Cattle Fattenin G: Bello Aliyu
Cattle Fattenin G: Bello Aliyu
Cattle Fattenin G: Bello Aliyu
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
22 million sheep, 100 million poultry, 1 million horses and donkey as well as
is likely to double in the near future, the major forces behind this, is the
combination of
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.
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
into a good quality protein (meat). The height of the animal has been found to
generally grow more quickly and lay down less fat than shorter ones.
Beef cattle trade provides the largest livestock market in the country.
taxations.
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,
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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.
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
the local beef fattening enterprises and that is finance. The most devastating
need for present day farmers in Nigeria is capital for modernizations and
The small farmer with his small land, lack of collateral has made it
almost
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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
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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN
processes.
EXISTING STRUCTURES
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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN
Boarding services
Breeding services
Sale of Cattle
Shearing services
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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN
globe.
that intend starting small in Sokoto State, but hope to grow big
stage.
structure that can support the picture of the kind of world class
business that will benefit all the stake holders (the owners,
Administrator / Accountant
Supervisor
Field Employees
the organization
stakeholders meetings
interviewing process
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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN
employees
Administrator / Accountant
interviewing process
employees
and policies
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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN
business opportunities et al
increase sales
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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN
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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN
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
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)
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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN
SWOT ANALYSIS
with trial and error hence the need to conduct a proper SWOT
Strength:
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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN
industry.
Weakness:
from our projection will overcome this weakness with time and
Opportunities:
industries that will source for cattle, beef, and milk and also
industries that will source for the raw materials from our
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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
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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN
Parameters
Parameters
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
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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN
MARKET ANALYSIS
MARKET TRENDS
farming alone.
industry.
steers, heifers and calf et al) makes the business ever green.
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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN
it meat, milk, and the skin (leather) used for bags, belts and
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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN
the world.
to cultivate her own food and also export foods to other nations of
the world.
management.
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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN
business fairs et al
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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN
SOURCES OF INCOME
Sale of Cattle
Boarding services
Breeding services
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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN
SALES FORECAST
we are set to hit the ground running and we are quite optimistic
Fattening;
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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN
industry and with the assumption that there won’t be any major
PAYMENT OPTIONS
them but at the same time, we will ensure that we abide by the
Here are the payment options that Aminu Shehu Cattle Fattening
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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN
will enable our client make payment for farm produces purchase
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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN
from the start – up cost for mechanized crop farming, so also the
expensive.
Below are some of the basic areas we will spend our start –
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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
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
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AMINU SHEHU (TEL: 07064319306) – CATTLE FATTENING BUSINESS PLAN
Fattening is to build a business that will survive off its own cash
flow without the need for injecting finance from external sources
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