White007:

Manny4life see he has done his maths well enough.

Multi-Trex Integrated Foods Plc (“Multi-Trex” or “The Company”) is a public limited liability company incorporated in Nigeria on 30th November 1999. Multi-Trex started business as a private cocoa merchant; buying cocoa beans from a select group of local suppliers for export to customers mainly in Europe.

In 2003, the company took advantage of the Nigerian government’s policies on non-oil export to expand its business operation by going into processing of cocoa beans into semi-finished industrial products i.e. Cocoa Liquor, Cocoa Butter, Cocoa Cake and Cocoa Powder.

To achieve its objectives, the company exclusively hired the production facility of Nigeria’s first cocoa processing plant for a period of two (2) years.Following the success of its manufacturing operation, the company resolved to build its own first cocoa processing factory with an annual capacity of 10,000 metric tonnes (MT). Working with top-rated technical experts and cocoa processing equipment manufacturers from Europe, the company’s factory was completed in 2005 and commissioned on February 1st, 2006 by the then President of Nigeria, Chief Olusegun Obasanjo, GCFR. The factory has since been upgraded to 15,000 MT annually.

The company also went on to construct an ultra-modern cocoa cake grinding plant, designed to pulverise 8,000 MT of Cocoa Cake into Cocoa Powder annually.The company completed a large-scale expansion project in late 2009, with the construction of a brand new 50,000 MT capacity factory with state-of-the-art cocoa processing equipment. In addition, the first cocoa plant is being further upgraded to increase its annual capacity to 30,000 MT before the end of the year. With an installed cocoa processing capacity of 80,000 MT, Multi-Trex is the most modern and biggest cocoa processing facility in Nigeria.

The company has successfully revolutionised the industry since entering the cocoa processing business and is committed to ensuring customers receive the best possible quality cocoa products. Multi-Trex prides itself in establishing a strict quality management system in line with leading Good Manufacturing Practices (GMP) and Hazard Analysis and Critical Control Point (HACCP) principles. At Multi-Trex, we believe that our people are our greatest source of competitive advantage.

We are therefore very particular about the quality of people we hire and the relevance of their work experience. Our organisation is made up of a good number of Nigerians with extensive experience in cocoa processing and trading.Our passion for excellence, strict adherence to high quality standards and membership of renowned cocoa associations (World Cocoa Foundation, Cocoa Producers Alliance, Cocoa Processors Association of Nigeria, etc.) have ensured continued patronage of our products in both local and International markets

FUTURE PLAN

The company plans to utilise cocoa powder output from its grinding plant to produce cocoa-based consumer products such as chocolate drinks, chocolate dry mix and chocolate bars. It is expected that the company’s manufacturing facilities to support the production of these new products will be on stream later this year.One of our goals is to be the champion of local consumption of cocoa-based fast- moving consumer goods (FMCG) in Nigeria.

As early as 1999, we established a sizeable cocoa plantation, which today serves as a crucial source of high quality seedling for supply to farmers to boost production. Furthermore, Multi-Trex has developed key initiatives geared towards further boosting production of high quality cocoa beans in Nigeria. These initiatives are being implemented in collaboration with relevant Government agencies and international organisations such as World Cocoa Foundation, USAID-MARKETS, Cocoa Research Institute of Nigeria, etc.

Expansion of existing markets is an integral part of the company’s future plans. Multi-Trex has successfully established a subsidiary in Zambia to facilitate sale of cocoa-based products in the South African region.

@White007,

Please understand that I'm not condemning the man, according to the response from @Kilode! that they were out of capital, that's why I said looks like someone did not forecast their earnings very well. However, if they are not running low, that's fine.;l

I was in ondo state last week and was oppotuned to see the balance sheet of a bank branch located at Ile-Oluji. I was shocked to find out that the balance sheet size was larger than size of other branches of the same bank located on Victoria Island. So I started acting questions,the mainstay of this branch is cocoa buz, also learnt that u will recoup your investment in the first year of planating your cocoa by the time you harvest plantain which is usually planted to creat shade for the cocoa at nursery stage. I was told most of the boys doing the business are all riding SUVs. I am working on how to start my plantation.

Jimmy Boy:

I was in ondo state last week and was oppotuned to see the balance sheet of a bank branch located at Ile-Oluji. I was shocked to find out that the balance sheet size was larger than size of other branches of the same bank located on Victoria Island. So I started acting questions,the mainstay of this branch is cocoa buz, also learnt that u will recoup your investment in the first year of planating your cocoa by the time you harvest plantain which is usually planted to creat shade for the cocoa at nursery stage. I was told most of the boys doing the business are all riding SUVs. I am working on how to start my plantation.

@Jimmy Boy, if really you want to start your own plantation i encourage you to go into it, you will not regret it, this i can assure you. But you have to be patient, because cocoa biz in seasonal. They have a new breed cocoa that takes three years ability to grow and produce fruits.

Also if you don't have the capital to start you can as well contact multi-trex, they have a scheme they call (Multi-Trex Young Cocoa Enterprises Farmers) they help young graduate with loan to start up cocoa plantation.

typical nigerian !SUV is now a marker of market prospects

i thought we were disussing the industry from the perspective of its long term future. i am not saying there is none but analysis should look at more fundamental issues. even from the individual investment appraisal perspective we would want to look at return on investment ROI so e.g. how does investing 10 million in this business compare with say catfish farming, running a beer parlour or poultry business.

from a national planning perspective

cocoa unprocessed is a commodity subject to price fluctuations from outside nigeria and like all commodities subject to boom and bust cycles. so from the viewpoint of government an unreliable source of foreign exchange long term.
rather than focussing on current booms we should focus on other  high value agricultural products whose demand is likely to soar over the next 50years given world population trends e.g the chinese love pork and pay good money for it.
quite easy to produce  too.
if we must produce cocoa nigerian entrepreneurs should be looking at acquiring chocolate companies in the likes of belgium france etc that is where the real money is not selling cocoa beans and celebrating SUVs.
there are several small good chocolate companies  in these countries that have the expertise required. the chinese are doing this in the motor industry taking advantage of current  economic  vulnerability

Its a business of the cocoa farmers in naija, it works better because it's not crude oil.

manny4life:



@White007,

Please understand that I'm not condemning the man, according to the response from @Kilode! that they were out of capital, that's why I said looks like someone did not forecast their earnings very well. However, if they are not running low, that's fine.;l

That's not how businesses operate. If a businessman waits until he has all the money he needs, then his business may never take off. Anyone who has written a business plan and gone into operation will tell you that the finanvial plan never goes according to plan.

When you go for funding, investors want to see how you execute your plan and manage your business. No VC will give you money from the start. Most businesses run into cash problems even when they are profitable. Your continued operations is dependent on someone giving you a loan or buying into your company.

This type of businesses are capital intensive and need government assistance.

@Aribasala Bro, don't forget we are essentialy trying to make people realize that there are many profit making opportunities in the country that people often overlook and errornously assume that those ventures are bet left to the uneducated folks.So mentioning SUV was an attempt to correct this wrong notion and not to promote short sightedness as you were trying to suggest.

Katsumoto:

That's not how businesses operate. If a businessman waits until he has all the money he needs, then his business may never take off. Anyone who has written a business plan and gone into operation will tell you that the finanvial plan never goes according to plan.

When you go for funding, investors want to see how you execute your plan and manage your business. No VC will give you money from the start. Most businesses run into cash problems even when they are profitable. Your continued operations is dependent on someone giving you a loan or buying into your company.

This type of businesses are capital intensive and need government assistance.

Katsumoto, you couldn't have said it better.

Jimmy Boy:

@Aribasala Bro, don't forget we are essentialy trying to make people realize that there are many profit making opportunities in the country that people often overlook  and errornously assume that those ventures are bet left to the uneducated folks.So mentioning SUV was an attempt to correct this wrong notion and not to promote short sightedness as you were trying to suggest.

I get your point jare. Nothing is wrong with driving SUV. Is a mark of a level of success in Nigeria. If am thinking of going into a business in Nigeria and I am shown someone who succeeded in buying an SUV in the course of doing a business, I will listen to his ideas and what he has to say.

jimmy na joke naa

e be like OAM just buy SUV

@aribisalao. No wahala bros.

aribisala0:

e be like OAM just buy SUV

hehehe na so nau!

thank you in advance for congratulating me.

^^What is SUV, I think marrying 4 wives at the same time is a better Mark of success

Ask those old cocoa farmers, cocoa boom = baby boom. . .SMH

Katsumoto:

That's not how businesses operate. If a businessman waits until he has all the money he needs, then his business may never take off. Anyone who has written a business plan and gone into operation will tell you that the finanvial plan never goes according to plan.

When you go for funding, investors want to see how you execute your plan and manage your business. No VC will give you money from the start. Most businesses run into cash problems even when they are profitable. Your continued operations is dependent on someone giving you a loan or buying into your company.

This type of businesses are capital intensive and need government assistance.

Was I saying how business operate, so how do u mean that's not how business operate? When you have a capital intensive project with a well thought out cash flow projections over 5 years, won't investors determine if it's suitable for them or not? Besides, every financial plans do not go as planned even with businesses that have been in business for too long; financial plans are guides and your vulnerability in business largely depends on how thorough your financial plan.  No VC's will give you money from the start? Dude, this is so incorrect and WRONG. There are tons of reputable companies ranging from green initiative to huge capital intensive projects that had financial backing from VC's. Most business run into cash problems because again they did not forecast their cash flow projections in the long run. A lot of businesses tend to ignore the cash flow projections and that's how they FAIL. Just because your revenues looks strong and makes P&L great doesn't mean that you have enough cash for purchases. I would rather phrase it as "your continued expansion is dependent if someone gives you loan or buys into your company.

If you given $1million for startup and forecast that 30% of that amount would be turned to inventory, 30% payroll and admin expense and another 20% other expenses, 10% contingencies, and the last 10% of that amount in Cash on hand (bearing interest of course) following this guide, as long as you don't exceed the 30% ($300,000) allocated towards inventory expense (including vendor invoices et al), you should be fine as long as your 30% doesn't go up 35%.  


My point it is regardless of how much one is given, businesses have to take extra precautions and look very closely at their Cash, just like you said, investors want to see how far and well u execute and manage your business. On that note, I WAS NOT saying they needed all the money they need, I was only saying if they running into cash problems for a $70million company, someone someplace did not project their cash structure well. The term earnings was a wrong choice of word but I meant it in this context.

Kilode?!:

^^What is SUV, I think marrying 4 wives at the same time is a better Mark of success

Ask those old cocoa farmers, cocoa boom = baby boom. . .SMH

abeg that na for 1966 jor. If you wan oppress your enemies for naija or announce say u don arrive, just go buy one SUV pack for your door mouth.

Cant understand it myself, but it is d reality for naija o, better no go back home till u don put one SUV for ship  

LOL @ "That na for 1966"

So young folks of today don't know how to enjoy life and flaunt wealth anymore hmm

Make I go dey save SUV money then.

manny4life:


Was I saying how business operate, so how do u mean that's not how business operate? When you have a capital intensive project with a well thought out cash flow projections over 5 years, won't investors determine if it's suitable for them or not? Besides, every financial plans do not go as planned even with businesses that have been in business for too long; financial plans are guides and your vulnerability in business largely depends on how thorough your financial plan.  No VC's will give you money from the start? Dude, this is so incorrect and WRONG. There are tons of reputable companies ranging from green initiative to huge capital intensive projects that had financial backing from VC's.

It is only well established companies that are looking to start new ventures or doing mergers and acquisitions that have their projections close to what was in the financial plan. No new company has ever gotten its financial plan right for the simple reason that most NEW entrepreneurs are overly optimistic. Most companies can not even forecast beyond 1 year and you are talking about long term forecast. The problem with forecasting is that no one knows tomorrow. There are too many variables such as game changers, the weather, changing consumer preferences, changing business climate, external factors, etc

You should have named two or three companies that received VC funding right from the start and not after starting. The part in bold contradicts itself.

manny4life:


A lot of businesses tend to ignore the cash flow projections and that's how they FAIL. Just because your revenues looks strong and makes P&L great doesn't mean that you have enough cash for purchases. I would rather phrase it as "your continued expansion is dependent if someone gives you loan or buys into your company.

How do you pay attention to cashflow projections? You think businessmen don't know when they have cash problems? Knowing that you are running out of cash doesn't help. If you had projected that you would have a certain amount of cash at a certain point in time and it doesn't happen, what do you do? What do you do if you projected that you will shift 50 units of a product but shift 15 instead? What do you do if your suppliers are powerful and collect cash on delivery and your customers pay 90 days after sales?

The point I am making is that writing a business plan is different from running a business. Business plans are more useful for existing businesses because their is a tradition and history that is useful when writing the plan. After writing your business plan, then get ready to see it invalidated as soon as you start business.

Shares anyone?

When you want to go into a business and draw up a business plan, you should always premise your plans and projections on the worst case scenarios. That is the only good foundation for a nascent business. That is why new businesses don't last. They premise their projections on overly rosy or optimistic scenarios that usually don't turn out the way they planned.

Try to conceive the worst possible situations your new business will encounter and draft your business plan on that and I assure you you will have a high chance of succeeding.

Jimmy Boy:

@Aribasala Bro, don't forget we are essentialy trying to make people realize that there are many profit making opportunities in the country that people often overlook and errornously assume that those ventures are bet left to the uneducated folks.So mentioning SUV was an attempt to correct this wrong notion and not to promote short sightedness as you were trying to suggest.

The govt is doing most of the overlooking. These are ventures they can partner with farmers and see their IGRs double in a matter of years.

Good development.
Less reliance on crude oil
Hopefully our palm oil exports can be looked into also.

we should look into export of efirin leaves as well.

See: http://exportfromnigeria.proboards.com/index.cgi?action=display&board=general&thread=252&page=1

Kilode1:
This is good, but we can do better. We are now number 5 behind Ivory Coast, Ghana, Indonesia and Cameroon. It will take some massive work for us to increase production.

Most of our experienced farmers a getting very old and their kids are not interested in the Cocoa Business. I saw a report on this the other day on NTA, it's very bad. I wonder if we can bring back the old Western Region Cocoa Board. It made many in our Grandfather's generation relatively wealthy.

Also, our farms are maintaining old tired trees on small-holder plantations, We might need to consolidate and help get these farmers access to better  techniques and improved finance. We can definitely do better, we have the population, the land and the right weather for some of the most sought after cocoa varieties. We should strive to out produce Ivory Coast, it will be tough though.

Even Anthony Ward is interested if we can get things right. His Hedge fund actually hoarded the largest single haul of cocoa in 14 years just last year!

But like ekt_bear said, We will not own this market or profit enough from it until we control more than just raw material export. We need to own the processing then the finished product market.




I'm wondering why Cobalt Services is the sole export inspection service company authorized to inspect in Nigeria, is this sufficient for a country like Nigeria where we need to improve export to earn more revenue? don't know too much about that, just asking.



ekt_bear, let me know o, I want to do Business too.

 

the old farmers should merge and sell shares on stock exchange or partner with cooperatives.