Are you looking to start a breeding business? here is a complete guide to starting a breeding business with no money or experience.
Ok, so we’ve provided you with a detailed example of a breeding business plan. model. We also took it a step further by analyzing and writing a sample livestock marketing plan backed by actionable guerrilla marketing ideas for livestock businesses. In this article, we will cover all the requirements for starting a breeding business. So put on your entrepreneur hat and let’s move on.
Why start a cattle ranching business?
If you are interested in getting into breeding, you should consider a breeding farm. Cattle farming is arguably one of the most lucrative livestock businesses an entrepreneur can start, but that doesn’t exclude that it can sometimes be problematic, especially if you don’t live in a farming community where you can easily build your ranch. …,
Besides a general knowledge of pet breeding, you need to learn the breeding process if you want to be successful in business. To get the most out of your cattle ranching business, you need to learn to help your cattle through their birth process and then take care of the young.
Setting up a cattle ranching business has its own challenges, but this does not exclude that it is indeed a profitable business. A budding entrepreneur can start a small or large scale cattle ranching business depending on their financial situation.
Before starting this type of business, you will be required to conduct market research. , economic and cost analysis and, of course, feasibility studies. If you do everything right before you start your cattle farming business, it won’t be long before you are profitable and start smiling in the bank.
So if you really want to start your own cattle breeding business, just read this article and you will be well equipped.
Start working with a cattle company
- Industry overview
The agricultural industry, in which cattle or, better yet, cattle breeding is a subset, is undoubtedly the main industry in most countries of the world. It is an industry which produces food for the population and raw materials for industry.
Given the important role played by the agricultural sector, most governments are careful to do their utmost to subsidize seedlings, fertilizers, agricultural tools and machinery for farmers and encourage entrepreneurs to engage in various types of farming. agriculture, including livestock.
There are many business opportunities in the agricultural sector and a good thing about the industry is that there is a market for all of the industry’s products. Cattle farming is certainly a successful and profitable business due to the health benefits of beef and other livestock by-products. People eat beef, drink milk, and use fur and leather. With cow’s milk, cheese can be prepared with other dairy products.
The beef cattle industry is indeed a large industry and is quite active in countries like United States of America, Israel, Argentina, Netherlands, Egypt, China, Germany , Turkey and Nigeria, etc. There is not a single breeding company that has a dominant market position in the industry; therefore, small-scale livestock farms can benefit from it.
Statistics show that in the United States of America alone there are around 38,184 registered and licensed livestock farms, employing around 62,463 people, and the industry is roaring wildly. the amount of $ 13 billion annually. The industry is expected to grow at 3.1% per year.
If you are looking to use the farming industry to generate huge income, one of the best options for you is to start raising livestock. Cattle farming is the mass breeding of cattle (cows, oxen, bulls, steers, oxen, heifers and calves) for the sole purpose of making a profit.
Even though the beef industry has been around since time immemorial, this in no way makes the industry oversaturated. The fact that there is always a ready market for meat makes the business green.
In addition, there are few barriers to entry into the livestock industry. In the near future, industry participants may face the highest costs associated with accessing technology, particularly with respect to the development of genetic modifications in animal production.
In addition, intellectual property rights protecting new inventions and technologies could mean that aspiring entrepreneurs entering the industry will have to pay licensing fees, which of course will lead to a significant increase in the costs of starting a business. ‘livestock. livestock.
Beginning of livestock market and feasibility studies
- Demography and psychography
The demographic and psychographic makeup of those who consume beef and milk is not limited to a group of people. People of different races and cultures consume beef and milk, so the livestock market covers it all.
So if you want to define the demographics of your cattle ranching business, you have to cover everything: households, hotels, restaurants, beef processors and packers, and businesses that depend on it. beef supply.
List of Breeding Kennel Ideas You Can Specialize In
Most breeders tend to run a generic breeding business that includes all of the activities that a standard breeding business is supposed to offer, so there seems to be no niche in the industry. But on the other hand, some beef companies may decide to tackle certain key or niche areas such as:
- Boarding services
- Breeding services
- Dairy industry support services
- Livestock health services
- Sale and export of cotton and other dairy products
- Sale of cattle and milk
- Sale of processed meat
- Hair cutting service
- Breeding advisory and consultancy services
The level of competition in the livestock industry
The level of competition in the livestock industry depends to a large extent on the location of the business and, of course, the capabilities of your farm. If you can successfully integrate beef processing, packaging, and milk production into your beef business, you may face little to no competition.
For example, if you are the only livestock farm in your area that sells processed meat or sells and exports cotton and other dairy products, you may be successful in monopolizing the market for a long time before you start to compete.
It’s also important to note that competition in the livestock industry depends on the size of your farm. The United States has livestock farms that compete with the major livestock farms around the world, and it there are cattle farms in the United States. which can only compete locally.
List of famous brands in the cattle industry
In all sectors, there are always brands that perform better or are better perceived by customers and the general public than others. Some of these brands are the ones that have been around for a long time in the industry and have established a presence.
These are some of the major breeding complexes in the United States of America and around the world;
- Brem Limousin, cattle farms
- Graman farm
- Cattle Capitol Lands
- Southwest Ranch Farm Sale
- Daisy Farms
- Lucky Layla Farms Law Ranch Cattle
- Lucky T Farm
- Brunette stockings
- Houston Ferguson Honey Farm
- Marion downs
- Oxwood Farm
- Smiling hill farm
- Joseph Gallo Farms
- Cattle breeding business
- George Baggs III Cattle Company
- Cattle Company TM
- Farms Necklace
- Swenson Ranches
- Lavon Farms
When you start a cattle ranching business, you just need to do the right economic cost analysis if you want to start a for-profit business, grow your business and eventually expand your business and start exporting processed and packaged beef. in your country and in others. country of the world.
When performing an economic and economic analysis of your cattle ranching business, all you need to do is critically examine these key factors; market access, access to cheap labor and, of course, good weather conditions. In fact, you will need to regularly review these key factors when running your beef business, and as a livestock farm owner, you just need to manage your competitive landscape well if you really want to maximize your profits. and be at the forefront of the industry.
It is important to note that drugs / treatments and feed costs are one of the most important factors affecting the overall value of a beef business and should be considered the primary factor in your cost and cost analysis. ‘economy.
Starting your livestock business from scratch vs buying a franchise
When it comes to starting such a business, you have to start from scratch rather than buying a franchise. In addition, based on available research, there are no known fully operational franchised beef operations in the United States of America; most actors in this direction adopt strategies that will help them sell their livestock, beef, milk and wool outside the city, state or country where their livestock farm resides in others parts of the world, rather than selling a franchise.
It’s also easier to start and run a zero-to-profit cattle business without using a well-known brand. People will patronize your cattle, beef, milk and wool based on availability and price, rather than relying on the brand name.
Note that most of the large, successful livestock farms started from scratch and were able to build a strong business brand.
Threats and potential challenges you will face when starting a cattle ranching business
If you decide to start your own cattle breeding business today, one of the main issues you are likely to face is having well-known cattle farms in your target market. The only way to avoid this problem is to create your own market; focus on households, individuals and small restaurants and hotels that need a regular supply of meat and milk from livestock farms.
Some other threats and challenges you are likely to face; a global economic downturn that could have a negative impact on household spending, inclement weather and natural disasters (drafts, epidemics), unfavorable government policies and the arrival of a competitor (livestock farm) in one place . There is hardly anything you can do when faced with these threats and challenges except to think with optimism that everything will continue to work for you.
Starting a breeding business
- The best legal entity to use for this type of business
When considering starting a standard cattle breeding business, the entity you choose will go a long way in determining the size of a business. some breeders are developing their activities and services for the regional market, while others for the national and international market.
Typically, you have the option of choosing a limited liability company, a limited liability company commonly known as an LLC, or a sole proprietorship for your breeding business. Usually, the sole proprietorship should have been the ideal business structure for a small livestock business, especially if you are starting out with little start-up capital.
But people prefer a limited liability company for obvious reasons. In fact, if you intend to grow your business and sell your cattle, beef, milk, wool, and processed prepackaged beef all over the United States of America, choosing a sole proprietorship is not an option for you. A limited liability company, LLC, or even a general partnership will do this for you.
LLC training protects you from personal liability. If something is wrong with the business, only the money you invest in the limited liability company is at risk. Limited liability companies are simpler and more flexible to operate, and you don’t need a board of directors, shareholder meetings or other formal management formalities.
Catchy Trade Name Ideas Suitable For Cattle
Usually, when it comes to choosing a name for your business, you have to get creative because the name you choose for your business will go a long way in creating a perception of what the business stands for. If you are thinking of starting your own cattle ranching business, here are some catchy names to choose from:
- Perry Coleman and Family Cattle Ranch, LLC
- Paul Livermore Cattle Farms Ltd
- Percy Jones Sons Cattle Farms, LLC
- Gaze Hinds Cattle Farms, Inc.
- Joe McQueen Cattle Farms Ltd.
- Ray Thomas Cattle Farms, LLC
- Lewis Niles Cattle Farms Ltd.
- George Lopez Cattle Farms, Inc.
- Texas Brothers Cattle Farms, Inc.
- Golden Fence Cattle Ranch, Inc.
- Temple Cattle Farms, LLC.
c In the United States and most countries around the world, you cannot do business without some of the basic insurance policies required by the industry in which you want to work. Thus, it is imperative to create a budget for insurance and possibly consult an insurance broker to help you choose the best and most suitable insurance policies for your breeding business.
Here are some of the basic insurance policies that you should consider when buying if you want to start your own cattle ranching business in the United States of America;
- General insurance
- Health insurance
- Liability insurance
- Animal mortality insurance
- Insurance of agricultural equipment and vehicles
- Commercial agri-food insurance
- Workers compensation
- General disability insurance
- Group insurance for business owners
- Payment protection insurance
Protection of intellectual property / trademark
If you are planning to start your own cattle breeding business, you generally will not need to apply for IP / trademark protection. This is because the nature of the business allows you to successfully run your business without any reason to challenge anyone in court for illegal use of your business intellectual property.
But if you just want to protect your company logo and other documents or software that are unique to you or even production concepts, in particular regarding genetically modified modifications in breeding, you can apply for the protection of Intellectual property. If you want to register your trademark, you must begin the process by filing an application with the USPTO. The final approval of your mark is subject to legal review, as required by the USPTO.
Is professional certification required to manage a livestock farm?
You should strive to obtain all the required certifications in your area of specialization. It is strongly recommended to obtain professional certification; this will go a long way in demonstrating your commitment to the company.
Here are some of the certifications you can use to achieve your goal if you want to run your own livestock business;
- P. Livestock certification
- Rainforest Alliance Certified Cattle
- Breeding certificate
List of legal documents required to run a breeding business
The essence of having the necessary documentation before starting a business in the United States of America cannot be overstated. It is a fact that you cannot conduct business successfully in the United States without proper documentation. If you do, it won’t be long before the long arm of the law catches up with you.
Here are some of the basic legal documents you need to have in place if you want to legally operate your own livestock farm in the United States of America;
- Business and liability insurance
- Registration of a commercial vehicle driver for delivery trucks
- Appropriate driving license for drivers
- Assistant licenses for assistants
- Medical examination certificate
- Proof of ownership, correct identification and license of the vehicle
- taxpayer ID
- Fire certificate
- Registration certificate
- Business license
- Business plan
- Non-disclosure agreement
- Employment contract (letters with proposals)
- Employee Handbook
- Operating Agreement for LLC
- Agricultural partnership agreement
- Operating Agreement for LLC
- Insurance policy
Financing your cattle breeding business
Starting a Standard Project A farming business can be capital intensive, especially if you decide to open a large livestock farm that will provide you with livestock, meat, milk, and wool outside of your immediate community. a ranch with the right fence, purchasing your first set of livestock, purchasing feed and livestock tools / equipment are some of what will require a significant portion of your start-up capital. but if you decide to start a small business, you may not need to find a source of funding to finance the business.
Here are some of the options you can explore when looking for a source of start-up capital. for your cattle breeding business;
- Collect money from personal savings and sell personal stocks and property
- Raise funds from investors and business partners
- The sale is shared with interested investors
- Apply for a loan from your bank
- Submit your business idea and apply for business grants and seed funding from government, donors, and angel investors
- Source of loans on favorable terms from your family and friends.
Choosing the right location for your cattle farm
Starting a cattle business comes with its own challenges; it is a business that cannot be started anywhere that you choose. In fact, you will not be allowed to start a cattle ranching business in a residential complex in the United States of America, Canada, United Kingdom and Australia. The only place where you can be allowed to set up a cattle farm is agricultural land dedicated to cattle farms, and it is usually located on the outskirts of town – in the countryside.
It is important to note that a well-located commercial facility does not come cheap, so you should be able to set aside enough leasing / rental funds within your budget. If you are new to the dynamics of choosing a location for your livestock business, you may feel free to speak to a business consultant or real estate agent who fully understands the city and possibly the country in which you intend to start your business.
Here are some of the key factors to consider before choosing a location for your beef business;
- Location demography
- Request for milk and beef wool on site
- The purchasing power of the inhabitants of the place
- Location availability
- Number of cattle farms on site
- Local community / state laws and regulations
- Transport, parking and security
Handling of technical staff for cattle breeding
To run a standard livestock farm you will need the following equipment / machines; milking machine and milk collector, milk storage tanks and containers, waterfall / channel, guardrail, shovel and rake, wheelbarrow / cart. This equipment can be purchased for fair use if your budget is minimal.
When it comes to choosing between leasing and leasing land for your livestock farm, the size of the livestock you want to own and your overall business budget should influence your choice. If you have enough capital to run a fairly large and well-equipped livestock farm, you should consider a long-term lease or an appropriate purchase of farmland.
As for the number of employees expected To start a business, you need to consider your finances before making such a decision. When it comes to a large scale launch of standard cattle, you will need the services of the following specialists; COO (you can fill this position), general farm manager, veterinarian (optional as he can be hired), human resources manager and administrator, accountant / cashier, sales and marketing manager, field workers, cleaners and guards of security.
Additionally, you will need a minimum of 15-20 key employees to effectively manage a medium to standard livestock farm. Please note that there will be times when you will need to be able to hire experts to help you with a job. If you are just starting out, you may not have the financial capacity or the business structure to retain all of the professionals expected to work with you, so you should plan to partner with the veterinary clinics around you.
Service delivery process on a beef farm
When it comes to producing milk on a beef farm, the process is simple and straightforward; in fact, a livestock farm can operate successfully on autopilot with little or no supervision from the owner.
Basically, when the cattle (female) are mature enough to produce milk, a certain time of day is chosen (usually in the morning) during which the cattle will be milked. Once the milk has been collected, it is stored in a clean container or delivered directly to the customer on request.
When breeding farms capable of running a standard business have collected the required amount of milk for the day, they are engaged in the processing and production of dairy products such as; cheese, powdered, condensed and condensed milk, butter and yogurt, etc., then marketed or sold in community retail stores.
In addition, once the cattle mature, they are killed. then the beef is sold to customers or sent to farmers’ markets or hotels and restaurants on request. Wool is also collected and sold to textile companies. It is important to clarify that a livestock farm can decide to improvise or adopt any process and business structure that guarantees efficiency and flexibility; The above commercial breeding process is not set in stone.
Creation of a cattle breeding business. Marketing plan
- Marketing ideas and strategies
As a breeder, you will need to prove that you have the ability not only to operate a breeding farm but also to supply beef, milk and wool in commercial quantities and on an ongoing basis. So, if you are planning to start your own cattle ranching business, you will need to build your capacity first before looking for sources of beef and milk supply for large hotels or processing and packaging companies. food that needs a steady supply of beef. and milk from breeding farms. …
The fact that the barrier to entry to starting a small-scale livestock business is low means that there are bound to be more players in the industry no matter where you choose your location. Basically, you have to come up with creativity and innovation if you want to create a market for yourself in the market available in your community, city, state, or country.
Here are some of the platforms you can use to promote your beef business and its products;
- Introduce your business by sending cover letters with your brochure to households, hotels, restaurants, food processors and processors that use beef and milk, textile companies that use wool, grocery stores and related businesses in the United States (if you are just starting out, you can focus on startups and small businesses). companies)
- Prompt participation in calls for tenders for beef, milk and wool supply contracts
- Open a livestock farm with a group to get the attention of the villagers who are your first targets
- Take part in road shows from time to time in targeted communities to sell beef, milk and wool.
- Promote your cattle ranching business in community newspapers, local TV and radio stations
- List your cattle breeding business in the yellow page ads (local directories) i>
- Using the Internet to Promote Your Livestock Farm
- Do direct marketing and sales
- Encourage the use of word of mouth marketing (referrals)
- Use the internet to promote your business
- Join local chambers of commerce around you for the primary purpose of networking and marketing your products; Most likely, you will receive referrals from these networks.
- Use the services of marketing managers and business developers to do direct marketing for you.
Factors to Help You Get the Right Product Rating
One of the key factors that will help you sell beef, milk and wool at the lowest prices is the direct purchase of livestock, feed, medicine and other tools and equipment. ‘breeding. manufacturers in fairly large quantities. The point is, the more products you buy directly from manufacturers, the less you buy.
Another strategy to help you sell beef, milk and wool at the right price is to focus on marketing and promoting your brand to keep operating costs to a minimum. Besides the fact that this strategy will help you save on costs, it will also help you get the right prices for your products.
Strategies to increase your brand awareness and create a corporate identity
If you are intending to start a cattle ranching business in order to develop a business outside the city from which you intend to work to become a national and international brand by opening up farm chains. In breeding and franchising, you should be prepared to spend the money to promote and advertise your brand.
No matter what industry you belong to, the truth is that the market is dynamic and it takes ongoing brand awareness and promotion to continue to attract your target market. Your corporate identity has a lot in common when it comes to building a long-term profitable business.
Here are the platforms you can use to build your brand awareness and brand identity for your breeding business;
- Place advertisements both in print media (newspapers and health magazines) and on electronic media platforms
- Sponsor relevant community events / programs
- Use on the Internet and social networks. media platforms such as; Instagram, Facebook, Twitter, YouTube, Google +, etc. To promote your products
- Install your billboards in strategic locations in your city or state
- Take roadshows to targeted areas from time to time to market your livestock farm.
- Distribute your flyers and leaflets in targeted areas
- Contact households, hotels, restaurants, food processors and manufacturers that use beef and milk, textile companies that use wool, grocery stores and related businesses in the United States to inform them of your company and the products you sell
- List your livestock business in local directories / yellow pages
- Promote your livestock business on your official website and use strategies to help drive traffic to the site.
- Place your Flexi banners in strategic positions where your livestock farm is located.
- Make sure all your employees are wearing your branded shirts and all your cars and trucks / vans have your company logo on them.