MANAGEMENT CONSULTANCY, BUSINESS DEVELOPMENT, FINANCE

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Lelembwe Dairy Farm

Update

At this moment we are partner in Lelembwe Dairy Farm. Together with Henry Chipwere we developed a sustainable case and we found the necesarry financial means to start-up this dairy farm in Thyolo. The animal house is build and the first cows are there, producing milk. Extra cows are bought, one cow gave birth and 2 cows are pregnant at the moment. New cows can be bought from revenues to grow the business steadily. First financial reports show a little disappointing revenues, due to unexpected low milk production of our cows. But with good care of the cows and the extra cows milk production is picking up. As partners we agreed to appoint a full time manager to the farm starting July 2018 to scale up care for the cows and milk production.

Dairy cows at this moment (May 2018)

Milk cooling tanks

Animal house, visit September 2017

The business

The business model is keeping cows for milk production and produce the animal feed on the field next to the animal house. If that feed is not enough, additional cow feed will be bought at local market. Initially we've started with 5 cows who have just calved, producing milk from the first day. After 6 months, when milk production is getting low, 5 more cows are bought. The new cows will also produce milk immediately. The first 5 cows are inseminated and they will calve after 9 months. While inseminated the cows will still produce milk for 6 months. In a few years the business will have 10 cows producing milk and calves.

First 3 cows

Finance

Starting the business requires an investment of € 5.000,-, on sight management and a plot of land. The land and management is provided by Henry Chipwere, the € 5.000,- by Accesserator. Henry Chipwere and Accesserator are the shareholders of Lelembwe Dairy Farm, Henry owns 60% of the shares and Accesserator 40%. If milk production and selling will be as prognosticated Accesserator will receive a return on investment of 20-25% in 5 years time from dividend and selling its shares. After 5 years Henry Chipwere will be the sole owner of Lelembwe Dairy Farm.
 


Milk selling point Goliyati