How to Start an Animal Husbandry Business

Part 1 - How to start an Animal Husbandry business - Background

Animal husbandry is the breeding and raising of livestock for agricultural purposes. Consumption is the primary purpose of husbandry, with many farmers using every resource available from each animal. Some invest in cattle for their milk production and/or to make and sell cheese, while others invest in poultry for their eggs. Each region has its own strengths and weaknesses; entrepreneurs considering this field should consult with their state’s animal husbandry department to come up with a strategy that would work best in their region.

Our guide is in 3 parts:

• Part 1 - How to start an Animal Husbandry business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening an animal husbandry business?

As mentioned, aspiring animal husbandry business owners need to conduct thorough research regarding land availability. The size of your land, soil, and natural feed will all play an important role in the types of animals you can successfully raise. Each type of animal requires a different type of fencing, amount of land, and grass to graze on. Your county’s local extension can assist you with any prior land information that is on file. When choosing your land, it’s also important to consider future goals. While you may decide to start out small, with just a few animals, quality and quantity will define your overall success and profits. Make sure your business plan and land investment match prior to making any commitments.

Start-up costs vary depending upon a number of factors and is, therefore, difficult to define. Land and labor costs will consume the bulk of your budget, both initially and ongoing. Once you have purchased your farm, there are a few items you may need, depending upon the livestock you raise:

• Tractors, fertilizer, heavy duty mower, plows, and herbicide equipment – To reduce initial start-up costs, consider purchasing used. Research will determine the specifics of which equipment is needed for your husbandry venture.

• Fertilizer and herbicide

• Animal feed

• Animal feed bunks/troughs and watering facilities

• Your land must be properly irrigated and must have enough facilities to handle the business’ operations

• Insurance

• Refrigeration and storage for goods prior to shipment

• Website

• Marketing supplies

Managing a farm requires a great deal of running capital. Business owners are urged to explore every option when it comes to funding. Many have found success through grants and CSA programs.

What are the ongoing expenses for an animal husbandry business?

Ongoing maintenance of a farm can prove quite costly at times, while other years your maintenance budget could be slim. Fences and buildings should be properly maintained, as should your land’s natural resources. Routine maintenance on machinery and vehicles will help reduce costly breakdowns and should be regularly budgeted for. As the business grows and needs change, some buildings may require costly renovations. For farms that raise cattle, feed costs comprise over 25% of an annual budget. Payroll expenses and insurance are also important budgetary costs that must be considered.

Who is the target market?

Target markets for animal husbandry businesses vary depending upon a number of factors. When developing your business plan, conduct thorough research to identify local market needs. Approach markets, restaurants, and health food stores. Speak with individuals in the area. What is your region lacking and how can you fulfill those needs? Can any of your products be sold online and shipped? If so, this significantly expands your potential client pool. How will you reach each of these groups?

How does an animal husbandry business make money?

Animal husbandry businesses make money through the sale of their farm raised livestock and/or the resources the livestock produces.

How much can you charge customers?

Again, there are a number of factors that go into determining your product prices. Your fees should be based on three data points: cost of production, required profit margin, and what the market will bear.

How much profit can an animal husbandry business make?

While many farmers enter this industry to turn their passion into a business, profits can be significant. Annual profits depend upon a number of variables, including animals raised, products offered, region, size of farm, and market needs.

How can you make your business more profitable?

In addition to raising livestock and selling goods, many farms have found success holding farm tours, “family” dinners, and classes that include everything from cheese making to butchering and cooking. Before taking this on as part of your business venture, be sure to discuss this with your attorney and insurance agent to protect yourself against potential liability.

Day-to-Day and Growth

What happens during a typical day at an animal husbandry business?

This industry encompasses a broad spectrum of goods and services. The specifics of your day will vary depending upon the types of animals you raise and the goods you intend to offer. Goats, horses, sheep, pigs, cattle, and chickens are just a few of the animals raised on farms throughout the country. Each of these animals require their own type and amount of land, fencing, cleaning, and food. Your days will be spent ensuring both the land and the animals are well-maintained and that equipment is kept in running order. Equally as important will be your marketing and networking efforts and administrative duties. A meticulously written business plan is critical for your farm’s long-term growth and profits. Conduct thorough research to ensure your land’s resources align with the animal’s needs and that there is a market for the goods and services you plan to offer.

What are some skills and experiences that will help you build a successful animal husbandry business?

As with every business venture, your success is reliant on your vision and drive. As a livestock farmer, you must be hardworking, dedicated, and knowledgeable about the animals you are raising. Long-term growth and success requires a proactive nature and a passion for learning. Due to the intricacies of this industry, one’s ego must be set aside, with entrepreneurs embracing the knowledge other farmers have to offer.

Additionally, it is critical that business owners treat their farm as a business, rather than a hobby. If you lack the skills to market and/or manage a business of this magnitude, consider attending classes at your local college or seeking the help of a professional. The Small Farm Nation Academy offers members access to a number of resources that can help new farmers build a successful animal husbandry business.

What is the growth potential for an animal husbandry business?

For as long as humans exist on this Earth, there will be a need for food. The two primary sources of food are animals and crops. Out of the various divisions of the agricultural industry, animal husbandry is the most profitable. Growth is reliant on acreage and market need, with many farmers opting to expand their businesses across multiple states.

What are some insider tips for jump starting an animal husbandry business?

Successful animal husbandry business owners across the globe offer the following advice:

• Identify and clearly market your competitive advantage before your business opens. Each decision and investment you make should be with this advantage in mind.

• It’s important to remember that some facets of this industry have seasons. Research and prepare to ensure maximum profitability.

• Many farmers urge those just entering the industry to abandon the thought of trying to define the “ideal” customer. Instead, identify various customer types that will be drawn to your farm products and determine how you will reach those customers.

• Start marketing your products before you open your doors.

• Start small and do your best to stay out of debt. Farm maintenance one year may be slim, while the next year could require tens of thousands of dollars.

How and when to build a team

Unlike many businesses, trying to manage a farm alone is not advisable. It requires long hours and hard work. Carefully consider each prospective employee. What experience do they have? Are they passionate about the work? What knowledge can they offer that you currently lack. Depending upon the specifics of your work, required labor may be more seasonal. Take this into consideration and be honest and upfront with team members you are considering.

Part 2 - Is an Animal Husbandry business the right fit for you?

Part 3 - Action plan to launch your Animal Husbandry business in 90 days