How to start a horse breeding business
Horse breeding is not the most common type of business in our country. Basically, this is the lot of very enthusiastic people who love these animals infinitely. But if you seriously engage in horse breeding for the purpose of making a profit, then this activity will bring income. How to start a horse breeding business from scratch, what are the pros and cons of this entrepreneurial activity, we will tell you in this material.
No matter how trite it may sound, it is impossible to do business on horses without reverent attitude towards them. On this path, you will have to go through several stages and overcome many difficulties before you can earn decent money. To implement this business idea, you need a plan. By following it in stages, you can independently go through the path of creating an enterprise and achieve the goals that you set for yourself.
According to economic statistics, the profitability of horse breeding enterprises can reach 300%, but subject to the full dedication of the creator and staff.
Horse breeding as a field of animal husbandry can develop in several directions. It could be:
- Breeding of pedigree breeds.
- Breeding of sports horse breeds.
- Horse breeding in the interests of meeting economic needs.
Depending on the direction, it is important to choose the format of the enterprise. The stud farm is more suitable for the business of breeding certain breeds of horses and their subsequent sale. A private stable will be preferable when providing horse rental services or providing them for solving household issues. Such a small business is now the most common in the industry, as it does not require significant investments. As a rule, both stud farms and private stables pay off in a maximum of three years.
What to include in the business plan
A business idea can only be realized if there is a business plan. Based on this document, you will be able to draw conclusions whether it is profitable to engage in horse breeding, where to start an entrepreneurial activity in this direction and what documents need to be prepared in order to open an enterprise.
It must contain the following sections:
- The production plan, which should indicate which premises will be required and how to get it: build or rent. The solution to this issue is entirely entrusted to the founder, in accordance with his plan and financial capabilities.
- Analytical information about this activity in the country and region. It will allow you to more definitely choose the direction of horse breeding, choose what equipment you need for a horse farm, find out what profitability of the enterprise you can count on. For example, it takes up to three years on average to grow a racehorse, and five years for sporting breeds. This will give a more balanced answer to the question about the direction of your company.
- Description of the object. In this section, you must provide a detailed list of all premises, buildings and farm sites, indicate their purpose and method of acquisition. If necessary, a hostel for staff, warehouses for horse feed and ammunition for them should be provided.
- Personnel information. This question is important from the point of view of the success of the project. Only enthusiastic people with special training and knowledge in the field of horse breeding and horse care can work on the horse farm. The company will definitely need an experienced veterinarian.
- Financial plan. This is one of the most important sections in which the economic conditions for the implementation of the project are calculated. It indicates the sources of purchase and suppliers of feed and sawdust, their cost, operating costs for the purchase of equipment and the maintenance of one horse, as well as the total costs for all these purposes.
- Assessment of potential risks that may accompany the opening of the horse farm and its operation in the future. In this section, one should objectively weigh all the circumstances of doing business, its prospects, taking into account the current market situation.
Horses have been bred for thousands of years, and the goals of raising horses have varied across civilizations and eras. Currently, private entrepreneurship is being established in Russia and horse breeding can take a certain share of it. There are several business models for horse breeding. Along with the traditional meat and dairy horse breeding, the cultivation of sports or work horses, the tourism sector, riding schools and other areas are actively developing. But horse breeding is a tricky business that requires not only knowledge of these animals, but also a good start-up capital.
Meat horse breeding
Pure-bred breeding is used to raise horses for meat, as well as various options for crossing steppe breeds with heavy-harness to obtain a greater mass. The result of industrial crossing of Kazakh, Bashkir and other breeds with Vladimir and Soviet heavy trucks were crossbreeds weighing more than 600 kg, while being well fed on pastures. But hybrids have a major drawback in comparison with the breed - their performance is good only in one generation, therefore, for large farms aimed at increasing production rates, it is advisable to combine both technologies.
It is advisable to select horses for the tribe with the following rating data:
- pronounced meaty forms;
- moderate bone structure;
- strong limbs, with developed joints and strong hoof horn;
- developed udder in mares.
Herd breeding of horses is the most widespread. At the same time, 15-25 mares are assigned to one stallion-producer. Shoals are formed from sexually mature animals - mares over 3 years old, and horses - 4 years old. In the spring (breeding campaign) it is necessary to introduce additional concentrates into the diet - up to 6 kg per head for a stallion and up to 4 kg for mares.
Culling horses, as well as foals aged 2-2.5 years, are put to fattening. At the same time, it is better to hand over old animals in late spring, and young animals in winter - after the grazing season, when they gain maximum weight. The fattening horses are given hay, concentrates, silage, haylage, boiled tubers, root vegetables, beet pulp and potato stillage. Excellent results are obtained when feeding pellets and extruded feeds - this allows them to increase their nutritional value and reduce costs.
Milk production and processing
Before the advent of machines, horses were an integral part of human life. They were used in agriculture, as a vehicle, for the transportation of various goods. Naturally, horse breeding was held in high esteem and assumed widespread distribution. But despite this, even today, breeding horses at home can become a significant source of income for a breeder. Moreover, the success of this type of activity directly depends on the knowledge and resources that the farmer uses to implement it.
Horse Breeding Business - Earning Options
Horse breeding as a business involves several development options. As a rule, breeders choose one of them in order to maximize the concentration of resource consumption in one direction. The main types of horse breeding are:
- Raising thoroughbred horses for breeding work. This strategy generates the most income for the owner, but acquiring purebred foals is expensive.
- Breeding livestock for horse meat. Such meat is considered a delicacy. It is used for the production of sausages and other meat dishes. But here it is worth considering the presence in the region of horse meat processing plants or wholesale buyers of such meat.
- Breeding thoroughbred foals for participation in sports competitions. World championship victories require substantial fees. In addition, if the stallion manages to make a name for himself in the sports field, it can be profitably sold in the future.
- Organization of your own arena. If funds and space are available, a horse riding training center can be established. Also in such an institution for a fee, hippotherapy classes can be held.
Given the required amount of funds, many breeders choose for themselves two directions of keeping horses at once. Moreover, the first of them is the main one, on which the lion's share of the resources is concentrated, and the second is the accompanying one. The secondary areas of commercial horse breeding include:
- horse rental for various celebrations;
- keeping and training horses of another owner;
- organizing tourist horseback riding in places with beautiful nature or near the sea;
- sale of various items of harness, as well as tools and means for horse care;
- sale of dairy products.
It is worth noting that each of the listed earning options involves the investment of a fairly large amount of funds. Moreover, such a business develops gradually and pays for itself within 8-12 years.
The next stage after choosing a suitable development strategy is the official registration of a kind of activity. Most often, such a business is formalized as a peasant farm.
Registration is also required in order to receive certain assistance from the state for the opening. For example, it allows you to register benefits for the lease of a specific land plot. In addition, after official registration, the breeder can choose more economical tax conditions. Both one person and a group of people (family or community) can register.
The main points necessary for opening any of the directions of horse breeding include:
Commercial horse breeding is a profitable activity, which, however, is associated with many complexities and subtleties that must be taken into account. First of all, it must be borne in mind that horses are quite capricious and sensitive to conditions of detention. Lack of free space or movement, non-compliance with rules and recommendations for feeding can lead to the fact that the animals begin to become sick and weak. In this case, regardless of the purpose of breeding, you run the risk of incurring significant losses. You also need to provide all the livestock with constant care and attention. It is also necessary to bear in mind the cost of this activity - raising a healthy, powerful and beautiful horse can be very expensive. Therefore, even at the stage of forming an idea, you need to think over all the details of the future business, calculate its profitability and payback period.
Objectives of Horse Breeding
Horse breeding as a production activity can have various purposes. Moreover, for greater business profitability, there may be several of them. Therefore, after starting a business, more productive areas should be identified and made the main ones, regularly nourishing them with capital investments. Some of the target options are:
Pedigree horse breeding. Thoroughbred horses can be valued at several million dollars. However, the cultivation of such a "golden" animal will require not only accurate selection, but also long-term training with a horse - its beauty and, accordingly, the price depends not only on the presence of signs of breed and color, but also on the development of muscles, its expression and proportionality.
Meat farming. Horse meat is prohibited in some cultures due to religious beliefs, however, many peoples consider it a delicacy - and therefore such meat costs a lot. And given the fact that one horse can get up to 250 kg or more of meat, this activity becomes attractive and promising - the cost of feed, as a rule, is more than compensated by the profit from the sale of meat. At the same time, feeding here requires compliance with fairly strict rules and ratios - otherwise, the effectiveness will be low. Therefore, you need to first figure out how to breed horses for meat.
Kumis production. This specific drink made from mare's milk is very popular among Asian people. In addition, due to its rich composition, it has a number of useful properties - there are even so. kumis therapy. The profitability of such a business will depend primarily on the national composition and dietary habits of your potential customers.
Education and hippotherapy. Horse breeding can also be used to organize a riding school - such organizations must have their own livestock, and it must meet fairly strict requirements. The demand for such courses is quite stable, which can provide a stable income. You can also develop such a direction as hippotherapy - as studies show, communication with horses has a positive effect on the mental state, helps in rehabilitation after a wide range of diseases.
Organization of rental. It can be like horseback riding in the countryside, photo sessions, carriage rides, etc. In addition, you can offer your customers the option of buying out the animal they like.
Participation in the races. This will require organizing a training base or at least regularly transporting animals to the hippodrome. Not every breeder can afford such costs. At the same time, racehorses that win prizes in competitions are able to bring significant profits to their owners.
Where to grow: pasture or stable?
Horse breeding is a specific field of activity that requires high costs. At the same time, horse breeding can subsequently bring tangible profits. To take the first steps in this area, you need appropriate knowledge or a competent manager. Understanding the specifics will allow you to avoid pitfalls and minimize the cost of starting a business.
To start horse breeding, an entrepreneur needs to prepare a business plan. With its help, you can take into account all aspects of the planned business in advance. Horse breeding as a business has several variations. An entrepreneur can do:
- Horse riding. This destination is suitable for residents of resort towns or scenic areas.
- Elite horse breeding. Horse breeding is carried out for subsequent sale. These animals are very expensive. Potential buyers can be found through auctions or the Internet.
- Equestrian school organization. Almost all citizens will be clients.
Business variations can be combined. This allows you to significantly increase the amount of possible profit. It is best to create an equestrian school in large cities. In small settlements, business will bring minimal profit.
Organizational and legal issues
To start breeding horses, you need to go through state registration. An entrepreneur can open an LLC or individual entrepreneur. It should be noted that horse breeding does not require certification.
Land and buildings
Horse breeding is impossible without purchasing a large plot. Its area directly depends on the number of animals. The land can be bought or rented. Buildings will be required separately, including a stable. A hangar-type room is suitable for its organization. It needs to be equipped with stalls. It is advisable that they are not too small. The stall must be at least 3 meters wide.
When launching a horse breeding business, you should not immediately purchase expensive equipment. The stable can be further equipped in the future. At this stage, you should limit yourself to buying the minimum set of necessary things. Feeders and drinkers, you can choose the simplest. Subsequently, it is better to change them to automatic systems. This will significantly save money.
How to start a horse breeding business? Initially, you need to purchase animals. Their number and age directly depends on what kind of business the entrepreneur wants to organize.
If a person plans to create an equestrian school, then it is necessary to purchase at least 10 heads. Horses must be adults. Better to give preference to mares or geldings. They are calmer than stallions. Similar animals need to be purchased for horseback riding.