Venture Capital Wanted For Silage Making

Opportunity Summary

Opportunity Summary

The company was formed in July, 2007 by Capt Jaffar Chaudhry. The company is registered in Pakistan with SECP (Security & Exchange Commission of Pakistan), with a Paid up capital of Rupees 20 Million and an authorised capital of Rupees 60 Million.

The strength of the company’s operations lies in the abilities of the company founders. Capt Jaffar has in depth knowledge of both methods of a company’s operational requirements in Pakistan and existing farming practices and environmental constraints. A W Jones or Tony as everybody calls him brings as a consultant with 40 years of expertise of profitable farming methods from the UK, Europe, and the International markets.

It was immediately recognized after investigation at the company’s first venture at the Village of Sarja-Marja that the solution to profitability for farmers in Pakistan was not the ability to grow suitable fodder but the ability to have access to that fodder 365 days a year.

In Pakistan individual farmer’s collect green fodder on a daily basis for feeding to their stock this means that stock are not fed a consistent diet not only in quantity but also in quality. The cost of production of both milk and meat is 65% dependent on the cost of fodder inputs. Both individual farmers with 2 and 3 animal and large dairy farms housing 3 to 4 hundred are at a disadvantage when competing with the world market. The production cost per liter is around Rupees 18 to 25. Respond to this opportunity which is even higher than Europe and the USA. However Pakistan has the ability to produce due to its climate and soil fertility at least three times more Maize per acre than any other country in the world. The solution to the problem therefore is not in production, but ensiling and storage of surplus production at harvesting, and delivering, the same without compromising the quality.

The western world has been using ensiling techniques of surplus fodder for the last 2000 years the methodology is not new all that has changed since Roman times is the mechanization of the techniques. BBCFP were the first organization to successfully introduce those techniques and feed silage to livestock in Pakistan.  Not only the villagers of Sarja-Marja now enjoy the benefits of improved labour and land usage plus increases in profitability and performance that silage brings to the farming of livestock, but number of other Farms and Villages in the country.

There is huge demand in Pakistan for the supply of fodder to various regions and individual large scale dairy operations. Investment into large scale dairies is being restricted purely for this reason. The government is endeavouring to spread the production of both milk and meat to support impoverished regions but here again the major constraint is either the production of fodder or the ease of access to the transportation of it.

The solution to Pakistan’s need to improve both its budding Dairy Industry’s profitability and expansion, and its rural populations requirement to increase production in an endeavour to alleviate  poverty, lies with the production of silage.  The regions of high soil fertility such as the Punjab are perfectly capable of producing the product all that is required is a method of transportation of that product to farms all over Pakistan.

THE SOLUTION.

BBCFP has established a base farm at Sarja-Marja, and has access to large areas of land both at the farm and in the surrounding districts. It has established exclusive access to major manufactures of modern ensiling machinery in Europe. It also has the exclusivity of importation of products from International companies to both enhance the quality of ensiled fodders and the production of TMR (Total Maintenance Rations).

It is proposed the site at Sarja-Marja is used as a base to produce a retail able product that can be transported for consumption by livestock to all the regions of Pakistan. The areas ability to produce 45 tons maize per acre per year will be utilized and the preserved fodder will be packed in bales of varying sizes from 50kg to 1000kg. These bales will be suitable for transportation by the existing road infrastructure and vehicle types already present in Pakistan. The base at Sarja-Marja will be used as main centre where ensiling demonstrations and marketing of modern equipment sourced in Europe that is suitable for farm use in Pakistan.

The ensiling of other suitable fodders such as Sorghum Burseem and Sugarcane will also be added to the range of fodder products that can be marketed. A mixing facility built on site could prepare TMR that could be packed in bales suitable for transportation to individual farmers and government projects.

 

 

THE PROPSAL.

 

A separate Division of BBCFP should be formed Silage Sales Division

The aim of SSD is to produce and transport to potential customers throughout Pakistan baled maize and other potential fodder silages.

i.              An equal partnership will be formed between BBCFP and Public Private Partnership & or Venture Capital Investor

ii.             BBCFP will provide the Expertise and Infrastructure to produce the product and Joint Partner will provide the finance required to purchase the modern machinery needed to process the crops from field to a baled product.

iii.            Alternative standing crop will be purchased by SSD and processed at the facility at Sarja-Marja or on site at place of purchase.

iv.            BBCFP staff time and any standing crop at the Sarja-Marja facility cost will be included as a cost into the accounts.

v.             The capital investment by either Partner of the specialised equipment will be recovered over a 2 year period and any resulting annual profits will be split 50/50. Including any machinery sales profits resulting from marketing activities at Sarja-Marja and purchased from SSD company funds.

OTHER POTENTIAL VENTURES.

The concept of a Franchising arrangement of an APPROVED BBCFP Silage Contractor will be investigated. The sale of machinery and advice on methods of ensiling could be sold as a package to potential contractors of a selected area. With the added advantage for them being able to display the BBCFP logo and include other BBCFP products at their agency.

FINANCES REQUIRED.

An initial capital investment requirement of 80 Million Rupees to purchase the machinery needed. Plus a further availability 70 Million Capital Investment would be needed for the first 18 months planting and contracted crop purchase. A detailed Financial Plan is readily available on request.

A detailed Financial Plan and machinery is ready and can be provided on request.

We can be contacted via e-mail: info@Respond to this opportunity.