Management Ratios


Here I share two important figures that I got from, Christian Faivre, a man with 35 years of experience in running meat plants in South Africa shared with me.

Projected P&L
 Christian’s Example 
Turnover  R     100,00
GP20% R        20,00
Overheads20% R        20,00
Staff – should be below 32.5% of GP32,50% R          6,50
Energy – in SA around 15 to 20%. I used 30% in Nigeria30% R          6,00

The thinking is simple. The above shows the break-even calculation. Reduce the total expenses now to 10% and you will have a very profitable business.

Keep total salaries at no more than 32.5% of total expenses and power should be between 15 and 20% of the same. Here in Lagos, I use 30% due to the extremely high cost of power.


This page is part of a series on The Meat Factory. Visit this page for the full list of related discussion documents.