HORTICULTURAL FARMING PROJECT

BUSINESS PLAN

OTJIARI MARU INVESTMENTS (PTY) LTD

P O Box 211108
Gaborone
Tel/Cell: 72227716

IN PARTIAL FULFULLMENT OF THE REQUIREMENTS OF ISPAAD MOCHUDI

TABLE OF CONTENTS
1 | Page

EXECUTIVE SUMMARY.. 3

MANAGEMENT PLAN 4

PROJECT SITUTION ANALYSIS.5

CROPING PLAN15

MARKET ANALYSIS18

TARGET MARKET........19

PROMOTION21

SWOT ANALYSIS..22

IMPLEMENTATION SCHEDULE..23

FINANCIAL PLAN...24

APPENDIX Quotations
_ Otjiari Investment profile
_Lease agreement
_Copies of IDs
EXECUTIVE SUMMARY
2 | Page

This project is the brain child of Mr. Abel Rukumba, Mrs. SarikiRukamba and
AnnahNdolo who are the managing directors of OtjiariInvestments (Pty) Ltd. The
project is currently producing cabbages, butternuts, tomato, rape and maizeon a
7hectors farm in Morwa, Ramosesane.Success has been recorded in several areas
of the project ensuring a remarkable clientele base and sales. Against this
background, the directors have established the need to expand on production
focusing only on butternuts, tomatoes and cabbages and have resolved to lease a
10 hectorfield which is adjacent to the companys farm. This would subsequently
mean an increase in the area of land under use to 17hectors and the need to
acquire more equipment. Moreover, water rights issue has prompted Otjiari
Investments to look for another field. The promoters have tried in vain to acquire
land in Kgatleng District. They have now opted for renting farms along the
Notwane River. They will be renting 10 hectares from Mr. Justice Thamage. They
will be producing Butternuts, Cabbage, Tomatoes and Onions as major crops. Mr.
Thamage has got 13.5ha of land for vegetable production and has got water rights
from the said river.
MISSION
To provide the highest-quality horticultural produce; existing to attract and
maintain customers.
VISION
To gain a respectable position in the horticultural market, in the country and
beyond.
OBJECTIVES
Our objectives are in line with the objectives of the government through ISPAAD:

To increase production level of our horticultural products.

To create employment opportunities.

To contribute to the economic development of this country

To assist the government in its effort of economic diversification

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To contribute towards the reduction of Botswanas heavy reliance on food

imports

To contribute towards food security in Botswana

To diversify our produce and minimize risk of failure.

To improve our competitiveness in the horticultural industry and gain

respectable status

PURPOSE
The purpose of this business plan is to secure a grant of P 185,339.06 from
ISPAAD; Horticultural Enterprises Support Programme.

MANAGEMENT PLAN

NATIONALIT

NAME

D.O.B

Abel Rukamba

25/02/65

Motswana

SanikiRukamba

14/06/69

Motswana

34372075

Active Director

AnnahNdolo

14/09/84

Motswana

47228916

Share Holder

ID NO.

12881190
2

POSITION

Active Director

PROFILES OF PROMOTERS

The promoters of this project have got vast experience in commercial vegetable
production. Mr. Abel Rukamba is a BSC Degree holder in Agriculture, with more
than 25 years in vegetable production. In 1989 to 1991 he worked for Botswana
Development Corporation subsidiary farms in Tuli Block at Seleka Farm. He
worked for two years and amongst his duties as a deputy farm manager he was the
Horticultural Superintendent thus managing vegetables and fruits (citrus). Seleka
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farm being a subsidiary of Botswana Development Corporation was one of the most
enterprising farms, if not the best in Tuli Block by then in commercial vegetable
production. Towards the end of 1990 he was recruited into the National Army,
Botswana Defence Force to run its agricultural activities. In his service at the BDF
he managed Pitsane Farm where he established a commercial dairy project and
horticulture. He also spearheaded backyard gardening which the BDF is well
known for to date. He is still administering Commercial Agricultural activities in
the Botswana Defence Force running agricultural activities.
Mrs. Saniki Pearl Rukamba is a keen vegetable producer with vast experience in
vegetable production. She is a major partner in the business. Mrs. Rukamba is a
BSc Degree holder in Home Economics. She covered vegetable production as a
course and has hands on experience in vegetable production. During her study at
University of Swaziland University she got hands on experience through the
internship in the local farms as a requirement by the University.
Mr. & Mrs. Rukamba are amongst the few Batswana who have always have always
been keen to promote commercial vegetable production despite the limitations and
challenges that go with establishing such an enterprise.

PROJECT SITUATION ANALYSIS

CURRENT SITUATION
OtjiariInvestments (Pty) Ltd is a lease of 10 hectares farm from Mr. Justice
Thamage in Mochudi. at P500 per month with an annual increase of 10% per year.
Otjiari Investments was granted permission from OabanaMasonyas Water Rights
to draw 120m3 of water from Notwane River, Boretheng.
PROJECT LOCATION

5 | Page

This project is being carried out in Morwa Village (Lekatina) , and the farm is
located along Notwane River (Perennial) and 100 meters away from the tarred
road, hence easy accessibility.
PRODUCTION PARAMETERS
TOMATO
Tomato (LycoperciconEsculentum) is the next important vegetable crop next to
potato. It is a cosmopolitan cropthus found world wide. Its uses are also varied
from fresh fruit, salad, garnish to soup depending on the users preference. Tomato
is a warm season crop but its importance to human diet has influenced researchers
to come up with varying methods and structures in which a tomato can be
cultivated. This has also permitted tomato production to be done in varying
environments such as open field, shed net, plastic tunnels and green houses.
Theses structures and environments have also been modified to suit backyards.
Otjiari Investments will cultivate tomato under open field and consider any
structure after some gains. Thus will concentrate on an open field varieties, which
will be suitable to local environment. Extensive research has been done tomatoes
such that the farmer is spoiled with choice. These research has been varied from
time to time of mature, disease and pest resistance tomarket preference. So Otjiari
Investments will concentrate currently on three major varieties Zeal,Zest & Star
9008. Which are determinate and indeterminatevarieties. Zeal and Zeal have
proved to perform extremely well under local climatic conditions.

TOMATO CULTIVATION
Tomato can be grown on a wide range of soils but a well-drained, light loam soil,
with PH of 5 to 7 is preferred. Water logging increases the incidence of diseases
such as bacterial wilt and others. The fertilizer requirements for tomato is very
much influenced by the type of soils. Loam soil will need less fertilizer than sandy
soils. Averagely fertilizer requirements for a tomato plant would range from 100 to
150 kg/ha of Nitrogen (N) to 110kg/ha of phosphorus (P) to 160 to 240 kg/ha
Potassium (K). But for commercial tomato production soil tests is a must. Micro
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nutrients such as calcium (most important) sulphur, boron and magnesium also
play a major role in determination of commercial yield.
Otjiari Investment will practice a fully balanced nutrient mixture known as
hygroponce. The main reason being it is quite are reliable practice of ensuring that
your plants have been fed with the right type of plant feed. It is also easy to use
and quite adaptable to crop cultivars and varying climate conditions and seasonal
changes is inter-alia an economic practice. It leads to economic yields. Total water
requirements after transplanting of a tomato crop grown in the field for 90 to 120
days, ranges from 400mm to 600mm depending on the climate. water supply
directly relates to the use of the product, for example , high yields of salad
tomatoes are obtained by frequent, light irrigation. Regular irrigation leads to dry
less, juicy fruit and often results cracked fruit which is not marketable for high
yield and good quality, the crop needs a controlled supply of water throughout the
growing period. Tomato yields vary from 65tonns/ha to 200 tons/ha depending on
variety and structure in which the plant is grown.

CULTURAL PRACTICES OF TOMATOES

Cultural Practices of tomatoes include the following, weed control, pest & disease
control, pruning & support. Weed Control is a must since weeds determine the
yields. So weeding will be done manually. While pest and disease control will be
chemical, though some integrated control measures will be maintained throughout
the growing season.
Pruning and support will be done as and when necessary. As stated above the
major varieties to be grown are zeal, zest and star 9008. These varieties vary from
determine, indertemine to very short season or very determine.
Frost covers will be used to cover tomatoes in winter to ensure they are safe from
adverse winter temperatures. This will ensure continuous, annual production of
tomatoes. The average price Otjiari Investment will be selling their tomatoes is P6
per kg.
CABBAGE
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Cabbage (BranscicaOleracia vanity capitata) is a cosmopolitan crop, thus grown

worldwide. It is one of the major salad vegetables. Its uses are from the fresh
(salad), cooked (morogo-in local terms), dried and mixed with other vegetables.
And also as a frozen mixed vegetable.
For high commercial production the crop requires a cool, humid climate. But
intensive research has lead to cabbage to be produced throughout the year. The
length of the growing period varies between 90 days and 200 days, depending on
climate, verity and planting date.
Throughout cabbage can perform very well on varied temperature ranges. It grows
best under cool moist conditions. The optimum temperature for growth is 18C
with an average maximum of 24C and a maximum 15C. Generally young plants
will withstand extreme temperature better than older ones.
Generally the heavier loam soils are more suited to cabbage production. Under
high rainfall conditions sandy or sandy loam soils are preferable because of
improved drainage. The fertilizer requirements are high, especially nitrogen, that
means in local conditions a lot of manure should be added to increase soil fertility.
Moreover to supplement lacking elements it is essential for good growth and yield.
The head size of cabbage is dependent on nitrogen amounts in the soil, so it is
essential to regularly top dress with nitrogen fertilizers such as urea and LAN
(limestone Ammonium Nitrate)
Cabbage is moderately sensitive to soil salinity. Yield decrease due to soil salinity.
Yield decrease due to soil salinity at different levels. Thus extremely saline soils
should be avoided. A soil salinity test is a panacea to a commercial cabbage
production.
Water requirements vary from 380 to 500mm depending on climate and length of
growing season. So water should be distributed throughout the growing period of
cabbage. But the critical water period is during lead formation, in other terms
during flowering period. If water limitation is experienced at lead formation yield
will be tremendously affected. As mentioned above water distribution should be
observed. that leads to good irrigation scheduling, depending on climate conditions
8 | Page

and crops development stage. In summer the irrigation interval should not be more
than 2 days and in winter 3 days intervals to be maintained.
Cabbage permits any method of irrigation furrow sprinkler and trickle irrigation.

CABBAGE PRODUCTION PRACTICES

Cabbage production practices to be performed by Otjiari Investments include
planting and care of transplants , spacing, fertilizer application , irrigation, pest
and disease control and harvesting. Good transplanting practices lead to good
yields. Before transplanting the soil must be well ploughed thus deeply ploughed
and leveled. After ploughing the soil furrows of about 35cm are dug at 1 meter
apart and filled with manure and covered. Then drip lines are going to be laid
along the furrows and water at least twice before transplants are put. Then
spacing of cabbage is marked out, at 45cm along the furrows. The 45cm points will
be marked out throughout the hectare since those are the points where the plants
will be planted. Holes will be punched to identify the exact points and the
transplants will be planted in these holes. Before putting the transplants or plants,
curretor (carbufuren) will be put into the hole, at about 5ml. Curretor is for control
of bargrada bug which is one of the serious pests of cabbage. And it highly
determines yields. The pest leads to poly heads of cabbage seedling and its control
is important within the first four weeks of transplanting.
*Note: Polyheads are not economic and cannot be sold, thus affect overall yields.
After placing the seedlings in the holes, the hole is well covered with the soil.
During transplanting irrigation is continous at least to field capacity and beyond.
curretor will be effective for 21 days from transplanting and will effectively control
Bargrada bug and other pests like aphids and caterpillars of Diamond Black Moth
and Greater Cabbage Moth. But for essential control of pests at least within 24hrs
of transplanting the plants will be spray

withmethomil which is also a general

pesticide.
Within a week of transplanting manual application of LAN. This is applied 3-5cm
from the planting by punching a hole putting the fertilizer and cover it. This
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practice will be done for 3 weeks consecutively. Then the remaining 5 weeks a
fertigation of urea is done at weekly intervals. At 50kg of urea weekly.
Irrigation will be at least at 2 days interval depending on stage of the crop and
climatic conditions. Pest control will be by both chemical and cultural. Thus 3 day
intervals of chemical pest control with Thamidol (Methamidofos) and methomix
(methomyl) alternating the chemicals and good crop sanitations practices will be
ensured to maintain a healthy environment for plant and also control of diseases.
Harvesting of cabbage is done by cutting of the ripened head of the plant or by
uprooting the whole the plant and cut off the head with a knife. Cabbage is ready
for harvesting after 65-90 days depending on the variety. Initially Otjiari
Investments will concentrate on 2 varieties, namely Star 3301 and Tenacity. These
will be harvested on demand. estimated plant population is about 35,000 45,000
per hectare.
Weeding is the major good cultural control since it determines crop yields directly
and indirectly. If weeding is not carried out control of pests is impossible and
disease outbreak are also quite eminent. weeds also suffocate young plants and
hinder proper growth and also leads to low yields . So weed control manually is
imperative. That is hand weeding will be carried out whenever necessary, to
ensure absolute weed control.
The price for cabbage is normally very low in winter and high in summer. So the
P6 per head is an average price.
BUTTERNUTS
Butternuts are a part of the variety of cucurbits; squash.
Shape; Thick neck, swollen ball at flower end.
Size; 1kg
Skin Colour; buff
Flesh Colour; Orange
Days to maturity; 80 100 days

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These are allowed to mature on the plant. The skin should be tough and not easily
scratched. Butternut may be packed in orange pockets, or hessian potato bags.
Butternut can be stored for several weeks after harvest , if picked when mature
(Butternut 2 - 3 months). For storage, only completely ripe fruit are suitable. Cure
at29o to 32oC for 2 weeks or a month at room temperature, then keep in a single
layer (not stacked)in the shade.

A cool well ventilated place is recommended,

ideally 6 13oC. Fruit harvested in late autumn may be stored for 3 - 4 months.
Remove any rotting fruit from the store.
Recommended Planting Space

Crop

Between Rows

Between Plants

Butternut

1.8m

90cm

Department of Agricultural Research, Botswana, 2003

Recommended Sowing Dates for Cucurbits Department of Agricultural Research,

Botswana, 2003

Pumpkins & Squashes

CROP

REGION

MONTH
J

Cold
Areas
(May*Aug
ust)
Mild

Areas
(June*July
)

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Frost Free
Areas

Butternut (under Squash) can be sown as soon as frost danger is past. In frost-free
areas butternuts are best grown as winter crops. Best months for Sowing are as
stated in the table above
Water Requirements for Butternuts

Days
Planting

from

Irrigation
Requirement(mm)

Winter
Irrigation
Interval (Days)

Summer
Irrigation
Interval (Days)

7.8

31 70

15.6

12

71 110

23.4

111 maturity

31.2

0 30

Department of Agricultural Research, Botswana, 2003

YEILDS
CROP

YEILD

SIZE / Ha

Butternut

11 40 tons

Department of Agricultural Research, Botswana, 2003

ONION
Type; Bon Accord
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Bulb shape: Globe

Bulb size: 135g
Storage: Good
Bolting: Moderately Susceptible
Yield: 64t / ha
Early Planting: Not Suitable
Climatic Requirements
Cool temperatures are required during the first part of the growing season. When
the plants start to form bulbs and especially during harvesting, warmer
temperatures are preferable. Onion varieties are very sensitive to day length and
temperature.
Soils and Fertilizer Requirement
Onions can be grown on nearly all types of soils, ranging from sandy loam to clay
soil.

The best results are obtained from a sandy loam soil.

Clay soils are not

satisfactory unless well supplied with humus to loosen them up. Soil should be
well drained and have a minimum depth of 60cm. The pH of the soil should be
within the range of 5.0 to 6.5. The onion plant is very sensitive to both high acidity
and salinity and as such yields can vary over a fairly narrow range of soil pH. Soils
that are more acid should be limed and the amount of lime to be applied must be
determined after soil analysis. The lime must be ploughed in at least four weeks
before the onions are planted. 63 kg/ha N, 94 kg/ha P and 63 kg/ha K (e.g. 2:3:2
(22) + 1% Zn at the rate of1000 kg/ha) should be applied as an initial pre-planting
application. The plants should be top-dressed with a nitrogenous fertilizer at a rate
of 64 Kg/ha, 4 to 6 weeks after transplanting or 12weeks after direct sowing.
Time of Planting
We are going to plant as early as possible in order to market the crop when the
prices are high.

But early sowing generally increases bolting (flower stalk

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production), thick necks and double bulbs, whereas late sowing reduces these
defects but also reduces bulb size and yield.
(a) Setts
Sets should be planted from the middle to the end of February. Sets should not be
planted later than that because the other two cheaper methods can be used.
(b) Direct drilled onions
The best yield is obtained when seed is sown from the middle of March to the end
of March. However Pyramid and Granex can be sown as early as from 1st March.
c) Transplants
Pyramid and Granex 33 can be sown in the seedbed as early as from 1st March to
the middle of April, whereas Texas Grano 502 PRR and Bon Accord should be sown
from the middle of Marchup to the middle of April as they are likely to bolt if sown
too early.
Weeding and Cultivation
For the successful growing of onions, weed control is essential, especially during
their early development. Onion seedlings are poor competitors with weeds. The
removal of weed by hand between the plants is the cheapest method if labour is
available. However, because of large plant population the effectiveness of hand or
mechanical weeding is a problem, especially for the direct sown crops. Herbicides
such as Dow Mamba 480SL will be used
Irrigation
Onions are a shallow-rooted crop and require frequent light irrigation. A rooting
depth of 30 cm can be assumed, and soil in this zone must be kept moist. For the
first 6 weeks after direct drilling and for the first week after transplanting,
watering must be very frequent (every 1 - 2 days) to establish the crop. After the
crop is established watering should be as follows:
0 to 8 weeks 12 mm/wk
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9 - 12 weeks 15 mm/wk
13 - 16 weeks 20 mm/wk
17 - 20 weeks 27 mm/wk
These are actual water requirements of the crop and allowance should be made for
irrigation efficiency when deciding how much water will be required (70%
efficiently with sprinklers, 50 -60% furrow). These figures are for the Gaborone
region. Onions are very sensitive to salinity and saline water will not be used for
irrigation. If a crust is formed by irrigation on the surface of the soil, it will be
broken as soon as possible and with a minimum injury to the plants.
Harvesting
Time to Maturity
Because onions are day-length and temperature sensitive only a limited sowing
period is possible. The harvesting period can be extended by the use of different
planting methods (i.e. setts, direct sowing, transplants).

Use of sets has been

successful in Gaborone region giving bulbs for June - August harvesting from a
February planting.
region)

From March sowings transplants take 200 days(Gaborone

to maturity.

Direct sown onions usually mature3 to 4 weeks before

transplants sown at the same date.

Harvest Period
Onion leaves fall over when the bulbs are mature and ready for harvest. Once
onions are mature they should be harvested.

The marketing season can be

extended by storage for up to three months after harvesting. On good soils yields
of over 60/ha are possible. However, 40t/ha is more typical. Onion setts generally
give lower yields of about 30t/ha. Yields are substantially reduced if sowing is
delayed. Onions can be harvested at different growth stages for marketing as
follows:
Green onions
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Harvesting usually begins when 10 - 25% of the plants (leaves) have fallen over.
They are made into bundles with leaves on and are the first to be marketed.
Partly mature crop
The bulbs are lifted and left to dry for about a week. This is usually done when 50
to 75% of the leaves have fallen over. The tops are cut off in the field and bulbs
marketed in 10 Kg orange pockets.
Stored crops
These must be thoroughly dried, usually on the land where they have been grown.
Up to 10rows can be drawn together in one wind-row so the leaves of the onion
protect the bulb from the direct sunlight.

Sun burnt bulbs will not store well;

hence it is not advisable to use late(November and December) harvested crops for
storage.
For bulk storage, trim stems when bulbs are dry and lay them 1 - 1.5 meters deep
on a wire mesh floor.

For good storage bulbs must be kept dry and adequate

ventilation ensured. An open-walled shed or crib is recommended. Stored onions

should be inspected from time to time for development of storage disease. The
most common are bacterial soft rot (a watery rot of the bulbs) and a black fungal
growth on the scales caused by As pergillusniger. These diseases can spread very
rapidly, therefore infected bulbs should be removed. If the right variety is chosen
and storage conditions are good, onions can be kept in store from September till
March or April. If stored longer than this onions are likely to sprout with the onset
of cooler weather.
CROPPING PLAN.
The project will follow a five years cropping plan and the plan will be as attached.
This plan will be changed if the need arises.
YEAR

CROP

PERIOD

ACTIVITIES

Year I

Tomatoes

December to February

Transplanting
Production

&

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March to April

Tomato
Harvesting,
Distribution to the
market

October to November

Transplanting
Production

May to July

Production

August to September

Harvesting
Distribution
market and
preparations

September to November

Production Period

December to January

Butternuts
harvesting/Distribu
tion to market and
land preparations

February to May

Production Period

June to August

Butternuts
harvesting/Distribu
tion to market and
land preparations

Tomatoes

January to February

Harvesting
Distribution
market and
preparation

Butternuts

September to November

Production Period

December to January

Butternuts
harvesting/Distribu
tion to market and
land preparations

March to August

Planting
&Production
Period

September to October

Harvesting
Distribution
market

Cabbage

Butternuts

Year

II

Onions

&

/
to
land

/
to
land

/
to

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Year III

Cabbage

November to December

Transplanting
&
Production Period

Cabbage

January to February

Harvesting
&
Distribution To The
Market

August to October

Transplanting
&
Production Period

November to December

Harvesting
/
Distribution to the
market,
Land
Preparation

March to May

Transplanting
Production

June July

Harvesting
/Distribution. Land
Preparation

October to December

Production Period

January

Butternuts
harvesting/Distribu
tion to market and
land preparations

February to July

Production Period

August to September

Onions
harvesting/Distribu
tion to market and
land preparations

October to December

Production Period

Tomatoes

Butternuts

Onions

Year IV

Butternuts

January

Onions

&

Butternuts
harvesting/Distribu
tion to market and
land preparations

January to June

Planting
&Production
Period

July to August

Onions
harvesting/Distribu
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tion to market and

land preparations
Tomatoes

Year V

Cabbage

Onion
Tomatoes

September to November

Transplanting
&
Production Period

December to January

Harvesting
/
Distribution to the
market

February to April

Transplanting
/
Production Period

May to June

Harvesting
/
Distribution to the
market
/
land
preparation

July to December

Planting
/
Production Period

March to May

Transplanting and
production period

June to July

Harvesting
/
Distribution / Land
Preparation

CHEMICALS/FERTILIZERS MANAGEMENT
Since the inception of this project we have always been conscious about the
environment and emphasized the importance of proper use and management of
chemicals in the farm. Chemicals are always stored in a lockable place and are
administered by trained personnel to avoid unnecessary spillages which might
result in affecting the environment. We will continuously adhere to Botswana AgroChemical Act Cap 35.09

MARKET ANALYSIS
According to MoA statistics of 2013 / 2014 the local production for butternut and
onion was 1950.85 tons and 4546.81 tons respectively while imports were 4337.43
19 | P a g e

tons and 3871.01 tons for butternut and onions respectively. As shown below there
is high demand in the country for horticultural produce, which is then fulfilled by
the high percentage of imports.

2013/2014 MoA Local Production/Import statistics:

Crop

Loc. Prod (t)

G/Mealies

275.10

Potatoes

3536.74

11 457.87

14 994.6

Cabbage

6407.26

4 337.43

10 744.69

59.63%

40.37%

Butternut

1950.85

609.70

2 560.56

76.19%

23.81%

2 147.91

2 831.54

24.14%

75.86%

10 027.32

48.89%

51.11%

Green Pepper
Tomato

4901.88

Garlic
Onion

683.63

6.38

Tot Cons (t) Loc Prod%

12 605.00

5 125.44
-

4546.81

Sweet Potato

Import (t)

12 880.10

3 871.01
354.56

2.18%

23.59%

8 417.82
365.94

Import%
97.9%
76.41%

54.01%
1.74%

45.99%
98.26%

CURRENT MARKET
Otjiari Investments (Pty) Ltd is currently supplying to the following clients:
1. Choppies
-

Mogoditshane
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Mochudi

Gaborone Station

Tlokweng
2. VegieLand
3. Botswana Horticultural Market
4. Fruit & Veg City - Mogoditshane

TARGET MARKET
These are people who appreciate buying straight from the
Individuals

farm. This group of consumers is more likely to make their

visit to the farm instead of going out to buy from
supermarkets, and generally cuts

cost across all the

socio/economic classes.
Hot Chicks, Rodizio, Linga Longa, PrimiPiatti, Curry Pot,
Restaurants

Bull & Bush, Barcelos, Dros, Moghul, News Caf, Red

Lantern, Wimpy, Tripple R.
Choppies, Payless, Spar, OK Foods, Pick n Pay, Food Mart,

Supermarkets

Pop Inn, Shoprite, Supa Save, Tshipidi, Oasis, Checkers,

Marang.
Cresta Lodge, Innisfrees Apartments, Yarona Lodge, Big

Lodges

Five, Bluetown Lodge, Jonas Inn, Debswana Lodge, Kabong

Villa, Kgale View Lodge, Victoria Lodge.

Hotels

Educational
Institutions

Grand Hotel, Cresta President Hotel, Gaborone Hotel,

Mogo Hotel, Grand Palm Hotel.
University

of

Management,

Botswana
Limkokwing,

Academy
GIPS,

of

Business

Botlhale

English

Medium, Candar Academy and Technical college,

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Hospitals & Clinics

Marina Hospital, Gaborone Private Hospital, Reproductive

Health Services and Family Health Clinic.

Government

BDF, Institutions, Events & Ceremonies.

PRICING
CROP

PRICE P/KG

Butternut

20.00 per 10 kg bag

Cabbage

5.00 per head

Tomato

6.00 per kg

Onion

25.00 per 10 kg bag

Our strategy will mostly be affected by the need to:

Obtain a good share of the market.

Increase salesmarket share and sales volume

Obtain a target rate of return on investment

To maximize long term profits.

The purpose of this strategy is to create customer excitement and demand, to

help establish a strong customer base and discourage competition. It focuses
much on increasing the quality of our produce to increase sales and volumes.
PROMOTION
22 | P a g e

The project's promotional strategy will include mixing elements of the promotional
mix in order to come up with a viable promotional plan.
a. ADVERTISING -. The print media will be the main channel to reach out to our
clients.
ADVERTISING MEDIUM

CONTACT
NAME

TEL /FAX

EMAIL / WEBSITE

The Advertiser

TBA

3914788

The Guardian

TBA

3908408

Botswana Gazette

TBA

3912833

TBA

Tel:39077

www.farmersmagbots

85

.com

Farmers

Magazine

Botswana
BTC Telephone Directory
Botswana a.cbraby Yellow
Pages

TBA

TBA

3907785

TBA

3971444

TBA

www.botswanaguardi
an.co.bw

www.btcdirectory.co.b
w
TBA

b. PERSONAL SELLING where a need for our products has been identified. We will
prepare proposals and/or sales letters to secure business. This will be
augmented by personal selling in order to convince the customers and address
any questions they may have.
c. VEHICLE BRANDING: Our vehicle will bear the name of our business, location
and contact details.
d. SHOWCASING. We will also participate in seminars, workshops and conferences
within the country. Our produce will be showcased at major trade fairs and at
the Agricultural Shows.

23 | P a g e

ST

WE

RE

AK

NG

NE

TH

SS

SWOTES:
ANALYSIS
S:

N
H
IMPLEMENTATION SCHEDULE
PHASE

1
2

ACTIVITY

TIME FRAME

Financing

2 months

Procurement

Infrastructure

Development

3
4

3 months

Labour Recruitment

1 months

Planting

n/a

Trading

n/a

FINANCIAL PLAN
A

PROJECT EQUIPMENT - CAPITAL COST

ITEM DESCRIPTION

1.DRIPLINE
16MM
SPACING(164620)
Q
2.110mmPVC
Class 6
3.Filter 3"Disc"
TOTAL

TH

OP

RE

PO

ATS

RT

UN

0.3

SUPPLIER,
S NAME
STEVE
MACK
STEVE
MACK
STEVE
MACK

QUANTIT
Y

UNIT
PRICE(
P)

TOTAL
PRICE(P)

GRANT(P
)

OWNERS
CONTRIBUTION(P
)

200

805

161000

96600

64400

145

250

36250

21750

14500

1150

2300

1380

920

199550

119730

79820

24 | P a g e

CASH FLOW
INCOME
/SALES

AUG

SEPT.

CABBAGE

1662
50

166250

OCT.
450,0
00
16625
0

BUTTERNUT
TOTAL
INCOME

1662
50

16625
0

6162
50

TOMATOES

OUT FLOW
FIXED
INCOME
IRRIGATION
EQUIPMENT

NOV.
450,0
00
16625
0
6162
50

DEC.
450,00
0
166250
360,00
0
97625
0

JAN.20
14
450,00
0

FEB.

MARC
H

APRIL

MAY

JUNE

JULY

TOTAL

16625
0
360,0
00
5262
50

1662
50

1662
50

166250

1995000

1662
50

1662
50

16625
0

720000
451500
0

1800000

166250

1662
50

166250

61625
0

1662
50

16625
0

PERTICIDES

199550
55159.
1
11538.
3

55159.
1
11538.
3

55159.
1
11538.
3

55159.
1
11538.
3

SEEDS

36577

36577

36577

36577

PACKAGING

6000

FERTILIZERS

ADVERTISING
SALARIES
&
WAGES
TRANSPORT/F
UEL
TOTALS

6000

5000

6000

6000

5000

2500
0

25000

25000

25000

25000

4000

4000

4000

4000

4000

2900
0

34282
4.4

2900
0

2900
0

13727
4.4

6000

5000
25000

2500
0

25000

25000

2500
0

2500
0

25000

300000

4000

4000

4000

4000

4000

4000

4000

48000

35000

2900
0

13827
4.4

4000
0

2900
0

13827
4.4

103464
7.2

Owners
Contribution(P)

Grant (P)

Total Price (P)

Unit Price (P)

Quantity

Suppliers Name

Item Description

PROJECT VARIABLE INPUTS -COST

Agrifeed

38

307.95

111782.10

7021.26

Fertilzers 2:3:4(30%)
50Kg

Agrichem.

54

299

16146

9687.60

Fertilizers-Pottassium
25kg

Agrifeed

60

302.85

18171

10902.60

1.

Urea 50kg 46%

2.
3.

4712.84
6458.4
0
7268.40

25 | P a g e

4.

Fertilzers-Calcium
Nitrate 25kg

Agrifeed

36

147.5

5310

3186

2124

5.

Tomatoes Star 9008;

1000 seeds

Agrifeed

60

425.45

25527

15316.20

10210.80

6.

Cureta

AgriFeed

1195

4780

2868

1912

7.

Methomex 1kg

Agrichem

210

1308

784.80

523.20

8.

Sniper 5L

Agrichem

445

1780

1068

712

9.

Diethane

Agrichem

1300

1300

780

520

Agrichem

446.00

1,784.00

1,070.40

713.60

Agrichem

625

3750

1422.18

948.12

Agrichem.

26

11050

11050

6630

4420

16702
.80

103274
.40

61916.
64

41309.76

10. Cyperin 5L
11. 7:2:5
12. Water melon(hybrid)
TOTAL

PROPOSED GRANT BREAKDOWN

As shown above we seek to apply for:
1. P 199550.00proposed fixed capital.
2. P99524.40 proposed variable costs.

Hence we are applying for a total grant of P179,44.64under ISPAAD with our
contribution amounting to BWP 119,629.76
FINANCIAL ASSUMPTIONS
SALES PROJECTIONS
Year I

CROP

YEID
Ha

NO. OF Ha

(Number
Yields)
EXPECTED
YEILD

Of
PRICE P/ KG

AMOUNT
OF
SALES
BWP/Year

26 | P a g e

Butternut

30 tons

12

(3) 360 000 Kgs

20.00

720,000

6.5

1,950,000

(36 000 bags)

Tomatoes

75 tons

(4) 300 000 kg

(50 000 boxes)

Cabbage

5000
bags

12

25kg
bag

(3)
180
bags

000

5.00
head

per

2,400,000

(40 000x12)

Total Revenue Year 1

5,070,000

Year 2

CROP

Butternut

YEID
Ha

30 tons

NO. OF Ha

12

(Number
Yields)
EXPECTED
YEILD

Of

(1) 360 000 Kgs

PRICE P/ KG

AMOUNT
OF
SALES
BWP/Year

25.00

900,000

7.00

2,100,000

5.5

2,684,000

(36 000 bags)

Tomatoes

75 tons

(1) 300 000 Kgs

(50 000 boxes)

Cabbage

5000
bags

12

TOTAL REVENUE YEAR 2

(3)
180
bags

000

5,640,000

27 | P a g e

Year 3

CROP

Butternut

YEID
Ha

30 tons

NO. OF Ha

12

(Number
Yields)
EXPECTED
YEILD

Of

(3) 360 000 Kgs

PRICE P/ KG

AMOUNT
OF
SALES
BWP/Year

30.00

1,080,000

7.5

2,250,000

2,880,000

(36 000 bags)

Tomatoes

75 tons

300 000 kgs

(50 000 boxes)

Cabbage

50000
bags

12

(3) 180 000 Kgs

40,000x12

6,210,000

TOTAL REVENUE YEAR 3

Year 4

CROP

Butternut

YEID
Ha

20 tons

NO. OF Ha

15

(Number
Yields)
EXPECTED
YEILD

Of

(1) 300 000 Kgs

PRICE P/ KG

AMOUNT
OF
SALES
BWP/Year

30.00

900 000.00

35.00

3
360
000.00

(30 000 bags)

Onion

64 tons

15

(1) 960 000 Kgs

28 | P a g e

(96 000 bags)

TOTAL REVENUE YEAR 4

4
260
000.00

Year 5

CROP

Butternut

YEID
Ha

20 tons

NO. OF Ha

15

(Number
Yields)
EXPECTED
YEILD

Of

(1) 300 000 Kgs

PRICE P/ KG

AMOUNT
OF
SALES
BWP/Year

35.00

1
050
000.00

40.00

3
840
000.00

(30 000 bags)

Onion

64 tons

15

(1) 960 000 Kgs

(96 000 bags)

4
890
000.00

TOTAL REVENUE YEAR 5

SALARIES

DESCRIPTION

Number

Amount / Month

Total
Amount/Year

Managing Director

5,000.00

60,000.00

Supervisor

3,000.00

36,000.00

Driver

2,000.00

24,000.00
29 | P a g e

Laborers

15

800 x 15= 12,000

Total

144,000
264,000

INCOME PROJECTION: YEAR 1

REVENUE

5,020,000.00

LESS: COSTS
Fertilizers,
Seedlings

Chemicals,

Packaging

119 179.10

Salaries (12 months)

264,000.00

Fuel ( Transport )

72,000.00

Advertising& Promotion

50 000.00

Professional Fees (Consulting)

15 000.00

Maintenance

60 000.00

Bank Charges

6 000.00

Stationery

6 000.00

Insurance

12 000.00

Telephone, fax, internet

Depreciation

9 600.00
20 000.00
30 | P a g e

TOTAL COSTS

633,779.10

PROFIT ( PROJECTED )

4,386,220.90

CABBAGE CROP BUDGET FOR 1 HECTARE (HA)

A

Revenue

No
.

Item

Produce (See
sales above)

Total
Revenue
projected

200,000.00

VARIABLE COSTS (VCs)

b

Production Costs
Item

Quantity

Unit Cost

Total Cost

Seed

3*100g

1200.00

3600.00

Fertilizer;2:3:1 LAN

10*50kg

400.00

4,000.00

5*50kg

400.00

2,000.00

Pesticides (Various)

2,000.00

Ploughing

1.000.00

Labour:
Production

Seedling

18md

40.00

720.00

38md

40.00

1,520.00
31 | P a g e

Land Preparation

19md

40.00

760.00

Irrigation

26md

40.00

1,040.00

Transplanting

47md

40.00

1,880.00

Weeding

14md

40.00

560.00

10md

40.00

400.00

Pest Control
Top Dressing

Total Production Cost (2 +3+4+5+6)

19,480.00

c Marketing Costs
8

Harvesting

235
Hours

Man

20.00

4,700.00

Empty Bags

2000

3.00

6,000.00

10

Transport to Market

2000

3.00

6,000.00

11

Total Marketing Costs (8+9+10)

16,700.00

12

Total VC (7+11)

36,180.00

13

Gross Margin (1-12)

163,820.00

32 | P a g e

TOMATO CROP BUDGET FOR 1 HECTARE (HA)

A

Revenue

No
.

Item

Produce (See
sales above)

Total
Revenue
projected

487,500.00

VARIABLE COSTS (VCs)

b

Production Costs
Item

Quantity

Unit Cost

Total Cost

Seed

160g

2000.00

3200.00

Fertilizer;2:3:1
Phosphate

10*50kg

400.00

4,000.00

3*50kg

400.00

1,200.00

Potassium

Pesticides (Various)

1,200.00

Ploughing

1,000.00

Labour:

Seedling

45md

40.00

1,800.00
33 | P a g e

Production

64md

40.00

2,560.00

Land Preparation

22md

40.00

880.00

Irrigation

60md

40.00

2400.00

26md

40.00

1040.00

72md

40.00

2,880.00

15md

40.00

600.00

4md

40.00

160.00

Staking
Transplanting
Weeding
Pest Control
Top Dressing

Total Production Cost (2 +3+4+5+6)

22,920

c Marketing Costs
8

Harvesting

235
Hours

Man

20.00

4,700.00

Empty Bags

3000 boxes

3.00

6,000.00

10

Transport to Market

2000 bags

3.00

6,000.00

11

Total Marketing Costs (8+9+10)

16,700.00

12

Total VC (7+11)

39,620.00

13

Gross Margin (1-12)

447,880.00

34 | P a g e

ONION CROP BUDGET FOR 1 HECTARE (HA)

A

Revenue

No
.

Item

Quantity

Unit
BWP

Produce (40tonnes)

4000*10kg

10.00

40,000.00

Item

Quantity

Unit Cost

Total Cost

Seed

3kg

300.00

900.00

Fertilizer;2:3:2

10*50kg

200.00

1800.00

450kg

200.00

1050.00

Price

Total
Revenue

VARIABLE COSTS (VCs)

b

Production Costs

Pesticides (Various)

200.00

Ploughing

500.00

Labour:

Seedling

23md

20.00

460.00
35 | P a g e

Production

102md

20.00

2,040.00

Land Preparation

22md

20.00

440.00

Irrigation

201md

20.00

4020.00

Transplanting

105md

20.00

2100.00

Weeding

5md

20.00

100.00

11md

20.00

220.00

Pest Control
Top Dressing

Total Production Cost (2 +3+4+5+6)

14,780.00

c Marketing Costs
8

Harvesting

80 md

20.00

1,600.00

Empty Bags

4000

1.00

4,000.00

10

Transport to Market

4,000

0.50

2000.00

11

Total Marketing Costs (8+9+10)

7,600.00

12

Total VC (7+11)

22,380.00

13

Gross Margin (1-12)

17,620.00

DECLARATION
We_______________________________________________solely declare
information is to the best of our knowledge true and correct.

that

the

above

36 | P a g e

Signature (Director 1) _________________________________Date__________________

Signature (Director 2) _________________________________Date__________________

37 | P a g e