OIL SEEDS FARMING & PROCESSING
BUSINESS PLAN
Executive Summary
Nkayi South Ward 30 residents intend to
register and be licensed for food processing
project co-operative starting with, peanut
butter & sunflower oil, production projects
which will be based in Nkayi South Ward 30
Zimbabwe.Detailed market research and
feasibility studies have been done and
Peanut butter grinding machine borrowed
from Alpha Omega Jubane to start Peanut
Butter or food processing project.
Vertical integration will be applied to crops
that grow well in ward 30 ,hence we will
construct structures that accommodate
suitable equipment of food processing
equipment.
We are in the food processing business
because we want to leverage on the vast
opportunities available in the agriculture
industry, to contribute our quota in growing
Zimbabwe economy, in national food
production, to export processed agriculture
produce from Zimbabwe to other countries
and over and above to make profit.
Ward 30 residents are well positioned to
become one of the leading food processing
co-operatives in Zimbabwe, which is why we
have been able to source for the best hands
and machines to run the business with. We
have put processes and strategies in place
that will help us employ best practices when
it comes to food processing and packaging
as required by the regulating bodies in
Zimbabwe.
The project will be managed by Alpha
Omega Jubane at least for a period of time
until expansion and further advice from the
Zanu pf youth leadership.
Vision
Our vision is to become the leading &
vertical integration agribusiness brand in
Zimbabwe with a goal of dominating the
global market .
Mission
Our mission is to establish a world – class
perfectly co-ordinated food processing
business that will make available a wide
range of foods and raw materials to top
manufacturing brands at affordable prices
to the residents of Zimbabwe and other
countries of the World
Our Products
We are in business to produce peanut butter
& cooking oil in commercial quantities.We
will also ensure that we operate a standard
food processing and packaging plant as
part of our complimentary business
Our Business Structure
Ward 30 residents food processing project
is a business that intends starting small in
Nkayi Ward 30, but hopes to grow big in
order to compete favorably with leading
commercial food processing companies in
Zimbabwe. We are aware of the importance
of building a solid business structure that
can support the kind of world class
business we want to own.
At Ward 30 food processing project we will
ensure that we train people to be qualified,
hardworking, dedicated, customer centric
and ready to work to help us build a
prosperous business that will benefit all the
stake holders.
As a matter of fact, profit-sharing
arrangement will be made available to all
households and it will be based on their
performance for a period of five years or
more as agreed by the management of the
project. In view of the above, We have
decided to structure our staff to occupy the
following positions;
Chief Operating Officer
Project Manager
Administrator/Accountant
General hand Workers
Sales and Marketing Officer
Front Desk Officer
JOB ROLES
Chief Executive Officer – CEO:
 Increases management’s
effectiveness by recruiting, selecting,
orienting, training, coaching,
counseling, and disciplining
managers;
 communicating values, strategies,
and objectives;
 assigning accountabilities;
 planning, monitoring, and appraising
job results.
 Creating, communicating, and
implementing the organization’s
vision, mission, and overall direction
– i.e. leading the development and
implementation of the overall
organization’s strategy.
 Responsible for fixing prices and
signing business deals
 Responsible for providing direction
for the business
 Responsible for signing checks and
documents on behalf of the project
 Evaluates the success of the
organization
General Project Manager
 Responsible for the planning,
management and coordinating all
activities across the various
sections on behalf of the project
 Supervise workers
 Ensure compliance during project
executions (especially in processing
plants et al)
 Providing advice on the
management of project activities
across all sections
 Responsible for carrying out risk
assessment
 Using IT systems and software to
keep track of people and progress of
production
 Responsible for overseeing the
 accounting, costing and sale of
project produce.
 Represent the projects’s interest at
various stakeholders’ meetings
 Ensures that project goals desired
result are achieved, the most
efficient resources (manpower,
equipment, tools and chemicals et al)
are utilized and different interests
involved are satisfied.
 Carrying out induction for new team
members
 Responsible for training, evaluation
and assessment of employees
 Oversee the smooth running of the
daily activities across the various
sections.
Administrator/Accountant
 Responsible for overseeing the
smooth running of HR and
administrative tasks for the project
 Defining job positions for
recruitment and managing
interviewing process
 Carrying out staff induction for new
team members
 Responsible for training, evaluation
and assessment of employees
 Responsible for preparing financial
reports, budgets, and financial
statements for the organization
 Responsible for developing and
managing financial systems and
policies
 Responsible for administering
payrolls
 Ensuring compliance with taxation
legislation
 Handles all financial transactions for
the company
 Serves as internal auditor for the
company
General Workers
 Responsible for planting and
harvesting crops as required by the
manager or supervisor
 Responsible for weeding in and
around the project fields
 Responsible for watering and
applying manure (organic fertilizer)
or inorganic fertilizer as instructed
 Assist in loading harvests to
processing plants
 Work closely with the General
Manager to achieve the
organizations’ goals and objectives
SWOT ANALYSIS
Nkayi ward 30 project do not intend to
launch out with trial and error hence the
need to conduct a proper SWOT analysis.
We know that if we get it right from the
onset, we would have succeeded in creating
the foundation that will help us build a
standard commercial food processing
project that will favorably compete in
Zimbabwe and globally.We are quite aware
that there are several food processing
plants all over Zimbabwe however not in
the same location where we intend locating
ours, which is why we are following the due
process of establishing a business.We
know that if a proper SWOT analysis is
conducted for our business, we will be able
to position our business to maximize our
strength, leverage on the opportunities that
will be available to us, mitigate our risks and
be equipped to confront our threats.
Alpha Omega Jubane is an expert in project
management with bias in engineering and
commercial farming industry.He will help
conduct a thorough SWOT analysis and to
help create a Business model that will help
the ward to achieve its business goals and
objectives.
Here is a summary from the result of the
SWOT analysis that was conducted on
behalf of Nkayi ward 30
Strength:The strength of a food processing
company is the fact that it has healthy
relationships with loads of major players in
the agriculture industry both within and
outside Zimbabwe.
We have some of the food processing tools
(peanut butter machine, cookie gun and
charcoal oven) and equipment that will help
begin in commercial quantities with less
stress. Aside from our relationship and
equipment, we can confidently boast that
we have some the most experienced hands
in the business under our ward.
Weakness:Our weakness could be that for
now we lack economies of scale and we
don’t have our own bigger plant for cooking
oil processing plant (we hope to build one
within the first 12 months of operation). We
have been able to put up structures that will
help us overcome this initial setback within
the shortest time frame.
Opportunities:An increase in the price of
cooking oil positively affects returns at the
market; as the price of cooking oil
increases, farmers collect higher revenue
because changes in price do not drastically
affect demand. Price fluctuations reflect
supply levels, downstream processing
activity, global demand activity and several
other factors.
With all other things equal, an increase in
the price of our processed products will
garner higher revenue for industry operators,
so long as cost increases can be passed on
to consumers to protect profit margins. The
price of our major product (cooking oil) is
expected to rise this year, representing a
potential opportunity for the industry.
Threat:The sanctions and economy
sabotage might stall our project, however
we have busting strategies to manoeuvre
through and build prosperous and profitable
business
Average annual rainfall in Zimbabwe
typically does not move far from its annual
mean; still, unpredictable weather patterns
can have drastic effects on the industry.
Average annual precipitation is anticipated
to decrease this year, posing a potential
threat to the industry.
MARKET ANALYSIS
Market Trends
If you are conversant with rising technology
and scientific development in the agriculture
industry, you will quite agree that
commercial farming model is at the front
burner. Commercial farming is rapidly
gaining entrance in our world today.
Commercial farming gives room for greater
control over the growing environment of
various crops. Dependent upon the
technicality and specification of design,
some of the important factors which may
be controlled include yields, seed quality,
irrigation, fertilizer application, and
atmospheric humidity et al.
Basically, going commercial can overcome
shortcomings in the growing qualities of a
piece of land, such as a short growing
season. In essence, commercial methods
are designed to improve crop production in
marginal environments.
Please note that while per-capita
consumption of cooking oil has trended
down, especially among rural areas,
population increases, better quality and
higher prices have allowed the industry to
hold its ground in revenue terms and
achieve growth.
Retail giants like Pro Bands and Roil have
placed an emphasis on expanding their
selection of oil seeds, especially of soyi
varieties. However, these large chains have
used their market power to impose higher
quality standards and drive down returns to
growers.
The damage has been somewhat mitigated
by bringing produce to a wider consumer
base, but there is limited scope for growing
sales by expanding access. The strong
performance of the industry before
sanctions drew many new participants in.
However, Finance Ministry estimates
that the number of farms growing sunflower
has shrunk.
So also, if you are a close observer of the
trends in the oil seeds farming industry, you
will agree that the sunflower farming
industry is anticipated to increase due to
increasing consumer health consciousness,
which has led to increasing demand for low
cholesterol oil produce.
While per capita cooking oil consumption
has remained stable over in recent time, the
price of cooking oil have increased as
consumers demand premium, fresh oil
varieties.
So also, the number of both small and large
farms have been increasing. Small, local
plots like ward 30 can benefit from the
sunflower production, while large,
commercial oil seed farms are improving
labor efficiency. Going forward, players in
the oil seeds farming industry will continue
to increase revenue generation for their
business.
OUR TARGET MARKET
The end consumer of cooking oil produce
and also those who benefit from the
business value chain are all encompassing.
Every household consumes cooking oil in
different forms. In essence a commercial oil
seed farmer should be able to sell his or her
farm produce to as many people as
possible.
We will ensure that we position our
business to attract consumers not just in
Zimbabwe alone but also other parts of the
world which is why we will be exporting
some of our cooking oil either in raw or
processed form to other countries. In
essence, our target markets are;
Food packaging companies
Caterers
Restaurant operators
Hotels
Households
Pizza production companies
OUR COMPETITIVE ADVANTAGE
Nkayi South Ward 30 food processing
project is fully aware that there are
competitions when it comes to selling
cooking oil, which is why we decided to
carry out thorough research so as to know
how to take advantage of the available
market. We have done our homework and
we have been able to highlight some factors
that will give us competitive advantage in
the marketplace.
Other competitive advantage lies in the
power of our team; our workforce. We have
a team of
hardworking and highly proficient sunflower
farmers. Aside from the synergy that exist
in our carefully selected team members, we
are working to have some of the latest and
efficient farm machines and equipment and
we will be guided by international best
practices in the industry.
Another competitive advantage that we are
bringing to the industry is the fact that we
have designed our business in such a way
that we will operate a standard commercial
food processing plant that will be involved
in diverse areas such as cooking oil, peanut
butter soya mince processing and
packaging. With this, we will be able to take
advantage of all the available opportunities
within the industry.
Lastly, all ward 30 households will be well
taken care of, and their welfare package will
be among the best within our category in
the industry. It will enable them to be more
than willing to build the business forward
and help deliver national development
strategy set goals and achieve all our
business aims and objectives.
SOURCES OF COME
Nkayi South ward 30 is in the Sunflower,
Soya and Peanuts farming as well as food
processing business for the purpose of
maximizing profits hence we have decided
to explore all the available opportunities
within the industry to achieve our corporate
goals and objectives. Below are the sources
we intend exploring to generate income for
Nkayi South Ward 30.
Cultivation of Sunflower, Soya Beans and
Peanuts.
Processing and packaging Cooking Oil and
Peanut butter.
SALES FORECAST
From the survey conducted, we were able to
discover that the sales generated by a
commercial Sunflower, Soya and Peanuts
farming depends on the hacterage.
We have perfected our sales and marketing
strategies and we are quite optimistic that
we will meet or even surpass our set sales
target of generating enough income/profits
from the year of operation and build the
business from survival to sustainability.
We have been able to examine oil seed
industry, we have analyzed our chances in
the industry and we have been able to come
up with the following sales forecast. Below
are the projections that we were able to
come up with for the first three years of
running.
First Fiscal Year (FY1): $600,000
Second Fiscal Year (FY2): $1200,000
Third Fiscal Year (FY3): $2400,000
N.B: This projection was done based on
what is obtainable in the industry and with
the assumption that there won’t be any
major economic meltdown that can impact
negatively on household spending, bad
weather cum natural disasters, and
unfavorable government policies. Please
note that the above projection might be
lower and at the same time it might be
higher.
MARKETING & SALES STRATEGY
We are quite aware that the reason why
some oil seeds farmers hardly make good
profits is their inability to sell off their farm
produce as at when due. In view of that, we
decided to set up a standard Oil seed
processing plant to help us maximize
profits.
Our sales and marketing team will be
recruited based on their vast experience in
the industry and they will be trained to meet
their set targets and the overall business
goal of Nkayi South ward 30.
We intend to perfect our sales and
marketing strategies first by networking
with agriculture merchants, hotels,
restaurants, supermarkets, grocery stores
and companies that rely on raw materials
from the industry. In summary, Ward 30
project, will adopt the following strategies in
marketing our products;
Introduce our business by sending
introductory letters alongside our brochure
to stake holders in the food processing
industry, supermarkets, grocery stores,
hotels and restaurants et al.
Advertise our business and tomatoes in
agro – allied and food related magazines
and websites
List our commercial projects on yellow
pages ads
Attend related agriculture and food expos,
seminars, and business fairs et al
Leverage on the internet to promote our
business
Engage in direct marketing
Encourage the use of Word of mouth
marketing (referrals)
STARTUP COSTS
When it comes to calculating the cost of
starting a oil seeds farming, and oil
processing plant there are some key factors
that should serve as a guide. The most
important expenses is the tilling and oil
press mill and expenses of fencing the plots.
In view of that, here are some of the basic
areas we will spend our startup capital in
setting up our commercial oil seed farming;
need an average of three hundred and fifty
thousand dollars ($350,000) to start a
standard commercial oil seed farm and
plant in Zimbabwe.

The total fee for incorporating the business

in Zimbabwe – $. GENERATING FUNDS/STARTUP CAPITAL
FOR OIL SEEDS PROCESSING AND
FARMING CO-OPERATIVE

The total cost for payment of insurance
policy covers (general liability, workers’
compensation
and property casualty) coverage at a total
premium – $
The amount required for preparing the farm
land – $
The cost for acquiring the required working
tools and equipment / machines / fencing
et al – $
The amount required for purchase of the
first set of seeds, manure (fertilizer) and
pesticides et al – $
Nkayi South ward 30 co-operative will be
owned and managed by elected commitees.
We intend to restrict the sourcing of the
startup capital for the business to just three
major sources.
Generate part of the startup capital from
Government grants
Generate part of the startup capital from
community clubs and other donors
Generate a larger chunk of the startup
capital from the bank (loan facility).

The amount required to set up a standard

oil seed processing plant within the ward –
$

Operational cost for the first 3 months – $

The cost of launching an official website –

$

The amount required for payment of

workers for a period of 3 months – $

Additional Expenditure (Business cards,

Signage, Adverts and Promotions et al) – $

Going by the report from detailed research

and feasibility studies conducted, we will