RANCH NO: 74-MP,

3590 HA, ZONE 3

RANCHES

RANCH MANAGEMENT PLAN

Commercial Livestock Ranches

Central District
Ms Anitah Malapela
Ms Chipo Mpho Petros
Theme: Sustainable beef production is the way to economic diversification

Prepared for:
Ngwato Land Board
Prepared by:
Mabrix Enterprises (Pty) Ltd.
15/05/2015

TABLE OF CONTENTS

Contents
1.0 PARTICULARS OF APPLICANTS ................................................................................................................ 1
2.0 PROJECT OVERVIEW................................................................................................................................ 1
3.0 PROJECT IMPLEMENTATION (HOW THE PROJECT WILL BE EXECUTED) ................................................. 2
4.0 PROJECT OBJECTIVES (CONTRIBUTION TO SOCIO ECONOMIC DEVELOPMENT) .................................... 2
5.0 JUSTIFICATION OF THE BREEDING CHOICE ............................................................................................. 2
6.0 EMPLOYMENT AND MANAGEMENT SKILLS ............................................................................................ 3
7.0 LIVESTOCK MANAGEMENT PRACTICES ................................................................................................... 3
8.0 RANCH DEVELOPMENT ........................................................................................................................... 5
9.0 ENVIRONMENTAL ISSUES........................................................................................................................ 6
10.0 MARKETING........................................................................................................................................... 6
10. RISK ANALYSIS ......................................................................................................................................... 7
11.0 FINANCIAL PROJECTIONS ...................................................................................................................... 8

Ranch Management Plan

1.0 PARTICULARS OF APPLICANTS

1. NAME: Anitah Malapela
ADDRESS: P.O Box 1117, Orapa
Contact Number: 71310276
Nationality: Motswana
ID Number: 366428304
Application Category: WOMEN
EDUCATIONAL QUALIFICATIONS- BSc in Security Management (Edith Cowan
University, Perth, Australia), Certificate in Security Management, UNISA, South Africa
2. NAME: Chipo Mpho Petros
ADDRESS: P.O. Box 1527 Orapa
Contact Number: 71408621
Nationality: Motswana
ID Number: 77328005
Application Category: WOMEN
EDUCATIONAL QUALIFICATIONS- Bachelor of Business Administration, ACCA
(stage two)
COMPANY PROFILE
Mabrix Enterprises (Pty) Ltd is an emerging economic support player in Boteti Sub District,
Botswana; recently registered and seeking funding from the Citizen Entrepreneurial Development
Agency (CEDA) to deal in the business cattle production, arable farming and agro-business
projects. Its a local owned enterprise consisting two Batswana women directors.

2.0 PROJECT OVERVIEW

According to Centre of Applied Research (Crop-livestock systems development in Botswana, 2005) the
countrys economy has grown significantly and steadily over the last decades. In addition, families have
explored and exploited non-agricultural livelihood opportunities. Formal employment and government
support currently contribute more to rural livelihoods than arable and livestock sectors (BIDPA, 2002).
Therefore, it is important that the agricultural sector becomes more appealing, also to women, and
increases its productivity and returns. This would attract more full-time farmers. In brief, the agricultural
sector has to deal with a large but marginal natural resource base (that may further marginalized due to
global climate change) and growing competition for resources from the non-agricultural sector. Around
70% of the land is agro-climatically suited to cattle grazing. Given the small population of roughly 2
million people, cattle production has therefore considerable space.
The cattle industry has long been the dominant rural and national economic sector, boosted by exports to
the European Union. After the development of groundwater, the cattle sector has spread throughout most
of the country. Botswana has a large traditional and a small commercial cattle industry. The sector has
traditionally benefited from strong government support in the form of veterinary services, subsidies and
tax advantages as well as a well-developed beef processing infrastructure. The parastatal BMC holds an

Ms Anitah Malapela & Ms Chipo Petros

Ranch Management Plan

export monopoly on beef and operates across the country. The effective veterinary services have boosted
exports and were successful in limiting and eradicating disease outbreaks, with increased fencing, disease
control, water development, supplementary feeding, etc., there is still potential for greater incomes,
employment and overall stronger performance in the Botswana beef industry.

3.0 PROJECT IMPLEMENTATION (HOW THE PROJECT WILL BE EXECUTED)

The project is to be implemented in three distinct phases within a period of three years. The proposed
project will be located in the Boteti Sub-District, zone 7 within the central district.
PHASE

DESCRIPTION

Phase 1

Borehole drilling and equipping, reservoir construction, construction of perimeter fence,

accommodation, stocking of breeding stock, construction of handling facilities and
building storage facilities.
Construction of the fire breaks along the boundaries, construction of paddocks, range
assessment, creation of fodder production field.
Construct fire breaks along the imaginary boundaries, construction of additional
paddocks and reticulation of water to a radius of 1km to avoid over grazing

Phase 2
Phase 3

4.0 PROJECT OBJECTIVES (CONTRIBUTION TO SOCIO ECONOMIC DEVELOPMENT)

Improve national and household food security;

Diversify the agricultural production base and income levels and employment opportunities;
Provide a secure and productive environment for those engaged in agricultural related activities;
Develop and conserve scarce land and agricultural resources for future generations.
Increase agricultural productivity and output.

5.0 JUSTIFICATION OF THE BREEDING CHOICE

The producers have decided to rear Charolaise and Brahman breed. The Charolaise breed has changed the
nations thinking regarding efficient beef production standards. Today, Charolaise top all breeds in nearly
every category of performance in the records of beef performance testing organizations. The popularity of
the Charolaise is owed to nothing other than its own attributes. Charolaise have a deep, very broad body
with heavily muscled loins and haunches. The cattle are relatively easy calvers and cows boast fine
maternal instincts. Charolaise possess superior growth ability and have economically gratifying terminal
weights. They are so widespread in use that adaptability has been irrefutably proven.
The Brahman is mainly used for breeding and the meat industry. Brahman cattle are known for their
extreme tolerance to heat and are widespread in southern regions. They are resistant to insects due to their
thick skin. Brahman cattle live longer than many other breeds, often producing calves even at ages 15 and
older.

Ms Anitah Malapela & Ms Chipo Petros

Ranch Management Plan

6.0 EMPLOYMENT AND MANAGEMENT SKILLS

Ms Petros will be able to execute on the project because of her invaluable skills as she holds a Bachelors
degree in Business Administration, her managerial experience will enable her to take charge in the ranch,
ensure a focused leadership empowerment, strategic thinking, corporate sensitivity, project management
and managerial control.
Ms Malapela is also holding a Bachelors degree in security management, her skills and experience will
be implemented to enforce security principles on the ranch and on the livestock. A top down management
style will be used, in which hierarchy plays an important role in delegating and ensuring that objectives
are met. The communication and leadership model will be as shown below.

MS PETROS & MS MALAPELA

RANCH MANAGER

RANCH ASSISTANT

HERDs MAN

ROLES/ RESPONSIBILITIES:
PRODUCERS (Ms Petros and Ms Malapela)
Responsible for ensuring the purchase and implementation of appropriate technologies for the
project and ensure its sustainability and quality assurance with the aid of suppliers, specialists etc.
Establishing and managing profitable business development strategies
Overall responsibility for ensuring profitability of operation.
Ensure training of employees
RANCH MANAGER

The ranch manager will be responsible for day to day technical operations of the farm as well as
supervision of farm workers.
FARM WORKERS
Herdsmen will be responsible for the well-being of the animals on daily basis.
General work required to be done on the farm.

7.0 LIVESTOCK MANAGEMENT PRACTICES

In Botswana, livestock depends to a large extent on extensive grazing of native rangeland pastures. These
native ranch land pastures have low nutritive value and as a result do not adequately provide for the
nutritional requirements of livestock. This coupled with overgrazing contributes in no small measure to
low productivity and reduced farm income. The producers are to address this challenge by extensively
undertaking fodder production. Fodder production will not on its own provide all the feed requirements
for livestock. This will have to be complimented by appropriate grazing systems.
Grazing system is basically a planned effort by rangeland managers to leave some grazing areas unused
for at least part of the year. With respect to this particular management plan it will not be possible to
select a proper grazing system as that is contingent upon the uniqueness of the setting in which it is

Ms Anitah Malapela & Ms Chipo Petros

Ranch Management Plan

applied. The survey alluded to earlier on to determine topography; soils, vegetation type, general climate
etc will inform the selection of the grazing system.
Government has taken a variety of measures to boost the sectors performance and efficiency, in
particular promotion of fenced ranches with rotational grazing, artificial insemination, veterinary services
and disease outbreak control, including the expensive Livestock Identification and Trace-Back System
(LITS) to comply with EU import requirements. The implementation of proper ranch management
practices is essential in determining the quality and revenues that will be generated.
STOCKING RATE
The stocking rate is to a large extent influenced by the type plus density of animals to be reared. The
guiding principle in the ranch management will be quality as opposed to quantity. It will be ensured at all
times that the stocking rate does not exceed the carrying capacity of the ranch. Notwithstanding the
above, it is envisaged that the operations will start with at least 200 cows, 4 bulls.
CONTROL OF VELD FIRES
We will construct fire guards in and around our ranch to protect the vegetation in case of a veld fire from
outside. We will minimize the chances of causing veld fire from within our ranch; hence our employees
will be trained and cautioned on the dangers of starting fires.
RECORD KEEPING
Records will be kept to facilitate farm planning and budgeting. These are farm activities and transactions.
Records will assist in determining the profit and assess the financial condition of the project; it will enable
the promoter to compare their efficiency of production. Both production (breeding, livestock, ranch
records and labour) and financial records (sales, profit and loss, cash and payroll) will be kept.
PADDOCKING
We shall establish paddocks that we will assign to each type of animal. Paddocking will ensure that we
maintain a healthy grazing area for our stock. Paddocking also ensures easy access and follow-up on the
count of our animals to increase the tracking systems that we will implement with the help of veterinary
companies.
FENCING Knowing the exact boundaries of our ranch is a sign of good management and will help
avoid problems should question arise if and when neighbouring farms are sold. We will use permanent
fences around our ranch and temporary fences within our farm. We will use wood, barbed wire, wire
panels and electric fences to enforce security.
MANURE MANAGEMENT Solid, semi-solid, liquid; each of these will be handled in a different way
to effectively use the manure. We will also use the composting method for storage of our manure.
PASTURE MANAGEMENT By rotating pastures through the paddock system we will minimize any
run-off effects. A permanent work force will be established to carry out pasture maintenance, where these
will on a daily basis remove pasture weeds i.e. grasses/shrubs that are not eaten by the cows. In the
future, equipment will need to be purchased for cutting overgrown grasses.

Ms Anitah Malapela & Ms Chipo Petros

Ranch Management Plan

SOIL CONSERVATION- We will minimize any activities that will cause deforestation and we will also
ensure that we plant trees and plants where necessary to avoid soil erosion.
HEALTH CONTROL- The health control program for the farms will mainly be comprised of:
Spraying of animals: This will be done in the already established spray races, using a solution
of decatex or any other accaricide recommended by the veterinary staff. The spraying will take
place once a month during the dry season and every fourth day during the wet season. At the
time of spraying, it is important to ensure that every animal goes through the spray race, as such
an inventory of all animals will be carried out at every time of spraying. The veterinary personnel
will from time to time advise management.
De-worming: The Adult herd will be de-wormed once every four months and the calves will be
de-wormed every month.
Vaccinations: Vaccinations will be carried out depending on the disease threat in the
area/neighbouring districts. Veterinary assistant/doctor will be consulted to advice the farm every
year of what vaccinations if any that should be carried out.
Sick animals identification: The herds-men have daily contact with the animals, they will
therefore be trained and have the responsibility of looking out for signs/symptoms of any sick
animals. These have to immediately be reported to management for either treatment or carrying
out any preventive measures to the rest of the herd.
BRANDING: For the purpose of identification and registration, the farm will brand all animals. A
branding program with the oldest animal branded no. 1 and the youngest having the highest number
will be adopted. Branding will be done once every four months. Before being branded the calves will be
identified by piercing the ears following punch numbers for each spot.
DE-HORNING: In order to avoid the animals from causing injury to each other all heifer calves will be
de-horned. This will be carried out once every four months.
CASTRATION: some of the bull calves will be castrated, nurtured and later sold off for beef.
Castration will be carried out once every four months. There will, however, be a selection of some bull
calves that will not be castrated, but kept for breeding purposes or for sale.

BREEDING
The basic objective of animal breeding is to enhance the efficiency of production and the quality of the
product for the end-consumer through planned genetic change. The choice of whether to straight breed or
cross breed will be related to your ability to match your cattle, the environment and the market. A normal
breeding season that start on January and end on March where calving will be expected at early October
to December will be followed but more advanced techniques such as artificial insemination will
effectively be implemented.

8.0 RANCH DEVELOPMENT

The ranch will be developed in two distinct phases as indicated in the table below:

Ms Anitah Malapela & Ms Chipo Petros

Ranch Management Plan

PHASE 1 ACTIVITIES

DURATION /
MONTHS

PHASE 2 ACTIVITIES

DURATION /
MONTHS

Erecting perimeter fence

Survey
Citing of water point(s)
Drilling

12-24

Erecting internal fences

Construction of handling facilities

Establishment of fodder crop

Stocking

Commence commercial activities

24-36

9.0 ENVIRONMENTAL ISSUES

Environment: This shall entail the clearing up of the internal line for perimeter fencing as well as
internal fences (paddocks). Clearing to be done for fodder production shall be carried out with
utmost care for vegetation and soils to ensure that the place is not disturbed of its natural
environment outlook.
Sanitation: Construction of ablution facilities conveniently on the ranch shall be done according
to the standards of the Ministry of Health.
Waste Management: Strategically positioning of waste skips and rubbish bins around the ranch
to ensure that all material waste is disposed off in an environmentally sound manner. The rubbish
bins to be adopted are those with a self-closing mechanism accompanied with maintenance
workers who will be picking up any material waste on the ranch.
Chemicals: The use of chemicals will be minimal. They will be used mainly for cleaning
purposes and veterinary services. Organic agriculture will be practiced for fodder production.
Waste Water: Will be collected and recycled and reused to water the gardens and other suitable
purposes.
Food and Beverages: Provision of food and beverages will be guided by clear waste
management, health and safety standards to be religiously adhered to by each worker at the ranch
or visitors.
Harmful Emissions: Effects of harmful emissions such as automobile emissions, industrial
emissions and the emissions from the power using coal are negative and our facilities shall not
produce any of the harmful emissions such as CO2.
Fire Fighting: For safety smoke detectors, automatic water sprinklers and fire extinguishers will
be installed. We shall put the response numbers for fire fighters in every building and ensure
there are easily accessible escape routes from any buildings and ranch. Fire breaks will be
constructed along the perimeter fences as well as along the internal fences.

10.0 MARKETING
The Botswana cattle farming industry a specialised Livestock husbandry sector is in a period of relative
stability. The market is growing in response to the support from government and farmer educational

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Ranch Management Plan

initiatives. Although the cattle sector in Botswana has remained the mainstay of the economic activity in
much of rural areas the benefits have not been gained much especially that most of the projects are small
scale and not professionally run. The Botswana Meat Commission is the cornerstone of Botswana Beef
Industry in that about 70 % of cattle destined for slaughter go through it. The BMC act stipulates that the
commission should promote the interests of the livestock industry of Botswana and in particular ensure
that as far as reasonably possible all livestock offered or available for sale in Botswana are purchased at
best possible prices. Steers will be marketed at slaughter weight of 400kg live mass at 18 months old after
being fattened at the farm feedlot.
Our target market is not only BMC, but it ranges from individuals to food processers, restaurants,
supermarkets, Lodges, Hotels, Educational Institutions, Hospitals & Clinics, Government and Butchers.
PROJECT VIABILITY
There is great potential for growth in the industry since coupled by growth in population largely due to an
influx of foreigners into Botswana. We will grow this project through in house intensive breeding,
purchase of more breeding stock and investing through new farmlands in other areas around Botswana.
This species are easy to be managed and handled by women and children hence assuring the viability of
this project. Our product portfolio is to increase based on market demand and may venture into other
related businesses. There is a growing desire among the community for easily accessible and reasonably
priced fresh meat and milk consistent with the cultural make-up of the community. We will also consider
investing in other related business activities such as birds rearing (Chicken, Goose etc.) as one of his
future goals.
DISTRIBUTION CHANNEL
We shall use a truck to be purchased to deliver the goats to the customers and also for going to procure
them from suppliers. When we start producing our anticipated high quality meat, we would be consistent
in our supply to the market so that our customers will always have the privilege to choose the meat that
comes from our animals. Consistency is a fundamental aspect for the success of any farmer in this market
hence it should be observed at all times. It will be important therefore that we become consistent in our
supply of high quality meat to our market.

10. RISK ANALYSIS

PROJECT RISK

CONTINGENT MEASURE AND SOLUTION

1. Death of cattle as a result of

uncontrollable disease/Poor
health due to disease.

The Project producers will always seek advice from the experts such as veterinary doctors.
The project promoters will approach a suitable Insurance Company and will insure the
cattle as soon as the project commences.

There are predators such as

Lions, Jackals and Hyenas
which can impact negatively on
the production of livestock.

Routine checks will be done by the cattle keeper who will ensure that the livestock is safe
at all times.

Ms Anitah Malapela & Ms Chipo Petros

Ranch Management Plan

Death of cattle and small stock

as a result of accidents

If cattle are to be transported we will choose times which there will not be much traffic
such as early hours for transportation and also observe good driving.

Death of cattle as a result of fire

, explosion and lightning

Proper farm fire protection mechanisms such a fire guards will be part of the ranch.

Theft of cattle

Cattle will be branded and inserted with bolux and other resources to ensure security of
livestock.

Death of cattle as a result of

poisonous plants

If plant poisoning is suspected, a post-mortem, examination of the rumen contents would

provide confirmation of the cause by finding leaves and stems of the poisonous plant. We
will continually identify poisonous plants and destroy them through burning (just the tree
and not the velds), uprooting or cutting. Further relevant medication will always be
available.

Retention of experienced Staff

Introduce staff incentives for them to stay and also ensure all staff are trained on cattle
diseases, symptoms, cure and feeding among other areas.

Impotency in male cattle

The project will identify males with good hereditary background. The project will also
keep hereditary records of its current stock. We will always have substitutes male stock to
service the females

SWOT ANALYSIS/RISK SENSITIVITY

Strengths

Weakness

Management is committed and confident.

Market demand is not seasonal
Market for the sale of locally produced cattle is guaranteed by the
B.M.C and there is a private sector market which offers better prices
Opportunities

We cannot supply end-users abroad

Limited budget.
Processes and systems have to be developed.

The ability of small stock to browse makes them of particular

importance to Botswana, where there is an abundance of species for
them to browse (acacia for example) which provides forage year
round and will come into leaf before the rain start.
Availability of VET support from government
Availability of raw materials e.g. feeds, vaccines
Availability of government short training courses on animal
husbandry

Threats
Disease outbreaks
Retention of key staff critical.
Possible negative publicity on Botswana meat and
the susceptibility of disease
Staff turnover.

11.0 FINANCIAL PROJECTIONS

Setting both production and economic goals is important for livestock producers. Producers should
consider striving for the higher number of pounds weaned per exposed female. Producers will consider
their annual cost to maintain their breeding herd, whether it is by purchasing or raising replacement
animals. This cost or value of the net inventory change will be greatly affected by such things as the cost

Ms Anitah Malapela & Ms Chipo Petros

Ranch Management Plan

of replacement animals, the number of productive years spent within the herd, and the cull value of these
animals when sold.
Table 1: Project Capital Costs
QUANTITY

UNIT COST

TOTAL COST

200

3,500.00

700,000.00

10
21

6,000.00
1,000.00

60,000.00
21,000.00

Building & fencing materials for kraals

Labour for construction (kraals and shelters)

1
8

40,000.00
1,200.00

40,000.00
9,600.00

Bore hole drilling and equipment (water for 12 months)

100,000.00

100,000.00

Breeding stock 200 @ 3000.00

Bulls 10 @8000.00
Feeding and drinking troughs

Sub-total
Operating costs
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930,600.00
12

800.00

9,600.00

2
1

21,600.00
36,000.00

43,200.00
36,000.00

Managers salary @ P2000.00 per month for 36 months

36

2,000.00

72,000.00

Protecting Clothing
electricity for 3 years
Sub-total
Gross total
10% contingency
Total project costs

4
36

500.00
2,000.00

2,000.00
72,000.00
162,800.00
1,093,400.00
109,340.00
1,202,740.00

Labour for two herd boy @ P600.00 for 36 months

Vet. Medicines, equipment and supplements

Item/Period
Sales
Opening Balance
Males
Females
Total sales
Fixed Costs
Breeding stock 200@3500.00
Bulls 10@6000.00
Transport (hired)
Feeding and drinking troughs
Construction material

Table 2: Projection Income Statement

Year 1
Year 2
Year 3

Labour for construction

Sub-total
Operating costs
Loan Repayment
Labour for 2 herd boys @ 600*1yr

Ms Anitah Malapela & Ms Chipo Petros

Year 4

0.00
0.00
0.00

48,600.00
31,200.00
79,800.00

72,000.00
81,100.00
153,100.00

83,200.00
102,600.00
185,800.00

700,000.00
60,000.00

0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00

4,500.00
814,030.00

0.00

0.00

0.00

7,200.00

7,200.00

7,200.00

7,200.00

12,000.00
2,030.00
40,000.00

10

Ranch Management Plan

Farm Assistant/Driver
Managers salary @2000*1yr
Vet. Medicines, equipment & suppl.
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electricity Usage
Sub-total
Total costs

9,000.00
24,000.00
9,000.00
2,250.00
3,000.00
54,450.00
868,480.00

9,000.00
24,000.00
9,000.00
2,250.00
3,000.00
42,450.00

9,000.00
24,000.00
9,000.00
2,250.00
3,000.00
42,450.00

9,000.00
24,000.00
9,000.00
2,250.00
3,000.00
42,450.00

Total Cash Outflow

868,480.00

42,450.00

42,450.00

42,450.00

110,650.00

143,350.00

0.00 37,350.00

Net Cash Balance

Table 3: Cash Flow Projections

Month:
Receipts
Sales
Total Receipts from CEDA

Pre-Start

YEAR 1

YEAR 2

YEAR 3

0
1,202,740.00

79,800
79,800

153,100
153,100

185,800
185,800

0
1,202,740
0
0
0
0
0
0
0
0
0
0
0
1,202,740

16,200
0
3,000
5,000
1,500
1,000
1,000
100
400
800
9,000
3,000
100
41,100

16,200
0
3,000
5,000
1,500
1,000
1,000
100
400
1,000
1,500
3,000
100
33,800

16,200
0
3,000
5,000
1,500
1,000
1,000
100
400
1,000
1,500
3,000
100
33,800

Cashflow Surplus/Deficit (-)

38,700

119,300

152,000

Opening Cash Balance

38,700

158,000

Closing Cash Balance

38,700

158,000

310,000

Payments
Salaries( Herd boys and Managers)
Opening Stock(Project Costs)
Utilities
Repairs and maintenance
Insurance
Car Hire, Delivery and Travel
Telephone connection
Postage
Office supplies
Advertising and licensing
Vet. Medicines, equipment & suppl.
Training and development
Bank charges
Total Payments

NB: average selling price per animal: Cows- P4000, Heifers- P3600, Bulls- P8000m Tollies- P3800
The project will be viable according to the information provided in the above statements of the
financial analysis especially the sales and production forecast and this will depend on the management
of the ranch which will determine the outcome of the results of the project.

Ms Anitah Malapela & Ms Chipo Petros