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Participant
 
 
Business established: 

Broiler Feedmill in Sulawesi

Improve feed quality for Sulawesian broiler

Having a good quality raw material is very important in order to make a good quality broiler feed.
Of our final product, the broiler feed, 60% consists of maize (also called corn). In order to safe cost, it is important to get maize from surroundings and we have to be able to handle the moisture of maize to have it safety in storage.

Facts

Year of establishment

2003

Sales (US$)
Two years ago:
Last year:
This year (forecast): 400,000
Year 2 (forecast): 400,000
Year 3 (forecast): 400,000
Net profit after tax (US$)
Two years ago:
Last year:
This year (forecast): 150,000
Year 2 (forecast): 150,000
Year 3 (forecast): 150,000
Total number of Employees
Two years ago:
Last year:
This year (forecast): 45
Year 2 (forecast): 60
Year 3 (forecast): 70

Finance needed

Finance needed for fixed assets (buying of machines, buildings, ...) 600,000
Finance needed for working capital (salaries, stock, rental, leasing, transport, ...) 10,000
Total finance needed (US$) 610,000

How do you expect this to be financed?

Own Contribution in cash 20,000
Loans (debt) 15,000
Shares in your company that you offer to investors (equity)
Other sources 5,000
Total finance needed (US$) 40,000

The Business

What is your product/service?

We are specialized in making good quality feed for big companies who don't have their own feed mill in Sulawesi. One of our advantages is that we could have our maize which we use 60% of our feed composition from surroundings. It means we can produce very competitive price feed. Although it is necessary to have a maize dryer in our area in order to process the maize so that we can storage the maize safely. If the maize contains too much moisture, the quality of the feed is below standards and not suitable for proper feeding of birds and other animals. Bad feed results in bad growth of the chickens and too low yield of meat production; it appears to be too costly in the whole growth cycle up to the slaughtering at the end of the cycle. Additionally the presence of a maize drying unit will support and help the maize farmers a lot. Their harvesting will be much more efficient, offer them better prices, particularly since our country has a rainy period of even six months. Even outside the raining period the air humidity is high and gives problems.

Explain how you will sell your product/service (marketing strategy) and how you will reach your customers (distribution strategy)?

We are giving a good stock-handling service and produce good feed quality with relative low cost production. We manage and storage their raw materials and finish product with good care. We take advantage from our competitors by offering relatively cheaper maize for our partner.

What makes your business different/better than your competitors (competitive advantage)?

Our feed-mill is located near from the broiler farmers where we can deliver fresh feed to them.
Geographically seen this is a big part of our strength.

The Entrepreneur & Management

Describe the entrepreneur & management

In April 2003 we have started our feed-mill production. Through these years we have experienced in poultry and agro business for recent condition and future condition in Sulawesi.
Our skill in production of broiler feed is also increase by having a lot of trainings through these years.

Development

How does your business improve the local living standards (social and environmental)?

By having maize from surroundings as an important raw material will increase the strength of our company, not only in the sense of the strength of our company but also in the sense of offering a better quality broiler feed.

Needs