FINAL BUSINESS PLAN

1 FINAL BUSINESS PLAN Executive Summary Molakeng Farming and Projects PTY (Ltd) was established in 2008. The aim is to process dairy products. The BUSINESS is processing Pasteurized Fresh Milk,Maas,Yoghurt and will start processing Cheese,and Milk Blended Juice. As part of the medium term plan,the BUSINESS will also start bottling purified water. Contact details are as follows,RP Molakeng(Thabo),Cell 084 777 5130 or Company Summary The Company is registered under Companies and Intellectual Property owner is the sole member of Molakeng Farming and Projects PTY (Ltd).

2 The Company started its Dairy Processing activity in December 2012. The Company has been experiencing a positive response to the market and it is on the growing Company is situated in the Eastern Free State,Qwaqwa. Products and Services The main products are Pasteurized Fresh Milk,Maas and BUSINESS will soon start processing cheese,milk blended juice and in the medium term will start bottling purified BUSINESS is situated in a highly populated area and there is no Company doing Dairy Processing nearest Dairy Processor is situated 72 kilometers away. There is no adequate choices in Dairy Products in the Eastern Free State because there is only four Dairy Processors who supply the area and all four of them are situated far products are not easily accessible because retail shop owners have to travel to the local Wholesaler to purchase BUSINESS will deliver directly to retailers.

3 Market Analysis Summary There is growing number of in the chain supermarkets and small shops which are situated close to Feeding Schemes management has been well coordinated and being managed effectively as compared to the past five years. There is a population growth and this is supported by the number of new housing was announced by the Free State Premier that factories in Qwaqwa will be re-opened. This was announced in his 2013 Provincial Budget Speech. There are many dairy farms in the Eastern Free State,in particular around Qwaqwa and many of them do not have supply BUSINESS owns a value chain because the owner runs a dairy farm where he is harvesting raw milk.

4 This value chain advantage will contribute towards sustaining the processing part of the expansion plan the BUSINESS will outsource milk from neighboring farms. Strategy and Marketing Plan Summary The Company products are cheaper because they are processed locally,therefore transport costs is BUSINESS enjoys local community support because its product label reads Processed in Qwaqwa and it gives local customers a sense of ownership. The BUSINESS will have to increase its processing capacity in order to achieve economies of scale. Products Existing products in the market are Pasteurized Fresh Milk,Maas and following products will be introduced to the market,Cheese,Milk Blended Juice, and bottled purified water.

5 Place The BUSINESS is situated where there are School Feeding Schemes,Chain Supermarkets and Small Shops,Factories,Two Regional Hospitals,Free State University Branch and a new Juvenile Prison Facility. Price The BUSINESS will cut the packaging costs by purchasing the label printing machine and increase the output capacity in order to compete with quantities and not only with Price. Promotion The BUSINESS is currently doing a door to door services of a local radio station and local newspaper will be used. Busines vehicles will also be branded. The BUSINESS will have a website.

6 Management & Staffing Summary The owner has a seventeen years of work experience in the area of Accounting and owner does his own Bookkeeping and dealing with compliance owner has completed the following education and trainings, Matric, BTech Corporate Administration,Foundation Leadership Programme, Milk Hygiene Training, and Dairy Cow Feeding and Milk Harvesting Training. The BUSINESS currently employs three full time employees and fourteen more people will be employed on a full time basis. A total of seventeen full time jobs will be created. The following positions will be created; (1)Director (1) factory Manager (1)Capturing Clerk (4)Drivers (4)Drivers Assistants (6)Processors Consistent milk input,consistent processing and product demand stimulation will keep all these jobs sustained.

7 Financial Plan The BUSINESS owns a 6m*4m factory ,30 liter pasteurizer,400 liter dip freezer,350 liter chest freezer and a 1tonne commercial BUSINESS has no financial asset in the form of cash. Request for Financial and non-Financial Services The BUSINESS needs R 4 429 Break-down Multipurpose Plate Pasteurizer R 900 Holding tube R 130 5000 liters raw milk tank R 250 Homogenizer R 534 2x500 liters incubator milk tanks R 500 Bottle Filler R 435 Sachet filler R 200 Chiller plant R 202 Cheese vat R 40 Air Compressor R 30 Cold Room R 15 Display fridge R 15 Air Conditioners R 13 Label Printer R 16 Installation/ factory lay out R 300 4xCommercial

8 Vehicles R 800 2x500liter transport tank R 10 Antibiotic test kit R 2 Office Equipment R 37 Equipment and installation quotation was obtained from GUTH contact details are as follows; Mr Mike Stafford,Cell 082 568 9967 and the website address is GUTH Company will do the following; factory Layout,Staff Training and Maintenance of Equipment. The BUSINESS will need assistance with Marketing.