Executive summary
The main purpose of buffalo farming is to produced high quality milk,meat and others dairy products. Hence fat percentage is high in milk and lean meat can be produced from buffalo that’s why it is more preferable compared with beef and mutton. Besides this,skin can be used in leather industry and manure can be used as fertilizer & also helps to develop Biogas plant.My farm will be located on a 5 acre plot in the rural side,with 8- 10 employees with initial funding secured through a combination of personal investment & a small business loan.About 45 lakh BDT are required to starting my farm whereas 40 lakh will come through bank loan and the resting 5lakh BDT is personal. Initially the target of my farm will be produced milk about 150liter per day and 450 liter milk will be produced in per month.By which I can earn about 6lakh from my farm in per month from which the net profit will be about 1-1.5 lakh BDT.Marketing and sales will be done through various social media marketing and Online selling and buying websites. Discussing various issues with the experts related to this farm how to expand farming.
Business Description
I will start with a herd of 20 buffalos focusing on breeds known for high milk yield &meat quality .I want to rear them in semi-intensive system,in which they have facility for pasturing.Number of people can work in different sector of buffalo farming & support their families.
Farm name- Heritage Buffalo Farm
Location – Bakshiganj, Jamalpur
Mission Statement:
Collection of milk per day = 2000 -2500 liter
Conception rate per year = 70-80 %
According to the profit level, I will expand my farm area and the number of employees.
Vision:
1.Creating self employment facilities and elimination of unemployment .
2.Production of dairy products including dahi,ghee,powder milk etc
3.Contribute to National GDP.
History:
Buffalo farming is not yet conventional in Bangladesh but it has huge prospect because of low maintenance cost, high quality protein and huge demand of dahi and meat.
Objectives
*To Produce milk with high fat percentage for manufacturing cheese, ghee, dahi and others dairy products
*To fulfill the demands of milk, meat of local communities
*To Produce lean meat that are suitable for all ages
*In future, to expansion of the market in locally & internationally
*They can also be used in drought purpose
*To improve herd quality sothat next generation will be healthy and conception rate will be high.
- To create stable source of income for rural people
*To develop employment opportunities – including veterinary services, salesman, AI technician etc. - To retain high quality protein and essential nutrients for food security.
Administrative leadership roles:
Manager:
*Production control - Inventory management
*Supply chain management - Capacity planning
- Production planning and scheduling
- Quality control
- Production equipment maintenance and repair
- Measurement and monitoring of productivity
- Industrial relations.
- Staff selection
Leading products or services : milk & ,reproduction rate
Competitive Analysis/The Opportunity:
There is no major competitors in our country hence lack of proper knowledge about buffalo farming. But nowadays some people established new farming and they provide milk,meat, other products. And also try to fulfill consumers demand.
Market research and industry analysis
Strategy :- The main sources of buffalo breeds are Indian sub continent and Pakistan.Others materials and equipments will be collected from local market.
- Produced milk will be in three pack sizes of 10 gm 250gm,500gm, and 1 kg.
- As per the order schedule, the products will be delivered to the customers within 24 to 48 hours through public transport.
Sustenance of growth:
If we can ensure the highest quality of milk, meat and calf , it is possible to meet the demand of consumer as well as export it abroad. As a result, the company will be able to capture a large market of meat, milk and by products in abroad and convert it into an export industry.
SWOT analysis
Strength –
*Low maintenance and production cost. - Favourable weather condition
- Highly resistance to diseases
*Fat % is high in milk
Weakness –
*Lack of proper knowledge about farming
*scarcity of land for cultivating fodders
*Distribution channel is not highly developed
*Market fluctuations
Opportunity –
*There is no major competitors. - It is possible to create a powerful marketing channel easily if we create awareness among people.
- Packaging, storage and delivery of the product does not require any special procedures
- High quality buffalo breeds are available in nearby countries including India and Pakistan
Threats –
*Political and economic instability.
*Social misconception
*Climate change impact
The team
Top-level Management : Managing Director (MD),Veterinarian
Middle- level Management : Manager, AI technician , store keeper cum supplier.
Lower-level Management : milk man , Laborer , Security Guard.
Marketing plan
*To identify target market and supply high quality buffalo products in local restaurants, grocery stores,sweetmeats and local markets. - Selling my products through online in our country and also abroad.
*To build up strong relationship with customers to retain customers in long term and to gain reliability.
*To build good relations with foreign countries by making more quality products. - To inform customs about new products & special offers through e-mail,bloggers and youtubing.
Operation plan - The manager will always alert about working scheduled and monitoring everyone whether they are working properly or not.
- Manager will inform MD of working updates from time to time.
- The labourers will come in the morning and carry out their duties properly.
Workers wil transfer the products from farm to consumers through proper distribution channels. - The manager will assign the daily target to the production officer as per the order schedule.
- The manager should maintain proper record keeping.
- The manager will look for new suppliers, customers and try to build business relationships with them. Maintain regular communication and updates with existing customers and suppliers.He will provide innovative ideas on how to the business can expand and consult with the MD.He will also look after the overall security of the factory and office and regularly check the CCTV footage.
- The security guards will perform their duty shift by shift
Financial plan - Own land = 5 acre
- Hand cash = 500000taka
- Bank loan = 4000,000taka (with 13%interest) through giving mortgage on jewellery and 5 acre land area.
Establishment cost (Start-up cost) : - Construction cost
(Housing, office,stuff room, and store room) = 800000taka
•Sustainable Buffalo breed =2600000 taka
- Generator = 50000taka
- Furniture and office equipment = 150,000taka
- Milk Chilling plant =50,000taka
- Protective equipment=30,000taka
Emergency fund=200000taka
Total=39300,00taka
Fixed cost:
Staff salary (Per month)
- Manager -1 =30,000Taka
Veterinarian -1=40000 taka - Technician officer -1 =20,000Taka
- Store keeper cum supplier -1 =18,000taka
- Laborer- 3-(12000 ×3) =36,000taka
- Security Guard-1. =10,000taka
Total=1,54,000taka
Bank loan return with 13% interest = 52000taka
Variable Cost:
Animal cost = 100000 taka
Feeding cost = 50000 taka
Maintenance and other cost = 50,000taka
Indirect cost (Per month): - Electricity =30,000taka
Total cost = 436000taka per month
Income:
Price of milk (per day) = 20000 taka
Total price of milk (per month) = 600000 taka
Total income ( per month) = 7000000 taka
Net profit = Total Income – Total cost ( per month)
=600000-436000 taka
=164000 taka - Calf selling price ( per year) = 100000 taka
Critical Risks
Risk Assessment
Health risks:Disease outbreak among the herd.
Market risks:Fluctuation in demand for buffalo products.
Operational risks:Delays in construction or equipment failure
MILESTONE SCHEDULE
From my buffalo farm , it is possible to earn about 25 lac taka of profit per year initially. In this way, break even point can be reached within 2 years. Later, I can expand my farm by increasing more investment and service area.
Within 2 years: I will be able to take my farm in a stronger position within 2 years.
Next 5 years: I will include more new services including biogas plant,leather industry and thus way my farm reach in a unique height.
Appendix
Land purchase agreement: Copy of the land purchase contract.
Vendor Contracts: Agreements with suppliers for feed, veterinary services & equipment.
Financial Statements: Detailed startup costs, projected income & expense statements.
Marketing Materials :Samples of branding, advertising & promotional content.