Agribusiness Project - DOC

							                        BUSINESS PLAN
                             FOR

     KARO CORN
AGRIBUSINESS PROJECT
       - KCAP -

            EXECUTIVE SUMMARY
                     by: MAHLI SEMBIRING
                       JL PINTU AIR IV/457
              MEDAN, NORTH SUMATRA - INDONESIA
                        +62 - 08138 058 2064
                 E-mail: msassociates@centrin.net.id

               Web site: http://www.agrimaskapitalindo.com

                                     Presented to:



   This business plan – executive summary contains information that is not to be shared,
copied, disclosed or otherwise compromised without the consent of Agrimas Kapitalindo.
                      BUSINESS PLAN
    KARO CORN AGRIBUSINESS PROJECT
                  Table of Contents
Executive Summary
            Introduction                      1
            Mission Statement                 1
            Key Considerations                1
            Marketing Objectives              2
            Expected Accomplishments          2
            Required Capital                  2

The Business
            Purpose Statement                 2
            Description of the Business       2
            History of the Business           4
            Founder of the Business           5
            Management & Operations           5
            Regulations & Licensing           6
            Objectives                        6

Market Analysis
            Market Research                   7
            Target Market                     7
            Competition                      10
            Customer Profile                 12

Marketing
            Objectives                       14
            Unique Selling Benefit           14
            Selling Tactics                  14
            Pricing                          15
            Channels of Distribution         16
            Advertising                      17
            Promotions                       19
            Publicity and Public Relations   19


The Product
            Product Decisions                20
            Production                       21
            Inventory                        21
            Quality Control                  22
The Service
              Service Description                      23
              Related Products                         23

Operations
              Operations Analysis                      24
              Location & Facilities                    24
              Technology/R&D                           25
              Sourcing                                 25
              Labor                                    25
              Cost Control                             26

Risks
              Description of Risks                     28
              Contingency Plans                        28

Finances
              Assumptions                              30
              Sources and Uses of Capital              30
              Balance Sheet                            31
              Cash Flow Statement                      32
              Income Statement                         32
              Break Even Analysis                      32
              Ratio Analysis                           33

Conclusion
              Justification for Loan/Investment/Etc.   35
              Milestones/Implementation Timetable      35

Appendix
              Market Segments table and chart
              Sales Targets table and chart
              Balance Sheet table
              Cash Flow Statement table and chart
              Income Statement table and chart
                     EKSEKUTIVE SUMMARY


Introduction

       The purpose if this business plan is to acquire financing to Karo Corn
Agribusiness Project (KCAP), which will be used for growing operations to buy
services and input to prepare field, seed, fertilizer, pest and disease control, up
keep and maintenance the plants, harvesting, post harvesting processing and
transportation.
       KCAP plan to start new corn plantations up to 50,000 Ha located at Karo
District North Sumatra Province Indonesia, to produce 50,000 – 70,000 tons
shelled yellow corn monthly to supply raw material to Animal Feed Mill near
locations.
       For this purpose, KCAP needs monies up to US$ 10 million either equity
or loan and repayment scheduled up to 5 years. We offer 20% fixed return or
interest annually in arrear, and together with principal repayment progressively in
end of year 2, 3, 4, and 5 amounts to US$ 1million, 2million, 3million and 4million
respectively.
       To secure these financing, we offer pledged of in field and store stocks,
Account Receivable or Direct Payment from Customer to Funder. To back up
return/interest payment and principal repayment to Funder, we offer two step
collateralize plantations land.   More, Funder may assign his employee to
supervise this project until all principal and return/interest fully paid and all
expenses assume by KCAP.



Mission Statement

       KCAP aims to be main supplier of shelled yellow corn to fulfill sustainable
demand from Animal Feed Mill at Indonesia, especially at North Sumatra; and
preparing to be main exporter from Sumatra Island.
      KCAP aims to be benchmarker in managing business through partnering
model to guarantee business going concern, input supply, buyer, government
and community support, and high return and reward.
      KCAP operate professional business management strategic on long-mid-
short term view to guarantee satisfaction to customer, investor/lender, partner,
government, community, management, and employees.

Key Considerations

Why Shelled Yellow Corn?

    Indonesia Government stops corn import start at year 2007.
    In 5 years period later, the demand for corn from Animal Feed Mill
      increase 10%-15% annually.
    National Corn Council note total corn production 11.4million ton in 2005,
      and estimate 21.17million ton at 2010.
    Indonesia corn production spread around regions, and lack of supply to all
      demand in one location. Having huge stocks, require collection processing
      from many remote areas.
    National corn production subject to season, abundance at harvest time
      and scare another time.
    Low quality of existing products and do not meet manufacturing
      requirements.
    Government goal: Indonesia to be main corn producers at year 2025.
      During 2005-2025 periods, corn production growth projections around 4-
      5% annually.
    Corn production developments direct the role of private widely to
      partnering with farmer groups. Partnering development include
      infrastructure, cultural, productions, collections, processing, storage,
      manufacturing and marketing.
    To meet national demand of corn, Indonesia needs investment around
      US$5billion. This financing come from Government, Private and
      Community.
(Sources: Department of Agricultural, www.deptan.go.id 2006, edited)

Why Karo District?

    Based on Department of Agricultural, the prime commodity from Karo
     District was corn.
    Development Planning Board North Sumatra Province decided corn as
     competitive commodity in strategic locations at Karo District.
    Karo Corn commodity was larger producers based on field cultivating at
     North Sumatra.
    Karo District decided as best place to corn investment and The Center of
     Agropolitan Regions Development.
    Corporate farming model implementation at Karo District having full
     support from Central Government of Indonesia.
    Karo District decided to develop through partnering model by Agrimas
     Kapitalindo whose support from Government, Universities, International
     Parnering Instutions, Karonese and business community.


Marketing Objectives

    “The Big Five” Animal Feed Mill (Manufacturer) at North Sumatra – at
       Medan City up to 40.000 tons monthly.
    Animal Feed Mill (Manufacturer) at Java Island up to 30.000 tons monthly

The Big Five animal feed mill at Medan:
   1. Cargill  also around Indonesia
   2. Charoen Pokphand  also around Indonesia
   3. Japfa Comfeed  also around Indonesia
   4. Mabar Feed
   5. BUS


Expected Accomplishment

       KCAP expect to draw 60% market share at North Sumatra in two years
from start these project and 5% market share at national level.
       KCAP expect average sales revenue around US$90million annually for 5
years period of projects.

Required Capital

       In order for KCAP to successfully complete these project plans, an
investment of US$10million required for working capital from funder. Other
investment for Lands, Legal, Organization, operating expenses equivalent up to
US$25million contribute together by Partnering members include farmers,
management, government, suppliers, contractors and other partner based on
usage contract basis.