Faculty of Agro Based Industry - My Ideal Farm Business Plan Report

This report presents a comprehensive business plan for Fresh Vegetables Pasir Mas Sdn Bhd, a proposed vegetable farm located in Kelantan, Malaysia. The plan includes an executive summary highlighting the farm's mission to provide high-quality, affordable vegetables to meet local demand and its goal to expand to 25 acres. The report outlines the company's background, objectives, and market analysis, emphasizing the growing demand for vegetables in Malaysia. It details the farm's organizational structure, operational plans, including vegetable types, site selection, and farming processes. A detailed marketing plan is presented, including target markets, competitive analysis, and a SWOT analysis. Financial projections, including cost of operations and potential revenue, are also included, supporting the application for a loan to expand operations and increase production, aiming to dominate the Kelantan market within five years.

FACULTY OF AGRO BASED INDUSTRY
FOOD SECURITY FST20503
MY IDEAL FARM
NAME OF LECTURER:
DATE OF SUBMISSION: 30/5/2020
NAME MATRIC NO.
MUHAMMAD HANIF BIN MOHD
KHAZARUDDIN
F18B0090

Executive Summary
Vegetables are healthy and nutritious foods. Vegetables contain many vitamins and minerals,
including vitamin A, vitamin C, iron, and many other nutrients and it are beneficial to human
health. Vegetables can be consumed in two ways: through cooking and not. Most vegetables are
consumed after the cooking process, although there are some vegetables that do not go through the
cooking process.
Fresh Vegetables Pasir Mas Sdn Bhd was registered on September 07, 2006 with a paid-up capital
of RM 50,000.00 and has 100% bumiputera equity. The company has been in the trading &
services business for a year and is a bumiputera supplier of contractors to government agencies
and private companies. The company has seen tremendous opportunities in agriculture and is
confident of engaging in this business. Pasir Mas Fresh Vegetable Sdn Bhd has opened a 1.5hectare
vegetable farm. The location of this vegetable farm is located in Kampung Kubang Panjang, Pasir
Mas, Kelantan. The purpose of this paper is to apply for loan financing for the Agricultural
Commercial Graduate Entrepreneur Scheme (SUTKS) from the Agriculture Bank amounting to
RM 25,000.00 as additional capital and revolving capital for expanding this agricultural activity.
Fresh Vegetable Sand Sdn Bhd looks at the potential of this business in providing high quality,
safe and affordable vegetables that meet domestic demand. In the long-term plan, the company
plans to achieve 25 acres of vegetable land.
Business Identity
1.0 Introduction
1.1 Fresh Vegetables Pasir Mas Sdn Bhd
Fresh Vegetables Pasir Mas Sdn Bhd is a sole proprietorship business. The business has been
established in year 2006. The owner of Fresh Vegetables Pasir Mas Sdn Bhd is myself, Muhammad
Hanifl Bin Mohd Khazaruddin. This company only have one branch at this time that is at Kampung
Kubang Panjang,17000 Pasir Mas, Kelantan. The services that provided fresh vegetable to Pasar
Borong in Kelantan. Fresh Vegetables Pasir Mas Sdn Bhd expects to attract the interest of the
consumers that want to sell a product based from vegetable and want to provide vegetable for
someplace in the town. Other consumers that would like to buy my product also welcomed. Our
priority of service provider is to make sure that our customers is satisfied and easier for them to
get health and fresh vegetable in Kelantan. The company plan to build a strong market position
due to the place is near the urban and rural area in Pasir Mas. Fresh Vegetables Pasir Mas Sdn Bhd
aim to offer own product at a competitive price to meet demand of the middle to higher income
local market area residents. Fresh Vegetables Pasir Mas Sdn Bhd intends to dominate market in
Kelantan within the next five years and we will make a product based on the farm.

1.2 Objective of The Organization
1.2.1 Vision
1. Leading market for food and agricultural products in Kelantan
1.2.2 Mission
1. To ensure that Fresh Vegetables Pasir Mas Sdn Bhd is able to provide farming product like
vegetables to people in Kelantan.
1.2.3 Objective
1. To provide a service that maintain the quality of work.
2. To make sure that people need and want can be fulfilling
3. To enhance the people interest in agriculture activity.
1.3 Business Background
Vegetable potential is estimated at 1,960,234 MT during the year 2005 and 2,107,874 MT in 2006.
The increase shows almost 8% a year in line with the increasing demand for vegetables especially
institutions, households and factories. The local vegetable industry has grown rapidly since the
beginning 90's. This opportunity is best used by Fresh Vegetables Pasir Mas Sdn Bhd to venture
into this field. An effective business combination will help the company to maximize profits. That
combination effectively enables more efficient use of land, labor and capital. Diversifying the in-
field business will also reduce costs production, increase yield and reduce production costs and
can reduce risks such as price drop and attacks disease. This area of business complies with the
objectives and strategic direction of the vegetable industry through the National Agricultural
Policy (1998-2010). Arable Farming – Arable farming means that only crops are grown on a farm
and then used or sold by farmer according to his needs.
The arable farming needs slightly sloping land, fertile soil with balanced moisture mean not too
dry or wet, warm climate to support growth and suitable machinery and human resources to work.

Company information
Owner : Muhammad Hanif Bin Mohd Khazaruddin
Company name : Fresh Vegetables Pasir Mas Sdn Bhd
Address : Kampung Kubang Panjang, 17000 Pasir Mas, Kelantan
Social media : https://www.facebook.com/ Fresh Vegetables Pasir Mas
Main activity : Sell and Provide Fresh Vegetable and Product Farm Based
Capital : RM50,000
No phone : [phone]
04-4589906
Email : [e-mail]
Date of registration : 04 September 2006
Registration number : XXXXXXXX

ADMINISTRATION PLAN
Organization Chart:
Management and Function:
1. Director
The director will undertake various multitasking tasks where the director will be
responsible for the short-term and long-term planning of the business, purchasing business
requirements, administration and seeking new market opportunities.
2. Farm Manager
Act as a supervisor and ensure that the quality of production is maintained standards set by
the company.
3. Management/ Finance
Managing business operations through planning and regulation covers the whole operation
of the farm.
4. Worker
Carry out farm work
Director
Marketing
Department Worker
Management/
Finance
Farm Manager

5. Marketing Department
Carry out marketing tasks including preparing tender documents for raw food supply and
identifying wholesalers. Ensure effective promotion scope for marketing of farm produce
OPERATION PLAN
Technical:
1. Vegetable type profile
a) Bayam
b) Kangkong
c) Kacang Panjang
d) Kacang Bendi
e) Chili
2. Project / Premises Site
a) Location:
Fresh Vegetables Pasir Mas Sdn Bhd has opened a 1.5hectare vegetable farm at street in Kampung
Kubang Panjang, 17000 Pasir Mas, Kelantan. The basic formula for selecting a vegetable farm
location is suitability existing land and basic facilities. This location is important for producing
maximum production and afford wholesalers vegetables get farm produce.
b) Location Area:
The total area used for this vegetable farm is 1.5hectares. The breadth of this land in line with the
goals of the operations of the vegetable business and the budget production is expected to increase
to 7 .5tons per month.
c) Ownership
The 1.5hectare land is owned by Mrs. Hamizah and Fresh Vegetables Pasir Mas Sdn Bhd has
signed a 3year lease agreement beginning 30 November 2007 and expires on 2 December 2010.

d) Convenience and suitability:
The position of this land is well suited to agriculture and have existing water drainage facilities.
The location of this farm company adjoining the poultry farm provide fertilizer facilities plants.
Process Selection:
Bil. Type Supplier
1. Agricultural equipment S.S.A Engineering Works
Sdn Bhd
Apih Machinery Sdn Bhd
2. Seedlings Bosskur Farmer Sdn Bhd
3. Fertilizer Kedai Baja Si Angoh Sdn
Bhd
4. Pesticide Kedai Racun Amar the Corp
Sdn Bhd
Farm Layout :
VEGETABLE CROP
HARVEST
STORE
STORE /
FERTILIZER
/ PESTICIDE
WATER
SUPPLY
OFFICE
TRACTOR / PARKING /
MACHINE

Farming Flow Chart:
Project Implementation Schedule:
Type of work Level 1 Level 2 Level 3 Level 4
Land
preparation
Crop/
Irrigation
System
Level 1 Crops
(Bayam,
Kangkong)
Level 2 Crops
(Kacang
Panjang,
Kacang Bendi)
Level 3 Crops
(Chili)
Collect the
farm product Harvesting Store the
product
Packaging the
product
Transport to
wholesale
market
Distribute to
local market or
export

Level 1 crops include leafy vegetables such as Bayam and Kangkong. These vegetables are grown
widely 1.2 acres. The plant has been running on schedule, starting at the November 2007. The
purpose of this plant is to get a point of return within the estimated time.
Level 2 crops include vegetable crops such as Kacang Panjang and Kacang Bendi. This vegetable
is grown on 1.2 acres.
Stage 3 plants are Chilies. The plant will start growing on schedule in February 2008 and will be
able to released results from May 2008 through October 2008. This is a strategy farmer considering
the potential price in May through October so impressive that the average farm market price is
estimated RM 6 per kg.
Cost of Business Operations
DETAILED EXPENDITURE EXPENSES
TYPE OF EXPENDITURE FIXED
EXPENSES /
MONTH YEAR 1
MANAGER/ STAF SALARY 2,800.00 33,600.00
EPF/ SOCSO 120.00 1,440.00
ELECTRIC 90.00 1,080.00
UTILITY 0.08 1.00
GENERAL EXPENSES
TELEPHONE 100.00 1,200.00
SHOP / PROMOTION
BUSINESS RENTAL
ADMINISTRATION EXPENSES 100.00 1,200.00
TRANSPORTATION 200.00 2,400.00
TOTAL 40,921.00
% increasing 5%

MARKETING PLAN
Trade trends in Malaysia show that Malaysia is an importing country vegetables because local
produce is not sufficient to meet demand is growing. In general, the private sector plays a major
role in the system of vegetable market in Malaysia. Most vegetables are marketed through
traditional marketing channels, but marketing margins show an increase from year to year. In this
marketing plan, we need to determine the target market and customers.
In the marketing plan, we need to determine the target market and customers. Having a marketing
plan is essential to any successful business. This section need entrepreneur to describe clearly the
products or services which will be offered to the customers in order to estimate the market size
and market share so that it can be compared with the competitors in the same industry. A marketing
plan is generally developed over time, incorporating various departments, research results, and
consumer inputs. As a result, we can contribute significantly to the broader strategy of the
organization. An effective marketing plan will certainly boost your sales and increase your profit
margin. We must be able to convince customers that you have the best product or service for them
at the best possible price.
This section also need entrepreneur to describe and analyses potential customers such as their
location and the reasons for purchasing his product. In addition, the marketing strategies need to
be developed and future sales and profit need to be estimated. Among the items that have to be
describes in the marketing plan are:
a) Product or services description
Fresh Vegetable Pasir Mas Sdn Bhd provide a fresh farm product like vegetable in Kelantan.
It was located in Kampung Kubang Panjang, Pasir Mas. The service is sell and provide product
farm based on FAMA price. It is reasonable and affordable for customer and wholesale. Our
service is systematical. Our workers are very committed to their work. Trade trends in Malaysia
show that malaysia is a country importing vegetables as local production is not sufficient to meet
the growing demand. In general, the private sector plays a major role in the vegetable market
system in Malaysia. Most vegetables are marketed through traditional marketing channels, but
marketing margins show an increase from year to year.

b) Target market
We target several areas such as the table below to expand the marketing activities of this farm;
NO. NAME REQUIREMENT APPROXIMATE/
MONTH
1 Pasar Borong Kota Bharu Supply the produce to the wholesalers
for distribution to small traders.
4000KG.
2 Pasar Borong Pasir Mas Supply the produce to the wholesalers
for distribution to small traders.
4000KG
3 Individual wholesalers Supply vegetable products to regular
wholesalers.
6000KG
4 Small Traders Provide vegetable products to small
market traders.
1000KG

Segmentation the market
SEGMENTATION VARIABLE/BASES
Geographic Country : Malaysia
State : Kelantan
Demographic Income level: No limit
Family level: Teenager to older
Physiographic Preferences: Save time and get high
quality value
c) Competitor
Competition due to imports of the overseas vegetable market. It much cheaper price but their
product not fresh and used of uncontrollable pesticide.
SWOT ANALYSIS
We have strengths and weaknesses internally and we look at opportunities and threats from the
outside in enhancing the production outcomes summarized as follows:

e) Sales forecast
SALE FORECAST = Target market x units per month x market price
= 4 x 3750kg x RM 6
= RM 90000
• Efficient, efficient and effective farm
management.
• Practicing effective planting
concepts can result in high yield.
• Workers who are skilled in
agriculture especially vegetable crops.
• Large area of land for many
products
STRENGTH
• Market potential
growing and sustainable and an ever-
present market.
• Facility advisory services from the
Bosskur Farmer Sdn Bhd and
individual farm owners
• Overflow of new wholesalers from
outside the area.
• Close to the main wholesale
markets of Pasir Mas and Kota Bharu.
OPPURTUNITY
• Lack of financial resources.
• Inability to adopt agricultural
technologies such as net protection
structures, aeroponics, rain protection
structures and fertilization.
• No marketing infrastructure such as
vegetable collection centers, refrigerators
and packing facilities.
WEAKNESS
• The changing vegetable market prices.
• High market intermediation results in
manufacturers receiving low prices and
consumers buying high prices.
TREAT

Sales Forecast for D’Lovely College Enterprise
Year 2017
Month Sale collection
(RM)
January 8533.30
February 8600.00
March 8500.00
April 7900.00
Mei 8930.00
June 7000.00
July 8350.00
August 7850.00
September 8000.00
October 8245.00
November 7932.00
December 8520.00
Total 98360.30
f) Marketing strategy(4’s P)
• Product
The company provide product based on farm with are vegetable such as Bayam, Kacang Bendi,
Kacang Panjang, Kangkong, Chili.

• Place
The company will focus on the markets around Kota Bharu and Pasir Mas due to its close
proximity of only 15km from the vegetable farm. The market focus here is important as vegetables
are a commodity that is perishable, price is constant and constantly changing.
• Promotion
The company has been promoting and has identified 1 wholesaler from the Alor Setar wholesale
market and 1 wholesaler from the wharf wholesale market. The company also sought advice from
FAMA in promoting farm produce. Promotional efforts on the internet have also been made
available through www.ladangsayur.blogspot.com and the response we have received is
overwhelming. In the long run, this vegetable farm will be equipped with a CCTV system and
customers will be able to follow their activities on the farm via the internet.
• Pricing
The Company will continue to oversee the market prices of selected vegetables and to determine
prices based on the market price stand issued by FAMA.
h) Marketing budget
The marketing budget also need a budget for fixed assets cost, monthly expenses and other
expenses same like administrative plan:

Marketing Budget
RM
Seed 2000
Equipment 7000
Rental 1200
TOTAL 10200
FINANCIAL PLAN
For entrepreneur, the financial plan is one of the most important parts of the business. Without a
proper financial plan, a business might not be able to last long. The purpose of financial planning
is to help me to make the most of my financial resources by setting realistic goals and finding a
way to reach them. From financial planning, I can determine:
❖ Amount of capital that need to start the business.
❖ Assess the business environment.
❖ Identify the types of resources needed to achieve these objectives
❖ Quantify the amount of resource (labor, equipment, materials)
❖ Calculate the total cost of each type of resource
❖ Summarize the costs to create a budget.

Overview Financial Plan
• Management Payroll -- Figures are based upon the use of workers minimum wages.
• Advertising -- These funds will be used, if necessary, to maintain our sales at projected
levels. If I am running significantly ahead of my sales projections, then these funds may
not be necessary.
• Operational – A plan for expenditure required to maintain the functioning of a business
venture or public organization. Such as material needed to run the businesses and to
manufacture product or provide services.
1.1 INITIAL COST ESTIMATE
The initial costs involved are :
- Development cost
- Operation cost
- Production cost
1.1.1 Development cost
i) Preliminary work and cleaning of the area
No. Title Cost (RM)
1. Poisoning weeds and plants contractually for 1 acre of
land to kill plants for easy cleaning.
Wage rates :
RM500/ acres x 3 acre
1500
2. Contracting the area using a JCB for a acre area
Wage rates :
RM200 / 1 acre x 1 day
200
3. Works on equalization and contracting of land on a
acre plot of land.
Wage rates :
RM500 / acre x 3 acre
1500

Total 3,200
ii) Infrastructure, infrastructure construction and equipment.
No. Title Cost (RM)
1. Equipment store 7,000
2. Fence 1,000
3. Water source 500
4. Electric source 400
5. Farm road 1,000
6. Collection centre 1,020
7. Poison sprayer 155
8. Drainage 1,000
9. Banner 85
Total 12,160
1.1.2 Estimated development costs
No. Title Cost (RM)
1. Preliminary work and cleaning of the area 1,200
2. Infrastructure, infrastructure construction and
equipment
12,160

Total 13,360
1.1.3 Operation cost ( 1 month @ 1 season )
These costs are project management expenses including payroll, allowances, utility bills, rent
and other required monthly payments for a 1 month or 1 season period.
i) Management salary / staff / Labour
No. Title Monthly payment
(RM)
1 month @ 1 season
period cost
1. Labour ( RM 700 x 4 ) 2800 2800
Total 2800 2800
ii) Utilities and operations (electric , telephone bill , water and others)
No. Title Monthly payment
(RM)
1 month @ 1 season
period cost
1. Water 200 200
2. Electric 300 300
3. Telephone and fax 100 100
4. Stationery 70 70
Total 670 670

1.1.4 Estimated operation cost ( 1 month @ 1 season )
No. Title Monthly payment
(RM)
1 month @ 1 season
period cost (RM)
1. Labour 2800 2800
2. Utilities and operation 670 670
Total 3470 3470
1.1.5 Production cost ( 1 month @ 1 season )
These costs include the expense of purchasing input materials such as fertilizers, bees, chemical
pesticides and others. These expenditures are a requirement of one crop cycle and repeated at
each cycle (season)
1.1.6 Estimated production cost ( 1 month @ 1 period )
No. Title Cost per season (RM)
1. Malathion 180
2. Denomyl 196
3. Capstan 10,512
4. Quintozene 18,980
5. Seed 2000
Total 31868
1.1.7 Total initial cost
The total cost required to start the project early in the area of clean-up, planting to harvesting,
which is for a period of 1 month is :
No. Title Cost (RM)
1. Development cost

i. Preliminary work and cleaning of the area 1,200
ii. Infrastructure, infrastructure construction and
equipment
12,160
Total of development cost 13,360
2. Operation cost
i. Labour 2800
ii Utilities and operation 670
Total of operation cost 3470
3. Production cost 31,868
Total of operation cost 31868
Total of initial cost 48698

1.2 Results and Returns
i) The total yield obtained is estimated from the number of trees grown from a single
weight.
Number of tree = 43659 trees
Seasonal revenue budget = 0.03 kg / tree
Total seasonal results = 0.03 kg x 43659 trees
= 1309.77 kg
= 1309.77 kg / season
Number of season / month = 12 seasons / year
Total revenue a year = 1309.77 kg x 12 seasons
= 15717.24 kg
15717.24 kg / year
ii) Income return is calculated on the farm price.
Sale price on the farm = RM 5.00 / kg
Total income per season = RM 5.00 X 1309.77 kg
= RM 6548.85 / season
Total income per year = RM 6548.85 x 12 seasons
= RM 78586.20 / year
Cash Flow
…
CONCLUSION
• Prospect / Strength of Fresh Vegetable Pasir Mas Sdn Bhd
Our strengths will lead this business to explore new opportunities that exist in the market.
The farm will be managed by a professional and experienced staff in the management of the
vegetable farm. Selected supply of quality seeds and fertilizers purchased directly from the
Department of Agriculture enables us to produce good agricultural produce and enable us to create
demand from our customers.

• Weaknesses and Threats of the Agricultural Sector and How to Overcome it
We are prepared to address the weaknesses and to address the threats posed by this agricultural
sector:
In the early stages of this vegetable farm operation, companies and employees strive to reach a
point of return within a set timeframe.
The threat of dumping imported vegetables from Thailand is inevitable but with the strength we
have, we are able to compete with our pricing and marketing strategies.
• Contribution to Socio-economic
We will also create business opportunities and opportunities for small businesses. We provide
marketers with the opportunity to obtain farm products directly at a controlled price.
If there are entrepreneurs who are interested in learning agricultural methods and systems, we are
also ready to offer courses in related fields.