2.

5 MARKETING

2.0MANAGEMENT

AND

DEVELOPMENT PLAN
2.1PARTICULAR

OF

AN

APPLICANT
The applicant Tawanda Bellington Toitoi is young energetic Motswana aged 27 years applying for a
commercial ranch under youth category. The applicant I.D NUMBER 883013712 (please see
attached copies) and currently residing in orapa from jackalas 2 village. Mr Toitoi is married to Mrs
Goitseone Fikile Sibanda aged 26 years .From Mathagwane village. Mr Toitoi can be reached at va
Email-ttoitoi@debswana.com ... Contacts 77079292 or 71579205.

2.2 PROJECT BRIEF

Botswana is a semi-arid climate environment; this makes about 85 % of the agricultural land suitable
for pastoral farming (Livestock rearing) than arable farming. The livestock sector plays a significant
role in Botswana agricultural output . livestock rearing is responsible for a number of important
roles on both rural communities and developing areas. Agriculture is a source of employment to local
community hence empowering them indirectly. Livestock provide a source of foreign exchange
which help in the upgrading of Botswana economy. The mandate of the project would be to export
beef by selling to Botswana Meat Commission (B.M.C), accommodate youth to learn about livestock
rearing and breading and to breed quality breeds for exporting and selling them locally to improve
cattle breeds in Botswana .Adoption of new technologies developed in livestock rearing will assist
Botswana to be competitive on global markets hence this technologies will be implemented on the
project. This will improve livestock productivity to preserve the profitability of commercial livestock
activities on both domestic and global markets. My ambition is to diversify the economy by ensuring
quality livestock rearing.
Agricultural policies advocated on communal rangeland farming help to improve range conservation
practices. Fencing alone cannot improve the use of range land in an suitable manner. Fenced areas
should always be characterized by good management of livestock and range resources as
competition among pastoral farmers result in depletion of range resources. The livestock sector
especially cattle play a vital role in Gross Domestic Products (GDP) as currently it contributes
about 3%. To improve agricultural sector (especially pastoral farming) energetic youth and
government should give it more attention as a way of diversifying the economy.
The applicant have ambitions of starting livestock rearing for commercial purposes , provide
and accommodate youth educational tours and camps and to create employment and upgrade
rural immigrant social life. The applicant have been managing a family mixed herd of about
150 in matopi cattleposts which was then negatively affected by foot and mouth disease. Mr
Toitoi has desires to continue agricultural sector especially pastoral farming in foot and mouth
disease (FMD) free area. Mr Toitoi currently owns an audi 3 vehicle with intensions of
obtaining agricultural assets to pursue dreams of being a renowned farmer.

2.5 MARKETING

PROJECT OBJECTIVES
To engage in full time beef production by maximizing profits of the ranch investment in order to have
resources to expand management scenarios of both the ranch and livestock production. These will ensure that
livestock products and its business correlate hence rendering the business viability and sustainability.
To create employment for youth and accommodate youth educational camps through farmers associations.
To improve livestock quality for sustained of take throughout the business.
To improve herd management to economically sound standards by taking both nutritional and veterinary
precautions alongside proper management.
To promote suitable use of grazing resources and environment by complying with carrying capacities of the
ranch hence maintaining the ecosystem

GEOGRAPHICAL LOCATION
The ranch applied for is in Kaka Ranch No 38-NO of 3811 hectares is located in Central District in Boteti
area. The vegetation type is characterized by grassland and shrub savanna.
HUMAN RESOURCE PLAN
Human Resources play a pivotal role in any business environment. It is therefore vital to consider the welfare
of employees or staff in any business. With regard to the intended project the manager and other skilled and
unskilled labour force shall be provided with residential accommodation together with any other fringe
benefits as may be seen fit from time to time.
Permanent staff remunerations per month for first year operation
POSITION

QUANTITY

SALARY

DUTY

Director

BWP 5500.00

Run the business (ranch)

Farm manager

BWP 3500.00

Manage day to day farm duties

Financial and marketing

manager

BWP 3000.00

Manage farm funds and

accounting duties

Veterinary technician

BWP 2500.00

Manage animal health

Artisan

BWP 1500.00

Manage water reticulation to all

the paddocks and the farm as a
whole

Herd men

BWP 800

Looking after livestock

2.5 MARKETING
BUSINESS STARTUP FUNDS
Source of income

QTY

AMOUNT

Bank loan FNB

BWP 50 000 and above

CEDA

UP TO BWP 30 000000

Bank loan-Barclays

BWP 50000 and above

Unutilized personal assets

BWP 20 000

START UP EXPENSES
Assets

OTY

UNIT PRICE(BWP)

AMOUNT(BWP)

Power supply (380v)

500000

1000 000

Pipes motor and cables

50 0000

100 000

Cows

200

5000

1000000

Bulls

10 000

80 000

Transport

100 000

Fencing

1000 000

Accommodation

500 000

Vat (12%)

44

LIVESTOCK AND SALES PROJECTION IN TEN YEARS

STOCKING PLAN

YR 1

YR2

YR3

YR4

YR5

YR6

YR7

YR8

YR9

COWS

200

200

250

370

455

450

450

450

450

CALVES

130

170

186

215

305

352

405

444

413

HEIFERS

BULLS

10

15

18

18

MALES

65

85

106

157

193

191

191

TOTAL OFF TAKE

65

293

314

417

301

437

437

TOTAL AFTER OFF TAKE

338

378

408

406

546

433

550

414

416

Birth rate was calculated at 65% for year 1&2. 85% for the Remaining years

OPERATION EXPENSES
Year 1
Farm l
Year 2
Year
Year
Year
Year
Year
Year
Year

YR10
450
451
0
18
191
437
416

2.5 MARKETING
The applicant has sound marketing skills as he have been conducting business on car
parts sales. This skills will help to market beef , and quality bred cattle to B.M.C
(Botswana Meat Commission) and the community at large including other farmers. High
quality breeds of bulls and heifers will be earmarked for sale and marketed to other
farmers locally and internationally through media houses, internet, farmers associations
and agricultural shows.
Farmers meetings will be attended to market my breeds and acquire marketing skills
form other farmers. Marketing agents will also be used to assist in marketing my
products.
ENVIROMENTAL CONSIDERATION
The project will be made environmentally friendlyby observing good conservation
practices. Indiscriminate cutting of trees and other plants will be avoided, only
encroaching species will be removed mechanically to promote the growth of grasses and
other useful plants.
Approved methods of waste disposal will be conducted. Combustible material will be
burnt on ranch and waste that be recycled such as alluminium can will be taken to
recycling points. Enviroloos will be built and employes encouraged to use them and
educated on risk of using the grassland. This will reduce the spread of disesase such as
measles and even pollution of underground waters.
RISK SENSITIVITY / SWOT ANALYSIS
STRENGTH
The applicant has strong
knowledge on agriculture
but willing to hire
qualified pessonnel

Have strong marketing

skills and aiming on
marketing qualification
Have strong ambitions
and dreams to kickstart in
agriculture
OPPURTUNITIES
Market segmentation is
an advantage as they are
oppourtunies to sell to
Botswana
Meat
Commission.
BMC
prices
are
reasonable thus making
production a lucrative
venture.

WEAKNESS

Lack
of
appropriate
ranching
facilities
Lack of trained
personnel
Lack of transport

THREATS
Shortage of skills
Outbreak
of
cattle
diseases such as foot and
mouth and lung diseases.

2.5 MARKETING

2.5 MARKETING

2.5 MARKETING

100 heifers, drill and equip a borehole, perimeter fencing, living quarters

and handling facilities. The promoter has been farming with beef
cattle for the past twenty years and currently has a herd of 170
mixed animals,
with close to 70 heavily pregnant cows. He plans to contribute fifty (50)

cows to this project and purchasing hundred heifers which will ensure
that the breeding stock in this expansion phase of his project is 150
cows and four bulls. The existing animals and other assets that the
promoter has may be used to back up the project in case of anyunforeseen challenges. The project already employs four (4) laborers,
three of whom

are herd men. The projects will be full time managed by the promoter,
who has a farming history and a Junior Certificate obtained in 1975.
Mr. Phale managed to study up to Form Four with his personal effort.
He is currently a pensioner after working for 23 years for Local
Government, He left in 2007 as a Senior Technical Officer in Electrical
Department.

The promoter plans to market his cattle to BMC. He will also sell heifers
to the community at a profitable price.
On analysis, the project proved to be a viable endeavor because it
will make sales of BWP590, 000 on the first sales with a net profit of
BWP155,000 from his breeding herd of 250 cows. This shows
increasing profitability. The project also showed that there will be
23% return on capital employed (Money invested) on the first year.

Objectives
1. To expand a beef production enterprise in a cattle post
2. To contribute to the increase of the national herd
3. Increase agricultural output and productivity
4. To generate wealth from underutilized national resources
5. Increase employment opportunities for the fast growing labour
force
2

2.5 MARKETING

a. Project Execution
Beef cattle production involves breeding beef cattle in an aim to sell

young heavy cattle at an age of two years or less. This will be achieved by cross
breeding the existing Brahmans cows and the ones that will be
purchased with terminal sire breeds, preferably the Charolaise. Cattle

will be bred at

18 months for heifers. This is a time when they are

allowed to roam with bulls and mate(The breeding plan will commence in April and end in
July) so that calves will be born in summer when forage is ample. After calves are born, they
will be nursed for seven

months then separated from their mothers in to a different paddock. The young
animals will be well fed with supplements until they are 18 months when they will be
put on feedlot. They will be fed on high energy feed in the feedlot for three months
then sold to Botswana Meat Commission (BMC) at a weight of about 400kg. each will fetch
an average of BWP3,500.00.

The whole herd will be vaccinated against common diseases like

Pasteurella, Botulism and lumpy skin disease. They will also be dewormed twice a year and
given vitamin A dose twice a year. Dipping will be done according to tick challenge.

b. Management and Skill

the promoter, who is an experienced farmer will manage the project by himself on full time
basis. He has been farming cattle since 1979. He has a Junior Certificate (JC) and managed to
study up to Form Four as an adult. He also has a certificate in Electrical Engineering. The
promoter has been farming with beef cattle for so long that his vast experience in beef cattle
will see the success of this project. Where he does not have husbandry skill, the promoter has
been liaising with the Department of

Veterinary Services for help.

c. Organizational Structure
The project currently has five employees including the promoter. After expansion, it will have
ten (10)employees. The promoter will be the owner manager, assisted by a farm foreman.
Each project site will have one pump attendant and three laborers.

2.5 MARKETING

d. Implementation Plan
Implementation schedule of planned farm is

as follows:

Activity
Oct
Drilling

and

Nov

Dec

Jan

Feb

Mar

Apr

equipping

borehole
Construction of Homestead

and handling facilities

1.

Purchase of heifers and

employ workers

2. Construction of reservoir
3. Construction of perimeter
fence
4.

Installation of feeding

troughs
5. Paddocking
6.Construction of fire breaks
7.Commence Breeding
Water reticulation

Management Plan

a. Stocking rate
The stocking rate for Kaka area ranges from 13-16ha/LSU (equivalent of one mature cow). This
implies that the ranch envisaged (57-MO) with a total of 3516.2 will stock a total of 251

LSU. A total of 150

cOws and four (4) bulls will be stocked because they will give birth to 112 calves at 75%
calving rate. It is assumed that 10% of the calves will die due to natural courses. This
means there will be 100 heifers and tollies, each of which is 0.75LSU. These will be in
the farm when the next generation of calves is born. They will be put on feedlot when

2.5 MARKETING

the calves at the grazing stage

(three months old) to avoid over

grazing.

At full operation, the farm will have 150 cows (150LSU), four bulls (8
LSU) and 100 long weaners at 14 months (75LSU)which adds up to 233 LSU. This short
fall is important in case the weaners are kept longer and grow to maturity and it allows for
replacement heifers.

b. Paddocking
The farm will be paddocked in to four main paddocks and one smaller paddock for sick
animals, cows that are about to give birth and bulls.

Paddock 1
while paddock

will accommodate cows and calves, paddock 2 weaners

3 and 4 will rest to re-grow. After the two main paddocks have been

grazed well, the weaners will be rotated first to

new pasture followed by cows. This will ensure less worm infestation on young
animals.
c. Disaster management(control of veld fire)
As already indicated, fire breaks will be constructed with a clearing of 6m on both sides of
every fence in the farm. As project matures and funds become available, a water bowser
that is used for fire fighting will be bought. This can be drawn by a van.

d. Range management Practices

Rotational grazing will be practiced initially by alternating
e. 0
water points.

f. U Paddocks will be constructed to facilitate the rotational

grazing systems.
Conservative stocking rate will be used a as control measure
g. 0
for vegetation conservation.
h. U
Mulching of bare soils shall be fully practiced to induce grass
germination in order to increase pasture in the ranch.
i. U Over sowing of pasture grasses and legumes will be attempted
in low-density areas, and where soils are bare to improve and
incorporate palatable grass species into pasture.

2.5 MARKETING

j.

0
Cattle will be kraaled and supplied with dicalcium phosphate
throughout the year to avoid diseases such as aphosphorosis and

Botulism that are common in livestock production areas.

k. 0
Supplements also help to make livestock more docile and
tame since they develop a habit of going back to kraals in the evenings.
1. L I It reduces prolonged grazing because some of the time will be
spent by the cattle in kraals licking concentrates rather than
grazing hence minimizing the trembling and grazing effect.

3. Financing Plan
The project is approaching National Development Bank for a loan.

The bank offers loans ranging from BWP20,

million. The bank requires

000 to BWP60

25% contribution from the project owner and gives

up to 2 years grace period.

Staff (CEDA) Personal loan could be used as contribution to the
NDB loan. CEDA staff members are entitled to personal loans of up
to 40% of their basic salaries as deductions.

Sale of animals on annual basis will also assist to finance the

project.
Letter of financial support, `financial statement for three month, current livestock
numbers and copies of blue books have been annexed to support the above.

4. Marketing and viability

4.1. Marketing
The project will target BMC as its main market. BMC currently supplies the following countries;
Norway, Denmark, Holland, Belgium, United Kingdom, Germany, Italy, Greece, Hong Kong,
Kenya, Malawi,

Zimbabwe, Mauritius, Reunion, Botswana and South Africa. Botswana

has a preferential Market access in the EU market at duty rates of 5% or less compared to
imports from other beef producers such as Canada, Australia, Brazil and Argentina with duty
rates from 50% to nearly 100%.

2.5 MARKETING

Botswana beef products also have duty free access to the South African

market due to the SACU free trade agreement as against duty rates of
40% for other countries exporting to South Africa. Botswana exports to other SADC countries
are subjected to preferential duty of 15% instead of the normal 25%.
BMC provides sufficient market for beef cattle in Botswana. The slaughter capacity of BMC
vis-a-vis the current slaughter is as follows;

Table 4.1: BMC slaughter capacity vs actual slaughter

Abattoirs

Capacity/perCattle slaughteredCattle slaughtered

annum
BMC Lobatse &

300,

Francistown

cattle

000

in 2006

in 2007

137,336 cattle

179, 000 cattle

This shows that there is a shortfall in supply of cattle to BMC every year. As a result BMC was
unable to meet its European quota of 18, 916 tonnes in 2007 supplying only 8, 000 tonnes. BMC has
introduced a new export parity price structure (see the attached price structure) to

encourage weaners production and increase in off-take rates. This

scenario presents a viable opportunity for any kind of beef cattle project. Competition from
other beef producers will not pose any risk of loss of market) The project is expected to make
annual revenue of BWP155, 000.00 from 170 finished weaners when fully operational.

Ten heifers will be kept as replacement heifers.

The project will also target feedlots in and around Lobatse. To achieve the annual throughput
of 300,000 head at BMC, abattoirs will require a standing feedlot capacity of around 125,000
heads; currently the existing

2.5 MARKETING

capacity is 25,000. There is an opportunity to develop feedlot capacity of

100,000 -110,000 heads.

4.1 Financial viability
The financing plan for the project is tabulated below. The promoter will
contribute working capital and vehicle towards financing of the project. Table 4.2: Project
capital investment
Description

Amount (BWP)

Breeding stock

400, 000.00

Transport(van and truck)

220, 000.00
10, 000.00

Equipment

Borehole drilling and equipping

130,000.00

Fencing

300,000.00

Housing and accommodation

80,000,.00

Handling Facilities

0-29 6b

120, 000.00

Working capital

1,260,000.00

Total

3(0bw.'t7

kf

Table 4.2: Working capital required

Description

PULA (BWP)
24, 000.00

Feeds

6, 000.00

Veterinary services

12, 000.00

Salaries
Borehole fuel 8& lubricants

6, 000.00

Transport (to BMC)

5, 000.00
67, 000.00

Loan repayment

120,000.00

Total

2.5 MARKETING

Table 4.3: Financial Viability

Description

Amount (BWP)

Revenue

590,000.00

Direct costs

120,000.00

98,000.00

Overheads
Loan repayment

165,000.00

Net Profit

155,000.00