Biological assets

Living animals held for production. Carried at cost in this plan and not depreciated; cull and surplus stock sales are taken to revenue as they arise.

Calving interval

The average period between successive calvings, assumed at 13.5 months. The 12-month textbook figure is rarely achieved in Kenyan conditions, and every extra month is lost milk and a delayed calf.

Days in milk

The days a cow is lactating, assumed at 305 against 60 days dry — 83.6% of the year in milk.

Debt service cover ratio

EBITDA divided by interest plus scheduled capital repayment. 1.16 times in Year 3, the first year principal falls due, against a typical covenant of 1.30.

Desmodium and lucerne

Legume forages grown on two of the twelve acres. They supply protein, reduce the purchased concentrate requirement and fix nitrogen for the maize that follows.

Grace period

A period during which interest is paid but no capital is repaid. Three years here, and without it cover in Year 3 would be 0.89 times.

Lactation average

Average yield across an entire lactation, as distinct from peak yield. A cow advertised as a 30-litre animal is describing her peak; her lactation average is materially lower.

Napier grass

A high-yielding, drought-tolerant bulk forage grown on four of the twelve acres and harvested cut-and-carry. Pakchong and Kakamega variants are specified.

Self-grown forage share

Forage produced on the farm as a percentage of total forage fed. 90% in the plan; below approximately 22% the enterprise makes no money at any scale.

Sexed semen

Semen sorted to produce approximately 85% heifer calves. A government subsidy reduced the cost from about KES 7 000 to KES 1 400 a straw.

Silage

Forage conserved by fermentation in bunkers, providing the dry season buffer. 250 tonnes of capacity is specified, giving roughly four months of cover.

Zero-grazing

A stall-feeding system in which cattle are housed and all feed is cut and carried to them. It produces far more milk per hectare than open grazing but converts a land-based business into a feed-purchasing one.