Die oprigting en ontwikkeling van 'n veevoerfabriek as filiaal van 'n landboukoörporasie : 'n kostestudie

Abstract

The factors that determine the existence of most companies are the willingness to keep up with new trends, ideas, thoughts and profitability. Problems which have been observed in the stockfeed industry were: (a) A highly specialised market where established companies have already captured a certain share of the market. (b) In order to keep their own business as profitable as possible, clients are not prepared to pay high premiums on stockfeeds. (c) Clients which are very demanding with respect to: (i) Quality of the product. (ii) Services delivered for example free deliveries of products, sound advice, etc. (d) A rising cost structure. (e) Raw material which is not always readily available through the year. The importance of a stockfeed factory to a Agricultural Co-operative in the modern time can be seen as follows: 1. The modern trent of Agricultural Co-operatives is to comply with all the needs of its members. 2. Most of the raw materials needed are already handled by the co-operative with the advantage that transport cost of raw materials can be reduced to a grate extent. 3. Rising prices of land in modern times force the farmer to farm more intensively, which lead to a rising demand in stockfeeds. 4. The establishment of a stockfeed factory in the co-operative district has a multiplier effect on the local economy. 5. By-products from the grainsilo's can be acquired at a low premium which is not readily available to competitors. Problem areas which were given consideration are raw material purchases, inventory cost and transport cost. Various methods can be used to reduce production cost, but only the use of raw materials in an optimal combination were discussed with the emphasis on the use of by-products from the grain silo's. In chapter two a description is given of marketing research in the stockfeed industry. The market potential in the area, the sales budget, production planning, administration and control of the stockfeed factory are discussed in detail. Attention is also given to the break-even-point and differential costing of the project. Consideration is given to material costing in chapter three, which include the material budget, material policy, purchasing and inventory cost. Factors that effect raw material cost such as the use of the computor, quality of raw material, transport cost, saving on storage capacity, bulk handling, are pointed out and discussed. The conclusion that could be made, is that the erection of a stock= feed factory as a subsidiary of an Agricultural Co-operative is a feasible project provided it is located near to a grain silo to minimise transport costs. It is also important that it must be in the middle of a potential viable market to have the advantage of low delivering costs above its competitors.