Treascope Enterprises is a well-located, commercial tomato processing operation focused on continuous production rather than absorbing seasonal harvest gluts that will increase incomes for smallholder farmers.
Budget Breakdown (approx)
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Problem Statement
Kenya is simultaneously one of the world largest tomato producer and the world’s largest importer of tomato paste. Although approximately 200,000 Kenya farmers grow over 1.5 million metric tonnes of tomatoes every year, half of their harvest is lost before reaching the market, and the remaining 50% is subject to significant downward pressure on price due to common gluts in the markets and the perishable nature of the crop.
Farmers, who are among Kenya’s most financially vulnerable population, bear the burden of both these post-harvest losses and this price uncertainty. Smallholder tomato farmers lack access to a consistent, large market for their produce, rendering them unable to consistently make a profit and dis-incentivized to increase their yields or change their farming practices. As a result, domestic supply cannot meet local demand for fresh tomatoes, which exceeds 2 million metric tonnes or $2.5 billion annually. The country supplements local demand for fresh tomatoes with $360 million (over 300,000 metric tonnes) of imported tomato paste annually. Kenya being one of the most populous country in Africa and the seventeenth most populous in the world – its population is expected to grow from 40 million today to over 240 million by 2050. This has grave implications for the country’s food security situation, given that it is heavily dependent on food imports. If global food prices were to spike and drive up the price of imports, as they did in 2007-2008, Kenya would struggle to feed its population
Treascope Enterprises is a well-located, commercial tomato processing operation focused on continuous production rather than absorbing seasonal harvest gluts can increase incomes over five times for participating smallholder farmers, who comprise 75% of Kenya’ workforce. Our model links farmers directly to paste production, simultaneously reducing poverty for smallholder farmers, who are among the country’s most vulnerable population, and decreasing Kenya’s dependence on an imported food product that is dietary staple in Kenyan cuisine.
Project Details
Treascope Enterprises is an Agro based company based in Nairobi, Kenya set up with a clear, dedicated and committed vision, to excel and grow into one of the best Agro based industries in Kenya. Our processing plant will be run by a team of experts that include Mr Calleb Otieno as the Chief Executive Officer. Treascope Enterprises will have tomato processing capacity of about 1,500 tons per day
Our Products and Services
Produce quality tomato sauce and paste for local consumption and for export.
Our Vision Statement
Become one of the leading ventures in the Agro Processing industry in the whole world, starting from Kenya.
Our Mission Statement
To provide a wide variety of processed tomato products to Kenya citizens.
Our Business Structure
Treascope Enterprises will have the following portfolio:
- Chief Executive Officer
- Accountant
- Production Manager
- Plant worker(s)
- Marketing and Sales Manager
SWOT Analysis
Strength
We have created and built a well based rapport with a handful of major players (agriculture merchants) in the agro – allied industry; both suppliers and buyers within and outside of the Kenya. Our management have also purchased some of the latest modern machines, tools and equipment that will helps us manage our tomato processing plant. We also have the best hands for the business in the whole industry.
Weakness
The time it will take to gain customers and boost our brand will be our major weakness
Opportunities
The opportunities that are the amount of people from the different walks of life that will need our products in their daily lives and activities.
Threat
Probability of a global economic downturn that will affect us negatively, bad weather cum natural disasters (droughts, epidemics), unfavourable government policies, a new competitor in our location and faulty machines.
Our Target Market
Our target markets are the food service industry, supermarkets and retail outlets The profile of our customer consists of the following demographic information:
- Male and Female.
- Married and Single.
- Combined annual income in excess of Kshs 500,000.
- Age range of 25 to 80 years.
Marketing and Sales strategy
We will market and supply our unique products to our connected outlets aggressively, focusing at first on local markets, and then on export options. We plan to emphasize the reliable year-round output of our processing plant and hardworking workforce as well as our ability to produce independent tomato products. We will also eventually develop a website and advertise on the internet.
Publicity and Advertising strategies
- Establish relationships with landscape contractors within the target market.
- Place adverts on both print and electronic media platforms;
- Make use of various online platforms
- Mount our Bill Boards on strategic locations
- Distribute our fliers and handbills.
Sales Forecast
We believe that our direct unit costs in the first year of operation include the costs for the agricultural supply force who will produce the tomatoes we process. These costs are roughly 35% of all direct costs each month.
We are projecting a growth rate of 20% of for the second year of operation, believing our advertising will bring in new customers daily. The sales projections are:
- First Year-: Kshs 5,500,000
- Second Year-: Ksh 11,400,000
- Third Year-: Kshs 33,000,000
Pricing Strategy
It will be based on offering our customers expert service and product knowledge, to build our marketing plan to reach diverse individuals and retailers, while also maximizing profits.
Business Model
We will generate revenue by manufacturing tomato sauce and paste, branding and packaging them and selling to our customers.
Market Analysis
Due to increasing standards of living in the cities and the rapid urbanization taking place in the rural areas, consumption of tomato based products is expected to go up steadily. Thus there is ample scope for a unit to come up in this product sector to cater especially to the semi urban and rural sectors of Kenya.
With high fluctuation in market prices of fresh tomatoes in the urban market, there are good prospects for tomato sauce and paste in place of fresh tomatoes in household sector. Besides the boom in the food service sector including fast food chain, has widened the demand potential for tomato sauce and paste.
Industry analysis
Agriculture comprises approximately 40% of Kenya’s GDP. It is the largest sector of Kenya’ economy, employing over 70% of the labour force. It has a large impact on many aspects of development, from the dietary and caloric needs of the population to the industrialization efforts and the overall quality of life of the people. Consequently, there is need to make agriculture economically viable by seeking a balance between efficient and productive agricultural enterprise and environmental protection and sustainability.
Competition
Major companies involved in this space include Osfa , which produces Kenylon, Chi Ltd, which produces Peppe, and Noclink Ventures, which produces Taima,. These multiple brands target Kenyan consumers without segmenting the market, and make little to no effort to differentiate themselves. Some brands such as Tasty Tom are packaged for individual consumption in Kenya after being bulk imported from foreign markets.
Our Competitive Advantage
- Use of custom-innovated equipment.
- Efficient production
- Unique experience in the Agro-based industry.
Generating Funding
- Raising part of the start – up capital from personal savings
- Raising a larger chunk of the start-up capital from banks (loan facility).
Milestone
- Business Name Availability: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Account: Completed
- Obtaining KRA Pin: Completed
- Application for business license and permit: Completed
- Purchase of all form of Insurance for the Business: In Progress
- Conducting Feasibility Studies: Completed
- Leasing, renovating and equipping our facility: Completed
- Generating part of the start–up capital from the founder: Completed
- Applications for Loan from our Bankers: In Progress
- Writing of Business Plan: Completed
- Recruitment of employees: In Progress
- Purchase of the needed software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arr
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