Premier Quality Kenya Dairy Business Plan — Appendix B: Capital and Herd Schedules
Detailed capital expenditure and herd build schedules covering housing, equipment, fodder establishment and livestock.
Appendix B: Capital and Herd Schedules
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- Overview & contents
- i. Important Notice and Basis of Preparation
- 1. Executive Summary
- 2. Market and Opportunity
- 3. Why the Fodder Block Is the Business
- 4. The Production Model
- 5. SWOT and Competitive Position
- 6. Housing, Water and Equipment
- 7. Regulatory and Compliance Framework
- 8. Management and Organisation
- 9. Financial Plan
- 10. Break-Even and Debt Service
- 11. Investment Analysis
- 12. Sensitivity and Scenario Analysis
- 13. Risk Analysis
- 14. Implementation Roadmap
- 15. Key Performance Indicators
- 16. Key Assumptions
- 17. Conclusion and Recommendation
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Capital and Herd Schedules
- C. Appendix C: Funding and Debt Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Glossary
- B.1 Capital expenditure and depreciation
- B.2 Project cost and funding
- B.3 Herd roll-forward
- B.4 Forage requirement and the fodder block
B.1 Capital expenditure and depreciation
|
Item |
Amount (KES) |
Life |
Annual depreciation (KES) |
|---|---|---|---|
|
Zero-grazing housing and calf pens |
2 800 000 |
20 years |
140 000 |
|
Water: borehole, storage and reticulation |
1 200 000 |
15 years |
80 000 |
|
Forage equipment and mechanisation |
1 100 000 |
8 years |
137 500 |
|
Milking parlour and machine |
900 000 |
10 years |
90 000 |
|
Milk cooling tank |
900 000 |
10 years |
90 000 |
|
Feed store and silage bunkers |
800 000 |
15 years |
53 333 |
|
Fodder establishment, 12 acres |
450 000 |
5 years |
90 000 |
|
Fencing, site works and services |
400 000 |
15 years |
26 667 |
|
Manure handling and composting |
350 000 |
10 years |
35 000 |
|
Total fixed assets |
8 900 000 |
742 500 |
|
|
In-calf heifers at inception, 20 head |
4 000 000 |
Not depreciated |
— |
|
Total capital expenditure at inception |
12 900 000 |
B.2 Project cost and funding
|
Item |
Amount (KES) |
Note |
|---|---|---|
|
Fixed capital expenditure |
8 900 000 |
Housing, water, milking, cooling, feed store, forage equipment, fodder establishment, fencing and manure handling |
|
In-calf heifers at inception, 20 head |
4 000 000 |
At KES 200 000 per confirmed in-calf heifer |
|
In-calf heifers, Years 2 to 4, 42 head |
8 400 000 |
16 in Year 2, 16 in Year 3 and 10 in Year 4 |
|
Working capital |
5 600 000 |
Sized to hold cash above zero through the Year 4 trough |
|
Contingency |
445 000 |
5% of fixed capital expenditure |
|
Total project cost |
27 345 000 |
|
|
Promoter equity |
17 345 000 |
63% of the funding structure |
|
Term debt |
10 000 000 |
37%; ten years at 15.5% with a three-year principal grace |
|
Total sources |
27 345 000 |
Sources equal the requirement exactly |
B.3 Herd roll-forward
|
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
|---|---|---|---|---|---|
|
Heifers purchased in the year |
20 |
16 |
16 |
10 |
0 |
|
Cumulative heifers purchased |
20 |
36 |
52 |
62 |
62 |
|
Average milking herd |
16 |
28 |
36 |
45 |
52 |
|
Young stock and replacements |
18 |
32 |
48 |
62 |
72 |
|
Total herd |
34 |
60 |
84 |
107 |
124 |
|
Biological assets at cost, KES |
4 000 000 |
7 200 000 |
10 400 000 |
12 400 000 |
12 400 000 |
B.4 Forage requirement and the fodder block
|
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
|---|---|---|---|---|---|
|
Forage for the milking herd at 45 kg a day, tonnes |
263 |
460 |
591 |
739 |
854 |
|
Forage for young stock at 20 kg a day, tonnes |
131 |
234 |
350 |
453 |
526 |
|
Total forage required, tonnes |
394 |
694 |
942 |
1 192 |
1 380 |
|
Grown on the 12-acre block at 90%, tonnes |
355 |
625 |
848 |
1 073 |
1 242 |
|
Saving at KES 3.30 a kilogram, KES |
1 170 180 |
2 061 180 |
2 797 740 |
3 540 240 |
4 098 600 |