Business Plan Template Doc Pig Farm
Business Plan Template Doc Pig Farm
Business Plan Template Doc Pig Farm
4/22/2020 Products
Business Plan
Contents
The Business.......................................................................................................5
Business details.................................................................................................................5
Registration details............................................................................................................5
Business premises.............................................................................................................6
Organisation chart.............................................................................................................7
Management & ownership.................................................................................................7
Key personnel....................................................................................................................7
Products/services..............................................................................................................9
Innovation....................................................................................................................... 10
Insurance.............................................................................................................................
Risk management............................................................................................................12
Legal considerations........................................................................................................13
Operations....................................................................................................................... 13
Sustainability plan...........................................................................................................17
The Market........................................................................................................18
Market research...............................................................................................................18
Market targets..................................................................................................................19
Environmental/industry analysis...................................................................................20
Your customers................................................................................................................21
S.W.O.T. analysis.............................................................................................................24
Your competitors.............................................................................................................25
Advertising & sales..........................................................................................................26
The Future........................................................................................................28
Vision statement.............................................................................................................28
Mission statement...........................................................................................................28
Goals/objectives..............................................................................................................28
Action plan......................................................................................................................28
The Finances.....................................................................................................29
Key objectives & financial review....................................................................................29
Assumptions....................................................................................................................29
Start-up costs for [YEAR]...............................................................................................30
Balance sheet forecast......................................................................................................31
Profit and loss forecast....................................................................................................32
Expected cash flow..........................................................................................................33
Break-even analysis.........................................................................................................34
Supporting documentation...............................................................................35
Business Plan Summary
Lesaka Lesika Meat Products is a Business build on the South African values of Ubuntu and
Bringing Communities together, LLMP is an organisation that was founded by Raymond
Mogotlo Matsebatlela January 2020, even though this has been a Project for years that
entails Researches and administration work. What LLMP looks to achieve as an organisation
is to be able to afford surrounding Communities Job Opportunities, skills development by
means of training the youth with Business skills, Farming skills, Food Security, Farming
Education, Childhood Development, diet and advantages of growing your own food and
livestock
The Business
Raymond Matsebatlela finished his matric at Phahama senior Secondary school, he went on
to further his studies at the University of Johannesburg were he completed his National
Diploma in Management, he went on to do his certificate as an out-come Based Assessments,
Project Management and internal Quality auditor, He started working as a Supply Chains
Inter at the South African Human Rights Commission, went on to work as Business
Developer and then Business Development Executive at Sobek Engineering Service, He then
continued with his journey working as a Business Development Officer at Mekan Engineering
Service, he left his Job to kick start his own Business (Biz Solution Consultant) and now as a
sales Consultant at SBS Tanks.
Products/services: LLMP is a pig farm that is looking to grow and become one of the
biggest Pork Producers in the Country, we will be Growing life stock for sale to abattoirs,
Retail stores and walkers in Communities. LLMP will not just be pork producer but a place
where communities around can find a place to learn and get employment. We are looking at
growth that will allow the organisation to move into other life stock farming such as Chicken
farming, sheep or lamp farming and kettle farming. LLMP is looking to manufacture by-
Products from the life stock such as Beacon, sausages and marinated and packaged Pork
Ribs. With the company growth we are looking at extending more products such as Coated
and packaged Chicken Filets, Nugget’s, Pops and many more.
The Market
Target market:
Retailors are the biggest meat product sellers in the country and this will allow us the
opportunity to sell our meat and meat products to retail and be able to look at abattoirs, and
agents who are major role players in determining the price and distribution of meat. We also
looking at getting the surrounding communities involved by letting them into livestock
farming and the market.
Marketing strategy:
The farm will be looking at converting traditional Pork farming into a more social and
cultural farming to embrace different cultures that are in South Africa and surrounding, the
intention is to allow communities to be part of the marketing and owners of the brand. This
will assist with creating:
1. Brand Awareness
2. Meat type awareness
3. Piggery education
4. Processed meat processes
5. Product availability
6. Target Township Based, Restaurants, Butcheries, Buy and Braai’s
The Marketing Mix can be summarized as the four Ps (4Ps): Products, Price, Place, and
Promotion
Product
The plan is to make sure that the animals are fed good quality feeds
Provide quality meat that is suitable for the current market
Avoid our animals from distress by building a world class facility
Build relationships with all our suppliers and maintain a consistent
supply of feeds, Medication and other resources needed to run a farm
Provide employees with good working condition and paying Market
related wages
Price
These are costs that are directly related to the products or services that business makes or
sells, e.g., cost of buying breeding stock, feeds, drugs, etc. for a pig farming business. They
also include the cost for hired people who work on the farm in producing or selling of pigs,
transport of inputs or farm products, etc.
These are all other costs for running the business, for example rent, license, security, etc.
Indirect costs are also known as overheads. Overhead cost is paid whether the business is
producing or not.
When setting a price for pig farm products we need to consider the following:
The pricing of all products should be done in a manner that there is a balance with the day to
day running of the organisation, but still be a competitive
Place
The Farm will be situated west of Johannesburg, overlooking the rest of Gauteng and well be
positioned to distribute goods throughout Gauteng, by utilising the road networks that
connect the west rand to the South East, South, East, North of Johannesburg and Pretoria,
distribution to the North West Province and Free state can also be achieved by exploitation of
the great road networks in Gauteng
The Future
Vision statement:
Re-establish the farming industry in South Africa and make communities a part of the food
they consume.
Goals/objectives:
The Company objective is to grow the business with an intention of an inclusive purpose to
include the community in making sure that everyone resiting within the farm (with attention
given to the youth) benefits from the project and address issues of
1. Uneployment
2. Poverty
3. lack of education
4. food security
5. crime.
The Finances
[Briefly outline how much profit you intend on making in a timeframe. How much money
will you need up-front? Where will you obtain these funds? What portion will you be seeking
from other sources? How much of your own money are you contributing towards the
business?]
The Business
Business details
Products/services: Farming
Registration details
Business location: The Farm will be located on a vacant land in Randfontein 26°14'25.61"S
27°43'43.31"E, the acquiring of this farm is of high importance, leasing or purchasing of land
through financing from Loans, government funds or land donations. The identified land is
about 7 hectares and seating along the R559
Organisation chart
R. Matsebatlela
Chairperson Director
(Founder)
N. Maduna
Director Chief Operation
Officer
(Founder)
K. Raseroka
Managing Director
(Founder)
R. Matsebatlela K. Raseroka
N. Maduna
Head of
Farm Manager, Head of Head of Reproduction,
Sales, Marketing, Animal diet, Medications
Finance and Logistics
Business Development & and Quality Control
Corporate Services
Maintenance
Administrator Procurement Animal Health
Sales Infrastructure Animal Feeds
Security and House Operations Reproduction
Keeping Health and safety Mortality Management
External Consultants Farm and animal
caretakers
Details of management & ownership: As the Director and founder of Lesaka lesika
Meat Producers he will be involved in the day to day running of the organisation making sure
that the organisation is able to meet its monthly obligation and make sure that all
administration and legal documents are all in place.
Experience: Raymond Mogotlo Matsebatlela has over 8 years of work experience working
as a Business Developer and Business Consultant, he is not just the chairperson and Founder
of Lesaka lesika Meat Producers he is a founder Biz Solutions Consultants, which is a
Business consulting company that assist emerging entities to grow and be more productive.
With all this, he has experience in Developing relationships and achieving growth in existing
and new business, participate in Business development and marketing based campaigns,
conduct presentations, Research, Compiling, assimilate and preparing documents, Compose
letters and memorandums, plans and coordinate arrangements for professional conferences,
Prospecting new business, assisting with proposals, Product and market Knowledge
acquisition, assisting with designing of brochures and Profiles, Conducting tender briefings
and compiling tenders, manage and supervise tendering process from beginning to
submission, advice on prospective areas to concentrate on, prepare and present monthly
HOD departmental Report. Quality Management system and quality control, manage all our
tender administrators in our regional office
Key personnel
Current staff
Required staff
Recruitment options
The plan is to look for skilled youth in farming from the local community and this process
will include head hunting on Linked in and advertising on local newspapers, local radio
station and internet.
Training programs
We are looking at making the farm a learning institution that will empower local youth and
teach them about farming by offering them learnership and trips to countries that have
highly intensive farming and use latest technology.
The youth will be high priority even though older and skilled generation will be hired to assist
in monitoring and grooming the younger generation and making sure that there is continuity
from the elders to the youth
Long serving workers will be appreciated by having a stake on the farm in a form of shares
and other incentives, employees’ families will be given scholarships and internships to
provide income continuity in their house Holds. Managerial positions will be given to long
serving employees and skilled employees
Products/services
Market position: we are looking at tapping into local and international markets in terms of
exports, what the farm and meat producer is looking at archiving is to make sure that it opens
up local and township markets in terms of meat and processed meat as they contribute a big
margin in terms of consumers of the product.
The are no if non meat producers that are closer to black communities and yet they are the
main consumers of such products, for example the spread of listeriosis was mainly in black
communities and yet they did not have an understanding of how such product can carry
dieses, and such is because they do not have access to process plants and the process that
goes into producing such products.
Bringing such facilities closer to the people will give them confidence that whatever they are
consuming was produced right on their doorstep by their own people. We believe that local
restaurants (Chessanyamas) are the biggest bulk meat buyers in local communities, most of
them if not all purchase meat from surrounding butchers at a high price and if there is a
supplier that can provide them with cheaper and affordable ,meat this can open up a bigger
market a townships around Gauteng and surrounding.
Unique selling position: I believe the focus of meat sales has always been up market and
no one has given focus to low lying fruits which are the major buyers of any food products in
South Africa.
Involving and teaching communities in the farming, reproduction and slaughtering of pigs
and butchering and selling will serve the organisation well as this will be the heartbeat that
sustains employment and increases interest in the product (Pork).
Besides getting complete control of local buyers it is also essential to focus on up market
markets such as major abattoirs and major retail stores in South Africa and SADC countries.
There is an increased interest from the international Markets (China) to import Pork from
other countries as their pork industry has been affected by African swine fever virus and this
opens overseas markets for African Pork Producers.
Having international partnerships will assist us in training and improving our infrastructure
and our production process and reproduction.
Anticipated demand: we believe that with the local market we can archive a demand of up
to 20 to 50 pigs a month and with this we will be able to focus of increasing the numbers
further into 300 to 500 pigs a month as we reach out to international markets.
Value to customer: We wish for our customers to understand that food security is priority
to the organisation and thus making sure that South Africa as a country has the potential to
grow the farming industry and become a major player in pork and other animal producers of
the world, as much as we would love to be heroes to our local industry we also want to be
seen as a reliable supplier.
Growth potential: The interest of the organisation is to grow the business into one of the
biggest black owned black businesses that supplies meat to the country, Continent and the
world. Growth for the organisation will mean increasing reproduction from 1000 pigs to 10
000 pigs a year and this will lead to the organisation to increase the type of meat we produce
from Pork, to Poultry, Beef and Lamp.
Innovation
Companies such as Big Dutchman offers Modern housing and feeding systems Sow
Management that helps in managing feeding and management of life stock, systems such as
Tri sort- Automated sorting Scale for pig finishing which assists in:
Finishing pigs in large numbers from 250 – 350 pigs per group, it can sort them based on
their individual weights. Among other things, this can help to determine the exact number
and weight of ready to slaughter pigs and the laughter dates.
Contact-O-Max is a freely movable boar cart that has been specifically designed and
developed by expert pig breeders for sow breeding operations using artificial insemination.
The sustained contact between sow and boar (snout-to-snout) stimulates the sow and
increases her fertility. The unique heat detection system ensures maximum stimulation
during artificial insemination accurately, efficiently and reliably. Especially sows that are
slow to cycle can be stimulated in a more sustained and focused manner, which also helps to
reduce the number of heat returns. This state-of-the-art heat detection technology leads to
fertility rates of up to 95 % and is also recommended by vets worldwide.
ARTIFICIAL INSEMINATION
A very cheap and practical way to carry out genetic improvement is through the use of
artificial insemination (AI).
Benefits of AI
PIC imports frozen semen on a regular basis, thus ensuring that the genetics on
South African soil is connected to their international herds. This ensures an
upgraded and better-quality product that is available to PIC’s customers. The
genetic benefit of AI is one of the most important benefits if implementing this
technique on the farm.
It is more hygienic and safeguards animal health by preventing the spread of
diseases in a herd.
It helps overcome the differences in size between gilts and boars. Big boars could
potentially injure smaller gilts in the mating process.
AI lessens problems experienced in summer or seasonal infertility.
The quality of a boar’s semen reduces over time and by using AI you can always
have access to top quality semen.
With access to superior genetics and reduced risks (some of which are discussed
above) it also makes more economic sense. There is also a reduced cost associated
with not having to purchase and feed a boar for natural mating.
Hog Hotels
Farmers in China are now keeping their pigs in modern multi-storey buildings to feed the
nation's prodigious appetite for the meat. These so-called high-rise 'hog hotels' house around
1,000 sows per floor.
'It saves energy and resources. The land area is not that much but you can raise a lot of pigs if
each building is well it can house as many as 30,000 sows, producing up to 840,000 piglets
each year.
Risk management
Legal considerations
The NWA169 regulates all activities relating to water resources and the usage thereof, which
includes environmentally sustainable disposal of, for example, wastewater.
The NEM:WA regulates the management and disposal of waste. Factory farming falls within
the ambit of the listed activities set out in Category A of the applicable regulations.2
The NEM: AQA is very relevant in the factory farming industry, since factory farms emit
various harmful gases such as methane and nitrogen. The Act regulates the emission of
harmful gases and sets out requirements for the necessary facilities, which will be discussed
in detail.
Conservation of Agricultural Resources Act 43 of 1983 (CAR)
The CAR regulates and controls the utilisation of natural agricultural resources and promotes
the conservation of soil, water sources, vegetation, combating of weeds and invader plants
and other matters related thereto
The transfer of immovable property acquired is regulated by the Deeds Registries Act No. 47
of 1937 (Deeds Act). The acquisition of agricultural land is dealt with the same way as the
acquisition of any other type of immovable property, such as a dwelling, house, an erf or
sectional title unit.
It is essential that any agreement for the sale of immovable property is in writing and
specifies the:
Seller.
Purchaser.
Property.
Purchase price of the property.
Export control
Section 17 of the Animal Improvement Act and Regulation 14 provide for export control
measure
There are various mandatory and voluntary standards applicable in South Africa in relation
to food safety standard setting, which are governed by relevant government bodies. The main
departments supervising food safety in South Africa are the:
Legal organisations:
Department of Health.
Production process
Methods of Conception
Pig farmers generally choose to have their sows artificially inseminated. This allows farmers
to breed multiple sows in the time it would take for one boar and sow to mate naturally. A
normal breeding session will usually take 15 minutes, with the boar being able to mate with
up to 3 sows a day. Through artificial insemination, however, a boar's semen can be used to
inseminate up to 50 sows’ During artificial insemination a boar will mate with a with a fake
sow that the farmer creates. The farmer will place the sow's penis in a jar or bottle in order to
collect the semen.
GESTATION (pregnancy)
Gilts (female pigs) reach maturity and are bred at 170 to 220 days of age.
After delivering their first litter of pigs, gilts are called sows’
Gestation (pregnancy) is about 114 days, or 3 months, 3 weeks and 3 days.
Health checks are done, and intensive weighing is done daily
21 days (3 weeks)
Sows and gilts are moved to a farrowing barn when ready to give birth (farrow).
Usually, a sow or gilt will have 12 to 13 pigs per litter.
1.3Kg at birth
Sows nurse piglets until they are weaned at about 21 days of age
6-7Kg at weaning
NURSERY
42 to 56 days (6 to 8 weeks)
After weaning, piglets are moved to a nursery or to a wean-to finish barn and are
housed with piglets from other litters.
Specialized temperature controls and ventilation support the newly weaned piglets.
Piglets are fed a corn/soybean meal diet, eating 0.63 to 1.8kg per day.
In this phase, pigs grow to 23 to 27 Kg.
Health checks are done, and intensive weighing is done daily
27kg after nursery phase
Pigs are moved from the nursery to a finishing barn to accommodate their continued
growth. If pigs are in a wean-to-finish barn, they remain there.
In the grow/finish phase, pigs consume 6 to 10 lbs. of feed daily.
A diet typically consists of corn and soybean meal, as well as vitamins and minerals to
ensure proper health and growth of the pigs.
As the pigs grow, they are monitored daily to ensure that they are healthy.
At about six months of age, the pigs weigh about 280 lbs. and are then market ready.
Health checks are done, and intensive weighing is done daily
127kg. at market weight
Sorting
Suppliers
Big Dutchman
Provides feeding systems and housing equipment for modern pig production. They offer you
practical, economical and environment-friendly solutions all geared to future needs
Meadow Feeds
Meadow Feeds is regarded as the market leader in the Southern African animal feed industry.
Our company produces a variety of specialised diets and custom feed mixes for the poultry,
dairy, ostrich and swine industries.
Meadow Feeds also supplies a full range of technical services to its customers, including
advice on nutrition, feeding programs, animal husbandry and production techniques.
Meadow feeds are based in Randfontein which means easy to access and cost effective, and
quick to access feeds when needed agently.
Quality control
• ISO 22005, Traceability in the feed and food chain – General principles and basic
requirements for system design and implementation ISO 22005 will assist us to establish a
feed and food traceability system that enables them to trace the flow of materials (feed, food,
ingredients and packaging), identify the necessary documentation and tracking at each stage
of production, while ensuring adequate coordination and communication between the
different players in the supply chain.
SANS 10156:2014 This standard contains recommendations for the hygienic manufacture,
storage and transportation of chilled and frozen foods, also the hygienic handling in retail
and catering establishments.
SANS 15161: This standard gives guidance to organisations in applying the requirements of
ISO 9001 during the development and implementation of a quality management system in
the food and drink industry.
SANS 241: This standard prescribes how to achieve the numerical limits specified in
SANS 241-1 and is applicable to all water services institutions and water services
intermediaries. Assessment of the fitness for use of drinking water against the determinants
and numerical limits specified in SANS 241-1 provides the minimum assurance necessary
that the water is regarded as presenting an acceptable health risk for lifetime consumption.
Furthermore, it addresses the evaluation of water quality risks, monitoring and verification of
water quality to enable the management of the identified water quality risks. It is not
intended to provide a comprehensive water management plan, which is required for the
implementation of a water safety plan that addresses related issues such as water quantity,
finance and maintenance.
Sustainability plan
Environmental/resource impacts
Environmental impact Sustainable agriculture is a key objective for ISO, and we have
standards to help make agriculture as green as the fields being tilled. Soil erosion, loss of
fertility, declining biodiversity and reduced water supplies are all classic signs of land
degradation and a significant proportion of the world’s land is estimated to be negatively
impacted. Land degradation affects everyone because it threatens our food safety and water
supplies and has a significant impact on economies, most notably those in underdeveloped
countries.
ISO 14055, Environmental management – Guidelines for establishing good practices for
combatting land degradation and desertification This new standard in development gives
guidance on establishing good practices to combat land degradation and assist in the
rehabilitation of land that has been depleted. Protective clothing Pesticides are a reality of
modern farming and protecting the farmer against toxicity is essential.
ISO 27065, Protective clothing – Performance requirements for protective clothing worn by
operators applying liquid pesticides This standard helps safeguard agricultural workers
against the risks of using pesticides. It specifies performance requirements enabling pesticide
manufacturers to indicate the required protection levels on their product labels, while
garment manufacturers can produce, certify and sell protective clothing with defined
protection levels.
Early engagement with local community leaders and the community will assist us to pick up
any uncertainty which will be communicated and resolved right away. And all this will be
communicated through platforms such as:
Strategies
Water is an essential commodity to the farm in making sure that the animals have enough
drinking water in support of their growth and making sure that they are housed in a clean
environment.
Recycling of water will be priority in our environment policy, this will make us reuse water
that is used to clean the facility.
Making sure that the maintenance team is always available to make sure that all leakages are
fixed.
Action plan
The Market
Market research
The South African pork industry contributes about 2.15% to the primary agricultural sector.
The gross value of pork production is dependent on the quantity produced and the price
received by farmers (DAFF, 2014). The industry plays an important role in the production of
pork and creation of job opportunities, employing about 10 000 workers, comprising of
approximately 4 000 farm workers and 6 000 workers in the processing and abattoir sector
(DAFF, 2014). On average over the last ten years, South Africa’s pork per capita consumption
increased from 3.1 kg to 4.5 kg per annum probably due to the consumer education/
promotion initiative funded through the statutory levies’ income. The low per capita
consumption implies that there are very few people consuming pork in the country. However,
South African Pork Producers’ Organisation (SAPPO) estimated that pork consumption to
rise by 25% between 2008 and 2020. Pork is produced throughout the country with Gauteng,
Limpopo, North West and Mpumalanga being the largest commercial producers, collectively
accounting for 63% of total production. In 2014, KwaZulu-Natal accounted for 10% while the
Western Cape, Northern Cape, Free State and Eastern Cape, collectively accounted for 27%.
There are at least five breeds that are predominantly produced for commercial purposes in
South Africa, namely SA Landrace, Large White, Duroc, Pietrain and Kolbrook.
To supply good quality protein for 55 million people, pigs and poultry are being farmed
successfully in "factory farms" in South Africa, yet only 0.5% of the world's pork is
produced in South Africa. South Africa consumes about 200 000 tonnes of pork meat
(fresh and processed) per year. Our own production amounts to 182 000 ton (2.6 million
slaughter pigs with an average carcass mass of 70 kg) and we import another 25 000
tonnes. This represents just under 4 kg per person per year more than the African non-
Muslim population but insignificant compared to people in Asia, Western Europe and
North America.
Import countries include Germany, France, Spain, Canada, Brazil and the USA. Frozen and
specially treated cuts like spareribs made up 60% of the imports. South Africa exports a
small amount of pork to Namibia, Mauritius and Mozambique.
Ten times more poultry than pork is consumed in South Africa at a similar price per
kilogram indicating a huge potential market for fresh and processed pork products.
feed costs represent 70% to 80% of the total variable costs of production on a modern in-
house commercial farm. Farmers can reduce the cost of feed by producing and mixing their
own feed or sourcing cheaper food near their production unit. For example, they may
source by-products from a mill or feed pods from the Prosopis tree or acorns to the pigs.
Pork consumption
According to BFAP (2014), South Africa’s pork consumption is small and accounted about 7%
of the total meat consumption in 2013. Despite the small share of the meat complex, pork
consumption registered a 53% increase over the past decade, and it is expected to increase
further in the coming years. South Africa’s per capita consumption is far below the trend in
the above-mentioned countries. For instance, in 2014, pork per capita consumption per
annum was estimated to be 69.7 kg in China - Hong Kong, 42.6 kg in Europe, 34.6 kg in
China, 28.8kg in USA and 21.1 kg in Russia while for South Africa it was about 4.6 kg only
Market targets
There are five, market channels one can sell livestock to:
1. Public Auctions
2. Abattoirs
3. Speculators
4. Meat processors
5. Butchers
6. Local Communities
And the choice of a market will depend on certain factors which are:
By taking into consideration the above and realisation that lesaka lesika is still a small farm
factory that is looking to play in the bigger market, it is imperative that we select markets that
can give us a good cashflow and yet pave the way to grow our financial position in the market.
Public Auction
Local Communities
Environmental/industry analysis
Mega Cities
According to the development plan for the project, the mega cities project is a R100-billion
economic corridor investment, which ultimately aims to deliver more than 800,000 houses
within 30 residential developments spread across the five development corridors in Gauteng.
The development of this mega cities will give a rise to an increase of affordable and supply of
meat and meat products and we will be well seating to take advantage of the increased
demand.
Your customers
Agro-processing?
In 2018, South Africa’s total exports and imports of agro-processing products amounted to
about R124.21 billion and R160 billion, respectively. Due to greater imports as compared to
exports, the agro-processing industry has a trade deficit of approximately R35.80 billion.
Despite an unfavourable trade balance, the agro-processing industry plays a significance role
in the South African economy. Approximately 9.96% of South Africa’s total exports are
accounted for by the agro-processing industry, while imports contribute 12, 99% to total
South African imports. Moreover, it contributes about 4, 4% share of total employment in
South Africa. However, in relation to the employment in manufacturing sector, about 36,
82% of it is accounted for by the agro-processing industry (Statistics South Africa, 2019 and
Quantec, 2019).
This industry buys meat in bulk and there is a Consistent demand for pork meat, and this will
give us an opportunity to find a niche without the whole Industry.
South Africans spent R31 900 per second in retail stores in 2017. contributed a small portion
to the R1 trillion in sales (current prices) generated by the retail trade industry in 2017, every
time you stepped into a store to buy groceries, clothes or electronic equipment. This
translates to about R31 900 spent per second across the industry during that year. And
consumers weren’t shy to spend a little more in 2017 than they did in 2016. Spending on
retail was up by 2,9% in 2017 compared with 2016 in volume terms (constant prices), higher
than the 1,7% annual growth recorded in 2016, but lower than the 3,3% in 2015
Retailers around the West Rand and surrounding are a good market to target and make sure
we find a niche within the market. Targeting retailers such as:
1. Shoprite Checkers
2. Pick n Pay
3. President Hyper
4. Sunshine wholesales
5. Local Butchers
Abattoirs
South Africa has approximately 431 abattoirs slaughtering cattle, pigs and sheep on an
annual basis. Approximately 40% of all slaughtering are performed by abattoirs that may
slaughter an unlimited number of animals (Class A) and approximately 60% of cattle are
slaughtered by highly regulated abattoirs (Class A & B).
Auctions
Livestock auctions are a part and parcel of the South African livestock industry. They serve a
vital role in helping livestock farmers to buy and sell animals and to get to know others in the
same industry. Auctions are especially important for the emerging farmer with a small
number of animals to trade who doesn’t necessarily have the marketing power of big
commercial farmers. The biggest advantage of an auction is that emerging small-scale
farmers can easily buy and sell at a market related price. Large auctions attract a lot of buyers
making prices more competitive
Besides the fact that we will be buy our bores from auctions, Auctions are the most effective
way of selling Pigs on a weekly basis and making sure that there is increase in our cashflow.
Customer management
Regular visits
Visits to our client’s facilities and understand what impact our products have done to their
business Profits and increase in buyers; this will assist us in knowing and understand were
we need to improve as an organisation.
Building relationship
This process is important to any organisation, this process will help us build trust and believe
that we will always work to deliver products on time and of good Quality and if this is done
correctly it will assist the organisation to manage problems that might arise in the future such
as farm animals being attacked by a virus, we will be able to communicate this easily and be
given time come up with contingency plans to resolve the problems,
[Business Name] Business Plan [YEAR]
S.W.O.T. analysis
Strengths Weaknesses
The farm is run by youth who will bring energy and creativity in the Most of us are first time farmers
farm Lack of Funds and resources
Farm is in the west of Johannesburg being a major contributor of Access to the market
Agricultural products in Gauteng
Enough staff
Financial backing from Government
All partners of the farm are highly skilled
Availability of Land in the WestRand
Identified land is close to the highway
Opportunities Threats
Pig farming only needs a small investment in buildings and equipment The market price of pigs can go up when pork is limited and can drop
Pig farming also offers quick returns because the marketable weight of when there is an oversupply of pork.
fatteners (piglets you’re raising for the freezer) can be reached within Pig feed will also take up between 60% and 80% of your total production
six to eight months. costs.
Pigs have the highest feed conversion efficiency Strikes and community protests
The pig is prolific and has a shorter generational interval. As an Government Corruption
example, a sow can be bred from the age of eight to nine months and Inconsistent political environment
can farrow (give birth to a litter of piglets) twice in a year.
Weak economy
Six to 12 piglets can be produced in each farrowing. Pigs are usually
known for their meat production Pigs are prone to diseases and this will serve as big threat to the farm
Six to 12 piglets can be produced in each farrowing. Pigs are usually Discourages and Sows producing less litters
known for their meat production
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[Business Name] Business Plan [YEAR]
Your competitors
Competitor details
GHB Farms 1955 supplier of Eskort 10% Good Quality Good Quality Have ESKORT as their only
Limited management system management system in client
in place place
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[Business Name] Business Plan [YEAR]
[What strategies do you have for promoting and advertising your products/services in the next 12 months?]
Planned promotion /advertising type Expected business improvement Cost ($) Target date
Door to Door sales campaigns Expose the organisation to multiple clients and assist in building Continues
relationships
Social Media Wide exposure to a bigger audience R2000 First year
Website Wide exposure to a bigger audience and international markets R6000 First 6 months
of farm
operation
Print (Publications) Meat producers, farmers abattoirs and retailers focus on farm 10000 2nd year of
publications operations
Raymond Mogotlo Matsebatlela will be heading the sales and marketing team, he will be doing all the door to door campaigns and making sure that websites and
social media accounts are up and running.
Identifying potential clients and arranging meeting with potential clients will be done on a day to day bases
Have sales software such as Syspro will assist in having a database of all suppliers and clients
Approaching of local restaurants and promoting all our meat products
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[Business Name] Business Plan [YEAR]
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[Business Name] Business Plan [YEAR]
The Future
Vision statement
Become a role player in food production and food security in the country
Mission statement
Goals/objectives
The farm needs to maintain a good cashflow and make sure the farm is sustainable for the first 2 years of existence
Action plan
Please note: This table does not include sustainability milestones as they are listed in the sustainability section above.
Milestone Date of expected Person responsible
completion
Obtain funds (Capital) and resources July 31 2020 All partners
Farm Planning and Construction June 2021 All partners and external
contractors
Employment of staff and resources put in place July 2021 All partners
Farming July 2021 All partners
Page 29
[Business Name] Business Plan [YEAR]
The Finances
Financial objectives
The plan in the first 2 years is to keep the farm afloat and trying to build cashflow as this will determined the next 5 years of the business.
Mention a healthy cashflow for the second quarter of the company
Be able to have funds available to run the farm until first sale
Make fund available through loans, funding, partnerships and distributions from the partners
Make good profits and grow the farm
Increase productivity by 40% in the first 3 years
Finance required
Land purchase
Equipment
Building
Stationary
Breeding animals
Feeds and water Infrastructure and Security.
Majority of the funds will come from loans, Grands and Funds
Assumptions
The financial tables on the subsequent pages are based on the assumptions listed below:
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[Business Name] Business Plan [YEAR]
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[Business Name] Business Plan [YEAR]
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[Business Name] Business Plan [YEAR]
Expenses
Ac c ountant fees R 10,000.00 R 6,000.00 R 4,000.00
Advertising & marketing R 15,000.00 R 6,000.00 R 6,000.00
Bank fees & c harges R 2,000.00 R 1,000.00 R 1,000.00
Bank interest R 5,000.00 R 5,000.00 R 5,000.00
Credit c ard fees
Utilities (electric ity, gas, water) R 10,000.00 R 10,000.00 R 10,000.00
Telephone R 2,000.00 R 1,500.00 R 1,500.00
Lease/loan payments R 40,000.00 R 40,000.00 R 40,000.00
Rent & rates R 5,000.00 R 5,000.00 R 5,000.00
Motor vehic le expenses R 20,000.00 R 20,000.00 R 20,000.00
Repairs & maintenance R 5,000.00 R 3,000.00 R 3,000.00
Stationery & printing R 5,000.00 R 3,000.00 R 3,000.00
Insuranc e R 60,000.00 R 60,000.00 R 60,000.00
Superannuation
Inc ome tax R 10,000.00 R 10,000.00 R 10,000.00
Wages (inc luding PAYG) R 72,000.00 R 72,000.00 R 72,000.00
Animal Feeds R 300,000.00 R 350,000.00 R 350,000.00
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[Business Name] Business Plan [YEAR]
OPENING BALANCE R - R - R - -R 270,699.00 -R 541,398.00 -R 812,097.00 -R 1,082,796.00 -R 1,353,495.00 -R 1,624,194.00 -R 1,794,893.00 -R 1,965,592.00 -R 2,136,291.00
Cash incoming
Sales R 100,000.00 R 100,000.00 R 100,000.00 R 100,000.00
Asset sales
Debtor receipts
Other income
Total incoming R - R - R - R - R - R - R - R - R 100,000.00 R 100,000.00 R 100,000.00 R 100,000.00
Cash outgoing
Purchases (Stock etc) R 25,000.00 R 25,000.00 R 250,000.00 R 250,000.00 R 250,000.00 R 250,000.00 R 250,000.00 R 250,000.00 R 250,000.00 R 250,000.00 R 250,000.00 R 250,000.00
Accountant fees R 5,000.00 R 5,000.00
Solicitor fees
Advertising & marketing R 5,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00
Bank fees & charges R 166.00 R 1,666.00 R 166.00 R 166.00 R 166.00 R 166.00 R 166.00 R 166.00 R 166.00 R 166.00 R 166.00 R 166.00
Interest paid R 417.00 R 417.00 R 417.00 R 417.00 R 417.00 R 417.00 R 417.00 R 417.00 R 417.00 R 417.00 R 417.00 R 417.00
Credit card fees
Utilities (electricity, gas,
water) R 833.00 R 833.00 R 833.00 R 833.00 R 833.00 R 833.00 R 833.00 R 833.00 R 833.00 R 833.00 R 833.00 R 833.00
Telephone R 166.00 R 166.00 R 166.00 R 166.00 R 166.00 R 166.00 R 166.00 R 166.00 R 166.00 R 166.00 R 166.00 R 166.00
Lease/loan payments R 3,333.00 R 3,333.00 R 3,333.00 R 3,333.00 R 3,333.00 R 3,333.00 R 3,333.00 R 3,333.00 R 3,333.00 R 3,333.00 R 3,333.00 R 3,333.00
Rent & rates R 417.00 R 417.00 R 417.00 R 417.00 R 417.00 R 417.00 R 417.00 R 417.00 R 417.00 R 417.00 R 417.00 R 417.00
Motor vehicle expenses R 1,700.00 R 1,700.00 R 1,700.00 R 1,700.00 R 1,700.00 R 1,700.00 R 1,700.00 R 1,700.00 R 1,700.00 R 1,700.00 R 1,700.00 R 1,700.00
Repairs & maintenance R 417.00 R 417.00 R 417.00 R 417.00 R 417.00 R 417.00 R 417.00 R 417.00 R 417.00 R 417.00 R 417.00 R 417.00
Stationery & printing R 417.00 R 417.00 R 417.00 R 417.00 R 417.00 R 417.00 R 417.00 R 417.00 R 417.00 R 417.00 R 417.00 R 417.00
Membership & affiliation
fees R 5,000.00
Licensing R 5,000.00
Insurance R 5,000.00 R 5,000.00 R 5,000.00 R 5,000.00 R 5,000.00 R 5,000.00 R 5,000.00 R 5,000.00 R 5,000.00 R 5,000.00 R 5,000.00 R 5,000.00
Superannuation
Income tax R 833.00 R 833.00 R 833.00 R 833.00 R 833.00 R 833.00 R 833.00 R 833.00 R 833.00 R 833.00 R 833.00 R 833.00
Wages (including PAYG) R 6,000.00 R 6,000.00 R 6,000.00 R 6,000.00 R 6,000.00 R 6,000.00 R 6,000.00 R 6,000.00 R 6,000.00 R 6,000.00 R 6,000.00 R 6,000.00
More…
Total outgoing R 64,699.00 R 47,199.00 R 270,699.00 R 270,699.00 R 270,699.00 R 270,699.00 R 270,699.00 R 270,699.00 R 270,699.00 R 270,699.00 R 270,699.00 R 274,699.00
Monthly cash balance -$64,699 -$47,199 -$270,699 -$270,699 -$270,699 -$270,699 -$270,699 -$270,699 -$170,699 -$170,699 -$170,699 -$174,699
CLOSING BALANCE -$64,699 -$47,199 -$270,699 -$541,398 -$812,097 -$1,082,796 -$1,353,495 -$1,624,194 -$1,794,893 -$1,965,592 -$2,136,291 -$2,310,990
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[Business Name] Business Plan [YEAR]
Break-even analysis
BREAK-EVEN CALCULATOR
Timeframe MONTHLY
Average price of each product/service sold R 1,001.00
Average cost of each produc t/service to make/deliver R 300.00
Fixed costs for the month/year R 64,700.00
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[Business Name] Business Plan [YEAR]
Supporting documentation
Page 36