Sabru Farms | Livestock | Farms

BUSINESS PLAN For SABRU FARMS & ALLIED SERVICES CONCEPT

ALIYU N. MUSA

Sabru Farms

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TABLE OF CONTENT Page 1.0 Executive Summary 2.0 The Business Concept 3.0 Business Model/Strategy 4.0 Product and Service 5.0 Industry and Competition 6.0 The Market 7.0 Milestone 8.0 Management and Ownership 9.0 Business Risk and Mitigating Factor 1 6 7 8 9 11 12 13 14

Sabru Farms

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It has done several rounds of production. off Masaba Road Bida. 2. chicken.58M while current production is just enough to serve not more than 40% of the existing market. the Niger State capital for the obvious reasons of proximity to market etc.W. 1.0 Value Proposition Sabru Agro-allied ventures is established on the values of truth. utilizing modern state – of – the – art technology and skilled personnel for the continued improvement of our products and pursuing a growth rate of 25% quarterly for the ultimate development of all stakeholders.2 Vision and Mission Statement To become a world class agricultural.2 Development Strategy The business will peruse a vertical integration strategy. 2. Currently the business can be valued at N480. food (crop) and sweeteners for global food security. At phase two a cereal farm will be set up to grow corn Sabru Farms Page 3 .00 and an only pen with maximum capacity of 200 birds. integrity.1 Company Description Sabru Agro Allied Ventures commenced business operation in 2002 producing only poultry. S. agro-allied Business Outfit by the year 2030 engaged in the production of high quality livestock. 81 Estu Yisa Quarters. Niger State.0 Overall perspective The value of the current existing market for protein products generally (beef. Mission To create value for our customers through quality products at competitive prices. It is located at No. The company now desires to activate and develop its cattle fattening section for the production of beef. 000. It was registered as a company on. Phase one will focus on broiler and eggs production.00 only. However. 2. 000. trustworthiness and social responsibility founded on God consciousness borne out of the conviction that ultimately we shall return to Him. This is to be pursued in three phases. poultry and fish) amounts to approximately N8. the cattle section is to be located at Minna.1 Current Status The business started operation with a start up capital of N40. 1.Executive Summary 1.

Also. Community-based groups Page 4 IV. the lifestyle of most Nigerian households have changed with wives taking up paid employments thereby bringing about change in domestic purchasing pattern due to the need for such stuffs that are ready for use in meals preparation. National Examination Commission (NECO). The livestock section of Sabru Farms is located at Kadna Village via Tungan Goro. 000. This. While N5. III. All these are favourable to further growth and development of the market for meet. the specific target market for our product includes the following: I. Butchers within Minna and neighbouring towns. College of Education.000 would be required to start the cattle farm.3 Development expenses estimate. The farm will produce raw materials for the feed mill and the cattle fattening section.1 The Opportunity There has been a steady increase in number of hotels and fast food companies in major cities of the country. II. the mill will produce feeds for the poultry while both the poultry and the cattle farms will provide manure fertilizing the cereals farm.g. Tungan Mallam. Sabru Farms . 2. 000.and soya beans while the final phase is for the establishment of cattle fattening section and a chicken feed mill. These strategic phases can be developed either simultaneously or at varying times depending on availability of funds.0 Target Market Description 3. Minna. Minna. Local cattle markets within Niger State and environs such as Mariga. Lambata etc. Similarly. Staff Cooperative and Multi-purpose Societies of State and Federal Institutions e. The cost of executing the strategy is estimated at N50. 3. Therefore. 000.00 only. in addition to change in the structure of the population with larger number of youth and adolescents has the tendency to support increase in demand for beef and other meet products. the extension of working hours because of involvement in multilevel income generating activities has the potential to increase patronage of restaurants and food canteens. IBB University etc.

5 Distribution/Channel strategy Direct delivery approach will be used. we shall operate sales outlets for beef at strategic Sabru Farms Page 5 . We shall convey cattle to local markets and all the other clients as earlier indicated above. This is to enhance effective supervision and control as well as incur lower overhead expenses. removal of outer skin and thoroughly washing the beef before packaging kilogram sizes. It commenced operation in 2002 and was registered with the Corporate Affairs Commission on March 8th. 4. This is dressed by slaughtering. Individuals and group purchases for ceremony and festivities. Hygienic processing and packaging of beef to eliminate or drastically reduce bacterial contact and contamination in order to enhance healthy consumption.2 The Business Model With the above indices the organization intends to go into cattle farming and has developed a simple business structure.0 Product and Service 4. So. Sale of beef in kilogram in order to give our clients satisfaction for their money. 4. Out of our recognition of their status as living things. all efforts must be made to keep costs at the reasonably low level without compromising quality. 4. We also intend to sale hygienically packed meat.1 Product description The product is mature cattle. we shall convey our products in trucks in accordance with humane and international standard without subjecting them to degrading conditions.4 Current stage of development.V. 3.2 Pricing strategy This is market driven. 4. 2010. 4. The business is already into production of poultry.3 Differentiation from existing products Constant examination and use of appropriate Medicare on our cattle shall be the organisation’s corporate practice. In addition.

activities in the industry are not new. some restriction in the entry into the industry. Sandas and Tunes farms were established within late 70s and early 80s while Zartec.6 Sales/Marketing Strategy Direct e-marketing approach will be used to establish relationship with our target customers. This is because of the highly structured nature of the customers. has been left in the hands of fulanis and small time mixed farmers. This is because sustainable operation in the industry requires patience. 4. However. Obasanjo. 5. In the north few of this kind of farms can be found only sporadically spread across Niger. There is generally a wrong perception among people that Livestock farming is a venture that every individual who has the interest can go into. Folawiyo. It can be said that Livestock farming is a relatively old occupation and can be traced to the Operation Feed the Nation Agric programme of the then Military Government (1976-1979). Fresh beef can also be picked up from our butchery measured in different sizes (in kgs). This approach will thus be used to break such barriers in order to bring our products to their notice. Smaller farm holdings that exist are concentrated in the southern part of the country. We would also sell full grown cows at attractive prices. While restaurants are contacted and their orders taken. expertise and experience while large scale involvement is capital intensive. over time. Only about five major (large) farm holders exist in this country. Plateau and Kaduna State with an only hatchery in Kaduna. So. except in large farms which are few and scattered in the country. For individual household and restaurants direct sales is the strategy adopted. the level of its development in large scale operation is still low. Therefore. But the fact is that it is not an industry that venturing into Sabru Farms Page 6 . Suleja. This is done in different ways.0 Industry and Competition 5. Hence. though.1 Industry Cattle raring is relatively old an occupation which. Chi (Ajanla) and UAC farms came into existence in the 90s. modern technology is under-utilized. People come to the site of the pen to purchase whatever quantity they desire.locations (as may be approved by the authorities) in Minna. which they use to create barrier against smaller businesses. the quantity ordered for is prepared and delivered thereafter. Bida and Kontagora.

there is room for a serious entrant who has prepared himself to operate effectively and contribute his quota. Sabru Farms Page 7 . the industry is not yet developed to full capacity. But this fact is covert that people realize it only after starting with the business. Hence. Therefore. One is the fact that it involves dealing with delicate creatures that expertise and experience is very essential. Equality the implements are expensive particularly when standard quality is to be emphasized.it is quite easy. Similarly. industry entry and effective sustained operation is not easy. although people wake up reason is that it is capital intensive. It requires abundant fund to be able to provide enough feeds to avoid animal starvation between breeding periods. Therefore. This is for two major reasons.

000.000. However.5. These are hotels.e. This can be categorized as below. fast food outfits/restaurants and household. 5. hotels and fast food providers.00 7.00 5.107.844. There are three major categories of customer that make up the market.00 3.640.5 billion per annum.906.376.736.4 Customers.202.2 Competition. The number of the fist two groups is increasing continuously in our major cities while the third group also has the potential for improvement due to increase in roles and consequent income improvement.200.00 1. despite the contribution of the industry to the effort to meet protein requirement of Nigerians.00 3. These sources do not Nigerians of a consistent source of meat. because the major farms or producers have not covered even up to 60% of the entire market.736. The structure of such customers which is very organized also puts then at advantage as it forms a barrier against smaller businesses.737.3 Market place Conservatively. Industry competition cannot be said to be fierce.486.910.00 3. Approximately only 40% of this has been covered so far.00 19. Some other key players in the market are the Fulani whose cattle is thought of as family and is not eager to slaughter as meat and mixed farmer who has only dominated one particular segment of the market i. total value of the market for livestock products can be estimated at N8.842. Customers Hotels Fast food providers Households Total Requirement (kg) Total value (N) 8.894.715. while directing their patronage to these larger producers.010. significantly discernible product differentiation by us can be a huge competitive advantage.394. leaving household consumers not properly serviced.00 8.920. Sabru Farms Page 8 .

6.6. Aliyu N. Hence. the vision nursed by the initiator requires huge financial outlay to accomplish or actualize.1 Prompters/Ownership of business The business was established as a sole professorship initiated by Mal. Cleaner And Security Attendants (Layers) Farm Attendant Farm attendant (Corn) (Soya Beans) Attendants (Cattle) Sabru Farms Page 9 ./Admin Manager Livestock Manager Cattle Fattening Manager (Cereals) Adm. This huge financial requirement can only be met when the capital and ownership structure is modified. Accountant Secretary Cashier Office Assistant Attendants (Broiler) Drivers.0 Management and Ownership 6. Musa having the sole ownership. Off.2 Organizational Structure SABRU AGRO VENTURE ORGANOGRAM Board of Directors General Manager Manager Fin. However. while the initiators shall retains the remaining 35% ownership. the business will be incorporated as a limited liability company creating opportunity for interested individuals to subscribe for participation for up to 65%.

Aliyu N. Opportunities Growth in hospitality industry Change in household consumption pattern Ban on importation of frozen foods including beef and poultry products Increase in roles and the consequent income improvement.Musa (General Manager) B. 3.3 Key Management Staff 1. Weaknesses  Limited funds  Limited knowledge of diseases and symptoms  Inadequate expert involvement     4. Mal.Sc Sociology 1990 PGD Computer Science 1998 PGD Management 1999 Fate AEP 17 Student 2005 MPPA 2010 2.1 SWOT Analysis 1. Ismail Bala [Farm Supervisor (on commission)] HND Animal Science 2003 Abdullahi Ndagi Abubakar [Farm Attendant (on commission)] Diploma. Initiator’s personnel management skills Readiness to hire personnel with relevant expertise Initiator’s positive emotions about innovation Initiator’s acquisition of entrepreneurial skills Business policy of focus on logical execution of the development strategy 2. Strengths Initiator to succeed in taking the business to great heights Readiness to acquire basic knowledge and skill relevant to the business.6. Threat  Inflation  Fluctuation in feeds availability following changes in agricultural fortunes Page 10 Sabru Farms . 3. Public Admin 1999 7 Business Risk and Mitigating factor 7.

new castle etc. management would ensure that principal officers keep abreast with the developments relating to those diseases that are prevalent at the pathogenic feature and mode of transmission of such conversant with nature. This risk shall be mitigated effectively by the prompt administration of vaccines at the appropriate age and stage of growth. 8. which always leave gap in people’s purse. coccidiousis. Traditionally.g. Sabru Farms Page 11 .1 Major Risks and Mitigants The major risk facing Livestock farming in particular and livestock business generally is the current increase attacks. In addition. be it religious or socio cultural so there is no such need that could warrant extra demand. Two factors could be deducted to be responsible for this situation. During this period there is always so much supply of Livestock product while the demand is very low. Also. adequately spacious facilities would be provided so as to avoid congestion. This was followed by the most recent bird flu that attacks domestic birds in the Asian countries. This is clearly evidenced by the recent experience at the International scene beginning with the break out of mad cow disease in Europe. Similarly. fowl cholera. For infections that have tendency for vaccine failure e. First is that this is not a period of any festivity. litters would be cleared constantly at shore regular intervals. However. The second risk is market gloat. These infections have the tendency for transnational transmission. birds can be vaccinated against all of these infections. Unsteady power supply  Fluctuation in the prices of petroleum products 8. management skills of when there is any outbreak.0 Environmental Consideration Both political and economic environment is favourable to meet production business. there are vital viral diseases that can cause enormous loss in Livestock farms. Related to this is that the period is mostly preceded with religious and social festivities. Government policy of banning imported poultry products and the development of hospital industry create more conducive environment for the industry. This occurs annually between February and March. gumboro. Both of these factors create conditions favourable for the outbreak of disease. vaccination would be repeated to forestall such possibility. These include fowl pox.

the Nigerian economy is still dominated by Government activities such that the beginning of the year all major business transaction and thus trips are suspended until Government business begins to pick up and people are able to reliably determine the direction of economic activities. Based on this primary knowledge it is the policy of management to structure its production process such that this period would fall within the breaking period of the company. This way we would be able to avoid the effect of this phenomenon. Sabru Farms Page 12 .Secondly.

000.000.000 Farm Manager Cattle rearers TOTAL FIXED COST DESCRIPTION Cost of building Livestock Pen Cost of renovating Livestock pen Office Supplies Marketing & Advertising Travel/Transportation Feeding Equipment Communications-internet and calling cards Mortality allowance(2.000.00 N300.00 N236.00 N150.000.250. BREAK EVEN ANALYSIS: The management of SABRU FARMS is determined to make profit while providing quality service.000.00 NGN 13.00 N2.00 N240.000.000.000 Salary-annual(N) Year 2 Salaryannual(N) Year 3 600.000. Here all anticipated costs are seen in summary and the prospect of embarking on the business becomes visible.00 70 NGN 90.560.00 LABOUR COST Role Number of persons 1 2 5 Salary-annual(N) Year 1 600.500.000.00 Page 13 .000 240.00 N2.000 600.250.00 N300.000 360. break even analysis show how much income you must earn to pay your expense.00 N240.000.250.000 1.000.000.900.100.00 N0.00 N2.00 N450.000 1.000.000.FINANCIALS This is where SABRU FARMS count her chicken before the hatch while confirming that all her strategies and concepts yield profits.00 N250.00 N200.00 N800.208.00 DURATION YEAR 1 YEAR 2 YEAR 3 NGN 8.00 50 NGN 90.000. We are poised to assure investors return on investment. REVENUE PROJECTIONS EXPECTED INCOME NO OF CATTLE UNIT COST TOTAL INCOME 30 NGN 90.00 N300.560.750.00 N0.00 N200.000.000 240.000.00 N240.000.000.00 N500.000.541.000.00 NGN 18. The financial is the result of all other sections.000.250.00 N200.000.00 N300.000.00 N1.00 YEAR 2 YEAR 3 N0.00 N0.00 N200.726. After twelve months SABRU FARMS starts making profit on her investment.750.000 1.00 N168.000.000.800.00 N300.5% of cost of cattle) Vaccine and Medical care for cattle TOTAL Sabru Farms YEAR 1 N800.00 N101.

00 N35.00 YEAR 3 N240.000.00 N820.000.00 N250.000.000.00 N21.00 N25.000.666.000.850.00 N500.000.000.750.00 N9.67 YEARLY N840.00 N200.666.00 N800.00 N562.00 N16.00 N640.00 N420.00 N0.00 N540.000.500.833.00 N200.00 N252.00 N690.000.000.000.00 WORKING CAPITAL-YEAR 2 DESCRIPTION MONTHLY Salaries and wages Cost of feeds Cost of purchasing 50 cattle Office Supplies Marketing and Advertising Transport and Travel Vaccine and Medical care for cattle Communication TOTAL N70.833.000.000.000.350.00 N112.00 N250.00 WORKING CAPITAL.000.000.00 N3.67 N66.000.00 N20.000.00 N300.00 YEAR 2 N240.000.00 N240.666.33 N25.000.000.000.YEAR 1 DESCRIPTION MONTHLY Salaries and wages Cost of feeds Cost of purchasing 30 cattle Office Supplies Marketing and Advertising Transport and Travel Vaccine and Medical care for cattle Communication TOTAL N70.000.000.000.00 N450.00 N240.00 N300.000.00 N300.000.00 N327.000.000.00 N6.33 YEARLY N840.67 N25.932.00 N300.00 N0.67 N41.00 N150.666.000.000.00 Sabru Farms Page 14 .000.000.000.500.000.00 N20.000.666.00 N16.67 N20.00 N1.EQUIPMENT COST DESCRIPTION Office Supplies Feeding Equipment Vaccine and Medical care for cattle TOTAL YEAR 1 N240.

00 N0.300.00 N13.March 2011 Current Assets Cash Accounts Recievable Inventory Prepaid Expenses Total Current Assets Fixed Assets Land Building Furniture Fixtures less acumulated depreciation Total Fixed Assets other Assets Total Assets Liabilities Current Liabilities Accounts Payable N0.00 N202.000.188.840.000.00 N25.333.00 N0.000.000.67 N83.00 N20.000.00 N7.00 Balance Sheet For August.000.000.00 N0.300.000.000.099.300.000.2010.00 N16.042.00 N240.00 N0.00 N0.500.WORKING CAPITAL-YEAR 3 DESCRIPTION MONTHLY Salaries and wages Cost of feeds Cost of purchasing 70 cattle Office Supplies Marketing and Advertising Transport and Travel Vaccine and Medical care for cattle Communication TOTAL N80.00 N202.33 N37.000.00 N7.000.340.00 Sabru Farms Page 15 .00 N0.00 N588.000.00 N300.00 N200.000.00 N787.00 N0.000.00 N9.00 N49.000.00 N450.00 YEARLY N960.500.00 N8.666.000.00 N1.00 N500.000.00 N1.450.

642.642.300.00 N5.400.042.000.00 N0.300.642.00 N1.000.00 Sabru Farms Page 16 .000.00 N5.300.00 N5.400.00 N8.300.00 N2.Accrued Payroll Taxes Payable Long Term Liabilities Total Current Liabilities Net Worth Share Holders Equity Retained Earnings Total Net Worth Total Liabilities And Net Worth N0.000.00 N1.

Sabru Farms Page 17 .

00 N675.744.000.400.920.300.00 N456.777.00 N565.00 N0.000.000.00 N675.00 N0.00 N0.00 N0.00 N565.777.00 N675.259.00 N0.000.00 N4.600.00 N0.00 N0.00 N0.00 N675.00 N675.257.920.000.00 N580.000.000.000.000.500.500.00 N337.00 Cash Disbursements Expenses Cost of Goods Operating Expenses Commisssions Loan Payments N0.00 N565.00 N0.000.00 N4.00 N675.500.000.78 N67.000.000.00 N0.00 N0.00 N580.00 N0.522.00 N675.00 N1.00 N0.00 N10.500.00 N337.00 N0.00 N3.300.00 N565.00 N5.500.00 N675.00 N0.00 N458.00 N565.777.500.00 N0.00 N2.00 N337.00 N0.00 N0.00 N202.00 N337.00 N675.362.78 N67.00 N5.00 N1.209.400.00 N675.00 N190.000.00 N580.500.00 N0.000.000.00 N337.000.00 N0.500.000.000.46 N540.000.00 N1.000.00 N580.000.000.000.500.000.00 N580.500.00 N0.000.000.00 Sabru Farms Page 18 .00 N565.500.00 N1.78 N67.00 N461.78 N67.00 N675.00 N456.000.00 N0.000.00 N565.000.00 N675.000.000.00 N2.000.465.777.00 N1.00 N675.00 N0.000.00 N3.000.00 N0.000.00 N675.00 N675.000.000.78 N67.500.00 N675.00 N580.500.300.00 N0.000.00 N2.300.00 N4.00 N337.78 N67.00 N460.256.077.00 N0.78 N67.600.000.000.00 N3.00 N5.000.00 N0.00 N0.00 N675.000.000.500.260.00 N337.000.955.777.Cash Flow Projections Representing the Duration it would take to pay back loan Installment 1 Installment 2 Installment 3 Installment 4 Installment 5 Installment 6 Installment 7 Installment 8 Total Cash Receipts Income From Sales Cash Sales Collections Total Cash From Sales Income From Financing Interest Income Loan Proceeds Total Cash From Financing Other Cash Receipt Total Cash Receipt N675.000.00 N675.500.00 N456.000.00 N67.00 N580.777.00 N580.500.00 N2.00 N458.000.000.000.00 N0.

822.731.00 N3.359.777.575.Income Tax Payments Equipment Purchase Installation Of Equipment Reserve Total Cash Disbursement N144.00 (N1.78) (N1.44 N1.820.78) (N1.388.78) N0.722.166.78) N1.000.00 N1.691.78) (N2.78) (N1.000.260.00 N250.00 N0.00 N1.78 N144.22 N1.000.000.00 N0.824.777.777.66 N600.000.00 N0.613.00 N0.824.000.691.00 (N1.68) N675.00 N1.00 N0.522.000.822.820.244.000.00 N0.777.000.500.777.000.00 N1.68) (N2.944.777.777.000.00 N0.777.166.78 N144.777.820.777.500.297.000.00 N10.00 N0.90) N675.78 N1.000.145.00 (N315.00 N0.00 (N851.822.66 N1.00 N0.777.944.777.00 N0.145.777.00 (N1.777.731.00 N250.000.46) Ending Cash Balance N2.000.00 N0.88 N675.00 N0.00 N250.00 N0.388.00 N640.00 N144.613.00 N0.00 (N1.259.00 N1.836.00 N250.777.78) (N565.820.000.88 (N545.000.077.300.00 N1.257.00 N851.78) N600.00 N0.465.78 N144.820.78) (N565.46 Net Cash Flow N2.46) Opening Cash Balance Cash Receipt Cash Disbursements N0.78 N144.78) N2.00 N2.00 N1.777.000.90) (N1.359.00 N640.822.00 N0.166.820.00 N13.300.297.500.000.388.166.166.575.000.000.077.00 N1.836.000.00 N1.78) N1.00 (N1.00 N0.00 (N13.613.78) (N545.166.944.777.777.000.388.244.000.944.44 N1.00 N250.46) Sabru Farms Page 19 .00 (N1.722.78) (N1.145.777.00) N2.256.00 (N1.22 N1.000.78) (N565.78 N144.500.78 N144.00 N250.500.500.152.

250.00 N200.450.000.662.000.000.000.012.000. N168.000.00 N800.250.000.00 N0.000.00 N96.000.000.00 N8.00 N84.00 N0.000.000Each for 4 staff and N50.00 For Vet Services N10.00 N240.00 N300.00 N0.00 N252.DESCRIPTION YEAR 1 YEAR 2 YEAR 3 SUMMARY salaries for five staff (N25.000.417.000.184.00 N240.00 N240.00 N150.00 N1.00 N300.00 N960.00 N3.00 N13.000.00 N13.750.302.000.000.500.000.250.00 N200.00 Estimated sale of two cows and 70kg of beef per day N1.000.767.000.250.100.00 N300.00 N840.500.00 N236.00 N84.00 N101.820.000.500.00 N420.00 N6.000. radio jingles and Tv adverts travels for marketing and transportation of Cattle and beef for sale Cost of Feeding trays and watering cans Salaries & Wages Staff Bonuses(10% of salaries) Cost of building Livestock Pen Cost of renovating Livestock pen Cost of purchasing cattle Cost of feeding livestock Office Supplies Marketing & Advertising Travel/Transportation Feeding Equipment Communications-internet and calling cards Mortality allowance(2.00 N332.000.00 N0.00 N250.900.750.000.00 N300.050.000.00 N1.00 N200.250.00 N9.00 N4.000.000.000.00 N18.000.00 N588.000 for manager) End of year bonus for staff Required to construct livestock pen Required for repairs of livestock pen Cost of purchasing cattle to be fattened(Year 1=30.00 N450.000.750.750.Year 3=70) Cost of purchasing livestock feed for the year Purchase of office stationery Printing of flyers posters.00 N0.000.000.750.00 N800.000.00 N200.00 N7.000.000.00 internet subscription and calling cards.00 N2.5% of cost of cattle) Vaccine and Medical care for cattle TOTAL OPERATING COST EXPECTED INCOME PROVISION FOR TAXES PROFIT AFTER TAX N840.00 N300.Year 2=50.000.00 N500.00 Sabru Farms Page 20 .

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