Biogreen Investments East Africa Ltd wants to esta...
Company Name: Biogreen Investments East Africa Ltd
Registration #: N/A
Organization Type: Limited Liability company
Address: Kayunga District, Uganda
Biogreen Investments East Africa Ltd wants to establish a milling plant that will produce fortified foods for both human, animal and poultry use in Uganda and neighboring countries. In establishing this plant, the company is already....
General - Brief description of project
Biogreen Investments East Africa Ltd wants to establish a milling plant that will produce fortified foods for both human, animal and poultry use in Uganda and neighboring countries. In establishing this plant, the company is already working with out grower farmers who produce large quantities of corn, sorghum and soya bean. The project currently works with 1,700 households spread over ten districts of Uganda. We envision growing this scheme to a 10,000 households strong by end of 2016.This project is designed to enable the company control the value chain as it implements the out grower scheme. Establishment of a milling plant will provide for value addition and therefore increase profitability on the part of participating out grower farmers and the company.
Like most of Africa, the economy of Uganda relies majorly on agriculture. Establishment of agri business, especially processing creates an enabling environment to the farmer, as agriculture produce generates more income when processed as opposed to selling as raw materials.
The company has been in operation three and half years since November 2011. It has sound financial systems.No Attachment
Legal status of the company
Biogreen Investments East Africa Ltd
Limited Liability company
Kayunga District, Uganda
The company is organized in such away that it has a 5 person Board of Directors which is the supreme management organ, below the board there is an Implementation team lead by a Senior Management Team composed of the Chief Executive Officer and three line managers.
Share holders of the company include: Tom Maate Wa’Bukombi 65 Stella Bulyaba 10 percent Businge Hilda 10 percent Mutoni Sandra 10 percent Wagabaza Benon 5 percent
Inputs for the milling plant will be supplied by out grower farmers who have been organized into district level farmer groups. In puts will be maize,soya bean and sorghum grains.
Processed products of the plant will be sold at the open market in Uganda, South Sudan and Rwanda. No need of an off taker as products are at a high demand at the open market
Other grain processors in Uganda and the Targeted market area are mainly traders who buy grains from any farmer, the competitive advantage of this project over others is that the company has over a period of three years built a strong network of out growers who own the project. Putting in place a processing facility will help to add value to their products therefore the mill will be looked at as their own and therefore all grains produced will automatically find their way to the plant.
Maganjo Grain Millers, Biyinzika Poultry breeders, Nile Breweries Uganda Breweries
In terms of processed products(Fortified Foods, Ordinary Flour, Animal and Poultry feeds). For fortified foods, the applicant will be the first known producer of such foods in Uganda therefore will initially take 100percent while for the other products 35percent.
All technical aspects of the project will be addressed by recruiting and placing skilled personnel to manage. The board of Directors will provide supervision to ensure sustainable running of the plant. An expert with proven skill and expertise will be sourced to ensure technical aspects are effectively addressed. Production will be done in consideration of minimum standards of production of food items in Uganda and skilled staff will be identified to ensure best quality outputs from the plant. Biogreen Finance and Administration Manager will guide recruited financial team on sound financial management and accounting tools already being used by the company while marketing will be done following a strategy to be developed at on set of the plant
Running out of raw material, this is already being addressed by ensuring strengthening and expansion of the out grower scheme. This activity will remain on going and therefore number of out growers will keep increasing as the project is executed. The other risk is products floating the market, in our design, we have targeted marketing products to several countries besides Uganda. Most of the competitors are only focusing on local market.
The business begins with Expanding and strengthening of the out grower scheme to increase number of farmers involved and to empower those farmers with modern farming skills so as to transform them from substance to commercial farmers, this achieved we go to value addition so as we add value to the agricultural output by processing all into finished product. The of course the cycle ends with marketing. A strong marketing strategy will be developed to guide marketing activities
We have two seasons in the year that will provide grains for milling March to May and November to February. These are the pick seasons that provide grains. Grains procured during the seasons sustain the plant till the next harvest season.
This is not applicable to this project as land, once leased becomes private property for49 years renewable to 90 years upon expiry.. For water, this is supplied by the National Water and Sewage Cooperation and users pays a utility fee. The same will be done for the project
Insurance policies to be covered include: Farm/crop insurance, Plant Insurane, third party insurance for staff, goods in transist insurance and any other that may apply.
Economic - Please outline
Local & export
Future competition is foreseen but this will be counteracted by quality improvement by the project
VAT Tax exemption of agricultural machinery
High demand for fortified food in Uganda and the region, Maize and sorghum being major food crops in the region Quality and quantity of the product -Demand of the product by the consumers -Price of the product vs capital of the consumer -Absence of serious competitors in the market
-Cheap cost of production -Government subsides/taxi holidays on the equipment or tools that are involved in production -low taxes charged on the final product -Use of locally available materials that are produced with the plant premises
Tax - Kindly state the applicable
Out-grower scheme if applicable - Please provide
Biogreen investments East Africa ltd is a commercial farmers company based on the agribusiness process modeling design to achieve particular business activities that will enhance and implore house hold cost of living, deliver better values for households, maximize earns The company is registered in Uganda under the companies act. It is operational in Kayunga district, 70 km east of Kampala capital city of Uganda Bio green investments east Africa ltd is to do value addition to an out grower scheme currently at 1700 households planned to be 10,000 by end of 2016 . Establishing a milling plant will enable the companying take control of the value chain as it will determine the best price to offer farmers as it processes all their outputs into finished products and markets them on the open market in Uganda, South Sudan, Democratic Republic of Kenya, and Rwanda. This plant will use sweet sorghum grains as the main raw material for production of Fortified Foods, animal and poultry feed.
The company will distribute finished products mainly through its out grower network, super markets and external collaborators in countries listed.
-National Agricultural Research organization provides certified seeds to the company that are planted by out growers -Mahindra company supplies machinery
The milling plant will be located in an urban area which is accessible by tarmac roads with hydro electric power and network of clean water supplied by National Water and Sewage Cooperation
Raw materials will come from the out grower farmers with whom the company works
There are no restrictions.
Centrally located in Kayunga for easy accessibility.
The SWEET Sorghum Out grower Farmers scheme is quite large as compared to existing farmer schemes in Uganda. The scheme is growing to 10,000 households which is quite a sizable number not commonly found in the country.
Technical feasibility, manpower, raw material resources, and environment/ for new project
(project/service - Please provide/outline)
The planned plant will use sorghum, maize and soya bean which will be inter mixed to make fortified foods for humans, animals and poultry. The process entails mixing sorghum with soya on one part, soya with maize on the other part and maize soya and sorghum on one part. This mixture produces highly fortified foods some of which are used to fight malnutrition among children,HIV/AIDS and related nutritional disinfects among adults.
We need expertise.
ETC Agro Suppliers (Mahindra), Future Group Company Limited.
There is available man power, consistent power supply and tarmac road connecting the location of planned plant with the capital city and major towns in Uganda.
Social, Economic & Environmental Impact
Burning of sorghum stems y out growers, this will be addressed through continuous training and on farm support
Through training of local farmers on how to plant sorghum in order to improve on their skills
Through selling of sorghum seeds to farmers. Marketing of bob rain water tanks to different people.
? Through training of the local farmers ? Mobilization of farmers such that they get to know about the company’s existence ? Through adverts on radio programmes ? Though marketing of the plant to create people’s awareness
manual labor like dealing with farmers
The project will create savings after sale of its output in the market.
Investment requirements, project and infrastructure financing, and returns - Please provide
• Land • Computer and accessories • Furniture and fittings • Motor vehicles • Motor cycles • Equipments
• Land = 537, 000,000 ush. • Computer and accessories = • Furniture and fittings = • Motor vehicles = • Motor cycles = • Equipment =
• Not being used
Kayunga town council and Kampala city
Present banking relationships
Kampala central, a prime land/plot
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