Cash Flow Template for Small-Scale Slaughterhouse
This cash flow template (excel) is designed to help test the feasibility of establishing a small-scale, low-tech, mixed species slaughterhouse and processing facility. While this template can provide a rough assessment of financial feasibility, it should not be the sole tool used in your decision making.
CISA used references from previous studies, as well as industry, business, and farmer experts, to develop baseline numbers and an initial facility profile for the Cash Flow Template – check out how we got our numbers. Additional research and expert consultation is needed to validate estimates of capital, direct, and operational costs, and the impact of fluctuating demand for each specific site. For our purposes, “small-scale” is defined as a facility that can process up to approximately 2,000 animals or 1,200 steer equivalents annually.
How to use the template
The workbook template has four separate worksheets, each of which permits some input of data. The input cells are colored blue. If you wish to change data or formulas in any other cells, you will need to unlock the worksheet (select Tools/Protection/Unprotect Sheet).
Revenue & Direct Costs
- The calculations on this worksheet are based on one shift (with two shifts commencing in Year 3). You can modify the number of shifts on the Profit/Loss worksheet.
- Full shift capacity is assumed to be 3 FTE person crew or 6,000 hrs/yr. As you input production and labor assumptions monitor the labor/capacity information to be sure you are matching staff to production.
Start-up Costs, Loans & Depreciation
- Up to two long-term loans can be estimated on this worksheet. Working capital loans will be entered on the Cash Flow (Total Operating Projections tab).
- Depreciation is calculated as straight line, using IRS asset life guidelines.
Operating Projections – Profit & Loss and Cash Flow Projections
- Enter the number of shifts per year (between 0-2) to calculate revenues and direct costs for different levels of production.
- Use the Ending Cash Balance on the Cash Flow to determine whether you need to take out a line of credit (working capital) loan in a given year. The worksheet assumes that a working capital loan will be repaid in full with interest in the following year.
- All calculations are made in current dollars. It is assumed that any increase in costs will result in a corresponding increase in fees charged – inflation calculations are not noted.
Profile of the Sample Facility
This concept slaughter and meat processing operation was initially conceived as two separate facilities (thus transportation between slaughter and processing location) to take advantage of a suitable meat processing and potential retail location in our region, while noting that separate slaughter operations might be a more viable option for the proposed setting. The template assumes that the facility will provide services only, not sale of product.
Organization: Farmer-owned cooperative
Facility: rented with 10 year lease, separate slaughter and processing facilities.
Capital sources: grants, loans and owner equity
Capital uses: building improvements, equipment
Animals processed: beef, sheep, hogs
Labor: Manager and 2 assistants per shift. In addition to managerial duties manager is also a cutter, and all crew members do both slaughter and processing. Admin labor is 1 half-time scheduler/bookkeeper.