Premier Quality Kenya Dairy Business Plan — Housing, Water and Equipment
Cubicle housing, water provision, milking and chilling equipment, and the infrastructure a zero-grazing herd requires.
Housing, Water and Equipment
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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
|
Component |
Specification |
Why it is specified this way |
|---|---|---|
|
Zero-grazing units |
Cubicle housing with concrete floors, adequate slope and drainage, roofed feed alley and separate calf pens |
Poor housing design is a leading cause of mastitis and lameness, both of which destroy yield faster than any feed deficiency |
|
Water |
A borehole with elevated storage and reticulation to each stall |
A lactating cow drinks 60 to 100 litres a day, and water restriction reduces milk yield faster than under-feeding |
|
Milking |
A small milking parlour with a bucket or pipeline milking machine, and stainless steel handling equipment |
Hand milking a herd above about 20 cows becomes a labour and hygiene constraint. The herd passes that point in Year 2 |
|
Cooling |
An on-farm cooling tank so that evening milk can be held and delivered chilled |
Cooperatives increasingly pay on quality, and warm milk is rejected or discounted |
|
Forage handling |
Chaff cutter, silage bunkers to 250 tonnes, and a tractor or contracted mechanisation for land preparation and harvesting |
The fodder block only delivers its KES 4.10m of value if the forage can actually be cut, chopped and conserved on time |
|
Manure |
Slurry channels and composting bays, with a biogas digester option to reduce energy costs |
Housed animals allow near-complete manure capture; it returns to the fodder block and is sold to horticultural and tea growers |
6.1 Capital expenditure detail
|
Item |
Amount (KES) |
Depreciation life |
Note |
|---|---|---|---|
|
In-calf heifers, Year 1, 20 head |
4 000 000 |
Not depreciated |
At KES 200 000 per confirmed in-calf heifer |
|
Zero-grazing housing and calf pens |
2 800 000 |
20 years |
Cubicle housing to 55-cow capacity, built in two phases |
|
Water: borehole, storage and reticulation |
1 200 000 |
15 years |
Including WRA authorisation and pump |
|
Forage equipment and mechanisation |
1 100 000 |
8 years |
Chaff cutter, implements, contracted tractor services |
|
Milking parlour and machine |
900 000 |
10 years |
Bucket or pipeline system with stainless handling equipment |
|
Milk cooling tank |
900 000 |
10 years |
Enables evening milk delivery and quality premiums |
|
Feed store and silage bunkers |
800 000 |
15 years |
Approximately 250 tonne silage capacity |
|
Fodder establishment, 12 acres |
450 000 |
5 years |
Land preparation, seed, cuttings, first fertiliser |
|
Fencing, site works and services |
400 000 |
15 years |
Perimeter, internal roads, power connection |
|
Manure handling and composting |
350 000 |
10 years |
Slurry channels, composting bays, biogas provision |
|
Total capital expenditure at inception |
12 900 000 |
Biological assets are carried at cost and are not depreciated; cull and surplus stock sales are taken to revenue as they arise. Depreciation of KES 742 500 a year is charged on the fixed assets only, over lives of five to twenty years. The heifers bought in Years 2 to 4 add a further KES 8 400 000 to the biological asset carrying value, taking it to KES 12 400 000 by Year 4.