BUSINESS PLAN PREPARED IN RESPECT OF A CAPITAL RAISE FOR COUNTRY TASTE FARMS (PVT) LTD

Date of Issue: 1 August 2010

EXECUTIVE SUMMARY Country Taste Holdings was established to produce agricultural products plus agricultural services to various service industries and consumers throughout the country. Country Taste Holdings was founded by Elisha Mpofu and Nyasha Moyo after acquiring two farms in Mvuma and Mazowe in 2010. The shareholders aim to control the privately held institution and to build one of Zimbabwes paramount producers, processors and marketers of fresh agricultural food products in the country. The company aims to be a fully integrated agric- producer that breeds and rears its own livestock which it feeds, processes, distributes and markets. Country Taste Holdings will operate in the local retail, wholesale and foodservice channels with strategically positioned brands. It will also produce a variety of dealer-own brands for a number of retailers and wholesalers in the future. Country Taste Holdings (CTH) will show a profit immediately, and will increase sales and profits each year thereafter. CTH will expand its production facilities and is well-positioned to market its workroom production beyond its present standing. CTHs headquarters will be located in the Harare CBD, Zimbabwe. As Country Taste Holdings is a start-up, this business plan outlines the operations and capital requirements of opening and running the business, starting with 2 farms. These will be used as a proxy for all other farms and businesses to be acquired as the company grows. Company Objectives Our objectives are guided by the growth plans formulated for the business in the coming two years:

1. Creating and maintaining a 90% customer base by consistent customer 2. 3. 4.

service. Expanding our customer base through direct referrals and aggressive direct sales. Expanding our product lines and business gradually, based on customer requests. Build a brand that lasts in the consumers minds in addition to being competitive on the African and global market.

Company Mission We are dedicated to providing our customers with the best premium products and services on the market. Our mission is to offer all of our customers the direct personal attention each client deserves. Our commitment to customer service and satisfaction assures us that our customers are 100% satisfied with our products and services. Funds required Country Taste Holdings is seeking to raise (Fifty thousand United States Dollars). The money is required to fully equip and operate 2 of its livestock farms). COUNTRY TASTE HOLDINGS Business Model

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Country Taste Holdings (Pvt) Limited, the holding company of the group, was incorporated in the Republic of Zimbabwe in 2010. Country Taste Holdings (Pvt) Limited is the holding company of four (4) principal operating subsidiaries being:

Country Taste Farms Country Taste Foods Country Taste FreshStop (fruit & vegetables). M&M Cold Logistics

These subsidiaries will enable the group to operate as a vertically integrated food producer. Country Taste Holdings aims to be one of the largest agricultural producers in Zimbabwe by year 2015, employing over 2,000 people in its agricultural, feed milling, processing facilities, fast food outlets and transport facilities. GROUP ORGANISATION STRUCTURE
COUNTRY TASTE HOLDINGS (PVT) LTD

COUNTRY TASTE FARMS

COUNTRY TASTE FOODS

COUNTRY TASTE FRESH STORES

FRESHWAY LOGISTICS

GROUP SUBSIDIARIES

Country Taste Farms (CTF): is a subsidiary of CTH which will specialise on animal farming consisting of piggery. CTF is currently the custodian of the Agric-cluster project on behalf of the shareholders. Country Taste Foods (CTFoods): this division focuses on producing food products for different target markets. CTFoods will develop special product packaging to supply in-store or on demand boosting the companys bottom line. Country Taste Fresh Stores (CT Fresh Stores): we will investigate the opportunities to open branded stores that will sell fresh agricultural products in different cities. CTFS will stock fresh products ranging from our own farm products of fresh pork to sourced vegetables. Freshway Logistics: a transport division which will transport our agricultural products to the customers. The division will also supply transport services to external clients on demand thus generating more revenue for the group.

COMPANY OWNERSHIP Country Taste Holdings is a privately-held corporation by young maverick entrepreneurs. Shareholding structure: Name Elisha Mpofu Nyasha Moyo % Shareholding 50 50 Voting Yes Yes
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Employee Share Scheme Company History

Country Taste Holdings (CTH) was founded in 2010 as a corporation registered in Zimbabwe, owned and operated by the shareholders and managed by a cluster management team. It is a holdings group which supplies various agricultural products to food industries including hospitality, retail and also homeowners. CTH directors recognized the need for more quality fresh agricultural products at competitive pricing. Eventually this idea generated the need for 360 degrees agricultural holdings group whose growth will boost the Zimbabwean food sector. The demand for the organisations products will greatly increase the success of the business. The entrepreneurial spirit of the shareholders and the skills of the management will allow the group to exploit the niche market that the Zimbabwean market presents.

COUNTRY TASTE FARMS (PROJECT DETAILS)

Project Description Country Taste Farms (CTF) is the core division of the group providing the company with raw materials and high revenue forecasts during the initial phases. The CTF project cluster involves the establishment of agricultural clusters including piggery farming on the Country Taste Farms. The farms will be transformed from small scale projects to commercial pig production within 1 year with forecasts projecting a high turnover rate within 2 years of the transformation. The project to transform the far will be undertaken in three (3) phases explained below. Phase 1 CTF plans to transform the available piece of land into a viable commercial pig production farm. The farms were currently being used for small scale crop farming projects and within the next 5 months this land will be used for development of piggery structures to house over 1500 pigs per cycle. Phase 2 The second phase will involve the establishment of housing structures for the agricclusters since there is an abundance of space on the farm. Country Taste Farms would like to adopt an incremental approach to farming to introduce the previously disadvantaged communities to commercial farming over a five-year period. Phases 3 The marketing and selling of the produce to different customers will be handled in a strategic and yet profitable way. We will develop a sound strategy to contact prospective clients but our key strategy is to supply different food retail operators. Project Model The business model was designed to address key environmental and business challenges that face the meat industry in Zimbabwe. The key pillars of Country Taste Farms project model are set as below: Procurement- Forward purchase of stock feed and tight inventory management to limit costs. Production- high quality products through zero deviation from production best practices, breeding, feeding, vaccination and sanitation.

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Marketing- selling quality products at the best prices through forward integration towards the retail and the export markets. Skills- highly skilled personnel and experienced workforce. Management of the piggery project CTF will initially hire suitably qualified personnel in the Agric-cluster manager to oversee the implementation of this business for limited contract period of 1 to 2 years which will be subject to extension on performance. Ownership will initially vests with the company through a corporate structure under Country Taste Holdings. Employees at the piggery project The company aims to recruit 15 people within 2 years from the previously disadvantaged communities of Mvuma and Mazowe areas. It is anticipated that two thirds of these people will be unemployed women with children. Technical support Technical expertise will be provided by the Agric-cluster management team and complemented by mentorship from the shareholders. Project cycle and activity duration ACTIVITY Stakeholder mobilisation and consultation Setting-up of facilities Member recruitment Orientation and basic training Order input materials and breeding stock First breeding cycle period Preparation and sales TIMEFRAME 2 weeks 4 1 1 2 weeks week week weeks

16 weeks 2 weeks

Production System Country Taste Farms has developed its business around the concept of focus and nucleus growth by operating from long leased properties thereby limiting the huge capital outlays that would otherwise be associated with buying the properties. Country Taste Farms is involved in two forms of production: Breading and rearing to the point of selling; and Buying weaners, fattening them and selling as baconers.

Products and services CTH will offer great products, while evaluating the desire and need by our customers for the following items. Live animals(mature and infants) Custom made food products Delivery service(Selective)

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Marketing of Products Four basic products will be marketed, depending on the market prices and demand:

Baconers (above 50kgs in dressed weight) Porkers (35-50kgs in dressed weight) Stores (25-35kg in dressed weight) Weaners (15-25kgs in dressed weight)

Marketing Strategy CTF will implement the following Marketing Strategies upon the business transfer in the following order:

1. Direct Marketing: we will personally market (sell face to face) our products to
various feed stores, stables, boarding facilities, farms, clubs and race tracks.

2. Customer Referral: we will provide customer incentives for direct referrals, in 3. 4.

the form of price discounts. Website Marketing: we will implement our web plan and review the outcome to determine the efficiency it has on our customer base. In-store Marketing- we will partner with various store owners to implement our in-store branding strategies for our food products.

Through marketing our products in these ways, we project that CTF's will almost double its business within the first 2 years of establishment. Market Segmentation CTF will focus on the following markets: Home owners Retail Industry

Target Market Segment Strategy Service Business Analysis CTF will be involved in the farming of livestock (pigs), supply of livestock products (fresh meat) and related products. CTF straddles various industries - manufacturers of food products, and retailers of meat. CTF's success in livestock farming will be the strong foundation for the success and continued growth of the company into a holistic food producer. There are many farm product raw materials businesses in Zimbabwe. The country is largely dependant on agriculture as a core source of foreign currency. Many individuals are involved in agriculture producing on either small holdings or on commercial farming. However few companies are producing livestock for commercial enterprises and for exporting. This reflects the fact that most of the livestock producers are very small operations; many of them are farmers who mix the
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livestock, and sell the extra to neighbors and homeowners. Our company will begin its operations on a big scale to fill the gap left by many years of Zimbabwes economic meltdown. By becoming a full-service food service producer, and developing a reputation for great service and high quality products, we will surpass the industry average for revenue. Our products are purchased by wholesale suppliers and re-sold to retail consumers. Our products is a huge competitor with other retail products. The raw goods and time to manufacture cost at least 80% less than similar agricultural products. With more focus on the overall quality of our products, the cost savings to our customers will become more of a word of mouth advertising from end user to end user. Direct referrals are always the best source of committed customer and sustained reliable growth. Our tasks are to encourage our customers to make referrals, to implement direct marketing to groups such as the retailers and the food industries. At this point, we are a great-kept secret, when comparing our customer base to the existing market research potential. Competition and Buying Patterns Within the agricultural farm supply industry, businesses compete on price, quality, customer service, and delivery. Customer service can include things like ability to produce a range of quantities, and custom-feed options. Customers must also trust the supplier for regular, reliable service and consistent quality. Solid customer relationships, a friendly atmosphere and being available to provide quality products at a good price all add to a successful bottom line. We strongly believe that by offering delivery services, we will gain a substantial number of new customers, both through the advantages of the new service, and with the new advertising strategies (signs on our truck). We will gain the recognition of new customers through our focused marketing plan (Highly Effective Marketing Plan). Sales Strategy CTH will be entering into direct sales to market their produce to the different customers. Starting in November and December, we will approach potential customers both via phone and with direct visits. After a successful direct sales strategy we will exploit good word of mouth marketing to improve our market base and to retain the existing clients. This will both lend credibility and pre-qualify potential customers as genuinely in need of our services, based on others' knowledge of them. We will inform all potential clients about our current products and services, and request feedback. Our direct sales team will clearly request for information on what we need to do to earn their business. Finally, we will create an individualized sales proposal with their specific needs (products, volumes, frequency, price, other services) included. We will present the proposal as a written agreement ready for signature by both parties to begin doing business. Details for each order will be entered into our customer database. We will then adjust our planned shipments of raw goods to include arrival of fresh product necessary for
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new orders, to be manufactured and delivered as agreed by the timeline. Deliveries will be automatically scheduled through our point of sale/delivery database. Each customer price grid, conditions and all specific comments will be clearly maintained for all to review and to guarantee complete customer satisfaction. Each order will be reviewed by the management prior to delivery to guarantee quality, accuracy and completeness. Terms for payment will be cash on delievery (COD) and an invoice for each shipment will be faxed or called to each customer the day prior to delivery to ensure payment is ready at the time of delivery. (This will all be part of the agreement terms.) Follow up calls will go to each customer within 24 hours of each delivery to ensure satisfaction. If for any reason there is an issue, it will be handled immediately by the management directly with the customer. As the business grows we will also focus on keeping the existing customers happy and successfully introducing our new products and services. We will always focus on our repeat customers. The loyalty and respect we get from those customers will all play a big role in growing the business and taking it to the next level. Implementation Summary

Emphasize customer service We will establish our business as a clear and viable alternative for our target market by offering unraveled customer service. Talent management: the management team of CTF believes that an employee who is happy at work will enjoy working. It is always easier to please customers with staff that cares, a facility that is clean and equipment that is kept in proper working order. CTH will also work toward establishing community involvement programs that will demonstrate how the business can contribute to a better quality of community life. Community project groups such as the funding of education, community initiatives, Schools, churches, and other groups will be welcomed for tours of the facilities and will be shown how the facility can be used to help raise funds for their needs. Build a relationship-oriented business Build long-term relationships with customers, not single-visit deals. Become their " dealer of choice." Focus on target markets We need to focus our offerings on specific population groups as the key market segment we should own. We definitely want to be able to sell to smart, quality conscious customers.

Competitive Edge Our competitive edge lies in our ability to do business differently. By utilizing innovative marketing tactics and creative brand strategies we can capture a huge clientele base. Country Taste Holdings main asset is the company brand. We will develop a brand identity that is unique and competitive. This will bring in more customers and will spread the word that we are developing a food brand that is ready
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to take on the giants. Through consistent brand messages and quality service delivery, we can offer our products to anyone willing to pay for it. On time deliveries to customers is also another one of our strong points. Country Taste will be running delivery trucks on a daily basis (once we implement delivery and obtain the necessary business). Most of our other competitors do not deliver or only deliver within a short distance from their location. We will serve our customers with a higher quality products, high level of professional service, and be willing to take it to their door. With the resources available, the energy we can contribute at our young age, the raw talent for business and deep understanding of customer service, the potential to grow this already exciting business is tremendous. COMPANY MANAGEMENT Management Structure The business units shall take a matrix structure where staff reports into a functional arrangement but are grouped together in division of the holding group. A project focus team will typically be headed up by a divisional manager and the support team. Hence we intend to have in place a highly flexible structure allowing for the above to be undertaken swiftly and smoothly. The following main functional groupings are to be recommended: Sales & Marketing Customer Service Technical and Logistics Finance

CTF Staff Organogram

GM

Farm Manager

Finance Officer

Farm workers

Duties and Roles General Manager

Farm Manager

Provide overall management of the ongoing business units, processes and systems Investor relations and strategic business management Marketing and income-generation strategies Regulatory and legal compliance and employ the senior managers. New business development Plan and implement business strategies to grow the existing client base. Plan and implement sales strategies to grow
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 Finance Officer

production output. Compliance to regulatory issues. Overall management of farm workers. Leads the operations team within the group Plans and implement the groups financial and sales strategies Provide ongoing support to the GM for the success of the group To provide strategic financial management of the farms. Provide ongoing supervision of the unit, processes and systems.

CTH.Talent CTH as a group is committed to people development and growth. We revere teamwork, dedication, innovation and we embrace the spirit of entrepreneurship. We value every employees contribution to the company as a whole, and believe that self-management and accountability are key elements to foster an efficient and productive workforce. We strive to empower our staff to be passionate in all that they do. We encourage our staff to influence the decision-making process and outcomes. FINANCIAL PLAN The initial start up capital will be financed through a bank loan from one of the countrys financial institutions. However, we want to finance growth mainly through cash flow and equity. We recognize that this means we will have to grow more slowly than we might like. The most important factor in our case is collection days. Therefore we need to develop a permanent system of receivables financing, using one of the established accounting systems. In turn we intend to ensure that our investors are compatible with our growth plan, management style, and vision. Compatibility in this regard means: 1. A fundamental respect for giving our customers value, and for maintaining a healthy and congenial workplace 2. Respect for realistic forecasts, conservative cash flow, and financial management 3. Cash flow as first priority, growth second, profits third 4. Willingness to follow the project objectives and contribute valuable input to strategy and implementation decisions. BUSINESS COST OVERVIEW Capital Costs

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BuildingCos ts Bricks *Fencing *Roofing Pit Sand River Sand Cement Door Frames Planks Locks Doors Concrete Stones Generator Water Pump *Pipes *Water Tank Other Tota BuildingCos l ts

US D Units US D 0.05 20,000.00 1,000.00 5.00 200.00 1,000.00 10.00 60.00 600.00 20.00 3.00 60.00 20.00 3.00 60.00 9.50 60.00 570.00 15.00 6.00 90.00 0.45 200.00 90.00 10.00 6.00 60.00 30.00 6.00 180.00 100.00 2.00 200.00 250.00 1.00 250.00 250.00 1.00 250.00 20.00 30.00 600.00 100.00 1.00 100.00 300.00 5 0.0 ,41 0

Projected Profit and Loss

Incom S tem nt e ta e Turnover Less Cost of Sales Gross Income Operating Expenses Ope ratingPr ofit Financing Costs Profit befor tax e Taxation Ne Profit t Gross Profit Margin Operating Profit Net Profit Margin Cost to Income Interest on loan

CYC 1 LE 111,600.00 (53,516.67) 58,083.33 (4,600.00) 53 3.3 ,48 3 53 3.3 ,48 3 (13,370.83) 40 2.5 ,11 0 52.05% 47.92% 35.94% 4.12% 20%

CYCL 2 E 135,000.00 (58,333.33) 76,666.67 (4,200.00) 7 6.6 2,46 7 (60,000.00) 1 6.6 2,46 7 (3,116.67) 9,35 0 0.0 56.79% 53.68% 6.93% 3.11%

CYCL 3 E 450,000.00 (140,000.00) 310,000.00 (9,400.00) 30 00 0,6 .00 30 00 0,6 .00 (75,150.00) 22 50 5,4 .00 68.89% 66.80% 50.10% 2.09%

Projected Cash flow

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Ca h Inflow s Turnover Loan Owners Capital T otal C hinflow as Ca h O s utflow s Loan Repayment Interest on Loan Building Costs Labour Costs Transport and Com munication Operational Costs T otal C h O as tflows N t C hF e as low

CYC 1 LE 111,600.00 50,000.00 5,000.00 1 ,60 0 66 0.0

CYC 2 LE 135,000.00

CYCL 3 E 450,000.00

1 ,00 0 35 0.0

45 00 0,0 .00

(50,000.00) (10,000.00) (5,410.00) (10,820.00) (21,640.00) (2,600.00) (3,200.00) (6,400.00) (2,000.00) (1,000.00) (3,000.00) (53,516.67) (58,333.33) (140,000.00) (63 6.6 ,52 7) (1 ,35 3) (17 40 ) 33 3.3 1,0 .00 1 ,07 3 03 3.3 1 6.6 ,64 7 27 60 8,9 .00

MOTIVATION FOR INVESTING IN ZIMBABWE The following table highlights Zimbabwes demographic indicators.

In the dawn of a new era, Zimbabwe is experiencing a shift in its social, political and economic environment; Political reform and rationalization is ongoing; Companies are slowly shifting from a survival mode into a normal state of operation; Capacity utilization is expected to increase from 31% in 2009 to circa 55% in 2010, and in the process, GDP is expected to grow by 11%, making it one of the fastest growing economies on the continent. Double digit growth is expected within 3 years; Price controls, shortages of foreign currency, unprecedented hyperinflation and skills flight have significantly reduced in the last six months. These were the greatest challenge faced by companies; Since the adoption of the multi-currency, inflation has been in the single digit range, and it is expected to remain so in 2010; The people of Zimbabwe are not only optimistic, but are working hard to continue the healing process and stabilizing the economy as a whole; As the economy improves, we should also see improvements in disposable incomes which will positively affect consumer spending.

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T o ta l p o p u la t (th o u s a n
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SWOT ANALYSIS Strengths Ready market. Guaranteed farming space. Strong cash flows. Threats Existence of established competitors. Religious beliefs which might limit consumption. Weakness New entry into the market Stiff competition from established companies. Opportunities Growth of the agricultural sector. Increase in disposable incomes. Products can be exported. Innovative brand strategies.

BUSINESS OUTLOOK Zimbabwe has emerged from a lost decade with the promise of political reform. The ZSE Industrial index closed the year 52% higher Year-on-Year whilst the mining index became the best performing index gaining 85.5% Year-on-Year. Given the target market at hand, Country Taste Holdings depends highly on the welfare of citizens and disposable incomes. GDP is expected to grow by 11% in 2010, and we expect this to positively impact all industries and subsequently, disposable incomes. Capacity utilisation improved significantly in 2009 and we expect this growth to gain further momentum in 2010. Therefore as the agricultural sector increases productivity and feeds into the manufacturing sector, we expect locally manufactured raw materials utilised by Country Taste Holdings to eventually fall in prices to levels below that of imports. Inflation has been contained and government has strongly reiterated that the ZWD will not be re-introduced in the foreseeable future. Indeed given such a stable operating environment, we expect Country Taste Holdings to stay strong despite the given competition and imminent challenges faced by a start-up. In the long run, we expect Country Taste Holdings to increase its production outputs to meet the increasing demand of the Zimbabwean and international markets.

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