|PRODUCT||MEAT PRODUCTION AND PROCESSING PRODUCT PROGRAM|
|PURPOSE||To provide funding to meat producers and processors through the acquisition of plant and machinery required for effective processing of beef and other meat products.|
|CRITICAL SUCCESS FACTORS IN LINE WITH GLOBAL BEST PRACTICE
|To ensure that the quality of meat produced by the processors meet international standard, the followings are critical success factors:
· Meat processing can only be done under effective and sustained good hygiene practices.
· The processing facilities should be adequately linked with primary producers/cattle farmers to guarantee continuous supply.
· Animals to be slaughtered in the abattoir should be traceable.
· To ensure traceability, cattle should be confined in feed lot for a period not less than 90 days to ensure the animals are well fed with compounded feed and are examined to be clinically free from diseases.
· The carcass weight of the animals determine the revenue to the farmers, hence the need for the animals to be fed with the right ration that can help in improving the carcass weight.
· There has to be involvement of veterinary workers and other support services involved in cattle production and processing to achieve good result.
|RATIONALE||i. To resuscitate the sector in order to meet the huge supply gap that is currently being met by importation.
ii. Provide adequate linkage between the different players involved in the meat production/ processing value chain.
iii. To provide the value chain with sustainable source of long-term funding at a reasonable cost thereby improving its competitiveness.
iv. Promotion of foreign exchange savings by increasing domestic meat production and encouraging import substitution.
v. Employment generation for Nigerians.
|SOURCE OF EQUIPMENT||
Golden Star Mills Manufacturers & Merchandise. Plot 40, Behind Hadiza House, Trade Fair Complex, Off Zoo Road, Kano, Kano State. (firstname.lastname@example.org)
Mepaco Food Processing Solutions Comp: 200 W. Industrial Drive
|In modern meat processing, most of the processing steps can be mechanized. In fact, modern meat processing would not be possible without the utilization of specialized equipment. Such equipment is available for small-scale, medium-sized or large-scale operations. The category of Customers vis-a-vis fund size required to set up a meat processing outfit as listed and briefly described hereunder.
Microcredit Funding (Category A): This mainly targets the local meat processing outfits that produce minced meat, barbecue and dried meat etc. They will require loans of not more than N5.0m inclusive of Working Capital. This category of Beneficiaries would require only equipment for slicing, grilling, seasoning, as well as in some cases mincing and drying.
SME (Category B): This category is for outfits that process, package, refrigerate with a wide distribution networks or plan. They may require loans of up to N50m and above as some of the equipment are imported and sophisticated.
|SINGLE OBLIGOR LIMIT||Up to N 200 million in accordance with BOI SME lending limits.|
|PRICING||Interest Rate: 9 % per annum.
(i) Loan less than N50 million.
Processing Fee : 1%
(ii) Loan above N50 million
Processing Fee : 1%
Commitment Fee : 1%
|TENOR||31/2 to 7 years inclusive of moratorium|
|MORATORIUM||· 6 – 12 months (from date of loan disbursement)|
|Loan – 90% maximum for equipment and working capital.
Working Capital could also be provided by the SME-friendly banks and in that case, BOI’s loan shall be limited to equipment procurement).
Equity – 10% (minimum) by the promoter(s)
For an existing project, the estimated value of the factory building and/or relevant processing equipment, may be applied against the borrower’s 10% contribution. The factory building and/or equipment must be valued professionally by any of BOI’s accredited valuers.
|LOAN PROCESSING TURN AROUND TIME||2 – 4 Weeks (After all requisite document are in place)|
In phases in accordance with agreed milestones and shall be backed by provision of performance bond by the accredited equipment suppliers (where the suppliers demand for advance payment before delivery of the equipment).
After successful installation and testing of the equipment and payment shall be directly to raw materials’ suppliers where practicable.
|LOAN REPAYMENT MODE||· Monthly by direct debit of customer’s account domiciled with the participating SME-friendly bank on the basis of a Tripartite Agreement signed between BOI, the SME-friendly Bank and the Customer. Such direct debit collections, must be remitted by the SME-friendly bank to BOI within 24 hours. In the event of default, the SME-friendly bank must notify BOI within 24 hours to trigger prompt remedial action by the Bank.
· In the alternative, the customer should provide post-dated cheques in line with the amortization schedule.