FARM CATTLE HERD

Part I: Introduction
Traditionally, livestock (cattle) production is the major source of cash (economy) for some parts of Indonesia where farmers can not rely upon cash crops or plantation agriculture for their major source of income.

Beef has long been a popular food in the whole world including Indonesia; therefore, cattle production is a very prospective business nowadays.
Farm cattle herd operation is easy and potential business type and so one can benefit from the below recipe for profitable cattle feeding:
“Buy the cattle low.
Fatten them cheaply,
Sell them high.”

In addition, the key for a successful farm cattle herd operation usually has the following characteristics and they are attracting investors very much:
1. Relatively low investment in land required per cow.
2. Maximum utilization of pasture and roughages.
3. Minimum outlay for supplemental feed.
4. Low labor costs.
5. Large calf crop.
6. Low incidence of disease and parasites.

Base on the above descriptions, I firmly believe that farm cattle herd operation would be of considerable benefit to investor (corporation), employees and to those who live at the adjacent of the farm.

Part II: Working Capital: Rp.48,990,000The above working capital is determined as farm’s debt that must be returned within 3 years. The working capital is outlaid for buying calf, cultivating land, labor cost, nursery cattle and forage, etc. The crop time is around six months then cattle are available to be sold. The sale money is allocated for installment of debt, labor’s commission, manager’s commission, Corporation’s share/profit. The details are shown in
“PART III: Description and detail of Operation, capital allotment, cattle selling and profit.” However, please consider the below table of “capital – cost & profit” for their representative briefs.
Table Description: initial working capital of Rp.48,990,000 has great growth during six periods of around 36 months with the following allotment:
Rp.402,890,000 : total working capital
Rp.144,435,000 : total cost (**debt installment, commission of labors, managers and share of yayasan alesintowe)
Rp.636,300,000 : total cattle sale
Rp.88,975,000 : total profit
Rp.491,865,000 : total capital growth in six period
** debt installment: Rp.8,165,000/period or Rp.1,360,833/month in 3 years

PART III: Description and detail of Operation, capital allotment, cattle selling and profit.

PERIOD I: Allocation of initial (Rp.48,990,000) capital for raising 12 cattle:

TABLE A: Working Capital period I
Table of period I described that the capital is expended to raise 12 cattle and their defrayals. The selling price of 12 cattle is Rp.75,600,000 (Rp.14000 x 450kg = Rp.6,300,000 per cattle) and allocated for the following:
Rp.8,165,000 (16.67% of capital) or Rp.1,360,833 per month for debt installment
Rp.3, 780,000 (5%) or Rp.315,000 (0.42%) per cattle for labor’s commission.
Rp.3,780,000 (5%) or Rp.315,000 (0.42%) per cattle for manager’s commission.
Rp.3,780,000 (5%) or Rp.315,000 (0.42%) per cattle for Yayasan’s share
Rp.7,105,000 (9.40%) or Rp.592,083 (0.78%) per cattle for corps profit.

PERIOD II: Capital allocation for raising 13 cattle:
TABLE A: Working Capital of period II
Table of period II described that the initial capital of Rp.48,990,000 has grown to Rp.54,440,000. The capital is used to raise 13 cattle and their defrayals. The selling price of 13 cattle is Rp.81,900,000 (Rp.14000 x 450kg = Rp.6,300,000 per cattle) and allocated for the following:
Rp.8,165,000 (15.00% of capital) or Rp.1,360,833 per month for debt installment
Rp.4,095,000 (5%) or Rp.315,000 (0.38%) per cattle for labor’s commission.
Rp.4,095,000 (5%) or Rp.315,000 (0.38%) per cattle for manager’s commission.
Rp.4,095,000 (5%) or Rp.315,000 (0.38%) per cattle for Yayasan’s share
Rp.7, 010,000 (8.56%) or Rp.539, 231 (0.66%) per cattle for corps’ profit.

PERIOD III: Capital allocation for raising 15 cattle:
TABLE A: Working Capital of period III
Table of period III described that the capital of Rp.54,440,000 of period II has grown to Rp.62,840,000-. The capital is used to raise 15 cattle and their defrayals. The selling price of 15 cattle is Rp.94,500,000 (Rp.14000 x 450kg = Rp.6,300,000 per cattle) and allocated for the following:
Rp.8,165,000 (12.99% of capital) or Rp.1,360,833 per month for debt installment
Rp.4,725,000 (5%) or Rp.315,000 (0.33%) per cattle for labor’s commission.
Rp.4,725,000 (5%) or Rp.315,000 (0.33%) per cattle for manager’s commission
Rp.4,725,000 (5%) or Rp.315,000 (0.33%) per cattle for Yayasan’s share
Rp.9, 320,000 (9.86%) or Rp.621, 333 (0.66%) per cattle for corps’ profit.

PERIOD IV: Capital allocation for raising 16 cattle:
TABLE A: Working Capital of period IV
Similar to tables of period I to V, table of period VI described that the capital of Rp.48,990,000 in period I has been increasing to Rp.91,790,000 and expended to raise or to breed 25 cattle and for their defrayals. The selling price of these 25 cattle is Rp.157,500,000 (Rp.14000 x 450kg = Rp.6,300,000 per cattle) and allocated for the following:
Rp.8,165,000 (8.90% of capital) or Rp.1,360,833 per month for debt installment
Rp.7,875,000 (5%) or Rp.315,000 (0.20%) per cattle for labor’s commission.
Rp.7,875,000 (5%) or Rp.315,000 (0.20%) per cattle for manager’s commission
Rp.7,875,000 (5%) or Rp.315,000 (0.20%) per cattle for Yayasan’s share
Rp.33,920,000 (21.54%) or Rp.1,356,800 (0.86%) per cattle for corps’ profit.

Closure
It is my honor to be of service to the success of the generosity work of your philanthropic foundation. I will present my self with principle of “good partnership” to meet with your mission of “helping people - Melayani Sesama.”
Thank for your interest.
AN AVAILABLE OPPORTUNITY IS PROVIDED FOR POTENTIAL COOPERATIONS. THE OPPORTUNITIES ARE NEVER LOST; SINCE SOMEONE WILL TAKE THE ONES WE MISS.