Karoo Rabbit Protein — Production & Operations
The breeding and genetics, feed milling, contract-grower operations, processing and value-addition, cold chain and distribution, biosecurity and animal welfare and the production ramp underpinning Karoo Rabbit Protein.
Section 7 · Business Plan
Production & Operations
The breeding and genetics, feed milling, contract-grower operations, processing and value-addition, cold chain and distribution, biosecurity and animal welfare and the production ramp underpinning Karoo Rabbit Protein.
KRP’s operations are organised around the integrated chain described
in Section 5. This section sets out how each node functions, the
biosecurity and welfare framework that protects the herd and the brand,
and the production ramp that underpins the financial projections.
7.1 Breeding & Genetics
A nucleus breeding herd, supported by multiplier units, anchors the
chain. KRP selects for breeds and crosses adapted to South African
conditions — heat tolerance, hardiness and feed efficiency — building on
locally proven lines. Doe productivity of roughly 40 marketable
offspring per year and a productive doe life of 24–36 months drive the
breeding economics. Genetics are both an internal supply guarantee and
an external revenue stream, and they constitute the Company’s most
defensible biological IP.
7.2 Feed Milling
A central feed mill formulates species-specific rabbit rations and
supplies the grower network at controlled cost and quality. Because feed
is the single largest input into live-animal cost, owning the mill
protects both margin and biosecurity (controlled, traceable inputs) and
removes a recurring constraint that has limited other producers.
Lifecycle feed consumption of approximately 9 kg per rabbit and a
feed-conversion ratio of around 2.5–3.5 to one frame the mill’s
throughput requirements.
7.3 Contract-Grower Operations
Growers raise rabbits from weaning to a slaughter weight of
approximately 2.2–2.5 kg over an 11–12 week cycle, in housing built to
KRP specification and under KRP veterinary and extension supervision.
The network scales from 40 farms in Year 1 to 520 by Year 5.
Standardised housing, feed and genetics ensure consistent, traceable
output, while guaranteed offtake gives growers bankable income and KRP a
reliable supply base.
7.4 Processing & Value-Addition
A HACCP-accredited abattoir and value-added processing plant convert
live animals into fresh, frozen and value-added product at a dressing
yield of approximately 54%, equating to roughly 1.25 kg of sellable meat
per rabbit. Processing capacity is built ahead of demand — from 600,000
rabbits per year at commissioning to 1.8 million by Year 5 — so that
utilisation rises from about 31% to 87% over the plan, avoiding both
bottlenecks and stranded capital.
7.5 Cold Chain & Distribution
An owned, temperature-controlled storage and distribution capability
preserves product integrity from plant to point of sale. Controlling the
cold chain protects food safety, reduces spoilage loss, and is a
prerequisite for both premium retail listings and export
accreditation.
7.6 Biosecurity & Animal Welfare
Biosecurity is treated as a first-order strategic asset. South
Africa’s freedom from myxomatosis and rabbit haemorrhagic disease is
protected through controlled genetics, traceable feed, accredited
housing standards, veterinary oversight and strict movement controls
across the network. Animal-welfare standards are embedded in housing
design and handling protocols, both as an ethical commitment and as a
brand and market-access requirement — increasingly relevant to premium
retail and export buyers.
7.7 Production Ramp
The operational build is deliberately phased. Rabbits processed rise
from 185,000 in Year 1 to 1.56 million in Year 5; sellable meat from
roughly 231 to 1,950 tons; doe-equivalents from 3,500 to 30,000; and the
grower network from 40 to 520 farms. This measured ramp is the backbone
of the revenue and cost projections in Section 13.
| Operating metric | FY27 | FY28 | FY29 | FY30 | FY31 |
|---|---|---|---|---|---|
| Rabbits processed | 185,000 | 430,000 | 790,000 | 1,160,000 | 1,560,000 |
| Capacity (head/yr) | 600,000 | 900,000 | 1,200,000 | 1,500,000 | 1,800,000 |
| Utilisation | 30.8% | 47.8% | 65.8% | 77.3% | 86.7% |
| Sellable meat (tons) | 231.2 | 537.5 | 987.5 | 1450.0 | 1950.0 |
| Doe-equivalents | 3,500 | 8,000 | 15,000 | 22,000 | 30,000 |
| Contract farms | 40 | 110 | 240 | 380 | 520 |
Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of Karoo Rabbit Protein (Pty) Ltd.