CATTLE PEN FATTENING BUSINESS PLAN

Table of Contents
Executive Plan..............................................................................................................................................3
Mission, Objectives and Keys to success..................................................................................................4
Mission....................................................................................................................................................4
Vision.......................................................................................................................................................4
Core Values..............................................................................................................................................4
Objectives................................................................................................................................................4
Keys to Success........................................................................................................................................4
Company Summary......................................................................................................................................6
Ownership...............................................................................................................................................6
Company Structure..................................................................................................................................9
Understanding Cattle Fattening.................................................................................................................11
Operational Requirements.........................................................................................................................14
Feedlots.................................................................................................................................................14
Operational Strategy..................................................................................................................................17
Filling the Feedlot..................................................................................................................................17
Choosing Cattle (Feeders) for feedlots...................................................................................................18
Feeding System..........................................................................................................................................21
Home-made Feed..................................................................................................................................21
Complete Feeds.....................................................................................................................................25
Health Management & Disease.............................................................................................................26
Profitability in a Feedlot.........................................................................................................................27
Profit Margins in Feedlotting.................................................................................................................28
Production Cycle....................................................................................................................................31
Marketing Strategy....................................................................................................................................35
Market Analysis.........................................................................................................................................37
Demand.................................................................................................................................................37
Market Segmentation............................................................................................................................37
Industry Analysis........................................................................................................................................39
Competition and Buying Patterns..........................................................................................................42

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 CATTLE PEN FATTENING BUSINESS PLAN

SWOT Analysis...........................................................................................................................................44
PEST analysis..............................................................................................................................................45
Financial Statements...................................................................................................................................47
Start-up Costs........................................................................................................................................47
Pro Forma Income Statement................................................................................................................49
Variable Costs per Cycle.........................................................................................................................50
Pro Forma Cash Flow.............................................................................................................................51
Pro Forma Balance Sheet.......................................................................................................................52
Break-even Analysis...............................................................................................................................53
Payback Period......................................................................................................................................53
Risk Analysis...............................................................................................................................................54
Potential Sources of Finance......................................................................................................................58
Equity Financing.....................................................................................................................................58
Debt Financing.......................................................................................................................................59
Top reasons for failure of cattle pen fattening business in Zimbabwe.......................................................61
Directory....................................................................................................................................................63

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Executive Plan

Our company intends to fatten cattle in pens/feedlots. Cattle will be purchased from the rural
areas around Matabeleland where it is cheap, and transported to our farm which is located close
to Bulawayo. We will then feed the cattle for a period of 90 days. During this period, we expect
the cattle to increase in weight, and an increase in the quality of the beef to super grade. We will
then sell the cattle, and make a profit. We will continuously do this throughout the year.

Most important to us is our financial success and we believe this will be achieved by offering
high-quality fattened cattle while minimizing costs. We have created financial projections based
on our experience and knowledge of the area. With a start-up expenditure of $20,167 we can
generate $67,000 in sales by the end of the first year, and produce good net profits.

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Mission, Objectives and Keys to success

Mission
Our mission is to provide super grade beef and healthy fattened cattle to customers at affordable
prices. We value our relationships with current and future customers and hope to communicate
our appreciation to them through our outstanding, guaranteed product quality, personal service,
and efficient delivery. Our commitment to our customers and the country of Zimbabwe will be
reflected through honest and responsible business. We will provide a safe, friendly working
environment for our employees.

Vision
To produce high quality of beef that can be marketed to the whole of Zimbabwe

Core Values

 Customer satisfaction
 Commitment to achieving results
 Sustainability
 Corporate Social Responsibility
 Employment Creation
 Innovation
 Integrity

Objectives
 Achieve annual sales of more than US$50 000
 Create jobs as we expand our operation
 Produce cattle with super grade beef
 To develop a sustainable farm, surviving off its own cash flow.

Keys to Success
 Purchasing good breeds of cattle
 Giving the cattle high quality feed
 Providing the required medication and vaccination to cattle

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 Purchasing cattle at a low price
 Minimizing feed cost

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Company Summary
Our company intends to fatten cattle in pens/feedlots. Cattle will be purchased from the rural
areas o Muzarabani where it is cheap, and transported to our farm which is located close to
Harare. We will then feed the cattle for a period of 90 days. During this period, we expect the
cattle to increase in weight, and an increase in the quality of the beef to super grade. We will
then sell the cattle, and make a profit. We will continuously do this throughout the year.

Products

Our end products will consist of many species of high grade fattened cattle. We will manage our
cattle systematically, in feedlots, feeding them with quality, nutritious feeds, till they reach the
target weight.

Ownership
You must choose a legal structure for your business, and there are 3 options you might consider.
The structure you choose will depend on the size of your business, along with your personal
circumstances and how much you want to grow the business. Keep in mind that if you need to,
you can change your business structure later on if you find that a new structure will meet your
needs better.

Sole Trader

You can operate your business as a Sole Trader. A sole trader is a person trading on their own.
The sole trader controls, manages and owns the business, is personally entitled to all profits and
is personally liable for all business taxes and debts. As a sole trader you can usually begin the
business without following many formal or legal processes to establish it. You will employ other
people to help run the business.

The advantages of operating your business as a sole trader are that it is a simple set up and
operation, you retain complete control of your assets and business decisions, there are
fewer reporting requirements, and any losses incurred by your business activities, may be offset
against other income earned (such as your investment income or wages). It is also relatively
easy to change your legal structure if the business grows, or if you wish to wind things up. The

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disadvantages are unlimited liability which means all your personal assets are at risk if things go
wrong, and it is also harder to raise the start-up capital when you are alone.

Partnerships

In a partnership, two or more people run a business together. Each partner shares responsibility
for running the business, shares in any profit or loss equally, unless the partnership agreement
states otherwise, and is liable for any debt within the partnership. A partnership is relatively
inexpensive to set up and operate. It is wise to establish your partnership with a formal written
partnership agreement.

The advantage of a partnership is that it is easier to raise the start-up capital, as all the partners
will contribute towards the start-up capital. If 2 or more of the partners are actively involved in
the business, there will be an advantage of skills diversification, whereby one might have
experience in the cattle business, and the other experience with accounting issues etc. The
combined skills, experience and knowledge can provide better products and service in the
business. You can also consider a partnership if you are based outside Zimbabwe, and you find
someone in Zimbabwe who will run the business on your behalf. A partnership is also simple
and inexpensive to set up, there are minimal reporting requirements, and you can share
management/staffing responsibilities.

The disadvantages of a partnership include potential for disputes over profit sharing,
administrative control and business direction. Another disadvantage is joint and several liability
of partners, which means that each partner is fully responsible for debts and liabilities incurred
by other partners – with or without their knowledge. Changes of ownership can be difficult and
generally require a new partnership to be established.

Company

A company exists as a formal and legal entity in its own right. It is separate from its
shareholder(s) or owner(s). It’s responsible in its own right for everything it does and its finances
are separate to your personal finances. Any profit it makes is owned by the company, after it
pays Corporation Tax. The company can then share its profits. It will have to be registered at the

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Registrar of Companies. A company is a complex business structure, with higher set-up costs
and administrative costs because of additional reporting requirements.

The advantages of registering your business as a company include limited liability to the owners
of the business, ability to raise significant amount of capital, and it is also easy to sell and pass
on ownership. A company will require you to open bank account, and as a registered company
you will then have access to loans and credit facilities for you business. Operating as a company
increases trading confidence and credibility. Customers and suppliers will feel more confident
and comfortable doing business with you.

The disadvantages include significant set-up costs and maintenance costs, limited or no control
of company affairs, complex reporting requirements and company can't distribute losses to its
shareholders.

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Company Structure

BOARD OF DIRECTORS

MANAGER/ACCOUNTANT

Cattle Keeper

Board of Directors

The board of directors' key purpose is to ensure the company's prosperity by collectively
directing the company's affairs, whilst meeting the appropriate interests of the owners of the
company. They determine the company's vision and mission to guide and set the pace for its
current operations and future development.

Manager/Accountant

One person will act as the manger and accountant. This person will be the owner of the business.
The duties will include:

 Staff management, supervises and coordinates activities of all the workers, assigns
workers to duties

 Directs maintenance and repair of facilities and equipment at the farm

 Trains new workers

 Day-to-day operational decisions

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  Business planning and operations, strategic planning, business management

 Giving employees their salaries

 Prepare, examine, and analyze accounting records, financial statements, and other
financial reports to assess accuracy, completeness, and conformance to reporting
and procedural standards.

 Analyze business operations, trends, costs, revenues, financial commitments, and

obligations, to project future revenues and expenses or to provide advice.

 Develop, maintain, and analyze budgets, preparing periodic reports that compare
budgeted costs to actual costs.

 Compute taxes owed and prepare tax returns, ensuring compliance with
payment, reporting and other tax requirements.

Cattle Keepers

Duties include:

 Feeding the cattle

 Miscellaneous chores which includes include medicating, vaccinating, repairing

equipment, mowing grass, removing caked litter

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Understanding Cattle Fattening

Feedlotting (also called pen fattening) involves the feeding of beef cattle with a protein balanced,
high-energy diet for a period of 70 to 100 days under confinement to increase live weights and
improve degree of finish and thus obtain better grades at the abattoir. Pen fattening enables the
animals to express fully their genetic potential for growth. It also enables the profitability of beef
production to be maximised, provided the beef price to feed cost ratio is favourable.

The aim of pen feeding is to transform feed into meat of a required quality as efficiently as
possible. The best measure we have of this in the live animal is food conversion efficiency/ratio
(FCE/FCR) i.e. kg of feed per kg live weight gain e.g. if 8Kg of feed leads to 1 Kg live weight
gain of the cattle, then the FCR is 8:1. The lower the FCR, the more profitable you become.

It is important to emphasize the efficiency of feed use as if you subtract the induction cost of the
animal; food constitutes some 90% of the remaining variable costs. So together with the
slaughter price of the animal, feed has the major influence on the profitability of your feedlot
operation.

Reasons for Pen fattening

Reasons for pen fattening can be summarised as:

 To add extra weight to stock at a younger age and thus increase turnover and
maximize output from the beef enterprise

 To improve the degree of fatness and fleshiness (finish) of the carcass in order to achieve
higher grades and better prices

 To take advantage of seasonal beef price fluctuations at the abattoirs. Prices are generally
favourable from October to February.

The basic principles of pen fattening

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A beef carcass comprises muscle, fat and bone. At birth, there is very little fat in a carcass and
initial development is mainly bone and muscle growth. As the animal matures and gains mass, a
stage is reached when fat deposition accelerates. Once an acceptable level of carcass fat is
reached, an animal is said to be finished and can be slaughtered. The live mass and fat content
considered acceptable for slaughter should be decided by market demand.

Feeding energy is the pacesetter for meat production and performance in the feedlot exercise.
Energy consumed in excess of maintenance requirements is used for muscle tissue synthesis
(beef production), and the efficiency of energy use above maintenance remains constant. Hence
the greater the energy intake by an animal above maintenance the smaller the maintenance cost
per unit of gain and the cheaper the gain becomes.

Generally as the digestibility of feed increases, so does the voluntary feed intake up to certain
limits. The combined effects of high digestibility and high intake, together with higher net
efficiency, means the efficiency of use of energy will be greater if cattle are fed ad lib with diets
of high digestibility or a high level of metabolisable energy (ME). Total feed consumed, net
digestive efficiency, cost per unit of feed and return per kilogram of meat sold, other
management costs and the optimum length of the feeding period determines margins realised.

Feeding cattle in order to obtain the right amount of fat on and in the muscle, and a higher
carcass mass, can be done in many ways. In Zimbabwe the most common practices include:

1. Grazing on veld. Usually steers have to remain on the veld until they are two years or
older before a suitable carcass fat content is reached. Cows are frequently fattened on
good summer veld and achieve good finish in a reasonably short period of time.
2. Planted pastures can be used for fattening and growing out animals and the growth rates
achieved are better than on veld. The most common practice is the use of annual ryegrass,
where weaners go on to the pasture at weaning in autumn and are ready for market by
Christmas. Although summer pasture can be used, this practice is often not successful
because feeding starts in spring when the price of feeders is relatively high and finished
animals are only ready in autumn, when beef prices are relatively low.

3. The majority of cattle marketed through abattoirs come from feedlots. These include:

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 On-farm feedlots. Many farmers fatten animals in pens or large paddocks, using
bought-in or home-grown feeds. The livestock can be home produced or
purchased animals.
 Commercial feedlots are probably the major method of finishing livestock. The
feedlotter, often a speculator, buys animals for the feedlot. Ownership of the
animal, and therefore the risk associated with feeding, are the responsibility of the
feedlot owner. There are also custom feedlots, where the feedlot operator does
not buy animals, but the owner of the animal sends them to be fattened e.g. to
Montana Meats. In the latter case, risk usually remains with the owner of the
animal.

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Operational Requirements

Feedlots
A beef cattle feedlot/pen is a confined yard area with watering and feeding facilities where cattle
are completely hand or mechanically fed for the purpose of beef production. Feeding is done
under confinement to prevent loss of energy through movement.

Why confine cattle within pens?

The confinement of cattle is fundamental for the operation of beef feedlots for the following
reasons.

 The confinement of animals within feeding pens improves control of the environmental
impacts of cattle.

 Feedlots are constructed to allow efficient collection of manure and effluent and provide
protection to surrounding land, surface and ground water resources.

 The confinement of cattle permits the close health inspection of animals on a regular
basis, and the removal of ill or injured cattle for treatment.

 The confinement of cattle allows the efficient provision of feed and water.

The feedlot must provide for:

 The proper construction and maintenance of facilities to high standards and the
employment of full time, well trained and sufficient personnel.

 The correct siting of the feedlot to meet the needs of the confined animals for proper
shelter from the weather. A well drained, hard standing surface and a constant supply of
suitable and sufficient food and water.

 Consulting of veterinarians experienced with feedlot animals whose instructions

regarding the maintenance of animal health and welfare must be followed.

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  Sick animals to be quickly identified and isolated in proper sick bay facilities with
appropriate treatment instituted.

 Special facilities for the proper care and handling of offspring born to confined mothers

 Constant monitoring of food quality, palatability, and disease processes.

Design and Layout

Proper housing is important in successful cattle fattening operation. Adequately protect animals
against the adverse effects of weather when they are raised in relatively small areas. The
permanent type of housing consisting of roofing, timber frames, concrete floor, feed trough and
water troughs are used in most farms. The shelter is open-sided and is located near the farmer’s
house or under the shade trees. Building height ranges from 1.79 to 1.9 meters while the width
varies from 2.1 to 2.7 meters. Each animal can be allocated with 5 to 10 square meters. Cattle
housing must offer very easy access to food and water, freedom of movement, ventilation that
prevents harmful effects from poor air quality and natural ventilation and light.

The floors for the fattening pens must be smooth but not slippery. Housing must include a clean
and dry area with ample bedding of straw or other suitable material. Feet problems are less
severe in straw yards, mastitis tends to be a great problem that in cubicle-housed cows. If the
straw yard system is chosen, best possible straw yard management should be implemented with
frequent clearing of yards (maximum 5weeks) and plentiful bedding, with dry straw, both
mornings and evenings. Appropriate design of yards, avoiding dampness and contamination
from water troughs and narrow entry points, is equally important.

Basically, the design and layout of the feedlot depends on permanency, size of operation, method
of feeding and feed supply. It must be sited close to feed stores, handling facilities and water
supplies. The feedlotter must also consider drainage by siting on a 2% slope or on rocky ground
and where there are windbreaks. A roof is not usually necessary, except over the feed troughs to
prevent wetting of the feed in rainy weather and bleaching and loss of vitamins in hot sunny
weather.

Space Allocations

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A floor space allocation of 5-10 square meters/head is ideal depending on size and breed.
Feeding space allocation should be 30-50cm/head depending on whether the animals are poled
or horned. Feed must be offered free choice and at least 50l/head of drinking water must be
available. A water reserve that carries 2-3days supply must be installed in case of pump or
borehole failure. Water troughs must be easy to clean, have a drain plug and sited far away from
the feed to prevent fouling of the water. It can be economic to have several pens drinking from
the same water trough.

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Operational Strategy

Filling the Feedlot

Feedlot managers must be aware of the fact that keeping a feedlot enterprise running, a
continuous income is needed. The only way this can be achieved is by having livestock to sell all
the time. This is a difficult part of feedlotting, because animals remain in a feedlot for 90 to 120
days. The feedlotter must therefore predict market demand, and consequently predict selling
price at least three months ahead. A continuous source of feeders is needed, but not always
available.

Livestock can be obtained directly from farmers or be bought by private treaty through an agent
or at livestock auctions. Where a buy-in feedlot system is used, buyers must be experienced in
evaluating the potential for fattening of different types of animal (maturity type, age, gender) in
relation to the market demand (price) of different grades of carcass. Funds to buy in animals
must be available at all times. A lack of funds to buy in animals when prices are favourable
could lose an opportunity to make a profit.

Live stock is usually cheaper in the rural areas. People in areas like Muzarabani, Dande and
Guruve have plenty of cattle. They are also in need of money for school fees, food, groceries,
clothes etc. They have cattle, but they do not have cash, so they sell their livestock in order to
get cash for their needs. Because of the large supply of cattle in those areas, and their need of
cash, the prices of the cattle are low. You can buy cattle in Muzarabani from as low as $150,
depending on its size and type. Usually the prices of most of the cattle are from $150-$300,
which is cheaper compared to other parts of the country. You need very good negotiation skills,
so that you buy the cattle at a low price. You should be able to make rough calculations and
estimate the live weight of the cattle. If you are not careful, you will make a loss before you even
start fattening the cattle.

Transport

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You will have to hire lorries to transport your cattle from the rural areas to your farm. Transport
is not usually a problem, as there are many transporters who are in the business of transporting
cattle from the areas where cattle is cheap. The transportation cost from areas such as
Muzarabani or Guruve to Harare is $50 per head. The distance is about 300km. Meaning that if
you buy a beast at $150 in Muzarabani, the buying price is actually $150+$50 = $200.

Police Clearance and Veterinary permit

There are some requirements for you to be able to transport cattle from one area to another. You
need a police clearance and veterinary permit. You get these from in the area you purchased the
cattle from. You have to put aside $5/beast for the police clearance and veterinary permit. The
transporters will help you get the clearance and the permit.

Size of Feedlot
There is not an optimal size for a feedlot. Even a farmer feeding a single animal can make a
profit. In the case of a large enterprise where its sole source of income is the feedlot, the feedlot
must be large enough to pay for running costs such as salaries, transport, cost of equipment and
so on.

Choosing Cattle (Feeders) for feedlots

There are many factors to consider when choosing cattle for feedlots.

Breed
British and continental breeds (Angus, Sussex, Hereford, Charolais and Limousine) and their
crosses are better performing in the feedlot compared to the Zebu types, that is, Afrikander,
Mashona, Tuli and the Nkone. It should also be noted that some breeds fatten earlier (Hereford
and Angus compared to Charolais and Sussex) and should be slaughtered before they get too fat.
The native breeds like Mashona are the ones which are usually used in Zimbabwe for cattle
fattening, and they perform well.

Sex
Females are earlier maturing than steers and steers in turn are earlier maturing than bulls. Bulls

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can do well in feedlots, but often cause problems by fighting. Females can do well in feedlots,
but often have poor growth rates partly because they reach carcass finish at an earlier age and
there is a tendency to be tardy in sending them for slaughter. Disruptions caused by females
coming on heat could be a contributory factor. Heifers consume slightly less feed than steers and
are about 7 % less efficient. They finish sooner and their corresponding minimum mass should
be approximately 10% less than for steers. Bulls and short scrotum bulls grow faster, are most
efficient and grade better than steers. This is provided they are sold at milk tooth.

Age
Animals can be placed in the feedlot at any age, usually after weaning. In practice animals tend
to arrive at feedlots shortly after weaning (7 to 9 months of age), as yearlings (12 to 18 months
of age) or at two and a half years of age. In most feedlots there is no differentiation in feeding
regime between animals of different ages and it has been found that irrespective of the age,
animals tend to gain about 150 kg and are then ready for slaughter. Cattle placed on high energy
rations at an early age tend to deposit fat more rapidly than if they are kept on low energy diets
for a time before being placed on a high energy ration.

Arrival

On arrival at the feedlot animals must be processed. Processing varies from feedlot to feedlot,
but usually includes:

 Dose and dip. Dipping is essential, but many people question the need to de-worm
animals arriving at a feedlot. A positive response to dosing is often not seen, possibly
because many farmers dose their animals before selling them.

 Supplementation of animals prior to putting them in the pens will get them used to
eating concentrates and boost animal growth to achieve target induction masses.

 Vaccinate all animals against botulism, anthrax, quarter evil, IBR and any other
diseases the veterinarian considers essential in the area where the feedlot is
situated.

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 Administer growth promotents. These have been shown to be highly cost effective.
Injecting Vitamin A is usually worth the nominal cost involved.

 Identify and number the animals for record keeping purposes.

 On arrival at a feedlot it is good practice to group animals according to size and sex.
Large animals tend to bully smaller animals and keep them away from feed troughs.

 The initial weight of animals should be recorded, preferably after 7 to 10 days in the
feedlot. At this time, careful observation can identify poor performers and these can, at a
next weighing which ideally takes place two to three weeks later, be culled if the mass
gains confirm the earlier observations.

 Horned animals are a problem. Dehorning sets an animal back a great deal. Leaving
animals with horns can lead to severe losses resulting from damage to other animals and
bruising. It is best to refrain from buying in animals that have not been properly
dehorned.

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Feeding System
Many feedlotters mix their own ration, usually a complete feed, using the most readily available
ingredients at the best price they can bargain for. Where home-produced feeds are available at
low cost e.g. silage, the profitability of a feedlot can be improved.
Other feeding systems include:

 Buying in a complete feed. If large volumes of feed are bought, a better price can be
negotiated. This option must always be investigated, especially when beef prices are
good and ingredients are difficult to obtain. Cost of transport often offsets gains made on
the feed price.
 Cafeteria feeding systems have been developed and have the advantage that the animal
selects an increasingly concentrated diet over time, which leads to greater efficiency of
feed utilization. The two cafeteria systems commonly used are the finisher feed system
and the PRAM (protein-roughage-additive-mineral) system. To ensure profitability,
many big feedlots employ a nutritionist who reformulates the ration or feeding system
continuously. A nutritionist can buy ingredients and formulate the cheapest ration in
relation to animal performance by monitoring markets continuously.

Home-made Feed
This section is important to those who might want to consider making their own feeds, in order
to reduce costs, and increase profitability of the cattle fattening business. It is beyond the scope
of thus business plan to provide you a formula for home made feeds. You will have to consult a
nutritionist. It is of great importance for your home made feeds to contain all the nutrients
needed for fattening the cattle, in the right proportions.

Energy levels and sources

The energy level of the diet should be as high as economically possible. Ideally it must be in the
region of 70 to 80 % Total Digestible nutrient (TDN) (10.5 to 12 MJME/kg on dry matter basis).

Maize is the most commonly used source of energy in this country. For convenience and to
provide roughage, it is fed in the form of snap corn containing 75 to 83 % grain. Generally, the
performance of animals on diets containing different energy feeds will be closely related to the
energy content of the diets assuming it is correctly balanced in other respects. Sorghum can be

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used and taken to be 89 % maize value. The white varieties are better than the reds. The choice
of the feed should be dictated by performance in relation to cost. For some feeds the quantities to
be included in the diet must be restricted. Feeds containing high levels of oils such as
cottonseed, sunflower and germ meal need to be restricted so that the oil content of the diet does
not exceed 7%.

Feed grade wheat should not exceed 50% of the diet to avoid digestive disorders and reduction
in intake. Molasses, which can improve the palatability and stability of the mixtures, should not
exceed about 55% of the diet. It is usually included at 30 % of the diet. The value of silage in
fattening diets is largely determined by the amount of grain in the silage. It should be noted that
silage in pen fattening diets have an influence on protein and energy addition and if well
balanced this can reduce costs significantly.

Roughage levels and sources

Although efficiency of energy use increases with increasing energy concentration, digestive
disorders occur and efficiency declines if the diet contains inadequate roughage. A minimum of
15 to 20 % roughage should be included in the diet. This equates to 7 to 14 % crude fibre
depending on types of concentrates and roughage used.

A wide range of roughages are suitable for inclusion in high-energy diets. These include maize
sheath, cobs and stover, silage, grass and legume hay, cottonseed hulls groundnut hulls and
sunflower hulls. While less important than the concentrate portion of the diet, the palatability and
nutritive value of the roughage can affect feed intake, rate of gain and efficiency of feed
utilization. Cottonseed hulls groundnut hulls and sunflower hulls and roughage substitutes such
as sawdust and paper products generally give below average results. Jack beans and soya beans
hays contain the enzyme called urease, which quickly break down urea to its products and may
result in urea poisoning.

Protein content and sources

The protein content should be 12 to 13 % crude protein (CP). This level supplies in excess of
normal animal requirements values, but it is desirable in order to promote maximum feed intake
and efficiency. The protein can be divided into Natural protein and Non-protein Nitrogen (NPN).

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Generally the two should be mixed for economic reasons. The natural protein concentrates used
in Zimbabwe are Cottonseed meal/ cake, soyabean seed cake /meal, sunflower seed meal /cake,
groundnut meal /cake, blood meal, meat-meat meal and fishmeal. This is the expensive form of
protein given to animals. The majority of pen fattening rations urea inclusion is 2 % of the total
ration. This is fed as feed grade urea and weight gains based on urea peaks up later but is more
economic than natural protein.

Other nutrients

The diet should be well balanced for calcium and phosphorus at correct levels. Diets based on
most energy feeds other than molasses will be deficient of calcium and limestone flour needs to
be included

Excessive amount of phosphorus (P) can adversely affect the use of other minerals and increase
incidences of urinary calculi. Diets containing 70 % or more of grain or grain by products
usually contain adequate P and there is no need to add more. But if such feedstuffs like
molasses or silage or orange pulp make up a large proportion of the diet, additional P, in form of
MCP or bone meal will need to be added. Ruminants can tolerate a wide range of Ca: P ratio
than monogastrics but extremes result in reduced performance. The ratio less than 1:1 or more
than 7:1 should be avoided. Undesirably low levels are most likely in diets based on grains and
grain by products and it may be necessary to increase calcium levels well above requirements to
improve the ration.

Other minerals

Mineral Level on DM basis

Salt 0.5
K 0.5
Mg 0.1
S 0.15
Cu 10ppm
Co 0.1ppm

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 Fe 30ppm
Mn 30ppm
Zn 30ppm
Se 0.1ppm
I 0.2ppm
Of these only zinc, copper, cobalt and iodine are added to high-energy diets.

Vitamins

Diets with no sources of vitamin A should have an additional 3million I.U of vitamin A added
per tonne. No other added vitamins should be necessary in this country.

Fats

Fats can be added to increase the energy content of the diets and to reduce dustiness. The total fat
in the diet should not exceed 7 % otherwise feed intake may be depressed. If protected fats are
used the fat content may be increased to 10 % (Not unsaturated fats). Fat should not be used as
grain substitute and where unsaturated fats are used rancidity will be a problem.

Physical form of diet

Maize is usually coarsely milled in order to produce a consistent mixture with the protein
concentrate. Whole maize can be fed without loss in efficiency provided the protein concentrate
is pelleted or molasses based to prevent separation. When whole maize is fed, roughage is fed
separately unless it is incorporated in the pellets. With a period of adaptation the roughage can be
reduced to very low levels or even removed completely. Small grains like sorghum are best
coarsely milled or cracked. Roughage can be fed unmilled when it is fed free choice but it has to
be milled for inclusion in complete diets. In this case particle size should be about 10 to 20 mm,
which usually requires a screen size of 12 to 25 mm, depending on the mill design and speed.

Feed additives and supplements

Various additives and implants have been shown to improve the efficiency of feed conversion
and can be used to improve the economics of pen fattening. These are:

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Nutritional supplements (e.g. Nubo and Rumicell). These usually are administered as boluses or
feed additives orally. They have an advantage of adjusting rumen flora and promoting beneficial
microbes in the rumen after dosing. This increases feed efficiency and improve profitability.

Ionophores (e.g. monensin, lasolocid). These improve the efficiency of energy absorption, and
reduce incidences of acidosis and bloat. Monensin tends to reduce intake while gains remain
unaffected, while lasolocid has less effect on intake but increase gains.

Feed intake

This is the most important factor affecting the rate of gain and efficiency of feed conversion.
Intake varies with the mass of the animal, the type of diet and the stage of the feeding period. On
low energy diets intake is controlled by gut fill and is usually of the order of 2.5% of the body
mass or less.

As energy increases with decreasing roughage levels intake increases reaching a peak with diets
of about 20 to 30% roughage. With further increases in energy concentration, intake decreases
tending to be controlled to a constant energy intake. The average DMI over a feeding period for
yearlings on a standard 20% roughage maize based diet is 2.8% this figure may increase to about
3.3% if the ration is particularly palatable or if maize is replaced with an energy source with less
energy. Intake usually starts at relatively low level, increases for a while and then levels off or
slowly declines. Yearlings and 2.5 year olds on 20 % roughage usually consume 2.5% of their
body mass initially increasing to about 3.2 to 3.5% at 6 to 8 weeks, thereafter declining slowly or
remaining fairly constant in absolute terms. Weaners take longer to reach peak intake (about 12
weeks) and show less decline thereafter.

Complete Feeds
These are the easiest to use, though they are expensive compared to home-made feeds. They are
complete, balanced meals, designed for finishing cattle in pens over the normal 70-90 days. They
are high energy fattening meals containing all nutrients necessary for ad lib pen fattening.
Feeding rate will depend on factors such as live weight and age of the animal, but normally
averages between 8-15kg per head per day or 3.4% of a steer’s live mass per day, and average
daily gain at 350Kg live mass is about 1.6Kg.

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It is advised that even if you are feeding these complete feeds, make available a good quality
roughage source as an extra. The cattle might or might not nibble it, but when they do need it, it
will help if it is available. These feeds contain urea; hence it is advisable to introduce your cattle
to them gradually, preferably over a period of two weeks.

You may also buy concentrates to mix with snap corn. Snap corn is snapped maize (husk, cob
and grain), and it has 78% grain content. After mixing the two, the result will be a complete
feed. The reason behind using concentrates is to try and decrease feed costs, but for cattle
fattening feeds, the cost decrease is usually slight, thus it may be more convenient to use straight
complete feeds.

Health Management & Disease

A feature of crowded accommodation is the rapid spread of disease. Apart from the better known
cattle diseases that can appear in feedlots, there are a number of diseases associated with
feedlotting. Diseases such as rumenstasis, acidosis, laminitis and urinary calculi can be a
problem in a feedlot. Prevention is always better (cheaper, hustle free) than cure in a feedlot
operation.

The services of a veterinarian or animal scientist to advise on disease prevention and the
treatment of sick animals is a cost well justified. However, one still needs to keep the veterinary
cupboard stocked with such drugs as ammonium chloride, hypo (Na thio-sulphate), activated
charcoal, vinegar, brown sugar, bicarbonate of soda, veterinary milk of magnesia, Epsom salts
and some antibiotics in case of outbreaks of the above or other health conditions. Slurry disposal
is a major issue in most feedlots and warrants attention. Waste can be wet or solid and, if not
properly taken care of, can result in a fly and insect problem. Flies and insects must be
combated in a feedlot because they worry animals and increase stress. Stress has a negative
effect on growth rate. A feedlot manager needs to be aware of the potential danger of these
diseases, especially infective diseases such as IBR which can spread through a feedlot at a very
rapid rate and even if mortalities are relatively low, profits are eroded by depressed animal
performance.
Although deaths occur in feedlots, where losses exceed 2% prompt action must be taken to find
and eliminate the cause(s) of the mortalities in order to minimize losses.

Performance in feedlots

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Factors which will affect performance:-

 Quality of cattle

 Consistency of size and type within pen

 Setting realistic performance targets in relation to the above

 Avoid waste

 Ensure clean fresh water is always available

 Avoid over-crowding. At least 7m2 of pen per head.

 Feeding space : 40-50 cm of feed trough space per head

 Water space : 1 metre of water trough frontage per 30 cattle

 Prevent heat stress

 De-worming and vaccination.

Profitability in a Feedlot
It is very ease to make a loss from a pen fattening exercise. Factors affecting profit margins in a
feedlot operation include:

 buying price of feeders

 cost of feed
 feed conversion efficiency/ratio (FCE/FCR) in pens
 Carcass price.
 Other costs : agents commission , slaughtering costs , carcass condemnations , transport ,
interest on capital ,salaries of management and labour , machinery costs , mortalities and
veterinary costs (disease control, medicines, veterinarian) ,Pre-treatment costs (growth
stimulants, dipping, dosing, vaccination)

Feedlotters can improve production profit by manipulating some expenses, but other costs are
fixed. Mortalities must be monitored carefully to ensure that a high loss rate does not
severely limit profits. A mortality rate of 1% to 2% is accepted as normal.

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Important margins contributing to profitability include the price margin and feed margin. By far
these two have the greatest effect on feedlot profit.

The rate of gain and feed conversion ratio

The rate of gain of pen-fattened animals is dependent on the amount of intake and the energy
concentration of the diet assuming it is correctly balanced in other nutrients. Gains on high
energy diets of standard roughage content of 20% have been recorded at 1.2 to 1.6kg per day and
the feed conversion ratio (FCR) has a range of 7:1 to 8.5: 1 (Live mass) and 11.2: 1 to carcass
mass. As the feeding period progresses the rate of gain decreases and the FCR deteriorates and a
stage is reached where feeding costs equal and then exceed the value of gains.

Tip

Animals in lean condition with good conformation are usually the most efficient and the price
per kg is critical consideration in the economics of fattening. The maximum price payable must
be carefully calculated. It is easy to make a financial loss before fattening even starts by paying
too much for the animals.

Profit Margins in Feedlotting

Factors affecting the profit margin of a feedlot operation include the price margin, feed margin,
management, cost of feed, buying price of feeders and selling price, which is usually quoted as a
carcass price.

Price margin
The profit or loss which the feedlotter makes as a result of an increase or decrease in price from
the time the animal is bought (the cost price) to the time the animal is sold (sale price), is called
the price margin and is calculated as follows:

Price margin = Initial live mass X (sale price/kg - cost price/kg)

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Price margin includes the difference between purchase price and selling price resulting from
beef price fluctuations as well as improvement in carcass quality due to feeding. The feedlotter
cannot control price fluctuations and must therefore rely on a prediction (speculation) of what
prices will be when stock are sold at a future date. Making use of a positive price margin is what
is commonly called speculation. Although profits are potentially high, risk is high and people
lacking experience often lose money with speculation.

When buying livestock, most feedlotters make use of the price per kg live mass for their
calculations. They must therefore know the dressing percentage of the animal. Dressing
percentage varies and feedlotters base the value they use on experience and knowledge of the
type of animal and its body condition. Lean animals have a dressing percentage of 49%, which
increases to as much as 60% at a high level of finish. However, at a fat score of 2 to 3, the mean
dressing percentage varies from 54 to 56%.

Feed margin
The profit or loss a feedlotter makes as a result of live mass gain in relation to cost of feed
consumed, is called the feed margin and is calculated as follows:

Feed margin = Live mass gain X (sale price/kg - cost/kg gained)

A feedlotter can influence feed margin by ensuring, through good management, that optimal
growth rates are achieved and by taking steps to obtain the best feed at the best price.

Beef: Maize Price Ratio

The price paid for feedlot cattle or their initial value (cost/kg), is a critical factor affecting the
profitability of a feedlot enterprise, especially when a small or negative feed margin exists.

A positive feed margin can only be realized with high mass gains and a relatively low cost of
feed. The cost of the feedlot ration relative to the beef price and live mass gain thus exerts a
major influence on the cost of gain. Because of the high proportion of energy required to ensure
good feedlot performance, the cost of carbohydrate, which is usually included in most feedlot

Page 29
rations in the form of maize, snap corn, hominy chop or sorghum, in relation to the beef price, is
a significant factor deciding profitability of a feedlot enterprise. This is usually expressed by the
ratio beef: maize price, which experience has shown must be more than 13:1 for feedlotting to be
profitable. Feedlotters can make substantial profits when the beef to feed cost price ratio is
favourable. Generally, average daily gain declines toward the end of the feeding period, where
animals are fed for too long a period of time (are over-finished), resulting in a negative feed
margin and consequently reduced profit margins.

Feedlot profit margin

The feedlot profit margin is a function of price margin, feed margin and other expenses. Adding
these three together, indicates profit or loss for the period of time over which the calculation is
made. Feedlot managers need to keep a close watch on feedlot profit, which is a very sensitive
measure of the efficiency of management.

It is very important for you to understand these profit margins, before you go into this business.
We shall use examples in the Production Cycle section of this business plan, to help you
understand how these ratios are used.

Feedlot Management

Management will have a major influence on the profitability of a feedlot enterprise. Management
aspects that are important include:

 Ensuring that the right type of animal is bought at the right price and at the right
time. In some larger feedlots, feedlot managers rely on the services of experienced
buyers.
 The feedlot ration must be balanced in respect of nutrient content, must be matched to
the type of animal fed and should be the most cost effective ration available at the time of
feeding. In most feedlots the manager achieves these goals by keeping records of animal
performance and monitoring results. A nutritionist is usually employed to do the ration
balancing because this is a highly specialized task requiring a great deal of time
monitoring feed quality and costs of ingredients.

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  The daily running of a feedlot is the major task of the feedlot manager. This includes care
that feed bins are full all the time, that fresh water is available to the livestock
continuously, that animals are processed and adapted on arrival and that animals are
marketed when ready.
 Diseases can be a problem in a feedlot. The services of a veterinarian to advise on
disease prevention and the treatment of sick animals is a cost well justified. The adage
"prevention is better than the cure" is very true in feedlotting.

Risk
Starting a feedlot involves financial risk. Animal deaths, disease, poor weight gains, and
unexpected changes in feed cost or beef market prices will affect the economic success of the
venture. When budgeting, always include some risk factors, because problems are part of
running a feedlot.

Production Cycle

Each production cycle is going to be 90 days long. This means we will have 4 production cycles
every year. We will buy cattle from Muzarabani as it is cheap in those areas. We will buy 20
cattle at a time (meaning every year we will sell 80 cattle), and transport them to our farm which
is located close to Harare. The cattle we buy will be approximately 250 Kg each, and because of
our good negotiation skills, will buy each cattle for at $1/Kg live weight, meaning cattle
weighing 250Kg will be bought for $250. Each cattle will need $50 for transportation, and $5 for
veterinary permit and police clearance.

We will then buy complete feeds from stock feeds company in Zimbabwe. The cost for complete
feeds is $0.27/Kg, meaning a 50Kg bag costs $13.50. We will assume that the feed conversion
ratio is 8:1, meaning that each cattle will need 8Kg of feed for it to gain 1 Kg live weight. Data
shows that this is a very realistic assumption. Our target is for the cattle to gain 135Kg during
their stay in the feedlots. Thus after the 90 days, they should have a live weight of 250Kg + 135
Kg = 385Kg.

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Since our target is for each cattle to gain 135 Kg during the 90 days, it means that:

Average daily weight gain = 135/90 = 1.5Kg.

Since we are assuming a FCR of 8:1, it means that:

Total Feed for each cattle = Total Gain * FCR = 135Kg*8 = 1080Kgs.

Feed costs = Total feed * feed cost/Kg = 1080 * 0.27 = $219.6

We will assume a dressed percentage of 55% dressed weight. This means that after slaughtering
the cattle, its dressed weight will be 55% of its live weight, meaning

Dressed Weight = 0.55 * 385 Kg = 211.75 Kgs.

After 90 days, the cattle will be supplied to an abattoir in Harare. Since we are located close to
the market, we will assume transportation cost of $10/head and also $5/head veterinary permit.
We will assume that the grade of the beef after 90 days is super grade (that’s the purpose of
feedlotting, with the right feed it will attain this grade), and we will assume that the abattoir will
buy super grade beef at $4/Kg(price varies with time, but it is usually $4-$4.30). Thus each
cattle will fetch 211.75Kg*4 = $847

Calculation of the margins

Beef : Maize

If you are using concentrates, you will have to mix them with maize, and this ratio will directly
affect you. Even if you are using complete stock feeds, price of maize will matter, as stock feeds
are made from maize, thus increase in maize price will lead to increase in the price of stock
feeds. Maize is assumed to cost $0.3/Kg, which translates to $300/tonne.

Beef : maize = price ratio of beef to maize = $4/Kg : $0.3/Kg = 13.3:1

This ratio is favourable.

Price Margin

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Since the dressing percentage is 55%, and the dressed beef price is $4/Kg, it means that the live
weight price at slaughter (sales price/Kg) is 0.55*4 = $2.20. The cost price/Kg has been assumed
to be $1/Kg.

Price margin = Initial live mass * (sale price/kg - cost price/kg)

= 250 * (2.20-1)

= $300/head

= $6000 for 20 cattle

The ratio is positive and favourable.

Feed Margin

Cost/Kg gained referrs to the cost of feed.

Feed margin = Live mass gain * (sale price/kg - cost/kg gained)

= 135Kg * ($2.2 – ($219.6/135))

= $77.4 /head

= $1548 for 20 cattle

This ratio is positive and thus favourable.

Profit Margin

Assume other costs per cycle (3 months), are $2255. These costs include fixed and variable
costs, but exclude feed costs and costs of buying the cattle. You can check the other costs on
the income statement and the variable costs/cycle table; they are the ones we used to calculate
the figure.

Profit margin = Price Margin + Feed Margin – Other costs (Excluding feed costs)

= $6000 + $1548 – $2255

= $5293

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This profit margin is favourable. Thus it makes sense for us to go into the cattle fattening
business.

This analysis was to help you understand the important variables and tools that a farmer could
use to assess the economics of pen fattening. For a feedlot enterprise to be economic, the farmer
should get the right animal at lower cost, push up weight gains and feed conversion efficiency,
and reduce feed costs significantly. It is important to note that pen fattening is part art, part
science and largely business.

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Marketing Strategy
Our company will attempt to rapidly achieve awareness in Harare about its business in the first
year. To be successful in this business, you should have many customers. Our marketing
strategy is based upon the marketing mix, which are the 4 p’s of marketing, which are product
(service), price, promotion and place (distribution).

Please note there is a readily available market for cattle. There are many abattoirs that are
always in need of cattle. Check the Directory section of this business plan, for contact details of
some abattoirs. In most cases, you have no need of marketing your cattle, except if you live in
any area where there are no abattoirs which buy cattle, or if you think you can get higher prices
by selling directly to consumers/organisations.

Product

Our fattened cattle will be of high quality, with super grade beef, and also healthy. The cattle’s
appearance will be very attractive. Customers will be pleasantly surprised at how attentive we
are in regards to their needs. The business operates on the assumption that it will do whatever is
reasonably necessary to keep the customer happy. This reflects the notion that if the customer is
kept happy; long-term profits are ensured.

Price

We will try and minimize our production costs so that we can offer a more competitive price on
the market. The price of the cattle will be determined by market forces. It will depend on the
weight and grade of the beef.

Promotion

Word of Mouth

Word of mouth advertising via quality products will be used to market our company. We will
give incentives to customers who refer others to our farm. We will spread the word of our cattle
in our community. We will also use our personal networks to identify new customers. We will

Page 35
talk to family and friends; inform the local church community; showcase products at community
functions. We will use word of mouth to advertise our cattle to the local butcheries and abattoirs.

Fliers

Our marketing strategy will include the use of fliers which are going to be distributed to
butcheries, schools, churches, supermarkets, hotels and fast food outlets. These fliers will be well
designed, attractive and very informative, containing our prices, contact details and products
which we sell. We hope to get potential customers from the distribution of fliers. We will also
offer monthly calendars to our customers.

Internet Marketing

The company’s website will be a dynamic marketing tool for the company. The website will
provide information about our products for target customers. As the company grows, its
recruiting needs can be addressed by posting carrier opportunities and Frequently Asked
Questions about the company.

Place/Distribution

Our farm will be located close to Harare city, which is our intended market. We will supply
cattle to various butchers and abattoirs in Harare.

Page 36
Market Analysis
Demand
Zimbabweans consumed beef worth over $300 million in 2014, which was a 30% increase from
the value of beef consumed in 2013. Data shows that beef consumption in Zimbabwe has been
on the increase since the dollarization of the economy in 2009. The average demand of beef per
month in Zimbabwe is about 6500 metric tonnes. The demand for beef is expected to increase
slightly in 2015.

Market Segmentation
Potential customer groups for beef are:

Abattoirs & Auctions

There are many abattoirs in Harare which slaughter cattle and buy beef. Note that the price of
beef varies throughout the year, as it is affected by factors such as demand and supply. Koala
Park abattoir, Montana Meats and Surrey Meats are some of the biggest abattoirs which buy
beef. The price for beef depends on the grade i.e. quality of the meat. After cattle fattening, it is
expected that your cattle will have the highest quality of beef, which is the super grade. You can
also sell your cattle at Auctions, such as those held by CC Sales throughout the country.

Hotels and restaurants and fast food outlets

You can supply your beef to hotels and restaurants. They buy beef in bulky to prepare meals for
their customers. By creating and maintaining good relationships with the hotels and restaurants,
you will end up having long term contracts with them. This will create predictable income and
stability for the company. The price for your beef if you are supplying to hotels and restaurants is
usually higher than for abattoirs.

Butcheries

Butcheries are big customers for your beef. Many butcheries buy beef from small scale and
medium scale producers. You will have to negotiate for good payment terms, preferably cash.
By creating and maintaining good relationships with the butcheries, you will end up having long
term contracts with them. This will create predictable income and stability for the company. The

Page 37
price for your beef if you are supplying to butcheries is usually the same as for abattoirs. When
supplying beef to butcheries, you are required to slaughter the cattle at registered abattoirs,
according to the laws of Zimbabwe.

Organisations

You can supply your cattle to various organisations like boarding schools, hospitals, prisons and
churches. Selling direct to consumers allows producers to set a price that covers costs and
provides a larger profit.

Individuals

Individuals buy beef in bulky for various reasons including for parties, weddings and family
functions. Selling direct to consumers allows producers to set a price that covers costs and
provides a larger profit.

Page 38
Industry Analysis

The producers of cattle in Zimbabwe can be divided into the following segments:

Commercial Farming Areas

These include large scale commercial farms and small scale commercial areas. There are
approximately 2 000 large-scale commercial farms in Zimbabwe. The average farm size is about
2 249 hectares. Large-scale commercial farming is well organised and financed and has large
herds of cattle. The number and area of large-scale commercial farms has been decreasing during
the past twenty-two years mainly due to the Government's land redistribution programme. There
are approximately 9 655 small scale commercial farms in Zimbabwe with an average size of 148
hectares. An individual farmer was given a farm to undertake crop and livestock production.
They have medium sized herds of cattle.

Commercial farms are aimed at profit maximisation and specific production goals (e.g. meat or
milk). Cattle are kept in paddocks, grazing is controlled and improved forage species are
sometimes introduced. Rotational grazing is mostly practiced in commercial farms. Cattle are
the main livestock type, supplying draught, milk, manure and meat to their owners. The farmers
in commercial farming areas supply their cattle to abattoirs and butcheries. The commercial
areas account for 10% of the total cattle population in Zimbabwe.

Resettlement Areas

These include Old resettlement schemes, A1 and A2 farms. These are the products of the
Government’s land redistribution programme. From 1982 to 1998, the government bought land
from Large Scale Commercial Farming areas and resettled farmers from communal lands. The
farmers were resettled on an individual family basis or as co-operatives, and resettled to the old
resettlement schemes. The Government then implemented the accelerated land reform
programme in 2000. In this programme, farms were acquired from Large Scale Commercial
Farming areas and farmers from communal and urban areas were resettled into A1 and A2
Farms.

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They have small sized herds of cattle. They keep cattle for farming, milk and for beef. Most of
their cattle are indigenous breeds like the Nkone, Tuli and Mashona which are regarded as
indigenous to Zimbabwe. Cattle management systems and production in resettlement areas differ
significantly with commercial systems. Herding of cattle is the most common method of cattle
rearing in the resettlement areas of Zimbabwe. Cattle are herded during the day and penned at
night. The resettlement areas account for 15% of the total cattle population in Zimbabwe.

Communal Lands

Farmers live in villages and have areas for cropping and common grazing lands. They have
small sized herds of cattle. Cattle management systems and production in communal farming
systems differ significantly with commercial systems. The reasons for keeping livestock are very
diverse in communal systems. Herding of cattle is the most common method of cattle rearing in
the communal areas of Zimbabwe. Cattle are herded during the day and penned at night. In cases
where there is limited grazing land, all the cattle from the entire village may be considered as a
single interbreeding flock with no attempts of controlling mating. Herds from different
households of the same village, however, may graze separately where there are vast tracts of
grazing land. Following crop harvesting, cattle herds are let loose to feed on crop residues until
the beginning of the rainy season, when the cattle have to be herded. The low intake of poor
quality feed often limits production.

Some of the breeds found in Zimbabwe communal areas include the Brahman, Afrikander,
Nguni, Tuli, Hereford, Simmental, Mashona and non descript crossbreds. The Nkone, Tuli and
Mashona are regarded as indigenous to Zimbabwe. Indigenous cattle are valuable reservoirs of
genes for adaptive and economic traits, in providing diversified genetic pool, which can help in
meeting future challenges resulting from possible changes in climatic conditions, production
dynamics and consumer requirements.

Communal cattle are rarely supplemented with commercial feeds or improved legume fodder
resulting in low intake of poor quality feed, which often limits livestock productivity. Since
feeding is restricted, cattle have little choice of feed, resulting in poor body condition and low
weight gains and a higher predisposition of the animals to endoparasites during the dry season.
Animals move much further away from the homesteads during exceptionally dry seasons

Page 40
depending on spatial distribution of forage patches and availability of water. Communal cattle
fulfil multiple roles that include milk, manure, draught power, serve as an indication of one’s
wealth status and provision of meat and hides as terminal products. Cattle hides are used to make
drums, tents and mats. Cattle, thus, generate income among communal households through sales
of the animals and their products. The communal areas account for 75% of the total cattle
population in Zimbabwe.

Diseases and parasites are major constraints to communal cattle production and are endemic in
most Zimbabwe communal areas. The impact of endo-parasites is mainly high mortalities, dry
season weight loss which reduce fertility through nutrition induced stress. Poor control of
diseases has negative financial and productivity implications as 70% of calves are born during
the dry season. The most common diseases reported by farmers are blackleg, heart-water,
babesiosis, anthrax and anaplasmolis. The situation is worsened by the unavailability and high
cost of drugs and inadequate veterinary officials. Cattle are also susceptible to external parasites
causing heartwater and massive economic loss to the country

Although the indigenous cattle breeds are hardy, their growth performance is generally poor,
partly as a result of high disease and parasite challenges and low plane of nutrition
characterising communal areas which are mostly found in marginal regions of Zimbabwe.
Management factors which cause low cattle production include low use of improved
technologies (vaccinating, dosing), poor nutrition of dams leading to low milk production, poor
calf housing structures allowing the build-up of infective agents in dung during the rainy season
and prevalence of contaminated water sources causing scours. Also, use of uninformed ethno-
veterinary medicines as most communal farmers are not able to purchase drugs or to engage
government veterinary doctors as there is on average only one doctor per district. Lack of
controlled breeding in communal areas has caused inbreeding, which result in poor growth rates
in cattle. There are no structured breeding systems and appropriate infrastructure such as
paddocks and, therefore, cows and bulls of unknown genetic merit and bloodlines run together
all year round.

Livestock marketing, in most communal areas, is poor and characterised by absent or ill-
functioning markets. A baseline study by the International Crop Research Institute in Semi Arid
Tropics (ICRISAT) revealed, lack of organised marketing of cattle in Zimbabwe communal

Page 41
areas. Communal farmers resort to the informal way of marketing their cattle where pricing is
based on an arbitrary scale, with reference to visual assessment of the animal. Middlemen are the
main buyers and purchase live animals from farmers for resale at cattle auction points and to
abattoirs in towns often benefiting more than the farmers themselves. Apart from selling to local
butcheries, farmers do not have ready markets where they can take their animals to if they need
to sell their animals therefore usually end up under pricing their animals in cases of
emergencies.

Number of cattle slaughtered in Zimbabwe

The number of cattle slaughtered in Zimbabwe in 2014 is about 280 000, and the number is
expected to increase to over 300 000 in 2015.

Competition and Buying Patterns

Customers (abattoirs, butcheries etc) consider the quality of beef when buying. Beef is graded
into different grades. There are usually 6 grades used at abattoirs, which are Manufacturing,
which is the lowest quality beef, followed by Economy, Commercial, Choice and Super beef,
which is the highest quality grade. There is also a grade called Condemned, which is for the
cattle which would have been condemned because of sickness in the body. This grade fetches an
extremely low price, and you may end up in a loss if one of your beasts is condemned. After
cattle fattening, it is expected that your cattle will have the highest quality of beef, which is the
super grade. Some large butcheries only purchase beef from registered abattoirs, thus it will not
be possible for a producer to sell beef directly to them.

Most butcheries buy beef directly from the producers, but they require that the cattle be
slaughtered at registered abattoirs. It is a requirement in Zimbabwe that cattle should be
slaughtered in registered abattoirs. The fee to slaughter cattle at abattoirs is on average $50.
Butcheries are concerned about quality, and price. They want a low price so that they can have
high profits. The price is usually determined by market forces (supply and demand) and at any
point in time, there will be a generally accepted supplier price of beef. The customers are willing
to establish relationships and enter into long term supply agreements with suppliers who can
reliably deliver beef to them when they need it.

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Page 43
SWOT Analysis
Strengths

 A large market

 Experienced owner-operator

 Good quality feeders

 Access to cheap cattle

 Plenty of water supply

Weaknesses

 Limited Capital

 High feed costs

 Little negotiation power with customers

Opportunities

 Growing market

 Venture into poultry and pig rearing thus diversifying risk

 Export market opportunities

 Cheap labour in the market

 Economic growth

Threats

 Disease outbreak

 Decline in cattle demand

Page 44
  Low market prices for beef

 Change in government regulations

 Increase in feed costs

PEST analysis
We understand that our business is affected by Political, Economic, Social and Technological
factors. Below we look at how those external factors may affect our business and the
assumptions we have made in making this business plan.

Political

Change in regulations which affect the agriculture sector especially cattle farming will affect us.
New legislation may create risks of non-compliance with the law, or create new administrative
burdens. The tax policies of the Government of Zimbabwe will affect the operations of our
business. If the government of Zimbabwe increases the taxes for companies, it will affect the
profitability of our business. Political instability like wars, protests will affect our business.
Changes in employment laws, safety regulations especially those targeted to the agriculture
industry will affect the operations of our business. We expect political stability to continue in
Zimbabwe, and we do not expect any significant changes in the regulations of the government of
Zimbabwe.

Economic

Liquidity crisis in Zimbabwe which is currently in Zimbabwe will likely continue for the
coming years. This has caused high interest rates. The high interest rates affect the cost of
capital, the rate of interest being directly proportionate to the cost of capital. Rate of inflation
determines the rate of remuneration for employees and directly affects the prices of our services.
Again, the proportion between the inflation rate and wages/prices is direct. Economic trends act
as an indicator of the sustainability and profitability of our business in Zimbabwe and will help
us determine the right marketing strategy. IMF and World Bank are re-engaging with
Zimbabwe,

Page 45
and dollarization also led to the recovery of the Zimbabwean after a decade of recession. These
factors point to economic growth of our Zimbabwean economy, which will mean more business
for the industry as the economy becomes more active and more people get more disposable
income.

Social

We expect the population growth will continue in Zimbabwe. This will mean more potential
customers and greater demand. We expect that the current HIV-AIDS campaigns which are
being carried out by the government and Non Government Organisations, will make people
more health conscious, and will lead to a reduction in the cases of HIV-AIDS which will imply a
healthier work force. We expect that the health facilities in Zimbabwe will continue to improve
as the economy recovers, meaning more people will have access to drugs.

Technological

Technological improvements can lead to the production of more efficient feed. A good technical
infrastructure would lead to better production, procurement and distribution logistics, resulting in
reduced wastage and lower costs.

Page 46
Financial Statements
These financial statements are based on the Production Cycle which we outlined under
Operational Strategy section.

Start-up Costs
Item Quantit Unit Cost Total
y
Land Acquisition 1 $5,000.00 $5,000.00
Feedlot Construction 1 $1,200.00 $1,200.00
Feeders 20 $10.00 $200.00
Drinkers 20 $10.00 $200.00
Company Registration 1 $500.00 $500.00
Transport from source + licenses 20 $55.00 $1,100.00
Transport + licences to market 20 $15.00 $300.00
Cattle(250 Kg @ $1/Kg live 20 $250.00 $5,000.00
weight)
Repairs and Maintenance/year 1 $100.00 $100.00
Contingency Cash 1 $175.00 $175.00
Feed Kgs (1 cycle advance) 21600 $0.27 $5,832.00
Veterinary Supplies (1 cycle 20 $10.00 $200.00
advance)
Salaries (1 cycle advance) 1 $360.00 $360.00
Total $20,167.00

Feedlot Construction

This includes the money to buy the construction material (treated gum-poles, rough sawn timber,
IBR sheets, IBR ridges and nails) and also the labour. The feedlot will be 150 square metres,
meaning 7.5 square metres per head.

Contingency

This is a special monetary provision in the project budget to cover uncertainties or unforeseeable
expenses the project may incur.

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Pro Forma Income Statement

Income Statement Year 1 Year 2 Year 3

Revenue
Cattle Sales $67,760.00 $67,760.0 $67,760.00
0
Cost of goods sold $49,728.00 $49,728.0 $49,728.00
0
Gross Profit $18,032.00 $18,032.0 $18,032.00
0
Operating Expenses
Salaries $1,440.00 $1,440.00 $1,440.00
Depreciation $140.00 $140.00 $140.00
Water (Borehole) $240.00 $240.00 $240.00
Advertising $0.00 $0.00 $0.00
Repairs and maintenance $100.00 $100.00 $100.00
Contingency $700.00 $700.00 $700.00
Total Operating Expenses $2,620.00 $2,620.00 $2,620.00
Net Profit Before Tax $15,412.00 $15,412.0 $15,412.00
0
Tax (25%) $3,853.00 $3,853.00 $3,853.00
Net Profit After Tax $11,559.00 $11,559.0 $11,559.00
0

Assumptions

 We will employ one worker who will be paid $120/month

 Cost of goods sold is calculated using the variable costs shown on the table below

Page 48
Variable Costs per Cycle
Variable Costs per Cycle Quantity Unit Cost Total
Transport + licenses from 20 $55.00 $1,100.00
source
Cattle(250 Kg @ $1/Kg live 20 $250.00 $5,000.00
weight)
Feed Kgs 21600 $0.27 $5,832.00
Veterinary Supplies 20 $10.00 $200.00
Transport + licenses to market 20 $15.00 $300.00
Total $12,432.00

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Pro Forma Cash Flow
Year 1 Year 2 Year 3
Opening Balance $0.00 $29,119.00 $40,818.00

Cash Sales $67,760.00 $67,760.00 $67,760.00

Subtotal Cash from $67,760.00 $67,760.00 $67,760.00
Operations

Additional Cash Received

Start-up Capital $20,167.00 $0.00 $0.00
Subtotal Cash Received $20,167.00 $0.00 $0.00

Cash Expenditures
Cattle,feed,vet,transport $49,728.00 $49,728.00 $49,728.00
Operating Expenses $2,480.00 $2,480.00 $2,480.00
Subtotal Spent on Operations $52,208.00 $52,208.00 $52,208.00

Additional Cash Spent

Taxes $0.00 $3,853.00 $3,853.00
Loan Repayment $0.00 $0.00 $0.00
Bank Overdraft Repayment $0.00 $0.00 $0.00
Purchase Fixed Assets $6,600.00 $0.00 $0.00
Subtotal Additional Cash $6,600.00 $3,853.00 $3,853.00
Spent

Net Cash Flow $29,119.00 $11,699.00 $11,699.00

Cash Balance $29,119.00 $40,818.00 $52,517.00

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Pro Forma Balance Sheet

Year 1 Year 2 Year 3

Long Term Assets
Land $5,000.00 $5,000.00 $5,000.00
Housings $1,200.00 $1,200.00 $1,200.00
Equipment $400.00 $400.00 $400.00
Accumulated Depreciation -$140.00 -$280.00 -$420.00
Total Long Term Assets $6,460.00 $6,320.00 $6,180.00
Current Assets
Cash $29,119.00 $40,818.00 $52,517.00
Accounts Receivable $0.00 $0.00 $0.00
Inventory $0.00 $0.00 $0.00
Other Current Assets $0.00 $0.00 $0.00
Total Current Assets $29,119.00 $40,818.00 $52,517.00
TOTAL ASSETS $35,579.00 $47,138.00 $58,697.00

EQUITY AND LIABILITIES

Equity
Share Capital $20,167.00 $20,167.00 $20,167.00
Retained Earnings $11,559.00 $23,118.00 $34,677.00
Total Equity $31,726.00 $43,285.00 $54,844.00
Liabilities
Current tax payable $3,853.00 $3,853.00 $3,853.00
Accounts Payable $0.00 $0.00 $0.00
Other Liabilities $0.00 $0.00 $0.00
Total Liabilities $3,853.00 $3,853.00 $3,853.00
TOTAL EQUITY AND LIABILITIES $35,579.00 $47,138.00 $58,697.00

Page 51
Break-even Analysis
Break-even Value
Analysis
Selling Price/Unit $847.00
Variable Cost/Unit $621.60
Fixed Costs/year $2,620.00
Break-even point 12

Therefore we must fatten a minimum of 12 cattle per year for our revenue to cover all our costs.

Payback Period
Payback Period Value
Initial Investment $20,167.00
Net Cash flow Year 1 $29,119.00
Payback Period 0.69

Therefore it will take us 8 months to recover the cost of the initial investment.

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Risk Analysis
These risks could materially adversely affect our business, financial condition or results of
operations. Additional risks and uncertainties not currently known to us or that we currently
deem to be immaterial also may materially adversely affect our business, financial condition or
results of operations.

Fluctuations in the availability and price of raw materials, especially stock feeds, maize and
soya meal and other inputs could negatively impact our earnings.

Our results of operations and financial condition, as well as the selling prices for our products,
are dependent upon the cost and supply of commodities and raw materials such as stock feeds,
maize and soya meal. Production and pricing of these commodities are determined by constantly
changing market forces of supply and demand over which we have limited or no control. Such
factors include, among other things, weather patterns throughout the world, outbreaks of disease,
the global level of supply inventories and demand for grains and other feed ingredients, as well
as agricultural and energy policies of domestic and foreign governments.

Volatility in our commodity and raw material costs directly impact our gross margin and
profitability. The company’s objective is to offset commodity price increases with pricing
actions over time. However, we may not be able to increase our product prices enough to
sufficiently offset increased raw material costs due to consumer price sensitivity or the pricing
postures of our competitors. In addition, if we increase prices to offset higher costs, we could
experience lower demand for our products and sales volumes. Conversely, decreases in our
commodity and other input costs may create pressure on us to decrease our prices.

Outbreaks of livestock diseases can adversely impact our ability to conduct our operations
and demand for our products.
Demand for our products can be adversely impacted by outbreaks of cattle diseases, which can
have a significant impact on our financial results. Efforts are taken to control disease risks by
adherence to good production practices and extensive precautionary measures designed to ensure
the health of our cattle. However, outbreaks of disease and other events in Zimbabwe, which

Page 53
may be beyond our control, in our own cattle farm could significantly affect demand for our
products, consumer perceptions of certain protein products, the availability of livestock for
purchase by us and our ability to conduct our operations. Outbreaks in our own cattle farm may
lead to the death of all our cattle. Moreover, the outbreak of livestock diseases, particularly in
our cattle segment, could have a significant effect on the livestock we own by requiring us to,
among other things, destroy any affected livestock. Furthermore, an outbreak of disease could
result in governmental restrictions on the import and export of our products to or from our
suppliers, facilities or customers. This could also result in negative publicity that may have an
adverse effect on our ability to market our products successfully and on our financial results.

If our products become contaminated, we may be subject to product liability claims and
product recalls.
Our products may be subject to contamination by disease-producing organisms or pathogens,
such as Listeria monocytogenes, Salmonella and E. coli. These organisms and pathogens are
found generally in the environment; therefore, there is a risk that one or more, as a result of food
processing could be present in our products. These organisms and pathogens also can be
introduced to our products as a result of improper handling at the further processing, foodservice
or consumer level. These risks may be controlled, but may not be eliminated, by adherence to
good manufacturing practices and finished product testing.

This may lead to increased risk of exposure to product liability claims, increased scrutiny and
penalties, including injunctive relief and plant closings by Zimbabwe regulatory agencies, and
adverse publicity, which could exacerbate the associated negative consumer reaction. Any of
these occurrences may have an adverse effect on our financial results.

Changes in consumer preference could negatively impact our business.

The food industry in general is subject to changing consumer trends, demands and preferences.
Trends within the food industry change often, and failure to identify and react to changes in these
trends could lead to, among other things, reduced demand and price reductions for our brands

Page 54
and products. We strive to respond to consumer preferences and social expectations, but we may
not be successful in our efforts. We could be adversely affected if consumers lose confidence in
the safety and quality of certain food products, or the food safety system generally. Prolonged
negative perceptions concerning the health implications of certain food products or loss of
confidence in the food safety system generally could influence consumer preferences and
acceptance of some of our products and marketing programs. Continued negative perceptions
and failure to satisfy consumer preferences could materially and adversely affect our product
sales, financial condition and results of operations.

New or more stringent Zimbabwean government regulations could impose material costs
on us and could adversely affect our business.

Changes in laws or regulations that impose additional regulatory requirements on us could

increase our cost of doing business or restrict our actions, causing our results of operations to be
adversely affected.

Deterioration of economic conditions could negatively impact our business.

Our business may be adversely affected by changes in Zimbabwe economic conditions,
including inflation, interest rates, consumer spending rates, energy availability and costs and the
effects of governmental initiatives to manage economic conditions. Any such changes could
adversely affect the demand for our products, or the cost and availability of our needed raw
materials, and packaging materials, thereby negatively affecting our financial results.

The loss of one or more of our largest customers could negatively impact our business.
Our business could suffer significant setbacks in sales and operating income if our customers’
plans and/or markets change significantly or if we lost one or more of our largest customers,
including, for example, Koala Park Abattoir. Our retail customers typically do not enter into
written contracts, and if they do sign contracts, they generally are limited in scope and
duration. There can be no assurance that significant customers will continue to purchase our
products in
Page 55
the same mix or quantities or on the same terms as in the past. The loss of a significant customer
or a material reduction in sales to, or adverse change to trade terms with, a significant customer
could materially and adversely affect our product sales, financial condition and results of
operations.

The prices we receive for our products may fluctuate due to season, demand & supply
factors and competition from other food producers and processors.

The price for beef in Zimbabwe fluctuates throughout the year. There is a risk that the beef price
might become low, and we might not be able to attain profitability.

Extreme factors or forces beyond our control could negatively impact our business.
Our ability to make, move and sell products is critical to our success. Natural disasters, fire,
theft, pandemic or extreme weather, including droughts, floods, excessive cold or heat,
hurricanes or other storms, could impair the health or growth of cattle or interfere with our
operations due to power outages, fuel shortages, damage to our production and processing
facilities or disruption of transportation channels, among other things. Any of these factors could
have an adverse effect on our financial results.

Theft & Vandalism

There is a risk that our cattle farm may be subject to theft and vandalism. This could have an
adverse effect on our financial results, as we might end up losing our cattle.

Page 56
Potential Sources of Finance

Equity Financing
Equity financing means exchanging a portion of the ownership of the business for a financial
investment in the business. The ownership stake resulting from an equity investment allows the
investor to share in the company’s profits. Equity involves a permanent investment in a company
and is not repaid by the company at a later date.

Personal Savings
Not everybody has savings but if you do, they are a good place to start. If you don’t have savings
yet, now is a good time to start. Your timeline for starting your business may be six months to a
year anyway, so if you start putting money away now, you’ll have at least a starting point from
which to raise more cash. Starting a business is about sacrifice and so you should cut down your
lifestyle as far as possible and save the cash, you’ll be glad you did.

Come up with a savings plan, save a certain percentage e.g. 20% of your salary/income towards
start-up capital for your business. Open a savings account with a reputable bank. Be disciplined.
Cut your expenses. Yes, with proper planning you can do it. Yes, it will take time, but it’s
worth it. A year from now you will wish you had started today.

Friends and Relatives

Founders of a start-up business may look to private financing sources such as parents or friends.
It may be in the form of equity financing in which the friend or relative receives an ownership
interest in the business. However, these investments should be made with the same formality that
would be used with outside investors.

Venture Capital
Venture capital refers to financing that comes from companies or individuals in the business of
investing in young, privately held businesses. They provide capital to young businesses in
exchange for an ownership share of the business. Venture capital firms usually don’t want to
participate in the initial financing of a business unless the company has management with a
proven track record. Generally, they prefer to invest in companies that have received significant

Page 57
equity investments from the founders and are already profitable. In Zimbabwe we have few if
any venture capital firms.

Angel Investors
Angel investors are individuals and businesses that are interested in helping small businesses
survive and grow. So their objective may be more than just focusing on economic returns.
Although angel investors often have somewhat of a mission focus, they are still interested in
profitability and security for their investment. So they may still make many of the same demands
as a venture capitalist. Angel investors may be interested in the economic development of a
specific geographic area in which they are located. Angel investors may focus on earlier stage
financing and smaller financing amounts than venture capitalists. Angel investors are hard to
come by in Zimbabwe. To get one, you need strong networking at many business functions
where you can try to befriend the wealthy.

Debt Financing
Debt financing involves borrowing funds from creditors with the stipulation of repaying the
borrowed funds plus interest at a specified future time. For the creditors (those lending the funds
to the business), the reward for providing the debt financing is the interest on the amount lent to
the borrower.

Debt financing may be secured or unsecured. Secured debt has collateral (a valuable asset which
the lender can attach to satisfy the loan in case of default by the borrower). Conversely,
unsecured debt does not have collateral and places the lender in a less secure position relative to
repayment in case of default.

Debt financing (loans) may be short term or long term in their repayment schedules. Generally,
short-term debt is used to finance current activities such as operations while long-term debt is
used to finance assets such as buildings and equipment.

Friends and Relatives

There are a number of pitfalls associated with borrowing from friends and family; on the positive
side, such borrowing arrangements can often be made on more attractive terms than might
otherwise be available from a more formal source of funding. For example, it may be possible to
borrow either without any form of security against the loan and it may also be possible to borrow

Page 58
at either a lower rate of interest, or even interest-free. Repayments may also be possible over an
extended period of time and a detailed business plan may not be necessary.

It is best to keep any arrangement formal, however, and to give your benefactor as much
financial information as possible upfront. You will be responsible for their money and as such it
is in everyone’s interest to manage your money effectively

Banks and Other Commercial Lenders

Banks and other commercial lenders are popular sources of business financing. Most lenders
require a solid business plan, positive track record, and plenty of collateral. These are usually
hard to come by for a start- up business. Once the business is underway and profit and loss
statements, cash flows budgets, and net worth statements are provided, the company may be able
to borrow additional funds. It is usually easier to get loans from local owned banks like CABS,
CBZ, and ZB. You will have to take a personal loan, as they rarely fund start-ups. We do not
advise borrowing money from micro-financial institutions to start a business. Their interest rates
are too high and unsustainable.

Montana Meats

Montana meats can cover all your costs for cattle fattening, if you already have the cattle. Check
our Directory section in this business plan for more information.

National Foods

National Foods can cover all your costs for cattle fattening, if you already have the cattle. Check
our Directory section in this business plan for more information.

Page 59
Top reasons for failure of cattle pen fattening business in Zimbabwe

Buying expensive and inappropriate cattle (feeders)

One must be able to source an animal of the right breed, age, sex and conformation for optimum
performance in the pens. As a general guide, if the animal cannot achieve a daily live mass gain
of 1.2-1.6kg/day with a feed conversion ratio of at most 8:1 then it may make business sense not
to pen fatten. If you buy expensive cattle, you may already be in a loss before you begin pen
fattening. Calculate the profitability margins first.

Management Problem

An incompetent management may not be able to operate a profitable cattle farm. The managers
of the farm must know what they are employed to do and posses the ability to do it. Some cattle
managers fail to recognize the peculiarity of cattle fattening in their management style, thereby
preparing good ground for losses in the venture. Many managers do not recognize the need for
timely planning and control in running the farm.

Poor feeding condition and wastage of feed

The cattle need to be fed well in the pens in order to produce maximum meat. The cattle must be
fed with the appropriate feed. Those who attempt to make home-made feeds without consulting
experts are endangering their business.

Security

Your farm should be secure so that the cattle won’t be stolen. Just imagine waking up on the 90th
day and you find your feedlots empty.

Housing

Cattle need minimum space and convenient place to grow well and produce maximally meat. If
they are overcrowded they won’t do well, and some may die.

Inability to prevent, detect and control disease

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It is often said that prevention is better than cure, as far as disease are concerned and this is a true
statement and relevant one to cattle farming. A cattle farmer should know how to prevent cattle
disease, as well as how to cure them. If he or she does know anything about preventive measures,
the services of consultants in the field should be engaged for good result. And all cattle should be
dipped first before the fattening operation.

Lack of Technical Know-how

It is regrettable that many people and organizations have ventured into pen-fattening without
technical knowledge. Knowledge of pen-fattening techniques is required before anyone can
operate the business profitably. Make sure you attend a workshop for pen-fattening before you
start the business, or visit someone who is doing it.

Ignoring the role of livestock consultants

There are always practicing experts in every profession or occupation who function as
consultants. They are there to proffer solutions to problems that exist in such professions at a
minimum cost. Where a livestock farmer doesn’t have adequate technical and managerial
experience, he or she can consult experts for necessary advice to bridge the gap. Even where the
farmer thinks he or she has all it takes to run a farm successfully, there may be need to seek the
services of experts in the field, as it is usually said that two heads are better than one.

Page 61
Directory

This is just a directory. We do not endorse any of these companies, and we are not affiliated to
them in any way.

Cattle Equipment, veterinary products, disinfectants e.t.c.

Veterinary Distributors Cnr 4th and Kenneth Kaunda, Harare. 04 793753, 793 183, 0771 054-10

Farm and City Centre, Cnr 4th and Robson Manyika, Harare

Wimpat Marketing Hardware & Vet, Cnr 2nd and South Avenue, Harare. 0774 830 726, 0772
526 696

Shalom Agrochemicals Cnr 2nd and South Avenue, Harare. 04 706835

Fivet Poultry & Livestock Centre, Cnr Robson Manyika & 4th Street
HARARE Tel: + 263 772-139-125 + 263 772-139-126 Email: poultry1@vetprod.com

For more about Fivet and contact details of other branches check their website
http://www.fivetanimalhealth.com/contact-us

Feeds

AgriFoods, 04-756100-5, 0712 632 333/5, 0712 620 567, Kenneth Kaunda Avenue, Harare

National Foods, 04 2922 278/81, 0731 706 441-2, Kenneth Kaunda Avenue, Harare

Windmill Feeds, St Marnocks, Stapleford, Lomagundi Road, Harare Tel: +263 4 2916983/4,
+263 4 334911-9, +263 4 753784-9, www.windmill.co.zw

Abattoirs & Auctions

These companies slaughter and/or buy your cattle

Koala Park Abattoir, Seke Road, along the Harare-Chitungwiza road,+263 772 958 452, +263
772 235 070

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Surrey Group Abattoir, 55Km Peg on the Main Harare to Mutare Road,
cattlebookings@surreygroup.org, www.surreygroup.org, +263712433403, +263 (0) (4)
2000301-8

Montana Meats Abattoir, +263 (04) 666473, +263 779 548 866

CC Sales auctions, +263 (0)(4) 309685/309953, +263 772 151 397/8

Feedlot Construction

Woodlot Timbers, 40 Bradfield Road , Hillside, Harare, Zimbabwe.

Tel +263 4 747475
Cell +263 772 852 225
email: sales@woodlottimbers.com, evans@woodlottimbers.com

Farmers Union

Zimbabwe Farmers Union, 102 Fife Avenue/ Sam Nujoma Harare +263 4-251861-7

+263 771564555 / +263 771564554-5,http://www.zfu.org.zw

Credit Facility

These organisations can fund your business. Contact them for more information.

Montana Meats, +263 779 548 866, http://www.montanameats.co.zw/index.php/social-

responsibility/feeder-finance

National Foods: 0782 869 611, 0734 440 574(Whatsapp), cleophasml@natfood.co.zw

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