FINANCIAL MODEL FOR PALM OIL MILL AND KERNEL NUT MILL

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.
PALM KERNE MILL BUSINESS PLAN - CLICK HERE

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-à-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
PALM OIL REFINERY

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









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