Business plan for Kenka Invest-Farming spcifically Potato Plantation

1. Business plan
BUSINESS PLAN FOR KENKA INVEST POTATO PLANTATION Page 1
BUSINESS PLAN
FOR
KENKA INVEST POTATO PLANTATION

2. Business plan
BUSINESS PLAN FOR KENKA INVEST POTATO PLANTATION Page 2
CONTENTS
EXECUTIVE SUMMARY................................................................................................................................................ 3
BUSINESS IDEA............................................................................................................................................................... 3
COMPANY PROFILE...................................................................................................................................................... 3
PRIMARY CONTACT PERSON................................................................................................................................... 4
CURRENT MARKETING SITUATION...................................................................................................................... 4
Potato farming in Kenya ............................................................................................................................................. 4
(2) Need............................................................................................................................................................................. 5
b. Current market consumption kenya:................................................................................................................ 5
(3) Features...................................................................................................................................................................... 6
SWOT ANALYSIS ............................................................................................................................................................ 7
KENKA INVESTMENT MARKETING STRATEGIES FOR POTATOES.......................................................... 8
PRODUCER PROFILE.................................................................................................................................................... 8
Services ............................................................................................................................................................................. 9
Keys to Success............................................................................................................................................................. 9
Critical Issues................................................................................................................................................................. 9
Management and organization...................................................................................................................................10
Strategies of doing business....................................................................................................................................10
The financials..................................................................................................................................................................11

3. Business plan
BUSINESS PLAN FOR KENKA INVEST POTATO PLANTATION Page 3
EXECUTIVE SUMMARY
Kenka investment ltd is one of the leading Agri- horticultural company in Kenya with more than
10 years service with our major plantation farm being in nyahururu
We have been doing potato planting in large scale with local investors and we are now
seeking collaboration with AFC bank to finance 80% of our operations
Kenka plantations is a highly profitable plantation & has huge land owners and investors
and with Previous industry experience provides kenka investment ltd with a competitive edge
over the competition. Profitability will be reached by month nine and revenue for year two will
be in excess of ksh 3,000,000.
BUSINESS IDEA
Plantation of potatoes in nyahururu- Kenya
With more than 1,500 hectare suitable for potato cultivation.. By considering about 30% of the
entire suitable area will reduce the total potential area at around 1,000 hectares. This area would
be put under potato cultivation, and by adopting an average plant density of 5000 per hectare a
production of potato in the region will be of 72,000 ton per year. [1]
COMPANY PROFILE
Company Description:
Name: Kenka investment ltd
Address: nyahururu
Contact Number: 0720845069
Web site: kenkainvestltd.kbo.co.ke
E-mail: pmokaranja@yahoo.com

4. Business plan
BUSINESS PLAN FOR KENKA INVEST POTATO PLANTATION Page 4
PRIMARY CONTACT PERSON
Goffrey karanja
Director
kenkainvest Ltd
P.O. Box 63406-00619, Nairobi, Kenya
Phone: +254720845069
Website: kenkainvestltd.kbo.co.ke
CURRENT MARKETING SITUATION
POTATO FARMING IN KENYA
The government of Kenya is spearheading efforts to upgrade the status of potato as a strategic
crop. The International Potato Center (known by its Spanish acronym CIP) is a key partner in
this endeavor, along with local government officials, the private sector, non-governmental
organizations, and international cooperation agencies. The underlying goal of this initiative is to
help achieve food security in this poverty-stricken nation, and improve the livelihood of its
people. The expected effect is to boost Kenya’s potato production threefold by 2012.
The potato is the second most important food crop in Kenya after maize. It is also an important
source of revenue, employing more than 2.5 million people in potato farming activities across the
entire production chain.
The new efforts address improved potato productions from multiple angles, ranging from public
policy to better seed production and increased resistance to potato disease.
CIP scientists along with other scientists, researchers, and administrators are focusing on
designing a proper potato policy for Kenya. Potato fields in this country have remained stagnant
over the past decade due to factors such as price hikes, climate change, and policy deficiencies as
well as farmers’ use of poor quality seed and improper post-harvest practices. In response, the
team is designing a potato seed master plan, led by CIP and GTZ, the German agency for the
international cooperation, which is to serve as the backbone of this overall initiative.

5. Business plan
BUSINESS PLAN FOR KENKA INVEST POTATO PLANTATION Page 5
Addressing issues regarding seed quality and access, CIP led an effort to conduct an extensive
seed market survey that involved gathering information regarding seed demand and availability
from over 1300 growers from all the major potato-production districts in Kenya. CIP is also
working with both private and public sector partners to introduce a new technology that produces
substantially higher numbers of potato seed, or the mini-tubers from which new potatoes are
grown, and helps to ensure that they are disease free. The technology is know as aeroponics, and
involves growing the seed tubers in mid-air, with much higher multiplication rates than
conventional methods.
In close collaboration with the Kenya Agricultural Research Institute (KARI), CIP is also
working to test and release varieties of potatoes for smallholder farmers that are resistant to late
blight, the most serious disease threatening potatoes worldwide. Late blight, which led to the
famous Irish Potato famine, is caused by the fungus-like oomycete, Phytophthora infestans, and
spreads through spores transported in the wind or the use of infected tubers. The government of
Kenya has committed to supplying disease-free planting material to farmers along with
subsidizing farm inputs, organizing markets, and strengthening farmers association.
(2) NEED
B. CURRENT MARKET CONSUMPTION KENYA:
The 65% of the population of Kenya can be considered for the moment the market segment to
which the potato supply is addressed. The segment is not yet saturated; big chances of growth are
represented by and within this segment.
Potato consumer uses potato as basic commodity. In the potato cultivation businesses agree that
a substantial growth is possible
According to USAID reports, Kenyan potato imports can touch a record 2.16 million tons up by
5% in 2011-12. Kenya mainly imports low-priced potatoes from neighboring countries

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BUSINESS PLAN FOR KENKA INVEST POTATO PLANTATION Page 6
(3) FEATURES
A. FORMS:
Generally there are several potato forms:
Alpine Russet
German Butterball
Ranger Russet
B. USAGE
Potato usage forms:
potato chips
potato pan cakes
Boiled/steamed potatoes
sliced potatoes

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BUSINESS PLAN FOR KENKA INVEST POTATO PLANTATION Page 7
SWOT ANALYSIS
Strengths:
Suitable with Kenyan climate
with other crops as well
beneficial and useful
Opportunities:
nces
countries
international brand.
Weakness:
consumers/ customers)
ntry barriers
Threats:

8. Business plan
BUSINESS PLAN FOR KENKA INVEST POTATO PLANTATION Page 8
KENKA INVESTMENT MARKETING STRATEGIES FOR POTATOES
Growers: Professional full-time growers, mixed farm units, part-time farmers at the farm
Merchants/Wholesalers: Traditional purchasers of ‘bag’ potatoes for further distribution/sale
Packers : Purchase potatoes usually in bulk one tonne boxes to wash, brush and prepare pre-
pack lines (can also be producers in their own right)
Preparers (Peelers) :Purchase potatoes in bag or bulk for washing, peeling and cutting into
ready to use pieces. The main products types are usually prepared chilled and/or vacuum pack
potatoes. Products include peeled catering/retail pack whole or sliced/diced potatoes, potato
salads and deli items.
Processors :Purchase potatoes in bulk for use in further processing as stand alone
items(e.g.chips, crisps) or as a component of other value added foods (e.g. speciality potato
products, ready meals, etc). The various modification processes include freezing, drying,
blanching, cooking, etc.
PRODUCER PROFILE
The majority of Irish potato growers grow for the fresh ware market and a grower may grow any
combination of feed, early or main-crop potatoes.
However, there is a large number of smaller early potato producers who often sell more locally
in a more direct fashion i.e. off-farm sales, local greengrocers, roadside sales etc. Most of the
main producers supply ware potatoes for the processing sector at different stages throughout the
growing season as this market usually operates on a ‘free buy’ basis i.e. non-contract
arrangements.
Potato producers now sell their produce either directly to retailers or through pre-packers,
merchants/wholesalers, etc. Local market opportunities have diminished, particularly for those
supplying retail multiples.

9. Business plan
BUSINESS PLAN FOR KENKA INVEST POTATO PLANTATION Page 9
Services
Kenka investment potato farm will provide the following services
1) Growing potatoes
2) Packaging potatoes
3) selling potatoes
Keys to Success
The keys to success are:
• Reliability.
• Convenience.
• Custom service.
Critical Issues
Kenka invest potato farm is still in the speculative stages as a start-up organization. The critical
issues that it faces are: The need to take a conservative approach to expansion. Expansion must
not occur for the sake of growth in itself, but should occur because the customers will be better
served & market need

10. Business plan
BUSINESS PLAN FOR KENKA INVEST POTATO PLANTATION Page 10
MANAGEMENT AND ORGANIZATION
Our organization structure is designed in order to enable successful communication amongst all
departments. We distinguish following departments:
Proprietor/director – He is the major shareholders responsible for crucial decision and problem
solving activities. Her role is to represent company and supervise it..
Farm manager – His main duty will be to supervise the casual work force.
Accountant-He is responsible for keeping up to date records of all the sales ,inputs etc
Human Resources Department – Their duties concern interviewing and employing people,
organizing social events, organizing trainings and places where trainings will be held. They are
gathering information about employees’ effectiveness, fulfilling duties – general work
performance aspects. They are to be informed when employee will not be present at work
Casual workforce – their main duty will be to do all the manual work in the farm ie tilling,
driving farm machinery.
Security guards: Their main duty will be to make sure all the farm produce is secure in the farm
and the silos
STRATEGIES OF DOING BUSINESS
In the next few years:
we believe to be recognizable competitor on the market. Our goals would be to strengthen our
position on the market and still build professional and still friendly appearance.
After ten years:
We believe that our position would be stable enough to start promotion in foreign countries
whose companies are searching for business place. We will be searching for a partner companies
to develop and wider our offer. Dynamic growth in new fields after becoming a leader in the
segment.

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BUSINESS PLAN FOR KENKA INVEST POTATO PLANTATION Page 11
THE FINANCIALS
In January of 2012 we completed our Activity Value Analysis, a rigorous process to address
costs and lay the foundation for future growth, which resulted in stabilizing financials and gives
us opportunity to gather all savings for further investments. We also rolled out our revenue
management tools to the proprietor’s office, allowing us to improve forecasting so we can better
manage our mix and optimize rates. We initiated efforts to further enhance our sales force.
The Company financial goals under the Executive Plan consist income increase and stabilizing
after making recognizable profit, with each criteria accounting for half of the financial goal
portion of the annual bonus. As the Company generally sets target bonus award opportunities
above market median, the Company financial and strategic/operational goals to achieve such
award levels are considered challenging but achievable, representing a superior level of
performance. Consistence with maintaining these high standards and subject them by achieving
the satisfactory profit. However the risk analytics and other factors retains the ability to consider
whether an adjustment of the financial goals for any year is necessitated by exceptional
circumstances, e.g., an unanticipated and material downturn in the business cycle that triggers on
the Company’s performance relatively to the industry.

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BUSINESS PLAN FOR KENKA INVEST POTATO PLANTATION Page 12
Tables
Projected Income statement 2013-2014
march July Nov
A. Total revenue: 2,100,000 3,000,000 4,100,000
Sales of products and services 1,700,000 2,100,000 3,000,000
Sales of materials 153,000 300,000 800.000
Change in inventory 0 0 0
Extraordinary incomes 0 0 0
Other revenues 247000 600000 300000
B. Total costs: 750,000 800,000 1,000,000
Depreciation 10000 10000 10000
Materials and energy 10000 10000 10000
Sales salaries 500000 500000 60000
Cost of services 30000 80000 80000
Financial expenses 0 0 0
Costs of goods for resale 0 0 0
Taxes 200000 200000 300000
Other costs 0 0 0
Extraordinary losses 0 0 0
C. Profit (loss) gross value: A-B 1,350,000 2,200,000 3,100,000
D. Income tax 0 0 0
E. Net income 0 0 0

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