KLIK SAYA SOKONG BLOG

Saturday, July 10, 2010

Business Plan: TKPM

Inspection on crop cycle by DG of DOA at TKPM Sekijang, Segamat.

Below are samples of Business Plan I prepared for TKPM during my tenure as TKPM Consultant 7 years ago for those who interested to read:-


PERMANENT FOOD CROP PARK PROJECT (TKPM)
TKPM SEKIJANG MUKIM SUNGAI SEGAMAT SEGAMAT, JOHOR
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

1 OBJECTIVE

The business plan is prepared to show the feasibility study for new agriculture project at TKPM Sekijang Segamat, Johor. It will guide the farmers to plan and ensure the implementation of the project viable and profitable oriented. This paper allows the officers in charge of TKPM project to closely monitor the progress.
Each farmers in these TKPM project are targeted to gain net farm income more than RM 3,000 a month by the end of 2004.


2 PROJECT BACKGROUND

2.1 TKPM is a new approach introduced by government to ensure food production area secured. TKPM (Permanent Food Agriculture Park) established to provide fertile land with complete basic infrastructure for selected commercial farmers. The farmers with their own capital or borrowed loan from banks are trained to be full-time farmers. Each of them is given a minimum of 4 hectare and a maximum of 8 hectare.

The farmer has to follow strict regulation through Letter of Agreement signed with the authority. They has to pay rent about RM 500 per hectare every year and pay some maintenance's fees. The management (Department of Agriculture) will terminate the participants if they breach the TKPM’s regulation.


2.2 Project Site

The project site is about 23 km from Segamat town with an area about 87 hectare. Each lot is 2 hectare divided by farm road or drain boundry. Irrigation system using Daedong Water Pump (52 h.p.) connected to farm area by HDPE 4 inch pipeline. Each farmer is assigned with their own irrigation system depending on their choice of crop.


2.3 Crop and Soil Suitability Report.

Most of the area are flat land (80%) and suitable foe most of vegetable and non-seasonal tropical fruit. Soil type are sandy clay loam from 6 soil series as below :
i ) Siri Bungor 9.1ha
ii) Siri Telemong 25.5ha
iii) Siri Tunggal 5.2ha
iv) Siri Penambang 3.1ha
v ) SiriTepus 26.6ha
vi) Siri Batu Lapan 6.5ha

2.4 Participant.
All 8 participants are selected from about 80 applicants. They have to show their commitment by monitoring progress work in the farm. Each farmers assisted with between 5 – 8 workers to manage the farms.


3 PROJECT PROPOSAL

3.1 Type of crop selected.
The management team and farmers agreed to choose 6 type of crop in 2004 as follows :
i. Guava (Jambu Batu)
ii. Long Bean (Kacang Panjang)
iii. Cucumber (Timun.)
iv. Angled Loofah (Petola)
v. Maize (Jagong)
vi. Chili (Lada Merah)

Criteria of selection based on the farmers expertise, fair price, availability of inputs and modern infrastructure.

3.2 Production Schedule and Hectarage

See appendix 1 for planting schedule in 2004.

See appendix 2 for production schedule in 2004.

No. Crop Hectare Frequency CHE
1. Guava proposal = 16.0 hectare at 1 cycle = giving total area 16 ha
2. Long bean proposal = 2.5 ha at 4 cycle giving total area planted = 10.0 ha
3. Cucumber = 5.0 ha at 2 cycle giving total area planted = 10.0 ha
4 Angle Loofah = 5.0 ha at 2 cycle giving total area planted = 10.0 ha
5 Maize = 5.0 ha at 2 cycle giving total area = 10.0 ha
6 Chili = 5.0 ha at 2 cycle giving total area = 10.0 ha

3.3 Package Technology
All the farmers are trained by Department of Agriculture all aspect on growing the selected crop to marketing knowledge. The training includes Formal Training, Hands-on training, study tour, discussion with officers and exposure to marketing outlet. They are also exposed where to purchase all inputs and to get labour force. Record keeping and accounting aspect are important for financial analysis.


3.4 Infrastructure at TKPM

Development initial Costs
All infrastructure in TKPM are efficient which include farm roads, drainage, irrigation system, site office, workers hut, collection center, mechanization (tractor, power sprayer, trailer, Boom spray etc). The infrastructure cost born by government.


4. FINANCIAL ANALYSIS
Appendix 3 is the master cashflow for 6 type of commodity (Guava, Long Bean, Cucumber, Angle Loofah, Maize and Chili) in 2004 which shows that the total gross income in 2004 expected about RM 5,459,552. Total cost of production is RM 3,804,054 giving total net farm income RM 2,912,488. This business plan shows that every one ringgit spent on the project will earn 2.14 in return. Net present value (NPV @ 10%) is RM 3,158,940.

a. Analysis for Guava
Appendix 4 is the cashflow of guava for 16 hectare. It will be grown by 4 farmers. The variety selected is local variety (GU 6) for fresh consumption. After 18 month in the farm the farmers will start harvesting. Total production for 5 years is 3,295.9 m.t. and with farm price at RM 0.60/kg it brings gross farm income RM 1,959,522. Benefit cost ratio is 1.87.

b. Analysis for Long Bean
Appendix 5 is the cashflow of long bean planted in 4 times at 2.5 hectare giving a total of 10 hectare. It will be grown by 4 farmers. The variety selected is hybrid variety (322 & 329) for fresh consumption. It was planted following the planting and production schedule as appendix 1 and 2. Total production for 5 years is 875 m.t. and with farm price at RM 0.80/kg it brings gross farm income RM 700,000. Breakeven price per kilogram are RM 0.55/kg and the benefit cost ratio is 1.87.

c. Analysis for Cucumber
Appendix 6 is the cashflow of long bean planted in 2 times at 5 hectare giving a total of 10 hectare. It will be grown by 4 farmers. The variety selected is hybrid variety for fresh consumption. It was planted following the planting and production schedule as appendix 1 and 2. Total production for 5 years is 440 m.t. and with farm price at RM 0.40/kg it brings gross farm income RM 440,000. Breakeven price per kilogram are RM 0.23/kg and the benefit cost ratio is 1.72.

d. Analysis for Angle Loofah
Appendix 7 is the cashflow of angled loofah planted in 2 times at 5 hectare giving a total of 10 hectare. It will be grown by 4 farmers. The variety selected is hybrid variety for fresh consumption. It was planted following the planting and production schedule as appendix 1 and 2. Total production for 5 years is 750 m.t. and with farm price at RM 0.60/kg it brings gross farm income RM 450,000. Breakeven price per kilogram are RM 0.38/kg and the benefit cost ratio is 1.66.


e. Analysis for Maize
Appendix 8 is the cashflow of long bean planted in 2 times at 5 hectare giving a total of 10 hectare. It will be grown by 4 farmers. The variety selected is hybrid Thai Supersweet variety for fresh consumption. It was planted following the planting and production schedule as appendix 1 and 2. Total production for 5 years is 1.3 million cobs and with farm price at RM 0.30/cob it brings gross farm income RM 221,000. Breakeven price per kilogram are RM 0.12/cob and the benefit cost ratio is 1.33.

f. Analysis for Chili
Appendix 9 is the cashflow of chili planted in 2 times at 5 hectare giving a total of 10 hectare. It will be grown by 4 farmers. The variety selected is Kulai (MC 10) variety for fresh consumption. It was planted following the planting and production schedule as appendix 1 and 2. Total production for 5 years is 750 m.t. and with farm price at RM 2.00/kg it brings gross farm income RM 1,5000,000. Breakeven price per kilogram are RM 0.86/kg and the benefit cost ratio is 2.34.


5 MARKETING PLAN
The entire fresh product will be collected at Collection center for grading. Marketeers will collect in the basket for 2 regular whoseller in Segamat located at Buloh Kasap (Ah Sang) and at Taman yayasan ( Ah Soon). There is 2 other smallscale players from Jementah and Yong Peng who buy on certain product and time. The farmer has to follows the planting schedule so that demand and supply Will give assure them good and fair price. Only 10 – 15 % of the product will be sent to retailer as direct selling activities by the department.


6 CONCLUSION
The business plan shows that the farmers earn about more than RM 3,000 per month if they follows the planting schedule. The matrix planting system must be followed by all 8 participants and level of technology and management style is standard. If all farmers payback their loan at RM 532.35 per month to the banks and the project sustainable it means they make money.

I explain to Dato Ismail about the progress of TKPM Sekijang project in 2003. I hope he understand well...
Thank you.

THIS BUSINESS PLAN IS A PROPOSAL PLAN FOR AGRICULTURE PROJECT IN TKPM SEKIJANG AND MAY NOT PRACTICAL DUE TO OTHER FACTORS AFFECTING THE RESULTS”

Mohd. Anim bin Hosnan
Pejabat Pertanian
Segamat
Johor
26hb.December 2003.

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