By Noko Mashilo
Farmers in the red meat sector have been warned about common serious management mistakes that hinder them from making profits.
These include treating their occupation as a side business, failing to register and brand animals for proof of ownership, mixing personal and business finances, and having no formal business structure or registration.
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These shortcomings were highlighted in a recent Red Meat Industry Services webinar hosted by livestock technical advisor Khomotso Mashiloane and consultant Precious Mvulane. Its aim was to equip farmers with essential financial strategies to enhance profitability.
Mvulane from GAD Consulting Services focused on exposing farmers to practical financial tools, highlighting common financial pitfalls and providing control mechanisms to empower them in their agricultural businesses.
Under the theme “Profit or Perish: Smart Financial Strategies for Farmers”, the webinar addressed critical aspects of financial planning, cost management and profitability optimisation.
Mvulane indicated some of the top management mistakes.
“In most cases, there is incomplete or missing livestock records, failure to register and brand animals for ownership proof, mixing personal and business finances, no formal business structure or registration, inconsistent tracking of income and expenses, poor livestock health management and vaccination tracking, treating farming as a side project rather than a business,” said Mvulane.
She further highlighted a lack of succession planning for future ownership, an inability to produce accurate financial reports for funding and failure to leverage technology for farm management.
Mvulane said a lack of business planning could lead to operating without a clear business model, goals and growth strategy.
“If there are no financial records or poor bookkeeping, farmers will fail to track income, expenses and cash flow accurately,” said Mvulane.
She also said mixing personal and business finances was a mistake.
“Using one account for both personal and farm expenses will cause financial confusion. Operating informally without legal business registration will limit funding opportunities,” said Mvulane.
She encouraged the attendees to build networks and focus on correcting errors and mistakes.
“Farmers must reach out for help and take control of their destiny,” said Mvulane.
Mashiloane said he intended to spark a mindset shift among red meat
producers.
“I wanted to encourage them to view their farms not as a tradition or survival mechanism. They must take it as fully-fledged business enterprises that require strategic planning, financial discipline and modern management tools,” said Mashiloane.
“I have seen many farmers struggle and it is not lack potential or passion. It is poor financial planning, record-keeping gaps and limited business knowledge.”
