There are a number of cattle businesses to consider if you are looking for a profitable future in animal agriculture especially cattle.
1. 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 180kg.
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.
2. 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.
3. 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 purebreeds. Also gives a big opportunity to
sell semen of purebreeds.
4. Feedlotting
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 to 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, and 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?
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