Commercial cattle farming and fattening form the backbone of the beef industry in the country. In a lot of cases, cattle fattening can be part of a diversified farming enterprise, which can help manage production and market risks. The majority of cattle sold through abattoirs come from feedlots. This livestock can be self-produced or brought in, with commercial feedlots being the major finishers of beef. Beef cattle fattening a a very profitable business to start in South Africa. First off let’s just familiarise ourselves with what beef cattle pen fattening is. Cattle pen fattening entails the feeding of beef cattle with a balanced protein-high diet for a period of 3-4 months under confinement. This is done to increase live weight of the cattle and improve the grade/quality of the beef so as to fetch higher prices when selling the beef cattle. Cattle fattening ensures that the cattle express their full potential for growth. Confinement of beef cattle in pens is meant to ensure that the genetic coding of the beasts is fully expressed in their growth and to minimize weight loss through movement.
The demand for beef in South Africa is very high. Over 85 000 metric tonnes of beef are consumed every month in South Africa. In case you’re wondering how you can start such a cattle fattening farming business then kindly read along. This article will outline how to start a beef cattle fattening business in South Africa, and the beef cattle fattening business plan – PDF, Word and Excel.
Before you start a beef cattle farming business in South Africa, there are some important decisions which you have to make. You have to decide on the size of your beef cattle fattening business ie how many cattle you will have at your cattle farm. There are many different cattle breeds, so you have to select which breed you will use, location of your business, and your target market. The size of your beef cattle farming business will depend on the amount of capital you have, and your target market. It’s important that you get a good beef cattle fattening business plan before you start beef cattle fattening business in South Africa.
Business Model
Cattle pen fattening is the feeding of beef cattle with a balanced, high-protein diet for a period of 3–4 months under confinement. Animals can be fed in different ways in order to obtain a heavy carcass. When purchasing your cattle, it’s important to evaluate the potential for beef fattening because different types of cattle respond differently to feed. You should also consider the market price of various beef grades. You should take into account the cattle’s breed, gender, maturity type, and age. Some cattle are more suitable for fattening than others. It’s very important that you give your cattle the right quantity and type of feed. The success of your cattle fattening business depends largely on the ability of your cattle to gain weight and to produce high-quality beef. These factors are affected by the quality and quantity of your feed. Proper feeding techniques will ensure that your cattle will grow, utilize the feed efficiently, and produce good quality meat. This is how you can increase your profits from the cattle fattening farming business. Failing to properly feed the cattle will lead to losses.
Market Research
For any kind of business, you must conduct market research. You need to research your market in order to build a successful, sustainable cattle fattening business. You also require enough knowledge in order to effectively run your feedlot. In addition to good cattle fattening techniques, good management skills, and financial management, you must understand the industry you operate in. Researching and finding your market are essential when developing a cattle fattening business. Your market has a huge impact on your producer’s net sale price. In fact, your company’s profitability is determined by the market. From market research, you can determine the buying price of the cattle, the costs of the feed, the price margin, the feed margin, the feed conversion efficiency ratio, and the unit cost when selling. As a farmer, you should also be aware of the alternative markets available to you in order to choose the one that yields the greatest return. Ensure that you periodically check prices and market conditions. Market research also helps you know your buyers’ needs and demands. Local and international meat markets are constantly changing. As a result, your cattle fattening business should be market-driven. Customers are becoming more sensitive about animal welfare and the ethical rearing of all animals. These customers want more information about the meat they buy, especially where it comes from and how it has been raised. As a cattle fattening business, you are required to review your production methods and standards.
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.
Sales And Marketing Strategies
A feedlot farm’s marketing has many aspects. The kind of marketing strategies you employ will depend on the size of your feedlot. Small-scale feedlots have limited marketing needs compared to large commercial ones. In many cases, cattle from a feedlot are usually sold to butcheries, abattoirs, auctions, butcheries, or individuals. Your marketing efforts should be directed to these customers. You must promote your feedlot business to the right people so that you can generate enough revenue. One way you can market your feedlot is by having an online presence. Take advantage of social media and set up an affordable, basic website. You can also list your business in the yellow pages and online directories such as Google My Business or Maps. Do not neglect your online presence once it’s setup. Keep your social media pages active and your website up-to-date. Another way to promote your cattle fattening business is by participating in agricultural trade shows and events. This is an effective way to promote your business. Do not forget to create flyers, offer discounts, and connect with people within the farming industry.
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 Carcass
Advantages of Cattle Fattening Business
There are many reasons why you should consider starting a cattle fattening business. The major advantage of feedlots is that the cattle are raised in the most economical way. Since a smaller space of land is required, you can raise a large number of cattle for beef production. Animals that are kept on feedlots are fed mostly corn and/or corn products in addition to being raised on less land. This means you will spend significantly less money. Another advantage to cattle fattening is that you can easily monitor the cattle closely. Furthermore, cattle are fattened earlier, which results in better meat consistency, and more meat can be distributed to meet the rising demand for beef. Cattle are raised for a shorter period of time in order to meet market requirements earlier. You do not have to be concerned about pasture due to droughts or bad weather conditions plus you can easily develop consistent meat quality and quantity by feeding your cattle the correct feed.
Keys to Profitability
When it comes to cattle fattening, it’s all about the right feed and the breed. Make sure that you choose the right supplements, and that your cattle are housed appropriately. Do not overwhelm yourself by buying a large herd of cattle. Start with a reasonable number and grow your business steadily. One of the biggest costs for a farmer is transportation. So ensure that your feedlot is not too far away from the market. Make sure that you keep an eye on the costs and stay up to date with current industry trends.
PRE-WRITTEN BEEF CATTLE FATTENING BUSINESS PLAN (PDF, WORD AND EXCEL): COMPREHENSIVE VERSION, SHORT FUNDING/BANK LOAN VERSION AND AUTOMATED FINANCIAL STATEMENTS
For an in-depth analysis of the beef cattle fattening farming business in South Africa, purchase our beef cattle fattening business plan. We decided to introduce the business plans after noting that many South Africans were venturing into the cattle fattening business without a full understanding of the industry, market, how to run the business, the risks involved, profitability of the business and the costs involved, leading to a high failure rate of their businesses.
Our business plan will make it easier for you to launch and run a beef cattle farming business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as the beef cattle fattening business plan will lay out all the costs involved in setting up and running the beef cattle farming business. The business plan is designed specifically for the South African market.
USES OF THE BEEF CATTLE PEN FATTENING BUSINESS PLAN (PDF, WORD AND EXCEL)
The beef cattle feedlots business plan can be used for many purposes including:
- Raising capital from investors/friends/relatives
- Applying for a bank loan
- Start-up guide to launch your beef cattle feedlots business
- As a beef cattle fattening project proposal
- Assessing profitability of the cattle fattening business in South Africa
- Finding a business partner
- Assessing the initial start-up costs so that you know how much to save
- Manual for current business owners to help in business and strategy formulation
CONTENTS OF THE BEEF CATTLE FATTENING BUSINESS PLAN (PDF, WORD AND EXCEL)
The business plan includes, but not limited to:
- Market Analysis
- Industry Analysis
- 5 Year Automated Financial Statements [ Income statements, cash flow statements, balance sheets, monthly cash flow projections (3 years monthly cash flow projections, the remaining two years annually),break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortisation]
- Marketing Strategy
- Risk Analysis
- SWOT & PEST Analysis
- Operational Requirements
- Beef cattle fattening guide (Technical Details of how to choose, feed and raise the beef cattle)
- Operational Strategy
- Why some South Africans in the beef cattle farming business fail, so that you can avoid their mistakes
- Ways to raise capital to start your beef cattle fattening farming business in South Africa
- Directory [Contact Details for South African suppliers of feeds, equipment, Cattle Abattoirs, contacts of cattle fattening training companies in South Africa, contacts of cattle fattening farming organisations in South Africa]
The Beef Cattle Fattening Farming Business Plan package consist of 5 files
- Beef Cattle Fattening Business Plan – PDF file (Comprehensive – 87 pages)
- Beef Cattle Fattening Business Plan – Editable Word File (Comprehensive – 87 pages)
- Beef Cattle Fattening Business Plan Funding Version – Editable Word File (Short version for applying for a loan – 45 pages)
- Beef Cattle Fattening Business Plan Automated Financial Statements – (Editable Excel file)
- Cattle Abattoirs in South Africa -Supplementary PDF File
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) - 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.
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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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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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