Beef cattle fattening a a very profitable business to start in South Africa. First off let’s just familiarise ourselves with what beef cattle pen fattening is. Cattle pen fattening entails the feeding of beef cattle with a balanced protein-high diet for a period of 3-4 months under confinement. This is done to increase live weight of the cattle and improve the grade/quality of the beef so as to fetch higher prices when selling the beef cattle. Cattle fattening ensures that the cattle express their full potential for growth. Confinement of beef cattle in pens is meant to ensure that the genetic coding of the beasts is fully expressed in their growth and to minimize weight loss through movement.

The demand for beef in South Africa is very high. Over 80 000 metric tonnes of beef are consumed every month in South Africa. In case you’re wondering how you can start such a cattle fattening farming business then kindly read along. This article will outline how to start a beef cattle fattening business in South Africa, and the beef cattle fattening business plan – PDF, Word and Excel.

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

Land

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

Housing and Equipment for Beef Cattle Farming Business

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

Beef Cattle for Fattening

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

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

Feed for Beef Cattle Fattening

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

Profitability of Beef Cattle Fattening Business in South Africa

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

Market

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

Beef Cattle Fattening Farming Business Plan

Beef Carcass

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

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

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

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

The beef cattle feedlots business plan can be used for many purposes including:

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

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

The business plan includes, but not limited to:

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

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

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

The financial statements are automated. This implies that you can change eg the number of cattle, price of beef per KG etc, and all the other financial statements will automatically adjust to reflect the change. 

GET THE BEEF CATTLE FATTENING BUSINESS PLAN (PDF, WORD AND EXCEL) – R400 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 400 Rands.

We have several payment methods which you can use.

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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 sales@bizbolts.co.za and we will assist you.

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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 Instant EFT 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 sales@bizbolts.co.za and we will assist you.

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