Cattle Fattenin G: Bello Aliyu

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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

Business
plan on:

CATTLE
FATTENIN
G
BELLO
ALIYU

2020
TEL: 07064319306 Page | 1
AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

Contents
OVERVIEW.............................................................................................................................................3
EXECUTIVE SUMMARY...........................................................................................................................6
OUR PRODUCT OFFERINGS....................................................................................................................8
OUR VISION STATEMENT...................................................................................................................8
OUR MISSION STATEMENT................................................................................................................9
OUR BUSINESS STRUCTURE...............................................................................................................9
ROLES AND RESPONSIBILITIES.............................................................................................................10
CATTLE FARMING PROCESS.................................................................................................................16
SWOT ANALYSIS...................................................................................................................................17
WEIGHT AND COST ANALYSIS OF CATTLE............................................................................................20
MARKET ANALYSIS...............................................................................................................................21
MARKET TRENDS.............................................................................................................................21
OUR TARGET MARKET.....................................................................................................................22
OUR COMPETITIVE ADVANTAGE.....................................................................................................23
SALES AND MARKETING STRATEGY.....................................................................................................25
SOURCES OF INCOME......................................................................................................................26
SALES FORECAST..............................................................................................................................27
PAYMENT OPTIONS.........................................................................................................................28
FINANCIAL PROJECTIONS AND COSTING.............................................................................................30
FINANCIAL MODEL...............................................................................................................................31
LAON AMOUNT...................................................................................................................................33
LOAN AMORTIZATION.........................................................................................................................34
SUSTAINABILITY AND EXPANSION STRATEGY......................................................................................36

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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

OVERVIEW

Nigeria’s livestock resources consist of 14 million cattle, 34 million goats,

22 million sheep, 100 million poultry, 1 million horses and donkey as well as

negligible number of camels. The livestock plays an indispensable role in the

traditional agriculture and largely subsistence economy, the sub-sector

contributes about 15.3% of the total agricultural sector. The sector is

undergoing a massive transformation fuelled by high demand for meat, which

is likely to double in the near future, the major forces behind this, is the

combination of

population growth, urbanization and income growth.

In the recent past, there is a greater emphasis on sustainable beef

production through backyard beef fattening which has its focus on the long-

term health of the environment while maintaining the economic viability of the

farm and addressing consumers’ concern about beef they eat. Cow fattening

simply refers to the preparation of the cattle for marketing. People fatten cow

for the same reason that other men operate factories, namely to make a profit

by converting raw material which are of low value in their natural form into a

product for which there is a good demand and sell for better prices.

In Nigeria, the common breeds used in the fattening program include

Red

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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

Bororo, Ndama, Rahaji, Muturu, Sokoto Gudali, Abore and Mbala. These are

reared mostly in the tropical and sub-tropical regions of the country for beef

production. They have a body characterized by great depth and width; and

they

are bred primarily for the production of meat under special conditions. These

breeds of cattle carry considerable muscle especially around the loin. These

classes of animal possess a greater efficiency of converting poor quality forage

into a good quality protein (meat). The height of the animal has been found to

be a useful indicator of animal performance in the feedlot. Taller animals

generally grow more quickly and lay down less fat than shorter ones.

Beef cattle trade provides the largest livestock market in the country.

Millions of Nigerians made their livelihood from the beef enterprises as

producer, marketers and transporters. Others, as processors of beef products,

feed millers, veterinary services, and, in agricultural machineries. It also

generates a lot of revenue to the government through various forms of

taxations.

In-spite of all the contributions, the livestock sub-sector is a relatively

neglected part of agriculture with its supporting services collapsing well ahead

of others. Though Nigeria plays a vital role in the livestock economy of Africa,

her livestock production is not enough to meet the domestic consumption

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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

requirement. The total supply of livestock products falls short of the overall

demand. In some cases, the domestic production and noted importations are

together still not enough to meet more than 60% of the actual demand.

The economic viability of cow fattening enterprises is not in doubt. This

is because raw materials needed for the venture can be sourced at ease. Also,

the production technology is simple and the man power requirement can be

met with family labour.

However, there appears to be a major constraint to the improvement of

the local beef fattening enterprises and that is finance. The most devastating

problem confronting the African farmers is accessibility to capital. The greatest

need for present day farmers in Nigeria is capital for modernizations and

expanding their operations.

The small farmer with his small land, lack of collateral has made it

almost

impossible for him to be able to access credit.

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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

EXECUTIVE SUMMARY

Aminu Shehu Cattle Fattening is a livestock farming

company that is based at No 13 Yarkusurwa Area, Isa Local

Govt., Isa Sokoto State. We have done our detailed market

research and feasibility studies and we already have a fenced

structure and land.

Our cattle fattening business is going to be standard one

hence will be involved in commercial breeding of cows. We will

also be involved in boarding services, breeding services, dairy

support services, farrier services, and shearing services as well.

In the nearest future, hopefully within the first five years of

officially running Aminu Shehu Cattle Fattening, we will start our

meat processing plant and milk processing plant as well as

export our products to other parts of the world.

We are in the cattle fattening business because we want to

leverage on the vast opportunities available in the livestock

farming industry, to contribute our quota in growing the Nigerian

economy, in national food (meat) production, raw materials

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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

production for industries, to export agriculture produce from

Nigeria to other countries and over and above to make profit.

We have put process and strategies in place that will help

us employ best practices when it comes to cattle fattening

processes.

EXISTING STRUCTURES

The total value of our existing structures is about N13,000,000.

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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

OUR PRODUCT OFFERINGS

Aminu Shehu Cattle Fattening is a livestock farming

business that is committed to cattle fattening for Nigeria’s market

and the global market.

These are the areas we will concentrate on in our livestock

fattening business. If need arises, we will definitely add more

related animal breeding services to our list;

Boarding services

Breeding services

Livestock health services

Sale of Cattle

Shearing services

Livestock farming related consultancy and advisory services

OUR VISION STATEMENT

Our Vision is to become one of the leading cattle fattening

business brands not just in Sokoto State, but also in Nigeria.

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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

OUR MISSION STATEMENT

Our mission is to sell our produce (cattle, beef and milk),

byproducts and processed meat in commercial quantities both

locally, nationally and internationally. We want to build cattle

fattening business that can favorably compete with other leading

livestock farming / cattle fattening brands in Nigeria and in the

globe.

OUR BUSINESS STRUCTURE

Aminu Shehu Cattle Fattening is cattle fattening company

that intend starting small in Sokoto State, but hope to grow big

in order to compete favorably with leading cattle fattening and

livestock farms in the industry both in Nigeria and on a global

stage.

We are aware of the importance of building a solid business

structure that can support the picture of the kind of world class

business we want to own. This is why we are committed to only

hire the best hands in and around Sokoto.

At Aminu Shehu Cattle Fattening, we will ensure that we

hire people that are qualified, hardworking, dedicated, customer

centric and are ready to work to help us build a prosperous


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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

business that will benefit all the stake holders (the owners,

workforce, and customers).

In view of the above, we have decided to hire qualified and

competent hands to occupy the following positions; Below is the

business structure of Aminu Shehu Cattle Fattening;

General Farm Manager

Administrator / Accountant

Supervisor

Sales and Marketing Executive

Field Employees

ROLES AND RESPONSIBILITIES

General Farm Manager

Responsible for the planning, management and coordinating

all farm activities across the various sections on behalf of

the organization

Supervises other section manager

Ensures compliance during project executions


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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

Provides advice on the management of farming activities

across all section

Responsible for carrying out risk assessment

Using IT systems and software to keep track of people and

progress of the growth of crops, fishes, birds and animals

Responsible for overseeing the accounting, costing and sale

of farm produce after harvest

Represent the organization’s interest at various

stakeholders meetings

Ensures that farming goals desired result are achieved, the

most efficient resources (manpower, equipment, tools and

chemicals et al) are utilized and different interests involved

are satisfied. Responsible for preparing financial reports,

budgets, and financial statements for the organization

Responsible for overseeing the smooth running of HR and

administrative tasks for the organization

Defines job positions for recruitment and managing

interviewing process

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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

Carries out staff induction for new team members

Responsible for training, evaluation and assessment of

employees

Oversees the smooth running of the daily farming activities

across the various farming sections.

Administrator / Accountant

Responsible for overseeing the smooth running of HR and

administrative tasks for the organization

Defining job positions for recruitment and managing

interviewing process

Carries 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 financial forecasting and risks analysis.

Responsible for developing and managing financial systems

and policies
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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

Responsible for administering payrolls

Ensuring compliance with taxation legislation

Handles all financial transactions for the company

Serves as internal auditor for the company

Cattle Ranch Supervisor

Responsible for managing the commercial breeding of cattle

(cows, oxen, bulls, bullocks, steers, heifers and calf et al)

Responsible for managing boarding services, breeding

services, dairy support services, livestock health services,

farrier services, and shearing services et al.

Works closely with the General Manager to achieve the

organizations’ goals and objectives

Sales and Marketing Officer

Identifies, prioritizes, and reaches out to new partners, and

business opportunities et al

Identifies development opportunities; follows up on

development leads and contacts; participates in the

structuring and financing of new business


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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

Writing winning proposal documents, negotiate fees and

rates in line with company policy

Responsible for handling business research, marker surveys

and feasibility studies for clients

Responsible for supervising implementation, advocate for

the customer’s needs, and communicate with clients

Develops, executes and evaluates new plans for expanding

increase sales

Documents all customer contact and information

Represents the company in strategic meetings

Helps to increase sales and growth for the company

Field Workers / Contract Staff

Responsible for feeding cattle and other livestock as

instructed by the supervisor

Responsible for cleaning the cattle ranch

Change the water in the water trough / trench as instructed

by the supervisor on a regular basis

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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

Handles farm implements and machines as instructed by

the section manager / supervisor

Assists in handling the breeding of cattle

Carries out task in line with the stated job description

Assist in transport working tools and equipment from the

farm and back to the designated store room

Handles any other duties as assigned by the farm manager

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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

CATTLE FARMING PROCESS

Raising cattle involves numerous farms and operations, each

serving a unique role in the process. At each stage, we strive for safe,

high-quality beef for consumers while following best practices for raising

cattle humanely.

Purchase of Cattle

We will purchase a herd of cattle that nurture calves every 4 months. The

purchased cattle are approximately at 12 months.

Fattening

 We will wean at ten (10) to sixteen (16) months of age when they weigh

between 204.12 and 317.51 kilos. These calves are now fed in the animal

shed.

Packing Plant

 Once cattle reach market weight typically 453.592 kilos (18 months age)

we will sell them to send them to buyers or a processing facility.

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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

SWOT ANALYSIS

Aminu Shehu Cattle Fattening 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

standard cattle fattening business that will favorably compete

with leading cattle fattening / livestock farms in Nigeria and in

the rest part of the world.

As cattle fattening business, we look forward to maximizing

our strength and opportunities and also to work around our

weaknesses and threats. Here is a summary from the result of

the SWOT analysis that was conducted on behalf of Aminu

Shehu Cattle Fattening;

Strength:

Our strength as cattle fattening business is the fact that we

have healthy relationships with loads of major players

(agriculture merchants) in the livestock farming industry; both

suppliers and buyers within and outside of Nigeria and this

comes from our vast experience of several years in the business.

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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

We have some of the latest cattle fattening machines; tools

and equipment that will help us breed our cattle in commercial

quantities with less stress. Aside from our relationship (network)

and equipment, we can confidently boast that we have some the

most experienced hands in cattle fattening / livestock farming

industry.

Weakness:

Our weakness could be that we have not been practicing

with up to date trends in the business. We are aware of this and

from our projection will overcome this weakness with time and

turn it to a major advantage for the business once we obtain the

financial loan sought by the purpose of this business plan.

Opportunities:

The opportunities that are available to us cannot be

quantified, we know that there are loads of homeowners, and

industries that will source for cattle, beef, and milk and also

industries that will source for the raw materials from our

livestock farms both in Nigeria and other parts of the world.

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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

Threat:

Some of the threats and challenges that you are likely going

to face when you start your own cattle fattening are global

economic downturn that can impact negatively on household

spending, bad weather cum natural disasters (draughts,

epidemics), unfavorable government policies and the arrival of a

competitor (a commercial farm that rear same animals) as our

cattle business within same location. There is hardly anything

you can do as regards this threats and challenges other than to

be optimistic that things will continue to work for your good.

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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

WEIGHT AND COST ANALYSIS OF CATTLE

DETAIL WEIGHT (kg) VALUE IN


NIGERIAN NAIRA

Average Purchase 400 50,000.00

Parameters

Average Selling 750 140,000.00

Parameters

Difference 350 90,000

The above table shows that minimum weight of cattle before fattening is

400kg, while the value was =N=50,000.00. Similarly, the expected weight of

cattle after fattening is 750kg, while the selling price is estimated =N=150,000.

The average weight gain is expected to be around 350kg and the average

revenue after sale is expected at about =N=90,000.00.

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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

MARKET ANALYSIS

MARKET TRENDS

One of the common trends in the commercial cattle

fattening or livestock farming line of business is that most

players in the industry are no longer concentrating only on

farming a particular species of livestock or just livestock / cattle

farming alone.

They now find it easier to run both livestock farming and

crop cultivation. Some even go ahead to include meat and milk

processing and packaging business alongside their product

offerings; it helps them maximize profits in the agriculture

industry.

Despite the fact that commercial cattle fattening / livestock

farming has been in existence since time immemorial, that does

not in any way make the industry to be over saturated;

commercial cattle farmers are exploring new technology to

continue to improve cattle fattening processes and also meat and

milk preservation and packaging process. The fact that there is

always a ready market for cattle (cows, oxen, bulls, bullocks,

steers, heifers and calf et al) makes the business ever green.

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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

As a matter of fact, one of the new trends in livestock

farming industry is that with the recent advancement in

technology livestock farmers can now improve the various breeds

of the animals they are breeding. As a matter of fact, it is now

easier for livestock farmers to comfortably import the kind

of breed of domestic animal they want to breed from any

country of their choice and also advancement in technology

has made it easier to cross – breed different animal.

OUR TARGET MARKET

Naturally, the target market of those who are the end

consumer of livestock farm produce and also those who benefits

from the business value chain of the agriculture industry is all

encompassing; it is far – reaching.

Every household consumes produce from livestock farms be

it meat, milk, and the skin (leather) used for bags, belts and

shoes production et al. So also, a large chunk of manufacturing

companies depends on livestock farms for some of their raw

materials. In essence a cattle farmer should be able to sell his or

her farm produce to as many people as possible.

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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

We will ensure that we position our business to attract

consumers of agriculture produce not just in Nigeria alone but

also other parts of the world which is why we will be exporting

some of our farm produce either in raw form or processed form to

other countries of the world.

OUR COMPETITIVE ADVANTAGE

It is easier to find entrepreneur flocking towards an industry

that is known to generate consistent income which is why there

are more cattle farms in Nigeria and of course in most parts of

the world.

As a matter of fact, entrepreneurs are encouraged by the

government to embrace commercial farming / livestock farming.

This is so because part of the success of any nation is her ability

to cultivate her own food and also export foods to other nations of

the world.

Aminu Shehu Cattle Fattening is fully aware that there are

competitions when it comes to selling livestock and meats all over

the globe, which is why we decided to carry out thorough

research so as to know how to take advantage of the available

market in Nigeria and in other parts of the world.


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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

We have done our homework and we have been able to

highlight some factors that will give us competitive advantage in

the marketplace; some of the factors are effective and reliable

livestock farming processes that can help us sell our livestock at

competitive prices, good network and excellent relationship

management.

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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

SALES AND MARKETING STRATEGY

Over and above, we have perfected our sale and marketing

strategies first by networking with agriculture merchants and

companies that rely on raw materials from the livestock farming

industry who are likely to refer or become our customers.

In summary, Aminu Shehu Cattle Fattening will adopt the

following strategies in marketing our cattle fattening produce;

Introduce our business by sending our brochure to stake

holders in the agriculture industry, companies that rely on

the livestock farming industry for their raw materials, hotels

and restaurants and agriculture produce merchant et al.

Advertise our business and livestock farms in agro – allied

and food related magazines and websites

List our commercial livestock farms in local directories.

Attend related agriculture and food expos, seminars, and

business fairs et al

Leverage on the internet to promote our business

Engage in direct marketing

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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

Encourage the use of word of mouth marketing (referrals)

SOURCES OF INCOME

Aminu Shehu Cattle Fattening is in the livestock fattening

industry 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. In essence

we are not going to rely only on the sale of our livestock to

generate income for the business.

Below are the sources we intend exploring to generate

income for Aminu Shehu Cattle Fattening;

Sale of Cattle

Sale of processed meat (beef) / can – beef

Boarding services

Breeding services

Dairy support services

Livestock health services

Livestock farming related consultancy and advisory services

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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

SALES FORECAST

From the survey conducted, we were able to discover that

the sales generated by commercial livestock farm / cattle

fattening business depends on the size of the feedlot and the

network of the business.

We have perfected our sales and marketing strategies and

we are set to hit the ground running 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 operations

and build the business from survival to sustainability.

We have been able to critically examine the cattle fattening

industry cum commercial livestock farm business and we have

analyzed our chances in the industry and we have been able to

come up with the following sales forecast. The sales projection is

based on information gathered on the field and some workable

assumptions as well with respect to the nature of cattle fattening

business that we run.

Below are the projections that we were able to come up with

for the first three years of running Aminu Shehu Cattle

Fattening;
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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

 First Fiscal Year-: =N=-66,840.00

 Second Fiscal Year-: =N=5,161,632.00

 Third Fiscal Year-: =N=6,552,998.00

N.B: This projection is 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 (draughts,

epidemics), and unfavorable government policies.

PAYMENT OPTIONS

The payment policy adopted by Aminu Shehu Cattle

Fattening is all inclusive because we are quite aware that

different customers prefer different payment options as it suits

them but at the same time, we will ensure that we abide by the

financial rules and regulation of Nigeria.

Here are the payment options that Aminu Shehu Cattle Fattening

will make available to her clients;

Payment via bank transfer

Payment with cash

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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

Payment via online bank transfer

Payment via check

Payment via bank draft

In view of the above, we have chosen banking platforms that

will enable our client make payment for farm produces purchase

without any stress on their part.

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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

FINANCIAL PROJECTIONS AND COSTING

When it comes to calculating the cost of starting cattle

fattening business / commercial livestock farm, there are some

key factors that should serve as a guide. The most important

expenses is the construction of the chain links / cages / fencing

as the case may be.

For example, the start – up cost for a fish farm is different

from the start – up cost for mechanized crop farming, so also the

start – up cost for poultry farming is different from the start – up

cost of cattle ranch (dairy farm) et al. As a matter of fact, if you

choose to start a mechanized crop farming, then you should be

willing to raise huge capital base to start the business. This is so

because some cultivation machines / equipment can be pretty

expensive.

Below are some of the basic areas we will spend our start –

up capital in setting up our cattle fattening business:

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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

FINANCIAL MODEL

PARTICULARS 1st Year 2nd Year 3rd Year 4th Year 5th Year Total (N)
Total number of Feeder
68
cattle 82 98 118 141 506
Organic Manure @
25kg/cattle 408 490 588 705 846 3,036
             
CASH FLOW            
Sale of fattened cattles
for the year @ 140,000
each ₦9,520,000.00 ₦12,240,000.00 ₦14,688,000.00 ₦17,625,600.00 ₦21,150,720.00 ₦75,224,320.00
Sale of organic manure @ ₦ ₦ ₦ ₦ ₦
300 Per Wheel Barrow 122,400.00 146,880.00 176,256.00 211,507.20 253,808.64 ₦910,851.84
TOTAL ₦9,642,400.00 ₦12,386,880.00 ₦14,864,256.00 ₦17,837,107.20 ₦21,404,528.64 ₦76,135,171.84
             

VARIABLE/OVERHEAD
COST            
Purchase of Feeder ₦ ₦ ₦ ₦ ₦ ₦
Cattles 3,400,000.00 4,080,000.00 4,896,000.00 5,875,200.00 7,050,240.00 25,301,440.00
Feeding: bags of
Roughage @ ₦ ₦ ₦ ₦ ₦ ₦
3,500ngn/bag 204,000.00 244,800.00 293,760.00 352,512.00 423,014.40 1,518,086.40
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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

Feeding: bags of Kowa ₦ ₦ ₦ ₦ ₦ ₦


@3500ngn/bag 204,000.00 244,800.00 293,760.00 352,512.00 423,014.40 1,518,086.40

Feeding: bags of rice husk ₦ ₦ ₦ ₦ ₦ ₦


@600ngn/bag 34,971.72 41,966.06 50,359.28 60,431.13 72,517.36 260,245.55

Feeding: bowls of beans ₦ ₦ ₦ ₦ ₦ ₦


husks @600ngn/bowl 122,400.00 146,880.00 176,256.00 211,507.20 253,808.64 910,851.84
Feeding: bags of ground ₦ ₦ ₦ ₦ ₦ ₦
nut haulm @ 1500/bag 87,428.28 104,913.94 125,896.72 151,076.07 181,291.28 650,606.29
Feed/Mineral Salt (@ ₦ ₦ ₦ ₦ ₦ ₦
5000 NGN / week) 60,000.00 72,000.00 86,400.00 103,680.00 124,416.00 446,496.00
TOTAL ₦4,112,800.00 ₦4,935,360.00 ₦5,922,432.00 ₦7,106,918.40 ₦8,528,302.08 ₦30,605,812.48
             
FIXED COST            
₦ ₦ ₦ ₦ ₦ ₦
Chain Links & Shed 1,050,000.00 210,000.00 210,000.00 210,000.00 210,000.00 1,890,000.00
5 Staff Salary ₦ ₦ ₦ ₦ ₦ ₦
(18,000/head/month) 1,080,000.00 1,080,000.00 1,080,000.00 1,080,000.00 1,080,000.00 5,400,000.00
₦ ₦ ₦ ₦ ₦ ₦
Drug Vaccination 87,040.00 104,448.00 125,337.60 150,405.12 180,486.14 647,716.86
Record ₦ ₦ ₦ ₦ ₦ ₦
Keeping/Stationary 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00 26,000.00
₦ ₦ ₦ ₦ ₦ ₦
Key Insurnace policies 238,000.00 306,000.00 367,200.00 440,640.00 528,768.00 1,880,608.00
Water (Overhead Tank ₦ ₦ ₦ ₦ ₦ ₦
with water supply and 520,000.00 72,000.00 86,400.00 103,680.00 124,416.00 906,496.00
Page | 33
AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

pipping)
₦ ₦
Energy (Solar Power) 256,000.00 - - - - 256,000.00
Transportation (Farn ₦ ₦ ₦ ₦ ₦ ₦
Vehicle/half Canter) 1,800,000.00 500,000.00 500,000.00 500,000.00 500,000.00 3,800,000.00
₦ ₦ ₦ ₦ ₦ ₦
Tagging of Animals 10,200.00 12,240.00 14,688.00 17,625.60 21,150.72 75,904.32
Farm implement
(rainboot, gloves, bowls,
shovels Digger, wheel ₦ ₦
barrows etc) 550,000.00         550,000.00
TOTAL 5,596,440 2,289,888 2,388,826 2,507,551 2,650,021 15,432,725
             
TOTAL EXPENSES ₦9,709,240.00 ₦7,225,248.00 ₦8,311,257.60 ₦9,614,469.12 ₦11,178,322.94 ₦46,038,537.66

NET PROFITS (before tax) -₦66,840.00 ₦5,161,632.00 ₦6,552,998.40 ₦8,222,638.08 ₦10,226,205.70 ₦30,096,634.18

LAON AMOUNT

The total amount requested for the establishment of this business plan is the amount highlighted in green in the
table above which is a total sum of =N= 9,709,240.00 (nine million, seven hundred and nine thousand, two hundred
and forty thousand naira only).

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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

LOAN AMORTIZATION

YEAR 1 Monthly YEAR 2 Monthly YEAR 3 Monthly YEAR 4 Monthly YEAR 5 Monthly
ITEMS Deposit= Deposit= Deposit= Deposit= Deposit=

MONTHLY DEPOSIT ₦
AMOUNT> 169,911.70 ₦ 182,124.10 ₦ 196,542.26 ₦ 214,968.10 ₦ 244,526.21
OPENING DEBT (5%
LOAN CHARGES ₦ ₦ ₦
INCLUSIVE) 10,194,702.00 8,741,956.97 ₦ 7,075,521.42 5,159,234.37 ₦ 2,934,314.55
₦ ₦ ₦ ₦
JANUARY 10,024,790.30 8,559,832.86 6,878,979.16 4,944,266.27 ₦ 2,689,788.33
₦ ₦ ₦ ₦
FEBRUARY 9,854,878.60 8,377,708.76 6,682,436.90 4,729,298.17 ₦ 2,445,262.12
₦ ₦ ₦ ₦
MARCH 9,854,878.60 8,377,708.76 6,682,436.90 4,729,298.17 ₦ 2,445,262.12
₦ ₦ ₦ ₦
APRIL 9,684,966.90 8,195,584.65 6,485,894.63 4,514,330.07 ₦ 2,200,735.91

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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

₦ ₦ ₦ ₦
MAY 9,515,055.20 8,013,460.55 6,289,352.37 4,299,361.97 ₦ 1,956,209.70
₦ ₦ ₦ ₦
JUNE 9,345,143.50 7,831,336.45 6,092,810.11 4,084,393.87 ₦ 1,711,683.49
₦ ₦ ₦ ₦
JULY 9,175,231.80 7,649,212.34 5,896,267.85 3,869,425.78 ₦ 1,467,157.27
₦ ₦ ₦ ₦
AUGUST 9,005,320.10 7,467,088.24 5,699,725.59 3,654,457.68 ₦ 1,222,631.06
₦ ₦ ₦ ₦ ₦
SEPTEMBER 8,835,408.40 7,284,964.14 5,503,183.33 3,439,489.58 978,104.85
₦ ₦ ₦ ₦ ₦
OCTOBER 8,665,496.70 7,102,840.03 5,306,641.06 3,224,521.48 733,578.64
₦ ₦ ₦ ₦ ₦
NOVEMBER 8,495,585.00 6,920,715.93 5,110,098.80 3,009,553.38 489,052.42
₦ ₦ ₦ ₦ ₦
DECEMBER 8,325,673.30 6,738,591.83 4,913,556.54 2,794,585.28 244,526.21
₦ ₦ ₦
CLOSING DEBT 8,325,673.30 6,738,591.83 ₦ 4,913,556.54 2,794,585.28 -₦ 0.00

Page | 36
AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN

SUSTAINABILITY AND EXPANSION STRATEGY

The future of a business lies in the numbers of loyal

customers that they have the capacity and competence of the

employees, their investment strategy and the business structure.

If all of these factors are missing from a business (company), then

it won’t be too long before the business close shop.

One of our major goals of starting Aminu Shehu Cattle

Fattening is to build a business that will survive off its own cash

flow without the need for injecting finance from external sources

once the business is officially running.

We know that one of the ways of gaining approval and

winning customers over is to sell our farm produce a little bit

cheaper than what is obtainable in the market and we are well

prepared to survive on lower profit margin for a while.

Page | 37

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