Looking for an Opportunity?

The most successful and wealthiest of business people have a knack for identifying opportunities where everyone else sees problems.   Over the years, I have been blessed with the ability to identify a few hidden opportunities.   Most of the time, however, I do not recognize the opportunity until it is too late.

One of the biggest problems for today’s livestock producers has been a severe shortage of capacity within privately-owned meat processing plants.   These are locally-owned businesses that have the ability to slaughter and process meat animals like beef, pork, sheep and wild game.  

Ten years ago, it was not difficult to find several processing plants within 100 miles that could take animals with less than a week’s notice.   Emergency cases could be taken immediately.   Five years ago, you had to schedule appointments two to eight weeks in advance.   Currently, you often have to wait over one year to get an animal in.   This was a problem prior to Covid-19.   It is an even bigger problem today.

This screams O-P-P-O-R-T-U-N-I-T-Y for those who are listening!

Because of the law of supply and demand, owning a meat processing plant in rural America has become an extremely lucrative business.   I suspect we could increase capacity by over 10 times before we see a negative effect to profitability.   There are two ways to increase capacity.   1) we can increase the number of processing plants, or 2) we can increase the capacity of existing plants.

Since I don’t have the desire to build a plant from scratch and since I have no desire to work in a processing plant, I will probably look for existing plants to invest in.   Increasing the capacity of existing plants seems like the best option for me, because they already know how to meet the existing regulations and requirements.   They also know how to operate and manage the day-to-day activities.

 

One response to “Looking for an Opportunity?

  1. Well Kit here you go- we have a small plant that was a godsend to us local producers that shut down last year due to poor mgmt. and a community owned co-op model that lacked in accountability.  It was a USDA inspected operation and one of the only in the east set up to do Bison as well.  We have tons of demand- local producers in the region have been hurt by its closing- us here at Riven Rock Farm included.  The plant processed beef, hogs, bison and lambs.  It sits idle as the current volunteer board of managers desperately tries to find expert investors/new operators etc…we collectively have the animals and grass fed operations to supply. And are 2.5 hours from northern VA, D.C, Richmond- so great markets.  Just need a good owner with leadership skills and some capital.  Here is the link to Alleghany Meats.  http://www.alleghanymeats.com.  And feel free to contact me for more details.  chuck.neely@yahoo.com  804-229-3497.  My operation was one of the plant’s largest local producers.  We now travel over 3 mountain ranges with our animals.

Leave a Reply

Your email address will not be published. Required fields are marked *