Beef Weaner Production for Abattoirs: Feedlot Business Enterprise

Abstract

EXECUTIVE SUMMARY The business, Feedlot Business Enterprise, is registered as a close corporation for farming operations and currently focuses on the free-range cattle farming and rain fed maize as a crop on seven hectares of a communal land. The owner, Onismus Mokobane is passionate and committed to production of healthy and quality commercial cattle for marketing at the livestock auctions in Polokwane. The maize is used as a supplementary feed for the cattle during winter when feed is scarce. This business venture proposal is developed for the expansion plans in the operation of the weaner feedlot division of the business. The business currently owns a total herd of 130 breeding cows including calves and four bulls. Other business assets include two tractors, hammer mill, silage cutter, baler, rake and maize harvester. South Africa is the net importer of beef and Limpopo Province is falling behind its contribution to the beef production in the country. The world population is increasing, and food security planning cannot be overemphasised. The increasing trend of Chisa-nyamas (meat braai areas) and abattoir businesses in the country gives rise to the demand for beef. There is also business potential for the supply of dung for the manure to the crop farmers. The SA government has shown interest to partner and support emerging farmers’ agricultural projects. Feedlot Business Enterprise will focus on a large-scale supply particularly the corporate abattoirs, that procure in large quantities as compared to the individual consumers who buy meat for consumption only. The primary targets include the best regional abattoirs such as Potgietersrus Abattoir, Gaza Beef, Leeukuil Abattoir, Madikor 16, Phalaborwa Abattoir and Waterberg Abattoir. The business also targets the established feedlot businesses on a collaborative basis for their abattoir facilities, which service the international markets like the Middle East and North African countries which have growing demand for beef. The main competition for the business emanates from six feedlot businesses in the Limpopo province. They supply local abattoirs and other established key players in the industry as substitutes products such as chicken, pork, egg, mutton and goat meat are perceived as the indirect competition for the business. The focus of the enterprise will be on customer intimacy, thereby understanding the needs and preferences of the customers. Furthermore, adding value to the customer experience by ensuring that the transportation will be done by the business to ensure that packaging of the business products meets the compliance and quality standards. The business will commit to employing highly competent workers. Continuous skills training and development will be emphasised and done regularly. The business will require a total of R 35 344 500.00 to fund its capital expenditure requirements for purchasing 3000 weaners, building feedlot infrastructure and operation costs. The current resource complement consisting of 130 cattle, plant and equipment will form part of the contribution by the owner in the business. The business owner will further invest his time in the business and be the general manager for day-to-day management.