Member - Supreme Oil

SUPREME OIL is a  woman owned business who intends to establish an Oil extraction Plant in Zambia and to penetrate the market through niche of  production and processing of edible oils distribution and marketing of soya bean cakes and stock feeds. The company seeks to promote affordable oil and stock feed in a competitive market thereby increasing its sales through economic returns. The Zambian Government announced the ban on edible oil important  in 2015, Thereby motivating us a women farmers to produce and process in ensuring that our produce has value addition

Type Startup or self-employed
Founded 2010
Company Size 50
Member Type
innovator
Founders Sarah Ngwenya
Headquarters Plot 401 A, Trinity Road, Lusaka, Zambia
Social network
Supreme Oil

About

Executive Summary Kalomo Grain Marketing Limited (KGML) trading as Supreme Oil Zambia is an agriculture company operating as a grain producing, processing and trading company. Founded and incorporated on 1st April 2010 under the Registration of Companies Act of the Laws of Zambia (Reg. No. 83712). The company was established to become a leader in the grain and commodities trade in Zambia with plans of expanding to other countries in the region. KGML has not only concentrated on the grain trading side of the business but has also ventured into primary production through its two farms located in Nambwa (Mumbwa) and Mwembeshi districts which have a combination of over 1, 100 hectares. Due to numerous calls by the government for local producers of various agricultural products (especially women) to engage into value-addition activities for their products through processing, the directors of KGML decided to start processing of soya beans into edible oils, as a result employing 10 people as well as engaging up to 3, 000 small-scale farmers into an out grower scheme, and brining to life the Supreme Oil brand. The vision of KGML is to become the largest women co-operative driven edible oils producer and processor in Southern Africa within the next decade. The vision will be realized through the mission of using a women led co-operative approach in the production of oil crops that will be processed into various edible oils using state of the art processing technology. KGML uses soya beans as the main raw material in the production of the Supreme Oil. The soya beans is grown in-house at the KGML 130 hectares Mwembeshi Farm and at the 1, 000 hectares Nambwa Farm. In addition KGML has engaged 3, 000 women small-scale soya beans farmers (of which 100 are active) located in rural Nambwa around the KGML Nambwa Farm, in an out-grower scheme under the Supreme Women Multi-Purpose Co-operative. Currently KGML does not have its own processing plant and uses third party processors such as Zamanita and Hi-Protein Feeds Limited, in a by-product withholding contract. The main strategic plan for KGML and its Supreme Oil is to set-up its own in-house modern oil processing plan so as to process high quality edible oils at low costs and to generate more revenue from sale of other soya beans by products such as soya-cake and soya-meal. In addition it has also been identified that irrigation will play a major ii factor at the KGML farms so as to have year round production of soya beans in order to cushion low supply from the out-growers in soya beans off-seasons such as the hot and cold seasons. All this will be done through the Private-Enterprise Out-Grower Business Model (PEOGBM). The KGML operational model will use a four phase integrated system. The main objective is to operate a profit making venture that will generate profits through the sale of cooking oil and other soya by-products. High grade soya beans seed will be supplied to the co-operative farmers, the farmers will produce soya beans with the supervision and training of experts from KGML, and will supply the final soya beans to the processing plant at a pre-determined price. The soya beans will be processed into pure vegetable cooking oil and other by-products that will be supplied to the market. The profits that will be generated will be reinvested in expanding the processing capacity by incorporating more small-scale farmers in producing more soya-beans. In order to manage an agribusiness of this magnitude with an advanced business models such as that of the PEOGBM, there is need to have managers at all levels managing the different components of the model all working to achieve specific business goals. The Managing Director will be the overall boss who will oversee the entire business through her directors and managers. KGML will supply 80% of its soya cake locally and 20% within the region to countries such as Zimbabwe and Botswana, while 65% of its oil will be supplied locally and 35% within the region to high demand countries such as DRC and Angola. In terms of supplying the local market, KGML will supply 50% of its products to the Lusaka market, 25% to the Copperbelt Province, 10% to the Eastern Province, 10% North-Western Province and 5% other provinces. Various selling channels will be used to sell KGML products. The Supreme Oil will be sold directly to corporate customers such as schools, hotels, restaurants, etc., while other channels will be used to sell to households. These channels are shown in the figure below. iii Year 1 Year 2 Year 3 Year 4 Year 5 1,048,704 1,697,280 3,282,048 6,850,144 7,117,872 Sales Year 1 Year 2 Year 3 Year 4 Year 5 28,874 392,625 1,739,553 4,438,033 4,856,141 Gross Profits KGML will experience increased year on year sales and profits under this plan. Year one will have low sales and profits due to reduced cultivation of soya beans (only a few of the available hectares will be cultivated) and purchase of capital inputs which will take up most of the profits. Years 4 and 5 will record high sales and profits due to the business operating at full capacity (both the farms and processing plant). These five year sales and profits are shown in the figures below. In order for this vision to be realized there is need for financial investment that will be used to purchase all the needed capital inputs, operational inputs, as well as pay for administration and marketing costs. A total investment of $1, 066, 746.2 needed for the first year budget of which 29% of this money will be used to acquire capital inputs (infrastructure, processing plant, trucks, Groceries 10% Mini Marts 15% Small Supermarkets 40% Large Supermarkets Independent 15% Large Supermarkets Chain 20% Targeted Sellers iv genset and other implements), and 39% will go to the first year production costs. The table below shows the breakdown of this investment. Total Required Investment Description Total Amount ($) Infrastructure 115, 789.4 Oil Processing Plant Machinery and Other Equipment 178, 850 Administration and Office Equipment 12, 250 Personnel Costs (Year One) 148, 896 Administration and Marketing Costs (Year One) 176, 280 Production Costs (Year One) 413, 764.2 Contingency @ 2% 20, 916.6 Total Investment Budget 1, 066, 746.2 Note: Adopted Exchange Rate USD1.0 = ZMW 9.5
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Headquarters Plot 401 A, Trinity Road, Lusaka, Zambia

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The Sustainable Development Goals are a call to action to end poverty, protect the planet and ensure peace and prosperity everywhere.
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