Project Nebo Nigeria - Danish Farmers Abroad
Transcript of Project Nebo Nigeria - Danish Farmers Abroad
Project Nebo Nigeria
Business Plan
Master Plan
Conceptual Design
Tender
Implementation
Commissioning
Operations
Agenda
1. How did it all start 2. Contract Negotiations 3. Operating Environment 4. Milk Production in Nigeria 5. Market Characteristics 6. The Project 7. Financial numbers
Who am I?
Born in 1957 in St. Thomas (USA) Married to Natalia (Russian) and have two sons Grew up in Nigeria and Ghana (1962 – 1969) Sent to boarding school in Denmark (1969) Parents retired in 1990 Responsible for international activities at a major
Danish consultancy company Master degree in Civil Engineering (1986) Established MyAdvizor in 2013
How did it all start?
1. Telephone call (Abel Dangana) 2. Agent Agreement 3. Invitation to visit Denmark
• Former Chief of Airstaff 4. Meeting with the Mayor of Furesø (Political connections) 5. Minister of Power
How did it all start? How did it all start?
How did it all start?
Contract Negotiations How they were conducted
Operating Environment PESTEL Analysis
1. Political 2. Economical 3. Social 4. Technology 5. Environmental 6. Legal
Milk Production in Nigeria Production (Demand)
• Milk available - 1,500 million liters –locally produced and imported
• Between 1% and 15% of the total demand is produced locally
Milk Production in Nigeria Consumption per capita
Milk Production in Nigeria Consumption per capita
Market Charateristics
Competitor - sector Market share
2012
Traditional producers 19.31%
Large Scale Dairy Farma 4.83%
Large scale processors
75.86%
Imports
Main Players Function Market Products
Traditional Producers
(Fulani Pastoralists)
Traditional
production, some
also processing,
marketing and
distribution
Low income –
Rural areas
Madara (fresh milk)
Nono (sour milk)
Kindirmo (sour yogurt)
Maishanu (butter)
Cuku (Cheese)
Wara (Cheese)
Wagashi (Cheese)
Large-Scale Dairy
Farmers
Production, some
also processing,
marketing and
distribution
Higher income –
Urban areas
Fresh milk for further
processing
Yogurt
Butter
Cheese
Large-Scale Processors Distribution of
finished products,
Processing from
imports and local
supply, marketing
and distribution
Higher income –
Urban areas
Evaporated milk
Powdered milk
Baby formula
Yogurt
Butter
Ice Cream
Cheese
Imports Distribution of
finished products
Higher income –
Urban areas
Full cream
Butter
Cheese
Skimmed
Fresh
Others
Market Charateristics Price level
Product Selling (USD) Selling (DK)
900 g milk powder 9.30 65,0
400 g milk powder 2.8 – 4.5 19,0 – 30,0
500 g yogurt 1.6 – 2.0 11,0 – 13,5
1 l yogurt 3.2 – 4.0 22,0 – 27,5
1 l whole UHT 1.7 – 2.1 11,5 – 14,0
200 g butter 3.2 – 3.6 22,0 – 24,5
1 l fresh whole milk 4.3 29,5
The retailer purchasing price for butter is DKK 18,0 and fresh whole milk is DKK 20,5
The Project
The Project
Financial numbers CAPEX
Investment Total, USD
Dairy farm
Farm buildings 1.850.000
Farm technology and inventory 970.000
Milking parlor, incl. building and equipment 540.000
Feeding storage 470.000
Waste storage 270.000
Farm equipment 250.000
Field machinery 705.000
250 pregnant heifers, young heifer calves and bulls 1.700.000
Dairy farm total 6.800.000
Dairy Plant total 1.800.000
Civil Works total
d
1.600.000
Administration total 1.300.000
Unexpected costs 10% 1.100.000
CAPEX TOTAL 12.600.000
Financial numbers OPEX
Amount year 3 USD/unit Total USD
Revenue
Milk, 3,5% 810.000 kg 2.5 2.025.000
Milk, 1,5% 774.000 kg 2.5 1.935.000
Butter, 250 gr 33.200 kg 3.5 465.000
Sales cattle 160 500 80.000
Revenue Total 4.540.000
Cost
Variable Costs 1.200.000
Other costs 500.000
Total cost 1.710.000
EBITDA 2.800.000
Depreciation 970.000
EBIT 1.800.000
Interest 120.000
Profit before tax 1.690.000
Financial numbers Pay-Back
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