Business Plan For A Meat Processing Firm

BUSINESS PLAN
FOR A
MEAT PROCESSING FIRM
IN THE
KUMASI METROPOLIS
(A CASE STUDY AT THE K.N.U.S.T. MEAT PROCESSING UNIT)
GROUP MEMBERS
BONSU, Sandra Akyeamaa (3206309)
TAYLOR, Benjamin (3210109)
SARFO, Jacob (3209809)
SARFO, Abraham (3209709)
SUALIHU, Basiru Mohammed (3209909)
APRIL 2013.
Page | 1
CONTENTS
INTRODUCTION .................................................................................................................................. 4
1.1 BACKGROUND ................................................................................................................. 4
1.2 PROBLEM STATEMENT ................................................................................................ 6
1.3 RESEARCH QUESTIONS ................................................................................................ 7
1.4 OBJECTIVES OF THE STUDY ....................................................................................... 8
1.5 JUSTIFICATION ............................................................................................................... 8
LITERATURE REVIEW ....................................................................................................................... 9
2.1 MEAT PROCESSING AROUND THE WORLD ........................................................... 9
2.1.1 ORIGIN......................................................................................................................... 9
2.1.2 TRENDS IN DEVELOPMENT ................................................................................... 9
2.2 TRENDS IN AFRICA ...................................................................................................... 11
2.2.1 TREND IN GHANA ................................................................................................... 13
2.2.2 THE ANIMAL INDUSTRY IN GHANA .................................................................. 14
METHODOLOGY ............................................................................................................................... 17
3.1 STUDY AREA AND POPULATION ............................................................................. 17
3.2 SAMPLING [Size & Technique(s)] ................................................................................. 17
3.3 DATA COLLECTION ..................................................................................................... 17
3.3.1 TYPE AND SOURCE OF DATA .............................................................................. 18
3.3.2 STUDY DESIGN ........................................................................................................ 18
3.3.3 DATA COLLECTION APPROACH ......................................................................... 19
3.4 DATA ANALYSIS ............................................................................................................ 19
RESULTS AND FINDINGS ................................................................................................................ 20
4.1 DESCRIPTION OF BUSINESS ...................................................................................... 20
4.1.1 VISION ....................................................................................................................... 20
4.1.2 MISSION .................................................................................................................... 20
4.1.3 OBJECTIVES ............................................................................................................. 20
4.1.4 DESCRIPTION ........................................................................................................... 21
4.2 PRODUCTS AND SERVICES ........................................................................................ 25
4.3 BUSINESS’ CONSUMERS ............................................................................................. 26
4.4 INDUSTRIAL ANALYSES ............................................................................................. 27
4.4.1 OVERVIEW ............................................................................................................... 27
Page | 2
4.4.2 POLITICAL ANALYSIS ........................................................................................... 28
4.4.5 SOCIAL ANALYSIS ................................................................................................. 30
4.4.3 TECHNOLOGICAL ANALYSIS .............................................................................. 30
4.4.6 FACTORS AFFECTING DEMAND AND GROWTH PROSPECTS ...................... 31
4.5.1 BACON ......................................................................................................................... 32
4.5.2 SAUSAGE .................................................................................................................. 33
4.5.3 HAM ........................................................................................................................... 39
4.5.4 MEAT LOAF .............................................................................................................. 40
4.5.5 PRODUCTION FORECAST ..................................................................................... 42
REFERENCES ..................................................................................................................................... 65
Page | 3
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND
A processed meat is a product in which properties of fresh meat have been modified using one
or more procedures such as grinding, chopping, addition of seasonings, alteration of colour or
heat treatment. Some processed meats are sausages, bacon and meat loaves. Meat processing
contributes to preservation, convenience, appearance, palatability, and safety, and provides
consumers a wide variety (choice) of meat products. To the manufacturer, processing meat is
a way of value addition to otherwise low grade quality meats that have reduced premium and
value and contributes little to overall profits. It is also an effective way of extending the shelf
life of products in order to satisfy consumer demands over a long time.
Meat processing industries do not only add value and extend the shelf –life of the meat product
but also contribute to:
 Effective quality control.
 Producing high quality but cheaper meat and meat products locally.
 Effective utilization of meat resources including nearly all edible parts to serve as food
for human consumption.
 Contribute to food security by making food available at times when it would not
otherwise be available.
The meat industry plays a crucial role in the economies of many countries, including Ghana by
 providing protein needs,
 generating employment and income,
 Saving and or generating foreign exchange.
Page | 4
In order to function and perform creditably, any meat industry requires a vibrant and
sustainable livestock (and poultry) sub-sector, in addition to appropriate technology, human
resources and equipment and a stable economy. Traditionally, meat processing all over the
world involved salting, drying and smoking in order to preserve surplus products for future
use. With the advent of improved technology, and research the art has changed over the years
to add value to meat, provide variety, enhance juiciness, affect textural and flavor
characteristics, provide convenience, improve quality and provide safety to the consumer.
The establishment of modern meat processing in Ghana dates back to the middle of 1960 when
the first factory was commissioned at Bolgatanga by the state to process and sell sausages,
bacon, ham etc. to consumers in the country. The University of Ghana also established a meat
processing unit in mid-1960’s and during the early part of 1970 other meat factories were
established in Accra and Kumasi. In the later part of 1980 the FAO in collaboration with the
Kwame Nkrumah University of Science and Technology established a small scale Meat
Processing Unit. However, a firm like the Bolgatanga meat processing has collapsed due to
lack of adequate maintenance culture,inadequate planning in both the initial and management
stages, untrained personnel and poor managerial practices (among other reasons).
In conclusion, the purpose of this business plan is to assess the feasibility and viability
of a meat processing in the Kumasi Metropolis with regard to the KNUST meat processing
unit.
Page | 5
1.2 PROBLEM STATEMENT
Processing of meat comes with much importance to all stakeholders involved. Some of such
importance is: the processing of meat helps to provide hygienic and much safer products to
consumers, it also make products more convenient to transport since the product becomes
handy after processing, processing of meat also add more value to the end product therefore
increasing the product competitiveness in the market, etc.
In an attempt for emerging meat processing companies to take advantage of these above
benefits and even more, they tend to lose focus of vital factors or issues necessary for the
viability of the meat processing business
Most people turn to invest into some businesses just because they think they have the resources
without doing deal diligence as to which products yield maximum returns.
Most producers produce just to meet demand in terms of quantity without taking into
consideration consumer specification such as their health by producing under unhygienic
environment. Consumers of modern times do not just take in anything but give much attention
to nutrition and consume food that do not pose any detrimental effect on their health. Also,
according to the UN Food and Agriculture Organization, Ghanaian imports of chicken meat
increased from 700mts (US$7million) in 1990 to 13,581mts (us$ 12 million) in 1999. Beef
imports increased from 4,668mts (US $5 million) in 1996 to 7,176mts (US$7.1million) in 1999.
This shows an inadequate production to meet demand.
At times, there is also inadequate knowledge of market and sale avenues available in the
industry. Meat processors are not able to explore existing market opportunities to meet
consumer demand. For example, with the case of the KNUST processing unit, the consumers
from beyond the university community have to travel from afar to purchase the unit’s products.
Page | 6
Knowledge of these sales avenues will help know the appropriate places for its sales outlet to
suit consumers’ convenience.
Improper computation of cost and incomes of the industry. Some producers make losses
without even knowing. This is because they operate without any business plan which spells out
proper record keeping procedures to help compute cost and revenue available in the industry.
Inadequate knowledge about the challenges and risk that exist both internally and externally
without the industry.A good business plan lay down or look into all the challenges and risk
exposed to the industry an d even put in stringent measures of how to curb such risks even
before the commencement of business activities.
Undefined levels of management and requisite personnel for execution of business activities.
As a result, it is important to prepare a business plan to address the above issues and to assess
the feasibility of the venture.
1.3 RESEARCH QUESTIONS
1. Will expansion of the unit be feasible?
2. Will expansion of the unit be financially viable?
3. What products currently exist in the industry?
4. What are the market and sales avenues available in the industry?
5. What are the production and the operations of the industry?
6. What are the costs and incomes of the industry?
7. What are the levels of management that exist in the industry?
8. What are the challenges and risks faced by the industry?
Page | 7
1.4 OBJECTIVES OF THE STUDY
The general objective of the study is to draw a business plan to cater for an existing meat
processing company in the Kumasi Metropolis to assess its feasibility. However, the following
objectives will aid in achieving the overall goal:
1. To evaluate the feasibility of expanding the unit.
2. To examine the financial viability of expanding the unit
3. To determine the products that currently exists in the industry.
4. To analyze the marketand sales avenues available of the industry.
5. To examine the productions and operations of the industry.
6. To ascertain the costs and incomes of the industry.
7. To evaluate the challenges and risks faced by the industry.
8. To determine the Management levels that exists within the industry.
1.5 JUSTIFICATION
 The business plan will help determine whether meat processing is a feasible venture
to operate in the Kumasi Metropolis.
 It will help attract investors into the industry.
 It will serve as an operating guide for the management of the company.
 It can be used to arrange for strategic alliances and obtain contracts.
 It will help contribute to academic knowledge.
Page | 8
CHAPTER 2
LITERATURE REVIEW
2.1 MEAT PROCESSING AROUND THE WORLD
2.1.1 ORIGIN
The evolution of meat processing can be traced back to the era of pre-neolithic man possibly
some 250,000 years ago when man’s main occupation was hunting and he roasted a meat from
hunted animals to improve its flavor and taste (Stewart and Amerine, 1981). Salting, Drying
and later sausage production had their birth in the bronze age i.e. from 3500 B.C (Stewart and
Amerine, 1982). By the year 1000 B.C. (Jessen, 1949) salted and smoked meats were available.
2.1.2 TRENDS IN DEVELOPMENT
The increasing pressure of world population and the need to raise living standard, has increase
the quality and quantity of meat, its effective processing and its’ preservation an important
issues (Lawrie, 1985). In the temperate countries processing techniques were developed over
generations to allow food (including meat) to be stored throughout winter months.
Large scale production of processed food in factories begun in the 19th century with the
development of mechanical equipment to reduce the time and labour involved in the
manufacturing methods (Fellows, 1988).
Meat processing technologies have greatly benefited from recent research and development in
food processing techniques, equipment design and computer based automation (ILO, 1985).
Numerous specialized machines have been designed for the manufacture of a very large
number of different types of meat products to meet the taste and custom of people living in the
Page | 9
different localities (Pyke, 1981). These machines (Pyke, 1981) include grinders, cutters,
choppers, and disintegrators capable of producing complete homogenization of meat, machines
for filling sausages, pressers, vacuum packers, electric smoking chambers, diverse kind of
ovens and many others. Yao-Haum (1991), reported a turnout of 550 tons of meat products in
an 8-hour shift in China by using these modern machinery.
Various techniques have also been developed to accelerate meat processing. Tumbling and
massaging were developed in the 1960’s (Lawrie, 1985) to improve the curing process of ham
making. Holmes (1960) reported the processing of bacon in the form of slices of 2-8mm
thickness which shortens the whole processing time to a day instead of the conventional 10-21
days. Computerized massaging of meat and the use of liquid nitrogen (Xargayo and Lagares,
1992) as well as the use of liquid smoke (Lawrie, 1985) are some of the new innovations in the
meat processing.
With increasing health conscious eating habit in the industrialized countries where coronary
heart disease and other “disease of affluence” (high blood pressure, diabetes, gout) are
common, the current trend is towards the consumption of less meat and meat products (FAO,
1992). This is to reduce the intake of saturated fatty acid, sodium and residual drugs used in
the production and treatment of animals since these have been implicated to be the causes of
some these diseases (Wirth, 1991 and FAO, 1992). This has given the impetus to the production
of products of low fat, low sodium content (Wirth, 1991) or synthetic products. Jassen and
others (1994) indicated that the addition of non-meat proteins to meat products is nowadays
generally accepted and legally permitted in most advanced countries but stringent labeling
requirements are imposed on such products to specify the type and quantity of “filler” meat. In
the U.S.A., the extraction of plants proteins from wheat, groundnut, yeast and soya bean to
either stimulate meat or produce synthetic “meat” products labeled as “ham”, “beef”, “pork”
and “ bacon” are an innovation designed to satisfy public demand (Sjonströn, 1962).
Page | 10
2.2 TRENDS IN AFRICA
Meat processing in Africa is dominated by traditional methods which had their roots from the
pre-historic era. Martin and Donald (1965) indicated that the production of Egyptian butchers’
sausage using meat adhering to bones, trimmings and different tissues was an art since ancient
Egyptian days. Most African countries practice traditional methods of meat processing (drying,
salting and smoking) out of necessity since surplus meat which cannot be consumed
immediately has to be preserved in some form for future use (FAO, 1993).
The main products of these traditional methods are variaties of dried and /or smoked meat
which vary from region to region and country to coutry. FAO (1990, 1993) documented some
of these dried stripes of meat products and their source as follows: Banda, Kilishi, Suya and
Tsire from West Africa (especially Nigeria); Shermot, Klioh, Pastirma, Basterma, Nanitete and
Miris from North Africa (Egypt and Sudan);Qwanta, Odka, Aliya, Solay and NyamaChoma,
from East Africa (Ethiopia and Kenya) and Biltong, Umhwabha, Chimkuyu and Kumbis from
Southern Africa.
Commercial production of some of these products is currently in progress in some African
countries. “Biltong” being marketed as a snack food item in Zimbabwe, Namibia and South
Africa (Essof, 1993).Igene (1993) reported that traditional meat processing has become a
business enterprise in Nigeria to satisfy the needs of consumers who desire processed products
for specified culinary needs and for the purpose of meeting market demand for distant
consumers who lack storage facilities.
In many African countries the commercial processing of meat using modern technologies and
machinery is minimal. Nassel (1992, 1993) indicated that modern meet processing in countries
such as Sierra Leone, Togo, Nigeria, Coted’Ivore, Gambia, Uganda, Zambia, Tanzania and
Page | 11
Ghana is either uncommon or rudimentary. He advanced reasons like lack of market and
acceptance of variety meats, lack of quality fresh meat on regular basis for processing, shortage
of trained personnel (slaughterers, meat inspectors etc.), lack of processing facilities and other
associated infrastructure as accounting for the low level or absence of meat processing. Ann
(1993) indicated that there is a great demand for meat products in Gambia because of her
buoyant tourist industry. However the absence of local processing firms favoured mass
importation of these products. Mozambique is also reported to have been importing large
quantities of meat and meat products to satisfy her urban demand due to absence of locally
produced meat products (Rodriguez, 1993).
The most popular form of large scale modern meat processing activity in some African
countries is the canning of beef for home consumption and export. Hill (1988) listed Kenya,
Tunisia, Ghana, Botswana, Swaziland, Zimbabwe and Madagascar as countries where large
scale corned beef factories were established in the 1960’s but most have become stagnant or
ceased operating because of the problems hindering meat processing in Africa as elaborated
earlier. However, recent reports by Leventis (1993) indicated that multi-national companies
(e.g. A.G. Adventis and U.T.C.) and expatriates have establishe modern facilities meeting
international hygienic standards for the processing of variaties of sausages, bacon, ham,
delicatessen food as well as choice meat cut in Cote d’Ivore, Nigeria, Zambia and other
countries. Essof (1993) also mentioned that there is Colcom Co-operative (Pvt) Ltd, a major
large scale pork processor in Zimbabwe, and cold starage meat commissions in Zimbabwe and
Botswana for large scale export of bornless beef to Europe.
Page | 12
2.2.1 TREND IN GHANA
In Ghana, as in most African countries, traditional methods such as drying, salting and smoking
of meat have been practice for several generations and are still being practiced mostly in the
rural areas in the absence of refrigerating facilities.
The establishment of meat processing in Ghana dates back to 1960’s. The Bolgatanga meat
factory (later called GIHOC Meat Products Factory) was commissioned in November, 1965 to
produce and sell meat products such as sausages, bacon, ham, luncheon meats etc. Around the
same time the UAC pig processing plant in Accra known as “Ice Company” with a capacity of
100 carcasses per week and Toro (Ghana) Ltd at Tudu, Accra (which was taken over by
Continental Meat Company in 1971) were operating. Other private meat companies like
Premium Meat Packers Ltd which later became known as Pioneer Meat Industries Ltd, was
commissioned in 1970 and Mayfair Groceries started operation in Kumasi concurrently. The
department of Animal Science, University of Ghana, Legon established a meat processing unit
in 1966. Most of these factories collapsed while others became stagnant between 1974 and
1981 due mainly to the decreased economic performance of the country and the resultant
decrease in per capita income (UNDP/TTC, 1990).
Some research work has been done locally to enhance meat processing in the country. Barnes
(1993) reported that the shelf life of ham and bacon without refrigeration could be about 6 and
7 days respectively after 72 hours smoking. The uses of soya bean and fish (Anchovies) as
meat extenders in fresh, smoked and cooked sausages were experimented on at the Animal
Science Department, U.S.T., Kumasi and optimum levels of inclusion were recommended.
Soaked soya bean or soya bean paste up to 20% can be included in fresh and smoked sausages
(Nessel and Okai, 1991). Anang (1993) indicated that 19% and 24% of fish can be included in
smoked and fresh sausages respectively. The Meat Processing Unit and the Agricultural
Engineering Department at U.S.T. also have designed and manufactured appropriate
Page | 13
equipment such as a hand-operated filler with a capacity of 80kg sausages per hour, dehairing
crates and hoisting winch which can enhance small scale meat handling and processing. The
Unit has also designed and built an ideal, low cost smoking chamber and with old roofing
sheets. Improved drying of meat by using solar dryers has been studied at the Food Research
Institute of Ghana.
2.2.2 THE ANIMAL INDUSTRY IN GHANA
The livestock sector plays a crucial role in the economies of many developing nations by
producing protein-rich food, generateing vital income and employment, and earning foreign
exchange. For many farmers in Ghana and other developing countries, farm animals are a form
of stored wealth, a cushion against starvation when food is scarce, a source of fertilizer or fuel,
a means of transport and for some species a source of traction in crop production (Umali, et al.
1994).
The livestock sub-sector is dominated by small scale operators who are mainly crop farmers
keeping livestock to supplement their incomes and/or for security purposes. There are few well-
organized commercial poultry and pig operations.
Livestock population statistics are generally poor in Ghana as there has been no livestock
census for several decades. MOFA has been relying on projections, which do not accurately
portray the livestock situation. There has not been any consistent monitoring of the livestock
population since the last census and the projections are not based on any monitoring
information. There is urgent need for a comprehensive livestock census and the institution of a
livestock monitoring system thereafter to ensure that credible information on livestock is
available continuously.
Page | 14
According to available data, total domestic meat production increased from about 77,235
metric tons in 2003 to 101,895 metric tons in 2008 (Table 4a). That is about 132% increase
over the period. Poultry contributed the greatest proportion of total domestic meat production
followed by beef.
TABLE 1. Domestic Meat Production: 2003-2008

(Metric Tons)
Domestic meat production
Livestock/year % by
2003 2004 2005 2006 2007 2008 type
CATTLE 18,486 18,686 18,874 19,140 19,346 19,553 21.7
SHEEP 13,568 14,004 14,450 14,913 15,390 15,831 16.7
GOATS 13,884 15,308 15,300 15,588 16,364 17,180 17.8
PIGS 10,181 9,979 9,744 16,027 16,498 17,002 15.1
POULTRY 21,116 22,982 22,709 27,224 29,630 32,249 29.6
Total 77,235 80,959 76,582 92,893 97,229 101,895 100.0
Source: MOFA (SRID), 2009 and Computations from livestock production data.
The country’s inability to be self-sufficient in meat production indicates that the domestic
livestock industry is not fully developed. It supplies just about 20% of the national meat
requirement (LPIU, 1993).
Available statistics shows that a high percentage of cattle slaughtered annually are imported
from the northern Sahelian countries in the West African sub-region.
Page | 15
TABLE 2 MEAT IMPORTS INTO GHANA: 2003-2008
Meat imports (Mt)
2003 2004 2005 2006 2007 2008
CATTLE 1,112 2,587 6,332 10,586 16,250 13,135
SHEEP 2,122 2,053 3,640 4,839 6,887 5,961
GOATS - - - - - -
PIGS 9,882 7,756 10,287 13291 10,552 5,487
POULTRY 32,939 39,089 40,591 44,758 63,276 87,889
Source: MOFA, VSD.
Total meat available for domestic consumption in Ghana as at 2008 (domestic production and
imports) amounted to 189,784 metric tons, while FAO’s recommended level for the whole
population is 285,430 metric tons/year. This leaves a deficit of 95,646 metric tonnes. Pragmatic
efforts are therefore needed to bridge this gap by increasing meat production and consumption.
Page | 16
CHAPTER 3
METHODOLOGY
3.1 STUDY AREA AND POPULATION
The study area will be the Ashanti Region specifically the Kumasi metropolis. It
has a population of 2,035,064(Ghana Statistical Service, 2010). It is located in the
Rain Forest Region and is approximately 300miles (480km) north of the Equator
and 100miles(160km) north of Gulf of Guinea with an area of 254km²(98 sq mi).
Kumasi has trading as its main economic activity with kaase as its industrial area.
3.2 SAMPLING [Size & Technique(s)]
KNUST meat processing unit together with the three registered meat processing
firms with the food and drugs within the Kumasi Metropolis namely: Halal Meat
Products, Santinos Fine meat and sausages Limited and Speedway Groceries in
addition to 50 consumers will be our sample size to aid in our research. Random
sampling technique will be employed in selecting the sample size for the consumers.
This will enable us get enough information to answer the research questions and
achieve the research objectives.
3.3 DATA COLLECTION
Page | 17
3.3.1 TYPE AND SOURCE OF DATA
For a clearer understanding of this study, two main types of data namely; primary
and secondary data will be employed for the purposes of research.
Primary data will be sourced from the KNUST meat processing unit and the three
mentioned registered firms within the Kumasi metropolis.ConsumersfromKNUST
and its environs will be used.
Secondary data will also be sourced from journals, published thesis, the internet,
production, sales and industry statistics from the KNUST meat processing unit and
three registered firms within the Kumasi metropolis.
3.3.2 STUDY DESIGN
Open and close ended questionnaires will be used to acquire information under which
the questionnaire will be grouped into seven parts thus;
The first part will include the personal data of the respondent, followed by the second
part will include the products that currently exist in the industry.
The third part will involve the market and sales avenues available in the industry and
the forth part will help us to ascertain the production and operations of the industry.
The fifth part will include the cost and income of the industry while the sixth parts
include the challenges and risks face by the industry and final part will also help us
know the management levels of the industry.
Page | 18
3.3.3 DATA COLLECTION APPROACH
Face to face interviews will be used to administer the questionnaires; the
administering will be done during the working hour, that’s either morning or
afternoon in their various offices where critical observations and discussions can be
made.
3.4 DATA ANALYSIS
 Descriptive tool such as graphs will be used to monitor the trend of sales in the
industry.
 A flow chart will be drawn to depict the various stages of operations and
productions of the industry.
 Income and expenditure account will be used to analyse the cost and income
available within the industry.
 Trading Profit and Loss account will also be to assess the profitability or
otherwise of the industry.
 Cost benefit analysis will be used to determine the viability of the expansion of
the unit.
 The S.W.O.T analysis will be used to determine the challenges and the risks
within the industry as well as the opportunities that can be explored.
 An organizational chat will be drawn to highlight the various management levels.
 Internal rate of returns will help investors know their returns on investment in case
they want to invest.
Page | 19
CHAPTER 4
RESULTS AND FINDINGS
4.1 DESCRIPTION OF BUSINESS
4.1.1 VISION
The vision of the unit is to be the leader in research center for meat processing as well as a
reliable and profitable commercial center.
4.1.2 MISSION
The mission statement of the unit is to provide instruction, conduct research and extend
knowledge and technology in meat processing and providing consumers with hygienic and
quality meat products in the country and also in the international market at large.
4.1.3 OBJECTIVES
Short Term Objectives
1. To equip students with the needed techniques in processing meat.
2. To assist in research work.
3. To broaden students’ knowledge on the whole scope of processing meat.
4. To provide readily available hygienic meat products to the KNUST community and its
environs.
5. To increase its current production scale from 61 tons to 1 metric ton per year
Page | 20
Long Term Objectives
1. To enable the KNUST meat processing unit become one of the leading if not the best
meat processing center for research work in the country.
2. To become the leading meat processing firm, providing meat products to consumers in
the Ashanti region and the country at large.
3. To increase its current production scale from 1 metric ton– 10 metric ton per year.
4.1.4 DESCRIPTION
The KNUST meat processing unit is a manufacturing unit that seeks to conduct research,
produce and process meat products. The current status of the unit is mainly for conducting
research and selling of the end products after the research.
It is currently located on a 40 hectare plot of land at the animal science department of KNUST.
Legally, the unit is under the jurisdiction of KNUST as an institution and so all legal affairs
pertaining to it are done under the authority of the university.
5.1 ORGANISATIONAL/MANAGEMENT PLAN
The management plan will give an extensive hierarchy of authority at the unit as well as the
description of each and every person’s duties and responsibilities. The management of the
unit will be done by
 Board of Trustees
 Head of the unit
 Administration/Finance head
Page | 21
 Production and Quality assurance head
 Marketing and sales head
 Employees
This is represented in the organogram below:
FIGURE 1.
Board of Trustees
Head of Unit
Administration/Finance Production and Quality Marketing and Sales

Head Assurance Head Head
Employees
5.1.2 THE BOARD OF TRUSTEES
They will be responsible for issuing of policies and providing directions to the head of the
unit as to how things should go. The board will make up of 5 people consisting of:
 The Head of Dean of Agriculture Faculty
 The Head of the Animal Science department
 The Head of the Meat Processing Unit
 One Senior Member from the Livestock Section
Page | 22
 One Senior Member from the Poultry section
5.1.3 THE HEAD OF UNIT (MEAT PROCESSING)
The head will be responsible for managing the day-to-day affairs of the unit. He will be
required to implement whatever decision or policies directed to him as well as providing
annual report to the board of trustees. The head will also coordinate the activities of the
functional heads of the unit. Another duty that will be required of him is to assist in research
works.
The head of the unit will be the teaching staff of the department who has specialized or
specializes in meat processing.
5.1.4 ADMINISTRATION/ FINANCE HEAD
He/ She will see to the preparation of all financial accounts and the administration of the unit.
The head will be required to report all accounts and other reports prepared to the head of the
unit. He or she will be required to provide relevant information to auditors as and when
necessary.
The head of this section will be from the accounts department of the faculty or the college.
5.1.5 PRODUCTION AND QUALITY ASSURANCE HEAD
The head of this section is responsible for the production of the various products undertaken
by the units as well as ensuring the safety and quality of the products for human consumption.
It will also be the responsibility of the head to ensure Good Manufacturing Practices (GMP),
Page | 23
Sanitation Standard Operating Practices (SSOP) and Hazard Analysis and Critical Control
Point (HACCP) of the various products. He/ She will be assisting students in their research
works as well as other duties assigned by the head of the unit.
Someone with requisite skills in meat processing will be employed to oversee this section.
5.1.6 MARKET AND SALES HEAD
The will have the responsibility of marketing and selling of the unit’s products. His sections
are responsible to undertake at least quarterly market research to identify potential markets and
consumers as well as gather grievances expressed by existing consumers. He will also be
involved in good advertising strategies to help publicize the unit’s products.
5.1.6 EMPLOYEES
Employees are the workers under the various functional heads who will be responsible for
executing the various tasks assigned to them by their heads. Aside the official tasks they are to
perform, they are supposed to take directive from their various heads and other works that may
deem necessary by their heads in connection to achieving the goals and objectives of the unit.
The table below shows the various Departments, their functions and number of employees
expected to be under each department.
TABLE 3. GENERAL OVERVIEW OF DEPARTMENTS
Page | 24
DEPARTMENT FUNCTIONS NUMBER OF EMPLOYEES
Preparation of necessary
Administration/ Finance accounts and administration Two (2)
Production of the various

products taken into
Production and Quality
consideration the safety and Ten (10)
Assurance
quality of the products for
human consumption
Marketing and selling of the
units output as well as
Marketing/ Sales Six (6)
conducting quarterly market
research.
A total of nineteen employees will be required initially but may increase as and when
production and unit expands.
5.2 TRAINING AND DEVELOPMENT
The production staff will be trained and developed to get abreast of all the needed skills
required for production as and when necessary.
Education and training will also be provided for the other staff that fits their area of work or
specialization. All these will be done in line with the goals and objectives of the unit.
4.2 PRODUCTS AND SERVICES
The KNUST meat processing unit exists to produce and sell fresh and processed meat made
from beef, pork, chevon and chicken. They have in stock the following;
 Sausages (smoked pork sausages, Beef frankfurter, pork frankfurter, chicken
frankfurter)
 Minced Beef and Pork
Page | 25
 Ham
 Fresh Pork, Beef and Chevon
 Meat Loaf (Beef and Pork)
 Bacon
Majority of the unit’s products are from beef since that forms the largest of the unit’s resource.
The preference of the firm’s products by their consumers basically has to do with the fact that,
there are no non-meat ingredients such as floor, gari etc. added to the products when producing
as done by some competitors to increase the size of their products to the detriment of their
consumers.
The products produced by the unit are well inspected and passes through all necessary
regulations spelt out by the Food and Drugs Authority (FDA) to help provide a more authentic
and safe products for consumption partly because of the unit’s main purpose of existence being
research.
4.3 BUSINESS’ CONSUMERS
The unit’s consumers are mainly the KNUST community and its neighboring environs. These
are mainly made up of lecturers and staff of the university, students as well as the citizens of
nearby townsaround the university’s premises such as Ayeduase, Kotei, Deduako, Apiedu,
Emina, Boadi, Kentikrono, Oduom, Anwomaso, Ayigya, Bomso, Ahinsan, Oforikrom and so
on. Also, the firm has people coming from Accra, Tamale and some mining areas such as
Obuasi to purchase their products.
Consumers for the unit’s products ranges from the elite, rich and people who are more
conscious about their health and are very particular about the hygienic condition of the food
and meat they consume.
Page | 26
As a result of the increase awareness of processed meat the influx of foreign people due to
the oil exploration and increase in population we expect to capture these group of people to
increase our consumer base. The unit intends to increase its consumer base through effective
publicity of its products to the potential consumers stated.
4.4 INDUSTRIAL ANALYSES
4.4.1 OVERVIEW
The meat processing industry is composed of several animal disassembling facilities which
slaughter, break down the animal body into smaller portions, and process the meat for
consumer consumption or further processing. This industry is also composed of several other
meat processing firms, which do not slaughter the animals but manufacture a wide range of
fresh or frozen products and sells for grocery chain stores, meat distributors, wholesalers,
restaurants and hotel chains, foodservice, and further processors as well. The further processors
of processed meat products are commonly named “specialized meat processors” and produce
cured, smoked, and cooked meat products such as sausage, ham, bacon and other prepared
products.
The meat industry is generally recognized as the most highly regulated of all food industries in
the world, (Daniel Hale, 1993). As of today, there are many regulatory agencies such as the
Food and drugs authority and the veterinary service inspectorate that are dedicated to the
inspection of meat processing facilities in order to ensure healthy and safe meat products. State
agencies are now required to check the entire meat processing operation – from prior-to-
slaughtering to labeling – including operational sanitation, carcass examination, blood tests and
organ examination. Meat retail expansion is reliant on distribution systems, affordable
Page | 27
transportation costs, urbanization, with subsequent construction of supermarkets, effective
disease control, and good slaughter facilities.
The current industry scenario includes a great deal of progress in terms of vertical integration,
advances in information technology, distribution systems, meat grading systems, packaging
technology, and boxed-meat cutting technology by meat processors. However, consumer
awareness and confidence levels have changed due to food safety and health food issues,
causing all business involved in the food supply chain to re-evaluate their marketing, quality
assurance and operating strategies. As a result, stringent monitoring from the public sector has
arisen to review current industry policies and procedures. P.E.S.T analysis would be used to
assess the Political, Economical, Social, Technological, Environmental and Legal aspects of
the industry.
4.4.2 POLITICAL ANALYSIS
The main role of the government is to guarantee high safety and hygiene of products served to
their citizens by different producers. Often, this involves enforcing strict product standards and
regulations, stimulating advanced demand, and protecting national production by imposing
high customs on imported products especially those of lower quality. It has been observed that
tax rates are in line with other sectors, whereas tax incentives exist for new investments and
start-ups only. This signifies the need to foster institutional innovation and encourage
performing Research and Development (R&D) by all governmental parties related to this
industry.
There are many parties involved, which makes the coordination of the sector difficult to
maintain. Key government stakeholders include: Ministry of Agriculture, Ministry of Trade
and Industry and Ministry of Health. Some duplication in authorities and responsibilities were
noticed. For example the Ministry of Agriculture and Food and Drugs Authority conduct
Page | 28
quality tests of processed meat, but there is no integration or communication between these
two authorities.
4.4.4 ECONOMIC ANALYSIS
Over the past few years, the economy of Ghana has been transformed with the private sector
being promoted as the engine of national growth. There has been significant growth in real
Gross Domestic Product (GDP) from 4% in 2009, to 7.7% in 2010 and 13.6% (provisionally)
in 2011 (Ministry of Finance, 2011), making Ghana one of the fastest growing economies in
the world in 2011. The Government of Ghana has pursued purposeful macroeconomic policies
that have yielded positive dividend in terms of ;
a) Sustained decrease in inflation to a single digit.
b) A relatively stable currency against the major trading currencies.
c) An improved budget deficit position.
This gives a solid basis for Ghana to optimize its potential as an emerging lower middle income
economy.
Cost also limits the consumption of livestock products. In spite of the increasing levels of
livestock production in most developing countries, the proportion of meat in the diet of the
average consumer remains rather low. This is mainly because the human population grows
almost as fast as that of livestock , but also because meat is scarce in many places and its cost
is comparatively high.
The meat processing industry is expected to hold on to its growing prospects because of the
population growth and increase in exports. Even though it will be facing threats from all five
competitive forces, which may cause even more reduction in profits in the years ahead, the
alliances and partnerships that have been formed should help maintain current profitability
Page | 29
levels and help improve quality of products. Vertical integration through contract agreements
is the key to assuring supply and quality, reducing price risk and marketing management, and
improving profit.
4.4.5 SOCIAL ANALYSIS
The most relevant socio-cultural force that has been causing some changes in the meat industry
is the consumer demographic change. Women at work, increased disposable income,
population growth among other ethnic groups, and single families have transformed the
cooking-at-home activities into a need-based activity rather than a recreational activity for the
families.
According to Mr. Nash Mohammed, Owner of Halal Meat processing company, easy-to-cook
products will be more in demand by the next generation and should impact processes, product
design, costs, and profitability in the meat industry. These value-added products will help
companies improve their profitability levels.
4.4.3 TECHNOLOGICAL ANALYSIS
Some technological changes will continue to occur as the meat processing industry transforms
itself into a highly integrated industry, as opposed to the independent market orientation
scenario that it has been in the past. One foreseeable change is the tracing-meat-back system,
in which carcasses are traced to its farm of origin, allowing meat packers to verify the animal
history from the beginning of his life in terms of production practices and medication.
This system will contribute to eliminating carcasses that may pose risk to consumers before
they are sent to processing, which will guarantee a more reliable product to consumers and, in
turn, augment consumer confidence. The use of automated equipment for slaughtering,
Page | 30
scalding, de-hairing or de-feathering, cutting, weighing and grading has brought about
significant improvements in productivity and levels of hygiene.
4.4.6 FACTORS AFFECTING DEMAND AND GROWTH PROSPECTS
Several factors are responsible for driving industry growth over years: changes in food process
technology has allowed for a greater choice of quality meat products available for consumption;
adoption of coordinated supply chains through the use of sophisticated information technology,
process technology, distribution technology, and inventory management allowing for more
efficient and flexible deliveries; expansion of foodservice and fast-food chains, due to more
eating-out, increased demand for chicken and beef product; demographic changes in population
in terms of age and marital status, due to more couples without kids and single people; increase
in disposable income, because of two salaries within the family; expansion of exports; price
stability; and industry consolidation.
Demand for meat products have also been influenced by the convenience, variety, prices and
services that the food retail firms have been offering to their customers. The meat industry in
Kumasi metropolis has been successful in applying supply chain coordination, through the use
of sophisticated information systems, to reduce procurement, inventory, processing, ordering,
distribution and transportation costs, bringing about additional price declines and demand
growth. Process technologies have been developed to allow for tracking back animals to their
original producer or farm while taking care of maximum hygiene, food safety and quality
standards. Because demand growth of meat products has been associated in part with industry
quality standards, the need for vertical integration and supply chain coordination should play
an important role within the beef and pork segments which have been constantly facing
consumer confidence problems.
Page | 31
Occasional swings in demand in the meat processing industry may happen due to seasonal
events such as Thanksgiving holidays, Christmas holiday and other social gatherings. In
general, though, demand for meat is practically stable, despite the increase in meat prices and
infectious disease breakouts.
Meat pricing is established mostly by market conditions where demand and supply dictate the
daily prices that are closely followed by producers, feedlot managers, packers, wholesalers and
retailers. Grading systems concerning quality and yield have been developed to differentiate
market prices paid for several different types of animals’ carcass..
Four major disruptive forces, which are also demand drivers, can dramatically affect the current
demand and growth prospects of the industry over the next few years: an infectious disease
outbreak, potential entrants, substitute products and government intervention on price.
There are other disruptive forces that may influence demand in the short term. For instance,
Ghanaians are giving more emphasis on nutrition and think that diet may influence the
likelihood of being exposed to diseases such as cancer and heart attacks. The increase in
consumption of fresh vegetables and fresh fruits has been the evidence of such a trend that
affects the consumption of meat not only in the Ghana but also in other countries.
4.5 PRODUCTION AND OPERATION PLAN
4.5.1 BACON
The word is derived from the Old High German bacho, meaning "buttock", "ham" or "side of
bacon", and cognate with the Old French bacon.
Page | 32
It is a cured meat prepared from a pig. It is first cured using large quantities of salt, either in a
brine or in a dry packing; the result is fresh bacon (also known as green bacon). Meat from
other animals, such as beef, chicken or goat may also be cut, cured, or otherwise prepared to
resemble bacon, and may even be referred to as "bacon". Fresh bacon may then be further dried
for weeks or months in cold air, or it may be boiled or smoked for our processing we will
consider all any of these methods depending on the situation.
Our Bacon will be prepared from several different cuts of meat which will be usually made
from side and back cuts of pork. The side cut has more meat and less fat than the belly. Also,
the unit will adopt its preparation from either of two distinct back cuts: fatback, which is almost
pure fat, and pork loin, which is very lean. Bacon-cured pork loin is known as back bacon.
Bacon is distinguished from salt pork and ham by differences in the brine (or dry packing).
Bacon brine has added curing ingredients, most notably sodium nitrite, and occasionally
sodium nitrate or potassium nitrate (saltpeter); sodium ascorbate or erythorbate are added to
accelerate curing and stabilize color. Flavorings such as brown sugar or maple are used for
some products. If used, sodium polyphosphates are added to improve sliceability and reduce
spattering when the bacon is pan fried.
4.5.2 SAUSAGE
The word “sausage” is derived from the Latin word “salsus”, which means salted, or preserved
by salting. Several categories of sausage products are typically consumed all over the world,
each with specific production processes and storage requirements. These categories include
fresh sausages, such as fresh pork sausages, cooked sausages, such as frankfurters, and dry
Page | 33
sausages, such as meat sticks. The unit shall consider the production of these differently
production of sausage to meet the demand of its consumers.
The main processes that will be used to produce Fresh Sausages is illustrated in the chart flow
below:
FIGURE 2.
Grinding of Meat
Ingredients
Addition of non-meat
Ingredients
Blending
Stuffing/Filling
Packaging
For all of the unit’s sausage production, these processes will be followed since all types of
sausage production follows the same procedure, but the only difference will be the particular
meat they will be used for the processing. Below extensively elaborates what will entail in
each of the processes listed above;
Grinding Meat Ingredients
Page | 34
The first step in sausage production that the unit will undertake is grinding the ingredients.
Grinding stage will help reduce the meat ingredients into small, uniformly sized particles.
Ground meat is the primary ingredient in a sausage formulation. The characteristics of the meat
ingredients used to create the sausage define the type of sausage - the overall taste, texture,
aroma, along with the protein and fat content of the unit’s products. A variety of raw meat
ingredients are utilized in the sausage production process. Each ingredient contributes a
specific property to the final sausage formulation. Meats must be clean, sound, and wholesome.
These products should be inspected when arriving at the facility, and just prior to use, to ensure
that they were not contaminated during transit or handling, and this will be duly done by the
Unit’s Safety and Quality Control team.
The specific meats that will be used in a sausage formulation will be correctly identified by
type and quantity. Prior to grinding, the meat will be held in cold storage. Although the Food
Code requires the meat to be held at 41°F or less, often processors prefer to chill the meat to
below 30°F to minimize the potential for fat smearing. The production team at the unit will
ensue that the grinder blades is sharp and matched with the grinding plate to ensure an efficient
grind without generating extra heat during the grinding process. Grinding processes will vary
according to the manufacturer and the nature of the product. Some sausage products use
coarsely ground meats; others use more finely ground meat ingredients. Grinding of the lean
and fat trimmings will be done separately, grinding the lean trimmings to a finer consistency
than the fat meats.
Adding Non-Meat Ingredients
The second stage of the unit’s sausage production procedure will be the addition of non-meat
ingredients. There are many non-meat ingredients that are essential to the sausage making
process. These non-meat ingredients stabilize the mixture, and add specific characteristics and
Page | 35
flavors to the final product. Ingredients that will be used in our fresh sausage include water,
salt, and antioxidants, along with traditional spices, seasonings, and flavorings. It is important
to note that the use of some non-meat ingredients is limited or prohibited. In fresh sausage, for
example, water is limited to 3% of the total weight, and binders and extenders such as dry milk
powder are limited to 3.5% of the total weight. Paprika (sweet red pepper) is a spice that is
considered both a flavoring and a colouring agent, because of its strong red color. For this
reason, paprika or oleoresin of paprika may not be used in any fresh meat product, except
products that it is traditionally expected in, such as Italian sausage and chorizo (a very spicy
sausage). The amount of non-meat ingredients, such as spices, will be determined by the overall
weight of the product mixture. Since the amounts of these ingredients must be carefully
controlled, and measuring very small amounts of numerous specific ingredients within a
manufacturing environment is often not practical, many manufacturers use a commercially pre-
measured and packaged mix of these ingredients.
Blending
Carefully controlled blending of the meat and non-meat ingredients will be ensured by the
production team of the unit to create the desired characteristics for a specific sausage
formulation. The meat and non-meat ingredients will be placed in a mixer and thoroughly
blended. The production team will monitor and control the blending process, since excessive
mixing can cause the salts in the formulation to break down excessive amounts of protein, or
friction created by the blending process can increase the product temperature and cause fats to
partially render.
Excessive handling also cuts protein fibers too short. All of these problems could result in
product quality defects and so must be well monitored by the production team head at the unit.
The blending process must also obtain a uniform distribution of any non-meat ingredients
Page | 36
within the product formulation. For example, flavorings, salts, and other ingredients must be
consistently mixed throughout a sausage formulation.
The Stuffing/Filling Process
After the blending is complete, the blended ingredients may be bulk packaged, or they may be
extruded into a casing. This process is called stuffing. Fresh sausages are typically stuffed into
natural animal casings. Natural casings used for the fresh sausage will be derived from the
small intestines of sheep. To create the natural casings, the casing processor or the production
team washes, scrapes, and treats the casings, grades the casings for size and condition, then
salts, packages, and ships the casings in brine or propylene glycol (for preservation) to the
sausage manufacturer. The unit may also stuff its Fresh sausages into a small diameter artificial
casing.
The stuffing process can be accomplished in a number of ways.
Natural casings are typically flushed with water, and the mixture is injected into the casing at
a pressure that is sufficient to fill the casing without leaving any air pockets, and without tearing
the casing. The stuffing process is also sometimes conducted at lower temperatures (<35-380F)
to minimize fat smearing on the casing. Smaller volume or specialty producers may stuff the
formulation into the casing by hand or from a screw feed. These small operations may also
bypass choppers, mixers, and stuffers, and stuff the output of the grinder directly into the
casing. For large production, an air or water-piston type automatic stuffers may be used. The
stuffed casings will then be separated into uniform segments of equal length in a process called
linking. These segments form the single sausage portions. The linking process is typically
accomplished by twisting the casing.
Packaging
Page | 37
The fresh sausage product will then be packaged for sale to the customer. The product may be
wrapped in a gas impermeable plastic, and placed into refrigerated storage or display. The
specific packaging will vary according to the needs of the unit’s consumers; however, hygienic
standards when packaging any sausage product will be followed to avoid contaminating the
product. Retail fresh sausage will however be tray packed.
These processes will be applicable to all meat they will be processed into sausages being it
beef, pork, or chicken. The production team will ensure that processes are well adhered to and
effectively executed to help add more value to the unit’s sausage and help make it more
competitive. However these processes may be adjusted to suit the current situation of the
market as well as the preference of consumers to help increase the unit’s market share.
Production Equipment
Grinders: Grinders are used to chop the meat ingredients into small pieces.
Blenders: Blenders use screw-like agitators to mix the solid ground meat mixture with any
additional non-meat ingredients to create a consistent distribution of all ingredients within the
formulation.
Bowl Cutters: Bowl Choppers (silent cutters) utilize a series of knives that chop and mix the
product formulation.
Stuffers/Fillers: Stuffers are used to extrude the sausage formulation into the casing.
Smokehouses: Smokehouses are heated drying rooms into which the manufacturer injects
smoke. The smoke adds specific flavors to the product, and helps dry and cure the product. The
smokehouse may also serve as a controlled thermal processing chamber, and is used to dry,
smoke, heat, cool, and add humidity to the product.
Page | 38
Recorders: Smokehouse recorders are devices that monitor and track the smoking duration for
each sausage production run. The smoking process must be carefully controlled to ensure a
consistent level of product quality.
Peelers: Peelers will be used to remove non-edible casings from sausage products during the
later stages of the production process.
Greenrooms/Drying Rooms: Greenrooms and drying rooms are used to cure and dry the
sausage product. In some cases, the environment is designed to support controlled, bacterially-
induced fermentation processes that are used to cure the product and impart special flavorings.
Coolers: Coolers use refrigeration to lower the temperature of the sausage product.
Packaging Equipment: The final sausage product is often packaged prior to sale. Packaging
typically consists of wrapping the product in plastic film. The packaging protects the product
from cross contamination, and helps to retard spoilage caused by contact with the air.
These equipment will however go through all the necessary maintenance regularly to help
enable them work effectively and efficiently for successful operation at the unit. They may also
be changed or adjusted to suit changing environmental situation as and when the need arises.
4.5.3 HAM
Our ham will be made in different shapes from a variety of meats such as pork, beef or chicken.
The types will be smoked hams, baked hams and hams cooked in water.
Equipment, Tools and Utensils
 Gas Stove
 Oven
 Bowls
 Cut wrapper for curing and packaging.
Page | 39
Process
 Meat preparation - cutting and trimming the ham.
 Curing/salting
 Rinsing and soaking
 Drying
 Stuffing/Netting
 Smoking
 Cooking
 Cooling
4.5.4 MEAT LOAF
The raw materials and equipment required in processing meat loaf are;
 Meat (Chicken, Beef or Pork)
 Spices (Garlic, Pepper, Ginger etc.)
 Bowl Cutter
 Meat mixer
 Oven
 Baking pans
Below is a flow chart of how meat loaf is prepared.
Page | 40
FIGURE 3.
Grinding of Meat
(using of bowl cutter)
Addition of spices
(using of meat mixer)
Filling them into baking

pans
Baking of meat
Removal to cool
Packaging
The first step to processing of meat loaf is to grind the meat whether chicken, beef, pork or a
combination of beef/pork, this is done with the aid of a bowl cutter.
The ground meat is added with spices like pepper, garlic, ginger and others that suit the taste
of consumers. The ground meat and the spices are mixed together using the meat mixer.
The next step is to fill into greased baking pans and bake them with the aid of an oven. The
baked meat is left to cool and later packaged as meat loaf.
This product can be produced in the end by ensuring all equipment needed to produce are
available as well as adhering all food safety measures needed to provide safe and quality
meat loaf to consumers.
Page | 41
4.5.5 PRODUCTION FORECAST
TABLE 4. Year 1 – Production Forecast
Number of Animals Carcass Weight Carcass Weight

PRODUCT
(Monthly) (Kg/Month) (Kg/Year)
Pork 54 2646 31752
Beef 7 1869 22428
Chicken 2890 1445 17340
Chevon 27 810 9720
The table below shows the distribution of products produced at the unit for the 1st year
projections with their respective proportion to their main raw materials
Page | 42
TABLE 5.
Carcass Weight
PRODUCTS
(Kg/Year)
Sausage (50%) 15876
Meat loaf (10%) 3175.2
Bacon (10%) 3175.2
Ham (10%) 3175.2
Pork cut (20%) 6350.4
Total Pork 31752
Sausage (50%) 11214
Minced meat (5%) 1121.4
Meat loaf (10%) 2242.8
Beef (35%) 7849.8
Total Beef 22428
Chicken Sausage (100%) 17340
Chevon (100%) 9720
The following pie chart were used to show the distribution of demand for each product.
FIGURE 4.
PORK
ham, 10%
bacon, 10%
meat loaf, 10% sausage, 50%
pork cut, 20%
sausage pork cut meat loaf bacon ham
Page | 43
FIGURE 5.
BEEF
meatcut, 35%
sausage, 50%
meat loaf,
10%
Minced meat, 5%
sausage Minced meat meat loaf meatcut
FIGURE 6.
total meat product
ham, 10%
bacon, 10%
meat loaf, 10% sausage, 50%
pork cut, 20%
sausage pork cut meat loaf bacon ham
In our second year, production will be increased by 50% across all the meat used for production.
We anticipate about 60 – 70% production increase for the third and fourth year operations on
Page | 44
the previous year’s production and a subsequent increase of 80 – 90% for the fifth year
depending on our performance in sales for the previous years.
Number of Animals Carcass Weight Carcass Weight

PRODUCT
Pork 81 3969 47628
Beef 11 2804 33642
Chicken 7153 2168 26010
Chevon 41 1215 14580
TABLE 7. Year 3 & 4 – Production Forecast
PRODUCT Number of Animals Carcass Weight Carcass Weight

Pork 134 6549 78586
Beef 18 4627 55509
Chicken 7153 3577 42917
Chevon 68 2005 24057
PRODUCT Number of Animals Carcass Weight Carcass Weight

Pork 248 5567 145384
Beef 33 8560 102692
Chicken 13233 6617 79396
Chevon 126 3709 44505
Page | 45
Our main source of animals for production will be from the livestock and poultry section of the
unit. However, if there is any inadequacy in supply, outsourcing will be done to supplement
our operation from any reliable farm such as Darko Farms, Akate Farms, Kumah Farms and
other local producers or raisers.
TABLE 9. Products Production Projections from Year 1-5 (Weight/kg)
Products/Year Year 1 Year 2 Year 3 Year 4 Year 5
Sausages 44430 66,645.00 109,964.25 181,441.01 335,665.87

Meat Loaf 5418 8,127.00 13,409.55 22,125.76 40,932.65
Minced Meat 1121.4 1,682.10 2,775.47 4,579.53 8,472.12
Bacon 3175.2 4,762.80 7,858.62 12,966.72 23,988.44
Ham 3175.2 4,762.80 7,858.62 12,966.72 23,988.44
Pork 6350.4 9,525.60 15,717.24 25,933.45 47,976.88
Beef 7849.8 11,774.70 19,428.26 32,056.63 59,304.76
By Products 35025.6 52,538.40 86,688.36 143,035.79 264,616.22
Chevon 9720 14,580.00 24,057.00 39,694.05 73,433.99
TOTAL 116265.6 174,398.40 287,757.37 474,799.66 878,379.37
FIGURE 7.
Production Scale from Year 1-5

1000000
900000
800000
700000
600000
500000
400000
300000
200000
100000
0
1 2 3 4 5
Year Production (kg)
Page | 46
ASSUMPTIONS
I. 50% of the pork will be used for producing sausages, 10% for bacon, 10% for ham,
10% for meat loaf and 20% as fresh pork cut.
II. 50% of the beef will be used for producing of sausages, 10% for meat loaf, 5% for
minced meat and 35% as fresh beef cut.
III. The chicken and chevon will be used to process sausages and as fresh goat cuts
respectively.
IV. Production for the second year will be a 50% increase of the 1st year’s output
V. Production for the 3rd year will be a 65% increase of the 2nd year’s output.
VI. Production for the 4th year will also be a 65% increase of the 3rd year’s output.
VII. Lastly production for the 5th year is expected to be 85% increase of the 4th year’s output.
5.1 MARKETING PLAN
Marketing is the process of devising an effective and most appropriate way of distributing
products or services. In other to ensure good marketing strategy, one needs to consider very
well all the opponents that make up the marketing mix. These components are the product,
price, promotion and place. The product has to do with bringing out the right product that suits
the needs of your target market.
Manufacturing something that helps satisfy the actual needs of consumers is a sure way of one
step to success as a firm. Pricing has to do with the costing of your products or services to make
it affordable to your consumers as well as aid in your firm’s profitability. Promotion tackles
the effective way of making your products known to your consumers and place as a component
Page | 47
of the marketing mix talks about the right channel of distributing your products or services to
make it convenient and accessible to both your present and potential consumers to help increase
your firm’s market share.
Current Situation
The current marketing strategy adopted by the unit is sending messages through mobile texting
and e-mails to consumers as and when there are products in stock. This is mostly done on
special occasions like during the festive seasons and also when school is on break. These
messages are actually mostly sent to only lecturers. Because of this the unit has lost most of its
consumers since some products preferred by consumers may be out of stock after they have
taken a long trip to the farm. This is due to poor marketing strategy adopted by the unit.
Consumers will begin to advice themselves if they keep coming to the farm and not always
getting well satisfied. The unit has lost a huge sum of its market share to other producers who
even use to visit the farm for production advice. Also the unit lacks adequate packaging
materials to package its products to help make it more attractive to its consumers. There are
also lack of accessible sales joins to market its products if it will want to spread its tentacles
from being only a research center but also profitable venture to help equip students with both
effective marketing strategies for processed meats and also as a good source of income
generation to the university and the nation as a whole.
With respect to packaging, the unit normally uses sheep or pig small intestines in the casing or
packing of sausages. This small intestines packaging is however a very limiting factor since
production will have to come to a halt whenever the unit runs out of the intestines any time
processing must be done when no animal has been slaughter for its intestines to be used.
Page | 48
5.2 MARKETING STRATEGY
5.2.1 PRODUCT
This business plan will help the unit to know the importance of conducting a good marketing
research if commercialization of its products will be considered. Also, a good marketing
research will help provide a more insight to the changing technologies in processing meat to
help broaden students’ knowledge and make them more equip for the job market and also to
aid in effective research work. Knowing the right products consumers really need is a good
start to determine a firm’s production strategy. Drawing a business plan will help identify some
of these products and the best way to market them. Some of the products and services the unit
is currently processing are Sausages, Minced Meat, Ham, Bacon, Meat Loaf etc.
5.2.2 PROMOTION
Packaging
The function of packaging is to surround or wrap meat products with suitable protective
material. Packaging materials were in the old day’s simple natural materials, e.g. leaves, but
nowadays exclusively manufactured materials such as paper or synthetic films.
Purpose of Packaging
For the purpose of effective packaging of the unit’s products, the following vigorously
researched details about the packaging of meat and meat products will effectively be taken into
consideration to help promote the efficient packaging of its output to the satisfaction of
consumers as well as the primary purpose of its research work.
The basic purpose of packaging is to protect meat and meat products from undesirable impacts
on quality including microbiological and physio-chemical alterations.
Page | 49
This business plan help throw more light on packaging procedure which results in an inner
package, where the packaging material is in direct contact with the product. In some cases it is
combined with an outer package often a cardboard boxes, or other materials.
There are various synthetic packaging films available for the inner packaging, e.g. transparent
or opaque, flexible or semi-rigid, gas proof or permeable to certain gases.
Requirements for Packaging Materials
A range of synthetic materials suitable for meat packaging are available mainly in the form of
plastic films or foils.
The unit will ensure that its packaging films have the following attributes:
 flexible
 mechanical strength
 light weight
 odourless
 hygienic (clean and toxicologically harmless)
 easy recycling
 resistance to hot and cold temperatures
 resistance to oil and fats
 good barrier properties against gases
 sealing capability
 low-cost
However, in the adoption of natural casing which is less costly and readily available as
compared to the other synthetic materials used for packaging sausages, the following principles
will be dully adhered to as a good packaging strategy for the unit’s output.
Page | 50
The adoption of good packaging aside the preservation of the unit’s products for commercial
purposes will educate students and researchers on the various alternatives of packaging
processed meat.
5.2.3 ADVERTISEMENT
This business plan will also help broaden it readers’ knowledge on the relevance of advertising.
To expand and develop the KNUST meat processing unit to make it more profitable in its
activities, there it the need to touch on the advertisement of the unit’s products.
Advertising channels like bill boards, broadcasting of its products through the university’s FM
station (Focus FM) and other FM stations in the country as well as the university’s website will
be used in publicizing the unit’s products to both its present and potential consumers of their
different products. We believe this advertisement will help the unit’s products increase its
market share, hence it’s profitable for effective management of the place and as a good source
of the university’s income and goodwill as the number one research center for meat processing
in the country and the world at large in the long run.
Place
This has to do with distributing products to the right outlets for easy accessibility of all
consumers. The unit happens to have only the sales point of the farm as the only outlet for
selling of its products. This is however a big challenge to the unit since it makes it difficult for
its consumers from far away to get access to their products resulting in losing some of their
customers to their competitors. As part of its development, the group has researched on some
of these sales outlets for the unit.
Page | 51
It is proposed that, there should be a distribution point at the commercial center of Kumasi
which is Adum where customers from far and near can access the unit’s products. Also, it will
be very expedient for the unit to widely distribute some of its products to popular and most
patronized super markets in the region and the country at large so that it will facilitate easy
accessibility of its products by both present and potential consumers.
Pricing
The KNUST Meat products and services are currently priced slightly below their competitors
in the metropolis. This is because KNUST competes not on price, but on flexibility, the quality
of services and products, and the availability of specialty, value added products.
We are however proposing that for profitability sake, the unit’s products will be sold using the
average of the current prices of our competitors’ products.
Below is the proposed average prices of our competitors’ products which will be used as our
selling price:
TABLE 8. Proposed Prices of our Products

Products Prices (GH₵/Kg)
Sausages 12.6
Meat Loaf 13.5
Minced 13
Bacon 14
Ham 20.5
Pork Cut 15
Beef Cut 14.30
Bye Products 3
Chevon 17.3
Page | 52
Sales Projections
We have estimated to sell 90% of production in Year 1 and 95% for the subsequent years till
Year 5. This is presented in the table below;
TABLE 9. Sales Projections from Year 1-5 (Weight/kg)

Products/Year Year 1 Year 2 Year 3 Year 4 Year 5
(kg) (kg) (kg) (kg) (kg)
Sausages 39,987.00 67,533.60 107,842.72 177,761.10 335,665.87
Meat Loaf 4,876.20 8,235.36 13,150.84 21,677.01 40,932.65
Minced Meat 1,009.26 1,704.53 2,721.92 4,486.65 8,472.12
Bacon 2,857.68 4,826.30 7,707.00 12,703.74 23,988.44
Ham 2,857.68 4,826.30 7,707.00 12,703.74 23,988.44
Pork 5,715.36 9,652.61 15,414.01 25,407.47 47,976.88
Beef 7,064.82 11,931.70 19,053.43 31,406.47 59,304.76
By Products 31,523.04 53,238.91 85,015.89 140,134.80 264,616.22
Chevon 8,748.00 14,774.40 23,592.87 38,888.99 73,433.99
TOTAL 104,639.04 176,723.71 282,205.69 465,169.96 878,379.37
FIGURE 8.
Projected Sales
1000000
800000
600000
400000
200000
0
1 2 3 4 5
Year Sales (kg)
Page | 53
ASSUMPTIONS
I. In the 1st year 90% of total production is expected to be sold.
II. 95% of the total stock available is also expected to be sold in the 2nd year and the
subsequent years till the 5th year.
6.1 FINANCIAL PLAN
SOURCES OF FUNDS
We will need a total Capital of GH₵1,223,160.66 comprising of GH₵1,135,380 for
Operational Costs and GH₵87,780.66 for Investments.
We intend to finance the Operational Cost with Equity from the University’s central accounts
and also finance the Investments with Debt/Loan from a financial institution.
Below is a pie chart representation of the capital structure.
FIGURE 9.
Capital Structure
7%
Equity
Debt/Loan
93%
Page | 54
We will start servicing the Debt/Loan Capital from the 2nd year to the 4th year at a current
bank interest rate of 26%.
ASSUMPTIONS
I. In the 2nd year 50% increase in the various cost of the 1st year is expected excluding
wages, insurance, advertisements and research costs.
II. For the 3rd year, 65% increase is expected on the cost of the 2nd year with insurance,
advertisement and research being same. A 15% increase in wages is also expected
within that year.
III. In the 4th year 65% increase is also expected on the 3rd year cost holding insurance,
advertisements, research and wages constant.
IV. For the 5th year 85% increase in the various cost of the 4th year is anticipated and a
15% increament in the wages is also expected holding the cost of insurance,
advertisement and research constant.
V. All things being equal prices for the various products and expenses are expected to be
constant for the 5 years projected.
VI. All things being equal the bank interest rate is expected to be constant from the 2nd
year to the 4th year.
VII. 20% depreciation will be charged on all fixed assets using the Reducing Balance
Method.
Page | 55
RISK MANAGEMENT
The Ghanaian meat processing industry is exposed to significant and varied risks, many
which could result in catastrophic losses and consequences for the industry as a whole. Risk
management has been a very effective tool to manage these risks on a macroeconomic level.
However, at the micro economic level, risk management standards vary considerably across
the industry.
Small meat processing retailers tend to have very high competition because of their
increasing numbers. Meat processors process animals from livestock producers within the
region. Processors compete with each other on price, speed of service, quality, and varying
sausage types. Also, due to many processors adopting forwards vertical integration, they tend
to establish their own retail outlets and prefer to sell in only those joints. In view of this, they
compete with local retailers in retail meat business. The line of work of meat processors is in
such a way that, there are seasonal variations in demand during festive seasons which tends to
affect the stability of sales. The work of the meat processing industry in Ghana is also
drastically affected by energy crisis due to the instability of electricity supply in the country,
taking into consideration the high use of electricity in its activities.
There are several risks facing the smooth flow of the meat industry supply chain which is
driving potential investor away which require immediate attention if one is considering
entering into such a venture. Below are areas of concern that possesses a lot of challenges to
the industry;
 Price and value addition

Price has been a major challenge in this industry. This is due to the fact that most
processors are concerned with value addition to be more competitive and continue to
stay in business. They tend to add certain necessary non-value added activities they
think are necessary to improve the end product which the consumers are not ready to
pay for. This results in very competitive prices for the industry.
 competition and quality

Stiffer competition and quality assurance problems have also triggered the risk level
in the industry such that, managing these two variables possesses problems since most
of our consumers in this country have the mentality that imported goods are more
quality than the ones produced there. They are always ready to purchase imported
Page | 56
meat products at a higher price than the locally manufactured products posing a very
high competition for the industry in this country.
 Life span of products

This is also a big problem to the industry since the products are highly perishable.
This account for the purchase of refrigerators and other preservatives to enhance its
shelf life. This tends to increase the cost of production and make this venture a high
capital required business.
 Health related issues

Most of consumers in the country are now very concerned with the health
implications of the food and meat they consume. This leads to excessive scrutiny of
the meat they purchase.
.
We are addressing these issues by dividing our company into two distinct part thus one
relating to our EXTERNAL EVIRONMENT and the other to our INTERNAL
EVIRONMENT so that we can devise a proper way of reducing these risks since this
division will help show us our STRENGHT, WEAKNESS, OPPORTUNITIES AND
THREAT (SWOT) that we are expose to.
Internally, the company current problem is devising a way to tackle the current power
fluctuations in the country, by instituting measures to help curb this situation. To address this,
the unit will purchase a stand-by generating plant to support our machines; especially our
fridges since a little delay in power supply will lead to damage of our product because of it
short shelf life.
Furthermore, there will be continuous training of employees and proper management
team to aid in the improvement of product quality and good customer satisfaction to help
increase our competitiveness in the market. Also to prevent any shortage in our raw materials
which will result in the delay in supply of our products, effective economic order quantity
measures will be adhered to. Proper records keeping and fist party audit by the university
auditors will curtail theft and malfeasance which may occur.
Externally, the company faces competition from other meat processing companies and cold
store operators who import cheap meat products from Brazil and America in to the country.
Page | 57
We intend using broad low cost and differentiation strategy and effective advertisement to
outlay information about our products to consumers. Effective management team will be
tasked to take timely decisions to meet changing economic and market changes that can
inhibit the profitability of the business. There will be also animal tracking system in our
processes to promptly identify any infectious animals and any defective raw material at
source. Periodic market surveys and research will be conducted to monitor sales growth of
our products, consumer preferences and uncover rivals who may use our company’s name to
produce similar products like ours for prosecution.
TABLE 1. SWOT ANALYSIS

INTERNAL EXTERNAL
STRENGTHS OPPORTUNITIES
 High quality specialty meat products  Increasing customer awareness
that have been recognized throughout about meat products coupled with
the country an enabling environment where
 High levels of customer service that regulatory agencies exist to monitor
local competitors do not provide compliance to statutory laws
 Periodic training and development towards consumer’s safety and
courses for employees. health.
 Strategic business location  Demographic changes in population
 Effective management team. in terms of age and marital status
 inventory management allowing for coupled with an increase in
more efficient and flexible deliveries disposable income.
 Reputable goodwill.
WEAKNESSES THREATS
 Limited current wholesale accounts.  Other meat processing firms and other
 Delay in decision making due to cold store venders who import from
bureaucracies that may occur within outside the country, will be competitors
the unit. for inspected slaughter and processing
 Instability of prices for meat products
due to seasonal variations in demand.
Page | 58
 Production of similar meat product of
poor quality by rivals.(imitation)
 The spread of infectious diseases like
swine flu will influence consumer’s
preference for meat products.
 Unreliable power supply.
OTHER MITIGATION MEASURES TO BE UNDERTAKEN.

The management team intend insuring the business against fire to ensure the smooth
flow of effective production. Periodic training and development given to employees
will keep them abreast modern techniques of reducing waste and risks associated with
production.
APPENDICES
Appendix 1 Projected Cash Flow Statements, Years 1, 2, 3

Appendix 2 Historical Financial Data
Page | 59
Page | 60
EXECUTIVE SUMMARY
Meat processing contributes to preservation, convenience, appearance, palatability, and safety,
and provides consumers a wide variety (choice) of meat products. To the manufacturer,
processing meat is a way of value addition to otherwise low grade quality meats that have
reduced premium and value and contributes little to overall profits. The meat industry plays a
crucial role in the economies of many countries, including Ghana by providing protein needs,
generating employment and income, Saving and or generating foreign exchange.
Objective of the study
The general objective is to draw a business plan to cater for KNUST meat processing Unit in
the Kumasi Metropolis to assess its feasibility, possible expansion and its profitability.
Justification of the study
The business plan will help determine whether the meat processing unit’s expansion is
feasible and profitable and also serve as an operating guide for the management of the unit.
Literature review
The increasing pressure of world population and the need to raise living standard, has
increase the quality and quantity of meat, its effective processing and its’ preservation an
important issues (Lawrie, 1985). Meat processing technologies have greatly benefited from
recent research and development in food processing techniques, equipment design and
computer based automation (ILO, 1985). Numerous specialized machines have been designed
for the manufacture of a very large number of different types of meat products to meet the
taste and custom of people living in the different localities (Pyke, 1981).
Page | 61
With increasing health conscious eating habit in the industrialized countries where coronary
heart disease and other “disease of affluence” (high blood pressure, diabetes, gout) are
common, the current trend is towards the consumption of less meat and meat products (FAO,
1992). This is to reduce the intake of saturated fatty acid, sodium and residual drugs used in
the production and treatment of animals since these have been implicated to be the causes of
some these diseases (Wirth, 1991 and FAO, 1992). This has given the impetus to the
production of products of low fat, low sodium content (Wirth, 1991) or synthetic products.
Description of business
VISION
The vision of the unit is to be the leader in research center for meat processing as well as a
reliable and profitable commercial center.
MISSION
The mission statement of the unit is to provide instruction, conduct research and extend
knowledge and technology in meat processing and providing consumers with hygienic and
quality meat products in the country and also in the international market at large.
Short Term Objectives
 To equip students with the needed techniques in processing meat and assist in research
work.
 To provide readily available hygienic meat products to the KNUST community and its
environs.
 To increase its current production scale from 61 tons to 1 metric ton per year
Page | 62
Long Term Objectives
 To enable the KNUST meat processing unit become one of the leading if not the best
meat processing center for research work in the country.
 To increase its current production scale from 1 metric ton– 10 metric ton per year.
Business description
The KNUST meat processing unit is a manufacturing unit that seeks to conduct research,
produce and process meat products. The current status of the unit is mainly for conducting
research and selling of the end products after the research. It is currently located on a 40 hectare
plot of land at the animal science department of KNUST. Legally, the unit is under the
jurisdiction of KNUST as an institution and so all legal affairs pertaining to it are done under
the authority of the university. Some of the products that the unit produces are Sausages
(smoked pork sausages, Beef frankfurter, pork frankfurter, chicken frankfurter), Minced Beef
and Pork, Ham, Fresh Pork, Beef and Chevon, Meat Loaf (Beef and Pork), and Bacon. The
unit’s consumers are mainly the KNUST community and its neighboring environs.
Organizational/management plan
The management plan will give an extensive hierarchy of authority at the unit as well as the
description of each and every person’s duties and responsibilities. The management of the
unit will be done by, Board of Trustees, Head of the unit, Administration/Finance head,
Production and Quality assurance head, marketing and sales head and Employees which is
spelt out in a hierarchical manner
Marketing plan
Page | 63
This business plan will help the unit to know the importance of conducting a good marketing
research if commercialization of its products will be considered. Also, a good marketing
research will help provide a more insight to the changing technologies in processing meat to
help broaden students’ knowledge and make them more equip for the job market and also to
aid in effective research work.
Advertising channels like bill boards, broadcasting of its products through the university’s
FM station (Focus FM) and other FM stations in the country as well as the university’s
website will be used in publicizing the unit. The KNUST Meat products and services are
currently priced slightly below their competitors in the metropolis. This is because KNUST
competes not on price, but on flexibility, the quality of services and products, and the
availability of specialty, value added products.
Financial plan
We will need a total Capital of GH₵1,223,160.66 comprising of GH₵1,135,380 for
Operational Costs and GH₵87,780.66 for Investments.
We intend to finance the Operational Cost with Equity from the University’s central accounts
and also finance the Investments with Debt/Loan from a financial institution.
Risk management
The Ghanaian meat processing industry is exposed to significant and varied risks, many
which could result in catastrophic losses and consequences for the industry as a whole. Risk
management has been a very effective tool to manage these risks on a macroeconomic level.
However, at the micro economic level, risk management standards vary considerably across
the industry. The meat processing unit is faced with challenges from internal and external
forces. These factors includes power fluctuation, bureaucracies in decision making, Price and
value addition, competition and quality, Life span of products and Health related issues.
Page | 64
Management has made provisions to mitigate all associated risks by insuring the business
against fire. Total quality management will be integrated in the processes to mitigate all
product quality process. A plant will be acquired to curtail any power fluctuations. The unit
will adopt effective communication strategies to speed decision making.
REFERENCES
Ghana Statistical Service (2010), Population and Housing Census, Population by District and
Sex-Ashanti Region retrieved from 2010_phc_summary_tables_pop_by_reg_sex_.pdf
Page | 65
CIA World Fact book. (2011) www.indexmundi.com/historical data graphs per year
FAO,(1992). Meat and Meat Products in Human Nutrition in Developing Countries. Food
and Nutrition Paper. Rome, Italy. Pp 53-91
Heinz, G. and Hautzinger (2007). Meat Processing Technology for Small scale to Medium
scale Processors. RAP Publication. Bangkok, Thailand
(http://www.fao.org/docrep/010/ai407e/AI407E04.htm)
Lawrie, R.A.(2002). Lawrie’s Meat Science. Sixth Edition. Wood head Publishing limited,
England. Pp 417-419
Quaye, Abraham Nii Omani (2012). Current Status of the Meat Processing Industry in the
Accra Metropolis. Published thesis.Pg 1-2, 35
www.wikipedia.org/wiki/food
www.wikipedia.org/wiki/meat processing
www.wikipedia.org/wiki/kumasi
www.businessmonitor.com/ghana
www.alison.com/balance-sheets
Operate and Analyse your Business by Rosemary Peavler, www.about.com Guide
The Cash Flow Projection by Susan Ward, www.about.com Guide
Matering Cash Flow Analysis, 10 Steps to Better Cash Flow Management by Demir Barlas
Page | 66

Business Plan For A Meat Processing Firm

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Business Plan For A Meat Processing Firm

Загружено:

Авторское право:

Доступные форматы

BUSINESS PLAN

MEAT PROCESSING FIRM

(A CASE STUDY AT THE K.N.U.S.T. MEAT PROCESSING UNIT)

BONSU, Sandra Akyeamaa (3206309)

TAYLOR, Benjamin (3210109)

SARFO, Jacob (3209809)

SARFO, Abraham (3209709)

SUALIHU, Basiru Mohammed (3209909)

or more procedures such as grinding, chopping, addition of seasonings, alteration of colour or

contributes to preservation, convenience, appearance, palatability, and safety, and provides

life of products in order to satisfy consumer demands over a long time.

but also contribute to:

 Effective quality control.

for human consumption.

 providing protein needs,

 generating employment and income,

 Saving and or generating foreign exchange.

sustainable livestock (and poultry) sub-sector, in addition to appropriate technology, human

increasing the product competitiveness in the market, etc.

viability of the meat processing business

without doing deal diligence as to which products yield maximum returns.

consideration consumer specification such as their health by producing under unhygienic

This shows an inadequate production to meet demand.

suit consumers’ convenience.

before the commencement of business activities.

the feasibility of the venture.

1.3 RESEARCH QUESTIONS

1. Will expansion of the unit be feasible?

2. Will expansion of the unit be financially viable?

3. What products currently exist in the industry?

5. What are the production and the operations of the industry?

6. What are the costs and incomes of the industry?

7. What are the levels of management that exist in the industry?

8. What are the challenges and risks faced by the industry?

objectives will aid in achieving the overall goal:

1. To evaluate the feasibility of expanding the unit.

2. To examine the financial viability of expanding the unit

3. To determine the products that currently exists in the industry.

4. To analyze the marketand sales avenues available of the industry.

5. To examine the productions and operations of the industry.

6. To ascertain the costs and incomes of the industry.

7. To evaluate the challenges and risks faced by the industry.

8. To determine the Management levels that exists within the industry.

to operate in the Kumasi Metropolis.

 It will help attract investors into the industry.

 It will serve as an operating guide for the management of the company.

 It can be used to arrange for strategic alliances and obtain contracts.

 It will help contribute to academic knowledge.

2.1 MEAT PROCESSING AROUND THE WORLD

2.1.2 TRENDS IN DEVELOPMENT

generations to allow food (including meat) to be stored throughout winter months.

manufacturing methods (Fellows, 1988).

choppers, and disintegrators capable of producing complete homogenization of meat, machines

an 8-hour shift in China by using these modern machinery.

Commercial production of some of these products is currently in progress in some African

consumers who lack storage facilities.

produced meat products (Rodriguez, 1993).

Botswana for large scale export of bornless beef to Europe.

rural areas in the absence of refrigerating facilities.

decrease in per capita income (UNDP/TTC, 1990).

Engineering Department at U.S.T. also have designed and manufactured appropriate

2.2.2 THE ANIMAL INDUSTRY IN GHANA

organized commercial poultry and pig operations.