Sheep Farming Business Plan

Sheep farming is among the traditional business and occupations of the people of some countries around the world. Sheep have been rearing as a domestic animal from the ancient time. Usually sheep farming means ‘rearing sheep commercially for the purpose of meat, milk and wool production’. Although sheep farming for commercial milk production is not a good decision. Sheep are suitable for meat and wool production.

There are several business opportunities available in the agricultural industry and one good thing about the industry is that there is market for all the produce from the industry. Sheep farming is of course a thriving and profitable business because of the usefulness of sheep meat, wool, milk and other by-products from sheep.

Sheep farming is one of the most rewarding animal rearing business and anyone can engage in the business anywhere in the world. Sheep meat is widely accepted and consumed round the globe, while the milk is also gaining in popularity and is being sold in supermarkets across other countries and represents the bulk of the liquid milk market.

People eat sheep meat, drink their milk and use their wool for manufacturing clothes, bags and other fashion based products; hence, sheep farming is done based on the desired products intended. The selection of sheep breeds is of the essence in a sheep farming business as it determines the productivity of the agricultural venture. Sheep selected should be well adapted to the climatic conditions of the area and have some form of resistance towards prevalent parasites and diseases. In addition, they should be highly productive in either wool or meat production, or both, depending on the targeted end products. For example, sheep for meat tend to be quite larger in stature and fast growing whereas those for wool are known for their fine wool grades and uniform fleeces. Wool sheep breeds possess superior maternal and wool traits. Examples of wool sheep breeds include the Merino, Debouillet, Panama, Rambouillet, Perendale and Coopworth. On the other hand, meat sheep breeds grow faster than wool sheep. Meat sheep breeds include the Dorper, Romanov, Royal White, Dorset, Ile de France and Hampshire. Some breeds are kept for both meat and wool production. They are also known as dual purpose sheep breeds. These possess admirable traits found in both meat and wool breeds. They are able to grow long fine coat; they are also fast growing and have a big stature. Examples of dual purpose sheep breeds include the Merino, Corriedale, Finnsheep, Hampshire, Suffolk and the Southdown.

Here in Nigeria, the sheep milk is still not yet widely consumed because farmers are not yet taking advantage of the opportunity. The meat is believed to be one of the best animal meat available anywhere in the market for good reasons. Not only does the meat taste great, it is also lower in fat than chicken but contains higher protein than beef that makes it better than chicken and beef.

The Livestock Farming industry is indeed a large industry and pretty much active in countries such as United States of America, Israel, Egypt, China, Germany, Turkey and Nigeria. There is no single livestock farming company that has dominate market share in the industry hence smaller sheep farming business can successfully make profits.

Commercial sheep farming business is very profitable and investors are sure to get high ROI within a short period. Over and above there are few barriers to entry into the livestock production industry. Usually, all inputs are readily available.

Table of Contents

i.    Introduction3

1.0 Executive Summary4

1.1 Benefits5

1.2 Objectives5

1.3 Vision5

1.4 Mission6

1.5 Keys to Success6

1.6 Guiding Principles6

1.7 Guiding Principles6

1.8 Guiding Principles7

2.0 Company Summary7

2.1 Company Ownership8

2.2 Location and facilities8

2.3 Start-Up Summary10

Table: Start-up Funding10

3.0 Product Description10

3.1 Services11

3.2 Future Products11

4.0 Market Analysis11

4.0.1 Market Summary11

4.0.2 Market Trend12

4.0.3 Marketing Plan12

4.1 Target Market13

4.2 Industry Analysis13

4.2.1 OVERVIEW13

4.2.2 INDUSTRY VALUE CHAIN13

4.3 Demand14

4.3.1 OVERVIEW14

4.3.2 SUPPLY14

4.3.3 DEMAND14

4.4 Challenges Facing the Livestock Industry15

4.5 SWOT Analysis16

4.5.1 Strengths17

4.5.2 Weakness17

4.5.3 Opportunities17

4.5.4 Threats17

4.6 External Environmental Analysis17

4.7 Competition and Buying Patterns18

4.7.1 Main Competitors18

4.8 Marketing Strategy18

4.9 Publicity and Advertising Strategy19

4.10 Sales Forecast20

5.0 Strategy and Implementation Summary21

5.1 Competitive Edge22

6.0 Management Summary22

6.1 Management Team23

6.2 Personnel Plan23

Table: Payroll Year 123

Table: Payroll Year 1-323

7.0 Financial Plan23

7.1 Breakeven Analysis23

7.2 Projected Profit and Loss24

7.3 Projected Cash Flow24

7.4 Projected Balance Sheet24