Premier Quality Kenya Dairy Business Plan — Key Performance Indicators
The yield, feed cost, fertility and milk quality indicators monitored monthly, with the thresholds that trigger intervention.
Key Performance Indicators
Jump to section
- 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
The following are the operating measures on which this enterprise should be managed. Three of them — average yield per cow, the share of forage self-grown and feed as a share of milk revenue — carry more information about whether the plan is holding than any revenue figure, because revenue rises with the herd build whether or not the underlying economics are working.
|
Indicator |
Definition |
Target |
Why it matters |
|---|---|---|---|
|
Average yield per cow per day |
Litres delivered divided by the average milking herd and days in milk |
23 litres by Year 5 |
A 15% shortfall removes KES 2140442 of Year 5 profit |
|
Share of forage self-grown |
Home-grown forage as a share of total forage fed |
90% |
Below 35% the enterprise makes no money at any scale. The steepest sensitivity in the model |
|
Feed as a share of milk revenue |
Milking-herd feed cost divided by milk revenue |
Below 60%, 53.2% at Year 5 |
The industry rule of thumb. On purchased forage the ratio rises above 68% and the business fails |
|
Cost per litre |
Milking-herd cost plus depreciation divided by litres sold |
Below KES 43 by Year 5 |
Against a net realised price of KES 48 and a KDB range of KES 30 to 37 |
|
Calving interval |
Average days between successive calvings |
405 days, 13.5 months |
The 12-month textbook figure is rarely achieved. Every extra month is lost milk and a delayed calf |
|
Somatic cell count and milk quality |
Cooperative test results at intake |
Within the quality premium band |
Cooperatives are moving to quality-based pricing. Cooling and hygiene are a revenue decision, not a compliance cost |
|
Debt service cover |
EBITDA divided by interest and capital |
Above 1.30x from Year 4 |
1.16x in Year 3 even within the grace period. The three-year grace is a condition, not a preference |
|
Silage bunker cover entering the dry season |
Months of conserved forage available |
At least four months |
A zero-grazing unit without conserved forage is exposed every dry season |
|
Heifer sales achieved against plan |
Surplus in-calf heifers sold |
Approximately 20% of Year 5 revenue |
If the market softens, retain and grow the milking herd instead |
|
Calf mortality |
Calves lost divided by calves born |
Below 6% |
Achievable with disciplined colostrum management and housing hygiene |