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Existing Feed Stock Operation Seeks Funding to Open Processing Plant in Utah
Posted by: sally mechur on 12/19/2016 2:17:44 PM
Funding Needed:
Above $1mil
Category:
Agriculture & Fishery
Location :
USA
Viewed : 371 times
Favorited : 1 times
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Description:
Industry
Hay & Forage

Sales Forecast
Year 1: $3,250,000
Year 2: $4,875,000
Year 3: $6,500,000

Financing Sought
$5,500,000

Use of Proceeds
Set-Up Business Infrastructure:
• Marketing
• Payroll
• Legal & Accounting
• Insurance
• Contractors
• Travel

Additional Documents Available
Business Plan
Executive Summary

Business Description:
The Company is an existing Limited Liability Company (LLC) registered in the State of Utah with its corporate offices located in McMinnville, Tennessee. The Company intends to establish a processing facility in Paragonah, Utah.

The Company provides the pressing of alfalfa hay, grass hay and all types of forage for dairy, beef, horse, goat and animal feed industries domestically and internationally. The Company partners with a well-established network of growers, many of whom are family-owned farms that specialize in hay production. This allows the Company to provide a consistent supply of top quality products to customers all year round. Quality control starts with the growers and runs through every phase of the production of the Company’s products.

The Paragonah, Utah plant will process 900 lb. Double-Compressed Square Bales of alfalfa hay as well as grass hay for international and domestic shipping

Sales/Marketing:
The Company will offer customers pressed hay products, paired with the highest levels of customer service. The Company’s marketing strategy will reflect this dedication by using direct marketing channels. The Company’s primary marketing initiatives will be from its sales staff, who will cultivate new customers and maintain established clients through direct sales calls and via telephone, reaching multiple potential customers per day to stay abreast of their requirements, then sending out promotional fliers, emails and following up to provide quotes.

The Paragonah plant will be capable of compressing the large traditional rectangular bales of hay that weigh about 1,800 pounds into smaller square bales that weigh only 900 pounds. The resulting square bales are specifically configured to achieve maximum load utilization of ship bound containers. The containers are then transported by truck to the Port of Long Beach, California where it can then be loaded onto cargo ships for transport to virtually any market. The Company will deal primarily with US-based Hay Brokers and will operate in U.S. dollars and thus will not bear the risk of the foreign payment delays.

Key Success Factors:
The Company partners with a well-established network of growers, many of whom are family-owned farms that specialize in hay production. This allows the Company to provide a consistent supply of top quality products to customers all year round. The Paragonah plant will be capable of compressing the large traditional rectangular bales of hay that weigh about 1,800 pounds into smaller square bales that weigh only 900 pounds. The resulting square bales are specifically configured to achieve maximum load utilization of ship bound containers.

Key Risk Factors:
• Established pressers in the market
• Large competitors situated primarily in the far western U.S.

Exit Strategy:
The Company will implement a strategy which will take advantage of the high demand in the lucrative export market for hay and forage products. The production facility in Utah will enable the Company to fulfill the requests of importers.

The projected financial plan is sound. The one time investment sought will give the Company the ability to finance growth through cash flow. The Company is planning to launch 3 to 4 months after funding. Ownership is open to crafting an exit strategy that fits individual investor(s) needs.

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