Project Nebo Nigeria

Business Plan

Master Plan

Conceptual Design

Tender

Implementation

Commissioning

Operations

Agenda

1. How did it all start 2. Contract Negotiations 3. Operating Environment 4. Milk Production in Nigeria 5. Market Characteristics 6. The Project 7. Financial numbers

Who am I?

Born in 1957 in St. Thomas (USA) Married to Natalia (Russian) and have two sons Grew up in Nigeria and Ghana (1962 – 1969) Sent to boarding school in Denmark (1969) Parents retired in 1990 Responsible for international activities at a major

Danish consultancy company Master degree in Civil Engineering (1986) Established MyAdvizor in 2013

How did it all start?

1. Telephone call (Abel Dangana) 2. Agent Agreement 3. Invitation to visit Denmark

• Former Chief of Airstaff 4. Meeting with the Mayor of Furesø (Political connections) 5. Minister of Power

How did it all start? How did it all start?

How did it all start?

Contract Negotiations How they were conducted

Operating Environment PESTEL Analysis

1. Political 2. Economical 3. Social 4. Technology 5. Environmental 6. Legal

Milk Production in Nigeria Production (Demand)

• Milk available - 1,500 million liters –locally produced and imported

• Between 1% and 15% of the total demand is produced locally

Milk Production in Nigeria Consumption per capita

Milk Production in Nigeria Consumption per capita

Market Charateristics

Competitor - sector Market share

2012

Traditional producers 19.31%

Large Scale Dairy Farma 4.83%

Large scale processors

75.86%

Imports

Main Players Function Market Products

Traditional Producers

(Fulani Pastoralists)

Traditional

production, some

also processing,

marketing and

distribution

Low income –

Rural areas

Madara (fresh milk)

Nono (sour milk)

Kindirmo (sour yogurt)

Maishanu (butter)

Cuku (Cheese)

Wara (Cheese)

Wagashi (Cheese)

Large-Scale Dairy

Farmers

Production, some

also processing,

marketing and

distribution

Higher income –

Urban areas

Fresh milk for further

processing

Yogurt

Butter

Cheese

Large-Scale Processors Distribution of

finished products,

Processing from

imports and local

supply, marketing

and distribution

Higher income –

Urban areas

Evaporated milk

Powdered milk

Baby formula

Yogurt

Butter

Ice Cream

Cheese

Imports Distribution of

finished products

Higher income –

Urban areas

Full cream

Butter

Cheese

Skimmed

Fresh

Others

Market Charateristics Price level

Product Selling (USD) Selling (DK)

900 g milk powder 9.30 65,0

400 g milk powder 2.8 – 4.5 19,0 – 30,0

500 g yogurt 1.6 – 2.0 11,0 – 13,5

1 l yogurt 3.2 – 4.0 22,0 – 27,5

1 l whole UHT 1.7 – 2.1 11,5 – 14,0

200 g butter 3.2 – 3.6 22,0 – 24,5

1 l fresh whole milk 4.3 29,5

The retailer purchasing price for butter is DKK 18,0 and fresh whole milk is DKK 20,5

The Project

The Project

Financial numbers CAPEX

Investment Total, USD

Dairy farm

Farm buildings 1.850.000

Farm technology and inventory 970.000

Milking parlor, incl. building and equipment 540.000

Feeding storage 470.000

Waste storage 270.000

Farm equipment 250.000

Field machinery 705.000

250 pregnant heifers, young heifer calves and bulls 1.700.000

Dairy farm total 6.800.000

Dairy Plant total 1.800.000

Civil Works total

d

1.600.000

Administration total 1.300.000

Unexpected costs 10% 1.100.000

CAPEX TOTAL 12.600.000

Financial numbers OPEX

Amount year 3 USD/unit Total USD

Revenue

Milk, 3,5% 810.000 kg 2.5 2.025.000

Milk, 1,5% 774.000 kg 2.5 1.935.000

Butter, 250 gr 33.200 kg 3.5 465.000

Sales cattle 160 500 80.000

Revenue Total 4.540.000

Cost

Variable Costs 1.200.000

Other costs 500.000

Total cost 1.710.000

EBITDA 2.800.000

Depreciation 970.000

EBIT 1.800.000

Interest 120.000

Profit before tax 1.690.000

Financial numbers Pay-Back

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