If there is one thing Kenyans love, it’s having a great meal inclusive of meat. Whether it’s meat stew, nyama choma, wet fry, mshikaki, meat balls or even meat in delicacies such as shawarma and burgers.
This is what makes a butchery business both attractive and profitable. Operating a butchery is extremely easy but before you start up, it’s important to have these questions answered;
What operating licences will you need?
Where will I get a good supplier?
Which location is appropriate?
How much capital do you need?
Getting Started
One key thing to figure out before opening a butchery is where you’ll get your meat. If you are starting out, you don’t need to stock a wide variety of meat, focus on beef and chicken and grow to other varieties gradually.
The best places to get your meat supply is licensed slaughter houses in your area. For those within Nairobi, you can find a trusted meat supplier in Dagoretti, Kajiado and City Market. For those out of Nairobi, ensure you find a slaughter house or supplier that is safe and licensed.
Licences
To operate a butchery legally, ensure you have these three licences;
Single Business Permit – The cost varies from county to county. In Nairobi, a permit for a medium trader is Ksh.10,000 valid for a year.
Food Handling Certificate – It costs Ksh. 600 and is valid for 6 months.
Fire Safety Certificate – Valid for a year and costs Ksh. 3,000.
Total – Ksh. 13,600
Basic Equipment
When starting out a butchery, you will need some basic equipment to start with before expanding to more equipment with time;
Meat Cabinet – Ksh. 75,000
2 Butcher’s knives – Ksh. 2500 each
5 Butchery hooks – Ksh. 500 each
Cutting block/Wooden stump – Ksh. 5,000
Digital weighing scale – Ksh. 5,500
Wrapping materials – Ksh. 500
2 White lab coats – Ksh. 850 each
Cleaning materials – Ksh. 1000
Total – Ksh. 96,200
All prices are approximate.
Location
The most profitable location for your butchery should be a high traffic area preferably shopping centers within estates which are at a close proximity to households.
A decent space will cost between 20,000 – 40,000 monthly rent depending on the location.
Once you find a suitable space, you can renovate and brand according to your preference.
Investment vs. Profit
Considering all the expenses listed above from licenses to equipment and rent, the total approximate investment we are looking at is
Licenses – Ksh.13,600
Equipment – Ksh. 96,200
Rent – Ksh. 20,000
Total – Ksh. 129,800
Now let’s assume your butchery is at a busy neighborhood and you bring in 200kgs of meat that you bought at a whole sale price of Ksh.250 a kg. That comes to Ksh. 50,000.
If you have a good day and sell 150kgs at a retail price of Ksh. 400 per kg, you make a good Ksh.60,000 daily and make a Ksh. 10,000 profit. In a couple of months you’ll have your return on investment and can expand to better equipment and a variety of meat.
Article Source: http://www.kuzabiashara.co.ke/blog/would-you-like-to-start-a-butchery-business-here-is-all-you-need-to-know/