The purpose of this paper is to highlight problems encountered by red meat processors at farm level in the Free State and also to make a contribution to extension, policy making and ultimately to increased economic growth through enhanced value adding in the red meat processing industry. A personal survey was carried out. Analyses were based on data of 36 enterprises and consisted of ranking of problems as well as contingency table analyses. Results indicated that deregulation had a marked effect on business opportunities and that the survey population exerts an important influence on employment and economic activity. The five most critical problem areas were: marketing, labour, tax, economic climate and competition. Contingency table analyses revealed the existence of relationships between certain business characteristics and problems.