Introduction
This project is about manufacturing cattle licks containing Urea, Molasses, Vitamins, Minerals and other nutrients that may be included in the recipe. These blocks are quite convenient to package, transport, and store. This is an easy feeding method and it is quite nutritive because the lick combines a variety of nutrients. At the manufacturing level, a lot more can be added as may be desired.
Process and Production Capacity
Preparation of the ingredients is done before the whole process starts. The mixing is done in a clear sequence –Molasses are put first, then Urea is added, followed by Salt and Minerals, Cement follows and finally Bran is added. The addition of water should follow a ratio of 3-4 litres per 10kgs of cement. The paste formed can then be put into moulds that may be the size of 25x15x10 cm and the molded blocks are put in a well ventilated shade where they may be kept between 24-72 hrs. The mixing may be manual where production does not exceed 150 blocks a day.
Capital Investment Requirements in US$
| Capital Investment Item | Units | Qty | @ | total |
| Delivery Van(1.5tone) | No | 1 | 28,000 | 28,000 |
| Mould | No | 4 | 30 | 120 |
| Wheelbarrow, Spades | No | – | – | 44 |
| Weighing Scale | No | 1 | 75 | 75 |
| Furniture & Fittings | No | – | – | 200 |
| Total | 28,439 |
Operating Costs in US$
| Cost Item | Units | @ | Qty/ day | Pdn Cost/ day | Pdn Cost/ mth | Pdn Cost/ yr |
|---|---|---|---|---|---|---|
| Direct Costs | ||||||
| Molasses | kgs | 0.25 | 98 | 25 | 637 | 7,644 |
| Urea | kgs | 2 | 25 | 50 | 1300 | 15,600 |
| Bran | kgs | 0.06 | 63 | 4 | 98 | 1,179 |
| Soybeans | kgs | 0.4 | 33 | 13 | 343 | 4,118 |
| Cement | kgs | 0.28 | 25 | 7 | 182 | 2,184 |
| Salt | Kgs | 0.4 | 8 | 3 | 83 | 998 |
| Sub-total | 252 | 102 | 2644 | 31,724 |
General costs(Overheads) Project Product Costs & Price Structure
| Rent | 200 | 2,400 |
|---|---|---|
| Labour | 225 | 2,700 |
| Utilities | 23 | 270 |
| Selling & distribution | 87 | 1,040 |
| Miscellaneous | 33 | 400 |
| Depreciation | 592 | 7,110 |
| Sub-total | 1160 | 13,920 |
| Total Operating Costs | 3,804 | 45,644 |
| Item | Qty/day | Qty/ yr | @ | Pdn Cost/yr | UPx | Total Rve |
| Urea Molasses | 50 | 15,600 | 2.76 | 45,644 | 4.5 | 70,200 |
Profitability Analysis Table
| Profitability Item | Per day | Per Month | Per year |
|---|---|---|---|
| Revenue | 225 | 5,850 | 70,200 |
| Less: Production and Operating Costs | 146 | 3,804 | 45,644 |
| Profit | 79 | 2,046 | 24,556 |
Marketing Analysis
The Urea-Molasses and cattle licks are very popular with farmers because of their nutritive value. They contain many ingredients that can hardly be found in any one other feed.
Government Incentive
The government maintains liberalized policies on trade and commerce that allow free marketing and non-taxing of exports etc. Government bureaucrats offer free advisory consultancy services to those who care to use them.
