IRISH POTATO2016 FARMI! "u#$ne## %&an
Author: Roch Enock Date: 10/15/2016
0
CONTENTS 1. Executive summary 2. Operational plan Production requirements and conditions Location Personnel Suppliers Credit policies
. !ar"etin# plan $ndustry analysis Tar#et mar"et%customers Competition &nticipated c'allen#es ()mont' sales *orecast
+. ,inancial plan Start)up requirements ()mont' pro*it and loss pro-ection Cas' *lo statement
/. &ppendices !ar"et researc' studies ,armers experiences Common c'allen#es *aced y *armers
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1. Executive summary T'is ill e t'e *irst tomato *armin# pro-ect and ill involve t'e estalis'ment o* to #reen'ouse tunnel on a *ree'old piece o* land in eric'o. reen'ouse *armin# is a modern ay o* #roin# crops t'at involve t'e #roin# o* crops in an arti*icially controlled environment t'at ensures reduced susceptiility to diseases and increased yield o* crop. Plants are *ed nutrients t'rou#' a drip irri#ation system and t'ey are #ron in t'e most suitale conditions3 'ic' allo eac' plant to produce t'e maximum *ruit possile. T'e #reen'ouse met'od o* *armin# ill 'ave t'e *olloin# advanta#es4 5i#' tomato yield 6educed disease attac" 6educed laour costs since operatin# t'e system is not laour intensive. Consistent production o* t'e crop irre#ardless o* t'e prevailin# season 7ni*ormity o* crops in terms o* si8e and quality
T'e demand *or tomatoes 'as een and still remains 'i#' in t'e country due to t'e *act t'at most enyan *amilies use tomatoes as a asic in#redient in most o* t'eir meals. Tomato #roin# usin# #reen'ouse tec'nolo#y is steadily pic"in# up in t'e country. T'e customers *or our products ill include t'e *olloin# mar"et se#ments in eric'o and its environs4 5otels3 eatin# -oints and lod#in#s Open air !ar"ets Supermar"ets Sc'ools and colle#es roceries and independent retailers Customers uyin# *rom t'e *arm
T'e total pro-ect ill cost a sum o* s's 11+3000. Operations is intended to start in t'e mont' o* 9une 201: and e#in ma"in# sales y mid au#ust or early Septemer. $n order to ensure continuity o* supply3 an additional #reen'ouse ill e put up e*ore t'e *irst crop dies out. T'is ill ensure t'at t'ere are no #aps in supply 'ic' leads to loss o* customers.
2. Operational plan Production T'e tomatoes ill e #ron in to lo cost #reen'ouse tunnels; one measurin#
2
T'e
o* tomato in one season i* proper mana#ement is put in place. T'e
Production 6equirements and Conditions T'e tomatoes ill e #ron *olloin# recommended conditions and *ertili8er re#imens. i> Temperature 4 T'e optimum temperature *or most tomato varieties lies eteen 21 and 2+ ?C. Tomato plants react to temperature variation durin# t'e #rot' cycle =see Tale 1>3 *or seed #ermination3 seedlin# #rot'3 *loer a nd *ruit set and *ruit quality. $* cool or 'ot eat'er spells persist durin# *loerin#3 pollen production ill e lo. T'is ill in*luence *ruit *ormation. Stages
Temperature (° C) Min.
Optimum range
Max.
Seed germination
11
16-29
34
Seedling growth
18
21-24
32
Fruit set
18
2-24
3
!ed "olour de#elopment
1
2-24
3
ii> Soil4 Tomatoes pre*ers deep3 ell drained3 sandy loam soils. Soil dept' o* 1/ to 20 cm is needed to #ro a 'ealt'y crop. @eep plou#'in# allos etter root penetration. Tomato is moderately tolerant to a ide ran#e o* p5 =level o* acidity>3 ut #ros ell in soils it' a p5 o* /./ A :.< it' adequate nutrient supply and availaility. iii> Transplantin# 4 Transplant t'e seedlin# to t'e *ield to : ee"s a*ter soin#. & ee" e*ore transplantin#3 seedlin#s s'ould e 'ardened y reducin# t'e application o* ater3 ut 12)1+ 'ours e*ore t'ey are ta"en out o* t'e seeded t'ey s'ould e t'orou#'ly atered a#ain to avoid excessive dama#e to t'e roots. Seedlin#s o* 1/)2/ cm tall it' )/ true leaves are most suitale *or transplantin#. Transplantin# s'ould e done in t'e a*ternoon or on a cloudy day to reduce t'e transplantin# s'oc". Bater t'e plants immediately once t'ey 'ave een transplanted. B'en removin# t'e seedlin#s3 "eep a lar#e clump o* soil attac'ed to t'e roots to prevent t'em *rom ein# dama#ed. Spacin# o* :0x+/ cm s'ould e oserved. Press t'e soil *irmly around t'e root3 and ater around t'e ase o* t'e plant to settle t'e soil. iv> ,ertili8ers and !anures 4 5orse manure 'as t'e est alance o* nutrients. Co manure 'as relatively little p'osp'ate. Pi# manure is usually ric' in mineral salts ut 'as relatively little potassium. !anure *rom #oat and s'eep is also #ood or#anic manure. Poultry manure is usually t'ree to *our times as stron# as *armyard manure. $t is a very valuale "ind o* manure as plants can easily asor t'e nutrients *rom it. $t is also suitale *or acid soils ecause it contains a lot o* calcium =al"aline>. $t is important to 'ave manure t'at is ell decomposed3 and 'ic' is not too stic"y or too et.
C'emical *ertiliser =except *or calcium> does not improve t'e soil structure ut enric'es t'e soil y addin# nutrients. e*ore plantin#3 t'e soil is *ertilised y applyin# or#anic matter. Tomato is usually #iven a comination o* or#anic and c'emical *ertilisers. ,oliar application o* nutrients =i.e. to t'e leaves> is advisale to improve t'e yield.
Location T'e *arm ill e located in eric'o on a *ree'old piece o* land. T'e said piece o* land 'as access to reliale supply o* piped ater necessary *or irri#ation and is easily accessile to t'e main road =eric'o)isumu 'i#'ay> t'us ensurin# t'at produce ill easily e delivered to t'e mar"et.
Personnel Tom ill act as t'e pro-ect mana#er 'o ill e responsile *or overall mana#ement. Na"u" ill assist in t'e day to day operations o* t'e #reen 'ouse. T'e or" involved is not laour intensive and t'ere*ore only one employee is required. Tom ill oversee t'e pro-ect3 maintain proper records and accounts and ensure t'e produce is e**ectively mar"eted. Na"u" ill e #iven t'e necessary trainin# to competently carry out t'e operations. $n addition3 a compre'ensive sc'edule and ritten procedures ill e prepared in order to #uide t'e employee on t'e procedures. T'is is important in case o* any c'ance o* *or#et*ulness.
Credit policies Some o* our sales ill 'ave to e credit sales. Sales to supermar"ets3 sc'ools and some 'otels ill 'ave to e credit sales due to t'e purc'asin# policies o* suc' customers. T'e credit period ill e t'e su-ect o* a#reement it' t'e individual customers and ill not e a lan"et predetermined period. 5oever3 e ill set our maximum repayment period at one mont' in order to ensure proper cas' *lo. e*ore ta"in# on any ne credit customer3 e ill *irst estalis' t'eir credit)ort'iness. T'is ill e done y consultin# it' t'eir suppliers *or ot'er products to estalis' t'eir repayment 'istory. $* e estalis' a 'ealt'y payment 'istory3 e ill t'en a#ree on t'e payment terms. Be ill also *actor in t'e cost o* extendin# credit into our prices.
. !ar"etin# plan !ar"etin# ill e one o* t'e ma-or pillars o* t'is venture. 5avin# quality products is meanin#less i* t'e product is not ou#'t y customers. $mmense emp'asis s'ould t'ere*ore e put on mar"etin# and sellin# o* t'e product. & proper mar"et researc' ill e carried out in due course.
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$ndustry analysis !ost o* t'e re#ions in enya produce tomatoes 'ic' are mar"eted in t'e local mar"ets. T'e produce mar"eted in t'e i##er cities t'at is Nairoi3 !omassa3 Na"uru3 isumu3 Eldoret and ot'er ma-or tons are sourced *rom irinya#a district 3!eru central3 Nyeri @istrict3 Na"uru district3 Taita Taveta @istrict3 Eldoret and estern enya. T'e Sout' 6i*t re#ion does not produce as muc' tomatoes and t'ere*ore t'e demand is su**icient. T'e demand *or tomatoes 'as een constant ecause it is indispensale in a ma-ority o* enyan meals)most *amilies use tomatoes in at least to meals every day.
Customers T'e mar"et *or tomatoes is se#mented into t'e *olloin# main cate#ories o* customers4
Sc'ools and universities T'ere are many sc'ools and colle#es in eric'o t'at ill provide a #ood mar"et *or our products. T'ese include ipsi#is irls3 eric'o 5i#'3 !oi Tea3 apteeset3 TTC etc. Supermar"ets Supermar"ets in eric'o Ton include Na"umatt3 7"ala3 Sta#emart and Tus"ys. Open air !ar"ets Sellin# at mar"ets is est done t'rou#' a#ents. T'ere are a numer o* mar"ets 'ere e ill e ale to sell our products4 eric'o ton mar"et3 apsoit mar"et3 apsuser mar"et etc $ndependent retailers and #roceries Be ill also tar#et retailers y emp'asi8in# competitive pricin# and consistent supply o* tomatoes. Customers uyin# directly *rom t'e *arm Experience 'as s'on t'at t'e numer o* customers attracted y sellin# direct *rom t'e *arm is quite considerale. T'is met'od o* sellin# involves loer prices since t'ere are no extra costs and t'ese loer prices attract quite a numer o* customers. 5otels3 lod#in#s3 eatin# -oints T'is is one o* t'e est mar"et se#ments. T'e demand *or tomatoes y 'i#') end 'otels3 middle class restaurants and ac"street eatin# -oints is p'enomenal and is ound to ensure t'at our produce sells ell.
/
Competition T'ere are a *e tomato *armers in t'e re#ion. !ost are *armers plantin# in open *ields 'ere t'ey are a**ected y ot' rains and diseases. T'e competitive advanta#e o* t'e #reen'ouse is its aility to produce quality tomatoes all year round.
&nticipated c'allen#es T'e production sta#e is expected to e #enerally 'assle)*ree. T'e main c'allen#e anticipated is in t'e mar"etin# sta#e. T'is is especially so durin# seasons 'en tomatoes *lood t'e mar"et. Be ill try to counter 'is y uildin# concrete relations'ips it' our clients3 emp'asi8in# our competitive advanta#es and concentratin# on a##ressive mar"etin#. $t ill also e di**icult to determine t'ese ounti*ul seasons ecause o* current erratic eat'er patterns.
Sales *orecast
9un Unit sales Total unit nil sales
9ul
&u#
Sept
Oct
Nov
@ec
9an
,e
Total
nil
nil
1.:tons 2/crts
2 ton 1crts
2./tons (crts
2./tons (crts
2ton 1crts
1.+tons 22crts
12 tons 1
23/00
23/00
)
DD3/00
//3000
467,500
Unit prices per crate (Kshs) – Based on low season 23/00 23/00 23/00 23/00 ) ) ) Sales (Kshs) Total nil nil nil :23/00 DD3/00 (D3/00 (D3/00 sales
Notes
Be ill not ma"e any sales in t'e mont's o* 9une3 9uly and &u#ust as t'e crop ill not 'ave matured. 5arvestin# e#ins mont's a*ter plantin# and e t'ere*ore expect our *irst sales *rom mid &u#ust to early Septemer. Production o* tomatoes varies *rom mont' to mont' dependin# on t'e sta#e o* #rot'. 1 crate o* tomatoes ei#'s :+ #s. Tomatoes are sold eit'er in crates or in ilo#rams. Be ill use ot' o* t'ese units in order to maximi8e pro*its. T'e sales *orecast covers a period o* ( mont's since t'is is t'e seasonal duration o* one crop.
:
+. ,inancial Plan .Start)up
expenses
Material
Quantit
1 2 + / : D < ( 10 11 12
1 *eet =+m> Corner Posts 1 *eet =+m> Side Posts 1< *eet =/./m> in# posts Struts Nails 200 micron #reen'ouse cover $nsect nettin# Baste oil lac" Bra ppin# paper @rip irri#ation system @isin*ectant ared ire
+x2 1< x 2 11 x 2 !any &ssorted
1
Seedlin#s
1+ 1/
Soil analysis ,ertili8ers%!anure &#roc'emicals TOT&L
!ost /000
) ) 2/0 m2 1L 10# 1000 C'onto and /00 ravo seeds pac" )
1000 /0000 10000 0 1/00 1(000 /00 2000 11:00 +000 10000 11+3000
$ncome Statement T'e *olloin# is a pro-ected income statement *or t'e *irst season o* usiness. $t is ased on t'e sales *orecast "ro #or$a pro%it and loss state$ent %or the %irst season o% &usiness
Sales Less Cost o* inputs
+:D3:00 11+3000
ross pro*it
/3:00
Less operatin# expenses4 Ba#es =Na"u"> Transport expenses !ana#ement F promotion expenses @epreciation Total Operatin# expenses
/03000 203000 103000 /3000
Net Pro*it
2:<3:00
D
Pro-ected cas' *lo T'e *olloin# tale is t'e pro-ected cas' *lo *or t'e *irst 12 mont's4
Pro ,orma cas' *lo Cas' introduced Sales total cas' received
9un
9ul
&u# Sep Oct Cas' received
Nov
nil
11+3000 nil
nil
:23/00
DD3/00
(D3/00
0
0
0
:23/00
DD3/00
@ec
9an
,e
(D3/00
DD3/00
//3000
(D3/00
(D3/00
DD3/00
//3000
<03000
Expenditure Ba#es Transport !ana#ement F promotion expenses Total cas' spent
/3000
/3000
/3000
/3000
/3000
/3000
/3000
/3000
/3000
)
)
)
3000
3000
3000
3000
3000
3000
13000
13000
13000
13000
13000
13000
13000
13000
13000
:3000
:3000
:3000
(3000
(3000
(3000
(3000
(3000
(3000
Net cas' *lo
=:3000>
=:3000>
=:3000>
/3/00
:<3/00
<<3/00
<<3/00
:<3/00
+:3000
<
/. &ppendices &> !ar"et researc' studies $n order to e**ectively determine 'o t'e customers ould e3 t'e si8e o* our mar"et and 'et'er our products ould e mar"etale3 a mar"et researc' in eric'o and its environs. T'e study ill e desi#ned to elicit t'e *olloin# in*ormation4 B'o ill e sell our produce toG $s t'ere su**icient demand *or tomatoes in t'e re#ionG B'o is our competition and 'o can e eat t'emG Bill our produce e mar"etaleG Bill our usiness e pro*italeG
T'e study ill e underta"en t'rou#' intervies and site visits. > ,armersH experiences T'ese are some experiences some *armers *ace 'ile underta"in# #reen'ouse tomato *armin#. Please donIt elieve t'e in*ormation t'at you see out t'ere in impressive roc'ures y #reen'ouse sellers =ati +0es%# *arm #ate>. T'at is on a very #ood day =and t'ey are not many>. Production ) 5ave your #uy trained y some pro*essionals in t'e *ield. !a"e sure t'ey do 'at t'ey are supposed to ) i* its sprayin#3 applyin# *ertili8ers3 aterin# sc'edule3 top dressin# e.t.c. Please try and "eep insects aay at 'atever cost. T'ey can ma"e or rea" you. !a"e sure you 'ave a constant supply o* ater =one ay or t'e ot'er>. @o a soil and ater test3 it ill save you alot in *uture. 5arvestin# A T'e period can e as lon# as < mont's to as lo as mont's. @epends on 'o ell you ta"e care o* your plants. !ar"etin# ) Eit'er do your on mar"etin#3 in 'ic' case you need a ve'icle *or *erryin# produce3 or 'ave some a#ent come and #et t'e crops at some ridiculous price. Oviously3 i* you are mar"etin# yoursel*3 you #et more money3 ut it' more 'ustle. eep areast it' mar"et prices. T'ere as a ee" a crate as #oin# *or 2<003 it rained a little3 and t'e same crate ent *or :00 a*ter days. Ta"in# to t'e so"o is 'asara i* you donIt 'ave i# quantities. T'ose mamas *or t'e so"o ill *rustrate you t'orou#'ly. Try and avoid #oin# to t'e mar"et3 ut sell to end users or retailers4 t'ose mama mo#as3 restaurants3 e.t.c. you can #et up to /0J more y ri#'t mar"et tar#etin#. Even i* you 'ave people comin# to t'e *arm3 t'ey ill also *rustrate you at times3 especially 'en t'ey "no you are dependent on t'em. $ "no someone 'o opted to *eed 'is cos rat'er t'an sell at 10%"#3 yet retail
(
price is aout :0%#. Somet'in# alays #oes ron# at one point. Try and loo" *or a solution. Personnel4 et a trustort'y #uy3 'o ill not sell your produce 'en you are usy or"in#. ,ire and 'ire as many times as may e necessary3 until you #et t'e ri#'t person. &lays conduct intervie *irst e*ore #ivin# someone t'e -o. T'is #uy is a deal rea"er. $t 'elps i* you are stayin# it'in t'e *arm3 or 'ave someone 'o can run t'e *arm and stays in it. $ still onder 'o people *arm on t'ose .
C> Common C'allen#es *aced y *armers @espite t'e ene*its o* #reen'ouse tec'nolo#y3 most *armers *ace numerous c'allen#es. T'ey include4
i>
Temperature and 5umidity
!any *armers *ail to #et #ood pro*its *rom #reen'ouse crops ecause t'ey cannot mana#e t'e to important *actors t'at determine plant #rot' and productivity. reen'ouse temperatures elo 1 de#rees Celsius and aove 0 de#rees Celsius in t'e case o* dry air or 'i#'er t'an 0 to / de#rees Celsius in cases o* 'i#' air 'umidity a**ect #rot' and productivity o* most crops. T'e optimal temperatures *or production o* #reen'ouse tomatoes3 pepper and e##plant s'ould e 1/ to 0 de#rees Celsius and not eyond / de#rees Celsius. T'e temperatures s'ould e maintained at around 1: to 0 de#rees Celsius durin# t'e day and 1 to 1< de#rees Celsius durin# t'e ni#'t. Some tomato *armers close t'e #reen'ouses t'e 'ole day it'out ventilation resultin# in excessively 'i#' temperatures eyond +0 de#rees Celsius t'at lead to reduced
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per*ormance o* t'e crops. enerally3 small)scale #reen'ouses are prone to over'eatin# 'en t'e sun is too 'ot. ,armers s'ould3 t'ere*ore3 open t'e doors and sides o* t'e #reen'ouse *rom 'ile #reen'ouse conditions it' relative 'umidity elo :0 per cent and 'i#' temperatures create *avourale micro)climate *or rapid multiplication and development o* mites and insect pests. 5umidity in t'e #reen'ouse s'ould3 t'ere*ore3 e re#ulated y ensurin# adequate ventilation3 maintainin# 'i#' temperatures at ni#'t3 usin# plastic mulc'in# on plantin# eds and avoid ettin# o* t'e #reen'ouse *loor.
ii>
Loss o* Soil ,ertility
T'is is a common prolem as most *armers plant one crop continuously it'out rotation. T'is can e overcome y rotatin# crops3 *or example #roin# onions or melons3 pepper or e##plant a*ter tomatoes and t'e use o* ot' or#anic and inor#anic *ertilisers to replenis' soil *ertility. ,armers can also replace #reen'ouse soil y rin#in# quality soil *rom outside. &dopt t'e tec'nolo#y o* #roin# crops in pots or soilless cultures. T'e soils 'en used continuously it' same crop ill 'ave a uildup o* diseases3 especially acterial ilt3 acterial can"er3 *usarium and verticilium ilts. reen'ouse *armers are3 t'ere*ore3 encoura#ed to treat t'e soil y sterilisation3 solarisation or *umi#ation usin# *umi#ants suc' as @a8omet3 !etam Sodium and C'loroptin. reen'ouses #et contaminated y people visitin# t'e structures or y use o* in*ected plantin# material3 ater and *arm tools. 5ave a *ootat' at t'e entry.
iii>
Lac" o* uality Bater Sources
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!any parts o* t'e country are de*icient o* #ood ater sources and rivers or ore'oles may also e asent. $n addition3 availale ater could e saline3 c'lorinated or contaminated it' diseases li"e acterial ilt3 'ence it is o* poor quality. Contaminated ater is common in areas 'ere *armers in sources o* ater plant crops li"e potatoes3 tomatoes and ater *loin# donstream is collected y *armers *or #reen'ouse *armin#. T'is introduces acterial ilt in #reen'ouse tomato.
iv>
Pests and @isease
!ana#ement o* insect pests and diseases is t'e i##est c'allen#e in #reen'ouse *armin#. T'is depends on t'e type o* t'e crops t'at are planted. 5oever3 #enerally3 pat'o#ens and insects can e estalis'ed in a #reen'ouse very *ast. T'ey are very di**icult i* not impossile to #et rid o* e**ectively. ,or #reen'ouses t'at are covered it' plastic3 t'e use o* ultraviolet)asorin# plastics can reduce insect prolems.
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