FSR AGROCHAIN LPO FINANCING: REQUEST FOR A CREDIT LINE LETTER
|FSR AGROCHAIN LPO FINANCING REQUEST FOR A CREDIT LINE LETTER|
FSR AGROCHAIN is a subsidiary of KADAPO FARMS which has been in the business of poultry production for the ten years. FSR AGROCHAIN is the marketing arm which is focused on chicken meat processing business because they want to leverage on the vast opportunities available in the value chain. FSR AGROCHAIN is a privately registered company involved in the marketing of processed broiler meat.
At FSR AGROCHAIN, our customer’s best interest will always come first, and everything we do is guided by values and professional ethics. We ensure that we hold themselves accountable to the highest standards by meeting client’s needs precisely and completely. As a firm, we cultivate a working environment that provides human, sustainable approach to earning a living, for our partners, employees and clients. FSR-Agro chain was setup as an agricultural marketing storage and logistics company. We are involved with the aggregation of farmers, working with a farmer’s network of small scale farms with capacity ranging from 1,000-10,000 birds.
As aggregators we market potential end users customers who purchase dressed, processed and frozen chicken. These chicken are then sourced from farmers (live) or from existing processors (frozen) and supplied to our clients.
We are seeking for financing to enable us purchase the products and supply. FSR Agro chain is not involved in direct farming.
We are seeking for a credit line of
N7m million over a one year period but in cycles of 30 days. This funds will enable us service our LPO’s and other orders.
FSR AGROCHAIN was incorporated a year ago with its main office located at No, 20 Sulu Gambari Way Ilorin and also our Lagos office at 17, Akintoye Shogunle Street Ikeja. We have vast experience in aggregation of poultry farmers, served as an aggregator for the Kwara State Government anchor borrows program for 100,000 birds and are currently aggregating 200,000 birds for the comprehensive help and poverty alleviation initiative. We also have sales experience supplying Coinbox Nig Ltd and others including JMK restaurants, Chronicle pizza, and a host of hotels in Ilorin in addition to NYSC orientation camp in Ilorin.
FSR AGROCHAIN is a standard chicken meat processing company that is committed to producing well processed chicken meat for the Nigerian market. They are in the chicken meat processing and marketing to make profit and they are going to do all they can to achieve their business goals, aim and objectives.
We are involved in;
- Processing and marketing chicken meat on a commercial level.
- Distribution of well processed chicken meat throughout the country.
- Demand creation for processed Chicken.
- Liaising and connecting with direct farmers.
The team is able led by Dapo Robinson. He has over 20 yearsworking experience in areas of poultry farming and has actively worked in the organized private sector. He holds a Bachelor of Science degree in Geography and a Master of Science degree in Tourism Development.
Mrs Aduke Robinson
Aduke Robinson holds a Bachelor of Science degree in Accounting and a Masters of Business Administrations. She also has over 20 years’ experience in the organized private sector. She is currently in charge of firm’s business development and demand creation.
Mr. Gbenga Odedeji
Gbenga Odedeji handles sales, marketing and logistics in Lagos and its environs. He holds a Bachelor of Science degree in Sociology. He is a certified Project Management expert from the Project Management Institute (PMI). He is versatile in People Management and a resource sales person.
Naturally, the target market are those who are the end consumers of processed chicken meat. Those who benefit from the business value chain of the poultry processing industry is all encompassing; it is far–reaching.
Loads of households consume processed chicken meat. So also, almost all hotels and fast food restaurants sell chicken meat. In essence a chicken processing company should be able to sell its processed chicken to as many people as possible.
In view of that, we have positioned our business to attract consumers of processed chicken from all over the country. We have conducted our market research and survey and ensure that we meet and surpass the expectations that was set for the business.
In view of the above, our market is segmented into 3;
The institutional market includes corporate bodies, hotels, and restaurants.
The informal Marketincludes are resellers and wholesale buyers. They operate on a payment on delivery and their purchasing volume is higher than the institutional.
The ‘Basic’ groupare the final retailers, who also operate on a payment on delivery.
For the institutional Market, we already have contacts and existing working relationship with the following organizations:
1. Nestle staff canteen Agbara
2. Sunpack Nig Ltd Agbara
3. Coinbox Nig Ltd Maryland
4. Farmfunds Nig Ltd Oregun
5. Malibu Hotels Agbara
6. Pacific Crown Hotel Agbara
These group has a potential demand of 6 tons per week.
In the informal sector, we have appointed 2 major distributors within Ijora market. The distributors are saddled with the responsibilities of liaising with and re-distributing the products to the retail mass market. This group of client have a prospect of about 5 tons per week.
Our key comparative advantage is that we are aggregators and not farmers, so we can assure our customers of consistency in supply. We also work with our assigned processors to deliver the goods at our customer specification e.g. 1kg whole chicken cut, 4chicken, laps breast etc.
As aggregators, we have a network of farmers and processors who can meet our customers required demands. We also currently outsource our cold delivery and have a rented cold storage in Ijora.
We are seeking for a credit line of about N7m (Seven Million Naira). This will help us meet up and process our various Local Purchase orders (LPO’s) timely. It will also help the firm to expand its current supply strength capacity. This is a revolving transaction.
We are proposing a finance arrangement that will be structured in such a way that business risk will be adequately address. Part of the supposed structured will include the following”
1. Funding will be released directly to the farmers after the supply of birds has been confirmed.
2. Receipt of funds from sales will be made directly to the fund provider.
3. A post-dated bank cheque will be made available once supply is made.
4. The fund provider will in turn disburse excess of money received after deducting its Principal and interest amount as agreed accordingly.
Other measures and strategy will also be worked upon for the smooth operations of the business.