BUSINESS PLAN 'Pig-Breeding Complex' (including financial model)
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Project purpose
Construction of pig-breeding complex with fattening capacity of 13,100 heads per year.
Project content
Construction of pig-breeding complex with fattening capacity of 13,100 heads per year.
The enterprise will also include the own mixed fodders guild.
Thanks to the usage of high genetic potential animals on projected enterprise with modern innovative and resource-saving technologies of keeping, raising and fattening, food preparation, waste disposal, etc. there will be provided sustainable and highly profitable meat production for supplies to consumers in Ukraine.
Estimated Project Cost, EUR
General cost of construction and equipment: *** EUR, including:
Presumptive calculated credit for 100% of project capital cost (*** EUR, 5 years term, 10% per annum)
Projected production indicators
Pig meat (live weight) – *** thsd. tones/year
The total volume of sales (net)– *** EUR/year
Basic efficiency indicators
Internal rate of return – 12,03 %
Net Present Value for 5 years – *** EUR
Payback period of investment – 45 months
Fiscal efficiency
Annual tax payments of the pig-breeding complex exceed *** thsd. EUR, including the region budget – 277 thsd. EUR.
Capitalization
According the financial forecast, capitalization (market value) of pig-breeding complex in 2011-2015 will be between *** to *** mln. EUR.
After finishing of investment loan the indicate of capitalization is projected at level of *** mln. EUR (year 20**)
Exchange Rate
Is recalculated on date of project calculation.
Planned object details
The pig-breeding complex will include the contour of industrial pig-breeding (fattening complex) and mixed fodders guild. Nowadays (June 2011) project is in the initial phase of implementation. The enterprise allocation is scheduled for lands, which are in long-term lease. The calculated area of land allocation are 10 hectares for objects of pig-breeding complex contour and mixed fodders guild in *** region.
Projected pig-breeding complex with a complete production cycle will be intended for even producing and fattening of pigs on the basis of industrial technology. The walkless technology of animal keeping and feeding by liquid, pasty and dry food will be applied.
The base of technological cycle of pork production will be a commodity reproducer of fattening complex (landrace + duroc, landrace + yorkshire, landrace + large white), on its basis the reproduction of the main feeding livestock will be implemented.
Final product of pig breeding complex
Data about projected volumes of pig complex final product in the amount of its units and contours.
Excerpts from the research
Industrial pig-breeding is concentrating around large consumer markets – in ***, Donetsk, Dnepropetrovsk and Zaporozhye region (the share of industrial pigs in livestock is 70-80%). Large meat processing plants are focused in the western Ukraine – about *** % of domestic production of sausages (Dnepropetrovsk region– *** %, Donetsk and Poltava regions – *** % each, Kharkov and Lugansk – *** % each).
Regional concentration of pig livestock and meat processing enterprises defines the difference between regional purchase prices for live pigs (which reaches *** %). The highest prices in Ukraine was observed in Lugansk region and also in *** and neighboring Zhytomyr and Chernihiv regions (+ *** % to average in Ukraine).
Pig raising and fattening technology in the complex
In industrial complexes of pig raising and fattening the 3-phase technology (growing – growing up – fattening) is adopted.
Flow-guild technology of pork production requires a high level of animals’ concentration, narrow specialization of facilities and service staff.
With the flow-guild technology on the crevice floor in 7-day rhythm at regular time intervals in standard technological groups piglets grow on suckling for 28 days with following distribution on growing up for 49 days and then – on fattening for 105 days. The maximum period before slaughter is no more than 182 days.
The continuity of the flow production depends on reproductive period, which includes: idling period – 7 days; gestating – 115 days; suckling – 28 days. So, reproductive period is 150 days, under the most favorable conditions it allows to obtain 2.4 farrowing a year.
Project purpose
Construction of pig-breeding complex with fattening capacity of 13,100 heads per year.
Project content
Construction of pig-breeding complex with fattening capacity of 13,100 heads per year.
The enterprise will also include the own mixed fodders guild.
Thanks to the usage of high genetic potential animals on projected enterprise with modern innovative and resource-saving technologies of keeping, raising and fattening, food preparation, waste disposal, etc. there will be provided sustainable and highly profitable meat production for supplies to consumers in Ukraine.
Estimated Project Cost, EUR
General cost of construction and equipment: *** EUR, including:
- construction and installation works: *** EUR
- equipment: *** EUR
Presumptive calculated credit for 100% of project capital cost (*** EUR, 5 years term, 10% per annum)
Projected production indicators
Pig meat (live weight) – *** thsd. tones/year
The total volume of sales (net)– *** EUR/year
Basic efficiency indicators
Internal rate of return – 12,03 %
Net Present Value for 5 years – *** EUR
Payback period of investment – 45 months
Fiscal efficiency
Annual tax payments of the pig-breeding complex exceed *** thsd. EUR, including the region budget – 277 thsd. EUR.
Capitalization
According the financial forecast, capitalization (market value) of pig-breeding complex in 2011-2015 will be between *** to *** mln. EUR.
After finishing of investment loan the indicate of capitalization is projected at level of *** mln. EUR (year 20**)
Exchange Rate
Is recalculated on date of project calculation.
Planned object details
The pig-breeding complex will include the contour of industrial pig-breeding (fattening complex) and mixed fodders guild. Nowadays (June 2011) project is in the initial phase of implementation. The enterprise allocation is scheduled for lands, which are in long-term lease. The calculated area of land allocation are 10 hectares for objects of pig-breeding complex contour and mixed fodders guild in *** region.
Projected pig-breeding complex with a complete production cycle will be intended for even producing and fattening of pigs on the basis of industrial technology. The walkless technology of animal keeping and feeding by liquid, pasty and dry food will be applied.
The base of technological cycle of pork production will be a commodity reproducer of fattening complex (landrace + duroc, landrace + yorkshire, landrace + large white), on its basis the reproduction of the main feeding livestock will be implemented.
Final product of pig breeding complex
Data about projected volumes of pig complex final product in the amount of its units and contours.
Excerpts from the research
Industrial pig-breeding is concentrating around large consumer markets – in ***, Donetsk, Dnepropetrovsk and Zaporozhye region (the share of industrial pigs in livestock is 70-80%). Large meat processing plants are focused in the western Ukraine – about *** % of domestic production of sausages (Dnepropetrovsk region– *** %, Donetsk and Poltava regions – *** % each, Kharkov and Lugansk – *** % each).
Regional concentration of pig livestock and meat processing enterprises defines the difference between regional purchase prices for live pigs (which reaches *** %). The highest prices in Ukraine was observed in Lugansk region and also in *** and neighboring Zhytomyr and Chernihiv regions (+ *** % to average in Ukraine).
Pig raising and fattening technology in the complex
In industrial complexes of pig raising and fattening the 3-phase technology (growing – growing up – fattening) is adopted.
Flow-guild technology of pork production requires a high level of animals’ concentration, narrow specialization of facilities and service staff.
With the flow-guild technology on the crevice floor in 7-day rhythm at regular time intervals in standard technological groups piglets grow on suckling for 28 days with following distribution on growing up for 49 days and then – on fattening for 105 days. The maximum period before slaughter is no more than 182 days.
The continuity of the flow production depends on reproductive period, which includes: idling period – 7 days; gestating – 115 days; suckling – 28 days. So, reproductive period is 150 days, under the most favorable conditions it allows to obtain 2.4 farrowing a year.
EXECUTIVE SUMMARY
1.0. MARKET ANALYSIS
1.1. Pock market tendencies in Ukraine and in the World
1.2. State Program of Pig-Breeding Stimulate
2.0. BASIC PARAMETERS OF PROJECTED PIG-BREEDING COMPLEX
2.1. Conceptual characteristics of Pig-Breeding Complex
2.2. Final Product of Pig-Breeding Complex
3.0. PLAN OF PRODUCTION ACTIVITIES AND CONSTRUCTION
3.1. Characteristics of Placement of Pig-Breeding Complex
3.2. General Pig-Breeding Complex Plan (principal scheme)
3.3. Equipment and Production Structure of Pig-Breeding Complex
3.4. Equipment and Production Structure of Mixed Fodders Guild
4.0. ASSESSMENT OF PROJECT BUDGET COST
5.0. PRODUCTION PLAN
5.1. Peculiarities of technological process organization
5.2. Pig Growing and Fattening Technology in the Complex
5.3. Sows Farrowing
5.4. Herd Completing
5.5. Veterinary Protection of the Complex
5.6. Final Product, Planned Production Volumes and Selling Prices
5.7. Feeds Providing
5.8. Providing the working capital requirements
6.0. PROJECT FINANCIAL FORECAST
6.1. Principles of Calculation and Consist of Financial Tables
6.2. Project Financing
6.3. Tables of Financial Forecast
7.0. RESULTS OF FINANCIAL FORECAST AND THEIR ANALYSIS
7.1. Basic Results
7.2. Analysis of Project Results Sustainability in Case of Risk Events Occurrence
INFORMATION ABOUT «VTS CONSULTING» COMPANY
APPLICATIONS
Table 1.1. Forecast of Pock Balance in Ukraine in 2011-2015, thsd. tones
Table 2.1. Projected Volumes of Final Product of Pig-Breeding Complex
Table 3.1. Explication of Objects of Pig-Breeding Complex General Plan
Table 3.2. Short Characteristic of Objects of Pig-Breeding Complex
Table 4.1. Assessment of Project Budget Cost of Pig-Breeding Complex Construction
Table 4.2. Aggregate Cost Structure for Pig-Breeding Complex Construction
Table 5.1. Indicative Forecast of Livestock Turnover of Pig Complex
Table 5.2. Basic Planned Indicators of Technological Process Efficiency of Pig Complex
Table 5.3. Planned Volume of Commodity Product of Pig Complex
Table 5.4. Wholesale Prices for Commodity Products of Pig Complex
Table 5.5. Balance of Requirements for Mixed Fodders of Pig Complex
Table 5.6. Balance of Recipe Ingredients for Mixed Fodders Production (in tons per year)
Table 5.7. Calculation of Working Capital Requirements for Pig Complex
Table 6.1. Indicative Plane of Servicing and Repayment of Investment Credit for Pig Complex Construction
BLOCK OF TABLES OF FINANCIAL FORECAST OF INVESTMENT FORECAST
I. Contour of Pig-Breeding – Basic Technical Parameters
1. Fattening Contour
II. Commodity Product and Calculated Sales Volume
2. Commodity Product
2*. Presumptive Calculated Sales Volume
III. Definitions of Semi-Variable Costs of Pig-Breeding (Considering the Intraeconomic Production of Mixed Fodders)
3. Fodders Consumption by Groups of Animals
4. Mixed Fodders Consumption
5. Ingredient Composition of Fodders. Calculated Prices for Ingredients
6. Consumption of Mixed Fodders Ingredients
7. Labor Costs
8. Energy Carriers
9. Water
10. Veterinary and other costs
IV. Gross Pig-Breeding Revenue (Considering the Intraeconomic Production of Mixed Fodders)
11. Presumptive Calculated Gross Revenue
V. Working capital requirements
VI. Gross Revenue on Actual Commodity Product
VII. Semi-Fixed Costs
VIII. Financing and Servicing of Credit Resources
IX. Financial Results
X. Cash Flows
XI. Key Indicators of Economic Efficiency
Table 7.I. Reduction of Production Capacity Level (for Definition – by 15%)
Table 7.II. Forced Reduction of Selling Prices for Final Commodity Product
Table 7. III. Prices Growth for Fodders
Table 7.IV. Growth of Tariffs for energy carriers/gas, electricity
1.0. MARKET ANALYSIS
1.1. Pock market tendencies in Ukraine and in the World
1.2. State Program of Pig-Breeding Stimulate
2.0. BASIC PARAMETERS OF PROJECTED PIG-BREEDING COMPLEX
2.1. Conceptual characteristics of Pig-Breeding Complex
2.2. Final Product of Pig-Breeding Complex
3.0. PLAN OF PRODUCTION ACTIVITIES AND CONSTRUCTION
3.1. Characteristics of Placement of Pig-Breeding Complex
3.2. General Pig-Breeding Complex Plan (principal scheme)
3.3. Equipment and Production Structure of Pig-Breeding Complex
3.4. Equipment and Production Structure of Mixed Fodders Guild
4.0. ASSESSMENT OF PROJECT BUDGET COST
5.0. PRODUCTION PLAN
5.1. Peculiarities of technological process organization
5.2. Pig Growing and Fattening Technology in the Complex
5.3. Sows Farrowing
5.4. Herd Completing
5.5. Veterinary Protection of the Complex
5.6. Final Product, Planned Production Volumes and Selling Prices
5.7. Feeds Providing
5.8. Providing the working capital requirements
6.0. PROJECT FINANCIAL FORECAST
6.1. Principles of Calculation and Consist of Financial Tables
6.2. Project Financing
6.3. Tables of Financial Forecast
7.0. RESULTS OF FINANCIAL FORECAST AND THEIR ANALYSIS
7.1. Basic Results
7.2. Analysis of Project Results Sustainability in Case of Risk Events Occurrence
INFORMATION ABOUT «VTS CONSULTING» COMPANY
APPLICATIONS
Table 1.1. Forecast of Pock Balance in Ukraine in 2011-2015, thsd. tones
Table 2.1. Projected Volumes of Final Product of Pig-Breeding Complex
Table 3.1. Explication of Objects of Pig-Breeding Complex General Plan
Table 3.2. Short Characteristic of Objects of Pig-Breeding Complex
Table 4.1. Assessment of Project Budget Cost of Pig-Breeding Complex Construction
Table 4.2. Aggregate Cost Structure for Pig-Breeding Complex Construction
Table 5.1. Indicative Forecast of Livestock Turnover of Pig Complex
Table 5.2. Basic Planned Indicators of Technological Process Efficiency of Pig Complex
Table 5.3. Planned Volume of Commodity Product of Pig Complex
Table 5.4. Wholesale Prices for Commodity Products of Pig Complex
Table 5.5. Balance of Requirements for Mixed Fodders of Pig Complex
Table 5.6. Balance of Recipe Ingredients for Mixed Fodders Production (in tons per year)
Table 5.7. Calculation of Working Capital Requirements for Pig Complex
Table 6.1. Indicative Plane of Servicing and Repayment of Investment Credit for Pig Complex Construction
BLOCK OF TABLES OF FINANCIAL FORECAST OF INVESTMENT FORECAST
I. Contour of Pig-Breeding – Basic Technical Parameters
1. Fattening Contour
II. Commodity Product and Calculated Sales Volume
2. Commodity Product
2*. Presumptive Calculated Sales Volume
III. Definitions of Semi-Variable Costs of Pig-Breeding (Considering the Intraeconomic Production of Mixed Fodders)
3. Fodders Consumption by Groups of Animals
4. Mixed Fodders Consumption
5. Ingredient Composition of Fodders. Calculated Prices for Ingredients
6. Consumption of Mixed Fodders Ingredients
7. Labor Costs
8. Energy Carriers
9. Water
10. Veterinary and other costs
IV. Gross Pig-Breeding Revenue (Considering the Intraeconomic Production of Mixed Fodders)
11. Presumptive Calculated Gross Revenue
V. Working capital requirements
VI. Gross Revenue on Actual Commodity Product
VII. Semi-Fixed Costs
VIII. Financing and Servicing of Credit Resources
IX. Financial Results
X. Cash Flows
XI. Key Indicators of Economic Efficiency
Table 7.I. Reduction of Production Capacity Level (for Definition – by 15%)
Table 7.II. Forced Reduction of Selling Prices for Final Commodity Product
Table 7. III. Prices Growth for Fodders
Table 7.IV. Growth of Tariffs for energy carriers/gas, electricity
