Escolar Documentos
Profissional Documentos
Cultura Documentos
Agricultural Commodities
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CMK Consulting
Contents
1
Engagement Approach
Engagement Approach
Copyright 2014 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture
CMK Consulting
Oil Palm
Nigeria has an illustrious history as one of the focal points of the Oil Palm trade. Strategic importance of Oil Palm as a cash
crop was recognized as far back as the 19th Century.
Nigeria was the Worlds largest Oil Palm exporter and impressive infrastructure / institutions were put in place to facilitate
production and trading. Unfortunately, in the wake of the Oil Boom, these gains were reversed
Three dominant products are Special Oil Palm (SPO), Technical Oil Palm (TPO) and Palm Kernel Oil (PKO)
The Nigerian Vegetable Oil Industry can process 900,000 metric tons of palm oil annually, but due to inadequate supply,
several oil palm refineries are operating at 25% of installed capacity
Poultry
Poultry is the most common source of animal protein in Nigeria.
Commercial poultry population as at 2008 was put at 64 million birds (24 million layers and 40 million broilers)
Commercial poultry is a fast growing sector driven largely by urban consumption patterns, population growth & growth of
the fast food sector/catering services.
4
Engagement Approach
Copyright 2014 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture
CMK Consulting
Engagement Approach
Our proposed work approach is as illustrated below. It is based on a careful analysis
of your needs. More detail is provided in subsequent slides.
Develop common
understanding of
mandate and
outputs
Agree Work
Program and
Approach
Develop implementation
road map
Finalize feedback and
recommendations.
CMK Consulting
The relationships between key players in each of the value chains will be included as
part of the analysis.
Farm Equipment
Dealers / Fabricator
Input
Supplier
Producer/
Supplier
Small Scale
Commercial
Farmer
Fertilizer &
Veterinary Input
Supplier
Seed Dealer
Government
Research
Institutes
Aggregator /
Primary or
Wholesale
Trader
Processor
Small Scale
Commodity
Trader/Wholesaler
Artisanal
Processor
Small Scale
Processor
Medium Scale
Commodity
Trader/Wholesaler
Medium Scale
Processor
Benin Border
Large Scale
Processor
Common to Poultry,
Oil Palm , Rice &
Horticulture
Smuggler
Marketer /
Distributor
Intermediate Product
Importer (e.g. Oil Palm
& Brown Rice, Fruit
Juice Concentrate)
Supermarket
CMK Consulting
Thousands
Naira
Net Cashflows (A - B)
300.00
250.00
Seed purchase.
Soil preparation.
Nursery
preparation
Sales
revenue
200.00
212.59
150.00
Harvesting
costs
100.00
50.00
Weeks 0.00
(0.67)
(0.67)
(0.67)
(5.67)
(14.29)
(1.79)
(1.79)
(1.79)
(7.73)
(7.73)
(7.73)
10
11
12
-50.00
-100.00
(87.67)
-150.00
1
13
8
Unit
Cost
(NGN)
Year 0
(NGN)
Year 1
(NGN)
Year 2
(NGN)
Year3
(NGN)
Year 4
(NGN)
Year 5
(NGN)
Year 6
(NGN)
Year 7
(NGN)
Year 8
(NGN)
Sales Revenue
Special Palm Oil
Palm Kernels
XXX,000
139,050
232,200
349,650
403,650
531,900
XX,000
4,944
8,256
12,432
14,352
18,912
XX,000
XX,000
XX,000
XX,000
XX,000
2,496
2,496
2,496
2,496
2,496
XX,000
XX,000
XX,000
XX,000
XX,000
XX,000
45,000
Fertilizerb
XX,000
5,500
XX,000
Labour Costs
137,500
137,500
137,500
XX,000
Nurseryd
XX,000
Land Preparatione
XX,000
150,000
Transplantingf
XX,000
37,500
Weeding + Fertilizer
Applicationg
XX,000
Pruning/
Harvestingh
XX,000
3,600
3,600
3,600
3,600
3,600
Mill Operatorsj
XX,000
6,000
6,000
6,000
6,000
6,000
15,000
XX,000
XX,000
XX,000
XX,000
Total Cost of
Production (B)
XX,000
XX,000
XX,000
XX,000
XX,000
XX,000
XX,000
XX,000
XX,000
Contribution
(C = A B)
XX,000
XX,000
XX,000
XX,000
XX,000
XX,000
XX,000
XX,000
XX,000
9
Low
High
100%
High
Rewards
Low
0%
Risks
100%
10
Engagement Approach
Copyright 2014 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture
12
Engagement Approach
Copyright 2014 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture
Business Arrangements
Our professional fees for the arrangement described in this proposal are based on the level of
staff and time required to complete the assignment.
We estimate this assignment will take 4 months.
Based on our understanding of the required scope of the project, We estimate that our services
will cost a discounted fee of N 15.252 million, representing 50% discount on our fees in line
with our commitment to partner with you on this strategic initiative.
Our fees exclude VAT and out-of-pocket expenses which are incidental to the assignment. Outof-pocket expenses will be billed separately at actual costs incurred, if not provided directly by
you. Furthermore, Watermark will bill 60% of the contract sum as mobilisation billing prior to
commencement of the engagement.
14