Executive summary

Ellethu Farm is a farm established by 2 founding members. This is an plan for Ellethu Farm
feedlot project. The sole intention is to have a clear roadmap that defines the strategy to follow
to reach goals and how funding should be used.

The farm’s feedlot structure will be renovated a little bit and restarting capital will be E150 000
to cover everything. The target market are butcheries around Buhleni to Matsamo area. The
farm is only for commercial purposes. Such a business has become popular in the kingdom but
market research shows that there is still a gap in the industry because of high demand for meat.
The farm has also secured market with some established butcheries who have signed an
agreement to buy cattle from us. We are conscious of the challenge of sourcing the right breed
stock of animals from farmers.

For such a huge agricultural initiative it is expected to face a lot of risks. The first step in solving
such a predicament in agricultural production is having good management. The business has
employed a Farm assistant to ensure that the management practices on daily basis are always
at their best.

The financial statements are showing good returns on investment on the enterprise in the
form of profits. The cash flows are also showing healthy liquidity at all times. On the first year of
operation a huge amount of money will be spent on capital expansion which will not be bought
in the years to come. To expand off the enterprise, equity capital of E150 000 will be reinvested
by a 1 member.

Business Description
Ellethu Farm is a farm owned by 2 founding members of Mkhuzweni area. The business is a
feedlot with structure already build at Emkhuzweni an area under Mayiwane inkundla in the
Hhohho region. The business is operational and has had cow sales before.

The production in the business will be such that every month there is a batch of new animals
coming in and there is a batch of animals being sold out to the market. Each batch will be made
of 10 cattle increasing every intake and they will not be mixed in order to limit the spread of
diseases. While the feedlot will be the key activity of the business but the business will look to
complement the enterprise with a chicken vegetables production and a butchery in the near
future. The other projects enterprise will boost the feedlot while also generating more profit and
the butchery will assist in providing another viable channel for selling the product direct to
consumers.

The ownership of the business is limited to the 2 founding shareholders but transfer of
ownership is outlined in the by-laws of the co-operative. The shareholders of the co-operative
will be fully employed for running the day to day activities in the business. The objective of
shareholders will be to be responsible in monitoring the overall performance of the business
and take the executive committee to task if there are any shortcomings.
The shareholders have been successful in purchasing shares by providing structure and land
and expanding stock A total of E150 000 is raised to expand stock and other purchases.
Mission Statement

Vision

Short term goal

Long term goal

In the long run, the farm aims at being self-sustainable and expanding to more cattle at a time
then we will have our butchery.

Management team

Farm Managing Director

Ellethu Farm is owned by Elliot Dlamini who also is the founder of the feedlot and has managed
the feedlot for the past 5 years with good sales. He has so many years of experience in cattle
farming both traditional farming and commercial farming. Worked for Ngonini Estate for over
30years as Human Resources, General affairs and Security Manager. He also introduced beef
cattle farming for Ngonini estate by introducing the Brangus breed. His experience in human
resources and cattle farming is going to be very valuable for the Ellethu Farm.

Farm Manager
Sicelo Dlamini is the son and a shareholder to the farm and has added expansion funds to the
feedlot. He is currently working as a IT Officer for Ministry of Health An enthusiastic and
dedicated professional with extensive experience across all areas of IT Experienced in system
operations, and customer service of Information Technology. An exceptional someone who is
motivated to achieve targets. Can demonstrate a strong ability to troubleshoot and upgrade any
relevant IT device. A proactive individual with a logical approach to challenges, performing
effectively within a highly pressurized working environment. He will be running all administration
work transport and other logistics.

Production and operation plan

Operation plan
The business will specialize in the production cattle under feedlot management for three
months for supply of beef to butcheries and Eswatini Meat Industries. To ensure maximum
profits in this enterprise it is of paramount importance to observe and be vigilant on the health of
animals at all times. While the operation plan will seek to reduce all production costs but the
health of the animals will not be compromised. It is the duty of the us to strike the balance
between reducing production costs without compromising the quality of the product which also
include the health of the animals. Possible operation plan which is key in achieving all these
objectives simultaneously.
Feeding and nutrition

The farm will source animals between one and a half to about two years old those that could
actually be able to respond well to high energy diet. The steers should be within the range of
around 260 to 360 kgs. We also need to make sure that heifers are a good bread not traditional
breeds that will not adapt well to high concentrated diet because of metabolic diseases. We
need to give them supplements 1st before they are put in to feedlot then deworm all cattle and
with vitamins injections.

High energy diet is made up of 70% grain 20% roughage and 10% protein source, we use more
grains maize. We offer them little grass quantities rumen is made of digestive bacteria which
requires hp 6.5 to prevent metabolic and other stomach upsets. We will give them molasses to
control metabolic. Acidosis will be controlled by 100 g of milk of manganese. Laminitis we will
increase roughage diet. And good supplements on the diet.

Feeds

Molatek HPC 820

HPC 820 is a highly concentrated protein and mineral product used by bigger feedlots in
complete diets where a variety of raw materials are available. Molatek’s fattening
product formulations focus on achieving the lowest cost per kg mass gain.

ADVANTAGES:
 Stimulates feed intake, maximizes average daily gain and improves feedlot
profitability.
 Uses high-quality natural protein which is balanced according to the amino acid
profile needed for carcass
 development to optimize muscle growth.
 Mixes easily with the other feedlot raw materials into a complete feed
 A convenient way to get cattle market ready.
 Allows for the effective use of maize.
 Reduces acidosis and bloat in calves.
 Prevents feeding disorders and coccidiosis.
 Ionophores improve growth and feed conversion of calves

Molatek - Zilmaster concentrate

Zilmaster contains Zilmax, a redistribution agent that channels nutrients to the muscles,
delays fat deposits and muscle catabolism. It increases the protein content in the
muscles resulting in increased muscle mass. Molatek’s fattening product formulations
focus on achieving the lowest cost per kg mass gain.

ADVANTAGES:
 Produces heavier carcasses especially in early-maturing cattle breeds and
heifers.
 Increases dressing % by an average of 3%.
 Better meat-to-bone ratio.
 Better meat-to-fat ratio.
 Increases meat mass, especially in the hindquarter
Feeding instructions:
 We will commence with feeding the Zilmaster ration were animals
have already reached a 2 fat grade.
 We will feed the diet for the last 30 days of the finishing period.
 Animals must have free access to the complete mix.
 We will Feed roughage ad lib separately in the cafeteria system.
 Estimated roughage intake will be 10% of total feed intake per day.
 If withdrawal: Replace the Zilmaster in the ration with hominy chop, maize or
molasses meal for the last three days before slaughter to adhere to the
withdrawal period.

Molatek Bypass

Molatek Bypass is a urea-free, high-quality protein concentrate for ruminants (including

non-ruminant game) that consists of 30% crude protein.

ADVANTAGES:
 Uses a combination of a minimum of three different natural plant protein sources
taking into account the essential amino acid profits le requirements and
deficiencies of ruminants.
 The amino acid profits of Molatek Bypass ensures improved muscle
development, wool growth and milk production.
 Complements the microbial protein composition of the rumen, improving
production in intensively kept ruminants.
 Highly effective when used in rations for high production animals, such as sheep,
during late pregnancy and early actuation.

APPLICATION:
 5 – 10% inclusion in feedlot starter rations and creep feed mixes.
 5 – 10% in rearing rations and supplements for bulls and rams.
 5 – 10 % inclusion in dairy rations.
 Can be used as a replacement for cotton and soya oil cake

Molatek Beef Fat 33+ is a specially formulated protein concentrate that when
used in a complete or cafeteria finishing diet ensures economical beef cattle
finishing. Molatek’s fattening product formulations focus on achieving the lowest
cost per kg mass gain.

ADVANTAGES:
 Stimulates feed intake, maximizes average daily gain and improves feedlot
profitability.
 Uses high-quality natural protein which is balanced according to the amino acid
profit le needed for carcass development to optimize muscle growth.
 Mixes easily with the other feedlot raw materials into a complete feed.
 A convenient way to get cattle market ready.
 Allows for the effective use of maize.
 Reduces acidosis and bloat in calves.
 Prevents feeding disorders and coccidiosis.
 Ionophores improve growth and feed conversion in calves.
 Can be used in cafeteria and complete rations.
  Suitable to finish bulls and show cattle.

Molatek Molasses Meal is made up of 75% high-quality molasses (high brix) absorbed
on 25% sugar cane pith. It is high in energy making it suitable for a wide variety of
rations.

ADVANTAGES:
 Given the synergistic effect of sugar with other starches in increasing animal
production it is a good replacement for 10 – 20% of grain in rations.
 Can provide some of the fiber needed in rations when roughage is in short
supply.
 A rich source of minerals, trace elements and especially B vitamins in a highly
absorbable form.
 Easily mixed ensuring high-quality molasses in a manageable form.
 Reduces the dustiness of the diet, therefore increasing feed intake.
 Serves as a good binding agent when making pellets.
 Increases feed intake due to palatability and improved feed texture resulting in
increased production.
 Has no negative impact on rumen pH as in the case of starch.
 increases fatty acid production in the rumen resulting in more energy available
for production.
 Increases microbial protein production resulting in more protein being available
for milk, meat and wool production.
 An excellent energy source on pastures/veld because it has a lower pasture
replacement effect than grain.
 Prevents dry gall sickness

COMPLETE DIETS FOR 10 CATTLES IN 3 MOTHS

1 MONTH 2 MONTH 3 MONTH
HPC 820 150 Kg 150 Kg
Molatek Beef Fat 33+ 480 Kg
(V17357)
Molatek Molasses 360 Kg 360 Kg
Meal (V7264)
Zilmaster 240 Kg
Hominy Chop 2010 Kg 2010 Kg 2100 Kg
Roughage 300 Kg 300 Kg Ad Lib
Molatek Bypass 150 Kg 150 Kg
(V21556)
Feed Lime 30 Kg 30 Kg
Total 3000 Kg 3000 Kg +- 2820 Kg

Health and vaccination

Feedlot cattle need a proper plan and management on diseases in order to avoid major loses.
Bulls that are being introduced must look healthier and not more than 2 years old and a good
breed that is resistant to feedlot diseases. We quarantine arriving cattle for while observing for
any health issues until it is fully vaccinated. We give our cattle supplements that also prevents
all rumen and digesting diseases like acidosis. Ruminal acidosis in feedlot cattle is a common
metabolic disorder of digestive origin with significant economic and welfare implications. The
main risk factors are high grain, low roughage diets because of their high rate and extent of
 degradation by rumen microbes.

Diet formulation should therefore consider the proportion, method of processing and type of
grain; the proportion, fiber concentration and particle size of forages; and the use of feed
additives. Grain and forage characteristics, and feed additives, may determine the rate and
amount of organic acids produced in the rumen

The treatment is rather simple: long-stem dry hay, free-choice or force-fed baking soda (sodium
bicarbonate), and rumen probiotics to repopulate the rumen with “good bugs.” This treatment
will be needed for a few days until manure stabilizes and appetite improves. Perhaps one of the
best and easiest ways we watch rumen health is to let our cows tell how they are doing If they
chew at least sixty chews per cud that they bring up. If chewing less than fifty chews per cud,
they are lacking fiber for the rumen mat. With good digestive health, manure should not shoot
out of cows like water from a hose but instead should “set up.” It also shouldn’t have any whole
grain in it. Capacity building to our employees is always going to be priority in the feeding and
mixing of feed and they will watch for all cattle health problems.

Vaccination against Botulism, Anthrax , Blackleg and Lumpy Skin Disease…..

Production plan

The planning in production is to have a sustainable production feedlot cows every month. To
implement the plan effectively, the farm will be divided into 2 panels of feedlots such
that animals in each panel do not mix. 1 panel will be the main panel will be constructed such
that it can accommodate up to 15 animals. A quarantine panels will also be constructed to
accommodate 5 animals. The cows received will be kept in the quarantine panel until they are
ready for the main panel and sold. This will allow the enterprise to have 10 to 15 cows
simultaneously available for market. The business will target animals that are between the ages
of 15-18 months since they can still gain the desired weight while also at the right tenderness.
The business plan is showing financial statements for the first 3 years after receiving the
funding and the input analysis will also show for the 3 years. The major inputs shown are: Beef
pan fattening meals, chop (umhungu) and the cows. The prices of the inputs increase annually
with the cows starting from E7000 to E8000 per cow on the first year and rising by E500 each
year to E9000 per cow on the third year. The Beef pan fattening meals increased from E400 on
the first year to E430 and E460 respectively while chop increased with 10% each year starting
from E120. For inputs like 14 bales and vaccines estimates have been made since the quantity
can vary depending on circumstances

Input analysis

The input analyses for the three years are shown in a table format with quantity of each input
purchased per month. The total coast per month of each input is also shown for Cattle feed and
chop while for cattle it is the total number of cattle present at each particular month. The cattle
will reflect to be present in the farm for 3 consecutive months after which they are expected to
be sold. The tables below show the input analysis for the Months in the years.
Option 1 Molatek
Item MONTH 1 MONTH 2 MONTH 3
QTY Kg Total KG Cost Total Cost QTY Kg Total KG Cost Total Cost QTY Kg Total KG Cost Total Cost
Cattle 10 8,000.00 80,000.00
HPC 820 3 50 150 500.00 1,500.00 3 50 150 500.00 1,500.00 0 -
Molatek Beef Fat 33+
(V17357) 0 - 0 - 10 50 500 250.00 2,500.00
Molatek Molasses
Meal (V7264) 7 50 350 180.00 1,260.00 8 50 400 180.00 1,440.00 0 -
Zilmaster 0 - 0 - 5 50 250 -
Hominy Chop 70 25 1750 100.00 7,000.00 70 25 1750 100.00 7,000.00 70 25 1750 100.00 7,000.00
Roughage 1 300 300 800.00 800.00 1 300 300 - Ad Lib -
Molatek Bypass
(V21556) 3 50 150 510.00 1,530.00 3 50 150 510.00 1,530.00 0 -
Feed Lime 30 0 - 30 0 - 0 -
Total 2700 2,090.00 92,090.00 2750 1,290.00 11,470.00 125 350.00 9,500.00 113,060.00

Option 2 Voermol
MONTH 1 MONTH 2 MONTH 3 3 MONTH COST
ITEM QTY Kg Total KG Cost Total Cost QTY Kg Total KG Cost Total Cost QTY Kg Total KG Cost Total Cost
Cattle 10 8,000.00 80,000.00
Voermol Super 80 3 50 150 500.00 1,500.00 3 50 150 500.00 1,500.00 0 -
Voermol Procon 33 6 50 300 500.00 3,000.00 6 50 300 500.00 3,000.00 0 0 0 - -
Maize Meal 14 50 700 180.00 2,520.00 8 50 400 180.00 1,440.00 0 -
Limestone 1 15 15 - 0 - 5 50 250 -
Hominy Chop 70 25 1750 100.00 7,000.00
Molatek Beef Fat 33+
(V17357) 30 0 - 30 0 - 10 50 500 250.00 2,500.00
Total 1165 1,180.00 87,020.00 850 1,180.00 5,940.00 125 350.00 9,500.00 102,460.00

Output analysis

The cattle will be purchase in batches of 10 per 3 months. The cattle will be fed for three
months before being sold. The selling price of the product is +- 13000 using the selling price of
E55- 60 per kg of carcass. The estimated carcass weight is 250kg per cow and for the head
and offal is added to make the Total amount. The selling price will not be increased in the
second year but will be increased in the third year to E15 000 per cow. The output analysis has
been summarized for the three years and shown in the table below.

Marketing Plan

Product
The product will be cattle kept in a feedlot for 3 months. The cattle will be sold as live animals or
as carcass to some customers.

Promotion
The business will promote the product to both suppliers (famers) and customers. Targeted
customers will be visited to advertise the products sold. Social media like Facebook and
WhatsApp will also be used to reach out to both suppliers and customers. Suppliers of cattle will
be given the best prices for their animals in order to encourage doing business with them again
in the future.

Price
The price will be charged at carcass weight @ E 55 per KG and even though the weight varies
with each cow but for the purpose of plan the average carcass weight will be 250kg. The head
and offal normally have a price of E1000 but E650 will be used to accommodate the price of
slaughtering.
Target market

The business targets to sell its product first to butcheries, individuals and Eswatini Meat
Industries.

Distribution channels
A van will be used to transport cattle from the farm to customers especially EMI. Individual
customers depending on the distance (more than 50km) may have to pay for transport.
Customers are also free to use their own transport.

SWOT Analysis
Strengths
 Inputs are easily accessible
 Production will be at large scale (benefit from economies of scale)
 the market for the product is unlimited
 there are only 2 shareholders making decision making easy
 business will get a grant giving the opportunity to have the required capital assets
 no loan repayment therefore business will have better chance of staying liquid and solvent

Weaknesses
 sourcing the required number of animals from farmers
 sourcing good breads
 animals will be sourced from different places (high transport costs)
 requires a lot of negotiation on business matters with people who are not business minded
 Requires a lot of capital for fixed assets

Opportunities
 The business has the chance to expand to other business enterprises like dairy and a butchery.
 Job creation in the Agricultural sector
 Creating a viable market for farmers who can start considering selling more cattle at a young
age.

Threats
 Theft of the stock
 Disease affecting stock
 Severe drought which may even affect boreholes

Financial plan
The financial statements are the major attraction in any business enterprise or organization. They are
of major interest to both the financers and the entrepreneur. For the purpose of this plan the financial
statements will show projections for the first 3 years of operation in the enterprise. The figures used are
based on quotations and market research conducted. The statements will show the cash flow
projections, income statements and the balance sheets.
Notes
The money for purchasing land will not appear because of the available structure.
Depreciation of fixed assets is charged at 20% using straight line method.
20% of net profit is to be reserved
From second year workers are to be given a bonus 10% of salary if the job has been done well.

Cash flow budget

Income statements

Balance Sheets

Financial statements analysis

Cash flow budget

For any enterprise money is the life blood of the business, a shortage of funds or liquidity can result in
severe losses especially in an agricultural enterprise. Money should always be available when needed
to purchase inputs, pay wages, and buy vaccines and other business obligations. Without wages for
the employee important business activities cannot be properly carried out because of lack of motivation
on the employee. There are many other business operations that require cash to be readily available
and otherwise they cannot be performed.
The cash flow budget shows that the business will be liquid throughout its operation. The business is
cautious of the importance of having the cushion of cash in cases where there is a need to buy attend
emerging disease which can be a threat to the product or any other expense. The business will not be
paying insurance but instead part of the profit will be set aside to as a reserve and it will be used as
insurance. The cash flows show that the business also has a provision for delinquency in payments
because the sales are recorded 2 months after the cow has been ready for sale.

8.4.2 Income statement

The income statement has a major attention in the eyes of business owners because it reflects how
much profit the business will make. It determines if the business is worth taking scare resources and
invest into it. All 3 years show good return on investment.

8.4.3 Ratio analysis

Net profit margin is given by (Profit after tax/sales)* 100 while the gross profit margin is given by (Gross
profit/ sales)*100.The net profit margin ratio depicts that the business will be able to honor expenses
and compensate the shareholders (Profit after tax/sales)* 100. The average net profit ratio for the 3
years is 11.7% and this shows that a greater portion of the sales is converted into profit. The liquidity
ratio cannot help in the analysis since there are no liabilities in the business.
9.0 Critical risk
Risk is an important aspect of the farming business. The uncertainties inherent in weather, yields,
prices, Government policies, global markets, and other factors that impact farming can cause wide
swings in farm income. Risk management involves choosing among alternatives that reduce financial
effects that can result from such uncertainties.

9.1 Production risk

Production risks relate to the possibility that your output levels will be lower than projected. These risks
may be a result of various sources such as extreme weather conditions, diseases, lack of fresh clean
water and poor management practices. These production risks would be managed through employing
strategies that would ensure production efficiency. These include provision of fresh clean water at all
times, cleaning the structure and timely application of disinfectant, provision of the correct feed in
appropriate amount, keeping records and looking after animals to identify diseases as soon as they
emerge. The animals will be kept in batches and cattle coming in on the same month will be kept
separately until they are sold in order to limit the spread of disease. The business has assembled a
competitive team to avoid getting production that is lower than the expectations.
The business is well aware of the risk of not getting enough animals from farmers which can directly
affect the production. The business will try to create a good working relationship with farmers and
support idea of paying more for younger animals so that famers will be willing to sell their animals while
they are still young. The business will in the long run start a dairy farm in a different location. The dairy
farm will be used to get calves that can be used in the feedlot once they are heifers or exchange with
farmers who will be interested in the dairy cattle for heifers to be used in the feedlot. While the dairy
enterprise will also be capturing profits at another level but will also benefit the feedlot.

9.2 Financial risk

Financial risks relate to not having sufficient cash to meet expected obligations, failing to break even or
generating very lower than expected profits. This may be due to market prices being lower than
projected sales price. This can be caused by product not meeting the required quality or change in
policies that can affect the availability of export in the industry. This may also be caused by increased
input costs and other variable costs and lastly a fall in quantity produced resulting
from theft and emergency of diseases. This will be managed by strict control of key farm expenses,
such as buying inputs, whereby prices from alternative suppliers will be looked at for the reasonable
price. Trend analysis will also be done to assess any change in farm profits and identifying the source.
In the cash flow sales have been sometimes shown a month after they actually occur. This is to make
sure that the by the time the money has been assigned for a certain activity it is already within the
coffers of the business.

9.3 Legal risks

Legal risks relate to fulfilling business agreements and contracts. Failure to meet these agreements
often carry a high cost. Legal risk can also be a result of environmental liability and concerns about the
smell and poor drainage. The co-operative also understands that it will be having employees which
have rights according to the labour laws which the business has to respect and consider at all times.
Even though the business will have no loan agreements but it is still a priority of the business to work
diligently and fulfil the expectations of the funders and even exceed if possible.