- Country: Zimbabwe
- Industry: Agriculture
- Stage: Start-up
- Investment size: $5,000,000 / min. $2,000,000
- ROI: 30% in 7 years
- Type of investment: Debt, Equity
Introducing dairy farming onto existing farming projects. Supplying milk to two milk processing plants nearby. Investment for buying cows and construction of parlor.
Currently Zimbabwe produces 57,5 million liters of milk per year which is far below the country's requirement of 150 million liters of milk. We therefore are interested in adding dairy farming to our existing crop and beef production enterprises on a 2500 hectare farm. With this in mind we therefore require a loan/equity to enable us to establish the dairy enterprise. The farm infrastructure enables us to produce up to 65% of the feed requirements thus lowering production costs.
Year 1 and 2 will see us marketing our milk to the two milk processing plants within a distance of 70km from the farm. In the 3rd year we aim to establish a milk processing plant which will take all our production.
As indicated Zimbabwe produces far less in terms of its milk requirements, leaving the milk processing plants operating at below 30% capacity therefore, us being close to two milk processing plant which are both capable of consuming an estimated production of 18 250 000 litres per year, competition does not exist.
Use of financing
The finance will be established as follows:
a) Purchase of Dairy cows from Republic of South Africa and New Zealand.
b) Construction of the Rotary milking parlor (70 stall),
c) Purchase of farm equipment (to increase the arable enabling the establishment of pastures.
d) Running costs for the first 6 months before production.
Opportunity for the investor
Investing in a very viable enterprise which will not only fill the gab but also improve the health of Zimbabwean people through availability of the milk. This will result in the investor earning a higher return on his/her investment. Risk will be minimized through the engagement of highly qualified and experienced managing team coupled with consultancy.
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