Milk production business plan

Dairy Farming Business Plan.

Milk production business plan

This strategic business plan was drawn up to assist the entrepreneur to expand on the existing capacity of his farm business which specialises in the rearing and selling of sheep and related by-products.

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Micheal currently owns 65 sheep consisting of the breed Ram and Ewes. This business plan was drawn up to assist the entrepreneur to expand on the existing capacity of his farm business which specialises in the rearing and selling of sheep and related by-products.

Micheal has previously studied Marketing and Business Management. These qualifications will be beneficial to AfriAgric Sheep Farming. The entrepreneur intends to add onto his skills and competencies by studying Sheep husbandry with a recognized milk production business plan centre or Agricultural institution.

The potential and wholesomeness of sheep farming cannot be overstated as sheep farming is an essential source of benefits such as the following: Sheep farming also outlooks essential by-products such as dung which is used in fuel production as well as bio gas production.

Indirect benefits of sheep farming encompass weed control and many others.

milk production business plan

The entrepreneur understands the full potential of sheep farming and is keep to fully exploit the business opportunity. Michael believes in his business and is confident that AfriAgric Sheep Farm will contribute towards job creation, self reliance, economic development and poverty reduction, to mention a few principle ones.

The Business Opportunity The business opportunity was realised by the entrepreneur, Micheal - there is a growing demand for sheep meat, sheepskin, wool and associated sheep products in the region where the business is located as well as surrounding areas. The opportunity is also attributed to factors such as the growth in population, rising income levels, growing middle income group and increasing urbanisation which stirs a demand in the main city centers.

Goat Housing

The increase in abattoirs and butcheries also signifies the business opportunity. Milk production business plan is also a market for sheep dung which used for fertilizer as well as for research purposes aimed at producing fuel and bio gas.

Additionally, there is potential for the business to supply wool for the production of clothing and sheepskin for the production of leather. This policy contributes to reconstruction and development addressing issues such as the injustices of racially based land dispossession of the past, the need for more equitable distribution of land ownership, the need for land reform to reduce poverty and contribute to economic growth and much more.

As AfriAgric Sheep Farm is engaged in Agriculture, there is potential for the entity to benefit in terms of being assisted with land as a result of the existence of the current Land Re-distribution for Agriculture Development LRAD programme. To benefit from this programme, a suitable land must be identified and thereafter the entrepreneur could approach the Department of Rural Development and Land Reform for assistance.

Technical support from extension officers from the Department of Agriculture is also available. Other issues that signify the business include the current food security concerns and intensified Rural Development.

Analysis of the Market The market for sheep meat as well as the by-products of sheep is broad and can be segmented into corporate and individual consumers. The business can anticipate a market from medium to high income earners as these purchase sheep for personal home consumption as well as for occasions such as weddings, braais, workshops, funerals, meetings, family gatherings and other social events.

Agro-processors form an essential part of the corporate market. Key buyers of sheep within the corporate arena include abattoirs, butcheries, retailers and wholesalers.

The Government in terms of Municipalities, Government Departments and other Government bodies also fall under this category.


The wider private and public sector form part of the market for sheep. This market segment usually procures by means of tenders or agreed upon contracts. The quantities involved are usually much higher than those requested by individual consumers.

While corporate consumers usually procure their products in large quantities, some delay in terms of payment and can be very particular about quality standards and other issues pertaining to conformity.

The Target Market The selection of a suitable target market for AfriAgric Sheep Farm is imperative to the attainment of profitability, competitiveness and sustainability for the business. Essential factors such as the ability of the entity to meet the needs, requirements and preferences of the market segments were considered.

Other determining factors such as the profitability, growth, growth potential, size and risks of the market segments were also considered.


AfriAgric Sheep Farm shall target local small to medium sized butcheries and abattoirs. The Competition The main competition for the entity mainly emanates from two other white farmers that rear and supply sheep and its associated sheep products on a commercial basis.

They supply to local abattoirs and butcheries. Indirect competition emanates from large scale sheep farmers that are in some cases integrated forward and backwards. Suppliers of alternatives to sheep meat products which include beef, pork, fish, chicken and others will also contribute to the indirect competition of the business.

Competitive Advantages In terms of competitive advantages, AfriAgric Sheep Farm will focus on niche markets as well as have a thorough understanding of the needs and preferences of its clientele.

This understanding of the needs and preferences of customers will supersede that of its competitors. The ability of the business to respond to the needs and preferences of the market shall be instrumental to the success of the farming entity.

The business will ensure that all functional areas of the business achieve their stipulated goals and objectives which contribute the overall business strategy of AfriAgric Sheep farm.4 EXECUTIVE SUMMARY ost of Africa is in a well-documented crisis relating to poverty, war, lack of development, lack of education and disease, most notably the HIV/AIDS pandemic.

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In , John Cadbury, a Quaker, began selling tea, coffee and drinking chocolate in Bull Street in Birmingham, England. From he moved into the production of a variety of cocoa and drinking chocolates, made in a factory in Bridge Street and sold mainly to the wealthy because of the high cost of production.

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milk production business plan

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