Exploring a Meat Processing Business Toolkit
This toolkit is a set of resources for entrepreneurs interested in starting or expanding a meat processing facility or those interested in exploring the industry. These resources are tools that entrepreneurs can use as aids in their decision-making processes. The tools in this kit are focused on Ohio, but can be replicated for other geographies. All these tools are meant to be individualized based on an entrepreneur’s unique circumstances and goals. Using these tools does not guarantee success.
In the early phases of exploring a new or expanded meat processing business, entrepreneurs may want to assess the potential need for an enterprise in their region by reviewing the region’s livestock production, current meat processing capacity, and the various models for meat processing enterprises. Below is a list of questions to review and answer before moving forward. Questions are designed to give readers an idea of the basic approach to getting involved in the meat industry.
Understanding the Capacity of the Region
The tools below can help entrepreneurs explore the potential need for a meat processing facility in their region based on current processing capacity and livestock production. Check the user information guide in each resource to see how you can adapt the material for a specific geographic area.
Considering Different Models
There are many different types of meat processing enterprises, from cooperatives and corporations to mobile slaughter units and high-volume slaughterhouses. This bulletin explores models that have been used around the United States to develop or expand local meat processing enterprises via farmer engagement, partnership, or investment. This is not an exhaustive list of meat processing models. It is a review of some innovative models utilized by producers and processors.
As entrepreneurs explore the opportunity to start or expand a meat processing enterprise, it is helpful to develop a business plan and assess the financial requirements of the future venture. The tools below are intended to help entrepreneurs develop informed, comprehensive plans that can be utilized to make decisions about the opportunity. Entrepreneurs may also use business and financial plans in obtaining loans for a business.
A business plan can help entrepreneurs communicate their ideas, identify areas they have not considered, and develop their understanding of the industry and business they are exploring. Entrepreneurs can use the following documents as templates for writing a business plan. This includes a link to Iowa State University’s Guide to Designing Small Red Meats Plants, which may answer questions about facility planning and needed supplies. In developing the plan, entrepreneurs will answer important questions like: How will the business be managed? How will the business market its products or services? What is the business’s competitive factor?
An important step in the business planning process is financial modeling. The templates in these toolkit models will help entrepreneurs estimate start-up costs, income, and expenses to understand the financial viability of an enterprise. Entrepreneurs should use information specific to their operation to develop accurate projections.
Exploring Funding Sources
Meat processing is a capital-intensive business and entrepreneurs exploring a meat processing business will have to plan for the financial needs of the enterprise. This tool outlines types of funding that an entrepreneur might use to build or expand a meat processing business, along with examples of potential funding sources.
Feasibility Study Example
Entrepreneurs planning for a meat processing business may conduct a detailed analysis to determine if an enterprise is economically feasible. Entrepreneurs may also use a feasibility analysis to help build their business plan. Future processors and others can use the analysis as a model for conducting their own assessment with updated data and information for their own circumstances, or they can use the analysis to check their business planning assumptions.
Contact Us for Assistance
Staff and faculty at The Ohio State University are available to assist entrepreneurs who are exploring meat processing enterprises with business planning or better understanding the industry.
Ohio State University Meat Science Extension
Lyda Garcia - Fresh Meats Specialist
Lynn Knipe - Processed Meats Specialist and HACCP Specialist
CFAES Center for Cooperatives
Hannah Scott - Center for Cooperatives Program Manager
Ryan Kline - Cooperative Development Specialist
OSU South Centers Business Development Network
Brad Bapst - Small Business Development Center Director
Chris Smalley - Business Development Specialist