North West Agri Feeds Business Plan — Operating Model

Raw material intake, milling, mixing and pelleting, and the throughput discipline behind 26,325 tonnes.

Section 11 of 26

Operating Model

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The operating model must deliver two things above all: consistent product quality (the basis of the value proposition) and disciplined cost (the basis of survival in a thin-margin industry). The plant is designed around a conventional, proven feed-milling process flow, specified for a 10 t/h line with room to run extended hours.

Process flow

Receiving → Weighing & QC → Storage → Grinding → Batching → Mixing →

Micro-dosing → Conditioning → Pelleting → Cooling → Screening → Bagging/Bulk → Dispatch

Facility and equipment

Production & storage

Support & infrastructure

Raw-material receiving & intake

Laboratory & QC

Grain storage & ingredient silos

Maintenance workshop & spares

Hammer mill (grinding)

Electrical infrastructure & backup generation

Automated batching & mixer

Administration offices & staff facilities

Pellet mill, cooler, crumbler, screener

Weighbridge & vehicle loading area

Bagging line & finished-feed warehouse

Fleet / logistics yard

Procurement — the profit lever

Because ingredients are ~83% of cost, procurement is not a back-office function, it is where the business is won or lost. NWAF will run a disciplined procurement model integrating three objectives: price, quality and availability.

  • Maintain multiple approved suppliers for every major input to avoid single-source risk.
  • Use forward and seasonal purchasing to lock favourable pricing and smooth volatility.
  • Hold defined safety stocks calibrated against price risk and lead time, without over-exposing working capital.
  • Integrate procurement tightly with sales and production planning so purchases match the order book.

Quality control

Every major raw-material shipment is inspected and tested before acceptance; finished product is batch-tested; and full traceability is maintained from ingredient to dispatch. A laboratory capability, internal or through accredited partners, supports supplier approval, moisture and nutritional analysis, contamination control and complaint monitoring. Consistent QC is the operational foundation of the entire value proposition.

Working capital and the cash conversion cycle

Table 5. Working-capital drivers (days)

Driver

Y1

Y2

Y3

Y4

Y5

Debtor days

45

45

42

40

38

Inventory days

40

38

36

35

34

Creditor days

30

32

34

35

36

Cash conversion cycle

55

51

44

40

36