Meat Processing Business Plan Business Plan Articles If you are creating a meat processing company and require investment, it is likely that you will require a business plan. The experts at Pro Business Plans have extensive experience working with companies to prepare professional plans for investment and strategy.
New York part-time farmer Bob Comis sent us a link to a post on his Stonybrook Farm blog for consideration in the Digest, but we liked it so much we asked him if we could publish an edited version in its entirety.
Part of the problem is that many supermarkets charge by the pound for things like lettuce whereas farm stands generally charge by the piece. Local meat, poultry, and eggs, however, are dramatically more expensive than industrial, often two, three, or even more times so. Are these dramatically higher prices legitimate, in the sense that they reflect business plan for meat processing true cost of raising that food?
I believe very strongly that these prices are as artificially high as industrial food is low. Local farmers are unwilling or unable to scale up to reasonable production levels, so they compensate for low volume by charging exorbitantly high prices to get their cash flow up.
They rely on extortionate profit margins — but remember, their volume is low, so they are still barely making it. This is not to say that raising meat, poultry, and eggs on a small local scale is not more expensive than on an industrial scale. It is, and no matter how streamlined, no matter how efficient, it always will be.
Livestock farming is one area where economies of scale and industrial efficiencies are incredible. Profit margins of error The next time you talk to your livestock farmer, ask him or her what their production volume is.
Based on reasonable prices, cash flow on that volume is extremely low, and the cash flow requirements of fixed costs such as land, buildings, and equipment is very high, so those low-volume local farmers have to charge outrageous prices to bump up their cash flow.
Also, for the low-volume local farmer to stay economically viable, he also has to demand what amounts to an extortionate profit margin. It is, as I said, extortionate. Mainly they do so because they believe these are fair prices. The model you have bought into, based as it is on extremely low-volume farms, is not priced honestly.
Nor is it fair, especially to people with limited means, who would very much like to purchase local meat, poultry, and eggs, but cannot afford to do so. And last year I was hand-feeding the pigs three times per day, a very labor-intensive way to raise them.
Turn up the volume I believe very strongly that farmers should make a good living.
I think they should be comfortable. Farming takes skill, lots of hard work, and involves substantial risks, both financial and physical, and farmers should be amply rewarded for those things.
Contrary to the popular impression, this salary is actually quite good in our economy. Most of those families comprise two working adults, so what that statistic means is that a substantial percentage of people living in New York earn half, or less than half, of what I think farmers should make.
|Food Processing And Packaging In Nigeria: Business Plan + Guide||Model Business Plan for Meat Marketing Company South Coast Meat Processing and Marketing Project Livestock producers in the South Coast region of Oregon who want to market their meats locally have to drive several hundred miles to the nearest inspected slaughter and processing facility. USDA Rural Development provided funding and guidance for a study to 1 analyze the feasibility of a USDA inspected meat slaughter and processing facility for the Southern Oregon Coast and 2 develop a full scale business development and marketing plan for the local processor that could also serve as a replicable model for other projects.|
|Training Package Developer||We offer tips and advice on the essential elements for business success. Wondering how to start a deer processing business?|
|Top Business Stories||New to Meat Processing?|
What I do not believe is that farmers should get to this income level by charging extortionate prices. Which, as far as businesses go, is a very good profit margin.Meat processing is hard work. Finding able and willing employees challenges plants throughout the industry.
Finding workers and time to train them will be an important part of your business plan.
Tasty veggie burgers aren't enough for these companies, who want meat that tastes like the real thing — or is the real thing — without the health concerns or environmental footprint of. NMPAN is a national community of practice of people and organizations helping small meat processors thrive, and growing our shared wealth of information and innovation.
A planning expert at your side. Tim Berry is the recognized authority on business planning.
An expert business planner and principal author of Business Plan Pro, his advice and expertise guides you through every step of creating your business plan. Ask The Meatman's Own Beef Processing DVD! Video Clips of all of our DVD's!! Click Here To View. These are clips from the actual DVD's. This will give you a .
2 Small Meat Processors Business Planning Guidebook INTRODUCTION This guidebook walks you through creating a business plan for a small meat processing facility.
The example used is a real business plan, written by an existing small processor to obtain bank financing for a.