fancy agro farms ltd

Information of the Project

On Fancy Agro Farms Ltd.

Fancy Agro Farms Ltd. Village: Chowbari, Post: Chowbari Upazilla: Kamarkhandaa, District: Sirajgong, Bangladesh

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AGRO FARMING CONCEPTS OF GLOBAL TREND

Bangladesh has a primarily agrarian economy. Approximately 82 percent of the country's population lived in rural areas, virtually all of them making their living exclusively or substantially from agriculture. In fact, Agriculture is the single largest producing sector of the economy since it comprises about 37% of the country's GDP and employs around 77% of the total labor force. Despite progress toward greater industrialization, agriculture still accounted for its contribution to national GDP.

The performance of this sector has an overwhelming impact on major macroeconomic objectives like employment generation, poverty alleviation, human resources development and food security. Domestic production increased at a relatively steady rate in the years following independence, but not fast enough to close the gap created by the continued rapid growth in population.

Due to a number of factors, Bangladesh's labor-intensive agriculture has achieved steady increases in food grain production despite the often unfavorable weather conditions. These include better flood control and irrigation, a generally more efficient use of fertilizers, and the establishment of better distribution and rural credit networks. Most Bangladeshis earn their living from agriculture. Although rice and jute are the primary crops, wheat is assuming greater importance. Tea is grown in the northeast. Because of Bangladesh's fertile soil and normally ample water supply, rice can be grown and harvested three times a year in many areas. Besides, Bangladesh produces Sugarcane, Potato, Pulses, Corns, vegetables, and Tobacco etc. The crop sub-sector dominates the agriculture sector contributing about 72% of total production.

Though the country produces plenty of corps but lacks heavily in proper preservation, processing and utilization of those at home and abroad through export. As a result a significant quantity of agriculture corps being wasted every year causing economic loss to the farmer-producers as well as to the national economy. By way of industrialization based on agriculture produce of the country as such is being adjudged to be a glorious opportunity for proper utilization of corps and thereby

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http://en.wikipedia.org/wiki/Water

http://en.wikipedia.org/wiki/Soil

http://en.wikipedia.org/wiki/Tea

http://en.wikipedia.org/wiki/Wheat

http://en.wikipedia.org/wiki/Jute

http://en.wikipedia.org/wiki/Rice

http://en.wikipedia.org/wiki/Agriculture

http://en.wikipedia.org/wiki/Irrigation

http://en.wikipedia.org/wiki/Food_security

http://en.wikipedia.org/wiki/Poverty

http://en.wikipedia.org/wiki/Employment

http://en.wikipedia.org/wiki/GDP

http://en.wikipedia.org/wiki/Agriculture

uphold contribution in GDP. In addition, this can help investors to cater social and technological responsibilities.

Fancy Agro Farms Ltd. has been launched with these basic objectives to contribute effectively in national economy and thereby be a partner in upgrading the life-pattern of the people and thereby participate in the poverty alleviation process of the country.

THE PROJECT

Background of the Endeavour: The agricultural sector has been a subject of considerable interest since time immemorial as it provides the essential link between farm producers and the consumers of food.

Presently, a tremendous scope of value addition exists in this sector through processing the agricultural products. In the process, the involved processing industries are not only contributing in the economic development but also will provide direct and indirect employment for a huge number of people including significant number of women.

Agro-processing units in Bangladesh have been traditionally organized to cater to the domestic markets. Of late, quite a few companies have started exporting their goods to various countries. Reportedly, the demand of the agro-based local products is increasing day by day both in the country as well as in foreign countries. As a result, the processing and preservation of modern technology in Bangladesh has the scope for considerable improvement.

Realizing the increasing consumer awareness, overall market demand, value addition scope and change in consumer taste, the sponsors of this project has setup a modern agro-based food processing plant. The plant envisages producing quality Beef fattening and Raw dairy products.

Project Plan:The project has been plan with the objectives of complete solutions for Beef Fattening for protein sources of human being and Raw Dairy materials etc. in the first phase with total completion of project’s other phases incorporating

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total operational perspectives for the sustainability and development of the endeavour. Through information collected during designing of the total activities it was found that the sector tremendously requires a complete approach with appropriate value addition.

The phases include: Initial Phase: Fancy Agro Farms Ltd. 2015-2016 Follow up phase:

o Start-up of Fancy Agro Farms Ltd. 2015o Feeder Balancing of Fancy Agro Farms Ltd. 2015 – 2017o Diversification of Fancy Agro Farms Ltd. 2015 – 2018o Balancing, Modernization, Rehabilitation and Expansion Project:

2019 – 2020

The initial phase of the project is at completion stage. The follow-up phases of the original project having the following major components which needs timely implementation:

Start-up Project: 2015This project is to start up the activities designed in the primary project to have appropriate, efficient and cost-effective production through technological adjustment and adding supportive new lines to cater created market demand. This project will meticulously help the original project’s financial target and planning.

The project will include:o Beef Fattening: The beef fattening activities will started with 400

number of medium types of cow. o Raw milking cow: 300 Number of Milking cow will be procured for

continuous supply of raw milk. To reserve the raw milk, 10x10 thousand litre Thermopile chilling plant will be set up within the premises.

Feeder Balancing Project: 2015-2018This project is targeted to maintain the developed chain of backward and forwarded linkages. Through operational excellence the development accrued at the rural raw materials supply chain and thereby the marketing demands created are to be maintained effectively. If the organization fails to collect raw materials developed by the farmers through the effort of the organization and on the other hand fails to supply the demand – both the linkage would be frustrating which will result in non-congenial performance by both the sectors causing appropriate operations.

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This phase of the project will include:o Cattle Feed Planto Milking Parlouro Slaughtering houseo Beef processing and supply kiosk

Diversification Projects: 2018-2020Considering the national development strategy in one hand and on the other diversification of the group-activities, this projects are designed.

For Fancy group, identified areas are:o Cattle development with Australia-New Zealand o Aseptic milk processing lineo Skimmed milk powder planto Baby food planto Fruits and Vegetable processing lineso Organic Cultivationo Super Mall & Hyper Mall etc.

BMRE Project: 2015 – 2017Balancing, Modernization, Rehabilitation & Expansion (BMRE) projects will be the requisite to maintain the productivity of a project and project components. After running the machinery for 4-5 years those need BMRE. Activities in this respect are repair of ware & tears, replacing the technologically obsolete items with updated machinery, equipment and system, incorporate new developed and invented process wherever applicable and compatible, enlarge the lost capacity, and further adding equipment and lines to maintain required production planning of the time etc. are the main tune of the project and is a compulsory one. This will have:o BMRE for Structural design for Beef fattening and milking cow

shade o BMRE for Raw milking storage system

Global Technical Partners:

My Haiz Sdn Bhd, Kuala Lumpur, Malaysia Yedung Machineries, Shan Tou, Guang Dong, China Scanpro, Denmark Vina Milk, Vietnam Orana, Denmark, Patkol, Thailand APV, Denmark

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Arla Milk Ingredients, Denmark Anhydro, Denmark, Wintech Taparia, Indore, India Griffith Thailand, Bangkok, Thailand

The Original Project: Fancy Agro Farms Ltd

Fancy Agro Farms Ltd. is an agro-processing organization with socio-economic commitment towards poverty alleviation process of Bangladesh through Dedicated Development Drive. Capitalizing the long experience of agricultural business and thereby attaining success through effective plans and materialization of those through capable management team the original project was designed for implementation.

The project envisages the unique pattern of:• Integrating the rural agricultural product processing through up-to-date

technology to cater market demand with quality food products like beef fattening for protein sources, dairy-foods, beverages, under the brand name FANCY

• Adhering to social and community responsibilities creating income generating scopes and job opportunities for both male and female at rural and urban areas.

In the board meeting of Project Fancy Agro Farms Ltd. on August 2015 for borrowing from Sonali Bank Ltd. to the tune of Term Loan BDT Tk. 15, 70, 42,386.00, Working capital BDT Tk. 11.5296 Core. Total cost of the project is BDT TK. 26, 17, 37,310.00. Beside this, amount of BDT Tk. 11, 52, 96,000.00 will be required as working capital for full running of the proposed project.

Basically the organization aims at collection of rural produce for processing and marketing in the urban areas. In the process it will guarantee fair price for the farmer-producers in one hand and on the other will cater industrial processing line demand through the high-quality processed dairy and slaughtering entrepreneurs. Furthermore, the organization will export the production to the foreign countries.

Vision of the Company: To cater to the huge national demand, FANCY envisages processing of Fattened cow for beef, Chilled Raw milk through improved and up-to-date technology by offering:

• Best Possible Quality;• Offering Variety in the Daily Diet ;• Prioritizing Health Needs with protein sources

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The organization also envisages to meaningful contribution in conservation and promotion of ethnic food items both at home and abroad.

Mission:The mission of the company is to cater the demand of Beef Fattening animal, Chilled Raw Milk, and with quality supply. The integrated approach with rural production of diversified raw material processed in high-quality machinery will in one hand contribute local market demand and on the other will also help earning foreign currency through export. Furthermore, it will create job opportunities both at rural and urban areas and assist in the poverty alleviation process of the country along with women participation and developing life-style. In brief, Fancy Agro Farms Ltd. will be dedicated to administer service to the nation and lead the country’s Dairy and Food sector within the next 5 years with –

Contribution to GDP significantly Novelty of products ; Establishing economic tie between urban and rural population; and Participate in effective change in the life-style of the people.

Location of the Project: The project is located in Village: Chowbari, Post: Chowbari, Upazilla: Kamarkhanda, District: Sirajgonj, Bangladesh alongside the Dhaka.

Land Details of Project: a) Area of the land is 333 Decimal, Located at Serajgonj. Khotian – C.S:

R.S: Dag No. C.S & S.A:

b) Building details of Project: Pre-Fabricated Steel Shade with an area: 30 feet x15 feet

Beef Fattening: 20 NosMilking Cow: 30 Nos

Utility Building: 4000 sq. ft.

(Boiler, Gas /Diesel Generator and Water Treatment Plant) Electricity, Gas, Water: As per needs

Anticipated Impact of the Project:The present project will have positive impact on the economy and will contribute effectively in agricultural business sector. The project will have further significant impact on:

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Women Participation in the Project Activities:There exists ample opportunity of women to participate in the project activities. In the factory arena, wherever the women-power can be absorbed, the project will extend priority on recruitment from women community. The work environment created at the factory area will aid comfortable service-offering by them. On the other hand, in the village milk and corps production area, participation of women will be exhaustive. In the process of maintaining cattle, milking, selling milk etc. along with supporting other crops production activities they will be meticulously performing. Besides, woman community will also be enrolled in marketing and distribution and other professional sector in city area it will tremendously aid family income in both rural and urban areas which will contribute in the development of life-style.

Positive Impact on Environment:The project will have no negative effect on the environment. Besides, it will maintain environment-friendly status all the way. The cow dung at Animal Farm areas will be duly managed through the established Natural Bio Gas Plant (Bio gas). At the rural areas, the Cow dang from the cattle and other sources related to the project will be used for fuel, and bio-gas and the residual will be utilized as bio-manure and maintain better agricultural production in comparison to industrial fertilizer aiding more nutrition.

Income and Employment Generation: The project would be able to increase the income of the organization as well as of the farmers associated directly or indirectly with it. It will create job and livelihood for the rural farmers at the production arena and urban area in the marketing activities. Further job opportunities will be created at the plan-level, transportation of raw materials and finished goods etc.

Creating import substitution and opening over-seas market: The project will further assist creating the opportunity of import substitution and thereby attain self-reliance in the relevant sector.This will help the country to save hard-earned foreign currency being invested against the import of different food products. On the other hand it will help ventilate international market, there by cater the new sources of business and income benefitting the organization and the country as a whole.

Patronizing Develop Other Related Industry:The total activities of the project will be also complemented by many other local industries who will supply the inputs manufactured by them. The project will contribute very effectively in the development of other industries sub-contracting.

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As a result other industries will be flourished with financial growth. In turn, this will aid self-reliance on the sector as well as economy.

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Social Commitment: The organization is dedicated to social commitment under the fold of quality business practices integrating the stake-holders. In the way, the activities will be operated following the model:

Processing Rural Produce for Urban Market Supply and transferring Urban Cash for Rural Development.

The Model for Economic Upliftment

The Present Status of the Project:Launching through import of machinery, commissioning, and commercial marketing of products the company so far will have succeeded in establishing its good will in the market with the quality products services at Beef

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Urban Cash to Rural Farmers

FARMERS

CONSMERS

Rural Produce to Urban Market

Rural Plants Market

MajorPlant

slaughtering and milk processing institutions as per demand as and when need. After completion of the installation and commissioning of the dairy machinery and equipment will be started with diversified varieties for the users. Milk collection and production of milk will be commenced from May, 2016. All the products are blended with innovative & quality features to satisfy both the national and international market. Ethnic and health & energy support products are also being processed with the aim further intensification in future. The sales network will be established throughout the country with the support of Dairy manufacturer like IGLOO, AKIJ, and PRAN etc directly. As a very new company in the unique market, the achievement of the company is satisfactory in terms of sales and very much significant in the tune of marketing high quality raw materials under FANCY brand name. FANCY fosters will be establishing brand equity nationally and internationally by materialization of commitment.These will have encouraged the company enormously to go for consolidation of the original project in the light of marketing feedback with demand of more new products and increase of capacities of existing products maintaining the company’s standard production practices.Accordingly the present project proposal is being placed that will aid development of the company’s production capacities and thereby increase income.

Status of Farms:

Machinery and equipment for Chilled Cow milk will be imported and installed. Commercial productions in these plants will be started from December, 2015.

List of Machineries Installed:1. Ten thousand capacity Thermophile Chiller2. Reserve Raw Tank 3. Milking machine4. Siloes 5. Duel fuel generator6. Boiler7. Bio gas plant8. Water treatment plant9. Effluent treatment plant10. Cow dung fertilizer storage

Import of machinery and equipment at the first phase through the L/Cs will be established within the time frame.

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Multiple machineries under integrated network along with transportation vehicles are required to collect feed meal, Silage, green grass, from the fields or suppliers at the side to project areas etc. at the rural plants, transportation of collected milk to core-plant and thereby processing and marketing of different milk-products are in process.

List of the Machineries for dairy at first phase:

1. Brand New Capital Machineries for Raw Milk reception, cooling and storage, CIP Plant; Cold Store and Chilled Water Plant; Air Supply Plant; Stainless Steel Pipes and Fittings; Service Pipes and Fittings; Electrical Installation; Laboratory Equipment; Various Dairy Equipment; Spare parts and maintenance tools. Origin: Thailand/European/ India/China

Some Basic Facts on dairy Sector:Cattle-wealth of the Country:Cattle rearing practice is a traditional event in the farmers’ lives in agro-based Bangladesh from very old days. Country accounts 22.80 million cattle, 1.16 million buffaloes, 19.94 million goats and 2.57 million sheep (2006). Female-cattle estimated 50.29% of total cattle, yielding average production of 200-300 litres a year using local indigenous varieties in a lactation period of 160 - 180 days, except some of the crossed breed producing 1000-3000 liters/year in 255-300 days of lactation.

Nutritional Demand of Milk:Per capita milk availability in Bangladesh ranges from 40gms-50gms/day, for a total of per capita consumption of 18 kg/year as against global averages of 80 kg/caput. Nutritionally, by way of providing 250 grams/ day/ person (as a nutritional supplement to the conventional diet-habit) to the population of 140 million, total 12.77 million metric tons milk per year is required depicting an alarming deficit of about 82%. Improving the situation is a huge task. Other than infants and children, Bangladeshis are not a milk consuming nation, but are fond of sweet-meat and milk delicacies. However, nutritionally, there exists large deficit. Moreover, though there are a number of dairy organizations in the country, but none produces Baby Food.

Special Effort for Milk Production:The organization is working on creating a 'fresh milk collection network' in own milk production management through organizing the modern dairy farm. In the process, planned and sustainable milk production and

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collection systems are underway. The organization will develop milk production through developing milk breed processes. Artificial Insemination, providing preventive and curative treatment of the cattle, improving cattle management practices, providing cattle feed services, and soft loan for cattle purchase to the farmers are some of the initiatives that the company plans to undertake. Besides, the workers will be trained milk production activities to supplement their personal income as well as contribute in the national economy.

Company Information: The project has been incorporated under the Companies Act 1984 (See-Section 115) as a Private Limited Company named Fancy Agro Farms Ltd. on 26th July 2015 from the Register of Joint Stock Companies, Bangladesh. Certificate of Incorporation; Reg No: C-124519/2015.

The Entrepreneur:

Engr. MOHAMMAD SAIMUL ALAM, Managing Director

Engr. MOHAMMAD SAIMUL ALAM is the founding Managing Director of the NPI Engineers Ltd., Dhaka. He is a Skilled

Engineering faculty and Vice Principal of National Polytechnic Institute, 182/1, East Tejturi Bazar, Farmgate, Dhaka-1215.

Born in a traditional business family, Mr. Alam after completion of his studies started his career by establishing his own

concern.

With 15 years’ experience in business areas, he stepped into education sector by establishing NPI in 2001. Since the beginning he has been involved in its operation. Engr.

MOHAMMAD SAIMUL ALAM is simultaneously involved in their own agro-based business since.

With strong business acumen, he has been involved in multi-dimensional businesses and has been successful due to his experience, organizing skills & managing ability and, most importantly, his unique leadership quality. He is also the Managing Director of Fancy Housing Ltd. He has notable

contribution in various social, cultural and educational institutions in the district of Sirajgonj.

Mrs. Morshada Khatun, Chairman, Fancy Agro Farms Ltd.

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Mrs. Morshada Khatun, wife of Mr. Mohammad Saimul Alam, is a university graduate and is the Chairmen of Fancy Agro Farm

Ltd. She has involved in the operation of the Fancy Housing business since its inception and played key role in development

of the real estate business. She has been involved in various business ventures. She is a Director of the NPI Ltd. Ms.

Morshada Khatun is actively involved with different social, cultural, and educational activities and organizations.

Other Companies of the Group: The present project is the one of the member of its which have the following other companies:

National polytechnic InstituteNational Polytechnic Institute, is a group of private polytechnic of international Standard affiliated and approved by BoG organization. This technical institute has been directed by NPI Engineers Ltd having other five unites at Dhaka, Manikgonj and Faridpur in full running campus.

Universal Polytechnic Institute Technical University, Proposed) In a very short time, NPI group has started with individual technical under graduation degree oriented academic program under the banner of NPI University of Bangladesh (Proposed). Activities for higher technical degree of Diploma student will be started very soon.

Fancy Housing Ltd UPI group has been started Real Estate business at different areas as social activist with a great success in the banner of Fancy Housing Ltd. A strong team with their professional chain are working for positive real estate business.

The Management TeamThe company practices employment of qualified professionals having successful track-record to look after the day-to-day management activities of the company. The present organization has already employed required personnel in different category. It has also engaged a number of experienced consultants for various activities such as technical, financial and civil construction. These consultants have diversified experiences of implementation such projects earlier. The present project enrolling about 65 personnel in Faring Production, Engineering, R & D, Quality, security and safely, Dairy operation and

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Management, Farmers Organization and Extension, Marketing, Distribution, Finance, Accounts and HR. Employees are assigned as and when required. Profile of Dr. Md Bellal Hossain (54), Technical Advisor Dr Hossain, has obtained MSc in Phyto chemistry, Post-graduation in Food Science (DU), and PhD in Food Technology (QUT). Objectives of Dr Hossain is to blend versatile professional expertise with personal trails of discipline, allegiance, and assiduousness Dr. Hossain started his job as government food chemist under Ministry of Defense in 1987 into different agro based food-manufacturing plants at Dhaka and Chittagong zone till 1996. After completing his PhD research work, he joined the Globe Pharma Group of companies Ltd. (Food and Beverage Division,) Bangladesh as General Manager and continued for 5 years. Later he served M M Ispahani Ltd, Bangladesh, for about 2 years. Beside these, Dr Bellal conducted research activities as adjunct professor in food biotechnology, Khulna University; food science &Nutrition, Dhaka University, and food technology (DIU), Bangladesh. Dr. Bellal Hossain has owned global membership of Asian Pacific food Analysis Network (APFAN) Australia. He is associated with many national and international organizations.Beside these, Dr Hossain has completed the latest research works on Beef Fattening under the financial aids of Bangladesh Government, 2013. More than forty articles has published at National and international journals. He has developed the agro business of Ispahani Foods Ltd, Dimond Biscuits Ltd, Prome Agro Foods Ltd, GME Agro Ltd and Abdul Monem Ltd as Technical Advisor beside his University profession.At present he is working as Associate Professor of NFE Dept, Faculty of Allied Health Sciences, and Daffodil International University. (Annexure)

Profile of Md. Mahmudur Rahman, Consultant (Biotechnology)Mr. Rahman, has obtained MS in Biotechnology from Swedish University of Agricultural Sciences, Uppsala, Sweden and BSc in Biotechnology from Khulna University Bangladesh. His research project in Bachelor study was on Multiple Ovulation and Embryo Transfer (MOET) in Cattle. After his graduation from Khulna University he worked at Bangladesh Livestock Research Institute (BLRI) in Several Projects to develop farm animals and animal derived products. Mr. Rahman also worked in Mag’s Echo Earth Ltd, Bangladesh’s one of the large Agro based Company. He was engaged in different research projects in World reputed research Laboratory in Sweden, Denmark and Germany. After returning from Europe, Mr. Rahman joined Abdul Monem Ltd (Igloo Ice Cream and Milk Unit) where he was responsible for processing and quality assurances of dairy product.

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Beside these, Mr. Rahman has completed the latest research works on Beef Fattening under the financial aids of Bangladesh Government, 2013 along with Dr. Bellal Hossain. At present he is working as Assistant Professor of Department of Nutrition and Food Engineering, Faculty of Allied Health Sciences, and Daffodil International University. (Annexure)

Profile of Dr. Monir Hossain, Farm Consultant Dr. Monir received his Doctor of Veterinary Medicine degree in the year 2002 from the Bangladesh Agricultural University and started his career in BRAC Dairy Farms Ltd

AFTER RETURN FROM Taiwan. Having training in country and abroad Dr Monir proved himself to be an integral part to mobilize farmers for milk production and thereby offer all the cattle development services.

During the period of his professional services in different national and multinational companies, he successfully contributed in the dairy development process in the country by establishing milk value chain, development of cattle breeds by adapting Embryo Transfer Technology, Artificial Insemination services etc. He has joined this company early 2015 as Farm consultant. (Annexure)

Profile of Mr. Ashik Chowdhury, Business Development ExecutiveMr. Ashik Chowdhury has been completed his graduation under the faculty of Business Studies and department of Entrepreneurship (IBA). He started his career as BUSINESS DEVELOPMENT OF ORGANIC FARMING of Social business 2012.

Part-BThe Company and the Capital StructureThe company has already been incorporated in the name of “Fancy Agro Farm Ltd” as private limited company on 16 July 2015 under the Companies Act 1994. The Capital Structure of company is as follows:

Owners investment BDT Tk. 10,46,94,924.00

Long term bankers loan BDT Tk. 15,70,42,386.00

Share of each Member BDT Tk. 100.00

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The Shareholding Structure

Name Designation No of Share

Value in BDT

(%)

Md Saimul Alam Managing Director

785211.93 7,85,21,193.00 75%

Mrs. Morshada Khatun Chairman 261737.31 2,61,73,731.00 25%

Justification for Agro FarmsAfter implementation of a project at the first phase and thereby operation and marketing, the practical feedback of the Farm are to be received. Moreover, during the period buyers’ acceptances level are also measured.

Moreover, it has also been seen that, with the same establishment if some new machine and equipment are to be added, the business volume of the project increases which guarantee a positive impact in the cash flow and ultimately to the financial position.Fancy Agro Farms Ltd. will import equipment for raw milk storage and modern concepts for Beef Fattening Animal for local demand of Dairy processing industries and different slaughtering house at Dhaka Urban areas.

It is observed from the business operation, monitoring and evaluating the products market and consumers’ attitude – that almost all the products will have created positive impact among the consumers for its exclusive quality standard. As a result demands for all the Fancy products will be increasing every day. To satisfy buyers’ demand in one hand and on the other better economic return the project of Fancy Agro Farms Ltd. Projects has been designed. Implementation of the project will tremendously contribute in cost effective cash flow of the organization.

Key Management Personnel The Group employs qualified professionals to look after the day-to-day management activities of the company. The Company has already employed a Technical Advisor who has substantial experience in the Fast Moving Consumer Goods (FMCG in the country. The company has also engaged a number of experienced consultants for various activities such as biological, technical, financial and civil construction. These consultants have implemented such projects earlier. The project will require about 65 personnel in Farming, Marketing, Distribution, Finance and Administration and will be employed as and when required.

SL NO: ITEMS QUANTITY(Personnel)

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1 Farming 402 Administration 203 Marketing 24 Sales & Distributions 3

Total 65

PROJECT COST AND FINANCING MODE

Project Cost and Mode of FinanceItem BDT (Tk.) (%)Land & Land Development 3,04,80,000.00 8.08%Building & Civil Works 7,48,65,000.00 19.85%Imported Machinery 5,50,08,910.00 14.58%Local Machinery 40,97,625.00 1.08%Animal 7,77,00,000.00 20.60%Other Assets 71,79,900.00 1.90%Preliminary & Pre-operating Exp. 14,55,000.00 0.38%Contingency 54,50,875.00 1.44%Deposit 7,00,000.00 0.18%IDCP 48,00,000.00 1.27%Total Fixed Cost 26,17,37,310.00 69.42%Initial Working Capital 11,52,96,000.00 30.57%Total Project Cost 37,70,33,310.00 100%

Means of FinanceItem BDT (Tk.) (%)Sponsors:Paid up Capital 10,46,94,924.00 40 Equity From Sponsors:- Total Equity Debt: Bank Finance: Long Term 15,70,42,386.00 Total Debt 15,70,42,386.00 60Total Equity & Debt 26,17,37,310.00

Equity 40% 10,46,94,924.00Debt 60% 15,70,42,386.00

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INFRA-STRUCTURAL FACILITIES

Land and Land DevelopmentThe plant will be located at Village: Chowbari, Post: Chowbari, Upazilla: Kamarkhanda, District: Sirajgonj, Bangladesh in 333 decimal of land. The land is adjacent to the highway and about 110.00 KM away from Dhaka City. The power grids have crossed through the project site.

Building and Civil WorksThe space requirement has been worked out on the basis of preliminary layout plan provided by the machinery and equipment supplying company. The representative of supplier will also provide, load data, piping and electrical arrangement of the building in course of time. The floor space of the project has been estimated to 4000 sq. ft. for office and Animal Shade 15x30 (20 Nos) & 20x30 (30 Nos) feet measured Pre-Fabricated structural features.

A Local engineering consulting firm and a local architect firm have been given the overall responsibility for designing and supervising the civil engineering works under the design guidance provided by the machinery suppler and also Farm consultant of Animal health unit. A professional construction firm has already been given job of construction works. The construction works will include building for Animal living shade facilities, Siloes & feed, equipment , Utilities , Biogas plant , ETP ,Water treatment plant, spare parts store, generator room, boiler room, pre-fabricated overhead structure and others.Detailed list of civil construction has been given in the Annex.

Utilities

POWER

Electricity from rural electricity supply source will be used for this project instead of Fancy Farm Generator. The project will have its own captive power generating facility of Bio gas plant mounted. The own power supply will not only provide uninterrupted power supply but also provide at cheaper cost. The electricity requirement for the project has been estimated about 280KW for which one gas generators of 350 KVA will be installed.

WATER

The project will install a deep tube well to fulfil the water requirement of the project.

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NATURAL GAS

The project will consume natural gas of 1000 CuM/h for generator, boiler, Chillers and others, which will be made available nearby own biogas pipeline.

STEAM

The project will require about 100 kg/hr. of steam, which will be generated by a boiler, run by biogas, installed project site.

FUEL AND LUBRICANTS

Fuel and lubricants such as diesel, petrol, grease etc. will be required for vehicles, generator, boiler, plants and other equipment.

MACHINERY & EQUIPMENT

Imported Machinery and EquipmentThe project will procure machinery and equipment mainly from India and Taiwan. The suppliers will supply all the required machinery & equipment for thermophile milk chilling, laboratory equipment, and other related materials. A detailed list of the imported machinery and equipment is enclosed in the annex.

Local Machinery and EquipmentSome machinery and equipment will also be sourced locally. The locally sourced items include, but not limited to, deep tube well, wooden pallet, pallet truck and others.

Spare PartsThe supplier will provide 12 months spare parts along with the main plant. However, the company may source the spare parts from the various suppliers including the machinery supplier in order to meet future requirement.

Erection, Installation and CommissioningErection, installation, test-run and commissioning will be carried out by the local technicians under the overall supervision and guidance of the experts deputed by the supplier. The company will bear the traveling, lodging and dinning expenses of the technical personnel deputed by the supplier.

Technical AspectDuring beef fattening, cow feed meal storage, silos, roughage, water, UMS processing equipment and bulk storage system will be controlled by skilled farmers at Animal living areas. Beside these, Milking cow and its feed as per formulation of livestock executives are to be arranged within the project

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premises. Raw milk will be collected using auto milking machine and pre-processed into thermo-chilling equipment and reserve into aseptic milk tank at two time intervals. For the support of milk chilling, boiler, chillers, milk tank, CIP unit, WTP, are to be commissioned as per guidelines of professional technologist.

From the beef fattening plant, the matured cow will be directly sold out to the selected slaughtering house at rural and urban areas of Bangladesh to meet up every days beef meet demand.After Chilling of raw fresh milk, the reserved milk will be transferred to selected Dairy manufacturers at Dhaka city area through their vehicles at morning and evenings.

Environmental IssuesThe project will not emit any toxic or hazardous chemical because of biological wastages. The cleaning waste and animal wastes will be carried out into biogas plant of solid portion and liquid portion at ETP. The waste cow dang will be preserved for bio fertilizer production and supply to Farmers for cultivation.

The MARKET

Competitive ScenarioThe company is entering into the market with 2 different product lines. Each products line will be facing different competitors. The following table provides main competitors in the different product lines:

Product Lines Main Competitors Beef Fattening Line Cow Meat

Bio gasFertilizer

Milking Cow Fresh Chilled milkCalf Bio gasFertilizer

The Product and The PriceThe product lines of the proposed project are Beef Fattening and Milking. The company will follow the Index pricing strategy relative to the competitors available.

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The DistributionThe company will establish strong distribution network with selected clients through own networks initially throughout Bangladesh Raw milk will be sold out to selecte4d Dairy processing units such as Akij , PRAN , Brac, Igloo , polar , Golden harvest etc. Fattened cow will be distributed to the selected Slaughtering house at Dhaka or other areas after maturation period of Animal. With Quality product, strong brand image and wide distribution network along with the help of seasoned sales personnel, Fancy Agro Farms is expected to have easy penetration in the market.

The PromotionThe company has planned to carry out a massive promotional campaign in the launching year as well the subsequent years for establishing the brand image as premium quality products at a competitive price with best value for money.

The communication objective will be to build the awareness and loyalty as well as establish the brand image as “people’s brand”. Thematic campaign will be sharpened through above-the-line activities in one hand, drive awareness and brand image through below-the-line activities on the other. The promotional activities will include:

Acquisition of billboard, hoarding, neon sign in strategic location throughout the country.Continuous TV campaign with branded programBrand merchandising using sticker, dangler, bunting

FINANCIAL ASPECT

Relationship with Banks & Financial InstitutionsThe group has a good working relationship with each of the following banks and financial institutions:

Bangladesh Krishi Bank Sonali Bank Rupali Bank

Financial HighlightsDetailed financial projections including assumption are enclosed in the Annexure.

Annexure I.

1. Cost of the Equipment and Machineries (Foreign): of 57

Sl No.

Name of the Equipment/ME

Qty Unit Price

Sub Total In Tk.

Total Amount

in Tk.1 Thermo cooling

Chilling PlantCap: 20000 Lt

1 80,000 USD

62,72,000.00 62,72,000.00

2 Milking M/e 10 3,000 USD

23,52,000.00 23,52,000.00

3 Duel/Fuel Generator(350KA)

1 70,000 USD

54,88,000.00 54,88,000.00

4 Boiler (1.5MT) 1 54000USD

42,33,600.00 42,33,600.00

5 Milk collection Vat (40 Ltr)

50 2500 Rs. 1,62,500.00 1,62,500.00

6 WTP 1 33,00,000 Tk.

33,00,000.00 33,00,000.00

7 ETP 1 2000000 Tk.

2000000.00 2000000.00

8 Bio Gas plant 2 5500000 Tk.

11000000.00 11000000.00

9 Feed Vehicles (Mini Tractor)

3 400000 Tk.

1200000.00 1200000.00

10 Feed Chiloe, 2000 MT 1 1500000 Tk.

1500000.00 1500000.00

11 Milk Scanner and Lab 1 500000 Tk.

500000.00 500000.00

12 Vehicles 4 3000000 Tk.

12000000.00 12000000.00

Sub Total 5,00,08,100.00

5,00,08,100.00

(+) 10% (Duty, Carrying, Insurance etc.) Charge

50,00,810.00

50,00,810.00

Total 5,50,08,910.00

5,50,08,910.00

*US Dollar conversion rate considered 78.40/BDT Tk.*Indian Rupees conversion rate considered 1.30/BDT Tk.

2. Local Equipment:

Sl No.

Name of the Equipment/ME

Quantity Unit Price (Tk.)

Total Amount in (Tk.)

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1 Trolley 50 10000.00 500000.002 Basket 200 500.00 100000.003 Feed Mixer 20 100000.00 2000000.004 Grinder 5 100000.00 500000.005 Weighing scale 10 20000.00 200000.006 Balcha 100 250.00 25000.007 Water Bucket 150 200.00 30000.008 Cutter 200 200.00 40000.009 Cleaning Tools 50 150.00 7500.00

10 CIP 1 500000.00 500000.00Sub Total 39,02,500.00

(+) 5% (VAT and Others) Charge 1,95,125.00

Total 40,97,625.00

3. Cost for Structure, Building and others:

Sl No

Structures and features

Specification Quantity

Unit price in

(Tk.)

Amount in (Tk.)

1 Pre Fab Tin Shade for Beef Fattening

15X30 feet /shade20 No Animals

20 5,00000.00

10000000.00

2 Pre Fab Tin Shade for Milking Cow

20 x30 feet10 Animals /shade

30 700000.00

21000000.00

3 Pre Fab Tin Shade for Calves

20 x50 feet30 Animals/Shade

10 900000.00

9000000.00

4 Utilities Shade 30x40 feet Boiler, Generator and WTP

1 1300000.00

1300000.00

5 Chilling Frame 15x15 feet concrete flat floor Aseptic fittings

1 2800000.00

2800000.00

6 Cow Dang reservoir

50 MT Ponds 2 250000.00

500000.00

7 Dry Grass 40x40 feet 1 3400000 3400000.00 of 57

Storage Shad .008 Stores, PFT

Shad40x40 feet 2 1400000

0.002800000.00

9 Factory Office, Building

2000 sq. ft.(Two stayered)

1 8000000.00

8000000.00

10 Security Fence, Wire Mesh and pillar

Boundary 1,40,000 sft

1 2000000.00

2000000.00

11 Security System

500 sft 1 500000.00

500000.00

12 Water Pipe fitting

As per Measurement

qs 1000000.00

1000000.00

13 Drainage system

All to ETP 1 1000000.00

1000000.00

14 Electric connection

As per measurement

qs 75000000.00

75000000.00

15 Wash room 1500 sft 1 500000.00

500000.00

Sub Total 7,13,00,000.00

(+) 5% (VAT and Others) Charge 35,65,000.00

Total 7,48,65,000.00

4. Cost of Furniture& Fixture:

Sl No

Name Qty in pcs

Unit Price in (Tk.)

Total Amount in (Tk.)

1 Computer 13 50000.00 650000.002 Laptop 2 70000.00 140000.003 Printer 4 17000.00 68000.004 Scanner 2 12500.00 25000.005 Photostat Machine 1 150000.00 150000.006 Internet, Wi-Fi 1X100 500000.00 500000.007 CC Camera 40 15000.00 600000.008 Television 2 150000.00 300000.009 Table 20 10000.00 200000.0010 Full Secretary Table 3 200000.00 600000.0011 Revolving Chair 15 15000.00 225000.0012 Visitor Chair 30 8000.00 240000.00

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13 Sofa Set 6 40000.00 240000.0014 Office Cabinet 20 25000.00 500000.0015 Chair 100 600.00 60000.0016 Books and Stationeries QS 200000.00 200000.0017 Telephone set 1/20

Units200000.00 200000.00

18 Bench 30 3000.00 90000.0019 Dinning set 2 set 100000.00 200000.0020 Rest room furniture 2 set 500000.00 100000.0021 Animal Hospital

equipmentsqs 600000.00 600000.00

22 Air Cooler 8 , 1.5 T 100000.00 800000.0023 Disinfectants qs 100000.00 100000.0024 Animal medicine qs 50000.00 50000.00

Sub Total 68,38,000.00(+) 5% (VAT and Others)

Charge3,41,900.00

Total 71,79,900.00

5. Cost of Utilities:

Sl No Parameters Unit Price Total consumption

Total cost in Tk.

1 Electricity Tk.7.50 2000000.00

2 Gas Bio gas from plant

1000000.00

3 Diesel Tk.66.00 3000000.00

6. Cost for Animal

Sl No

Types of Animal Animal (Qty)

Unit Price in Tk.

Amount in Tk.

Remarks

1 Cow for Beef Fattening (Middle, Male )

400 50000.00 20000000.00

2 Milking Cow(30 Ltr. base Bovine)

300 180000.00 54000000.00

Sub Total 74000000.00

(+) 5% (Carrying and Others) 37,00,000.

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Charge 00Total 7,77,00,00

0.00

Annexure: II

1. Production of two variants from the Farm after positive start up the biological Agro business stated bellows:-

The operation will be governed in two groups such as i. Beef Fattening gp and ii. Milking gp, as a whole the total animals and their outcomes i.e. Meat , Raw Milk , Bio Gas & Cow dung fertilizer are to be saleable outputs from the farm . The earning from the out puts are to be income returns and value added tools for Prime Operation.

A. Products from Milking cowsRaw milk will be collected from each milk @ 30 Ltr = 300 Animal x 30 Lre x 255 days annually i.e. 2295000 Lre x Tk.44/unit = TK.10, 09, 80,000.00

B. Sales of Fattened cowsThe cycle will be 3 annually = 400 animals x 3 cycles= 1200 AnimalsOn an average 40% yield per animal after beef fattening = 40% price addition / animalsI. Purchased cost Tk. 50000.00 / animals x 1200 no’s = Tk.

60000000.00II. Sailing price Tk. 80000.00/Animalx1200 no’s = Tk.

96000000.00C. Cow dung

i. From Fattening cows =5Kg x 270days x 1200 No’s = 1620MTii. From Milking cows =7 kg x 365days x 300 no’s =760MT (Say)iii. Dry matters from the raw cow dung 2380 MTX 30%=714MT

Sailing price = Tk. 10,000 /MT x 714MT= Tk. 7140000.00

Annexure: IIIEstimated cost of Feeding of Fancy Agro Farming ProjectNutrition and Supplements The primary purpose of keeping animals is to transform feeds into meat, milk, wool, mohair and eggs. The conversion of feed to these uses must be done efficiently and economically. Ruminants require a basal diet of roughage in the form of pastures or conserved feed with supplementation to augment specific nutrients at various stages of production cycles. Animals must get sufficient fiber, energy, protein, minerals and vitamins to remain healthy and productive. Another most important nutrient is water. It is important to have

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a knowledge of feed or feed ingredients that supply each of the required nutrients and the importance of each nutrient in animalsEnergy - As plants mature it becomes less available.- Energy is supplemented to achieve high growth rates.- It can be supplemented in finishing animals or at strategic times in producing animals.Proteins- The protein content is high in the young growing plants and falls as theplant matures.- Required for production and reproduction.- Grass has high protein content when still young.Minerals- Very important in the health of animals.- Animals in many parts of the world get less that their exact requirementfor different minerals.- Phosphorus is low in many parts of the worldVitamins- Are necessary for normal growth, production, reproduction and health.- Sometimes it is necessary to supplement animals with vitamin A duringdry period.SupplementationMost roughages are low in quality and must be fed with energy feed.Feeding of animals is not just about gut fill- an error done by many. Gut fillwithout proper nutrition lead to digestive problems.Hay- best saved for drought feeding- usually expensive in feed value terms and difficult to get during drought.- Can be fed every second day- Bale weights are important- Buy in tonesSilage- Silage is a complete feed rather than just a supplement- Quality varies, depending on how the silage was made.- Can be fed every second day.Grain- Must be mixed with protein sources- Best supplement for late pregnant and lactating cows.- Sorghum is best cracked- One percent limestone must be added- Feed every second day.Protein blocks/lick- Best used in the early drought phase.

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2. Estimation of feeding for Beef Fattening Animals are as bellows:

A. F-1: Formulation for UMS Feed

Sl No Feed Meal ingredients

% of ingredients as per formulation

Cost /unit

Cost/100kg

1 Dry rice Straw 82 3.00 246.004 Urea 8 30.00 240.005 Molasses 10 45.00 450.00

100 kg 936.00Per kg 9.36

As per in taking formula, only 1% of UMS of the body wt of each cow = 1 kg and the dose will be at morning and evening i.e. 2 kg per day. Cost /Day=Tk.19.00

F-2: Normal Feed

Sl No Feed Meal ingredients % of ingredients as per formulation Cost /unit Cost/100kg

1 Rice Bran 10 16.00 160.002 Oil Cake 5 25.00 125.00

3 Vitamin premix 0.01 1500.00 15.00

4 Green grass 40 2.50 100.005 Salt 0.1 20.00 2.006 Feed Meal 20 12.00 240.00

7 Maize silage (0.8-1.0 cm long) 25 5.00 125.00

Cost/100kg 767.00Intake @15% as per daily intake = Tk. 116.00 (Body weight)

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Free Grassing

Total cost for feeding of Beef Fattening cow per day =Tk. 135.00

B. For Milking Cow

Sl No Feed Meal ingredients % of ingredients Cost /unit Cost /100kg

1 Dry rice Straw 20 3.00 60.002 Rice Bran 12 16.00 192.003 Oil Cake 4 25.00 100.004 Green grass 30 2.50 75.005 Vitamin premix 0.01 1500.00 15.00

6 Maize silage (0.8-1.0 cm long) 20 5.00 100.00

7 Salt 1 20.00 20.008 Good quality grass hay 13 7.00 91.00

100 kg 653.00Cost per kg 6.53

Milking cow will intake @70% =Tk.457.00 per day

Annexure: IV Organizational Chart

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Chairman

Managing DirectorAdvisor and Consultants

Project In charge

Business Development Mgr

HR Mngr Supply chain Manager

Store Manager

Finance Mgr

Project Engineer

Electrician

Plant Operator

SupervisorSecurity In charge

Security Gourd General Labor

Office Asst.

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Summary: 65Project Engr: 1

Manage: 5Project Engr: 1Electrician: 2Operator: 2

Supervisor: 4Security: 10

Office Astt: 6Labor: 30Driver: 4

Hand Feeding

Annexure V: Annual Salary Expenditure to operate the Project

SL No: Designation Number of Employ

Monthly Salary in Tk.

Annual In Tk.

1 Advisor 1 @Tk. 100000/-

100000.00 1200000

2 Project manager 1 @Tk. 50000/-

50000.00 600000

3 Business development manager

2 @Tk.40000/-

80000.00 96000

4 Supervisor 4 @Tk.20000/-

80000.00 96000

5 Project engineer 1 @30000/- 30000.00 360006 Plant operator 3

@Tk.15000/-45000.00 54000

7 Electrician 2 @Tk.10000/-

20000.00 24000

8 Procurement manager 1 @Tk. 30000/-

30000.00 36000

9 HR manager 1 @Tk. 25000/-

25000.00 30000

10 Security ln charge 1 @Tk.20000/-

20000.00 24000

11 Security guard 9 @Tk. 6000/-

54000.00 64800

12 Office assistant 6 @Tk.6000/- 36000.00 4320013 General labor 30

@Tk.6000/-180000.00 21600

Driver 2 @Tk.10,000/-

20000.00 24000

Total 770000.00 92,40,000.00

Annexure VI: Financial Analysis of the Proposed Projects

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Item Unit E. Factor Year 1 Year 2 Year 3 Year 4 Year 5

GeneralBeef Fattening Cow

Nos 1200 1200 1500 1500 2000

Cow Dung MT 714 714 892 892 1190

Milking cow Nos 300 300 350 400 400

Calf Nos 300 300 350 400 400

Rated Input/Year

Yeild /days

Beef Fattening Cow

Nos 270 days

1200 1200 1500 1500 2000

Cow Dung MT Yearly 714 714 892 892 1190

Milking cow Nos Yearly 300 300 350 400 400

Raw Milk Ltr/Milking cow

255 day 30 30 30 30 30

Calf Nos 180 days

300 200 250 300 300

Capacity 100% 100% 100% 100% 100%

Yearly # 1 1 1 1 1

Hour/Shift Hour 24 24 24 24 24

Day/Year Day 365 365 365 365 365

Economic Life Year 5 5 5 5 5

Implementation Period

Month 6

Revenue: Sale price, EstimatedBeef Fattening Cow

BDT/No 80000 85000 85000 85000 82000

Cow Dung BDT/Kg 10 10 10 10 10

Raw Milk BDT/Ltr 44 44 44 44 44

Calf BDT/No 75000 75000 75000 75000 75000

Cost of Goods : Product SalesBeef Fattening Cow

BDT 96000000.00

102000000.00

127500000.00

127500000.00

164000000.00

Cow Dung BDT 7140000.00

7140000.00

8900000.00

8900000.00

11900000.00

Raw Milk Ltr/yr 100980000.00

100980000.00

117810000.00

134640000.00

134640000.00

Calf BDT 22500000.00

22500000.00

26250000.00

30000000.00

30000000.00

Total 2266200 2326200 2804600 3010400 3405400 of 57

00.00 00.00 00.00 00.00 00.00

Item Unit E. Factor Year 1 Year 2 Year 3 Year 4 Year 5

Cost of the Animals Farming Milking cow BDT/Nos Tk.

180000.005,40,00,000

.005,40,00,000.

006,22,50,000.

007,05,00,000.

007,05,00,000.00

Beef Fattening cow

BDT/Nos Tk. 50000.00

2,00,00,000.00

2,00,00,000.00

7,50,00,000.00

7,50,00,000.00

10,00,00,000.00

Feed of the BFC

BDT/90 days

Tk. 135/days

1,45,80,000.00

1,45,80,000.00

1,82,25,000.00

1,82,25,000.00

24300000.00

Feed For Milking Cow

BDT/365 days

Tk. 457/day

5,00,41,500.00

5,00,41,500.00

5,83,81,750.00

6,67,22,000.00

6,67,22,000.00

Feed for Calf/6mo

BDT/180 days

Tk. 75/day 40,50,000.00

40,50,000.00

47,25,000.00

54,00,000.00 54,00,000.00

Total 14,26,71,500.00

14,26,71,500.00

25,90,81,750.00

23,58,47,000.00

26,69,22,000.00

Working Capital Estimate

Milking Cow Nos 300 4,95,00,000.00

Beef Fattening cow

Nos 400 2,00,00,000.00

Cow Feed Day 90 3,72,96,000.00

Other Expenses/Cash

Days 90 40,00,000.00

Total 11,52,96,000.00

Annexure VII: Projected Income Statement

Items Ref Year 1 Year 2 Year 3 Year 4 Year 5

Gross Revenue 226620000.00

232620000.00

280460000.00

301040000.00 340540000.00

VAT 0.00% 0 0 0 0 0

Total Revenue 226620000.00

232620000.00

280460000.00

301040000.00 340540000.00

Cost of Production 138171500.

00138171500.

00214081750

.00231347000

.00 262422000.00

Gross Profit 88448500.00

94448500.00

66378250.00

69693000.00 78118000.00

Operating ExpensesMarketing & Selling Expenses 1% 2266200.00 2326200.00 2804600.0

03010400.0

0 3405400.00

Distribution Expenses 0.5% 1133100.00 1163100.00 1402300.0

01505200.0

0 1702700.00

General & Admin yearl 23496000.0 23496000.0 29981600. 29981600. 29981600.00

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Expenses, Salaries y 0 0 00 00

Utilities cost 3000000.00 3000000.00 3000000.00

3000000.00 3000000.00

Depreciation& Amortization 9062200.00 9062200.00 9062200.0

09062200.0

0 9062200.00

Financial Expense 8% 4800000.00 9600000.00 9600000.0

0 8800000.0

0 7700000.00

Total Operating Exp 12461500.

0012551500.

0013269100

.0013577800

.00 14170300.00

Contribution to WPPF 75987000.0

081897000.0

053109150.

0056115200.

00 63947700.00

Income Tax 2.5% 1899675.00 2047425.00 1327728.75

1402880.00 1598692.50

Profit After Income Tax 74087325.

0079849575.

0051781421

.2554712320

.00 62349007.50

AppropriationTax Holiday Reserve 180 days 0 0 0 0

Beginning Retained Earnings

88448500.00

94448500.00

66378250.00

69693000.00 78118000.00

Ending Retained Earnings 74087325.

0079849575.

0051781421

.2554712320

.00 62349007.50

1. Preliminary Expenses Item Description TotalProject Profile, Financial Analysis Fee 200000.00Consultancy Fee 200000.00Documentation and Legal Fee 100000.00Signing Ceremony Costs 50000.00Company Formation 75000.00Traveling & Conveyance 25000.00Bank Guarantee Charges 150,000.00Environmental & Other Studies 80,000.00Market Research 50,000.00Overhead during Implementation 25000.00Initial Advertisement & Promotion 500000.00

Total 14,55,000.00

2. Deposit

ItemDescription Total

Deposit for Gas Connection Bio gas plant 0

Deposit for Electricity Connection Rural 500000.00

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ElectricityOther Deposits 200000.00Total 700000.00

3. Contingency Fund: Item Cost Rate TotalBuilding & Civil Works 59300000.00 5% 2965000.00Foreign Machinery 46314500.00 5% 2315725.00Local Machinery 3902500.00 5% 195125.00Erection and Installation 1000000.00 5% 50000.00Other Assets 6838000.00 5% 341900.00Preliminary Expenses 1455000.00 5% 72750.00Total 118810000.00 5940500.00

4. Depreciation Schedule Item BDT % Total

Land & Land Development 30480000.00 5 1524000.00

Factory Assets: Factory Building 59300000.00 5 2965000.00Imported Machinery 46314500.00 10 4631450.00Local Machinery 3902500.00 10 390250.00Office Assets 6838000.00 5 300000.00Preliminary & Pre-operating Exp. 1455000.00 10 146950.00Contingency 5450875.00 10 545088.00IDCP 48,00000.00 5 240000.00Deposit 700000.00 5 35000.00

Total Fixed Cost10777738.00

RISK FACTORS

Failure to Achieve Desired QualityThe project envisages producing quality of Beef Meat, Raw chilled milk, biogas and bio fertilizer. The company might fail to achieve desired quality if any discrepancy of farming occurred. .

MITIGATION

The company will be installing state-of-the-art plant and machinery, follow modern and hygienic Animal farming, and experienced forces to achieve the desired quality.

Price Escalation of Raw MaterialsThe local and seasonal harvested feed including grasses , straw , silage and others sources price may increase which in turn make the project financially unrewarding.

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MITIGATION

Most of the feed of the farm are locally available although some of the raw materials and consumable may have to import from abroad like vitamins. The local raw materials are very much available in bulk at a cheaper price at the harvesting season. As a result the company has the plan to procure and store adequate raw materials during the season for the whole year. In general, increase of raw materials price will not affect the company only but also other competitor at the same time. In such case, a larger portion of the raw materials price increase may be shifted through the increase of the sales price of the final products.

CompetitionOver the couples of years, a number of big players have already entered in the market and graved a huge chunk of market share with wide distribution channel. These players are also financially very strong. Moreover, more new entrants, especially big conglomerates with strong financial muscle, might entire into this sector or massive expansion by existing companies may trigger a price war, which may impair the hegemony and profitability of the company.

MITIGATION

Most of the producers of such products are not structured and geographically located other than handful of players who have quality products with strong distribution channel. In any case, those big players are not the competitors as the demand-supply gap of such product is still there. A limited number of players exist in the market for the same that this company will be farming. The population of Bangladesh as well as the economy of the country is increasing day by day. As a result, the demand of such product will be increasing at the same pace.

Operational RiskThere is shortage of skilled human resource in Bangladesh to run such type of Agro Farm and it may create operational problem for the project.

MITIGATION

The supplier would provide training to the employees of the company by some of their experienced Animal and Dairy technologist. The training will be executed during the equipment erection, and commissioning of the plant and heath care with animal nursing. So, it is unlikely that company will face any difficulty in operating the project. Even after that, if the company face any problem in operation, the expert and farm supervisors will be available to help against problem.

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Implementation RiskImplementation period of the proposed project is around ten months from the date of opening the Letter of Credit for machinery and start up Animal farming. Any delay in implementation would result in cost overrun and adversely affect repayment capability.

Annexure: VIII- Technical Information of views of necessary doc for Afro Farming activities

Farm Milk tanks & Cooling and Storage Tanks

2. Material: SUS304-2B stainless steel, the thickness of inner wall is 2.5mm, the thickness of outer wall is 1.5mm;3. Insulation layer: PU vacuum foaming process to make the tank isolation, which has the perfect warmth keeping ability and keep the temperature within 1°C every 12 hrs.;4. Welding technology: TIG welding process, Buffing and Polishing, to obtain beautiful appearance and reduce the crack and pit. Easy to wash;5. Auto cleaning system: Equipment with automatic cleaning unit inside the tank and easily operate;6. Safety protection: There is an upper skid-platform above the tank made of the skid-proof plates with Φ25mm pipe handrails of 250mm height, to keep the operator safety;7. The design of manhole cover: All the covers are anti-overflow designed, to avoid the overflow and leakage of the milk;8. Drainage pipe: Each milk cabin has one separate drainage pipe, which uses Φ50×2.0 polished stainless steel pipe (Hygienic pipe) and pre-buried in the PU foam isolation layer to make sure no frozen occurs in winter and no odor occurs in summer swimmingly before unloading the milk, keep the milk fresh.9. Exterior design: The hydrodynamic-designed of long axis and short axis, to make sure the safety of driving;

Type Tanker size Weight Material

Compartments

Insulation

MC-10T

5600×2000×1400

10000kg

SUS304

APPLICABLE RANGE:1. Used as liquid storage tank, liquid composing tank, liquid blending tank, temporary storage tank and hot water tank etc.2. Ideal in fields such as foods, dairy products, fruit juice beverages, pharmacy, chemical industry and biological engineering

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STRUCTURE CHARACTERISTICS:1. Adopt structure of internal tank and external package, with heat preservation materials inside2. Materials are all sanitary stainless steel.3. Humanized structure design and easy to operate.4. Transition area of interior wall on tank adopts arc for transition to ensure no dead corner of sanitation.

CONFIGURATION OF TANK:1. Quick open manhole.2. Various types of CIP cleaners.3. Fly and insect resistant sanitary breathing cover.4. Adjustable triangular bracket.5. Dismountable materials input pipe assembly6. Thermometer (According to customer requirements).7. Ladder (According to customer requirements).8. Liquid level meter and level controller (According to customer requirements).9. Eddy-proof board

THERMO COOLING TANK CIP UNIT

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CIP system is a safe and automatic cleaning system, which is almost applicable for all plants of dairy food, food, beverage and pharmacy etc. CIP cleaning system can not only clean machines and equipment but also control the multiplication of microbes.Advantages:

1. Rationalize the production plan and improve the production capacity.2. Improve the product quality without affecting the cleaning effect due to the operator difference compared with hand washing.3. Avoid dangers in cleaning operation and save labor.4. Extend the service life of machine components.5. Available type: manual, semi-automatic and full automatic.

Milking machine

Feed Mixer

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http://smart-dairy.com/upfiles/201208317388578.jpg

Milk Storage Tank

Annexure: IX-Different structural features for Animal shade with full scape of Project design

Cow Shade

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Structural components to satisfying cow shade

SAND-LADEN MANURE HANDLING AND STORAGE

TABLE OF CONTENTS

1. Why Use Sand as Bedding2. Management of Sand in Stalls3. Challenges of Handling Sand-Laden Manure4. Anaerobic Digestion and Sand-Laden Manure5. Summary

Why Use Sand as Bedding

Sand has been used as a bedding material in free-stall barns for over 30 years. It has grown in popularity because of the benefits it offers to dairy cows. Some tie-stall producers are also using sand to take advantage of these benefits. Sand, however, has some limitations as it cannot be used in slated floor barns and it increases wear on manure-handling equipment because of its abrasive properties.

Sand bedding offers many benefits for the dairy cow:

is comfortable (Figure 1) provides excellent traction

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limits bacterial growth because it is inorganic does not produce hock abrasions is relatively inexpensive is easy to obtain in most parts of the province

One producer, when asked why he used sand bedding, stated, "I always knew that sand was good, but I never knew how well until we actually started using it!" Although an excellent bedding material for cows, it does result in some challenges when it leaves the stall and becomes mixed with manure. This Factsheet describes the use of sand as bedding and concentrates on the challenges of handling sand-laden manure.

Management of Sand in Stalls

Not all sand is created equal. Sand can vary from a very fine dust to a very coarse, almost-gravel material. The finer the sand, the better it will stay in suspension with manure. The coarser the sand, the easier it is to separate from the manure. Both these properties are important when deciding how to handle sand-laden manure.

Figure 1. Sand is an excellent bedding material for dairy cows.

It is important that the sand is free from small stones and contain very little clay, if possible. Small stones become lodged in the cow's hooves and cause lameness. If there is too much clay, the stalls will pack down, becoming hard and uncomfortable for the cows. If there is a source of sand on the farm, screen the sand to remove the stones or clay, if necessary.

The other source of sand is sand and gravel companies. These companies screen the sand and provide consistent quality. The sand will vary in

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texture from pit to pit, so it may be necessary to try a couple of sources before deciding on what best suits your needs.

Sand stalls are designed without a concrete base, but with a curb at the back to retain the sand. The curb should be about 20 cm (8 in.) high and 15 cm (6 in.) wide. It should be tapered on the inside, but not come to a point, as you want the cow standing on sand and not causing too much of a pressure point with the concrete.

Figure 2. Free-stall design for sand bedding.Maintain the sand surface in the stalls to provide a uniform slope about 5–8 cm (2–3 in.) above level at the front of the stall, tapering to the curb height at the rear of the stall (Figure 2). Fill the stalls regularly. The more often the stall is filled to maintain the recommended slope, the less sand the cows will kick out. If too much sand is added to the stalls at one time, the cows will paw at it until they get it to a comfortable depth. It is better to fill the stalls more often, with lesser amounts of sand, than once a month with a lot. Most producers fill stalls once every week or two. If stalls are not filled often enough, cows will dig down below the curb, and the stall length will be reduced by the width of the curb.Fill stalls with sand using a skid steer or tractor and bucket or with a specialized sand slinger. Using a bucket on the front end loader, the skid steer or tractor has to turn 90° in the scrape alley to dump into the stalls. To allow for this turning, it is important to have alleys at least 2.7 m (9 ft.) wide. Sand slingers, as the name implies, are used to throw sand into the stalls. They come in two basic types, a bucket slinger and a wagon slinger. The bucket slinger is used to both pick up the sand and throw it into the stall (Figure 3). The wagon slinger is pulled behind a tractor. It has a much larger capacity, so it will fill many more stalls than the bucket method before it has to be refilled.

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Figure 3. Using a sand slinger mounted on a skid steer to fill free stalls.

Maintain the stalls regularly. "Walk" the stalls with a rake to remove manure in the stalls and fill in any big holes. Some producers use special cultivator attachments to level the stalls and to loosen up the sand. Depending on the size of the sand particles, the sand can pack down and harden over time.

Producers use different devices to reduce their amount of sand use. One method is to bury car or truck tires in concrete and cover them with sand. Other sand saver options are available in the form of tire strips or expanded plastic strips. Reducing sand use is not always a positive thing – when the cow kicks sand out of the free-stall, the stall gets partially cleaned out. The best way to reduce sand use is to keep the stall uniformly full. A study of 57 Midwest dairy farms showed an average sand use of 24 kg (53 lb.) per stall per day. This amount can be cut in half by more frequent filling and stall management.

One sand saving method that does work well at reducing sand use, while not compromising cow comfort, is burying a type of cow mattress 5-8 cm (2-3 in.) below the sand. This stops the cows from digging deep holes and removing more sand than is necessary for cleanliness.

Challenges of Handling Sand-Laden Manure

The challenges of working with sand-laden manure are related to the physical properties of the sand. Sand has a density of 1,750–2,100 kg/m3 (110–130 lb./ft3) depending on its moisture content. Sand does not absorb moisture, so it adds volume to the sand-manure mix, while lowering the moisture content. In the end, the sand-laden manure is heavier, drier and grittier than manure with organic bedding. This increase in weight, volume and density makes sand-laden manure

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extremely hard on manure-handling equipment, especially on liquid manure pumps.

Collection

When handling sand-laden manure, the simpler the system, the better. The amount of labour and time available and the amount of automation desired determine the best approach. There are three methods used for collecting the sand-laden manure.

Scrape With Tractor or Skid SteerThe simplest method of collecting sand-laden manure is to scrape with a tractor or skid steer (Figure 4).

Figure 4. Using a skid steer to scrape and collect sand-laden dairy manure.

Rubber tire scrapers are used when the barn temperature is above freezing, but a metal scraper blade is necessary when the sand-laden manure starts to freeze. Scraping can only be done when the cows are being milked – two or three times per day. This can result in dirtier alleys, which may lead to dirtier cows. It is best to make the alleys wider when using this system, as the alley becomes a form of temporary manure storage.

Automatic Alley Scraper

Automatic alley scrapers allow for more frequent alley scraping than tractors or skid steers, resulting in cleaner alleys. Wear and tear on equipment is a major concern when handling sand-laden manure. Chain drive scrapers are not recommended because of the increased wear and tear. However, in extremely long barns with multiple scrapers, flat iron

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has been used to replace the chain between scraper blades, leaving only chain at the drive wheels.

Cable drive scrapers are more common. Use a galvanized cable when the scraper is first installed until the rough edges of the concrete are worn off. After that, use a better-quality stainless steel cable. Stainless steel cables are about three times the price of galvanized cable. Some cables now have a nylon coating. It is also a good idea to form a 2.5 cm wide x 6.5 cm deep (1 in. x 2½ in.) groove for the cable to track in. Some producers routinely replace their cable once a year, whether it looks like it needs it or not. They find that the cable tends to break shortly after a year's use, and it is better to pick the time to change it than having it break at an inopportune time.

Flush

The other method of collecting manure is a flush system. Although not common in Ontario, flush systems are used quite effectively to collect and transfer sand-laden manure. A flush system provides an opportunity to separate the sand from the manure. Flush systems for handling sand-laden manure are designed similar to flush systems for handling manure with organic bedding but may require higher volumes and speeds to move the sand-laden manure.

Transfer to Long-term Storage

Once the sand-laden manure is collected from the barn alleys, it is transferred to an intermediate system within the barn or directly to long-term storage. A variety of transfer methods can be used.

The simplest method of transferring manure is to use gravity. However, some traditional gravity transfer systems do not work well with sand-laden manure. Traditional systems consist of a vertical 750-900 mm (30-36 in.), smooth-walled pipe at the barn that drops to the level of the bottom of the manure storage, or slightly deeper. A 90° elbow or two 45° elbows connect the vertical section of pipe to the pipe that runs horizontally out to the storage. Sand will settle out in this system and plug it.

There are two types of gravity flow systems that work well when transferring sand-laden manure from the barn to long-term storage. One uses a trench, and the other a pipe.

Gravity TrenchThe trench transfer system consists of a rectangular trench 2.4–3 m (8–10 ft.) wide and the same depth as the bottom of the long-term storage. The trench extends under the barn and out to the manure storage (Figure 5). Manure is scraped from the alley and into the trench through openings or

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slats in the floor. The sand-laden manure flows from the trench into the manure storage. The manure level in the storage is the same as the level in the transfer trench. The sand, however, will settle out more in the trench, and build up a slope that is highest at the end of the trench furthest from the manure storage. During clean-out of the manure storage, the transfer trench is also cleaned out. For this system to work well, the manure storage must be as close to the barn as possible, usually 9 m (30 ft.) or less. Cover the opening to the trench at the manure storage with a heavy tarp to prevent wind blowing through the trench back into the barn.

Figure 5. Gravity transfer trench.Gravity PipeThe gravity pipe system consists of a pipe installed across the width of the barn. The 750-900 mm (30-36 in.) diameter pipe is installed 600-900 mm (24-36 in.) beneath the floor on a slope of about 0.2%-0.4% towards the storage (Figure 6). Slots are cut into the top of the pipe at the end of each alley. These slots are 20-25 cm (8-10 in.) wide and formed through the concrete to the surface. The pipe extends over the top of the manure storage, and it works best to cut a hole in the bottom of the pipe to allow the manure to fall through, and to plug or cover the end of the pipe to keep cold winds from blowing back into the barn. During freezing weather, manure may form from the storage up to the pipe and block the flow. Remove this manure with a high hoe or something similar.

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Figure 6. Gravity transfer pipe.

This system works best when the manure is collected with a tractor or skid steer. The flush of sand-laden manure each time the alleys are scraped seems to be enough to keep the sand-laden manure flowing through the pipe and out into the manure storage. Having the pipe buried 600-900 mm (24-36 in.) below the floor also provides some pressure to push the manure out. There is some debate about adding extra water to this gravity flush pipe. Some installations have directed parlour wash water through a separate pipe to the storage, while others have emptied the wash water in the top end of the gravity transfer pipe.

In either case, it is best to bury a 10-cm (4-in.) diameter pipe that can empty into the top end of the transfer pipe, from the long-term storage alongside the gravity transfer pipe. If the transfer pipe plugs, liquids are recycled from the long-term storage and used to clean out the transfer pipe.

Another variation on the 750-900 mm (30-36 in.) diameter gravity transfer pipe is to cut a 122-cm (48-in.) pipe in half and form it into the bottom of a 1.2 m (4 ft.) wide U-shaped trench (Figure 7). The trench is then covered with slats that the sand-laden manure can be pushed through. This design is useful where cattle need easy access across the transfer trench.

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Figure 7. Alternative design for gravity transfer pipe.Gutter CleanerThe most common method of mechanical transfer is to use a gutter cleaner (Figure 8), although the abrasion of the sand causes wear and tear on moving parts. When using a gutter cleaner, install extra reinforcing beneath the wear heel of the gutter cleaner chain. Heavy conveyor belting or 1 cm x 10-13 cm (0.5 in. x 4-5 in.) steel plate are sometimes used to prevent the chain from cutting into the concrete. The gutter cleaner is sometimes used to collect the sand-laden manure from the ends of the alley and transfer it to a pump, or to transfer it directly to a long-term storage. If the gutter cleaner extends beyond the barn to the long-term storage, keep the chain from freezing to the gutter. Cover and insulate the gutter trench beyond the barn. Install a heating cable in the bottom and sides of the trench to keep it from freezing. Another method is to install a small fan where the trench exits the barn, and blow warm barn air out through the trench to keep it from freezing.

Figure 8. Gutter cleaner for transfer of sand-laden manure.Hydraulic Shuttle

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Hydraulic shuttle cleaners can be used in a single gutter to transfer sand-laden manure, but the wear and tear on moving parts will increase.

Bucket Conveyor

A bucket conveyor can be used effectively to collect sand-laden manure from collection lanes and transfer it to long-term storage. Buckets are usually installed in 1 m x 1 m (3 ft. x 3 ft.) collection lanes. Once again, provide insulation and some heat to keep the bucket from freezing.

Hydraulic PumpWhen the long-term manure storage is located a distance away from the barn, the most common transfer system is a hydraulic pump specifically manufactured to work with sand (Figure 9). While these pumps have special valve systems to work with sand-laden manure, sand can still settle out in the discharge pipe. Install air injectors in the discharge pipe to clean out the line and prevent plugging.

Figure 9. Hydraulic pump for transferring sand-laden manure.Centrifugal Pump

Occasionally, centrifugal pumps are used to move sand-laden manure. It is important to have pumps with sealed bearings, designed to work with sand and to allow worn components to be easily replaced.

Separation

There are two reasons to try to separate the sand out of sand-laden manure. One is to reduce the wear and tear on the manure-handling components, and the other is to recapture the sand so that it can be re-used as bedding. There are a variety of ways that producers try to separate the sand from the manure.

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Static Separator With Settling Tank

Some producers have constructed systems that incorporate sand-settling tanks prior to the long-term manure storage. Overall, these have not performed very well. Depending on the size of the settling tank, both the manure and sand settle out and then flow over into the second tank. More sand is trapped in the first tank by using an adjustable level between the two tanks, but some will continue to flow through.

Static Separator With Two TanksSettling tanks have worked more effectively if two equal-sized tanks are used to store the sand-laden manure. In this system, all the sand-laden manure is collected in the first tank, and when the level reaches a certain height, the liquid is transferred by gravity or a pump to the second storage (Figure 10). With practice, most of the sand is trapped in the first tank. Most of the organic manure is trapped here as well. By carefully selecting when the liquid is transferred or carefully choosing the depth of the pump, mostly liquid is transferred to the second tank. The liquid in the second tank can be agitated and pumped, leaving very little sediment.

Figure 10. Static separation with two tanks.

Figure 11. Sand-laden manure flushed to settling tank. of 57

Flush/Settling Tanks

An alternative option to static settling tanks is a flush flume. Dilution water is pumped through a transfer pipe and flushes the sand-laden manure into a settling tank. As the sand-laden manure enters the tank, it changes velocity, and the sand settles out more rapidly than the manure (Figure 11). The liquid manure is then transferred to long-term storage or recycled through the flush flume pipe in the barn. The settling tank has an access ramp for easy entry so that a tractor and loader or skid steer loader can remove the sediment and pile it so that any further liquid drains back into the settling basin or into the long-term storage. The settled sand is not pure enough to be re-used in the stalls and must be applied to a field. However, enough sand is removed to make agitation and pumping of the long-term storage easier, resulting in less wear and tear on pumping equipment.

Figure 12. Sand-laden manure flushed into settling lane.Flush/Settling LanesA further improvement on settling tanks or basins are sand-settling lanes. These are long, wide lanes with very little slope where the sand-laden manure is flushed into one end, and the liquid leaving the opposite end is directed into the long-term storage (Figure 12). With a proper design, the coarse sand particles settle out next to the flush entrance with finer particles settling out along the length of the lane. The liquid and manure are left to flow into the long-term storage. The lane is designed with a ramp to allow the sand to be retrieved from the settling lane and piled beside the lane for drainage. When this system is working properly, the sand retrieved from the settling lane is clean enough to be re-used in the stalls. The recommended specifications for sand-settling lanes are: 3-4.6 m (10-15 ft.) wide (width based on inlet water volume) 38-91 m (125-300 ft.) long 0.1%-0.25% slope

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Some sand-settling lanes run 30 m (100 ft.) in one direction and then turn 180˚ and run in the opposite direction to save space.

Freezing conditions cause problems with settling basins and lanes. When the sand-laden manure starts to freeze, it will not settle properly. As a rule, the system will not completely freeze up, and liquid still finds a way through to the long-term storage, but the sand retrieved from the settling tank is not clean enough to re-use and will have to be field applied.

Figure 13. Mechanical separator for sand-laden manure.Mechanical SeparationThe most positive way to remove the sand from the sand-laden manure is to use a mechanical sand separator. There are only a couple on the market at present that are designed specifically to work with sand (Figure 13). The mechanical separators require dilution water to be added to the sand-laden manure. Air or extra water is added to the sand-laden manure to encourage separation. Attachments are available to further clean the sand.

With this system, the sand is re-used in the stalls. Over time, the fine sand particles are completely removed from the system, and the recycled sand becomes uniform in size and weight. The fineness or coarseness of the sand that is separated for recycling through the stalls is determined by how the machine is adjusted.

These machines are built with heavy-duty components to avoid wear and tear. They require extra water for dilution, and a number of pumps to provide a uniform supply of sand-laden manure to the separator and to transfer the liquid manure to long-term storage.

Other mechanical separators not designed specifically for separating sand can be used for partial sand separation and then used in conjunction with a sand-settling lane to achieve a reusable product.

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Long-term Storage

Sand-laden manure can be stored in any storage designed for liquid manure. Some producers have tried mixing straw bedding with sand-laden manure so that it will stack. This requires extra labour and extra bedding, and the result has not been positive. The sand-laden manure/straw mixture may stack to a height of 1.2-1.5 m (4-5 ft.), but becomes very fluid again if the storage is not covered. In the end, it is best to treat sand-laden manure as liquid manure. As such, sand-laden manure can be stored in either an earthen storage or a circular open-top concrete storage.

Since a certain amount of sand will settle out during agitation and pumping, there must be a means of cleaning out the sediment in the tank. Earthen storages can be equipped with a ramp that allows a tractor and loader or skid steer into the earthen storage. Some circular concrete storages have been built with a ramp into the storage. This ramp is too steep to allow entry of a manure spreader and tractor but allows a tractor and loader or skid steer into the tank. Ramps are a very expensive addition to the manure storage as the reinforcing steel is no longer continuous around the tank. To contend with the concentrated forces at the ramp location, extra reinforcing steel is normally added in this area and tied into a beam over the top of the ramp. Even then, some cracking and wall failure have resulted. Because of the extra expense and structural issues, ramps are not often used in these liquid storages.

Removal from Storage and Land Application

Removing sand-laden manure from the long-term storage presents many challenges. Most producers agitate the storage, pump off as much sand-laden manure using conventional liquid manure-handling equipment as possible, and then use a high hoe to remove the remaining sediment.

The finer the sand used as bedding, the more it will stay in suspension with the manure, and more is removed by agitating and pumping. Agitation of the sand-laden manure becomes as much of an art, as a science. It is best to agitate the storage from at least two locations, if not more. The trick is to agitate enough to mix the sand and manure so that the tank is emptied with a pump, without mixing so much that the sand starts to settle out and produce "sand bars" in the storage.

Once the tank is agitated, liquid manure pumps and manure tankers are used to empty as much of the storage as possible. Drag lines can be used, but the abrasiveness of the sand increases the wear and tear on all the pumps and equipment. Once all the liquid sand-laden manure is removed from the storage, there is a more solid, sand-laden sediment left in the

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bottom of the storage. There may not be enough volume to clean out every time the tank is agitated and pumped, but eventually the sediment has to be cleaned out. This is best done with a high hoe with at least two access points into the tank. The high hoe is used to scoop the sand-laden manure sediment into "V-box" side discharge manure spreaders, or other special manure spreaders designed to handle sand-laden manure. Some applicators use dump wagons with the tail gate chained so it will only allow a small, even flow of sand-laden manure out the back.

Once the high hoe can no longer reach any further, a small skid steer is boomed into the tank using the high hoe. The skid steer is used to push the sand-laden manure up to the high hoe (Figure 14). If the storage has a ramp, the skid steer is driven into the manure storage. This method is used to remove all the sediment from the tank and may only be needed once every year or two.

Calculating the nutrient content of the sand-laden manure spread on the field is another challenge. If both the liquid and solid portion are spread on the same field, it is not too difficult to determine the amount of nutrients going on that field. But often the liquid portion is spread on one field, and the solid portion is spread on another. If this is the case, collect nutrient samples for laboratory analysis of both the liquid portion and the solid portion. Adjust the application rates according to the individual nutrient contents of each material. Collecting representative samples of this material is difficult, and there is a lot of variability in nutrient content.

Figure 14. Cleaning sediment from sand-laden manure out of a manure storage.

Anaerobic Digestion and Sand-Laden Manure

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Many dairy producers are interested in developing biogas production from manure and wonder if biogas production is possible from sand-laden manure. At present it is not directly possible, due to sand settling in the digester and reducing its capacity over time. There are several anaerobic digesters working on dairy farms where sand is used as bedding, but the sand is first separated from the manure before it enters the digester. A continuously agitated digester would provide ideal conditions for sand separation within the digester, but at present this design has not been tried.

The other consideration is that separated solids from anaerobic digesters can be used as bedding. A number of producers have chosen this option and are quite happy with the results. In these systems, the stalls are designed similar to sand stalls with a curb at the back, but the digested solids are used instead of sand for bedding.

Summary

Sand provides an excellent bedding material for dairy cattle. It provides comfort, superior traction, reduces injuries and does not support bacterial growth. It is a low-cost material and readily available through most parts of the province.

Sand does increase wear and tear on manure-handling equipment. This is managed through careful selection of appropriate equipment. It takes extra time to fill and manage stalls, and emptying manure storages costs more than with other bedding systems. However, in spite of these drawbacks, dairy producers using sand are so happy with the benefits that it provides their cows, which they are willing to put up with the challenges.

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