This is a production enterprise based on farm animals. The time commitment for raising animals is quite high due to the tender care required. The livestock enterprise can be divided into three distinct stages depending on the interest of the farmer:

  • Raising: This involves the raring of the animals from start to finish. It requires the business owner to be available most of the time to oversee the enterprise. The best example here is breeding of animals e.g. calves and retaining them on the farm for either milk production or for slaughter; hatching of chicks which are retained for egg production or for chicken.
  • Finishing: Here a business owner buys animals at advanced stages and prepares them for culling. For example, fattening steers for the beef market; fattening pigs for the pork market.
  • Products: A farmer can specialize in collection, processing and distribution of animal products such as milk, eggs, meat and waste products. In this enterprise, the business owner does not necessarily have to rare the animals him/herself. S/he can work as a middleman between the farmer and the market. For optimal profitability, the kind of investment calls for value addition on the products e.g. instead of selling raw milk, one can make yoghurt or cheese, package it and sell a finished product which fetches more money.