STARTING A BUTCHERY BUSINESS IN KENYA GUIDE

*BUTCHERY IS A PROFITABLE BUSINESS BUT YOU NEED TO HAVE THESE FACTS*

Kenyans love meat and thus a butchery can be a lucrative business. Butchery business is often seen to be done by people who did not make it in school, yet it is very profitable.

Only entrepreneurs with keen eye try this business but because most Kenyans love clean businesses they often miss out on opportunities that could earn them good money. Butchery business is extremely easy to operate.

The cost of starting a butchery in Kenya depends with location and size of the shop. It is advisable to have your butchery located in a place with high human traffic, e.g. near a bus terminus or a busy street.

Low Income Areas – Ksh.100,000

Middle Income Areas – Ksh.200,000 – Ksh.500,000

High Income Areas – Ksh.500,000 – Ksh.1,000,000

*Start a butchery business*

Meat Supply: Butcheries within and around Nairobi area get their meat supply from Dagoretti, Njiru, Kajiado and other smaller slaughterhouses. 

Others in Nairobi get their meat supply from City Market. Those outside Nairobi depend on slaughterhouses near where they operate from.

A kilo of beef in these slaughterhouses ranges between Ksh.250 and Ksh.320. The price will depend on the location of slaughterhouse, type of meat and season. Goat meat will be supplied at about Ksh.320.

On average, bigger butcheries which sell ready to eat meat such as boiled, roast or fried beef or goat meat with ugali, rice, matoke etc sell more meat than those who only sell raw meat. 

Such butcheries move as much as 300kgs of meat per day. Smaller ones which only sell raw meat take about 50–100Kgs.

*Prices*

You should determine your selling price depending on where you are located by visiting other butcheries around the area where you are interested in setting up and comparing prices. This will ensure that you set your prices within the market rate. 

In many areas of Nairobi, a kilo of beef sells for between Ksh.400 and Ksh.460 depending on type and location while goat may sell for up to Ksh.500 per kilo.

If you decide to boil, choma or fry the meat, you have a chance of making more profit for every kilo of meat. You will sell ¼, ½ or any other portion with either ugali, rice, roast potatoes, matoke or any other accompaniments.

*Waste*

An interesting point to note as you budget for your first supply of meat from the slaughterhouse is that you should be ready for some waste from the meat which will reduce your net kilos that you can put up for sale. As you wash the meat to remove the waste, you may end up with several kilos of waste daily.

As wetness and blood in the meat reduce, you will lose more weight during the day. As you cut to sell, the breaking of bones and falling pieces further reduce your net kilos that will be available for sale. Therefore, work with higher kilos because of these losses as the day goes by.

A supply of about 300kgs in a day may lose between 5–10Kg of waste from washing, breaking bones when cutting, loss of water and blood and falling pieces in a day. It is therefore important to handle the meat very carefully to control this wastage and minimize it as much as possible.

*Profits*

To look at the possible profit margins that you should expect, let us assume that your butchery is medium and you get a supply of about 200Kg from the slaughterhouse every day at an average price of Ksh.300. 

Let us also assume that business is low and you are only able to sell 150Kgs out of the 200kg of the supply at a lower price of Ksh.400 per kg.

Your net profit per kilo of meat sold will be Ksh.400 – Ksh.300 = Ksh.100. 

By selling only 150Kg of meat, your total profit will now be Ksh.100 X 150 = Ksh.15,000.

If you sell the meat after cooking and with accompaniments, you are likely to sell many more kilos. That is a good profit in a day, even before factoring in other expenses such as charcoal, oil, water and labour.

*Salaries*

Always remember that you will need staff in your butchery to help you with cutting, cooking if you sell cooked meat and a cleaner to take care of the cleanliness inside and around the business. 

In a butchery business, cleanliness plays a very important role in your success.

On average, a number of butcheries around Nairobi area prefer to pay their workers daily. Daily wages for a cook is about Ksh.700, cleaner Ksh.500 and those who cut meat take home about Ksh.350. You can budget for higher salaries depending on experience and location of your butchery.

*Tips for Success*

For you to succeed in your butchery business, start by keeping it clean, neat and organised. Provide all your workers with clean uniform, as clean as a doctor’s dust coat. Their uniforms don’t have to be dirty and stained just because they work in a butchery.

Always develop a good network and talk to people and other businesses such as hotels and restaurants around your butchery and ask if you can supply them with raw meat. You can also extend this network to those far away and open air markets and supply cooked meals to those in these markets. Such special orders can contribute a good portion of your daily profits if well managed.

Finally, to retain and keep your customers coming back, always get good quality meat, even if it means paying a little more for the supplies. Don’t just sell hard meat, especially to those buying raw to cook for themselves. Mix with some soft ones too. Competition is very stiff and if you give your customers a reason to go elsewhere, they will happily troop to your competitors without notice.

Also don`t forget to join our training on Business Marketing. We only have 4 days remaining.

We have created a WhatsApp group called *BUSINESS MARKETING TRAINING*

In this group we are going to train and teach you for 21 days brilliant marketing strategies that can make your business more profitable.

Goods and services you are selling are like the body of a car while marketing is the engine that drives the car. Sometimes a car with a bad “body”, but a good engine will outrun a car with a good “body” but a poor engine.

In today`s business world, having a good product will not make you rich. You need to have great marketing skills

In our *BUSINESS MARKETING TRAINING* Whatsapp Group, we will also have discussions, questions and answers sessions.

The training will start on Wednesday, 24th May 2023.

We have prepared a program or schedule on how our Training will be conducted.

Our Business Marketing training will take 21 days (Monday to Friday, excluding weekends)

We will be educating/teaching you from 9.am to 2.pm by posting articles, images, PDF documents and videos. And from 2.pm to 7.pm the group will be open for discussions, questions and answers.

*NOTE*: The training won't affect your daily schedules. You can access all the information posted in the training group at your own free time.

Also our training will be on weekdays only, Monday to Friday, excluding weekends so that those who will be busy during the weekdays can catch up with our training over the weekend.

Below is a schedule of what will be learnt on each day of our training.

DAY 1: Introduction to Marketing

DAY 2: Understand the Importance of Marketing to the Success of your Business

DAY 3: How to Use the Right Message to Sell Anything

DAY 4: Smart Marketing Strategies for African Entrepreneurs

DAY 5: The 7 Marketing-Mix and how they can help grow your Business

DAY 6: Proven Pricing Strategies (How to Price Your Products/Services for Great Profit)

DAY 7: Cheap and Interesting Ways to Attract More Customers to Your Business

DAY 8: Word of Mouth marketing (How to Advertise Your Business for Free with this Marketing Strategy)

DAY 9: Branding your Business (How to Create a Unique Identity of your Business in the Minds of a Target Market Audience through Name, Sign, Logo, Stamp and Design)

DAY 10: Market Segmentation (A Marketing Strategy Successful Businesses and Companies use)

DAY 11: Market Positioning (A Marketing Strategy that can help you Sell Your Products Fast)

DAY 12: Network Marketing (How Africans can exploit this amazing Business Opportunity)

DAY 13: Advertising and its Techniques to Sell Your Products Fast

DAY 14: How to Use the Amazing Power of Social Networking

DAY 15: How to Use the Amazing Power of Classified Ad sites in Kenya

DAY 16: How to tap into Influencer Marketing for Your Business

DAY 17: Powerful Ways to Win More Customers from Your Competition

DAY 18: Types of Customers (And How to successfully handle difficult Customers and Probably Change them)

DAY 19: How to Make your Customers Love your Business and keep Buying again and again from your Business.

DAY 20: Experiencing Low Sales? Reasons Why Customers are Not Buying from You and what you can do about it for Better Results.

DAY 21: Conclusion of our Training.


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