Business Plan Template Prepared on Dairy Cows



Kennan dairy cow farm business will be operated to supply dairy cow products in the Jimma town and surrounding areas to meet demand of customers in the area. The main mission of the business is to satisfy the demand of customers in niche markets and other spatial markets, creating permanent customer in order to assure sustainability of the business and being committed to sacrifice time and effort to make our target customers happy on our products there by meeting quality standards. The major objectives  from the business point of view is to  supply the quality dairy products to customers to  generate income from business in order  to increase profitability and competitiveness of the business by providing customer oriented dairy products. The major dairy products that the business is going to supply may include liquid milk, cheese, butter, calves and dairy by products.  The business will be opened with startup capital of 3417961.49 ETB. From this total capital, about 56% is acquired from the commercial bank of Ethiopia in the form of loan at the 5% interest rate and the remaining 44% will be derived from owners of the business. A contingency of 10% of initial capital will be retained as account capital for the periods in which the business faces a harsh condition. The business will increase production by stressing on milk production, manure handling, grass forage, corn silage and young stock as production strategies. The estimated amount of the product which will be supplied to Jimma town and surrounding community is 60% of total product of the business such as fresh milk, butter and cheese while the remaining 40% of the products like butter, cream and cheese will be supplied to the spatial markets such as Addis Ababa, Agaro and Bedele. The business will be promoted through Medias such as television, fana radio; electronic mobile and etc. sales promotion will also be used to capture attention of the customers. Postcards, business cards and tapela will also be used for promotion by showing the address where the business is operating. As it was explained here above, 30 cows (jersey breed) each costing 15,000 ETB will be purchased and at the beginning year 20 cows (jersey breed) will give milk and milk products. In the first year operation, there is negative profit (1006349ETB) for the businesses because of a large portion of costs have been incurred for fixed and intermediate assets. For the three consecutive years, the business will obtain a positive profit of 660747 ETB, 806445.315 ETB and 969210.575 EBT, respectively. In four year operation, the business will obtain a profit of 41.84% of the startup capital of the business.

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