Ugandan Subsistence Mixed Farming Practice with 25% ROI

Opportunity Snapshot

  • Country: Uganda Uganda
  • Industry: Agriculture
  • Stage: Initial growth (first revenues)
  • Employees: 8
  • Investment size: $68,000 / min. $35,000
  • ROI: 25% in 3 years
  • Type of investment: Equity

Investment Opportunity

Funding is needed to buy land for agriculture, purchase poultry birds, goats, construct a farm house, provide local government licences.

Upon accessing financing the company will purchase five acres of land. One acre will be used for poultry farming, e.g. chicken, ducks, and turkeys, which will be bought from reputable poultry farmers. Another acre of land will be used for rearing of domestic animals such as goats and cows. Banana plantains will be farmed on one acre. By the second year we will start vegetables and fruits farming on the remaining land.

Product Lines:

1. Chicken and eggs for sale.
2. Goats, their meat and milk products.
3. Banana plantains, juice, leaves and young plantains for sale.
4. Fresh fruits (mangoes, guavas, oranges, apples, pineapples) and vegetables (amaranth, cabbages, carrots, green pepper, sour tomatoes, tomatoes).

The products will be sold in some market outlets within Kampala (Nakasero, Kalerwe, Kawempe), Luwero and Industries that are into fruits processing. The population of Kampala is 2 million during the day and 1.2 million at night. The population grows at 3.6% per year hence increasing and reliable market for our products/services.

Snapshot on Product Line #1: Poultry Farming

Products: Local and improved Chicken Breeds, Turkeys, Eggs.

End user: Shop Owners, restaurants/hotels, schools, hospitals, snacks takeaways, markets, poultry products processors within Kampala, Luwero and Nakasongola Districts

Product’s value to the customer:
Poultry products are very nutritious and are a good measure to avoidance of diseases. Poultry farming practices knowledge/skills can help Ugandans become job creators hence income generation. Poultry farming wastes can be used as organic manure and bio gas production; generally better living conditions

Reasons people are willing to pay for this product/service:
People like having poultry products for their breakfast, lunch and dinner as it is a staple Ugandan dish. Also Ugandans in poultry farming would pay for the products since they are aware of profit potential in the products once they recognize they can do similar business.

Main distribution channel:
Sales personnel will transport products using a hired truck initially (and company truck as business reaches the break-even-point) for animals and birds or hired van for eggs and milk products to selling points.

Patent available: In progress

Trademark available: Yes

Production and delivery process:
Acre of Land will be purchased for poultry farming. An appropriate shelter will be erected and birds introduced to it. There will be egg laying points where birds ready to lay eggs will go. The eggs will then be removed and safely kept in egg trays ready for transportation to the designated markets. The delivery to customers will be by use of hired trucks or vans initially before company trucks and vans are purchased depending on profitability of the business.

The unit of this product/service is: Trays

Competitive Advantage

Main barriers to entry in this market:
1. It requires concentration.
2. Acquiring funding to invest.
3. Dedicated employees.
4. Acquiring land for the business as earnings are meager in Uganda.

Competitors' primary market is: Central Uganda (Kampala Business District)
They have been active for 16 years in this market and their market share is: 30 %

Our main advantage over competitors is: Our business is to be upcountry based and our marketing strategy will be cheap but effective.

Rationale for the deal

I have experience in farming but mostly on subsistence basis. However, I am a quick learner and will surely undergo relevant courses in modern agriculture methods, business growth and financial management to help business growth.

I have great opportunity because 80% of the Ugandan populace are employed in agriculture but not for profit. This will make me rule the market.

I will make money through processing poultry and animal feeds to sell in supermarkets and shops for easy access.

Use of financing

Funding is needed to buy land for agriculture, purchase poultry birds, purchase goats, construct poultry and animal houses, construct a farm house, pay wages and salaries, pay of transport costs over a year, provide for medical insurance for workers and local government licences.

Opportunity for the investor

I am looking for a silent investor for equity investment. I am offering 25% on Return on Investment (ROI) after 2.5 years of operation. The investor should be ready to leave the business after 7 years, by which time he/she will have recouped his/her investment.

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