KAMAR LIVESTOCK FARMERS COOPERATIVE SOCIETY LIMITED

KAMAR
LIVESTOCK
FARMERS
COOPERATIVE
SOCIETY

Feedlot
BUSINESS PLAN
Business Plan
LET’S WALK THE
KAMAR SUB-LOCATION,
JOURNEY TOGETHER
MOGOTIO CONSTITUENCY, BARINGO COUNTY

CONTACTS: +254 711 407979

P.O. BOX 227,

MOGOTIO.

Table of Contents
Executive Summary......................................................................................................................................4
1. About Kamar Livestock FCS.................................................................................................................5
2. Cattle Fattening Business Model..........................................................................................................8
3. Industry Analysis.................................................................................................................................10
4. Kamar Livestock FCS PESTEL And SWOT Analysis.......................................................................12
4.1 PESTEL Analysis.................................................................................................................................12
4.2 SWOT Analysis....................................................................................................................................13
5. Niche Market Analysis........................................................................................................................14
6. Production and Operational Strategy..................................................................................................15
7. Business and Project Management......................................................................................................17
Board of Directors (Management Committee).......................................................................................17
Advisory Sub-Committee........................................................................................................................17
Project Management and Other Staff......................................................................................................18
Farm Staff...............................................................................................................................................18
8. Marketing Strategy..............................................................................................................................20
9. Proforma Financial Statements...........................................................................................................22
10. Risk and Mitigatory Measures............................................................................................................27
11. Appendices..........................................................................................................................................29
Executive Summary

Kamar Livestock's business idea is to sell super-grade beef and chevon for profit from livestock
fattened at its farm. The cooperative will purchase low-weight and cheaper but healthy animals
from beef animals’ producers, and increase their weight, and quality to super grade through the
feedlot model.

The targeted cattle and goats will be purchased from the farmers, livestock markets, homes and
transported to our farm. The FCS will then intensively feed the cattle in circles of 90 days.
During this period, we expect the cattle to increase in weight by about 65%, and beef quality to
super grade. We will then sell the cattle and goats, and make a profit from the difference of
purchase and fattening costs. We will continuously do this throughout the year.

The inputs for the fattening/feed lotting process include; hay, animal feeds, minerals,
Acaricides sprays, animal care labor, and occasional animal health monitoring veterinary
services. Our estimations show that both the cost of buying low weight animal and total
fattening cost will be well catered by the sale price leaving a healthy profit.

Most important to us is our financial success and we believe this will be achieved by offering
high-quality fattened cattle while minimizing costs. We have created financial projections
based on our experience and knowledge of livestock trade and the fattening area.

We are seeking a loan of to fund some of our start-up costs.

We look forward to discussing this proposal with Baringo livestock

department

Sincerely,

Jane

Chepkwony-

Chairperson

Kamar FCS.

4
1. About Kamar Livestock FCS
The Kamar Livestock Farmers Cooperative Society Limited, formerly known as Kamar Pastoral
Field School, then Kamar Integrated livestock CBO was established in 2018 and registered under
Section 8 of the Co-operative Society’s Act Cap. 490 of the Laws of Kenya in 2023, Certificate no.
CS/28989. It currently comprises 49 members, including men, women, and youth from the
Endorois community, a recognized Indigenous minority group in Baringo County. It is situated in
Kamar Location, Emining Ward, Mogotio Sub County of Baringo County which has a population
of over 1,614 people according to the 2019 census. The Kamar area is highly affected by droughts,
floods, and famine, which often lead to livestock losses and forces community migration in search
of pasture and water. The main economic activities in the area are crop farming and livestock
rearing.

The cooperative's main goal is to promote pastoralism, enhance community livelihoods, and
strengthen resilience in Baringo County's arid environment. Its efforts focuses on equipping the
community to adapt to and mitigate the impacts of climate change. Before becoming a cooperative,
the group underwent a 52-week field-based training on Pastoral Field School (PFS) approaches,
which paved the way for income-generating activities aimed at diversifying livelihoods, boosting
resilience, and improving disaster preparedness for weather-related shocks.Kamar PFS allocated
25 acres of land for pasture establishment and seed bulking, with support from the Regional
Pastoral Livelihood Resilience Project (RPLRP) that provided fencing materials and built a hay
store with a 6,000-bale capacity. Additionally, the Baringo County Government contributed a
Sahiwal breeding bull to improve local livestock breeds, and the group independently purchased
nine bulls for fattening and selling. The PFS is managed by a committee elected from the group
members, with the Area Chief, Assistant Chief, and Emining Ward Administrator serving as ex-
official members.

The FCS has raised funds through the sale of pasture and member contributions and is organizing a
fundraiser to sustain its activities. The area was chosen due to its vulnerability to drought, land
degradation, lack of support from non-state actors, poor road infrastructure, low land productivity,
and the prevalence of livestock pests and diseases. Given the community's exposure to severe
climate change effects, CPIU and CPSU targeted it for capacity building and to develop disaster
risk reduction strategies. RPLRP has further assisted the group in expanding pasture production
and poultry farming to increase household income.

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 1.1. Mission, Vision, and Objectives

Mission
To enhance the resilience of pastoralist communities by transforming their livelihoods in the arid and semi-
arid regions of Baringo County

Vision
To become the leading community model in addressing the impacts of climate change by implementing
targeted disaster risk reduction strategies.

Core Values
i. Integrity
ii. Professionalism
iii. Teamwork
iv. Self-reliance, resilient & Sustainability
v. Transparency & Accountability

Slogan
Let’s walk the journey together

OBJECTIVES.
1. To improve farm operations and enhance efficiency by integrating modern machinery into the
feedlot business model by January 2025
2. To enhance the operational capacity and management efficiency of the Kamar Cooperative Society
by April 2025
3. To establish a well-equipped and secure livestock fattening facility for commercial meat production
by Mid 2025

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1.2 Current Activities
The current activities in the business includes;
1. Upgrading of Local Breeds: In 2019, the PFS group benefited from the Sahiwal bull scheme provided
by the Department of Livestock to improve local cattle breeds. Since then, numerous improved calves have
been born, resulting in better yields and increased live weight, which enhances market value.

2. Seed Bulking and Hay Baling: The group has total of 8acres Boma Rhodes farm and 23acres
Cenchrus cilliaris farm where the group harvest seeds and bale hay twice a year, producing over 3,000
bales for sale both within and outside Kamar. However, climate change has impacted production which is
attributed to unpredictable rainfall, uncertified seeds, inadequate machinery, delayed planting, and human-
wildlife conflicts.

3. Beekeeping: The group owns several log hives but faces challenges with low honey yield, poor honey
quality, and outdated harvesting methods. They aim to improve production by adopting modern
technologies such as upgraded hives, apiaries, and bee suits for safer and more efficient honey harvesting.

4. Livestock Fattening for Sale: To boost household incomes, the group initiated a bull and Bucks
fattening program. The group purchase young or mature bucks and bulls, castrate them, and fatten them for
a year before selling at a higher price. Started with 9 bulls in 2021, the group now has 44 bulls and 12
bucks. The Bulls selling price averages @ ksh.50,000 and the bucks average selling price is @ ksh.8000

5. Soil and Water Conservation: The PFS team spearheads efforts to reclaim degraded lands in Kamar.
They are working to prevent gully erosion and divert surface runoff into pasture fields to recharge
groundwater and retain moisture in the soil.

Achievements:
1. In 2022, the group acquired 50 acres of land in Sitet Village using funds generated from the
sale of bulls and hay, while continuing to use community-owned land to increase pasture
production.
2. The number of fattened bulls grew from 9 in 2021 to 44 over three years, and the group has
also begun fattening bucks for commercial purposes.
3. The group collaborated with other organizations to secure a baler machine, enhancing their
production capacity.
4. In 2023, members participated in training provided by NDMA on disaster risk reduction
strategies.
5. The group transitioned from a community-based organization (CBO) to a cooperative
society in 2023 under a new registration.

7
 OBJECTIVES.
1. To improve farm operations and enhance efficiency by integrating modern machinery into the
feedlot business model by January 2025
2. To enhance the operational capacity and management efficiency of the Kamar Cooperative Society
by April 2025
3. To establish a well-equipped and secure livestock fattening facility for commercial meat production
by Mid 2025
ACTIVITIES.
S/No Objectives Activities
1 To improve farm operations i. Evaluate current farm operations to identify the best modern
and enhance efficiency by machinery that can improve efficiency and reduce costs
integrating modern
machinery by January 2025 ii. Estimate total costs for purchasing and delivery of the
machinery
iii. Identify reliable suppliers focusing on quality, after-sales
service, and warranty options.
iv. Purchase mower tractor, water bowser tank, and farm trailer,
and operationalize at the farm
2 To enhance the operational i.Construct FCS offices and equip
capacity and management
ii.Employ one Farm manager, two farm assistants, and one
efficiency of the Kamar
security officer
Cooperative Society by
iii.Install an automated record-keeping system
April 2025
iv.Purchase more animals (50 young bulls and 100 bucks)
v.Electricity connectivity
3 To establish a well- i. Construct a 200-animal capacity holding ground
equipped and secure bull ii. Fencing of 20acres of land
fattening facility for iii. Purchase of concrete fencing poles
commercial meat
production by mid-2025 iv. Purchase of water tank (10,000L)
v.. Construction farm main gate

Cattle Fattening Business Model

Feed lotting (also called pen fattening) involves the feeding of beef cattle with a protein-
balanced, high-energy diet for a period of 70 to 100 days under confinement to increase live
weights and improve the degree of finish and thus obtain better grades at the abattoir. Pen
fattening enables the animals to express fully their genetic growth potential. It also enables the
profitability of beef production to be maximized, provided the beef price to feed cost ratio is
favorable.
Pen feeding aims to transform feed into meat of a required quality as efficiently as possible. The
best measure we have of this in the live animal is food conversion efficiency/ratio (FCE/FCR)
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i.e. kg of feed per kg live weight gain e.g. if 8Kg of feed leads to 1 Kg live weight gain of the
cattle, then the FCR is 8:1. The lower the FCR, the more profitable you become.
It is important to emphasize the efficiency of feed use as if you subtract the induction cost of the
animal; food constitutes some 90% of the remaining variable costs. So together with the
slaughter price of the animal, feed has a major influence on the profitability of your feedlot
operation.

Reasons for Feedlotting

Reasons for feedlotting can be summarized as:
 To add extra weight to stock at a younger age and thus increase turnover and maximize
output from the beef enterprise
 To improve the degree of fatness and fleshiness (finish) of the carcass to achieve higher
grades and better prices
 To take advantage of seasonal beef price fluctuations at the abattoirs. Prices are generally
favorable from October to February.
The basic principles of the Feedlot
A beef carcass consists of muscle, fat, and bone. At birth, the carcass has minimal fat, with early
growth primarily focused on bone and muscle. As the animal matures and gains weight, fat
deposition increases. Once a suitable level of carcass fat is reached, the animal is considered
"finished" and ready for slaughter. The acceptable live weight and fat content for slaughter
depend on market demand.
Energy intake plays a key role in meat production and performance in feedlot systems. Energy
consumed beyond the maintenance level is used for muscle growth (beef production), and the
efficiency of energy use above maintenance remains steady. Therefore, the higher the energy
intake beyond maintenance, the lower the maintenance cost per unit of gain, making weight gain
more cost-effective.
In general, as feed digestibility improves, voluntary feed intake also rises, up to a point. The
combination of high digestibility, increased intake, and better net efficiency leads to more
efficient energy use when cattle are fed ad libitum with highly digestible diets or those rich in
metabolizable energy (ME). Factors such as total feed intake, net digestive efficiency, feed cost
per unit, return per kilogram of meat sold, other management expenses, and the optimal feeding
period length influence profitability.
There are various strategies to feed cattle to achieve the desired fat content in the muscle and a
higher carcass weight.
The most common practices include:

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1. Grazing on veld
Usually, steers have to remain on the veld until they are two years or older before a
suitable carcass fat content is reached. Cows are frequently fattened on good summer
veld and achieve good finish in a reasonably short period of time.
2. Planted pastures can be used for fattening and growing out animals and the growth rates
achieved are better than on veld.
The most common practice is the use of annual ryegrass, where weaners go on to the
pasture at weaning in autumn and are ready for market by Christmas. Although summer
pasture can be used, this practice is often not successful because feeding starts in spring
when the price of feeders is relatively high and finished animals are only ready in
autumn, when beef prices are relatively low.

3. The majority of cattle marketed through abattoirs come from feedlots. These include:

 On-farm feedlots. Many farmers fatten animals in pens or large paddocks, using
bought-in or home-grown feeds. The livestock can be home produced or
purchased animals.

 Commercial feedlots are probably the major method of finishing livestock. The feed
lotter, often a speculator, buys animals for the feedlot. Ownership of the animal, and
therefore the risk associated with feeding, are the responsibility of the feedlot owner.
There are also custom feedlots, where the feedlot operator does not buy animals, but the
owner of the animal sends them to be fattened. In the latter case, risk usually remains
with the owner of the animal.

1
0
 2. Industry Analysis

Types of Livestock keepers/producers

1. Commercial Farming Areas
Commercial farming encompasses both large-scale and small-scale operations. Large-scale
commercial farms are well-organized, financially robust, and typically maintain large cattle
herds. These farms are owned either by individuals or associations, often combining crop and
livestock production. The primary goal of commercial farms is profit maximization, often
targeting specific production outcomes, such as meat or milk. Cattle are primarily grazed in
paddocks under controlled grazing systems, with the introduction of improved forage species in
some cases. Rotational grazing is commonly employed. The cattle raised on these farms serve
multiple purposes, including meat, milk, manure, and draft power. Farmers in these areas
typically supply cattle to abattoirs and butcheries for processing.

2. Rural Areas
In rural areas, farmers live in villages, typically owning small herds of cattle. The cattle
management practices in rural systems differ significantly from those in commercial farming.
Livestock are often reared for diverse reasons, such as milk, meat, draught power, and manure.
Cattle are usually herded during the day and confined to pens at night. In some cases, especially
where grazing land is limited, the entire village’s cattle may be managed as a single
interbreeding flock with minimal control over mating. However, in areas with abundant grazing
land, herds from different households may graze separately.
After the harvest, cattle are allowed to graze on crop residues until the rainy season, when they are
herded again. Poor-quality feed and limited grazing land often constrain livestock productivity
in rural systems. Indigenous cattle, despite their lower productivity, are valuable for their
genetic diversity, which provides adaptive traits that may be critical in addressing future
environmental and market challenges. Communal cattle systems rarely involve supplementation
with commercial feeds or improved forage, leading to poor body condition, low weight gain,
and susceptibility to endoparasites, particularly during the dry season.
In extreme dry seasons, cattle often need to travel long distances from homesteads in search of
forage and water. Communal cattle serve a range of roles, including providing milk, manure,
draught power, and terminal products such as meat and hides. These hides are used for various
purposes, such as making drums, tents, and mats. Cattle are a significant source of income for
rural households through the sale of animals and their products.

3. Challenges in Rural Cattle Production

Diseases and parasites are significant constraints to cattle production in rural areas, where they are
endemic. High mortality rates, weight loss during the dry season, and reduced fertility due to
nutritional stress are common consequences of endoparasitic infestations. The poor control of
diseases negatively impacts financial returns and productivity, as a substantial number of calves

11
 are born during the dry season.
The most commonly reported diseases in rural areas include blackleg, heartwater, babesiosis,
anthrax, and anaplasmosis. The situation is exacerbated by the limited availability of drugs,
their high costs, and a shortage of veterinary services. Additionally, external parasites such as
ticks contribute to diseases like heartwater, resulting in significant economic losses to the
country.

Competition and Buying Patterns

1. Quality Grading of Beef
Beef quality is a primary factor considered by customers, particularly abattoirs and butcheries, when
purchasing cattle. Beef is categorized into six distinct grades:
 Manufacturing (lowest quality)
 Economy
 Commercial
 Choice
 Super (highest quality)
 Condemned (beef from sick or unfit cattle, often leading to significant financial losses)
The grade a producer achieves directly influences the selling price, with higher grades like "Super"
fetching premium prices and condemned cattle posing a financial risk.
2. Customer Preferences
Butcheries and abattoirs are highly focused on both quality and price. Their goal is to secure high-quality
beef at the lowest possible price to maximize profit margins. Market forces (supply and demand) dictate
beef prices, establishing a generally accepted supplier price at any given time. This makes it crucial for
producers to be competitive while maintaining beef quality.
3. Producer Requirements
Producers are typically required to have their cattle slaughtered at registered abattoirs before selling to
butcheries, especially large ones. Many butcheries demand this to ensure quality control and adherence to
regulatory standards. This requirement limits direct sales between producers and large butcheries unless the
beef passes through a registered abattoir.
4. Supply Chain Relationships
Customers are willing to establish long-term supply agreements with reliable producers who can
consistently deliver beef of the desired quality and quantity. This relationship-building is crucial for
producers aiming to secure a stable customer base and minimize the risk of fluctuating demand.
5. Challenges for Producers
Producers face multiple challenges, such as:
 Maintaining beef quality to achieve high grades, especially "Super" beef, to maximize profits.

12
  Risk of condemned cattle, which can lead to losses.
 Price sensitivity from butcheries, requiring producers to balance cost control with quality
improvement.
 Meeting slaughtering regulations, as cattle must be processed at registered abattoirs, adding another
layer of complexity and cost.

3. Kamar Livestock FCS PESTEL And SWOT Analysis

4.1 PESTEL Analysis

We understand that our business is affected by Political, Economic, Social, Technological
Environmental and Legal factors. Below we look at how those external factors may affect our
business and the assumptions we have made in making this business plan.
PESTEL Analysis Assumptions
Political We expect continued political stability and
Changes in agricultural regulations and Tax policy no major regulatory changes in the near
shifts can impact compliance and increase future.
administrative tasks, hence affecting profitability.
Political instability, like protests, could disrupt
operations.
Employment laws and safety regulations in
agriculture also influence business activities.
Adjustments to import tariffs on inputs or
competing products could further affect the
business.
Economical Continuous economic growth and
Interest rates influence the cost of capital, while recovery from COVID-19 are
inflation impacts employee wages and product expected, leading to more
prices, both directly proportional. Economic trends opportunities as disposable
help gauge business sustainability and inform incomes rise and economic
marketing strategies. activity increases

Social
Consumer behavior varies across the country, with Steady population growth and
seasonal peaks in meat consumption, especially increased tourism post-COVID
during the last quarter of the year and holiday are expected, leading to more
festivities. Population health also boosts consumption potential customers and higher
levels. demand.
Government and NGO HIV-AIDS

13
 campaigns are anticipated to
improve public health,
contributing to a healthier
workforce
Technological
Advancements in agri-business, water management, and
livestock production, such as more efficient animal
feeds, are improving livestock productivity. Strong
technical infrastructure enhances production,
procurement, and distribution, reducing waste and
lowering costs.
4.2 SWOT Analysis

Strengths: Weaknesses:

Experience in Livestock Farming: Limited Access to Markets

Indigenous Livestock Breeds Low Productivity
Access to Communal Grazing Land Poor Access to Financial Services
Strong Cultural Heritage Inadequate Water Supply
Limited Value Addition
Opportunities: Threats:

Growing Demand for Livestock Products Limited Change

Support from the Government and NGOs Livestock Diseases
Improved Infrastructure Development Drought
Value Addition & Diversification Market Price Volatility
Climate-Smart Agriculture. Insecurity

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4. Niche Market Analysis

Demand
There is huge demand of red meat in our country and below we outline the potential market.

Market Segmentation
Potential customer groups for red meat are:

Abattoirs & Auctions

The major target abattoir will be Maoi abattoir which will slaughter livestock in bulk targeting
export markets.
Note; That the price of red meat varies throughout the year, as it is affected by factors such as
demand and supply. The price for red meat depends on the grade i.e. quality of the meat. After
livestock fattening, it is expected that our cattle and goats will have the highest quality of red
meat, which is the super grade. We can also sell our cattle and goats at Auctions, which are held
throughout the county during selected days.

Hotels and restaurants

We will supply our livestock to major hotels and restaurants for beef and chevon such as Lake
Bogoria spa who are our neighbors. They buy in bulk to prepare meals for their customers. By
creating and maintaining good relationships with the hotels and restaurants, we will end up
having long term contracts with them. This will create predictable income and stability for the
FCS. Livestock prices when supplying to hotels and restaurants is usually higher than that of
abattoirs.

Butcheries
Butcheries are major buyers, sourcing from small and medium producers. We will negotiate
favorable payment terms, ideally cash. Building strong relationships with butcheries can lead to
long-term contracts, providing stable income for the Fcs. The price of livestock sold to
butcheries is typically the same as for abattoirs. All livestock supplied to butcheries must be
slaughtered at registered abattoirs, in compliance with government regulations.

Organizations
We will supply our cattle to various organizations such as boarding schools, hospitals, prisons
and churches. Selling direct to consumers allows producers to set a price that covers costs and
provides a larger profit.

Individuals
Individuals buy livestock in bulk for various reasons including for parties, weddings and family
functions. Selling direct to consumers allows producers to set a price that covers costs and
provides a larger profit

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5. Production and Operational Strategy
Each production cycle will last 90 days, allowing for 3 cycles annually. We’ll stagger the feedlot
use to enhance distribute revenue evenly and mitigate price and demand risks. Feedlot 1 will
start in Month 1, Feedlot 2 in Month 2, and Feedlot 3 in Month 3. This implies that the livestock
from Feedlot 1 will be sold in Month 3, livestock from Feedlot 2 will be sold in Month 4, and
cattle from Feedlot 3 will be sold in Month 5. Each feedlot will hold 50 bull cattle, purchased at
ksh.40,000, with an average weight of 180 kg per cattle and 100 bucks purchased at ksh.5,000.
Both Cattle and bucks will be fed complete feeds costing Ksh.35/kg. With an 8:1 feed
conversion ratio, for cattle it will need 8 kg of feed to gain 1 kg weight while for goats it will
require 4kg of feed to gain 1 kg liveweight.
Once a cycle concludes, we’ll promptly restock the feedlot with new cattle, ensuring a steady monthly
income stream from the feedlots. We'll purchase cattle directly from farmers at favorable prices, filling
each feedlot with 50 beef cattle. We plan to buy these 50 cattle in each batch, transporting them easily to
our nearby farm. Each animal will weigh around 180 kg, and thanks to our negotiation skills, we’ll
acquire each one for Ksh. 40,000.
We will then buy complete feeds to supplement feeding. The cost for complete feeds is ksh.35/Kg,
meaning a 70Kg bag costs Ksh2,500. We will assume that the feed conversion ratio is 8:1, meaning that
each cattle will need 8Kg of feed for it to gain 1 Kg live weight. Data shows that this is a very realistic
assumption. Our target is for the cattle to gain 120Kg during their stay in the feedlots. Thus, after the 90
days, they should have a live weight of 180Kg + 120Kg = 300Kg.
Since our target is for each cattle to gain 120Kg during the 90 days, it means that:
Average daily weight gain = 120/90 = 1.33Kg.
Since we are assuming a FCR of 8:1, it means that:
Total Feed for each cattle = Total Gain * FCR = 120Kg*8 = 960Kgs.
Feed costs = Total feed * feed cost/Kg = 960 * 35 = Ksh.33,600
We will assume a dressed percentage of 55% dressed weight. This means that after slaughtering
the cattle, its dressed weight will be 55% of its live weight, meaning
Dressed Weight = 0.55 * 300 Kg = 165 Kgs.
After 90 days, the cattle will be supplied to Maoi abattoir. We will assume that the grade of the
beef after 90 days is super grade (that’s the purpose of feed lotting, with the right feed it will
attain this grade), and we will assume that the abattoir will buy super grade beef at ksh 400/Kg.
Thus, each cattle will fetch 165*400= Ksh.66,000

Calculation of the margins

Beef: Maize
We will use concentrates, which will have to mix them with maize, and this ratio will directly
affect the business. Maize is assumed to cost ksh.40/Kg.
Beef: maize = price ratio of beef to maize = ksh.400/Kg:ksh.40/Kg =
This ratio is favorable.
Price Margin

16
Since the dressing percentage is 55%, and the dressed beef price is ksh.400/Kg, it means that the
live weight price at slaughter (sales price/Kg) is 0.55*400= ksh.220. The cost price/Kg has been
assumed to be 120/Kg.
Price margin = Initial live mass * (sale price/kg - cost price/kg)
= 180 * (220-120)
=ksh.18,000/head
=2,700,000 for150 cattle in the first year
The ratio is positive and favorable.
Feed Margin
Cost/Kg gained refers to the cost of feed.
Feed margin = Live mass gain * (sale price/kg - cost/kg gained)
= 120Kg * (400 – (33,600/120))
= 14,400 /head
= 2,160,000 for150 cattle in the first year
This ratio is positive and thus favorable.

Profit Margin
Assume other costs for the 3 cycle (1 year), are 2,500,000. These costs include fixed and variable
costs, but exclude feed costs and costs of buying the cattle.
Profit margin = Price Margin + Feed Margin – Other costs (Excluding feed costs)
= 2,700,000+2,160,000 – 2,500,000
= 2,360,000
This profit margin is favorable. Thus, it makes sense for us to go into the cattle fattening
business.

Estimated Sales Projections

Kamar LFCS estimates that it shall be able to sell a batch of 50 fattened cattle and 100 fattened
Bucks in every 3 months for a total of 150 cattle and 300 goats(bucks) in the first year alone. It will
Maintain the number of animals per value chain in the second year and scale up by 10 animals per
cycle in the 3rd year. This will translate to average annual sales of more than ksh.9,000,000 as
illustrated in the table below.

Assumptions for cattle

Item
Sales Calculation Factors Year 1 Year 2 Year 3
#
A Average Number of Cattle 150 150 180
B Number of feedlots 3 3 3
C Total number of cattle per batch 50 50 60
D Total number of cattle for sale in a year 150 150 150
E Average Initial Weight (KG)/ cattle 180 180 180
F Target Weight (KG)/Cattle in 3 months 300 300 300
G Net Gain 120 120 120
H Feed Conversion Ratio 8 8 8
I Dressed Weight percentage 55% 55% 55%
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J Dressed Weight/Animal 165 165 165
K Super Beef Price IN Ksh /KG 400 400 400
L Total Sales per batch 3,300,000 3,300,000 3,960,000

O Total Sales per Year 9,900,000 9,900,000 11,880,000

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6. Business and Project Management

Board of Directors (Management Committee)

The Cooperative is governed by a management committee of 7 members per its constitution. The
MC oversees the overall business and activities of the cooperative, receives, review and approves
investment proposals from the investment committee and organizes AGMs for members. It
presents new business investment and business proposals for approval by the association

Directors’ Names and Residential Addresses

Executive Position Home/Residential
Committee Address
Executive member-Chairperson Kamar
Jane Chepkwony
Robert Kamar
Kipkurere Executive member-Vice Chairperson

Executive member-Secretary Molos

Emily Chelelgo
Executive member -Treasurer Molos
Simon Kandie
Executive member-Chairperson Advisory Molos
Joseph Chebet sub-committee
Executive member youth Representative Kamar
Geofrey
Kimelgut
Esther Toroitich Member Molos

All the board members live within Kamar,a radius of about 15km.

Advisory Sub-Committee
The subcommittee is responsible for vetting and researching investment ideas from members’
and presenting to the management committee for approval. They are also responsible for
ensuring proceeds from investment projects are accounted for and used appropriately for the
benefit of members/shareholders.

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Project Management and Other Staff
The Fcs MC is responsible for identifying and appointing project manager and farm workers to
ensure all investment projects are appropriately and optimally staffed for profitability. The
Manager is responsible for the day to day running of the Fcs Secretariat and overall staff
performance and management, success of the investment projects and profitability.

Farm Staff
The Cooperative will recruit a Farm manager, accounts assistant, two farm workers and one
security personnel for this project. The Farm Manager will be responsible for on boarding all the
project staff and thereafter the farm manager will be responsible for the identification, purchase,
transportation of the project animals from farmers to the farm. The Farm manager will be
responsible for the day to day running and management of the farm activities assisted by the
farm staff.
The farm manager, assisted by the farm staff will be responsible for identifying livestock traders
who will purchase the fattened animals at the farm, and occasionally for the transporting of the
fattened animals to the livestock market for sale. Farm Animals sales proceeds will be made via
Pay bill or alternatively deposited directly to the Fcs Account by the buyer livestock trader, and
banking slips received by the farm manager as evidence of the sale.

Farm Manager

In conjunction with the Management committee, the farm manager will be responsible for whole
farm strategic and business operations planning, business management including;

 Staff recruitment, supervision and performance management,

 Training new workers

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 Maintenance and repair of facilities and equipment, such as cattle pens
 Day-to-day operational decisions
 Responsible for ordering and purchasing farm tools and equipment
 Livestock sales and banking of proceeds.
 Farm monthly reports to the MC.

Accountant (Part time)

The part time farm Accountant will be responsible for farm Business strategic and operational
planning, business management, accounting and financial management reporting including:

 Review draft farm business plans and budgets

 Analyze business operations, trends, costs, revenues, financial commitments,
and obligations, to project future revenues and expenses or to provide advice.
 Prepare, examine, and analyses accounting records, financial statements, and other financial
reports to assess accuracy, completeness, and conformance to reporting and procedural
standards.
 Develop, maintain, and analyses budgets, preparing periodic reports that compare budgeted
costs to actual costs.
 Compute taxes owed and prepare tax returns, ensuring compliance with payment, reporting
and other tax requirements.

Farm Workers

The farm staff (3) will include; Two feeding officer, one security officer. The farm workers will
be responsible for:

 Putting up and repairing and maintaining farm fences

 Removing shrubs and ensuring hay development is optimal
 mowing grass, hay baling and storage
 Feeding the cattle and goats
 Miscellaneous chores which include include; medicating, vaccinating, repairing equipment,
removing caked litter

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 7. Marketing Strategy
Kamar Livestock Farmers Cooperative aims to quickly build awareness of its business among nearby
abattoirs, auctions, and major towns in the first year. Our marketing strategy follows the 4 P's:
product, price, promotion, and place.

Product
We will offer high-quality, healthy, super-grade beef cattle that meet customer needs. Our business
prioritizes customer satisfaction, believing that happy customers ensure long-term profitability.

Value Proposition
We are committed to strong customer relationships, delivering top-quality products, personal service,
and efficient delivery, while fostering a safe and friendly workplace.

Price
We will strive to keep production costs low to offer competitive prices, with pricing based on the
cattle’s weight and beef grade, influenced by market conditions.

Promotion Strategy
i. Word of Mouth
We will promote our cooperative through word of mouth by delivering high-quality products and
using personal networks within the community, targeting butcheries, abattoirs, and local events.
ii. Fliers
We will distribute attractive fliers to local businesses, schools, and community spaces, providing
details about our products, pricing, and contact information.
iii. Newspapers
Our farm will advertise in daily and weekly newspapers to increase product awareness and reach a
broad audience across different age groups.
iv. Public Transport Advertising
We will advertise on commuter buses in major nearby towns to expand our reach and attract more
customers.
v. Social media Marketing (Facebook, Instagram, WhatsApp)
We will develop a cooperative website to provide product information and promote our farm
online, catering to potential customers and recruitment needs.
vi. Place/Distribution
Our proximity to Maoi Abattoir positions us well for distribution throughout the county, ensuring
easy access to our primary market and wider coverage

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 IMPLEMENTATION PLAN MATRIX

Funding Request
Start-up Costs
Item By Lead person No of Unit Total
When Units Cost Cost
Staff (4) Salary Months Farm Manager 12 20,000 240,000
Farm workers 2030 Management 12 (10,000) 4 480,000

Land Fencing (20 Concrete Polls

Acres) 2030 Management 300 1700 510,000

Chain link 66 8500 561,000

Labor & other expenses - - 350,000
Gate 1 50,000 50,0000
Construction works Feedlot Construction Management
2030 - - 2,200,000
Feeding troughs
- - 450,000
Water troughs
- - 300,000
Ramp
- - 130,000
Weighing platform/scale
- 450,000
Spray Race
- - 450,000
Construction of FCS
- 600,000 600,000
Office
Electricity Connectivity
2027 Management 50,000 50,000

Farm Machinery Farm Tractor &

2025 Management 1 3,500,000 3,500,000
Ploughing Disc
Farm tipping trailer
1 750,000 750,000
Water bowser (5,000L)
1 350,000 350,000
Mower
1 1,000,000 1,000,000
Water storage tank
2025 Management 1 80,000 80,000

Feeders (Cattle for fattening) purchase per

2025 Management 50 40,000 2,000,000
Batch
Feeders (bucks for fattening) purchase per 100 5,000 500,000
Batch
Hay production (20 acres) 20 33,000 660,000
Supplementary Animal Feed 50 2500 125,000
Veterinary & minerals Supplies 400 1000 40,000
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Water bills @ 50l per head per day - - 22,500
Repairs and Maintenance 1 20,000 20,000
Marketing and Advertising 2025 Management 12 2500 10,000
Farm Fuel/Transport 12 5000 60,000
Livestock Insurance 19 16,820 319,580
TLUs
Other Expenses 12 1000 12,000

Start-up Costs Grand Total ksh. 16,720,080

Kamar Livestock FCS Equity Capital 300,000

Loan Requested 16,720,080

The table above shows that the total cash capital required to successfully do this project is ksh..
16,720,080. Kamar Cooperative will contribute both in-kind and cash to the feedlot business.

Collateral / Security

Collateral / Security Approximate

Value in Ksh.
Title deed of FCS land 16,200,000
Baler machine 1,200,000
6,000 Bale capacity Hay shed 3,000,000
Total 20,400,000

Inputs Costs per Cycle

Feed Requirements Calculator Year 1
Total Feed Required (KG)/Cycle/head 960kg
Price per KG Ksh.35
Feed Cost/head Ksh.33,600
Inputs, Costs, Forecasts per head per cycle Notes Cycle 1
Feed Cost per head 33,600
Veterinary & Salt Supplies Cost per head 2,000
Feeders (Cattle for fattening) Cost per head 40,000
Transport to the farm (After buying feeders) Cost per head 500
Transport to market (To sell fattened cattle) Cost per head 500
Water bills ( 50 Litres /head /day * 90 days) Cost per head 500
Total Inputs Costs/head/per cycle 77,100

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Revenue Projections for cattle
Item
Sales Calculation Factors Year 1 Year 2 Year 3
#
A Average Number of Cattle 150 150 180
B Number of feedlots 3 3 3
C Total number of cattle per batch 50 50 60
D Total number of cattle for sale in a year 150 150 150
E Average Initial Weight (KG)/ cattle 180 180 180
F Target Weight (KG)/Cattle in 3 months 300 300 300
G Net Gain 120 120 120
H Feed Conversion Ratio 8 8 8
I Dressed Weight Percentage 55% 55% 55%
J Dressed Weight/Animal 165 165 165
K Super Beef Price IN Ksh /KG 400 400 400
L Total Sales per batch 3,300,000 3,300,000 3,960,000

O Total Sales per Year 9,900,000 9,900,000 11,880,000

INCOME STATEMENT PROJECTIONS FOR THE 1ST CYCLE (FIRST 3

MONTHS)

Bull sales Kshs.3,500,000

Bucks’ sales Kshs 320,000

Sale of Hay Kshs 250,000

Baler services Kshs 60,000

Mower tractor services Kshs 300,000

Total revenue Ksh. 4,430,000

Expenses

Feeders (Cattle for fattening) purchase 2,000,000

per
Batch
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 Feeders (bucks for fattening) purchase per 500,000
Batch
Hay production (20 acres) 660,000

Supplementary Animal Feed 125,000

Veterinary & minerals Supplies 40,000

Water bills @ 50l per head per day 22,500

Repairs and Maintenance 20,000

Marketing and Advertising 10,000

Farm Fuel/Transport 60,000

Livestock Insurance 319,580

Other Expenses 12,000

Total expenses Ksh. 3,769,080

Income before tax

Ksh.660,9920

Break-even Analysis

Breakeven point units is the number of cattle we need to sell per annum for us to cover all our costs (fixed
and variable costs) i.e., to break even. The breakeven point will be reached when revenue equals all
business costs. For Kamar Livestock Farmers Cooperative Society break-even point will be September
2028

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STAKEHOLDERS AND PARTNERS.
The enterprise will engage several stakeholders and partners for the success of the business
STAKEHOLDER RESPONSIBILITY
1 Regional Pastoral Livelihood Regulate and facilitate sustainable Pasture production
Resilience Project and conservation
2 Baringo County Government Capacity building and training, shows, and exhibitions
(MOAL&BE)
3 Public health Promoting and improving public health relations
4 National Environmental Ensure environmental conservation and social
Management Authority safeguards
5 NDMA Capacity building and training on technology
adoption.
Donated a baler machine to Kamar Livestock FCS
6 KCSAP Breed improvement
Food security and diversification.
7 DRIVE Livestock insurance and livestock project financing
8 SDI Climate change and soil conservation interventions
9. FSRP Food security and agricultural diversification
10 Kamar Livestock FCS Members/ Ownership and implementation of the project
. community

8. Risk and Mitigation Measures

To ensure farm business profitability and effective management of its financial responsibilities,
Kamar Livestock FCS will implement the following effective risk management practices.

RISK MITIGATIONS
Drought and Water Scarcity: Baringo Establish water storage systems (e.g.,
County is prone to dry spells that can lead rainwater harvesting and dams) and explore
to water shortages, impacting feedlot alternative water sources, such as
operations and animal health. boreholes. Implement water recycling and
rationing measures.

Disease Outbreaks: High stocking density Practice good biosecurity, vaccinate

can lead to disease spread (e.g., Foot-and- animals regularly, and maintain quarantine
Mouth Disease, Lumpy Skin Disease). procedures for new arrivals.

Market Price Fluctuations: Variations in Diversify marketing channels and establish

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livestock prices may impact profitability, contracts with buyers to stabilize demand
especially during periods of low demand and prices. Consider adding value (e.g.,
processing meat) to increase revenue
streams

Feed Price Volatility: Prices for feed Secure contracts with local feed suppliers,
ingredients like maize or hay may rise, diversify feed sources, or grow some feed
increasing production costs. crops on-site. Consider formulating feed to
optimize cost-effectiveness.

High Operating Costs: Feedlot expenses Adopt efficient feeding systems and
such as labor, feed, veterinary services, technologies to reduce waste. Regularly
and transportation can be high train staff on operational efficiency and
maintenance to reduce costs.

Conflict with Pastoralist Communities: Engage local communities by creating

Livestock-keeping communities in partnerships and employment opportunities.
Baringo may see feedlots as competition Implement Corporate Social Responsibility
for grazing areas and water. (CSR) projects (e.g., water-sharing
agreements).
Invest in secure fencing, employ local
Security Concerns: Theft and cattle security personnel, and consider
rustling are challenges in some parts of partnerships with local law enforcement.
Baringo

Unpredictable Weather Patterns: Climate Invest in climate-resilient infrastructure and

variability may impact feed crop yields practices, such as drought-resistant feed
and increase animal health issues. crops and heat-stress management for
animals.

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9. Appendices

12.1. Registration Certificate

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