Dairy Joint Venture Plan

PROJECT: HASTOM DAIRY CATTLE JOINT VENTURE PLAN

PROJECT LOCATION: Ogbomoso, Oyo State.

PROJECT OBJECTIVES

  1. To establish a 500 capacity dairy farm for our clients.
  2. To impart on the growth of the dairysector of the nation to encourage natural milk production.
  3. To encourage the artificial insemination technology as a bid to increase the prevalence of exotic cattle breedswith superior milk production capacity in the nation.

 

Introduction

Nigeria is a potential market for 1.6billion litres of  milk annually but only produces only about 34% to meet the demand. The over 0.9 billion litres deficit is imported and this costs the nation a whooping #173.3 billion dollars. Of the estimated total domestic fluid milk production in 2006 for example, only about 600,000 litres (worth about N232.5 million) entered formal marketing channels through corporate, public and other private milk collection co-operatives schemes from migrant herdsmen and the output of the few commercial dairy farms.

Average yield from this traditional system is 0.7 – 1.5 litres of fluid milk per day. During the dry season, this figure drops to about 0.5 litres.

 

A few commercial livestock farms maintain crossbreeds of Holstein Friesians, Brown Swiss and Montpellier for fluid milk production and the average yield is 8 to 18 litres of raw fluid milk per day (compared to the national average of only 4 litres). On orthodox farms, the foundation stocks are mostly imported from South Africa, Europe and Australia. Average yield of pure breeds under corporate management conditions is 30 litres per day.

The facts are endless and so are the prospects of the dairy industry in Nigeria and across the boarders. But our emphasis is on the making the waves within.

 

In line with the cardinal operational goals of Hastom Nigeria which is to constantly present our clients with tested and proven investment portfolios that are both realistic and mutually beneficial, after careful technical and financial analysis, we present to you a new product from our livestock department tagged HASTOM DAIRY CATTLE JOINT VENTURE PLAN.

 

Why this product?

In consonance with the verifiable facts and tit-bits highlighted in the introduction above. We at Hastom Nigeria believe in maximizing opportunities and one of such as presented itself which Hastom Nigeria is currently relishing in and we thought it wise to extend to all our loyal and potential clients the opportunity to have a herd of cattle of their own.

Here is the background story, as at last month, ten viable cows of Hastom Nigeria were Artificially inseminated with semen of Holstein Friesian, an exotic breed of cattle specialized in milk production as a part of a pilot project currently sponsored by the United Nations to increase the milk production capacity of African local breeds of cattle by genetically cross breeding them with exotic breeds of cattle with better milk yielding capacity. Self-sufficiency is the goal and the market for milk is as readily available as that of beef as a litre of milk currently goes for #120.00 at gate price. The project is ongoing and the Insemination is free. We definitely want you to be a part of this.

 

Prospects of the Dairy Farm

The dairy farm is beginning to gainmomentum in the following ways.

  1. Supply of raw milk to dairy companies.
  2. Production of milk by-products such as yoghurt, milk shakes, cheese and so on.
  3. Breeding purpose. This entails the sales of exotic breed calves.

 

Mode of Operation.

For avoidance of any form of ambiguity, here is a breakdown of our this system works. You might want to ask, “what makes this different from our cattle joint venture plan?” Lets go through the basics;

  1. This product involves you purchasing a matured cattle that has calved at least once making it capable of carrying the foetus all through the gestation period.
  2. Your cow will be inseminated with the semen at least twice within the first three months it is brought into the farm. The second insemination will only be needed of the first fails after a scan has been done to ascertain intake two months after the first insemination.
  3. You are assured of a cow and calf of exotic breed at the end of the 12 month project cycle.
  4. You can decide to pick up your cow and calf at the end of the project cycle or dispose them.
  5. You can also decide to role over and have Hastom Nigeria raise the calf and the mother on your behalf.
  6. Hastom Nigeria will bear the responsibility of all the management practices involved in raising the cow from start to the point of calving.
  7. As the client you are entitled to regular updates and report via the online portal that would be created on the website for you to monitor the state of your farm.
  8. Stock owners can come from time to time to see and check how their stocks are faring.
  9. Rearing cost and expenses are paid upfront,

 

What are your benefits?

  1. You get a free artificial insemination procedure carried out on your cow for the first year.
  2. At the end of the project cycle, you get both your cow and a calf.
  3. An average exoticc breed of dairy calf in the market goes for between  #300,000-350,000
  4. The mother can be inseminated again after the first calf as been weaned. This will however come at a cost as we would be required to purchase the semen and all other tools needed for the insemination as the pilot project would have wound by then.

 

What is in it for Hastom Nigeria?

Hastom would be charging a management fee of 15% of the gross revenue each of the cow and the calf at the prevailing market price as at the time of sales.

 

Things not to worry about?

Insurance – All cattle will be insured by our Special Cattle Protection Plan

Security – Our ranch is secured with adequate security measures in a very safe and peaceful environment.  All our cattle are being raised and grazed on our over 700 hectares Hastom Green City which has abundant grazing area and good adequate water supply. An intensive system of production will however be employed here with the provision of grazing paddocks and supplementary feeds using concentrates and straws intermittently. The cattle health and welfare is being supervised by competent veterinary personnel

 

Cost Implications and Financial Projections.

PURCHASE AND REARING COST PER COW FOR 12 months

S/N Item Cost
1 Cost of Matured Cow 150,000.00
3 Housing 3,600.00
6 Feed supplement 14,600.00
7 Security 1,500.00
8 Drugs, Ropes, Tags and Taging 9,000.00
9 Utility 2,000.00
10 Labour 16,000.00
11 Mortality/ Insurance[2%] 3,200.00
TOTAL 199,900

 Revenue Projections

S/N Item Cost
1 Projected Value of Cow 170,000.00
2 Projected Value of Improved Calf breed 300,000.00
3 Gross Revenue 470,000.00
4 Hastom's 15% of Gross Revenue

 

70,500.00
5 Investor's Net Profit 399,500.00

 

 About Us:

Hastom Global Services Limited is an agricultural real estate company with the main objective of maximizing the potentials of agriculture. Our interests includes;

  1. Acquisition and sales of farmlands
  2. Agro-consulting
  3. Crop and livestock farming
  4. Processing
  5. Commodity trading
  6. Trainings

Office Address: Suite 18, Ajagungbade complex, High court road, Ogbomosho, Oyo state.

Farm Address: Hastom Green City, Baba Eko Village, Oriire local government, Oyo state.

For Enquiries:

Call: 08163013001, 08123235949 or 08060318769

Mail: [email protected]

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