Beef Butchery Guide

The Beef Butchery Guide includes :

  •     Overview of beef and meat consumption in Kenya
  •     Licenses
  •     Capital
  •     Equipment & prices
  •     Equipment Suppliers
  •     Meat suppliers and the supply chain
  •     Abbatoirs and wholesale markets
  •     Grading of beef
  •     Market structure - Low end, Middle and high end
  •     Competition & Survival
  •     Competition numbers
  •     Reasons for closing
  •     Overview of demand
  •     Status of competition and opportunities in the business
  •     Barriers to entry
  •     Distribution of competition
  •     Critical Success Factors
  •     Differentiation / What is competition based on
  •     Revenue
  •     Wholesale / Retail Prices
  •     Margins
  •     Pricing
  •     Consumers & revenue
  •     Pricing trends
  •     Flexibility and Revenue
  •     Ready meat and revenue
  •     Break even point
  •     Revenue & Location, Economy, Service, Quality
  •     Consumer Behavior
  •     Manpower
  •     A Note on Kenya Meat Commission


"....Average Daily Sales in Kg - 15kg

“Second Tier” Wholesalers

As we look more into revenue, let us first briefly touch on distributors/wholesalers who purchase from slaughter houses and deliver to butcheries; the ones we refer as second tier wholesalers since they buy from the major ( first tier ) wholesalers at the slaughterhouses.

Like we pin pointed not every butchery owner is able to go purchase meat from the slaughterhouse. Not that there are any restrictions at the slaughterhouses markets such as Dagoretti and Burma, but the challenges have to do with lack of a means of transport, time , convenience and related factors.

So that’s where the second tier wholesaler comes in; he buys from the slaughterhouse market say Dagoretti and Burma in Nairobi and delivers to the butchery in the estate that is not able to go buy the meat themselves from the slaughterhouse from whatever reasons.

This kind of wholesaler is easily identifiable by the white and red boxes labeled MEAT, on top of their pickups or motorbikes.

So how do you become such a type of wholesaler?

- Have a means of transport – You need to transport the beef from the slaughterhouse to the butcheries in the estates. The means of transport can be a vehicle or motorcycle. A vehicle can be a pickup, some station wagon like Probox or such other. A pick up is able to carry a bigger container and quantity. 

- Have enough working capital – Since you are supplying to several butcheries you need to have cash to buy enough meat for all of them. Say you are supplying 6 butcheries, and each buying an average of 15 kilograms every day, and then those are 90 kilograms. At a minimum price of Kshs.200 per kilogram then you need at least of Kshs.18, 000.

Keep it in mind not all butchers will pay you immediately. Some will request you to come for payment after a day or two when they have sold all the beef. Meanwhile, even before they pay, you need to keep buying and supplying meat. Then you never know when you will acquire new customers and with them higher purchases. 

Licenses – You need the license to transport the meat. If you look at the meat boxes you will note some numbers written on them. These have to do with the licenses. In 2016 the license costs an average of Kshs.1000.

To get the license the county officials have to inspect the box to be used to transport the meat. A standard requirement is that the box must be made of stainless steel .A standard box that can be carried on a motorcycle costs about Kshs.8, 000 to make.

- Have customers to whom to sell the meat to – Before you venture into the business you need to have customers (butchers) who will be your customers.

Customers can be new butchers who are yet to establish any loyalties. If not new butchers then you need to make the current butchers start buying from you. This is by promising and delivering better quality, prices or even terms. The butchers won’t just ditch their present suppliers from you; rather it will be a gradual process as they test and build faith in you.

....... The mark up varies but ranges between Kshs. 30 and Kshs.50 per kilogram. It could seem little but its substantial if you are selling say 60 kilograms. (MORE) .....On the face of it the business is good because you are able to sell in bulk, the margins are good and there is not much hustle. The biggest challenge is getting enough butchers or hotels to sell to. ....... 

Now back to revenue......"

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