Livestock farming as a business is, in fact, the oldest type of human activity. This occupation has always been profitable. This topic is relevant today.
Low cost and constant demand - the key to success of any business
It is believed that animal husbandry requires a large and constant investment of capital. However, with the right and balanced approach, this business really deserves attention. Products such as meat, butter and milk are in constant demand.
A business plan drawn up by a knowledgeable entrepreneur will make it possible to achieve both a rapid increase in the number of livestock and an increase in the volume of all production. Given the low cost of livestock production, it is possible to invest a large share of working capital in business development.
With good quality products, demand for goods will always be ensured. The plus is that this niche will never be fully occupied, therefore, the possibility of business growth is not limited.
In addition, in our country, an industry such as cattle breeding is given less attention than, say, agriculture. Perhaps the old stereotypes are affecting, in which animal husbandry is not considered a business.
Meanwhile, this is a very, very profitable investment, which proves a simple business plan presented below. Livestock as a business can be divided into dairy and meat. Under certain conditions, by the way, they can coexist successfully.
Start
Let us dwell on the project, the purpose of which is the production and subsequent sale of beef. Beef cattle breeding, as already mentioned, is quite profitable. What is needed for a modest start?
To begin with, a total of 66 thousand rubles will be required. Of these, the subsidy (financial assistance) provided by the employment center accounts for 41,403 rubles, and for personal funds, respectively, 24,597 rubles.
Beef cattle breeding is divided into three stages: the purchase of calves, their care (rearing) and the direct sale of products. The figures indicated in the calculations are approximate and may vary (depending on the regions). When drawing up your own business plan, prices will need to be specified on the spot.
Indicative production plan
- The acquisition of dairy calves (3 pcs.) - 30 000 rubles.
- Feed purchase (hay, fodder) - 12,600 rubles.
- Other expenses - 6,000 rubles.
We calculate the sales revenue:
- meat yield (average) - 650 kg;
- offspring - 6,000 rubles. (1 head);
- meat price - 150 rubles. (per kg).
The proceeds from the sale will amount to 122,800 rubles. Sales of products can be carried out both through direct trade, and when sold in district (city) outlets.
If you plan to expand beef cattle breeding, then you may be interested in the data below.
Registration and taxes
The livestock business will require registration (individual entrepreneur). The form of ownership, respectively, is private. Physical tax person, according to Art. 224 of the Tax Code of the Russian Federation (chapter 23), is 13%. We clarify: income received by an individual entrepreneur is recognized as an object of taxation, as described in the second paragraph of Art. 236 of the Tax Code of the Russian Federation. UST includes, among other things, medical and pension insurance. The basis for the calculation is the “net” revenue (received after deducting the amount of expenses (Tax Code of the Russian Federation, paragraph 3, article 237)).
Detailed forecast of income and expenses (in rubles)
- Sales (revenue) - 97,500.
- Cost (expenses) - 66 000.
- Acquisition of young animals, feed - 63,000.
- Transportation costs - 3,000.
- Gross profit / loss - 31 500.
- Pension insurance (compulsory fixed contribution paid by entrepreneurs) - 7,275.
- Net income - 24,225.
- Accumulations for expansion of production (subsequent independent breeding of cows) - 20,000.
- Consumption / distribution - 4,225.
- Funds withdrawn for personal needs - 4,225.
- The funds at the beginning of the year are zero.
- Funds by the end of the year (reporting period) - 86,000.
Calf Purchase
Livestock as a business requires calculation in everything. It is imperative to choose the “right” breed. Which cow is best for meat? Let's review the most popular breeds.
Let's start with the Simmental. It is especially recognized and distributed. A new-born goby weighs about 30 kg, by the year its weight increases by a hundred times (up to 300 kg), and by one and a half years it reaches 400 kg. As for the yield of meat, you can count on 60% of net weight.
The Kazakh white-headed breed is no less popular. Cow for meat is growing rapidly, by one and a half years reaches 450 kg. The meat is delicious. With good feeding, 65% yield can be expected.
Hereford is another fast-growing breed. Perhaps someday the livestock business will be built on it. Amazingly, the average daily weight gain of a bull can reach 1.5 kg with good care, and the meat yield is 82%! Unfortunately, in our regions the breed is quite rare and has just begun to spread.
Another breed worthy of attention is called Aberdeen-Angus. Over the past decades, it has acclimatized quite well in the CIS and, in particular, in Russia (in most regions). The main advantages are rapid growth, early maturity. The calf itself at birth weighs 14-16 kg, however, due to the genetic predisposition, the weight is gained quite quickly. By the time of weaning from the mother, the calf weighs 200 kg (at the age of 210 days). The meat yield is in the region of 70%.
Another interesting breed has taken root with us - the Charolese. Ideal cow for meat. However, her calving is very complex - calves are born quite large. Animals grow fast. A full-aged goby reaches 1,200 kg, while the meat yield is up to 70%.
Those who consider livestock farming as a business should recommend another breed - the Limousine. At birth, the goby weighs about 40 kg, at the time of weaning from the cow (at eight months), its weight reaches 240 kg. An impressive livestock yield of 83% will please any breeder.
A great the source of income is the Salers breed. These cows are quite fertile. Unpretentious. Able to calve even when crossed with other breeds. Gobies are fast-growing, by eight months they can weigh 280 kg. The weight of an adult reaches 1300 kg. Net yield - 60%. The breed is especially popular now in the Belgorod and Tyumen regions.
Selection (purchase)
This section is no less important than the others. Livestock as a business does not tolerate errors and experiments. Therefore, if you are still poorly versed in breeds and their characteristics, buy gobies (or cows) only in specialized farms that meet the quality mark.
An example of a good breeding factory is CJSC Sputnik, located in the village of Lepsari (Vsevolzhsky District, Leningrad Region). The main direction is the breeding of cows of the Aberdeen-Angus breed.
Of course, this is not the only farm where you can buy a breeding bull. It is better to limit your searches to your own region (or nearby, neighboring). Firstly, it is advisable to purchase animals that are common in your area. In addition, delivery will cost a considerable amount. It is extremely undesirable to buy livestock from private traders. Only experienced breeders who understand the breed can afford such a step.
Fattening
It is more expedient to acquire young growth in the early spring. Gobies that go for meat are raised from one and a half years to 20 months. Moreover, in the last three months they require intensive feeding. With free grazing, it is possible to significantly save on feed. The saving of concentrates is 20%.
Up to six months, calves must receive at least 700 kg of skim milk and 250 kg of whole milk. There must be a silo in the diet (50% before the year and 60% after the year). Concentrated feed is limited to 25%.
