Botswana Cooking Oil

project posted:

New Production of Soya Meal and Cooking Oil Are a Green Light

Let’s take a quick look at the set of circumstances first…

GENERAL INFORMATION

PRODUCTS TO BE PRODUCED:
Cooking oil and Soya Meal Nutritional Products.

SOURCES OF RAW MATERIALS:
Soya beans to be imported from Brazil and India.

PROPOSED PLACE OF OPERATION:
South East District, Botswana.

PROSPECTIVE MARKET SIZE:
Local Botswana Market, SADC Region, and World Market at large.

MARKET POTENTIAL:

Currently, our company is supplying cooking oil imported from South Africa to two big chain shops with an average monthly quantity of over 500,000 liters.

The main objective of this new project, however, is to produce cooking oil and Soya Meal products that are both nutritious and affordable to Botswana and consumers within the SADC Region. This opportunity also presents big profits to be made worldwide if we decide to expand and serve those masses.

In fact, the quotation and prototype of the production plant together with its building structure has already been secured including the cost of establishing the plant by the suppliers, commencement of the plant, and training. This is inclusive in the quoted package of the entire plant.

1) COOKING OIL

The market research undertaken by the company reveals that the major wholesalers and chain shops in Botswana need a company to supply them with 1.225.000 liters of cooking oil per month. At the moment, we’re negotiating to get contracts in order to open orders to supply imported cooking oil to these wholesalers and chain shops.

In other words? South African suppliers cannot manage to meet the growing market demand of its neighbors. With this new production plant, we’d be able to do just that.

2) SOYA MEAL

As you know, soybeans have long been recognized as a plant food that, when compared with other plants, is relatively high in protein. Protein is the reason that soybeans have historically been called “meat without bones.”

But only recently have researchers taken an extremely close look at the protein content of soybeans and arrived at some fascinating conclusions.

Even though soy is a plant protein and typically lower in certain amino acids (protein building blocks) than animal proteins like those found in chicken eggs or cow’s milk, once adjustments have been made for digestibility and other metabolic factors, soya beans like those used in our Soya Meal products, turn out to receive a high-quality protein rating.

The profits and potential from this growing demand are staggering and must be fulfilled immediately.

Along with this increasing interest in soy protein has come the discovery of very small and unique proteins in soy, typically referred to as “peptides.” These include defensin, glycine, and lunasin — all of which are now known to provide us with amazing health benefits. What are those benefits, you ask?

People, especially locals, will be able to see them in the areas of improved blood pressure regulation, better control of blood sugar levels, and stronger immune functions.

In fact, research on Soya Meal Nutritional Food by NUFTEC (Nutritional Food Technology Centre) also reveals that the government tends to always run short of these products in Hospitals and clinics. This means that there is an urgent need for someone to establish production plants of this nature in order to produce this kind of food.

Further research by NUFTEC jointly with their counterparts within and outside the SADC Region reveals that rural areas of many countries are in great need of nutritional food for both children and the elderly people.

Hence, why the company is trying to break-through the market with the vast quantities it will produce by working together with NUFTEC. This particular partnership can easily open many doors for us as we establish our dominance and begin making sales both on the local and international level.

INVESTMENT ANALYSIS

The project will require a total investment of $3,243,065. Included in this investment is the set up of a production plant, in addition to the acquisition of the manufacturing location, purchasing equipment, acquisition of raw materials, payroll, and miscellaneous costs. After the first month of production the plant will generate a gross income of  $4,387,500.

Our cash flow analysis shows that this project has a repayment period of 6 months. After which the cooking oil plant will be completely self sufficient and generate a net profit (not including tax) of $2,071,250 per month.

We have planed for a lot of growth potential after the fact.

MARKETING THE PRODUCTS

This project is feasible as it can easily be undertaken since:

  • Markets are readily available with unique developments.
  • The plant is not overly complicated and expensive.
  • There is technical support from suppliers of the plant, government and related bodies like NUFTEC, RIIC (Rural Industries   Innovation Centre), BOCCIM (Botswana Confederation of Commerce, Industry and Manpower), and even customers themselves.
  • The raw materials can be obtained at affordable prices both overseas and in Africa and those prices can be negotiated in many producing countries.
  • Labour and other resources are attainable and within reach.

In addition to those advantages, there is absolutely no local producer of cooking oil except for producers of soya blended, fortified products.

Our company will supply the producers of Soya blended products with Soya Meal as raw material to these producers are at the same price per ton. What does this mean exactly? It means that these producers will become customers and not competitors.

As for local customers (chain shops and wholesalers), they are prepared to assist in marketing any product the local producer will come-up with in order to protect and promote the home industry. And, most importantly, assist the government in employment creation.

These funds will therefore help us establish and operate this whole project. Quality control will be needed in order to match international standards. Although that shouldn’t be an issue with our team’s hands-on experience, drive, and expert training all in place.

EXTRA CONSIDERATIONS

We understand that once our manufacturing enterprise is up and running, that we can’t begin to think that our work is over. It’s really just begun. And if we want to maintain and grow this business, we will need to stay focused on continuing improvements to our products and our process.

Therefore, we will concentrate on these key areas:

  • Pay attention to the life cycle of our products
  • Keep distinguishing ourselves (from any potential competitors)
  • Comply with regulations, labor laws, and intellectual property
  • Continue to build our network and partnerships
  • Grow our business with exports

Starting a manufacturing business is not a decision to be taken lightly. It involves a substantial commitment. That is why exports will play a major role in our overall growth.

The world has become a much smaller place in recent years, and it is as easy to communicate halfway around the world as it is to communicate halfway around the block.

As a result, there are amazing options for us to enter open markets. And the great possibility to expand sales in places you’ve never dreamed of. With exchange rates the way they are, we can easily set up helpful meetings, and talk with industry of government representatives about opportunities for exporting. This would be an obvious job boom to the local communities and would benefit rural economic development.

Having considered a number of alternatives globally, we believe it is the right choice to build the new facility in the South East District of Botswana, which has been home to a smart and strong willed labor force – for many years. This investment in production is truly one-of-a-kind and is a further signal of our long term commitment.

MANAGEMENT TEAM
The company founders are currently selling cooking oil that they import from South Africa to local supermarkets. They have also secured a supply contract worth $220,00 per month. The founders have a proven track record of supplying cooking oil and are just waiting on more capital to fulfill their next big contract.

CONCLUSION

If you want to partake in this partnership, and amazing opportunity, do not hesitate to contact us. We will provide you with a complete business plan. These documents will include more valuable and in-depth information so that you can make a more full decision when it comes time. We are currently presenting this to a list of prospective investors so please get in touch with us soon.

We appreciate your time and hope to hear from you!