IMO HILL FARMS - Danish Farmers Abroad€¦ · · 2016-09-05Imo Hill Farms Limited ... The farm...
Transcript of IMO HILL FARMS - Danish Farmers Abroad€¦ · · 2016-09-05Imo Hill Farms Limited ... The farm...
Introduction
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Imo Hill Farms Limited (“IHF” or “the Company”), is a private limited liabilitycompany engaged in animal husbandry (piggery & poultry), meat processing andfeed production
The Company has recently undertaken a strategy to expand its current operationsand has commenced its expansion plans
This document contains a brief background of IHF, its operations and its expansionplans; and highlights an opportunity to all interested investors to partner with theCompany
Detailed information will be made available to all parties that are interested inpursuing this opportunity further
Background Information
The Farm
Products
Current Facilities
Current Operational Strategy for Layers
Current Operational Strategy for Broilers
Current Operational Strategy for Pigs
The Company5
Background Information
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Imo Hill Farms Limited (“IHF” or “the Company”), located at 1 Joseph AwomoloStreet, Imo, Ilesa, Osun State was incorporated in June 1979 as a private limitedliability company
The Company is engaged in animal husbandry (piggery & poultry), meat processingand feed production
The Company is owned largely owned by the Awomolo Family through theircompany, Newco Investment, which has a 96.7% equity stake
In the late 80’s, the foundation stock of pigs raised in the farm were sourced fromGermany with the herd growing to about 3,000 pigs. By the mid-nineties, the farmwas fully stocked with over 7,000 pigs
In 2013, the piggery was reactivated with genetics from Topigs SA. From an initialstock of 173 pigs, the pig farm has grown to over 2,500 herd comprising bothcommercial and breeding pigs
Imo Hill Farms has been awarded SON NIS 517:2006 Certification of conformity forits Table Eggs while its other farm products are in the process of being certified
IHF has over 160 employees, including some expatriate staff
The Farm
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The farm is sited on 48 acres of land in the Imo hill area of Ilesa, Osun state,Nigeria
The farm has a broiler facility in Osu, a 30 minutes’ drive from Ilesa townshipcovering about 41 acres of land
The farm has undergone massive transformation in terms of infrastructuraldevelopment and system/process engineering and hence can be seen as anintegrated livestock farm offering superior quality products such as eggs, broiler,pork and processed meat to consumers
Products
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IHF’s pig herd consist of Topigs A Linegilts, Topigs Top40 gilts, B Line boarsand TEMPO boars. IHF uses artificialinsemination to breed its Top40 sowswhich its uses for commercialproduction
IHF rears broilers, layers and producesTable eggs
IHF processes two types of meat: Porkand Chicken. The pork is processedinto sausages, hams and bacon. Theprocessed chicken is available inwhole and portioned pieces
IHF has a Feed mill plant that produces all the feed utilized in the farm
Current FacilitiesPage 9
Pig
gery • 11 Pens
• Artificial Insemination Unit P
ou
ltry
• 2 Broiler Houses (25,000 capacity each)
• 5 LayerHouses
• 1 Rearing House (26,000 capacity)
• Central Feeding Station
Fee
dm
ill
• Two separate production lines with circa 3 tons per hour capacity
Me
atP
roce
ssin
g
• Broiler Processing Unit (1000 birds hrly)
• Pork Processing Unit (40 pigs daily)
• Cold Rooms
• Holding Freezer
• Cooling Rooms
• 45 pig carcass capacity hanging room
• Vacuum Sealing Machine
• Automatic Slicer
• Deridingmachine
• Ice making Machine
Some of these facilities were constructed and acquired under the Company’s Expansion Strategy
Current Operational Strategy for Layers
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Purchase of Day Old Chicks
In-house rearing of Day Old Chicks
Production of Table eggs
Distribution & Sale to market of Table eggs
and Spent Layers
Current Operational Strategy for Broilers
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Purchase of Day Old Chicks
In-house rearing of Day Old Chicks to
maturity
Processing of broilers to frozen processed
products
Distribution & Sales to market
Current Operational Strategy for Pigs
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Purchase of Boars
Artificial Insemination of
sows
Rearing of piglets to maturity
Processing of pigs to frozen
processed products
Distribution & Sales to market
Expansion Strategy
Phase 1 Phase 2
Poultry Expansion Work to date Expansion Work to date
Rearing/LayerUnit
•Construction of26,000 capacityRearing House forDay Old Chicks(DOC)
•Rearing House hasbeen completedand is operational
•Construction of 42,000capacity Rearing House forDOC•Construction of 11 LayerSheds (17,000 capacity)
Nil
Broiler Unit •Construction of 2Broiler sheds(26,000 capacityeach)
•Broiler sheds havebeen constructedbut are 50%operational
•Construction of 19additional Broiler houseswith 26,000 capacity each
Nil
Breeder Farm &Hatchery Unit
Nil Nil •Construction of 2 rearingsheds of 5,900 DOCcapacity each•Construction of 6 Breederfarm sheds•Acquisition of HatcheryEquipment
Nil
IHF’s Board decided to expand its operations in line with its mission of developing a verticallyintegrated protein production unit. This expansion was agreed to be undertaken in twophases as follows :
Expansion Strategy (2)
Phase 1 Phase 2
Piggery Expansion Work to date Expansion Work to date
Pigs •Resuscitation ofBreeder unit•Construction ofArtificial Insemination(AI) Unit
•Breeder Unit has beenresuscitated and isoperational•The AI Unit building isalmost completed but theAI Program is operationalon a temporary site
Relocation ofBreeder Herd
Nil
ChickenProcessing Unit
•Installation of Chickenabattoir (1,000 bird/hr)•Installation of Coldstorage, Blast freezer (5tons) and Holdingfreezer (30 tons)
•Abattoir has beeninstalled and isoperational•Cold storage, Blast freezerand Holding freezer havebeen installed and areoperational
•Upgrade of Coldstorage by 600tons
Nil
Pork ProcessingUnit
• Set up of Abattoir and further processing Unit
• Installation of Cold rooms.
•Abattoir completed andoperational•Further processing Unitcompleted and partlyoperational•Cold storage installed andoperational
•EquipmentUpgrade
Nil
Expansion Strategy (3)
Phase 1 Phase 2
Feedmill Expansion Work to date Expansion Work to date
CroppingDivision
Nil Nil •Acquisition of 400-hectare farmland•Set up ofmaize/Soya farm
•50% downpaymenthas beenmade
Equipment •Capacity upgrade from5 tons per day to 25tons per day
•Upgrade has beencompleted and isoperational
•Construction ofnew Feedmill (150ton per daycapacity)
Nil
Funding Requirement
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IHF requires a sum of N108million to consolidate and achieve full optimisation ofthe facilities installed in Phase 1. N20million will be used to acquire equipmentrequired at Broiler House 2 and for other necessary construction works to be donein the house. The N10million will be used to buy an additional blast freezer to beused in the meat processing factory while the balance of the N78million will serveas working capital for the next three months
IHF estimates that these sums will be utilised till year end 2016 and that Phase 2will commence in 2017
0
20.000
40.000
60.000
80.000N
'00
0
Phase 1
Broiler Meat Processing Working Capital
Market Assessment
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Demand for livestock productsestimated at 2.4 million tonnesper annum whilst supply is only1.2 million tonnes
Therefore a supply gap of 1.2million tonnes per annum oflivestock products
Market size of supply gapestimated at N1.35 trillion
Hence, there is an opportunityfor IHF’s increased products tofill some of this gap
Demand Supply Supply Gap
Market size of Gap
‘000 tonnes N‘mm
Poultry 868.0 295.6 572.4 797,580
Pork 364.6 253.7 110.9 129,363
Eggs 1,173.5 652.4 550.1 419,020
2,406.1 1,201.7 1,233.4 1,345,953
Source: FAO Statistics
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200
400
600
800
1.000
1.200
1.400
Poultry Pork Egg
'00
0 t
on
ne
s
Demand Vs Supply of Livestock Products
Demand Supply
The Opportunity
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Some of the opportunities available for IHF in Nigeria include:
Increased demand for poultry products from local farmers due to ban on the importationof frozen chicken and Government’s continuous efforts to prevent the smuggling offrozen poultry products
The Central Bank of Nigeria’s exclusion of importers of poultry/meat products fromaccessing foreign exchange loans in the Nigerian market
Increased demand for table eggs as it is the cheapest source of protein to Nigerians
Increase and popularity of Quick Service restaurants in urban centres
Rapid growth in the Nigerian population
Reduction in feed cost and improved nutrient quality of feed from in-house feedproduction
Strategic location of IHF with proximity to the Northern and South-South regions