Investment strategy for crop logistics, drying and storage in a maize farming catchment zone of 4000 hectares
Land cost (4 acres) - N1m
Store construction = N6.5m
(1000 Sq m storage facility)
Cost of storage N50 per bag per week
Total bags stored = 6,500 bags per month
Land cost (4 acres) - N1m
Store construction = N6.5m
(1000 Sq m storage facility)
Cost of storage N50 per bag per week
Total bags stored = 6,500 bags per month
6500 x 50 x 4 = 1.3m x 12 = 14.3m
Drying services (N1k per load)
4000 tons per annum at 500kg per load = 8000 x N1000 = N8m (40k bags)
Logistics services from farm to storage at N1k per ton(tractor for logistics costs N6m)
4000 tons at 4 tonnes per load = 4 x 1000 x 1000 = 4m
Drying services (N1k per load)
4000 tons per annum at 500kg per load = 8000 x N1000 = N8m (40k bags)
Logistics services from farm to storage at N1k per ton(tractor for logistics costs N6m)
4000 tons at 4 tonnes per load = 4 x 1000 x 1000 = 4m
Therefore in one calendar year after customer acquisition
Total cost of establishment = N13.5m
Total annual revenue = N26.3m
Assume annual running cost (including insurance) of N10m
(this is all a back of the envelope calculation, but it's worth a shot in my opinion)
Total cost of establishment = N13.5m
Total annual revenue = N26.3m
Assume annual running cost (including insurance) of N10m
(this is all a back of the envelope calculation, but it's worth a shot in my opinion)
I forgot to include the cost of 10 dryers + maize sellers at N400k each = N4m
Making total cost of establishment
N17.5m
All other figures remain valid!
Making total cost of establishment
N17.5m
All other figures remain valid!
Shellers***
