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Dairy Farming Business Plan Guide

Table of contents, for frequently asked dairy farm questions: read here., for green fodder production: read here., for silage making process: read here., dairy farming business plan guide:.

Dairy Farming Business Plan – Introduction to Dairy Farming:- No matter what the season is and no matter what the place is “There is always a great demand for milk” in India. Due to the population increase and consumption of milk tremendously increasing day by day. The rising unemployment and people who are looking for starting a dairy farm in recent years are almost doubled. Milk production in India is expected to grow at about 3 to 4% every year. There are many people who want to get into the small-scale or large-scale dairy farming business. However, due to lack of knowledge and initial investment involved they are unable to set up a dairy unit. We advise you not to get into this dairy business unless you dedicate your effort and time on your farm round the clock. You are not necessarily starting a dairy farm on a commercial scale; you can start on a small-scale business and expand it to a large scale once you are aware of ins and outs of dairy farming.

Before starting a dairy farm, makes sure to follow these:

• Dairy Farming Business Plan #1- However as a beginner, you should definitely get some professional training from Agriculture Universities or Training centers of the Animal Husbandry Department or Krishi Vigyan Kendras or any private training dairy consultancies.
• Dairy Farming Business Plan #2 – Visit local dairy farms and talk to the management so you can get an idea of managing the farm. Always question them about “problems” and ask how they are overcoming them.
• Dairy Farming Business Plan #3 – Read any dairy magazines, online dairy blogs, and YouTube videos to get an overall idea of farming.
• Dairy Farming Business Plan #4 – If you don’t have capital investment and want to get a subsidy and loan the dairy farm, visit your local agriculture/co-operative banks for more information.
• Dairy Farming Business Plan #5 – As feed or fodder is the main component of dairy farming that directly impacts the profits; you must have good knowledge of green fodder cultivation practices and silage-making procedures. You can study the feed and fodder market in your region to find out the feasible and economical fodder solution.
• Dairy Farming Business Plan #6 – Initially, you must visit some cattle markets to observe animals on sale and talk with persons engaged with purchasing animals to get an idea of the best breed, animal prices, and milk yield of animals. You can also learn some negotiation skills.
• Dairy Farming Business Plan #7 – You should learn good labour management skills.

To encourage the rural agriculture sector and increase the milk production as per demand, NABARD (National Bank For Agriculture & Rural Development) helping farmers by providing subsidies on dairy farms and dairy farming loans through approved banks. One can avail of this by visiting your nearest commercial or co-operative or rural agriculture banks. One can get decent profits in dairy farming under good dairy management practices. In the following write-up, let us talk about the “Dairy Farming Business Plan” in detail. Let us take an example of 15 dairy cow farming.

Dairy Farming Business Plan – Requirements of Dairy Farming in India:- There are some components of dairy farming you should be aware of before setting up a dairy farm.

• Land – You must have some cultivated land for growing green fodder crops for your cattle on the farm. The land area depends on the number of animals (cows or buffalo’s). Usually, 2 acres of land is sufficient to feed about 15 cows.
• Shed – There must be a proper and covered secured shed in place before getting cows into your farm.
• Water – Clean and abundant water facility is required for both cattle and to grow the green fodder.
• Fodder – As cows need three types of fodder for best milk yield and high-fat content, you must have good fodder management from growing fodder to feeding fodder on daily basis. Dry fodder, green fodder, and feed concentrate (for extra nutrition) are required to feed the cows in your dairy.
• Breed Selection – Selection of a good breed of cows that yield more milk is essential in dairy farming. Good milk yielding cows such as “Jersy”, “Red Sindhi” “Holstein Friesian (HF cows)”, “Sahiwal”, “Gir”, “Deoni” and “Ongole” etc.
• Labour – Labour is a major task in dairy farming, the selected labour should be very good at handling the farm activities including growing green fodder. It is better to give one or two days of training so that they can understand the routine activities of dairy.
• Vaccinations – To control diseases and protect cow health, you must have a proper vaccination schedule. For this purpose, you can hire a veterinary doctor for routine checkups and medication of cows. For the vaccination schedule, see the vaccination schedule table at the bottom of this article.

Dairy Farming Business Plan – Shed Construction:- Well ventilated and the spacious shed is required for dairy farming. Hygienic conditions are very important in the shed for cattle health. When it comes to space, it is recommended to have 8 feet x 12 feet area for 1 cow. So total space required for 15 cows is about 120 feet x 12 feet. However, this area is not fixed and depends on cow size. Cow feeders should be constructed in between with a separation wall so that the cows can be fed from both sides facing head to head each other; this is what is called a “Head to Head arrangement”.

Care should be taken while constructing the dairy shed. The selected location should be elevated to prevent any water stagnation around the shed and it also provides well ventilation (sunlight and air). The dairy shed roof should be made with asbestos sheets and the floor should be made of either bricks or cement with enough inclination. This can provide good drainage for cattle urine and excrete. The shed should be cleaned daily to maintain hygienic conditions. Collect the manure on daily basis and store it somewhere outside of the shed. You can also make an outlet to the shed so that whenever the shed is cleaned the cow urine any leftover manure can flow into the field. All electrical fittings and water supply requirements should be fully filled as per need in hot areas, it may need to have fans and coolers for cows, especially in summer.

Dairy Farming Business Plan – Fodder Management:- Fodder management is very important in dairy farming. The daily milk yield of a cow depends on the type of fodder and the nutritional facts of the given fodder. High-yielding cows should be given 1 kg of concentrate along with mineral mixture to get 2.5 liters of milk yield. For example, if a cow yields 15 liters of milk daily then these cows should be given 6 kg of concentrate with a mineral mixture.

There are three types of fodder that can be provided under dairy fodder management practices.

• Dry fodder: wheat hay, kutti (rice / pady straw), chokar (wheat bran),
• Green fodder: Any leguminous crops which are good in protein supplements. For example Any gram crop, barseem, maize/corn, masoor, and hybrid grass-like CO-3 and CO-4, niper grass etc.. These green fodder crops can be utilized to make silage. This silage is very nutritious and milk yield will be increased. Silage making is very important and especially it is needed in dry periods. The link will be given at the bottom of the article about “steps in involved in silage making or how to make silage for cattle”. Generally, 2 to 3 acres of fertile land enough to grow green fodders for 15 cows. However, the yield of green fodder depends on many factors.
• Concentrate and Mineral Mixture: Mineral mixture:- It is necessary to provide concentrate feed along with a mineral mixer on regular basis to prevent cows from mineral deficiency. All three types such as dry green and mineral mixture should be accurate proportions for best milk yield.

Note: The cost of feed may depend on the animal milk capacity. On average, the feed may cost about 200 to 250 rupees/day/cow.

Dairy Farming Business Plan – Water Supply:- Clean water supply is required for drinking and cleaning purposes of the shed. Arrangements can be done by providing overhead tanks on the shed.

Dairy Farming Business Plan – Selection of Dairy Breeds:- Successful dairy farming requires a good breed selection of cows. Select the dairy cow/cattle breed that is suitable for your climatic conditions and high milking capacity. You can visit your local farms and can observe the different breed types that are suitable. A crossbreed of HF cows (Holstein Frisian) with Indian Sahiwal. Or Jersey with Sahiwal or Jersey with Red Sindhi is preferable for the good milk yield. It is preferred to select the breed which produces milk of 20 to 25 liters/day. Artificial insemination plays a major role to cross with high-yielding breeds.

Dairy Farming Business Plan – Cow and Calves Management and Care:- Artificial insemination or mating of cows should be carried out after every 3 months (90 days) of calving. Indian cattle breeds take 3 years in reaching the maturity phase whereas high yield  Jersey crossbreed or HF cows reach maturity at 16 to 18 months and they will be ready for mating. In general, for every 13 months, cows should be calving. The lactation period of cows should be 300 days and the service period should be 90-120 days. The gestation period of cows is going to be 266 days. More attention and care are needed in the case of pregnant cows as they need more nutrition during this stage. Concentrate & mineral mixture should be given during the gestation period of cows and this feed intake should be increased as time passes to ensure proper growth of calves and their udder.

Dairy Farming Business Plan – Vaccination Program in Dairy Cow Farming:- Before giving any vaccination in dairy, deworming should be done to get better results. However, deworming should be carried out frequently and the veterinary doctor is your point of contact for this. The following table is the typical vaccination schedule in dairy farming.

Dairy Farming Business Plan – Vaccination Schedule in Dairy Farming:

Dairy Farming Business Plan – Bottom Line:- The above write-up can be assumed for Dairy Farming Business Plan in Tamil Nadu, Karnataka, Kerala, Telangana, Andhra Pradesh, Gujarat, Rajasthan, Punjab, Haryana, West Bengal, Madhya Pradesh, Uttar Pradesh, Bihar, Maharashtra, and other states of India. However, the labour cost, Cow breeds, feed cost, or green fodder production cost and inputs may slightly vary from region to region. You can expect excellent profits with proper dairy management practices, perfect planning, and dedication completely to the farm 24/7.

In case if you are interested in this: Quail Farming Business Plan .

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54 COMMENTS

Hello, my name is Anuj purwar, I am a student. And want to start organic farming with two members team MAYANK SHINHA and rishab pandey. We planned for a loan by the bank and use hydraulic solar panels energy for electricity which help us in earning money because of this electricity were given to our nearly farmers who use petrol, diesel water pump by which we decrease less use of pratrol. We are 17-19 year old and planed for this. We need your support to prove ourselves and promote the organic forming and start online sale of our crops from us to customers directly.

I am not sure about your question. You say solar and talk about Organic.

Read here about : Organic Farming .

Selling electricity to anyone except the government is prohibited in india. Please make sure you are not breaking any law.

GUPTA DAIRY FARM KARNAL Supplying Pure Breed and vaccinated Murrah Buffalo, Sahiwal Breed Cattle, Jersey Cow, Dairy Cow, Cow Heifer, Buffalo Heifer, Australian Cow, American Cow, and other types of Cows and Buffaloes…

We don’t sell any livestock or agriculture produce.

we don’t call or have personal support. You can post comments and get reply.

Respected Concerned person/ / Can you deliver the cows and buffalos throughout india?

Dear sir, I want to open new dairy farm in Jhabua (MadhyaPradesh). I have required 10 Buffalo with good quality and can give 10-15 litre milk per day. please send me the details about buffalo , price, purchasing locations , transportation etc.

regards dinesh bhayal

We don’t sell any cattle/buffaloes.

You must be an adult for eligibility of the loan for dairy farming.

hi i want to set up dairy farm, kindly suggest me the details in pdf, want to do at odisha. if u have, [email protected]

Soon we will introduce farming or agriculture pdf’s to download.

Hello, Can any one suggest the process of dairy loan. I will start dairy farming immediately.

For Dairy farming subsidy and loan, read this: Dairy Farming Subsidy .

You mean for dairy shed construction and design?

Above article is really helping. I have around 7 Bigha land in Kotdwar-Uttarakhand and looking to get in to dairy farm business, Can I expect a professional help from you ? like in Planning the dairy farm, loans and subsidy, good milk yielding cows and buffalo.

Glad the information is helping at least some people. We don’t have personal consulting support at this point in time. However, you talk to NABARD branch in your city for qualified agriculture/farming loans.

Hai, my name is Mohith and I from Telagana state, I want to start Cow farm. Please guide me.

Well, Mohith Dairy farming needs investment, patience and hard work along with dedication. You can not trust the third person in this business as feed management and care is utmost priorities of dairy cow farming. From, NABARD you can get a subsidy and loan for setting up a dairy cow farm. Here is some information which may be helpful: Dairy Farming Subsidy .

Dairy Cow Farming Project Report t .

Sir, I am from Odisha. I am interested to start a Dairy Farming In Odisha where can I get assistance? and necessary help. Please advise.

NABARD is your point of contact for any livestock subsidy. You can read >DAIRY FARMING SUBSIDY .

Hi, I am Prashant Deshmukh. I really interested to start a new Dairy farm business in Maharashtra. How to start, please guide me.

Well, to start a dairy farm, you must have proper planning, dedication. It requires your hard work. First, decide which dairy breed, you would like to go for. Feed management is very important in dairy farming. Make sure you have enough laborers to handle the farm. Our advice is to start with less number of cows and start increasing as you get more experience. Apart from this marketing is another factor for your dairy products. Here is some information which may help you. Read: DAIRY COW FARMING PROJECT REPORT .

Hello Sir, I am Rohidas Sapke and looking to start my own dairy farm business. Can you advise me is there any private institute who gives training on How to handle dairy farms/animal care/business related things and all?

Very soon, we will update training and consulting services addresses.

I am exploring possibility of dairy farming near Raipur in Uttarakhand.The subject is new to me as I am not a professional from this field.I would like to see a viable business plan,if you have one,for a midsized investment. Regards

It is really a resourceful information on every aspect. Thank you Can you please write on financial breakups, for shed, cows , fodder cost etc all occurring expenses. just as a template it will give an idea for us on financial planning.

Check these:

Dairy Farming FAQ .

How To Get NABARD Subsidy and Loan .

Dairy Shed Design and Construction .

Dairy Cow Farming Project Report .

Sir, I am 37 yrs old from Barshi, in Solapur district. We have some farm land and wish to start a dairy business from scratch. How can I start?

Read this: Dairy Farming FAQ .

Dear Sir, I really appreciate the guideline for my knowledge I am an MBA qualified. I hate jobs, I love business have a full plan to start a dairy farm business I have 5 acre land in one place 4 acre land in other areas which are in a part. Anyhow, I made a contact in our area and there is no a single dairy farm. This would be a great opportunity for me. But need knowledge of this business.

Umar Saood from pakistan currently working in UAE

Dairy farming is not simple as you think. However, with proper planning, dedication and hard work defiantly will pay you off. You cannot depend and trust third person.

To have complete idea. You better read all the dairy farming articles.

Read: Dairy Farming Information .

I am Mahesh and I want to know whether Coorg, Karnataka is best suited for HF breed cows, since we have 2 to 3 acres of land is coorg but due to heavy rain during June to October, we are still worried whether we can go-ahead for dairy farming with HF breeds. Your guidance and suggestions will help us further.

Hi I am a pure science graduate and I have interest in polyhouse and hydroponic agriculture. I want to start cultivation of vegetables in a small area like 1000 sq.m for commercial purposes..n establish my career on it. I like to spread it through out my state working as a professional consultant too. For this, I need proper training and guide and financial resources. Now plz help me to know all about high tech poly house, hydroponics that can help me to build my financial path as a grower and as a consultant too. Plese, help me show me the way. Thank u.

Dear sir new dairy farming business open in my village Bila gujarat so plz help me loan and ideas 7778014786 my WhatsApp number

hello sir, i am 20 yrs old and i want to open dairy farm. can you tell me about problems we face in this field.

Hello Mr. Reddy, Thanks for your effort to put this content in internet, it is very much informative. I am very much interested to start a dairy farm, but need proper guidance to set up this. I’m gathering information from youtube channels and some blogs like your. I may contact you to get some information.

Thanks Sahoo

very useful information sir Thank you

Hello sir, Iam r kanaka raj Ex-Servicemen Army I live from andaman and nicobar Islands. I want to open dairy farm. Can you tell me about problems we face in this field.

Please suggest the training institutes for dairy farming short courses.

Regards Mahesh

Subject: New Dairy Farm

This is Harish (farmer) from Telangana state, I’m really interested to start to start new dairy farm in my village I am having 5 acres land, Hence pls could you advice that from where to get the good livestock’s and what is the cost per cow. Pls could you share with me the shed diagram how to build for at least 10-12 cows.

Kind regards: Harish

Hi, Can you explain this business in financial terms….like cost of animals…on average how much they can produce milk….cost of milk….animal maintenance cost etc…if you can provide a table then it will be very useful

Dear sir I have plan to start up a dairy farm but I don’t have any idea I need some guid line to start up I need some ideas can u tell how can help me on this can u help me on this

My name is Obeng Kingsley an M. PHIL student at University of Ghana pursuing Agricultural science. I am currently rearing sheep but facing challenges in the housing system. I need advise on housing management system. thanks

Dear sir, I want to open new dairy farm in CUMBUM (Andhra Pradesh). I have required 10 Buffalo with good quality and can give 20-30 litre milk per day. please send me the details about buffalo , price, purchasing locations , transportation etc. is it supporting goverment like subsidy and any extra allowance.let me know sir,i donot have any idea.ping me your phone number sir.i need to talk to you..ok sir.

regards, SUDHARSHANREDDY.J

Hi, Do you have any worksheet to make business plan? I need to calculate EBITDA for my Dairy Venture.

Thanks in advance.

thanks so much for such relevant information that will guide us in our development in business.

hi, I want to set up a dairy farm, kindly suggest to me the details in pdf, want to do it at Haveri.

can you please inform me about loans from centre govt subsidy and financial loans ?

i want starting small scale from kerala . please suggest to me rules and regulations

can you suggest names high feeding cows ?

I want to start Cow farming. How much amount will be required for 15 number Cow farming inclusive of Construction, feeder, medical treatment and labour cost etc.

How much monthly income i get with 15 cows?

Hi everyone I am planing for Dairy farming.can any one tell about the cost and land requirements & government rules

nice information

The information about diary farming are very nice. I am very interested to farm which my own please help me regarding this business.

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Cattle Farming Business Plan Template

Written by Dave Lavinsky

Cattle Farming Business Plan

You’ve come to the right place to create your Cattle Farming business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their cattle farms.

Below is a template to help you create each section of your Cattle Farm business plan.

Executive Summary

Business overview.

Pleasant Hill Cattle Farm, located in Des Moines, Iowa, is a registered and licensed cattle farming company. The company operates a 500 acre farm that is home to over 300 cows, all of which are raised in an all-natural environment (no antibiotics, hormones, steroids, etc) and all animals are grass-fed. Pleasant Hill Cattle Farm is also fully equipped with the latest technology and equipment used in the cattle farming industry.

Pleasant Hill Cattle Farm is founded and run by Matthew Jones. Matthew has been a cattle farm operations manager for the past ten years, so he has in-depth knowledge and experience running a business in this industry. Matthew will run the general operations and administrative functions of the company and hire other employees to manage the sales and day-to-day operations.

Product Offering

Pleasant Hill Cattle Farm will be involved in the commercial breeding of cows to provide the following products:

• Ground Beef

Customer Focus

Pleasant Hill Cattle Farm will target all residents living in Des Moines, Iowa and the surrounding areas. We will also target supermarkets, restaurants, and other retailers who are interested in selling our products to the public.

Management Team

Pleasant Hill Cattle Farm’s most valuable asset is the expertise and experience of its founder, Matthew Jones. Matthew has been a cattle farm operations manager for the past ten years, so he has in-depth knowledge and experience running a business in this industry. Matthew will run the general operations and administrative functions of the company and hire other employees to manage the sales and day-to-day operations.

Success Factors

Pleasant Hill Cattle Farm will be able to achieve success by offering the following competitive advantages:

• Management: The company’s management team has years of business and marketing experience that allows them to market and serve customers in an improved and sophisticated manner than the competitors.
• Relationships: Having lived in the community for 20 years, Matthew Jones knows all of the local leaders, media, and other influencers. As such, it will be relatively easy for Pleasant Hill Cattle Farm to build brand awareness and an initial customer base.
• Quality products at affordable pricing: The company will provide quality products at affordable pricing, as it has high-quality equipment and uses the latest techniques.
• Good packaging: Pleasant Hill Cattle Farm will utilize product-oriented packaging materials that can reduce the damage in the products at the time of supply.

Financial Highlights

Pleasant Hill Cattle Farm is currently seeking $750,000 to start the company. The funding will be dedicated towards securing the farm land and purchasing the necessary equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff and marketing costs for the farm. The breakout of the funding is below:

• Land and Equipment: $250,000
• Cattle Care Supplies: $100,000
• Overhead Costs: $100,000
• Three Months of Overhead Expenses (Payroll, Rent, Utilities): $150,000
• Marketing Costs: $50,000
• Working Capital: $100,000

The following graph below outlines the pro forma financial projections for Pleasant Hill Cattle Farm.

Company Overview

Who is pleasant hill cattle farm.

  Pleasant Hill Cattle Farm is founded and run by Matthew Jones. Matthew has been a cattle farm operations manager for the past ten years, so he has in-depth knowledge and experience running a business in this industry. Matthew will run the general operations and administrative functions of the company and hire other employees to manage the sales and day-to-day operations.

Pleasant Hill Cattle Farm History

Matthew Jones is an entrepreneur who seeks to contribute to the growing US economy through cattle farming. Pleasant Hill Cattle Farm will become a recognized cattle farming company in Des Moines, Iowa, ensuring a continuous supply of cattle, milk, meat, and other dairy products.

Matthew has selected an initial location and is currently undergoing due diligence on it and the local market to assess if it is a suitable location for a commercial cattle farm.

Since incorporation, the company has achieved the following milestones:

• Found a farm location
• Developed the company’s name, logo, and website
• Determined supply requirements
• Began recruiting key employees

Pleasant Hill Cattle Farm Services

Industry analysis.

Pleasant Hill Cattle Farm competes against large-scale cattle farmers in the U.S. With the largest fed-cattle industry in the world, the United States is also the world’s largest producer of beef, primarily high-quality, grain-fed beef for domestic and export use. According to the USDA, beef cattle production in the US is one of the largest agricultural industries, making up 17% of the agricultural sector. Though the industry has declined slightly in the past few years, the market size of the Beef Cattle Production industry is expected to increase by 4.5% over the next five years.

Improving the living standards of the people in the country has resulted in a shift in meat preferences, with most choosing beef-based products rather than products derived from pork and chicken. This trend has helped increase revenues and allowed the industry to grow. However, the beef cattle production industry faces many challenges including droughts, the price of feed, and the increasing popularity of plant-based diets.

Customer Analysis

Demographic profile of target market.

Pleasant Hill Cattle Farm will primarily serve local residents and retailers of cattle dairy products and meat within a 30-mile radius of the farm. These businesses typically gross from $5 million to $10 million in annual revenues and source their supplies from within a 30-mile radius of their facilities.

The precise demographics for Des Moines, Iowa are:

Customer Segmentation

Pleasant Hill Cattle Farm will primarily target the following customer profiles:

• Grocery Stores
• Local Residents

Competitive Analysis

Direct and indirect competitors.

Pleasant Hill Cattle Farm will face competition from other companies with similar business profiles. A description of each competitor company is below.

Shayla Farms

Shayla Farms is one of the large-scale cattle farms in the US, owning an 8,000 ha area. It has well-established relationships with local retailers. It has been in business for 32 years. Shayla Farms offers good quality dairy products and meat. It also has automated equipment and machines, which helps in improving its operations. Moreover, it is also known for delivering large orders at the right time without delay.

Crimson Cattle Farm

Crimson Cattle Farm has been operating since 1995 and is a well-known company that provides good quality beef with affordable pricing as it has effective and efficient cattle rearing machines. It majorly targets local companies and retailers and has a large distribution network that can serve customers up to a 500-mile radius. Crimson Cattle Farm also has a very effective distribution and supply chain network. However, Crimson Cattle Farm’s offerings are only limited to beef.

Cattle USA has been in business for the past 50 years and enjoys great success. It is one of the largest beef producers in the 200-mile area. It easily caters to local residents primarily due to its prime location. It provides beef and a variety of dairy products including: cheese, yogurt, meat and milk.

Competitive Advantage

Pleasant Hill Cattle Farm will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

Pleasant Hill Cattle Farm will offer the unique value proposition to its clientele:

• Efficient and effective delivery network
• Good packaging
• Quality products at affordable pricing
• Providing excellent customer service and customer experiences

Promotions Strategy

The promotions strategy for Pleasant Hill Cattle Farm is as follows:

Social Media Marketing

Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The company will use social media to develop engaging content, such as sharing pictures of the cows and creating educational content about the cattle farm industry.

Website/SEO

Pleasant Hill Cattle Farm will develop a professional website that showcases pictures of the farm and the cows. It will also invest in SEO so that the company’s website will appear at the top of search engine results.

Word of Mouth/Referrals

Matthew Jones has built up an extensive list of contacts over the years by living and working in the midwestern farming industry. Since a number of local cattle farms have ceased operations, they have committed to Matthew that Pleasant Hill Cattle Farm will be their cattle supplier. They trust his work ethic and commitment to the local community.

Pleasant Hill Cattle Farm will highlight our location, cows, and products on a major billboard facing the busiest highway in town. The billboard will provide the location of Pleasant Hill Cattle Farm and the website URL.

Pleasant Hill Cattle Farm’s pricing will be moderate, so customers feel they receive great value when availing of the products. Pricing will be about 50% lower than retail prices to allow wholesalers and retailers to earn their margins.

Operations Plan

Operation Functions: The following will be the operations plan for Pleasant Hill Cattle Farm.

• Matthew Jones will be the Owner and President of the company. He will oversee all staff and manage client relations. Matthew has spent the past year recruiting the following staff:
• Sue Smith – will oversee all administrative aspects of running the cattle farm. This will include bookkeeping, tax payments, and payroll of the staff.
• George Baird– Head Farmhand who will oversee the farming staff and day to day operations.
• Ben Brown– Assistant Farmhand who will assist George.
• Frank White– Distribution Manager who will oversee the packaging and distribution of all products.

Milestones:

Pleasant Hill Cattle Farm will have the following milestones complete in the next six months.

• 6/202X – Finalize purchase of farm land
• 7/202X – Purchase farm equipment, supplies and materials
• 8/202X – Finalize contracts for grocery store, chain, and restaurant clients
• 9/202X – Purchase initial set of cows
• 10/202X – Hire and train farm staff
• 11/202X – Pleasant Hill Cattle Farm begins farm operations

Financial Plan

Key revenue & costs.

Pleasant Hill Cattle Farm’s revenues will come from the sales of cattle meat and dairy products to its customers. The major costs for the company will be the cost of land and equipment. The staff will earn competitive salaries allowing Pleasant Hill Cattle Farm to hire experienced workers. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

• Number of Cows: 300
• Average Revenue per Animal: $500
• Number of Products Sold Per Year: 100,000

Financial Projections

Income statement, balance sheet, cash flow statement, cattle farming business plan faqs, what is a cattle farming business plan.

A cattle farming business plan is a plan to start and/or grow your cattle farming business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Cattle Farming business plan using our Cattle Farming Business Plan Template here .

What are the Main Types of Cattle Farming Businesses?

There are a number of different kinds of cattle farming businesses , some examples include: Cow-calf, Backgrounding, Finishing, and Specific Breed.

How Do You Get Funding for Your Cattle Farming Business Plan?

Cattle Farming businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Cattle Farming Business?

Starting a cattle farming business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Cattle Farming Business Plan - The first step in starting a business is to create a detailed cattle farming business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your cattle farming business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your cattle farming business is in compliance with local laws.

3. Register Your Cattle Farming Business - Once you have chosen a legal structure, the next step is to register your cattle farming business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your cattle farming business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Cattle Farming Equipment & Supplies - In order to start your cattle farming business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your cattle farming business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful cattle farming business:

• How to Start a Cattle Farm Business

How To Create The Perfect Cattle Business Plan For Beginners

Creating a well-thought-out cattle business plan can make all the difference between success for the beginner farmer who makes one, and failure for the one that fails to write it.

This guide will help you create the perfect plan when starting your farm, even with little to no money .

Table of Contents

Reasons To Have A Business Plan

Having a workable business plan is important for the following reasons:

• It helps you raise capital from angel investors, relatives, friends, partners, and financial institutions like banks
• It acts as a living guide for the starting, implementation, operation, and ending of your cattle farm
• It helps keep all the involved persons in organic sync with the farm’s goals and objectives
• It boosts your chances of success with efficient management and acts as the stepping stone for a systematic record-keeping culture
• It helps you to theoretically analyze your business idea to measure its feasibility (practicality) and viability (success potential), and theoretically determine your strengths, weaknesses, opportunities, and threats ( SWOT analysis )
• It helps you plan for growth and expansion along the same operational procedures or branching into directly and indirectly related lines of action, such as value addition to your products

How To Write The Perfect Cattle Farm Business Plan

Writing the perfect business plan for a cattle farm doesn’t have to be challenging, whether yours is set to be a small-scale farm or a complex one.

To write an operational business plan, you must include:

• Organizational plan
• Management plan
• Financial plan
• Operations plan
• Marketing plan
• Exit strategy

Let’s take a closer look at each of these aspects.

Organizational Plan

The organizational plan provides a detailed description of the business concerning the reason for its existence, goals, and objectives.

The mission and vision statements usually appear in the executive summary of formal business plans.

If yours is an internal-use-only plan, you could place the two items in the organizational plan or leave them out altogether. However, this second option runs the risk of losing sight of what your vision is for the farm.

The organizational plan basically answers the question, “What business am I in?”. You can answer this question by listing your intended products, services, location, market, and what makes your business unique.

You could raise animals for milk, value-added dairy products, beef production, and high-quality semen. You can also make money selling live animals as calves, lactating cows, pet cows , and bred heifers.

Cattle services aren’t so popular, but you could look into cow tourism/cattle farm agri-tours, cow cuddling/hugging therapy, and educating aspiring and practicing cattle entrepreneurs.

Your organizational plan should also list your short-term and long-term goals and objectives for the farm. These could be guided by your reasons for the establishment of the farm.

Management Plan

The management of most small farms is easy. The farm owner doubles up as the farm manager and field worker, eliminating the need for an elaborate management plan.

Sometimes, family farm owners may receive free or paid assistance from family members or friends, making it necessary to expand the plan.

The management plan must also be detailed if the farm will involve other key players such as investment partners and specialized workers like the driver, farm manager, accountant, sales and marketing officer, and lawyer.

Your plan should provide details such as:

• All stakeholders enlisted by their experience in cattle farming or technical know-how of the business
• Names of staff and partners, together with their respective positions
• General responsibilities of each stakeholder
• The hierarchy of command from the management team down to the lowest employee on the farm

Financial Plan

Your financial plan can make or break your business. It comprises four key aspects:

• Your financial status and funds required: How much money do you have in savings or partner-raised capital? How much start-up capital do you need? And how much is required in operational expenses? Do you have an emergency or risk management fund? If you need outside money, what type of funding are you seeking? This could be credit card debt, grants, and loans from private lenders or commercial banks.
• Use of funds: What will your capital be used for? Typical uses include working capital, licensing, salaries/wages, infrastructure, pasture establishment/development, and daily operational costs. Other uses include cattle purchasing , raw materials for feeds, land, farm machinery and equipment, and unforeseen expenditure.
• Revenue model: How will your farm make money?
• Financial statements: You can’t improve what you haven’t measured. There’s every need to prepare financial reports like balance sheets, profit and loss statements, income statements, tax statements, and break-even analysis . You’ll also need to consider monthly cash flow projections, payback period , and repayment of loans and investor money with interest.

Operations Plan

The operations plan details the technical aspects of your day-to-day cattle-keeping business. It’s a detailed overview of how your business will run and how products will be manufactured.

It includes aspects such as:

• Feeding program: This details what you’ll feed your cattle to achieve the required nutritional levels and desired weights, production levels, and body condition. It shows the types of feeds and how they will be mixed and offered to cows.
• Quality assurance for products or services
• Health program: This details cattle treatment, vaccination procedures, disease prevention mechanisms, breeding protocols, vet and animal nutrition services, post-mortem procedures, and dead cow disposal measures.
• Operational strategy: Will yours be a cow-calf operation, feedlot finishing operation, backgrounding, zero-grazing, or open-range ranching?

Marketing Plan

The marketing plan provides details such as:

• Your target market
• Customer knowledge based on customer analysis of demographics, likes, dislikes, estimated disposable incomes, expectations, consumption behavior for the products you produce, and their location.
• Market analysis to learn cattle industry projections and prevailing market trends
• Pricing strategy for your services or products based on prevailing market prices or private calculations informed by your cost of production
• Competition analysis and how you’ll deal with business competition (both nearby farms and those out of state)
• Marketing strategy, promotion, and distribution of products or services

Exit Strategy

The exit strategy is useful when you want to leave the business permanently or temporarily. It shows when, how, and why you might exit the business. The most common reasons are prohibitive feed costs and ever-increasing operating expenses.

The exit plan details options such as:

• Selling your business to a larger farm (acquisition)
• Selling parts of the business or all of it to other smallholders, for example, through an auction
• Diluting or selling your ownership in a partnership farm
• Succession with a continuity plan for handing over to the next generation if you become incapacitated or your corporeal existence comes to an end.

When To Amend Your Business Plan

You might need to review and amend your cattle farming business plan along the way for the following reasons:

• Desire to change from one product line to another. You could shift from beef cattle like Hereford and Angus to dairy cattle like Friesians and Guernseys .
• Realization of objectives. You might realize the objectives you set out to achieve, making it necessary to change tactics if there’s nothing more to achieve.
• The departure of partners leading to a lower number of partners or a total shift to a sole proprietorship model
• Addition of new partners
• Substantive market changes or disruptions that warrant a change in standardized operation procedures
• The need to retreat to regroup if things haven’t been going according to plan and you wish to overhaul the business
• Changes in cattle, such as a shift from light-feeding cattle breeds to heavy feeders like Holsteins
• Changes in cattle feed crops. You might want to shift from grass-based farming to rearing cows using field forage crops like corn for silage.

Alex grew up in a rural area with chickens, cows, goats, and rabbits. He has always enjoyed waking up at 6 am to tend to his flock and vegetable garden. He bought his first cow at 25 and named her "104". In 2021, he set up an aquarium and now spends his lazy time watching his fish. He is happiest watching small animals and plants grow big, not to mention writing to share his farm-life experiences.

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How to write a business plan for a cattle farm?

Are you an aspiring cattle farmer looking to start up a business, or an existing one looking to expand and become more profitable? If so, then writing a business plan for your cattle farm is essential.

A well-crafted business plan can help you identify potential opportunities and risks associated with running a cattle farm, as well as guide you on how best to manage the operations of the farm.

In this in-depth guide, we’ll explore why it’s important to write a business plan for your cattle farm, what information is required to create one, what should be included in the document itself, and which tools are available that can make the process easier.

Let’s get started!

In this guide:

Why write a business plan for a cattle farm?

• Information needed to create a business plan for a cattle farm
• What goes into your cattle farm financial forecast?
• The written part of a cattle farm business plan
• What tool should I use to write my cattle farm business plan?

To draw up a roadmap

A business plan for a cattle farm helps you define your objectives and set goals for the next 3-5 years, which can be incredibly useful for achieving success in the long run.

The writing process of a business plan requires careful consideration of all aspects of running your cattle farm, from financial management to sales & marketing strategies and operational procedures.

Having these clear objectives laid out ahead of time will help ensure that your cattle farming venture runs smoothly and achieves its desired outcomes.

To compare financials and track progress

One of the main benefits of writing a business plan for a cattle farm is to be able to regularly compare your actual financial performance against what you planned in your forecast, and make adjustments where needed.

This enables you to maintain visibility on your future cash flows and make informed decisions about investments to grow your farm.

To secure funding

If you want to receive capital from investors or banks, you must have a comprehensive cattle farm business plan. 

Financiers will be looking closely at your venture's growth prospects, profitability, and cash flow to estimate the possible returns on their investment.

Now that you know why it’s important to write a business plan for a cattle farm, let's look at the information needed to create one.

Create your cattle farm business plan online!

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What information is needed to create a business plan for a cattle farm?

Carrying out market research for a cattle farm.

Conducting market research is an essential step before creating a business plan for a cattle farm. Market research can help you to estimate revenues and provide insights into potential areas of growth or decline.

When you embark on market research of your cattle business, you seek to answer the following questions:

• Is the cattle industry growing?
• What segments (processed milk products, beef processing and packaging, breeding services, and cowhide sale) of the market are most attractive?
• Who is the competition?
• How long does it take from calving to sales?
• What is the best time for breeding?
• What are sales and profit margins like?
• What are the major trends in the cattle industry? For example, consumers are more interested in organic-bred cattle than those bred using hormones, steroids, and antibiotics.

This information will help you create and communicate in your business plan the strategies that will give your farm the best chance for success.

Developing the marketing plan for a cattle farm

Creating a sales & marketing plan for your cattle farm is the next step.

Having a concrete action plan in place will be necessary to create an accurate budget for sales and marketing expenses in your business plan, and to ensure that you have sufficient resources to deliver your sales forecast.

The staffing and equipment needs of a cattle farm

Before starting a cattle farm business plan, it is also key to take into consideration the investments and recruitment plan. 

This will ensure that all necessary costs are accounted for and that sufficient capital is available to launch or grow the venture.

 Some of the costs you must be aware of includes:

• Land purchase
• Fencing the land
• Land preparation
• Water source or supplies
• Tools and equipment costs
• Cattle shelter 
• Cattle purchases
• Licenses and permits

Once you have gathered all the necessary information to create the business plan for your cattle farm, it is time to start building the financial forecast.

What goes in the financial forecast for a cattle farm?

The financial forecast of a cattle farm’s business plan will include important information like the Profit and Loss (P&L) statement, balance sheet, cash flow statement, and sources and uses table.

Let’s have a look at each table in a bit more detail.

The projected P&L statement

The projected P&L statement of a cattle farm business plan shows how much revenues it is expected to generate, how sales will evolve and how profitable it can be in the future.

The projected balance sheet of your cattle farm

The balance sheet of a cattle farm is an essential financial statement that provides a snapshot of the farm’s financial position at any given time.

It records the assets, liabilities, and equity of the farm and serves as a valuable tool for owners, investors, and lenders to understand the overall financial health of the venture.

Assets are what a business owns and uses to make money. Examples of assets for a cattle farm include:

• Machinery and equipment

Liabilities on the other hand are what the business owes, they include things like:

• Accounts payable (money owed to suppliers)
• Tax payables

When total liabilities are deducted from total assets, what is left is the owner’s equity which represents the net worth of the business for the owners.

The projected cash flow statement

A projected cash flow statement for a cattle farm is a financial document that shows how much cash the farm will generate and spend in the future. 

All transactions that involve the inflow and outflow of cash from a business are recorded in the cash flow statement.

This statement makes it easy for financiers to understand how much money your business produces (or will produce) and how much cash it will need for smooth operations.

The initial financing plan

An initial financing plan is important when writing a cattle farm business plan. It is also called sources and uses table. 

This table helps you figure out how much money you will need to start your farm, where it will come from, and what it will be used for.

Having this information all in one place makes it easier to plan your finances and prepare for the future of your business.

A solid financial forecast is the foundation for any successful cattle farm business plan. But to understand how relevant this financial data is, it's essential to provide context within the written part of the plan.

What goes in the written part of a cattle farm business plan?

The written part of a cattle farm business plan consists of 7 main sections:

The executive summary

The presentation of the company, the products and services section, the market analysis, the strategy section, the operations section, the financial plan.

The executive summary section of your cattle farm’s business plan should be a one-page (two-page maximum) summary presented in such a way that will convince investors and banks to read the rest of the plan.

The executive summary of your cattle farm business plan should begin with an overview of the farm itself, including key points such as the purpose of the business, its legal structure, its management team, and any pertinent information about the geographic area in which it operates.

After this should come a quick market overview highlighting who the farm sells to and who it competes with.

Then you should include key financials such as forecasted sales, growth, and profit, as well as expected cash flow projections and capital requirements.

This section of your business plan should include details about the ownership and legal structure of your cattle farm, your farm’s location, and information about the management team.

When writing about the legal structure, you should include information about the legal entity that owns the farm, such as whether it is a sole proprietorship, limited liability company, partnership, or other type of legal ownership.

You should also list the shareholders (people with a stake in the business) and the percentage of ownership each one holds.

The location section should provide an overview of the geographical area where the farm is located, with information about nearby cities and towns, access to major roads and highways, availability of water sources, climate considerations, and any other factors that could influence the success of the farm.

Then you should continue with the presentation of the management team which provides an in-depth look at who is running the farm’s day-to-day operations, including information about each individual's experience, education, and qualifications for their specific roles on the farm.

When writing the products and services section of your business plan for a cattle farm, it is important to clearly describe what breed of cattle (lisrace lumberjack, bos taurus, Angus cattle, etc.) you will raise and any other related services or products that you may offer. 

This should include information about the size and quality of the herd, as well as any specialized breeds or special care practices used in raising them. 

It is also important to outline any additional sources of income such as selling hay, feed, or providing agricultural consulting services. 

Additionally, outlining plans for expansion into new markets could help convince investors that this is an enterprise with growth potential.

When presenting the conclusion of your market analysis in your cattle farm business plan, you should touch on demographic and segmentation information, your target market and competitors, and details about any barriers to entry and relevant regulations that you must comply with.

The demographic and segmentation section should include information about the different customer segments on the market and their purchasing habits for each of the main categories of products and services. 

The target market section then zooms in on the segments you intend to serve and why your products and services match what customers are looking for.

Then you should explain who your main competitors are, and how your products and services compare to theirs.

You should also consider any potential barriers that can impede entry into the market (such as a limited availability of farm land for example) and relevant regulations that must be adhered to for compliance purposes. 

In the strategy section of your cattle farm's business plan, you should explain your competitive advantage, price strategy, marketing plan, milestones, and risks and mitigants.

To demonstrate the financial viability of your farm, you must be able to clearly explain what your competitive advantage is - i.e. how you intend to compete in an already crowded marketplace.

In addition, you should include details of your pricing strategy and show that it is profitable for you and attractive for customers.

Then comes your sales and marketing plan which outlines how you will reach your target markets, followed by any important and realistic milestones which are achievable within specified time frames.

Finally, you must detail any potential risks associated with your farm and possible solutions or mitigations for these risks.

The operations section of your cattle business plan should provide an overview of the functions and activities of your cattle farm. 

It should cover information such as the staffing team, roles of staff members, recruitment plan, operating hours, key assets, and intellectual property needed to operate the farm.

A cattle farm may have the following type of staff on its payroll:

• Farm manager
• Slaughterer
• Veterinarian

For example, if you plan on hiring a veterinary technician or farm manager, explain their experience requirements and how they will contribute to the operation of your business.

You should also include your schedule and operating hours to give investors an idea of what a typical business day for your farm looks like, as well as information on the main assets and intellectual property that the business requires to operate.

These assets include any resources such as land, buildings, equipment or technology essential for running the farm. If you plan on leasing or buying any of these assets, provide details about the timelines and costs involved.

Lastly, the operations section should include information about the suppliers that you plan to work with. Be sure to provide details such as the cost of goods, delivery times and any other relevant commercial terms.

This will give investors a better understanding of how you plan on running your farming operation.

The financial plan section of the cattle farm business plan will include the financial forecast (balance sheet, P&L and cash flow statements, and the sources and uses table) that we talked about earlier.

Now that you have a clear understanding of the content of your cattle farm business plan, it's time to look at the tools available for creating one.

What tool should I use to write my cattle farm's business plan?

In this section, we will look at three options for writing a detailed business plan for your cattle farm: writing it yourself with Word and Excel, hiring a consultant to do it, and using online business plan software.

Create your cattle farm's business plan using Word or Excel

Creating a cattle farm business plan with Word or Excel is a possible option but usually not the best one. 

On the plus side, both programs are relatively inexpensive. However, there are some significant drawbacks to using these programs to create a business plan.

Excel isn’t an easy tool to use, especially when it comes to creating financial forecasts without making mistakes. 

As a result, it will be hard for financiers to trust the accuracy and validity of your numbers, and, therefore, using Excel isn’t recommended unless you are well versed into the art of accounting and finance.

Drafting the written part with Word also suffers from severe flaws. You start from scratch with no instructions to aid you, forcing you to think long and hard before filling up the pages. It is also time-consuming and tedious to format your business plan with Word.

Hire a business plan writer to draft your cattle farm's business plan

Outsourcing the business plan for a cattle farm to a consultant can be a viable solution as they are used to writing such plans. But this solution also comes with certain disadvantages.

Business plan writers may lack the livestock industry expertise needed to anticipate sales and cost accurately, forcing them to rely on your assumptions. 

Hiring consultants to write a business plan is also expensive (budget a minimum of $2,000 or £1,500), with additional fees if the business plan needs to be updated after the initial version has been produced.

Finally, hiring a consultant gives you less control over the result than writing it yourself and your vision for the farm's future may not be adequately presented in the business plan.

Use an online business plan software for your cattle farm's business plan

Another alternative is to use online business plan software . 

There are several advantages to using specialised software to write a cattle farm’s business plan:

• You are guided through the writing process by detailed instructions and examples for each part of the plan 
• You can be inspired by already written business plan templates 
• You can easily make your financial forecast by letting the software take care of the financial calculations for you, without error
• You get a professional document, formatted and ready to be sent to your bank
• You can easily update your financial forecast and track it against actual financial performance to see where the farm stands

If you're interested in using this type of solution, you can try our software for free by signing up here . 

We hope that this article has helped you to better understand how to write the business plan for a cattle farm. Do not hesitate to contact us if you still have questions.

Also on The Business Plan Shop

• How to write a business plan for a poultry farm
• How to write a business plan for a fish farm

Know someone in the farming industry? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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Tools for Developing a Business Plan for a Dairy Operation

Photo Credit Free-Photos from Pixabay

For ag professionals or producers who want to develop a business plan for the dairy operation, this library of resources provides tools that may be useful.

The site includes a Business Plan Template, Business Planning Factsheets, a Case Farm example to show how a finished product may look, and a set of Financial Resource Documents. These documents are a collection of sample reports that show the type of financial information to include in a plan. There is also a folder of Financial Tools at the site that includes both Excel spreadsheets and fillable PDF forms that can be used to create these financial reports.

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Cattle Farming Business Plan Template

OCT.08, 2013

The demand for livestock products such as milk and beef is at an all-time across the globe. This turn of events has resulted in an increase in the number of cattle farms that are being constructed across the world to meet the demand for these products. If you are thinking of doing the same, it is important that you prepare a cattle farming business plan to help you steer the farm in the right direction.

OGS Capital is a reputable firm that has been offering business plan writing services for the last ten years. We have managed to serve thousands of clients from all parts of the world, and our reputation online and offline is clear proof that we deliver on our clients’ expectations and promises that we make at the start of our engagement.

Reasons Why Cattle Farming is Profitable

Before venturing into any form of business, it is crucial that you understand how the industry works. Get to know the type of services and products that the customers want. Get an estimate of the total amount of money that you would need to start a business. Our team did a research about cattle farming to save you time and money, and here are the top reasons why this form of farming is profitable.

• High demand for high-quality cattle products
• Use of modern equipment has streamlined operations and operating costs
• Full array of Growth Opportunities

To venture into this business through the right channel, you need to understand the importance of a cattle farming business plan . We recently held an open discussion with our staff and clients whom we have in the past written cattle farming business plan for; and here is a summary of that discussion.

Understanding the Market Demographics

The market demographics are important and cannot be ignored no matter the type of business that you intend to start. To write a cattle farming business plan, you will need to understand these demographics and the only way to do that is through a feasibility study. For instance, you need to know the type of feeds that you should purchase and the best cattle breeds in the market.

Hence, the cattle farming business plan will not only require you to do the feasibility study but also give you additional information on how to run the business.

Encouraging Transparency and Avoiding Losses

Transparency will help in ensuring that the cattle farm is not only successful in the short term but also on a long-term basis. Therefore, it is important to come up with concrete ways of promoting transparency in the farm. The accounting department needs to have a system to ensure that it does not make unjustified payments to suppliers and other people who do business with the farm directly.

A cattle farming business plan prepared by one of our experts will provide clear guidelines on how to encourage transparency in the farm. We will also go an extra mile and come up with a decision-making strategy that you can count on to make the right decisions and avert losses.

Makes Hiring Easier and Promotes Efficiency

The cattle farm needs a group of experts to contribute to making the right choices. Our team will help you get experts from the job market that has the required skills and expertise. We will provide ideas on what you should look out for when evaluating the job candidates. Without this information being included in the beef cattle farming business plan, you may not succeed in getting financing for the business plan from investors .

In addition, we will interact with you and give you professional advice on how to promote efficiency in the farm to safeguard its profitability. Note that one of the main reasons most cattle farms fail is due to poor management and lack of efficiency among many other factors.

These are the three most important benefits that you are guaranteed to enjoy by seeking professional cattle farm business plan writing services . Get in touch with our support team for more information on what we can do to ensure that your cattle farm succeeds by filling this quick form.

We will carefully evaluate and consider all information that you provide before embarking on writing the cattle farming business plan, and this will ensure that it is as comprehensive and detailed as possible.

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How to Start a Cattle Farm

Starting a cattle farming business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful cattle farm.

Importantly, a critical step in starting a cattle farm is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

14 Steps To Start a Cattle Farm :

• Choose the Name for Your Cattle Farm
• Develop Your Cattle Farm Business Plan
• Choose the Legal Structure for Your Cattle Farm
• Secure Startup Funding for Your Cattle Farm (If Needed)
• Secure a Location for Your Business
• Register Your Cattle Farm 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
• Buy or Lease the Right Cattle Farm Equipment
• Develop Your Cattle Farm Marketing Materials
• Purchase and Setup the Software Needed to Run Your Cattle Farm
• Open for Business

1. Choose the Name for Your Cattle Farm

The first step to starting a cattle farm is to choose your business’ name.  

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your cattle farm:

• Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing . Come up with a name that reflects the desired brand and/or focus of your cattle farm.

2. Develop Your Cattle Farm Business Plan

One of the most important steps in starting a cattle farm is to develop your cattle farm business plan . The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your cattle farm.
• Company Overview – this section tells the reader about the history of your cattle farm and what type of cattle farm you operate. For example, are you a beef, calf, or a dairy cattle farm?
• Industry Analysis – here you will document key information about the cattle industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing products like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer 
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your cattle farm? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your cattle farm make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

3. Choose the Legal Structure for Your Cattle Farm

Next you need to choose a legal structure for your cattle farm and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the owner of the cattle farm and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a cattle farm together. The partners share in the profits and losses of the business. 

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a cattle farm include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a cattle farm is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your cattle farm, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

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4. Secure Startup Funding for Your Cattle Farm (If Needed)

In developing your cattle farm business plan , you might have determined that you need to raise funding to launch your business. 

If so, the main sources of funding for a cattle farm to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a cattle farm that they believe has high potential for growth.

5. Secure a Location for Your Business

The best way to find a location for your cattle farm is to consider the climate, soil type, and availability of water. You’ll also want to find a place with enough space to accommodate your herd and infrastructure like fencing and barns.  

6. Register Your Cattle Farm with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your cattle farm’s name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

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8. get a business credit card.

You should get a business credit card for your cattle farm to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

A cattle farm requires a number of licenses and permits to legally operate. These include a business license, zoning permit, health certificate for the animals, and a license to operate a slaughterhouse.

10. Get Business Insurance for Your Cattle Farm

The type of insurance you need to operate a cattle farm will vary depending on the location and scope of your operation. 

Some business insurance policies you should consider for your cattle farm include:

• General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
• Auto insurance : If a vehicle is used in your business, this type of insurance will cover if a vehicle is damaged or stolen.
• Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
• Commercial property insurance : This covers damage to your property caused by fire, theft, or vandalism.
• Business interruption insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
• Professional liability insurance : This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs. 

11. Buy or Lease the Right Cattle Farm Equipment

The equipment you will need for raising cattle will depend on the size of your farm, the type of cattle, and the facilities. Some basic equipment you will need includes a cattle prod, feed troughs, water troughs, and fencing to keep your cattle from wandering off the property. 

12. Develop Your Cattle Farm Marketing Materials

Marketing materials will be required to attract and retain customers to your cattle farm.

The key marketing materials you will need are as follows:

• Logo : Spend some time developing a good logo for your cattle farm. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
• Website : Likewise, a professional cattle farm website provides potential customers with information about the products you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your cattle farm.

13. Purchase and Setup the Software Needed to Run Your Cattle Farm

To run a cattle business, you will need software to track the animals and their movements. You will also need software to manage the finances of the farm. This software can help you keep records of sales and expenses, and make projections for the future. Finally, you may want software that can aid in marketing your cattle products.

14. Open for Business

You are now ready to open your cattle farm. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

How to Finish Your Cattle Farm Business Plan in 1 Day!

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With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

How to Start a Cattle Farm FAQs

Is it hard to start a cattle farm.

Raising beef cattle or other cattle farms is not difficult . In fact, there are many government programs and resources available to help you get started. The most important thing is to do some research and develop a plan that fits your goals and the needs of your cattle.

How can I start a cattle farm with no experience?

There are a few ways that you can start a cattle farm business with no experience. One way is to look for a mentor who can help you get started. Another way is to read books or articles about cattle farming, and apply what you've learned. Finally, you can watch videos or attend workshops about cattle farming.

What type of cattle farm is most profitable?

A successful cattle farmer that is the most profitable is one that specializes in beef cattle. To be profitable, this type of cattle farm needs to produce a high quality product that can be sold at a premium price. Additionally, this type of cattle farm is able to take advantage of economies of scale, which allows them to produce a larger quantity of beef cattle and dairy cattle while still maintaining a low cost per unit.

How much does it cost to start a cattle farm?

The cost of starting a cattle ranch varies depending on the size and scale of the operation. Generally, startup costs will range from $10,000 to $50,000. Some of the major expenses include land or pasture fees, livestock purchases, fencing, and feed.

What are the ongoing expenses for a cattle farm?

There are a few ongoing expenses necessary for a cattle ranch. One of the main expenses is feed for the cows. This can be in the form of hay, silage, or grains. Another expense is veterinary care. Cows need to be vaccinated against various diseases, and may need to be treated for parasites or other health issues as well. Other ongoing expenses can include fencing, water, and electricity.

How does a cattle farm make money?

Cattle ranchers can make money in a few different ways. One way is by selling the cattle to meat processors. Another way is by renting out the cows to other farmers for milk production. Finally, some cattle farmers sell their bulls to other farmers for breeding purposes.

Is owning a cattle farm profitable?

Yes, owning a cattle farming business can be profitable because the demand for beef is high, and people are willing to pay a good price for it. Additionally, cows can be raised to slaughter weight relatively quickly, so the farmer can bring in a good profit fairly soon after starting the operation. Finally, dairy cows are able to graze on pasture land, which is relatively cheap and easy to come by. This means that the farmer can keep costs low while still bringing in a good profit.

Why do cattle farms fail?

Cattle farm businesses can fail for a variety of reasons, such as a lack of planning, poor management, inadequate capitalization, or unrealistic expectations. Other common causes of failure include the high cost of feed and fuel, drought, disease, and pests.

Other Helpful Business Plan Articles & Templates

Starting Cattle Fattening Business Plan (PDF)

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

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

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

Beef Cattle Farming/Ranching/Breeding Business  

Dairy Farming Business

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

Market Research

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

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

Cattle Fattening Business Model

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

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

Land For Cattle Fattening

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

Cattle Feedlot Housing

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

Equipment for Cattle Fattening Business

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

Selecting Cattle for Fattening

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

Feed And Nutrition

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

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

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

Health & Disease Management

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

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

Management and Labour

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

Capital for Cattle Feedlot Business

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

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

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

Profitability of Cattle Fattening Business

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

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

Advantages of Cattle Fattening Business

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

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

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

Why You Need A Cattle Fattening Business Plan

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

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

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

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

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

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

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

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

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

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

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

The business plan include, but not limited to:

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

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

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

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

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

Testimonial 2

Many thanks for your incredibly efficient service and thorough business plan. I am very impressed with the business plan. Before I bought the business plan, I tried to do my own business plan – it was such a nightmare and it turned out badly, also not to mention the stress it caused me. I wish I knew about your website earlier!

Testimonial 6

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

Testimonial 1

StartupBiz Global provided a very professional and comprehensive business plan which I used for my business. The business plan was easy to edit, and I was able to get the funding which I wanted. I highly recommend their business plans.

Testimonial 3

I was extremely lucky to come across StartupBiz Global. Their business plan exceeded my expectations, and most importantly I was able to secure a loan from my bank. Thank you guys, now my dreams are coming true!

Testimonial 5

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.

Testimonial 4

The business plan which I purchased from your website saved me TIME and MONEY! The layout of the business plan was excellent. The financial statements were detailed and easy for me to edit. I will come back to purchase another business plan soon.

Testimonial 8

Just wanted to say I am very happy with the business plan and I will gladly recommend your products, thank you very much and have a great day.

Testimonial 7

I found Startupbiz Global online when I was in desperate need of a business plan. I was overwhelmed by the quality of the business plan, it’s comprehensive and well researched! I did not have to wait to get the business plan, I got it instantly after payment. I highly recommend Startupbiz Global, and would happily use them again in the future.

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

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

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

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

Cattle Fattening Business Frequently Asked Questions

What is needed for cattle fattening.

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

What cattle business is most profitable?

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

How long does it take to fatten a cow?

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

What breed of cattle gain weight the fastest?

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

How much space do feedlot cattle need?

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

Are feedlots profitable?

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

What are the advantages of cattle fattening business?

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

What is the business model of cattle fattening?

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

Where do feedlots get their feed?

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

How much do feedlot cattle gain per day?

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

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

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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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CATTLE FATTENING BUSINESS PLAN

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