ZERO WASTE DIARY UNIT

WRITTEN BY:

 Professsor; John David Kabasa (Principal

ANKOLE ANIMAL FEEDS LTD
Investigator)

 Mr. Muhindo Gideon (Dir. GINA Bio-Power and

Appliances Company Limited)

 Mr.Kukiriza Martin Semakula (Co-ordinator

Cluster and Enterprise Development)

 Mr.Ben Kachau ( Coordinator Finance and

Quality Control)
 Zero Waste Diary Unit Business plan

TABLE OF CONTENTS
1. EXECUTIVE SUMMARY........................................................................................................................ 2
2 Proposed business model........................................................................................................................ 3
3. Production plan........................................................................................................................................ 5
3.1 Production system............................................................................................................................... 5
4. Production resources............................................................................................................................. 5
4.1 PROPOSED OBJECTIVE................................................................................................................... 6
5.0 Human resource plan.............................................................................................................................. 9
5.1 proposed organizational structure........................................................................................................ 9
5.2 staff roles and duties.......................................................................................................................... 10
6.0 financial plan........................................................................................................................................ 11
6.1 Capital requirements......................................................................................................................... 11

1
 Zero Waste Diary Unit Business plan

1. EXECUTIVE SUMMARY
1.1 Business idea

The environment is continuously being degraded forests have been cut down on the slopes of
mount Rwenzori which has left them bare.

Climate change has been a talk on all media platforms but the difference has been how to put this
information into people’s mind and drive actions aimed at protecting conserving nature. So many
organizations have put together resources and supported the cause but still little is being done by
the “common man” unless the government (Local and Central), organizations or associations
push a drive.

1.2 Market opportunity

Farmers will be able to utilize the animal waste (pigs, poultry and cattle) waste as a result they
have saved more from their daily energy expenses on charcoal or firewood. Literally the animal
waste was being used as a fertilizer alone after a long spell of storage in order to avoid or reduce
on its burning effect for the roots that was being brought about by emission of methane gas.
Therefore, with this technology, we tap the methane in an air tight chamber and channel it to the
kitchen for a faster cooking compared to charcoal and firewood. After methane extraction, the
dung now called bio-slurry flows to the expansion chamber and then to the bio-slurry pit where
the farmer can fetch it and utilize it. This bio-slurry can be utilized in various ways like;

 Feeding of local and kroiler chicks or pigs if the animal waste used was cow dung. This
helps cut the farmers feed expenditures by almost 50%, birds and pigs gain weight much
faster.
 They can as well use this bio-slurry as an insect repellant for pests in farm of coffee,
banana plantations, fruit farms and other vegetables at a dilution of 2:1 clean water: bio-
slurry respectively
 Utilize the bio-slurry as a crop fertilizer in the garden.

2
 Zero Waste Diary Unit Business plan

2 PROPOSED BUSINESS MODEL

Key Partners Key Activities Value Proposition Customer Customer Segments

 Vertical links  Promotions and  Reduced feeding Relationships  Poultry farmers;
with small scale sales costs  Constant Central Uganda
farmers management  Increased feedback  Dairy and beef
contracted to  Feed mill livestock product  Periodic supply cattle farmers;
produce cereal management output resulting contracts to Western and
grains and oils  Out-grower into increased guarantee Northern
needed as raw scheme farm incomes delivery of Uganda
material for the management for desired volumes  Pig farmers;
feed mill feed mill raw at agreed quality Central Uganda
 Horizontal links materials parameters  Goat farmers;
with suppliers  Research and Western,
of raw fish and development Eastern, and
premixes  Staff recruitment Central Uganda
needed to make and training
compound feeds  Monitoring and
 Horizontal links evaluation
with funders Key Resources Channels
including local  Well-equipped  Farmers’
and and certified workshops and
international animal feed mill agricultural trade
banks,  Seasoned fairs
international veterinary  Retail and
organizations, officers, animal wholesale outlets
and private nutritionists and in key livestock
investors to agribusiness farming regions
provide funds consultants
for key capital  Production and
purchases financial record
keeping
technologies
 Retail and
wholesale outlets
 Cash flow to
finance routine
operations
Cost Structure Revenue Streams
Fixed costs  Compound poultry and pig feeds at UGX 1,000 per kg
 Compound animal feeds processing plant  Comp dairy and beef cattle feeds at UGX 2,000 per kg
 Production and accounting software  Mineral licks for goats and cattle at UGX 4,000 per kg
 Delivery trucks
Total fixed costs per year –
Variable costs
 Purchase raw materials
 Salaries and benefits
 Utilities
 Packaging
 Promotions
 Taxes
 Rent of sales outlets
 Transportation of compound feeds

3
Zero Waste Diary Unit Business plan

4
 Zero Waste Diary Unit Business plan

3. PRODUCTION PLAN

3.1 PRODUCTION SYSTEM

Operations plan

During biogas production, the biogas plant is filled with locally available materials, kitchen
refuse, animal (pigs, poultry and cattle) wastes as well as human waste. The byproduct of
methane production is the sludge (green gold) called bio-slurry which flows out freely. Bio-
slurry consists of 93% water and 7% dry matter where 4.5% is organic and 2.5% is non-
organic matter. It also contains Phosphorus, potassium, zinc, iron, manganese, and copper o
which the later has become a limited factor in most soils. Bio-slurry contains readily
available plant nutrients and higher amount of nutrients compared to the farm yard manure.
The effects of bio-slurry on crop production are compared o the chemical fertilizer. As such
bio-slurry can be a serious alternative to chemical fertilizers (Warnars, 2013).

This can be used directly as 1. a fertilizer 2. insect repellant 3. In improving soil structure
and water retaining capacity, to prevent soil erosion 4. to treat seeds for higher germination,
disease resistance, better yield, improved coloration for fruits and vegetables, 5. To increase
the feed value of fodder with low protein. 6. For production of earth worms and algae. 7. For
production of B12, amino acids and enzymes which stimulate hunger for more feed intake
and better nourishment of animals. 8. used in composting. 9. It can also be used as a pig feed
supplement when mixed in ratios of 2:1 with maize bran. Bio-slurry when used as a fertilizer
directly increases crop revenue by 25% (Warnars, 2012) seed treated by bio-slurry have also
given great germination response (Gurung,1998). Bio-slurry should be applied at a rate of
5tons/ha in dry farming and 15 tons/ha in irrigated areas to have better yields (Warnars,
2012).

4. PRODUCTION RESOURCES
BIOGAS TECHNOLOGY

Biogas is a technology that puts to use the animal wastes (dug) to produce energy (methane
gas) which the farmer utilizes to cook in a home, run bathroom water heaters, brooder heaters
and other small engines on the farm. During the production of methane, the animal wastes
which contains excess nutrients (proteins, carbohydrates and fat) are broken down by
microbial enzymes. In the second stage the resulting components are further converted to
acetic acids, hydrogen, carbon dioxide and other volatile fatty acids. In the third final stage
methane (biogas) is produced and other non-gaseous products like liquid effluent (bio-slurry)
then the solid residues. This gas (methane) instead of being released to the atmosphere its
piped to the kitchen for productive use in cooking. This alone has helped save between UGX
60000 to UGX 150000 per month in fuel (Charcoal or firewood) purchase for an average

5
 Zero Waste Diary Unit Business plan

Ugandan home that has a double stove biogas plant and also set aside the time usually spent
on collecting wood fuel which can be transformed into other economically productive and
environmentally conserving activities.

With 80% of Ugandans being directly involved in agriculture and 14.2million cattle,
20.5million small ruminants, 47.6million poultry and 4.1million pigs (MAAIF and UBOS,
2018) we definitely have enough waste as a country to convert into nonrenewable energy
which will save forests from being degraded and reduce on the emission of methane.
Globally agriculture contributes 44% towards climate change and agriculture wastes
combined with manure contribute 21% which is significant and need our attention to save the
environment. So, the problem ceases to be the animal waste but its productive management
by a farmer.

Construction of a single biogas unit will require the locally available materials as listed
below, some of these are accessible to farmers, as BSUL we have subsidized the labour costs
to make it quite affordable to a farmer willing to invest in the technology.

4.1 PROPOSED OBJECTIVE

 To set up demo farms operating with biogas plants for other farmers in the district to
learn and implement.
 To boost training on dangers of climate change.
 To set up center where farmers can be demonstrated to on how to feed pigs and local
poultry on the digestate from a biogas plant and how to utilize it as a rich organic
fertilizer.
 Ensure reduction in utilization of fire wood or charcoal in homes of farmers with
biogas.
The above objectives can be attained if the district energy committee and the office of the
Natural Resources choose to invest in demonstration farms and work closely with BSUL
through subsidizing of costs for the farmers who are interested in having biogas most
especially the demo farms in the district.

Construction of a biogas plants requires a farmer to have the following construction

materials on site and later pay the standard subsidized labor cost. The engineer during
construction of the biogas plant is supervised by a staff personnel from BSUL to ensure
quality and after construction the engineer receives a subsidy from BSUL which enables
construction at the labor cost indicated below. BSUL takes on the training of the farmer on
how to maintain and utilize the biogas and its other related benefits for a period of one year.

CONSTRUCTION COST

SIZE OF BIOGAS PLANT 6M3 9M3 13M3

(RECOMMENDED)

6
 Zero Waste Diary Unit Business plan

MATERIALS
SAND 2 TRIP 2 TRIP 2 TRIPS
BRICKS 1000 1500 2000
CEMENT 12 BAGS 16 BAGS 20 BAGS
PAINT (ACRYLIC 2 LITTERS 3 LITTERS 4 LITTERS
EMULSION)
SQUARE MESH 1 PIECE 1 PIECE 1 PIECE
TWISTED BAR 1 PIECE 1 PIECE 1 PIECE
PVC 4” 1 PIECE 1 PIECE 1 PIECE
Dung mixer 1 piece 1 piece 1 piece
PVC PIPE ½” VARIES VARIES VARIES
BIOGAS FILTER 1 PIECE 1 PIECE 1 PIECE
PRESSURE GUAGE 1 PIECE 1 PIECE 1 PIECE
RING WIRE (6mm) 1/2 PIECE 1/2 PIECE 1/2 PIECE
DOME PIPE 1 PIECE 1 PIECE 1 PIECE
STOVES 1 PIECE 2 PIECES 2 PIECES
WATER DRAIN VALVE 1 PIECE 1 PIECE 1 PIECE
FITTING MATERIAL VARIES VARIES VARIES

*labor cost caters for one farm visit

IMAGE OF A CONSTRUCTED BIOGAS SYSTEM AND A LOCAL BIOGAS

STOVE.

As a company we also have in place the improved biogas system called SISTEM BIO, this is
mobile, potable and made out of PVC. They are most common with Kenya dairy farmers.
There are also offered on a lease to own basis where a farmer pays off 50%, then 30% and
finally 20%. They are in varying size as shown below.

7
 Zero Waste Diary Unit Business plan

SISTEM BIO SIZE COST UPFRONT

6M3 3,850,000
12M3 5750,000
20M3 8,500,000
40M3 11,500,000

*Doesn’t cover delivery costs, transport for the technician and the pit excavation

A software program that will perform the following functions will be used

 Improve our customer service with timely product delivery and advice with on-road
account information access for our sales staff
 Achieve complete traceability of every controlled or licensed substance, tracking
exactly which feed batches are affected even after delivery to customers.
 Easily break-down feed orders into the constituent ingredients required for
manufacture, passing this information automatically into the purchasing team for
planned sourcing of raw materials
 Improve manufacturing efficiency with immediate visibility of recorded feed
formulations for repeat production runs
 Manage long term purchasing and supply contracts to even out price variations over
time, reducing risk to margins and providing transparency to the end customer
 Plan just-in-time deliveries of raw materials to the feed mill to overcome limitations
of on-site storage.

Out-grower scheme

A database of all contracted farmers producing maize grain, soya bean, or pastures for the
feed mill will be kept using programs such as MS Excel or MS Database. This database shall
record and report information regarding the farmers locations, scale of production, their
contacts, and volumes of product they produce over time.

Sales and accounting

A customer relations management software will be used to track customers by volume of

orders and sales they bring into the company and also respond t their feedback. A point of
sale software will be used to make timely entries and reporting of sales made in different
sales outlets distributed in several regions across the country.

8
 Zero Waste Diary Unit Business plan

An accredited accounting software such as quick books or tally will be used to track the
financial performance of the business over a desired time frame.

5.0 HUMAN RESOURCE PLAN

5.1 proposed organizational structure

9
 Zero Waste Diary Unit Business plan

5.2 staff roles and duties

10
 Zero Waste Diary Unit Business plan

6.0 FINANCIAL PLAN

6.1 Capital requirements

QUANTI UNIT TOTAL

ITEM UNITS TY COST/UGX COST/UGX
1. Construction Material       -
Agregates Lorry (Elf) 1 150,000 150,000
Bricks Pieces 4000 300 1,200,000
Sand Lorry (Elf) 3 150,000 450,000
Cement Bags 35 35,000 1,225,000
Paint 4 Ltr Tin 2 75,000 150,000
Water Proof Cement Kg 20 6,000 120,000
Twisted Bar Y-12 Pieces 3 35,000 105,000
Ring Wire Pieces 2 15,000 30,000
Dome Pipe Pieces 1 150,000 150,000
PVC 6" Pipe Pieces 2 60,000 120,000
PVC 1.5" Pipe Pieces 5 20,000 100,000
Fittings Lumpsum 1 300,000 300,000
Global Valve Pieces 6 20,000 120,000

Drainage Valves Pieces 2 25,000 50,000

Gas Filter Pieces 1 100,000 100,000
Pressure Gauge Pieces 1 50,000 50,000
Dung Mixer Pieces 1 200,000 200,000
Small Burner (for cooking in Farmer Homes) Pieces 6 150,000 900,000
Big Burner ( for staff Cooking on site) Pieces 1 200,000 200,000
Brooder Heater (for Poultry Unit) Pieces 1 250,000 250,000
Gas Flow Meter Pieces 1 350,000 350,000
Bio Gas Back Pack (1 Cubic Gas Volume) Pieces 2 697,000 1,394,000
Bio Gas Back Pack (2 Cubic Gas Volume) Pieces 4 948,500 3,794,000
Solar Bio Gas Pump Pieces 1 750,000 750,000
2. Consultancy and Construction Labour Lumpsum 1 2,700,000 2,700,000
Sub Total       14,958,000

11
Zero Waste Diary Unit Business plan

12