The beef cattle and poultry industry in Russia is actively developing. However, not every enterprise or farm has its own slaughterhouse, and the technical regulation of the Customs Union “On the safety of meat and meat products”, which came into force on May 1, 2014, establishes mandatory safety requirements for slaughter products and meat products. From May 1, 2014, the slaughter of productive animals must be carried out only at specially equipped production facilities and only identified productive animals and poultry are allowed for slaughter.
Production facilities at which the slaughter of productive animals and poultry will be carried out, the processing of slaughter products and the production of meat products are subject to state registration in accordance with the provisions of the technical regulations of the Customs Union. When designing a meat industry enterprise, one should be guided by the sanitary and veterinary requirements of VSTP 6.02-92. When working in a slaughterhouse, you should be guided by Order of the Ministry of Agriculture of the Russian Federation dated March 12, 2014 No. 72 “On the approval of rules in the field of veterinary medicine for the slaughter of animals and the primary processing of meat and other non-industrial slaughter products at slaughterhouses of medium and low capacity”, approved by the Main Directorate of Veterinary Medicine of the Ministry of Agriculture USSR 12/27/1983 “Rules for veterinary inspection of slaughter animals and veterinary and sanitary examination of meat and meat products” and technical regulations of the Customs Union “On the safety of meat and meat products”.
Therefore, before deciding to organize such a business, read all regulations. To organize such a business, you need to take care of several things:
- Availability of initial capital for the purchase of a mini-plant for a slaughterhouse;
- Purchasing or renting a plot of land suitable for this business;
- Business compliance with the standards of the Customs Union and Rospotrebnadzor and fire safety.
Business registration
How to register your business? Decide for yourself. You can open an individual entrepreneur if you are going to run a business on your own. You can have an LLC if you have partners. Which tax system should you choose? You can have a general taxation system or simplified tax system, you can register an agricultural enterprise, in this case you can participate in a competition to receive state support for business development. For our calculations, an LLC is registered and we use a simplified reporting system. As for licensing, this is not required for this business.
Products that are difficult to sell
First of all, it is blood. It is not so easy to find a buyer for it and therefore in most cases it is simply dumped, but sometimes a buyer is still found. For example, blood is used to feed leeches or produce blood sausage.
Blood is not the only difficult-to-sell meat product. The gastrointestinal tract and heads of animals are called “vetconfiscat” here
Very small calves, boars and animals that died along the way can also be sent here after slaughter.
Mini plant for starting a business
The purchase of this or that equipment for a given business depends on the number of productive animals that will be sent for slaughter daily. Slaughterhouse equipment is mainly presented on the market in the form of modular plants. These mini-factories are equipped with all the necessary equipment, equipped with microclimate systems, water and electrical communications, have all certificates of conformity of the Customs Union, meet the requirements of Rospotrebnadzor and fire safety standards. For the slaughter of each type of animal or bird, a separate block is purchased.
The option under consideration presents a mini-plant designed to receive 500 heads of poultry, 50 heads of small cattle, 50 heads of cattle and 50 pigs daily for slaughter. The cost of the equipment, including the staff block and the head physician’s office, will be 15 million rubles.
You should also purchase and install a sewage system for wastewater from production. Wastewater is mainly transported by special vehicles for subsequent disposal. If there is a centralized sewerage system nearby, treated wastewater can be dumped there rather than transported by truck. Therefore, when locating your business, take this into account and consider what will be more profitable for the business.
Also, the mini-plant, in addition to modular equipment, includes buildings or sheds for pre-slaughter livestock, a platform for manure and canes, a sanitary treatment point for vehicles and equipment used in transporting slaughtered animals.
If you do not purchase modules for your business, but are going to build a slaughterhouse yourself, then its construction is carried out in accordance with design documentation and veterinary and sanitary requirements. Permission to work is provided by Rosvetnadzor.
Timeframe for a meat production plant to reach self-sufficiency
For this business, the average payback period is from 3 to 5 years.
Business plan for a meat slaughterhouse processing cattle and pork meat
The business plan has a clear structure, contains detailed financial calculations, and the financial model allows you to flexibly change any business parameter. This is the optimal solution for those who plan to attract investments, want to get a loan or have a ready-made template for developing their business plan.
Structure of the financial model of a meat slaughterhouse
A financial model is a separate file in MS Excel format - essentially it is a separate product designed for business planning and calculation of all its indicators. Each of the parameters of the financial model can be changed manually. There are no macros in the financial model. All formulas are transparent and changeable.
Detailed calculation of investments for launching a slaughterhouse
While working on a business plan, we look at dozens of different sources of information. This includes data from equipment suppliers, industry portals, interviews with market experts, and official statistics - such systematic data analysis provides a complete picture of all project parameters: prices, equipment costs, premises costs, costs, etc. .
Business income plan
A necessary component of a full-fledged business plan is a flexible sales plan. It is important, on the one hand, to have a forecast for the business as a whole, and on the other hand, to be able to look at profitability in the context of a separate profit center or even a separate product.
Cash flow forecast for a meat slaughterhouse
The cash flow statement is the most important document in any business plan. Contains comprehensive information about the company's operating, investment and financial inflows and outflows, and also allows you to evaluate the overall picture of the company's performance.
Justification for choosing a land plot for opening a slaughterhouse
Based on the entrepreneur’s application, the site for the construction of a slaughterhouse is allocated by the state veterinary supervision authorities and Rospotrebnadzor. In this case, the slaughterhouse can only be located outside the populated area, at a distance from residential buildings, livestock premises, pastures, reservoirs, public places, children's and medical institutions no closer than 500 m.
Advice. Locate the slaughterhouse close to various farms that raise productive animals and poultry. It is believed that this business is seasonal. Therefore, when opening such a production, rely on farms so that there is a constant flow of livestock and poultry.
Meat production market overview
The stage is intended to further formulate the workshop development strategy and determine key indicators of success in the meat production industry. The initial data for this will be the results of the analysis of the collected information. As part of the business plan for a cattle slaughterhouse, this stage is of fundamental importance, since all further actions depend on it.
Based on the review results, we formulate the competitive advantages of the workshop and product:
- guaranteed supply volumes;
- quality of cutting and freezing;
- possibility of ordering chilled products;
- free delivery over a certain volume;
- flexible pricing policy.
Another direction in the field of agriculture is dairy farming. If you are interested in this area, then you can familiarize yourself with the business plan of a dairy plant for the production and processing of milk and dairy products with a financial plan, which reflects all the information for the successful development of the project.
Staff
Since it is better to start such a business outside the city limits, you will have to hire employees from the local population living in close proximity to the production. Therefore, a certain amount should be allocated for their training.
Personnel in the production of livestock and poultry slaughter must comply with labor safety instructions. Persons who are at least 18 years old, who have undergone a medical examination, training according to a special program, who have undergone an introductory briefing in the workplace on safety precautions, labor protection, on-the-job training and testing of knowledge of labor safety requirements are allowed to work in the slaughterhouse.
Organizational part of launching a meat processing workshop
Before starting the development and implementation of a business plan for a cattle slaughterhouse, it is necessary to provide the basis and proper formalization of all future areas of activity. The organizational and administrative components of a business are expressed in a number of actions:
- Choosing a location for organizing a meat processing workshop.
- Opening a legal entity or registering an individual entrepreneur.
- Tax registration and opening a bank account.
- Study of carcass cutting technology.
- Determining the circle of investors.
- Preliminary analysis of employee needs.
How much can you earn from this business?
Below are the average prices for the cost of operating an enterprise for the slaughter of livestock and poultry.
Pig | Cattle | MRS | Horse | Chicken | |
The client takes all slaughter products | 850 | 3950 | 250 | — | 50 |
The client takes the meat and fillet (offal, skin, head and legs remain) | 550 | 1000 | 100 | 1500 | — |
The client leaves the skin, legs, head | — | 2800 | — | — | — |
Storage of meat and offal up to 3 days is free, more than 3 days 400 rubles. per ton per day.
Nutrovka.
First, on a hanging path, the hind limbs of a cattle carcass are stretched, the pubic symphysis is sawed, the abdominal muscles are cut along the white line, the omentum (fatty tissue covering the stomach) is removed from the carcass, the gastrointestinal tract, the spleen with the pancreas, and the liver with the esophagus are removed. The liver consists of the trachea, right and left lungs, heart and liver. After removing the liver, the adrenal glands are removed and the film is cut along the spine in the area of the kidneys to separate them in order to prevent damage to the latter when sawing the carcass. On the evisceration conveyor, the insides are subjected to veterinary inspection. The tripe, mesh, rennet and book are degreased, freed from contents, washed and sent to the offal shop, the intestines to the intestinal shop.
Internal organs must be removed very carefully, without damaging the gastrointestinal tract, liver and inner surface of the carcass; for correct and easier removal, an electric dilator is used to fix the carcass. The resulting by-products are processed at the place of receipt or in the offal department. The heads are washed separately and sent for further processing.
Business plan for opening a slaughterhouse
Investment in opening a slaughterhouse
Below we will look at the financial calculation of opening a business for slaughtering livestock. Let's start with the required investment in this enterprise.
Total | |
year | |
Purchase of equipment | 23100000 |
Working capital | 285223 |
Organizational expenses | 10000 |
Total expenses | 23395223 |
Let's take a closer look at purchasing equipment. The project initiator decided to organize a mobile slaughterhouse, which consists of ready-made blocks supplied from specialized manufacturers.
Equipment | |
Modules | 15000000 |
Personnel module | 0 |
Delivery and installation of equipment | 300000 |
Other equipment | 300000 |
Foundation | 1000000 |
Canopy | 500000 |
Sewage system | 2000000 |
Fence | 3500000 |
Other costs | 500000 |
Livestock truck | 0 |
Total | 23100000 |
The project implementation period from the beginning of business registration to the official opening will take us 6 months; the schedule of project implementation stages can be found in the finished financial model of the slaughterhouse.
Staffing table
The table below provides a list of the necessary personnel for the smooth operation of the slaughterhouse.
Job title | Qty | Salary | Total |
Human | rub/month | Payroll | |
Director | 1 | 30000 | 30000 |
Veterinarian | 1 | 20000 | 20000 |
Brigadier | 1 | 30000 | 30000 |
Choppers | 12 | 20000 | 240000 |
Technical Officer | 1 | 20000 | 20000 |
Helper workers | 2 | 15000 | 30000 |
TOTAL | 18 | 135000 | 370000 |
Slaughterhouse revenues and costs
When preparing the calculation, the business initiator conducted a marketing study that showed the demand for this service in the region of presence; the following volumes were taken to calculate revenue.
Planned production volume, pcs/day | PC. | Weight, kg. | total weight, kg. |
farm poultry | 500 | 1,2 | 600 |
Cattle | 50 | 450 | 22500 |
MRS | 50 | 65 | 3250 |
Pigs | 50 | 100 | 5000 |
Total, day | 650 | 616 | 31350 |
The final annual revenue figures were as follows.
Total | Total | |
1 year | 2 year | |
Revenue from slaughter services | 21978000 | 43956000 |
Total revenue | 21978000 | 43956000 |
Along with revenue, fixed and variable costs were calculated, and the following table was prepared based on the calculation.
Total | Total | |
1 year | 2 year | |
Fixed expenses | ||
Wage | 3140000 | 4440000 |
Payroll taxes | 967120 | 1367520 |
Rent | 133333 | 160000 |
Depreciation | 3080000 | 4620000 |
Accountant services | 100000 | 120000 |
Variable expenses | ||
State veterinarian services | 1667952 | 3335904 |
Workwear | 110000 | 120000 |
Communal expenses | 1679559 | 2875118 |
Transport | 0 | 0 |
50000 | 60000 | |
Security | 550000 | 660000 |
Detergents and disinfectants | 285000 | 360000 |
Removal of reinforced waste goods | 529474 | 1058948 |
Solid waste removal | 24000 | 36000 |
Biowaste removal | 2979504 | 5959008 |
Training | 20000 | 0 |
Other variable expenses | 610000 | 732000 |
Total costs | 15925943 | 25904499 |
Net profit and payback of the animal slaughter business
The received inputs were placed in a summary table, and payments of all necessary taxes on the enterprise’s revenue were taken into account.
Total | Total | |
1 year | 2year | |
Enterprise revenue | 21978000 | 43956000 |
Production cost | 15925943 | 25904499 |
Gross profit | 6052057 | 18051501 |
Loan interest | 0 | 0 |
Profit before tax | 6052057 | 18051501 |
Taxes | 423644 | 1263605 |
Net profit | 5628413 | 16787896 |
Net profit with cumulative total | 5628413 | 22416309 |
Now we can calculate the payback of our business, as well as a number of other important business indicators, such as NPV and IRR.
Planning horizon | 2 years |
Enterprise revenue, rub. | 65934000 |
Enterprise profit, rub. | 28044723 |
Investments in the project, rub. | 23393973 |
Discount rate | 15% |
Payback period, months | 20 |
Discounted payback period, months. | 23 |
NPV | 799 328 |
IRR | 17% |
Profitability,% | 42,5 |
Financial and economic section of the cattle slaughterhouse
Operating expenses for current activities
Commercial activity involves constant financial transactions for the purchase of livestock, maintenance and repair of equipment, payment of labor and settlements with the state. When writing a business plan for meat production, you need to clearly define the total amount of these costs and be able to describe their structure in detail, since they largely form the characteristics of the profitability and payback of the project.
In our case, an approximate list of expense items for current activities will be as follows:
- rental payments for land or premises of a meat processing - XXX rubles;
- payment for utility services – XXX rub.;
- settlements with suppliers – XXX rub.;
- prevention, depreciation and repair of equipment – XXX rub.;
- commercial expenses – XXX rub.;
- wage fund and social contributions - XXX rub.;
- taxes – XXX rub.
- other operating expenses – XXX rub.
In total, for uninterrupted meat production , we will need XXX rubles. per month.
Revenue from core activities in the business plan of a cattle slaughterhouse
The main source of revenue is sales. The more attention is paid to all aspects of promotion, demand generation and interaction with customers, the more revenue we will receive. When developing a business plan for a meat processing shop, maximum attention should be paid to this issue.
Main factors influencing revenue:
- uninterrupted supply of livestock;
- exemplary cutting and quick freezing or chilling;
- branding each product with a quality mark;
- flexible pricing policy and special conditions for wholesale buyers.
Implementation structure:
- Pork – XXX rub.
- Beef – XXX rub.
The volume of revenue from core activities will amount to XXX rubles. per month.
Workshop team
This type of activity does not require special professional specialization or qualifications; the main thing is relevant work experience, endurance and a steady hand. Most of the team are workers of the main production, ensuring the implementation of all stages of the business plan of the cattle slaughterhouse .
Minimum required staff at the start of the project:
- shop manager - XXX rub.;
- production foreman - XXX rub.;
- accountant – XXX rub.;
- HR specialist – XXX rub.;
- workers - XXX rub.;
- drivers – XXX rub.;
- marketer and sales representatives – XXX rub.
Conclusion
Is it profitable to open a business for slaughtering livestock and poultry? On the one hand, equipment for opening a certified slaughterhouse is not that cheap and requires sufficient investment. On the other hand, small farms are growing like mushrooms after rain and they simply cannot sell their products without the accompaniment of a veterinarian. The development of this business will also be facilitated by the introduction of a legal and technological framework for automatic certification of those goods that are finished products, which will allow control of the legal circulation of products. If the enterprise decides to develop and increase its profits, then it should develop such an area as cutting and packaging meat, with their subsequent processing into semi-finished products, animal feed, etc.
Reviews from our clients
Review of a business plan for a cattle farm for raising and breeding beef cattle for meat.
It is very difficult to get a bank loan to develop your own production. To get a loan, you need to collect a lot of documents and provide bankers with a good business plan. That's why we started working with Plan-Pro. The company's consultants drew up a very competent business plan, which was accepted with minor modifications, and we received a loan for 80 million rubles.
Alexander Koshkarev, farmer, Krasnodar region
Feedback on a goat farm business plan for breeding goats
A high-quality and meticulously developed business plan drawn up by Plan-Pro.ru allowed our goat breeding farm to attract investment worth 40 million rubles. It is especially important to note that the draft business plan was submitted on time and no modifications were required. Special thanks for the stylish document design.
Yuliy Nikolenko, director of the goat farm
Feedback on the business plan of a dairy plant for the production and processing of milk and dairy products
We bought a ready-made business plan for the development of a dairy plant on the website plan-pro.ru. The work was done with high quality, the business plan is easy to use, well designed, easy to make changes, the financial model of the dairy plant is quite deeply detailed and convenient for adjusting figures , all its sections are understandable.
Nikolay N. L., Lyubertsy, milk production