2016 GATEFARMS 1/9/2016

Transcription

1 2016 GATEFARMS 1/9/2016

2 COMPANY PROFILE FOR THE BUDGET YEAR 2016: Gatefarms International Trade PLC (Sebeta Ethiopia) TEL:

3 July 2014 CONTENT Executive Summary...4 Background & Description of the Business.5 Organizational & Management plan 7 Marketing Plan.11 Strategy.. 13 Assumptions.. 15

4 Gatefarms International Trade P.L.C Company Profile 1. Executive Summary Gatefarms International Trade PLC is one of the major Exporters of high quality oilseeds & pulses beans grown in Ethiopia for exportation to China, India, USA and the Middle East. The company also sells spices to wholesalers, retailers and households for the domestic market. Currently the company has expanded exportable oilseeds & pulses preparation capacity to 15,590 ton per year. As the company prepares top, in terms of quality standards, of all oilseeds & beans. Our customers also seek our oilseeds & beans as it provides them with a point of differentiation in quality and loyalty to the agreed contract commitment. In the past five years, demand for our products has tremendously increased on the amount that we are able to supply. Thus, we were compelled to lease additional facility for larger shipments. Before we set our target we have made an overall marketing assessment and we got positive indicators from current oilseeds & beans buyers that the additional amount of our products will be sold Objectives Increase production and sale to 15,590 tons in the budget year of operation at the proposed facility and reach maximum capacity Mission Increase sales substantially in the first full year of operation. Establish strategic business relationships with customers. Increase gross margins in the budget years. A 3% decrease in manufacturing and overhead costs. To start importing different fast moving materials within this budget year to support export sales. To begin export standard production and sale of spices and grinding both in the domestic and export market on the 3 rd quarter of the budget year. To finalize the establishment of spice packing plant in full capacity on the first quarter of 2016.

5 Our company is committed to provide oilseeds & beans beyond minimum acceptable quality standards with reasonable price to the potential buyers. We are committed to achieve customer s satisfaction headed by qualified team of professionals. We believe that our commitment to our customers will help in image building to our country that will be reflected through an honest and dependable business Keys to Success Establishing and maintaining working relationships and contractual agreements with China, India, USA, and Middle East importers as well as Ethiopian brokers and wholesalers. Increase productivity. Cost minimization. Provide reliable service to our customers. 2. Background and Description of the Business The name Gatefarms which was engaged in domestic trade for more than five decades. Since 1997, the grand children s as shareholders have begun to export oilseeds & beans throughout the globe with a capacity on average 10,000 metric tons per annum. The company has two major sites, 1. Main headquarters office and warehouse for handpicking, storage, and distribution located in Sebeta, 2. Machine cleaning, truck weighbridge & machine polishing located in Alemgena (2km from main office). And the remaining small sites on contract & lease basis used for washing and Sundrying preparations.

6 The term letter of credit and transaction transfer facilities of the company are mainly provided by Commercial Bank of Ethiopia, Gatefarms has established its oilseeds & pulses processing & warehouse facilities as well as bulk packing blower in order to increase production and export performance over 10,000 metric tons. The companies also strictly plan and adhere to satisfy its customers by quoting competitive price, supply quality oilseeds & beans up to exemplary and duly shipment.

7 Beside oilseeds & pulses export activities the company also set objective to engage in spice mill operation by establishing a spice factory to produce around 1,000 quintals per day as well as importing different import items. Moreover the company is looking for potential trade partners for finalizing establishment of sesame hulling. 3. Organizational and Management plan 3.1. Company Location and Facilities The company is located in sebeta city of Ethiopia, Oromyia Regional state around Sebeta woreda. The oilseeds & beans storage which is also where the head office is located in Sebeta around the main Ethio-Djibouty main cargo railway station, kebele 01/07. The machine cleaning and polish processing plant, Gatefarms Alemgena Branch is located about 2 km from the

8 main office around Alemgena area which is a five minutes drive away from the head office. Beside oilseeds & beans export, the company is looking to expand on sesame hulling with potential trade partners Organizational Structure & work force The company is managed by a General Manager who is accountable to the managing directors. The current organizational structure of the company has line departments and services which are directly Accountable to the General Manager. The company s oilseeds & beans processing and exports consists of permanent and contractual employees. The workforce mix incorporate both experienced senior workers and young and educated workers. The average monthly gross salary for a permanent worker Key Managerial personnel - Their roles and Responsibilities i. General manager The General Manager, under the general directions of the Managing Director, is responsible for planning organizing, staffing, directing and controlling the overall line staff functions of the company. Establishing the vision, goal and other long, medium and short-term plans of the company; as a whole; Delegating tasks to work units under his/her direct supervision, empowering the same with commensurate resource and authority; Ensuring the oilseeds & beans Export business and the duties and responsibilities delegated them; representing the company with third parties negotiating with business partners and other stakeholders; formulating polices procedures, strategies and regulations that ensure the company s profitability, growth and survival; producing regular and special reports and submitting same to the managing Director. ii. Export Manager Under the general directives of the General Manager the Oilseeds & pulses commercial department Manager plans, Organizes, directs controls and coordinates the overall process of the company product export as well as local sales duties including purchasing, transporting, storing and exporting activities as well as customs clearing, shipping forwarding bank IBD process and port handling ensures that the company exports quality supplies and that the company is competitive in the world market:

9 iii. Finance Manager The Finance Department Manager is responsible for planning, organizing, directing and controlling the financial activities of the company. Acquiring financial resources from internal and external sources allocating the functional units of the company through operational and capital budgets. Following up implementation against budget to ensure efficient utilization of the same installing. Financial data to ensure informed and sound decision making on matters of finance. Budgeting and costing monitoring the day-to-day financial activities of the company and making sure that interim and periodic financial reports of both the oilseeds & pulses export and the spice distribution and produced and issued for internal and external consumption administering the preparation approval and implementation of corporate budgets of operational periods, managing to accumulation allocation and accounting of production and other operational cost. Monitoring the timely collection of operational revenues and receivables as well as the disbursement of payables according to internal and external regulatory requirement: working in an advisory capacity for other work units and the whole company on matters of finance: iv. Human resources Division Head Under the directing supervision of the human resource and logistics manager the personnel office is responsible for the personnel activities in the company; the recruitment selection, placement, transfer and promotion activities, proposes personnel action, and maintains employee s personal records, prepares attendance sheets for the department and other functional units for payroll preparation and personnel action purposes. v. Quality control officer Under the general guidance and supervision of the General Manager, testing the quality and the grades of the export market oilseeds & beans control the quality of the purchased commodity grades before delivery from the Ethiopian Commodity Exchange (ECX) warehouse and prepare a pre-shipment sample for the export department presenting reports on the department regularly for the general manager Ownership Information Form of Ownership: Limited Partner Registered as Gatefarms International Trade Plc, (Ministry of Trade Addis Ababa) 3.3 Products

10 The company is established to supply our buyers top quality oilseeds, pulses & spices on sample approval basis. Generally some of these type of commodities is purchased through the Ethiopian Commodities Exchange (ECX). Gatefarms is organized in a way to process & clean high quality polished & unpolished commodities. The following are our main products which are supplied to international buyers. Spices Oilseeds Pulses WASHED / DRIED GINGER RED HOT PEPPER CHILLI BLACK CUMIN SEEDS TURMERIC Fingers and Bulbs (Natural & Polished Qualities) AJWAN SEEDS FENUGREEK SEEDS LONG PEPPER BLACK CARDAMOM (Whole & Seeds) PEANUTS GROUNDNUT NIGER SEEDS RED SESAME SEEDS WHITE SESAME SEEDS (Wellega / Humera) SUNFLOWER SEEDS CORN MAIZE LINSEEDS (RED) CASTOR BEANS SOYABEANS RAW BARLEY WHITE SORGHUM CHICKPEAS KABULI CHICKPEAS DESI RED KIDNEY BEANS WHITE PEA BEANS (Navy) HORSE BEANS (Split) HORSE BEANS (Whole) LENTILS (Split) LENTILS (Whole) Source of raw material supply The source of oilseeds, pulses & spices comes from small holder and commercial farms through our agents located in several locations throughout Ethiopia, and the ECX (a platform where the exporter buys sesame seeds, white pea beans and coffee traded as the auction held every day), As it is well known that the Ethiopian commodity exchange is a market place where buyers and sellers come together to trade, assured of quality, delivery and payment. Thus, this market platform is one of our source for export product Systems and compliance The company has installed a new production technology to meet international requirements. Likewise, it also acknowledged the need to make the same

11 progress in introducing new systems that comply with international requirements. To this end, the company has developed various types of operational manuals &procedures. Further, by fulfilling the entire requirement we have renewed trade license and quality certificate. 4. Marketing Plan 4.1. Market Analysis Market Research We have used our market assessments to compile the market analysis that is used to prepare business plan with regards to export. Our customers were also key sources of market information on potential market trends. Moreover, secondary data on exports of oilseeds & beans in the global market is also used to capture the broad picture of the international market. The target markets are identified based on these considerations and our existing established markets. A general assessment is also made on the domestic market to validate the target market. The summary of the market assessment is presented hereunder showing the market segments considered, their generic needs, current trends, and growth aspects Market segmentation The broad market segments considered are the oilseeds, pulses and spices export markets. Further segmented based on geographic consideration; USA and Asia. Out of these potential market; Middle East, India, China and USA are considered as target markets. Demographic considerations of end users spices are also crucial market segment factor. Therefore, assessments are made on wholesalers, retailers and individual users for the domestic market; households, wholesalers and business are considered as potential market segments for our spices milling product Market trends and growth The global market trend shows that there is a growing demand for oilseeds and pulses with reasonable price and high quality while the supply side is being challenged with low yield and productivity. However, the Ethiopian commodities sector has bright prospects. The country

12 has suitable altitude, ample rainfall, optimum temperature, appropriate planting material, low labor cost and fertile soil. The country sustainably produce and supply quality grade commodities, with potential of producing all commodity types of the various world agro-growing origins. In accordance with the International Standards Organization report Ethiopian is the first major producer and the second major export of commodities in Africa. In view of this fact, our company has a major share in the export performances Buying Patterns & Competition The buy decision of our customer is based on trust in our process and commodity selection. We have recognized that the strong relationships with our customers which expand beyond that of the buyer/seller. Now a day s our label create in the mind of the customer that the product has been selected and prepared with the highest quality standards. Moreover, our customers are willing to buy our product because they are familiar with us and trust in the quality of our product. This is the result of their success in the marketplace with our product Challenges & Opportunities Challenges i. Structural challenges: Lack of competitiveness (low yields & productivity) Poor access to the market and long supply chain Excess production in China and India, and further devaluation of currencies from the top three world exporters Buying Patterns & Competition The buy decision for our customer is based on trust in our process and commodity selection. We have recognized relationships with our customers which expand beyond that of the buyer/seller. The Gatefarms label means that the product has been selected and prepared with the highest quality standards in mind. Our customers are willing to buy our product because they are familiar with us and trust in the quality of our oilseeds and beans. This is the result of their success in the marketplace with our product. Strategy and Implementation Summary

13 Gatefarms strategy is to expand production capabilities in order to fulfill the requests of buyers with whom we currently deal for larger orders. In addition Gatefarms seeks to establish additional contracts with importers and we intend to first maximize quantity of commodities sold within present channels and next, create additional accounts through targeted marketing efforts. Further we will make extra effort to minimize irrelevant costs. 5. Strategy Our strategy is to expand production capabilities in order to fulfill the requests of buyers with whom we currently deal. In addition, we seek to establish additional contracts with importers. In general, we intend to first maximize quantity of commodities sold within present channels and next, create additional accounts through targeted marketing efforts. Moreover, we will make extra effort to minimize irrelevant costs so as maximize our s and customer s profits Strategic issue Sales maximization By penetrating new market area and encouraging the existing buyer s to place re-orders. Cost minimization By eliminating discrepancy cost By minimizing rework & wastage By controlling manufacturing cost By controlling transportation, loading and unloading By efficient usage of working time Capacity utilization By effective and efficient utilization of the machinery Enhancing market speculation capacity Employee qualified professional worker 5.2 Competitive advantage We have established strong relationships with suppliers, commodity brokers and wholesalers.

14 And using modern cleaning plant at 10,000 metric ton per year average capacity Experienced and efficient workforce to realize our objective Sufficient commodity warehouse 5.3 Strategy Pyramid Our main strategy is to communicate the unique and desired attributes of our product to larger segments of the markets. It is therefore important that we effectively communicate the unique aspects which make it ideally suited for a niche market. The unique aspects of our products include superior product selection and preparation, quality assurance, and efficient delivery. The tactics we will use to communicate these strengthen and improved communication capabilities via information system and website. 5.4 Marketing Strategy The relentless effort made in the previous years has made our company to be introduced with overseas client to purchase substantial quantity of oilseeds and pulses. The main strategy used to realize our goals are:- To repeatedly communicate by , fax, and phone to influence the buyers. To distribute our company profile to the potential buyers so as to enable them to understand on our activities. To repeatedly participate in international trade fairs. Travel abroad to introduce our company to the new buyers and to discuss on the existing customers. Employee well experienced and have excellent personal contact with worldwide known commodity buyers. Create excellent relationship with buyer s Agent and Auxiliary office in Addis Ababa who visit our company to check our activities from time to time. Intimate knowledge on how to sell and refrain from selling, following meticulously the international market that is the behavior of funds, world monetary situation, global supply of commodities and vice versa. 5.5 Positioning Statement Our commodities exceed the minimum acceptable quality standards and are shipped within the agreed time period of preparation to ensure the largest commodities on the market.

15 5.5.1 Pricing Strategy We are trying to adhere to higher quality standards, so as to get the price for our products slightly higher than the market average. Accurate market forecasting and a planning of resource utilization are vital activities on our price strategy Sales Strategy We focus on fulfilling the requirement of the customer and strive to capture additional demand from buyers with whom we have already established relationships for larger orders. These importers are critical to our ability to acquire additional accounts. We have to also focus to securing additional customers Sales Forecast and Assumptions The major international markets we are looking to serve are USA, China, India and Middle East. Our strategy is to base our existing and successful experience in Middle East to formulate our strategy here. 6. Assumptions Following are assumptions for our sales forecast: i. All the existing buyer will repeat last year s order, ii. iii. iv. In this budget year we have a huge potential to penetrate the international market, Hoping that as Government office agencies indication there could be sufficient supply of commodities, Hoping that a constant power supply will be available on the area where we lease as additional facility for commodity preparation, v. There will be adequate access to financial service, vi. vii. viii. The international demand for Ethiopian commodities will be increased, The government support on the export activities will be strengthen, There will be no problem for inland transport as it is one of the problematic areas that inhibit the performance of export,

16 6.1 Conclusion To establish the proposed target our company made the overall assessment of the company readiness to export and satisfying its client the following factors are considered to assess our internal capabilities The commitment of top level management Sufficient managerial and qualified staff Capable practiced personnel to handle the various short coming aspects of commodity export Adequate production capacity with sample factory space warehouse state of the cleaning machinery and ease of access to raw materials Equal capacity to provide bulk packing services indoor service if any required by importers After we have done internal assessment and the factors found to be positive our company decided to export target for the budget year moreover, immediate export target we made an overall assessment of the marketing opportunity and constraints abroad as well as the prospective buyers of the export product. The top management is committed to take all necessary measure to achieve our export target in quantity as well as quality Gatefarms International Trade Plc. Sebeta, Ethiopia, Telephone: Fax: , Mobile:

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