10 Things To Consider Before Starting An Abattoir Business In South Africa
Starting an abattoir business in South Africa requires careful planning and consideration of various factors. Here are 10 things you should consider:
- Legal and Regulatory Requirements: Familiarize yourself with the legal and regulatory framework governing abattoir operations in South Africa. Obtain all necessary licenses, permits, and certifications to ensure compliance with health, safety, and environmental regulations.
- Market Analysis: Conduct a thorough market analysis to assess the demand for meat products in your target area. Identify potential customers, competitors, and market trends to determine the viability of your abattoir business.
- Location: Choose a suitable location for your abattoir that is accessible to livestock suppliers and has proper infrastructure for transportation, water supply, and waste management. Consider proximity to target markets and availability of skilled labor.
- Facility and Equipment: Plan the layout and design of your abattoir facility, ensuring it meets hygiene standards and provides a safe working environment. Invest in appropriate equipment for livestock handling, slaughtering, meat processing, and packaging.
- Livestock Supply: Establish a reliable and sustainable source of livestock supply. Build relationships with local farmers, livestock auctions, or suppliers to ensure a consistent supply of healthy animals for slaughter.
- Staffing and Skills: Hire skilled and knowledgeable staff who have experience in abattoir operations. Provide training on food safety, animal welfare, and proper handling and slaughtering techniques to ensure compliance with industry standards.
- Quality Control and Food Safety: Implement strict quality control measures to maintain hygiene, food safety, and traceability throughout the slaughtering and processing operations. Adhere to South Africa’s meat inspection standards to ensure the safety of the meat products.
- Waste Management: Develop an effective waste management plan to handle and dispose of animal by-products, wastewater, and solid waste generated during the abattoir operations. Comply with environmental regulations regarding waste treatment and disposal.
- Marketing and Distribution: Develop a marketing strategy to promote your abattoir business and build relationships with meat wholesalers, retailers, restaurants, and other potential customers. Consider distribution channels and logistics for delivering your meat products to the market.
- Financial Planning: Conduct a comprehensive financial analysis, including startup costs, operational expenses, and revenue projections. Secure adequate funding through loans, investors, or personal investment to cover the initial investment and sustain the business until profitability is achieved.
Remember, it is essential to consult with experts in the field, such as industry professionals, business advisors, or agricultural organizations, to gather more specific and up-to-date information on starting an abattoir business in South Africa.
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How to Start an Abattoir in South Africa
Table of Contents
Standard Approval for an Abattoir in South Africa
A abattoir or slaughter facility has to be certified by an Provincial Executive Office of the province it is located. All abattoirs should be monitored by an Veterinarian Public Health Officer. Lets take a look on How to Start an Abattoir on your Farm.
How to apply to build an Abattoir
- Plan your building layout for your Abattoir.
- Plan how you are going to get rid of carcasses and spills.
- Visit the Department of Agriculture on provincial level.
Contact the Department of Agriculture Forestry and Fisheries
- Changing Room, Health and Safety
Plan your Layout of your new Abattoir
Planning Your building layout is Crucial to your abattoir plan. You need to take your layout plan with when you go an visit the Provincial Executive Officer (PEO)
Including in your Abattoir layout you need to have a processing area, refrigerated store, dressing table, cleaning basin and bleeding cones.
You need to make sure that you will have clean water and depending if you are starting a livestock or poultry slaughterhouse you will need electricity.
Visiting the Department of Agriculture on Provincial level
- You need to go and see your Department of Agriculture on provincial level. If you are not sure how to contact them you can get information from your local State Veterinary Service Office.
- They are there to help, so don’t be afraid to explain to them what your plans are and how you are going to dispose of carcasses and blood. If you are not sure, they will advise you and show you the correct methods of disposing of carcasses, feathers and other spills.
- The Provincial Executive Officer will have to evaluate and approve your building plan. It is highly recommended to visit the PEO first and discuss your plans so that he or she can assist you in the planning of your abattoir
Abattoirs are governed by the Department of Agriculture Forestry and Fisheries and they will have to come and visit your farm or smallholding to discuss water and disposable of carcasses.
Make sure that you have studied your water rights, have approval from neighbours and that you have your protocol in order when they start asking about your planning around fires and natural disasters. Once again, they are there to advise you if you are not 100% sure.
Changing Rooms and Health and Safety
Depending on the size of your abattoir, you might need to employ staff. Staff need changing rooms, toilets and possibly a shower if you are going for a 2000 plus per week slaughter house.
Your staff will need face masks, gloves, safety boots and overalls. Make sure that you include that on your business plan when visiting an PEO
Meat Safety Act
Safe meat refers to inspected meat by a health inspector and approved for human consumption. Only qualified meat inspectors are allowed to approve safe meat. Approved meat will have a purple stamp on each quarter of the carcass.
Chickens do not get stamped but need an inspector to approve the meat. In most cases, by South African law you are allowed to train your own inspector that has a minimum qualification of Grade 12. After 6 months, the trainee can do a trade test and become an qualified poultry meat inspector. An owner or manager of a chicken abattoir are never allowed to be an meat inspector.
People to contact for information on how to build a new Abattoir
Veterinary Public Health Contacts in your Province
Question: I would really like to start an Abattoir in my Township but I do not have enough space on my property.
Answer: You can follow the same protocol to apply for an Mobile Abattoir as a normal abattoir.
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25 Replies to “How to Start an Abattoir in South Africa”
I would like to start a small or mobile chicken abattoir
I would like to start chicken abattoir at my community
I would like to start chicken abattoir at my community at a promised lease land from my couzine which is idlealing in Magalies- Mogale City. The place has no structure but vast. One also need funding.
I would like to start an Abbattoir on my community for slaughtering small livestock
Tau that would be great. Start planning and then go and see your Local PEO
I would like to start slaughter house in my community
I would like to start a pig abattoir in Radium Limpopo. I have a 23 hectares of land and currently started with pig farming. How much would it cost and how big should it be to eventually slaughter 100 pigs per day.
Can you be able to start Abattoir while you starting to have chicken business or you need a operational business to start the abattoir
You can start a abattoir without farming with chickens. It could be a separate business and also a service to other chicken farmers
I want to start an abattoir at my area
I wanna start our own abbatoir on the farm, i live in a rural area. I’ve been reading this.
Point of correction, you do not train your own meat inspector. I meat inspector is someone with Bio-science qualification with a minimum of 3 years of studying. In accordance to the meat safety act of 2000, a meat inspector must be a holder of at least Diploma in Animal Health and Production or Environmental Health from an approved institution
Yappy I understand your point regarding becoming a meat inspector, however when it comes to poultry, you can train your own. As you probably know meat inspectors has to be present at the day of slaughter to inspect and certify the meat and in some cases charge per carcass. Small scale chicken abattoirs slaughtering 250 birds per week can not afford an inspector nor is it feasible for an inspector to travel to rural areas and inspect only 250 chickens. So in rural areas, you are allowed to train poultry meat inspector as long as they have grade 12 and are not an owner operator. My information is directly from the Provincial Executive Office in Bredasdorp Western Cape. Thanks for your input – Regards
I’m interested in building an abourtour but can’t get componies that can supply me with equipment and proper planning.
I would like to start a small chicken abattoir in my community
I worked at Pick n Pay as a butchery manager for 15 years. Then five years ago I started my own small butchery business in Mtubaba Northern Kwazulu Natal. Now we want to start a small abattoir with a small community of this area. We do have registered Coperative. We wanted to know how we can get a grant from Agriculture in order to start our business.
I would like to start an livestock and a abattoir inmy area is this possible to have two major business at once
Yes absolutely. Not only will you lower your business operation cost, but you can make extra income with serving farmers around you
Do I need a PEO when buying a mobile abattoir?
I would like to start a certified mobile abbottoir for rabbits. What can I do and how much I need and where to go.
whoah this blog is great i love studying your posts. Keep up the good paintings! You realize, lots of persons are searching around for this information, you can help them greatly.
I wanth to start a poultry abattoir,I have business plan, abattoir an structure , letters of intent from local retails and p Big supermarkets. Where can I get funds from department of agriculture
I’m a fresh meat processor student, I’m doing an NQF level 3, which is the highest qualification of the meat teachnician. I want to open my own abattoir and butchery but I don’t know where to start. So would you please advise on what should I have and what should not do.
I am very sure that it will be covered in your NQ Level 3 course….
Hi, thank you FarmingSA for an informative article on the matter,, I would like to know, for rural areas where it’s only accessible via dirt roads is there any regulation about how far from the road would the abattoir have to be, to prevent dust contamination. Also, for rural and low throughput it does not seem feasible to keep a meat inspector.
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Abattoir Business Plan [Sample Template for 2024]
Home » Business ideas » Agriculture Industry » Agro Processing & Allied Industry » Meat Shop & Abattoir
Do you want to start an abattoir and need to write a plan? If YES, here is a sample abattoir business plan template & FREE feasibility report. It can be truly challenging starting any business , but one business that you can start with little challenges and wide market coverage is an abattoir.
An abattoir is a business that slaughters animals to produce meat. Abattoirs also produce fresh or frozen meat as carcasses and cuts, in addition to by-products like rendered lard, tallow and pulled wool and they also bone, preserve and pack meat.
Starting an abattoir comes with its own fair share of challenges, but that does not rule out the fact that it is indeed a profitable business. An aspiring entrepreneur can either choose to start an abattoir business on a small scale or on a large scale depending on their financial status.
So, if you have decided to start your own abattoir, then you should ensure that you carry out thorough feasibility studies, market survey and secure the needed public health and hygiene certificates and permits. Below is a sample abattoir business plan template that can help you to successfully write your own with little or no difficulty.
A Sample Abattoir Business Plan Template
Table of Content
1. Industry Overview
3. our products and services, 4. our mission and vision statement, 5. job roles and responsibilities, 6. swot analysis, 8. our target market, 9. sales and marketing strategy, 10. sales forecast, 11. publicity and advertising strategy, 12. our pricing strategy, 14. sustainability and expansion strategy.
Abattoir business falls under the Meat, Beef & Poultry Processing industry and players in this industry basically slaughter poultry birds and animals, process the meat and package them into products and by-products. The industry is also known to be involved in purifying and refining animal fat, bones and meat scraps.
Products are sold to other food manufacturers , renderers, grocers, meat wholesalers and retail traders. It is important to state businesses that primarily cut and pack meats from purchased carcasses are also part of this industry.
Even though meat consumption based on per capita income is expected to remain stagnant in the next half a decade, economic woes before this period aggravated consumption drops. Because of recovering consumer sentiment, population growth and strong export demand, meat-processing revenue is projected to increase going forward.
In spite of the stability of consumer demand for meat-based products, unpredictable weather conditions and disease outbreaks can cause instability in the revenue generated by industry players.
The Meat, Beef & Poultry Processing Industry is indeed a very large industry and pretty much thriving in all parts of the world. Statistics have it that in the united states of America alone, there are about 5,664 licensed and registered Meat, Beef & Poultry Processing companies directly responsible for employing about 480,178 employees.
The industry rakes in a whooping sum of $225 billion annually with an annual growth rate projected at 1.4 percent. It is important to state that the establishments with lion shares of the available market in this industry are Cargill Inc., JBS SA, Inc., Tyson Foods and Smithfield Foods.
Several researches conducted linked red meat consumption with increased risks of several diseases, hence the need for nutritional awareness among consumers. As a result of this, consumers have started choosing white meat (chicken) instead of beef and pork.
Nonetheless, the prices of these products have risen faster than those of poultry products, leading this segment’s share of revenue to also increase.
Statistics also have it that an estimate of about 35 companies are involved in the business of raising, processing and marketing chicken on a commercial level. It is on record that Americans consume more chicken than anyone else in the world – more than 90 pounds per capita in 2015.
So also, in 2015, almost 9 billion broiler chickens, weighing 53 billion pounds, live – weight, were produced. More than 40 billion pounds of chicken product was marketed, measured on a ready-to-cook basis.
The abattoir or slaughterhouse business will continue to blossom because people will always want to purchase fresh meat. Despite the fact that the industry seems over – saturated, there is still room big enough to accommodate aspiring entrepreneurs who intend opening their own abattoir in any part of the United States of America.
Some of the factors that encourage entrepreneurs to start their own abattoir business despite the required licensing and permits could be that the business is a thriving business. Lastly, if you are looking towards leveraging on the beef, meat and poultry processing industry to generate huge income, then one of your best bet is to start an abattoir.
One thing is certain about starting this business, if you are able to conduct your market research and feasibility studies , you are more likely not going to struggle to sell your products because there are loads of distributors and consumers out there who are ready to buy from you.
2. Executive Summary
East – Coast Abattoir®, LLC is a registered slaughterhouse that will be involved in the slaughtering and retailing of fresh meat. Our slaughterhouse facility will be located close to one of the largest farming community in Trenton – New Jersey.
We have been able to lease a storage facility that is big enough for the kind of abattoir that we intend launching and the facility is centrally located in the heart of town. East – Coast Abattoir®, LLC will be involved in slaughtering animals, producing cuts of beef, lamb and mutton, pork, other red meats and selling by-products from the slaughtering process to a wide range of customers.
We are aware that there are several abattoirs and even well – established farm markets and meat processing companies all around Trenton – New Jersey that are also into meat and beef retailing, which is why we spent time and resources to conduct our feasibility studies and market survey so as to offer much more than our competitors will be offering.
We have robust collection and distribution network, strong online presence and modern storage facilities and we are armed with the various payments options available in the United States. Beyond selling slaughtered animals, our customer care is going to be second to none in the whole of Trenton – New Jersey and our deliveries will be timely and highly reliable.
We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they patronize our products. East – Coast Abattoir®, LLC will ensure that all our customers are given first class treatment whenever they visit our abattoir.
We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large they may grow to. We will ensure that we get our customers involved in the selection of the types of animal to be slaughtered and also when making some business decisions that directly affects them.
East-Coast Abattoir®, LLC will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
East-Coast Abattoir®, LLC is a family business that is owned by Silas Joshua and his immediate family members. Silas Joshua has a B.Sc. in Animal Science, with over 8 years of hands on experience in the agribusiness industry, working for some of the leading brands in the United States.
Although the business is launching out by focusing on Trenton – New Jersey, but there is a plan to expand our distribution network all across the state of New Jersey.
We are in the agribusiness industry to make profits and we will ensure that we do all that is permitted by the law in the United States to achieve our business aim and objectives. Our products and services offerings are listed below;
- Slaughtering animals
- Producing cuts of beef
- Producing cuts of lamb and mutton
- Producing cuts of pork
- Producing cuts of other red meats
- Selling by-products from the slaughtering process
Our vision is to become one of the leading brands in the abattoir line of business in the whole of Trenton – New Jersey. Our mission is to establish an abattoir business that will slaughter and sell a wide range of animals at affordable prices to wholesalers and retailers in Trenton and other cities in New Jersey where we intend marketing our produce.
Our Business Structure
East-Coast Abattoir®, LLC do not intend to start a slaughterhouse business like the usual mom and pop business around the street corner; our intention of starting our business is to build a standard slaughterhouse in Trenton – New Jersey.
We will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business.
We will make sure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all our stakeholders. 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 ten years or more.
In view of that, we have decided to hire qualified and competent hands to occupy the following positions that will be made available at East – Coast Abattoir®, LLC;
- Manager (Owner)
- Warehouse / Storage Facility Manager
- Merchandize Manager
Sales and Marketing Manager
- Abattoir Workers
Manager / Owner:
- 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.
- Responsible for fixing prices and signing business deals
- 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
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defines job positions for recruitment and managing interviewing process
Warehouse cum Storage Facility Manager:
- Responsible for organizing the safe and efficient receipt, storage and dispatch of slaughtered animals and byproducts
- Responsible for liaising with customers, suppliers and transport companies
- Responsible for using space and mechanical handling equipment efficiently and making sure quality, budgetary targets and environmental objectives are met
- In charge of coordinating the use of automated and computerized systems where necessary
- Ensures that proper records of goods are kept and warehouse does not run out of products
- Ensures that the slaughterhouse facility is in tip top shape and goods are properly arranged and easy to locate
- Controls meat, beef and poultry meat distribution and supply inventory
- Supervises the workforce in the abattoir floor.
- Manages vendor relations, farm cum market visits, and the ongoing education and development of the organizations’ buying teams
- Responsible for the purchase of cows, goats, pigs, turkeys and chickens et al directly from farmers for the organizations
- Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
- Ensures that the organization operates within stipulated budget.
- Responsible for slaughtering animals, producing cuts of beef, producing cuts of lamb and mutton, producing cuts of pork, producing cuts of other red meats and selling by-products from the slaughtering process.
- Responsible for cleaning the abattoir before and after slaughtering of animals
- Handles any other duty as assigned by the manager (owner)
- Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Models demographic information and analyze the volumes of transactional data generated by customer purchases
- 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 projects; assures the completion of development projects.
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluates new plans for increasing sales
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Distribution Truck Drivers
- Assists in loading and unloading live and slaughtered animals
- Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
- Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment
- Assists the transport and logistics manager in planning their route according to a distribution schedule.
- Local-delivery drivers may be required to sell meat, beef and poultry et al to stores on their route, obtain signatures from recipients and collect cash.
- Inspect vehicles for mechanical and safety issues and perform preventative maintenance
- Complies with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
- Collects and verifies delivery instructions
- Reports defects, accidents or violations
Our intention of starting our abattoir in Trenton and work with cattle farmers only within Trenton – New Jersey is to test run the business for a period of 2 to 5 years to know if we will invest more money, expand the business and then open our abattoir in major cities throughout the United States of America.
We are quite aware that there are several slaughterhouses all over Trenton and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
East – Coast Abattoir®, LLC employed the services of an expert Business Analyst with bias in the meat, beef, and poultry processing industry to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for East – Coast Abattoir®, LLC;
Our location, the business model we will be operating on, varieties of payment options, healthy environment and our excellent customer service culture will definitely count as a strong strength for East – Coast Abattoir®, LLC. So, also our management team members have what it takes to grow a business from startup to profitability with record time.
A major weakness that may count against us is the fact that we are a new abattoir business and we don’t have the financial capacity to compete with leaders in the industry for now.
The fact that we are going to be operating our abattoir business in Trenton – New Jersey which happens to be among the top 5 food producing states in the US provides us with unlimited opportunities to sell our fresh meats to a large number of wholesale distributors and retailers.
We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our abattoir. We are also aware that free-trade agreements and interest in biofuels benefit industry performance, and continued vertical integration of the farm process will open more opportunities for us.
Some of the threats and challenges that we are likely going to face when we start our own slaughterhouse business are global economic downturn that can impact negatively on household spending, bad weather cum natural disasters, unfavorable government policies and the arrival of a competitor (a new abattoir or even a well-organized farm market) within same location where we have our abattoir.
There is hardly anything you can do as regards these threats and challenges other than to be optimistic that things will continue to work for your good.
7. MARKET ANALYSIS
- Market Trends
In recent time, consumers are becoming conscious or what they eat especially as it relates to meat. Those advocating for healthy eating are against the consumption of meat especially red meat, and it takes extra effort for those in the abattoir business to canvass to such people to patronize them.
The truth is that slaughtering animals for food has been in existence for as long as humans started trading goods, but one thing is certain, the meat, beef and poultry processing industry is still evolving. The introduction of technology has indeed helped in reshaping the industry.
Lastly, it is now a common phenomenon for abattoirs to leverage on technology to effectively predict consumer demand patterns and to strategically position their business to meet their needs; in essence, the use of technology helps slaughterhouses to maximize supply chain efficiencies.
The meat, beef and poultry processing industry has a wide range of customers; a large chunk of people on planet earth consume different types of meat or poultry products and it is difficult to find people around who don’t.
In view of that, we have positioned our abattoir business to service consumers in and around Trenton – New Jersey and every other location we will cover all over the state of New Jersey. We have conducted our market research and we have ideas of what our target market would be expecting from us.
We are in business to engage in the slaughtering and selling of freshly butchered meats to the following businesses;
- Retailers of meat
- Grocery stores
- Wholesale Distributors of meats
Our Competitive Advantage
A close study of the meat, beef and poultry processing industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.
We are aware of the stiff competition and we are prepared to compete favorably with other leading abattoirs in and around Trenton – New Jersey.
One thing is certain; we will ensure that we have a wide range of meats in our warehouse/storage facility at all times. One of our business goals is to make East – Coast Abattoir®, LLC a one stop abattoir. The fact that our output is sold under contract – incorporate long-term sales contracts, and that we enjoy upstream vertical integration (ownership links) and economies of scale gives us edge over our competitors.
So also, our excellent customer service culture, neat and healthy environment, timely and reliable delivery services, online presence, and various payment options will serve as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category 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 aims and objectives.
We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
- Sources of Income
East – Coast Abattoir®, LLC is in business to engage in slaughtering animals and retailing fresh meats and byproducts. We are in this industry to maximize profits and we are going to go all the way to ensure that we achieve our business goals and objectives.
Our source of income will be;
- Selling by-products from the slaughtering process.
One thing is certain when it comes to abattoir business, if your business is centrally positioned coupled with reliable supply of healthy meats and effective distribution network, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in Trenton – New Jersey and we are quite optimistic that we will meet our set target of generating enough income from the first six months of operation and grow the business and our clientele base.
We have been able to critically examine the meat, beef and poultry processing industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Trenton – New Jersey.
- First Fiscal Year: $340,000
- Second Fiscal Year: $650,000
- Third Fiscal Year: $1 million
N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and services as we do within the same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location for East – Coast Abattoir®, LLC, we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice for households, meat wholesale distributors, retailers, grocery stores and supermarkets in and around Trenton – New Jersey.
We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.
We hired experts who have good understanding of the meat, beef and poultry processing industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in and around Trenton – New Jersey.
In summary, East – Coast Abattoir®, LLC will adopt the following sales and marketing approach to win customers over;
- Open our business in a grand style with a party for all.
- Introduce our business by sending introductory letters alongside our brochure to households, restaurants, hotels, caterers, BBQ joints, wholesale distributors, retailers, grocery stores , supermarkets and other key stake holders in and around Trenton – New Jersey
- Ensure that we have a wide range of meat in our abattoir at all times
- Make use of attractive hand bills to create awareness of our business
- Position our signage / flexi banners at strategic places around Trenton – New Jersey
- Create a loyalty plan that will enable us reward our regular customers
- Engage on roadshows within our neighborhood to create awareness for our abattoir cum slaughterhouse business.
Despite the fact that our abattoir business is well structured and well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote the business.
East – Coast Abattoir®, LLC has a long-term plan of opening distribution channels all around the state of New Jersey and key cities throughout the United States which is why we will deliberately build our brand to be well accepted in Trenton before venturing out.
As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise East – Coast Abattoir®, LLC;
- Place adverts on community based newspapers, radio and TV stations
- Encourage the use of word of mouth publicity from our loyal customers
- Leverage on the internet and social media platforms like YouTube, Instagram, Facebook, Twitter, LinkedIn, Google+ and other platforms to promote our business.
- Ensure that our we position our banners and billboards in strategic positions all around Trenton – New Jersey
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Advertise our abattoir business in our official website and employ strategies that will help us pull traffic to the site
- Brand all our official cars and distribution vans/trucks and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.
Pricing is one of the key factors that gives leverage to wholesale distributors and retailers and abattoirs are not left out, it is normal for retailers to purchase products from distribution companies that they can goods at cheaper price.
We will work towards ensuring that our meat is retailed at highly competitive prices compare to what is obtainable in the United States of America. We also have plans in place to discount our meat once in a while and also to reward our loyal customers from time to time.
- Payment Options
The payment policy adopted by East – Coast Abattoir®, 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 East – Coast Abattoir®, LLC will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards / Point of Sale Machines (POS Machines)
- Payment via POS machines
- 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 meat, beef and poultry purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
This means that the startup can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.
As for the detailed cost analysis for starting an abattoir business; it might differ in other countries due to the value of their money. These are the key areas where we will spend our startup capital on;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of East – Coast Abattoir®, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The cost for hiring business consultant – $2,500.
- The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for 12 months at $1.76 per square feet warehouse facility in the total amount of $105,600.
- The total cost for abattoir facility remodeling (construction of drainages et al) – $20,000.
- Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 ).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
- The cost for Start-up inventory (purchase of livestock and slaughtering tools) – $200,000
- Storage hardware (bins, rack, shelves, food case) – $3,720
- The cost for counter area equipment (counter top, sink, etc.) – $9,500
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost of purchase and installation of CCTVs – $5,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
- The cost for the purchase of distribution vans / trucks – $25,000
- The cost of launching a website – $600
- The cost for our opening party – $7,000
- Miscellaneous – $10,000
We would need an estimate of five hundred and fifty thousand dollars ( $500,000 ) to successfully set up our abattoir business in Trenton – New Jersey.
Generating Startup Capital for East – Coast Abattoir®, LLC
East – Coast Abattoir®, LLC is a private business that is solely owned and financed by Silas Joshua and his immediate family members. They do not intend to welcome any external business partners which is why he has decided to restrict the sourcing of the startup capital to 3 major sources. These are the areas we intend generating our startup capital from;
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the Bank
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 $300,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting East – Coast Abattoir®, 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 retail / distribute our meat, beef and poultry 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.
East – Coast Abattoir®, 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 company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
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.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of abattoir facility and remodeling the facility: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Packaging/Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of butcher tools: In progress
- Purchase of distribution vans: Completed
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party/launching party planning: In Progress
- Compilation of our list of products that will be distribute: Completed
- Establishing business relationship with farmers within and outside of Trenton – New Jersey: In Progress