livestock production business plan

How to Start Livestock Farming: A Comprehensive Guide

Livestock farming, also known as animal husbandry, is a crucial component of the agricultural industry. It involves raising domesticated animals for various purposes, including meat, dairy, eggs, fiber, and other animal-derived products.

Whether you’re a seasoned farmer looking to diversify your operations or a novice seeking to embark on a new agricultural endeavor, this blog post guide will provide you with valuable insights and practical steps to help you navigate the journey of starting a successful livestock farming business.

Understanding the Livestock Farming Industry

Familiarizing yourself with these regulations will help you make informed decisions and ensure compliance from the outset.

Determining Your Livestock Farming Goals

Answering these questions will help you determine the type of livestock you should raise, the scale of your operation, and the resources required. It’s also essential to consider your personal interests, skills, and resources, as well as the market demand in your area.

Conducting Market Research

Selecting the right livestock, developing a livestock farming business plan, 1. executive summary.

Provide a concise overview of your livestock farming business, including your mission, objectives, and unique selling proposition.

2. Market Analysis

3. operational plan, 4. marketing and sales strategy, 5. financial projections, 6. management and organization.

Describe the management team and their respective roles and responsibilities, as well as any additional staffing needs.

7. Risk Management

Securing necessary licenses and permits.

Livestock farming operations are subject to various regulations and laws, which may vary depending on your location. Before starting your farm, research and obtain the necessary licenses and permits, such as:

Financing Your Livestock Farming Business

Starting a livestock farming business requires significant upfront investment in land, infrastructure, equipment, and livestock. Consider the following financing options:

Implementing Best Practices for Livestock Farming

1. animal welfare, 2. biosecurity.

Implement strict biosecurity measures to prevent the introduction and spread of diseases on your farm. This includes proper sanitation, quarantine procedures, and controlling access to your livestock facilities.

3. Sustainable Practices

4. record-keeping, 5. continuous learning and improvement.

Stay up-to-date with the latest research, best practices, and technological advancements in livestock farming. Seek educational opportunities, attend workshops or conferences, and collaborate with other farmers to continuously improve your operations.

Marketing and Sales Strategies

Embracing technology and innovation, building a strong support network.

Starting and running a successful livestock farming operation can be challenging, especially for new farmers. Building a strong support network can provide invaluable guidance, resources, and opportunities for collaboration. Consider the following:

By building a strong support network, you can leverage the collective knowledge and resources of the livestock farming community, which can be invaluable for overcoming challenges and achieving long-term success.

Preparing for Challenges and Contingencies

Key metrics and performance indicators.

Starting a livestock farming business is a rewarding but challenging endeavor that requires careful planning, dedication, and a commitment to best practices. By following the steps outlined in this comprehensive guide, you can navigate the process of establishing a successful livestock farming operation.

Cattle Farming Business Plan Template

Written by Dave Lavinsky

Cattle Farming Business Plan

You’ve come to the right place to create your Cattle 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 cattle farms.

Below is a template to help you create each section of your Cattle Farm business plan.

Executive Summary

Business overview.

Pleasant Hill Cattle Farm, located in Des Moines, Iowa, is a registered and licensed cattle farming company. The company operates a 500 acre farm that is home to over 300 cows, all of which are raised in an all-natural environment (no antibiotics, hormones, steroids, etc) and all animals are grass-fed. Pleasant Hill Cattle Farm is also fully equipped with the latest technology and equipment used in the cattle farming industry.

Pleasant Hill Cattle Farm is founded and run by Matthew Jones. Matthew has been a cattle farm operations manager for the past ten years, so he has in-depth knowledge and experience running a business in this industry. Matthew will run the general operations and administrative functions of the company and hire other employees to manage the sales and day-to-day operations.

Product Offering

Pleasant Hill Cattle Farm will be involved in the commercial breeding of cows to provide the following products:

• Ground Beef

Customer Focus

Pleasant Hill Cattle Farm will target all residents living in Des Moines, Iowa and the surrounding areas. We will also target supermarkets, restaurants, and other retailers who are interested in selling our products to the public.

Management Team

Pleasant Hill Cattle Farm’s most valuable asset is the expertise and experience of its founder, Matthew Jones. Matthew has been a cattle farm operations manager for the past ten years, so he has in-depth knowledge and experience running a business in this industry. Matthew will run the general operations and administrative functions of the company and hire other employees to manage the sales and day-to-day operations.

Success Factors

Pleasant Hill Cattle Farm will be able to achieve success by offering the following competitive advantages:

• Management: The company’s management team has years of business and marketing experience that allows them to market and serve customers in an improved and sophisticated manner than the competitors.
• Relationships: Having lived in the community for 20 years, Matthew Jones knows all of the local leaders, media, and other influencers. As such, it will be relatively easy for Pleasant Hill Cattle Farm to build brand awareness and an initial customer base.
• Quality products at affordable pricing: The company will provide quality products at affordable pricing, as it has high-quality equipment and uses the latest techniques.
• Good packaging: Pleasant Hill Cattle Farm will utilize product-oriented packaging materials that can reduce the damage in the products at the time of supply.

Financial Highlights

Pleasant Hill Cattle Farm is currently seeking $750,000 to start the company. The funding will be dedicated towards securing the farm land and purchasing the necessary equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff and marketing costs for the farm. The breakout of the funding is below:

• Land and Equipment: $250,000
• Cattle Care Supplies: $100,000
• Overhead Costs: $100,000
• 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 Pleasant Hill Cattle Farm.

Company Overview

Who is pleasant hill cattle farm.

  Pleasant Hill Cattle Farm is founded and run by Matthew Jones. Matthew has been a cattle farm operations manager for the past ten years, so he has in-depth knowledge and experience running a business in this industry. Matthew will run the general operations and administrative functions of the company and hire other employees to manage the sales and day-to-day operations.

Pleasant Hill Cattle Farm History

Matthew Jones is an entrepreneur who seeks to contribute to the growing US economy through cattle farming. Pleasant Hill Cattle Farm will become a recognized cattle farming company in Des Moines, Iowa, ensuring a continuous supply of cattle, milk, meat, and other dairy products.

Matthew 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 cattle farm.

Since incorporation, the company has achieved the following milestones:

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

Pleasant Hill Cattle Farm Services

Industry analysis.

Pleasant Hill Cattle Farm competes against large-scale cattle farmers in the U.S. With the largest fed-cattle industry in the world, the United States is also the world’s largest producer of beef, primarily high-quality, grain-fed beef for domestic and export use. According to the USDA, beef cattle production in the US is one of the largest agricultural industries, making up 17% of the agricultural sector. Though the industry has declined slightly in the past few years, the market size of the Beef Cattle Production industry is expected to increase by 4.5% over the next five years.

Improving the living standards of the people in the country has resulted in a shift in meat preferences, with most choosing beef-based products rather than products derived from pork and chicken. This trend has helped increase revenues and allowed the industry to grow. However, the beef cattle production industry faces many challenges including droughts, the price of feed, and the increasing popularity of plant-based diets.

Customer Analysis

Demographic profile of target market.

Pleasant Hill Cattle Farm will primarily serve local residents and retailers of cattle dairy products and meat within a 30-mile radius of the farm. These businesses typically gross from $5 million to $10 million in annual revenues and source their supplies from within a 30-mile radius of their facilities.

The precise demographics for Des Moines, Iowa are:

Customer Segmentation

Pleasant Hill Cattle Farm will primarily target the following customer profiles:

• Grocery Stores
• Local Residents

Competitive Analysis

Direct and indirect competitors.

Pleasant Hill Cattle Farm will face competition from other companies with similar business profiles. A description of each competitor company is below.

Shayla Farms

Shayla Farms is one of the large-scale cattle farms in the US, owning an 8,000 ha area. It has well-established relationships with local retailers. It has been in business for 32 years. Shayla Farms offers good quality dairy products and meat. It also has automated equipment and machines, which helps in improving its operations. Moreover, it is also known for delivering large orders at the right time without delay.

Crimson Cattle Farm

Crimson Cattle Farm has been operating since 1995 and is a well-known company that provides good quality beef with affordable pricing as it has effective and efficient cattle rearing machines. It majorly targets local companies and retailers and has a large distribution network that can serve customers up to a 500-mile radius. Crimson Cattle Farm also has a very effective distribution and supply chain network. However, Crimson Cattle Farm’s offerings are only limited to beef.

Cattle USA has been in business for the past 50 years and enjoys great success. It is one of the largest beef producers in the 200-mile area. It easily caters to local residents primarily due to its prime location. It provides beef and a variety of dairy products including: cheese, yogurt, meat and milk.

Competitive Advantage

Pleasant Hill Cattle Farm will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

Pleasant Hill Cattle Farm will offer the unique value proposition to its clientele:

• Efficient and effective delivery network
• Good packaging
• Quality products at affordable pricing
• Providing excellent customer service and customer experiences

Promotions Strategy

The promotions strategy for Pleasant Hill Cattle Farm 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 cows and creating educational content about the cattle farm industry.

Website/SEO

Pleasant Hill Cattle Farm will develop a professional website that showcases pictures of the farm and the cows. 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

Matthew Jones has built up an extensive list of contacts over the years by living and working in the midwestern farming industry. Since a number of local cattle farms have ceased operations, they have committed to Matthew that Pleasant Hill Cattle Farm will be their cattle supplier. They trust his work ethic and commitment to the local community.

Pleasant Hill Cattle Farm will highlight our location, cows, and products on a major billboard facing the busiest highway in town. The billboard will provide the location of Pleasant Hill Cattle Farm and the website URL.

Pleasant Hill Cattle Farm’s 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

Operation Functions: The following will be the operations plan for Pleasant Hill Cattle Farm.

• Matthew Jones will be the Owner and President of the company. He will oversee all staff and manage client relations. Matthew has spent the past year recruiting the following staff:
• Sue Smith – will oversee all administrative aspects of running the cattle farm. This will include bookkeeping, tax payments, and payroll of the staff.
• George Baird– Head Farmhand who will oversee the farming staff and day to day operations.
• Ben Brown– Assistant Farmhand who will assist George.
• Frank White– Distribution Manager who will oversee the packaging and distribution of all products.

Milestones:

Pleasant Hill Cattle Farm will have the following milestones complete in the next six months.

• 6/202X – Finalize purchase of farm land
• 7/202X – Purchase farm equipment, supplies and materials
• 8/202X – Finalize contracts for grocery store, chain, and restaurant clients
• 9/202X – Purchase initial set of cows
• 10/202X – Hire and train farm staff
• 11/202X – Pleasant Hill Cattle Farm begins farm operations

Financial Plan

Key revenue & costs.

Pleasant Hill Cattle Farm’s revenues will come from the sales of cattle 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 Pleasant Hill Cattle Farm to hire experienced workers. In the initial years, the company’s marketing spend 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 in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

• Number of Cows: 300
• Average Revenue per Animal: $500
• Number of Products Sold Per Year: 100,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Cattle Farming Business Plan FAQs

What is a cattle farming business plan.

A cattle farming business plan is a plan to start and/or grow your cattle 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 Cattle Farming business plan using our Cattle Farming Business Plan Template here .

What are the Main Types of Cattle Farming Businesses?

There are a number of different kinds of cattle farming businesses , some examples include: Cow-calf, Backgrounding, Finishing, and Specific Breed.

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

Cattle 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 Cattle Farming Business?

Starting a cattle 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 Cattle Farming Business Plan - The first step in starting a business is to create a detailed cattle 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 cattle 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 cattle farming business is in compliance with local laws.

3. Register Your Cattle Farming Business - Once you have chosen a legal structure, the next step is to register your cattle 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 cattle 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 Cattle Farming Equipment & Supplies - In order to start your cattle 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 cattle 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. 

Learn more about how to start a successful cattle farming business:

• How to Start a Cattle Farm Business

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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 384,561 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.

• 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

• 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.

• 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.

• 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

• 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.

Community Q&A

• 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

• 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

• ↑ 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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Cattle Farm Business Plan Template

Written by Dave Lavinsky

Cattle Farm Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their cattle farms. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a cattle farm business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Cattle Farm Business Plan?

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

Why You Need a Business Plan for a Cattle Farm

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

Sources of Funding for Cattle Farms

With regards to funding, the main sources of funding for a cattle farm are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for cattle farms.

    Finish Your Business Plan Today!

How to write a business plan for a cattle farm.

If you want to start a cattle farm or expand your current one, you need a business plan. The example guide below details the necessary information for how to write each essential component of your cattle farming business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of cattle farm you are running and the status. For example, are you a startup, do you have a cattle farm that you would like to grow, or are you operating a chain of cattle farms?

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

• Give a brief overview of the cattle farm industry.
• Discuss the type of cattle farm you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of cattle farm you are operating.

For example, you might specialize in one of the following types of cattle farms:

• Cow-calf: This type of cattle farming involves using mature cattle to breed calves that are then sold to producers.
• Backgrounding: This type of cattle farming involves growing feeder cattle that can be sold to producers once they reach a certain weight or age.
• Finishing: This type of cattle farming involves harvesting cattle to weight in a feedlot, readying them for sale to market.
• Specific Breed: This type of cattle farming specializes in breeding specific types of cattle such as Angus or Hereford.

In addition to explaining the type of cattle farm you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, the amount of meat sold, reaching $X amount in revenue, etc.
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the cattle farm industry. While this may seem unnecessary, it serves multiple purposes.

First, researching the cattle farm industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your cattle farming business plan:

• How big is the cattle farm industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your cattle farm? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your cattle farm business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of cattle farm you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other cattle farms.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other types of meat farms such as poultry, fish, or pork farms, and meat alternative suppliers. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of cattle farming business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you make it easier for your customers to acquire your product?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a cattle farm business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of cattle farm company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide live cattle, meat, or dairy products?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your cattle farm company. Document where your company is situated and mention how the site will impact your success. For example, is your cattle farm located near a city, in a rural area, or adjacent to other farms? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your cattle farm marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in industry publications and networking events
• Reach out to local meat buyers
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your cattle farm, including answering calls, feeding and caring for cattle, scheduling employees, billing customers and collecting payments, etc.

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

Management Team

To demonstrate your cattle farm’s potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing cattle farms. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a cattle farm or running a small cattle breeding operation.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will your farm have 100 cattle on average and will 20% of your cattle be ready for sale every year? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your cattle farm business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a cattle farm:

• Cost of farming equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your farm lease or information about the type of cattle on your farm.

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

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Other Helpful Business Plan Articles & Templates

How To Start Livestock Farming Business [PLAN]

Livestock farming business startup guide.

Do you want a business plan for farming and raising livestock? Here is what you need to know as you kick start your livestock farm.

Business plans are what lies between one’s business resources and business revenues. An excellent plan transforms a business idea into possible results using an actionable roadmap.

In simple words, a business plan acts as a guide to lead your business into the goals you want to achieve. Don’t get absorbed into thinking that a good plan must be officially documented, or contain a complex strategy; you can keep it more straightforward and still get results.

Here are some business plans for starting a livestock farm.

• Cattle farming business plan
• Pig farming business plan
• Dairy farming business plan
• Goat farming business plan
• Rabbit farming business plan
• Horse breeding business plan
• Calf operations business plan

The most common challenge to livestock farmers is earning a high income from their farming business. This challenge is not only confounded to small-scale farmers with relatively low resources but also to large-scale farmers who have the needed funds even to hire professional business managers.

READ: HOW TO BECOME A LIVESTOCK FEED DISTRIBUTOR

In some cases, your business revenue can continuously decrease over some time that you might decide to quit your business as well. These are the times when a good plan can act as your turning point.

HOW TO WRITE A LIVESTOCK FARMING BUSINESS PLAN

Even though you can farm livestock for non-profit purposes, many business experts advocate livestock farming for business. Imagine tapping into lucrative areas like dairy farming, poultry farming, aquafarming, and rabbit farming to supplement your income.

Better still, other areas like snails farming to earn money. To large-scale farmers, it is by default that you are yearning to learn what a good plan comprises. If you are a starter, this article also covers you to ensure you reap profits from your business.

A typical business plan takes any of these forms:

• One-page Plan: This is a plan that is short, simple, and clear to the point. Meant for you alone.
• Internal Plan : Meant for your workforce/employees.
• An External Plan: This is intended for people outside your business, possibly, potential investors or financiers.

How Will a Business Plan for My Livestock Farming Help Me?

If you are still puzzled upon whether to use a business plan for your livestock farming, then below are the various ways you will benefit when using a business plan:

• It is difficult to accomplish goals using a virtual roadmap. You can document and keep your paper for tracing your goals every day
• Helps understand your business better by recording your workforce, services, market demand, and so on.
• Gives you the chance to set achievable milestones, rather than focusing on a general goal
• You have an opportunity to analyze your strategies and use what works
• Comparison between your plan and results to make a result-centered plan.

Components of an Excellent Livestock Farming Business Plan

If you have ever found yourself jotting down points relating to what you want for your business, then you did a business plan. But, a good plan does not only entail writing down your ideas. It involves aspects that are tailored to your business. Thus, it is essential to understand your business and your market before crafting your business plan.

The first component should be a summary of your mission , business resources , and vision statement.  This introductory part is known as an executive summary , and it needs to be personalized for your business. For instance, use “we” or “I” but not “you”.

Talk about:

• Location of your business depending on the market.
• What your business entails. Is it dairy farming? Do you want to keep cattle for beef, and which breed?
• How do you want to run the business? Is it through hired experts? Do you have employees, and what is the role of your employee(s) in your company?

Your plan should have a target market  and the market advantage  you have over your competitors. As an example, state something like, “ Our business will be located in the Lower Desert Region. Because the regions demand fresh daily milk, our workforce will be provided with quality working conditions to discharge their tasks efficiently .”

How will you get revenue? Describe your projection for your business revenue source. For instance, do you intend to generate revenue from actual sales of your livestock, or by selling livestock products?

You should also describe the sales projection of your business from past revenues. You can state the amount earned in the three previous years to understand what can be earned from your business.

Your business plan for livestock farming should also have the marketing  and advertising strategies you intend to use. This strategy enables you to budget well.

It is relevant noting that even though an excellent business plan is a roadmap to achieving your goals, the plan should be unique. This is critical when using an external business plan with the sole aim of getting some external funding or lure investors.

The last thing every investor wants is a boring pitch that is repeated over and over. So, use your livestock business plan to detail as much information as possible that best describe your services.

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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 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

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.

Guide On Livestock Farming Business Plan

Setting up a successful livestock farming business requires you to plan and develop a well thought out business plan. Whether you are rearing cattle for meat or dairy, ducks, goats or pigs, livestock farming can be a lucrative business idea. There are many factors that you need to consider when drafting your livestock business plan. These include the market, your finances and risks among other issues. In fact, a livestock business plan has the same components of any other business plan. The only difference is that your business plan is specifically tailored towards rearing animals.

Importance Of Planning

Developing a business plan for your livestock business is critical because it will help you work out how you can achieve your goals, anticipate risks and ways to reduce them as well as determine if there is any extra support that may be required. A business plan can also help you think about how you can make any adjustments or changes to your business model if the need arises.

Types of Livestock Business Plans

There are several kinds of livestock business plans that include:

• Cattle Fattening Business Plan
• Pig Farming Business Plan
• Rabbit Farming Business Plan
• Goat Farming Business Plan
• Dairy Farming Business Plan
• Sheep Farming Business Plan
• Beef Cattle Farming Business Plan
• Mixed Livestock Farming Business Plan

Vision Goals and Objectives

Just like any other business plan, a livestock farming business should have a clear vision, long term goals and short term goals in addition to your objectives. It is important therefore to think about where you want your livestock business to be in the next 5 years or so. Your long term and short term goals will assist you in mapping out what you need to do in order to get where you want to be. In addition, it is important that your goals are time bound, specific, measurable and realistic for you to have an effective business plan.

The next thing after writing out your vision and objectives is writing a summary of your current operations if you have been in the livestock business already. If this will be a start-up you can include information about the farm, where it is located and the amount of space which is available for the project. The information about the specific animals you want to rear should also be included in this section. Such information is necessary especially if you want to present the livestock business plan to investors for funding. You can also add a bit of information about your skills and experience as well the profiles of other business partners if there are any.

Overall Strategic Plan

This section has more detail and requires you to do a lot of research. The strategic plan talks about how you intend on achieving the goals and objectives of your livestock business plan. This section includes your operational plan, sales and marketing plan as well as your financial plan. An industry analysis is critical for you to develop an effective business strategy. You must also study the agricultural market in order to understand the market conditions in which you will operate. You must know who your major competitors are to know what you are up against. Market research is also essential to determine whether or not there are potential buyers for your product. Whether you specialise in rearing one specific animal or diversify your offerings you must know if there is a market for your produce. By studying the industry and agriculture market you can find out if your livestock business will be profitable or not. Also, you can determine earlier on whether you need to change course based on market conditions.

An Internal And External Analysis

After drafting your business strategy the next step would be to conduct an analysis where you can describe what your competitive advantage is and where your weakness lies. Consider doing a strengths, weaknesses, opportunities and threats assessment (SWOT Analysis). That way you can assess what your strengths are and how you can leverage them. You can also determine how you can optimise on any opportunities that may be present in the market. Assessing your weaknesses and threats can also help you see areas which may need improvement. Conducting an internal business analysis will help you determine what you should focus on improving whilst an external business analysis will direct you towards opportunities that you can profit from as well as prepare you for any threats.

Risk Assessment

In Agriculture risks can make or break your business. There are many risks that farmers, including livestock farmers should always prepare for. These risks include production risks, price or market risks, financial risks, as well as personal risks to name a few. A risk analysis will help you prepare for events such as diseases that may negatively affect your livestock production. You should always budget for extra funds in the event that your costs increase due to emergencies, a sudden increase in operational costs or any other activity that can drain your budget.  A lot of farmers do not take price risks into consideration when they draft their business plan. To avoid making losses you should plan for all kinds of scenarios when it comes to the selling price of your produce. Always have a contingency plan in the event that your produce sells below your expected average selling price in order to reduce or to avoid making losses. Other risks involved in livestock production that you must also consider include accidents with workers or health related issues that may reduce productivity at your farm.

Tips for Developing  A Livestock Business Plan

When developing your livestock business plan or any other business plan in general do not be afraid of aiming high. Make use of the planning phase and consider various options and farming models. Also take time to break down each business plan section and think it through. Ensure that you allocate all the time you need since a lot of research needs to be done. Understand that developing a business plan is not a one time thing but an ongoing process. Make sure that you consider all your available resources and plan for extra support in case you need it. Take time to gather information from other successful livestock farmers for guidance too.

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LIVESTOCK FARMING – FREE BUSINESS PLAN TEMPLATE

• Post author: Ane
• Post published: March 11, 2017
• Post category: BUSINESS-PLAN-AND-FEASIBILITY-STUDY / Business Tips / Update
• Post comments: 0 Comments

Animal Husbandry

Table of Contents

Factory Farming:

Veterinarians – You will need to have appointment with a veterinary Doctors near you for periodic check-up and vaccination.

FREE BUSINESS PLAN TEMPLATE

Other livestock farming.

For LIVESTOCK FARMING – FREE BUSINESS PLAN TEMPLATE,  do you desire a functioning business plan with financial projections for startups and competitive analysis in business plan. These are only obtainable from Completefmc.com. There are various types of lean startup business plan, medium scale and large scale business plans. So, you can have your transportation business plan, dropshipping business plan, salon business plan examples and cleaning business plan. Then there are liquor store business plan and microgreens business plan for investors. Contact us on [email protected] or +234 8034347851

Deacon Anekperechi Nworgu, a seasoned economist who transitioned into a chartered accountant, auditor, tax practitioner, and business consultant, brings with him a wealth of industry expertise spanning over 37 years.

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How to Develop a Comprehensive Business Plan for Feed Production

By henry sheykin, get full bundle.

Are you thinking about starting a livestock feed production business? You're in the right place. Livestock feed production is a booming industry, projected to reach $537.5 billion by 2027 . With an increasing demand for animal-based foods, this market is showing no signs of slowing down.

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However, starting a successful business in this industry requires careful planning and execution. In this article, we'll provide you with a 9-step checklist for writing a business plan for your livestock feed production business , ensuring you have everything you need to launch your dream business.

From conducting market research to determining your staffing needs, this checklist will guide you through the essential steps of starting a successful livestock feed production business. Read on to discover how to turn your business idea into a profitable reality.

Conduct Market Research

Before starting any business, it is important to conduct thorough market research to gain insights into industry trends, consumer preferences, and potential market opportunities. In the case of livestock feed production, market research will help you identify the demand for your product, market gaps to be filled, and potential competitors in the industry.

Here are some key steps to conduct market research for livestock feed production:

• Use a combination of primary and secondary research methods to gather information.
• Engage with potential customers and distributors to gather their feedback and preferences.
• Attend industry events and tradeshows for networking opportunities and to learn about market trends.

Define your target audience: Identify the types of livestock that are commonly raised in your area and the specific nutritional requirements of each animal. This information will help you create customized feed formulations that cater to the specific needs of each animal. Additionally, identify the types of farmers or livestock owners who are likely to purchase your feed products and the geographic areas where your products are likely to be sold.

Assess industry trends: Study the latest trends and innovations in the livestock feed industry. This includes new feed formulations, packaging, and delivery methods. Assess the impact of technology on the industry, such as precision feeding systems and automated feeders.

Analyze competitors: Identify the major livestock feed producers in your area, their product offerings, pricing strategies, and market share. Analyze their strengths and weaknesses and find ways to differentiate your products from theirs.

Understand demand and pricing: Determine the demand for livestock feed in your area, including the current and projected market size. Assess the pricing strategies of your competitors and determine the most appropriate price points for your products.

By conducting thorough market research, you will be able to develop a comprehensive business plan for your livestock feed production business that takes into account the needs of your target audience, industry trends, and competitive landscape.

Define Target Audience And Industry Trends

Before starting a livestock feed production business, it is important to define the target audience and understand the industry trends. Knowing your target audience and their needs will help you to create a product that meets their requirements.

The target audience for a livestock feed production business includes farmers, ranchers, dairy farms, and livestock owners who are looking for a reliable and safe source of feed for their animals. Understanding the specific needs of each target audience is crucial for developing and marketing a successful product.

Here are some tips to define your target audience:

• Research and analyze the demographics of your target audience, such as age, income, and location.
• Consider the type of livestock and their needs, such as cattle, sheep, goats, chickens, pigs, and horses.
• Find out the current market demand and supply trends in your target audience.
• Attend livestock and farming industry events and shows to network and learn more about your target audience.

Industry trends can also have a significant impact on the success of a livestock feed production business. Staying up-to-date on market trends and changes can help you to anticipate the needs of your target audience and remain competitive in the market.

Some current industry trends in livestock feed production include:

• The increasing demand for natural and organic feed
• The rising awareness of the importance of animal nutrition and its impact on animal health and productivity
• The growing popularity of custom-made feed for specific types of animals
• The trend towards locally sourced, sustainable, and traceable ingredients

Understanding industry trends provides an opportunity to adapt and evolve, making necessary changes to keep your business relevant and competitive.

In conclusion, defining your target audience and understanding industry trends is crucial for a successful livestock feed production business. Identifying the needs and desires of your target audience allows you to create a product that meets their requirements and provides value to their business. Industry trends should also be considered to stay relevant and adaptable in a constantly changing market.

Analyze Competitors

After conducting market research and defining your target audience, analyzing competitors is a crucial step in developing a successful business plan for livestock feed production. Understanding your competition is essential in determining how to position your products in the market and creating a unique value proposition to attract customers.

Begin by identifying your competitors . Look for feed production companies that cater to the same livestock animals as yours. Identify their pricing, product range, and distribution channels. Analyze their strengths and weaknesses, such as product quality, customer support, and marketing strategies. You can gather information by observing their social media presence, visiting their website, or making a purchase to experience their product firsthand.

SWOT analysis is a useful tool in analyzing competitors. It helps identify your competitors' strengths, weaknesses, opportunities, and threats. Create a table and list your competitors' details under each category. By doing this, you can position your products better in the market, identify areas for improvement, and capitalize on opportunities.

• Find out what your competitors' customers are saying about their products and customer service by visiting online reviews sites or social media.
• Identify products that are not being offered by your competitors, and consider offering them in your product lineup.
• Learn from your competitors' mistakes and avoid them in your business operations.

After analyzing your competitors, you should be able to position your products against them. Determine how your products differ from your competitors' products. What unique characteristics will convince customers to choose your products over your competitors'? Think about your pricing, product features, and marketing strategy. Use this information to create a competitive advantage and attract customers.

Now that you have analyzed your competitors, you can use this information to create a strategic plan that will help your livestock feed production business stand out in the market.

Determine Financial Requirements

Running a successful livestock feed production business requires proper financial planning. It is essential to determine the financial requirements for the business beforehand to ensure smooth operations and sustained growth. Here is a checklist to help you determine financial requirements for your livestock feed production business:

• Start-up Costs: Identify the initial costs required to set up the business. These may include equipment, licenses, permits, legal fees, and insurance. Research prices and factor in potential price hikes to create a realistic budget.
• Capital: Determine the required capital to launch and finance the business for at least six months. It's recommended to keep a surplus for unforeseen expenses and emergencies.
• Operating Expenses: Calculate the cost of running the business daily. This includes raw materials, labor, transportation, rent, utilities, and marketing expenses. Be sure to plan for expenses and cut down unnecessary costs.
• Revenue Projections: Develop a tangible revenue projection plan with accurate financial estimates and sales targets for the first year. Consider factors like potential market share and pricing strategy to determine realistic earnings.
• Break-Even Point: Determine the break-even point, whereby the revenue equals the cost of running the business. This point gives a benchmark for when the business will make a profit and can help identify areas that need improvement.
• Profit Margins: Determine how much money the business will make from each livestock feed product. Using this information, calculate the expected profit margin for each product, which will help in setting reasonable prices to achieve sustainable growth.
• Consult with a financial advisor to get more insights on the financial requirements and financial management of the business.
• Prepare a detailed financial report to share with potential investors and lenders, providing them with accurate insights into the business's growth potential.
• Be sure to budget for inventory inaccuracies and unplanned expenses that may occur from time to time.

With a comprehensive understanding of your financial requirements , it will be easier to set attainable finance-related goals, allocate resources to critical areas, and plan for sustainable growth. Keep in mind that running a successful livestock feed production business demands discipline, innovation, and the right financial approach.

Identify Potential Suppliers

One essential aspect of starting a profitable livestock feed production business is identifying the right suppliers for the raw materials you need to produce your feed. Livestock feed ingredients can be sourced from a wide variety of suppliers, such as local farmers and dairies, grain traders, and feed mills. Here are some important steps to take to identify the right suppliers for your feed ingredients:

• Conduct thorough research on potential suppliers
• Look for suppliers that can provide high-quality feed ingredients at reasonable prices
• Take into consideration the proximity of supplier's location to your production facility
• Ensure suppliers meet regulatory requirements for safety and quality
• Establish strong relationships with your suppliers to ensure a steady supply of quality ingredients
• Get references from other livestock feed producers and farmers in your area to find reliable suppliers
• Consider partnering with a few select suppliers to establish long-term relationships and secure better deals
• Before signing any contracts, conduct a thorough assessment of each supplier's quality control processes and ability to meet your needs

Once you identify potential suppliers, it's important to establish clear communication and expectations with them. This includes setting quality standards, delivery schedules, and payment terms. Doing so can help prevent any surprises or misunderstandings in the future.

As with any business relationship, it's also important to maintain open communication with suppliers. This means keeping them informed about your production needs and any changes that may impact their ability to fulfill your orders. Ultimately, building a strong network of reliable suppliers is essential to the success of your livestock feed production business.

Assess Regulatory Requirements

When starting a livestock feed production business, it is crucial to understand and comply with all relevant regulations and laws. This step involves researching and understanding the permits and licenses required to operate the business, as well as any safety and health regulations related to feed production.

Here are some important regulatory requirements to consider:

• Food Safety Modernization Act (FSMA): compliance with FSMA is necessary to ensure the safety of the feed and prevent contamination. This requires meeting and maintaining specific standards for manufacturing, packaging, and storing feed.
• Good Manufacturing Practices (GMPs): GMPs ensure that production processes are clean, safe, and efficient. These practices involve maintaining a sanitary environment, managing inventory properly, and operating quality control protocols.
• Environmental regulations: operating a livestock feed production facility may require obtaining permits related to waste management and air and water quality control. It's important to research your state and local regulations to ensure compliance.
• Licensing and permits: depending on your location, you may need specific licenses and permits to operate your business. This could include permits for food manufacturing and distribution, zoning permits, and business licenses.
• Seek advice from regulatory compliance consultants to ensure complete compliance with applicable regulations.
• Develop and implement a comprehensive Hazard Analysis and Critical Control Points (HACCP) plan to ensure food safety and prevent contamination.
• Regularly review and update compliance protocols to ensure continued compliance with regulatory requirements.

By assessing and meeting regulatory requirements, you can build a strong foundation for your livestock feed production business. Understanding and complying with regulations also helps build customer trust and confidence in your products, ensuring long-term success and profitability.

Create A Marketing Strategy

Marketing is an essential component of any business plan as it helps to create awareness, attract customers, and build a brand image. When developing a marketing strategy for livestock feed production, it is important to focus on the unique characteristics of the products offered and their benefits to the target audience. Here are some steps to help create a successful marketing strategy.

• Identify the target audience: Determine the age, gender, location, and other psychographic characteristics of the audience. This information will help to create targeted marketing messages and campaigns.
• Key messaging: Develop key messages that represent the business, the products, and their benefits. These messages should be concise, memorable, and resonate with the target audience.
• Choose the right channels: Whether it is social media, print ads, email marketing, or events, it is important to choose the most effective channels to reach the target audience. Use data from market research to determine which channels are most effective.
• Create a budget: Determine how much money can be allocated to marketing activities. Develop a plan that uses cost-effective strategies that are most likely to yield the desired results.
• Track and measure results: Use analytics to determine the effectiveness of marketing campaigns. Make adjustments to the strategy as needed to ensure optimal results.
• Partner with influencers: Partner with popular influencers within the industry and use their voice to promote the business and its products.
• Develop online content: Develop informative and engaging content to post on social media, blogs, and websites that can provide value to the target audience.
• Use testimonials: Share testimonials and reviews from satisfied customers to build trust and credibility.

By following these steps and utilizing the tips provided, you can create an effective marketing strategy that can help to drive the growth of your livestock feed production business. Remember, the key is to focus on the unique features and benefits of the products and find creative ways to engage and attract the target audience.

Develop A Production Process

Once you have identified potential suppliers , assessed regulatory requirements, and determined financial requirements, the next step towards starting a livestock feed production business is to develop a comprehensive production process. A production process outlines the entire production operation, beginning with procuring raw materials through packaging and distribution.

Here are some steps to follow when developing a production process:

• Determine the types of feed to produce: As a livestock feed producer, you need to decide the types of feed to produce and the ingredients required for each type. Identify the nutritional requirements for each animal and create a plan for mixing the ingredients in the right proportions.
• Identify and source raw materials: Create a list of suppliers for each ingredient required and ensure that they meet your quality standards. Establish long-term relationships with your suppliers to ensure the availability of materials when you need them.
• Create a production schedule: Plan when to receive raw materials, when to produce feeds, and when to deliver them. This will depend on the demand for each feed type and the shelf life of each product.
• Ensure consistency and quality control: Set strict quality control measures, including testing each batch before packaging and maintaining production schedules to ensure consistent product quality. This will help you meet your customers' expectations and build a trustworthy brand for your products.
• Establish a packaging and distribution process: Determine the packaging options and sizes and the storage and distribution process. Ensure that your packaging is robust enough to protect the feed during transit and that you deliver your products within the required timeframe.
• Create a standard operating procedure document to help employees follow the production process.
• Ensure that your production process meets industry standards and regulations.
• Consider investing in equipment that will help you produce feeds efficiently and economically.

Developing a production process for your livestock feed production business is crucial to ensuring quality and consistency in your products. Once you have a comprehensive production process in place, it will be easier to manage your operations, reduce costs, and create a sustainable business.

Determine Staffing Needs.

As with any business, determining your staffing needs is crucial for creating a successful livestock feed production company. A well-organized team will ensure that all aspects of the business are handled efficiently, from sourcing ingredients to packaging finished products.

Identify key roles: Start by identifying the key roles necessary to run your business effectively. These roles may include a production manager, sales representative, quality control specialist, and administrative support staff. Consider the size of your business and the workload when determining the number of staff members needed.

• For a small business, it may be necessary for some staff members to fulfill multiple roles.
• Consider hiring a consultant to assist with staffing decisions if needed.

Create job descriptions: Once you have identified the necessary roles, create job descriptions for each position. Include details such as job duties, required skills and experience, and salary range. Job descriptions will not only help attract qualified candidates but will also ensure that all staff members understand their roles within the company.

• Be specific in job descriptions to eliminate any confusion about job duties.
• Include a section on the company culture to attract candidates who align with your values.

Recruit and hire: Utilize job posting websites, local job fairs, and social media to recruit potential candidates. Once you have received applications, conduct interviews and reference checks to ensure that the candidates meet the necessary qualifications. Be sure to consider factors such as personality fit and company culture when making hiring decisions.

• Offer competitive salaries and benefits to attract top talent.
• Consider offering training programs to ensure that all staff members have the necessary skills to perform their roles effectively.

Continually evaluate staffing needs: As your business grows and changes, continually evaluate your staffing needs. Consider factors such as workload and employee turnover when making staffing decisions. Regularly assess whether your team is effectively handling all aspects of the business or if additional staff members are needed to increase efficiency.

• Encourage open communication with staff members to ensure that any staffing issues are promptly addressed.
• Consider outsourcing certain tasks if it makes sense for your business.

In conclusion, creating a business plan for livestock feed production requires thorough research and analysis. By following the nine steps outlined in this checklist, you can ensure that your business is strategically planned and ready for success. With a focus on sourcing quality ingredients, providing tailored feed options, and offering supplements and feeding recommendations, your livestock feed production business can become a valuable resource for local farmers and the broader agricultural community.

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Production and Management

In the beef production industry, productivity and sustainability are among the main objectives of successful beef cattle management. Facilities, health, nutrition, breeds, reproduction, and marketing are some of the factors underlying profitable cattle-raising operations.

On this site, you will learn in detail all there is to know about managing a beef cattle herd.

Beef Production and Cattle Management

Keeping your herd healthy is especially important to any management operation. Key practices include maintaining adequate cattle nutrition , investing in vaccinations, and decreasing stress on the herd. To further improve herd profitability , it’s essential to make efficient use of on-farm resources, such as land, feed, and facilities.

If you’re new to the cattle-raising business or want to refresh your knowledge and skills, you may find Penn State Extension’s Beef Production and Management course helpful. The online course will discuss topics such as beef production basics, breed characteristics, animal health , beef cattle reproduction, product marketing, and financial planning.

Raising a Small-Scale Beef Cattle

Before starting a beef herd , you need to select the type of operations you’d like to run. The most popular options are cow-calf, backgrounding, and feedlots.

With a cow-calf operation , your herd serves the purpose of producing and weaning calves. Backgrounding cattle operations purchase the calves and raise them until they reach approximately 900 pounds. A feedlot will then buy the weaned/backgrounded calves and feed them to their final weight.

Beef Cattle Types

Choosing a beef cattle type is an essential part of setting up your operation. If you wish to run a cow-calf operation, you’ll also need to decide whether you want to raise purebred or commercial cattle.

Keep in mind that purebred animals must be registered with a beef cattle association and calves are often sold for breeding purposes . Commercial cattle don’t require registration, are primarily raised for meat and can be crossbred.

Some of the most popular breeds in the US include Black Angus, Hereford, Limousin, and Charolais. Once you’ve selected a breed, building a reproductive plan should be your next step.

Grain-Fed and Grass-Fed Beef Production

In the cattle-raising world, beef production is roughly separated into grass-fed and grain-fed programs . Before you get into the business, however, it might be worth familiarizing yourself with the terms grass-finished and grain-finished, as well.

Generally speaking, grass-fed beef is meat from cows raised on forages. Bear in mind that this may be different from grass-finished beef. With grass-finishing, cattle are fed grains during the backgrounding phase and forage during the finishing period.

In a grain-fed system, beef producers opt for feeds combined with grains. Cattle are fed grains from weaning to harvest, though they may also be fed pastures for up to six months before entering the feedlot phase.

Find the Right Beef Cattle Production Educational Resources

Overall, it’s important to remember that beef is a good source of high-quality protein, iron, zinc, and a number of important vitamins. Grass-fed beef contains slightly higher amounts of certain antioxidants; however, both grass- and grain-fed beef are highly concentrated sources of nutrients.

Starting a beef herd can be a challenging process if you’re new to raising cattle. Penn State Extension’s educational videos, articles, and courses are specially designed to help you build a solid foundation and gather the information you need for running a profitable beef cattle operation.

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• Date Posted

Managing a Key Investment: the Beef Herd Sire

Implants Used in Beef Cattle are Safe and Efficacious

Beef Bulls After Breeding Season

Winter Planning Recommendations

Observing Beef Cattle Pastures and Pens

Crossbreeding Dairy Cattle With Beef Semen

Contract Selling of Feedlot Cattle

Considerations for Finishing Cattle for Beef

Pasture Improvements Can Take Place in the Winter

Survey of Pennsylvania Beef Producers

Raising Calf-Fed Holsteins

Implant Approaches for Feeders

Grass-fed Beef Production

Grass Fed vs. Grain Fed Beef

Cattle Implanting Procedure and Education

Beef Cattle Spacing Requirements

2019 Calf-fed Holstein Demonstration Results

2018 Calf-fed Holstein Demonstration Results

2017 Calf-fed Holstein Demonstration Results

Calculating the Cost of Beef Production

Replacement Heifers: Management Options Benefit Bottom Line

Beef Cow-calf Operation

RFID: How to Apply the Tag

Beef Feeding Operation

Effects of Docility in Beef Cattle

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Livestock Farming Business Plan, Livestock Business Loan

Table of contents, livestock management.

• Livestock farming business plan

Know your business purpose

Find a good location for livestock farming business, proper feeding for livestock animals, stocking rate and grazing capacity, get your livestock equipment, water requirements for livestock farm, providing shelter for livestock, register your business, obtain a loan for livestock farm business, get a nutritionist and veterinarian, scope of livestock farming business.

Introduction to livestock farming business plan: Livestock farming is the rearing of animals for food and other human uses. The word ‘Livestock’ applies mainly to cattle or dairy cows, chickens, goats, pigs, horses, and sheep. Today, even animals such as donkeys, mules, rabbits, and insects such as bees are being raised as part of livestock farming. Basically, livestock products are the main source of animal protein for human consumption.

A step by step guide to livestock farming business plan

Animal farming business or livestock farming business in India is very promising. Livestock farming can be operated from your backyard or as small scale or even on a large scale. Livestock farming represents the only way in which the natural vegetation that covers large parts of India can be converted into protein products that can be used by the human being. It provides draught power and manure to the crop enterprise and this, in turn, could provide feed and fodder.

The usefulness of livestock organs in medicines such as insulin has been understood only recently. Nevertheless, livestock farms have been benefiting us in several ways for ages – they provide us with eggs, honey, meat, and milk, etc. The skins or hides and even hair of these animals have been used to make blankets and other products.

Livestock management mainly involves managing farm animals and supervising farmworkers. Livestock management requires knowledge of animal science and animal husbandry, and also good business sense. Many livestock managers should also keep financial records for their operations. Depending on the farm size, managers may perform some physical tasks like operating and maintaining machinery, as well as personally attending to the livestock. Dairy farms, cattle ranches, swine operations, and poultry farms all need effective livestock management to be successful and profitable.

Livestock farming b usiness plan

Livestock farming is merged with producing crops, though some farmers do focus on livestock farming only, to enable them to have the opportunity to major on 1 or 2 livestock animals. These animals contain sheep, chickens, cows, goats, pigs, rabbits, grass cutter and others. Livestock farming has a high demand due to its meat that has several nutritious benefits to health. It is a profitable business and can be tasking.  It is domesticated animals raised in an agricultural setting to produce commodities like food, fiber, and labor. The term is used to refer solely to those raised for food and sometimes only farmed ruminants, such as cattle and goats.

Here we discussed the livestock farming business plan ;

Knowing the reason why you operate on livestock farming is important because it helps to know what you want and how you can achieve your purpose. If you are planning to venture on animals for meat and dairy products, then goat or cattle can be the best option to choose from.

Knowing your farm purpose helps you describe what you want. This is very essential in starting up livestock farming because what you select will determine the farm equipment that is required. For example, start a dairy business ; entails raising livestock for a dairy product such as milk and the Meat production business entails raising livestock for meat consumption.

Finding a location mainly depends on whether you going into the large or small livestock farm business, it will help to decide the best location for your livestock business. It is very important to know the size of the land you want to buy because the land used in the rearing of cattle is different from the one used for grass cutter or rabbit farming. So if you want to venture into extensive livestock farms, getting a location in the rural areas is better as it will cheaper and sizeable as well.

You should not miss the Pig Farming Subsidy and Loan in India .

Check if the location is simply accessible by transport too, though this may not be a major concern; make sure the road is not too bad that it won’t serve the main issue in you transporting your livestock to the markets.  In choosing a good location for livestock farming , you have to consider some factors such as seasonal variances, climate, regional vegetation, local cattle markets, and topography. All these have an effect on your farm business, to ensure that you carefully select your location.

Feeding is very important in livestock farming business, so if you are into sheep, cattle, goat and grass cutting farming, it is advisable to plant grass around the area as it will help to reduce the cost that might occur on provision food and supplements.

Feeding is known to be one of the most important factors for successful livestock farming business because when they are been fed well, it will perform as supposed. Feeding your livestock animals well doesn’t mean overfeeding, but it means giving them the right food for livestock. Feeding in livestock needs a great deal of knowledge, skill, and practice to be able to feed as required. It is important to understand the different types that can be fed to livestock, and then learn how the different foods can be combined together to form balanced rations for animals.

It is important to select livestock that is well adapted to the veld and climatic conditions of an area, and to the style of farming and intensity of supervision that the farmer chooses and able to apply. Animals that are not accustomed to extreme temperatures or periods of drought will struggle to survive, resulting in high livestock farm losses or increased expenses (for example purchasing additional fodder) to keep animals healthy.

Once you have to choose suitable livestock the next aspect to consider in determining a sustainable stocking rate for the area to be used for grazing. The stocking rate is the number of hectares necessary per stocking-unit per annum or grazing season for a given area. A suitable stocking rate is determined by the grazing capacity is also known as the carrying capacity of an area. Grazing capacity refers to the number of hectares required to sustain one Large Stock Unit (LSU) over a human generation without deterioration of the vegetation or soil. One LSU is equivalent to 6 Small Stock Units (SSU), for example, 1 cow (LSU) = 6 sheep (SSUs).

You have to ensure that all the equipment and essential things for livestock farming are available. So you have to consider its watering, feeding equipment, the livestock shed, and others are available. The capability to start a profitable livestock business depends on your ability to your equipment in order. So, it is important to ensure that all the required equipment is available to run your business.

The equipment necessary for your livestock farming includes; feeding equipment, livestock trailer, water tanks, a manure spreader, a corral system, and a headgate. Good livestock handling facilities are created to protect livestock and them safe. This includes facilities that reduce the amount of bruising damage and physical injury done to the farm animal.

Livestock water requirements vary depending on the animal size, suitability to arid regions, seasonality and the climatic conditions of the area. Small livestock units, such as sheep and goats, optimally require 7 liters of water per day. Small-scale farmers have told us that their sheep manage with 5 liters per day. Water requirements increase under high protein or salt diets and during periods of high temperatures. Ewes that are lambing or producing milk for lambs need more water. Water requirements of different breeds of sheep will differ, and those less adapted to arid regions will need more water.

Under extreme heat conditions, it is particularly important to ensure that animals have easy access to clean drinking water. Provide farm animals with adequate clean water of good quality on a daily basis. If sheep can survive with less frequent access to water, it will cost in terms of their condition.

Livestock needs some form of shelter where they can rest and ruminate. The shelter is important for protection against extreme weather conditions. Most importantly, animals could need shelter from the very hot sun and cold and wet conditions. In veld that has plentiful trees and shrubs, sheep will generally be able to find a suitable shelter in all seasons, especially if they are familiar with the area. One exception here would be an extremely cold and wet event, where you would need to accommodate pregnant ewes, sick animals and lambs.

It is advisable to have a business registered, most especially if you are planning on going into commercial livestock farming. You can register your farm business with the local authorities which also helps to advertise your business to people. Registering your livestock farm business does not only protect your brands but it goes a long way in making easier for you to select the appropriate structure for your business.

Incase if you miss this: Fertilizer Business Subsody, Loan in India .

Depending on your livestock business plan and the amount of money required to start your business, you can apply for a loan. Writing down your business plan will help to know you will need to start up your farm business, including how much you will need to purchase land and other products you might need for a farming business. You can borrow from trusted people you know.

It is also good that you interact with agricultural and small business organizations that can help in directing you to places you can go for a loan other than what you will get from banks. While going loan application, it is very important to go with your business plan because it will boost your chances of getting a loan. And always remember to start little to avoid much spending.

Getting a nutritionist and a veterinarian will help you in achieving a successful livestock farming business . A good veterinarian and a nutritionist will help to keep livestock in good health. A nutritionist will help in terms of getting the right food for livestock. Also having a good relationship with these people can increase the chances of the successful livestock business. It is good to keep a relationship with your customers so that they can be able to help you during tough times. So, it is very vital in livestock farming to have a good veterinarian who can respond immediately when needed. Ensure that you work cooperatively with a veterinarian so that they can provide you with the best possible health care. Always make sure to have livestock vaccinated to prevent them from getting ill or contacting any injury.

Livestock farming business is concerned with livestock and its products by farmers, traders and of inputs required by them in the production of these animals and their products. This subject of livestock business contains product marketing as well as input marketing.

Livestock rearing is an age-old practice even before the existence of agricultural farming with seed. Traditionally nomadic farmer reared their livestock wherever the feed and water were obtainable. Now day’s modern animal husbandry activities attract usage of scientific know-how on breeding, feeding and animal health care. Modern practices can be more input-intensive. Thus the scope of livestock farming business includes both input and output trading.

These are the subject matter of livestock marketing includes marketing function, agencies or traders, channels, efficiency and costs, price spread, market integration, production surplus, government policy and research, training and market statistics. The business of livestock farming products is a complex process. It includes all the functions involved in the movement of produce from livestock farmers to consumers.

That’s all folks about livestock farming business plan and management. You might be interested in Making Chicken Manure Compost for Garden Plants .

13 COMMENTS

I am so excited about the livestock farming business, I am interested in Goat, Sheep’s, Cows, Pigs and poultry farming business, how can I obtain a loan to do the business.

I am interested in livestock production farming

I need to know the good food for cattle when your doing fattening activities. I am interested with fattening and dairy activities. I need to have more knowledge on fattening and dairy management. Kindly advise though my email. Regards

I’m really interested in the livestock production business . how can I obtain a loan ?

Agrifarming is good for man being

I am interested in livestock farming .Is it a good idea if I invite a group of people to be a co op and contribute a start up funds

I want to start a live stock farming in order to provide milk, I need a proper business plan to obtain funding. Kindly advice.

It’s a good business proposal

Hi want to start livestock farming for income have already 6 goats and 2 sheeps and 20 farm chickens.Need asistants to get bigger.

I want to start livestock farming to help my community from nothing to something.

This is a good insight into farm business plan development.

Please get me the details of wholesale chicken supplier

I’m interested on livestock farming

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

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

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

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

Executive Summary

Introduction to cattle farming.

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

Market Analysis

Farm infrastructure and equipment.

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

Breeding and Livestock Management

Feed and nutrition.

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

Health and Veterinary Care

Maintaining the health of your cattle is crucial for preventing diseases and ensuring optimal growth. In this section, we’ll cover vaccination schedules , disease prevention measures, and the importance of regular veterinary check-ups. Implementing proper health and veterinary care practices will safeguard the well-being of your cattle and minimize potential losses.

Marketing and Sales Strategies

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

Financial Projections

Risk assessment and mitigation.

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

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

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However, this estimate can vary based on factors such as rainfall patterns, soil quality, and vegetation density in your specific region. It is advisable to consult with local agricultural authorities or experienced farmers in your area to determine the optimal land requirement for your cattle farming venture.

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

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

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

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

Sussex: Sussex cattle are favored for their fast growth rates, good meat quality, and adaptability to a wide range of climatic conditions.

How do I market and sell my cattle products effectively?

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

Branding and differentiation: Develop a strong brand identity that highlights the unique qualities of your cattle products. Differentiate your products by emphasizing factors such as breed, feed, farming practices , or certifications.

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

Quality and customer service: Emphasize the quality of your cattle products and provide excellent customer service. Word-of-mouth recommendations and satisfied customers can significantly contribute to your business growth.

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

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

Tick-borne diseases: Tick-borne diseases, such as Anaplasmosis and Babesiosis, are prevalent in South Africa . These diseases are transmitted by ticks and can cause anemia and other health complications in cattle.

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

Brucellosis: Brucellosis is a bacterial infection that can cause reproductive issues in cattle, including abortions and reduced fertility.

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

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

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

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

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