Golden Delta Rice Business Plan — Appendix B: Capital and Cost Schedules
Detailed capital expenditure and cost schedules covering land development, irrigation, the milling line, storage and vehicles.
Appendix B: Capital and Cost Schedules
Jump to section
- Overview & contents
- i. Important Notice and Basis of Preparation
- 1. Executive Summary
- 2. The Business
- 3. Why the Mill Is the Business
- 4. Market Analysis
- 5. SWOT and Competitive Position
- 6. Production and Operations
- 7. The Outgrower Scheme
- 8. Organisation and Compliance
- 9. Financial Plan
- 10. Break-Even and Debt Service
- 11. Investment Analysis
- 12. The Finance Rate Decides This Project
- 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 Cost Schedules
- C. Appendix C: Funding and Debt Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Glossary
- B.1 Capital expenditure
- B.2 Pre-operational cost and working capital
- B.3 Depreciation and asset roll-forward
- B.4 Production and milling cost detail
B.1 Capital expenditure
|
Item |
Amount (₦) |
% of total |
Life |
|---|---|---|---|
|
Rice mill: parboiling, destoner, huller, polisher, grader, 1 t/h |
172 000 000 |
25.2% |
12 years |
|
Land development, levelling and bunding, 100 ha |
96 000 000 |
14.1% |
20 years |
|
Irrigation: pumps, canals, pipes and boreholes |
84 000 000 |
12.3% |
15 years |
|
Tractors, power tillers and implements |
78 000 000 |
11.4% |
8 years |
|
Combine harvester, one unit |
62 000 000 |
9.1% |
8 years |
|
Drying yard, platform dryer and moisture control |
41 000 000 |
6.0% |
12 years |
|
Paddy and rice warehouse, 1 200 t capacity |
38 000 000 |
5.6% |
20 years |
|
Generator, electrical reticulation and solar array |
34 000 000 |
5.0% |
12 years |
|
Delivery trucks and farm vehicles |
29 000 000 |
4.3% |
6 years |
|
Site works, offices, staff housing and fencing |
22 000 000 |
3.2% |
20 years |
|
Professional fees, permits and commissioning |
14 000 000 |
2.1% |
10 years |
|
Weighbridge, laboratory and quality equipment |
12 000 000 |
1.8% |
10 years |
|
Total capital expenditure |
682 000 000 |
100.0% |
B.2 Pre-operational cost and working capital
|
Item |
Amount (₦) |
Share of funding |
Treatment |
|---|---|---|---|
|
Working capital for the first production cycle |
307 653 000 |
28.1% |
Opening cash |
|
Pre-operational salaries, recruitment and training |
34 000 000 |
3.1% |
Charged against reserves at day zero |
|
Land acquisition costs, surveys and community agreements |
26 000 000 |
2.4% |
Capitalised |
|
Outgrower scheme establishment and input pre-financing |
24 000 000 |
2.2% |
Capitalised |
|
Registrations, permits, NAFDAC and certification |
11 000 000 |
1.0% |
Charged against reserves at day zero |
|
Launch marketing, branding and trade listing |
9 000 000 |
0.8% |
Charged against reserves at day zero |
|
Total pre-operational and working capital |
411 653 000 |
37.6% |
B.3 Depreciation and asset roll-forward
|
₦ |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|---|---|---|---|---|---|
|
Opening balance |
682 000 000 |
623 083 333 |
564 166 666 |
505 249 999 |
446 333 332 |
|
Depreciation charge |
(58 916 667) |
(58 916 667) |
(58 916 667) |
(58 916 667) |
(58 916 667) |
|
Closing balance |
623 083 333 |
564 166 666 |
505 249 999 |
446 333 332 |
387 416 665 |
|
Cumulative depreciation |
58 916 667 |
117 833 334 |
176 750 001 |
235 666 668 |
294 583 335 |
B.4 Production and milling cost detail
|
Production cost per hectare per crop |
Amount (₦) |
Share |
|---|---|---|
|
Fertiliser: 4 bags NPK, 2 bags urea |
303 000 |
24.5% |
|
Labour: transplanting, weeding, harvesting |
268 000 |
21.7% |
|
Land preparation: ploughing, harrowing, puddling |
185 000 |
15.0% |
|
Irrigation, pumping and fuel |
132 000 |
10.7% |
|
Harvesting and threshing |
112 000 |
9.1% |
|
Agrochemicals: herbicide and pesticide |
88 000 |
7.1% |
|
Certified seed, 60 kg per hectare |
75 000 |
6.1% |
|
Field transport, bagging and handling |
47 000 |
3.8% |
|
Crop insurance, NAIC index cover |
26 000 |
2.1% |
|
Total per hectare per crop |
1 236 000 |
100.0% |
|
Milling cost per tonne of paddy |
Amount (₦) |
Share |
|---|---|---|
|
Parboiling energy and fuel |
16 500 |
29.7% |
|
Milling power and diesel |
12 800 |
23.0% |
|
Mill labour |
9 400 |
16.9% |
|
Packaging: 50 kg woven bags, printed |
8 600 |
15.5% |
|
Maintenance, spares and consumables |
5 200 |
9.4% |
|
Quality control and losses |
3 100 |
5.6% |
|
Total milling cost per tonne |
55 600 |
100.0% |