Livingstone farm estate

LIVINGSTONE MEGA INDUSTRIES LIMITED

4B Ogun-Osun River Basin Development Authority,

Oyo Road, Niko,

Iseyin, Oyo State

VISION

Service and Excellence; exceeding customer expectations!

MISSION STATEMENT

Profitable growth through innovation, superior customer services, cutting edge technology, and

business best practices.

MANTRA

Signature of Excellence

OUR CORE VALUES

The acrostic LINES which stands for loyalty, Innovation, Networking, Excellence, and Service

captures the very soul of Livingstone Mega Industries. Not only do we hold them to be

sacrosanct, they define the way we do business.

We combine strong allegiance to our esteemed customers and relentless workers with our

resignation to rolling out excellent products and services using technology, research and

innovation as tools to continually reinvent ourselves so as to adapt to changing situations and

global business best practices.

All this is made possible through our policy of maintaining a network of teams of highly driven

workforce, highly talented, well-motivated and relentlessly engrossed in the pursuit of

customer satisfaction and the company’s expansion.

Statement of Confidentiality & Non-Disclosure

This document contains proprietary and confidential information. All data submitted to [RECEIVING PARTY] is provided in reliance upon its consent not to use or disclose any information contained herein except in the context of its business dealings with LIVINGSTONE MEGA INDUSTRIES LIMITED. The recipient of this document agrees to inform its present and future employees and partners who view or have access to the document's content of its confidential nature.

The recipient agrees to instruct each employee that they must not disclose any information concerning this document to others except to the extent that such matters, are generally known to, and are available for use by, the public. The recipient also agrees not to duplicate or distribute or permit others to duplicate or distribute any material contained herein without LIVINGSTONE MEGA INDUSTRIES LIMITED’s express written consent.

LIVINGSTONE MEGA INDUSTRIES LIMITED retains all title, ownership and intellectual property rights to the material and trademarks contained herein, including all supporting documentation, files, marketing material, and multimedia.

BY ACCEPTANCE OF THIS DOCUMENT, THE RECIPIENT AGREES TO BE BOUND BY THE AFOREMENTIONED STATEMENT.

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LIVINGSTONE FARM ESTATE

Livingstone Farm Estate is a service section of Livingstone Mega Industries

Limited that provides investment opportunities to all who would like to take

advantage of the present growth opportunities in the agro-allied sector. It is

structured into two stages; one and two. Stage one provides investment

opportunities in the cropping section of our project while Stage two deals with the

processing aspect.

It is a profit sharing arrangement in which investors own slots in the total

investment projects that is a reflection of the ratio of their investments. 60% of the

profits would accrue to the investors while 40% would go to Livingstone Mega

Industries Limited. A memorandum of understanding would be signed before any

payments are made.

The farm estate which is comprised of four groups; Silver, Diamond, Gold, and

Platinum, is structured into slots of hundred thousand each amounting to 694 slots,

six hundred and ninety-four slots in both stage one and two. The minimum amount

investible is one million naira (Platinum); however, we have made provisions for

low-end investors by creating a second investing pool divided into three groups:

a. Silver, comprising of ten individuals investing a minimum of hundred

thousand naira #100,000 each

b. Diamond, comprising of five individuals investing a minimum of #200,000

each and;

c. Gold, comprising of four individuals investing a minimum of #250,000 each

The eventual profit per investment slot depends on what stage of the farm estate

the investor pays for.

The projection for each project is shown below:

STAGE ONE

PROJECTION ON CASSAVA PRODUCTION FOR 50 HECTARES (125

ACRES) OF LAND

COST ANALYSIS

Land leasing:

4,000 PER hectare

50 Hectares = #4,000 x 50

= #200,000

Clearing:

#2,000/acre

= #250,000

Ploughing:

#4,000/acre

= #500,000

#200,000

Ridging:

#3500/acre

= 437,500

Cultivation (Planting) of cassava

Stem cuttings:

80 bundles of cassava will plant 1 Hectare

4000 bundles will plant 50 Hectares

At #400/bundle = 4000 x 400

= #1, 600,000

Labour: #3000/acre = 375,000

Herbicide:

Primextral etc:

#10,000/Hectare

= #500,000

Labour for herbicide application:

#1500/acre = #187,500

Weeding:

#1,187,500

#1,975,000

#862,500

3500/Hectare = #175,000

Transportation

#3000/hectare of planting materials

=#150,000

Fertilizer

5bags per hectare

One bag = #3500 = #875,000

Fertilizer Application @ 1500/acre

= #37,500

Harvesting and Marketing

#5000/Hectare = #250,000

Administrative Expenses

Total Expenses

#250,000

#5,937,500

#150,000

#912,500

#400,000

Benefits Analysis

1 Hectare yields 15-20 tons of cassava

With a conservative yield of 18 tons per hectare:

50 Hectares will yield 50x 18

= 900 tons

1 ton sells for between #10,000 and #15,000

With an average selling price of #12,000/ton

Therefore expected revenue = 12,000 x 900

= #10,800,000

Gross Profit= 10,800,000-5,937,500 = 4,862,500

#10,800,000

PROJECTION ON PLANTAIN PRODUCTION FOR 10

HECTARES (25 ACRES) OF LAND

COST ANALYSIS

Land leasing:

4,000 PER hectare

10 Hectares = #4,000 x 10

= #40,000 = #160,000 for 4 years

Clearing:

#2,000/acre

= #50,000

Ploughing:

#4,000/acre

= #100,000

#160,000

#150,000

Cultivation (Planting) of Plantain

Plantain Suckers:

1,400 suckers of plantain will plant 1 Hectare

14,000 suckers will plant 10 Hectares

At #150/Sucker = 14,000 x 150= 2,100,000

Labour: #3000/acre = 75,000

Herbicide:

#15,000/Hectare

= #150,000


#1500/acre = #37,500

Transportation

#5000/hectare of planting material

=#50,000

#2,175,000

#50,000

#187,500

Fertilizer

5bags per hectare

One bag = #3500 = #175,000

Fertilizer Application @ 1,500/acre

= #37,500


#10,000/Hectare = #100,000


Benefits Analysis

1 bunch of plantain sells for #1400

Assuming 90% of all plants produce (90% of 14,000 = 9,800), and sale is made at #1100;

Turnover would be

(9,800 * 1100) = 10,780,000

Gross Profit would be (10,780,000-3,535,000) = #7,245,000

#100,000

#3,535,000

#212,500

#500,000

PROJECTION ON PINEAPPLE PRODUCION FOR 5

HECTARES (12.5 ACRES) OF LAND

COST ANALYSIS

Land leasing:

4,000 PER hectare

5 Hectares = #4,000 x 5

= #20,000 = #80,000 for 4 years

Clearing:

#2,000/acre

= #25,000

Ploughing:

#4,000/acre

= #50,000

Ridging:

#3500/acre

= #43,750

#80,000

#118,750

Cultivation (Planting) of Pineapple

Pineapple Suckers:

28,000 suckers of pineapple will plant 1 Hectare

140,000 suckers will plant 5 Hectares

At #40/Sucker = 140,000 x 40= 5,600,000

Labour: #3000/acre = 37,500

Herbicide:

#15,000/Hectare

= #75,000


#1500/acre = #18,750

Transportation

#3000/hectare of planting materials

=#150,000

Fertilizer

5bags per hectare

#5,637,500

#150,000

#93,750

One bag = #3500 = #875,000

Fertilizer Application @1500/hectare

= #37,500


#5000/Hectare = #250,000


Total Cost

Benefits Analysis

1 pineapple sells for #200

Assuming 70% of all plants fruit (70% of 140,000 = 98,000), and sale is made at #150;

Turnover would be

(98,000 * 150) = 14,700,000

Gross Profit would be (14,700,000-#6,917,500) = #7,782,500

#250,000

#6,955,000

#125, 000

#500,000

STAGE TWO

Cassava Processing

Processing time-100 days

Equipment Leasing- #60,100 per day (Total leasing Cost-#6,010,000)

Raw Materials Cost- #108,000 per day (Total Raw materials Cost-#10,800,000

Working Capital-#31,900 per day (Total Working Capital Required-#3,190,000

Total Expenses-#200,000 (Aggregated Total Expenses-#20,000,000)

Anticipated Sales per day-#374,850 (Total Anticipated Sales- #37,485,000)

Anticipated Profit per day-#174,850 (Total Anticipated Profit- #17,485,000)

Plantain Processing


Equipment Leasing-#43,000 per day (Total leasing Cost-#1,290,000)

Raw Materials Cost-360,000 per day (Total Raw materials Cost-#10,800,000)

Working Capital- #31,900 per day (Total Working Capital Required-#9,570, 000)

Total expenses- #434,900 (Aggregated Total Expenses-#13,047,000)

Anticipated Sales per day- #980,000 (Total Anticipated Sales- #29,400,000)

Anticipated Profit per day- #545,100 (Total Anticipated Profit- #16,353,000)

Pineapple Processing


Equipment Leasing-#19,800 per day (Total leasing Cost-#1,980,000)

Raw Materials Cost-147,000 per day (Total Raw materials Cost-#14,700,000)

Working Capital- #31,900 per day (Total Working Capital Required-#3,190,000)

Total expenses- #198,700 (Aggregated Total Expenses-#19,870,000)

Anticipated Sales per day- #392,000 (Total Anticipated Sales- #39,200,000)

Anticipated Profit per day- #193,300 (Total Anticipated Profit- #19,330,000)

Total Expenses incurred for Livingstone Farm Estate is Sixty Nine Million, Three Hundred and

Forty-Four Thousand Five Hundred #69,344,500

At Hundred thousand naira (#100,000) per slot, this amounts to 693.445 slots or 694 slots.

Total Anticipated Profit from Livingstone Farm Estate is Ninety-Two Million, Nine Hundred

and Twenty-Eight Thousand Naira #92,928,000

STAFFING AND EQUIPMENT MAINTENANCE COST

Every project requires human resources to effectively deploy all other resources and so ensure

profitability. Equally, equipments, machines, and tools would have to be maintained to ensure

they don’t break down or fall into a state where they would not be efficient, so as to ensure the

projects sustainability. Livingstone farm Estate is no exception. However, Livingstone Farm

Estate is designed in such a way that those costs are born by Livingstone Mega Industries

Limited, besides the management services they provide for this project. It is for these costs borne

and the management provided that 40% of the project’s profit accrues to Livingstone Mega

Industries Limited.

MARKETING OUTLETS

Profit is made only when sales are made, bearing that in mind, Livingstone Mega Industries has

made adequate arrangement for the sale of the products as follows:

Cassava: If it is to be sold raw, these would be sold to Psaltery Limited, Ado-Awaye, in Iseyin.

However, the target of this project is to process the cassava into garri, cassava chips, flour, which

would be packaged and sold in the open market, Shoprite and other retail stores, to hotels, as

well as starch making companies within Nigeria and abroad.

Plantain: Livingstone Mega Industries currently produces plantain flour which is sold to the mass

market. Like the cassava, these would be processed into flour and sold through retail stores, sales

representatives, and other distributors Livingstone Mega industries has cultivated.

Pineapple: would also be bought and processed by Livingstone Mega Industries and sold through

our existing marketing outlets for our fruit chips production.

RISKS AND ASSUMPTIONS TO BEAR IN MIND

Every project has associated risks and assumptions. The risk this project faces includes natural

disasters such as drought or flooding, slumps in the prices of foodstuff in the market, as well as

theft. However, we have taken measures to mitigate these risks by ensuring that our farms would

be guarded and we have set up an emergency response unit equipped with motorized pumps so

as to tackle any potential drought or flood.

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Livingstone farm estate