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Business quick guide for the meat processing industry

June 01, 2016

With an increase of export demand due to favourable weather conditions and a strong rise in production volumes of both beef and lamb, there has been a notable increase of acquisition of meat processing businesses and a rise of new start-ups entering the market. If you are currently planning to enter into, expand or build your business, or if you want to make your existing business model more profitable, we have some tips!

“The annualised industry growth of 9% since 2011 along with the low level of capital intensity gives business owners healthy margins for success and financial growth.”

ACQUISITION OR START-UP?

Evaluation is key; an existing company with a proven business model also needs to look good on paper, demonstrating a healthy history of profitability. Before entering into an acquisition opportunity check the company’s existing customer base, the consistency of turnover and the value of each customer. Reputation and brand recognition are also pivotal factors to consider. Review all historical liabilities and establish if your product or niche can fit into the model of a pre-existing company; if not, a start-up may be a more favourable option.

 

SWOT ANALYSIS

In your planning stages clearly identity your strengths, weaknesses, opportunities and threats. Review your existing competition but remember that running in your own lane is also important. Connect with industry bodies, trade groups and regulatory agencies; immerse yourself in the industry and complete as much background research as necessary so that you arrive to a clarified understanding of your product and service offering.

CBS-Foodtech-TestKitchen 01

 

PLANNING, AND PLANT DESIGN

In the initial phases of your planning you will need to consider where your supplies will come from, this includes both meat and non-meat ingredients like ingredients, packaging and most importantly your equipment. This will then lead you to the design of your facility where construction and set-up costs must be treated as a priority.

 

FINANCING AND WHY YOU NEED A BUSINESS CASE APPRAISAL

Finding the right machinery at the right expenditure can be challenging. Perhaps the most important factor to consider is the level of investment, particularly for start-up meat processing businesses. In the presence of grant funding, and loans from either bank or private investors it is crucial to consider the level of initial investment in plant machinery. Overcommitment can be just as detrimental as underinvestement.

CBS Foodtech can conduct business appraisals for customers who wish to buy machinery or ingredients, which can justify capital expenditure appraisals required to obtain funding. Our service, in most instances can be used to offset against the purchase of machinery and ingredients.

KNOWLEDGE, BRANDS & COMMERCIAL FOCUS

Tapping into industry expertise is important during the set-up phase. Our team is made up of experts who have worked in multidisciplinary roles within the meat processing industry in both Australia and Europe.

“As industry leaders we supply European machinery and ingredients that offer unparalleled solutions to food manufacturers of all sizes and have done so for over thirty years.”

With our testing facility in Sydney, customers can trial our popular meat industry machinery from reputable brands like Treif, Reich, Rex, Boss and Sesotec to name a few, and experiment with flavourings and ingredients prior to making key investment decisions.

During the planning phase, consider CBS Foodtech for assistance in the following areas

  • Machine and product testing
  • Research and development
  • Full factory design, build and installations
  • Capital expenditure appraisal
  • Factory operations analysis and cost reduction programmes
  • Training
  • KPI measurement programmes

Designing and planning a small to medium size plant can be overwhelming which is why our Business Case Appraisal service is on high demand. We have the knowledge, expertise and innovative vision to allow your business, whether new or established, to perform as efficiently as possible.

To book your consultation get in touch with our team.

 

 

 

 

 

ABOUT CBS Foodtech

CBS Foodtech Pty Ltd is an Australian owned multifaceted company that is today a significant contributor to the food processing industry. A family owned and operated business established in its Sydney premises for 30 years.