east african meat processing ltd business plan (table of contents)

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i EAST AFRICAN MEAT PROCESSING LTD. Business Plan Corporate Document A. TABLE OF CONTENTS S/NO. DESCRIPTION PAGE 1.0 EXECUTIVE SUMMARY 1 1.1 Introduction 1 1.2 Market Survey 3 1.3 Location 5 1.4 Plant Machinery and Equipment 5 1.5 Government's Role in Development 5 1.6 Financials 6 1.7 Conclusions 7 1.8 Recommendations 8 2.0 BACKGROUND - OVERVIEW OF THE LIVESTOCK INDUSTRY IN UGANDA 9 2.1 Overview of the Livestock Industry 9 2.2 Sector Policies, Development Strategy and Plans 9 2.3 The Government Policy on Meat Production in Uganda 10 3.0 INTRODUCTION OF EAST AFRICAN MEAT PROCESSING PROJECT LTD 12 3.1 Company Legal Status 12 3.2 The Shareholders 12 3.3 The Project 12 3.4 Project Cost and Financing 13 4.0 UGANDA INVESTMENT AUTHORITY 15 5.0 UGANDA BEEF SUB-SECTOR MARKET STUDY 18 5.1 Livestock Sector Overview 18 5.2 Production 22 5.3 Consumption 25 5.4 Marketing and Trade 26 5.5 Description of Value Chain and Processing 29 5.6 SWOT Analysis 30 5.7 The Product - Sales 32 5.8 By-Products and Added Value Products 32 5.9 Competitors 32 5.10 Summary 33

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The Table of Contents to the goat and sheep meat processing main business plan document.

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Page 1: East African Meat Processing Ltd Business Plan (Table of Contents)

i

EAST AFRICAN MEAT PROCESSING LTD. Business Plan Corporate Document

A. TABLE OF CONTENTS

S/NO.

DESCRIPTION PAGE

1.0

EXECUTIVE SUMMARY 1

1.1 Introduction 1

1.2 Market Survey 3

1.3 Location 5

1.4 Plant Machinery and Equipment 5

1.5 Government's Role in Development 5

1.6 Financials 6

1.7 Conclusions 7

1.8 Recommendations 8

2.0

BACKGROUND - OVERVIEW OF THE LIVESTOCK INDUSTRY

IN UGANDA 9

2.1 Overview of the Livestock Industry 9

2.2 Sector Policies, Development Strategy and Plans 9

2.3 The Government Policy on Meat Production in Uganda 10

3.0

INTRODUCTION OF EAST AFRICAN MEAT PROCESSING

PROJECT LTD 12

3.1 Company Legal Status 12

3.2 The Shareholders 12

3.3 The Project 12

3.4 Project Cost and Financing 13

4.0

UGANDA INVESTMENT AUTHORITY 15

5.0

UGANDA BEEF SUB-SECTOR MARKET STUDY 18

5.1 Livestock Sector Overview 18

5.2 Production 22

5.3 Consumption 25

5.4 Marketing and Trade 26

5.5 Description of Value Chain and Processing 29

5.6 SWOT Analysis 30

5.7 The Product - Sales 32

5.8 By-Products and Added Value Products 32

5.9 Competitors 32

5.10 Summary 33

Page 2: East African Meat Processing Ltd Business Plan (Table of Contents)

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EAST AFRICAN MEAT PROCESSING LTD. Business Plan Corporate Document

6.0

BUSINESS PLAN 34

6.1 Market Background 34

6.2 Objectives 35

6.3 Distribution 35

6.4 Marketing Support 36

6.5 Investments 37

6.6 Financial Data 37

7.0

TECHNICAL ASPECTS 38

7.1 Process Description 38

7.2 Production Capacity 41

7.3 Special Considerations in the Construction of the Plant 41

7.4 Basic Conditions 42

7.5 Description of Operations 43

7.6 Slaughterhouse Equipment 49

7.7 Miscellaneous Abattoir Equipment 49

7.8 Technical Staff Requirement for Slaughter House 50

7.9 Transportation of Meat & Other Vehicles 50

7.10 Utilities 50

7.11 Plant Building Lay-out Costs 51

8.0

ABATTOIR LOCATION 52

8.1 Location of the New Abattoir 52

8.2 Lutente Site 53

9.0

HYGIENE STANDARDS 54

9.1 Criteria for Laboratory 54

9.2 Abattoir Buildings and Premises 54

9.3 Basic Operations Requirements in the Abattoir 55

10.0

KEY FACTORS TO THE PROJECT'S SUCCESS 57

10.1 Supply 57

10.2 Technology and Equipment 57

10.3 Personnel 58

10.4 Quality Control 58

10.5 Distribution and Commercialization 58

10.6 Financing 58

Page 3: East African Meat Processing Ltd Business Plan (Table of Contents)

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EAST AFRICAN MEAT PROCESSING LTD. Business Plan Corporate Document

11.0

GOVERNANCE AND MANAGEMENT STRUCTURE 59

11.1 Governance Structure 59

11.2 Management Structure 60

11.3 Live Animal Procurement & Transportation 61

11.4 Plant Operations 61

11.5 Marketing and Sales 62

11.6 Finance Department 63

11.7 Human Resource and Administration 63

11.8 Training Needed 63

12.0

FINANCIAL ANALYSIS 65

12.1 Important Assumptions 65

12.2 Break-even Analysis 67

12.3 Introduction 68

12.4 Goat/Sheep Meat Products and Throughput 68

12.5 Project Investment Cost and Financing Plan 68

12.6 Goat/Sheep Stock and Throughput 69

12.7 Cost of Sales 70

12.8 Financial Performance 70

12.9 Basis of Preparation 70

12.10 The Vehicle 70

12.11 The Accounting System and Financial Control 71

12.12 Security 71

12.13 Summary and Results 73

12.14 Sensitivity Analysis 74

13.0

PROJECT ECONOMICS 75

13.1 Jobs Creation 75

13.2 Government Revenue 75

13.3 Development 76

13.4 Value Added 76

13.5 Conclusion 76

14.0

PROJECT IMPLEMENTATION SCHEDULE 77

14.1 General 77

14.2 Project Stage 77

15.0

ENVIRONMENTAL IMPACT ASSESSMENT 80

15.1 Abattoir Site 80

15.2 Other Considerations 81

Page 4: East African Meat Processing Ltd Business Plan (Table of Contents)

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EAST AFRICAN MEAT PROCESSING LTD. Business Plan Corporate Document

16.0

CONCLUSION AND RECOMMEMDATIONS 83

16.1 Conclusions 83

16.2 Recommendations 83

Page 5: East African Meat Processing Ltd Business Plan (Table of Contents)

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EAST AFRICAN MEAT PROCESSING LTD. Business Plan Corporate Document

B. LIST OF TABLES

T/NO.

DESCRIPTION PAGE

1

Company Shareholding Structure 2

2

Company Shareholding Structure 12

3

Project Cost Summary 14

4

Capital Allowances 15

5

Deductible Annual Allowances 15

6

Other Annual Depreciation Allowances 16

7

Priority Investment Areas 16

8

Livestock Population Trend 18

9

Weight gains for goats 21

10

Cattle population of Uganda 23

11

Meat Production in Uganda (2003 - 2013) in MT 24

12

Meat Consumption in Uganda (2010) 26

13

Formal imports and export of beef (2005 - 2010) 28

14

Monthly Projected Production of Goat & Sheep meat, by-products

and hides/skins 35

15

Type and Cost of Vehicles 50

16

Building Lay-out Costs 51

17

Management and Staff Costs 64

18

General Assumptions 66

Page 6: East African Meat Processing Ltd Business Plan (Table of Contents)

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EAST AFRICAN MEAT PROCESSING LTD. Business Plan Corporate Document

19

Break-Even Analysis in Project Year 5 67

20

Investment Schedule of the Goat & Sheep Abattoir Plant 69

21

Summary of Financial Projections 72

22

Sensitivity Analysis 74

23

Value Added 76

24

Lairage Expenses 85

25

Destination of solid waste and utilization of nitrogen 108

26

Slaughter process: Waste prevention 110

27

Biological wastewater treatment systems 111

28

Advantages and disadvantages of aerobic and anaerobic

wastewater treatment systems 112

29

Cross-comparison of different wastewater treatment systems 115

Page 7: East African Meat Processing Ltd Business Plan (Table of Contents)

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EAST AFRICAN MEAT PROCESSING LTD. Business Plan Corporate Document

C. LIST OF FIGURES

F/NO.

DESCRIPTION PAGE

1

Cattle Population Breed [2008] 19

2

Uganda Cattle Corridor 20

3

Major livestock population districts in Uganda 23

4

Meat Production in Uganda 2008 - 2013 24

5

Beef trade balance (exports minus imports) in Uganda (2005 - 2010) 28

6

Beef and live cattle marketing chain 30

7

Slaughtering and Meat Processing Process 38

8

Proposed Abattoir Layout Plan 48

9

Proposed Governance Structure 60

10

Proposed Management Structure 62

11

Project Implementation Schedule 79

12

By-Products of the Meat Industry 107

Page 8: East African Meat Processing Ltd Business Plan (Table of Contents)

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EAST AFRICAN MEAT PROCESSING LTD. Business Plan Corporate Document

D. LIST OF FINANCIAL ANALYTICAL SCHEDULES

S/NO.

DESCRIPTION PAGE

1

Assumptions and Project Summary Results 85

2/1:

Initial Project Investment Costs 88

2/2:

Source and Structure of Project Financing 89

3

Loan and Interest Service Schedule 90

4/1:

Calculation of Working Capital: I Minimum Requirements of Current

Assets and Liabilities 91

4/2:

Calculation of Working Capital: II Annual Production Cost – Estimate 92

4/3:

Calculation of Working Capital: III Working Capital Requirements 93

5

Fixed Assets and Depreciation Allowances 94

6

Change inTotal Investment Costs 95

7

Change in Total Assets 96

8

Projected Cash Flow Table 97

9

Projected Cash flow Table and Calculation of Present Value 98

10

Projected Income Statement 99

11

Projected Balance Sheet 100

12

Calculation of Payback Period 101

13

Business Ratios/Ratio Analysis 102

14

Sensitivity Analysis 104

Page 9: East African Meat Processing Ltd Business Plan (Table of Contents)

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EAST AFRICAN MEAT PROCESSING LTD. Business Plan Corporate Document

E. LIST OF APPENDICES

A/NO.

DESCRIPTION PAGE

I.

Prevention of Waste Products and Treatment of Waste Water 105

II.

2010 New Uganda District Map 116