FINAL BUSINESS PLAN

Executive Summary

Molakeng Farming and Projects PTY (Ltd) was established in 2008. The aim is to process dairy products.
The business is processing Pasteurized Fresh Milk,Maas,Yoghurt and will start processing Cheese,and
Milk Blended Juice. As part of the medium term plan,the business will also start bottling purified water.

Contact details are as follows,RP Molakeng(Thabo),Cell 084 777 5130 or tmolakeng@yahoo.com

Company Summary

The Company is registered under Companies and Intellectual Property Commission.The owner is the
sole member of Molakeng Farming and Projects PTY (Ltd). The Company started its Dairy Processing
activity in December 2012. The Company has been experiencing a positive response to the market and it
is on the growing trend.The Company is situated in the Eastern Free State,Qwaqwa.

Products and Services

The main products are Pasteurized Fresh Milk,Maas and Yoghurt.The business will soon start processing
cheese,milk blended juice and in the medium term will start bottling purified water.The business is
situated in a highly populated area and there is no Company doing Dairy Processing locally.The nearest
Dairy Processor is situated 72 kilometers away. There is no adequate choices in Dairy Products in the
Eastern Free State because there is only four Dairy Processors who supply the area and all four of them
are situated far apart.Dairy products are not easily accessible because retail shop owners have to travel
to the local Wholesaler to purchase products.This business will deliver directly to retailers.

Market Analysis Summary

There is growing number of in the chain supermarkets and small shops which are situated close to
communities.School Feeding Schemes management has been well coordinated and being managed
effectively as compared to the past five years. There is a population growth and this is supported by the
number of new housing development.It was announced by the Free State Premier that factories in
Qwaqwa will be re-opened. This was announced in his 2013 Provincial Budget Speech. There are many
dairy farms in the Eastern Free State,in particular around Qwaqwa and many of them do not have
supply market.The business owns a value chain because the owner runs a dairy farm where he is
harvesting raw milk. This value chain advantage will contribute towards sustaining the processing
business.As part of the expansion plan the business will outsource milk from neighboring farms.
Strategy and Marketing Plan Summary

The Company products are cheaper because they are processed locally,therefore transport costs is
minimal.The business enjoys local community support because its product label reads “Processed in
Qwaqwa” and it gives local customers a sense of ownership. The business will have to increase its
processing capacity in order to achieve economies of scale.

Products

Existing products in the market are Pasteurized Fresh Milk,Maas and Yoghurt.The following products will
be introduced to the market,Cheese,Milk Blended Juice, and bottled purified water.

Place

The business is situated where there are School Feeding Schemes,Chain Supermarkets and Small
Shops,Factories,Two Regional Hospitals,Free State University Branch and a new Juvenile Prison Facility.

Price

The business will cut the packaging costs by purchasing the label printing machine and increase the
output capacity in order to compete with quantities and not only with Price.

Promotion

The business is currently doing a door to door marketing.The services of a local radio station and local
newspaper will be used. Busines vehicles will also be branded. The business will have a website.

Management & Staffing Summary

The owner has a seventeen years of work experience in the area of Accounting and Administration.The
owner does his own Bookkeeping and dealing with compliance requirements.The owner has completed
the following education and trainings, Matric, BTech Corporate Administration,Foundation Leadership
Programme, Milk Hygiene Training, and Dairy Cow Feeding and Milk Harvesting Training.

The business currently employs three full time employees and fourteen more people will be employed
on a full time basis. A total of seventeen full time jobs will be created.

The following positions will be created;

(1)Director (1)Factory Manager (1)Capturing Clerk (4)Drivers (4)Drivers Assistants (6)Processors

Consistent milk input,consistent processing and product demand stimulation will keep all these jobs
sustained.

Financial Plan

The business owns a 6m*4m factory,30 liter pasteurizer,400 liter dip freezer,350 liter chest freezer and a
1tonne commercial van.The business has no financial asset in the form of cash.
Request for Financial and non-Financial Services

The business needs R 4 429 420.00

Break-down

 Multipurpose Plate Pasteurizer R 900 000.00

 Holding tube R 130 000.00
 5000 liters raw milk tank R 250 000.00
 Homogenizer R 534 000.00
 2x500 liters incubator milk tanks R 500 000.00
 Bottle Filler R 435 000.00
 Sachet filler R 200 000.00
 Chiller plant R 202 000.00
 Cheese vat R 40 000.00
 Air Compressor R 30 000.00
 Cold Room R 15 000.00
 Display Fridge R 15 000.00
 Air Conditioners R 13 000.00
 Label Printer R 16 000.00
 Installation/Factory lay out R 300 000.00
 4xCommercial Vehicles R 800 000.00
 2x500liter transport tank R 10 000.00
 Antibiotic test kit R 2 420.00
 Office Equipment R 37 000.00

Equipment and installation quotation was obtained from GUTH Company.Their contact details are as
follows; Mr Mike Stafford,Cell 082 568 9967 and the website address is www.guth.co.za

GUTH Company will do the following;Factory Layout,Staff Training and Maintenance of Equipment.

The business will need assistance with Marketing.