business plan-A.p.p company proposal

UMK's Agropark Will Be The Centre Of Producing

Lower Cost Animal Feed Pellet Using Oil Palm Fronds

A.P.P COMPANY

Missions :-Producing and supplying high quality animal

feeds to farmer. - Expand the target market and increase

the livestock.

Visions :-To produce good quality of animal feeds and

can be marketed to whole Malaysia with emerge as the nation's foremost animal feed

supplier

Objectives :-Get closer ties between citizens University

Malaysia Kelantan with community.-To help farmers around Jeli reduce cost feed of their

livestock-Create business opportunities to community

around Jeli

Siti Subailah Binti Hj. SuodC.E.O

Norsyakira Binti MatGeneral Manager

Siti A’eisyah Binti Suhimi

Operation Officer

Azifah Binti Mohd Suhaimi Financial

Muhammad Razin Bin Ramli

Marketing

ORGANIZATION CHART

WHY Oil-palm fronds ???

1.Availability Of The Resources

The palm oil fronds prunedduring harvesting of the fruit

bunches.

2. Cost saving

OPERATION

UMK AS A PRODUCEER OF THE

ANIMAL PELLET

UNIT PENGUMPULAN

1.MENCARI SUMBER

2.BANTUAN CHOPPING MACHINE

3.PENGANGKUTAN

UNIT PEMPROSESA

NDAN

TEKNOLOGI

1.MESIN PENGHANCUR

2.MESIN “PELLET”

UNIT PEMBUNGKUSAN

1.PROSSES PEMBUNGKUSAN

DAN LABEL.

UNIT PEMASARAN

1

1.PROMOSI SEKITAR JELI DN KELANTAN

2.JABATAN PERTANIAN DAN HAIWAN

3.INSTITUSI PENDIDIKAN4.INSTITUSI KAJIAN

PUSAT PENGELUARAN “ANIMAL FEED -

PELLET”

PRODUCTION &MARKETING FLOW CHART

SISA DAUN KELAPA SAWIT

( FROND OF OIL PALM)

AP.P COMPANY (UMK)

CUSTOMER

ANIMAL’S FARMER

COMPANY BASED ON

AGRICULTURE

INSTITUTION OF EDUCATION

INSTITUTION OF RESEARCH

The simple procedure to make the animal

feed pellet:(By chopping, drying and pelletizing)

1.The fronds are chipped into smaller pieces of 10-20 mm

using a chipper

2.Drying using the solar

3. Put into Pellet Machine and mix with others

ingredients

4. Storage5. Transport

MARKETING

1)Product -Blended feed pellet

Pellet made from 100 percent fresh palm frond

Pellet mix with other ingredients

2) Price - Lower than the market price

For the blended feed pellets will sell at RM25 for a 40 kg bag compare to market

price that is RM30 The pellet made from 100 percent fresh palm frond is sold at RM12 for a 40kg bag

compare to market price that is RM17.

MARKETING STRATEGIES

3)Promotion - The promotion can be done through the direct

selling- The promotion also can done through the

facilities of the technologies such as multimedia of television, radio and others.

4)Place- The product will be supply around the

focusing point of people, like Kota Bharu city- The product will be send into the agencies of

government.

• Have many competitors.

• When shortage of residue crop to produce pellet.

• Strategic location with no pollution

• Low cost of raw materials.

• No problem in securing a steady supply of palm fronds.

• Lack of deliveries to the other state

• High demand from other states and country

• Can be a learning centre for university student.

(THREAT) (STRENGTH)

(WEAKNESS)

(OPPORTUNITY)

S . W . O . T . A N A L Y S I S

FINANCIAL

 Projected Financial Statements

Income Statements

Period from 2014 to 2015 and projected 3 years

2014 2015 Year 1 Year 2 Year 3

Income

Pellet 78,000 77,000 78,000 79,000 80,000

Crops 6,000 6,000 6,000 8,000 9,600

NTS/FII 2,700 2,700 2,700 2,700 2,700

a) Total Cash Income 86,700 85,700 86,700 87,700 91,000

Direct Expenses

Crop Expenses 6,600 6,600 6,600 6,600 6,600

Processing Expenses 8,030 8,030 8,030 8,030 8,030

Equip. Fuel & Repairs 10,200 10,200 10,200 10,200 10,200

Marketing & Trucking 2,250 2,250 2,250 2,250 2,250

NTS/FII 1,875 1,875 1, 875 1,875 1,875

b) Total Direct Expenses 28,954 28,954 28,954 28,954 28,954

Indirect Expenses

Labour 4,000 4,000 4,000 4,000 4,000

Legal & Accounting 850 850 850 850 850

Insurance & Licences 2,400 2,400 2,400 2,400 2,400

Utilities, Misc. 2,850 2,850 2,850 2,850 2,850

Operating Interest 2,000 1,800 1,700 1,400 900

Term Loan Interest 10,000 9,000 8,000 7,000 7,000

c) Total Indirect Expenses 22, 100 21,000 20,900 20,600 20,200

d) TOTAL EXPENSES 51,054 49,954 49854 49554 49154

e) NET RETURN CASH

EXPENSES (a-d)

35,646 35,746 36,846 38,146 41,846

Depreciation -12,100 -10,990 -9,970 -8,670 -7,040

Inventory Change 2,400 400 1,200

f) Total Adjustments -12,100 -8,590 -9,970 -8,670 -7,040

g) NET FARM INCOME(e+f) 23,546 27,156 26,876 29,476 34,806

RECOMMENDATION 

1.Provide the training skills to

community and students around

Kelantan.

2. Cooperation with agencies of

government to improve the quality

of the product through the

research.

CONCLUSIONOil-palm fronds have been success-fully used as a

substitute for tropical grasses by ruminant producers in

Malaysia. In addition, the traditional role of feed

manufacturing has changed as animal production units

have increased in size. The key to lowering feed costs is

to understand the interrelationships that exist from the

time ingredients are purchased to the time the animal

consumes the feed. Other than that, animal feed

manufacturing plays a vital role in the overall food

production industry. It’s a very active business and its

players are always in dynamic interaction.

ANIMAL FEED-PELLET

A.P.P COMPANY