Executive summary
The main purpose of sheep farming is to produced high quality wool, milk, meat and others dairy products. Hence protein percentage is high in milk and lean meat can be produced from sheep that’s why it is more preferable compared with beef and chevon .Besides this, skin can be used in leather industry and manure can be used as fertilizer & helps to develop Biogas plant. Sheep move in groups that’s why it is very easy to rare.My farm will be located on a 3 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 40 lakh BDT are required to starting my farm whereas 35lakh 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,Wool production 10000tk per month.By which I can earn about 6 lakh from my farm in per month from which the net profit wiil be about 2-2.5 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:
Farm Name: Green Valley sheep farm
Location: Kachua, Bagerhat
I will start with a herd of 150 sheeps focusing on breeds known for high milk yield , high quality wool &meat quality .I want to rear them in semi-intensive system,in which they have facility for pasturing.Large number of people can work in different sector of sheep farming & support their families.
Mission Statement:
Collection of milk per day = 1000 -2000 liter
Collection of wool per month= 500 kg
Conception rate per year = 80-90%
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.Produce high quality woollen products
4.Contribute to National GDP.
History:
Sheep farming is not yet conventional in Bangladesh but it has huge prospect because of low maintenance cost, high quality protein and huge demand of wool and meat.
Objectives:
*To produce high quality wool for the textile industry and supply for clothing, carpets, blankets and fabric products
*To Produce milk with high fat percentage for manufacturing cheese, ghee, dahi and others dairy products
*To fulfill the demands of wool,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
*To improve herd quality so that 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 ,wool & ,reproduction rate
Competitive Analysis/The Opportunity:
There is no major competitors in our country hence lack of proper knowledge about Sheep farming. But nowadays some people established new farming and they provide milk,meat, wool and other products. And also try to fulfill consumers demand.
Market research and industry analysis
- Location:
Different samples of milk ,wool manufacturing company and garments - Profession:
Wool harvester and processor,breeding specialist, feed and nutrition specialist and owner of another farming.
Market Analysis and Size:
Global market value of sheep farming was about at CAGR of 1.6% over the past 5 years and is expected to reach USD $802.2 million during the forecast period of 2022-2030.
Strategy :
- The main sources of sheep breed are Indian subcontinent and Pakistan.
*Others materials will be collected from local market. - The milk will be produced in three pack sizes of 10 gm, 250gm and 500gm
- 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
*Provide high quality wool makes a strong market position - Favourable weather condition
- Highly resistance to diseases
*Protein % 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
- Increasing consumer interest in organic wool products creates a market opportunity
Threats –
*Political and economic instability.
*Social misconception
*Climate change impact
*Growing popularity of synthetic fibers poses a threat to wool demand
The team:
✓Top-level Management : Managing Director (MD), Veterinarian
✓Middle- level Management : Manager, AI Technician,wool processor,store keeper cum supplier.
✓Lower-level Management :wool harvester,milkman,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 schedule and monitoring everyone whether they are working or not
✓Manager will inform MD of working updates from time to time.
✓The labour will come in the morning and carry out their duties properly
✓Workers will transfer the products from farm to consumer 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 = 3 acre
- Hand cash = 500000taka
- Bank loan = 3500,000taka (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) = 500000taka
•Suitable sheep breed =2000000 taka - Generator = 20000taka
- Furniture and office equipment = 150,000taka
•Wool processing equipment =50,000taka - Protective equipment=20,000taka
Emergency fund=100000taka
Total=28400,00taka
Fixed cost:
Staff salary (Per month)
- Manager -1 =30,000Taka
Veterinarian -1=40000 taka - Technician officer -1 =18,000Taka
- Store keeper cum supplier -1 =15000taka
- Laborer- 5-(10000 ×5) =50000taka
- Security Guard-1. =10,000taka
Total=1,63,000taka
Bank loan return with 13% interest = 45500 taka
Variable Cost:
Animal cost = 100000 taka
Feeding cost(per month)= 40000 tk
Maintenance and other cost = 30,000taka
Indirect cost (Per month): - Electricity =10000taka
Total cost = 398450taka per month
Income:
Price of milk (per day) = 15000 tk
Total price of milk(per month) = 450000 tk
Price of wool(per month)= 100000
Total income ( per month) = 6400000 tk
Net profit = Total Income – Total cost ( per month)
=640000-398450tk
=241550 tk - Lamb selling price ( per year) = 100000 tk
Critical Risks:
Risk Assessment
Health risks:Disease outbreak among the herd.
Market risks:Fluctuation in demand for sheep products.
Operational risks:Delays in construction or equipment failure
MILESTONE SCHEDULE: - From my sheep farm, it is possible to earn about 25 lac tk of profit per year initially. In this way, break even point can be reached within 2year. Later, I can expand our business by increasing more investment and service area.
- Within 2 years: I will be able to take my farm in a strong position within 2 years.
- Within 5 years: I will include more new services including biogas plant, wool industry, garments etc 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.