Agribusiness Project - DOC
Agribusiness Project document sample
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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: firstname.lastname@example.org 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.