There are a number of cattle businesses to consider if you are looking for a profitable future in animal agriculture especially cattle.
- Cow/Calf Enterprises Also Known As Weaner Production
Here entrepreneurs produce calves for sale, calves are sold from 6 months to 8 months at around 120kg to 180kgs.
This business is suitable for entrepreneurs who borrow funds from institutions such as CEDA, NDB and youth. It provides a source of finance to pay back funders while growing the business.
Who should buy from cow-calf enterprises? Employed Youth looking to start off an investment, instead of saving in banks, get that money and buy a calf every month. By December you have 12 calves and by the next year they start breeding. Don’t not expect to cash from this business, it’s an investment, give it time to mature. Nature it, and become a commercial cattle breeder.
- Commercial Cattle Breeding
Commercial (a cross between different breeds, generally without any type of documented pedigree) Commercial breeders can start off small from buying from weaner enterprises and grow their business. Or they can start large from about 100 cattle.
Income from commercial beef herd comes mainly from the sales of calves and old or cull animals. If you start from a loan do not make the mistake of not selling weaners to pay of your loan.
- Pure breeds/Studs/Registered
Purebred cattle are raised to produce breeding stock for other purebred producers and for commercial cattle breeders. This business, usually needs a large capital investment in stock. Both the sire and dam must be purebred and registered with the national breed association on the stud book. Most purebred producers belong to a breeding Association which keeps records of all cattle in that breed and generates information about the performance of the breed in general as well as specific. These cattle tend to be managed a little more intensively. Stud breeding offers an opportunity to produce high quality breeds that do well in your preferred location. Here, there is use of artificial insemination to produce pure breeds. Also gives a big opportunity to sell semen of pure breeds.
Here animals are fattened for slaughter. That is cattle are fed to obtain the right amount of fat on and in muscle and a higher carcass mass. They remain in a feedlot for 90- 120 days and funds must always be available at all times to buy in animals. Feedlots can be on-farm or commercial feedlots. They require huge financial support but profits are large. Therefore with the right management it’s a great business.
When going into cattle business farming, the most important factors to consider is your market, your location, your finances.
The main question to ask yourself before you start, is why? Why do I want to do cattle farming? How do I want to make income with this? Do I want active income (earned income), passive income or portfolio income?