Overview

Senegal market is very slow at present. With heavy stock and low sales, there is
fierce competition in the market. None of the importers are making profit.
Companies like LULU group and ETG are closing their business. Importers are
putting packaging units for duty benefits and better realisation.
With drop in international commodity prices, the market is expected to go down
further.
Only products selling now are rice and sugar which are under import quota
restrictions.
The duty for oil has gone up to 8,000,000 fcfa with customs being very strict on
oil imports. Hence, the prices of oil have shot to 14,900 FCFA.
The imports have slowed down in Senegal and hence the govt. department are
trying all means to cover the revenue deficit.

Liquidation progress:
1. Total Stock liquidated till 15th:
On Cash and 10 days credit: 2021 Bags

MILK
LAND
Two Cows
Maxymilk
Fonterra

1401
376
22
222

2. In Progress for August

Two Cows: 2000 sacs through Idrissa Niang
Fontera: 1000 sacs
Maximylk: 500 Sacs
3. Local Market:
a. Full Cream Milk Powder price; FONTERA: (45,000 FCFA to 48,000
FCFA)
b. Fat Filled 28/24 ; Multiple brands: Our product Two Cows: 40,000
FCFA to 44,000 FCFA.
c. Fat Filled 26/26; Not many brands as primarily for industrial use
(small scale and large scale yoghurt marking): Strong brand affinity
with Eldorado, Best Lait and Ireland Cooperative Board Milk Powder.
Our Product Maximylk. Price band too large and with very adjustable
payment conditions like 90-120 days credit at present. Eldorado
initiated scheme of 45000 per bag and 20 bags free on purchase of
every 100 bags.
d. Fat Filled 28/18; many brands but brand leader is Mixwell. Mixwell
not selling at present as it is selling for 48,000 per bag. Price

sensitive market and Monami brand from our supplier of Milkland is

selling for 35000 FCFA per bag.
4. International Market:
a. Full Cream Fontera is being offered for 1750 Euro PMT; September
shipment . Landing price will be near 39000 FCFA.
b. Olam is offering 1550 euro for Fat filled 28/24. Landing price to be
around 34,500 FCFA.
c. Two Cows being offered for 1650/1700 Euro.
5. Special initiative for Maximylk:
In discussions with a local yoghurt factory for 2 containers of Maximylk.
The company buys directly from Lactalis; our suppliers.
Already
introduced Anshul sir with the decision makers. The supply is for
September and on 60 days credit from date of delivery. Negotiating on
price as they have better offers available.

Debtors status

Following up with SINTRAC SUARL for payments. The client has

made a payment of 2,000,000 FCFA. He has got approval for
50,000,000 FCFA of credit line through which he intends to pay us
the remaining outstanding. We are waiting for the availability of the
cash which has yet not happened. Credit line approval verified by
Anshul sir during his visit.
Following up with Laity Sene for payment. He is in the process of
selling his property to pay us our debts.
Following up with Idrissa Niang for payment of remaining
50,000,000. Mr,. Niang had done all the required to make the funds
available but the bank asked for some additional documents. He is
in USA on his personal visit. Have already discussed the issue and
he is trying to resolve it at the earliest.

Cash flow:
Since we refused to work with our clearing agent, we lost the opportunity for
consistent cash flows. Based on the sales assumption, price assumption; we
expect to have 250,000 USD transferred in the month of August.
The sales realisation for august will happen in September and hence we expect
to transfer 400,000 USD in September.
Rest should be transferred by October.
The old debtors should be over the sales remittance to Dubai.

Fraud case development

Our statements registered with the two courts. Advocate going to Djourbel court
during this week to submit request for sales of the 1600 jerricanes seized in
Touba and put the money in Govt. Account till the verdict is given.

Met the Judge in Djourbel on a personal visit to him and tried to understand the
situation. He said that he will do his best to see that we have the result very fast.
He said that personally he feels that the verdict should be in our favour. The
issue is the time as the convict has a number of criminal cases pending against
him. The convict is still in prison.