How To Start A Butchery Business In South Africa
What is a Butchery?
the work of slaughtering animals and preparing them for sale as meat.
Overview of Butchery Business in South Africa
A butchery is a very profitable business to start in South Africa. As the average income in South Africa has risen steadily, meat consumption levels in the country have skyrocketed over the past two decades. As incomes rise, meat is becoming more affordable to South African consumers, meaning most meals contain meat. Over 250 000 tonnes of meat is consumed every month in South Africa. It is evident that this is a business market that you can explore. A butchery acts as a middle man between the consumer and the farmer.
How To Start A Butchery Business In South Africa
LOCATION & PREMISES
This is an important decision to make before you start a butchery business. It’s important that you locate your butchery close to your target market. Consider the amount of road traffic, find an easy accessible location where people can stop and quickly get service. There are several possible locations, including shopping centres, malls and the CBD. Opening a butchery close to places that typically have braai areas such as parks and lakesides could be ideal depending on your target market. By talking to people who frequent the park or the lakeside area you are targeting, you could discover that they have to drive long distances to get fresh meat to braai. By opening a butchery nearby you will be solving a problem. You can also collaborate with the owner of a chilling spot that sells alcohol to create a buy and braai set up. The two businesses will feed into each other, there will be no need to compete.
It’s common to see hanging animal carcasses when you walk into a butchery. The cutting, and most of the work done by the workers often happens at the main floor as customers continue to enter and leave the store. However, there has to be some sort of storage system where you put some of your carcasses instead of having it all on display. Butcheries vary in sizes, the amount of space you need depends on how big your market is and what type of meat you will be selling. Your butcher shop business plan should cater for the costs of renting or buying premises.
EQUIPMENT FOR BUTCHERY BUSINESS
You need various equipment for your butchery business. The equipment you need will depend on the size of your butchery business and the kinds of meat you will be selling. Required equipment include industrial deep freezers, cold rooms, display fridges, meat slicers, scales, knives etc. You may also buy a meat delivery van to enable you to transport the meat on your own. Your butchery business plan should cater for the costs of purchasing equipment.
PRODUCTS
The products to sell will depend on your target niche. The most consumed meats in South Africa are chicken, beef, lamb & mutton and pork in that order. So it will be advantageous to have all these meats in your butcher shop. Other products to consider include sausages, biltong, fish, goat meat, sea food, burgers among others.
It’s also essential to select the right meat suppliers for you butcher shop. You need suppliers who can provide affordable and quality meat consistently. There are two major options available. You can purchase slaughtered meat from meat wholesalers, distributors and abattoirs. Alternatively, you can source live animals directly from farmers eg cattle and poultry farmers. You will then have to slaughter the animals. Your meat shop business plan should outline the products you will be selling and the costs.
STAFF & MANAGEMENT
As a customer-centric butchery business, its important that you hire employees that are friendly and efficient. Your employees should be passionate about serving the clients. If you want to hit the ground running it’s better to hire a team of people who have experience in this business. Your staff members should be able to cut meat according to certain specifications. Inexperienced staff members need to get extensive training before they can be given intricate tasks such as meat cutting. The knives and machinery used at butcheries can cause serious injury. Depending on the size of your meat shop, the number of your staff will vary. Required staff include the block man, cashiers, logistics personnel, shop assistants and management. Your butchery business plan should cater for the salaries of your employees.
Some of the day-to-day operation of this business involves:
- Operating machinery
- Moving heavy carcasses
- Cutting and weighing meat
- Liaising with farmers/suppliers
- Managing Staff
- Serving customers
When you are handling food items you should always remain aware and alert by paying attention to what touches your meat. Food contamination can cause serious health issues. It’s also very important to ensure that you stick to all industry related safety measures in place. Safety measures involve having to check if your staff members are dressed appropriately.
MARKET
According to a Stats SA retail trade industry report, at 8,1% of total sales income by commodity, meat is the top contributor to the total retail trade sales. South Africans love their meat! Meat lovers enjoy fresh good quality meat that’s also reasonably priced. The market is vast. The annual demand of meat in South Africa exceeds 3 million tonnes per year! With South Africa’s braai culture, community stokvels, weddings and funerals, the demand to purchase meat in bulk is high. Businesses such as restaurants, b & b’s, supermarkets, fast food outlets, event coordinators, party planners usually get their meat supplies from butcheries. Individuals are also a huge chunk of the market!
Frequently Asked Questions (FAQs)
Do I need a license to sell meat in South Africa?
In accordance with the Meat Industry Act 1993, you are unable to commence operations until a licence has been granted by PrimeSafe. To obtain a PrimeSafe licence you will need to: Ensure that your facility complies with the construction requirements of the relevant standard.
Is butchery business profitable in South Africa?
The butchery business is a profitable venture due to the high demand for meat in every household. Meat forms a greater part of South Africans food making the butchery business see a rise year in and out.
How much does a butchery make in South Africa?
The average butcher salary in South Africa is R 210 000 per year or R 108 per hour. Entry-level positions start at R 174 000 per year, while most experienced workers make up to R 300 000 per year.
What’s needed to open a butchery?
Required equipment includes bandsaw/bone saw, biltong slicers, meat mincers, meat slicers, sausage fillers, patty press’s, display fridges, meat tenderizers, scales, knives etc. There’s a need for tables (preferably made from stainless steel) where processes like meat cutting, sorting and packing are done
How do I get a hawker’s license in South Africa?
You will need to apply for a licence from the City’s Trade Licence Department. In addition, you will need to pay a once-off application fee. Only when all departments have retuned favorable reports and recommend approval the trade license will be issued.
What makes a butchery successful?
A smoothly operating butchery requires specialised refrigeration, prep areas and retail space. You will also need trays, carts, a cold room, cabinets and display equipment. The area needs to be well designed and hygienic to allow for meat cutting, sorting, packaging and serving.
Can you make money as a butcher?
It’s important that you’re able to offer great incentives and a good work environment for your employees. The gross margins for your butcher shop business are typically around 43%, which can make it more challenging to incur new expenses and maintain profitability.