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AG IC L AL
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AG IC LPROFILEAL
COMPANY

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COMPANY PROFILE

BUSINESS PLAN FOR THE UPGRADE &
MANAGEMENT OF KAWO, TUDUN WADA AND
ZARIA ABATTOIRS





Contents

1. About Company
• About Us
• Our Mission
• Our Vision
• Our Values
2. Project Executive Summary
• Project Scope
• Services
• Benefits of our services
• Objectives
• Design
3. Market Analysis
• Competitor Analysis
4. Financial Projections (Viability Analysis)
• Estimated Project Cost
• Funding
• Revenue Forecast
• Investment Analysis (Profit & Loss Analysis)
5. Conclusion

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About Us

Triple A Agricultural Services Limited formally registered on 21st

January, 2015 with the Corporate Affairs Commission of Nigeria (CAC) is a
creative agricultural enterprise, seeking to play actively and provide
services to the agricultural value chain for efficient modern service delivery,
promote sustainable agriculture and combat food insecurity.

Our farming history dates over 50 years back, where we began farming as a
family business with 3 hectares of land. As at today we own over 150
hectares of land leaning on our avid commitment to expanding our business
frontiers. We are an ever-growing company pushing to feature among the
industry leaders in the agricultural sector.

Part of our growth strategy at Triple A resides in providing and using

ecological friendly farming systems; modern agricultural practices; cutting
edge technology; skills and the wits of each team member to scale up
production and carve a niche.

At Triple A we understand the need to protect the ecosystem, agricultural

waste to wealth practices hence we promote organic farming by utilizing
animal waste as mature. We also understand the modalities of the
agricultural value chain from farm input, production (crop and livestock),
marketing and sales to the consumers; these have influenced our four
thematic areas:

• Mechanized farming,
• Livestock production,
• Commodity trading and
• Economic empowerment.

Industrialization we know is an integral part of economic development and

the agricultural industry key to Gross Domestic Product (GDP) increase in
Nigeria; in light of this we seek to expound on the possibilities available in
the agricultural sector – as a business and creating interest.

Our farming activities take place in Zaria and Birnin Gwari, Kaduna State and
Kano State Nigeria.

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Our Mission

We aim to be a forward-thinking agricultural establishment providing

creative, efficient and affordable services to the entire agricultural value
chain.

Our Vision

Our vision is to be the market leader when it comes to provision of services

across the agricultural value chain.

Our Values

• Innovation
• Professionalism
• Commitment
• Creativity
• Affordability
• Efficiency
• Integrity

Project Executive Summary

Our company Triple A Agricultural Services Limited came up with the
desire to upgrade the quality and hygiene of red meat in Kaduna State and
has decided to develop and upgrade 3 existing abattoirs in the state namely
Kawo, Tudun wada and Zaria to a modern mechanized Animal Slaughtering
and Processing facility under a 15 years Design, Build, Operate and
Transfer (DBOT) PPP Scheme to a globally acceptable standard.

The Abattoirs will be constructed for the general use of the State’s Butchers
and also provide a platform for beef supply in the State.

Project Scope

The Scope of this project include the construction and management of the 3
mentioned abattoirs to generate revenue for the State. We plan to complete
the construction and upgrade of these facilities within 1 year as
development will go on concurrently.

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We plan to fully manage the facilities by providing services related to
operations from slaughtering to selling of meat by local butchers at a fixed
fee. Also, we have more 1000 animals that will be bred within the facilities
and maintenance which include hygiene and running of the facilities
successfully.

Our meats will be thoroughly processed through a standard procedure,

which gives us a good output; the processes include:

Meat Inspection: To ensure the safety and labeling of the supplied meat,
meat inspection is necessary because we differentiate between meat that Kts
human consumption, the sick ones, diseased or disabled ones.

Separation: We separate the different kinds of meat, sheep, goats, cows,

rams, and the rest.

Preparation: We prepare the meat for slaughtering by rendering them

unconscious and unaware of pain before slaughter.

Sanitation: We maintain sanitation before and during the production

process. We make sure the Loors, walls, ceilings, clothing, drains, and other
equipments are kept clean to avoid contamination.

Facilities and equipment: We ensure that all equipment and facilities meet
safety requirements.

Processing the meat: The meats are skinned, trimmed, and sterilized to kill
any bacteria that may be present.

Meat grading: We segregate meat into different classes based on expected

eating quality (e.g., appearance, tenderness, and Lavor) and label them
accurately.

Packing: After all meats have passed through the necessary procedures,
they are then packaged.

Preservation: Meats that are not on-demand are preserved. The methods of
preservation are refrigerating, freezing, and canning.

Sales and marketing: We deliver to necessary places and also make sales
to our walk-in customers.

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Services

We will ensure that we provide a wide range of meats for our customer’s
satisfaction and create a welcoming and highly hygienic environment for all
our walk-in customers. We will provide excellent customer care service, on-
time delivery, and the availability of various payments options for all our
clients.

We have lined a list of the services we intend to provide within the abattoirs
which are not limited to the following:

1. Bulk Slaughtering & Processing of meat
2. Livestock Breeding
3. Meat & carcass supply
4. Processing of waste

The benefits of our products and services are;

• Availability of several varieties of meats meeting the need of our

customers
• Hygienic and neatly processed meats
• Provision of high-quality products
• Top-notch customer care services.
• Fair and lowest possible prices.

Objectives

• To provide high-quality services at fair and best prices

• To create products that exceed customer’s expectations.
• To achieve a net profit of N100 Billion in five years.
• To boost image and awareness by establishing baseline customer
satisfaction of 100%.
• To develop a sustainable abattoir, surviving off its cash flow

Design

Our modern mechanized abattoirs will be designed in world class standard

with a Slaughter room, cold room, toilets, washing rooms, laundry etc (see
our proposed architectural drawings).

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We intent to provide modern slaughtering machines, bins, knives, sinks,
weighing scales, tables, trays, scalding and de-hairing machines, conveyor
belts, hoists, splitting saw, shears and scalding tanks, trolleys, stunners, de-
hiders, de-Horner, rail systems, gambrels, protective clothing, blood
disposal, waste disposal system, water supply system.

Market Analysis

The meat processing industry is evolving yearly and thriving all over the
world. Globally, revenue in the processed meat segment amounts to
$7,995M in 2021. The market is expected to grow annually by 2.85% (CAGR
2021-2025). In Nigeria, the total population of meat for Nigeria was
1.48miilion tonnes as of 2019. Therefore, the abattoir business will continue
to Lourish because people will always want to purchase fresh meat.

Rising demand for meat products has been fuelling market growth and
creating many investment opportunities. However, in most parts of Nigeria,
meat processing is under developed and hardly goes beyond just
slaughtering of the animal as leaders within the beef sector have to be
equipped with the knowledge and skills to take on investment in the
industry as skilled workforce is the key ingredient to securing the potential
of the red meat and livestock industry.

In South Africa, there are well organised meat-cutting programmes where
students learn to butcher cow, and about food, health and equipment safety.

But in Nigeria, there was a shortage of skilled and knowledgeable craftsmen

who can take a hanging carcass from the plant to portions for the plate.

Nationwide, the meat industry is vast. Kaduna’s red meat industry includes
beef, pork, lamb and mutton and goat. There are meat processing companies,
manufacturing a wide variety of meat products, from fresh and frozen meat
to processed, smoked, canned and cooked meats, as well as sausage and deli
meats. Similarly, a lot of options available for someone interested in working
in the industry.

One of these is the butcher who slaughters and prepares the meat for
further processing and packaging for marketing. Across the country,
companies are struggling to recruit good hands. As the beef sector is a key
driver of economic growth and employment.

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The State Government should setup butchering academies with the goal to
train new and existing butchers in best practices on slaughtering in the red
meat value chain. The said the academy would attract youths into the sector
through the adoption of technology and, in the process, make them the next
generation of butchers.

This will only bring in graduates and the youth to be the next generation of
butchers only if we have mechanised and semi-mechanised abattoirs as we
cannot bring them into the traditional slaughtering on the slab which is not
hygienic, wholesome and does not attract the right customers that will pay
the margins and will make this sector attractive to people.

Currently, there are no semi and full mechanised operational abattoirs in the
State as the best way to setup is through the public private partnerships. The
semi-mechanised line actually gives a sort of midway intersection and
flexibility between what exists already and what we want to get to. So what
we will be having going forward will be a mix of semi-mechanised and fully
mechanised abattoirs.

We have seen the impact of COVID-19 and we have seen that there is a
second wave in different areas around the globe and what this means is that,
we as Nigerians need to take responsibility and begin to ask for safe and
hygienic slaughtering conditions for the meat and food we consume.

Competitor Analysis for Abattoir Business

People will buy from us because of the following reasons:

• Availability of various kinds of meats

• Efficient and strong distribution network
• Use of latest technology to process our products
• Experienced and highly qualified staff
• Fair and best possible prices and discount offers.

Our three major competitive advantages are:

1. Availability of high-quality products

2. Core experienced and highly qualified staff.
3. Fair and best possible prices and discount offers

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Financial Projections (Viability Analysis)

Estimated Project Cost

We have estimated the project cost as tabulated below for each of the 3
abattoirs mentioned.

General Costs for the 3 Abattoirs
S/N Description Amount (Naira)
1 Preliminaries: Architectural Drawings, 20,000,000
M&E, permits including consultancy
2 Operational Cost (1st Five years) 250,000,000
3 Operational Vehicles + Delivery Vans 100,000,000
4 Marketing 5,000,000
5 Training of Staff & Butchers 30,000,000
6 Stakeholder engagements 10,000,000
TOTAL 415,000,000

Tudun Wada Abattoir
S/N Description Amount
1 Construction 700,000,000
2 Livestock Breeding 300,000,000
TOTAL 1,000,000,000
Kawo Abattoir
3 Construction 500,000,000
4 Livestock Breeding 200,000,000
TOTAL 700,000,000

Zaria Abattoir
S/N Description Amount
1 Construction 100,000,000
2 Livestock Breeding 50,000,000
TOTAL 150,000,000
GRAND TOTAL 2,265,000,000

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Funding

Triple A Agricultural Services Limited has sourced for funds from
business partners and associates plus the funds from our other businesses
to cover the cost of this project.

We plan invest 40% of the total project cost from Triple A’s resources and
60% from loans.

Revenue Generation and sharing formular

The services to be rendered in these abattoirs are going to generated
revenue as follows:

1. Slaughtering & Processing

Kawo Abattoir

S/N Description Unit Price No. per Amount
Annum
1. Cattle 1000 10,000 10,000,000
2. Sheep/Goats 500 5,000 2,500,000
3. Camel & others 1000 2,000 2,000,000
Total 14,500,000

Tudun Wada Abattoir

S/N Description Unit Price No. per Amount
Annum
1. Cattle 1000 10,000 10,000,000
2. Sheep/Goats 500 5,000 2,500,000
3. Camel & others 1000 2,000 2,000,000
Total 14,500,000

Zaria Abattoir

S/N Description Unit Price No. per Amount
Annum
1. Cattle 1000 5,000 5,000,000
2. Sheep/Goats 500 3,000 1,500,000
3. Camel & others 1000 1000 1,000,000

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 Total 7,500,000

2. Livestock Breeding

S/N Description Livestock Average cost Amount
produce per
annum
1. Zaria 100 200,000 20,000,000
2. Kawo 500 200,000 100,000,000
3. Tudun Wada 500 200,000 100,000,000
Total 220,000,000

3. Meat & carcass supply

S/N Description Supply (kg) Average Amount
per annum cost
1. Zaria 1,800,000 2500 4,500,000,000.00
2. Kawo 3,400,000 2500 8,500,000,000.00
3. Tudun Wada 3,400,000 2500 8,500,000,000.00
Total
21,500,000,000.00


4. Processing of waste, hide and skin, horns etc.

If we estimate the total revenue per annum from the services above, we will
generate about N500,000,000.

Grand total of year revenue from the 3 abattoirs will be: N
22,242,000,000.00

Sharing Formular

The yearly rental payment due to the Government shall be calculated as 20%
and us, Triple A Agricultural Services Limited, shall take 70% of the profit
after tax and 10% retained in the company’s account as there must be an
opening balance in the account at the beginning of each financial year.

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 Investment Analysis (Profit & Loss Analysis)

All revenue projections are based on assumptions and estimates.

1. Entire cost of the project renovation of 3 abattoirs – N 2,265,000,000

2. Operational cost of N 250,000,000 for the first 5 year.

3. If the 60% of total project cost will be provided by means of loans (i.e
N1,359,000,000.00) at interest rates of 14% for 5 years, it will generate a
total interest of N1,366,623,708.48
4. Estimated revenue generation of N 22,242,000,000.00 with 2% increase
each year.




Year 1 Year 2 Year 3 Year 4 Year 5

Revenue
22,242,000,000.00 22,686,840,000 28,358,550,000 35,448,187,500 44,310,234,375
Total Operating
50,000,000 50,000,000 50,000,000 50,000,000 50,000,000
Expenses
Gross Margin % 99.78 99.78 99.82 99.86 99.89
Profit Before
Interests, taxes &
Dues 22,192,000,000 22,636,840,000 28,308,550,000 35,398,187,500 44,260,234,375
Interest rate 14% 14% 14% 14% 14%
Interest Expense 202,955,817.69 233,265,651.35 268,102,017.06 308,140,916.33 354,159,306.05

Taxes rate 30.00% 30.00% 30.00% 30.00% 30.00%

Taxes Incurred 6,657,600,000.00 6,791,052,000.00 8,492,565,000.00 10,619,456,250.00 13,278,070,312.50

State Govt. Shares 20% 20% 20% 20% 20%
State Govt. Dues 4,438,400,000.00 4,527,368,000.00 5,661,710,000.00 7,079,637,500.00 8,852,046,875.00
Yearly Retention of
10% 10% 10% 10% 10% 10%
Retention Dues 2,219,200,000.00 2,263,684,000.00 2,830,855,000.00 3,539,818,750.00 4,426,023,437.50
Net Profit 13,112,244,182.31 13,348,838,348.65 16,717,027,982.94 20,930,771,583.67 26,201,981,318.95
Net Profit/Revenue 58.95 58.84 58.95 59.05 59.13

NET PROFIT (5 Years) N 90,310,863,416.52

Benefit of Project to the State

1. This project would create about 6000 direct and indirect jobs when fully
operational.

2. This project will provide safe, sanitised and hygienic slaughtering of meat.

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3. Revenue generation of about N30 Billion for 5 years and N90 Billion for
15 years of the project when the 3 abattoirs are fully operational for the
State.

Conclusion

Triple A Agricultural Services Limited is company created and run by people
striving to achieve and provide the best for the people and environment.
The above analysis show that the project is economically viable and analysis
show that it is a lucrative investment.

Looking at the profit and loss analysis table, the project tends to generate a
cumulative net profit of about 90 billion Naira in 5 years when the 3
abattoirs are running at maximum capacity on the 70% sharing formular.

The project will also generate a total revenue of N30 Billion for 5 years and
N90 Billion for 15 years for the State Government and a cumulative Taxes of
about N 45 billion for analysis period of 5 years.

The 3 abattoirs should have direct employment generation of well over 2000
people and indirect employment of another 4,000 people, so in each facility
alone, we should be having employment generation activities of between
1,500 to 2,000 people.

With all these, we hope our business idea and plans are convincing enough
to warrant partnership with the Kaduna State to deliver on this project.

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