We
offer to provide the services of writing a financial model and feasibility
study of palm plantation farm, palm oil mill and palm kernel nut crushing
business (CPKO, PKN, PKC). We are professional in writing a financial model for
any type of agricultural business, all you need to do is to Click Here to Contact Us and we will
provide our service to you and your company to enable you get the grants or
investors o your business or company.
GUIDELINES
The model we will provide will be based
on the following strategy:
1. Replanting 200 hectares of an existing plantation in Year 1 using
seedlings at the cost of N400 per seedling.
2. Operating a medium-scale oil mill of 5tons/hour starting in year 2 but
fully operational by year 3 with FFB from our current 1,500-hectare plantation while
growing our plantation (remember we will probably start at 70% capacity in 1st
year of operation, then increase to 80% then 90%, also note production
operation shifts in Projected Output Table below). Sales Revenue for this will
be from Crude Palm Oil (CPO), Palm Kernel Oil (PKO) and Palm Oil Cake
(Livestock feed).
3. Establishing a nursery in Year 1 for planting of 2,000 hectares of land
the following year.
4. Planting & Maintaining Oil Palm Plantation (11,500ha over 6 years)
by adding 1,500-2,000 hectares per year (see expansion table below)
5. Expanding to a 45ton/hour oil mill in Year 8 when our plantation has
grown to support the mill.
6.
Net Cash inflows from
Sales Revenue of our current CPO operations will be N40,000,000 for the 6
months of production in Year 1 and will double by the end of Year 2. This will
contribute to Working Capital.
7.
Gearing
Ratio should be 30% debt,70% equity with interest rates at 9% (fees not
inclusive)
8.
Include
depreciation, tax, inflation and other financial parameters at current economic
rates. (Use exchange rate of N220/$1, contingency of 10% on the budget and contingency
of 5% on equity to be raised)
9.
Project
is modeled over 25 years.
10.
Cost
of land is reflected as equity of 5% to be written in Capital Structure Sheet
under equity as Society A (Land)
11.
The
tables below may be useful to you but feel free to modify them as long as you
indicate any changes to me.
12.
Debt
Amortization period should be 5 years but if that makes us unprofitable, use 10
years.
NOTE: The model above is just a sample…. We can
write exactly what you need. We can use the figures you have from your farm or
mill.
FINANCIAL MODEL STRUCTURE
The
Financial Model Martins Library Team
will provide for you will be arranged with the following sheets:
1. Cover
Page
2. Assumptions
3. Budget
(which shows capex and opex) or you could break this into two separate sheet
4. Capital
Structure
5. Debt
Schedule (or Loan Repayment Schedule)
6. Cash
Flow Projections
7. Revenue
Projections
8. Income
Statement
9. Returns
& Ratios (or Project Evaluation) i.e, where you summarize the following for
each year (Excel has almost all the formulas):
a. Sales
Realization
b. Gross
Profit
c. Net
Profit after Tax
d. Net
Profit Margin
e. Long
Term Debt
f. Gross
Profit after Sales (%)
g. Net
Profit after tax on Sales (%)
h. Net
Worth
i.
Return on Capital Employed
j.
Current Ratio (Current
Assets/Current Liabilities)
k. Debt
Equity Ratio
l.
Pay Back Period
m. IRR
n. Debt
Service Coverage Ratio
o. Break
Even Point
10. Balance
Sheet
11. Product
Price Breakdown
12. Break
Even Analysis, Pay Back Period Breakdown & Debt Service Coverage Ratio
Breakdown
13. Sensitivity
Analysis (for 5% and 10% changes in price in both directions)
14. Profitability
Statement
Other
sheets we may include in any order are (just so we can see your calculations
and the model flows seamlessly:
1. Output
Schedules per year vis-Ã -vis Sales Realization
2. Raw
material requirement
3. Working
Capital Requirement
4. Breakdown
of Cost of Packing material (we intend to sell in barrels, 50-litre, 20-Litre kegs, 25-litre
and 5-litre kegs)
5. Competitor
Matrix Analysis
BUDGET
Expenditure
would reflect a breakdown of (but is not limited to) the following:
Capital
Expenditure - Oil Palm Plantation
a. Land
Development Costs including Site Survey & Marking out of perimeter
boundaries, Land Clearing (under-brushing, felling, pruning, and inter-row
stacking),
b. Nursery
Establishment
i.
Seedling
ii.
Pesticides
iii.
Rodenticides
iv.
Irrigation
v.
Security
vi.
Storage
vii.
Miscellaneous
c. Civil
Works – Field Roads and Internal Harvesting Paths, Field Bridges & Drains
d. Terracing
e. Mechanical
Holing
f. Planting
(9 man-days per hectare)
g. Wire-mesh
Collars for each seedling
h. GPS
Position Capture for each plant
i.
Fertilization
j.
Buildings, office
equipment
k. Quarters
l.
Plant & Machinery
(for harvesting, pest control, etc)
m. Other/Miscellaneous
Capital
Expenditure - Factory
1. Land
Development – Safety, Site Survey & setting out, Site Supervision,
Mobilization & Demobilization
2. Building,
Earthworks, Civil & Structural Works – Sterilizer Building, Main Process
Building Roads, Drains & Oil Tank Foundation (You can break it down or do
one lump sum bearing all this in mind; we could use prefab factory buildings
that are becoming more popular)
3. Mechanical
Works – FFB reception, Sterilization Station, Threshing Station, Kernel
Recovery Station
4. Electrification
Works (This includes Motor Control Starter Panel, Generator Main & Sub-main
Cables, Motor & Level Control Wiring and overhead Power lines all to
generate & distribute the
electricity from the boiler in our factory)
5. Plant
and Machinery
6. Generator
Set (we may not need this, have to find out)
7. Transportation
Lorries
8. Laboratory
Equipment
9. Furniture
& Office Equipment
10. Technical
know-how & Agricultural Consultancy
11. Preliminary
& Pre-operative expenses
12. Working
Capital Margin
Operating
Expenditure - Plantation
1. Nursery
& Plantation Maintenance (cost for 3 years of maintenance staggered for 3
years or calculated yearly)
a. Fertilizing
b. Weeding
c. Pest
& Disease Control (Fungicides & Rodenticides)
d. Pruning
e. Harvesting/collection
f. Tools
g. Infrastructure
h. Transportation
to mill
i.
General Expenses
j.
Other/Miscellaneous
2. Insurance
Premium (1.5% of cost of value added to land, ie, seedlings, plant &
machinery, fertilizer, pesticides, etc which is already subsidized by
government)
3. Extension
Services
Operating
Expenditure - Factory
1. Raw
Material
2. Packaging
Material
3. Utilities
a. Power
& Fuel (the factory is expected to
generate its own electricity and enough for the houses in the estate
plantation) Diesel to run the generator (this may be removed since we are
generating our own electricity – I’d like your thoughts on this) and oil for
maintaining machinery
b. Water
(Water will be got from borehole and
reservoir tanks)
c. Consumables
4. Production
Labour
5. Factory
Overheads
6. Insurance
(2.5% of plant, machinery & equipment)
7. Taxes
8. Depreciation
9. Administrative
& Management Expenses
a. Salary
– Management Staff
b. Salary
– Other Staff
c. Fee
– Legal Consultant
d. Fee
– Agricultural Consultant
10. Other
Admin Expenses (e.g. we plan to use CUG phones from MTN for all workers to call
each other free. We will give them the credit of N1,500 per month for admin
staff only)
11. Marketing
Promotion Expenses
PROJECTED OUTPUT SCHEDULE (in tons) AT 100% CAPACITY
|
1
shift of 8hrs/day x 240 days
|
|||
|
MILL
CAPACITY (tons/hr)
|
CPO
|
PKO
|
SHELL
|
|
5
|
9,600
|
2,208
|
3,648
|
|
45
|
86,400
|
19,872
|
32,832
|
|
1
shift of 8hrs/day x 300 days
|
||
|
CPO
|
PKO
|
SHELL
|
|
12,000
|
2,760
|
4,560
|
|
108,000
|
24,840
|
41,040
|
|
2
shifts of 8hrs/day x 240 days
|
||
|
CPO
|
PKO
|
SHELL
|
|
19,200
|
4,416
|
7,296
|
|
172,800
|
39,744
|
65,664
|
|
2
shifts of 8hrs/day x 300 days
|
||
|
CPO
|
PKO
|
SHELL
|
|
24,000
|
5,520
|
9,120
|
|
216,000
|
49,680
|
82,080
|
|
3
shifts of 8hrs/day x 300 days
|
||
|
CPO
|
PKO
|
SHELL
|
|
36,000
|
8,280
|
13,680
|
|
324,000
|
74,520
|
123,120
|
PLANTATION
GROWTH SCHEDULE (in tons)
|
LAND
|
Year
2
|
Year
3
|
||||
|
HECTARES
PLANTED
|
1,500
|
2,000
|
||||
|
TOTAL
HECTARAGE
|
1,500
|
3,500
|
||||
|
Year
4
|
Year
5
|
Year
6
|
Year
7
|
|||
|
2,000
|
2,000
|
2,000
|
2,000
|
|||
|
5,500
|
7,500
|
9,500
|
11,500
|
|||