There has been an increase in the demand for all types of meat, including mutton, in South Africa over the years. This is because mutton is a rich source of high-quality protein, and it is also an outstanding source of many vitamins and minerals. Sheep farming is a very profitable business to start in South Africa. The two primary products for sheep farming are sheep meat (lamb & mutton) and wool. The demand for lamb and mutton in South Africa is high, exceeding 200 000 tonnes per year. There is a large export market for South African sheep wool, as over 55 million KG of wool is exported from South Africa every year. This goes to show that a sheep farming business is lucrative to start in South Africa. This article will outline how to start a mutton & wool sheep farming business in South Africa, and the sheep farming business plan – PDF, Word and Excel.
Before you start a mutton & wool sheep farming business in South Africa, there are some important decisions which you have to make. You have to decide on the size of your sheep production business ie how many sheep you will have at your sheep farm. There are many different sheep breeds, so you have to select which sheep breed you will use, location of your business, and your target market. The size of your mutton & wool sheep farming business will depend on the amount of capital you have, and your target market. It’s important that you get a good sheep production business plan before you start commercial sheep farming in South Africa.
NB: This article and business plan is about sheep for both meat & wool production. We also have an article and business plan for only meat production: Mutton Sheep Farming Business in South Africa.
Business Model
In order to successfully set up a sheep farming business, you need to select a healthy, high yield breed of sheep. You can buy the breeding stock and raise the flock for wool and mutton. There are different types of breeds to choose from. Some of the best breeds in South Africa for meat are Dorper sheep, Black-headed Persian sheep, and Meatmaster sheep, to name a few. Consider sheep that can be used for both wool and meat, such as German Merino and Suffolk sheep. When rearing your animals, there are three main methods that you can consider, which are intensive, semi-intensive, and extensive sheep farming. Intensive farming of sheep involves keeping your sheep in an enclosed area, also known as “stall fed” sheep farming. Feed, fodder, and water are brought to the sheep. When it comes to semi-intensive sheep rearing, the sheep can graze on their own, but they are given concentrates for nutrients. With extensive farming, sheep graze on their own and can only sleep in the shed. No extra feed is given to the flock. For commercial sheep farming, feed management is critical. In addition to green fodder, you must supplement the feed with nutrient concentrate.
Market Research
Gathering information about your potential consumers is important. As a livestock farmer, you need to gather information about what your consumers’ needs and preferences are. For any business owner, there may be many opportunities that you can tap into. It is critical to conduct market research in order to gain an informed view of what to expect when venturing into agricultural businesses for your sheep farming business to grow. Market research is a key aspect that business owners must undertake long before setting up an actual business. You can gain a lot of useful information and guidelines that will help sustain your farming venture. Researching the meat and wool markets will inform you about where and whom you should target when selling your products. It also allows you to understand your consumer better. Market research further helps you determine how much to charge for both wool and mutton as well as how much of the product you must provide. With market research, you can develop a production plan that can ensure your customers’ demands and needs are satisfied. Ensure that you do thorough market research when setting up your sheep farming business because it can determine whether or not your business will be sustainable or not.
Land For Sheep Farming
The choice of land for doing your sheep farming business should not be trivialized. Make sure that the land is not susceptible to water logging. An area that is generally on a raised terrain is ideal. There are also factors to consider that end up determining your choice of land location. For instance, proximity to essential amenities such as veterinary services and market is vital. That would imply that a strategic well serviced road network close by is a must. Not forgetting that there must be a clean and reliable water supply. The land must have sufficient pastures for the sheep to graze. And it should obviously be large enough to accommodate the number of sheep you want to breed.
Housing And Equipment
Two important things to ensure for the sheep housing are ventilation and adequate space (horizontally and vertically). How you will be doing your sheep farming determines the housing and equipment aspect. Sheep can be reared completely indoors or partially outdoors. For the former, there will be a need to have comprehensive housing built. If they get to be partially outdoors then housing might probably be for from when the day ends till the next morning.
Generally, the height of the roof level from the floor should on average be 1.8 metres. The space that should be available for one fully grown sheep should range from approximately 1-1.5 square metres. Basically, bricks, cement, roofing sheets, wooden logs, and fencing form the basis of what is needed for housing. Barns and sheds can nalso be used as sheep housing. Ideally it is recommended to fence even if you feel the housing is secure – it augments physical security. Fencing is also essential for the pasture. The required equipment for mutton & wool sheep farming includes drinking and feeding equipment. Your commercial sheep farming business plan should include the costs of purchasing equipment and sheep housing.
Sheep Breeding Stock
Choosing your breeding stock is majorly premised on the end products of your sheep farming business. Breeding stock that is best for meat production might not necessarily be best also for wool production. There are 3 broad classes of breeding stock in general. These are exotic, indigenous and cross breeds. By breeding stock we are referring to the sheep that mate to bring about the offspring lambs. The over-arching consideration to make is whether or not a particular breed can thrive in your local climate.
Sheep breeding stock is composed of ewes (female sheep) and rams (male sheep). The rams and ewes will mate to produce lambs which you will then feed and raise. It is highly advised that you get your breeding stock from reputable suppliers. When choosing breeding stock you must also carefully examine them before buying. That is meant to ensure they are in good health – buying from suppliers that have detailed health records would be the best. Most sheep farmers in South Africa prefer dual purpose sheep breeds. These are sheep breeds which are used for both meat and wool production. Examples of sheep breeds used in South Africa for meat and wool production include the Merino, Dohne Merino, South African Mutton Merino, Afrino Sheep and the Dormer. The most popular sheep breed in South Africa is the Merino breed, and breeds derived from the Merino. The mutton & wool sheep farming business plan should include the costs of purchasing the breeding stock.
Sheep Feed And Nutrition
There are two broad feeding approaches in a sheep farming business. The first one entails sheep feeding from pasture land since sheep are grazers. Pasture is the primary source of feed for sheep, and it’s also the one which is economically viable business wise. However when doing commercial sheep farming in South Africa, you will also need to give supplementary feed to the sheep. This ensures that the sheep get all the required nutrients for growth. Pasture might also not be adequately available throughout the year due to changing seasons. The supplementary feed to give to the sheep include grains, hay, commercial sheep feed, salts and minerals. Some of the common grains are sorghum, wheat and maize. Over and above all, ensure that the sheep have access to fresh, clean and reliable water for drinking. The feeding costs should be included in your mutton and wool sheep farming business plan.
Management and Labour
The number of employees needed for your mutton & wool sheep farming business will depend on the size of your sheep farm. At the minimum, you need sheep attendants who will keep the sheep. Their duties include feeding the sheep, cleaning and disinfecting the building and equipment, monitoring the sheep health, shearing the sheep wool, herding the sheep, and other day to day duties. Dedicate finance and marketing team may also be needed depending on the size of your sheep farming business. Your mutton & wool sheep farming business plan should take into account the salaries and wages of your employees.
Sales And Marketing Strategies
Sales and marketing are important for the success of your sheep farming business. The livestock business in general is a bit different. With most meat products and livestock, prices tend to go down during the dry season. This is when feed and water are hard to find, and when drought threatens, a lot of animals may die. During these times, most farmers sell their livestock at the last minute, which forces prices down. As such, know the market trends and target certain markets. Consider selling your meat during festive seasons, religious holidays, and when many families traditionally slaughter a sheep or goat. Don’t wait too long when your products are ready, and watch the weather and market trends in order for you to sell when the price is high. Sell your sheep when they are strong and healthy to fetch a good price. Consider also getting a price guarantee. You can agree with a buyer to supply a certain amount of sheep, kg’s of meat, or wool of a particular age or type on a regular basis and at a guaranteed price. You can do that with supermarkets, abattoirs, mills, and textile companies.
Market for Sheep Meat and Wool in South Africa
Sheep Meat in a Supermarket in South Africa
The major products from a sheep farming business are sheep meat and wool. Sheep meat has 2 categories: lamb and mutton. Lamb is sheep meat from a sheep less than 1 year old, while mutton is from a sheep greater than 1 years old. There is high demand of lamb & mutton in South Africa, exceeding 200 000 tonnes per year. You can supply your sheep to abattoirs , hotels, restaurants, retailers, butcheries, meat processors and individuals. Most of the sheep wool produced in South Africa is exported. The sheep wool is sold locally in South Africa via auctions and then exported. South African Wool is exported to China, the Czech Republic, Italy, India, Bulgaria, Germany, and the United States.
Advantages of Sheep Farming Business
Sheep are relatively affordable and manageable compared to other livestock. These animals do not need expensive structures to house them, plus they require less labor than other kinds of livestock. The starting stock is relatively cheap, and the flock multiplies rapidly. These animals are economical converters of grass into meat and wool. They eat more varied kinds of plants compared to goats or cows, and this makes the animals excellent weed destroyers. Unlike goats, sheep do not damage any trees. You can take advantage of three different sources of income when rearing sheep; the sale of wool, meat, and manure. There is no need to throw away grains lost at harvest time; your sheep can easily convert the waste into profitable products.
Keys to Profitability
Set up a new market for your mutton and wool. If there is no market nearby, get other farmers to work with you and build one. Find a suitable location and design the market in close consultation with other herders, traders, and farmers. Ensure that your market has a shade structure, a fence, loading ramps, feeding and watering facilities, restrooms, and offices. Another tip to increase your profit is to partner with textile companies, abattoirs, butcheries, and supermarkets. Also ensure that you are mobile. Invest in a cold truck so that you able to transport your meat even over long distances. Lastly, learn what buyers want and find out what your consumer’s needs are and meet them.
PRE-WRITTEN SHEEP FARMING BUSINESS PLAN (PDF, WORD AND EXCEL): COMPREHENSIVE VERSION, SHORT FUNDING/BANK LOAN VERSION AND AUTOMATED FINANCIAL STATEMENTS
For an in-depth analysis of the mutton & wool sheep farming business in South Africa, purchase our sheep farming business plan. We decided to introduce the business plans after noting that many South Africans were venturing into the mutton and wool sheep production 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 mutton & wool sheep production 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 mutton & wool sheep production business plan will lay out all the costs involved in setting up and running the sheep farming business. The business plan is designed specifically for the South African market.
USES OF THE MUTTON & WOOL SHEEP PRODUCTION BUSINESS PLAN (PDF, WORD AND EXCEL)
The mutton and wool sheep production 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 meat & wool sheep farming business
- As a mutton & wool sheep farming project proposal
- Assessing profitability of the mutton & wool sheep farming 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 COMMERCIAL MUTTON & WOOL SHEEP FARMING 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
- Sheep farming guide (Technical Details of how to breed, feed and raise the sheep)
- Operational Strategy
- Why some South Africans in the meat & wool sheep production business fail, so that you can avoid their mistakes
- Ways to raise capital to start your meat & wool sheep farming business in South Africa
- Directory [Contact Details for South African suppliers of feeds, equipment, breeding stock, contacts of sheep farming training companies in South Africa, contacts of sheep farming organisations in South Africa]
The Mutton & Wool Sheep Farming Business Plan package consist of 4 files
- Sheep Farming Business Plan – PDF file (Comprehensive – 109 pages)
- Sheep Farming Business Plan – Editable Word File (Comprehensive – 109 pages)
- Sheep Farming Business Plan Funding Version – Editable Word File (Short version for applying for a loan – 44 pages)
- Sheep Farming Business Plan Automated Financial Statements – (Editable Excel file)
The financial statements are automated. This implies that you can change eg the number of sheep, price of sheep etc, and all the other financial statements will automatically adjust to reflect the change.
GET THE SHEEP FARMING 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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