EXECUTIVE SUMMARY

BUSINESS GOALS AND IDEAS

To fulfill market demand for meat and meat product, to utilize agriculture
waste (pineapple and corn waste), to save foreign exchange, to provide job
opportunities. The cattle are stall fed for 100 days. The purpose is to fatten
the cattle and to be sold at an increased price.

MARKETING

Malaysia is only 20% self-sufficient in beef. We have 80% potential of

producing local beef which means there is a big market for fresh quality
beef.

OPERATIONS

Business owner would be Ilyas bin Said. The farm is located in rural area far
from human dwelling, accessible with good roads, water supply and
electricity. The company has 2 workers attending 200 cattle at any time. The
cattle are sold to traders, butchers and retailers.

FINANCES

Financing are partly provided by Agrobank.

BACKGROUND
MISSION STATEMENT

The owner wished to be self-employed and generate income for the family.

COMPANY HISTORY

This is a new company and its first venture into cattle farming.

BUSINESS GOALS OF THE FIRM

 To generate RM 93,000.00 a year @ RM 7,750.00 per month.

 To answer government calls to increase national beef production.

 To make use of the availability of local agriculture products.

MARKETING
MARKET ANALYSIS:

Industry trends:

There is a high demand for fresh quality beef and imported frozen beef are
getting less popular today. Malaysians today are getting more affluent and
lifestyles are certainly changing.

Seasonal variations:

Fresh quality beef demand would increase during festive season and school
holidays. Demand from various tourism sectors such as hotels are increasing
with the increasing number of tourists to Malaysia.

Competitors:

This business, feedlotting of cattle is still new in Malaysia and it is not well
established, therefore competition is few.

Potential strategic allies:

 Agrobank to provide financial support.

 FAMA to support marketing.

 Veterinary Department to provide technical support and importation

permit.
SWOT analysis:

Strengths Weaknesses
• The workers have vast experience in • New company.
managing cattle.
• Limited finance.
• Big market for fresh beef since we
are only 20% self-sufficient in beef. • Don’t have experience in
large scale operation.
• Company has 4 years experience in
small scale feedlotting.

Opportunities Threats
• Good support from • Diseases.
government with availability of
veterinary services. • Natural disasters.

• Natural environment is • Economic downfall.

suitable for cattle farming.

• Good infrastructure.
MARKETING PLAN:

Products and target market:

The company target markets are traders, butchers, retailers and private
buyers.

Promotions and advertising:

To enhance marketing the company will advertise in local newspapers.

Company will establish own website on the internet. Brochures will be
distributed to the public. Participation in exposition such as MAHA which is
organized by the Ministry of Agriculture and other events.

Pricing policy:

The company will sell the products as competitive as possible according to

the demand of market forces and prices issued by FAMA as a guideline.

Evaluation of marketing:

Market forces are highly influenced by seasonal variations such festive

season and school holidays. Company may increase production during these
times and be more proactive in advertising and promotion due to increasing
demand.

OPERATIONS AND PRODUCTION

Legal and licensing requirements:

Application for license would be made to Veterinary Department for the

importation and transportation of life animals across districts and states.

Management and organizational structure:

This company will be staffed by the proprietor and two experience workers.
Professional advisers:

Connection with Veterinary Department and veterinary doctors would be

maintained for professional advices.

Security fencing:

The yard would be protected by perimeter fencing.

Business premises:

All business premises are within the same area of the project.

Plant and equipment required:

 3 ton lorry.

 Grass chopper machine.

 Feed mixer.

Production processes to be used:

The cattle are kept in the fattening yard for 100 days. They are stall fed with
PKC (palm kernel cake), quality grass and other agriculture waste. Water is
supplied at all time. Health and progress are monitored at all time. At the
end of 100 days the cattle are sold alive.

Critical risks and contingency plans to cover these:

 Diseases: Vaccination of animals, medication and veterinary advice.

 Food shortage: Planting of grass.

 Marketing: Aggressive marketing and slaughter of animals to sell at

retail.
FINANCIAL PROJECTIONS

All the forecasts made were acquired based on costing and statistics
provided by Veterinary Department, FAMA and Ministry of Consumer. A
clearer picture of the sales mix, cash flow, market trends and operations
were acquired by interviewing existing entrepreneur and attending seminars
about this business.

Basic calculations for one unit of cattle feedlot project:

Production cost

a Feeder cattle @ 250 kg each x RM 6.00 per kg 1,500.0

0

b PKC, grass & agriculture waste @ 8 kg each per day x 320.00

RM 0.40 per kg x 100 days

C Overhead cost @ RM 1.00 each x 100 days 100.00

e Total production cost 1,920.

00

Selling price

f Sold feedlot cattle @ 350 kg each x RM 6.00 per kg 2,100.0

0
Profit

Land preparation cost 5,000

200,0
g Selling
Animal price
holding yard– production cost
00 (f) – (e) each 180.00
animal 30,00
Coral Yard 0
h Multiply by number of animals each
20,00 round (200 36,000
animals)
Food store construction 0 .00
60,00
200tank
Water x RM180.00
and pipes 0
Area fencing 3,000
i Minus workers’ salaries @ 2 people x RM 25.00 per 5,000.
30,00
day x 100 days 00
Waste treatment plant 0
12,00
Income per cycle = 36,000.00 – 5,000.00 31,000
Weighing device 0
.00
30,00
Feeding equipment
One year income = Income per 0 cycle x 3 rounds 93,000
30,00 .00
2 ton
(RMlorry
7,750.00 each month) 0
420,0
Total 00

Overhead cost
Break- even point

Overhead cost ÷ Profit per year = 420,000 ÷ 93,000

= 4.52 years
IMPLEMENTATION TIMETABLE

Daily timetable:

Numb Job description Time Action

er

1. Food preparation 8.00-9.30am Worker

2. Feeding 9.30- Worker

10.00am

3. General cleaning 10.00- Worker

11.00am

4. Health inspection and 11.00- Worker and manager

treatment 12.00noon

5. Lunch 12.00- Staffs

1.00pm

6. General cleaning and repair 1.00-3.00pm Worker

7. Food preparation 3.00-4.30pm Worker

8. Feeding 4.30-5.00pm Worker

9. Marketing and overall 8.00am- Manager

management 1.00pm

10. Weighing the animals Monthly Worker and manager

11. Selling the animals End of 3rd Manager

month