RWAMUGUTA FARM

KYEITAGI-KENSHUNGA

NYABUSHOZI

P.O BOX 5

RUSHERE-KIRUHURA

12TH SEPTEMBER 2017

Our ref: rwam farm

Your ref:………

ATTENTION

PROPOSED ESTIMATE FOR THE FARM IMPROVEMENT OF MR. JOSHUA

TUSINGWIRE OF KYEITAGI-KENSHUNGA NYABUSHOZI COUNTY
KIRUHURA DISTRICT.

0702960254

kireetwaherbert@gmail.com
1.0 BACKGROUND

My name is Joshua Tusingwire ………… years of age and a Ugandan by birth. I

permanently reside in Ijwara village, Magondo Parish, Burunga Sub-County, Kazo
County, Kiruhura District.

My family has deep roots and strong passion for cattle grazing, banana farming, goat
rearing inclusive and carries out these activities with great passion and commitment.
Cattle grazing has been the family’s livelihood and a major source of income since time
immemorial.

Due to the need to transform the family’s source of livelihood, over the years, I have
invested a lot of time in farming to improve on dairy production, banana plantation
farming as well as goat rearing.

My strong and deliberate objective is to transform our farming practices from

subsistence to commercial farming, that is to say improve on our animal breeds, have
constant water supply systems, improve on milk production and better quality breeds.
This will boost income, food security, provide employment opportunities and contribute
to national development.

As a result of the need to transform and improve our farming income, I have been
engaged with expanding farming activities and currently I operate a mixed farm
(Rwamuguta Farm) in Ijwara village, Magondo Parish, Burunga Sub-County, Kazo
County, Kiruhura District. The farm sits on 100 hectares conducive for dairy, goat
rearing and 2 acres of banana plantation on situate 2km away from a tarmac road hence
an easy access to market of all its produce.

The farm employs both permanent and temporary staffs myself included who attend to
different activities and these are directly remunerated from the proceeds accruing from
sale of different farm products.
2.0 BRIEF OVERVIEW OF THE FIRM

2.1 Production capacity

The farm currently has about 50 heads of cattle of Frisian breed. On daily basis, the
farm produces between an average of 30 litres of milk which is sold to the farmers’ dairy
at Kazo Town where its first cooled and transported later in Sibyangu dairies.

On average each lactating cow produces 8 litres of milk on a daily basis.

The family is also engaged in Matooke Production which fetches about 750,000/= on
average per month. The farm plans to increase capacity of the banana plantation to be
able to generate at least 1.5m shillings per month.

More so, the farm is also engaged in goat rearing which is also an additional income.

2.2 Challenges experienced

 Strong and long droughts that affects water and pastures.

 We experience pests and diseases. The major disease affecting cattle is the East
Coast Fever which has been continuously managed by vaccination.
 Also banana bacterial wilt (BBW) threatens banana production as well as theft in
goats which has been reduced with the setting of permanent structures on the
farm/fences.
 The farm lacks enough improved pastures.
 Lack of enough permanent and quality water supply on the farm. Some of the
existing dams need to be rehabilitated as well as constructing new ones for the
farm to have sustainable water supply throughout the year.
3.0 PURPOSE OF THE LOAN

The major purpose is to facilitate putting in place of critical facilities that will accelerate
and improve the farm’s ability to reach full production capacity, these will simply boost
production in terms of quantity and quality so as to generate more revenue and
contribute to national development.

I strongly believe that the farm’s full production potential has not been achieved and
therefore the need to put in place a number of facilities (measures) that can and will
stimulate production and add value to the farm.

3.1 Activities to be undertaken

 Construction of additional 02 dams.

 Purchase of a water pumping or distribution system to supply different padlocks
with water
 Put in place organized padlocking systems
 Reservoir tanks
 Pasture establishment
 Water troughs
 Banana extension
 Bush clearing

Production from 300 to 450 litres per day

Note: the above activities are critical in light of the above farm’s desire to transform
from subsistence to commercial farming.
3.2 Proposed activity budget

S/N Activity Quantity Unit cost Total cost Remarks

Description (shs) (shs)

1. Dam construction 1 7,000,000 7,000,000 Critical and

urgently required to
install water system

2. Water pump and 1 6,000,000 6,000,000 To have constant

accessories on the supply of water in
farm the farm

3. Paddocking 3 3,000,000 90,00,000 Critical for pasture

preservation.

4. Banana plantation 3 15,466,667 46,400,000 It’s urgently needed

to target the coming
rains.

5. Water troughs 4 5,408,750 21,635,000

6. Bush clearing 24,000,000 Should be done

early so as to
benefit from the
rains

7. Piping system

8. Pasture 15,000,000 Early preparations

establishment are needed to start
at the beginning of
 rains.

10. General 28,745,000 If well done in time

Management for it will improve on
Goats and Dairy production.

GRAND TOTAL 201,000,000

4.0 EXPECTED INCOME WITH LOAN ACQUISITION AND IMPLEMENTATION OF
THE PROPOSED ACTIVITIES (PROJECTED CASH FLOW YEAR 1)

YEAR 1

Item Quantity Rate (shs) Monthly income Annual income

(shs) (shs)

Milk sales 300 litres per 1,000= 300,000 3,600,000

day

Goat sales 20 120,000= 2,400,000 28,800,000

Banana sales 20 12,000= 240,000 2,880,000

TOTAL 35,280,000

YEAR 11

Item Quantity Rate (shs) Monthly Annual income

income (shs) (shs)

Milk sales 450 litres 1,000=

per day

Banana sales 100bunches 12,000=

Goat sales 30 15,000=

TOTAL
YEAR 111

Item Quantity Rate (shs) Monthly Annual income (shs)

income (shs)

Milk sales 450 litres 1,000=

per day

Banana sales 150bunches 120,000=

Goat sales 40 12,000=

TOTAL

INCOME AND EXPENDITURE FOR 3 YEARS

Enterprise Income Expenditure Variation Remark

Banana Profit

Goat Profit

Dairy Profit

TOTAL Net Profit

5.0 Annual

I propose and request that post bank Uganda facilitates me with Ug Shs 50,000,000/= (fifty
million shillings). The remaining amount shall be catered for by revenue proceeds from
activities on going on the farm.

With the loan availed, the highlighted activities shall be immediately undertaken and proposed
structures put in place.
Subsequently production shall be enhanced and more sales revenue realised as a result of
expanded capacity and use of improved farming systems.

5.1 Repayment plan

The loan shall be catered for from milk and cattle scales from the farm, banana and goat
inclusive and the repayment shall be made on monthly installments.

6.0 Final remarks

It is my humble prayer that this proposal, is given the kindest and most urgent consideration
and thus look forward to your most considered support

Yours sincerely,

QUOTATION FOR THE PLANTING OF A BANANA PLANTATION

Coverage: 3 Acres

No Item Description Qty Rate Amount

1. Cultivation Primary 3acres 200,000 600,000

tillage

Secondary 3acres 240,000 720,000

tillage

2. Pits 3x3ft 440pits x3 500 660,000

acres (1320
pits)

3. Purchase of suckers Suckers 1320 1,000 1,320,000

4. Transportation of FUSO 2 trips 150,000 300,000

 suckers

5. Loading and 150,000

offloading costs

6. Planting costs Planting 1320 banana 500@ 660,000

suckers

7. Fertilizers Organic 10 trip 150,000 1,500,000

(forward)

8. Fertilizer application 3 acres 100,000 300,000

costs

9. Purchase of mulches Dray grass 10 lorries 210,000 2,100,00

10. Loading and 20 lorries 50,000 1,000,000

offloading

11. Mulching 3 acres 50,000 150,000

Casual workers 2 150,000x2x12 36,000,000

Wheel barrows 2 150,000x2 300,000

Pangas 2 10,000 20,000

Hoes 2 10,000 20,000

Stakers 600 10,000 600,000

Sub total 46,400,000

QUOTATION FOR THE BUSH CLEARING

Land Coverage: 43 Hectares

NO ITEM DESCRIPTION QTY RATE AMOUNT

1. Bush clearing Hand hoes 43 hectares 200,000 1,600,000

uprooting

2. Demolishing of Bull dozers 43 hectares 3,500 20,000,000

ant hills

SUB TOTAL 21,600,000=

QUOTATION FOR THE EXCAVATION OF A VALLEY DAM & FENCING

Capacity: 100 x 50 x 5m

NO ITEM DESCRIPTION QTY RATE AMOUNT

1. Transport of Low bed trucks 2 500,000 1,000,000

machines

2. Fuel Diesel 370 ltrs x 3,500 12,950,000

10 days
(3700ltrs)

3. Hiring costs 2machines for 10 days 1,000,000 10,000,000

10 days

4. Fencing

i. Poles Concrete 100 35,000 3,500,000

 ii. Digging of holes 100 500@ 50,000

iii. Aggregates Forward 1 trip 250,000 205,000

iv. Cement Ordinary 8 bags 6,000 264,000

v. Sand Forward 1 trip 75,000 250,000

vi. Binding wire 5kgs 1,000 30,000

vii. Chain link mesh 15m 10 rolls 750,000

viii. Stretching wire Meters 600m 600,000

ix. Labour Casual 500,000

SUB TOTAL 30,099,000=

QUOTATION FOR THE GENERAL MANAGEMENT OF GOATS

NO ITEM DESCRIPTION QTY RATE AMOUNT

1. Casual workers Monthly 2 150,000x12x3 5,760,000

yrs

2. Accaracides Monthly 5litres 75,000 375,000

3. Treatment Treatment drugs 30,000x12 360,000

SUB TOTAL 6,495,000

QUOTATION FOR THE PADDOCKING OF THE LAND FOR GRAZING

Land Coverage 43 Hectares

NO ITEM DESCRIPTION QTY RATE AMOUNT

1. Wooding poles Treated ones 2,000 4,000 8,000,000

2. Excavation of pits 1x2ft 2,000pits 500 1,000,000

3. Transport for Lorry 4 200,000 800,000

poles/posts

4. Barbed wire Samba gauge 80 260,000 20,800,000

16mm

5. v-nails Sacks 2 sucks 200,000 400,000

6 Casual labour 2,000,000

SUB TOTAL 33,000,000=

QUOTATION FOR THE CONSTRUCTION OF A CONCRETE RESERVOIR TANK

Capacity: 50m3

NO ITEM DESCRIPTION QTY RATE AMOUNT

1. Sand Forward 15 trips 120,000 3,750,000

2. Cement Ordinary 150 bags 33,000 4,950,000

3 Iron bars 10mm High tensile 100 pcs 18,000 1,800,000

4 Iron bars 12mm High tensile 240 pcs 26,000 6,240,000

5 Aggregates Forward 16 trips 180,000 2,880,000

6 Hardcore Forward 4 trips 100,000 400,000

7 Bricks Clay burnt 10,000 300 3,000,000

8 Timber

i 12x1mm Soft wood 100 pcs 8,000 800,000

ii 4x2mm Soft wood 300 pcs 3,500 1,050,000

9 Plywood 50 pcs 15,000 750,000

10 Strut supports Trees 150 5,000 160,000

11 Water proof 40kgs 4,000 250,000

12 Binding wire 50kgs 5,000 450,000

13 Bituminous paint Non toxic 3 tin 150,000 200,000

14 Stirrups 20 pcs 10,000 1,500,000

15 G1 spigots and 1lumpsum 1,500,000 1,500,000

pipes

16 Wire nails 50kgs 40,000 2,000,000

17 Metallic lid 2 50,000 100,000

18 Breathers 2 50,000 100,000

19 Transport costs lumpsum 1,000,000 1,000,000

20 Labour charges lumpsum 9,000,000 9,000,000

21 Miscellaneous lumpsum 3,000,000 3,000,000

SUB TOTAL (i) 44,130,000=

QUOTATION FOR THE CONSTRUCTION OF FOUR (4) WATER TROUGHS

NO ITEM DESCRIPTION QTY RATE AMOUNT

1. Iron bars 12mm 28pcs 26,000 7,280,000

2. Cement Ordinary 160 bags 33,000 5,280,000

3 Aggregates 5 trips 200,000 1,000,000

4 Welded mesh R8 10 pcs 18,000 360,00

5 Sand Plaster floor 5 trips 120,000 600,000

6 Hardcore 5trips 100,000 500,000

7 Timber Lumpsum 500,000 500,000

8 Binding wire 20kgs 5,000 100,000

9 Wire nails 25kgs 25,000 625,000

10 Water proof 30kgs 3,000 90,000

cement

11 Spigots 10 30,000 300,000

12 Labour charges 5,000,000 5,000,000

Sub-total (iii) 21,635,000/=

PIPELINE AND PLUMBING WORKS
DESCRIPTION QUANTITY RATE AMOUNT

Pump davey twin impeller 1 20,000,000 20,000,000

Transmition HDPE pipe 2 250m 8,000 2,000,000

Distribution pipe HDPE pipe 50 & 40mm 810m 4,250 3,442,500

Valves 50mm 7 60,000 420,000

Pump fittings 1 300,000 300,000

G1 pipes (40mm) 2 85,000 170,000

G1 fittings 1 250,000 250,000

G1 pipes 90mm 2 230,000 460,000

Non return valves 1 120,000 120,000

Tephrone tapes 20 3,000 60,000

Wash out 1 180,000 180,000

Transport for material 1 200,000 200,000

HDPE fittings 1 750,000 750,000

Pump house 1 1,800,000 1,800,000

Excavation 110m 300,000 300,000

Plumbing labour 2,000,000 2,000,000

Contingency 1,000,000
Sub-total (iii) 33,152,500/=
Total for (I, ii,&iii) 98,917,500/=
QUOTATION FOR THE GENERAL MANAGEMENT OF DAIRY

NO ITEM DESCRIPTION QTY RATE AMOUNT

1. Casual workers 4 150,000x12x3 21,600,000

yrs

2. Accaracides 38 litres 75,000 2,850,000

3 Vet. Doctor 1 400,000x12 4,800,000

4 Treatment 100,000x12 1,200,000

5 Supplements 150,000x12 1,800,000

SUB-TOTAL 32,250,000/=

PASTURE ESTABLISHMENT

NO ITEM QUANTITY TYPE UNIT COST TOTAL

1. Land clearing 5 acres

2. Primary 5 acres 400,000 2,000,000

cultivation

3 Secondary 5 acres 400,000 2,000,000

cultivation

4 Buying seeds 300 sacks Nappier 35,000 10,500,000

5 Planting 5 acres 200,000 1,000,000

6 Fencing 5 acres

7 Wooden poles 1,000 6,000 6,000,000

8 Barbed wire 10 rolls Samba 270,000 2,700,000

V Nails 50kgs 6,000 300,000

TOTAL 24,500,000=

SUMMARY

S/N ACTIVITY DESCRIPTION QUANTITY UNIT COST TOTAL COST

(SHS) (SHS)

1 Dam construction 02 30,099,000

2 Water pump and accessories on the 01 16,387,604

farm

3 Paddocking 04 33,000,000

4 Reservoir tank 01 44,130,000

5 Water troughs 04 21,635,000

6 Bush clearing 43hectares 21,600,000

7 Water from dam to reservoir tank 33,152,500

8 Pasture establishment 05 acres 24,500,000

9 Banana establishment 03 acres 46,400,000

10 General management for goats and 38,745,000

 dairy

GRAND TOTAL 309,649,104=

Prepared by

(DIRECTOR)