Executive Summary
Business Name: Prime Beef Fattening Farm.
Location: Jhenaidah ,Khulna Division, Bangladesh.
Business Overview: Thus, the scope of business of Prime Beef Fattening Farm is set to be a premier supplier of quality beef to the people of Bangladesh. Demand for beef is increasing and Bangladesh has suitable climatic condition for cattle rearing, thus this farm will primarily concentrate on fattening of cattle profitably and profitably. There is initial stock of 50 cattle of which the farm intends to expand to 200 abreast within 3 years.
Objectives:
– Acquiring a cattle stock of 200 within the next three years.
– Sustain a healthy growth and achieve the best of beef production.
– Practical that should be put in practice include; Promoting the sustainable farming practices that is environmentally friendly.
– Deepen the good rapport with local markets and the units that deal with the processing of meats.
Financial Goals:
– Minimum investment of BDT 5000, 000 at the start of setting up the business.
– Make profit at breakeven level in first one and half year of its operation.
– Obtain a turnover of BDT 12,000,000 within the third year of its commence.
Business Description
Industry Overview: The consumption of beef has been growing in general in Bangladesh having direct positive correlation with the income levels & shift in dietary habits. The consumption of beef is on the rise and this means that there is a good market out there for those in the cattle fattening industry.
Business Model: The final direct customers for the products of Prime Beef Fattening Farm will be the local markets, meat processors and direct consumers of fattened young calf after a period of 6-12 months. In this business, a rotation system will be applied such that fattened cattle for the market will always be available throughout the year.
Key Success Factors:
– Superior genotypes of cattle that grow fast.
– Immature stressful and very often inadequate feeding and management practices.
– Small and effective market networks and sales techniques.
– Risk management and disease control, within a time frame.
Operations Plan
Location and Facilities: Climatically suitable place and nearness to the major markets are available , it is identified as the place of the farm. The farm will be equipped with:
– Spacious cattle sheds.
– Feed storage facilities.
– Treatment and isolation section.
– Sanitation and hygiene, water and sanitation, public health, and water and sanitation services.
Farm Management:
Cattle Acquisition: Buy the calves from the right source or from the right dealers.
Feeding and Nutrition: It is necessary to achieve a balanced diet plan for the animals through feeding them by using local feed resources.
Health Management: Geographical mobility, routine health check and hindrances including vaccinations and disease control.
Labor Management: Ensure one hires experienced farm workers and ensure that the are trained after some time.
Production Plan:
Initial Phase: Of these, 50 would go into growing at a very fast rate and gaining weight.
Growth Phase: Once these profits have been attained, the size of the herd should also be gradually increased with the help of profits.
Maturity Phase: The ranch was considered stable with a cattle turn over of about 200 after a cyclic management idea was implanted.
Management
Management Team:
Managing Director: Management of PGS business activities and accounting to the Board of Directors of the Company.
Farm Manager: Manages day to day running of the farm activities, cattle handling and employees.
Finance Manager: They are responsible for the management of the financial plan, financial budgeting, Accounting and financial reporting and control.
Sales and Marketing Manager: The responsibilities of this role include coming up with the sales plan and conducting marketing within the company.
Human Resources Manager: Recruits, trains its people, maintains relations with employees, and exercises corporate governance in labor laws.
Veterinary Consultant: Covers cattle health, diseases and their management, and caring for animals.
Operational Staff:
Farm Workers: Petty jobs involve: Feeding of the cattle, cleaning of the animals and maintenance of all animal’s health.
Administrative Staff: Concerns with paperwork, filing, data recording and management, responding to customer inquiries.
Legal structure of business
1. Name Reservation:
– Check with RJSC (Registrar of Joint Stock Companies and Firms) to check the availability of the first choice of the company’s name.
– It is recommended that the company name be reserved with RJSC.
2. Prepare Documentation:
Memorandum of Association (MoA): Presents a company’s goals and its planned fields of operation as well as its capitalization.
Articles of Association (AoA): Describes the internal structure of the company with regards to the shareholders’ meetings, directors and the various processes.
Director Identification: Add director’s details, identification, and consent details of the directors.
3. Incorporation Application:
– The MoA, AoA and other necessary documents have to be submitted back to the RJSC.
– Deposit the required amount of registration fees according to the stated authorized capital.
4. Obtain Incorporation Certificate:
– Upon its application approval, RJSC will then give the Certificate of incorporation, to formally recognize the existence of the company.
5. Post-Incorporation Compliance:
Company Seal: Acquire official seal of the company.
TIN Registration: It has to then obtain a Tax Identification Number (TIN) from the National Board of Revenue (NBR).
Trade License: An applicant should secure a trade license from the relevant municipal council.
VAT Registration: If so relevant, Value Added Tax (VAT) registration should be done with the NBR.
Bank Account: Its a good idea to open a business account at a bank in the companies name.
Social Security and Employee Benefits: Other related bookings include registration for social security schemes and most employees’ benefits.
Market Analysis
Market Segmentation:
1. Local Markets: Examining the ways which fresh beef can be supplied in the local markets of Gazipur and Dhaka.
2. Meat Processors: Selling in quantities to processing companies that deal with meat products.
3. Direct Consumers: Serves the export market of multi-territory consumers seeking better quality beef.
Target Market: The major-markets to be targeted will be our domestic markets and meat processing units that would involve supply- chain contracts. We will also use direct selling for high margin, high quality products for the finer end of the market.
Market Trends:
– The rise in the consumption of meat to feed the population as a result of economic enhancement.
– They include; increased demand for high quality beef that is sourced locally.
– An increase in concern for environmental issues that include climate change and-an increase in concern for sustainability and ethical farming practices.
SWOT Analysis:
Strengths: The factors include availability of quality feed, skilled human resource, location of premises and demand for its products.
Weaknesses: JOINT REVIEW OF FINANCIAL AND STRATEGIC NEEDS * Funds required as start-up capital, contingency for diseases breakouts.
Opportunities: The development of the company’s product portfolio in the processed meat products; the export prospects for the Soviet economy.
Threats: shifting of prices means that the market demands may drastically change; * policies and legislations that dictate the industry change; * competition from other sources of protein.
Unique selling proposition
- Premium Quality Beef.
- Superior Breeds.
- Nutrient-Rich Feed.
- Strict Health Protocols.
- SUSTAINABLE AND ETHICAL SYSTEMS OF FARMING METHODS.
- Eco-Friendly Operations.
- Animal Welfare.
- Organic Options.
- Community-Centric Approach.
- Local Employment.
- Support for Local Farmers.
- Educational Initiatives.
- Transparency and Traceability.
- Full Traceability.
- Open Farm Policy.
- Convenient and Direct Sales Channels.
- Direct-to-Consumer Sales.
- Customized Orders.
- Subscription Service.
Strategic Location:
Proximity to Markets: Now based in Gazipur we are well placed to quickly and effectively deliver our product to the principal markets and consumers in Dhaka and beyond.
Accessibility: Proximity to the transport networks guarantees that the supply chain processes are on time thus reducing on delayed receival of supplies hence freshness.
Marketing and sales strategy
Branding:
– Build up the logo, making it concentrate on quality, environmental, and domestic production appeal.
– Always make sure that the packages you have and the branding materials also appeal to the public.
Sales Strategy:
– Open direct sales outlets with the local markets and abattoirs.
– Develop a website for products and services targeted for the consumer’s direct purchase and ordering.
Pricing Strategy:
– Affordable prices for local markets to be established and the large buyers.
– High price to target the consumers and stress on quality and freshness of food items.
Promotion Strategy:
– Maximize the creation and the use of social media and web based advertisements to tap the potential clients.
– Sponsor our products in local fairs and in agricultural related merry-making occasions.
– Competitive and attractive prices and frequent customers’ discounts will also stimulate customers to buy more.
Financial Plan
Startup Costs:
Land and Infrastructure : 1,500,000.00 BDT
Cow Purchase Trick: 1,000,00 BDT
Feed & Supplements: 500,0000 BTD
Veterinary Care: 200,000 BDT
Labor Costs: BDT 300,000
Miscellaneous: BDT 100,000
Revenue Projections:
Year 1: BDT 4,000,000
Year 2: BDT 8,000,000
Year 3: BDT 12,000,000
Profit and Loss Projections:
Year 1: Net Loss ( startup costs)
Year 2: Breakeven
Year 3: BDT 2,000,000 (Net Profit)
Break-Even Analysis: Break even in 18 months and the ongoing incremental increase in sales and herd size.
Funding Requirements: Initial capital from own savings, bank loans and possible investors: BDT 5,000,000.
Risk Management:
Market Risks: Diversify sales channels and maintain competitive pricing.
Operational Risks: Implement robust health and safety measures.
Financial Risks: Maintain a contingency fund and monitor cash flow regularly.