Do you want to start a commercial meat processing plant business? If yes, you have landed at the right place. Here in this article, we provide you a detailed project plan guide to launch a meat processing production unit.
The demand for processed meat is increasing very fast. Additionally, the business has the export potential also. And the business is perfect for both developing and developed countries. However, this business demands extensive strategic planning and moderate capital investment.
Basically, meat is a highly perishable item. Therefore, it needs special processing for getting a longer shelf life. India holds a prominent position in producing meat. The contribution by cattle, sheep, goats and poultry is 30%, 5%, 10%, 10.2% and 11.5%, respectively. Additionally, the livestock sector plays a critical role in the overall economy of our country.
Is Meat Processing Business Profitable?
The global processed meat market is valued at around USD 714.00 billion in 2016. According to the experts, it will reach approximately USD 1,567.00 billion by 2022. Therefore, it is growing at a CAGR of around 14.0% between 2017 and 2022. Some of the top processed meat importing countries are United States, China, Japan, Russian Federation, and South Korea.
Basically, the increasing disposable income in emerging countries is the major reason for the growth. Moreover, rising consumer awareness regarding animal protein-rich diets and large varieties of processed meat available in the market at lower prices is further expected to boost the demand for processed meat.
However, you can categorize the processed meat market on the basis of meat type into poultry, pork, mutton, beef, and other processed meat. Nonetheless, meat consumption in developing countries is continuously increasing. Therefore, starting a meat processing plant business is a lucrative opportunity for new entrepreneurs.
Steps to Start Meat Processing Plant Business
1. Market Study & Business Plan
In starting this business, you must perform market research. And it is mandatory in starting any type of product-based business. You will need to identify the demand for the different types of processed meats. Additionally, check the prices. Identify the established companies in this field. Try to figure out their marketing policy and sales promotion strategy. These all will help you in taking your business decisions easily.
Crafting a business plan is important in this business. According to your investment capacity, you will first need to create the business model. First of all, calculate the financial investment involves in the business. Additionally, craft a marketing plan. You must have a clear idea about how you will going to compete with your competitors.
2. Business Compliance
Generally, processed food items demand different types of licensing and permissions. However, it depends on the location where you are starting the business. In India, you will need to obtain the FSSAI license. Additionally, compliance with PFA Act is mandatory. Furthermore, you will need to obtain permission from the state Pollution Control Board.
GST registration is a must for running a meat processing business in India.
Additionally, check the tax liabilities. Register your business according to the management pattern and investment ratio. Register your unit with Udyog Aadhaar. You can do it online now. Finally, if you want to tap the export market, you must have the IEC code for that.
3. Plant & Machinery for Meat Processing Unit
First of all, you will need to secure a space for establishing the unit. Try to secure the space at an industrial zone or Food Park. Check the availability of utility resources like electricity, water, and labor. It is advisable to secure a space with both covered and open areas.
You will need to procure the machinery according to the value-added products you want to offer. If you want to sell only chilled meats, then you will need to have slaughtering arrangements and chillers. For other items, you can import the integrated machinery from China. However, setting up an effluent treatment plant is mandatory in this business.
4. Raw Materials
the major required raw material is livestock. According to the products, you will need to procure the livestock regularly. For producing value-added items, you will need to procure different types of sauces, edible oil, onion, salt, pepper, and spices.
Apart from these ingredients, you will need to procure the packaging consumables. Again it depends on the products you are offering. If you want to offer canned processed meats, then you will need to procure the aluminum cans. Also, you can pack the meats in polythene packets.
5. Manufacturing Process
Different types of manufacturing technologies are available for several products. And you must source the technology from a reliable research center only. Here we are giving some of the basic steps of meat processing for your ready reference.
The first stage of the meat processing operation is the slaughtering of the livestock. Then you will need to go for skinning the carcass, trimming, and separating the different parts of the body. Then you will need to sterilize the meat to avoid the bacteria that may exist in the meat.
The treatment duration for sterilization depends on the bacteriological quality of the meat. And it depends on the nature of the meat where the presence of a high degree of fat in the meat will affect the sterilization process. Other factors include slaughtering conditions and sanitary conditions after the slaughtering. Then the meat is cooked in sauce together with other ingredients and canned at the end.
Staffing plays an important role in this business. According to the work scope, you will need to have three different types of manpower. First of all, you must have skilled personnel for the production unit. Here, you must have a production manager and other necessary staff. Additionally, you must have an effective sales team and administrative employees.
7. Promote Your Meat Processing Business
Promotion plays an extremely important part in the success of any business. You can concentrate on establishing the distribution network in the local market. Additionally, contact with the supermarkets, departmental stores, and retail chains. Big hotels, restaurants, and resorts are the major consumers of this item. Additionally, you must concentrate on developing brand awareness for your meat processing business.
Recommended Tools for Startups
Updated by The Research Team of NextWhatBusiness