MANAGEMENT PLAN FOR: APPLICATION OF A FEEDLOT FOR

DITLOGOLO TSA MOTLATSI SYNDICATE

NATURE AND BACKGROUND OF THE PROJECT

The company name for the project to be undertaken is called Ditlogolo Tsa Motlatsi Syndicate. The company is planning to open a feedlot in Kwau. The main objective for this project is to buy and groom cattle for selling.

BACKGROUND AS TO PROJECT SUBMISSION

The plot in question is located in Kwau. The scope of this plot is basically to operate as a feedlot. The management team of the company came up with a new idea of livestock business, which is highly profitable and has a material improvisation in all existing business techniques. The concept of doing a manageable business has evolved to be a requirement of the time and deviation from traditional habit of keeping large amount of livestock is proved to be wise

The place at which the project can be developed is already known hence there is no confusion about it. This project will cause no harm to neighboring villagers and environment-friendly techniques will be taken. Also, it will be able to provide employment opportunities to the neighboring residents.

FEASIBILITY OF THE PROJECT

The project is very much viable in Kwau because competition as to project submission is low in that area. Ditlogolo Tsa Ga Motlatsi Syndicate will be one of the few feedlots in the area. Currently, the other existing feedlots are not able to meet demand from customers. Hence, we dont see any major market risks as risks usually arise only if there is widespread competition in the proposed area. This is evidence that the operation of the feedlot will be a success.

Our target market consists of mainly BMC, Butcheries and the Local market itself. Inscriptive profits can be made from these targets if zero grazing methods for feed looting are practiced. We are positive that the revenue received will be able to cover costs and loan repayments as well as interest accrued.

FINANCING The promoter of this project will be BAROLONG ELECTRICAL AND HARDWARE (Pty) Ltd, whom we expect to give us an approximate total amount of P100 000. This a company owned by a citizen of Botswana Aupa Matane. The nature of business of this company is Hardware and it is located in Goodhope. We will also apply for a long-term loan from CEDA, an approximate of P300 000, which we expect to pay off within a period of 5 years.

ESTIMATION OF LEVEL OF INVESTMENT For the success of the project, the following Equipments will be purchased to procure specifically for this project:

Equipment 1x LS4 Electronic scale 1x Cattle scale crate 1x Cattle self feeder 1x Cattle loading ramp Others Total cost

Estimation cost Pula 7,000 6,000 3,500 7,000 1,500 25,000

An estimated cost of roughly P150, 000 will be used to build a house for the manager as well as the storeroom.

Other direct expenses will include a modern kraal of 2.4m with high security fencing divided into three paddocks of 50m x 50m each will be built, cattle medicine, transportation charges, salaries and wages and other day to day expenses.

MANAGEMENT Besides the director, at the commencement of the project, seven (7) employees will be employed. The employees and their salary scale will be as follows:

Starting salary Manager 1 Laborers 6 P750 P600 (each)

RESPONSIBILITIES OF THE DIRECTOR & THE EMPLOYEES

The director who is well experienced in this line of activity is capable of leading the employees.

The responsibility of the manager will be to manage day to day activities of the feedlot and to manage the laborers. The laborers will be responsible for feeding and grooming the cattle for market purposes.

PROJECT GOALS AND OBJECTIVES The main aim of the project is to buy and groom cattle for selling. Also, the project will be able to provide employment to a few numbers of people. As time progresses, a few new activities which go along the original plan of starting a feedlot will be taken. These will include: A feedlot manure plan whereby we will be storing, treating, transporting and utilizing manure effectively to prevent runoff or leaching that could

contaminate surface and ground water with excessive nutrients and pathogens; to reduce odor, dust and fly nuisance; to reduce greenhouse gas emissions.

MARKETING PHILOSOPHY

This project is very economically viable. The Motto is to provide the best cattle at a reasonable cost.

This project will be providing employment initially to seven people. If it is able to make more profits, it will also be able to employ more people. It will also help in the economic development of the region and the country.

The company is confident that this venture will survive and will be profitable.