PUTTING UP A CATTLE FEED PLANT
Introduction
Cattle feed plant is a place where cattle feeds are manufactured from. The need for balanced cattle feed forms an essential part of the intensive cattle development program. What is proposed is the setting up of cattle feed manufacturing plant using local products like maize, millet and wheat. The business idea aims at production of 300 kgs of cattle feeds per day. The revenue potential is estimated at US$ 400 annually while total capital investment for the project is US$7,250.
Plant Capacity
The plant in this profile has a minimum capacity of 300 kgs of cattle feed per day thus 93,600 kgs per annum.
Production Process
The process involves reduction in size and blending of various ingredients by using a dis-integrator to reduce to the size of the required mesh size which is uniformly mixed with vitamins, minerals by a ribbon blender. Molasses are added and then the mix is extruded to get pallets of the finished product, which are packed in gunny bags for marketing.
Market Analysis
With agricultural modernization and diversification, there is a
good future and solid potential for growth. Thus market for cattle feeds is
guaranteed except the need for sensitization of the local population. The
market cuts across farmers with large herds of cattle. The main investers include;
Biyinzika enterprises, Kagodo Farmers, Nuvita Ltd, Sekalala Farmers
Enterprises, Ugachic among others.
Scale of Investment
1. Capital Requirements in US$
|
Capital Item |
Units |
Qty |
Unit Cost |
Amount |
|
Ribbon blender |
No |
1 |
2,950 |
2,950 |
|
Gyrator shifter |
No |
1 |
2,000 |
2,000 |
|
weighing machine |
No |
1 |
800 |
800 |
|
gunny bag sealing machine |
No |
1 |
1,000 |
1,000 |
|
Dis-integrator |
No |
1 |
500 |
500 |
|
Total |
7,250 |
2. Production and Operation Costs in US$
|
Cost Item |
Units |
Unit |
Qty |
Prod |
Prod |
Prod |
|
Direct costs3: |
||||||
|
Maize |
Kgs |
0.15 |
100 |
15 |
390 |
4,680 |
|
Wheat brand |
Kgs |
0.15 |
100 |
15 |
390 |
4,680 |
|
Oiled rice brand |
Kgs |
0.16 |
50 |
8 |
208 |
2,496 |
|
Molasses |
Kgs |
0.75 |
50 |
37.5 |
975 |
11,700 |
|
Groundnut cake |
kgs |
0.2 |
50 |
10 |
260 |
3,120 |
|
Mineral mixture |
Kgs |
2 |
20 |
40 |
1040 |
12,480 |
|
Gunny bags |
No |
0.1 |
200 |
20 |
520 |
6,240 |
|
Subtotal |
3,783 |
45,396 |
||||
|
General Costs (Overheads) |
||||||
|
Labour |
300 |
3,600 |
||||
|
Utilities |
300 |
3,600 |
||||
|
Selling and Distribution |
100 |
1,200 |
||||
|
Administrative expenses |
150 |
1,800 |
||||
|
Shelter |
300 |
3,600 |
||||
|
Depreciation (Asset write off) Expenses |
151 |
1,813 |
||||
|
Sub-total |
1,301 |
15,613 |
||||
|
Total Operating Costs |
5,084 |
61,009 |
3. Production is assumed for 312 days
per year.
4. Depreciation assumes 4 year life of assets written off at 25% per year for
all assets.
5. A production Month is assumed to have 26 days.
3. Project Product Costs and Price Structure
|
Item |
Qty |
Qty/yr |
Unit |
Pdn/yr( |
Unit |
T/rev($) |
|
Cattle feed |
300 |
93,600 |
0.7 |
61,009 |
1.5 |
140,400 |
|
TOTAL |
93,600 |
61,009 |
140,400 |
4. Profitability Analysis Table
|
Item |
Per |
Per |
Per Year |
|
Revenue |
450 |
11,700 |
140,400 |
|
Less: Production &Operating Costs |
196 |
5,084 |
61,009 |
|
Profit |
254 |
6,616 |
79,392 |