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Livestock Farming Business Plan Template

Written by Dave Lavinsky

livestock farming business plan

Livestock Farming Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their livestock farming companies. 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 livestock farming business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Livestock Farm Business Plan?

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

Why You Need a Business Plan for a Livestock Farm

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

Sources of Funding for Livestock Farming Businesses

With regards to funding, the main sources of funding for a livestock farming business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan (hand it to them in person or email to them as a PDF file) 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 livestock farming companies.

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How to write a business plan for a livestock farming business.

If you want to start a livestock farming business or expand your current one, you need a business plan. The guide and sample below details the necessary information for how to write each essential component of your livestock 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 livestock farming business you are running and the status. For example, are you a startup, do you have a livestock farming business that you would like to grow, or are you operating several family-owned livestock farming businesses?

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

  • Give a brief overv iew of the livestock farming industry. 
  • Discuss the type of livestock farming business 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 livestock farming business you are operating.

For example, you m ight specialize in one of the following types of livestock farming businesses:

  • Cattle Ranching : In order to effectively raise cattle until market-ready, ranchers must have enough land for cattle to roam and eat grass. The rancher must also provide supplemental food, medicines and a number of procedures to ensure cattle sent to market are healthy and at an optimum weight.
  • Sheep Farming: Sheep farming is a process of maintaining order in the herd and corralling sheep when necessary. Farmers must feed and medicate sheep efficiently and they use sheep dogs to assist in many daily efforts. Sheep are prized for their wool and may be sent to slaughter as lambs if they are young. Sheep are often used on vacant fields to graze with an environmentally-friendly outcome. 
  • Chicken Farming: Chicken farmers need to provide water, food and medications to raise chickens until market-ready. Chickens may be free-range or kept in sheds during growth cycles. While hens produce eggs, roosters provide barnyard protection and enjoyment. 
  • Hog Farming: Hogs are notoriously expensive to raise, primarily due to food costs and medications; however, they demand high prices at sale and produce generous profits when sent to market. Hogs are grown in pens to control weight gain and are carefully assessed for market-readiness.

In addition to explaining the type of livestock farming business 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 cattle sold each season, the number of sheep successfully shorn each year, reaching X number of ranches owned, etc.
  • What is 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 livestock farming industry. While this may seem unnecessary, it serves multiple purposes.

First, researching the livestock farming 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 livestock farming business plan:

  • How big is the livestock farming 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 livestock farming business? 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 livestock farming business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: corporate buyers, stockyard owners, and individual buyers.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of livestock farming business you operate. Clearly, individuals would respond to different marketing promotions than stockyard owners, 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. Ideally you can speak with a sample of your target customers before writing your plan to better understand their needs.

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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 othe r livestock farming businesses. 

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes specialty types of beef cattle, such as organic or grass-fed, imported lamb or beef, or eggs that are infused with additional supplements. You need to mention direct competition, as well.

For each direct 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 livestock 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 provide lower rates for stockyards despite fluctuating higher market prices?
  • Will you offer beef cuts 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 livestock farming business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type o f livestock farming company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide uncured, smoked ham and bacon, pasteurized eggs, or free-range chicken? 

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of yo ur plan, yo u are presenting the livestock you offer and their prices.

Place : Place refers to the site of your livestock farming company. Document where your company is situated and mention how the site will impact your success. For example, does your cattle ranch contain grassy acreage, allowing cattle to eat naturally? Is your chicken ranch situated in a weather-friendly environment? Does your hog farm contain heated and cooled hog pens for the well-being of the hogs?  

Promotions : The final part of your livestock farming 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 local papers, radio stations and/or magazines
  • Reach out to regional stockyards 
  • Distribute farmer newsletters to stockyards
  • 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 livestock farming business; including caring for livestock, securing and maintaining food supplies and medications, planning transport to market, invoicing customers and paying bills.  

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

Management Team

To demonstrate your livestock farming business’ 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 livestock farming businesses. 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 livestock farming business or successfully running a livestock stockyard.

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 s heet, 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 you ship 500,000 head of cattle this season, or will you expand your farm by several hundred acres? 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 livestock farming 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 livestock farming business:

  • Cost of breeder chickens, lambs, farrow pigs or calves
  • Cost of farming equipment and vehicles
  • 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 ranch deed of ownership or a list of buyers you partner with in buying and selling operations.

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

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

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Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to learn about Growthink’s business plan writing services .

Other Helpful Business Plan Articles & Templates

Pig Farm Business Plan

Livestock Farming Business Plan Proposal

[Pdf Sample] Livestock Farming Business Plan Docx

In the world of agriculture, livestock farming is a prominent and profitable venture. It involves the rearing and management of animals such as cattle, sheep, pigs, and poultry for various purposes.

Livestock Farming Business Plan Proposal 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 also subsequently as we go, so, let us go:

Executive Summary

Company overview.

In this section, you will introduce Agrolearners.com and provide a brief background of your livestock farming business . Describe the mission and vision of your company, along with its core values. Explain the goals and objectives you aim to achieve through your livestock farming operations.

Market Analysis

Livestock selection.

Choose the livestock species and breeds that align with your business goals and market demand. Consider factors such as adaptability to local conditions, market value, and potential for growth and profitability. Outline the specific breeds you plan to raise and justify your choices based on market research.

Infrastructure and Facilities

Feed and nutrition.

Detail the feed and nutrition requirements for your livestock. Outline the types of feed and forage you will provide, including any additional supplements or concentrates. Highlight your approach to feed formulation , sourcing, and quality control. Emphasize the importance of a balanced diet for optimal growth and productivity .

Breeding and Genetics

Health and disease management.

Livestock health is crucial for the success of your farming business . Outline your health management practices, including vaccination schedules , deworming protocols, and disease surveillance. Emphasize the importance of biosecurity measures to prevent the introduction and spread of diseases. Establish a working relationship with a veterinarian to ensure regular health check-ups and prompt treatment when needed.

Marketing and Sales Strategy

Financial projections.

Provide a detailed financial analysis and projections for your livestock farming business . Include an income statement, cash flow statement, and balance sheet. Project your revenue streams, expenses, and profitability over a specific period. Consider factors such as initial investment, operational costs, pricing, and market demand. Use realistic assumptions and provide a sensitivity analysis to assess the financial viability of your business.

Risk Assessment and Mitigation

Here is the Download Link to a sample of the Business Plan For Livestock Farming prepared By Agrolearner.com

How do I write a business plan for Animal Farm?

Discuss your farm’s infrastructure, facilities, feed and nutrition plans, health and disease management protocols, marketing and sales strategies, and financial projections. Finally, evaluate risks, create an implementation plan, and conclude by summarizing key points and expressing confidence in the success of your animal farm .

How do I write a business plan for a cattle farm?

Discuss feed and nutrition plans, health and disease management protocols, marketing and sales strategies, and financial projections. Evaluate risks, create an implementation plan, and conclude by summarizing key points.

What is the best livestock business?

Poultry Farming: The demand for chicken and eggs is consistently high, making poultry farming a profitable venture. It requires relatively less land and can yield quick returns.

Pig Farming: Pig farming can be profitable due to the high demand for pork products. However, it requires careful management and attention to disease prevention.

Through diligent execution, collaboration with industry experts, and continuous improvement, Agrolearners.com aims to contribute to the agricultural community while achieving long-term profitability and success.

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Livestock Farming Business Plan Template

Written by Dave Lavinsky

Livestock Farming Business Plan

You’ve come to the right place to create your Livestock Farming business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Livestock Farms.

Below is a template to help you create each section of your Livestock Farming business plan.

Executive Summary

Business overview.

Bear Creek Farms is a new livestock farm located just outside of Austin, Texas, near Bear Creek. The company operates a 1000-acre farm that is home to hundreds of pastured cattle, pigs, and sheep. The farm will produce milk, cheese, and meat to sell to grocery stores, restaurants, and individuals located in the Austin area. We aim to be the largest producer of meat and dairy in the region in the next decade, all while keeping our commitment to raising our livestock ethically and sustainably.

Bear Creek Farms is founded and run by Barry Ellis. Barry has worked on local farms for the past ten years, starting off as a farm hand and working his way into a farm operations manager position. As such, Barry has extensive experience running a livestock farm and will be able to make Bear Creek Farms one of the most profitable farms in the region.

Product Offering

Bear Creek Farms will be involved in the commercial breeding and care of cattle, pigs, and sheep to provide the following products:

Customer Focus

Bear Creek Farms will target all residents living in Austin, Texas, and the surrounding areas. We will primarily target local grocery stores and restaurants but will also offer an online store where local residents can purchase our products directly from the farm.

Management Team

Bear Creek Farms is founded and run by Barry Ellis. Barry has worked in the livestock farming industry for over a decade, starting off as a farmhand and working his way up into a management position. As such, he has extensive experience in running a livestock farm as well as considerable knowledge of the industry. He is committed to running the farm with a strict code of ethics and sustainability practices, which will help us stand out from the competition. His leadership experience and industry expertise will be the farm’s greatest assets.

Success Factors

Bear Creek Farms will be able to achieve success by offering the following competitive advantages:

  • There is a high demand for meat and milk in the community. The demand is currently not being met by local and regional farms.
  • Bear Creek Farms will employ a team of friendly, knowledgeable, and highly qualified farmhands.
  • The farm will be a major producer of several meat and dairy products to cater to a wide demographic.
  • Bear Creek Farms will offer the best pricing in town. The pricing structure is the most cost-effective when compared to the competition.

Financial Highlights

Bear Creek Farms is currently seeking $1,000,000 to start the company. The funding will be dedicated to securing the farmland and purchasing the necessary equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include the payroll of the staff and marketing costs for the farm. The breakout of the funding is below:

  • Land and Equipment: $500,000
  • Livestock Care Supplies: $200,000
  • Three Months of Overhead Expenses (Payroll, Rent, Utilities): $150,000
  • Marketing Costs: $50,000
  • Working Capital: $100,000

The following graph below outlines the pro forma financial projections for Bear Creek Farms.

Bear Creek Farms Pro Forma Financial Projections

Company Overview

Who is bear creek farms.

Bear Creek Farms is a new livestock farm located just outside of Austin, Texas. Our mission is to become the largest supplier of meat and dairy products in the region over the next decade. The region is currently experiencing a shortage, and local farms cannot keep up with demand. Our farm will help meet this demand but also provide locals with better products that are priced moderately. The residents of Austin will soon learn that we offer the best meat and dairy products, making us the most popular farm in the region.

  Bear Creek Farms will commit itself to a strong code of ethics and sustainable practices. This will ensure that all livestock are well cared for and that our products are of the highest quality. It will also ensure that our farm continues to operate efficiently for decades to come.

Bear Creek Farms History

Barry incorporated Bear Creek Farms as an S corporation on May 1st, 2023. Barry has selected an initial location and is currently undergoing due diligence on it and the local market to assess if it is a suitable location for a commercial livestock farm.

Since incorporation, the company has achieved the following milestones:

  • Found a potential farm location
  • Developed the company’s name, logo, and website
  • Determined supply requirements
  • Began recruiting key employees

Bear Creek Farms Services

Bear Creek Farms will be home to hundreds of cattle, sheep, and pigs. All livestock will be pastured and treated with great care. The farm will adhere to a strict set of ethics and sustainable practices.

We will raise all of the livestock to produce meat and dairy products. Some of these products will include:

Industry Analysis

Bear Creek Farms competes against large-scale livestock farmers in the U.S. The livestock industry remains in strong demand as meat is a common staple in most Americans’ diets.

The improved living standards for many people in the country have resulted in a shift in meat preferences, with most choosing beef-based products rather than products derived from pork and chicken. Farms that understand these changing diet trends will have a competitive advantage by offering their target market the exact products they demand.

The livestock production industry faces many challenges, including droughts/climate change, rising labor costs, the price of feed, and the increasing popularity of plant-based diets. The primary factor that works in the industry’s favor is the rapid improvement of farming technology and automation.

Despite these challenges, the livestock industry is still going strong. According to Markets and Markets, the precision livestock industry was valued at $5.2 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 17.99% from now until 2030. This projected growth shows that Bear Creek Farms is sure to be a very profitable and successful business.

Customer Analysis

Demographic profile of target market.

TotalPercent
    Total population1,680,988100%
        Male838,67549.9%
        Female842,31350.1%
        20 to 24 years114,8726.8%
        25 to 34 years273,58816.3%
        35 to 44 years235,94614.0%
        45 to 54 years210,25612.5%
        55 to 59 years105,0576.2%
        60 to 64 years87,4845.2%
        65 to 74 years116,8787.0%
        75 to 84 years52,5243.1%

Customer Segmentation

Bear Creek Farms will primarily target the following customer profiles:

  • Local meat and dairy consumers
  • Grocery stores
  • Restaurants

Competitive Analysis

Direct and indirect competitors.

Bear Creek Farms will face competition from other companies with similar business profiles. A description of each competitor company is below.

Lone Star Livestock Farms

Lone Star Livestock Farms is one of the largest livestock farms in the state of Texas. The company boasts an 8,000-ha farm that is home to thousands of livestock. Lone Star Livestock Farms also has well-established relationships with local retailers and is one of the most popular producers of meat and dairy in the region. Lone Star has been in operation for nearly 50 years and has automated equipment and machines that consistently improve operations.

Rolling Hills Farm

Rolling Hills Farm has been a major cattle farm in Texas since 1990. The farm provides excellent quality beef at an affordable price due to its advanced machinery and automated processes. Rolling Hills products can be found in nearly every grocery store and restaurant in the region. The farm also has a large distribution network that can serve customers up to a 500-mile radius. Since Rolling Hills Farm only produces beef, steak, and milk, it will only be a competitor for target markets that buy these products.

SW Livestock, Inc.

SW Livestock, Inc. has been in business for the past 50 years and enjoys great success. SW Livestock, Inc. is one of the largest livestock producers in the southern half of the United States, and its products can be found in nearly every grocery store across 15 states. The farm produces a wide variety of products, including milk, beef, steak, bacon, and pork. SW Livestock, Inc. is an enormous operation, making it our largest competitor.

Competitive Advantage

Bear Creek Farms will be able to offer the following advantages over their competition:

  • Management : The company’s management team has years of farm and marketing experience that allows them to market and serve customers in an improved and more sophisticated manner than the competitors.
  • Relationships : Having lived in the community for 20 years, Barry Ellis knows all of the local leaders, media, and other influencers. As such, it will be relatively easy for Bear Creek Farms to build brand awareness and an initial customer base.
  • Quality products at affordable pricing : The company will provide quality meat and dairy products at affordable pricing.
  • Sustainable packaging : Bear Creek Farms will utilize product-oriented packaging materials that can reduce the damage to the products at the time of supply. The packaging will also be made from sustainable materials to keep our farm’s commitment to sustainability.

Marketing Plan

Brand & value proposition.

Bear Creek Farms will offer a unique value proposition to its clientele:

  • Efficient and quick delivery network
  • Quality, sustainable packaging
  • Delicious, high-quality products at a moderate price
  • Excellent customer service and long-lasting client relationships

Promotions Strategy

The promotions strategy for Bear Creek Farms is as follows:

Social Media Marketing

Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The company will use social media to develop engaging content, such as sharing pictures of the livestock and creating educational content about the industry.

Website/SEO Marketing

Bear Creek Farms will develop a professional website that showcases pictures of the farm and its livestock. It will also invest in SEO so that the company’s website will appear at the top of search engine results.

Word of Mouth/Referrals

Barry Ellis has built up an extensive list of contacts over the years by living and working in the livestock farming industry. Since a number of local livestock farms have ceased operations, they have committed to Barry that Bear Creek Farms will be their livestock supplier. They trust his work ethic and commitment to the local community.

Bear Creek Farms will highlight our location, livestock, and products on a major billboard facing the busiest highway in town. The billboard will provide the location of Bear Creek Farms and the website URL.

Bear Creek Farms’ pricing will be moderate, so customers feel they receive great value when availing of the products. Pricing will be about 50% lower than retail prices to allow wholesalers and retailers to earn their margins.

Operations Plan

The following will be the operations plan for Bear Creek Farms. Operation Functions:

  • Barry Ellis will be the Owner and President of the company. He will oversee all staff and manage the general operations of the farm. Barry has spent the past year recruiting the following staff:
  • Jane Silver– Accountant who will manage all client invoicing, billing, and payables.
  • Michelle Vance – Marketing Assistant who will run all the marketing and promotions campaigns.
  • Eric Mason– Head Farmhand who will oversee the farming staff and day-to-day operations.
  • Rebecca Wright– Distribution Manager who will oversee the packaging and distribution of all products.
  • Over the next several months, Barry and Eric will hire several farmhands to help manage the livestock and the farm.

Milestones:

Bear Creek Farms will have the following milestones completed in the next six months.

  • 6/2023 – Finalize purchase of farmland
  • 7/2023 – Purchase farm equipment, supplies, and materials
  • 8/2023 – Finalize contracts for grocery store chains and restaurant clients
  • 9/2023 – Purchase initial livestock
  • 10/2023 – Hire and train farm staff
  • 11/2023 – Bear Creek Farms begins farm operations

Though Barry has never run a business himself, he has been in the industry long enough to develop an in-depth knowledge of the operations and administrative sides of the business. He will hire other professionals who can help with the other aspects of the business he is unfamiliar with, such as marketing and accounting.

Financial Plan

Key revenue & costs.

Bear Creek Farms’ revenues will come from the sales of meat and dairy products to its customers. The major costs for the company will be the cost of land and equipment. The staff will earn competitive salaries allowing Bear Creek Farms to hire experienced workers. In the initial years, the company’s marketing spending will be high as it establishes itself in the market.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

  • Number of Cows: 100
  • Number of Pigs: 200
  • Number of Sheep: 250
  • Average Revenue per Animal: $500
  • Number of Products Sold Per Year: 100,000

Financial Projections

Income statement.

FY 1FY 2FY 3FY 4FY 5
Revenues
Total Revenues$360,000$793,728$875,006$964,606$1,063,382
Expenses & Costs
Cost of goods sold$64,800$142,871$157,501$173,629$191,409
Lease$50,000$51,250$52,531$53,845$55,191
Marketing$10,000$8,000$8,000$8,000$8,000
Salaries$157,015$214,030$235,968$247,766$260,155
Initial expenditure$10,000$0$0$0$0
Total Expenses & Costs$291,815$416,151$454,000$483,240$514,754
EBITDA$68,185 $377,577 $421,005 $481,366 $548,628
Depreciation$27,160$27,160 $27,160 $27,160 $27,160
EBIT$41,025 $350,417 $393,845$454,206$521,468
Interest$23,462$20,529 $17,596 $14,664 $11,731
PRETAX INCOME$17,563 $329,888 $376,249 $439,543 $509,737
Net Operating Loss$0$0$0$0$0
Use of Net Operating Loss$0$0$0$0$0
Taxable Income$17,563$329,888$376,249$439,543$509,737
Income Tax Expense$6,147$115,461$131,687$153,840$178,408
NET INCOME$11,416 $214,427 $244,562 $285,703 $331,329

Balance Sheet

FY 1FY 2FY 3FY 4FY 5
ASSETS
Cash$154,257$348,760$573,195$838,550$1,149,286
Accounts receivable$0$0$0$0$0
Inventory$30,000$33,072$36,459$40,192$44,308
Total Current Assets$184,257$381,832$609,654$878,742$1,193,594
Fixed assets$180,950$180,950$180,950$180,950$180,950
Depreciation$27,160$54,320$81,480$108,640 $135,800
Net fixed assets$153,790 $126,630 $99,470 $72,310 $45,150
TOTAL ASSETS$338,047$508,462$709,124$951,052$1,238,744
LIABILITIES & EQUITY
Debt$315,831$270,713$225,594$180,475 $135,356
Accounts payable$10,800$11,906$13,125$14,469 $15,951
Total Liability$326,631 $282,618 $238,719 $194,944 $151,307
Share Capital$0$0$0$0$0
Retained earnings$11,416 $225,843 $470,405 $756,108$1,087,437
Total Equity$11,416$225,843$470,405$756,108$1,087,437
TOTAL LIABILITIES & EQUITY$338,047$508,462$709,124$951,052$1,238,744

Cash Flow Statement

FY 1FY 2FY 3FY 4FY 5
CASH FLOW FROM OPERATIONS
Net Income (Loss)$11,416 $214,427 $244,562 $285,703$331,329
Change in working capital($19,200)($1,966)($2,167)($2,389)($2,634)
Depreciation$27,160 $27,160 $27,160 $27,160 $27,160
Net Cash Flow from Operations$19,376 $239,621 $269,554 $310,473 $355,855
CASH FLOW FROM INVESTMENTS
Investment($180,950)$0$0$0$0
Net Cash Flow from Investments($180,950)$0$0$0$0
CASH FLOW FROM FINANCING
Cash from equity$0$0$0$0$0
Cash from debt$315,831 ($45,119)($45,119)($45,119)($45,119)
Net Cash Flow from Financing$315,831 ($45,119)($45,119)($45,119)($45,119)
Net Cash Flow$154,257$194,502 $224,436 $265,355$310,736
Cash at Beginning of Period$0$154,257$348,760$573,195$838,550
Cash at End of Period$154,257$348,760$573,195$838,550$1,149,286

Livestock Farming Business Plan FAQs

What is a livestock farming business plan.

A livestock farming business plan is a plan to start and/or grow your livestock farming business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Livestock Farming business plan using our Livestock Farming Business Plan Template here .

What are the Main Types of Livestock Farming Businesses? 

There are a number of different kinds of livestock farming businesses , some examples include: Cattle Ranching, Sheep Farming, Chicken Farming, and Hog Farming.

How Do You Get Funding for Your Livestock Farming Business Plan?

Livestock Farming businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Livestock Farming Business?

Starting a livestock farming business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Livestock Farming Business Plan - The first step in starting a business is to create a detailed livestock farming business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your livestock farming business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your livestock farming business is in compliance with local laws.

3. Register Your Livestock Farming Business - Once you have chosen a legal structure, the next step is to register your livestock farming business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your livestock farming business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Livestock Farming Equipment & Supplies - In order to start your livestock farming business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your livestock farming business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

ProfitableVenture

Beef Cattle Farming Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Agriculture Industry » Livestock Farming » Cattle and Dairy

Are you about starting a cattle rearing farm for beef ? If YES, here is a complete sample cattle rearing business plan template & feasibility study you can use for FREE. To start with, you may want to consider going on the internet to read up a whole lot about the trade, as well as get information from those who are already in it. Below is a sample cattle rearing business plan template;

A Sample Beef Cattle Farming Business Plan Template

1. industry overview.

The agricultural industry of which livestock farming or better still cattle rearing is a subset of is no doubt among the leading industry in most countries of the world; it is the industry that produce food for the populace and raw materials for industries.

Because of the significant role the agriculture sector plays, the government of most countries ensures that they go all the way to subsidize seedlings, fertilizers, and farming implements and machinery for farmers and also encourage entrepreneurs to go into various kind of farming including cattle rearing.

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There are several business opportunities available in the agricultural industry and one good thing about the industry is that there is market for all the produce from the industry. 

Cattle rearing is of course a thriving and profitable business because usefulness of beef and other by products from cattle. People eat beef, drink their milk, and use their fur and skin. With cattle milk, cheese can be made, along with other dairy products.

The Beef Cattle Farming industry is indeed a large industry and pretty much active in countries such as United States of America, Israel, Argentine, Holland, Egypt, China, Germany, Turkey and Nigeria et al. There is no single livestock farming company that has dominate market share in the industry hence smaller cattle rearing business can successfully make profits.

Statistics has it that in the united states of America alone, there are about 38,184registered and licensed livestock farming business responsible for employing about 62,463and the industry rakes in a whooping sum of $13 billion annually. The industry is projected to enjoy 3.1 percent annual growth.

If you are looking towards leveraging on the agriculture industry to generate huge income, then one of your best bet is to start cattle rearing business. Cattle rearing business is all about mass – breeding of cattle ( cows, oxen, bulls, bullocks, steers, heifers and calf et al ) for the sole aim of making profits. In most cases it is referred to as livestock farming business.

One thing is certain about cattle rearing business, if you are able to conduct your market research and feasibility studies , you are more likely not going to struggle to sell your cattle and its products because there are loads of people out there we eat beef, drink milk and industries that make use of byproducts from cattle in manufacturing their products.

Over and above there are few barriers to entry into the livestock production industry. Usually, all inputs are readily available. In the nearest future, players in this industry may face the highest costs associated with accessing technology, especially in relation to genetic modification engineering in livestock breeding.

So also, intellectual property rights protecting new inventions and technology may mean that new entrepreneurs coming into the industry will need to pay license fees and this of course will cause increase in the start – up fee for starting a livestock breeding/cattle rearing business.

2. Executive Summary

Perry Coleman and Family Cattle Ranch, LLC is a registered and licensed livestock farming company that will be based in the outskirt of Dallas, Texas – United States. We have done our detailed market research and feasibility studies and we were able to secure a hundred acres of land to build our cattle ranch and start our cattle rearing business.

Our cattle ranch / cattle rearing business is a going to be standard one hence will be involved in commercial breeding of cows, oxen, bulls, bullocks, steers, heifers and calf et al. We will also be involved in boarding services, breeding services, dairy support services, livestock health services, farrier services, and shearing services as well.

In the nearest future, hopefully within the first five years of officially running Perry Coleman and Family Cattle Ranch, LLC, we will start our meat processing plant and milk processing plant and also start exporting our products to other parts of the world.

Which is why aside from the fact that we’ve secured the required farming land for breeding cattle in commercial level, we have also hired some key employees who are currently undergoing training so as to be able to fit into the ideal picture of the 21 st century cattle rearing business workforce that we want to build.

We are in the cattle rearing business because we want to leverage on the vast opportunities available in the livestock farming industry, to contribute our quota in growing the U.S. economy, in national food (meat) production, raw materials production for industries, to export agriculture produce from the United States to other countries and over and above to make profit.

Perry Coleman and Family Cattle Ranch, LLC is well positioned to become one of the leading cattle rearing business in the United States of America, which is why we have been able to source for the best hands and equipment to run the business.

We have put process and strategies in place that will help us employ best practices when it comes to cattle rearing processes, meat and milk processing and packaging as required by the regulating bodies in the United States of America.

Perry Coleman and Family Cattle Ranch, LLC is a private registered livestock farming company that is owned by Perry Coleman and family. The company will be fully and single handedly financed by the owner – Perry Coleman and his immediate family members at least for a period of time.

Before starting Perry Coleman and Family Cattle Ranch, LLC, Perry Coleman has worked with some of the leading livestock farms in the United States of America. He has worked in the industry for well over 10 years before resigning to start his own cattle rearing business.

3. Our Products and Services

Perry Coleman and Family Cattle Ranch, LLC is a licensed livestock farming business that is committed to cattle rearing, meat and milk processing and packaging for both the United States’ market and the global market. We will also produce related raw materials for industries in commercial quantities.

We will also ensure that we operate a standard food processing plant as part of our complimentary business offering. These are the areas we will concentrate on in our livestock farming business. If need arises we will definitely add more related animal breeding services to our list;

  • Boarding services
  • Breeding services
  • Dairy support services
  • Livestock health services
  • Farrier services
  • Sale and export of cotton wool and other dairy products
  • Sale of Cattle and milk
  • Sale of processed meat (beef)/can – beef (Processed Diary foods, and can beef et al)
  • Shearing services
  • Livestock farming related consultancy and advisory services

4. Our Mission and Vision Statement

  • Our Vision is to become one of the leading cattle rearing business brands not just in Dallas – Texas, but also in the United States of America.
  • Our mission is to sell our produce ( cattle, beef and milk ), byproducts and processed meat in commercial quantities both locally, nationally and internationally.
  • We want to build a cattle rearing business that can favorably compete with other leading livestock farming / cattle rearing brands in the United States of America and in the globe.

Our Business Structure

Perry Coleman and Family Cattle Ranch, LLC is a cattle rearing company that intend starting small in Dallas – Texas, but hope to grow big in order to compete favorably with leading cattle rearing and livestock farms in the industry both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands in and around Dallas.

At Perry Coleman and Family Cattle Ranch, LLC, we will ensure that we hire people that are qualified, hardworking, dedicated, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders ( the owners, workforce, and customers ).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the management of the farm. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions; Below is the business structure of Perry Coleman and Family Cattle Ranch, LLC;

  • Chief Operating Officer

General Farm Manager

Administrator/Accountant

  • Cattle Ranch Manager/Supervisor
  • Sales and Marketing Executive
  • Field Employees
  • Front Desk Officer

5. Job Roles and Responsibilities

Chief Operating Officer:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
  • Responsible for providing direction for the business
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization
  • Responsible for the planning, management and coordinating all farm activities across the various sections on behalf of the organization
  • Supervises other section manager
  • Ensures compliance during project executions
  • Provides advice on the management of farming activities across all section
  • Responsible for carrying out risk assessment
  • Using IT systems and software to keep track of people and progress of the growth of crops, fishes, birds and animals
  • Responsible for overseeing the accounting, costing and sale of farm produce after harvest
  • Represent the organization’s interest at various stakeholders meetings
  • Ensures that farming goals desired result are achieved, the most efficient resources (manpower, equipment, tools and chemicals et al) are utilized and different interests involved are satisfied. Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Defines job positions for recruitment and managing interviewing process
  • Carries  out staff induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Oversees the smooth running of the daily farming activities across the various farming sections.
  • Defining job positions for recruitment and managing interviewing process
  • Carries out staff induction for new team members
  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Responsible for financial forecasting and risks analysis.
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensuring compliance with taxation legislation
  • Handles all financial transactions for the company
  • Serves as internal auditor for the company

Cattle Ranch and Animal Manager/Supervisor

  • Responsible for managing the commercial breeding of cattle (cows, oxen, bulls, bullocks, steers, heifers and calf et al)
  • Responsible for managing boarding services, breeding services, dairy support services, livestock health services, farrier services, and shearing services et al.
  • Works closely with the General Manager to achieve the organizations’ goals and objectives

Sales and Marketing Officer

  • Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
  • Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of new business
  • Writing winning proposal documents, negotiate fees and rates in line with company policy
  • Responsible for handling business research, marker surveys and feasibility studies for clients
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Develops, executes and evaluates new plans for expanding increase sales
  • Documents all customer contact and information
  • Represents the company in strategic meetings
  • Helps to increase sales and growth for the company

Field Workers/Contract Staff

  • Responsible for feeding cattle and other livestock as instructed by the supervisor
  • Responsible for cleaning the cattle ranch
  • Change the water in the water trough/trench as instructed by the supervisor on a regular basis
  • Handles farm implements and machines as instructed by the section manager/supervisor
  • Assists in handling the breeding of cattle
  • Carries out task in line with the stated job description
  • Assist in transport working tools and equipment from the farm and back to the designated store room
  • Handles any other duties as assigned by the farm manager

Client Service Executive/Front Desk Officer

  • Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the cattle ranch manager in an effective and timely manner
  • Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
  • Receives parcels/documents for the company
  • Distributes mails in the organization
  • Handles any other duties as assigned my the line manager

6. SWOT Analysis

Perry Coleman and Family Cattle Ranch, LLC do not intend to launch out with trial and error hence the need to conduct a proper SWOT analysis.

We know that if we get it right from the onset, we would have succeeded in creating the foundation that will help us build a standard cattle rearing business that will favorably compete with leading cattle rearing/livestock farms in the United States of America and in the rest part of the world.

As a cattle rearing business, we look forward to maximizing our strength and opportunities and also to work around our weaknesses and threats. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Perry Coleman and Family Cattle Ranch, LLC;

Our strength as a cattle rearing business is the fact that we have healthy relationships with loads of major players (agriculture merchants) in the livestock farming industry; both suppliers and buyers within and outside of the United States.

We have some of the latest cattle rearing machines; tools and equipment that will help us breed our cattle (cows, oxen, bulls, bullocks, steers, heifers and calf et al) in commercial quantities with less stress. Aside from our relationship (network) and equipment, we can confidently boast that we have some the most experienced hands in cattle rearing/livestock farming industry in our payroll.

Our weakness could be that we are a new cattle rearing business in the United States and we may not have the required cash to pump into the publicity of our business. We are aware of this and from our projection will overcome this weakness with time and turn it to a major advantage for the business.

  • Opportunities:

The opportunities that are available to us cannot be quantified, we know that there are loads of homeowners, and industries that will source for cattle ( cows, oxen, bulls, bullocks, steers, heifers and calf et al ), beef, and milk and also industries that will source for the raw materials from our livestock farms both in the United States of America and other parts of the world.

Some of the threats and challenges that you are likely going to face when you start your own cattle rearing are global economic downturn that can impact negatively on household spending, bad weather cum natural disasters ( draughts, epidemics ), unfavorable government policies and the arrival of a competitor ( a commercial farm that rear same animals ) as our cattle ranch within same location.

There is hardly anything you can do as regards this threats and challenges other than to be optimistic that things will continue to work for your good.

7. MARKET ANALYSIS

  • Market Trends

One of the common trends in the commercial cattle rearing or livestock farming line of business is that most players in the industry are no longer concentrating only on farming a particular species of livestock or just livestock / cattle farming alone.

They now find it easier to run both livestock farming and crop cultivation. Some even go ahead to include meat and milk processing and packaging business alongside their product offerings; it helps them 8. Our Target Market

Naturally, the target market of those who are the end consumer of livestock farm produce and also those who benefits from the business value chain of the agriculture industry is all encompassing; it is far – reaching.

Every household consumes produce from livestock farms be it meat, milk, and the skin (leather) used for bags, belts and shoes production et al. So also a large chunk of manufacturing companies depends on livestock farms for some of their raw materials. In essence a cattle farmer should be able to sell his or her farm produce to as many people as possible.

We will ensure that we position our business to attract consumers of agriculture produce not just in the United States of America alone but also other parts of the world which is why we will be exporting some of our farm produce either in raw form or processed form to other countries of the world.

Our Competitive Advantage

It is easier to find entrepreneur flocking towards an industry that is known to generate consistent income which is why there are more cattle ranches in the United States of America and of course in most parts of the world.

For example, Statistics has it that there were 2.2 million farms in the United States of America, covering an area of 922 million acres. These goes to show that there are appreciable numbers of farmers in the United States of America but that does not mean that there is stiffer competition in the industry.

As a matter of fact, entrepreneurs are encouraged by the government to embrace commercial farming / livestock farming. This is so because part of the success of any nation is her ability to cultivate her own food and also export foods to other nations of the world.

Perry Coleman and Family Cattle Ranch, LLC is fully aware that there are competitions when it comes to selling livestock and meats all over the globe, which is why we decided to carry out thorough research so as to know how to take advantage of the available market in the United States and in other parts of the world.

We have done our homework and we have been able to highlight some factors that will give us competitive advantage in the marketplace; some of the factors are effective and reliable livestock farming processes that can help us sell our livestock and processed meat and milk at competitive prices, good network and excellent relationship management.

Another competitive advantage that we are bringing to the industry is the fact that we have designed our business in such a way that we will operate an all – round standard commercial livestock farms that will be involved in diverse areas such as animal rearing and meat and milk processing and packaging plant. With this, we will be able to take advantage of all the available opportunities within the industry.

Lastly, our employees will be well taken care of, and their welfare package will be amongst the best in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our objectives as a standard commercial cattle rearing business with a meat and milk processing and packaging plant.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Perry Coleman and Family Cattle Ranch, LLC is in the livestock breeding industry for the purpose of maximizing profits hence we have decided to explore all the available opportunities within the industry to achieve our corporate goals and objectives.

In essence we are not going to rely only on the sale of our livestock to generate income for the business. Below are the sources we intend exploring to generate income for Perry Coleman and Family Cattle Ranch, LLC;

  • Sale of Cattle(cows, oxen, bulls, bullocks, steers, heifers and calf et al)  and milk

10. Sales Forecast

From the survey conducted, we were able to discover that the sales generated by a commercial livestock farm / cattle rearing business depends on the size of the ranch, the network of the business. We have been able to critically examine the cattle rearing industry cum commercial livestock farm business and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.

The sales projection is based on information gathered on the field and some workable assumptions as well with respect to the nature of cattle rearing business that we run. Below are the projections that we were able to come up with for the first three years of running Perry Coleman and Family Cattle Ranch, LLC;

  • First Fiscal Year-: $200,000
  • Second Fiscal Year-: $450,000
  • Third Fiscal Year-: $700,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown that can impact negatively on household spending, bad weather cum natural disasters (draughts, epidemics), and unfavorable government policies.

  • Marketing Strategy and Sales Strategy

We are quite aware that the reason why some commercial livestock farms hardly make good profits is their inability to sell off their livestock to a larger market. In view of that, we decided to set up a standard meat and milk processing and packing plant to help us maximize profits.

Over and above, we have perfected our sale and marketing strategies first by networking with agriculture merchants and companies that rely on raw materials from the livestock farming industry who are likely to refer become our customers.

In summary, Perry Coleman and Family Cattle Ranch, LLC will adopt the following strategies in marketing our cattle rearing produce;

  • Introduce our business by sending introductory letters alongside our brochure to stake holders in the agriculture industry, companies that rely on the livestock farming industry for their raw materials, hotels and restaurants and agriculture produce merchant et al.
  • Advertise our business and livestock farms in agro – allied and food related magazines and websites
  • List our commercial livestock farms on yellow pages ads (local directories)
  • Attend related agriculture and food expos, seminars, and business fairs et al
  • Leverage on the internet to promote our business
  • Engage in direct marketing
  • Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Any business that wants to grow beyond the corner of the street or the city they are operating from must be ready and willing to utilize every available means ( both conventional and non – conventional means ) to advertise and promote the business. We intend growing our business which is why we have perfected plans to build our brand via every available means.

We know that it is important to create strategies that will help us boost our brand awareness and to create a corporate identity for our cattle rearing business. Below are the platforms we want to leverage on to boost our cattle rearing brand and to promote and advertise our business;

  • Place adverts on both print (newspapers and magazines) and electronic media platforms
  • Sponsor relevant community based events / programs
  • Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our business
  • Install our Bill Boards on strategic locations all around Dallas – Texas
  • Engage in road show from time to time in targeted neighborhoods
  • Distribute our fliers and handbills in target areas
  • Contact corporate organizations and residence in our target areas by calling them up and informing them of Perry Coleman and Family Cattle Ranch, LLC and the farm produce we sell
  • List our commercial livestock farms in local directories / yellow pages
  • Advertise our commercial cattle ranch in our official website and employ strategies that will help us pull traffic to the site.
  • Ensure that all our staff members wear our branded shirts and all our vehicles and trucks are well branded with our company logo et al.

12. Our Pricing Strategy

Some of the factors that will help you sell your farm produce at the right price that will guarantee that you make profits is dependent on your strategy while some of the factors are beyond your control. For example, if the climatic condition is unfavorable and if there is natural disaster in the location where you have your commercial livestock farm, then it will directly affect the prices of your livestock.

Over and above, if you want to get the right pricing for your livestock, then you should ensure that you choose a good location for your cattle ranch, choose a good breed that will guarantee steady and multiple breeding (prolific breeds), cut the cost of running your farm to the barest minimum.

And of course try as much as possible to attract buyers to your farm as against taking your livestock or even your produce to the market to source for buyers; with this, you would have successfully eliminate the cost of transporting the goods to the market and other logistics.

We are quite aware that one of the easiest means of penetrating the market and acquiring loads of customers for all our cattle rearing produce is to sell them at competitive prices hence we will do all we can to ensure that the prices of our livestock and processed and packaged beef and milk are going to be what other commercial livestock farmers would look towards beating.

One thing is certain; the nature of cattle rearing business we are involved in makes it possible for farmers to place prices for their livestock/farm products based on their discretion without following the benchmark in the industry. The truth is that it is one of the means of avoiding running into loss. The easier you sell off your livestock when they are mature the better for your business.

  • Payment Options

The payment policy adopted by Perry Coleman and Family Cattle Ranch, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Perry Coleman and Family Cattle Ranch, LLC will make available to her clients;

  • Payment via bank transfer
  • Payment with cash
  • Payment via online bank transfer
  • Payment via check
  • Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part.

13. Startup Expenditure (Budget)

When it comes to calculating the cost of starting a cattle rearing business / commercial livestock farm, there are some key factors that should serve as a guide. The most important expenses is the construction of the cattle ranch / cages/fencing as the case may be.

For example, the start – up cost for a fish farm is different from the start – up cost for mechanized crop farming, so also the start – up cost for poultry farming is different from the start – up cost of cattle ranch (dairy farm) et al. As a matter of fact, if you choose to start a mechanized crop farming, then you should be willing to raise huge capital base to start the business.

This is so because some cultivation machines/equipment can be pretty expensive. Below are some of the basic areas we will spend our start – up capital in setting up our cattle rearing business/cattle ranch;

  • The Total Fee for incorporating the Business in United States of America – $750.
  • The budget for key insurance policies, permits and business license – $2,500
  • The amount needed to acquire/lease a farm land  – $150,000
  • The amount required for preparing the farm land (for construction of cattle ranch and cages/fencing et al et al) – $100,000
  • The cost for acquiring the required working tools and equipment/machines/fencing et al– $50,000
  • The amount required for purchase of the first set of cattle (cows, oxen, bulls, bullocks, steers, heifers and calf et al) – $150,000
  • The Cost of Launching an official Website – $600
  • The amount required for payment of workers for a period of 3 months – $100,000
  • Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,000

Going by the report from detailed research and feasibility studies conducted, we will need an average of $650,000 to start a standard cattle rearing/commercial livestock farming business in the United States of America.

Generating Funding/Startup Jonah Perry Coleman and Family Cattle Ranch, LLC

No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a business such as cattle rearing.

No doubt raising start – up capital for a business might not come cheap, but it is a task that an entrepreneur must go through.

Perry Coleman and Family Cattle Ranch, LLC is a family owned business and it will be financed by the owners of the cattle ranch – Perry Coleman and family. These are the areas where we intend sourcing for fund for Jonah Livingston and Family Farms Ltd;

  • Generate part of the start – up capital from personal savings and sale of his stocks
  • Generate part of the start – up capital from friends and other extended family members
  • Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $450,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Perry Coleman and Family Cattle Ranch, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to sell our farm produce ( livestock and processed beef and milk ) a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Perry Coleman and Family Cattle Ranch, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our organization’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner of our business strategy.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more as determined by the management of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

  • Business Name Availability Check : Completed
  • Business Incorporation: Completed
  • Opening of Corporate Bank Accounts various banks in the United States: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of All form of Insurance for the Business: Completed
  • Leasing of farm land in Dallas – Texas: Completed
  • Conducting Feasibility Studies: Completed
  • Start – up Capital Generation: Completed
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
  • Recruitment of employees: In Progress
  • Building /construction of cages and fence et al: In Progress
  • Purchase of the needed working tools, machines and equipment: Completed
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business (Business PR): In Progress
  • Farm land Treatment, Health and Safety Arrangement: In Progress
  • Establishing business relationship with key players in the industry (agriculture farm produce merchants and transporter / haulage): Completed
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How to Write a Business Plan for Farming and Raising Livestock

Last Updated: May 4, 2023 Approved

This article was co-authored by Karin Lindquist . Karin Lindquist earned a BSc in Agriculture as an Animal Science major from the University of Alberta, Canada. She has over 20 years of experience working with cattle and crops. She's worked for a mixed-practice veterinarian, as a sales representative in a farm supply store, and as a research assistant doing rangeland, soil, and crop research. She currently works as a forage and beef agriculture extension specialist, advising farmers on a variety of issues relating to their cattle and the forages they grow and harvest. wikiHow marks an article as reader-approved once it receives enough positive feedback. This article received 17 testimonials and 93% of readers who voted found it helpful, earning it our reader-approved status. This article has been viewed 385,016 times.

A business plan is essential to have in place before you seek to start up a farm business, no matter what else you've done by way of preparation. In today's world, animal agriculture is more complex and more variable than it was 100 years ago. There are changing markets, high costs, low profit margins, different ways to raise cattle, and niche markets. The type of business plan you make is up to you, but the following step-by-step process of making a proper business plan will help you in the long run.

Step 1 Find some paper,...

  • You should be mainly brainstorming about your goals and objectives. [1] X Research source It's much more effective to run any business when you have a goal in mind to reach rather than having vague ideas of "wanting to do something with animals". That's simply not enough, and is certainly not going to get you anywhere fast!
  • As you consider your goals, remember that strategy is not the same as marketing. The strategy for your business is how you plan to deliver value to your customers (your "value proposition"), how you intend to you convince potential customers to obtain that value from you by communicating your distinctiveness as a producer (or, what makes you different from other farms or ranches), and why you can deliver that value better than other producers (your performance anatomy). Your marketing plan should explain how you intend to communicate your strategy to your existing and potential customers. [2] X Research source

Step 3 Do a SWOT analysis.

  • Such an analysis is very simple and flexible to use, since you can use it to analyze your personal self, your business, or the industry you are wishing to start a career in.
  • Internal forces that you have control over such as what breeds you choose, whether you want to run an intensive or extensive operation, how you feed your animals, etc.
  • External forces that you have no control over such as the weather, the topography and soil-type of the land you are farming/ranching on, local, national and international industry issues, market prices, product demand and consumer preferences.
  • Also analyze your farm, the land your farm sits on and your family. Ask similar questions as mentioned above, only with your family you will need to ask about times you should have to spend with them, what will happen if you put your farming operation before your family, what you can do to encourage and teach your kids to be involved in your operation, etc.
  • The more research about what you're getting into that you do at this stage, the more aware you will be of what to expect when surprises do come. When you finally get started on your business plan, you'll be far more aware of the pitfalls, challenges , needs and requirements it takes to be involved and compete in the kind of livestock/farming operation you want to have.

Step 4 In a separate...

  • Where am I at now? Include a SWOT analysis (see earlier step), for these areas: customers, operations, human resources, and finance . If you don't have a business, a SWOT analysis as mentioned in the previous step is totally fine.
  • Personal goals include things like working fewer hours, furthering your education in areas like different commodity markets or accounting and production programs, etc.
  • Business goals are focused mainly on the farm unit as a business entity; examples include maximum debt load to carry, possibly owning or controlling x number acres, etc.
  • How do I get there? This is the most important part of your business plan, because this is the area where you put on paper how you want to get the things you want for a better you, family and business. Brainstorming is great tool to use in this section, as you can always have a Plan B, C, D, etc., in addition to your Plan A.
  • How do I know I have arrived? If you visualize your business plan as a journey, it is not difficult to understand that you will need to measure your progress along the way and determine if you are moving towards your goals, spinning your wheels or rolling backwards. This is done by defining, collecting and reviewing metrics, measurements and Key Performance Indicators on a regular basis in order to validate your plan and decisions, direct your future activities, justify any modifications to the plan and intervene when things are not happening according to the plan. All your goals should be measurable. Metrics and measurements will give you the answer to this important question.

Step 5 On a different...

  • Vision Statement: A statement of what you or your farm will look like in the next 5 to 10 years.
  • Mission: This determines or defines the purpose the organization attempts to perform in society. This statement should concisely explain what the company does, for whom and why.
  • Values: These are general standards or guidelines that are important to your farm and farm family.
  • Situational Analysis: This is the process of identifying and understanding how your business is positioned within the environment you operate, both internal and external. Step 3 is what this part of the strategic plan is all about.
  • Goals: What are the major achievements you would like to accomplish in the next 3 to 5 years?
  • Objectives: How do you plan on achieving your goals?
  • Critical Success Factors: Areas of performance critical to long-term successes of an organization, and its development, growth and achievement. For each CSF you should define one or more Key Performance Indicators (KPIs), which are metrics you will use to determine if you are achieving your CSFs. CSFs are expressed as general statements of goals ("Maintain customer satisfaction.") while KPIs are more specific ("Decrease in number of product packaging complaints.")
  • In a nutshell, you don't have to go through the headache of answering all of the questions posted above. Instead, use the three simple questions above in Step 4 as a means to answer all 8 of these standard business-plan questions.
  • Production resources are also important to mention: Land base, Equipment base, and Buildings and Structures.
  • Marketing Plan: Where and how will you sell your commodities? Remember, selling is just getting rid of what you have. When you market, you have to plan to sell commodities at a good price.
  • Financial Plan: This includes budget analysis, revenues and expenses, debt, unpaid labour, opportunity costs, benchmark analysis of yourself from other operations, statements of cash flow , depreciation of machinery, animals, buildings, etc., wages, family living costs, etc.
  • Human Resources plan: Most farms rely on one worker (i.e., the owner) to run the operation. But, nonetheless, human resource plans should highlight hiring issues facing the business and how to address them. It should further describe the kind of people that are required to operate the business (general responsibilities, title, skills, availability and any training programs needed.)
  • Plan: Establish the objectives for whatever it is you intend to do, the processes necessary achieve those objectives and the metrics and measurements required to control the processes and prove that the objectives are being achieved.
  • Do: Execute the plan and collect metrics and measurements along the way as defined in the previous phase.
  • Check: Review the results, metrics and measurements and determine if any improvements can and should be made to the plan.
  • Act: Implement the improvements so the next time the process is executed the results will be better.
  • Succession Planning . This can be the hardest part of a business plan, as one has to plan what should happen if the main operator is injured or worse, dies. Succession planning includes developing a continuity plan for your business and determining the process of transitioning a business to new owners. This transition may be an outside sale (equipment and land auction sale), or an inheritance sale (passing the business down to the next generation). [7] X Research source

Step 6 Identify the type of farm ownership.

  • Proprietorship : This is the simplest form of business organization. It primarily involves one person running the whole she-bang. Debts and negligent acts committed by employees are the responsibility of the proprietor. But, all the legal complications and expenses and negotiations for agreements are not required, nor is a business name required.
  • General Partnership : This means two or three people running an operation. With more than one person running a farm, this means that the business must have a registered name, and each partner is responsible for all debts, obligations and liabilities of the operation. This partnership automatically dissolves with a death, bankruptcy, or insolvency.
  • Limited Partnership : This is basically one person is responsible for everything in the firm, whereas the other is only there to supply capital, nothing more or less. A limited partner has no active part in the goings-on of an operation, but he may inspect the books of the firm and advise management.
  • Co-ownership : This is where two or more persons own property jointly.
  • Joint Venture : This is commonly used in farming, where there is a joint partnership between parties, and is created in order to conduct a specific or limited commercial venture without creating a partnership. This is commonly a temporary arrangement between two parties.
  • Corporations : These are legal entities where shareholders own the corporation through the ownership of shares. It is a separate legal entity, distinct from its shareholders. The individual shareholder's liability is limited to that person's investments in the corporation, unless the shareholder has personally guaranteed the obligations of the corporation. A corporation can provide very flexible framework in terms of succession to the next generation. The owner may also give employees shares in the growth and profit of the operation without giving up management rights of a partner.
  • Trust: This is a relationship where legal ownership of the property is separated from beneficial ownership of the property.

Step 7 Tie it all together.

Community Q&A

Karin

  • Ask for help when writing a business plan. Get a professional business analyst or someone similar with lots of experience analyzing and writing up such plans so they can help you if and when you are stuck on a particular section. Thanks Helpful 33 Not Helpful 5
  • A business plan is good to have when signing on for a loan at the bank. They will be more interested in the financial portion of your business plan, because they need to see how it will affect them in terms of what they can get out of it in terms of money. Thanks Helpful 30 Not Helpful 9
  • Put everything in writing. Nothing's worse than not writing something down and suddenly forgetting it. Also, have a separate file folder for thus business plan so you know where it is and where you can access it in the future. If you have it on the computer, save it on a hard drive or a data stick so if your computer crashes on you and you can't get your work back up, you have it saved on a separate disk. Thanks Helpful 29 Not Helpful 10

animal production business plan

  • Don't go in over your head and attempt to write out a business plan in one sitting. It may take a week or more before you get it all done, so take your time. Indeed, many established businesses started by spending six months or more preparing business plans; rushing will simply harm your business in the long run. Thanks Helpful 11 Not Helpful 2
  • Don't think that you won't have to look at your business plan ever again for the rest of the time you are running your operation. You should always try to analyze what yourself and your business at least once a year to know where you are struggling and where you are doing great. Thanks Helpful 1 Not Helpful 2

Things You'll Need

  • Computer text program or paper/notepad and pens
  • Printer if you want hard copies of computer documents
  • Research tools such as the internet, local library, libraries of agricultural bodies, etc.
  • Phone numbers of people in the industry that you're interested in so that you can ask any important questions
  • Books or websites on making business plans (but don't over-complicate things)
  • Books on information about certain livestock interested in raising
  • Newspapers and magazines of industry news and events in your area or the area you are interested in pursuing your farming career

You Might Also Like

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  • ↑ https://grasshopper.com/academy/developing-a-business-plan/brainstorming-tips/
  • ↑ https://www.forbes.com/sites/michaelskok/2013/06/14/4-steps-to-building-a-compelling-value-proposition/
  • ↑ https://www.business.qld.gov.au/starting-business/planning/market-customer-research/swot-analysis/conducting
  • ↑ https://www.agriculture.com/farm-management/business-planning/do-a-swot-analysis-on-your-farm
  • ↑ https://keydifferences.com/difference-between-strategic-planning-and-operational-planning.html
  • ↑ https://fitsmallbusiness.com/business-succession-planning/

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animal production business plan

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  • Agriculture

Livestock Farming

Aquaculture

Poultry Farming

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Beef cattle farms are similar to dairy farms but raise beef instead of dairy cows. Hog farms raise pigs for meat production, while chicken farms raise chickens for meat and egg production. There is no one-size-fits-all definition of animal farming. Each farm is unique and has its own set of practices and protocols. However, there are some general principles that all animal farmers adhere to produce safe and healthy food for consumers.

Animal farming is an important part of the agricultural industry. It allows farmers to produce meat, milk, and eggs for consumption. Animal farming also provides a way for farmers to use animal waste products, such as manure, which can be used as fertilizer. Animal farming is an important source of food for many people around the world. It provides a reliable source of protein and other nutrients essential to human health. Animal farming also supports the livelihoods of millions of people who work in the agricultural industry.

If you’re interested in starting an animal farm, there are a few things you should keep in mind. First, decide what type of animals you want to raise. There are many options, from traditional livestock like cows and pigs to more exotic animals like ostriches or alpacas. Once you’ve decided on the types of animals you want to raise, research the best way to care for them. This includes everything from what they eat to how they exercise and socialize. Next, make sure you have the space for your animal farm.

This means having enough land for grazing or housing and access to water and other resources. If you’re unsure where to start, many online resources can help you find the perfect location for your farm. Finally, once you have the land and the animals, it’s time to start building your farm. This includes fencing, constructing shelters, and creating a plan for how your animals will care for each day. It’s important to think about every aspect of running an animal farm before getting started so that you can be prepared for anything that comes your way.

Animal agriculture is a mainstay of many economies around the globe. It provides livelihoods for farmers and supplies a major food source for people and livestock. But animal agriculture also comes with high environmental costs. The main environmental impacts of animal agriculture are:

Deforestation:  Animal agriculture is a leading cause of deforestation, especially in the Amazon. Clearing forests to create pastureland and grow crops to feed animals destroys critical habitats, drives climate change, and contributes to biodiversity loss.

Water pollution:  Animal waste, fertilizers, and pesticides used in animal agriculture pollute our waterways. The United Nations estimates that animal agriculture is responsible for 14% of global freshwater pollution.

Climate change:  Animal agriculture emits greenhouse gases like carbon dioxide and methane that contribute to climate change. The United Nations estimates that animal agriculture accounts for 18% of human-caused greenhouse gas emissions – more than the entire transportation sector.

Biodiversity loss:  Animal agriculture is a major driver of biodiversity loss. Habitat destruction, pollution, and climate change caused by animal agriculture are leading causes of species decline and extinction. The United Nations estimates that as many as 60% of all species could be extinct by 2050 due to the impact of animal agriculture on the environment.

Animal husbandry is the branch of agriculture concerned with animal care, breeding, and management. There are many different types of animal farming, each with its own advantages and disadvantages. The most common types of animal farming are:

Dairy farming : Dairy farmers milk cows to produce milk and other dairy products. Dairy farming is demanding and intensive animal husbandry, as cows need to be milked twice daily. However, it can be a very rewarding and profitable enterprise.

In case you missed it: How to Make Cow Dung Manure Compost: A Step-by-Step Guide to Use in Your Farm/Garden

Dairy Farming

Beef cattle farming : Beef cattle farmers raise cows for meat production. Beef cattle farming is a more relaxed form of animal husbandry than dairy farming, as cows only need to be milked once daily. However, it requires more land and resources than dairy farming.

Poultry farming : Poultry farmers raise chickens for meat or egg production. Poultry farming is relatively easy animal husbandry, as chickens do not require much space or attention. However, it can be difficult to profit from poultry farming due to the high feed cost and competition from larger commercial operations.

In case you missed it: Farming Business Plan PDF: for Poultry, Livestock, Agriculture, Horticulture, Greenhouse, and Hydroponic

Poultry Farming

Though there are many different types of animal farming, some farmers believe that the best type of animal farming involves raising chickens. Chickens are relatively easy to take care of and don’t require a lot of space, making them a good choice for small farms. They also provide a source of income through the sale of eggs.

In case you missed it: Contract Sheep Farming in India: Companies, Agreement, Profits, How it Works and the Pros and Cons

Sheep Farming

Animal farming is raising animals for food, fiber, or other products. It can be done with pigs, cattle, sheep, goats, horses, poultry, and rabbits. In addition, animal farming includes dairy farming and egg production.

  • Pigs are commonly raised for food in the form of pork. However, they are also raised for their skin, which is used to make leather. Pigs are omnivores and eat almost anything, making them easy to raise.
  • Cattle are raised for their meat, which is called beef. Cattle are also raised for their skin and horns, which are used to make leather and other products. Dairy cows are kept for their milk production.

Common Dairy Cattle Diseases, Symptoms, and Treatment: Check How this Guide Helps Dairy Farmers

Dairy Cattle

  • Sheep are raised for their wool and meat. Sheep meat is called lamb. The wool from sheep is used to make clothing and other textiles.
  • Horses are usually not raised for food, but sometimes their meat is eaten as a delicacy. Horses are mostly used for transportation or recreation, such as racing or rodeos.
  • Poultry birds such as chickens and turkeys are typically raised for their meat. However, poultry eggs are also a common food product. Chickens are also sometimes kept as pets.
  • Goats are raised for their meat and milk. Goat milk is often made into cheese or other dairy products. Goat meat is called kid or chevon.

How to Care for Dairy Goats: Shelter/Housing, Fencing, Feeding, and Disease Control

Goat Farming

There are certain ways that you can make money with animals. The most obvious way is to sell the products that they produce, such as milk, eggs, or meat. However, you can also sell other animal-related products, such as wool or leather. If you have a good portion of the land, you could start a breeding program and sell animals to other farmers. Or, you could open a petting zoo or offer riding lessons. The possibilities are endless!

Farming with animals can be a rewarding experience, but it is important to choose the right animal for your farm. The easiest animal to farm is typically a chicken. Chickens are easy to care for and don’t require a lot of space. They also reproduce quickly so that you can build up your flock in a short amount of time. So chickens are the way to go if you’re looking for an animal that is easy to care for and doesn’t take up a lot of space.

If you’re thinking about starting an animal farming business, one of the first things you’ll need to do is create a business plan. This will help you map out the steps you need for your business to be up and running and set goals and milestones to track your progress. To get started, sit down and answer the following questions:

  • What type of animal farming business do you want to start ? There are many animal farms, from dairy to chicken and horse farms. So first, decide which farm you want to start, and then research the specific requirements for that type of farm.
  • Where will your farm be located ? The location of your farm can have a big impact on its success or failure. Make sure to choose a spot conducive to raising animals, with enough space and access to water and other resources.
  • Who is your target market ? When starting an animal farm, it’s important to consider to who you’ll sell your products or services. For example, will you be targeting local consumers or larger businesses? Knowing your target market will help you determine the types of animals to raise and the prices to charge.
  • What are your operating costs ? Before making money with animal farming, you need to know the daily cost of keeping your farm running. Make a list of all the necessary costs.

The cost of setting up an animal farm can vary depending on the size and type of farm you want to create. For a small farm with only a few animals, the cost may be less than $1,000. For a larger farm with more animals, the cost could be upwards of $10,000. The biggest factor in setting up an animal farm is the price of land. You will also need to factor in the cost of fencing, shelter, food, and water for your animals.

Animal farming is an efficient and profitable way to produce food. By raising animals for food, farmers can provide a high-quality product at a lower cost than if they were to raise crops. In addition, animal farming requires less land and water than crop production, making it more environmentally sustainable. Animal farming also allows farmers to diversify their operations and produce multiple products from one farm. For example, a dairy farm can sell milk, cheese, butter, and ice cream

A meat farm can sell beef, pork, and chicken and a poultry farm can sell eggs and feathers. This diversity provides farmers with added income stability and makes their businesses more resilient to market fluctuations. Finally, animal farming plays an important role in rural communities. Farm animals provide jobs for thousands of Americans and contribute billions of dollars annually to the economy. Animal farms also generate tax revenue that supports schools, roads, and other public services in rural areas.

Animal production provides several benefits for farmers. Animals can be used for labor, which can help with farm tasks such as plowing fields or harvesting crops. They can also be used for their manure, a natural fertilizer that can improve soil quality. Additionally, animals can be sold for their meat, milk, or other products, providing a source of income for the farmer. Finally, animals can help control farm pests by eating insects or competing with them for food.

Animal farming is not sustainable. Animal agriculture contributes to greenhouse gas emissions, water pollution, and land degradation. Additionally, the animals themselves suffer from overcrowding, confinement, and stress. The impact of animal farming/raising on the environment is well-documented. For example, animal farming generates greenhouse gas emissions that contribute to climate change, including carbon dioxide, methane, and nitrous oxide.

These emissions come from the animals themselves and land clearing for pasture and feed crops. Animal farming also uses large amounts of water for the animals and growing feed crops. This strains local water resources, especially in areas where water is already scarce. In addition, animal waste can pollute waterways with harmful bacteria and nutrients.

The conditions that animals are raised in on factory farms are often crowded and cramped, leading to stress and illness. In addition, animals are routinely given antibiotics to prevent disease, which can lead to antibiotic resistance in both humans and animals. Factory farms also frequently use hormones and other chemicals to promote their animals’ growth, which can negatively affect human health.

Animal farming can have a positive impact on the environment in several ways. First, pasture-based animal farming can help to reverse climate change. Grazing animals on grasslands sequester carbon in the soil, which helps to reduce atmospheric greenhouse gas levels. Animal farming can also help to improve water quality.

Manure from grazing animals contains nutrients that can help to improve soil health and water retention, leading to less runoff and erosion. Finally, animal farms can provide a habitat for wildlife. Well-managed pastureland can support a diversity of plant and animal life, including many threatened and endangered species.

Farm animals are not just for show or producing food. They can be used for a variety of purposes on the farm. Here are ten uses for farm animals:

  • Farm animals can be used as draft animals to help with farm work, such as plowing fields or pulling carts.
  • Farm animals can be used for their manure, a natural fertilizer that can improve soil health.
  • Farm animals can be used to graze on pastureland, which helps keep the grass short and manageable.
  • Farm animals can control pests and weeds by eating or trampling them down.
  • Farm animals can provide wool, milk, eggs, and meat which can be sold or consumed by the farmer and their family.
  • Farm animals can be used in research to help develop new medicines and treatments for diseases.
  • Farm animals can serve as companion animals and provide emotional support for the farmer and their family.
  • Farm animals can add beauty and interest to the farm landscape and attract visitors near and far.
  • Farm animals can teach children about responsibility, hard work, and respect for other living creatures.
  • Give your animals the best possible care. This means providing them with a clean and comfortable environment, fresh food and water, and proper medical attention.
  • Keep your animals healthy by vaccinating them against common diseases and parasites and practicing good biosecurity measures.
  • Know what your animals need regarding nutrition, and provide them with a balanced diet that meets their specific requirements.
  • Create a breeding plan for your animals, and be careful to only breed from healthy stock.
  • Manage your pastureland properly to ensure it can support the number of animals you are grazing on.
  • Be prepared to deal with unexpected events such as disease outbreaks or adverse weather conditions.
  • Keep good records of your animals’ health, performance, and production levels so that you can identify any problems early on.
  • Use available technology to help you in animal husbandry tasks such as feeding management or identifying individual animals.
  • Farming with animals will always involve risks, but you can minimize these risks by being well-prepared and informed. 10 Embrace challenges as part of the farming lifestyle – there will always be ups and downs, but the satisfaction you get from successfully running your farm makes it all worth it in the end.

Farming with animals can be a great way to produce food while protecting the environment. When done correctly, it can help improve soil quality and provide a habitat for wildlife. It can also be a more sustainable option than traditional farming methods. If you’re interested in trying out animal farming, make sure to do your research and work with a reputable farm.

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Cattle Farm Business Plan

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To get started with a new cattle farm business , you need a proactive business plan in place. Getting some insights into the tricks of the trade can be an excellent way to get a footing on where to start. You can spend some time doing thorough research about the different departments you’d need to take care of for a flourishing Cattle Farm Business.

Industry Overview

The Cattle Industry involves cattle production, including beef, dairy, cattle coats, leather, and other essential products. Beef production and dairy production are the two significant revenue-earning domains in the cattle industry. While the beef industry estimates to be worth fifty billion dollars per year alone, over a hundred billion dollars are generated in the Cattle Industry’s annual profits in the US. These statistics make a cattle business a traditionally profitable venture to invest in.

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Things to Consider Before Writing Your Cattle Farming Business Plan.

Demarcated departments.

Demarcate different concerned departments for your farm business, including real estate involved, cattle resources, staff, and other management. Get an idea of the cattle stock you want to invest in, for instance, the number of cows you’d like to start your business with.

Resources Required and Budgeting

A typical cattle farm requires various resources for proper smooth functioning. The dairy equipment and pasture requirements must also be considered separately before you settle on a blueprint for your business. Based on the location of your choice as well as weather conditions, the cost incurred for these resources might vary. The overhead expenses of the staff members are a significant factor. Having a budget for these requirements can help keep your plan on track.

Customer base and Products for sale

Many cattle farm businesses stick to dairy and meat while others venture into hiding products as well. You need to determine the exact products your farm business will sell to be able to come up with a realistic business plan.

Competitors and Market-Survey

Studying market competitors is an excellent way to pinpoint the aims of your business. A detailed market survey can help you understand what works to yield the best profits.

Write Your Business Plan

To chalk out a credible business plan, you can go through some sample business plans to get an idea of specific aspects to cater to. Read through some plans of existing businesses to work out aspects that need attention in each department. You can also read about some drawbacks and loopholes to take care of these in your business plan.

Our cattle farm business plan can help you get the hang of the different aspects of a Cattle Farming Business. It shares an outline that a typical cattle farming business could implement with some personalized tweaks.

The Upmetrics business plan software can help you create a comprehensive business plan for your cattle farming business. We have drafted a cattle farm business plan using our software to help you lay down what to aim for before creating your business plan. Get started with your creating a business plan that fits your requirements to the tee.

Cattle Farm Business Plan Outline

This sample cattle farm business plan includes the following sections:

  • Keys to Success
  • Business Summary
  • Company History
  • Past Performance
  • Products & Services
  • Market Summary
  • Market Analysis (Pie)
  • Target Market Segment Strategy
  • Competition and Buying Patterns
  • SWOT Analysis
  • Competitive Edge
  • Marketing Strategy
  • Sales Forecast
  • Sales by Year
  • Detailed Budget
  • Personnel Plan
  • Important Assumptions
  • Break-even Analysis
  • Projected Profit and Loss
  • Projected Cash Flow
  • Projected Balance Sheet
  • Business Ratios
  • Profit and Loss
  • Balance Sheet

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Download a sample cattle farm business plan

Need help writing your business plan from scratch? Here you go;  download our free cattle farm business plan pdf  to start.

It’s a modern business plan template specifically designed for your cattle farm business. Use the example business plan as a guide for writing your own.

After  getting started with upmetrics , you can copy this sample cattle farm business plan into your business plan and modify the required information and download your cattle farm business plan pdf and doc file. It’s the fastest and easiest way to start writing your business plan.

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Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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How to Start a Farm: Plan Your Operation

Think about your operation from the ground up and start planning for your business.  A good farm business plan is your roadmap to start-up, profitability, and growth, and provides the foundation for your conversation with USDA about how our programs can complement your operation. 

Keep reading about planning your business below, get an overview of the beginning farmer's journey , or jump to a different section of the farmer's journey.

On This Page

Why you need a farm business plan.

A comprehensive business plan is an important first step for any size business, no matter how simple or complex. You should create a strong business plan because it:

  • Will help you get organized . It will help you to remember all of the details and make sure you are taking all of the necessary steps.
  • Will act as your guide . It will help you to think carefully about why you want to farm or ranch and what you want to achieve in the future. Over time, you can look back at your business plan and determine whether you are achieving your goals.
  • Is required to get a loan . In order to get an FSA loan, a guarantee on a loan made by a commercial lender, or a land contract, you need to create a detailed business plan . Lenders look closely at business plans to determine if you can afford to repay the loan.

How USDA Can Help

Whether you need a good get-started guide, have a plan that you would like to verify, or have a plan you’re looking to update for your next growth phase, USDA can help connect you to resources to help your decisions.

Your state's beginning farmer and rancher coordinator  can connect you to local resources in your community to help you establish a successful business plan. Reach out to your state's coordinator for one-on-one technical assistance and guidance. They can also connect you with organizations that specifically serve beginning farmers and ranchers.

It is important to know that no single solution fits everyone, and you should research, seek guidance, and make the best decision for your operation according to your own individual priorities.

Build a Farm Business Plan

There are many different styles of business plans. Some are written documents; others may be a set of worksheets that you complete. No matter what format you choose, several key aspects of your operation are important to consider.

Use the guidelines below to draft your business plan. Answering these kinds of questions in detail will help you create and develop your final business plan. Once you have a business plan for your operation, prepare for your visit to a USDA service center. During your visit, we can help you with the necessary steps to register your business and get access to key USDA programs.

Business History

Are you starting a new farm or ranch, or are you already in business? If you are already in business:

  • What products do you produce?
  • What is the size of your operation?
  • What agricultural production and financial management training or experience do you, your family members, or your business partners have?
  • How long have you been in business?

Mission, Vision, and Goals

This is your business. Defining your mission, vision and goals is crucial to the success of your business. These questions will help provide a basis for developing other aspects of your business plan.

  • What values are important to you and the operation as a whole?
  • What short- and long-term goals do you have for your operation?
  • How do you plan to start, expand, or change your operation?
  • What plans do you have to make your operation efficient or more profitable ?
  • What type of farm or ranch model (conventional, sustainable, organic, or alternative agricultural practices) do you plan to use?

Organization and Management

Starting your own business is no small feat. You will need to determine how your business will be structured and organized, and who will manage (or help manage) your business. You will need to be able to convey this to others who are involved as well.

  • What is the legal structure of your business? Will it be a sole proprietorship, partnership, corporation, trust, limited liability company, or other type of entity?
  • What help will you need in operating and managing your farm or ranch?
  • What other resources, such as a mentor or community-based organization , do you plan to use?

Marketing is a valuable tool for businesses. It can help your businesses increase brand awareness, engagement and sales. It is important to narrow down your target audience and think about what you are providing that others cannot.

  • What are you going to produce ?
  • Who is your target consumer ?
  • Is there demand for what you are planning to produce?
  • What is the cost of production?
  • How much will you sell it for and when do you expect to see profit ?
  • How will you get your product to consumers ? What are the transportation costs and requirements?
  • How will you market your products?
  • Do you know the relevant federal, state, and local food safety regulations? What licensing do you need for your operation?

Today there are many types of land, tools, and resources to choose from. You will need to think about what you currently have and what you will need to obtain to achieve your goals.

  • What resources do you have or will you need for your business?
  • Do you already have access to farmland ? If not, do you plan to lease, rent, or purchase land?
  • What equipment do you need?
  • Is the equipment and real estate that you own or rent adequate to conduct your operation? If not, how do you plan to address those needs?
  • Will you be implementing any conservation practices to sustain your operation?
  • What types of workers will you need to operate the farm?
  • What additional resources do you need?

Now that you have an idea of what you are going to provide and what you will need to run your operation you will need to consider the finances of your operation.

  • How will you finance the business?
  • What are your current assets (property or investments you own) and liabilities (debts, loans, or payments you owe)?
  • Will the income you generate be sufficient to pay your operating expenses, living expenses, and loan payments?
  • What other sources of income are available to supplement your business income?
  • What business expenses will you incur?
  • What family living expenses do you pay?
  • What are some potential risks or challenges you foresee for your operation? How will you manage those risks?
  • How will you measure the success of your business?

Farm Business Plan Worksheets

The Farm Business Plan Balance Sheet can help gather information for the financial and operational aspects of your plan.

Form FSA-2037 is a template that gathers information on your assets and liabilities like farm equipment, vehicles and existing loans.

  • FSA-2037 - Farm Business Plan - Balance Sheet
  • FSA-2037 Instructions

Planning for Conservation and Risk Management

Another key tool is a conservation plan, which determines how you want to improve the health of your land. A conservation plan can help you lay out your plan to address resource needs, costs and schedules.

USDA’s Natural Resources Conservation Service (NRCS) staff are available at your local USDA Service Center to help you develop a conservation plan for your land based on your goals. NRCS staff can also help you explore conservation programs and initiatives, such as the Environmental Quality Incentives Program (EQIP) .

Conservation in Agriculture

Crop insurance, whole farm revenue protection and other resources can help you prepare for unforeseen challenges like natural disasters.

Disaster Recovery

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Special Considerations

Special considerations for businesses.

There are different types of farm businesses each with their own unique considerations. Determine what applies to your operation.

  • Organic Farming  has unique considerations. Learn about organic agriculture , organic certification , and the  Organic Certification Cost Share Program  to see if an organic business is an option for you. NRCS also has resources for organic producers and offers assistance to develop a conservation plan.
  • Urban Farming  has special opportunities and restrictions. Learn how USDA can help farmers in urban spaces .
  • Value-Added Products . The Agricultural Marketing Resource Center (AgMRC) is a national virtual resource center for value-added agricultural groups.
  • Cooperative.  If you are interested in starting a cooperative, USDA’s Rural Development Agency (RD) has helpful resources to help you begin . State-based  Cooperative Development Centers , partially funded by RD, provide technical assistance and education on starting a cooperative.

Special Considerations for Individuals

Historically Underserved Farmers and Ranchers: We offer help for the unique concerns of producers who meet the USDA definition of "historically underserved,"  which includes farmers who are:

  • socially disadvantaged
  • limited resource
  • military veterans

Women: Learn about specific incentives, priorities, and set asides for  women in agriculture within USDA programs.

Heirs' Property Landowners: If you inherited land without a clear title or documented legal ownership, learn how USDA can help Heirs’ Property Landowners gain access to a variety of programs and services

Business Planning

Creating a good business plan takes time and effort. The following are some key resources for planning your business.

  • Farm Answers from the University of Minnesota features a library of how-to resources and guidance, a directory of beginning farmer training programs, and other sources of information in agriculture. The library includes business planning guides such as a Guide to Developing a Business Plan for Farms and Rural Businesses and an Example Business Plan .
  • The Small Business Administration (SBA) offers information about starting, managing, and transitioning a business.

SCORE is a nonprofit organization with a network of volunteers who have experience in running and managing businesses. The Score Mentorship Program partners with USDA to provide:

  • Free, local support and resources, including business planning help, financial guidance, growth strategies.
  • Mentorship through one-on-one business coaching -- in-person, online, and by phone.
  • Training from subject matter experts with agribusiness experience.
  • Online resources and step-by-step outlines for business strategies.
  • Learn more about the program through the Score FAQ .

Training Opportunities

Attend field days, workshops, courses, or formal education programs to build necessary skills to ensure you can successfully produce your selected farm products and/or services. Many local and regional agricultural organizations, including USDA and Cooperative Extension, offer training to beginning farmers.

  • Cooperative Extension  offices address common issues faced by agricultural producers, and conduct workshops and educational events for the agricultural community.
  • extension.org  is an online community for the Cooperative Extension program where you can find publications and ask experts for advice.

Now that you have a basic plan for your farm operation, prepare for your visit to a USDA service center.

2. Visit Your USDA Service Center

How to Start a Farm with USDA

Get an  overview of the beginning farmer's journey  or jump to a specific page below.

Find Your Local Service Center

USDA Service Centers are locations where you can connect with Farm Service Agency, Natural Resources Conservation Service, or Rural Development employees for your business needs. Enter your state and county below to find your local service center and agency offices. If this locator does not work in your browser, please visit offices.usda.gov.

Learn more about our Urban Service Centers . Visit the Risk Management Agency website to find a regional or compliance office  or to find an insurance agent near you.

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Starting Beef Cattle Farming Business Plan (PDF)

Beef Cattle Farming Business Plan

Starting a beef cattle farming business presents a unique and lucrative opportunity for aspiring entrepreneurs. The demand for quality beef continues to rise globally, making this an opportune time to enter the market. With a growing population and a steady increase in the consumption of protein-rich diets, the beef industry is poised for sustained growth. This demand creates a fertile environment for new entrants, offering a chance to tap into a thriving market. Beef cattle farming involves breeding cows to get calves, which are then raised and sold for beef. Beef cattle production is a very profitable business, and many farmers are making money all over the world by starting cow-calf operations businesses. However, to build a profitable, sustainable beef cattle ranching business, you require sufficient knowledge of how to efficiently keep the beef cattle, good business management skills, and a good beef cattle farming business plan. This article will outline how to start the cattle production business, and the beef cattle farming business plan – PDF, Word and Excel.

Beef cattle farming is a lucrative business project that is providing income for a lot of livestock farmers. There are some important things you need to consider before you setup a beef cattle production business. You need to gather the correct resources, decide on the size of your cattle farming project this includes the number of cattle; location of the beef cattle production business, as well as your target market. These decisions will be affected by the amount of capital you have, and the size of your target market. If you do not have a lot of capital, you can always start small and grow your beef cattle breeding project overtime. You also need to carry out market research (Who are you going to sell the cattle to? At what price?) and write a cow-calf operations business plan before you start the project.

Market Research

Market research is a pivotal step when embarking on a beef cattle farming venture. It serves as the compass guiding your business decisions and can ultimately determine your success in this industry. Assessing the local demand is essential; understanding the existing market, who your potential customers are, and their preferences can help you tailor your cattle farming approach to meet these needs effectively. It’s imperative to delve into the pricing dynamics of various grades of beef within your target market. This involves a comprehensive examination of not only the prevailing prices but also the factors that influence them. Identifying potential customers and understanding their preferences and price sensitivity is equally vital, as it enables you to tailor your pricing strategy to match their expectations. Additionally, recognizing the seasonality of cattle and beef prices is key, as these fluctuations can significantly impact your revenue and profit margins. A competitive analysis will help you understand the landscape of existing cattle farms, their strategies, and what sets your venture apart. Identifying your competitive advantages and crafting a unique selling proposition can be key to carving out your niche in the market.

As a crucial component of market research in the context of starting a beef cattle farming business, the selection of the appropriate cattle breed plays a pivotal role. This decision encompasses a comprehensive assessment of various factors, including the availability of breeds in your region, their feed conversion efficiency, the cost associated with acquiring them, and the specific demands of the market. Each breed possesses distinct characteristics that impact their suitability for your business, such as their growth rate, meat quality, and adaptability to local conditions. Additionally, you should delve into supply chain considerations, establishing efficient logistics and partnerships to transport and distribute your products effectively.

Land for Beef Cattle Farming

Land is an important factor when you are starting a cattle ranching business. When selecting land for your cattle farm, some important considerations include: availability of good grass and pasture for grazing, availability of good, quality water supply, land size in relation to size of your cattle herd and soil type as it affects forage production potential.  Other factors include availability of already made infrastructure like pens, sheds, buildings, as constructing new working facilities and buildings on a cattle farm is expensive.

A beef cattle farming venture requires huge tracts of land. This is because you will need spaces for grazing and other dedicated farm structures. You must consider the terrain; flat land that gently slopes is ideal. The soil characteristics are important as well – loam soil is the best. That soil type is best suited for consistent pasture and forage development. The availability of adequate pastures is yet another land consideration. You must ensure there are enough pastures. This connects to considering the quality of forage available. Ideally, you need pastures and forage mainly constituted of grasses and legumes. If the legumes composition is at least a third of the total, that would be great. Water availability is also a huge consideration. The best is to have a clean, fresh, and reliable water source. Preferably it should be within a 1 mile radius. This will be convenient for the cattle so that they do not have to go far to find water. It is advisable to check the quality of the water; especially if it is a natural water source. High salt and sulphur levels are detrimental to your cattle. Proximity of strategic road networks is of utmost importance for accessibility and mobility. Bear in mind that within the beef cattle farm, gravel roads are the best.

Housing for Beef Cattle Production Business

To be successful in the beef cattle ranching business, you need to provide proper shelter and housing for your cattle. Beef cattle can be negatively affected by mud, harsh winds, and extreme low temperatures. The design and type of beef cattle facilities should take into consideration the need to provide the required space, feed, shelter, water, waste management and livestock handling features. Beef cattle housing can broadly be in the form of cubicles, sheds, pens, corrals, barns, or open yards. However, it is important to ensure that there is enough shade for the cattle. That is why protection from the weather elements is a huge consideration in beef cattle housing. Protection from predators is also closely tied to that. Overall, the housing must be clean with good ventilation. Plus the beef cattle housing must generally be easy to clean. Ensure that there is dry surface, floor, or bedding. It is best to use dry straw on them; adding sand also helps in that regard.

The cattle housing must be big enough to allow free movement of the cattle. The housing must not be homogenous; there should be separate segments for different specific uses. For example, you need separate segments for calves, sick cattle, or newly arrived cattle. It is recommended that beef cattle housing must be set up on an elevated spot. This streamlines cleaning activities, drainage, and runoff. Take into account the prevailing wind direction in your chosen location – the beef cattle housing should be erected standing perpendicular to that. Other cattle handling structures include crowding pens, sorting corrals, working chutes & gates, squeeze gates and sick pens. However the necessity of the structures depends on the scale of the cattle farming business. The cattle ranch farm also requires good fencing. Pasture fencing for cow-calf operations business is a necessity, so as to contain the cattle and manage their grazing. This can be done by barbed wire, high tensile smooth wire or electric fencing. The costs of constructing the housing should be include in the beef cattle production business plan. 

Equipment For Beef Cattle Farming Business

Beef cattle farming equipment mainly comprises of feed and water equipment. For example, you need feeding bunks and, feeding bins (or troughs) or portable hay feeders. Water equipment can be in the form of or involve drinkers, tanks, canals, pumps, pipes, and the like. Other handy equipment is for handling the beef cattle. For instance, chutes are central to this. Chutes are narrow mechanisms or passages used to control and guide the beef cattle in certain spaces. There are several different types of chutes e.g. holding chutes, working chutes, and loading chutes. Headgates are also central to the use of chutes. Cattle guards or grids are important in controlling the movement of the beef cattle. Then there are general equipment such as protective clothing, wheelbarrows, buckets & pails, livestock trailer, manure spreader, tractors, and the like. Specialized equipment for operations such as dehorning and castrating are needed too. Your cattle farming business plan should take into account the cost of purchasing or renting the land, structures and buying the equipment. 

Breeding Stock for Beef Cattle Production Business

To start a beef cattle production business, you require the breeding stock. The breeding stock consists of male cattle which are known as bulls, and female cattle/cows. Alternatively, instead of using bulls, you can use artificial insemination for breeding the cattle. The selection of cattle breeding stock is basically two-tier. The first aspect involves choosing the cattle breed you want. Then the second aspect is choosing the individual cattle. You can choose to start with calves and rear them to maturity. You could also start with cows or heifers at various stages of development. Another approach can be to start with fully grown cattle. Always remember that choosing purebreds is the best way to go. Your overall choice should be informed by personal beef cattle farming goals. That should also go hand in hand with climatic considerations of your chosen location. Availability of cattle breeding stock is also another huge consideration.

There are a number of specific attributes to note when choosing your beef cattle breeding stock. You should consider the age; young livestock is usually the best to pick. Consider fertility or reproductive rate, and mothering or maternal ability. In beef cattle farming, feed efficiency and quality of meat are important factors. What is cattle’s performance and health status? What are their behavioural profiles? For instance, aggression in cattle is not a good trait. All of these specifics must be ascertained with the backing of comprehensive records. You must also be diligent enough to make physical inspections of the cattle. The idea is to note defects or desirable characteristics. The cattle breeds you choose will affect the beef production potential of your cattle farming business. Some breeds are better than others at producing cattle with good beef quality. Other characteristics which vary among breeds include calving ease, milking ability, feed conversion, diseases resistance, longevity and average birth weight. The most popular breeds used in the the beef cattle farming business include Angus, Brahman, Limousin, Hereford, Simmental, Shorthorn, Texas Longhorn, Nguni, Gelbvieh, Charolais, Africander,  Highlands among others. The beef cattle farming business plan should include the costs of purchasing the breeding stock.

Feed And Nutrition

Success in the beef cow-calf production business is also greatly affected by the feeding program. The feeding program of the beef production business should ensure that adequate nutrition is provided to both the cows and calves at all growth stages and during all seasons. This should be done while keeping an eye on the feed costs, as they greatly affect profitability of the beef cattle farming business. Failure to provide adequate feeding for the beef cattle results in low reproductive performance, poor growth of the calves and poor disease resistance. These factors all lead to reduced revenues for the beef cattle production business, thus lower profits. In beef cattle farming business, weight and grade of meat are the major goals which informs the feeding regiment. Feeding generally depends on the size of the cattle. The bigger the frame, the higher the grain content should be. Cattle f eeding programs of beef farming are usually based on pasture grazing, in combination with supplementary feed. The supplementary feed for cow-calf operations include hay, salts & minerals, concentrates, silage, commercial beef feed, fodder, corn and grains. The most important dynamic is feed conversion or efficiency. Do not make the mistake of thinking overfeeding is a good thing. It usually leads to the build-up of excess fat thus lowering the beef quality. That is why it is important to seek guidance from experts on feeding using the right rations. The feed costs should be included in the beef cattle production business plan. 

cow farm business plan

Health & Disease Management in Beef Cattle Farming

Ensuring the health and well-being of your beef cattle is of paramount importance in the successful operation of your farming business. A comprehensive approach to health and disease management is not only ethical but also integral to maintaining the quality and productivity of your cattle herd. To achieve this, preventative health measures are vital. This includes implementing a vaccination program tailored to your region’s prevalent diseases, providing access to clean water and nutritious feed, and maintaining a hygienic living environment. Regular monitoring and control of external parasites like ticks and flies are also crucial aspects of preventative care.

Disease monitoring and surveillance form another critical component. Regular health checks and veterinary consultations enable the early detection of potential health issues, while meticulous record-keeping helps track your cattle’s overall well-being. Staying informed about disease outbreaks in your area and having the ability to implement quarantine measures if needed is essential. Collaboration with a veterinarian ensures that sick cattle receive proper treatment and medication, administered according to recommended guidelines. Biosecurity measures should be in place to prevent disease introduction and spread, and continuous education and training ensure that both you and your farm staff are well-prepared to manage cattle health effectively. Prioritizing health and disease management not only benefits your cattle’s well-being but also contributes to the sustainability and profitability of your beef cattle farming business.

Beef Cattle Farming Business Model

The beef cattle farming business model involves a well-defined and cyclical process that begins with the acquisition of breeding bulls and cows. These animals form the foundation of your operation, as they play a crucial role in producing calves, which will eventually become your marketable cattle. The mating of bulls and cows leads to the birth of calves, and from that point onward, the focus shifts to feeding and raising these young cattle until they reach the desired market age, and you then sell them. This careful management ensures that the cattle are healthy, well-nourished, and ready for sale, optimizing their value in the market.

The central financial aspect of this business model lies in managing the costs associated with feeding the cattle, which constitutes the major expense. However, the revenue generated from selling the cattle at market age significantly surpasses these feeding costs and other operational expenses. This robust revenue-to-cost ratio results in a healthy profit margin for the business. The key to sustained success in this model is its repeatability throughout the year, which ensures a consistent and steady stream of income. By following this cycle of breeding, raising, and selling, you can create a reliable and profitable business model in the beef cattle farming industry.

Capital for Cattle Ranching Business

The amount of capital required for the beef cattle breeding business depends on the scale of the project. When starting a cow-calf operations business, most of the capital goes to acquiring the land, building infrastructure, and buying the breeding stock. You can get a loan from the bank, or funding from investors, to use as capital to start your beef cattle farming business. If you plan to raise capital from investors and a loan from the bank, you need a good cattle ranching business plan. If you don’t have access to investors and bank loan, you can use your personal savings and start small, and grow your business overtime. Beef cattle farming is profitable, so if you reinvest the profits you get, you can grow over time. Even if you are not planning to get a loan, you should still get a beef cattle farming project plan to guide you in starting and operating the business. It is essential for you to have a beef cattle farming business plan before you venture into the cattle ranching business, so that you know all the costs involved and you make an informed decision.

Market for Beef

The market for beef cattle is very huge and is ever increasing, annual beef global demand exceeds 75 million tonnes. You can sell live cattle or slaughter and sell as beef. The market for cattle/beef includes supplying to butcher shops, abattoirs, auctions, schools, companies, individual households, farmers, restaurants, organisations, supermarkets, events etc. It’s important for the beef cattle farming business plan to include a proper marketing plan to use in your beef farming business.

The export market for beef is also very huge! As you grow your cattle farming 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.

Keys To Profitability in Beef Cattle Farming

Profitability is the ultimate goal for those venturing into the world of beef cattle farming, and achieving it involves a multifaceted approach. Efficient resource management stands as a cornerstone, demanding a meticulous allocation of resources like land, water, and feed. Implementing rotational grazing systems can maintain pasture health and maximize forage production, thereby reducing the need for costly supplemental feed. Breeding and genetics play a pivotal role in profitability as well. Selecting cattle breeds that align with market preferences and local environmental conditions is crucial. Furthermore, a focus on breeding programs to enhance genetic traits such as growth rate, meat quality, and disease resistance can significantly impact the bottom line.

Health and disease management cannot be overlooked, as cattle health directly correlates with profitability. Prioritizing preventative measures and proactive disease management not only ensures the well-being of your herd but also reduces costs associated with medical interventions and promotes higher growth rates. Market timing and pricing strategies are equally vital, demanding a vigilant eye on market trends and pricing fluctuations. Utilizing market data to determine optimal pricing strategies ensures that you maximize your returns when selling cattle.

Cost control and budgeting, combined with strategic marketing and branding, enable efficient financial management. Keeping a detailed budget that tracks all expenses and revenue sources is imperative, allowing you to control costs effectively. Building a strong brand identity for your beef products and fostering relationships with local buyers, restaurants, and markets secures consistent sales channels. Finally, a commitment to continuous learning and improvement ensures your profitability endures. Staying updated on industry best practices, emerging technologies, and research in beef cattle farming equips you to adapt to industry changes, enhance productivity, and reduce waste, ultimately driving the success and profitability of your beef cattle farming business.

Why You Need a Cattle Farming Business Plan

Establishing and managing a thriving cattle farming business requires meticulous planning and strategic foresight. A well-structured cattle farming business plan is not merely a formality; it serves as an indispensable tool that can profoundly influence the trajectory of your venture. Financial planning and management is a vital aspect of a comprehensive business plan. It entails detailed financial projections, helping you estimate initial startup costs, ongoing expenses, and potential revenue streams. With insights into your cash flow, you can effectively manage your finances, make informed decisions regarding resource allocation (such as purchasing cattle, feed, and equipment), and maintain financial stability. Furthermore, if you require external financing or investment to initiate or expand your cattle farming business, a well-structured business plan is essential. Lenders and investors will scrutinize your plan to assess the viability and profitability of your venture, making a comprehensive and well-researched plan instrumental in instilling confidence in potential stakeholders.

A well-structured business plan for a beef cattle farming enterprise serves as a vital tool in comprehending the profitability of the business and identifying the key factors that influence it. It provides a detailed financial outlook, allowing you to assess the projected income, expenses, and potential returns on investment. By meticulously examining these financial projections, you gain a deep understanding of the financial health of your cattle farming venture. Additionally, the business plan facilitates an exploration of the factors that impact profitability, including feed costs, market pricing, and operational efficiency. With this insight, you can make informed decisions to optimize profitability, mitigate risks, and ensure the long-term success of your beef cattle farming business.

Pre-Written Beef Cattle 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 beef cattle farming business, we encourage you to purchase our well-researched and comprehensive cattle farming business plan. We introduced the business plans after discovering that many were venturing into the beef cattle production business without enough knowledge and understanding of how to run the cattle ranching business, how to keep the calves, 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 cow-calf operations business plan will make it easier for you to launch and run your 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 you will be aware of all the costs involved in setting up and running the cattle ranching business.

Uses of the Beef Cattle Ranching Business Plan (PDF, Word And Excel)

The beef cattle farming 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 farming business
  • As a beef cattle farming business proposal
  • Assessing profitability of the beef cattle production 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 Beef Cattle Production Business Plan (PDF, Word And Excel)

The beef cattle farming 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
  • Industry Analysis
  • Market Analysis
  • SWOT & PEST Analysis
  • Operational Requirements (Including technical aspects of how to keep the cattle, feed requirements etc)
  • Operational Strategy
  • Why some people in beef cattle farming business fail, so that you can avoid their mistakes
  • Ways to raise capital to start your cattle farm business

The Pre-written beef cattle farm business plan package consists of 4 files

  • Beef Cattle Farming Business Plan – PDF file (Comprehensive Version – 121 Pages)
  • Cattle Farming Business Plan – Editable Word File (Comprehensive Version – 121 Pages)
  • Beef Cattle Farming Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 51 pages)
  • Beef Cattle Farming 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 cattle etc, and all the other financial statements will automatically adjust to reflect the change.

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

beef cattle farming business plan

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Many thanks for your incredibly efficient service and thorough business plan. I am very impressed with the business plan. Before I bought the business plan, I tried to do my own business plan – it was such a nightmare and it turned out badly, also not to mention the stress it caused me. I wish I knew about your website earlier!

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The business plan which I purchased from your website saved me TIME and MONEY! The layout of the business plan was excellent. The financial statements were detailed and easy for me to edit. I will come back to purchase another business plan soon.

Testimonial 1

StartupBiz Global provided a very professional and comprehensive business plan which I used for my business. The business plan was easy to edit, and I was able to get the funding which I wanted. I highly recommend their business plans.

Testimonial 3

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Get the Beef Cattle Farming 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!

cow-calf production business plan

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.

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

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Farm & Animals

How To Write A Farm Business Plan?

August 27, 2024

If you’ve never written a business plan before, it can seem quite daunting and could leave you feeling more than a little overwhelmed. In this article, we will look at how to break it down step by step into simple, manageable chunks. Then you’ll soon see how to write a farm business plan without stress.

What You'll Learn Today

What is a Business Plan?

Why do i need a business plan, how do i write a small farm business plan, 1. executive summary, 2. business description, 3. market analysis, 4. competitors, 5. products and services breakdown, 6. marketing & sales, 7. organizational structure, 9. financial goals and expectations, why is it important to have a farm business plan, what are the benefits of having a farm business plan, can you start a farm without a business plan, what should you include in a farm business plan, how do you start a farm business.

what is a business plan

A business plan is a document that provides a road map to clearly define your proposed farming business in detail. It helps you to decide how you will do specific things such as locate, fund, sustain and grow your venture.

You will also be able to state your ambitions, and how you envisage achieving them, and when. You’ll need to look at viability, the size of the market, any competitors you’ll have, and the predicted future growth of the industry you’re interested in.

The choices are vast. It could be raising chickens, growing specialized crops, or micro-farming.

A good business plan should be:

  • Easy to follow
  • Comprehensive

why do i need a business plan

A well-written business plan not only increases your chances of getting additional funding, such as loans or grants but also gives you a way to ensure all your goals are being met as you go along.

Having a detailed document to follow as a guide helps you stay on course and provides a greater chance of success.

By charting an ideal course of action, you may discover things you hadn’t initially thought of. These might be additional ways of making your enterprise profitable or finding potential pitfalls before you’ve invested a single dime.

If, for example, your farm is reliant on producing a specific crop that depends on a long growing season, you need to figure out what happens if it fails. Certain things, such as the weather, are completely out of our control.

It could be that you can’t rely on just growing one thing and need to grow additional crops that don’t depend on the same conditions or diversify in some other way.

Many small farmers increase their revenue by adding other strings to their bow and diversifying .

Another consideration is, just because the market you’re interested in is strong right now, it doesn’t mean it will continue to be so. A business plan lets you decide what you would do if there was a dramatic drop in demand/income.

As well as planning for the worst, you’ll also be able to decide what you’d do if things go better than expected.

Should your chosen farming idea flourish and you can’t keep up with demand, what happens then? A plan would help you know how best to expand under these circumstances.

Without a solid plan for your farm, you won’t be able to secure any help in the form of grants or loans, and you never know when a cash injection might be needed down the line.

To write a successful business plan, you’ll first need to do a lot of research. This involves investigating how all aspects of your project will work by looking at how it is achieved by others.

If you want to apply for grants or loans, find out precisely what information they will need before you start. That way, you won’t need to do a load of extra work later on.

Talk to professionals; this could be farming associations, other farmers in your area of interest, banks, government offices, potential customers, machine manufacturers, breed societies, anyone who can give you concrete facts about what you want to do.

In this short video, the basics of how to write a farm business plan are explained.

When you start writing your plan, be sure you have all your ducks in a row and know very clearly in your mind how you envisage things working. Break it down into its component steps to make it easier to write.

What Are The Steps In Planning Farm Business

You’ve done all your research, and you’re ready to start writing, but what do you need to include and in what order?

In truth, there are a multitude of ways to write a farm business plan, and none is more correct or better than another. The key is to ensure you have as much detailed information as possible to follow in the future or use to gain funding.

An executive summary is usually written last but appears first in your finished document.

It summarizes the expectations you have about what you are aiming to accomplish.

It should be a compelling read that reveals your mission statement and gives a brief description of the farming you will be doing and what products you will be producing.

You can also include why you want to start your farm, what your inspiration is and what background experience or training you have.

Here you give a detailed description of your farming goals, who you will be serving, and why you stand out from your competitors. Include any notable strengths, differences, unique solutions, competitive advantages – anything that will give you an edge.

In this section, you need to show how the specific type of farming you will be doing works. Substantiate the strengths you talked about in the farm description by detailing statistics, market trends , and any other proof that your idea is viable.

Discuss how similar businesses are doing and how they succeed. Identify your market, who will buy what you’re selling, and why they want to get it from you.

Figures count, so be sure to include as much detail about what profits can be reasonably expected as possible.

All businesses have competitors, and farming is no different. If there are already much larger farmers offering the same things in your area, it will be hard to compete. It’s better to look for a niche market that is needed but not catered for.

In your business plan, you should state who your competitors are and list their strengths and weaknesses. You must demonstrate exactly how you are going to be successful when competing against them.

In the business description, you gave an overview of what products and services you would be offering. Now it’s time to expand on that and provide more details about what you’ll be selling. Don’t forget to include how much, who to and why what you have to offer is needed.

You also want to show which suppliers you’ll be using (feed, seed, equipment, etc.), what you will be buying, and the costs involved.

What you’re selling was outlined in 5 above, but here you need to explain how you’ll find customers for your produce. Will you, for example, have a stall at various farmers’ markets? Or perhaps sell a specialty plant for making a valuable essential oil to a specific manufacturer?

List all the methods you’re intending to use to promote and sell the produce and ensure you create a realistic budget to go with it.

Will you be doing your own marketing and sales, or will you get someone to do it for you? Do you need to build and manage a website, social media accounts, or direct marketing materials?

It’s one thing to produce a product to sell, but it’s another thing to actually get anyone to buy it. For this, good marketing is key.

In this element, you describe how your farm will be run. Will it be just you doing everything, or will you have family or employees to help?

If you do take people on, will they be part-time or full-time? Employed or casual? Seasonal or long-term?

What skills will the people you take on have? What will their responsibilities be? What will the chain of command look like? All of these things will need to be talked about in detail.

Will your farm be run as a sole trader proprietorship, a partnership, or something else? How will this work and why are you choosing that particular setup.

It’s very usual for some level of additional funding to be needed. Agricultural machinery, land, buildings, animals, seed, and so on can all be costly.

In this part of your business plan, you need to focus on how much it will take to set up your farm and where your starting capital is coming from. Will you invest your own money or require it from an outside source?

It’s a good idea to include some kind of timeline that shows when additional funding may become necessary to grow the business, or buy new equipment, and so on.

In the final section, refer back to your market research and calculate what your financial goals and expectations should be.

Create a projection of what you anticipate your revenue will look like in the first 12 months of trading. Then do the same for the following five years.

It’s very tempting to be over-ambitious and write down overinflated (optimistic) figures, instead of more realistic ones – be honest, flights of fancy are not helpful.

If you know you’re going to need a loan of some kind, then sound, sensible, well demonstrated financial information is going to be required. You also need to document what will happen if things don’t go according to plan. What contingency do you have set aside in case of an emergency?

Frequently Asked Questions

how to write a farm business plan Frequently Asked Questions

Creating a business plan for your farm is important for several reasons. Regardless of the type of business you plan to run, having a plan in place before you start can lead to greater success down the road. The same is true in farming.

Having a business plan written down may be required if you plan to apply for certain types of funding, such as farm grants and loans. Additionally, a business plan can help you identify your goals for the farm and determine the steps you should take to reach them.  

There are many benefits to establishing a business plan. One of the greatest benefits is that it helps you get and stay organized by giving you a clear picture of what you hope to accomplish with your farm and how you plan to accomplish it.

What’s more, a business plan gives you a wider variety of options when it comes to funding your project, as it can help you secure grants and loans for your farm. Finally, a business plan gives you clear goals to work toward and steps to follow, increasing your confidence as you start your farm.

Yes, it is possible to start a farm without a business plan. In many cases, creating a business plan is an optional part of the process, particularly if you plan to fund it yourself.

That said, you may have to create a business plan if you are going to seek outside funding like grants and loans. These programs typically require that you submit a business plan so that the organizations providing the funding can get an idea of your business model and what your farm has to offer.

A business plan can be as simple or as detailed as you want it to be. If you plan to use your plan to seek out grants or loans, it should include several key components as discussed in this article; these components include a business description, products and services offered, and the organizational structure.

You may also want to include a timeline in your business plan outlining goals for what you hope to accomplish in a set amount of time. For example, one goal could be to buy or lease additional land within the first six months of your business; within the first year, you may plan to purchase livestock or start developing marketing strategies.

Starting a farming business involves more than just creating a business plan. You’ll also want to ensure you understand all laws and regulations related to your farming operation and purchase any licenses or permits you need.

You may need to look for funding sources if you are unable to pay for the farm yourself. Once your funding is secure, purchase anything you need to get started and hire help if needed. When you are ready to start selling your farm goods, get in touch with customers by marketing techniques like social media, paid advertising, and word-of-mouth.

Although writing a business plan for your farm is a big project, don’t be put off. It will prove to be a really valuable document in the long run.

Keep everything simple, and don’t be in too much of a rush to get it done. Use lists, graphs, charts, photos, or anything else that helps make your vision clear. Do your research thoroughly.

It’s easy to get carried away with the idea of something and to jump in without finding out if it’s really viable. Doing a business plan will help you see not only any potential pitfalls but hopefully also some new opportunities too.

Every business is different, and your business plan will be utterly unique to you.

We hope you’ve enjoyed reading about how to write a farm business plan and wish you every success in your venture.  

To read more of our “starting a farm” articles, why not take a closer look at our site .

1 thought on “How To Write A Farm Business Plan?”

It’s good to have a plan, but I think not so many people really make a detailed plan with everything mentioned above.

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Sara Bowles

Sara runs a 5-acre homestead with her own chickens, horses and a veggie patch. She studied business, equitation, and agriculture which has led to an interesting career - from working on murders with the police force, to running her own farm.

6043 S Drexel Ave Chicago, IL 60637

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Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Feed and Farm Supply Business Plan

Start your own feed and farm supply business plan

Latheethen Feeds

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

The following plan is based on 16 years of experience, is highly focused and promises to follow a path of prosperity for its owners and staff. It is based on conservative sales figures, and actual sales may be higher. The projections contained herein are authentic and will be used as the budget for the business. Latheethen Feeds, Inc. will show a profit immediately, and will increase sales and profits each year thereafter.

Latheethen Feeds, Inc. is a well-established custom feed store. The company is engaged in the production of custom livestock feeds, bird feed, deer feed, and other animal products in relation to livestock animals, pets, etc. Latheethen Feeds, Inc. has recently expanded its production facility (custom mill) and is well-positioned to market its workroom production beyond its present client base. The company is dedicated to providing the highest quality customer service, meeting the agreed delivery dates, and keeping the sales prices controlled in accordance with ongoing market trends. The focus of this business plan is to identify future target clients, explain our marketing strategy, improve internal procedures so we can substantially increase profitability, and obtain the funding required to expand the business.

Latheethen Feeds, Inc. is located in Pleasantville, Michigan. The company is a privately owned corporation and has been operating for nearly 16 years. The previous owners live next door to the store, and are planning on moving to their retirement home in Northern Michigan, as soon as this business transaction is completed. However, since the current owners and new owners are in fact family, the current owners will be around if needed and to visit on a bi-weekly basis.

The six counties surrounding Latheethen Feeds contain an estimated 14,695 livestock farms, and 20,434 hunters. However, the entire state is an open market once delivery to customers is an option. Latheethen’s would then be in the market to compete for the business of 53,315 farms. USDA records show that a quarter of a billion dollars is spent annually on feed in the State of Michigan by these same farms. The company’s estimated existing share of the nearby market is less than 1%. Previously, the owners have established an estimated $140,000 of the state total on an annual basis. They have accomplished this without any form of advertisement, and without any outside sales. The new owners are focused on growing the business to gain a greater share, $260,000 annually, of the state total.  

The marketing research and tailored marketing strategy described in this business plan will result in after-tax profits of $22,806 in Year 1 and increasing to nearly $30,000 in after-tax profits within three years, despite significant new advertising and renovation expenses.

To achieve these goals, Latheethen fields needs funding for two different phases of expansion. We are currently seeking a $15,000 short-term loan, to be repaid within two years. This loan will enable us to purchase a delivery truck, a key element of our new sales and marketing strategy. In early Year 2, we will need a second, long-term loan in the amount of $135,000, to build the area’s premier equine boarding stable. The addition of “Mid-Town Meadows” will not only be another source of revenue, but also another source of feed sales. Mid-Town Meadows will be a comfortable, inviting equine resort designed to make our customers and their horses feel as if they are enjoying VIP services in a world all to themselves. The decor and theme will be rustic (log exterior walls), yet formal (private club house overlooking the enclosed arena). The feed store is already located at the main entrance, next to a cascading water fountain and company signs. 

Feed and farm supply business plan, executive summary chart image

1.1 Objectives

There are five primary objectives by which the success of Latheethen Feeds will be tracked:

  • Maintain 100% of existing customer base by consistent customer service.
  • Expand our customer base through direct referrals and agressive direct sales. 
  • Expand our product line gradually, based on customer requests.
  • Expand our custom feed mill to meet the growing sales market.
  • Expand the types of services offered to our customers, as their desires are identified.

1.2 Mission

Latheethen Feeds is a family owned and operated company, dedicated to providing our customers with the best premium products and services on the market. Latheethen’s offers all of our customers the direct personal attention they deserve. Our committment to customer service and satisfaction assures us that our customers are 100% satisfied with our products and services.

1.3 Keys to Success

The primary keys to the success of Latheethen Feeds are as follows:

  • Product freshness and quality.
  • Variety and price.
  • Constant research of industry to keep knowledgeable of market needs.
  • Management: products delivered on time, professional customer service, managing budgets.
  • Constant evaluation of strengths and weaknesses with adjustments made as warranted.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Latheethen Feeds is a mid-Michigan based farm and feed store dedicated to providing our customers with professional services and high quality feed products. Latheethen’s offers only the best feed and products in the industry. Latheethen’s also offers our customers the option of a custom made feed. Our mill enables us to provide high levels of quality products that are always fresh and available. Latheethen’s primary focus is on keeping our customers satisfied. Professional and reliable service, competitive pricing, and a knowledgeable staff will provide for continued growth in the years to come.

Latheethen’s was founded in 1989 by Chris and Steve Latheethen. Their hard work and dedication has proven to be successful, as Latheethen’s is now one of the area’s premier feed stores and the only one specializing in custom-made feed.

The future of Latheethen’s is looking bright with younger family members taking over ownership. Our focus is on the core products, our sales and promotions emphasize our history and reputation for quality and customer service. With the addition of new energy and enthusiasm from younger owners, we will increase sales and the bottom line. Even though the new owners have the time, energy, interest and knowledge to invest in an already successful family business, our greatest asset will be our committment and pride in protecting and growing the business.

In the past, Latheethen’s has been just a feed store…in the future Latheethen’s will grow to become not only a larger provider of quality feeds, but also a boarding stable and resource for customer with inquiries about all areas of pet care.

2.1 Company Ownership

Pro Tip:

The new owners will share 50/50 ownership and they are as follows: 

  • Kay Latheethen

2.2 Company History

Latheethen Feeds was founded in 1989 as a privately held corporation registered in Midland County, owned and operated by Chris and Steve Latheethen. It was originally a retail company that sold feed and supplies to local customers.

Chris and Steve recognized the need for more variety in products and more competitive pricing. Eventually this idea generated the need for a feed mill, which has greatly increased the success of the business. Producing custom feeds reduces the costs to almost 80% less than it costs to purchase a name brand feed. The custom-made feed has been Latheethen’s best seller because of quality and price.

The past performance table and chart show the increase in sales over the past three years. By adding a point of sale inventory and accounting system, we will be able to better track our best sellers and highest margin items, to increase net revenue. while our cost projections are accurate, the current owners have not tracked sales categories in as much detail as we will.

The previous year shows a large increase in the value of assets. This represents both the value of the acreage on which the business stands (contributed to the business by the current owners), and the recent purchase of the point of sale system which will be used to better track orders.

Feed and farm supply business plan, company summary chart image

Past Performance
FY 2002 FY 2003 FY 2004
Sales $141,550 $143,200 $144,522
Gross Margin $37,314 $39,930 $28,695
Gross Margin % 26.36% 27.88% 19.86%
Operating Expenses $34,497 $33,896 $28,940
Inventory Turnover 0.00 0.00 23.66
Balance Sheet
FY 2002 FY 2003 FY 2004
Current Assets
Cash $1,179 $1,378 $527
Inventory $2,198 $2,198 $8,904
Other Current Assets $0 $0 $75,463
Total Current Assets $3,377 $3,576 $84,894
Long-term Assets
Long-term Assets $39,625 $39,625 $170,000
Accumulated Depreciation $38,603 $38,603 $39,089
Total Long-term Assets $1,022 $1,022 $130,911
Total Assets $4,399 $4,598 $215,805
Current Liabilities
Accounts Payable $0 $0 $0
Current Borrowing $0 $0 $0
Other Current Liabilities (interest free) $0 $0 $0
Total Current Liabilities $0 $0 $0
Long-term Liabilities $0 $0 $0
Total Liabilities $0 $0 $0
Paid-in Capital $1,000 $1,000 $1,000
Retained Earnings $584 ($2,436) $205,465
Earnings $2,815 $6,034 $9,340
Total Capital $4,399 $4,598 $215,805
Total Capital and Liabilities $4,399 $4,598 $215,805
Other Inputs
Payment Days 0 0 0

Latheethen Feeds, Inc. currently offers our customers products and supplies (Feed, Wormer, Treats, Beading, etc.) for the following animals:

  • Birds (Caged and Wild)
  • Cats and Dogs (Household Pets)
  • Deer and Elk
  • Fish (Pond)
  • Custom Made Feeds
  • Delivery (Selective)

Latheethen Feeds will continue to offer all of the above great products, while evaluating the desire and need by our customers for the following items.

  • A Complete Line of Feeds for All Animals
  • Books (Related to Animals)
  • Deer Blinds
  • Exotic Animal Feed
  • Home and Garden Accessories
  • Landscape Supplies
  • Live Animals
  • Organic Gardening
  • Plants, Flowers and Trees
  • Ponds and Water Gardens
  • Tools and Gloves

Latheethen Feeds, Inc. will continue to offer the existing services, but we will also be expanding our services to include the following as customers demonstrate an interest in supporting the addition of such services.

  • Delivery (Full Time)
  • Equine Massage
  • Equine Boarding and Stable 

Market Analysis Summary how to do a market analysis for your business plan.">

Latheethen Feeds is the only custom feed manufacturer in the Midland, Michigan area and surrounding 50 mile radius. In the past, our market has been individual end users. Recent market analysis suggests that our custom feeds could be marketed to other direct feed stores outside of this 50 mile radius.

In reviewing our existing customer base, and recognize the broad range of local organizations such as 4-H and Future Farmers of America (FFA) and area farms and ranches, we have seen the possibilities for potential market growth. Latheethen’s has never had a direct sales force, advertised, or approached the specialized market they dominate with any zest for growth.

More than sixteen years in this business with success in the creation of formulas of high quality, cost-contained custom feed, mixed with the energy of youth and enthusiasm to grow this family business is greatly reinforced by the simple market analysis outlined below.

4.1 Market Segmentation

Latheethen Feeds, Inc. will focus on the following markets:

  • 4-H Enrollments: Simply put, this segment of our market is our future. We are working with 4-H to further interest in animals, their nutritional needs, and means of cost containment. Through offering quality custom feeds we will provide success for today and many tomorrows as these youth become adult consumers (while annually, new youth will be targeted). This market will allow for sales of all our feed products as 4-H offers exposure to a variety of animals.
  • Cattle Farms: The number of cattle farms within a 100 mile radius of Latheethen Feeds is quite phenomenal. There are many different purposes for these farms as well. Some raise cattle for auction and slaughter while some raise cattle for milk processing. All together, this is a market that is small, but would be very lucrative just by having a few of these commercial accounts purchase their feed from us on a weekly basis. The cattle market is very tough, but with our low prices and quality service, we should be able to obtain at least 10% of the overall market.
  • Horse owners: We will provide custom feed while building customer relationships for long term growth and expansion into our goals of massage, boarding and other related services. Horse owners range from individual owners to ranches and even direct marketing to area race tracks will be undertaken.
  • Hunters: These customers, of all ages and genders, have contributed a great deal of the Latheethen’s cash flow over the years. Expanding on simple hunter spontaneous purchases (jerky, nuts, dried fruit) will increase net revenue without an increase in labor, space or marketing costs.  During the hunting season, “regulars” stop for beets, carrots, corn and apples on their way to their blind. Adding these impulse-purchase items will add to our bottom line.
  • Livestock Farmers: This market is virtually up for grabs. Tax-exempt farmers look for the best in quality and price, both of which Latheethen’s offers to our customers. Farmers also look for availability of large quantities. Again, at Latheethen’s, we can handle any size order from less than a pound through orders containing thousands of pounds. Latheethen’s custom feed mill will again prove to be a big asset when dealing with the farmers.

Feed and farm supply business plan, market analysis summary chart image

Market Analysis
2004 2005 2006 2007 2008
Potential Customers Growth CAGR
4-H Enrollments 5% 9,846 10,338 10,855 11,398 11,968 5.00%
Cattle Farms 2% 1,450 1,479 1,508 1,538 1,570 2.00%
Horse Owners 5% 2,750 2,887 3,032 3,183 3,343 5.00%
Hunters 8% 20,434 22,068 23,834 25,740 27,800 8.00%
Other Livestock Farms 3% 649 668 23,833 25,741 731 3.00%
Total 6.63% 35,129 37,440 63,062 67,600 45,411 6.63%

4.2 Target Market Segment Strategy

Strategically targeting all the 4-H enrollments close to our business helps serve the needs and requirements of our local customers, and ties in logically with our marketing plan (see below) and our style of feed store. The youth of the 4-H are our future. These customers have regimented schedules, and find value in exceptional service, low prices and high quality feed. This first tier of our market segment is also the primary focus of our marketing plan, which has a deep commitment to focusing on the support of the 4-H kids and their community. 

Our THIRD-TIER group, Horse Owners, will find that Latheethen’s special blend of oats and grains, all mixed in with our high quality minerals, results in premium feed at an affordable cost. All of these things are essential factors in a customer’s feed-buying decision. Our specialty horse feeds are made for both the average horse and for the equine racer, both of which are numerous in our area. We need to market the right avenues to gain industry share in this rapidly expanding market.

Our FOURTH-TIER, Hunters, is simply the largest in number of individual purchasers. Hunters are mostly seasonal customers, from the months of September through December we will see our numbers skyrocket when compared to the other eight months of the year. For projection purposes, we figured on having a low 30% of the total available market (69,232). This total potential market includes hunters from six of our surrounding counties (within a 50 mile radius). The actual number of hunters that stop by on their way to their cabins or blinds is substantially higher than forecasted.

Our FIFTH-TIER, Other Livestock Farms, represents a market that has an abundant number of feed users. Our custom feed mill allows us to manufacture any type of animal feed we desire, which help us acquire the available customers in this tier. From sheep and goat feed to rabbit and turkey feed, we make it all. Again, when we make our high quality feed, we make it with the highest quality products and sell it at wholesale prices. This market is basically up for grabs, as there are currently no competitors within a 125 mile radius that can supply these customers with such a high quality feed at the lowest costs possible.

We acquired our data for our market analysis from the Department of Natural Resources, the 4-H Council, and from USDA National Agricultural Statistics Service.

All of our projections are based on actual, real-life numbers (number of people/farms/etc.). We forecasted conservatively to show the actual amount of business we can easily obtain through a few advertisements and direct marketing.

4.3 Service Business Analysis

Currently, Latheethen Feeds, Inc. is involved in the manufacture and retail sale of custom feed and related products. Latheethen Feeds straddles two industries – manufacturers of feed, and retailers of feed and farm supplies. Latheethen’s 16 years of success in the custom feed industry is the strong foundation for the success and continued growth.

There are over 7,000 farm product raw materials businesses in the United States, according to the 2002 U.S. Census Economic report. According to the same source, farm supplies and raw materials wholesalers currently sell over $62,000,000 of goods per year. Of these, only 843 of these were selling poultry and livestock feeds mixed on location. With total sales of $8,141,368, businesses like ours sold an average of $9,658 in goods each, per year. This reflects the fact that most of the custom-feed mixers in the United States are very small operations; many of them are farmers who mix their own feed for their own livestock, and sell the extra to neighbors. Latheethen Feeds started out this way, but expanded its product line with snacks for people, and wild and exotic animal feed. By becoming a full-service custom-feed store, and developing a reputation for great service and high quality feed, we have far surpassed the industry average for revenue.

Our products are purchased from wholesale suppliers and re-sold to retail consumers. Our custom feed is a huge competitor with other retail products. The raw goods and time to manufacture cost at least 80% less than similar feeds. With more focus on the overall quality of our feeds, the cost savings to our customers will become more of a word of mouth advertising from end user to end user. Direct referrals are always the best source of committed customer and sustained reliable growth.

There really is no competitor within a 50 mile radius of Latheethen Feeds for custom feed for the wide variety of animals we provide for. Our tasks are to encourage our customers to make referrals, to implement direct marketing to groups such as the 4H and FFA, and to go out to the various ranches and livestock farms and introduce our company and our line of custom feeds.

At this point, we are a great-kept secret, when comparing our customer base to the existing market research potential.

4.3.1 Competition and Buying Patterns

Within the feed and farm supply industry, businesses compete on price, quality, customer service, and delivery. Customer service can include things like ability to produce a range of quantities, and custom-feed options. Customers must also trust the supplier for regular, reliable service and consistent quality, since sudden changes in feed can really disrupt their animals’ digestion and health.

Our existing customers have pretty routine buying patterns. The same customers come at the same time of the week or every other week. Their deliveries are scheduled for the same time, with the same volumes each time. When asking our customers why they use our products, they always have the same answer: “your custom feed is so good for my animal and it is priced just right.”

Most of our customers have been doing business with us for several years. Solid customer relationships, a friendly atmosphere and being available to provide quality products at a good price all add to a successful bottom line.

We strongly believe that by offering delivery services, we will gain a substantial number of new customers, both through the advantages of the new service, and with the new advertising (signs on our truck). We will gain the recognition of new customers through our focused marketing plan.

4.4 Sales Strategy

Latheethen Feeds, Inc. will be entering into direct sales for the first time. Starting in October and November, we will approach members of our target markets within 10 square miles both via phone and with direct visits. Where possible, we will ask existing customers to provide us with an introduction or to mention us to their neighbors and friends before we approach them. This will both lend credibility and pre-qualify potential customers as genuinely in need of our services, based on others’ knowledge of them.

We will tell them about our current products and services, and then ask them clearly what we need to do to earn their business. We will listen to their desires and individual goals. We will then mirror back to them what they have said, to be sure we understand their needs. Finally, we will create an individualized sales proposal with their specific needs (products, volumes, frequency, price, other services) included.

We will present the proposal as a written agreement ready for signature by both parties to begin doing business.

Follow up calls will go to each customer within 24 hours of each delivery to ensure satisfaction. If for any reason there is an issue, it will be handled immediately by one of the owners directly with the customer.

Latheethen’s has previously been successful do to repeat customers. As the business switches hands we will also focus on keeping the existing customers happy and successfully introducing our new products and services. We will always focus on our repeat customers. The loyalty and respect we get from those customers will all play a big role in growing the business and taking it to the next level.

4.4.1 Sales Forecast

The sales forecast for Latheethen Feeds, Inc. includes all varieties of feed, as well as non-feed supplies and future forecasts for boarding stable revenue.

Adding the boarding stable will utilize vacant land and make it work for the company. The addition of the boarding stable will add to our company’s feed sales, and to the specialized services we offer. Boarding Stable costs include laundering of horse blankets, feed used by horses during their stay, and wear and tear on grooming instruments. 

The annual growth rates fluctuate and are defined as:

  • 2005 – 3.37%
  • 2006 – 8.83%
  • 2007 – 34.63%
  • 2008 – 16.68%
  • 2009 – 14.81%  

The reasoning behind the initial dramatic increase in sales is due to accurate reporting and tracking, and growth of sales (generated through direct sales and advertising). For 2007, 2008 and 2009 we are forecasting significantly increases in our sales as we open the boarding stable. We anticipate that it will take three years to book out all of our stalls.

In 2009, we are forecasting a modest increase of 12.84%, based on the growth of feed sales and stable services alone. We are also planning on bringing back the rodeos and livestock shows that the previous owners have held in past years. This year could prove to be the year to bring back some of the good old days to the new Latheethen Feeds location.

Feed and farm supply business plan, market analysis summary chart image

Sales Forecast
FY 2005 FY 2006 FY 2007 FY 2008 FY 2009
Sales
Equine Feed $38,040 $39,942 $41,939 $44,036 $46,238
Deer Feed $12,000 $12,960 $13,997 $15,117 $16,326
Livestock Feed $93,346 $102,680 $112,948 $124,243 $136,668
Misc. Products & Supplies $6,000 $7,000 $8,000 $9,000 $10,000
Boarding Stable $0 $0 $42,000 $63,000 $84,000
Total Sales $149,386 $162,582 $218,884 $255,396 $293,232
Direct Cost of Sales FY 2005 FY 2006 FY 2007 FY 2008 FY 2009
Corn, Oats, Molasses, Other Ingredients $40,400 $42,258 $44,202 $46,236 $48,362
Misc. Products & Supplies $3,000 $3,500 $4,000 $4,500 $5,000
Boarding Stable $0 $0 $8,400 $12,600 $16,800
Bags, Ties, Pallets, Labels $1,440 $1,506 $1,575 $1,648 $1,724
Subtotal Direct Cost of Sales $44,840 $47,264 $58,177 $64,984 $71,886

Strategy and Implementation Summary

Emphasize customer service We will differentiate ourselves with CUSTOMER SERVICE! We will establish our business as a clear and viable alternative for our target market, from the scores of competitors known for “do-it yourself,” “no we don’t offer that product,” and “no delivery available.”

Customer service is paramount in our business and our business plan. The management team will accomplish this goal by training employees and by providing encouragement.

The new management team of Latheethen Feeds, Inc. believes that an employee who is happy at work will enjoy working. It is always easier to please customers with staff that cares, a facility that is clean and equipment that is kept in proper working order.

Latheethen Feeds, Inc. will also work toward establishing community involvement programs that will demonstrate how the business can contribute to a better quality of community life. Community project groups such as the 4-H Council, the FFA, Schools, churches, and other groups will be welcomed for tours of the facilities and will be shown how the facility can be used to help raise funds for their needs.

Build a relationship-oriented business Build long-term relationships with customers, not single-visit deals. Become their “feed dealer of choice.” Teach them the value of the relationship.

Focus on target markets We need to focus our offerings on specific population groups as the key market segment we should own. We definitely want to be able to sell to smart, quality conscious customers.

5.1 Competitive Edge

Latheethen Feeds, Inc. has one of the most sought-after competitive edges in the industry. We have our own individual feed mill that can produce any animal feed requested. All we need is a few ingredients and some time to make our specialty custom feeds.

Our custom mill was built and wired with a 3-phase electrical system (industrial strength) and the best equipment on the market today. Other feed stores dream of having access to their own mill; this is where you make most of your money. Instead of having to be the middle man and purchase a large inventory of generic feeds, we custom-blend and produce our own feed to keep the costs down. When we can produce and market feed that costs us nearly 80% less than it costs to purchase a generic feed, we can keep our shelf prices lower than our competitors.

Let’s face it, lower prices +  higher quality feed = money in the bank.

From the very first day Latheethen’s was open for business in 1989, the owners never advertised. They let the word get around (word-of-mouth advertising). This has obviously worked in their favor, as they are operating a profitable business, as is reflected in net profit increases annually.

In the future we, the new owners of Latheethen’s, will market our products to new customers in various strategic ways. This will aid in bringing in more customers…and will also aid in spreading the word that we are expanding our business. Most of the existing customers come from within a 30 mile radius of the store. Through delivery, we can offer our products and services to anyone willing to pay for it.

Our next competitive edge is that we will be running our delivery truck on a daily basis (once we implement delivery and obtain the necessary business). Most of our other competitors do not deliver or only deliver within a short distance from their location. Again, we will serve our customers with a higher quality feed, high level of professional service, and be willing to take it to their door.

Our strongest competitive edge is that we are family owned and operated and that our knowledge of the feed industry runs deep. With the resources available, the energy we can contribute at our young age, the raw talent for business and deep understanding of customer service, the potential to grow this already exciting business is tremendous.

5.2 Marketing Strategy

Latheethen Feeds, Inc. will implement the following Marketing Strategies upon the business transfer in the following order:

  • Direct Marketing: we will personally market (sell face to face) our products to various feed stores, stables, boarding facilities, farms, clubs and race tracks.
  • Customer Referral: we will provide customer incentives for direct referrals, in the form of price discounts.
  • Website Marketing: we will implement our web plan and review the outcome to determine the efficiency it has on our customer base.
  • Event Marketing: we will visit area  livestock events (within 150 miles) to hand out flyers, business cards, and product catalogs, and to meet potential customers face to face.

Through marketing our products in these ways, we project that Latheethen’s will almost double its business within the first 2 years of new ownership.

5.3 Milestones

The following detailed milestone table shown identifies the primary tracking points for our initial company takeover, for our growth and our development process. We have included budgets for each subject and the name of which company came in with the lowest bid price.

Feed and farm supply business plan, strategy and implementation summary chart image

Milestones
Milestone Start Date End Date Budget Manager Department
Business Title Transfer 10/4/2004 10/31/2004 $0 Chris Department
Implement POS System 11/1/2004 11/30/2004 $6,000 Dennis Department
Print Product Catalogs 11/1/2004 11/30/2004 $250 Dennis Department
Buy Delivery Truck 11/1/2004 12/1/2004 $15,000 Dennis Department
Begin Delivery Service 12/1/2004 12/5/2004 $0 Dennis Department
Advertise in Newspapers 11/1/2004 12/31/2004 $1,000 Dennis Department
Affiliate with related website 11/1/2004 12/31/2004 $400 Dennis Department
Contact 200 potential customers 11/15/2004 1/1/2005 $0 Dennis & Kay Department
Build Web Site 11/1/2004 1/15/2005 $1,500 Dennis Department
Get 50 new contracts 1/1/2005 3/1/2005 $0 Dennis & Kay Department
Track hunter snack preferences 11/1/2004 3/1/2005 $0 Dennis Department
Average livestock feed sales of $7775/month 11/1/2004 10/31/2005 $0 Dennis Department
Renovate Boarding Stable 3/1/2006 10/1/2006 $100,000 Dennis Department
Landscaping, fencing, etc. 10/1/2006 7/1/2007 $25,000 Dennis Department
Totals $149,150

Web Plan Summary

Latheethen Feeds, Inc.’s website will enable us to offer customers current information on special sales, promos, new product releases, events, and public service announcements. We also plan on utilizing the Web to sell and market our products and services. An e-store will also be implemented into our web design, allowing customers to place orders for the feed they need right on our website. We will be able to accept and process check and credit card orders immediately online. Our customers will still have the options of paying by cash, check or money order as well.

6.1 Website Marketing Strategy

Our website will be promoted through the use of sponsor listings and affiliate memberships [confidential and proprietary information removed]. Our site will be registered with all of the major search engines. We will also share links with our distributors and manufacturers.

6.2 Development Requirements

Latheethen Feeds, Inc.’s website will be initially developed with few internal technical resources. IPowerWeb will host the site and provide the technical back end. MX-Productions will produce the graphics, logos, artwork, and flash media as they will be developing our website from scratch. Our site will be maintained by one of the owners.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Latheethen Feeds, Inc. is presently made up of three employees. The two current owners and one mill operator put in approximately 75 hours a week. As the new business ownership takes effect and various marketing plans are implemented, the product volume will increase. There is sufficient room in the production mill to expand and produce more feed daily. It is planned that the two new owners will oversee the production and day to day business practices.

We will also be contracting a new outside CPA to handle the corporate book keeping and business accounts (listed in the Profit and Loss table). We value and understand how important proper accounting and reporting of all sales activities are to the successful growth of a company. It is through development of this accuracy that true business growth will be verified and available for the continued security of this well-established family business.

7.1 Personnel Plan

Latheethen Feeds, Inc. is currently run and operated by one person in the mill and one person in the store. In time, as we implement our marketing plan, we will need to hire in an additional person to assist in the mill, and possibly another person to assist Kay in the store. We also could possibly need to hire a delivery person in the year 2005. When the business expands with new customers and larger feed orders, Dennis will need to be on site to assist Kay with inspecting the orders prior to delivery to ensure quality and accuracy of all orders. As growth evolves other family members may be of age to assist in the processes or employees may need to be placed.

As we expand we will hire independent contractors. We believe this way would best suite a company our size. Instead of spending the amount of money required by law to actually hire an employee, we feel we would all benefit more from setting up our personnel in this aspect.

Personnel Plan
FY 2005 FY 2006 FY 2007 FY 2008 FY 2009
Dennis $12,000 $18,000 $20,000 $25,000 $25,000
Kay $12,000 $15,000 $15,000 $15,000 $15,000
Extra Mill Operator $7,000 $12,000 $18,000 $18,000 $24,000
Extra Store Help $0 $0 $10,000 $15,000 $18,000
Total People 3 3 4 4 4
Total Payroll $31,000 $45,000 $63,000 $73,000 $82,000

Financial Plan investor-ready personnel plan .">

The financial plan is to borrow $15,000 now as a short-term loan from Citizens Bank, at an interest rate of 7%, to buy a delivery truck suitable to our needs. We will repay this loan within two years from the cash flow of the business. This truck will allow us to expand our services to include delivery, giving us a further edge over the local competition and enabling us to further expand into our target market, while increasing recognition of our name and services.

The second phase of the plan is to borrow $135,000 in long-term loans from the bank in early 2006, to fund the renovation of the existing property’s barn and outbuilding into a structurally-sound, attractive, and livable horse boarding stable, and to install fencing and landscaping suitable to that purpose. This renovation will be completed within 7 months, although final landscaping and fencing is not expected to be finished until early 2007. We will repay this loan over 10 years. We will secure this loan with our equity in the value of the existing property. The boarding stable will open up a new revenue stream for the business, and attract new steady customers.

With aggressive target marketing and the sales strategies outlined above, we will increase sales over 3% in the first year. We expect a bigger increase in year two, with the extensive renovation generating some free publicity and with existing customers making referrals, but the largest expansion is planned for 2008, when we can first realize a full year’s revenue from the boarding stable.

From the very start, the new owners of Latheethen’s will start building the business and taking it to the highest level. The new owners have bright futures ahead of themselves, as does Latheethen Feeds, Inc. The once small, unknown feed store will be transformed into the area’s premier livestock feed store and equine boarding facility. The new Latheethen Feeds will be capable of hosting large scale rodeos and other livestock shows by the end of 2009.

8.1 Important Assumptions

This business plan was developed for Latheethen Feeds, Inc. assuming the following:

  • Steady growth from good management, barring any unforseen local or national disasters such as the economic slowdown seen by most of the country following the September 11th, 2001 tragedies.
  • An adequate loan amount to allow for initial implementation of plans.
  • Competition and buying patterns remain similar to those used for forecasting.
  • Existing customer base maintained.
  • Market research is on target and current (received from different state organizations).
  • New customers will be gained through direct sales and advertising.
  • Long-term interest rate will be no more than 7%.
  • Income tax rate is 30%.
  • Sales tax rate is 6%.
General Assumptions
FY 2005 FY 2006 FY 2007 FY 2008 FY 2009
Plan Month 1 2 3 4 5
Current Interest Rate 7.00% 7.00% 7.00% 7.00% 7.00%
Long-term Interest Rate 7.00% 7.00% 7.00% 7.00% 7.00%
Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00%
Other 0 0 0 0 0

8.2 Break-even Analysis

Break-even is based on fixed costs of approximately $5,900 including loan repayment, insurance, maintenance and labor. Additionally, controllables such as service labor, payroll taxes, property taxes, advertising and legal/professional fees are included.

The following chart shows that we need to produce approximately $8,500 from sales per month to break-even (according to the assumptions). That is less than what the previous owners have accomplished in previous years. We strongly believe we will succeed and provide handsome returns for our company and its owners.

Margins are harder to assume. Our FY 2005 gross margin is forecasted at 69.98%. In the following years our gross margin will continue to grow beyond our starting point because of the continued growth in total product sales and the release of our new equine boarding stable. The products manufactured in the mill cost about $3.50 for 50 pounds of feed on average. The lowest sale (market) price on those products is $5.50 with the highest coming in at $10.75. The majority of our gross profit on feed products is made directly as a result of having the luxury of our own custom mill.

Not only will we serve a much higher number of customers monthly than required by this break-even chart, we believe that we are going to possibly double the amount projected in our cash flow charts in this business plan, because we are going to be the only facility of its kind within a 150 mile radius. As advertising and direct sales follow suit from outside areas, our delivery service will prove to be valuable to our company and our customers.

Feed and farm supply business plan, financial plan chart image

Break-even Analysis
Monthly Revenue Break-even $7,929
Assumptions:
Average Percent Variable Cost 30%
Estimated Monthly Fixed Cost $5,549

8.3 Projected Profit and Loss

Outlined below and in the following table and chart, are some of the intrinsic facets of the projected profit and loss for Latheethen Feeds, Inc.

Cost of sales reflects our cost to manufacture the feed and purchase all other non-manufactured products. Gross margin will continue to rise at a steady pace throughout the years forecasted.

Payroll expenses currently includes income for the two owners. As forecasted, additional employees will be brought aboard as required to keep up with the growing pace of Latheethen Feeds, Inc. Further details are available in our Personnel table (above).

Advertising and marketing expenses (news ads, magazine ads, etc.) are projected to increase as net profits increase and positive results are accomplished as a direct result of the same marketing and advertising. All direct sales and marketing is performed by Dennis. Commissions are not paid to him as a result of a gained customer as he is one of the two major owners of the corporation.

Depreciation forecasted includes normal wear and mechanical tune-ups on trucks, tractors and all equipment in the mill.

Fuel costs are projected to grow as the amount of sales made that require delivery increase. This projected expense includes fuel for the trucks, tractors, etc.

Utilities are projected to increase year to year. The current market prices for utilities will change as the years past. We have prepared for an annual $100 increase.

Insurance: Latheethen’s was quoted an insurance premium of $1,200/monthly, which includes liability, property, theft, fire, and personal insurance. The equipment (Mill machines, vehicles, and tractors) is also included in the monthly premium amount.

Payroll taxes include social security, unemployment and workers compensation, etc. Feed dealers permit and state sales tax license is projected to be paid in one annual installment in the month of January. Latheethen’s anticipates paying sales taxes monthly, and income tax quarterly, as required by law.

All website expenses are listed below, from initial development, to hosting, to account management for our e-commerce transactions.

Boarding Stable: The expensed portion of the barn renovations in year two is shown as an operating expense. The remainder ($125,000) is shown as purchase of new long-term assets in the Cash Flow table, representing the increased value of the property after renovation. 

Feed and farm supply business plan, financial plan chart image

Pro Forma Profit and Loss
FY 2005 FY 2006 FY 2007 FY 2008 FY 2009
Sales $149,386 $162,582 $218,884 $255,396 $293,232
Direct Cost of Sales $44,840 $47,264 $58,177 $64,984 $71,886
Other Costs of Goods $0 $0 $0 $0 $0
Total Cost of Sales $44,840 $47,264 $58,177 $64,984 $71,886
Gross Margin $104,546 $115,318 $160,707 $190,412 $221,346
Gross Margin % 69.98% 70.93% 73.42% 74.56% 75.48%
Expenses
Payroll $31,000 $45,000 $63,000 $73,000 $82,000
Advertising & Marketing $1,110 $1,500 $1,800 $2,100 $2,400
Depreciation $3,000 $3,000 $3,000 $3,000 $3,000
Fuel $7,185 $7,490 $7,822 $9,000 $9,600
Maintenance of Delivery Truck $3,000 $3,500 $3,500 $3,500 $3,600
Utilities $3,072 $3,400 $3,600 $3,600 $3,600
Insurance $14,400 $14,400 $15,400 $15,400 $15,400
Payroll Taxes $0 $0 $0 $0 $0
Postage $180 $180 $190 $190 $210
Bank Charges $240 $240 $240 $240 $240
Stable Renovation Expenses $0 $10,000 $0 $0 $0
Accounting & Legal $1,200 $1,200 $1,200 $1,200 $1,200
Feed Dealers Permit $15 $15 $15 $15 $15
Website Development $1,500 $0 $300 $0 $200
Website hosting $300 $300 $300 $300 $300
Online Payment Account Mgmt $360 $360 $380 $380 $400
Sales Tax License $25 $25 $25 $25 $25
Total Operating Expenses $66,587 $90,610 $100,772 $111,950 $122,190
Profit Before Interest and Taxes $37,959 $24,708 $59,935 $78,462 $99,156
EBITDA $40,959 $27,708 $62,935 $81,462 $102,156
Interest Expense $729 $4,457 $8,033 $7,088 $6,143
Taxes Incurred $11,169 $6,076 $15,571 $21,412 $27,904
Net Profit $26,061 $14,176 $36,332 $49,962 $65,109
Net Profit/Sales 17.45% 8.72% 16.60% 19.56% 22.20%

8.4 Projected Cash Flow

The cash flow projection for Latheethen Feeds, Inc. shows that provisions for ongoing expenses are adequate to meet the needs of the company, as the business generates sufficient cash flow to support operations and future expansions.

Cash flow projections are critical to our success. The monthly cash flow is shown in the illustration, with one bar representing the cash flow per month and the other representing the monthly balance. The annual cash flow figures are included here and in our Cash Flow table. Detailed monthly numbers are included in the Appendix.

Cash Flow shows the purchase of long-term assets as follows:

  • $15,000 for a delivery truck
  • $125,000 for renovations of the barn to a horse boarding stable, which will improve the value of the property owned by the business

The table also shows the new loans required, and the projected repayment schedules.

Feed and farm supply business plan, financial plan chart image

Pro Forma Cash Flow
FY 2005 FY 2006 FY 2007 FY 2008 FY 2009
Cash Received
Cash from Operations
Cash Sales $149,386 $162,582 $218,884 $255,396 $293,232
Subtotal Cash from Operations $149,386 $162,582 $218,884 $255,396 $293,232
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0 $0 $0
New Current Borrowing $15,000 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0
New Long-term Liabilities $0 $135,000 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0
Subtotal Cash Received $164,386 $297,582 $218,884 $255,396 $293,232
Expenditures FY 2005 FY 2006 FY 2007 FY 2008 FY 2009
Expenditures from Operations
Cash Spending $31,000 $45,000 $63,000 $73,000 $82,000
Bill Payments $75,770 $103,070 $116,585 $129,680 $143,333
Subtotal Spent on Operations $106,770 $148,070 $179,585 $202,680 $225,333
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $9,167 $5,833 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $13,500 $13,500 $13,500 $13,500
Purchase Other Current Assets $0 $0 $0 $0 $0
Purchase Long-term Assets $15,000 $125,000 $0 $0 $0
Dividends $0 $0 $0 $20,000 $20,000
Subtotal Cash Spent $130,937 $292,403 $193,085 $236,180 $258,833
Net Cash Flow $33,449 $5,179 $25,799 $19,216 $34,399
Cash Balance $33,976 $39,155 $64,953 $84,169 $118,569

8.5 Projected Balance Sheet

The Balance Sheet shows healthy growth of net worth, and strong financial position. The monthly estimates are included in the Appendix. The balance sheet for Latheethen Feeds, Inc. is quite solid. We do not project any trouble meeting our debt obligations. Our management is strong enough and more than capable of keeping the business on track for total repayment of any obligations (loans). 

Our major capital asset (the property and affixed buildings) is valued at about $170,000. Our current assets include all the mill equipment ($71,463) and the tractor ($4,000). These items will be purchased upon funding of the requested loan, for the amount of $100,000.

We (the new owners) will also be paying off some old personal debt that will allow us to lower our monthly personal expenses. This will enable us to work hard at growing the business and not have to worry about taking money out of the company for personal reasons. The payroll amounts forecasted will be more than sufficient to cover our personal income needs.

We will have a solid starting balance in the company account. This will allow us to start the business takeover with a security nest and will allow us to grow our cash balance at a more steady pace.

Our projected balance sheet is presented in the table below.

Pro Forma Balance Sheet
FY 2005 FY 2006 FY 2007 FY 2008 FY 2009
Assets
Current Assets
Cash $33,976 $39,155 $64,953 $84,169 $118,569
Inventory $5,970 $6,293 $7,746 $9,038 $10,377
Other Current Assets $75,463 $75,463 $75,463 $75,463 $75,463
Total Current Assets $115,409 $120,910 $148,162 $168,670 $204,408
Long-term Assets
Long-term Assets $185,000 $310,000 $310,000 $310,000 $310,000
Accumulated Depreciation $42,089 $45,089 $48,089 $51,089 $54,089
Total Long-term Assets $142,911 $264,911 $261,911 $258,911 $255,911
Total Assets $258,320 $385,821 $410,073 $427,581 $460,319
Liabilities and Capital FY 2005 FY 2006 FY 2007 FY 2008 FY 2009
Current Liabilities
Accounts Payable $10,620 $8,279 $9,699 $10,745 $11,874
Current Borrowing $5,833 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0
Subtotal Current Liabilities $16,453 $8,279 $9,699 $10,745 $11,874
Long-term Liabilities $0 $121,500 $108,000 $94,500 $81,000
Total Liabilities $16,453 $129,779 $117,699 $105,245 $92,874
Paid-in Capital $1,000 $1,000 $1,000 $1,000 $1,000
Retained Earnings $214,805 $240,866 $255,042 $271,374 $301,336
Earnings $26,061 $14,176 $36,332 $49,962 $65,109
Total Capital $241,866 $256,042 $292,374 $322,336 $367,446
Total Liabilities and Capital $258,320 $385,821 $410,073 $427,581 $460,319
Net Worth $241,866 $256,042 $292,374 $322,336 $367,446

8.6 Business Ratios

Latheethen Feeds, Inc.’s projected business ratios are provided in the table below.  The final column, Industry Profile, shows significant ratios for the Feed Store Industry, as determined by the Standard Industry Classification (SIC) Index code 5999-0803.

Ratio Analysis
FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 Industry Profile
Sales Growth 3.37% 8.83% 34.63% 16.68% 14.81% 3.97%
Percent of Total Assets
Inventory 2.31% 1.63% 1.89% 2.11% 2.25% 38.92%
Other Current Assets 29.21% 19.56% 18.40% 17.65% 16.39% 24.26%
Total Current Assets 44.68% 31.34% 36.13% 39.45% 44.41% 79.54%
Long-term Assets 55.32% 68.66% 63.87% 60.55% 55.59% 20.46%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Current Liabilities 6.37% 2.15% 2.37% 2.51% 2.58% 43.26%
Long-term Liabilities 0.00% 31.49% 26.34% 22.10% 17.60% 14.36%
Total Liabilities 6.37% 33.64% 28.70% 24.61% 20.18% 57.62%
Net Worth 93.63% 66.36% 71.30% 75.39% 79.82% 42.38%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Gross Margin 69.98% 70.93% 73.42% 74.56% 75.48% 33.23%
Selling, General & Administrative Expenses 0.00% 0.00% 0.00% 0.00% 0.00% 20.52%
Advertising Expenses 0.00% 0.00% 0.00% 0.00% 0.00% 2.10%
Profit Before Interest and Taxes 25.41% 15.20% 27.38% 30.72% 33.81% 1.04%
Main Ratios
Current 7.01 14.60 15.28 15.70 17.22 1.67
Quick 6.65 13.84 14.48 14.86 16.34 0.65
Total Debt to Total Assets 6.37% 33.64% 28.70% 24.61% 20.18% 2.45%
Pre-tax Return on Net Worth 15.39% 7.91% 17.75% 22.14% 25.31% 62.21%
Pre-tax Return on Assets 14.41% 5.25% 12.66% 16.69% 20.21% 6.49%
Additional Ratios FY 2005 FY 2006 FY 2007 FY 2008 FY 2009
Net Profit Margin 17.45% 8.72% 16.60% 19.56% 22.20% n.a
Return on Equity 10.78% 5.54% 12.43% 15.50% 17.72% n.a
Activity Ratios
Inventory Turnover 11.97 7.71 8.29 7.74 7.41 n.a
Accounts Payable Turnover 8.13 12.17 12.17 12.17 12.17 n.a
Payment Days 27 34 28 29 29 n.a
Total Asset Turnover 0.58 0.42 0.53 0.60 0.64 n.a
Debt Ratios
Debt to Net Worth 0.07 0.51 0.40 0.33 0.25 n.a
Current Liab. to Liab. 1.00 0.06 0.08 0.10 0.13 n.a
Liquidity Ratios
Net Working Capital $98,955 $112,631 $138,463 $157,925 $192,535 n.a
Interest Coverage 52.05 5.54 7.46 11.07 16.14 n.a
Additional Ratios
Assets to Sales 1.73 2.37 1.87 1.67 1.57 n.a
Current Debt/Total Assets 6% 2% 2% 3% 3% n.a
Acid Test 6.65 13.84 14.48 14.86 16.34 n.a
Sales/Net Worth 0.62 0.63 0.75 0.79 0.80 n.a
Dividend Payout 0.00 0.00 0.00 0.40 0.31 n.a

8.7 Long-term Plan

Latheethen Feeds, Inc. is expected to grow at a steady pace. In conversations with other feed owners, this topic is already a common theme. Many feed stores are beginning to experience record breaking growth rates. This is an exciting time to purchase an already established and successful store in this market. As we expand our customer base, offer more products and bring the dreamed of equine boarding stable to life, we will be positioning Latheethen Feeds, Inc. amongst the elite dealers in the state of Michigan.

We will continuously review our business plan as we implement changes. By doing so we will ensure accuracy and stability. Our goal is to take over this great business, protect it, nurture it, and provide for it. Doing these things will enable us to grow and expand the business in a professional atmosphere.

Long-term
FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014
Sales $149,386 $162,582 $218,884 $255,396 $293,232 $0 $0 $0 $0 $0
Cost of Sales $44,840 $47,264 $58,177 $64,984 $71,886 $0 $0 $0 $0 $0
Gross Margin $104,546 $115,318 $160,707 $190,412 $221,346 $0 $0 $0 $0 $0
Gross Margin % 69.98% 70.93% 73.42% 74.56% 75.48% 0.00% 0.00% 0.00% 0.00% 0.00%
Operating Expenses $66,587 $90,610 $100,772 $111,950 $122,190 $0 $0 $0 $0 $0
Operating Income $37,959 $24,708 $59,935 $78,462 $99,156 $0 $0 $0 $0 $0
Net Income $26,061 $14,176 $36,332 $49,962 $65,109 $0 $0 $0 $0 $0
Current Assets $115,409 $120,910 $148,162 $168,670 $204,408 $0 $0 $0 $0 $0
Long-term Assets $142,911 $264,911 $261,911 $258,911 $255,911 $0 $0 $0 $0 $0
Current Liabilities $16,453 $8,279 $9,699 $10,745 $11,874 $0 $0 $0 $0 $0
Long-term Liabilities $0 $121,500 $108,000 $94,500 $81,000 $0 $0 $0 $0 $0
Equity $241,866 $256,042 $292,374 $322,336 $367,446 $0 $0 $0 $0 $0
Sales Forecast
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Sales
Equine Feed $3,170 $3,170 $3,170 $3,170 $3,170 $3,170 $3,170 $3,170 $3,170 $3,170 $3,170 $3,170
Deer Feed $2,800 $2,800 $100 $100 $100 $100 $100 $100 $100 $100 $2,800 $2,800
Livestock Feed $7,200 $8,900 $6,400 $6,300 $6,600 $7,200 $8,654 $8,200 $7,900 $8,600 $9,300 $8,092
Misc. Products & Supplies $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Boarding Stable $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $13,670 $15,370 $10,170 $10,070 $10,370 $10,970 $12,424 $11,970 $11,670 $12,370 $15,770 $14,562
Direct Cost of Sales Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Corn, Oats, Molasses, Other Ingredients $5,600 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $4,000 $5,600
Misc. Products & Supplies $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
Boarding Stable $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Bags, Ties, Pallets, Labels $120 $120 $120 $120 $120 $120 $120 $120 $120 $120 $120 $120
Subtotal Direct Cost of Sales $5,970 $3,170 $3,170 $3,170 $3,170 $3,170 $3,170 $3,170 $3,170 $3,170 $4,370 $5,970
Personnel Plan
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Dennis 0% $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Kay 0% $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Extra Mill Operator 0% $0 $0 $0 $0 $0 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Extra Store Help 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 3 3 3 3 3 3 3 3 3 3 3 3
Total Payroll $2,000 $2,000 $2,000 $2,000 $2,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
General Assumptions
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00%
Long-term Interest Rate 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00%
Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0
Pro Forma Profit and Loss
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Sales $13,670 $15,370 $10,170 $10,070 $10,370 $10,970 $12,424 $11,970 $11,670 $12,370 $15,770 $14,562
Direct Cost of Sales $5,970 $3,170 $3,170 $3,170 $3,170 $3,170 $3,170 $3,170 $3,170 $3,170 $4,370 $5,970
Other Costs of Goods $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $5,970 $3,170 $3,170 $3,170 $3,170 $3,170 $3,170 $3,170 $3,170 $3,170 $4,370 $5,970
Gross Margin $7,700 $12,200 $7,000 $6,900 $7,200 $7,800 $9,254 $8,800 $8,500 $9,200 $11,400 $8,592
Gross Margin % 56.33% 79.38% 68.83% 68.52% 69.43% 71.10% 74.48% 73.52% 72.84% 74.37% 72.29% 59.00%
Expenses
Payroll $2,000 $2,000 $2,000 $2,000 $2,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Advertising & Marketing $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $10
Depreciation $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
Fuel $629 $672 $542 $539 $547 $562 $598 $587 $579 $597 $682 $652
Maintenance of Delivery Truck $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
Utilities $256 $256 $256 $256 $256 $256 $256 $256 $256 $256 $256 $256
Insurance $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
Payroll Taxes 15% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Postage $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15
Bank Charges $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20
Stable Renovation Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accounting & Legal $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Feed Dealers Permit $0 $0 $15 $0 $0 $0 $0 $0 $0 $0 $0 $0
Website Development $500 $500 $500 $0 $0 $0 $0 $0 $0 $0 $0 $0
Website hosting $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25
Online Payment Account Mgmt 15% $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30
Sales Tax License $0 $0 $25 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $5,375 $5,418 $5,328 $4,785 $4,793 $5,808 $5,844 $5,833 $5,825 $5,843 $5,928 $5,808
Profit Before Interest and Taxes $2,325 $6,782 $1,672 $2,115 $2,407 $1,992 $3,410 $2,967 $2,675 $3,357 $5,472 $2,784
EBITDA $2,575 $7,032 $1,922 $2,365 $2,657 $2,242 $3,660 $3,217 $2,925 $3,607 $5,722 $3,034
Interest Expense $88 $83 $78 $73 $68 $63 $58 $53 $49 $44 $39 $34
Taxes Incurred $671 $2,010 $478 $613 $702 $579 $1,005 $874 $788 $994 $1,630 $825
Net Profit $1,566 $4,690 $1,116 $1,429 $1,637 $1,350 $2,346 $2,040 $1,838 $2,319 $3,803 $1,925
Net Profit/Sales 11.46% 30.51% 10.97% 14.19% 15.79% 12.31% 18.88% 17.04% 15.75% 18.75% 24.12% 13.22%
Pro Forma Cash Flow
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Cash Received
Cash from Operations
Cash Sales $13,670 $15,370 $10,170 $10,070 $10,370 $10,970 $12,424 $11,970 $11,670 $12,370 $15,770 $14,562
Subtotal Cash from Operations $13,670 $15,370 $10,170 $10,070 $10,370 $10,970 $12,424 $11,970 $11,670 $12,370 $15,770 $14,562
Additional Cash Received
Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $15,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $28,670 $15,370 $10,170 $10,070 $10,370 $10,970 $12,424 $11,970 $11,670 $12,370 $15,770 $14,562
Expenditures Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Expenditures from Operations
Cash Spending $2,000 $2,000 $2,000 $2,000 $2,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Bill Payments $231 $6,881 $5,791 $6,664 $6,394 $6,479 $6,385 $6,823 $6,677 $6,589 $6,904 $9,952
Subtotal Spent on Operations $2,231 $8,881 $7,791 $8,664 $8,394 $9,479 $9,385 $9,823 $9,677 $9,589 $9,904 $12,952
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $833 $833 $833 $833 $833 $833 $833 $834 $834 $834 $834
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $15,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $17,231 $9,714 $8,624 $9,497 $9,227 $10,312 $10,218 $10,656 $10,511 $10,423 $10,738 $13,786
Net Cash Flow $11,439 $5,656 $1,546 $573 $1,143 $658 $2,206 $1,314 $1,159 $1,947 $5,032 $776
Cash Balance $11,966 $17,622 $19,168 $19,741 $20,884 $21,542 $23,748 $25,062 $26,221 $28,168 $33,200 $33,976
Pro Forma Balance Sheet
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Assets Starting Balances
Current Assets
Cash $527 $11,966 $17,622 $19,168 $19,741 $20,884 $21,542 $23,748 $25,062 $26,221 $28,168 $33,200 $33,976
Inventory $8,904 $5,970 $3,300 $3,170 $3,170 $3,170 $3,170 $3,170 $3,170 $3,170 $3,170 $4,370 $5,970
Other Current Assets $75,463 $75,463 $75,463 $75,463 $75,463 $75,463 $75,463 $75,463 $75,463 $75,463 $75,463 $75,463 $75,463
Total Current Assets $84,894 $93,399 $96,385 $97,801 $98,374 $99,517 $100,175 $102,381 $103,695 $104,854 $106,801 $113,033 $115,409
Long-term Assets
Long-term Assets $170,000 $185,000 $185,000 $185,000 $185,000 $185,000 $185,000 $185,000 $185,000 $185,000 $185,000 $185,000 $185,000
Accumulated Depreciation $39,089 $39,339 $39,589 $39,839 $40,089 $40,339 $40,589 $40,839 $41,089 $41,339 $41,589 $41,839 $42,089
Total Long-term Assets $130,911 $145,661 $145,411 $145,161 $144,911 $144,661 $144,411 $144,161 $143,911 $143,661 $143,411 $143,161 $142,911
Total Assets $215,805 $239,060 $241,796 $242,962 $243,285 $244,178 $244,586 $246,542 $247,606 $248,515 $250,212 $256,194 $258,320
Liabilities and Capital Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Current Liabilities
Accounts Payable $0 $6,689 $5,568 $6,451 $6,178 $6,266 $6,157 $6,600 $6,458 $6,362 $6,574 $9,586 $10,620
Current Borrowing $0 $15,000 $14,167 $13,334 $12,501 $11,668 $10,835 $10,002 $9,169 $8,335 $7,501 $6,667 $5,833
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $21,689 $19,735 $19,785 $18,679 $17,934 $16,992 $16,602 $15,627 $14,697 $14,075 $16,253 $16,453
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $21,689 $19,735 $19,785 $18,679 $17,934 $16,992 $16,602 $15,627 $14,697 $14,075 $16,253 $16,453
Paid-in Capital $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Retained Earnings $205,465 $214,805 $214,805 $214,805 $214,805 $214,805 $214,805 $214,805 $214,805 $214,805 $214,805 $214,805 $214,805
Earnings $9,340 $1,566 $6,256 $7,372 $8,801 $10,439 $11,789 $14,135 $16,175 $18,013 $20,332 $24,136 $26,061
Total Capital $215,805 $217,371 $222,061 $223,177 $224,606 $226,244 $227,594 $229,940 $231,980 $233,818 $236,137 $239,941 $241,866
Total Liabilities and Capital $215,805 $239,060 $241,796 $242,962 $243,285 $244,178 $244,586 $246,542 $247,606 $248,515 $250,212 $256,194 $258,320
Net Worth $215,805 $217,371 $222,061 $223,177 $224,606 $226,244 $227,594 $229,940 $231,980 $233,818 $236,137 $239,941 $241,866
Inventory Detail
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Months of Inventory On-hand 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Minimum Inventory Purchase $500
Inventory Balance
Beginning Inventory Balance $8,904 $5,970 $3,300 $3,170 $3,170 $3,170 $3,170 $3,170 $3,170 $3,170 $3,170 $4,370
Less Inventory Used as COGS $5,970 $3,170 $3,170 $3,170 $3,170 $3,170 $3,170 $3,170 $3,170 $3,170 $4,370 $5,970
Plus Inventory Purchase $3,036 $500 $3,040 $3,170 $3,170 $3,170 $3,170 $3,170 $3,170 $3,170 $5,570 $7,570
Ending Inventory Balance $5,970 $3,300 $3,170 $3,170 $3,170 $3,170 $3,170 $3,170 $3,170 $3,170 $4,370 $5,970

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animal production business plan

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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.

Items 1 - 25 of 34

  • Product Name
  • Date Posted

Butcher Apprenticeship Program

Butcher Apprenticeship Program

Earn While You Learn - Animal Science Apprentice Program

Earn While You Learn - Animal Science Apprentice Program

Beef Cattle in feedlot

Feeding Beef Cattle

What You Should Know About Buying Livestock

What You Should Know About Buying Livestock

Crop Cents Mobile App

Crop Cents Mobile App

Survey of Pennsylvania Beef Producers

Survey of Pennsylvania Beef Producers

Navigating Pathways to Success: The 2016 National Beef Quality Audit

Navigating Pathways to Success: The 2016 National Beef Quality Audit

Grass-fed Beef Production

Grass-fed Beef Production

Advantages of Marketing Your Beef Directly

Advantages of Marketing Your Beef Directly

Implants used in cattle increase feed efficiency. (Photo Credit: PA Beef Producers Working Group)

2017 Calf-fed Holstein Demonstration Results

2016 Calf-fed Holstein Demonstration Results

2016 Calf-fed Holstein Demonstration Results

Calculating the Cost of Beef Production

Calculating the Cost of Beef Production

Replacement Heifers: Management Options Benefit Bottom Line

Replacement Heifers: Management Options Benefit Bottom Line

Photo taken by Michelle Kunjappu of Dr. Tara Felix, Penn State Extension Beef Specialist

Benefits of Weighing Beef Cattle

Building an Emergency Response Plan for Livestock Producers

Building an Emergency Response Plan for Livestock Producers

Integrating Grazing into Cropping Systems: Infrastructure

Integrating Grazing into Cropping Systems: Infrastructure

Beef Cow-calf Operation

Beef Cow-calf Operation

Raising livestock for direct-to-consumer meat sales requires careful record keeping and analysis to determine profitable pricing.

How Much Should You Charge? Pricing Your Meat Cuts

Beef Production

Beef Production

Understanding Beef Carcass Yields and Losses During Processing

Understanding Beef Carcass Yields and Losses During Processing

Custom Feeding Cattle

Custom Feeding Cattle

Beef x dairy crossbred calves in a feedlot. Photo by Dr. Tara L. Felix

Does the Growing Beef x Dairy Trend Work for the Feeders

The Most Valuable Investment in the Beef Herd - The Bull

The Most Valuable Investment in the Beef Herd - The Bull

Hanging sides of beef. Photo credit: Tara Felix, Penn State Extension

Starting a Freezer Beef Business

Products of beef cattle operations can range from breeding stock to meat. Photo credit: Michelle Kunjappu, PA Beef Producers Working Group

So You Want to Raise Beef Cattle?

You may also be interested in....

Courtesy of the PA Beef Producers Working Group (Photographer: Michelle Kunjappu)

Personalize your experience with Penn State Extension and stay informed of the latest in agriculture.

Animal Production

Animal production, fao's role in animal production.

In several countries across the world, the surging demand for livestock products is largely met by large-scale livestock production and associated food chains. Nonetheless, hundreds of millions of small-scale producers and pastoralists depend on livestock for their livelihoods. Beyond food production, farm animals play other important economic, cultural and social roles and provide multiple functions and services. They are an essential part of agro-ecosystems. 

FAO works to enhance livestock’s contribution to the Sustainable Development Goals (SDGs) by supporting the transformation of animal production systems – small and large – in ways that are economically, socially and environmentally sustainable.

The Organization plays a policy advisory and awareness raising role and provides technical support, advocacy, information, knowledge and guidance to help produce high quality animal products, safely, efficiently and responsibly, while improving poor people’s livelihoods and meeting consumers’ needs. FAO also works alongside governments and farmers, responding during and after livestock emergencies and promotes dialogue amongst public, private and civil society partners whose ultimate goal is responsible and sustainable livestock production.

Among other things, FAO’s programme focuses on animal genetics, animal husbandry, animal nutrition and feeding, antimicrobial resistance, animal health and animal welfare, pastoralism and agroecology.

animal production business plan

Livestock contributes to nearly 40 percent of total agricultural output in developed countries and 20 percent in developing ones, supporting the livelihoods of at least 1.3 billion people worldwide.

animal production business plan

Thirty-four percent of global food protein supply comes from livestock.

animal production business plan

Livestock consume annually about 6 billion tonnes of feed dry matter, about half being grass. Eighty-six percent of the global livestock feed intake is made of resources that are not edible by humans. Cereals represent about 13 percent of the intake, and about one third of global cereal production.

animal production business plan

Pastoralists promote rangeland health by improving soil fertility, conserving biodiversity, managing fires and accelerating nutrient cycling.

Areas of work

The Organization supports member countries on different overlapping issues, including:

animal production business plan

  • implementing the Global Plan of Action for Animal Genetic Resources  monitoring national breed populations;
  • measuring progress towards SDG indicators 2.5.1 and 2.5.2;

animal production business plan

  • planning and implementing the sustainable development of the livestock sector by, for instance, supporting the preparation of livestock master plans to guide and implement investments and policies;
  • improving livestock feeding systems, for example through enlarging the feed resource base, increasing feed safety, promoting the use of novel feed sources and related technologies, and reducing food-feed competition;
  • providing guidance and technical assistance on good animal husbandry practices and animal welfare;
  • reducing the use of antimicrobials in animal production;
  • facilitating the implementation of animal identification and traceability, value-chain development, animal breeding programmes and livestock farmer field schools;

animal production business plan

  • enhancing the role of livestock in agroecosystems and evaluating the performance of agroecological systems;
  • addressing the impacts of climate change on livestock, reducing the environmental footprint of livestock supply chains and assessing the impact of projects and investments on greenhouse gas emissions;

animal production business plan

  • supporting pastoralist friendly-policies and regulations and participatory decision-making;
  • supporting pastoral communities to build resilience by helping them to keep the short- and medium-term socio-economic, ecological and technical balances within and around pastoral systems.

animal production business plan

Seven reasons why pastoralism supports a better future

animal production business plan

Money from honey

animal production business plan

From worry to well-being

animal production business plan

Returning to make rural areas in Tunisia flourish

More on this topic.

  • Animal genetics
  • Antimicrobial resistance
  • COAG’s Sub-Committee on Livestock 
  • Domestic Animal Diversity Information System (DAD-IS)
  • Gateway to dairy production and products
  • Gateway to poultry production and products
  • Global Livestock Environmental Assessment Model – interactive GLEAM-i
  • Global Feed Safety Platform
  • Pastoralism- Policy Support and governance
  • Pastoralist Knowledge Hub

animal production business plan

Video: Sustainable Livestock for Sustainable Development Goals

Video: To all the unsung heroes...Thank you!

Publications

Genomic characterization of animal genetic resources

Innovations in cryoconservation of animal genetic resources

Transforming the livestock sector through the Sustainable Development Goals

TAPE Tool for Agroecology Performance Evaluation

Livestock solutions for climate change

Good practices for the feed sector - Implementing the Codex Alimentarius Code of Practice on Good Animal Feeding

Animal health

Livestock and the environment

External links

International Livestock Research Institute (ILRI)

Livestock Emergency Guidelines and Standards (LEGS)  

Feedipedia  

Badi Besbes Senior Animal Production Officer Animal Production and Genetics Branch (NSAG)

  • Agriculture Farming
  • Livestock Farming

Project Reports

  • Hydroponics
  • Best Fertilizers
  • Vertical Farming
  • Sheep Farming
  • Goat Farming
  • Poultry Farming
  • Fish Farming
  • Pig Farming
  • Dairy Farming
  • Rabbit Farming
  • Success Stories of Farmers
  • Boost Fruit Yield
  • District Wise Crop Production
  • Schemes & Subsidies
  • Agriculture Colleges
  • Farm Insurance
  • Disease Control And Management

Agriculture

Aquaculture

Horticulture

Agri Business

Cattle Feed Business Plan – Formulation, Production

Table of contents, cattle feed formulation, setup cattle feed processing plant, importance of nutrients for cattle, cattle feed ingredients and nutrition, compound cattle feed, how compound cattle feed is manufactured, raw materials for cattle feed manufacturing, investment for animal feed production business, factors for starting cattle feed production business plan, fodder for cattle, steps for starting a cattle feed production business, tips for feeding dairy cattle, market potential and marketing of your cattle feed, importance of cattle feed in milk production, recommendations for feeding cattle feed, packing, marking, and labeling cattle feed.

Cattle Feed Business Plan

Hello friends, we are here with a new topic called “ Cattle Feed Business Plan “. A livestock feed production business is a profitable business if it is located in an area where considerable numbers of livestock farms exist. Animal feed referred to a food item that is consumed by domestic animals. Livestock farmers are always looking for formulated food that is somewhat necessary for the proper growth and nourishment of livestock. In this article we also covered the below topics about cattle feed business;

  • Animal feed making business
  • How to set up a cattle feed processing plant
  • Cattle feed business profitable or not
  • How profitable is the cattle feed production business

A Step-by-Step Guide to Cattle Feed Business Plan

Guide to Cattle Feed Business Plan

The animal feed industry deals with food given to animals in cattle, poultry animals, and aquaculture sectors as part of animal husbandry. The feed industry enjoys economies of scale and if you are starting for animal feed production business, you want a thoroughly analyzed plan to earn you an advantage for a good initial market share.

  • Cattle Feed Market Report – Industry Coverage
  • By Ingredients – Grains, Brans, Others
  • By Additives – Vitamins, Antibiotics, Others
  • By End-user – Feed, Fodder, others

Cattle feed encompasses various types of forages like grass, legumes, silage which is mainly used as dairy cattle feed along with soy, grain, and other elements. Cattle feed is an edible and rich source of nutrients for growing, milk-producing, and pregnant cattle. Then, the maximum share of cattle feed production is held by the southern parts of India. So, the cattle feed production business is profitable.

Farmers face several challenges when caring for cattle, including providing more feed to them. Then, they have to order bulk supplies and distribute feed evenly among many cattle. The global cattle feed market is intended to supplant the older model and farmers have a chance to keep their cattle healthy. The developing world is pushing up demand in several ways.

To setting up a cattle feed processing plant or starting cattle feed manufacturing business you have to make a complete business plan, make a customized feed mill layout design. The cattle feed market has been segmented based on feed ingredients like corn, soybean meal, wheat, oilseeds, and other ingredients.

The formulation of cattle feed mainly depends on the several of cattle, milk yield, and dairy ration, etc. While formulating the cattle feed, the availability of the basic raw materials must be kept in mind.

“Cattle feed” means any ground, pelleted, mixture feed, balanced for nutrients intended for the cattle feeding;

(i) Calf starter meal from the age of approximately 8 weeks and up to approximately 26 weeks and calf growth meal from the age of about 26 weeks and up to approximately 108 weeks;

(ii) Compounded cattle feed for cattle and buffaloes from the age of approximately above 108 weeks;

(iii) Proprietary feeds developed through the purpose of increasing productivity and reducing the cost of milk production, which include bypass protein feed, and mineral salt lick, etc.

(vi) Straw-based feed, manufactured by using food crops byproducts along with other feed ingredients.

Setting up cattle feed processing units can take benefits of this trend to make money easily. It doesn’t need a huge budget. There are two most important points to be considered when setting up a livestock feed production mill or starting livestock feed manufacturing, one is the feeding ingredients, you best have the unique formula, the second is the advanced feed processing equipment and technology.

Good cattle feed formula – Decide what nutrients a specific animal needs, gain weight, and stay healthy. Come up with a breakdown of livestock feed formulation based on livestock variety and additives like vitamins, amino acids, enzymes, minerals, then decide what to produce, for example, if it is cattle feed, will consider it be beef cattle feed or dairy feed?

Purchase the Cattle Feed Ingredients – Based on the cattle feed formula you have decided to use, and get the ingredients.

  • Maize, cassava grits, and corn ingredients are popular for energy
  • Get wheat wastes for proteins and some carbohydrates
  • Bone meals, fish, oyster shells, palm kernel for oils, salts, and minerals

The machinery you need is determined by the feed you want to produce. Some of the essential cattle feed processing equipment are grinder, mixer, pelleting machine, freezer, weight scale, packaging bags, etc., are important to complete cattle feed production factory.

By using well-balanced nutrients for cattle can maximize profits. An animal’s diet must have the essential nutrients in appropriate amounts and ratios. The nutrients for cattle that are basic to good cattle nutrition, and use well-balanced feeds succeed in supplying these nutrients. Though, to better understand how feeds are used, it is important to understand the digestion process in animals.

Cattle need proper nutrient feed for maintaining good health and better milk yield. Some essential feed ingredients are a good nutrient supplement to cattle for promoting growth. Some of the important cattle feed ingredients include corn, wheat, soya bean, and other grains. Grains are mainly considered as the best cattle feed as it has high nutritional content such as proteins, minerals, vitamins, carbohydrates, and fiber, etc. Normally, wheat is a digestible source of nutrients added to cattle feed ingredients for maintaining a proper digestion process.

Proper intake of these cattle feed ingredients helps in maintaining health and promotes a high yield of milk. Also, these ingredients help in the physical development of the cattle.

In case if you miss this: High Density Coconut Plantation .

Cattle feed ingredients

  • Corn – Energy Ingredient
  • Wheat – Selenium, vitamin content
  • Soya bean – protein source
  • Rice barn – Source of carbohydrate
  • Oat Hulls – Source of fiber

Compound cattle feed is a mixture of several concentrate feed ingredients in suitable proportion. The commonly used feed ingredients in compound cattle feed are grains, brans, protein meals or cakes, agro-industrial by-products, minerals, and vitamins.

In India there are only two types of compound cattle feeds are manufactured for adult animals. National Dairy Development Board (NDDB) promotes the use of different compound feeds like calf starter, calf growth meal, feed for high yielding animals, feed for low yielding animals, buffalo feed, and feed for dry pregnant animals, etc.

Firstly, feed ingredients are taken in a batch mixer from the raw material storage godown. After mixing, all raw materials are ground to a uniform particle size of about 3 mm. The ground material is further mixed. Materials used in feed formulation in smaller quantities like vitamins, minerals, urea, calcite powder, and common salt, etc., are mixed in a ribbon mixer using proper diluents and stored in one of the storage bins.

Ground material and molasses are mixed in a twin-screw type mixer. Usually, molasses are added by 10% in cattle feed, if the cost is very high, some sweetening agent could be used in place of molasses. Molasses feed is mixed with the dry steam before pelleting. The temperature level of steamed feed is in the range of 75-80°C. Though, steamed feed is converted to pellets by passing it through a cylindrical die and then press roller. Generally, an 8 mm die is used for the production of pelleted feed.

The important raw materials for cattle feed are Wheat bran, Groundnut extraction (or cake), Rice bran extraction or cottonseed bran, Maize, Cottonseed, Molasses, Salt, Calcium carbonate, Mineral mixture, and Vitamin mix, etc.

Cattle feed contains grains, brans, cakes, mineral mixtures, and vitamins as a protein source, energy, minerals, and vitamins. Also, additives loaded with vitamins, minerals, acidifiers, antibiotics, amino acids, enzymes, and antioxidants boost the cattle yielding capacity.

The animal feed production business demands two types of capital investment and they are of the following;

  • Firstly, Fixed Capital
  • Secondly, Working Capital

The above types of Animal Feed Production Business can be explained in the below;

Fixed Capital – It is defined as a one-time investment that consists of fixed money and no need to invest again and again

Working Capital – Working Capital includes the following;

  • Firstly, Employees
  • Secondly, Daily expenses
  • Thirdly, Raw material
  • Lastly, Transportation.

1. The Target market

Analyze the potential of your selected production line thoroughly.

2 . A Detailed Market Research

Do market research on the cattle in your local area; and if you are planning to sell your plan to investors, you have to explain the uniqueness of a specific plan as compared to existing players. Select the most attractive segment in the area with your revenue projections by establishing your basic achievable market share.

3. Equipment and Personnel

The cattle feed production business investment will focus on the business equipment. Also, you could invest in customized equipment for your needs which will call for more investment, use expert advice on the feed plant machinery you need before budgeting.

4. Location

A location for the cattle feed production business plan is closest to the customers. Also, you want your site to be as close to your suppliers as possible, the further you move from your customers the higher your distribution cost and advertising cost.

5. Raw Materials and Suppliers

It is very important to plan for bulk buying in harvest seasons for plant-based materials for the best prices, in your business plan; you want to explain the material source and possible suppliers after your market evaluation.

6. Feed Formula

Low-quality feeds in any market will push you out of business or can cause legal hurdles for your startup business.

  • A fodder can feed a vast variety of livestock for milk production. Depending on feed costs of hay and grain, fodder can produce a higher quality feed for less money than traditional systems.
  • Good silage is yellow-brown color, with a characteristic acid fruity smell, and then just exudes moisture when squeezed.
  • Jowar and maize are the best crops appropriate for ensiling. All non-leguminous fodder crops except turnip and rape.
  • Hybrid Napier, Sudan grass, Berseem, Oats cow pia, millets are also suitable crops. They have to be wilted for 3 to 4 to increase dry matter to around 35% before ensiling. The crop is chaffed 2 to 4 cm in length and packed airtight in a trench silo.
  • Normally, the forage crop from 0.3 ha in a circular silo 3 meters diameter, and 2.5 meters depth are enough to feed 5 animals by 20 kg/day for 150 days.
  • Increasing the pure legume tonnage sugar content adds about 2 to 3 gallons of molasses and water each for 1 ton of green forage. The airtight pit stacked with fodder would be ready in 90 days with a pH of 5.8 and a lactic acid % of about 0.1.
  • Excess of butyric acid formation would lead to more proteolysis thereby reducing the digestibility and also intake of silage by cattle. The best quality silage has a pH of 4.2, lactic acid 10.5%, and Butyric acid 0%.

You can start a cattle feed business with a small amount of capital also but you need to follow some basic steps before getting started.

The cattle feed industry is a major ingredient of the animal feed industry. The cattle feed manufactures are using increasingly modern methods to incorporate best practices. The cattle feed industry has got high growth potential, given that India is the world’s leading milk producer and production. The demand outlook will need dairy companies to step up production and get higher animal yields on the back of superior feed and nutrition.

Step 1) Do a Market Research

Firstly, you need to do thorough research on your local market. At first, you must identify the demand of the livestock farmers in your area and then select a particular category of animal feed with which you will continue further. The other important aspect is to look at competitors who are formulating the same type of animal feed. By considering their strengths and faults in the businesses, you can prepare a solid strategy to stake up against them. Then, you can talk to other business owners who are not in competition with you or doing business in another region.

Step 2) Prepare a Comprehensive Business Plan

Then, you should craft an effective business plan to get success in this venture. You want to consider every aspect involved in the business like your business objective and the scale of business operations, start-up expenses, financial and marketing plan, etc. As you have already decided the category of livestock for which you want to provide feed, you want to study the food necessities of the group of animals for which you desire to produce.

Step 3) Feed Formulation

There is a specific formula of cattle feed for each type of animal and you have to identify the right one for the feeds you are going to produce. If it is not properly formed by mixing the raw materials in an exact ratio, you will lose customers as they would not get expected results after using this feed. To find out the right cattle feed formulation, you should gain knowledge of the dietary needs of the animals you want to manufacture.

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Tips for Feeding Dairy Cattle

  • Concentrate should be fed individually based on production requirements.
  • Be consistent in your feeding – Both time of day and feed quantity is critical to feeding the cattle. Always feed your cattle every day or within 30 minutes of the target time. Consistency is simple but valuable. By providing consistent access to clean, fresh water at all times is also critical. Water drives feed intake, so making sure animals are drinking is important, especially in hot summer months.
  • To keep cattle well-fed and happy during the winter, there are some options. The easiest, but most expensive option is to switch to a feed with increased nutrients.
  • Another option is to find methods to feed cattle while limiting waste. Instead, deposit hay in a hay feeder and make sure there are enough feeders for all cattle to feed at once.
  • Regularity in feeding must be followed. Concentrate mixture can be fed before milking and half in the morning and the other half in the evening before the two milking timings.
  • Over-feeding concentrates can result in off feed and indigestion. The abrupt change in the feed should be avoided.
  • Long and thick-stemmed fodders such as Napier can be chopped and fed.
  • Highly moist and tender grasses can be wilted or mixed with straw before feeding.
  • Silage and other feeds, which can impart flavor to milk, maybe fed after milking. The concentrated mixture in the form of mash can be moistened with water and fed immediately. Pellets can be fed as such.
  • All feeds should be stored properly in well-ventilated and dry places. Mouldy or otherwise damaged feed must not be fed. The optimum concentrate roughage ratio on a dry matter basis must be 60:40 for high-yielding animals.

Because of the intensive cattle development program which has already been taken on hand by the State Government, the success of these development projects depends mainly on the availability of well-balanced cattle feed. Cattle feed envisages the future scope for the development of this industry. The demands for milk and meat is increasing in most of the world and therefore the farmers are now more concerned over the health and yield of the cattle which is serving the global cattle feed market development.

There are many ways you can adopt for marketing of cattle feed;

  • Supply stores – introduce your cattle feed to supply stores and let them act as a middleman
  • Direct sales representatives – search for the sale representatives for feed product
  • Establish your distribution outlet
  • Sell Online

By establishing cattle feed processing plant and start cattle feed-making business can be huge potential to get profits in the feed business.

  • Generally, cattle feed formed by the Milk Unions is a balanced source of essential nutrients required for body maintenance and development in milk production.
  • Cattle feed is manufactured by using good quality grains, oil cakes, common salt, minerals, brans, molasses, and vitamins.
  • Also, it is cheaper and highly palatable to the animals.

Cattle feed mainly contains protein, energy, minerals, and vitamins required for the growth, maintenance, and animal milk production. Also, it is useful to feed extra cattle feed to pregnant animals for proper development.

Milk production as well as the fat content of milk increases reproductive efficiency. Milking cattle should be fed about 2 kg of compound feed for body maintenance and also 400 g to cows for every liter of milk produced.

(1) Every holder of a registration certificate shall comply with the below requirements;

  • Cattle feed can be packed in clean and plain jute or paper bags, in such quantities as may be specified by the Registering Authority. Though, the mouth of each bag should be machine-stitched;
  • Mineral mixture shall be packed in moisture-proof sound and also clean bags, free from causal agents of infectious diseases in such quantities as may be specified by the Registering Authority;
  • Every bag in which cattle feed is packed bear the registration number, name and business address and manufacturer trade name, net weight in kg at the packing time, and the maximum retail price;
  • Every bag in which cattle feed is packed shall indicate the type.

(2) Each bag in which cattle feed is packed shall have a printed leaflet, format of which shall be approved by the Registering Authority, and this indicating batch number, date of manufacture, address of the manufacturer, feed ingredients used in manufacturing cattle feed, vitamins, feed supplements added with their proportions and other particulars as may be stipulated by the Expert Committee.

(3) The leaflet shall contain a declaration about the non-use of certain mineral salts as stipulated by the Expert Committee.

(4) The labels or marks shall not contain any statement, claim, design, or device which is false or misleading in any particulars concerning the cattle feed and also mineral mixture contained in a package or the value of such feed;

(5) No person shall manufacture Proprietary cattle feed without the prior written approval of the Registering Authority.

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Interested to start . Please help

good read…well briefly explained,

Can you help me pet feed formulation pls

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Modelesdebusinessplan.com

Toutes les ressources pour lancer son élevage de poules 🐔

Mettez toutes les chances de votre côté pour monter un projet rentable.

Voici le Business Model Canvas pour votre élevage de poules pondeuses

Cet article a été écrit par un expert qui a étudié l’industrie et a confectionné le business plan pour un élevage de poules

élevage de poules pondeuses business model canvas

Vous retrouverez une analyse PESTEL complète, modifiable et sans copyright dans notre modèle de business plan

Nous avons rédigé de nombreux business plans pour des élevages de poules .

Bien trop souvent, les éleveurs ne prennent pas le temps de structurer leur projet de manière claire et efficace.

Pourquoi? Parce qu'ils n'ont pas les bons outils et les bonnes structures. Parmi ceux-là, il y a le Business Model Canvas.

Qu'est-ce qu'un Business Model Canvas ? Est-ce que j'en ai besoin pour mon élevage de poules ?

Soyons honnêtes avec vous.

Ce n’est pas un remède miracle, mais le Business Model Canvas est un outil précieux pour structurer votre projet de manière stratégique.

Il permet de visualiser l'ensemble des éléments clés de votre entreprise.

Si vous êtes sur le point de lancer un élevage de poules , utiliser un Business Model Canvas n’est pas juste utile, c’est indispensable.

Il vous aidera à :

  • définir clairement votre proposition de valeur, comme des œufs bio de haute qualité ou des poules élevées en plein air
  • identifier vos segments de clientèle, qu'il s'agisse de consommateurs locaux soucieux de la qualité ou de restaurants cherchant des produits frais et locaux
  • structurer vos canaux de distribution, qu'il s'agisse de ventes directes à la ferme, de marchés locaux ou de partenariats avec des épiceries bio
  • cerner vos principales sources de revenus, que ce soit la vente d'œufs, de poules pondeuses ou de produits dérivés comme les plumes
  • mettre en lumière vos ressources clés, telles qu'un terrain adapté, des installations modernes ou un réseau de fournisseurs de nourriture bio

Bien sûr, le Business Model Canvas ne garantit pas le succès à lui seul, mais il vous offre une vue d'ensemble claire et une feuille de route pour votre élevage de poules.

Et si vous rédigez un business plan pour votre élevage de poules , le Business Model Canvas est un excellent outil pour vous guider tout au long du processus.

animal production business plan

Notre business plan pour un élevage de poules vous aidera à réussir votre projet.

Des exemples pour chaque partie du Business Model Canvas d'un élevage de poules

- Consommateurs soucieux de la qualité et de l'origine de leurs œufs - Restaurants et épiceries fines cherchant des produits locaux et bio - Marchés fermiers et coopératives alimentaires

- Œufs frais, bio et de haute qualité, produits localement - Pratiques d'élevage respectueuses du bien-être animal - Transparence totale sur les méthodes de production et l'alimentation des poules

- Vente directe à la ferme - Marchés fermiers et stands locaux - Partenariats avec des restaurants et des épiceries fines

- Communication régulière sur les réseaux sociaux (Facebook, Instagram) pour partager des nouvelles de la ferme et des informations sur les produits - Programmes de fidélité pour les clients réguliers (réductions, offres spéciales) - Visites de la ferme et ateliers éducatifs pour les familles et les écoles

- Vente d'œufs frais et bio - Frais pour des visites de la ferme et des ateliers éducatifs - Vente de produits dérivés (poules pondeuses, compost, plumes)

- Poules pondeuses en bonne santé et bien entretenues - Personnel formé en agriculture biologique et bien-être animal - Infrastructure de la ferme (poulaillers, terrains de pâturage)

- Soins quotidiens des poules et gestion de leur alimentation - Collecte et conditionnement des œufs - Organisation de visites et d'ateliers éducatifs

- Fournisseurs de nourriture bio pour les poules - Coopératives agricoles et associations de producteurs locaux - Restaurants et épiceries fines partenaires

- Coût de l'alimentation bio et des soins vétérinaires pour les poules - Salaires du personnel (éleveurs, guides pour les visites) - Frais d'exploitation de la ferme (entretien des infrastructures, marketing)

animal production business plan

Nous avons également un article dédié à l'analyse SWOT pour ce projet

Ne confondez pas Business Model Canvas, Business Model et Business Plan

Vous êtes nombreux à vous tromper entre ces trois concepts : le business model, le business model canvas, et le business plan.

Le business model canvas, comme on vient de le voir, est un outil pratique pour résumer votre concept sur une seule page.

Vous y mettez vos segments de clientèle (restaurants locaux, marchés fermiers, particuliers), votre proposition de valeur (œufs frais et bio, poules élevées en plein air), et vos flux de revenus (vente d'œufs, vente de poules, visites de la ferme).

C'est visuel, rapide à remplir, et ça vous permet de voir en un coup d'œil si tout se tient.

Le business model, c'est simplement la manière dont votre élevage de poules va gagner de l'argent.

Par exemple, allez-vous vendre uniquement des œufs, proposer des abonnements pour des livraisons régulières, ou peut-être organiser des visites pédagogiques de votre ferme ? C'est l'idée centrale de votre activité.

Enfin, le business plan, c'est un document beaucoup plus détaillé. Il inclut tout : votre stratégie marketing (comment attirer des clients pour acheter vos œufs), vos prévisions financières (ce que vous allez dépenser et gagner), et votre plan opérationnel (comment vous allez gérer l'alimentation des poules, l'entretien des poulaillers, etc.). C'est celui que vous présenterez à un investisseur ou une banque.

En résumé : le business model, c'est le concept ; le canvas, c'est un outil de synthèse ; et le business plan, c'est votre feuille de route complète.

Des exemples de Business Model Canvas complétés pour des élevages de poules

Un business model canvas pour un élevage de poules en plein air.

Fournisseurs de grains bio, vétérinaires spécialisés en aviculture, associations de bien-être animal, distributeurs de produits fermiers.

Élevage de poules en plein air, production d'œufs bio, gestion des pâturages, organisation de visites éducatives à la ferme.

Offrir des œufs de haute qualité, produits dans le respect du bien-être animal et de l'environnement.

Fidélisation par la transparence sur les méthodes d'élevage, visites de la ferme, programmes de parrainage de poules.

Site web, réseaux sociaux, marchés fermiers, partenariats avec des magasins bio locaux.

Consommateurs soucieux de l'origine de leurs aliments, familles cherchant des produits sains, amateurs de produits bio et locaux.

Achat de grains bio, soins vétérinaires, coûts de maintenance des pâturages, investissements en infrastructures pour le bien-être animal.

Vente d'œufs bio, visites payantes de la ferme, abonnements pour des livraisons régulières d'œufs.

Un Business Model Canvas pour un élevage de poules pondeuses en circuit court

Producteurs locaux de grains, coopératives agricoles, magasins de proximité, restaurants locaux.

Élevage de poules pondeuses, production d'œufs frais, gestion des circuits courts, collaboration avec des partenaires locaux.

Fournir des œufs frais et locaux, réduisant l'empreinte carbone et soutenant l'économie locale.

Création d'une communauté locale autour de l'élevage, événements de dégustation, partenariats avec des chefs locaux pour des démonstrations culinaires.

Vente directe à la ferme, marchés locaux, partenariats avec des épiceries et restaurants locaux, réseaux sociaux.

Consommateurs locaux, restaurants cherchant des produits frais, épiceries de quartier.

Coûts de production des œufs, logistique pour les circuits courts, partenariats locaux, coûts de marketing local.

Vente d'œufs frais, abonnements pour des livraisons hebdomadaires, événements culinaires payants.

Un Business Model Canvas pour un élevage de poules de race ancienne

Associations de conservation des races anciennes, vétérinaires spécialisés, fournisseurs de grains spécifiques, musées agricoles.

Élevage de poules de race ancienne, préservation des races, production d'œufs et de viande de qualité, organisation d'ateliers éducatifs.

Préserver le patrimoine génétique avicole tout en offrant des produits de haute qualité et uniques.

Éducation sur l'importance des races anciennes, visites guidées de l'élevage, programmes de parrainage de poules de race.

Site web, réseaux sociaux, foires agricoles, partenariats avec des musées et des écoles.

Amateurs de patrimoine et de biodiversité, chefs cuisiniers à la recherche de produits uniques, familles intéressées par l'éducation agricole.

Coûts de conservation des races, soins vétérinaires spécialisés, alimentation spécifique, coûts d'organisation d'ateliers et d'événements.

Vente d'œufs et de viande de race ancienne, visites et ateliers payants, parrainages de poules.

Un Business Model Canvas vierge à télécharger gratuitement

Si vous ne souhaitez pas modifier le Business Model Canvas de notre business plan, vous pouvez télécharger celui-ci et la remplir avec vos propres éléments.

Bonne utilisation du Business Model Canvas et bon business plan !

business model canvas vierge

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