Business Plan: The Establishment of A Rabbit Farm and The Marketing of Innovative Rabbit Meat Products & Sausages

Business Plan: The Establishment of a Rabbit Farm and
The Marketing of Innovative Rabbit Meat Products &

Sausages
Maria Spilioti1, Evangelos Zoidis2, George Papadomichelakis3, Kostas Tsiboukas4

1
Faculty of Animal Science & Aquaculture, Department of Nutritional Physiology and
Feeding, Agricultural University of Athens, Greece, e-mail: [email protected]
2
3
4
Rural Economy and Development, Agricultural University of Athens, Greece, e-mail:
[email protected]
Abstract. In the present study, we examined the development and organization

of a rabbit-keeping unit, taking into account the ongoing economic crisis.
Emphasis was given on the merchandising of innovative meat products and
cold rabbit meat. Literature review and market research, using a questionnaire,
helped us to compile the major elements of the study. The results of the study
revealed a deficit in self-sufficiency of rabbit meat at national level, and a
significant consumer interest in healthy foods, such as rabbit meat. Consumers
prefer products with short preparation time, such as cold meat and meat
products. The business plan is acceptable as to its realization, since it has been
evaluated according to the basic economic methods. Moreover, it is concluded
that there is much room for improvement in the promotion channels of this
carcass. Therefore, this study can serve as a strategic planning guide for
existing companies in the industry.
Keywords: Business plan, rabbit, innovative meat products
1 Introduction – Literature review
Recently, Greece shows a reduction of the overall consumption of animal products.

The economic crisis, the food scandals and the fierce competition in meat imports are
some of the reasons for this problem (Kaditi & Nitsi, 2010).
The livestock businesses suffer because of the aforementioned situation, showing
reduced revenues. The adaptation of these companies to the economics rules is
considered necessary. It is understood that this problem also extends to rabbit
447
breeding units. The economic situation of rabbit breeders has been affected more
seriously compared to other animal breeding units. The sale of rabbit meat as a whole
carcass and not in pieces of meat, did not appeal much to consumers, since its
cooking method is complex and time-consuming. Young consumers prefer eating
foodstuff that requires only a short preparation time. Standardized rabbit products are
the ideal solution to meet this consumer need (Petracci & Cavani, 2012).
In addition, consumers care mostly about the quality of agricultural products, which
is reflected in the purchasing trends (Ferreira, 2002). Rabbit meat appears to be able
to satisfy consumers' nutritional needs, because of its high nutritional value.
Specifically, the meat examined is low in fat and cholesterol, thus being ideal for
people with cardiovascular diseases (Wood et al., 2008).
This business plan examines the development of innovative meat products and cold
rabbit meat, in order to improve the efficiency ratio at company and industry level.
Specifically, the company will provide fresh and frozen rabbit meat (whole or in
pieces), cold meat products (sausages, ham and parizaki) and meat products. In the
context of sustainable development, the products will be offered in ecological
packaging. These innovative foods will be first launched in the Greek market.
Based on international literature, the FAO (2007) reports that the global production
of rabbit meat amounts to 1,000,000 tons. First producing country is China, which
accounts for 30% of total production. Egypt, Italy, Spain and France follow.
According to data of the Ministry of Rural Development (2011), the annual
production of rabbit meat in Greece stands at 3,225 tons. Moreover, 3,775 tons are
imported from France, Italy, Spain, Belgium and the Netherlands, in order to meet
the domestic consumption needs (Table 2), which averages at 7,000 tons per year
(ELSTAT 2015; Lebas 2004, FAO 2007; ICAP 2007).
The pricing of rabbit meat in our country is shown in Table 1.
In Greece, rabbit meat consumption is limited to 0.70 kg per capita per year (Colin &
Lebas, 1994).
2 Object
The object of this study was a thorough analysis of both the functionality of the
business and the market trend. A calculation of economic fundamentals of this dipole
was carried out and further parameters that may affect the growth of the company
were examined.
448
3 Material and methods
SWOT ANALYSIS of the company
SWOT ANALYSIS was used as a strategic planning tool.
3.1 Strengths
• Less operating cost, due to the utilization of all products of the livestock
unit, the alternative forms of energy and the recycling programs that will be
implemented.
• Elaborated marketing plan. Funds to be spent on advertising.
• Selection of an appropriate location to set up the business, with respect to
distances from urban centers and the slaughterhouse.
• Creation of novel products, resulting in a higher market share. Claiming
prizes in fairs.
• Cooperation with transport companies. In this way, the livestock unit has
the necessary time to carry out its work unhindered and without deviating
from its targets.
• Rabbit, as a farm animal, is characterized by high productivity and less food
consumption compared to other species of animal production.
• Specialized staff for each of the company's works.
• Products certified for their manufacturing process.
• Satisfactory and competitive customer service.
3.2 Weaknesses
• Small capacity of the breeding farm, resulting in less revenue.
• Daily work at the breeding farm.
• Lack of experience in the industry where the business will operate.
3.3 Opportunities
• Cuniculture is eligible for financing by subsidy programs.
• Increasing demand for healthy foodstuff, such as rabbit meat.
• The cuniculture industry is characterized by rapid growth and development
at a global level.
3.4 Threats
• Deterioration of the economic and political situation in Greece.
• Reduced domestic consumption of rabbit meat.
• Limited number of slaughterhouses which are suitable for rabbits.
• The price of imported rabbit meat is lower than that of the locally produced
rabbit meat.
• Increased feed costs.
449
Structured questionnaire and financial methods
The questionnaire consisted of 22 questions. The first 5 questions concerned the

educational and socio-economic status of respondents. The rest 17 questions
concerned the shopping behaviour of consumers in relation to rabbit meat. The
sample volume was 100 people. The questionnaire was available electronically. For
financial analysis, the cost of starting, the funding scheme, the operating costs and
the revenue from products sold, were calculated in a ten-year estimate. The
evaluation of the investment program was performed according to the method of
present net value and based on the internal rate of return.
Table 1. Rabbit Meat Pricing

Producer price Butcher price Imported meat price
€5.5/kg €8/kg €6/kg
Source: Ministry of Rural Development (2010)
Table 2. Evolution of rabbit meat imports-exports, Greece

Imports Exports
Country - Year
Price in Quantity Price in Quantity
Euro in tons Euro in tons
France - 1st Semester 2015 4,704,000 1,568 - -
The Netherlands - 1st Semester 444,000 148 - -
2015
Italy - 1st Semester 2015 2,235,000 745 - -
Spain - 1st Semester 2015 684,000 228 - -
Belgium - 1st Semester 2015 615,000 205 - -
Bulgaria - 1st Semester 2015 - - 247,500 45
Cyprus - 1st Semester 2015 - - 2,062,500 375
Total 8,682,000 2,894 2,310,000 420
Source: ELSTAT (2015)
4 Results
Structured questionnaire and financial methods
Out of 100 respondents, 47% answered that the price of rabbit meat is "quite"
expensive compared to other types of meat, while the answers "a bit" and "very"
represented 21% and 17%, respectively. Also, research has shown that customers are
mostly interested in the color (46%), taste (55%), packaging (36%) and nutritional
value (36%) of the purchased meat. On the other hand, a large proportion of
consumers consider the specific categories of foods unhealthy (67% of respondents
for cold meat and 70% of respondents for meat products). However, a significant
450
proportion of consumers is interested in trying innovative rabbit meat products (30%
"very" and 12% "very much" for cold meat, 30% "very" and 10% "very much" for
meat products (Fig.1 and Fig.2).
As to the results, the methods of the Net Present Value (NPV) and the internal rate of
return (IRR) resulted in positive numbers. Specifically, the NPV: 241,119 and IRR:
0.26. Table 3 shows the key economic elements that characterize the business, as derived
through calculations.
Fig. 1. Consumer interest in the standardization of rabbit meat in sausages

Source: Authors' calculations
451
Fig. 2. Consumer interest in the standardization of rabbit meat in meat products
Table 3. Key financial data of the business

Start-up costs 291,900 Euro
Funding scheme
Amount in EURO Percentage
Equity 87,570 30%
Bank loan 58,380 20%
Grant 145,950 50%
Production costs
10th
1st year 3rd year 6th year year
Total 239,192 248,677 274,024 353,499
Key financial results
Financial
1st year 3rd year 6th year 10th year
results
Gross income 199,829 254,843 305,812 440,039
Net profit - 39,363 6,166 31,788 86,540
Agricultural 1,455 44,644 60,759 111,714
household
income
Profitability (%) -5% 13% 31% 112%
452
5 Conclusions
Considering the trends of consumers as expressed through the answers of

respondents, the company decided to supply the rabbit meat produced, at a slightly
lower price compared to other competitors. The founding members of the company,
aiming at quality assurance in production processes and handling of these goods, will
give attention to the welfare of livestock, particularly in farming and transportation
conditions to the slaughterhouse. Certainly, ensuring some distribution points of the
products, is of outmost importance. In order to optimize meat quality, enriching of
the feeding with essential oils and antioxidants is suggested. Moreover, for adopting
healthier eating patterns, the company will provide meat products and cold meat,
prepared on the basis of traditional recipes, without any preservatives or coloring.
Regarding the packaging of the goods for sale, two types will be selected: a vacuum
packaging for fresh meat and an envelope packaging for frozen meat and meat
products, both from reusable materials.
In conclusion, according to the financial methods applied, the business plan seems
appealing as concerns its realization. Therefore, the production of innovative foods
may serve as an outlet from recession.
It is worth mentioning that the results of this study should be interpreted taking into
account certain limitations. First, the number of studies on the promotion of rabbit
meat is limited, therefore the authors have access only to a restricted volume of data.
Second, the size of the test sample may not be representative. For this reason, it is
necessary to carry out more studies and research on similar subjects. Finally, despite
the immediate and quick gathering of data through the online questionnaire, it was
not possible to establish a feedback mechanism between the researcher and the
respondents.
References
1. Colin, M. & Lebas, F. (1994). La production du lapin dans le monde.

Communication to 6es Journées de la Recherche Cunicole en France.
2. FAO, (2007). The rabbit – Husbandry, health and production.
3. Ferreira, W. N. 2003. Analysis of the meat processing industry in the United
States. CLEMSON Extension: Extension Economic Report Department of
Agricultural and Applied Economics, Clemson University, Clemson South
Carolina 29634.
4. Greek Ministry of Rural Development & Food (2011) (in Greek).
5. Greece Ministry of Rural Development & Food (2010) (in Greek).
6. Hellenic Statistical Authority (in Greek).
453
7. ICAP, (2007). Meat (in Greek)
8. Kaditi, E. A. & Nitsi, E. I., (2010). The agricultural sector in Greece, The Centre
of Planning and Economic Research – KEPE, Athens (in Greek).
9. Lebas, F. (2004). Reflections on rabbit nutrition with a special emphasis on feed
ingredients utilization. 8th World Rabbit Congress, Puebla, Mexico.
10. Petracci, M. & Cavani, C. 2012. Trends in rabbit meat processing, World Rabbit
Science Association , Proceedings 10th World Rabbit Congress, Egypt.
11. Wood, J., Enser, M., Fisher, A., Nute, G., Sheard, P., Richardson, R., Hughes, S.,
Whittington, F. (2008). Fat deposition, fatty acid composition and meat quality:
A review. Meat Science 78: 343-358.
454

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Business Plan: The Establishment of a Rabbit Farm and

The Marketing of Innovative Rabbit Meat Products &

Maria Spilioti1, Evangelos Zoidis2, George Papadomichelakis3, Kostas Tsiboukas4

Abstract. In the present study, we examined the development and organization

Keywords: Business plan, rabbit, innovative meat products

1 Introduction – Literature review

Recently, Greece shows a reduction of the overall consumption of animal products.

SWOT ANALYSIS of the company

SWOT ANALYSIS was used as a strategic planning tool.

The questionnaire consisted of 22 questions. The first 5 questions concerned the

Table 1. Rabbit Meat Pricing

Table 2. Evolution of rabbit meat imports-exports, Greece

Structured questionnaire and financial methods

Fig. 1. Consumer interest in the standardization of rabbit meat in sausages

Table 3. Key financial data of the business

Considering the trends of consumers as expressed through the answers of

1. Colin, M. & Lebas, F. (1994). La production du lapin dans le monde.

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