kenka investment ltd

Business plan

BUSINESS PLAN FOR KENKA INVEST POTATO PLANTATION

BUSINESS PLAN

FOR

KENKA INVEST POTATO PLANTATION

Business plan


CONTENTS

EXECUTIVE SUMMARY ................................................................................................................................................ 3

BUSINESS IDEA ............................................................................................................................................................... 3

COMPANY PROFILE ...................................................................................................................................................... 3

PRIMARY CONTACT PERSON ................................................................................................................................... 4

CURRENT MARKETING SITUATION ...................................................................................................................... 4

Potato farming in Kenya ............................................................................................................................................. 4

(2) Need ............................................................................................................................................................................. 5

b. Current market consumption kenya: ................................................................................................................ 5

(3) Features ...................................................................................................................................................................... 6

SWOT ANALYSIS ............................................................................................................................................................ 7

KENKA INVESTMENT MARKETING STRATEGIES FOR POTATOES .......................................................... 8

PRODUCER PROFILE .................................................................................................................................................... 8

Services ............................................................................................................................................................................. 9

Keys to Success ............................................................................................................................................................. 9

Critical Issues ................................................................................................................................................................. 9

Management and organization ................................................................................................................................... 10

Strategies of doing business .................................................................................................................................... 10

The financials .................................................................................................................................................................. 11

Business plan


EXECUTIVE SUMMARY

Kenka investment ltd is one of the leading Agri- horticultural company in Kenya with more than

10 years service with our major plantation farm being in nyahururu

We have been doing potato planting in large scale with local investors and we are now

seeking collaboration with AFC bank to finance 80% of our operations

Kenka plantations is a highly profitable plantation & has huge land owners and investors

and with Previous industry experience provides kenka investment ltd with a competitive edge

over the competition. Profitability will be reached by month nine and revenue for year two will

be in excess of ksh 3,000,000.

BUSINESS IDEA

Plantation of potatoes in nyahururu- Kenya

With more than 1,500 hectare suitable for potato cultivation.. By considering about 30% of the

entire suitable area will reduce the total potential area at around 1,000 hectares. This area would

be put under potato cultivation, and by adopting an average plant density of 5000 per hectare a

production of potato in the region will be of 72,000 ton per year. [1]

COMPANY PROFILE

Company Description:

Name: Kenka investment ltd

Address: nyahururu

Contact Number: 0720845069

Web site: kenkainvestltd.kbo.co.ke

E-mail: [email protected]

mailto:[email protected]

Business plan


PRIMARY CONTACT PERSON

Goffrey karanja

Director

kenkainvest Ltd

P.O. Box 63406-00619, Nairobi, Kenya

Phone: +254720845069

Website: kenkainvestltd.kbo.co.ke

CURRENT MARKETING SITUATION

POTATO FARMING IN KENYA

The government of Kenya is spearheading efforts to upgrade the status of potato as a strategic

crop. The International Potato Center (known by its Spanish acronym CIP) is a key partner in

this endeavor, along with local government officials, the private sector, non-governmental

organizations, and international cooperation agencies. The underlying goal of this initiative is to

help achieve food security in this poverty-stricken nation, and improve the livelihood of its

people. The expected effect is to boost Kenya’s potato production threefold by 2012.

The potato is the second most important food crop in Kenya after maize. It is also an important

source of revenue, employing more than 2.5 million people in potato farming activities across the

entire production chain.

The new efforts address improved potato productions from multiple angles, ranging from public

policy to better seed production and increased resistance to potato disease.

CIP scientists along with other scientists, researchers, and administrators are focusing on

designing a proper potato policy for Kenya. Potato fields in this country have remained stagnant

over the past decade due to factors such as price hikes, climate change, and policy deficiencies as

well as farmers’ use of poor quality seed and improper post-harvest practices. In response, the

team is designing a potato seed master plan, led by CIP and GTZ, the German agency for the

international cooperation, which is to serve as the backbone of this overall initiative.

http://motorlineltd.kbo.co.ke/

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Addressing issues regarding seed quality and access, CIP led an effort to conduct an extensive

seed market survey that involved gathering information regarding seed demand and availability

from over 1300 growers from all the major potato-production districts in Kenya. CIP is also

working with both private and public sector partners to introduce a new technology that produces

substantially higher numbers of potato seed, or the mini-tubers from which new potatoes are

grown, and helps to ensure that they are disease free. The technology is know as aeroponics, and

involves growing the seed tubers in mid-air, with much higher multiplication rates than

conventional methods.

In close collaboration with the Kenya Agricultural Research Institute (KARI), CIP is also

working to test and release varieties of potatoes for smallholder farmers that are resistant to late

blight, the most serious disease threatening potatoes worldwide. Late blight, which led to the

famous Irish Potato famine, is caused by the fungus-like oomycete, Phytophthora infestans, and

spreads through spores transported in the wind or the use of infected tubers. The government of

Kenya has committed to supplying disease-free planting material to farmers along with

subsidizing farm inputs, organizing markets, and strengthening farmers association.

(2) NEED

B. CURRENT MARKET CONSUMPTION KENYA:

The 65% of the population of Kenya can be considered for the moment the market segment to

which the potato supply is addressed. The segment is not yet saturated; big chances of growth are

represented by and within this segment.

Potato consumer uses potato as basic commodity. In the potato cultivation businesses agree that

a substantial growth is possible

According to USAID reports, Kenyan potato imports can touch a record 2.16 million tons up by

5% in 2011-12. Kenya mainly imports low-priced potatoes from neighboring countries

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(3) FEATURES

A. FORMS:

Generally there are several potato forms:

Alpine Russet

German Butterball

Ranger Russet

B. USAGE

Potato usage forms:

potato chips

potato pan cakes

Boiled/steamed potatoes

sliced potatoes

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SWOT ANALYSIS

Strengths:

Suitable with Kenyan climate

with other crops as well

beneficial and useful

Opportunities:

nces

countries

international brand.

Weakness:

consumers/ customers)

ntry barriers

Threats:

Business plan


KENKA INVESTMENT MARKETING STRATEGIES FOR POTATOES

Growers: Professional full-time growers, mixed farm units, part-time farmers at the farm

Merchants/Wholesalers: Traditional purchasers of ‘bag’ potatoes for further distribution/sale

Packers : Purchase potatoes usually in bulk one tonne boxes to wash, brush and prepare pre-

pack lines (can also be producers in their own right)

Preparers (Peelers) :Purchase potatoes in bag or bulk for washing, peeling and cutting into

ready to use pieces. The main products types are usually prepared chilled and/or vacuum pack

potatoes. Products include peeled catering/retail pack whole or sliced/diced potatoes, potato

salads and deli items.

Processors :Purchase potatoes in bulk for use in further processing as stand alone

items(e.g.chips, crisps) or as a component of other value added foods (e.g. speciality potato

products, ready meals, etc). The various modification processes include freezing, drying,

blanching, cooking, etc.

PRODUCER PROFILE

The majority of Irish potato growers grow for the fresh ware market and a grower may grow any

combination of feed, early or main-crop potatoes.

However, there is a large number of smaller early potato producers who often sell more locally

in a more direct fashion i.e. off-farm sales, local greengrocers, roadside sales etc. Most of the

main producers supply ware potatoes for the processing sector at different stages throughout the

growing season as this market usually operates on a ‘free buy’ basis i.e. non-contract

arrangements.

Potato producers now sell their produce either directly to retailers or through pre-packers,

merchants/wholesalers, etc. Local market opportunities have diminished, particularly for those

supplying retail multiples.

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Services

Kenka investment potato farm will provide the following services

1) Growing potatoes

2) Packaging potatoes

3) selling potatoes

Keys to Success

The keys to success are:

• Reliability.

• Convenience.

• Custom service.

Critical Issues

Kenka invest potato farm is still in the speculative stages as a start-up organization. The critical

issues that it faces are: The need to take a conservative approach to expansion. Expansion must

not occur for the sake of growth in itself, but should occur because the customers will be better

served & market need

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MANAGEMENT AND ORGANIZATION

Our organization structure is designed in order to enable successful communication amongst all

departments. We distinguish following departments:

Proprietor/director – He is the major shareholders responsible for crucial decision and problem

solving activities. Her role is to represent company and supervise it..

Farm manager – His main duty will be to supervise the casual work force.

Accountant-He is responsible for keeping up to date records of all the sales ,inputs etc

Human Resources Department – Their duties concern interviewing and employing people,

organizing social events, organizing trainings and places where trainings will be held. They are

gathering information about employees’ effectiveness, fulfilling duties – general work

performance aspects. They are to be informed when employee will not be present at work

Casual workforce – their main duty will be to do all the manual work in the farm ie tilling,

driving farm machinery.

Security guards: Their main duty will be to make sure all the farm produce is secure in the farm

and the silos

STRATEGIES OF DOING BUSINESS

In the next few years:

we believe to be recognizable competitor on the market. Our goals would be to strengthen our

position on the market and still build professional and still friendly appearance.

After ten years:

We believe that our position would be stable enough to start promotion in foreign countries

whose companies are searching for business place. We will be searching for a partner companies

to develop and wider our offer. Dynamic growth in new fields after becoming a leader in the

segment.

Business plan


THE FINANCIALS

In January of 2012 we completed our Activity Value Analysis, a rigorous process to address

costs and lay the foundation for future growth, which resulted in stabilizing financials and gives

us opportunity to gather all savings for further investments. We also rolled out our revenue

management tools to the proprietor’s office, allowing us to improve forecasting so we can better

manage our mix and optimize rates. We initiated efforts to further enhance our sales force.

The Company financial goals under the Executive Plan consist income increase and stabilizing

after making recognizable profit, with each criteria accounting for half of the financial goal

portion of the annual bonus. As the Company generally sets target bonus award opportunities

above market median, the Company financial and strategic/operational goals to achieve such

award levels are considered challenging but achievable, representing a superior level of

performance. Consistence with maintaining these high standards and subject them by achieving

the satisfactory profit. However the risk analytics and other factors retains the ability to consider

whether an adjustment of the financial goals for any year is necessitated by exceptional

circumstances, e.g., an unanticipated and material downturn in the business cycle that triggers on

the Company’s performance relatively to the industry.

Business plan


Tables

Projected Income statement 2013-2014

march July Nov

A. Total revenue: 2,100,000 3,000,000 4,100,000

Sales of products and services 1,700,000 2,100,000 3,000,000

Sales of materials 153,000 300,000 800.000

Change in inventory 0 0 0

Extraordinary incomes 0 0 0

Other revenues 247000 600000 300000

B. Total costs: 750,000 800,000 1,000,000

Depreciation 10000 10000 10000

Materials and energy 10000 10000 10000

Sales salaries 500000 500000 60000

Cost of services 30000 80000 80000

Financial expenses 0 0 0

Costs of goods for resale 0 0 0

Taxes 200000 200000 300000

Other costs 0 0 0

Extraordinary losses 0 0 0

C. Profit (loss) gross value: A-B 1,350,000 2,200,000 3,100,000

D. Income tax 0 0 0

E. Net income 0 0 0

Business plan
