abattoir business plan

How To Start An Abattoir Business

An abattoir is a facility where livestock is slaughtered for the processes of meat preparation along with the production of other meat products. The meat and meat products produced are predominantly meant for the human food consumption market though other products and by-products are earmarked for other uses. With the incessant rise in the number of people starting livestock businesses it comes as no surprise why starting an abattoir is a strategic venture. Most livestock farmers still heavily rely on commercial abattoirs most of which are usually run poorly or are distant from them. Some of these abattoirs are in a deplorable state of filth thus posing health hazards for the subsequent consumers of products produced. This article shall take you along explaining how you can start an abattoir business and some abattoir business plan tips.

There is a deliberate reason as to why we mentioned how some abattoirs are not hygienic. This is meant to show you a loop hole or gap that you as an aspiring entrepreneur can capitalize on. The most prudent approach will be to establish a small scale abattoir that offers service to a particular geographical location (i.e. communities or localities). This is akin to opening private abattoirs which is a strategy that neutralizes the effect of a somewhat saturated commercial market (referring to the big players here). The small scale aspect will help ease financial burden and also makes it easier to uphold high quality control standards.

Another benefit will be that you would have created convenience to most livestock farmers who cannot easily access abattoir services usually far from them. This is not to say that you cannot start on a large scale – if you have the funds then you can do it. Some of the most commonly slaughtered livestock are cattle, pigs, goats and sheep . Thus your core focus can be on any of these or all of them and even more. Some abattoirs also incorporate the slaughtering of birds which is a broad domain that includes birds like poultry. Though meat is the major focus for most abattoirs you can diversify into making meat products or by-products.

There is a whole load of by-products that can be produced by an abattoir. We believe that if aspiring abattoir business owners seriously look into this they can make a whole lot more money. One common by-product is offal which is a hit amongst many customers in several parts of the world. Not forgetting leather which is a high-value by-product made from cattle hides. Bones and rendered meat can be used in stock feeds and fertilizers. By-products such as gelatin ( mainly from pigs ) can be used in making medications. Animal fat can be used in the making of detergents whilst other by-products such as lanolin can be used in the making of beauty products . By-products must be taken very seriously in an abattoir business – do not just dispose certain things as waste. Your abattoir business plan should clearly specify which products your abattoir will deal with.

Market Research

This is a precursor to commencing business operations because there are things you must ascertain beforehand. You have to find out the availability of a market, its segmentation, its needs and its characteristic demographics such as location, scale of operations and the like. You must also study current players on how they are conducting business. We are looking at things like services offered, business processes, strategies, marketing approaches, pricing and so on. In your market research you must take time to find out about pertinent regulations that you are required to adhere to when operating an abattoir business. There are certain health and environmental certifications that one must acquire from relevant authorities. So you must research on that or better still you can find out from established players. This will help you come up with a well detailed abattoir business plan.

Make Sure You Have A Comprehensive Abattoir Business Plan

The failure to plan is the beginning of business failure. The abattoir business plan must be clear and succinct enough to give your potential partners, clients and investors an overview of what your objectives are. At the same time, it must be detailed enough to explain the operations of the business that you propose. At the very minimum you need to have the following included in your abattoir business plan:

• The mission, vision and operational strategy
• Market Analysis And Customer Segmentation
• A business case showing that the business is financial viable and sustainable
• A marketing and customer care plan
• An organizational chart and human resource policy
• A three-year expansion outlook
• A risk and rewards Analysis

Location And Premises

It is wise to establish the business close to livestock farming locations. This can actually give you a competitive edge over other abattoirs that might be situated quite far from livestock farmers. Be somewhere where there is an excellent road network for ease of accessibility. The actual place where the abattoir will be must have a reliable water source. For smooth disposal of effluent or other waste the terrain must be a gentle slope to avoid water logging or settling of waste in one place. The premises must be sufficiently large, well-lit, well-aerated and easily cleanable. The costs of purchasing or leasing the premises should be included in your abattoir business plan.

There is a range of equipment required for the smooth running of this business. An abattoir business is technical and that is why specialized equipment is needed. Slaughtering machines and slaughtering tools are required – manual and automatic. Other handling equipment such as bins, knives, sinks; counter tops, trays, tables, weighing scales and so on are needed. Some of the specialized equipment necessary is scalding and de-hairing machines, conveyor belts, hoists, splitting saw, shears and scalding tanks. Trolleys, stunners, de-hiders, de-horners, rail systems, stunners, gambrels and protective clothing are also needed. As you can see there is a broad range of equipment needed which will depend on your funds, scale of operations or types of services you will be offering. The abattoir business plan should include the costs of acquiring the equipment.

Staff And Management

It is highly advised that you hire or outsource people with qualified expertise who know what they are supposed to do. As usual the management needs can be effectively run by you and family members where applicable. Generally the staff and management requirements are informed by your scale of operations. When looking for people to work with look out for people with qualifications in abattoir processes, abattoir supervision, slaughtering processes, meat examination and classification amongst other related skill sets. The salaries and wages of all your staff should be included in the abattoir business plan.

This must be enough information to equip you with the necessary traction to kick-start your abattoir business. Ensure you stick to high standards of hygiene and adhere to all regulatory requirements. The abattoirs industry is growing and as long as you keep in mind the details discussed herein you will definitely make it.

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Abattior Business Plan

The importance of a solid abattoir business plan.

If you are planning to open a business in the meat packing industry, you will not get far without a detailed a complete abattoir business plan.

Having a solid abattoir business plan will be essential to you as you seek out startup funding, attract potential business partners and borrow money for ongoing expenses.

The meat packing industry can be quite a competitive one, and quite an expensive one to get started in. Without a good abattoir business plan behind you, you will be unable to attract the money you need to get in business and stay in business for a long time.

Your Financial Issues And Business Experience

While the abattoir business plan you create will resemble other business plans, in that you will need to discuss financial issues and issues of business experience, there are a number of additional considerations for such a plan as well.

The Federal And State Health And Safety Regulations

For instance, the abattoir business plan you create will need to take into account both federal and state health and safety regulations, as those regulations could have a profound impact on your business going forward.

Attracting Qualified Workers

Your abattoir business plan should also discuss how you plan to attract, compensate and retain qualified workers.

For many years those in the meat packing industry have had problems hiring qualified help at wages they can afford to pay. It is important that the abattoir business plan you create discuss how you plan to overcome that common challenge.

Using An Accountant And Business Attorney

It is also important to have the abattoir business plan you write reviewed by a good accountant and a qualified business attorney. Having a second, and third, set of eyes looking at your abattoir business plan is essential.

For instance, the tax accountant who reviews your abattoir business plan may be able to make suggestions on how to structure your new business to reduce taxes and avoid potential liability issues.

The business attorney who reviews your abattoir business plan may also be able to make recommendations for the best way to structure your new venture.

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Sample Slaughterhouse Business Plan

• October 7, 2023

SLAUGHTERHOUSE BUSINESS PLAN SAMPLE

Thinking about setting up a slaughterhouse business? Are you having difficulty putting together good poultry, chicken, or cattle abattoir plan? Well if you do, we’re here to help.

Our slaughterhouse business plan targets people within this category. We offer reliable insights into how your plan should look like and some important areas you shouldn’t overlook.

Before we go further, we’d like you to know that simplicity should be the watchword. In other words, you should try as much as possible not to complicate the process.

Hence, this sample should provide enough guidance on how it should look.

EXAMPLE OF AN ABATTOIR BUSINESS PLAN FOR CATTLE, POULTRY, AND CHICKEN

– Executive Summary

Clean-cut Slaughterhouse Inc. is a business that handles the meat needs of our City. Located in the outskirts of Madison, Wisconsin, we are poised to offer top of the range slaughterhouse services.

Founded by the duo of Carlos Henderson and Louis Douglas, Clean-cut Slaughterhouse Inc. will compete favorably with the big players. To achieve this, we are putting in place the right structures necessary.

The founders have worked with major slaughterhouse brands in America. This has given them critical experience and expertise. As a result, we will not be starting from a position of disadvantage. We are deploying all our experience into making sure we succeed.

Our Services

At Clean-cut Slaughterhouse, our services are varied and include the slaughter of 7 types of animals which include cattle , pigs , sheep, horses, goats , poultry , and chicken.

Our other services include deboning and cutting of carcasses as well as the supply of butcher shops with our products. We have 2 main slaughter lines. But before animals are loaded onto the line, they undergo a healthy inspection.

This is done to ensure our products are safe for consumption. Hence the need for an inspection unit headed by qualified veterinarians .

We have seen the need to enhance the quality of services provided by slaughterhouses. As a result, we are coming with 3 decades of experience. By bringing our expertise and experience to bear, we are on course to establish one of the best slaughterhouses in Wisconsin and beyond.

Hence within 8 years of our operations, we expect to listed among the top 20 slaughterhouses in Wisconsin.

Our Mission

Quality of products and services are held dear at Clean-cut Slaughterhouse Inc. To achieve this, we have put our efforts at ensuring that only healthy animals are accepted.

Also, our state-of-the-art facility enhances hygiene as well as humane treatment slaughter of animals. As a result, only the best products are supplied to butcher shops .

Adequate financing is the lifeline of our operations. As such, we seek to source for a capital amounting to $1,500,000.00. This amount will be used for the purchase of equipment, building a slaughterhouse as well as for running costs. We have identified a bank through which the loan will be sourced.

However, only loans with considerably low-interest rates will be applied for.

SWOT Analysis

We have been careful to identify potentials as well as likely pitfalls for our business. This has led us to call for an assessment of our operations. As expected, important findings were made. This has enabled us to adjust and redouble our efforts where necessary.

i. Strength

We have the advantage of expertise and experience. In addition to these, our extensive network within the industry gives us a unique opportunity to boost our business operations significantly.

ii. Weakness

By objectively assessing our areas of weakness, we have identified them to include our immediate financial limitations. This is seen concerning major/established slaughterhouses who have bigger budgets.

This is key because the budget determines output or capacity. Luckily, this will only be short-lived as we will pursue an aggressive expansion drive.

iii. Opportunities

Opportunities are boundless. Hence our passion to float a business. Apart from the domestic market, the international market beckons. Markets within developing countries offer the biggest potential. Thus, while supplying the domestic market, we have plans to grow international.

iv. Threats

Our business can be disrupted by animal diseases. As a result, there is a huge drop in demand. Most importantly, having this knowledge helps us prepare beforehand. But in Inspite of preparations, we can only lessen the effects of such misfortunes.

Competitive Advantage

This is the language of business and we have structured our operations around it. Our areas of advantage include our use of the latest technology. We have discovered that most slaughterhouses used older equipment.

Although this is true, they carry out an overhaul after some years. This places us at an advantage. We have decided to always update our operations with the latest technology.

What more? Our personnel is our pride. In other words, they bring experience to the job. In addition to this, our wide network allows us to operate seamlessly.

Marketing Strategy

There’s little a business can achieve without marketing. Thus having an effective marketing strategy is necessary. At Clean-cut Slaughterhouse, we have decided to work closely with meat shops. These and more will be targeted.

All such activities will be headed by our marketing department. A lot of work was put into choosing our team.

Hence we’ve chosen people with a deep understanding of how our business works. Our result-oriented approach will spur us to achieve our target.

Sales Projection

We are in business for profits and growth. This is in addition to providing quality slaughter services. Hence we’ve seen the need for profitability assessment. Consequently, using available data, we’ve done a three-year projection.

This has considered several aspects of our operations. Results obtained show the following;

• First Financial Year.   $500,000.00
• Second Financial Year. $1,100,000.00
• Third Financial Year.  $3,500,000.00

Have you found the information provided here useful? We hope you have.

We’ve been able to simplify the process. We also advise that you strip your plan of ambiguity. But why? Because it gives greater clarity.

So what’s better than having a highly implementable slaughterhouse business plan ? Writing your plan isn’t enough. Implementation is equally important.

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Sample liquid nitrogen ice cream shop business plan, you may also like, sample tent rental service business plan, sample cake making shop business plan, sample laundromat business plan.

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Abattoir Business Plan Template

Explore Options to Get a Business Plan.

Are you interested in starting your own Abattoir Business?

Introduction

Global market size, target market, business model, competitive landscape, legal and regulatory requirements, financing options, marketing and sales strategies, operations and logistics, human resources & management.

Cattle Farm Business Plan Template

Written by Dave Lavinsky

Cattle Farm Business Plan

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

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

Download our Ultimate Business Plan Template here >

What is a Cattle Farm Business Plan?

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

Why You Need a Business Plan for a Cattle Farm

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

Sources of Funding for Cattle Farms

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

    Finish Your Business Plan Today!

How to write a business plan for a cattle farm.

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

Executive Summary

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

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

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

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

Company Overview

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

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

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

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

Include answers to questions such as:

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

Industry Analysis

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

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

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

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

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

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

Customer Analysis

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

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

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

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

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

Finish Your Cattle Farm Business Plan in 1 Day!

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

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

Competitive Analysis

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

Direct competitors are other cattle farms.

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

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

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

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

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

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

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

Marketing Plan

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

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

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

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

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

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

Operations Plan

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

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

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

Management Team

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

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

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

Financial Plan

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

Income Statement

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

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

Balance Sheets

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

Cash Flow Statement

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

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

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

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

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

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

OR, Let Us Develop Your Plan For You

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

Cattle Farm Business Plan FAQs

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

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

How Do You Start a Cattle Farm Business?

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

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

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

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GENERIC ABATTOIR MODEL – UPDATE

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

Financial Analysis

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

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

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

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

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

Other compliance for abattoir include:

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

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

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Farming South Africa

How to Start an Abattoir in South Africa

Table of Contents

Standard Approval for an Abattoir in South Africa

A abattoir or slaughter facility has to be certified by an Provincial Executive Office of the province it is located. All abattoirs should be monitored by an Veterinarian Public Health Officer. Lets take a look on How to Start an Abattoir on your Farm.

How to apply to build an Abattoir

• Plan your building layout for your Abattoir.
• Plan how you are going to get rid of carcasses and spills.
• Visit the Department of Agriculture on provincial level.

Contact the Department of Agriculture Forestry and Fisheries

• Changing Room, Health and Safety

Plan your Layout of your new Abattoir

Planning Your building layout is Crucial to your abattoir plan. You need to take your layout plan with when you go an visit the Provincial Executive Officer (PEO)

Including in your Abattoir layout you need to have a processing area, refrigerated store, dressing table, cleaning basin and bleeding cones.

You need to make sure that you will have clean water and depending if you are starting a livestock or poultry slaughterhouse you will need electricity.

Visiting the Department of Agriculture on Provincial level

• You need to go and see your Department of Agriculture on provincial level. If you are not sure how to contact them you can get information from your local State Veterinary Service Office.
• They are there to help, so don’t be afraid to explain to them what your plans are and how you are going to dispose of carcasses and blood. If you are not sure, they will advise you and show you the correct methods of disposing of carcasses, feathers and other spills.
• The Provincial Executive Officer will have to evaluate and approve your building plan. It is highly recommended to visit the PEO first and discuss your plans so that he or she can assist you in the planning of your abattoir

Abattoirs are governed by the Department of Agriculture Forestry and Fisheries and they will have to come and visit your farm or smallholding to discuss water and disposable of carcasses.

Make sure that you have studied your water rights, have approval from neighbours and that you have your protocol in order when they start asking about your planning around fires and natural disasters. Once again, they are there to advise you if you are not 100% sure.

Changing Rooms and Health and Safety

Depending on the size of your abattoir, you might need to employ staff. Staff need changing rooms, toilets and possibly a shower if you are going for a 2000 plus per week slaughter house.

Your staff will need face masks, gloves, safety boots and overalls. Make sure that you include that on your business plan when visiting an PEO

Meat Safety Act

Safe meat refers to inspected meat by a health inspector and approved for human consumption. Only qualified meat inspectors are allowed to approve safe meat. Approved meat will have a purple stamp on each quarter of the carcass.

Chickens do not get stamped but need an inspector to approve the meat. In most cases, by South African law you are allowed to train your own inspector that has a minimum qualification of Grade 12. After 6 months, the trainee can do a trade test and become an qualified poultry meat inspector. An owner or manager of a chicken abattoir are never allowed to be an meat inspector.

People to contact for information on how to build a new Abattoir

Veterinary Public Health Contacts in your Province

Question: I would really like to start an Abattoir in my Township but I do not have enough space on my property.

Answer: You can follow the same protocol to apply for an Mobile Abattoir as a normal abattoir.

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Keywords related to this post:

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25 Replies to “How to Start an Abattoir in South Africa”

I would like to start a small or mobile chicken abattoir

I would like to start chicken abattoir at my community

I would like to start chicken abattoir at my community at a promised lease land from my couzine which is idlealing in Magalies- Mogale City. The place has no structure but vast. One also need funding.

I would like to start an Abbattoir on my community for slaughtering small livestock

Tau that would be great. Start planning and then go and see your Local PEO

I would like to start slaughter house in my community

I would like to start a pig abattoir in Radium Limpopo. I have a 23 hectares of land and currently started with pig farming. How much would it cost and how big should it be to eventually slaughter 100 pigs per day.

Can you be able to start Abattoir while you starting to have chicken business or you need a operational business to start the abattoir

You can start a abattoir without farming with chickens. It could be a separate business and also a service to other chicken farmers

I want to start an abattoir at my area

I wanna start our own abbatoir on the farm, i live in a rural area. I’ve been reading this.

Point of correction, you do not train your own meat inspector. I meat inspector is someone with Bio-science qualification with a minimum of 3 years of studying. In accordance to the meat safety act of 2000, a meat inspector must be a holder of at least Diploma in Animal Health and Production or Environmental Health from an approved institution

Yappy I understand your point regarding becoming a meat inspector, however when it comes to poultry, you can train your own. As you probably know meat inspectors has to be present at the day of slaughter to inspect and certify the meat and in some cases charge per carcass. Small scale chicken abattoirs slaughtering 250 birds per week can not afford an inspector nor is it feasible for an inspector to travel to rural areas and inspect only 250 chickens. So in rural areas, you are allowed to train poultry meat inspector as long as they have grade 12 and are not an owner operator. My information is directly from the Provincial Executive Office in Bredasdorp Western Cape. Thanks for your input – Regards

I’m interested in building an abourtour but can’t get componies that can supply me with equipment and proper planning.

I would like to start a small chicken abattoir in my community

I worked at Pick n Pay as a butchery manager for 15 years. Then five years ago I started my own small butchery business in Mtubaba Northern Kwazulu Natal. Now we want to start a small abattoir with a small community of this area. We do have registered Coperative. We wanted to know how we can get a grant from Agriculture in order to start our business.

I would like to start an livestock and a abattoir inmy area is this possible to have two major business at once

Yes absolutely. Not only will you lower your business operation cost, but you can make extra income with serving farmers around you

Do I need a PEO when buying a mobile abattoir?

I would like to start a certified mobile abbottoir for rabbits. What can I do and how much I need and where to go.

whoah this blog is great i love studying your posts. Keep up the good paintings! You realize, lots of persons are searching around for this information, you can help them greatly.

I wanth to start a poultry abattoir,I have business plan, abattoir an structure , letters of intent from local retails and p Big supermarkets. Where can I get funds from department of agriculture

I’m a fresh meat processor student, I’m doing an NQF level 3, which is the highest qualification of the meat teachnician. I want to open my own abattoir and butchery but I don’t know where to start. So would you please advise on what should I have and what should not do.

I am very sure that it will be covered in your NQ Level 3 course….

Hi, thank you FarmingSA for an informative article on the matter,, I would like to know, for rural areas where it’s only accessible via dirt roads is there any regulation about how far from the road would the abattoir have to be, to prevent dust contamination. Also, for rural and low throughput it does not seem feasible to keep a meat inspector.

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10 Things To Consider Before Starting An Abattoir Business In South Africa

Starting an abattoir business in South Africa requires careful planning and consideration of various factors. Here are 10 things you should consider:

• Legal and Regulatory Requirements: Familiarize yourself with the legal and regulatory framework governing abattoir operations in South Africa. Obtain all necessary licenses, permits, and certifications to ensure compliance with health, safety, and environmental regulations.
• Market Analysis: Conduct a thorough market analysis to assess the demand for meat products in your target area. Identify potential customers, competitors, and market trends to determine the viability of your abattoir business.
• Location: Choose a suitable location for your abattoir that is accessible to livestock suppliers and has proper infrastructure for transportation, water supply, and waste management. Consider proximity to target markets and availability of skilled labor.
• Facility and Equipment: Plan the layout and design of your abattoir facility, ensuring it meets hygiene standards and provides a safe working environment. Invest in appropriate equipment for livestock handling, slaughtering, meat processing, and packaging.
• Livestock Supply: Establish a reliable and sustainable source of livestock supply. Build relationships with local farmers, livestock auctions, or suppliers to ensure a consistent supply of healthy animals for slaughter.
• Staffing and Skills: Hire skilled and knowledgeable staff who have experience in abattoir operations. Provide training on food safety, animal welfare, and proper handling and slaughtering techniques to ensure compliance with industry standards.
• Quality Control and Food Safety: Implement strict quality control measures to maintain hygiene, food safety, and traceability throughout the slaughtering and processing operations. Adhere to South Africa’s meat inspection standards to ensure the safety of the meat products.
• Waste Management: Develop an effective waste management plan to handle and dispose of animal by-products, wastewater, and solid waste generated during the abattoir operations. Comply with environmental regulations regarding waste treatment and disposal.
• Marketing and Distribution: Develop a marketing strategy to promote your abattoir business and build relationships with meat wholesalers, retailers, restaurants, and other potential customers. Consider distribution channels and logistics for delivering your meat products to the market.
• Financial Planning: Conduct a comprehensive financial analysis, including startup costs, operational expenses, and revenue projections. Secure adequate funding through loans, investors, or personal investment to cover the initial investment and sustain the business until profitability is achieved.

Remember, it is essential to consult with experts in the field, such as industry professionals, business advisors, or agricultural organizations, to gather more specific and up-to-date information on starting an abattoir business in South Africa.

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Starting a Butchery Business in South Africa – Business Plan (PDF, Word & Excel)

Posted by BizBolts | All Articles , Business Ideas , Business Plans , Retail Industry

A butchery is a very profitable business to start in South Africa. As the average income in South Africa has risen steadily, meat consumption levels in the country have skyrocketed over the past two decades. As incomes rise, meat is becoming more affordable to South African consumers, meaning most meals contain meat. More and more people are in need of protein rich foods such as meat. Over 280 000 tonnes of meat is consumed every month in South Africa. Over the years, the demand for all types of meat has been on the rise.   It is evident that this is a business market that you can explore. A butchery acts as a middle man between the consumer and the farmer.  This article will outline how to start a butchery business in South Africa, and the butchery business plan – PDF, Word and Excel.

A butchery is a lucrative business, providing income for thousands of entrepreneurs, but there are some essential things you need to do before you venture into the butcher shop business. You have to decide on the size of your butchery; location of your meat shop, the kinds of meat you will sell, and your target market. These choices will be affected by the amount of capital you have, and the market you are targeting. You should carry out a feasibility study, market research and have a good butchery business plan before you venture into this business.

Butchery Business Model

Most butcheries source their meat from various farmers, meat wholesalers and abattoirs in order to supply meat cuts to the public and commercial enterprises such as restaurants and caterers. Others process meat into products such as biltong, boerewors, pickled meat, and cold meat. Consumers can buy the meat straight from the butchery or have it delivered. Besides having to source and buy stock, taking deliveries,  and/or collecting stock, you also need to know how to store the meat properly. You also need to understand how to use cutting machinery to prepare the meat. In addition, you must have the skills necessary to serve customers well. Nowadays, a lot of people have a “farm to table” attitude, and they insist on knowing where their meat is coming from. In order to become a successful butchery, you need to have good relationships with the farms you source your meat from and be transparent with your customers. You may also need to be aware of the slaughter techniques and other ethical considerations, especially when preparing Halaal and Kosher meat. Customers really care about such issues and will likely select a small butchery over a large enterprise because of the clarity on the meat’s provenance and its ecological and ethical merits.

Market Research

Before you start any kind of business, it is always best to research the market. By studying your market, you can be in a better position to determine your target customers, the right business location, and affordable meat suppliers for your butchery business. You need to understand who your potential customers are and where they are located. Market research also allows you to understand the specific kinds of meat that are in high demand. According to recent reports, fresh meat is the largest category of meat consumed in the country. This is followed by chilled raw packaged meat, processed meat, whole cuts, ambient meat, and cooked meats. Also, the consumption of meat is higher among females than males. Conducting market research will also put you in a better position to find the most profitable location for your butchery. Johannesburg is believed to be the largest meat market in South Africa, followed by Cape Town and Durban. To increase the profitability of your business, you should be able to go further and understand the demographics of your potential customers. This allows you to identify your target market and learn about them, including their average income and consumption habits. With proper market research, you will be in a position to set up a profitable butchery business.

Location & premises

This is an important decision to make before you start a butchery business. It’s important that you locate your butchery close to your target market. Consider the amount of road traffic, find an easy accessible location where people can stop and quickly get service. There are several possible locations, including shopping centres, malls and the CBD. Opening a butchery close to places that typically have braai areas such as parks and lakesides could be ideal depending on your target market. By talking to people who frequent the park or the lakeside area you are targeting, you could discover that they have to drive long distances to get fresh meat to braai. By opening a butchery nearby you will be solving a problem. You can also collaborate with the owner of a chilling spot that sells alcohol to create a buy and braai set up. The two businesses will feed into each other, there will be no need to compete.

It’s common to see hanging animal carcasses when you walk into a butchery. The cutting, and most of the work done by the workers often happens at the main floor as customers continue to enter and leave the store. However, there has to be some sort of storage system where you put some of your carcasses instead of having it all on display. Butcheries vary in sizes, the amount of space you need depends on how big your market is and what type of meat you will be selling. Your butcher shop business plan should cater for the costs of renting or buying premises.

Competitive Analysis

After conducting your market research, you need to determine where your business stands among various other competitors. The meat market in South Africa is broad, consisting of both large and small players. Some of these include large retail supermarkets that sell a variety of fresh, frozen, and processed meats. You will also compete with well established butcheries that have been operating for decades. There are other small players that are coming up that you should look out for. Understanding who your competitors are will help you figure out what your competitive advantage is. If you can source your meat at affordable rates, you can penetrate the market easily by offering affordable prices. If your advantage is quality, you can sell yourself as a premium butchery. There is a need for a thorough competitive analysis in order for you to determine what sets you apart. When it comes to analyzing your competitors, you must be proactive rather than reactive. With a properly researched competitive analysis, you can determine how you can enhance your own business strategy and unlock ways to outdo your competitors. It becomes easy to keep your customers’ attention. A competitive analysis will help you develop a competitive edge over others in your industry.

Equipment for Butchery Business

You need various equipment for your butchery business. The equipment you need will depend on the size of your butchery business and the kinds of meat you will be selling. Required equipment include industrial deep freezers, cold rooms, display fridges, meat slicers, scales, knives etc. You may also buy a meat delivery van to enable you to transport the meat on your own. Your butchery business plan should cater for the costs of purchasing equipment.

The products to sell will depend on your target niche. The most consumed meats in South Africa are chicken, beef, lamb & mutton and pork in that order. So it will be advantageous to have all these meats in your butcher shop. Other products to consider include sausages, biltong, fish, goat meat, sea food, burgers among others.

It’s also essential to select the right meat suppliers for you butcher shop. You need suppliers who can provide affordable and quality meat consistently. There are two major options available. You can purchase slaughtered meat from meat wholesalers, distributors and abattoirs. Alternatively, you can source live animals directly from farmers eg cattle and poultry farmers. You will then have to slaughter the animals. Your meat shop business plan should outline the products you will be selling and the costs.

Staff & management

As a customer-centric butchery business, its important that you hire employees that are friendly and efficient. Your employees should be passionate about serving the clients. If you want to hit the ground running it’s better to hire a team of people who have experience in this business. Your staff members should be able to cut meat according to certain specifications. Inexperienced staff members need to get extensive training before they can be given intricate tasks such as meat cutting. The knives and machinery used at butcheries can cause serious injury. Depending on the size of your meat shop, the number of your staff will vary. Required staff include the block man, cashiers, logistics personnel, shop assistants and management. Your butchery business plan should cater for the salaries of your employees.

Some of the day-to-day operation of this business involves:

• Operating machinery
• Moving heavy carcasses
• Cutting and weighing meat
• Liaising with farmers/suppliers
• Managing Staff
• Serving customers

When you are handling food items you should always remain aware and alert by paying attention to what touches your meat. Food contamination can cause serious health issues. It’s also very important to ensure that you stick to all industry related safety measures in place. Safety measures involve having to check if your staff members are dressed appropriately.

Marketing Strategies

These days, the most successful business owners understand the digital landscape, and this applies to butcheries as well. You need to take advantage of social media in order to let potential clients know about your business. Another way to market your business is by participating in agricultural events, especially those with tastings and samples of your meat products. Consider providing free meat samples to potential high-volume customers, as well as clearly and consistently communicating your claims and practices on all marketing materials. Identify your target consumer types and learn to communicate with them in order to find out their needs. Find out where they shop and understand what attracts them to certain places. Do not completely discard the old-fashioned way of marketing. Make use of newspaper advertisements as well as flyers. Do not underestimate the power of “word of mouth.” Positive or negative reviews have a great impact on your butcher shop business. Many businesses get most of their revenue from referrals. In order for your business to succeed, you should take advantage of both traditional and modern marketing methods.

At 8,1% of total sales income by commodity, meat is the top contributor to the total retail trade sales. South Africans love their meat! Meat lovers enjoy fresh good quality meat that’s also reasonably priced. The market is vast. The annual demand of meat in South Africa exceeds 3 million tonnes per year! With South Africa’s braai culture, community stokvels, weddings and funerals, the demand to purchase meat in bulk is high. Businesses such as restaurants, b & b’s, supermarkets, fast food outlets, event coordinators, party planners usually get their meat supplies from butcheries. Individuals are also a huge chunk of the market!

Keys to Profitability

One thing that can determine the success or failure of your butchery is the location of your shop. Consider setting up your butchery close to residential areas or leisure spots. That will encourage consistent streams of business. If you are located far from traffic, consider providing speedy delivery services. Make sure that your shop is close to a good road network to encourage drop-ins. Also, ensure that you set up your butchery in a clean environment with adequate security and a consistent water supply. A profitable operating butchery requires specialized refrigeration, prep areas, and retail space. It is always a good idea to hire highly trained staff for top quality service.

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

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

Our business plan will make it easier for you to launch and run a butchery business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as the butchery business plan will lay out all the costs involved in setting up and running the butchery business. The business plan is designed specifically for the South African market.

USES OF THE BUTCHER SHOP BUSINESS PLAN (PDF, WORD AND EXCEL)

The meat shop 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 butcher shop business
• As a butchery project proposal
• Assessing profitability of the butchery 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 BUTCHERY BUSINESS PLAN (PDF, WORD AND EXCEL)

The business plan includes, but not limited to:

• Market Analysis
• Industry Analysis
• 5 Year Automated Financial Statements [ Income statements, cash flow statements, balance sheets, monthly cash flow projections (3 years monthly cash flow projections, the remaining two years annually),break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortisation]
• Marketing Strategy
• Risk Analysis
• SWOT & PEST Analysis
• Operational Requirements (e.g. equipment required, how to handle meat e.t.c.)
• Management of a Butchery Business
• Operational Strategy
• Why some South Africans in the butchery business fail, so that you can avoid their mistakes
• Ways to raise capital to start your butchery business in South Africa
• Directory (Contact details of butchery equipment suppliers, meat suppliers and wholesalers, abattoirs)

The butchery business plan includes technical aspects of how to manage a butchery business successfully. It also includes a mini-directory with contacts which will prove to be helpful in launching and running your butchery business. E.g. it will provide the contact details of the companies that sell meat (wholesalers) ,companies which sell butchery equipment e.t.c.

The Butchery Business plan package consist of 5 files

• Butchery Business Plan – PDF file (Comprehensive – 91 pages)
• Butcher Shop Business Plan – Editable Word File (Comprehensive – 91 pages)
• Butchery Business Plan Funding Version – Editable Word File (Short version for applying for a loan – 41 pages)
• Butcher Shop Business Plan Automated Financial Statements – (Editable Excel file)
• South Africa Meat Suppliers and Abattoirs Directory – Supplementary PDF File

Testimonial 6

It is with excitement and pleasure to inform you that I have been successful in securing a loan from my bank. This would not have been possible if not for the BizBolts Business Plan. Thank you for your help, my dreams are now coming true.

Testimonial 2

I am extremely pleased with the business plan and financial statements. The business plan is very detailed & it meets my requirements. I feel better equipped with tools that can help me secure funding.  I would have no hesitation of recommending your business plans to other people.

Testimonial 5

The BizBolts poultry business plan led us down the path from start to finish. Contact details of suppliers of key requirements were included in the business plan. It helped us crystallize our strategy, and the business plan was well received by the bank.

Testimonial 7

Thank you BizBolts for the business plan. I received the business plan immediately after payment, it was money well spent ! I was able to easily edit the business plan. After using the BizBolts business plan, I can wholeheartedly recommend their products and skills.

Testimonial 4

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

Testimonial 3

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

Testimonial 1

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

GET THE BUTCHERY BUSINESS PLAN (PDF, WORD AND EXCEL) - R500 Only.

We decided to make the business plan affordable to anyone who would want to start the business, and the price for the pre-written business plan is only 500 Rand.

We have several payment methods which you can use.

Payment Method 1 (Visa card, Mastercard, Credit card, Debit Card)

Click  Buy Now  below to purchase. After you have purchased, you will instantly see the download link for the business plan package on the screen. We will also email you the download link. Get instant access to the business plan now!

If you want to purchase multiple business plans at once using Visa Card/MasterCard 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.

Payment Method 2 (Instant EFT - FNB, Absa, Standard Bank, Nedbank, CapitecBank, Investec, TymeBank and African Bank. )

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

Other Payment Methods

• Cash deposit into our FNB Company Bank Account
• EFT Transfer to our FNB Company Bank Account

Call/Whatsapp us on +27606334830 for the other payment methods. (Whatsapp us by clicking the link https://wa.me/27606334830 ). Email: [email protected] .

About The Author

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

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Live sheep exports' likely end forces farmers to pivot instead of 'waiting on a government full of uncertainty'

ABC Rural Live sheep exports' likely end forces farmers to pivot instead of 'waiting on a government full of uncertainty'

Leaning against an old iron gate, staring out over the paddocks in the distance on her sheep farm, Rachael Plowman is reflecting on the past months in agriculture.

"We've had a long summer but it's not unusual. We do plan for this and these kinds of seasons," she said.

"We've had to feed a bit more feed than we normally would, but we've still got water and enough feed."

Ms Plowman farms with her husband Andrew on their 1,600 hectare property in Kojonup, Western Australia.

Growing up on the farm, she is no stranger to seasonal challenges.

"Being a farmer you always end up being a bit optimistic, otherwise you wouldn't do it," Ms Plowman said.

"I guess you plan for the worst, hope for the best in a way."

But like many other sheep producers in the state right now, the past weeks have dealt a devastating blow for WA regional communities.

'Hit after hit this season'

Federal Agriculture Minister Murray Watt flew into Western Australia earlier this month from his home state of Queensland to announce in front of a media-only press conference the transition plan to phase out live export by sea in 2028 .

Some farmers say the announcement was not unexpected , but it was the timing in which it was delivered.

"At the moment grain prices are very high and stock prices are very low. [We're] having to feed out more grain than average and then 'bam', now no live exports," Ms Plowman said.

"It's disappointing because it's not based on the science, it's purely for political reasons."

Like many others in the industry, the Kojonup farmer can see she cannot base her business on a government that is providing so much uncertainty.

Risk management planning

Having seen the change coming, the Plowmans have already begun adjusting their operations.

"Traditionally we've always mated a third of the ewe flock to prime lambs, to terminal sire, and two-thirds to merino rams," Ms Plowman said.

"This year we decided to go half merino and half terminal sire."

In layman's terms, the action taken by the Plowmans will result in a smaller overall flock, with less of the animals remaining on the farm.

While the Plowmans' business does not rely solely on the live export of sheep by sea, the ban will still be felt.

"Part of our risk management is to have wool as well as the meat products that we sell," Ms Plowman said.

"We are a mixed farm, we crop as well. Hopefully out of all of those something will be up in price."

'We've got to work together'

While understanding the negative reaction the government's decision had triggered, the farmers who had experienced trade volatility in the past saw the end of live export as an opportunity for new growth in the domestic market.  

David Thompson who farms sheep in the country town of Badgebup, 320 kilometres south east of Perth, said the economic value of live export had been misrepresented for years. 

"I view live export as the trade of last resort," he said.

"It's not a high-value trade, the numbers going through are less and less every year, and the numbers going through abattoirs are more and more every year."

Mr Thompson said sheep had evolved over the decades to a point where farmers could profit from the domestic market, but the industry needed to come together to help shift consumer attitudes.  

"We've made enormous gains genetically in the last 15, 20 years [and] we breed a sheep that doesn't rely on the live export trade to make the business work," he said.

"We've got a really good product and we've just got to get better at marketing it and producing it.

"The processors and the farmers need to work together, we've got to play a big game altogether."

Robert Rex farms 110km down the road at Arthur River and would like to see the continuation of the live export trade as a market.

But, he said, producers had overcome adversity in the past and would do the same again.

"Things went sour in 2011. It turned around pretty quickly and we've had the best years ever just recently," he said.

"We're in the worst years ever at the moment, but it's going to turn around."

After the federal Labor government banned the live export of beef to Indonesia back in 2011, Mr Rex decided to breed sheep with a greater domestic appeal in anticipation of future bans.

"It was always going to be difficult to sell a sheep, so having an animal that can grow well and [we can] sell to the local abattoirs was our goal," he said.

"As time has gone on we've seen the benefit of it with more lambs and better sheep to sell."

Looking to the future

Jeff Miotti can remember a time where over half his business revolved around trucking sheep for live export.

"I can remember when we averaged 10 loads a week, years ago. Now we wouldn't have done more than 20 loads a year," Mr Miotti said.

Based in Kojonup, he owns and operates Miotti Transport, trucking livestock around the Great Southern.

"We've had to start diversifying, we cancelled brand new crates we had ordered, we could see things were changing," he said.

"Our work now revolves around abattoir work and farm-to-farm."

The truckie worries about the domino effect a decision like the phase-out could have on farmers.

"If the local carriers can't afford to keep going, who is going to do the farm-to-farm work, as well as for abattoirs?" Mr Miotti said.

He feels even if there was to be a backflip on the 2028 phase-out, the damage had already been done.

"I think the exporters now are getting stock from elsewhere, and they are going to look after the people who look after them," he said.

"Depending on what farmers do, it will be interesting to see if we even keep abattoirs. If farmers [stop producing] sheep it will be even hard for them to survive."

Processors planning to expand

Craig Heggaton wears two hats.

He is the chairman of the Western Australian Meat Marketing Co-operative Limited (WAMMCO) and a Kojonup farmer so knows firsthand the impact this could have.

"[Sheep exports] have played a huge role in the industry, so it's really dealt a blow," he said.

Putting on his WAMMCO hat, Mr Heggaton said the producer-owned co-operative started looking at solutions when the Labor government first unveiled their plans.

"We thought the only way we can do something is to try and increase our kill rate, which will hopefully take some pressure off the loss of market from live sheep export," he said.

"We are going to increase our capacity by half a million head by, hopefully, early '26."

Mr Heggaton said WAMMCO has committed to build a new facility regardless of where the industry goes.

"Sure, if we go to this expense we want to fill this chain. But if the sheep industry goes into a lull we will use it as need be."

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