The success of your cattle fattening business depends largely on the ability of your cattle to gain weight and to produce high-quality beef. These factors are affected by the quality and quantity of your feed. Proper feeding techniques will ensure that your cattle will grow, utilize the feed efficiently, and produce good quality meat. This is how you can increase your profits from the cattle fattening farming business. Failing to properly feed the cattle will lead to losses.

Market Research

For any kind of business, you must conduct market research. You need to research your market in order to build a successful, sustainable cattle fattening business. You also require enough knowledge in order to effectively run your feedlot. In addition to good cattle fattening techniques, good management skills, and financial management, you must understand the industry you operate in. Researching and finding your market are essential when developing a cattle fattening business. Your market has a huge impact on your producer’s net sale price. In fact, your company’s profitability is determined by the market. From market research, you can determine the buying price of the cattle, the costs of the feed, the price margin, the feed margin, the feed conversion efficiency ratio, and the unit cost when selling. As a farmer, you should also be aware of the alternative markets available to you in order to choose the one that yields the greatest return . Ensure that you periodically check prices and market conditions. Market research also helps you know your buyers’ needs and demands. Local and international meat markets are constantly changing. As a result, your cattle fattening business should be market-driven. Customers are becoming more sensitive about animal welfare and the ethical rearing of all animals. These customers want more information about the meat they buy, especially where it comes from and how it has been raised. As a cattle fattening business, you are required to review your production methods and standards.

You need land – this is where you will build the beef cattle feedlots. Sustainability of the land must be thoroughly assessed beforehand. The location must be very strategic i.e. near major road networks and near reliable water sources such as boreholes, rivers or dams. Alternatively, or rather as a buffer, water reservoirs must also be setup. Beef cattle pen fattening is done with the cattle in confinement ie in pens/feedlots. The cattle won’t graze for pasture. This means that a beef cattle pen fattening business needs less amount of land as compared to a cattle ranching business.

Housing and Equipment for Beef Cattle Farming Business

The beef cattle will be housed in feedlots / pens. Feedlots are confined areas with feeding and watering facilities where the cattle are fed by hand or mechanically for the purpose of beef fattening. That’s where the cattle will be resident during the duration of their 90-120 days fattening process. Confinement of the cattle in feedlots is meant to minimise energy and weight loss through movement. The beef cattle fattening feedlots must be setup in such way that they protect the cattle from predators and adverse weather conditions. The housing must promote ease of access to food and water, free movement and adequate lighting to the beef cattle. The necessary equipment for a beef cattle fattening business in South Africa include the feeding and drinking troughs. Your commercial beef cattle farming business plan should include the costs of purchasing the equipment and the beef cattle feedlots.

Beef Cattle for Fattening

To start the cattle fattening business in South Africa, you need the beef cattle to fatten (also known as feeders). You can choose to either fatten your own cattle or you can purchase cattle for fattening from other farmers. Purchasing cattle for fattening needs a lot of skill. You must be experienced in evaluating the potential for fattening of different types of cattle (maturity type, breed, age, gender) in relation to the market price of different grades of beef. Different breeds of cattle have different growth potential, so you must be well-informed. Some types of cattle are more suitable for cattle fattening than others. If you make the wrong decision in buying the cattle, you will encounter a loss before you even start the beef cattle fattening business.

It’s also important to have good negotiating skills, so that you acquire the beef cattle at a good/low price. Buying expensive cattle will lead to losses in your beef cattle fattening business. You can source your cattle from other farmers or from rural areas where it is cheap. The prices of cattle vary throughout the year. You should always have money to buy cattle when the prices are favourable. Lack of money when the prices are favourable is a lost opportunity for profit. Be wary of cattle farmers who dispose of their diseased cattle. Take time to do proper due diligence to ensure that you’re buying healthy cattle – don’t just be roped in by the low prices.

Feed for Beef Cattle Fattening

As you can probably tell, feeding costs are high in the beef cattle fattening business. The correct types of feeds and the right mixture ratios are critically important in order to produce cattle with high weights and high beef quality. If these things aren’t done then the unfortunate result may be failure to meet slaughter weight targets or beef quality target. Proper feeding techniques will enable the cattle to efficiently utilise the feed and thus gain weight and produce good quality beef. Feeding can be done using a combination of complete commercial cattle fattening feeds and supplementary feeds eg maize. Cattle fattening is done to achieve two major things, increase in live weight (more weight results in more revenue when selling) and increase in the quality of beef (high quality beef fetches higher prices). Proper feeding regime will ensure that you achieve these objectives. Your beef cattle fattening farming business plan should take into account the feeding costs.

Profitability of Beef Cattle Fattening Business in South Africa

If done properly, cattle fattening business is very profitable in South Africa. The profitability of the beef cattle fattening business in South Africa depends on a variety of factors. These factors include: buying price of the feeders/cattle, the cattle fattening feeds cost, the feed conversion ratio, the selling price per KG, the feed margin and the price margin. Before starting beef cattle fattening, it’s important that you understand the margins and ratios. Understanding the margins and ratios will enable you to calculate your profit margins when buying cattle at a specific price. Thus you will make an informed decision before you buy the cattle. All those margins are explained in our beef cattle farming business plan.

Sales And Marketing Strategies

A feedlot farm’s marketing has many aspects. The kind of marketing strategies you employ will depend on the size of your feedlot. Small-scale feedlots have limited marketing needs compared to large commercial ones. In many cases, cattle from a feedlot are usually sold to butcheries, abattoirs, auctions, butcheries, or individuals. Your marketing efforts should be directed to these customers. You must promote your feedlot business to the right people so that you can generate enough revenue. One way you can market your feedlot is by having an online presence. Take advantage of social media and set up an affordable, basic website. You can also list your business in the yellow pages and online directories such as Google My Business or Maps. Do not neglect your online presence once it’s setup. Keep your social media pages active and your website up-to-date. Another way to promote your cattle fattening business is by participating in agricultural trade shows and events. This is an effective way to promote your business. Do not forget to create flyers, offer discounts, and connect with people within the farming industry.

The demand for beef in South Africa is very high. The average demand of beef in South Africa is about 1 million tonnes per annum. The beef industry is the second fastest growing commodity in agricultural sector following the broiler poultry sector. This is driven by income growth and support technological and structural change. You can supply your cattle/beef to Abattoirs , Livestock Auctions, Butcheries, Individual, Meat Processors etc.

Beef Cattle Fattening Farming Business Plan

Beef Carcass

Advantages of Cattle Fattening Business

There are many reasons why you should consider starting a cattle fattening business. The major advantage of feedlots is that the cattle are raised in the most economical way. Since a smaller space of land is required, you can raise a large number of cattle for beef production. Animals that are kept on feedlots are fed mostly corn and/or corn products in addition to being raised on less land. This means you will spend significantly less money. Another advantage to cattle fattening is that you can easily monitor the cattle closely. Furthermore, cattle are fattened earlier, which results in better meat consistency, and more meat can be distributed to meet the rising demand for beef. Cattle are raised for a shorter period of time in order to meet market requirements earlier. You do not have to be concerned about pasture due to droughts or bad weather conditions plus you can easily develop consistent meat quality and quantity by feeding your cattle the correct feed.

Keys to Profitability

When it comes to cattle fattening, it’s all about the right feed and the breed. Make sure that you choose the right supplements, and that your cattle are housed appropriately. Do not overwhelm yourself by buying a large herd of cattle. Start with a reasonable number and grow your business steadily. One of the biggest costs for a farmer is transportation. So ensure that your feedlot is not too far away from the market. Make sure that you keep an eye on the costs and stay up to date with current industry trends.

PRE-WRITTEN BEEF CATTLE FATTENING BUSINESS PLAN (PDF, WORD AND EXCEL): COMPREHENSIVE VERSION, SHORT FUNDING/BANK LOAN VERSION AND AUTOMATED FINANCIAL STATEMENTS

For an in-depth analysis of the beef cattle fattening farming business in South Africa, purchase our beef cattle fattening business plan. We decided to introduce the business plans after noting that many South Africans were venturing into the cattle fattening business without a full understanding of the industry, market, how to run the business, the risks involved, profitability of the business and the costs involved, leading to a high failure rate of their businesses.

Our business plan will make it easier for you to launch and run a beef cattle farming 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 the beef cattle fattening business plan will lay out all the costs involved in setting up and running the beef cattle farming business. The business plan is designed specifically for the South African market.

USES OF THE BEEF CATTLE PEN FATTENING BUSINESS PLAN (PDF, WORD AND EXCEL)

The beef cattle feedlots 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 beef cattle feedlots business
As a beef cattle fattening project proposal
Assessing profitability of the cattle fattening business in South Africa
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 BEEF CATTLE FATTENING BUSINESS PLAN (PDF, WORD AND EXCEL)

The business plan includes, but not limited to:

Market Analysis
Industry Analysis
5 Year Automated Financial Statements [ Income statements, cash flow statements, balance sheets, monthly cash flow projections (3 years monthly cash flow projections, the remaining two years annually),break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortisation]
Marketing Strategy
Risk Analysis
SWOT & PEST Analysis
Operational Requirements
Beef cattle fattening guide (Technical Details of how to choose, feed and raise the beef cattle)
Operational Strategy
Why some South Africans in the beef cattle farming business fail, so that you can avoid their mistakes
Ways to raise capital to start your beef cattle fattening farming business in South Africa
Directory [Contact Details for South African suppliers of feeds, equipment, Cattle Abattoirs, contacts of cattle fattening training companies in South Africa, contacts of cattle fattening farming organisations in South Africa]

The Beef Cattle Fattening Farming Business Plan package consist of 5 files

Beef Cattle Fattening Business Plan – PDF file (Comprehensive – 87 pages)
Beef Cattle Fattening Business Plan – Editable Word File (Comprehensive – 87 pages)
Beef Cattle Fattening Business Plan Funding Version – Editable Word File (Short version for applying for a loan – 45 pages)
Beef Cattle Fattening Business Plan Automated Financial Statements – (Editable Excel file)
Cattle Abattoirs in South Africa -Supplementary PDF File

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Testimonial 1

Many thanks to the BizBolts team for putting together a fantastic business plan, I could not have done this business plan on my own. I managed to get funding from investors to start my butchery business using your business plan.

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The business plan was very helpful, you did a great job of taking ideas and putting them into words as well as pointing out other aspects of the business plan I wouldn’t have thought of. I got funding using your business plan and it’s now 4 months since I started my poultry business, and everything is going well.

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The business plan has a highly professional look and feel. The research really helps me look deep into the market that I am targeting, it’s well suited for the South African market. The business plan clearly outlined everything I need to start the business and the costs. It’s now easier to budget and plan. Thank you very much.

GET THE BEEF CATTLE FATTENING BUSINESS PLAN (PDF, WORD AND EXCEL) - R500 Only.

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About The Author

BizBolts (Pty) Ltd is a business research company based in Johannesburg, South Africa. We sell prewritten business plans for various industries including livestock production, crop farming and retail businesses. BizBolts also publishes articles on business ideas, business news, business tips, personal finance, and entrepreneur profiles.

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Cattle Farm Business Plan Template

Written by Dave Lavinsky

Cattle Farm Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their cattle farms. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a cattle farm business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Cattle Farm Business Plan?

A business plan provides a snapshot of your cattle farm as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Cattle Farm

If you’re looking to start a cattle farm or grow your existing cattle farm company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your cattle farm to improve your chances of success. Your cattle farm business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Cattle Farms

With regards to funding, the main sources of funding for a cattle farm are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for cattle farms.

Finish Your Business Plan Today!

How to write a business plan for a cattle farm.

If you want to start a cattle farm or expand your current one, you need a business plan. The example guide below details the necessary information for how to write each essential component of your cattle farming business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of cattle farm you are running and the status. For example, are you a startup, do you have a cattle farm that you would like to grow, or are you operating a chain of cattle farms?

Next, provide an overview of each of the subsequent sections of your plan.

Give a brief overview of the cattle farm industry.
Discuss the type of cattle farm you are operating.
Detail your direct competitors. Give an overview of your target customers.
Provide a snapshot of your marketing strategy. Identify the key members of your team.
Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of cattle farm you are operating.

For example, you might specialize in one of the following types of cattle farms:

Cow-calf: This type of cattle farming involves using mature cattle to breed calves that are then sold to producers.
Backgrounding: This type of cattle farming involves growing feeder cattle that can be sold to producers once they reach a certain weight or age.
Finishing: This type of cattle farming involves harvesting cattle to weight in a feedlot, readying them for sale to market.
Specific Breed: This type of cattle farming specializes in breeding specific types of cattle such as Angus or Hereford.

In addition to explaining the type of cattle farm you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

When and why did you start the business?
What milestones have you achieved to date? Milestones could include the number of customers served, the amount of meat sold, reaching $X amount in revenue, etc.
Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the cattle farm industry. While this may seem unnecessary, it serves multiple purposes.

First, researching the cattle farm industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your cattle farming business plan:

How big is the cattle farm industry (in dollars)?
Is the market declining or increasing?
Who are the key competitors in the market?
Who are the key suppliers in the market?
What trends are affecting the industry?
What is the industry’s growth forecast over the next 5 – 10 years?
What is the relevant market size? That is, how big is the potential target market for your cattle farm? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your cattle farm business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of cattle farm you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other cattle farms.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other types of meat farms such as poultry, fish, or pork farms, and meat alternative suppliers. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

What types of customers do they serve?
What type of cattle farming business are they?
What is their pricing (premium, low, etc.)?
What are they good at?
What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

Will you make it easier for your customers to acquire your product?
Will you offer products or services that your competition doesn’t?
Will you provide better customer service?
Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a cattle farm business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of cattle farm company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide live cattle, meat, or dairy products?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your cattle farm company. Document where your company is situated and mention how the site will impact your success. For example, is your cattle farm located near a city, in a rural area, or adjacent to other farms? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your cattle farm marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

Advertise in industry publications and networking events
Reach out to local meat buyers
Distribute flyers
Engage in email marketing
Advertise on social media platforms
Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your cattle farm, including answering calls, feeding and caring for cattle, scheduling employees, billing customers and collecting payments, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to acquire your Xth customer, or when you hope to reach $X in revenue. It could also be when you expect to expand your cattle farm business to a new market.

Management Team

To demonstrate your cattle farm’s potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing cattle farms. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a cattle farm or running a small cattle breeding operation.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will your farm have 100 cattle on average and will 20% of your cattle be ready for sale every year? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your cattle farm business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a cattle farm:

Cost of farming equipment and supplies
Payroll or salaries paid to staff
Business insurance
Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your farm lease or information about the type of cattle on your farm.

Writing a business plan for your cattle farm is a worthwhile endeavor. If you follow the template above, by the time you are done, you will have an expert cattle farming business plan, cow calf business plan or a beef cattle business plan. You will understand the cattle farm industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful cattle farm.

Don’t you wish there was a faster, easier way to finish your Cattle Farm business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success. Click here to see how Growthink’s business plan professional services can help you create a winning business.

Cattle Farm Business Plan FAQs

What is the easiest way to complete my cattle farm business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your cattle farm business plan.

How Do You Start a Cattle Farm Business?

Starting a cattle farm business is easy with these 14 steps:.

Choose the Name for Your Cattle Farm Business
Create Your Cattle Farm Business Plan
Choose the Legal Structure for Your Cattle Farm Business
Secure Startup Funding for Your Cattle Farm Business (If Needed)
Secure a Location for Your Business
Register Your Cattle Farm Business with the IRS
Open a Business Bank Account
Get a Business Credit Card
Get the Required Business Licenses and Permits
Get Business Insurance for Your Cattle Farm Business
Buy or Lease the Right Cattle Farm Business Equipment
Develop Your Cattle Farm Business Marketing Materials
Purchase and Setup the Software Needed to Run Your Cattle Farm Business
Open for Business

Learn more about how to start your own cattle farm company .

Business Plans for Beef Cattle Backgrounding Enterprises

Backgrounding is a feeding program that targets weight gain in feeder cattle to develop the skeleton and muscle tissue of the animals while minimizing fat deposition.

Backgrounding diets typically include high levels of forages and often include limited amounts of cereal grains and various by-products of grain production. Cattle feeders normally purchase lightweight feeder cattle for backgrounding programs, and design feeding programs considering the timing of marketing finished cattle.

The Business Plan

A business plan is important to evaluate financial and production decisions related to the business. A business plan identifies requirements for financing capital items, such as feeding pens, handling facilities and feeding equipment, or sourcing operating credit or financing feeder cattle purchases. In addition, development of the business plan formalizes production practices, such as feeding and health management programs, and describes the marketing program for cattle at the completion of the backgrounding phase. Completing a business plan is similar to planning for a road trip: business plans help you identify where you are going, and, similar to a road map, assist you in reaching your final destination.

Similar to other agricultural endeavours, feeding cattle involves risk. While the price of feed and market price of feeder cattle are the two largest variables that can affect profitability of cattle feeding enterprises, factors such as experience of the cattle feeder, size of operation, animal performance and health status of calves contribute to the success of the enterprise. To reduce risk, some backgrounders choose not to own their feeder cattle, but custom-feed cattle for other producers or cattle investors. A business plan identifies risk factors for each operation, and allows producers to evaluate alternatives to 100-per-cent ownership of feeder cattle and manage their risk accordingly. Risk management strategies form a critical component of the business plan, and will be reviewed by lenders and other stakeholders when assessing the financial viability of backgrounding cattle.

A business plan helps you to:

Analyze the enterprise on paper and identify strengths, weaknesses, opportunities and threats (SWOT);
Make the transition from idea to implementation of the business enterprise;
Provide lenders, cattle investors and other stakeholders with a clear understanding of your business and the requirement for external sources of capital or operating credit;
Standardize operating procedures and identify marketing strategies for backgrounded feeder cattle;
Establish performance and financial benchmarks and analyze year-to-year variance; and
Manage your business more effectively.

Developing your Business Plan

A typed, professional appearance enhances business plans, especially if it will be presented to others. If this is not possible, a neat, handwritten business plan is still better than nothing at all. Elements of a business plan include:

Title Page: Includes the business or farm name and contact information for the principal individual(s) responsible for the enterprise. Include the date the plan was created or the period of time that the business plan covers.
Executive Summary: The executive summary is one of the most important components of a business plan. As the executive summary is the first and sometimes only part of the business plan that is read, it needs to be a concise summary of the business proposal that identifies the purpose or objective of the operation, outlines capital and credit requirements and indicates how funds will be used. It should be written last so that it summarizes the entire business plan and provides the readers with answers to the following questions:
What is the purpose of this business plan (operational guide, financing proposal or both)?
What is the nature of the business?
What is the business structure (sole proprietor, corporation, partnership)?
What is being produced or what services are being provided?
Where will the product and/or services be marketed?
What knowledge, skills and abilities do you have regarding feeding and care of cattle?
Table of Contents: A single page listing topics and corresponding page numbers.
Mission, Vision, Values and Goals Statements: These statements are typically one paragraph in length, and clearly state the objective of the enterprise, the short- and long-term goals of the producer and the values important to the individual. Animal welfare, environmentally sustainable production or verified beef production practices are examples of values producers may choose to incorporate in these statements.
Industry Overview: The industry overview should be written to provide a reader who may have limited knowledge of the subject with a brief description of the cattle feeding industry. A simple diagram illustrating the structure of the cattle industry is often useful to include in this section to visually represent where backgrounding fits within the beef cattle supply chain. Current statistics should be included, and be sure to reference sources of information. Relevant information may include, but should not be limited to: beef cow numbers, number of feeder cattle by weight class, feed grain and forage production and number of cattle feeders. Industry trends and opportunities can be identified in this section. Once the reader has reviewed this section of your business plan, specific information related to your project can be put into the perspective of the larger industry.
Business Description: This section includes information specific to your enterprise. Type of business, structure of business, relation to other enterprises, and size and scale of the operation, including land resources, should be identified.

Ownership of feeder cattle or custom feeding arrangements should be clearly identified in this section, as the content of subsequent elements of your business plan will be affected by this major decision. Custom feeding arrangements will be formalized, with a written contract outlining the responsibilities of both the cattle feeder and investor. Payment for services (cost per gain, yardage plus feed costs or cost per day), expectations of animal performance, health status of calves at time of placement, minimum number of days on feed, death losses and animal warranties should be clearly identified and drafted in the agreement. A copy of the contract should be included as an appendix to the business plan.

Human Resource Management: This area describes your business and management experience in feeding and caring for cattle. It is important to identify if you will be paying yourself for the labour and management of the enterprise, or if the profit (loss) of the business will determine the return on your labour and investment.

If additional non-family labour is required for the backgrounding cattle enterprise, a description of employment variables, such as salary, benefits and provision for training, should be included. Development activities designed to improve management expertise should be included in this section.

A contingency plan should be identified in this section that details how the enterprise will be managed and day-to-day operations will proceed in the event of illness, injury or death.

Operational Plan: This section outlines the production processes, sets performance targets and establishes costs that will be included in cash flow projections. Backgrounding cattle enterprises should include the following sections within the operational section of the business plan:

Feeding Program

Excluding the purchase of the feeder calf, the cost of feed represents the single largest variable in feeding cattle. Backgrounding diets are typically higher in forages to minimize fat deposition and promote frame and muscle growth. Purchasing or contracting some or all of the forage, grain and supplements prior to placing cattle in the feedlot can reduce the risk of significant price increases during the feeding period. It is recommended that nutritional advice be sought in the development of feeding programs and monitoring of animal performance. A feeding protocol can be developed as part of the operational plan to ensure consistency of feeding regardless of who is responsible for daily feeding.

Herd Health Program

With the assistance of a veterinarian experienced in feeder cattle production, a herd health program should be designed and implemented for all backgrounding enterprises. Treatment and vaccination protocols, implant strategies and post-mortem procedures can be developed and documented in the herd health section of the business plan. These protocols can form the basis for a sound record-keeping system as part of a quality assurance program. Annual review of each program within the operational plan allows for ongoing adjustment and fine-tuning of important production practices.

Marketing Plan:

Cattle feeders who own their cattle inventory assume a higher risk than feeders who are custom-feeding cattle for other investors. While the potential for profit is greater, so is the potential for loss, and the business plan should reflect the reality of the cattle feeding business. Owning the inventory of cattle requires the development of a marketing plan within the business plan. Consider the following when developing your marketing plan:

Identify the target weight for marketing feeder cattle. Lighter feeders can be placed on pasture prior to finishing in feedlots, or heavier animals can be marketed directly to feedlots.

Identify the time of year for targeted marketing. Normally, grass cattle are in greater demand during the early spring, and heavy feeders are generally marketed to feedlots during late summer.

Identify where off-type animals will be marketed.

Price Discovery

Backgrounded cattle can be sold via auction (regular, presort, satellite or electronic) or be forward-contracted to finishing cattle feedlot operators. Sale conditions, including weighing considerations, marketing commissions, shrinkage and delivery times, should be clearly identified for all marketing alternatives. It is important to recognize that prices for cattle (finished and feeder) are established at the Chicago Mercantile Exchange. Fluctuations in the value of the Canadian dollar relative to the United States currency represent significant price risk to the Canadian cattle feeder. Risk management plans should identify foreign exchange exposure and strategies to minimize negative effects. Development of marketing plans as part of the business plan allows producers to consider all of the factors that may affect market price for cattle at the end of the backgrounding period. Given the complexity of cattle marketing, producers are strongly encouraged to seek advice and marketing assistance prior to placing cattle on feed in a backgrounding program.

The Livestock Price Insurance Program (LPI) is an easy to use risk management tool that provides beef producers with protection against price risk, currency risk and basis risk. The program uses current and historical market information to set and offer market driven coverage in the form of an insurance policy. LPI protects against volatility in the marketplace and can be used to set a "floor" price on livestock, allowing for the security of knowing what your bottom line income will be. LPI can also be used to obtain a cash advance through the Advance Payments Program.

Environmental Plan:

Environmental farm planning is an important component of risk management for any agricultural operation. Beef cattle backgrounding operations may require approval from Saskatchewan Agriculture's Agricultural Operations Unit prior to the construction of an intensive livestock operation (ILO). The Agricultural Operations Act requires ILO proponents to submit plans for manure storage, manure management and mortality management. The intent of this legislation is to ensure provisions have been made to protect surface and groundwater from contamination by run-off from livestock facilities. It is also important to discuss development of any ILO with your neighbours and your local municipality to address any concerns or identify any development bylaws that may be relevant to your enterprise. Saskatchewan Watershed Authority should be contacted regarding licensing requirements related to the provision of water for the cattle operation.

Financial Plan:

The financial plan is an important component of your business plan, and usually includes present financial documents as well as pro forma financial statements that identify the financial changes that will occur to the enterprise over a period of time. Requirements for debt financing and repayment schedules should be included in the financial plan. It is important to identify any assumptions that are being made that may affect the accuracy of the financial statements. Examples of documents included in the financial section of the business plan are:

Breakeven analysis of backgrounding cattle;
Current income statement and projected income statements for an identified period of time;
Monthly cash flow projections for the current and subsequent fiscal years;
Loan amortization tables; and
A current balance sheet and projected balance sheets for an identified period of time.
Supporting Professionals:

Identify supporting professionals that provide services or advice for your operation in this section of your business plan. These can include business partners, such as accountants, lawyers or financial service providers, as well as veterinarians, nutritionists, consultants and marketing partners.

Supporting Documents:

A personal resumé identifying your education, prior work experience and management and feeding experience related to beef cattle production should be included in this section. If other individuals will be involved in the management of the backgrounding enterprise, include their personal resumés as well.

For custom backgrounding operators, letters of intent from prospective cattle suppliers or investors should be included. If you have previously fed cattle for someone else, include letters of reference.

A business plan is an important document that allows you to evaluate your enterprise on paper. This document serves as a basis for obtaining financing and procuring cattle supplies. Operational plans are developed and performance benchmarks established in your business plan. Once completed and updated annually, your business plan will provide you with an overview of past performance and a plan for future years.

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Starting Goat Farming Business Plan (PDF)

Starting a goat farming business is a lucrative and rewarding venture. As the global population continues to expand, so does the appetite for lean and flavorful goat meat, presenting a compelling opportunity for entrepreneurs to enter this business. This trend, coupled with the perception of goat meat as a healthy and sustainable protein source, positions goat farming as a lucrative industry ready to be tapped into. Additionally, goats are hardy animals that can thrive in diverse climates and require relatively modest resources, thus lowering the operating expenses of the business hence increasing its profitability. This is due to the remarkable resilience of goats, which enables them to thrive even in the most challenging conditions, whether it be limited access to food or adverse weather conditions. Goats are known for their ability to flourish with minimalistic and cost-effective housing setups, making them an ideal choice for resource-conscious farmers. To build a sustainable, profitable goat farming business, you require sufficient knowledge of how to efficiently raise the goats, good business management skills, and a good goat production business plan. This article will outline how to start the goat rearing business, and the goat farming business plan – PDF, Word and Excel.

Market Research

Market research is a crucial step before you start a goat farming business. Start by examining the prevailing prices of goat meat in your target market to gauge market competitiveness and establish competitive pricing strategies. Identify potential customers and their preferences to tailor your offerings effectively, whether it’s local consumers, butcheries, restaurants, or other businesses. Additionally, take into account the seasonality of goat prices, as fluctuations throughout the year can influence your production and pricing decisions, ultimately enabling you to make informed choices that maximize profitability and meet consumer demands.

Financial projections serve as a critical aspect of your market research when venturing into goat farming business. These projections encompass not only revenue and profitability estimations but also help you determine crucial elements such as startup costs and ongoing operational expenses. By meticulously forecasting your financial requirements, you can create a well-structured budget that guides your allocation of resources and ensures effective financial management throughout the journey of establishing and running your goat farming business. This proactive approach to financial planning is instrumental in achieving your business goals, securing necessary funding, and maintaining the long-term sustainability and success of your venture.

Selecting the right goat breed is a pivotal decision for your goat farming business. Extensive research is required to make an informed choice, taking into account several crucial factors. Firstly, consider the availability of goat breeds in your region, as some breeds may be more prevalent than others, which can impact accessibility and procurement costs. Secondly, assess the feed conversion efficiency of potential goat breeds, as this directly influences your operational expenses and overall profitability. Thirdly, weigh the cost of purchasing different breeds against your budget constraints, ensuring that your choice aligns with your financial capacity. Lastly, align your breed selection with the specific needs and preferences of your target market, as different breeds can cater to varying consumer demands.

Selecting Land for Goat Farming Business

You obviously require land for the goat farming business. There are some factors that you have to consider when selecting land for goat production business. A large enough area must be available for erecting the necessary goat pens. It is advisable to locate the project nearer to good roads as that will help minimize costs. This will also enable the farmer have easy access to and from the goat farming project. Does the location offer proximity to a reliable source of clean and fresh water? Your choice of land must also factor in the presence of a favourable climate. Is the land space easy to fence right round to ensure the goats are secure? This is important for two main things. One, goats are adventurous and tend to easily escape when they figure out a loophole. Two, if improperly fenced, goats become vulnerable to predators. Being able to escape also makes them vulnerable to predators. Fencing is strategic in that it provides an additional layer of security for your goat farming business. The assumption is that you would have setup secure housing for the goats. During the day when the goats are roaming around the fence will be keeping them secure. When indoors (usually overnight), the goat housing and the fence essentially become two layers of security.

Water logging or flooding is not good for the goats. You need to pick a land space that enables easy runoff. The ease of fencing also depends on the nature of the terrain in question. That is why it is imperative that you should choose a land space characterised by a flat to gentle slope. You must consider the availability of pastures – goats require pasture to graze on. Ideally you want a land space big enough to be segmented. This segmentation will be essential for having a goat rotational grazing regiment. You should divide the pasture into different parts. To avoid over usage of pasture and the growth of less desirable forage, you should rotate the pastures where your goats graze on. This means that you should allow your goats to graze on one pasture while the other pasture is resting. The pasture should have various types of pasture plants or grasses. This will increase the food value and help to meetup all types of necessary nutrient requirements for goats, leading to profitability of your goat farming business plan. Your goat farming business plan should take into account the cost of purchasing or leasing the land.

Housing For Goat Farming Project

Goats are so hardy that they can thrive whilst staying in the open day and night. However, in order to build a successful goat farming business you must house them. Housing for goats serves two core purposes namely, security and protection from extreme weather conditions. The location of your goat housing must be elevated and be where dryness can be maintained all the time. This is all central to ensuring flooding is not possible since it is not good for the goats. Any build-up of water or moisture increases the chances of disease breakouts. That same elevation is also pertinent in protecting the goats from predators. The floor or bed of the goat housing must also be maintained dry at all times. Ventilation and adequate natural lighting is important for your goats so factor that in when designing your housing. The goat shelter must be well-ventilated, and should be easy to clean. Poor ventilation is bad to the health and performance of your goats. Extreme temperatures can reduce the productivity of goats. Poor ventilation may also lead to circulation of harmful gases which can cause respiratory problems to the goats. This also implies the housing must be big enough to allow free goat movement inside.

Materials that can be used for construction of goat housing include wooden poles, bamboo poles, bricks, cement and concrete. You can always figure out how to blend these together depending on what you have. In principle of course the aim is to use cost-effective yet robust materials. You must also segment your goats as well. Have separate goat housing units or spaces for pregnant goats, nursing goats, weaned goats, diseased goats, and the rest of the goats. You just have to bear in mind that you must allow more space for bigger goats. The bigger the goat, the bigger the living space it needs. The costs of constructing the housing should be included in the goat production business plan.

Equipment For Goat Production Business

Goat farming requires both basic and specialized equipment. It is obvious you need feed and water equipment. Your feeders can be according to the type of feed in question. For example, you can have separate feeders for hay, grains, and so on. Water trough or containers can be makeshift or commercial ones. You will also need other handy implements such as forks, wheelbarrows, pallets, buckets, shovels, scales, thermometers, and the like. Depending on the nature of your goat farming operations you may need specialized equipment. Examples of these are castrators, drenchers, and hoof trimmers. The goat farming business plan should include the costs of acquiring the equipment.

Breeding Stock For the Goat Farming Business

To start keeping goats for profit, you require breeding stock. The breeding stock consists of male goats which are known as bucks, and female goats which are known as does. When choosing breeding stock for goat farming business, you should be very careful of the health history of the goats. It’s advisable to purchase the breeding stock from goat farmers who have a good reputation in the goat production business. The goats which you select should be strong with an overall appearance of good health. Request to see the records of the breeding stock which you want to purchase. The growth potential of your kids will depend on the nature and quality of the parent stock. Thus it is of great importance to buy a good goat breeding stock from reliable goat farmers. The goat farming business plan should take into consideration the cost of buying the breeding stock.

Breeds of Goats

Goat breeds have different meat characteristics. There are goats that are best for meat production, milk production, or both. Focus on purebreds, request for comprehensive records, and physically inspect the goats when buying. Some of the important attributes to look for are high reproductive rates, good maternal ability, zero physical defects, good feed efficiency, and disease resistance. There are various breeds of goats which are used in commercial goat farming operations. The popular breeds for goat meat production include the Boer goats, Spanish breed, Black Bengal, Kalahari Red, Rangeland among others. The Boer Goat is a highly productive meat breed and considered a superior breed. This type of breed is originally from the Eastern Cape in South Africa and it’s more expensive compared to other breeds. A good Boer buck that is between 6-12 months can service 25 does while a full-grown buck that is 13 months old can service 50 does in a year. The Boer Goat is considered superior because it has a good bone structure, large body size, grows fast, heavy weight and can easily adapt to a wide range of pastures. Some farmers cross breed an superior breed e.g. the Boer Goat with indigenous breeds. This is in order to get the right quality of offspring with good meat quality, resistant to diseases, health and adaptable to various pastures.

Feed for the Goats

Feed is the largest cost of running a goat farming project. The most economical source of nutrients for meat goats are browse and pasture. In some cases, pasture and browse will be sufficient to meet the nutritional requirements required by meat goats. Goats are versatile, inquistive and energetic in their feeding habits. Goats can adapt to different environments. They can consume over 80 different kinds of plants. Goats are browsers by nature, they are not grazers. However, they will also eat grass. A suitable area for the goat farming project should ideally have low bushes. Goats enjoy browse materials like trees, bushes, twigs and leaves.

Even though goats will browse and feed on pasture, you will have to give them supplementary feed for you to be profitable in your goat farming business. Enough pasture might not be available throughout the year due to seasonal changes. To enable goats to grow fast and reach their full growth potential in a short time, you will have to give them supplementary feed. There are various kinds of supplementary feed you can give to your goats including hay (lucernes), grains (e.g. wheat, oats, maize , sorghum, barley etc), commercial goat feed, minerals and salts. The goats also require sufficient water. The goat farming business plan should take into consideration the feed costs.

Pastures and hay tend to make the biggest chunk of a goat’s diet. Grains should not be a major part of the diet of young goats. This is because bloating can occur due to indigestion. As goats grow older though, it becomes essential to include grains in their daily diet. The grain component in the total diet should range from roughly 10 percent to 16 percent. As for garden or home residues, make sure they are not rotten or too sugary. Concentrates are a common part of the supplementary feeding of goats. Their composition varies and your choice would depend on the nutrients your goats are lacking.

Health & Disease Management in Goat Farming

When doing goat farming, the health and well-being of your animals are foundational to the success of your operation. A comprehensive health and disease management program is not only vital for the welfare of your goats but also crucial for the profitability of your venture. It begins with a proactive approach encompassing preventive care, such as vaccinations, deworming, and regular veterinary check-ups. Tailoring a vaccination schedule to the specific diseases prevalent in your region is paramount to safeguarding your herd.

Ensuring proper nutrition is equally essential, with a focus on providing a well-balanced diet tailored to the age, breed, and purpose of your goats. Adequate access to clean water is fundamental. The management of your goat’s environment plays a pivotal role, with clean, well-ventilated, and dry shelters reducing the risk of infections. Regular sanitation practices, including manure removal, are vital. Monitoring your goats for signs of illness and implementing quarantine and isolation protocols for new arrivals or sick individuals are crucial components of disease prevention. Maintaining meticulous records and having an emergency response plan in place adds an extra layer of protection. Continuous education and staying updated on evolving health challenges within the industry ensure that you can adapt to changing circumstances effectively.

Goat Farming Business Model

The goat farming business model revolves around a simple yet effective process that begins with acquiring both male and female breeding goats. These goats serve as the foundation of your operation, with the primary goal being the breeding of kids. As the goats reproduce, you nurture and care for the young goats until they reach the desired market age. At this point, you strategically sell them to the market, generating revenue. One of the key considerations in this business model is the management of feed, which constitutes a significant portion of the expenses.

Despite the expense associated with feeding, the revenue generated from selling the fully grown goats far exceeds the feeding costs and other operating expenses. This revenue surplus translates into a healthy profit margin. The beauty of this model lies in its repeatability, as you can cycle through this process multiple times throughout the year. This consistent breeding and selling strategy ensure a steady and predictable stream of income, making the goat farming business a financially sustainable and rewarding venture in the long term.

Capital for a Commercial Goat Farming Project

Starting a goat farming business requires capital. The capital is required for constructing the goat housings, purchasing the breeding stock, purchasing supplementary feeds and other costs associated with running a goat farming business. The amount of capital you need for your goat rearing business will depend on the size of your goat farming project. Your goat farming business plan should clearly outline the money required to start and operate a goat meat production business.

You can get a loan from the bank, or funding from investors, to use as capital to start your goat farming business. If you plan to raise capital from investors and a loan from the bank, you need a good goat farming business plan. If you don’t have access to investors and bank loan, you can use your personal savings and start small, and grow your business overtime. Goat farming is very profitable, so if you reinvest the profits you get, you can quickly grow. Even if you are not planning to get a loan, you should still get a goat farming business plan to guide you in starting and operating the business. It is essential for you to have a goat farming business plan before you venture into the goat farming business, so that you know all the costs involved and you make an informed decision.

Management And Labour for a Goat Farm

The number of employees you require for your goat farming project will depend on the size of your goat farming project. You will need goat keepers who will be responsible for f eeding the goats, cleaning and disinfecting the goat housings, and other duties. There may also be need for finance and marketing team, depending on the size of your goat production business. Your goat farming business plan should take into account the salary costs for all the people you are going to employ.

Marketing Plan

Developing a comprehensive marketing plan is a critical component of ensuring the success and profitability of your goat farming business. While the quality of your goat meat is undoubtedly crucial, effective marketing is equally vital in reaching your intended audience and maximizing sales. To create a tailored marketing strategy, you must first understand your target market. Identify your ideal customers, whether they are individual consumers, local markets, butcheries, restaurants, or other businesses. Gain insights into their preferences, needs, and buying behaviors, as this knowledge will form the foundation of your marketing approach.

Develop compelling promotional strategies to increase brand visibility and entice potential customers. This might involve offering special discounts, limited-time deals, or collaborating with local businesses to cross-promote your products. In today’s digital era, establishing a strong online presence is a must. Create a user-friendly website that not only displays your products but also communicates your farming practices and contact information. Additionally, leverage social media platforms to engage with your target audience, sharing valuable content about your goat farming journey. Invest in online advertising campaigns to reach a wider audience and consider participating in local events or farmers’ markets to showcase your offerings.

Carefully selecting the right distribution channels is equally pivotal. Consider the various options available, such as direct sales, farmers’ markets, abattoirs, butcheries, local retailers, or restaurant partnerships. Each channel offers unique advantages and considerations. Direct sales might involve setting up an online store, while farmers’ markets provide face-to-face interactions with customers. Local retailers can extend your reach to a broader audience, abattoirs & butcheries may buy in bulky, and collaborating with restaurants can give your product a premium positioning. Analyze your target market and business model to determine the most effective distribution channels that align with your goals.

The market for goat meat is very huge and is ever increasing. The annual global demand of goat meat is 5 million tonnes. That’s a lot! You can supply goat meat to abattoirs, local butcher shops, retailers, hotels, supermarkets, restaurants, wholesalers and individual consumers. Goat meat has to be sold whilst it’s still fresh, thus you should locate your goat farm close to your market. The goat production business plan ought to include a proper marketing plan to use in your goat business.

Goats can be kept for meat, milk, hair and fiber uses. This article and business plan is for goat meat production. The export market for goats is very huge! As you grow your goat farming business you will be able to export the goat meat to other countries. The largest importers of goat meat include United Arab Emirates, Indonesia, United States of America, Caribbean, South Korea, Angola, Taiwan, China, India, Middle East, European Union, Malaysia, Singapore, Brunei.

Keys To Profitability in Goat Farming

Achieving profitability in your goat farming venture hinges on a strategic approach that encompasses a multitude of crucial factors. First and foremost, breed selection is fundamental. Choose goat breeds that align with your production purpose and cater to local demand and environmental conditions. The quality and marketability of your goats are significantly influenced by your breed choices.

Efficient management practices play a pivotal role in optimizing resource utilization. This includes careful attention to feeding, housing, and sanitation. Minimizing waste and maximizing feed conversion efficiency can substantially impact operational costs. Moreover, a comprehensive disease management strategy is essential to maintain the health of your herd, reducing losses and veterinary expenses, ultimately contributing to higher profitability.

Crafting an effective marketing strategy tailored to your target market is equally vital. Whether you opt for direct-to-consumer sales, local markets, restaurants, or wholesale distribution channels, robust branding, packaging, and promotion can help you capture market share and maximize revenue. Cost control measures, especially in the realm of feed expenses, should be a consistent focus, with exploration of affordable and high-quality feed sourcing options. Additionally, maintaining meticulous records, planning for scalability, engaging in continuous learning, adept financial management, and embracing adaptability are all part of the blueprint for long-term profitability in the dynamic world of goat farming. Incorporating these key factors into your business model can help you build a sustainable and profitable goat farming operation poised for success.

Why You Need A Goat Farming Business Plan

A comprehensive business plan serves as a vital tool for gaining a deep understanding of the profitability of your goat farming business and the myriad factors that impact it. It provides a financial roadmap, helping you estimate initial investments, operational costs, and potential revenue streams. More importantly, it prompts you to identify and assess various factors that can influence profitability, such as pricing strategies, feed and healthcare costs. Additionally, a well-structured business plan allows for sensitivity analysis, enabling you to assess how changes in these key variables can impact your bottom line. This forward-thinking approach not only helps you anticipate potential risks but also equips you with the knowledge and strategies necessary to optimize profitability and ensure the long-term success of your goat farming venture.

A well-crafted business plan is a powerful tool in securing funding for your goat farming venture. It provides potential investors, lenders, or financial institutions with a comprehensive overview of your business goals, strategies, and financial projections. By showcasing your market research, operational plans, and financial forecasts, the business plan demonstrates that you have thoroughly assessed the risks and potential rewards of your goat farming business. This level of preparation and professionalism not only instills confidence in potential stakeholders but also serves as evidence of your commitment to the success of your endeavor. As a result, a strong business plan significantly enhances your credibility and increases the likelihood of securing the necessary funding to launch, expand, or sustain your goat farming operation.

Pre-Written Goat 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 goat farming business, we encourage you to purchase our well-researched and comprehensive goats business plan. We introduced the business plans after discovering that many were venturing into the goat meat production business without enough knowledge and understanding of how to run the goats business, how to keep the goats, 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 goat farming business plan will make it easier for you to launch and run your goat meat 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 goat farming business.

Uses of the Goat Farming Business Plan (PDF, Word And Excel)

The goat farming 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 goat production business
As a goat farming business proposal
Assessing profitability of the goat meat production 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 Goat Farming Business Plan (PDF, Word And Excel)

The goat farming 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
Industry Analysis
Market Analysis
SWOT & PEST Analysis
Operational Requirements (Including technical aspects of how to keep and rear the goats, feed requirements etc)
Operational Strategy
Why some people in goat farming business fail, so that you can avoid their mistakes
Ways to raise capital to start your goat farming business

The Pre-written goat farming business plan package consist of 4 files

Goat Farming Business Plan – PDF file (Comprehensive Version – 84 Pages)
Goat Farming Business Plan – Editable Word File (Comprehensive Version – 84 Pages)
Goat Farming Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 39 pages)
Goat Farming 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 goats, selling price of the goats etc, and all the other financial statements will automatically adjust to reflect the change.

Click below to download the Contents Page of the Goat Meat Production Business Plan (PDF)

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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 Goat Farming 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.

We wish you the best in your goat farming business! Check out our collection of business plans , and more business ideas .

Goat Farming Business Frequently Asked Questions

How do i start goat farming business.

You start the goat farming business by purchasing breeding stock (male & female goats). You also require goat housing, equipment and feed. A good goat farming business plan is also required.

How do goat farmers make money?

Goat farmers make money by selling goats for meat. Other goat farmers can also make money by raising goats for milk and wool. Our goat farming business plan is only for meat production.

What is the goat farming business model?

The goat farming business model is based on purchasing male and female goats. The goats will breed to produce kids which you then feed and raise up to maturity. After the goats mature, you then sell them for a profit. This is how goat producers make money.

Is goat farming a profitable business?

Yes, goat farming is a very profitable business. To attain profitability in the goat production business, you should select a good breed of goats, adequately feed them with cost-efficient feed, and have a ready market which you can sell to at a good price. Our goat farming business plan has financial statements that will show you the profitability of the business.

Can goat farming make you rich?

Yes, goat farming business can make you rich over time. However this is not a get-rich quick scheme. You have to be patient, have good business management skills and reinvest some of your profits into the business. After a few years following good business practices, goat farming can make you rich.

Which goat breed is more profitable?

The boer goat is one of the most profitable goat breeds as it is very efficient at meat production. Boer goats are superior breeds which grow fast with a heavy weight and good bone structure making them good for business profitability. Other profitable meat goat breeds include Kalahari Red goat, Nubian goat, Rangeland goat and Barbari Goat.

Can I get a loan for goat farming?

Yes, you can get a loan or funding for goat farming business. Banks often provides loans to goat farmers. Governments also provide loans and grants for goat farming business. You can also approach other funding organisations and NGOs to seek for funding. However they all require a good goat production business plan before they can give you a loan.

Are goats more profitable than cattle?

It depends. However under normal conditions, goats are more profitable than cattle. Also you get money from goats quickly as compared to cattle as goats reproduce faster.

Are goats a good investment?

Yes, goats are a good business investment, however you need to adequately take care of them and have a good market for them. A good goat farming business plan is also required to guide you in your business and ensure that you get a good return for your investment.

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business venture and at the same time provide the people of Iraq with the red meat they demand. This activity plan was created to help your feedlot achieve profitability and increase red meat production in Iraq. The plan has been developed specifically for your feedlot and addresses the issues you face.
Ranchland Gift Secures Location for New WT Research Feedlot
Brothers Mike and Gary Kuhlman made a land legacy gift of 42.84 acres of property adjacent to the Nance Ranch's west property line. The gifted land, valued at $425,000, will serve as the location for a new WT Research Feedlot and Education Center. "Working with the WTAMU Foundation, we have created a way for donors to make gifts of property ...

CATTLE FATTENING BUSINESS PLAN

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Starting Beef Cattle Fattening Farming Business in South Africa – Business Plan (PDF, Word & Excel)

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Housing and Equipment for Beef Cattle Farming Business

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Feed for Beef Cattle Fattening

Profitability of Beef Cattle Fattening Business in South Africa

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Advantages of Cattle Fattening Business

Keys to Profitability

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Pre-Written Goat Farming Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements

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