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The Brief of Project Summary

A World Class Business

THE BEEF CATTLE FARM


&
PACKAGED MEATS PLANT
in Indonesia
1. Contents of the cooperative project
A. Brief account of the project
a. Name of the project: Feed Mill Plant, Beef cattle farm, slaughtering and
packaging of meat.
b. Location: Lai Lanjang, Rindi, East Sumba Regency, East Nusa Tenggara Sumba
island region Indonesia
c. Period of project: Mar 2019 – Dec 2019
d. Terms of investment: 10 years
e. The total investment of proposed facilities are Rp 965 billion (USD$ 65.65
million) :
Fixed investment : Rp 675.5 billion (USD$ 45.95 million)

Working capital : Rp 154.7 billion (USD$ 19.69 million).

The Net Present Value (NPV 10 years : Rp 1,544,045,539,567 (USD$ 105,037,112).

Internal Rate of Return (IRR) : 35.1 %

Payback period : 5 years.

CAGR : 13.26%

f. Foreign party shall provide: 100% current capital of the total investment.
g. List of machineries and equipments suppliers:
Banss from Germany
John Deere – USA
Marel – Iceland
Scott - Australia
h. The Capacity of Facilities:
Feed Mill Plant : - Corn silage: 340,000 tons per annum
- Concentrate: 60,000 tons per annum
Beef Cattle Farm : 30,000 per annum
Meat Processing and Packing Line Plant: 200 heads/day
B. Selection of factory location and its advantages:
a. Natural environment: the site of the project shall be located in East Sumba
residence - Nusa Tenggara Timur province - Indonesia.
b. Area of factory occupation: the site of the project shall occupy 10 hectares of flat
land, without any pollution sources around.
c. Transportation condition: the site of the factory is 60 kilometers to the Waingapu
Airport.
d. Communication: the area has already been covered by the network of programmed
controlling telephone, mobile telephone and internet.

C. Production program
a. Name of product and production scale:
annual output of 12000 beef cattle fattened
and slaughtered, there from annually, 3000
tons beef, 625 tons cattle by-produce,
10000 sheets of skin, 200 tons bone
powder and 20000 tons concentrated
fodder for cattle.

b. Construction scale and period:


The construction period shall be 1.5 year.

c. Resources and the supply of raw material and accessorial material: As one of the
main grain production bases, East Sumba is a region rich in agricultural and stock
raising resources. Its annual grain output hits 400-500 million kilograms, among
which more than 200 million tons of maize.
Also there are 28600 hectares of artificial
pasture. Therefore the supply of fodder and
forage grass is adequate. Now there are as
many as 2,272 feeder farmers with total
170000 cattle in stock.
With the rapid development of animal raising, which has been promoted by the
local government, the amount of cattle in
stock will be increased in future. The
annual water consumption of 145,420m³
and electricity consumption of 2744000
kW for the project can be guaranteed.

d. Production process:
The slaughtering process is as following:
Waiting – washing – fainted - hanging on rail - slaughter and letting out blood -
cutting off horns, head and hoovies - preparation for skin - pulling skin with
machine - sawing the chest - cutting abdomen open - sawing into two halves –
finishing - pre-freezing - picking out bones – cutting –packing – freezing - storage.
Measures of environmental protection:
In the feed processing plant, measures shall be taken to get rid of the dust;
Desulfurizing machines shall be adopted to treat with the smoke and dust from the
boiler; A sewage treatment system shall be used for treating with the manure and
sewage in the methods of deposition and sterilization. After filter, adjust, insolate,
deposition and sterilization, the sewage starts to be drained out; while the waste
shall be piled for fermenting.

Technical standards:
All the technology and process of production shall be conformed to the Atmosphere
environment quality, General sewage standards, Boiler smoke discharge standards.
D. Market broadcast
a. Technology standards, market and developing tendency of this trade:
Alongside the population increasing and the rising of living standards resulted from
the economic development, the demand for beef of high protein and low fat will rise
in large scale.
b. Competitive advantages:
There have never occurred epidemic diseases in this region for a number of years,
because of the well-organized system of prevention and technical services. The beef
processing shall be carried out strictly conforming to the state’s technology
standards.
The Company maintains the following accreditations:
 National Feedlot Accreditation Scheme
 USDA of Meat Standard
 European Union Grain Fed High Quality Beef (EU GF HQB)
 Meat Standards Australia (MSA)
 Livestock Production Assurance (LPA)
 BRC
 Halal Certificate
Quality Objectives
The main objective of corporate is to produce beef in a manner that ensures best
quality, long life and safety of a product we can be proud of.
The path towards our goal
• We pursue our goals at corporate sites through:
• qualified and experienced staff,
• strict compliance with hygiene requirements in production and personnel areas,
• regular investments in an advanced machine base,
• continuous improvement of production processes and technologies,
• improving personnel qualifications through a system of trainings,
• compliance with HACCP, IFS and BRC quality management systems.
The Environment
We respect the environment we work and live in, and we are committed to use only
sustainable and efficient technologies. We intend to make our contribution to
protecting the environment through waste sorting, reducing the quantity of waste, and
reasonable utilization of resources.

c. Marketing quotient:
After the project coming into operation, it produces 300 tons of high-grade
intersected beef, 600 tons of qualified intersected beef for exporting to overseas;
2100 tons of general intersected beef and 625 tons of by-products for sale in
domestic market.
E. Evaluation on benefit
a. Distribution of the investment budget for setting up the facilities:
Feedmill plant Rp 295 billion (USD$ 20.07 million)
Cattle farm Rp 220 billion (USD$ 14.97 million)
Meat processing and packing Plant Rp 450 billion (USD$ 30.61 million)
b. Business Ratio Analysis:

Internal Rate of Return (IRR) 35.06%


Payback Period (Years) 5
Net Present Value 1,544,045,539,567

c. Taxation: After the project coming into operation, its annual average value added
tax shall be 25%.
2. Introduction of the Corporate
Present situation
a. Status of Company: a new Foreign direct investment company
b. Ownership: NA
c. Business scope: manufacture and marketing/distribution of beef
d. Address: Jakarta – Indonesia
3. Conclusion:
A positive conclusion coming from the evaluations and analysis indicates that this project,
being in the accordance with the state’s industrial policy and the local plan of development,
has some advantages such as better future marketing, applicable technology and designing,
adopting advanced equipments and technology. Every financial index of the project is higher
than the basic and standard level, which means the project possesses the ability of getting
profit and resisting risks. The implement of the project shall activate the development of
cattle raising locally.

4. Contacts
Person in charge:
1. Mr. John Anthonius
Mobile phone No.: +6281311499383/wa
E-mail:anthoniusjohn@yahoo.com; anthonius70@gmail.com

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