livingstone farm estate
DESCRIPTION
Livingstone Farm Estate is a unique and creative farm investment framework created to expand Nigeria's agricultural produce capacity by insentivizing stakeholders in the investment sector to fund it through a great return on investment offer.TRANSCRIPT
LIVINGSTONE MEGA INDUSTRIES LIMITED
4B Ogun-Osun River Basin Development Authority,
Oyo Road, Niko,
Iseyin, Oyo State
VISION
Service and Excellence; exceeding customer expectations!
MISSION STATEMENT
Profitable growth through innovation, superior customer services, cutting edge technology, and
business best practices.
MANTRA
Signature of Excellence
OUR CORE VALUES
The acrostic LINES which stands for loyalty, Innovation, Networking, Excellence, and Service
captures the very soul of Livingstone Mega Industries. Not only do we hold them to be
sacrosanct, they define the way we do business.
We combine strong allegiance to our esteemed customers and relentless workers with our
resignation to rolling out excellent products and services using technology, research and
innovation as tools to continually reinvent ourselves so as to adapt to changing situations and
global business best practices.
All this is made possible through our policy of maintaining a network of teams of highly driven
workforce, highly talented, well-motivated and relentlessly engrossed in the pursuit of
customer satisfaction and the company’s expansion.
Statement of Confidentiality & Non-Disclosure
This document contains proprietary and confidential information. All data submitted to [RECEIVING PARTY] is provided in reliance upon its consent not to use or disclose any information contained herein except in the context of its business dealings with LIVINGSTONE MEGA INDUSTRIES LIMITED. The recipient of this document agrees to inform its present and future employees and partners who view or have access to the document's content of its confidential nature.
The recipient agrees to instruct each employee that they must not disclose any information concerning this document to others except to the extent that such matters, are generally known to, and are available for use by, the public. The recipient also agrees not to duplicate or distribute or permit others to duplicate or distribute any material contained herein without LIVINGSTONE MEGA INDUSTRIES LIMITED’s express written consent.
LIVINGSTONE MEGA INDUSTRIES LIMITED retains all title, ownership and intellectual property rights to the material and trademarks contained herein, including all supporting documentation, files, marketing material, and multimedia.
BY ACCEPTANCE OF THIS DOCUMENT, THE RECIPIENT AGREES TO BE BOUND BY THE AFOREMENTIONED STATEMENT.
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LIVINGSTONE FARM ESTATE
Livingstone Farm Estate is a service section of Livingstone Mega Industries
Limited that provides investment opportunities to all who would like to take
advantage of the present growth opportunities in the agro-allied sector. It is
structured into two stages; one and two. Stage one provides investment
opportunities in the cropping section of our project while Stage two deals with the
processing aspect.
It is a profit sharing arrangement in which investors own slots in the total
investment projects that is a reflection of the ratio of their investments. 60% of the
profits would accrue to the investors while 40% would go to Livingstone Mega
Industries Limited. A memorandum of understanding would be signed before any
payments are made.
The farm estate which is comprised of four groups; Silver, Diamond, Gold, and
Platinum, is structured into slots of hundred thousand each amounting to 694 slots,
six hundred and ninety-four slots in both stage one and two. The minimum amount
investible is one million naira (Platinum); however, we have made provisions for
low-end investors by creating a second investing pool divided into three groups:
a. Silver, comprising of ten individuals investing a minimum of hundred
thousand naira #100,000 each
b. Diamond, comprising of five individuals investing a minimum of #200,000
each and;
c. Gold, comprising of four individuals investing a minimum of #250,000 each
The eventual profit per investment slot depends on what stage of the farm estate
the investor pays for.
The projection for each project is shown below:
STAGE ONE
PROJECTION ON CASSAVA PRODUCTION FOR 50 HECTARES (125
ACRES) OF LAND
COST ANALYSIS
Land leasing:
4,000 PER hectare
50 Hectares = #4,000 x 50
= #200,000
Clearing:
#2,000/acre
= #250,000
Ploughing:
#4,000/acre
= #500,000
#200,000
Ridging:
#3500/acre
= 437,500
Cultivation (Planting) of cassava
Stem cuttings:
80 bundles of cassava will plant 1 Hectare
4000 bundles will plant 50 Hectares
At #400/bundle = 4000 x 400
= #1, 600,000
Labour: #3000/acre = 375,000
Herbicide:
Primextral etc:
#10,000/Hectare
= #500,000
Labour for herbicide application:
#1500/acre = #187,500
Weeding:
#1,187,500
#1,975,000
#862,500
3500/Hectare = #175,000
Transportation
#3000/hectare of planting materials
=#150,000
Fertilizer
5bags per hectare
One bag = #3500 = #875,000
Fertilizer Application @ 1500/acre
= #37,500
Harvesting and Marketing
#5000/Hectare = #250,000
Administrative Expenses
Total Expenses
#250,000
#5,937,500
#150,000
#912,500
#400,000
Benefits Analysis
1 Hectare yields 15-20 tons of cassava
With a conservative yield of 18 tons per hectare:
50 Hectares will yield 50x 18
= 900 tons
1 ton sells for between #10,000 and #15,000
With an average selling price of #12,000/ton
Therefore expected revenue = 12,000 x 900
= #10,800,000
Gross Profit= 10,800,000-5,937,500 = 4,862,500
#10,800,000
PROJECTION ON PLANTAIN PRODUCTION FOR 10
HECTARES (25 ACRES) OF LAND
COST ANALYSIS
Land leasing:
4,000 PER hectare
10 Hectares = #4,000 x 10
= #40,000 = #160,000 for 4 years
Clearing:
#2,000/acre
= #50,000
Ploughing:
#4,000/acre
= #100,000
#160,000
#150,000
Cultivation (Planting) of Plantain
Plantain Suckers:
1,400 suckers of plantain will plant 1 Hectare
14,000 suckers will plant 10 Hectares
At #150/Sucker = 14,000 x 150= 2,100,000
Labour: #3000/acre = 75,000
Herbicide:
#15,000/Hectare
= #150,000
Labour for herbicide application:
#1500/acre = #37,500
Transportation
#5000/hectare of planting material
=#50,000
#2,175,000
#50,000
#187,500
Fertilizer
5bags per hectare
One bag = #3500 = #175,000
Fertilizer Application @ 1,500/acre
= #37,500
Harvesting and Marketing
#10,000/Hectare = #100,000
Administrative Expenses
Benefits Analysis
1 bunch of plantain sells for #1400
Assuming 90% of all plants produce (90% of 14,000 = 9,800), and sale is made at #1100;
Turnover would be
(9,800 * 1100) = 10,780,000
Gross Profit would be (10,780,000-3,535,000) = #7,245,000
#100,000
#3,535,000
#212,500
#500,000
PROJECTION ON PINEAPPLE PRODUCION FOR 5
HECTARES (12.5 ACRES) OF LAND
COST ANALYSIS
Land leasing:
4,000 PER hectare
5 Hectares = #4,000 x 5
= #20,000 = #80,000 for 4 years
Clearing:
#2,000/acre
= #25,000
Ploughing:
#4,000/acre
= #50,000
Ridging:
#3500/acre
= #43,750
#80,000
#118,750
Cultivation (Planting) of Pineapple
Pineapple Suckers:
28,000 suckers of pineapple will plant 1 Hectare
140,000 suckers will plant 5 Hectares
At #40/Sucker = 140,000 x 40= 5,600,000
Labour: #3000/acre = 37,500
Herbicide:
#15,000/Hectare
= #75,000
Labour for herbicide application:
#1500/acre = #18,750
Transportation
#3000/hectare of planting materials
=#150,000
Fertilizer
5bags per hectare
#5,637,500
#150,000
#93,750
One bag = #3500 = #875,000
Fertilizer Application @1500/hectare
= #37,500
Harvesting and Marketing
#5000/Hectare = #250,000
Administrative Expenses
Total Cost
Benefits Analysis
1 pineapple sells for #200
Assuming 70% of all plants fruit (70% of 140,000 = 98,000), and sale is made at #150;
Turnover would be
(98,000 * 150) = 14,700,000
Gross Profit would be (14,700,000-#6,917,500) = #7,782,500
#250,000
#6,955,000
#125, 000
#500,000
STAGE TWO
Cassava Processing
Processing time-100 days
Equipment Leasing- #60,100 per day (Total leasing Cost-#6,010,000)
Raw Materials Cost- #108,000 per day (Total Raw materials Cost-#10,800,000
Working Capital-#31,900 per day (Total Working Capital Required-#3,190,000
Total Expenses-#200,000 (Aggregated Total Expenses-#20,000,000)
Anticipated Sales per day-#374,850 (Total Anticipated Sales- #37,485,000)
Anticipated Profit per day-#174,850 (Total Anticipated Profit- #17,485,000)
Plantain Processing
Processing time-30 days
Equipment Leasing-#43,000 per day (Total leasing Cost-#1,290,000)
Raw Materials Cost-360,000 per day (Total Raw materials Cost-#10,800,000)
Working Capital- #31,900 per day (Total Working Capital Required-#9,570, 000)
Total expenses- #434,900 (Aggregated Total Expenses-#13,047,000)
Anticipated Sales per day- #980,000 (Total Anticipated Sales- #29,400,000)
Anticipated Profit per day- #545,100 (Total Anticipated Profit- #16,353,000)
Pineapple Processing
Processing time-100 days
Equipment Leasing-#19,800 per day (Total leasing Cost-#1,980,000)
Raw Materials Cost-147,000 per day (Total Raw materials Cost-#14,700,000)
Working Capital- #31,900 per day (Total Working Capital Required-#3,190,000)
Total expenses- #198,700 (Aggregated Total Expenses-#19,870,000)
Anticipated Sales per day- #392,000 (Total Anticipated Sales- #39,200,000)
Anticipated Profit per day- #193,300 (Total Anticipated Profit- #19,330,000)
Total Expenses incurred for Livingstone Farm Estate is Sixty Nine Million, Three Hundred and
Forty-Four Thousand Five Hundred #69,344,500
At Hundred thousand naira (#100,000) per slot, this amounts to 693.445 slots or 694 slots.
Total Anticipated Profit from Livingstone Farm Estate is Ninety-Two Million, Nine Hundred
and Twenty-Eight Thousand Naira #92,928,000
STAFFING AND EQUIPMENT MAINTENANCE COST
Every project requires human resources to effectively deploy all other resources and so ensure
profitability. Equally, equipments, machines, and tools would have to be maintained to ensure
they don’t break down or fall into a state where they would not be efficient, so as to ensure the
projects sustainability. Livingstone farm Estate is no exception. However, Livingstone Farm
Estate is designed in such a way that those costs are born by Livingstone Mega Industries
Limited, besides the management services they provide for this project. It is for these costs borne
and the management provided that 40% of the project’s profit accrues to Livingstone Mega
Industries Limited.
MARKETING OUTLETS
Profit is made only when sales are made, bearing that in mind, Livingstone Mega Industries has
made adequate arrangement for the sale of the products as follows:
Cassava: If it is to be sold raw, these would be sold to Psaltery Limited, Ado-Awaye, in Iseyin.
However, the target of this project is to process the cassava into garri, cassava chips, flour, which
would be packaged and sold in the open market, Shoprite and other retail stores, to hotels, as
well as starch making companies within Nigeria and abroad.
Plantain: Livingstone Mega Industries currently produces plantain flour which is sold to the mass
market. Like the cassava, these would be processed into flour and sold through retail stores, sales
representatives, and other distributors Livingstone Mega industries has cultivated.
Pineapple: would also be bought and processed by Livingstone Mega Industries and sold through
our existing marketing outlets for our fruit chips production.
RISKS AND ASSUMPTIONS TO BEAR IN MIND
Every project has associated risks and assumptions. The risk this project faces includes natural
disasters such as drought or flooding, slumps in the prices of foodstuff in the market, as well as
theft. However, we have taken measures to mitigate these risks by ensuring that our farms would
be guarded and we have set up an emergency response unit equipped with motorized pumps so
as to tackle any potential drought or flood.