Uganda Grain Dealers Ltd Business Plan

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  1.0 1.0 EX EXE ECUT CUTIVE IVE SU SUM MMARY  1.1

Business Busi ness Concept Con cept

Uganda Uganda Grain Grain ea!er ea!ers s "td. "td. is prop propos osin ing g a maiz maize e mill mill to serv servic ice e the the Kawemp Ka wempee-T Tula peri-ur peri-urban ban area area within within Ka Kawemp wempe e Division Division in the norther northern n outskir outskirts ts of Ka Kampal mpala a city. city. Uganda Grain ea!ers "td.willbuy maize and produce maize meal with bran as a by-product. The proposed dry milled maize plant will have an operational output capacity of 36 metric tonnes per annum !or " metric tonne per day#. 1.#

$inancia $ina ncia!! $eatures $eature s

Uganda Ugan da Grai Grain n ea! ea!er ers s "td "td esti estima mate tes s proc proces essi sing ng 36 36 tons tons of maiz maize e annually annually to produce produce $%& bags of posho !of ' kgs each#. (eak (eak sales season is Decem December ber throu through gh )arch. )arch. *irst irst year year e+pen e+penses ses are are estim estimate ated d at , 33/.0/ million with gross sales of , 3$&.16 million. 2tartup e+penses are estimated , '/ million. 1.%

Industr& Ana!&sis ' Mar(eting )!an

(osho% a ne 4our made from ground corn% is an important part of the 5ast frican diet% and somost rural farmers grow a considerable amount of maize to proc process ess into into posho posho.. This This resul results ts in ahig ahigh h deman demand d for for corn corn grin grinder ders. s. 7owever% because of the high costs associated with purchasinga purchasinga grinder% the

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  Ms. ee+a ee+a respo responsi nsible ble for strate strategic gic corpo corporat rate e and and nanci nancial al plann plannin ing. g. Ms. Grace and Mr. on2ard -a3ateraine% are long term residents of Kampala with a rm knowledge of the local economy and e+perience in agricultural management and pro:ect infrastructure development% will run the day-to-day Mr. Cran+er Ta&e32a% a Kampala-based advocate and legal operatio operations. ns. Mr. cons consul ulta tant nt%% brin brings gs to the the tabl table e year years s of mill millin ing g indu indust stry ry e+pe e+pert rtis ise e and and industr industry y connecti connections. ons. ;wnership ;wnership interes interestt is allocate allocated d at /'< to  ,. -aa/u Enterp Enterpris rises es "i+it "i+ited ed% "< to Ms. ee+ ee+a a Grac Grace4 e4 "< to Mr. to Mr. on2ard-a3ateraine% and "< to Mr. Cran+er Ta&e32a. 1.5

)artne )ar tners rsip ips s

Uganda Ugan da Grai Grain n ea! ea!er ers s "td. "td. will will stri strive ve to for form mutu mutual ally ly bene benec cia iall partnerships with local farmers and grain traders. The farmers and grain trade traders rs will will recei receive ve more more favou favoura rable ble price prices s for their their crop crops s while while Uganda Grain ea!ers "td. saves signicantly on transportation costs. 1.6

$inan $in ancia cia!! )!an )!a n

 The corn grinding grinding pro:ect pro:ect would re9uire re9uire a loan of , 3 million. This business is pro:ected tohave a =eturn on >nvestment !=;># of "$./0< the rst year and &3.3&< in the second year. 2imilarrates continue into the future. (ro:ections show that the business should be turning greatprots after one year and loan repayments are pro:ected to be met without much strain on thebusiness or owner.

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  8ith 8ith curr current ent high high maiz maize e meal meal pric prices es and and fre9 fre9ue uent nt shorta shortage ges% s% Uganda Uganda Grain ea!ers "td.   will provide a cheaper product and assure year round availability. @ocal farmers and grain traders will also save costs by delivering their crops to a local mill. 2imilarly% more local land owners would be able to farm with a local mill that can buy their product. This will stimulate the local economy and increase cash 4ow within the domestic agricultural economy.

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)R9,ECT )R9$I"E I"E

 The proposed proposed pro:ect pro:ect is for setting up a )aize *lour )ill. The )ill will be estab establis lishe hed d the Ka Kawem wempepe-T Tula ula peri-u peri-urb rban an area area of Ka Kawem wempe pe Divis Divisio ion n of  Kampala Kampala city. city. The document document highlights highlights marketing% marketing% management% management% business operations operations and nancial aspects re9uired re9uired for the establishment of successful maize milling business venture. The unit will be using modern automated machi machiner nery y for all the proc process esses% es% ensur ensurin ing g 9uali 9uality ty check check thro throug ugho hout ut the production process. fter processing% the 4our will be packed in standard ' kg-sized packages. The unit will produce premium 9uality 4our to be sold in the local market% competing with e+isting brands. #.1

)ro:e )r o:ect ct Brie/  Bri e/ 

 This document document describes the investment opportunity for setting up a )aize *lour )ill. The said plant will have total installed maize crushing capacity of  36 Tons per year.

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  opportunity e+ists in this sector. >ntroduction of latest technology% hygienic processing and professional staB will also contribute to the popularity and success of private sector *lour mill. >nvestment in the private sector can% therefore% e+ploit this opportunity and provide good products within easy access. #.*

Business Busi ness "ega! "ega ! Status Stat us

 The legal structure structure of Uganda Grain ea!ers "td. is that of a limited liability company% the details of which are provided in Section %.1.5. #.5 )ro:ect )ro: ect Capacit& Capa cit&  The proposed proposed pro:ect pro:ect will have the total output capacity of 36% kgs of  maize 4our per yearC the maize 4our plant will start milling at "< of its installed milling output capacity in the rst year of business being a smallscale agro- industrial enterprise. #.6

;or(ing ;or( ing Ti+e Ti+ e

s per the nature of business recommended timings would be " hrs per day% and 3 days per month. This will be e+ecuted in a single shift for smooth operations of tasksobligations. #.7

)ro:ect )ro: ect In
UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  age o/ Tota! )ro:ect 57.1* *#.86 6. $unding #.8

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)ro:ect )ro: ect "ocation "oca tion

 The maize milling plant will be based in the KawempeKawempe-T Tula peri-urban peri-urban indu industr strial ial area area of Ka Kawem wempe pe that that is locat located ed in the north norther ern n outsk outskir irts ts of  Kampala city. This area is convenient because it can easily be accessed by farmers and grain traders alike with maize grain-laden trucks ? especially coming from the )asindi and Eentral ,ganda maize-production areas. The Kawemp Ka wempee-T Tula area area is also well-serv well-served ed with basic basic infrastr infrastructu ucture re like like good good access roads% power connections% as well as water and sewerage disposal lines.

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-e& Success Succ ess $actors

 The commercial commercial viability of the proposed proposed )aize *lour )ill depends depends on the following *actorsF ,tmost ,tmost care care should should be taken taken while while select selecting ing maize. maize. ;nly ;nly the the best best 9uality maize should be used. 8aste (roduction should be kept at minimum and production process need to be monitored very ve ry carefully •

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UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT   The 28;T nalysis that has inspired and driven Uganda Grain ea!ers "td. to consider investing in this maize 4our milling pro:ect is summarized in Ta3!e # belowF

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Ta3!e #= S;9T Ana!&sis /or te Maie Mi!!ing )ro:ect Strengts ;ea(nesses Eontinuous availability of raw 2trict controls over labour eIciency material% i.e. high 9uality maize need to be observed to reduce the grain. waste production to a minimum *ully automated plant% hence less level. 5+pected loss at the initial stages of  labour involved. vailability of low cost labour. the operation as a result of sales (roduct aBordable to all income return from the distributors. >ne+perienced technical staB as groups. 8ide range of target market. compared to the units currently in operation. 9pportunities Treats Ehanges in the current eating habits lready established businesses in of the people. same industry.  large number of people that are not *luctuation in the price of maize. brand loyal can be targeted through Guality of the 4our is to be monitored very closely as people are more marketing campaign. bout /< of the )aize *lour )arket directed towards health and safety share comprises of un-branded 4our issues. 2 ii d hi h •

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UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT 

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BUSIESS )R9$I"E %.1

Te Business 3.1.1 Goals and Object!es

Msson State"ent ? Uganda Grain ea!ers "td . will produce maize 4our !posho# in the Kawempe-Tula area of northern KampalaJs suburbs in order to reduce the retail price of maize 4our in this northern suburb of Kampala district.

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  3.1.( Lon' Te*" Goals Uganda Grain ea!ers "td . would like to accomplish the following goalsF

". Eapture wider prot margins of a value added corn product versus lower prot margins of raw commodity maize. =egardless of whether or not the business is organized under a cooperative format where producers have the ability to be shareholders% or under a corporate structure !i.e. limited liability corporation#% the goal of the value added venture which utilizes maize as the primary input is to provide alternative markets for producers of corn and greater market access for producers. &. >ncrease net income of investors and provide a long term return on investment suIciently larger than what is e+pected for alternative investments. 3. 5stablish a strong customer base through emphasis on customer service and relationship building. This will provide the opportunity to secure long term demand for milled maize 4our production. *. (rovide a reputable product that will successfully compete in the ,gandan maize 4our industry and satisfy customer needs and e+pectations. Uganda Grain ea!ers "td . will use the following ob:ectives to accomplish the stated goalsF

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  ". The group of investors has strong nancing capabilities and borrowing ability. &. )any investors in the company have management skills from oB-farm  :obs both in agri-business and non-agribusiness industries. These skills include personnel management skills% pro:ect management skills% and some nancial management skills. 3. Uganda Grain ea!ers "td . has a close partnership with an industry insider% who can provide detailed and valuable information about the maize 4our market and customers. 3.1.3 P*od+cts and Se*!ce Uganda Grain ea!ers "td . will purchase maize and produce maize meal !posho#. )aize grain will be purchased from local and commercial farmers in any 9uantities. The maize is typically received bagged in 'kg bags. )aize will be stored until processed. ;nce processed% the meal will be bagged in 'kg bags and transported for sale. The grade of the meal is determined by the nished productJs neness. *iner meal is typically used for porridge with a runny consistency while coarse meal is used for a rm and pasty type porridge. *iner meal !called reakfast (osho# is generally more e+pensive but ultimately preferred. 3.1., T)-e o B+sness Uganda Grain ea!ers "td. is a newly established company% registered in

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  ""th December &"&. Though relatively new% the directors realize their EompanyLs vast potential market and opportunity for growth given implementation of the appropriate strategies% aided by the necessary nances.

3.1.2 T&e S&a*e&olde*s Sareo!der Fage

Sares

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3. )r. Eranmer Tayebwa "<

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/. )r. 7onward Kabateraine '% "< %.#

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UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  Co+petiti
s the only small scale maize mill within the Kawempe-Tula area% Uganda Grain ea!ers "td. willoBer the following advantages over competitorsF Locaton – Uganda Grain ea!ers "td. will be able to facilitate fre9uent deliveries assuring constant availability. eing local also saves transportation costs. P*od+ct +alt) ? There is currently no 9uality control enforcement in ,ganda. @arger mills do occasionally produce poor 9uality meal due to negligence or simply as a result of processing large volumes of product. iven the manageable size of the Uganda Grain ea!ers "td.   mill% such 9uality control can be performed regularly as needed without any diIculties. Local 4no0led'e ? Traditional maize marketing channels in ,ganda consists ofF (roducer O rain Trader O )illing gent O =etailer O Eonsumer. 8ith Uganda Grain ea!ers "tdHs   close ties with local businesses% the company will be able to buy maize without the use of grain traders as well as sell roughly '< of the product independent of retailers.

3.(.( B)%P*od+ct Ma*5et 

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  cleaning the maize they grind it into a meal by hand or with small diesel powered milling units called hammer mills. This practice eBectively removes these sustenance farmers from the commercial maize meal demand. 7owever% every year between December and )ay there is again a sharp increase in demand for commercially milled maize as these sustenance farmers once again start relying on commercial meal. This is due to the following two reasonsF •

2ustenance farmers do not have access to ade9uate storage facilities for their maize. >f there is a big surplus of maize during the rainy season most or all of it might spoil because of rain and high humidity. )any sustenance farmers simply did not grow enough.

 The demand for commercial meal once again drops in )ay every year when people again start harvesting their own crops. During the peak months of  December through )ay most milling companies look at producing twice as much maize meal per month as they would during the rest of the year.  Annual Fluctuations - The milling industry in ,ganda has en:oyed a very stable environment over the last few years. The main reasons for this stability areF •

,ganda has one of the most stable and favourable natural climates in

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  current estimated population of ,ganda is 3'%1"0%1"' and grows with 3.&/< annually.

lthough it is diIcult to correlate this fact without the proper censuses% Uganda Grain ea!ers "td.   is condent that the population of Kawempe Division area is constantly on the increase. This is evident in the rapid e+pansion of housing areas% new businesses and various hotels and restaurants. New businesses generate employment and a steady 4ow of  villagers from rural areas. >n these towns however% people are no longer able to farm their own crop and they solely rely on commercial posho.

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  ,gandaJs small-scale farmers have traditionally cultivated maize for food and for income generation. >t forms an important part of the farming system% particularly in 5astern ,ganda. )aize is widely grown in ,ganda. The main production agro-ecological zones are in the west% east% north and southeast ,ganda !N=>>>T% &&# with the 5astern region accounting for over ' percent of annual production !,2>D% &"#. The crop is cultivated on about ".' million hectares of land. >n terms of area planted% maize is the third most cultivated crop after banana and beans. >n some regions of the country% the crop has now become a staple food% replacing crops like sorghum% millet% cassava and banana. )aize is presently considered a ma:or source of income in the districts of Kapchorwa% )bale% >ganga% )asindi and Kasese ! $igure 1#% with about $'?1' percent of the household harvest being sold to earn money !N=>>>T% &&#.

8hilst production is in4uenced by climate patterns% farmersJ planting intentions% in e+cess of subsistence re9uirements% are largely in4uenced by price levels and overall output tends to 4uctuate accordingly. The country has a potential of producing up to $.' million metric tons utilizing the current area under maize by utilizing improved varieties and crop management technology !T*N=;% &"#. 7owever% this is never achieved largely due to various production constraints including low soil fertility% lack of improved maize varieties% erratic rainfall patterns and drought stress during some seasons. )aize production is generally characterized by low yields% which result in high unit costs and thus low returns. =egardless of the farm sizes%

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT 

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  $igure #= Maie area and production trends in Uganda >1DD0#01#@ (roduction !L tonnes#

rea 7arvested !L 7a#

3 &' & "' " ' 

2ourceF *;2TT !&"&#. ;ver the last two decades !"11-&"&#% both maize area and production in ,ganda increased dramatically !*igure &#. 7arvested area increased from about ./ million hectares in "11 to .6' million hectare in &" reaching ".1/ million hectares in &"& !*;2TT% &"3#. 2imilarly% production more

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT   The domestic market for maize in ,ganda is estimated at 3'% - /% metric tons per annum" !N=>>>T% &&#. >n &$% domestic consumption remained at /% )T out of a national availability of appro+imately 630% )T !,2>D% &0#. )aize is consumed in various forms ? grilled or whole% as a cake [Posho, or Ugali]% or as porridge ? especially in urban centers. ;ver $ percent of the maize is consumed as food% and about "percent is used as animal feeds !maize bran#. There is also increasing demand for value-added products !maize 4our% poultry feeds% etc# especially in urban centers where maize is gaining importance both as a ma:or food item and for income generation. *.%

Mar(eting and Trade

,gandaJs maize e+port market is mainly regional% comprising of markets within 5astern and 2outhern frica% the Democratic =epublic of Eongo and 2outhern 2udan. 5+ports of maize to Kenya alone more than doubled from &/ to &0 !)>*% &"#. ,gandaJs e+port potential for maize is estimated between &% and &'% )T per year !,2>D% &"#. Nonetheless% the country has only managed to formally e+port half of this amount% re4ecting a low level of penetration into the regional markets due to the poor rural road network% and limited business e+posure !,2>D% &"#. )aize is sold across borders through )utukula for Tanzania% usia for Kenya% and atuna for =wanda !*igure "#. The challenge for the cross-border trade% however% has been the increasing informal !unoIcial# cross-border trade

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  re4ects the formal e+port. ccording to this data% ,ganda e+ported 0"&percent of its maize production between &/ and &". 7owever% informal !unoIcial# maize e+ports appear to far e+ceeding the formal !oIcial# e+ports through. ccording to ank of ,ganda !&""#% the value of  informal maize grain and 4our e+ports to neighboring countries in &1 and &" were estimated at ,2D 36.6$ and /'.03 million% respectively. >n contrast% the value of formal maize grain e+ports in the same years were ,2D &1.$ and 30.&" million% respectively !)>*% &"#. Ta3!e %= Maie production4 i+port and eJport o/ #00* #005 #006 #007 (roduction ! "%0. "%&3$. "%&'0. "%&6".0 )T#   3  >mports ! )T# "'3.3 $0.$1 '1.'3 /&.'/ *ormal 5+ports 01.3& 1.36 ""0./1 "$.0 ! )T# *ormal e+ports 0.&$< $.3"< 1./&< 0./0< as a < of   production

Uganda #008 &%3"/.1 " N 66.6$

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N P data not available. 2ourceF *;2TT% &"" and )>* !&""#.

Data obtained from *;2TT !&"&# indicates that formal imports of maize have been declining since &/. The same conclusion is also reported by ,2>D !&"#. >mports of maize have been high in seasons of low harvest

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  number of key players. *igure 3 depicts the typical maize supply chain in ,ganda.

=ural agents are the main buyers of all maize traded in the sub-counties !smaller administrative units in the districts#. Their main function is to buy andor assemble maize from the numerous scattered farmers% often located in inaccessible rural areas. They nd market for the maize !often the urban traders and processors# when they have accumulated suIcient 9uantities.  The urban traders and processors arrange transport to collect the maize either directly from the farmers whom they pay on a cash basis% or from the collection points of the agents. 2ince the agents live in the rural areas% they are a reliable linkage between the farmers and urban traders and processorsmillers. ,rban traders are found in ma:or urban centers in producing districts. Their main activities include networking with rural agents% serving as a market outlet for farmers% and collecting maize grain before selling it to the various clients% including institutions and processors% located in the districts. ,rban traders are also sources of bagging materials !sacks# used by farmers as well as market information in their areas of operation. ,rban traders sell their maize mostly to millers. )aize grown and traded undergoes some level of value addition ? conversion of maize grain into 4our and a variety of other by-products% such as bran and

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  millers make a prot of ,g2h"3&-/& per kg or about ""-3' percent of the price of the 4our.

@arge-scale processors are only found in Kampala. They buy their maize from urban traders and large-scale traders from the western% central and eastern regions. They sell more than three 9uarters !$' percent# of their maize products to the 8orld *ood (rogramme !8*(# for e+port and distribution to war displaced people in Northern ,ganda. The processors carry out activities such as cleaning% de-stoning% drying% fumigating and milling into 4our.  Transport costs are the ma:or marketing cost and% therefore% are key in determining the prices oBered to farmers by rural traders. The relative share of transportation cost in total marketing costs averages 0/ percent in ,ganda !8orld ank% &1#. These costs are 9uite high because a maize bag often goes through a number of markets before reaching the nal consumer in large cities and thus re9uires loading and unloading at each intermediate stop. *or sales% maize is brought from farm to primary markets mainly by traders but sometimes by farmers themselves. The common mode of  transportation on this route is either bicycle or carts. >n ,ganda% a " )T truck is the mostly common mode of transportation beginning already from the rural market% while some traders use trucks with a capacity of between &/ and 3& metric tons !8orld ank% &1#. verage distances between market pairs are short and the average distance between secondary and wholesale markets is about 0 km in ,ganda !from Min:a to Kampala#.

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT 

)ost farmers sell most of their maize at low prices to traders who in turn sell to e+porters !()% &1#. *urther% () analysis of the trend of maize farm prices indicates that% on average% there has not been any signicant increase in the de4ated national average farm price received by farmers during the period "1$-&' !()% &1#. t the end of the chain are large scale tradersprocessors% large scale distributors and e+porters% and big millers.  They rent or have big warehouses and modern cleaning and drying e9uipment% own transport facilities such as pick-up% trucks% @orries and trailers. They engage in maize cleaning% consolidation and bulking and sell maize to relief agencies% or e+port to regional markets. ,gandan maize e+porters appear to receive protable prices for their e+ports in most of the years ! $igure %#. 8ith the e+ception of &01% the e+port price of maize e+ceeds wholesale price in Kampala considerably in most of  the years. >n &01% e+port prices were slightly below the whole sale market prices. This does not necessarily mean the e+porters are selling at loss as maize e+ported was probably purchased earlier at lower wholesale prices. >t is to be noted that e+port prices reported here are the average unit value of e+ports to all countries. >n contrast% trade data from Kenya )inistry of griculture indicate much lower average value of maize imports from ,ganda. 8holesale maize prices in ,ganda% especially in Kampala% are well often above the world market prices% e+cept few very short periods when they were below the world market prices !8orld ank% &""#.

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  wholesale price

e+port price

3' 3 &' &

price

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2ourceF 8hole sale price data from www.ratin.net. 5+port prices calculated from data from )>* !&""#.

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UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  Ta3!e *= S;9T Ana!&sis o/ UgandaHs Maie Supp!& Cain Strengts ;ea(nesses (roduction of two crops (roduction is done by small scale farmers who are scattered 2till producing organic maize No high inputs !use of poor (roduction of white maize technologies# mple land for e+pansion ,se of poor technology for production (ro+imity to a ma:or market !Kenya#

•

*ormation of ,T

• • • •

•

•

•

No large scale storage facilities and poor infrastructure to move the products  The supply chain is not integrated @imited value addition (oor 9uality of maize produced  Timely delivery is constrained by poor infrastructure and storage

•

• • • •

• • •

•

9pportunities rowing demand for maize

5mergency of commercial farmers @arge scale grain traders have formed a company oodwill and support by the government

• • •

• •

Treats 2tiB competition

,nstable world prices @ack of 9uality standards enforcement 7igh unit costs @ack of post-harvest facilities

and

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  $igure *= A T&pica! Maie Mar(eting Cain Eommercial

2ubsistence

;rganized *armer



=ural Tradersgents

,rban Traders

@arge 2cale Traders

usia2uam Eross order )arkets

=elief 

,ganda rain

*ormal Trade =egional 5+ports

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  Te Mi!!ers= )illers can be categorized as small and medium scale millers and mainly carry out contract based milling for institutions% traders and direct consumers. 2ome millers also involve themselves in maize grain trading% especially at peak harvest season. They mainly operate locally fabricated hammer mills that are often poorly maintained% which results into poor 9uality 4our and outturns. *or the millers who carry out trade based milling% they procure the maize grain either through rural agents or directly from urban traders. Trade-based millers mainly sell the 4our to general retail traders% wholesalers and institutions. )illing operations are aBected by electricity 4uctuations and high tariBs as well as availability of maize grain. Maie Mi!!ing and Consu+ption  Two maize milling channels were observed during the studyF Contract3ased +aie +i!!ing=  This is where a client is charge a specic fee for milling hisher maize grain. >t is the most dominant form of maize milling in >ganga% Kapchorwa% )asindi% )bale% Min:a and usia districts. These contract based maize millers normally use hammer mills that are not well maintained leading to low returns and poor 9uality 4our. )ost of the millers in the market report operating at 3<-'< of the installed capacity of their mills. The 9uantity of maize milled is mainly determined by the availability of  power and the demand for maize 4our. ;n average% the contract millers reported milling between "%1kgs-"%kgs a day depending on the capacity of the mill. The competition amongst the contract-based millers is

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT 

Ta3!e 5= S;9T Ana!&sis o/ Maie Mi!!ers Strengts ;ea(nesses 5+istence of value-addition through >nade9uate working capital. milling. (oor 9uality maize 4our. (rimarily carry out contract-based 7ave poor milling machines. milling. @imited knowledge on value-addition.  They are widespread and located >nade9uate storage facilities that near the farmers. undermine bulking and stocking.

•

• •

•

• •

•

•

,npredictable electricity supplies. 9pportunities Treats >ncreasing demand for 4our. ,nreliable and seasonality of maize supplies aBects capacity utilization. )aize can be processed into various 2tiB competition. products and by-products. 7igh energy costs. @imited integration with other participants. •

• •

•

• • •

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT 

5.0

MAR-ETIG )"A 5.1

)roduct Use and BeneKt

Uganda Grain ea!ers "td. )ill will be lling a need within the Kawempe Division of Kampala district that has a high inherent and unmet consumptive demand for maize 4our and other milled maize grain products. Uganda Grain ea!ers "td. will provide a lower priced product as it will be locally produced. Uganda Grain ea!ers "td. will also ensure a high 9uality product with consistent availability. 5.#

)rice )oint

(osho rade " currently retails at ,g2h "%/ per kg in Kampala. This price is on average between ,g2h " to & more than retail prices in other upcountry towns of ,ganda due to the added transportation costs. s a local Kawempe-based mill Uganda Grain ea!ers "td. will provide posho to this market without the transportation surcharges allowing for a retail price of  ,g2h "%& per kg. Uganda Grain ea!ers "td.  will also oBer a wholesale price of ,g2h""6% per ' kg bag allowing for a price discount of about ,g2h ' per kg on the retail price. t this price point with a 9uality product market acceptance is assured.

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT 

6.0

TEC9"9GY ' EGIEERIG 6.1

Tecno!og&

)roduction )rocess

 great advantage of machine milling over pounding is that the relatively hard and tough peels and embryos are thoroughly broken up and incorporated in the meal% together with the starch. The starch provides calories for energy but the peels and embryos supply oil and protein% giving almost balanced human food% after cooking. This whole meal does not keep well due to the oil in the embryos going rancid% so a farmer has to go fairly fre9uently to the mill with his maize. )achine mills can separate out the peels and embryos which are valuable concentrates for stock-feeding !bran#C the fairly pure starch then keeps for longer periods but it has little nutritional value. >n view of the deteriorating relation of food production to population in frica% it is desirable that maize mills should produce whole meal. )illed maize is becoming popular and is being produced in increasing 9uantities. >t can replace the white maize meal

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  a separate electric motor to make the entire maize milling process speedy and more eIcient.

8ith much of e9uity capital already invested in the e+isting mill plant infrastructure and other vital pieces of maize-milling e9uipment displayed in Ta3!e 6below% Uganda Grain ea!ers "td. needs to access additional nance to ac9uire the two additional motors need for the purpose of running both the huller and maize grinder. 6.#

Engineering

Maciner& ' E?uip+ent

 The production machinery and e9uipment re9uired by the plant is shown in Ta3!e 6. The total cost of machinery and e9uipment is estimated at , 36 million% out of which , & million will be in form of short-term debt nancing. Ta3!e 6= Sr. o. " & 3 / '

Maciner& and E?uip+ent Re?uire+ent escription Lt&. >o.@ Decorticator !7uller# " 2creen separator " 2piral separator " rader !sorter# " 7ydrator "

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT 

7.0

ESCRI)TI9 9$ )R9UCT A BUSIESS 9)ERATI9S 7.1

)roduct Manu/actureSer
)aize milling is the process where dried maize kernels are rened to posho.  The maize milling process is a mechanical process and consists of cleaning% grinding and sieving operations. fter each sieving operations% product of a particular 9uality is drawn and the residue is recycled for further grinding or milling. E?uip+ent  $aci!ities=  The production of maize meal re9uires a maize mill.  The mill is constructed of various parts each responsible for performing functions such as sorting% cleaning% conveying% conditioning% grinding% crushing% purifying% and bagging. The mill will be housed in a building that contains all of its operations. =oughly "'m & is re9uired for the milling e9uipment with another 'm & for surrounding working space.  building with an additional 'm & is re9uired as temporary storage for the daily nished maize meal product prior to being delivered. Ra2 Materia!s=  The principal raw material re9uired by the envisaged plant

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  Sr. Ra2 ' Unit o/  Luantit& Unit Cost Tota! Cost o. AuJi!iar& Measure Re?uired >UGX@ >UGX@ +ateria! " )aize Tonnes 3 6 "0%% & (( bag !' kgs# (ieces 6 "% 6% 3 2ewing thread =eel &.' 6/% "6% Tota! 184760400 0 Uti!ities=  The ma:or utilities re9uired by the plant are electricity% water and lubricants. The estimated annual cost of utilities at "< capacity utilization rate and the corresponding costs are given in Ta3!e 8. The total cost of  utilities is estimated at ,g2h " million per month. Ta3!e Sr. o. " & 3

8= Mont!& Uti!ities Re?uire+ents and Esti+ated Costs escription Unit o/   Luantit& Unit Cost Tota! Cost Measure Re?uired >UGX@ >UGX@ 5lectricity k87 '1/ /' &6$%3 3 8ater m &"'."0 3%01 66/%$ @ubricants Kg. / "$% 60% Tota! 140004000

Lua!it& Contro!= >n order to ensure proper 9uality% Uganda Grain ea!ers "td. will take proper precautions includingF making sure not to grind un-dried corn 4ourC sifting all corn to remove all rubbish before processingC cleaning the premises every dayC and ensuring that workers are clean% wash hands

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  ;rdering & maize mill motors and additional e9uipment 2ecuring contracts for raw material procurement >nstallation of electricity and mill plant )illing operations • • •

8.(.( Sta*t+- Costs

 There are several startup costs that are due to infrastructure development.  These costs are one-time e+penditures totaling , '/%% and includeF , &%% ? The maize mill !ac9uisition of two additional motors# , "%% ? The maize mill !purchase of additional assorted maize mill e9uipment# , 6%% ? dditional buildings development to house the mill and processed maize meal , /%% - 2torage buildings for pre-processed maize , /%% ?(reliminary and pre-operating e+penses , "%% ?8orking capital • •

•

• • •

!ll costs include labour% transportation% and fees where appropriate#. 8.(.3 9o*5o*ce

(ost start-up% during normal operation the mill will re9uire & to 6 labourers

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT   There are a few areas of risk within the corn grinding industry. *irst and foremost is drought. Drought causes signicant decreases in demand for corn grinding because there is little to grind. Eonversely% in times of plentiful rain harvest yields are higher but demand for grinding may 4uctuate due to favorable matooke !an alternative food# prices in the area. >n both cases on can help mitigate the losses by gathering grain at times of plenty and selling it at times of scarcity. 8.3.( O-e*atonal Rs5s

*uel can become e+pensive% especially in times of political instability in Kenya because most oil is imported through the eastern border. lthough the cost to mill the corn will increase as fuel prices increase% it is believed that most% if not all% of the cost can be passed on to the customers in a higher price because the transportation costs to take the corn elsewhere will rise with the fuel costs as well. n additional risk is that the machines will break down and create e+penses andor downtime. This will be addressed by ensuring the maintenance procedures are followed correctly and timely. >n addition to proper maintenance% the company should have the most common failure spare parts on hand !many spares are included with the engine% but as parts are used they will be replaced before failure so downtime is cut down#.

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT 

8.0

9RGAIATI9 A MAAGEMET

9rganiation= Uganda Grain ea!ers "td% is a corporation with four shareholders who all serve as the board of directors. ;wnership interest is allocated at /'< to  ,. -aa/u Enterprises "i+ited% "< to Ms. ee+a Grace4 "< to Mr. on2ard -a3ateraine% and "< to Mr. Cran+er Ta&e32a. Manage+ent=  The board of directors  shareholders will :ointly plan long term strategy and day to day operations will be run by the maize mill plant 2upervisor. ;perations management will consist of overseeing milling operations% labour% maintenance% 9uality control and product delivery. *inancial management will consist of sales% marketing and administration. Tecnica! EJpertise= a )iller with technical e+pertise in the milling process will be appointed.

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  & (lant ;perators & 0% 1%6% 3 ccountant " 6% $%&% / Elerk2tore Keeper " /% /%0% ' Eleaning 8orkers & /% /%0% 6 uards & /% /%0% D *04800400 Su3Tota! %4*004000 0 5mployee enets !&< of asic    60% 0%"6% 2alary# *84D60400    T9TA" *40804000 0  The duties of unskilled labourers will be as followsF  @oading A unloading of raw materials and nished products.  *eeding the machines with raw materials.

 The duties of skilled labourersF  ;perating the machinery. )aintenance of machinery.

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT 

D.0

$IACIA" AA"YSIS D.1

9
>n comparison to other business models a maize mill nancial model is relatively straight forward. )aize is purchased% and maize meal is sold. Uganda Grain ea!ers "td. will be able to sell '< of its product at retail and the remainder at wholesale.  The total pro:ect cost for establishing and operating the maize milling plant is ,g2h $ million.  total of ,g2h / million is in-kind contribution in the form of e+isting parts of the maize milling plant and housing structure at Kawempe-Tula and preliminary and pre-operating e+penses by Uganda Grain ea!ers "td.  The re9uested ,g2h 3 million short-term loanfunding will mostly be allocated towards the ac9uisition of two !&# mill motors and working capital costs that will provide the much-needed inventory capital as

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  D.#

)roduction Cost

 The annual production cost at full operation capacity is estimated at ,g2hs 33'.0& million !see AnneJures 1.1 and 1.##. The material and utility cost accounts for $.6" per cent% while repair and maintenance take .36 per cent of the production cost in Sear " and $".'" per cent and .36 per cent respectively for Sear &. Ta3!e 10 below provides the details.

Ta3!e 10= Annua! )roduction Cost at $u!! Capacit& >In UGX@ Ite+Year Year 1 Year # Cost  Cost &&'%"&% &36%3$6% =aw materials  6$./  /0%16% '"%/0% 2alaries A wages  "/.'0  "&%% "&%6% ,tilities  3.'$  =epairs A )aintenance "%&% .36 "%&6% (ostage A 2tationery 6% ."0 63%  Telephone Eharges "%&% .36 "%&6% dvertisement A (ublicity "%0% .'/ "%01%



6$.01 "/.$$ 3.6& .36 ."0 .36 .'/

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  interest on total investment !return on total investment# show an increasing trend during the life-time of the pro:ect.

 The income statements and the other indicators of protability show that the pro:ect is viable !=efer to AnneJures %.1 and %.##. :.3.( B*ea5%e!en Anal)ss

 The maize milling pro:ectJs commercial break-even level !protability breakeven# in (ro:ect Sear & is calculated belowF

Ta3!e 11= Brea(EIn UGX@ Ite+s Varia3!e $iJed Cost Cost =aw materials &36%3$6%  2alaries A wages 30%''6% "&%0'&% ,tilities 1%/'% 3%"'% =epairs A )aintenance 0/% /&% dvertisement A (ublicity "%&6% 63%  Transport Eharges &"%0/% "%1&%

Tota! Cost

&36%3$6% '"%/0% "&%6% "%&6% "%01% 3&%$6%

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  Eapacity utilization re9uired to reak-even P , "61%&$%1$3 + " P /&.6$< , 316%"//%

)argin of 2afety P "< ? /.&/< P '$.33< D.*

)ro:ected Inco+e State+ent4 State+ent o/ Cas $!o2s

Ba!ance

Seet4

and

(lease see AnneJures 1.1 N *.# on pages / ? /$ for all nancial pro:ections. D.5

Econo+ic BeneKts

 The pro:ect can create employment for 1 persons. >n addition to supply of the domestic needs% the pro:ect will generate a total ,g2h &.'&0 million in terms of aggregate ta+ for Sear " and Sear &. 10.0 "9A I$9RMATI9 10.1 $inancia! eeds

s noted in the capital re9uirements section the immediate total capital re9uired for the pro:ect amounts to , '/ million. >ncluded in this is the e9uipment necessary for milling maize !grinder% huller% and engine#% the building construction that will house the machinery% and other necessary

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  transportation is estimated at ,g2h "%. >nstallation costs are set at ,g2h '% for labour.

 The remaining ,g2h " million will be used to supplement additional working capital costs that would include the purchase and transportation of raw materials to the maize mill% and making initial payment for utilities and consumable stores% plus nancing the start-up maize mill plant overheads and sales and marketing e+penses. These costs mainly consist of small but necessary items toget the business up and running. 10.# "oan "ogistics

ecause the re9uisite loan of the pro:ect is being solicited from a commercial bank% the following is a breakdown of the logistics. "oan )eriodF 8hile it may be possible for the loan to be repaid within a year of business% it could cause signicant undue burden on both the business and the owner. Therefore% it is proposed that the loan be repaid within a two year period with monthly payments of ,g2h &.' million in months $ ? "& of   Sear " to decrease payment size.  Grace )eriod for si+ months and covering the very rst months of the pro:ect is also proposed to allow the maize milling pro:ect to establish its operational capacity and make an entry into the maize 4our market before it can develop the competitive capacity to repay its commercial debts. The repayment of the loan is structured in such

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  Co!!atera!=  The loan will not contain traditional collateral as far as deeds to land or buildings% but the e9uipment will be held as collateral until the nal payment is made at which time Uganda Grain ea!ers "td.  will own the entire business and e9uipment.

11.0 $IACIA" STATEMETS

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  '. The rate of interest has been taken at &"< on an average for the shortterm commercial loan. 6. )onthly interest payments are calculated on a reducing balance basis. $. The loan has a race (eriod of si+ !6# months with repayments commencing in )onth $ of Sear ". 0. The rates 9uoted in respect of )achinerye9uipment raw materials are those prevailing at the time of preparation of the usiness (lan report and are likely to vary from place to place and supplier to supplier and necessary changes are to be made as and when re9uired. 1. nnual operating costs are presumed to increase at a rate of '< per annum. ". nnual sales prices for the products are also presumed to grow at a rate of '< per annum.

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  AnneJure 1.1= Mont!& )roduction Cost Esti+ates /or Year 1 >In UGX@ ACC9UT EA M9T 9perating Costs >UGX@

1

#

%

*

5

6

7

8

D

10

11

1#

"0%$6%  /%0%  "%% 

"0%$6%  /%0%  "%% 

"0%$6%  /%0%  "%% 

"0%$6%  /%0%  "%% 

"0%$6%  /%0%  "%% 

"0%$6%  /%0%  "%% 

"0%$6%  /%0%  "%% 

"0%$6%  /%0%  "%% 

"0%$6%  /%0%  "%% 

"0%$6%  /%0%  "%% 

"0%$6%  /%0%  "%% 

"0%$6%  /%0%  "%% 

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"%

"%

"'% &%6% 

"'% &%6% 

"'% &%6% 

"'% &%6% 

"'% &%6% 

"'% &%6% 

"'% &%6% 

"'% &%6% 

"'% &%6% 

;ther )iscellaneous 5+p

&%

&%

&%

&%

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Eonsumable 2tores

"% #741*04 000

"% #741*04 000

"% #741*04 000

"% #741*04 000

"% #741*04 000

"% #741*04 000

"% #741*04 000

"% #741*04 000

"% #741*04 000

'&'%

'&'%

'&'%

'&'%

'&'%

'&'%

'&'%

/0"%

/30%

31/%

3'%

Tota! $inancia! Costs

3$'% D00400 0

3$'% D00400 0

3$'% D00400 0

3$'% D00400 0

3$'% D00400 0

3$'% D00400 0

3$'% D00400 0

3$'% 856400 0

3$'% 81%400 0

3$'% 76D400 0

3$'% 7#5400 0

Tota! )roduction Costs

#840*04 000

#840*04 000

#840*04 000

#840*04 000

#840*04 000

#840*04 000

#840*04 000

#74DD64 000

=aw materials 2alaries A wages ,tilities =epairs A )aintenance (ostage A 2tationery  Telephone Eharges dvertisement A (ublicity  Transport Eharges

Cost o/ Sa!es

T9TA"

##541#04 000 *84D6040 00 1#400040 00 14#00400 "% 0

'%

6004000 14#00400 "% 0

14800400 "'% "'% "'% 0 &%6% &%6% &%6% %14#0040    00 #4*00400 &% &% &% 0 14#00400 "% "% "% 0 #741*04 #741*04 #741*04 %#546804 000 000 000 000

$inancia! Costs >USO@ >nterest on 2hort Term @oan

Depreciation

/3

#74D5%4 000

#74D0D4 000

#748654 000

546**400 0 *4500400 3$'% 0 681400 1041**40 0 00

36%

#748#14 000

%%548#*4 000

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT 

AnneJure 1.#= Mont!& )roduction Cost Esti+ates /or Year # >In UGX@ ACC9UT EA M9T 9perating Costs >UGX@

1%

1*

15

16

17

18

1D

#0

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##

#%

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"1%610%  /%&0/%  "%'% 

"1%610%  /%&0/%  "%'% 

"1%610%  /%&0/%  "%'% 

"1%610%  /%&0/%  "%'% 

"1%610%  /%&0/%  "%'% 

"1%610%  /%&0/%  "%'% 

"1%610%  /%&0/%  "%'% 

"1%610%  /%&0/%  "%'% 

"1%610%  /%&0/%  "%'% 

"1%610%  /%&0/%  "%'% 

"1%610%  /%&0/%  "%'% 

"1%610%  /%&0/%  "%'% 

"'%

"'%

"'%

"'%

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'&%'

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"'%

"'%

"'%

"'%

"'%

"'%

"'%

"'%

"'$%' &%$3% 

"'$%' &%$3% 

"'$%' &%$3% 

"'$%' &%$3% 

"'$%' &%$3% 

"'$%' &%$3% 

"'$%' &%$3% 

"'$%' &%$3% 

"'$%' &%$3% 

;ther )iscellaneous 5+p

&"%

&"%

&"%

&"%

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&"%

&"%

&"%

&"%

Eonsumable 2tores

"'% #84*D74 000

"'% #84*D74 000

"'% #84*D74 000

"'% #84*D74 000

"'% #84*D74 000

"'% #84*D74 000

"'% #84*D74 000

"'% #84*D74 000

"'% #84*D74 000

&63%

&/"%

&"1%

"1$%

"$'%

"'3%

"3"%

"1%

00%

66%

//%

3$'% 6%8400 0

3$'% 616400 0

3$'% 5D*400 0

3$'% 57#400 0

3$'% 550400 0

3$'% 5#8400 0

3$'% 506400 0

3$'% *8*400 0

3$'% *6%400 0

3$'% **1400 0

3$'% *1D400 0

=aw materials 2alaries A wages ,tilities =epairs A )aintenance (ostage A 2tationery  Telephone Eharges dvertisement A (ublicity  Transport Eharges

Cost o/ Sa!es

T9TA"

#%64%764 000 514*0840 00 1#460040 00 14#60400 "'% 0

'&%'

6%04000 14#60400 "'% 0

148D0400 "'$%' "'$%' "'$%' 0 &%$3% &%$3% &%$3% %#476040    00 #45#0400 &"% &"% &"% 0 14#60400 "'% "'% "'% 0 #84*D74 #84*D74 #84*D74 %*14D6*4 000 000 000 000

$inancia! Costs >USO@ >nterest on 2hort Term @oan

Depreciation Tota! $inancia! Costs

//

14708400 0 *4500400 3$'% 0 %D7400 64#08400 0 0

&&%

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  Tota! )roduction Costs

#D41%54 000

#D411%4 000

#D40D14 000

#D406D4 000

#D40*74 000

#D40#54 000

#D400%4 000

#84D814 000

#84D604 000

#84D%84 000

#84D164 000

#848D*4 000

%*8417#4 000

AnneJure #.1= )ro:ected Cas o2 Ta3!e /or Year 1 >In UGX@ )eriod Mont

0

1

#

%

*

5

6

7

8

D

10

11

1#

54,000,000

31,440,000

31,440,000

31,440,000

31,440,000

31,440,000

31,440,000

31,440,000

31,440,000

31,440,000

31,440,000

31,440,000

31,440,000

 _

31,440,000

31,440,000

31,440,000

31,440,000

31,440,000

31,440,000

31,440,000

31,440,000

31,440,000

31,440,000

31,440,000

31,440,000

- 54 ,0 00 ,0 00

- 37, 36 8, 09 7

- 37 ,3 68 ,0 97

- 37, 36 8, 09 7

- 37 ,36 8, 09 7

- 37 ,3 68 ,0 97

- 37, 36 8, 09 7

- 39 ,8 68 ,0 97

- 39, 82 4, 09 7

- 39 ,78 1, 09 8

- 39 ,7 37 ,0 98

- 39, 69 3, 09 8

- 48 ,9 35, 89 8

-54,000,000

-9,569,764

-9,569,764

-9,569,764

-9,569,764

-9,569,764

-9,569,764

-9,569,764

-9,569,764

-9,569,764

-9,569,764

-9,569,764

-9,569,764

 _

-27,140,000

-27,140,000

-27,140,000

-27,140,000

-27,140,000

-27,140,000

-27,140,000

-27,140,000

-27,140,000

-27,140,000

-27,140,000

-27,140,000

a# >nterest

 _

-525,000

-525,000

-525,000

-525,000

-525,000

-525,000

-525,000

-481,000

-438,000

-394,000

-350,000

-306,000

b# =epayments

 _

0

0

0

0

0

0

-2,500,000

-2,500,000

-2,500,000

-2,500,000

-2,500,000

-2,500,000

/. Eorporate ta+

 _

0

0

0

0

0

0

0

0

0

0

0

-9,286,800

'. Dividends /< on e9uity

 _

-133,333

-133,333

-133,333

-133,333

-133,333

-133,333

-133,333

-133,333

-133,334

-133,334

-133,334

-133,334

Costs >US o!!ars@ A. Cas ino2 ". *inancial resources total &. 2ales revenue total

B. Cas outo2

54,000,000

". Total assets schedule including replacements &. ;perating Eosts !Eost of  2ales# 3. Debt 2ervice

/'

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  C. Surp!us  deKcit

0

-5,928,097

-5,928,097

-5,928,097

-5,928,097

-5,928,097

-5,928,097

-8,428,097

-8,384,097

-8,341,098

-8,297,098

-8,253,098

-17,495,898

. Cu+u!ati
0

-5,928,097

-11,856,194

-17,784,291

-23,712,388

-29,640,484

-35,568,581

-43,996,678

-52,380,775

-60,721,873

-69,018,971

-77,272,069

-94,767,967

AnneJure #.#= )ro:ected Cas o2 Ta3!e /or Year # >In UGX@ )eriod Mont

1%

1*

15

16

17

18

1D

#0

#1

##

#%

#*

Tota!

33,012,000

33,012,000

33,012,000

33,012,000

33,012,000

33,012,000

33,012,000

33,012,000

33,012,000

33,012,000

33,012,000

33,012,000

  396,144,000

&. 2ales revenue total

33,012,000

33,012,000

33,012,000

33,012,000

33,012,000

33,012,000

33,012,000

33,012,000

33,012,000

33,012,000

33,012,000

33,012,000

  396,144,000

B. Cas outo2

- 30 ,6 07 ,1 68

- 30, 58 5, 16 8

- 30 ,5 63 ,1 68

- 30, 54 1, 16 8

- 30 ,51 9, 16 8

- 30 ,4 97 ,1 68

- 30, 47 5, 16 8

- 30 ,4 53 ,1 68

- 30, 43 2, 16 9

- 30 ,41 0, 16 9

- 30 ,3 88 ,1 69

- 41, 60 7, 76 9   -377,079,617

-463,835

-463,835

-463,835

-463,835

-463,835

-463,835

-463,835

-463,835

-463,835

-463,835

-463,835

- 28 ,4 97 ,0 00

- 28, 49 7, 00 0

- 28 ,4 97 ,0 00

- 28, 49 7, 00 0

- 28 ,49 7, 00 0

- 28 ,4 97 ,0 00

- 28, 49 7, 00 0

- 28 ,4 97 ,0 00

- 28, 49 7, 00 0

- 28 ,49 7, 00 0

- 28 ,4 97 ,0 00

Costs >US o!!ars@ A. Cas ino2 ". *inancial resources total

". Total assets schedule including replacements &. ;perating Eosts !Eost of  2ales#

-463,835

 

-5,566,017

- 28, 49 7, 00 0   -341,964,000

3. Debt 2ervice a# >nterest b# =epayments

/. Eorporate ta+ '. Dividends /< on e9uity

-1,708,000

-241,000

-219,000

-197,000

-175,000

-153,000

-131,000

-109,000

-88,000

-66,000

-44,000

-1,250,000

-1,250,000

-1,250,000

-1,250,000

-1,250,000

-1,250,000

-1,250,000

-1,250,000

-1,250,000

-1,250,000

0

0

0

0

0

0

0

0

0

0

0

-11,241,600

 

-11,241,600

-133,333

-133,333

-133,333

-133,333

-133,333

-133,333

-133,333

-133,333

-133,334

-133,334

-133,334

-133,334

 

-1,600,000

/6

-22,000

 

-263,000 -1,250,000

-1,250,000   -15,000,000

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  C. Surp!us  deKcit

2,404,832

2,426,832

2,448,832

2,470,832

2,492,832

2,514,832

2,536,832

2,558,832

2,579,831

2,601,831

2,623,831

-8,595,769

. Cu+u!ati
2,404,832

4,831,665

7,280,497

9,751,329

12,244,161

14,758,994

17,295,826

19,854,658

22,434,490

25,036,321

27,660,152

19,064,383

 

19,064,383

AnneJure %.1= )ro:ected Inco+e State+ent /or Year 1 >In UGX@ 1

#

%

*

5

6

7

8

D

10

11

1#

Tota!

=aw )aterials

3"%//%  "0%$6% 

3"%//%  "0%$6% 

3"%//%  "0%$6% 

3"%//%  "0%$6% 

3"%//%  "0%$6% 

3"%//%  "0%$6% 

3"%//%  "0%$6% 

3"%//%  "0%$6% 

3"%//%  "0%$6% 

3"%//%  "0%$6% 

3"%//%  "0%$6% 

3"%//%  "0%$6% 

%774#804 000 ##541#04 000

=;22 (=;*>T

"&%60% 

"&%60% 

"&%60% 

"&%60% 

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"&%60% 

"&%60% 

"&%60% 

"&%60% 

"&%60% 

"&%60% 

"&%60% 

15#41604 000

!e+cl. =aw )aterials#

0%30% 

0%30% 

0%30% 

0%30% 

0%30% 

0%30% 

0%30% 

0%30% 

0%30% 

0%30% 

0%30% 

0%30% 

10045604 000

;(5=T>N (=;*>T

/%3% 

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/%3% 

/%3% 

/%3% 

/%3% 

/%3% 

/%3% 

/%3% 

/%3% 

/%3% 

51460040 00

'&'%

'&'%

'&'%

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&%'% 

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15400040 00

3%$$'% 

3%$$'% 

3%$$'% 

3%$$'% 

3%$$'% 

3%$$'% 

"%&$'% 

"%3"1% 

"%36&% 

"%/6% 

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%04D5640 00

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@essF ;perating Eosts

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546**400 0

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  

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









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1%&06%0 

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N5T (=;*>T

3%$$'% 

3%$$'% 

3%$$'% 

3%$$'% 

3%$$'% 

3%$$'% 

"%&$'% 

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"%36&% 

"%/6% 

"%/'% 

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#1466D4# 00

ccumulated Net (rot !@oss#

3%$$'% 

$%''% 

""%3&'% 

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"0%0$'% 

&&%6'% 

&3%1&'% 

&'%&//% 

&6%66% 

&0%"&% 

&1%/6&% 

&"%661%& 

Net (rot )argin

."&

."&

.0'

.0'

.0'

.0'

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./&

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-.&/0

ross (rot )argin

./3

./3

./3

./3

./3

./3

./3

./3

./3

./3

./3

./3

'.31<

'.31<

'.31<

'.31<

'.31<

'.31<

".0&<

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&."<

&.$<

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."3$

."3$

."3$

."3$

."3$

."3$

."3$

."3$

."3$

."3$

."3$

."3$

Eorporation Ta+ 3<

=ate of =eturn on >nvestment

;perating (rot )argin

AnneJure %.#= )ro:ected Inco+e State+ent /or Year # >In UGX@ 1

#

%

*

5

6

7

8

D

10

11

1#

Tota!

=aw )aterials

33%"&%  "1%610% 

33%"&%  "1%610% 

33%"&%  "1%610% 

33%"&%  "1%610% 

33%"&%  "1%610% 

33%"&%  "1%610% 

33%"&%  "1%610% 

33%"&%  "1%610% 

33%"&%  "1%610% 

33%"&%  "1%610% 

33%"&%  "1%610% 

33%"&%  "1%610% 

%D641**4 000 #%64%764 000

=;22 (=;*>T

"3%3"/% 

"3%3"/% 

"3%3"/% 

"3%3"/% 

"3%3"/% 

"3%3"/% 

"3%3"/% 

"3%3"/% 

"3%3"/% 

"3%3"/% 

"3%3"/% 

"3%3"/% 

15D47684 000

!e+cl. =aw )aterials#

0%$11% 

0%$11% 

0%$11% 

0%$11% 

0%$11% 

0%$11% 

0%$11% 

0%$11% 

0%$11% 

0%$11% 

0%$11% 

0%$11% 

10545884 000

;(5=T>N (=;*>T

/%'"'% 

/%'"'% 

/%'"'% 

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/%'"'% 

/%'"'% 

/%'"'% 

/%'"'% 

5*418040 00

&63%

&/"%

&"1%

"1$%

"$'%

"'3%

"3"%

"1%

"%&'% 

"%&'% 

"%&'% 

"%&'% 

"%&'% 

"%&'% 

"%&'% 

"%&'% 

Mont

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@essF ;perating Eosts

@essF ccrued interest on )edium-Term @oan !U &"< p.a.#

@essF nnual =epayments

/0

00% "%&'% 

66% "%&'% 

//% "%&'% 

&&% "%&'% 

14708400 0 15400040 00

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  3%&% 

3%&/% 

3%/6% 

3%60% 

3%1% 

3%""&% 

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3%"$$% 

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114#*146 00

N5T (=;*>T

3%&% 

3%&/% 

3%/6% 

3%60% 

3%1% 

3%""&% 

3%"3/% 

3%"'6% 

3%"$$% 

3%"11% 

3%&&"% 

$%110%6 

#64#%04* 00

ccumulated Net (rot !@oss#

3%&% 

6%&6% 

1%$&% 

"&%"/% 

"'%&3% 

"0%3/&% 

&"%/$6% 

&/%63&% 

&$%01% 

3"%0% 

3/%&&1% 

&6%&3%/ 

Net (rot )argin

.1"

.1&

.1&

.13

.1/

.1/

.1'

.16

.16

.1$

.10

-.&/&

ross (rot )argin

./3

./3

./3

./3

./3

./3

./3

./3

./3

./3

./3

./3

/.&1<

/.3&<

/.3'<

/.30<

/./"<

/./'<

/./0<

/.'"<

/.'/<

/.'$<

/.6<

-""./3<

."3$

."3$

."3$

."3$

."3$

."3$

."3$

."3$

."3$

."3$

."3$

."3$

N5T (=;*>T 5*;=5 T

Eorporation Ta+ 3<

=ate of =eturn on >nvestment

;perating (rot )argin

AnneJure *.1= )ro:ected Ba!ance Seet /or Year 1 >In UGX@ CA)ITA" EM)"9YE=

MT. 0

MT. 1

MT. #

MT. %

MT. *

MT. 5

MT. 6

MT. 7

MT. 8

MT. D

MT.1 0

MT.1 1

MT.1 #

2hare Eapital

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

=etained 5arnings Sareo!derPs E?uit&eKcit

3,775,000

7,550,000

11,325,000

15,100,000

18,875,000

22,650,000

23,925,000

25,244,000

26,606,000

28,012,000

29,462,000

21,669,200

8,775,000

12,550,000

16,325,000

20,100,000

23,875,000

27,650,000

28,925,000

30,244,000

31,606,000

33,012,000

34,462,000

26,669,200

30,000,000

30,000,000

30,000,000

30,000,000

30,000,000

30,000,000

27,500,000

25,000,000

22,500,000

20,000,000

17,500,000

15,000,000

38,775,000

42,550,000

46,325,000

50,100,000

53,875,000

57,650,000

56,425,000

55,244,000

54,106,000

53,012,000

51,962,000

41,669,200

10,000,000

9,958,333

9,916,667

9,875,000

9,833,333

9,791,667

9,750,000

9,708,333

9,666,667

9,625,000

9,583,333

9,541,667

9,500,000

40,000,000

39,666,667

39,333,333

39,000,000

38,666,667

38,333,333

38,000,000

37,666,667

37,333,333

37,000,000

36,666,667

36,333,333

36,000,000

@ong-Term @iabilities

EM)"9YMET 9$ CA)ITA"=

(lant uildings (roduction (lant 59uip. A )achinery  Testing 59uipment

0

0

0

0

0

0

0

0

0

0

0

0

0

)iscellaneous *i+ed ssets

0

0

0

0

0

0

0

0

0

0

0

0

0

Hehicles

0

0

0

0

0

0

0

0

0

0

0

0

0

/1

UGANDA GRAIN DEALERS LTD. BUSINESS PLAN CORPORATE DOCUMENT  "9GTERM ASSETS=

50,000,000

49,625,000

49,250,000

48,875,000

48,500,000

48,125,000

47,750,000

47,375,000

47,000,000

46,625,000

46,250,000

45,875,000

45,500,000

CURRET ASSETS=

- 8, 64 5, 00 0

- 4, 49 5, 00 0

- 34 5, 00 0

3 ,8 05 ,0 00

7 ,9 55 ,0 00

12 ,1 05 ,0 00

11 ,2 55 ,0 00

10 ,4 05 ,0 00

9 ,5 99 ,0 00

8 ,8 36 ,0 00

8 ,11 7, 00 0

- 1, 84 4, 80 0

ccounts =eceivable

2,261,667

2,261,667

2,261,667

2,261,667

2,261,667

2,261,667

2,261,667

2,261,667

2,261,667

2,261,667

2,261,667

2,261,667

2tock !>nventory#

6,981,000

6,981,000

6,981,000

6,981,000

6,981,000

6,981,000

6,981,000

6,981,000

6,981,000

6,981,000

6,981,000

6,981,000

327,097

327,097

327,097

327,097

327,097

327,097

327,097

327,097

327,097

327,097

327,097

327,097

-18,214,764

-14,064,764

-9,914,764

-5,764,764

-1,614,764

2,535,236

1,685,236

835,236

29,236

-733,764

-1,452,764

-11,414,564

CURRET "IABI"ITIES=

2 ,2 05, 00 0

2 ,2 05, 00 0

2 ,2 05, 00 0

2 ,2 05, 00 0

2 ,2 05 ,00 0

2 ,2 05 ,00 0

2 ,2 05 ,00 0

2 ,1 61 ,00 0

2, 11 8, 00 0

2 ,0 74, 00 0

2 ,03 0, 00 0

1 ,9 86, 00 0

ccounts (ayable

1,680,000

1,680,000

1,680,000

1,680,000

1,680,000

1,680,000

1,680,000

1,680,000

1,680,000

1,680,000

1,680,000

1,680,000

525,000

525,000

525,000

525,000

525,000

525,000

525,000

481,000

438,000

394,000

350,000

306,000

- 10 ,8 50 ,0 00

- 6, 70 0, 00 0

- 2, 55 0, 00 0

1 ,6 00 ,0 00

5 ,7 50 ,0 00

9 ,9 00 ,0 00

9 ,0 50 ,0 00

8 ,2 44 ,0 00

7 ,4 81 ,0 00

6 ,7 62 ,0 00

6 ,0 87 ,0 00

- 3, 83 0, 80 0

38,775,000

42,550,000

46,325,000

50,100,000

53,875,000

57,650,000

56,425,000

55,244,000

54,106,000

53,012,000

51,962,000

41,669,200

MT.1 D

MT.# 0

MT.# 1

MT.# #

ank alance and Eash ;ther Eurrent ssets

Eurrent (ortion of @ong-term @iabilities

ET CURRET ASSETS= T9TA" CA)ITA"

AnneJure *.#= )ro:ected Ba!ance Seet /or Year # >In UGX@ CA)ITA" EM)"9YE=

2hare Eapital

MT.1 %

MT.1 *

MT.1 5

MT.1 6

MT.1 7

MT.1 8

MT.# %

MT.# *

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

=etained 5arnings Sareo!derPs E?uit&eKcit

24,671,200

27,695,200

30,741,200

33,809,200

36,899,200

40,011,200

43,145,200

46,301,200

49,478,200

52,677,200

55,898,200

47,899,600

29,671,200

32,695,200

35,741,200

38,809,200

41,899,200

45,011,200

48,145,200

51,301,200

54,478,200

57,677,200

60,898,200

52,899,600

@ong-Term @iabilities

13,750,000

12,500,000

11,250,000

10,000,000

8,750,000

7,500,000

6,250,000

5,000,000

3,750,000

2,500,000

1,250,000

0

43,421,200

45,195,200

46,991,200

48,809,200

50,649,200

52,511,200

54,395,200

56,301,200

58,228,200

60,177,200

62,148,200

52,899,600

9,458,333

9,416,667

9,375,000

9,333,333

9,291,667

9,250,000

9,208,333

9,166,667

9,125,000

9,083,333

9,041,667

9,000,000

35,666,667

35,333,333

35,000,000

34,666,667

34,333,333

34,000,000

33,666,667

33,333,333

33,000,000

32,666,667

32,333,333

32,000,000

0

0

0

0

0

0

0

0

0

0

0

0

)iscellaneous *i+ed ssets

0

0

0

0

0

0

0

0

0

0

0

0

Hehicles

0

0

0

0

0

0

0

0

0

0

0

0

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