feedlot farming business plan

Starting Cattle Fattening Business Plan (PDF)

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

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

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

Beef Cattle Farming/Ranching/Breeding Business  

Dairy Farming Business

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

Market Research

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

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

Cattle Fattening Business Model

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

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

Land For Cattle Fattening

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

Cattle Feedlot Housing

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

Equipment for Cattle Fattening Business

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

Selecting Cattle for Fattening

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

Feed And Nutrition

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

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

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

Health & Disease Management

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

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

Management and Labour

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

Capital for Cattle Feedlot Business

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

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

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

Profitability of Cattle Fattening Business

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

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

Advantages of Cattle Fattening Business

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

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

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

Why You Need A Cattle Fattening Business Plan

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

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

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

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

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

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

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

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

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

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

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

The business plan include, but not limited to:

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

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

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

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

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

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

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

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

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

Cattle Fattening Business Frequently Asked Questions

What is needed for cattle fattening.

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

What cattle business is most profitable?

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

How long does it take to fatten a cow?

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

What breed of cattle gain weight the fastest?

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

How much space do feedlot cattle need?

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

Are feedlots profitable?

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

What are the advantages of cattle fattening business?

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

What is the business model of cattle fattening?

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

Where do feedlots get their feed?

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

How much do feedlot cattle gain per day?

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

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

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Growing out and fattening cattle in a feedlot

Most cattle sold through abattoirs are feedlotted. this article looks at the basics of feedlotting and how an operator can increase profit margins..

• 1.2K shares

The live weight and fat content considered acceptable for slaughter cattle is determined by market demand. Animals can be fed in many ways to obtain a heavier carcass with the correct amount of fat within and over muscle.

In South Africa the most common practices include:

Grazing on veld Steers remain on the veld until they are at least two years old before reaching a suitable carcass fat content. Cows fattened on summer veld achieve a good finish fairly quickly.

Planted pastures These can be used for fattening and growing out animals. Better growth rates are achieved here than on the veld. Commonly, weaners go on to annual ryegrass pasture in autumn to be market-ready by Christmas.

Feedlots Most cattle marketed through abattoirs come from feedlots.In an on-farm feedlot, the farmer fattens young cattle in pens or large paddocks, using bought-in or home-grown feed. The livestock can be self-produced or bought in. Commercial feedlots are the major finishers of beef. The feedlot owner, often a speculator, buys animals specifically for the feedlot. Ownership of the animals and the risk associated with feeding them becomes his responsibility.

In a custom feedlot, the feedlot operator does not buy in animals. Instead, the owner of the animals sends them to the feedlot for fattening and usually retains any risk involved.

The profit margin Factors affecting a feedlot’s profit include the price margin, feed margin, management, cost of feed, and the buying/selling price of feeders. The selling price is usually quoted as the carcass price.

Price margin This is the profit or loss that the feedlot makes as a result of an increase or decrease in price from the time the animal is bought (cost price) to the time it is sold (sale price). It is calculated as follows: Price margin = Initial live mass x (sale price/kg – cost price/kg)

The price margin includes the difference between purchase price and selling price resulting from beef price fluctuations as well as improvement in carcass quality due to feeding.

As the feedlot cannot control price fluctuations, it must rely on a prediction of what the price will be when stock is sold at a future date (speculation).

Although profit is potentially high, so is the risk, and inexperienced speculators often lose money in the process.

When buying livestock, most feedlots use price per kilogram liveweight in their calculations.

They must therefore know the dressing percentage of an animal. This varies, so feedlots base the value they use on experience and knowledge of the type of animal, combined with its body condition.

Lean animals have a dressing percentage of 49%, increasing to as much as 60% at a high level of finish.

At a fat score of 2 to 3, the mean dressing percentage varies from 54% to 56%.

Feed margin This is the profit or loss made by a feedlot as a result of live mass gain in relation to cost of feed consumed. It is calculated as follows: Feed margin = Live mass gain x (sale price/kg – cost/kg gained).

Through good management, a feedlot can improve the margin by achieving an optimal growth rate and obtaining the best feed at the best price.

Other expenses These include agent’s commission, slaughtering costs, condemned carcasses, transport, interest on capital, salaries of management and labour, machinery costs, mortalities and veterinary costs (disease control, medicines, vaccinations, veterinarian) and pre-treatment (growth stimulants, dipping, dosing, vaccination).

Feedlots can improve production profit by manipulating certain expenses, but others, such as agent’s commission, are fixed.

Mortalities must be monitored carefully to ensure that a high loss rate does not severely limit profit. A mortality rate of 1% to 2% is normal.

Feedlot profit The feedlot profit margin is a function of price margin, feed margin and other expenses. Adding these three together indicates profit or loss for the period over which the calculation is made.

A feedlot manager should keep a close watch on feedlot profit, which is a highly sensitive measure of the efficiency of management.

Source: Feedlotting cattle. (2016). Retrieved from www.kzndard.gov.za

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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 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

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.

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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.

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Cattle Farm Business Plan FAQs

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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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Money Matters: Cattle Feedlot Financial Management and Record-Keeping

Published October 27, 2023 – Do you ever feel like your wallet’s grazing in a cattle feedlot, always one hoof step away from slipping into the financial slurry? Well, welcome to the club, future accountant. In the world of cattle feedlots, financial stability is as elusive as a unicorn in a barnyard. If you want to run a successful operation and grow your feedlot, you’ll need to learn some accounting speak.

Introduction

Importance of financial management and record-keeping in cattle feedlots.

Running a cattle feedlot isn’t all flashy hats and silver spurs; it’s a complex business with real dollars at stake. From purchasing cattle and feed to managing veterinary bills and dealing with unpredictable market prices, there’s more to it than just yelling “Yeehaw!” and hoping for the best. Proper financial management isn’t just a good idea; it’s the difference between wrangling profits and getting roped into debt.

The Purpose of the Outline

Now that we’ve got your attention, let’s mosey on to the purpose of this outline. We’ll be your trusty trail guides, leading you through the rocky terrain of financial management in the cattle feedlot business. We’ll cover everything from budgeting and cash flow to record-keeping and risk management. By the end, you’ll be wielding a financial lasso so powerful, you’ll be able to keep your cattle feedlot finances out of the red zone and into the green pastures of prosperity.

So, saddle up and get ready for an adventure in financial management that’s more exciting than a rodeo and, dare we say it, even more udderly important! Yeehaw, partner! It’s time to ride the bull market of cattle feedlot success.

Understanding Cattle Feedlot Operations

Definition and function of cattle feedlots.

Picture this: a bustling metropolis for cows, where they gather to chow down on their favorite grains and feed. That’s right, a cattle feedlot! These bovine buffet establishments are where beef cattle are sent to pack on the pounds before they hit your dinner plate. But it’s not all about gourmet dining; it’s a calculated process to fatten them up for the market.

Cattle feedlots are like bovine boot camps, strategically designed to maximize the efficiency of cattle growth. Farmers provide a controlled environment where cattle are fed a high-energy diet, given comfy shelter, and their health is closely monitored. The goal? To turn those scrawny calves into plump, market-ready beefy delights.

Types of Cattle Feedlots

Now, there’s more than one way to run a cattle feedlot. Just like burger joints have different menus, cattle feedlots have their own flavors too. Here are a few types:

• Commercial Feedlots: These are like the big chains of the feedlot world. They handle large numbers of cattle, often in the thousands, and are all about maximizing efficiency and profit.
• Farmer-Feeder Operations: Think of these as the mom-and-pop shops. Farmers raise their own cattle and also feed them in smaller numbers. They have a bit more hands-on involvement in the entire process.
• Specialized Feedlots: Some feedlots focus on specific aspects, like organic or grass-fed beef. They cater to niche markets, offering a unique taste experience.

Key Stakeholders and Their Roles

Now, just like any good spaghetti Western, there are key players in the cattle feedlot arena. Here’s who’s who:

• Calf Lots: These are the folks who own the cattle and often provide the initial care and feeding before the cattle head to the feedlot.
• Pen Riders & Pen Walkers: They’re the wranglers in charge of the feedlot operation. They’re responsible for feeding, housing, and monitoring the cattle.
• Veterinarians: The cow’s version of doctors, making sure the cattle are healthy and free from disease.
• Nutritionists: They’re like the chefs, creating the perfect diet to make those cows grow big and strong.
• Marketers: These folks are responsible for selling the beef to processors and distributors.
• Distribution: These are the folks at the end of the line, driving trucks, hauling cattle, and delivering market-ready stocker steers & heifers to the processing plant.

Financial Management in Cattle Feedlots

Budgeting and financial planning.

• Income Projections : Just like a cow needs a clear path to the feeding trough, your cattle feedlot business needs a well-structured financial plan. Start by projecting your income, which primarily comes from the sale of beef cattle. Consider factors like market prices, the number of cattle you intend to sell, and the weight at which you plan to market them. Monitoring market trends and historical data can help make these projections more accurate.
• Expense Estimates : Running a cattle feedlot comes with its own set of bills – feed, labor, veterinary care, and facility maintenance, to name a few. Estimating your expenses is critical to avoid financial surprises. Don’t forget to factor in unexpected costs that can crop up when cattle get ornery or when equipment decides to play up.
• Profit Margin Analysis : The difference between a successful feedlot operation and one that’s singing the blues lies in profit margin analysis. By comparing your income projections to your expense estimates, you can determine whether your feedlot is going to churn out beefy profits or leave you with an empty corral. Be ready to adjust your strategies and trim the financial fat if your margins are looking a little, well, lean.

Cash Flow Management

• Timing of Income and Expenses : Just like a cattle drive has its own timing and rhythm, managing your cash flow is all about ensuring that income and expenses align. There will be times when you have to cover feed and labor costs before your cattle are market-ready. To avoid cash shortages, plan your cash flow carefully. This might involve securing financing during lean periods and reinvesting profits wisely.
• Reserve Funds : Cowpoke, you’re bound to encounter unexpected stampedes along the way. Having reserve funds tucked away for emergencies can save your hide when things go south. Whether it’s an unexpected illness sweeping through your herd or a sudden increase in feed prices, having a financial cushion can make the difference between weathering the storm and getting trampled.

Risk Management

• Market Volatility : The cattle market can be as unpredictable as a bull’s temperament. One minute it’s charging sky-high, and the next, it’s down in the mud. Diversify your risk by monitoring market trends and considering hedging strategies. Remember, risk management isn’t about eliminating risk but rather about managing it to avoid financial calamity.
• Insurance Options : In the world of cattle feedlots, having insurance is like having a trusty lasso at your side. Explore insurance options like livestock mortality insurance, which can protect your herd from unforeseen events like disease outbreaks or extreme weather conditions. Additionally, consider liability insurance in case someone takes an unexpected tumble in your feedlot.

Investment and Financing

• Infrastructure and Equipment : Every cowboy needs his trusty steed, and for your feedlot, that’s the infrastructure and equipment. Ensure you have the right facilities, feeders, chutes, and scales for the smooth operation of your feedlot. Careful investment in infrastructure and equipment can enhance efficiency, reduce labor costs, and boost overall profitability.
• Loans and Financing Options : When it’s time to expand your cattle empire or make essential upgrades, loans and financing options can be your best friend. Shop around for favorable loan terms, and consider government programs that may provide financial assistance to cattle feedlot operations. Make sure to have a clear repayment plan in place to avoid getting roped into financial trouble.

Financial management in cattle feedlots might not be as glamorous as a high-noon showdown, but it’s the key to keeping your operation from ending up in the dust. By budgeting, managing cash flow, minimizing risk, and making smart investments, you can ensure that your cattle feedlot operation remains in the black and your financial saddle stays secure. Giddy up, partner – the cattle business ain’t for the faint of heart!

Record-Keeping in Cattle Feedlots

Importance of record-keeping.

• Regulatory Requirements : First things first, partner. In the world of cattle feedlots, you’ve got more regulations to wrangle than a calf at branding time. Keeping meticulous records isn’t just a good idea; it’s often required by local and federal authorities. These records help ensure compliance with animal health, environmental, and food safety regulations. So, if you don’t want the cattleman’s equivalent of a sheriff on your tail, you’d best keep those records straight.
• Operational Benefits : Beyond the sheriff’s watchful eye, keeping detailed records can make your life a whole lot easier. It’s like having a map on the open range – it guides you, helps you spot issues early, and improves decision-making. You’ll be able to track everything from cattle health to inventory levels, ultimately boosting your feedlot’s efficiency and profitability.

Types of Records

• a. Income and Expenses : Track every dollar that comes in and goes out. This includes not just cattle sales but also expenses like feed, labor, vet bills, and equipment maintenance.
• b. Profit and Loss Statements : These are your financial scorecards, showing if your feedlot is thriving or headed for the last roundup.
• c. Balance Sheets : These provide a snapshot of your feedlot’s financial health, including assets, liabilities, and equity.
• a. Inventory Management : Keep tabs on the headcount, weight, and condition of your cattle. It’s like knowing exactly how many poker chips you have at the table.
• b. Health and Performance Records : Monitor the health history and growth performance of your cattle. This helps you detect issues early, administer treatments, and optimize feeding strategies.

Record-Keeping Systems

• Manual Systems : If you’re the pen-and-paper type, manual record-keeping involves physical ledgers, spreadsheets, and good old-fashioned notes. It’s like herding cattle on horseback – tried and true but can be time-consuming.
• Digital Record-Keeping Tools : Technology has sauntered into the feedlot, offering software and apps that can help you streamline record-keeping. From specialized cattle management software to cloud-based platforms, these tools are like riding a trusty tractor through the herd, making the job easier and more efficient.

Data Organization and Storage

• Data Security and Backups : Just as you wouldn’t leave the corral gate wide open, protecting your records is crucial. Ensure that digital records are backed up regularly and stored securely to prevent loss due to hardware failures or cyberattacks.
• Accessibility and Retrieval : Easy access to records is vital, especially in emergencies or during audits. Organize your data in a way that’s easily searchable and ensure that multiple authorized individuals have access when needed.
• Manual system definition — AccountingTools
• 10 Tips to Maximize Your Profit Raising Beef Cattle | Arrowquip

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An on-farm feedlot setup: The basics

A well-designed feedlot handling facility where animals can be safely kept and controlled, usually makes use of several different structures as well as equipment. Stockfarm spoke to experts at the Agricultural Research Council (ARC) and Molatek / Epol to provide us with a brief overview of some of these structures and equipment that producers can incorporate in their own on-farm setups. A similar article is available in Afrikaans here .

Loading ramp

A loading ramp simplifies the loading and unloading of animals. It can be part of the feedlot facility, or a mobile unit if there is more than one loading or offloading point.

Among other things, loading ramps must be placed in such a way that sufficient access is provided for a vehicle, for both rear and side loading. The ramp must have a non-slip floor and smooth sides without protrusions to prevent possible injuries. There should not be any gaps between the loading ramp and the vehicle.

A loading platform built at a steep angle causes injuries. The gradient therefore must not exceed 16°. This is equal to a one-meter increase over 3,5m horizontal distance.

Holding pens

The area in front of the loading ramp is used to keep groups of animals together for loading or, in the case of newly arrived animals, to keep them together before further handling takes place.

Adapting pens

Adapting pens can be placed close to the handling pens. Animals in adapting pens have free access to hay, concentrates and/or silage. Animals can be kept separately or mixed in the pen for the adaptation period. Animals that have previously been fed silage or other balanced rations, respond faster to the new ration and can be transferred to the finishing pens much sooner. After finishing, animals are ready to move out of the feedlot.

Processing facility

At the complex, new animals are received, processed and handled and those that are market-ready are shipped from here. The design of this handling facility should simplify the execution of important tasks in the unit. The work area should preferably have a roof and rough concrete floor. Earthen floors must allow for drainage and must be compacted thoroughly.

The handling area components must be arranged in such a way, and combined with openings and gates, so that access to animals is possible. In feedlots, it is convenient to control all the equipment hydraulically, which simplifies the process and saves time.

Gathering pens and crowding pens

Gathering pens are pens in which animals are let through to further activities. These pens are usually round or funnel shaped. It is preferable to use solid gates and sides for the gathering pens, especially in a feedlot, as the only exit visible to the animals is the specific exit gate. Steel plates or rubber (e.g. old conveyor belts) can be used for the sides. Peepholes can be fitted for handlers.

Sorting pens and sorting gates

Sorting pens and sorting gates are used to separate certain animals from others during the production process. The sorting pen will therefore be used to sort new animals, such as separating lambs from ewes, or to separate animals to be sold from the rest. In cattle, approximately 2m² is provided for each animal in the sorting pen.

Sorting is done from the crush and usually towards the scales using several gates that control access to specific camps. Sorting pens are used for relatively short periods, after which the animals move back to the feeding pens.

Crushes and work alleys

A crush is an integral part of a feedlot and the design must simplify handling and reduce stress in animals. It should also be sturdy and durable.

Where cattle are concerned, the length of the crush is determined by the number of cattle that must stand in the crush simultaneously. The rule of thumb is 1,5m per animal.

The crush should preferably be constructed with a rising incline towards the front, as cattle are more likely to move uphill in a narrow passage than downhill. The slope will also help with run-off and will prevent trampling.

The width of the crush requires careful consideration as a crush that is too wide, will allow animals to turn around. There are no fixed rules in terms of crush width, but normally the inner dimension should be around 750mm.

For sheep, a distinction is made between crushes of 600mm or narrower and working alleys of roughly 1 000mm wide. Where V-shaped crushes are used, a base width of 200 to 300mm and a top width of 450 to 675mm is recommended. A gap of 75 to 100mm between the floor and the sides provides space for the handler’s feet, allows drainage and feet inspection, and prevents young lambs from suffocating.

Weighing scale

In a feedlot, animals are usually weighed and processed upon arrival. Depending on the setup, a scale can be placed in the working area or in a separate passage. Feedlots sometimes prefer large scales that can weigh several animals simultaneously.

It is essential that the scale is calibrated at regular intervals. Scales must be tested with weights of the same size as the average animal handled there – bags of fertiliser, cement or grain can be used for this purpose.

A neck clamp is one of the most essential items in the handling area and is used to hold the animal in position while work is being done. Quite a few neck clamps are available on the market, with different opening mechanisms and differently shaped neck openings. Neck clamps must be sturdy and made from durable material.

Dip facilities

The most effective method of controlling ticks is to dip animals regularly. In South Africa, spray or immersion dipping, pour-on remedies, hand or tractor spraying, hoof dipping, draining pens, or a combination thereof is used.

Dipping must comply with certain requirements, including that animals must be thoroughly drenched without wasting dipping fluid.

Hospital facility

At feedlots, provision must be made for separate hospital facilities for sick or injured animals.

Read more about heat stress.

Feedlot fences differ from normal camp fences. Feedlots have a higher concentration of cattle, for example, and the fences must therefore be sturdier. Fences in these pens are 1,5m high and consist of five crosswires. Barbed wire can injure animals and ordinary wire is not strong enough, hence steel cables are recommended instead of crosswires. Another possibility is to construct a cable from galvanised wire and steel wire. Wood or steel can be used for the standard poles and droppers.

Roads in and around the feedlot must be of high quality, as they carry a lot of traffic daily (e.g. cattle, feed wagons and cleaning wagons). Roads in poor condition will slow down the overall flow of activities. Gravel roads can be considered if the configuration allows it and it is compacted thoroughly.

Office complex

In large feedlot operations, the offices will usually be separate from the feedlot and handling facilities. At smaller units it would be sensible to have a small office at the processing facility. The office complex can consist of an office, storeroom in which equipment and medicines are kept, and dressing room. Some medicines must be kept cool; a refrigerator is therefore a necessity. The office must be positioned in such a way that a good view on the entire handling area is possible.

Feed facilities

The size of the facility in which feed is kept will be determined by the number of animals to be fed. Animals’ daily diets consist of many components that have to be kept in storage, usually in silos or barns with dividing walls, until needed. From here, all ingredients are placed in feed wagons, according to finely calculated formulas, mixed and transferred to feed troughs.

Manure handling practices

Cattle produce roughly 63kg of wet manure per 1 000kg live weight per day. Natural processes of evaporation and biological breakdown decrease this weight to around one ton of solid manure from each animal that remains in the feedlot for 150 days.

Weirs in feedlots will prevent run-off as no contamination of public water is allowed. It is generally accepted that, if less than 12mm of rain has fallen on a feedlot area, the area contains 12mm of moisture, except if there was precipitation during the preceding 72 hours. The earth beneath the manure layer is compacted by trampling, which allows very little water to penetrate the layer of manure.

Quantities to be removed vary from 60% of this average figure, depending on the ration, number of cattle per square metre, feedlot surface, etc. The tempo of manure removal from a feedlot is determined partly by climate conditions, animal comfort, available labour, as well as water and air pollution.

For enquiries, contact Francois Swanepoel of the ARC on 012 842 4066 or [email protected], or Elmarie Stoltz on 012 842 4017 or [email protected], and JC Vollgraaff of Molatek/Epol on 079 264 7965 or [email protected]. – Carin Venter, Stockfarm

Amendments in respect of tenure on farms

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Cattle Fattening Farm: A Business Opportunity

By: Fazal Jawad Seyyed, Hafsa Ashfaq

The case is based on the feasibility analysis of a feedlot fattening farm. Tariq Ahmad's eldest son, Faisal Ahmad, was looking into the prospects of setting up a cattle fattening farm near their…

• Length: 9 page(s)
• Publication Date: Dec 1, 2017
• Discipline: Finance
• Product #: LCA026-PDF-ENG

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The case is based on the feasibility analysis of a feedlot fattening farm. Tariq Ahmad's eldest son, Faisal Ahmad, was looking into the prospects of setting up a cattle fattening farm near their 200-acre family farm in a village in Tehsil Depalpur, Punjab. At the end of January 2016, the market prices of potato crops had collapsed at the time of harvest with an abundant supply of stocked potatoes in the domestic market. Tariq was worried about the shrinking margins in crop farming and asked Faisal to explore other opportunities within the agriculture sector to initiate an alternative source of income for the family. Faisal was attracted to the idea of setting up a feedlot - an emerging phenomenon in the beef sector in Pakistan that had gained traction over the years. Tariq encouraged Faisal to carefully assess the financial viability and risks associated with setting up a cattle fattening farm as a potential venture. By mid-February 2016, the situation in the domestic potato market had worsened, despite government efforts to facilitate exports. While Faisal was gathering the required data and information, he heard that the farmer who held the plot adjacent to Tariq Ahmad's family farm was selling his entire holding of 10 acres. Tariq and Faisal now had the option to either go for the feedlot or acquire additional land from the neighbour.

Learning Objectives

The case will introduce students in introductory finance courses to:

Learn about the challenges faced by the beef sector in Pakistan.

Assess the current situation and potential of feedlot fattening.

Understand the various costs involved in setting up a cattle fattening farm.

Estimate the cash flows provided by the fattening farm venture at different time periods.

Incorporate the effect of time value of money and apply capital budgeting techniques to assess viability.

Perform sensitivity analysis for the key variables, primarily feed costs.

Dec 1, 2017

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• Beef Production

Understanding Feedlots as a Cow-Calf Producer

Question of the Week: Who is your real customer?

Part of operating a business is knowing your customer on a deep level. You need to understand their biggest frustrations in life and know your place in solving them.

As beef producers, who is our real customer? If you sell bulls, is your customer the commercial guy or gal who writes the check or the feedyard who buys their calves? Or, does it even stretch all the way down to the consumer?

I believe there is value in focusing on the person writing the check but we need to keep the whole supply chain in mind. Who is your customer?

Understanding Feedlots as a Cow-calf Producer

You spend a lifetime improving the genetics and overall performance of your herd. You pour your heart and soul into every calf crop too. From making breeding decisions to loading them on the truck, you watch them grow and keep them healthy. Then what? Where do they go? How do they continue to perform? Are they going to be profitable for you? Ryan Moorhouse, general manager at Hartley Feeders, joins Shaye Koester for a conversation about what cattle producers need to keep in mind to raise calves feedlots want and help them understand the feedlot business. 

Moorhouse grew up on a cow-calf and stocker operation, so he has loaded many groups of cattle throughout his career. Growing up on this type of operation made Moorhouse curious about where cattle went and what happened to them after they got loaded on the trailer. This curiosity in combination with the fast pace of the feedlot business is what has kept Moorhouse involved in the feedlot sector for the last 25 years. Moorhouse appreciates his background in the cow-calf sector as it helps him understand the beef business as a whole whether it is buying cattle from ranchers, selling feeders or buying commodities. All sectors of the industry are trying to make profits and it helps build relationships between sectors if you understand their business and yours. 

Moorhouse has the opportunity to buy directly from cattle producers. He estimates around 15% of the cattle that come into the facility are direct purchases that did not involve a middleman. Moorhouse recognizes that how cattlemen decide to sell their calves is entirely up to them.

“I think there is a need for both options. In some instances, it works better for producers to sell directly to feedyards. However, some people like to have a middleman. I understand both sides of it and we do both sides of it,” said Moorhouse.

When it comes to building relationships with feedyards, it is important to understand what they are looking for in cattle. If you are selling cattle directly to feedlots, backgrounding and vaccinating them before shipping is preferred. This reduces stress on the calves and sets everyone up for better success. Pen size is another factor that needs to be remembered when building a relationship with feedyards. Pen size is dependent on the yard, but as an example, Moorhouse said the smallest pen he has fits 60 head, but he also works with producers who sell 1,000+ head. 

It is also important to understand what type of cattle you have. Sure, you see how your cows perform year in and year out and you see their calves grow until you sell them. But, how do you know how they perform in the feedlot and what type of eating experience they give the consumer?

“I encourage people to retain ownership in their calves every few years to help them understand what type of cattle they are raising and get closer to their own goals. As a feedyard, we can get you performance and carcass data on your calves. Having this data helps both of us learn in the long run,” Moorhouse notes. 

Feedlots are businesses that face their own sets of challenges too. Moorhouse says the labor challenge has always been around for them, but recently, they have been facing short supplies in combination with high feed prices.

“We’ve been able to keep yards relatively full for the past 5 to 7 years and that’s been good. However, I have to remind people that we are margin operators who have to be able to buy and resell the same cattle for a profit. There are many years where cattle feeding has not been profitable. It ebbs and flows,” Moorhouse says.  As Moorhouse looks forward to the future, he is excited about educating others about the feedlot business and building more relationships with people in the beef industry. There’s a growing industry in the direct-to-consumer and grass-finished beef spaces, but we still need to produce reasonably priced beef for consumers who don’t buy directly from ranchers. Moorhouse sees an increase in popularity for branded beef programs in the future because of this and thinks these programs will continue to be an opportunity for beef cattlemen to add more value to the calves they sell.

“You can start at a basic level of verifying you have a good vaccination program and work up to a natural program or GAP 4 certification if you want to. But, we still need regular commodity cattle. There’s a spot for everything,” Moorhouse adds. 

To wrap all this up, it all comes down to where you want your operation to go and what you are capable of. There is a place for all kinds of cattle in feedlots across the country. If you want to build a relationship with a feedyard, talk to your middleman to learn where your cattle are going and work with that feedlot to learn how your calves perform. 

Click the photo below to listen to the full episode.

Latest News

Negotiated cash cattle prices moved lower again under pressure from sinking futures markets. The red-hot hamburger market kept pushing most utility cows higher.

USDA National Agricultural Statistics Service (NASS) announced it’s canceling the July Cattle Inventory Report. In the announcement, NASS blamed budget cuts from the most recent appropriations bills. 

Manipulating the reproductive process of your cow herd can result in shorter breeding and calving seasons with more calves born earlier in the season resulting in an older, heavier, more uniform calf crop when you wean.

Individual identification of cattle is important for many reasons, making it possible to identify a number of important management aspects.  

Fertilization requires the ability to use increased forage growth in a timely manner. That's more important for stockers than cow-calf operations as excessive early pasture growth is more efficiently used by mature cows.

Research indicates multiple animal performance benefits linked to earlier castration (birth to 3 months), including shorter initial weight loss periods, lower disease susceptibility, and higher post-weaning ADGs.

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Feedlot: A lucrative business to invest in

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CATTLE FATTENING BUSINESS PLAN

I would like to start a new beef cattle so that I need some valid information.

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Business Management

Raising beef cattle for profit requires land, money, and good business management skills. In this section, you will find information and advice on pricing meat cuts, conditioning cattle for market, and understanding beef carcass yields and losses during processing. Tips on applying RFID tags and performing beef quality audits are available as well.

Starting a Small Beef Cattle Farm

To start a beef farm, you will need to select the type of operation and develop a business plan that includes all startup and ongoing expenses. Consider necessary costs such as the purchase of land, animals, feed, and equipment. Other significant expenses include animal care, pasture management, labor, and building handling facilities.

In addition to the cattle farming business plan, you will need a solid management plan. This document should address beef cattle management practices regarding feed, health and nutrition, fencing, housing, and waste.

Note: The costs of beef enterprises are often specific for each operation. In order to better understand the financial aspect of beef production, producers need to consider direct expenses , direct income, and hidden costs.

Learn more about evaluating the potential financial impact of a decision (such as buying new equipment) with Penn State Extension’s Partial Budgeting online course .

Raising Beef Cattle for Profit

Beef farms generate income mainly from calf production . It is therefore recommended that cattle farmers select and maintain productive cows who produce a calf every year. The animals should be able to sustain their body condition and raise calves with a weaning weight that meets the end goals.

The retail beef price depends largely on the cost of production and the cost of getting the animal to slaughter weight. The production expenses vary based on the animals’ breed and production method (i.e. grain-fed or grass-fed cattle ).

The price of beef per pound can further be affected by factors such as fat percentage and type of cut. Obtaining a beef quality grade or an organic beef certification can help increase profits, as well.

Direct Income for Cattle Operations

Apart from the sale of cattle, beef producers can generate direct income from a number of other services. Depending on the enterprise, revenue can be generated from consulting, breeding cattle, hauling, and mowing pastures. Income may also be increased by selling embryos and bull sperm.

Selling hay and feed raised on the farm is another valuable option for cattle farmers. Estimating the expenses of home-raised feed, however, can be challenging.

One way for producers to calculate the actual feed costs is by using Penn State’s CropCents app . Once the data for all on-farm grown crops – including operating expenses – is entered, users can see the yield in tons/acre and the cost/ton.

Beef Cattle Market Trends

With a huge market for beef, raising cattle in the US is one of the most common and profitable farming businesses.

The way cows are raised and fed has a big effect on the retail price. Beef is very nutritious, but different feeds deliver different products and tastes. Currently, there is an increased interest in pasture-raised beef, as well as organic and/or locally grown meat products.

Educational Resources for Cattle Farmers

Raising beef cattle for profit is a huge undertaking. Find comprehensive information on beef cattle management with Penn State Extension’s articles, webinars, online courses, and workshops.

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[Pdf Sample] Business Plan For Cattle Farming In South Africa Docx

In recent years, the cattle farming industry in South Africa has experienced significant growth and opportunities. With its favorable climate and vast landscapes, the country provides an ideal environment for cattle farming.

If you are considering venturing into this business, it is crucial to have a well-defined cattle farming business plan that outlines your goals, strategies, and financial projections. This article will guide you through the process of creating a comprehensive cattle farming business plan in South Africa .

[Pdf Sample] Cattle Farming Business Plan Proposal In South Africa Docx

To write a business plan , here is a breakdown of how it should be structured and what should be in each category. After this instruction, I will provide you with a sample of one I wrote for my farm , let us go:

Executive Summary

The executive summary provides an overview of your cattle farming business plan . It highlights your business goals, strategies, and expected outcomes. Additionally, it summarizes the financial projections and key elements of your plan. This section is typically written after the completion of the entire business plan .

Introduction to Cattle Farming

In this section, we will delve into the fundamentals of cattle farming . We’ll explore the different cattle breeds suitable for South Africa , land requirements, and the significance of proper infrastructure and equipment. Understanding the basics is essential for running a successful cattle farming business .

Market Analysis

Farm infrastructure and equipment.

To ensure the well-being of your cattle and streamline operations, you need to invest in appropriate farm infrastructure and equipment . This section will discuss the essential infrastructure requirements, including fencing, housing, and water supply. Additionally, we’ll explore the necessary equipment for feeding, milking, and handling cattle.

Breeding and Livestock Management

Feed and nutrition.

Providing balanced nutrition is vital for the health and productivity of your cattle. This section will delve into the nutritional requirements of different cattle breeds and the availability of feed resources in South Africa . We’ll discuss feeding strategies, forage production, and supplement options to ensure your cattle receive optimal nutrition throughout their lifecycle.

Health and Veterinary Care

Marketing and sales strategies.

Effectively marketing and selling your cattle and cattle products is essential for generating revenue. This section will explore various marketing channels, such as direct sales, auctions, and online platforms. We’ll discuss branding, product differentiation, and customer relationship management to help you develop a robust marketing and sales strategy.

Financial Projections

Risk assessment and mitigation.

Identifying potential risks and implementing mitigation strategies is crucial for minimizing the impact of unforeseen events on your cattle farming business . This section will cover common risks in the industry, such as droughts, disease outbreaks, and market fluctuations. By addressing these risks proactively, you can protect your investment and ensure long-term sustainability.

How much land do I need for a cattle farming business in South Africa?

The amount of land required for a cattle farming business in South Africa depends on various factors, such as the number of cattle you plan to raise and the type of grazing system you intend to implement. As a general guideline, it is recommended to allocate approximately 2 to 5 hectares (5 to 12 acres) of grazing land per animal unit, which includes both grazing and resting areas.

Read Also:  [Pdf Sample] Business Plan For Pig Farming Docx

What are the popular cattle breeds for meat production in South Africa?

Bonsmara: Bonsmara cattle are well-adapted to South African conditions and known for their excellent meat quality, adaptability, and fertility.

Nguni: Nguni cattle are indigenous to South Africa and are valued for their hardiness, disease resistance, and ability to thrive on marginal grazing land.

Simbra: Simbra is a crossbreed between Simmental and Brahman cattle, combining the meat quality of Simmental with the heat tolerance and disease resistance of Brahman.

How do I market and sell my cattle products effectively?

To effectively market and sell your cattle products, consider the following strategies:

Identify your target market: Determine whether you will be selling directly to consumers, local markets, restaurants, or wholesalers. Understand their preferences and requirements to tailor your marketing efforts accordingly.

Networking and partnerships: Build relationships with local farmers, restaurants, and retailers who may be interested in sourcing locally produced cattle products. Attend agricultural fairs, networking events, and trade shows to expand your professional network.

What are the common diseases that affect cattle in South Africa?

Foot and Mouth Disease (FMD): FMD is a highly contagious viral disease that affects cloven-hoofed animals, including cattle. It can lead to significant economic losses due to trade restrictions.

Heartwater: Heartwater is a tick-borne disease caused by the Ehrlichia ruminantium bacterium. It affects the central nervous system of cattle and can be fatal if not treated promptly.

Bovine Respiratory Diseases: Various respiratory diseases, such as Contagious Bovine Pleuropneumonia (CBPP) and Infectious Bovine Rhinotracheitis (IBR), can affect cattle in South Africa , leading to respiratory distress and reduced productivity.

How long does it take for cattle to reach market weight?

The time it takes for cattle to reach market weight depends on various factors, including breed, feeding regime, genetics, and management practices. On average, it takes around 18 to 24 months for cattle to reach market weight. However, some cattle breeds or specialized production systems may have shorter or longer production cycles.

For beef cattle raised on pasture-based systems, the time to reach market weight can be longer compared to those raised in intensive feedlot operations, where high-energy diets accelerate growth rates. Additionally, factors such as the desired market weight, growth potential of the breed, and the quality of the feeding program can influence the time it takes for cattle to reach market weight.

In conclusion, starting a cattle farming business in South Africa requires careful planning and execution. By following a well-defined cattle farming business plan , you can navigate the challenges and capitalize on the opportunities in this thriving industry. Remember to adapt your plan as needed and stay abreast of industry trends to remain competitive and successful.

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Starting Beef Cattle Fattening Farming Business in South Africa – Business Plan (PDF, Word & Excel)

Posted by BizBolts | Agriculture , All Articles , Business Ideas , Business Plans , Livestock Farming

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.

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.

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

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 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 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 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 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.

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.

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.

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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How To Create The Perfect Cattle Business Plan For Beginners

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

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

Table of Contents

Reasons To Have A Business Plan

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

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

How To Write The Perfect Cattle Farm Business Plan

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

To write an operational business plan, you must include:

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

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

Organizational Plan

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

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

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

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

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

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

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

Management Plan

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

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

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

Your plan should provide details such as:

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

Financial Plan

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

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

Operations Plan

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

It includes aspects such as:

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

Marketing Plan

The marketing plan provides details such as:

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

Exit Strategy

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

The exit plan details options such as:

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

When To Amend Your Business Plan

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

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

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

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