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Projects |
Broiler Chicken Operation
Al-Shiddi Group wishes to realize an
ambitious plan to enter the broiler chicken
market in the kingdom of Saudi Arabia. Currently
KSA imports a considerable amount of chicken to
meet growing domestic demand. The Al- Shiddi
Group is convinced that a significant
opportunity exists for the company to supply
this growing market from a start –up vertically
integrated broiler production and processing
operation.
The plan consists of developing fully integrated
broiler production and processing operations on
a number of green field sites over a phased
basis, and located on the company’s 8,000
hectare land base. The plan will involve
building approximately 270 poultry houses on
various standalone sites with due regard for bio
security measures and safeguards.
Diagram below gives an outline structure of the
proposed development plan and how the key
production stages integrate and flow from the
production of broiler hatching eggs on the
breeder farms to the hatching stage: to broiler
production or fattening stage; onto primary
processing or slaughter; and finally
distribution and marketing.
vertically integrated Broiler Chicken
Operation
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The company has already built a new feed mill
strategically located to the planned farms and
processing plant. Currently the feed mill, which
has a capacity to produce 20 tons per hours, is
at testing stage. The mill will supply the
company’s own farms and outside farms.
Review and
assessment of current business plan
Al- shiddi has a business plan for the project
which was prepared by a local consultancy; the
companies are now anxious to ensure this plan is
implementable and can achieve its stated
targets. They require a comprehensive review of
the plan to assess the following key elements:
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Primary and
secondary sources of information used. |
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Key assumptions and
projections- physical and financial. |
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Timelines and
phases assumed to implement the project
in full. |
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Capital expenditure
(CAPEX) program. |
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Sales projection by
volume, value, category and channel. |
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Transfer pricing
structures and arrangements between
profit and cost centers. |
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Product costing and
pricing strategies. |
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Operational and
divisional structures. |
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Distribution
strategy and costs. |
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Overhead and
operational cost structures. |
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Management and
staffing levels. |
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Corporate funding
structure and drawdown schedules. |
The objective of this assessment and review is
to stress test the underlying assumptions and
projections of the plan to identify any
significant weaknesses and gaps which could
seriously jeopardize project implementation.
Also, key recommendations are to be made on how
any weaknesses or gaps should be addressed to
ensure the plan is sufficiently robust and
reliable for the execution phase.
Al-Shiddi require a robust and realistic
development and implementation plan,
comprehensively addressing the issues listed
above to ensure the operation and its business
plan is optimally and successfully developed and
implemented over a phased basis within time and
budget.
Source and suitable strategic partner for
the company’s poultry
project
The Al-shiddi Group is a progressive and
expanding company and is very aware of the
benefits of working with local or international
strategic partners.
The group wishes to source a suitable strategic
partner for their vertically integrated broiler
chicken project. They see this as a major
opportunity for both the Group and a prospective
partner to share in the benefits of the business
as it grows and develops over time.
The project is still at a developmental stage
and the idea of such a partnership will be
explored and developed further over the coming
months. The benefits being sought by Al- Shiddi
to form a strategic partnership include the
following key areas:
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Industry knowledge and skills transfer. |
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Best practice management from farms to
sales- key benchmarking information /
measurement. |
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Production and market efficiencies. |
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Market and sales knowledge and
information. |
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Production development and innovation. |
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Management and systems skills |
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Training and mentoring of management and
staff. |
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Technical know-how and information at
farm, hatchery, processing and
distributions stages. |
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International contacts and
networks-services, information, markets
etc. |
Suitable partners may be sourced locally
or internationally. It is important that
adequate time and research is invested in this
process to find the most suitable partner that
has the best strategic fit with Al- Shiddi and
the potential to add value to its new venture.
Shrimp foundation Project
Location of the project
Location of the project is situated at 55 km in
south of Jizan city close to Jizan Agricultural
development company.
Area of the project
1.030 hectors
The relative importance of Jeezan Region
The bank of red sea in Jizan region is being
distinguished by clayey regions and costal
region too. There is found clayey soil that is
suitable for the breeding in aqua inside ponds
and pools made by clay and cement, and the
region of red sea in Jizan is also being
distinguished by increasing temperature in
northern regions. The seashore of Red Sea in
Jizan is being distinguished by not being
oscillation in temperature too and this is an
important and useful thing for navy breeding.
Recorded lowest temperature was 18 ̊C in winter
(It is worth mentioning that the shrimp becomes
dangerous when the temperature is 13 ̊C) and 33
̊C in summer. So the possibility of breeding is
two times.
It was finalized by the ministry of Agriculture
after analysis of clay, and the study of
climatic factors show that it is suitable land
or soil.
International shrimp market (exportation)
China is considered a biggest user of shrimp in
the world, and then, Japan, America and European
Union Countries consecutively.
It will be done with participation of the
marketing program for observing terms and
condition of shrimp products, its marketing
specifications and rationing with the
agricultural and international business due to
more demand in international markets.
Finance of the project
There are two ways to finance the project:
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Long term loan from the Agricultural
Development Fund (Agricultural Bank)
will be maid (paid) in equal instalments
during ten years, and 25% of instalment
value will be discounted (deducted) if
payment is made in given period or one
forth (¼) of loan amount will be
deducted and it is considered extra
income on the value of project. It is
expected that the value of the finance
from Agricultural Development Fund is
90,000,000 SAR or 24,000,000 US $. |
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Finance by the partners and other banks
is 186,269,360 SAR or 49,671,904 US$. |
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