Feasibility Study Arron McLean Heath Pearce Kurtis Mackow Trevor McMorris Wade McLean
Operations Plan
Site Location
Site Plan
Cattle Flow Diagram Cattle leave / arrive via truck / trailer Cattle are weighed Cattle are sorted into pens according to weight Cattle are tagged Cattle Implanted with Growth Hormones Cattle sent to small pens Sick animals moved to hospital and sick pens Animals moved into general population Finished Cattle (1250 lbs) Animals with weights between 450 and 850 lbs.. fed backgrounding ration Animals with weight over 850 lbs.. will be fed finishing ration
Ethanol Production Process
OperatingExpenses
Capital Expenditures
Human Resource Plan
Human Resource Hierarchy
Wage & Salary Expense
Employee Benefits
Marketing Plan
Mission Statement Highway 32 Feeders is a community /government owned wheat-ethanol-feedlot operation that strives to produce high grade ethanol and superior quality finished cattle while providing a market for locally produced cattle and grains.
Ethanol Pricing Government Incentive $0.15 Provincial $0.15 Provincial $0.10 Federal $0.10 Federal
Cattle Pricing –Price determined by the Chicago Board of Trade and the Winnipeg Commodity Exchange –Average price of finished cattle = $0.82/pound –Ensure break even price to remain profitable forward contracted 30-60% of cattle
Sales Projections
Promotion Ethanol promotion will be very minimal due to the guaranteed market Initial advertising on the feedlot side is crucial- – packers must be aware of our new feedlot (marketing manager’s responsibility) Cattle buyers will be encouraged to tour feedlot Build a reputation of a consistently produced high quality product
Marketing Budget
Distribution Channels Ethanol Ethanol will be trucked to Regina where it will be purchased by Federated Co-op to be blended with gasoline. Cattle Cattle will be shipped to IBP Lakeside Packers in Brooks Alberta and XL Foods in Moose Jaw
SWOT Analysis
Financial Plan
Financing Budget
Projected Net Income
Projected Dividends Dividend Policy Pay out cash in excess of $2 Million after 2005 Pay out cash in excess of $2 Million after 2005
Break Even Analysis
Sensitivity Analysis
Conclusion By investing in Highway 32 Feeders you will be investing in a feasible business that: Receives a 24.9% return on its equity investment over 10 years Pays out dividends after 2007 Provides an additional market for investor produced commodities
Invest With Highway 32 Feeders!!