Grant Proposal 2015 - Gedeh Agriculture Enterprise

Business Plan

FOR

GEDEH AGRICULTURE ENTERPRISE

GRAND GEDEH COUNTY, LIBERIA

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OWNER

ERIC KAWO GOWAH

GEDEH AGRICULTURE ENTERPRISE

558 NORTH REDWOOD ROAD APT 4-3

SALT LAKE CITY, UTAH 84116

CELL 801-347-2184

[email protected]

I. Table of Contents

i. Table of contents …………………………………………. 2

ii. General Company Description ……………………… 3

iii. Executive Summary ……………………………………… 4

iv. Business model and value proposition …………. 5

v. Management Capacity …………………………………. 6

vi. Operational plan …………………………………………. 7

vii. Financial Sustainability …………………………………. 8

viii. Results ………………………………………………………….. 12

ix. Leverage ……………………………………………………….. 13

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II. Company Description

Mission statement: Gedeh Agriculture Enterprise is a business that

wants to increase food security in Liberia.

Company Goal: Gedeh Agriculture Enterprise will be the number one

local rice producer in Liberia.

Company Objective: Gedeh Agriculture Enterprise will be profitable,

satisfy consumers and customers with its products, and create stable

employment for local workers.

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III. Executive Summary

Eric Kawo Gowah is the owner of Gedeh Agriculture Enterprise (GAE). He has an Associate Degree in

Business Management and Accounting from Stevens-Henager College in Salt Lake City, Utah; and he

desires to make GAE the number one local rice distributor in Grand Gedeh County, Liberia.

Producing local rice for domestic consumption will provide stable employment for rural Liberians. GAE

will satisfy its customers’ needs by delivering goods on time and by working with customers to improve

its services. GAE will use its international and local connections; its access to primary agricultural land;

and its business and farming experience to succeed in this venture.

GAE will profit by buying rough rice for processing, by milling rice for a fee, and by farming its own rice.

After the first harvest, GAE will plant cassava, cocoa, plantains and other crops to build a diversified

agricultural enterprise. After eight (8) months of operation, Gedeh Agriculture Enterprise will have a

positive net present value; and after one year of operations, GAE’s cash position and projected future

cash flows will be adequate for expansion.

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IV. Business Model and Value Proposition

Gedeh Agriculture Enterprise’s short-term plan is to produce and sell clean rice for consumption to

locals at market rates in a manner that is both economically wise and financially sustainable. GAE will

begin by building a warehouse; purchasing rough rice for

processing through GAE’s milling machine, which it will

purchase in the first month of operations; and clear its

own land for planting. In the first month of operations,

GAE will also purchase a generator to run the milling

machine, chainsaws for clearing land, and a vehicle to

transport purchased rice to its warehouse, which will be

located in Zwedru, Grand Gedeh County, Liberia.

While waiting for the GAE company farm to produce its

first rice harvest, which will begin four to five months

after planting, GAE will buy rough rice to be milled and

resold for a profit.

In Liberia, two people working together can mill a 50-kilogram bag of rice by hand in about six hours. By

contrast, a milling machine can process that same quantity in about fifteen minutes. A 50-kilogram bag

of unprocessed rice can be purchased at market rates for about $10 US Dollars (USD) and resold for

roughly 3,600 Liberian Dollars (LD) or $42.35 USD at current currency exchange rates, which are around

85 LD / 1 USD.

GAE will also profit by milling rice that it does not own for a fee of $6.00 USD per 50-kg bag.

In the first year of operations, GAE will farm sixty (60) acres of rice yielding 2.5 Metric Tonnes (MT) per

acre, for a total of 150 MT.

Gedeh Agriculture Enterprise’s long-term plan is to plant cocoa for exportation.

GAE will leverage international and local connections in Grand Gedeh County to hire and manage a

workforce of rural farm workers, who will put GAE’s agricultural land holdings to productive use. The

harvest cycle will keep workers engaged in revenue-generating activities throughout the year to

accomplish the profit objectives necessary to expand and develop the business in a sustainable way; the

harvest cycle will also provide stable employment. Providing stable employment for local workers is a

benefit to Liberia. In its first month of operations, GAE’s labor force will be seventeen (17) people: ten

(10) workers, two (2) cooks, three (3) managers, one (1) chainsaw operator, and one (1) driver. GAE will

also employ twenty (20) additional employees for three months per year during rice harvest.

Gedeh Agriculture Enterprise’s small business experience, local farming experience, exposure to

business practices outside of Liberia, ownership of prime agricultural land, and its network of contacts

both within and outside Liberia, constitute its primary competitive advantages.

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V. Management Capacity

Mr. Eric Kawo Gowah. I have my Associate Degree in Business Management and Accounting, from

Stevens-Henager College. I am currently serving as grant coordinator for the Liberian Community in Salt

Lake City, Utah. I am also serving as General Secretary for a non-profit organization called United Sixties

Born of Grand Gedeh County in the Americas.

The GAE management team consists of

me and two partners in Liberia. The

most important characteristic of this

team is the existence of a long-term

relationship filled with confidence and

trust among all the team members. I

have known my team and have worked

with each of them for more than

thirteen years. These relationships were

formed in the Ivory Coast and Ghana

during years of exile following the

recent civil unrest in Liberia.

I, Eric Kawo Gowah have been in the United States since May of 2006. I have thirteen years of farming

experience and currently own a small startup grocery business (two locations) in Grand Gedeh County. I

have completed my entire business plan with the exception of my head office in Monrovia. I will arrange

and carry out all financial transactions and oversee the entire operation in Liberia; Mr. Nyanway will

supervise in my absence in Liberia. He is also from Grand Gedeh County and he will manage all business

dealings and the construction project in Liberia. He has more than twenty-three years of farm

experience and he resides in Monrovia.

Mr. Targawo has more than 33 years of farming

experience and is currently the second in command,

managing the Grand Gedeh farming facility. He has the

skills necessary to supervise the local farm workers.

Mr. Nyanway and Mr. Targawo will outfit the

equipment and supplies, while establishing distribution

channels for GAE products (I.e. find markets and

buyers, and directly oversee transportation of all goods

to market).

I am currently working with Mr. Nyanway and Mr. Targawo: in 2013, we signed a contract with a social

organization based in the United States to construct a $58,000 USD community center in Zwedru. At

present, progress has been delayed because of the ebola outbreak in that region. In April of 2015, I will

return to Africa to resume construction.

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VI. Operational plan and Operational sustainability

Activities completed to date:

• Obtained Associate Degree in

Business Management and

Accounting.

• Built a small business office and

residence near the farm in Zwedru.

• Built two separate grocery stores.

• Purchased one hundred and fifty

(150) acres of prime agricultural

land in Grand Gedeh County,

Liberia.

• Built a head office in Monrovia,

which needs only a roof for

completion.

Traveled to Liberia to evaluate

information gathered by the people

of Monrovia and Grand Gedeh

about the need for rice mills. I am

satisfied to do business in Liberia.

Rice is the main staple food for the Liberian people, but they do not have enough machines to process

the rice. GAE’s machine will service about 15,000 local farmers from across Grand Gedeh County.

GAE management will go from town

to town to buy rough rice from the

people and take it to its m illing

machine to process the rice. GAE will

provide transportation of the finished

products to market. The rice will be

sold to the local market on a daily

basis. Some customers will bring their

own rice to the rice mill for

processing. At the same time, the GAE

farm will be producing its own rice, to

keep the mill operating every day.

The GAE management team is ready to go forward and work toward achieving success in this venture.

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VII. Financial Sustainability

Gedeh Agriculture Enterprise assumes the following about the milling machine:

MILLING ASSUMPTIONS Mean Min Max

Utilization of Milling Machine (Hrs Per Day) 4 3 8

Bags Milled Per Hour (Bags / hr) 4 3 5

Operating four (4) hours per day, the milling capacity is as follows:

Milling Capacity @ 4 Hours Per Day Bags Kilograms (kg) Metric Tonnes (MT) Acres

Per Hour 4 200 0.2 0.08

Per Day 16 800 0.8 0.32

Per Week 80 4000 4 1.6

Per Year 4,160 208,000 208 83.2

Per Month 347 17,350 17.4 6.9

GAE will allocate this capacity as follows:

CAPACITY ALLOCATION Mean Min Max

Mill Time Allocation - Rice Purchased for Reselling 80.0% 70.0% 90.0%

Mill Time Allocation - Rice Processed for Fee 20.0% 30.0% 10.0%

Under these assumptions, GAE will mill 278 bags per month to be resold for a profit of $32.35 USD, and

69 bags for a fee of $6.00 USD.

After seven (7) months of operations,

GAE’s company farm will begin to

produce rice, which can be sold for

$42.35 USD per bag. At a yield of 50

bags per acre, sixty (60) acres will

produce 3,000 bags.

Given these assumptions, the table at

right shows the projected revenue

schedule.

Months In

Operation

Rice Purchased

and Resold

Rice Processed

For a Fee

Rice Produced

and Sold

1 $8,993 $414 $0

2 $9,032 $416 $0

3 $9,071 $418 $0

4 $9,110 $420 $0

5 $9,149 $422 $0

6 $9,188 $424 $0

7 $9,227 $426 $0

8 $2,466 $118 $26,166

9 $2,477 $119 $26,274

10 $2,487 $119 $26,382

11 $2,498 $120 $26,490

12 $2,508 $120 $26,598

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Producing these results will require a one-time capital investment of approximately $30,000 and

ongoing expenses commensurate with output. GAE’s assumptions for the initial outlay are as follows:

Warehouse Estimates Assumptions Width Height Min Max Std Dev

Dimensions 40 ft x 40 ft 40 40

Total Square Feet 1600 ft^2

Dimensions of Cement Block 15 in x 7 in 15 7

Wall Height 10'

Number of Blocks for Height 18

Number of Blocks for Length 32

Number of Blocks Per Wall 576

Number of Exterior Walls 4

Blocks Required for Exterior Walls 2304

Interior Walls (Two @ 36" Each) 384

Total Blocks Required 2688

Margin of Error 10.0%

Total Blocks 2957

Cost Per Cement Block $1.05 1 1.25

Cement Blocks $3,104.85 Quantity Cost Total Cost Min Max Std Dev

Rebar 40 $8.00 $320.00 $7.00 $10.00

Quarter Rough 30 $5.00 $150.00 $4.00 $7.00

Tying Wire (In Rolls) 1 $10.00 $10.00 $9.00 $12.00

Cement Required (In Bags) 100 $8.50 $850.00 $8.00 $11.00

Sand Required (In Truck Loads) 5 $200.00 $1,000.00 $175.00 $250.00

Crushed Rocks (In Truck Loads) 2 $250.00 $500.00 $225.00 $300.00

Roof Estimates (Corrugated Aluminum) 15 $150.00 $2,250.00 $130.00 $180.00

Roofing Materials (Wood / Nails / Miscellaneous) 1 $2,000.00 $2,000.00 $1,800.00 $2,500.00

Labor Costs for Construction and Roofing 1 $3,000.00 $3,000.00 $2,500.00 $3,500.00

Warehouse Total $10,080.00

Equipment Quantity Cost Total Cost Min Max Std Dev

Rice Mill Machine 1 $4,000.00 $4,000.00 $3,800.00 $4,500.00

Generator 1 $2,000.00 $2,000.00 $1,800.00 $2,500.00

Equipment Total $6,000.00

Land Preparation Estimates Quantity Cost Total Cost Min Max Std Dev

Vehicle Purchase 1 $6,000.00 $6,000.00 $5,500.00 $8,000.00

Machetes 15 $5.00 $75.00 $4.00 $7.00

Chainsaws 2 $1,700.00 $3,400.00 $1,500.00 $2,000.00

Rubber Boots 15 $10.00 $150.00 $8.00 $13.00

Gloves 30 $2.00 $60.00 $1.80 $3.00

Spare Chain 2 $50.00 $100.00 $40.00 $75.00

Spare Blades 2 $25.00 $50.00 $20.00 $35.00

Safety Glasses 20 $3.00 $60.00 $2.50 $5.00

Empty Gasoline Drum 2 $25.00 $50.00 $20.00 $40.00

Empty Gallon Containers 10 $3.00 $30.00 $2.50 $5.00

Land Preparation Total $9,975.00

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Supplies Quantity Cost Total Cost Min Max Std Dev

Gasoline 50 $5.00 $250.00 $0.50

Oil 10 $15.00 $150.00 $1.50

Deisel Fuel 50 $5.50 $275.00 $0.55

Supplies Total $675.00

Kitchen Equipment Estimates Quantity Cost Total Cost Min Max Std Dev

Cups 20 $1.00 $20.00 $0.90 $2.00

Plates 20 $1.00 $20.00 $0.90 $2.00

Bowls 20 $1.00 $20.00 $0.90 $2.00

Pots 4 $10.00 $40.00 $9.00 $12.00

Pans 4 $10.00 $40.00 $9.00 $12.00

Buckets 4 $10.00 $40.00 $9.00 $12.00

Spoons 30 $1.00 $30.00 $0.90 $2.00

Forks 30 $1.00 $30.00 $0.90 $2.00

Knives 5 $1.00 $5.00 $0.90 $2.00

Kitchen Equipment Total $245.00

INITIAL OUTLAY TOTAL $30,079.85

Gedeh Agriculture Enterprise projects ongoing expenses according to the following assumptions:

ONGOING EXPENSES ESTIMATES Quantity Min Max Std Dev

Gasoline Consumption Per Chainsaw Per Day (In Gallons) 2 1.8 2.5

Oil Consumption Per Chainsaw Per Day (In Gallons) 1 0.8 1.3

Milling Machine Utilization (Hrs Per Day) 4

Generator Idle time Per Day 0.5 0.2 0.7

Generator Utilization (Hrs per Day) 4.5

Generator Gasoline Consumption Per Hour 2 1.8 2.5

Vehicle Miles Per Gallon 15.0 1.5

Consumption Rate for Vehicle (In Gallons Per Trip) 3.96

Vehicle Trips Per Week 3

Miscellaneous Consumption (In Gallons Per Month) 9.00 8 10

Annual Vehicle Repairs Estimate $500.00 $300.00 $1,000.00

Vehicle Oil Change (Quarterly) $50.00 $40.00 $60.00

At inception, GAE’s labor costs are projected to be the following:

LABOR ASSUMPTIONS (At Inception) People Daily Wages Min Max Std Dev

Workers 10 $5.00 $5.00 $5.00

Cooks 2 $2.50 $2.50 $4.00

Managers 3 $10.00 $10.00 $15.00

Harvest Labor (Seasonal) 20 $3.00 $2.50 $5.00

People

Monthly

Wages Min Max Std Dev

Chainsaw Operator (Seasonal) 1 $165.00 $150.00 $180.00

Driver 1 $140.00 $125.00 $155.00

LABOR EXPENSES TABLE (At Inception) People Daily Weekly Monthly Annually

Workers 10 $50.00 $250.00 $1,083.33 $13,000.00

Cooks 2 $5.00 $25.00 $108.33 $1,300.00

Managers 3 $30.00 $150.00 $650.00 $7,800.00

Harvest Labor (Seasonal)* 20 $60.00 $300.00 $1,300.00 $3,900.00

Chainsaw Operator (Seasonal)* 1 $7.62 $38.08 $165.00 $495.00

Driver 1 $6.47 $32.31 $140.00 $1,680.00

* Required 3 Months Per Year

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GAE also assumes a wage increase of six (6) percent per year as follows:

Annual Nominal Wage Increase 11.00% Inflation Rate 5.00%

Annual Real Wage Increase 6.00%

DAILY WAGES BY YEAR 2015 2016 2017 2018 2019 2020

Worker $5.00 $5.55 $6.16 $6.84 $7.59 $8.42

Cook $2.50 $2.78 $3.09 $3.43 $3.81 $4.23

Manager $10.00 $11.10 $12.32 $13.68 $15.18 $16.85

Harvest Labor $3.00 $3.33 $3.70 $4.11 $4.56 $5.06

Chainsaw Operator $7.62 $8.46 $9.39 $10.42 $11.57 $12.84

Driver $6.47 $7.18 $7.97 $8.85 $9.82 $10.90

Gedeh Agriculture Enterprise will also provide two meals per day to its

employees. The assumptions for meal expenses are shown in the table at

right.

GAE’s cost assumptions for its first year of operations are detailed in the

table below.

Months In

Operation

Labor

Expense

Meal

Expense

Chainsaw

Expense

Generator

Expense

Vehicle

Expense

Total

Expenses

1 $2,146.95 $1,650.00 $550.00 $1,089.00 $360.75 $35,876.55

2 $2,146.95 $1,650.00 $552.20 $1,092.96 $362.20 $5,804.31

3 $1,981.85 $1,650.00 $0.00 $1,096.92 $363.65 $5,092.42

4 $2,146.95 $1,650.00 $556.60 $1,100.88 $365.11 $5,819.54

5 $1,981.85 $1,650.00 $0.00 $1,104.84 $366.57 $5,103.26

6 $1,981.85 $1,650.00 $0.00 $1,108.80 $368.03 $5,108.68

7 $3,281.85 $3,850.00 $0.00 $1,112.76 $369.49 $8,614.10

8 $1,981.85 $1,650.00 $0.00 $2,109.36 $370.95 $6,112.16

9 $3,281.85 $3,850.00 $0.00 $2,116.84 $372.41 $9,621.10

10 $1,981.85 $1,650.00 $0.00 $2,124.32 $373.87 $6,130.04

11 $3,281.85 $3,850.00 $0.00 $2,131.80 $375.33 $9,638.98

12 $1,981.85 $1,650.00 $0.00 $2,139.28 $376.79 $6,147.92

Gedeh Agriculture Enterprise will have a positive net present value after eight (8) months of operation.

And, after one year of operations, GAE’s cash position and projected future cash flows will be adequate

for expansion. The table below shows the projected results from its first year in operation.

Months In

Operation

Total

Revenues

Total

Expenses Net Income

Net Present

Value (NPV)

Cumulative

NPV

1 $9,466 $35,876.55 -$26,410.87 ($25,766.70) ($25,766.70)

2 $9,507 $5,804.31 $3,702.36 $3,523.96 ($22,242.74)

3 $9,548 $5,092.42 $4,455.24 $4,137.13 ($18,105.61)

4 $9,589 $5,819.54 $3,769.11 $3,414.63 ($14,690.99)

5 $9,630 $5,103.26 $4,526.38 $4,000.66 ($10,690.33)

6 $9,671 $5,108.68 $4,561.95 $3,933.75 ($6,756.57)

7 $9,712 $8,614.10 $1,097.52 $923.30 ($5,833.27)

8 $28,892 $6,112.16 $22,779.79 $18,696.43 $12,863.16

9 $29,011 $9,621.10 $19,389.78 $15,525.95 $28,389.11

10 $29,130 $6,130.04 $22,999.77 $17,967.38 $46,356.49

11 $29,249 $9,638.98 $19,609.76 $14,945.48 $61,301.97

12 $29,368 $6,147.92 $23,219.75 $17,265.18 $78,567.15

Year Cost Per Meal

2015 $1.25

2016 $1.35

2017 $1.45

2018 $1.55

2019 $1.65

2020 $1.75

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VIII. Results

Gedeh Agricultural & Enterprise will accomplish

several important objectives and provide

significant value during the term of the grant and

in subsequent years. During the years of grant

oversight, GAE will provide employment for 15

to 20 rural workers, contribute approximately

150 MT of rice to Liberia’s domestic foodstuffs

markets, and add approximately $109K USD to

the Liberian economy through expenditures

(wages, construction, and purchases of

agricultural equipment).

In subsequent years, the development of sustainable cocoa production capacity will add to the recovery

of that important sector of the economy of Liberia, and will provide a needed infusion of currency (via

export sales revenues) from outside the country.

By the end of year five, GAE will have expanded the size of its farm and produce diverse crops, including

100 acres of cocoa. GAE expects this expansion to contribute approximately 5,600 MT of cassava and

16,000 MT of plantains, and expects to provide employment for about 100 rural Liberians.

An additional result of this project will be the growth of local business capacity: GAE management and

those it works with will gain valuable business experience and be in a position to expand business

activities into other sectors, further stimulating the economy and improving Liberia’s general welfare.

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IX. Leverage

Gedeh Agriculture Enterprise will use the grant to put its existing, primary non-financial assets to

productive use. GAE’s physical assets include 150 acres of prime agricultural land holdings in (Gorbo

Wrogba Town near Zwedru City), Grand Gedeh County, Liberia, and business-related real estate in

Grand Gedeh County and in the suburbs of Monrovia (Gbengbor Town & Paynesville). GAE will leverage

its local connections to labor and product markets in Grand Gedeh County to hire and manage a suitable

workforce, leverage its connections to product markets in Grand Gedeh and Monrovia to secure good

prices for our products, and leverage the farming expertise and management experience of its project

team—the networking of business contacts and local presence and influence—to navigate the process

of making operations a success. GAE will also make good use of its business contacts outside Liberia in

the United States, Ivory Coast, and Ghana to gather information regarding export markets, prices, and

opportunities.

GAE PRODUCTION SCHEDULE (In Bags Produced)

Months In

Operation

Rice

Purchased

and Resold

Rice

Processed

For a Fee

Rice

Produced

and Sold

Cassava

Yield (In

Bags)

Plantain

Harvest (In

Bags)

1 278 69 - - -

2 278 69 - - -

3 278 69 - - -

4 278 69 - - -

5 278 69 - - -

6 278 69 - - -

7 278 69 - - -

8 74 19 600 - -

9 74 19 600 - -

10 74 19 600 - -

11 74 19 600 - -

12 74 19 600 - -

13 278 69 - - -

14 278 69 - - -

15 278 69 - 1,500 -

16 278 69 - 3,000 -

17 278 69 - 4,500 -

18 278 69 - 6,000 -

19 278 69 - 7,500 -

20 74 19 600 7,500 -

21 74 19 600 6,000 -

22 74 19 600 4,500 -

23 74 19 600 3,000 -

24 74 19 600 1,500 -

25 278 69 - - -

26 278 69 - - -

27 278 69 - 1,500 -

28 278 69 - 3,000 -

29 278 69 - 4,500 2,000

30 278 69 - 6,000 2,000

31 278 69 - 7,500 5,000

32 154 39 500 7,500 3,000

33 154 39 500 6,000 6,000

34 154 39 500 4,500 6,000

35 154 39 500 3,000 6,000

36 154 39 500 1,500 6,000

GEDEH AGRICULTURE ENTERPRISE ASSUMPTIONS

GAE PRODUCTION SCHEDULE (In Bags Produced)

Months In

Operation

Rice

Purchased

and Resold

Rice

Processed

For a Fee

Rice

Produced

and Sold

Cassava

Yield (In

Bags)

Plantain

Harvest (In

Bags)

37 278 69 - - 6,000

38 278 69 - - 6,000

39 278 69 - 1,500 6,000

40 278 69 - 3,000 6,000

41 278 69 - 4,500 8,000

42 278 69 - 4,500 8,000

43 278 69 - 4,500 11,000

44 278 69 - 3,000 9,000

45 278 69 - 1,500 12,000

46 278 69 - - 12,000

47 278 69 - - 12,000

48 278 69 - - 12,000

49 278 69 - - 12,000

50 278 69 - - 12,000

51 278 69 - - 12,000

52 278 69 - - 12,000

53 278 69 - - 12,000

54 278 69 - - 12,000

55 278 69 - - 12,000

56 278 69 - - 12,000

57 278 69 - - 12,000

58 278 69 - - 12,000

59 278 69 - - 12,000

60 278 69 - - 12,000

61 278 69 - - 12,000

62 278 69 - - 12,000

63 278 69 - - 12,000


GAE EXPENSE SCHEDULE

Months In

Operation

Labor

Expense

Meal

Expense

Chaninsaw

Expense

Generator

Expense

Vehicle

Expense

Total

Expenses

1 2,147$ 1,650$ 550$ 1,089$ 361$ 35,877$

2 2,147$ 1,650$ 552$ 1,093$ 362$ 5,804$

3 1,982$ 1,650$ -$ 1,097$ 364$ 5,092$

4 2,147$ 1,650$ 557$ 1,101$ 365$ 5,820$

5 1,982$ 1,650$ -$ 1,105$ 367$ 5,103$

6 1,982$ 1,650$ -$ 1,109$ 368$ 5,109$

7 3,282$ 3,850$ -$ 1,113$ 369$ 8,614$

8 1,982$ 1,650$ -$ 2,109$ 371$ 6,112$

9 3,282$ 3,850$ -$ 2,117$ 372$ 9,621$

10 1,982$ 1,650$ -$ 2,124$ 374$ 6,130$

11 3,282$ 3,850$ -$ 2,132$ 375$ 9,639$

12 1,982$ 1,650$ -$ 2,139$ 377$ 6,148$

13 2,383$ 1,782$ 577$ 1,137$ 378$ 6,257$

14 2,383$ 1,782$ 579$ 1,140$ 380$ 6,265$

15 2,200$ 1,782$ -$ 1,144$ 381$ 5,508$

16 2,383$ 1,782$ 584$ 1,148$ 383$ 6,280$

17 2,200$ 1,782$ -$ 1,152$ 384$ 5,519$

18 2,200$ 1,782$ -$ 1,156$ 386$ 5,524$

19 3,643$ 4,158$ -$ 1,160$ 387$ 9,348$

20 2,200$ 1,782$ -$ 2,199$ 389$ 6,570$

21 4,846$ 5,346$ -$ 2,207$ 390$ 12,788$

22 3,403$ 2,970$ -$ 2,214$ 391$ 8,978$

23 4,846$ 5,346$ -$ 2,222$ 393$ 12,806$

24 3,403$ 2,970$ -$ 2,229$ 394$ 8,996$

25 3,980$ 3,190$ 606$ 1,184$ 396$ 9,356$

26 3,980$ 3,190$ 608$ 1,188$ 397$ 9,364$

27 3,777$ 3,190$ -$ 1,194$ 399$ 8,560$

28 3,980$ 3,190$ 613$ 1,200$ 400$ 9,384$

29 3,777$ 3,190$ -$ 1,206$ 402$ 8,574$

30 3,777$ 3,190$ -$ 1,212$ 403$ 8,582$

31 5,380$ 5,742$ -$ 1,218$ 405$ 12,745$

32 3,777$ 3,190$ -$ 2,311$ 406$ 9,684$

33 5,380$ 5,742$ -$ 2,323$ 408$ 13,852$

34 3,777$ 3,190$ -$ 2,334$ 409$ 9,710$

35 3,777$ 3,190$ -$ 1,241$ 411$ 8,619$

36 3,777$ 3,190$ -$ 1,247$ 412$ 8,626$


GAE EXPENSE SCHEDULE

Months In

Operation

Labor

Expense

Meal

Expense

Chaninsaw

Expense

Generator

Expense

Vehicle

Expense

Total

Expenses

37 4,194$ 3,410$ -$ 1,253$ 414$ 9,271$

38 4,194$ 3,410$ -$ 1,259$ 415$ 9,278$

39 4,194$ 3,410$ -$ 1,265$ 417$ 9,286$

40 4,194$ 3,410$ -$ 1,271$ 418$ 9,293$

41 4,194$ 3,410$ -$ 1,277$ 420$ 9,300$

42 4,194$ 3,410$ -$ 1,283$ 421$ 9,308$

43 4,194$ 3,410$ -$ 1,289$ 423$ 9,315$

44 4,194$ 3,410$ -$ 1,295$ 424$ 9,323$

45 4,194$ 3,410$ -$ 1,301$ 426$ 9,330$

46 4,194$ 3,410$ -$ 1,307$ 427$ 9,338$

47 4,194$ 3,410$ -$ 1,313$ 429$ 9,345$

48 4,194$ 3,410$ -$ 1,319$ 430$ 9,352$

49 4,654$ 3,630$ -$ 1,325$ 432$ 10,040$

50 4,654$ 3,630$ -$ 1,331$ 433$ 10,047$

51 4,654$ 3,630$ -$ 1,337$ 435$ 10,055$

52 4,654$ 3,630$ -$ 1,342$ 437$ 10,063$

53 4,654$ 3,630$ -$ 1,348$ 439$ 10,071$

54 4,654$ 3,630$ -$ 1,354$ 441$ 10,079$

55 4,654$ 3,630$ -$ 1,360$ 443$ 10,087$

56 4,654$ 3,630$ -$ 1,366$ 445$ 10,095$

57 4,654$ 3,630$ -$ 1,372$ 447$ 10,103$

58 4,654$ 3,630$ -$ 1,378$ 450$ 10,111$

59 4,654$ 3,630$ -$ 1,384$ 452$ 10,119$

60 4,654$ 3,630$ -$ 1,390$ 454$ 10,127$

61 5,163$ 3,850$ -$ 1,396$ 456$ 10,865$

62 5,163$ 3,850$ -$ 1,402$ 458$ 10,873$

63 5,163$ 3,850$ -$ 1,408$ 460$ 10,881$


FINANCIAL RESULTS BY MONTH

Months In

Operation Total Revenues Total Expenses Net Income

Net Present Value

(NPV) Cumulative NPV

1 $9,466 $35,877 ($26,411) ($25,767) ($25,767)

2 $9,507 $5,804 $3,702 $3,524 ($22,243)

3 $9,548 $5,092 $4,455 $4,137 ($18,106)

4 $9,589 $5,820 $3,769 $3,415 ($14,691)

5 $9,630 $5,103 $4,526 $4,001 ($10,690)

6 $9,671 $5,109 $4,562 $3,934 ($6,757)

7 $9,712 $8,614 $1,098 $923 ($5,833)

8 $28,892 $6,112 $22,780 $18,696 $12,863

9 $29,011 $9,621 $19,390 $15,526 $28,389

10 $29,130 $6,130 $23,000 $17,967 $46,356

11 $29,249 $9,639 $19,610 $14,945 $61,302

12 $29,368 $6,148 $23,220 $17,265 $78,567

13 $9,960 $6,257 $3,703 $2,687 $81,254

14 $10,004 $6,265 $3,739 $2,646 $83,900

15 $45,513 $5,508 $40,005 $27,622 $111,522

16 $81,022 $6,280 $74,742 $50,348 $161,870

17 $116,531 $5,519 $111,012 $72,957 $234,827

18 $152,040 $5,524 $146,516 $93,941 $328,768

19 $187,549 $9,348 $178,201 $111,469 $440,237

20 $207,699 $6,570 $201,129 $122,743 $562,981

21 $172,359 $12,788 $159,571 $95,007 $657,987

22 $137,019 $8,978 $128,041 $74,375 $732,362

23 $101,679 $12,806 $88,873 $50,364 $782,726

24 $66,339 $8,996 $57,343 $31,703 $814,429

25 $10,477 $9,356 $1,121 $605 $815,034

26 $10,521 $9,364 $1,157 $609 $815,643

27 $46,030 $8,560 $37,470 $19,237 $834,880

28 $81,539 $9,384 $72,155 $36,141 $871,021

29 $176,157 $8,574 $167,582 $81,891 $952,912

30 $211,665 $8,582 $203,084 $96,819 $1,049,731

31 $335,837 $12,745 $323,093 $150,275 $1,200,006

32 $296,178 $9,684 $286,494 $130,002 $1,330,009

33 $349,500 $13,852 $335,648 $148,592 $1,478,601

34 $314,159 $9,710 $304,449 $131,493 $1,610,094

35 $278,818 $8,619 $270,199 $113,854 $1,723,948

36 $243,477 $8,626 $234,851 $96,546 $1,820,494


FINANCIAL RESULTS BY MONTH

Months In

Operation Total Revenues Total Expenses Net Income

Net Present Value

(NPV) Cumulative NPV

37 $188,331 $9,271 $179,061 $71,815 $1,892,309

38 $188,378 $9,278 $179,100 $70,079 $1,962,388

39 $223,889 $9,286 $214,604 $81,923 $2,044,311

40 $259,401 $9,293 $250,108 $93,148 $2,137,459

41 $354,022 $9,300 $344,721 $125,253 $2,262,713

42 $354,068 $9,308 $344,760 $122,212 $2,384,925

43 $442,778 $9,315 $433,462 $149,908 $2,534,833

44 $348,250 $9,323 $338,928 $114,355 $2,649,189

45 $401,495 $9,330 $392,165 $129,091 $2,778,279

46 $366,076 $9,338 $356,738 $114,565 $2,892,844

47 $366,123 $9,345 $356,778 $111,783 $3,004,627

48 $366,169 $9,352 $356,817 $109,069 $3,113,696

49 $366,218 $10,040 $356,179 $106,218 $3,219,914

50 $366,268 $10,047 $356,220 $103,640 $3,323,553

51 $366,317 $10,055 $356,262 $101,124 $3,424,677

52 $366,366 $10,063 $356,304 $98,669 $3,523,346

53 $366,416 $10,071 $356,345 $96,273 $3,619,619

54 $366,465 $10,079 $356,386 $93,936 $3,713,555

55 $366,514 $10,087 $356,427 $91,656 $3,805,211

56 $366,564 $10,095 $356,469 $89,430 $3,894,641

57 $366,613 $10,103 $356,510 $87,259 $3,981,900

58 $366,662 $10,111 $356,551 $85,141 $4,067,041

59 $366,712 $10,119 $356,593 $83,074 $4,150,115

60 $366,764 $10,127 $356,637 $81,058 $4,231,172

61 $366,816 $10,865 $355,951 $78,929 $4,310,101

62 $366,868 $10,873 $355,995 $77,013 $4,387,114

63 $366,920 $10,881 $356,039 $75,144 $4,462,258


GENERAL ASSUMPTIONS

CONVERSION RATIOS USED

Kilograms (kg) Per Metric Tonne (MT) 1000

Kilograms (kg) Per Pound (lb) 2.20462

Rice Bag Size (kg) 50

Rice Bag Size (lbs) 110.23

Kilometers (km) Per Mile (mi) 0.621371

OTHER

Inflation Rate 0.05

Distance from Gorbowragba Town to Zwedru (km) 47.8

Distance from Gorbowragba Town to Zwedru (mi) 29.7

Work Days Per Week 5

Workdays Per Month 22

Weeks Per Year 52

Months Per Year 12


ASSUMPTIONS - RICE COSTS AND PRODUCTION

GENERAL ASSUMPTIONS Mean Min Max Std Dev

Exchange Rate - Liberian Dollars per USD 84.59 4

COST ASSUMPTIONS Mean Min Max Std Dev

Unprocessed Rice Per Bag (USD) 10.00$ 9.00$ 12.00$

Unprocessed Rice Per Bag (LD) 845.90

PRICE ASSUMPTIONS Mean Min Max Std Dev

Processed Rice Per Bag (LD) 3,600 3,500 3,700

Processed Rice Per Bag (USD) 42.56$

Fee Earned For Processing Rice - Per Bag (USD) 6.00$ 5.00$ 7.00$

RICE CULTIVATION ASSUMPTIONS Mean Min Max Std Dev

Yield Per Acre (Bags) 50 5

MILLING ASSUMPTIONS Mean Min Max Std Dev

Utilization of Milling Machine (Hrs Per Day) 4 3 8

Bags Milled Per Hour (Bags / hr) 4 3 5

Mill Time Allocation - Rice Purchased for Reselling 80.0% 70.0% 90.0%

Mill Time Allocation - Rice Processed for Fee 20.0% 30.0% 10.0%


INITIAL COST AND ONGOING EXPENSE ASSUMPTIONS

INITIAL OUTLAY ESTIMATES

Warehouse Estimates Assumptions Width Height Min Max Std Dev

Dimensions 40 ft x 40 ft 40 40

Total Square Feet 1600 ft^2

Dimensions of Cement Block 15 in x 7 in 15 7

Wall Height 10'

Number of Blocks for Height 18

Number of Blocks for Length 32

Number of Blocks Per Wall 576

Number of Exterior Walls 4

Blocks Required for Exterior Walls 2304

Interior Walls (Two @ 36" Each) 384

Total Blocks Required 2688

Margin of Error 10.0%

Total Blocks 2957

Cost Per Cement Block $1.05 1 1.25

Cement Blocks $3,104.85

Quantity Cost Total Cost Min Max Std Dev

Rebar 40 $8.00 $320.00 $7.00 $10.00

Quarter Rough 30 $5.00 $150.00 $4.00 $7.00

Tying Wire (In Rolls) 1 $10.00 $10.00 $9.00 $12.00

Cement Required (In Bags) 100 $8.50 $850.00 $8.00 $11.00

Sand Required (In Truck Loads) 5 $200.00 $1,000.00 $175.00 $250.00

Crushed Rocks (In Truck Loads) 2 $250.00 $500.00 $225.00 $300.00

Roof Estimates (Corrugated Aluminum) 15 $150.00 $2,250.00 $130.00 $180.00

Roofing Materials (Wood / Nails / Miscellaneous) 1 $2,000.00 $2,000.00 $1,800.00 $2,500.00

Labor Costs for Construction and Roofing 1 $3,000.00 $3,000.00 $2,500.00 $3,500.00

Warehouse Total $10,080.00

Equipment Quantity Cost Total Cost Min Max Std Dev

Rice Mill Machine 1 $4,000.00 $4,000.00 $3,800.00 $4,500.00

Generator 1 $2,000.00 $2,000.00 $1,800.00 $2,500.00

Equipment Total $6,000.00

Land Preparation Estimates Quantity Cost Total Cost Min Max Std Dev

Vehicle Purchase 1 $6,000.00 $6,000.00 $5,500.00 $8,000.00

Machetes 15 $5.00 $75.00 $4.00 $7.00

Chainsaws 2 $1,700.00 $3,400.00 $1,500.00 $2,000.00

Rubber Boots 15 $10.00 $150.00 $8.00 $13.00

Gloves 30 $2.00 $60.00 $1.80 $3.00

Spare Chain 2 $50.00 $100.00 $40.00 $75.00

Spare Blades 2 $25.00 $50.00 $20.00 $35.00

Safety Glasses 20 $3.00 $60.00 $2.50 $5.00

Empty Gasoline Drum 2 $25.00 $50.00 $20.00 $40.00

Empty Gallon Containers 10 $3.00 $30.00 $2.50 $5.00

Land Preparation Total $9,975.00


Supplies Quantity Cost Total Cost Min Max Std Dev

Gasoline 50 $5.00 $250.00 $0.50

Oil 10 $15.00 $150.00 $1.50

Deisel Fuel 50 $5.50 $275.00 $0.55

Supplies Total $675.00

Kitchen Equipment Estimates Quantity Cost Total Cost Min Max Std Dev

Cups 20 $1.00 $20.00 $0.90 $2.00

Plates 20 $1.00 $20.00 $0.90 $2.00

Bowls 20 $1.00 $20.00 $0.90 $2.00

Pots 4 $10.00 $40.00 $9.00 $12.00

Pans 4 $10.00 $40.00 $9.00 $12.00

Buckets 4 $10.00 $40.00 $9.00 $12.00

Spoons 30 $1.00 $30.00 $0.90 $2.00

Forks 30 $1.00 $30.00 $0.90 $2.00

Knives 5 $1.00 $5.00 $0.90 $2.00

Kitchen Equipment Total $245.00

INITIAL OUTLAY TOTAL $30,079.85

ONGOING EXPENSES ESTIMATES Quantity Min Max Std Dev

Gasoline Consumption Per Chainsaw Per Day (In Gallons) 2 1.8 2.5

Oil Consumption Per Chainsaw Per Day (In Gallons) 1 0.8 1.3

Milling Machine Utilization (Hrs Per Day) 4

Generator Idle time Per Day 0.5 0.2 0.7

Generator Utilization (Hrs per Day) 4.5

Generator Gasoline Consumption Per Hour 2 1.8 2.5

Vehicle Miles Per Gallon 15.0 1.5

Gallons Per Leg of Trip 1.98

Consumption Rate for Vehicle (In Gallons Per Trip) 3.96

Vehicle Trips Per Week 3

Miscellaneous Consumption (In Gallons Per Month) 9.00 8 10

Annual Vehicle Repairs Estimate $500.00 $300.00 $1,000.00

Vehicle Oil Change (Quarterly) $50.00 $40.00 $60.00


LABOR AND MEAL EXPENSE ASSUMPTIONS

LAND PREPARATION ASSUMPTIONS

Workers

Required

Days To

Clear One

Acre

Cutting Bush 2 2

Cutting Trees (By Hand) 2 3

Cutting Trees (By Chainsaw) 1 2

Drying 0 14

Burning 0 1

Number of Working Pairs 5

Land Cleared Per Pair Per Week (Acres) 1

Land Cleared Per Week (Acres) 5

Land Cleared Per Month (Acres) 20

LABOR ASSUMPTIONS (At Inception) People Daily Wages Min Max Std Dev

Workers 10 $5.00 $5.00 $5.00

Cooks 2 $2.50 $2.50 $4.00

Managers 3 $10.00 $10.00 $15.00

Harvest Labor (Seasonal) 20 $3.00 $2.50 $5.00

People Monthly Wages Min Max Std Dev

Chainsaw Operator (Seasonal) 1 $165.00 $150.00 $180.00

Driver 1 $140.00 $125.00 $155.00

Annual Nominal Wage Increase 11.00%

Inflation Rate 5.00%

Annual Real Wage Increase 6.00%

DAILY WAGES BY YEAR 2015 2016 2017 2018 2019 2020

Worker $5.00 $5.55 $6.16 $6.84 $7.59 $8.42

Cook $2.50 $2.78 $3.09 $3.43 $3.81 $4.23

Manager $10.00 $11.10 $12.32 $13.68 $15.18 $16.85

Harvest Labor $3.00 $3.33 $3.70 $4.11 $4.56 $5.06

Chainsaw Operator $7.62 $8.46 $9.39 $10.42 $11.57 $12.84

Driver $6.47 $7.18 $7.97 $8.85 $9.82 $10.90

MEAL ASSUMPTIONS (At Inception) Quantity Cost Min Max Std Dev

Meals Per Person Per Day 2 $1.25 $1.00 $2.00

Inflation Rate 5.00%

Year

Cost Per

Meal

2015 $1.25

2016 $1.35

2017 $1.45

2018 $1.55

2019 $1.65

2020 $1.75


CROP ASSUMPTIONS

Exchange Rate 84.59

Planted Together Planted Together

Crop Rice Cassava Cocoa Plantain Bitter Ball Pepper Okra

Bag Size (kg) 50 50 50 50 25 25 25

Market Rate Per Bag (LD) 3,600.0 2,000.0 8,459.00 2,500.0 3,000.0 4,000.0 2,500.0

Market Rate Per Kilogram (LD) 72.00 0.47 169.18 0.59 1.42 1.89 1.18

Market Rate Per Bag (USD) $ 42.56 $ 23.64 100.00 $ 29.55 $ 35.47 $ 47.29 $ 29.55

Market Rate Per Kilogram (USD) $ 0.85 $ 0.47 2.00 $ 0.59 $ 1.42 $ 1.89 $ 1.18

Growth Cycle (Years) 0.4 0.7 5 0.7 0.3 0.3 0.3

Growth Cycle (Months) 5 8 60 8 3 3 3

Growth Cycle (Weeks) 22 35 260 35 13 13 13

Yield Per Acre (Bags) 50 bags 150 bags/ mo 30 bags 2x / year 200 bags / mo 10 bags / month 5 bags / month 10 bags / month

Growth Cycle 5 months 8 months 5 years 8 months 3 months 3 months 3 months

Time Required For Planting 1 week 1 week 2 weeks for 5 acres 2 weeks for 5 acres 2 weeks 2 weeks 2 weeks

Time Required For Harvest 1 week Ongoing Ongoing Ongoing 3 harvests / year 3 harvests / year 3 harvests / year

Harvest Duration 2 weeks 5 months Lifetime 3 years - 10 years Once Once Once

Number of Harvests / Year 6 4 4 4

Crop Removal For Rotation

2 days for 10 people

per acre


HARVEST CALENDAR

Crop Total Acres

Clearing

Start Date

Workers

Required

For

Clearing

Drying

Start Date

Burning

Date

Planting

Start Date Crop

Planting

Number

Workers

Required

For

Planting

Growing

Start Date

Growth

Cycle

Harvesting

Start Date

Harvest

Behavior

Seasonal

Workers

Required For

Harvest

Land

Available

5 5 10/01/15 10 10/08/15 10/22/15 10/29/15 Rice First Planting 10 11/05/15 5 months 04/07/16 Once 20 04/14/16































HARVEST CALENDAR

Action Crop

Planting

Start Date Planting Number

Workers

Required

For

Planting

Growing

Start Date

Growth

Cycle

Harvest

Start Date

Harvest

Behavior

Harvest

Duration

Seasonal

Workers

Required For

Harvest

Cassava

Removal

Workers

Required For

Removal

Land

Available

Crop Rotation Cassava 04/14/16 Second Planting 10 04/21/16 8 months 12/22/16 Ongoing 5 Months - 05/25/17 10 06/04/17































HARVEST CALENDAR

Action Crop

Planting

Start Date Planting Number

Workers

Required

For

Planting

Growing

Start Date

Growth Cycle

(Plantain)

Harvest

Start Date

Crop Rotation Cocoa / Plantain 06/04/17 Third Planting 10 06/18/17 8 months 02/18/18
























Crop Rotation Bitter Ball / Pepper / Okra 06/04/20 Third Planting 10 06/18/20 3 months 09/17/20







Grant Proposal 2015 - Gedeh Agriculture Enterprise

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Transcript of Grant Proposal 2015 - Gedeh Agriculture Enterprise