Sugarcane Farming Business Plan [Sample Template]

Pinterest Facebook

Do you want to start a sugarcane farm and need to write a business plan? If YES, here is a sample sugarcane farming business plan template & feasibility report.

Sugarcane farming is known to be a profitable business and over the years, it has evolved from uncoordinated to a global industry in most countries where it’s carried out. But it comes with its own fair share of challenges. An aspiring entrepreneur can either choose to start a sugarcane farm on a small or large scale depending on their financial status.

A Sample Sugarcane Farming Business Plan Template

1. Industry Overview

Farmers in the Sugarcane Harvesting industry primarily grow sugarcane, a tall tropical grass originating in Southeast Asia. Scientifically known as Saccharum officinarum, its thick stems are a major commercial source of sugar.

Statistics has it that in the united states of America alone, there are about 635 licensed and registered sugarcane farms responsible for employing about 4,026 employees and the industry rakes in a whooping sum of $1 billion annually with an annual growth rate projected at -1.0 percent between 2014 and 2019.

United States Sugar Corporation is the company that has the lion share of the available market in the sugarcane harvesting industry in the United States of America. A recent report published by IBISWorld estimates that industry revenue increased at an annual rate of 3.9 percent over the five years to 2010 to $1.0 billion.

However, revenue has been subject to dramatic spikes and drops in recent years due to unpredictable weather conditions. In 2005, for example, an unusually active hurricane season battered the Southeast United States, damaging Florida and Louisiana sugarcane crops. Revenue declined significantly that year as a result.

Conversely, in 2010, heavy rainfall in Brazil (the world’s largest sugar producer) and a drought in india (the second-largest producer) depleted the global sugar supply and propelled demand for US sugar producers and, in turn, US sugarcane farmers. Consequently, industry revenue rose at a double-digit pace in 2010.

Fortuitous weather conditions aside, the industry has long suffered from competition from sugar substitutes. The amount of sugar and other caloric sweeteners consumed by the average American has declined from 2005 to 2010. Focus on personal health has taken center stage, limiting consumers’ demand for sweeteners and encouraging them to opt instead for no-calorie substitutes.

Furthermore, though the level sugarcane imports is negligible, downstream industries including sugar processors have been experiencing an influx of lower-cost sugar imports. Processors and downstream markets are increasingly using these imports in place of domestically produced sugar to cut input costs, which are inflated due to protectionist US government policies.

With the recent advancement in technology, farmers can now comfortably grow crops such as sugarcane in a country where such crops can hardly survive and in places where there are few farming lands.

One thing is certain when it comes to commercial sugarcane farming, if you are able to conduct your market research and feasibility studies before choosing a location for cultivating your sugarcane, you are more likely not going to struggle to grow the sugarcane farming business because there are always food processing companies and consumers out there who are ready to buy from you.

Lastly, with commercial sugarcane farming it will pay you not to only cultivate sugarcane, but to also start a complimentary business such as sugarcane processing plant; producing and packaging sugar. The bottom line is that if you have enough farmland (space) and you are interested in maximizing commercial sugarcane farming, you are sure going to make huge profits from the business.

2. Executive Summary

Edward Jones® Sugarcane Farms, Inc. is a registered sugarcane plantation that will be based in the outskirt of Lake Mary, Florida – United States. We have done our detailed market research and feasibility studies and we were able to secure a well – situated and suitable farm land to start our commercial sugarcane business.

Our commercial sugarcane farm is a going to be standard one hence we will be involved in both commercial sugarcane cultivation, processing and packaging. We will be involved in both organic and non – organic commercial sugarcane farming.

We have put plans in place that will help us launch a standard sugarcane processing plant within the first three years of officially running Edward Jones® Sugarcane Farms, Inc. We will process and package sugar and ensure that they flood the market both in the United States and in other countries of the world.

Aside from the fact that we’ve secured the required farming land and most of the farming equipment and machines, we have also hired some key employees who are currently undergoing training so as to be able to fit into the ideal picture of the 21^st century commercial sugarcane farm workforce that we want to build.

Edward Jones® Sugarcane Farms, Inc. is well positioned to become one of the leading sugarcane farms in the United States of America, which is why we have been able to source for the best hands and machineries to run the farm with. We have put process and strategies in place that will help us employ best practices when it comes to sugarcane farming, processing and packaging as required by the regulating bodies in the United States of America.

Edward Jones® Sugarcane Farms, Inc. is owned by Mr. Edward Jones and his immediate family members. The farm cum business will be financed by Edward Jones and his family.

Before starting Edward Jones® Sugarcane Farms, Inc., Edward Jones has worked with some of the leading commercial farms and food processing plants in the United States of America; he has a degree (B.Sc.) in Agriculture Science from University of Florida.

3. Our Products and Services

Edward Jones® Sugarcane Farms, Inc. is a world class commercial farm that is committed to cultivating both organic and non – organic sugarcane for both the United States and the global market.

We are in this line of business to make profits, and we will ensure that we do all that is allowed by the law of the United States of America to achieve our business goals and objectives. These are the areas we will concentrate on in our sugarcane farm. If need arises, we will definitely cultivate related crops;

Sugarcane farming
Operating standard sugar processing plant where we will produce products such as raw sugar, liquid sugar and refined sugar from sugarcane.

4. Our Mission and Vision Statement

Our Vision is to become one of the leading commercial sugarcane farm, processing and packing brand in the United States of America.
Edward Jones® Sugarcane Farms, Inc. is a world class sugarcane farm that is in business to cultivate sugarcane in commercial quantities both organic and non – organic and processed sugar for both the United States market and the international market.

Our Business Structure

Edward Jones® Sugarcane Farms, Inc. intends starting small in Lake Mary – Florida, but hopes to grow big in order to compete favorably with leading commercial sugarcane farms in the United States. We are aware of the importance of building a solid business structure that can support the kind of world class business we want to own.

At Edward Jones® Sugarcane Farms, Inc., we will ensure that we hire people that are qualified, hardworking, dedicated, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the management of the farm. In view of the above, Edward Jones® Sugarcane Farms, Inc. have decided to hire qualified and competent hands to occupy the following positions;

Chief Operating Officer
General Farm Manager
Administrator/Accountant
Sugarcane Cultivation Manager/Supervisor
Sugar Processing and Packaging Plant Manager
Sales and Marketing Executive
Field Employees

5. Job Roles and Responsibilities

Chief Operating Officer:

Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
Responsible for fixing prices and signing business deals
Responsible for providing direction for the business
Responsible for signing checks and documents on behalf of the company
Evaluates the success of the organization

General Farm Manager

Responsible for the planning, management and coordinating all farm activities across the various sections on behalf of the organization
Supervise other section managers (sugarcane cultivation manager and sugar processing and packaging manager)
Providing advice on the management of farming activities across all sections
Responsible for carrying out risk assessment
Using IT systems and software to keep track of people and progress of the growth of crops (sugarcane)
Responsible for overseeing the accounting, costing and sale of farm produce after harvest
Represent the organization’s interest at various stakeholders’ meetings
Ensures that farming goals desired result are achieved, the most efficient resources are utilized and different interests involved are satisfied.
Responsible for preparing financial reports, budgets, and financial statements for the organization
Responsible for overseeing the smooth running of HR and administrative tasks for the organization
Defining job positions for recruitment and managing interviewing process
Carrying out induction for new team members
Responsible for training, evaluation and assessment of employees
Oversee the smooth running of the daily farming activities across the various farming sections and processing unit.

Administrator/Accountant

Responsible for overseeing the smooth running of HR and administrative tasks for the organization
Defining job positions for recruitment and managing interviewing process
Carrying out staff induction for new team members
Responsible for training, evaluation and assessment of employees
Responsible for preparing financial reports, budgets, and financial statements for the organization
Responsible for financial forecasting and risks analysis.
Responsible for developing and managing financial systems and policies
Responsible for administering payrolls
Ensuring compliance with taxation legislation
Handles all financial transactions for the farm
Serves as internal auditor for the farm

Sugarcane Cultivation Manager/Supervisor

Responsible for managing the sugarcane cultivation section
Supervises other workers within the department
Work closely with the General Manager to achieve the organizations’ goals and objectives

Sugarcane Processing and Packaging Manager/Supervisor

Responsible for managing the sugar processing and packaging section of the commercial farm
Supervises other workers within the department
Ensures that quality raw sugar, liquid sugar and refined sugar et al are produced from the processing plant
Serve as a quality control / assurance manager
Work closely with the General Manager to achieve the organizations’ goals and objectives

Sales and Marketing Officer

Identify, prioritize, and reach out to new partners, and business opportunities et al
Responsible for handling business research, marker surveys and feasibility studies for the organization
Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
Document all customer contact and information
Represent the company in strategic meetings
Help increase sales and growth for the farm

Field Workers/Contract Staff

Responsible for preparing farm lands for sugarcane cultivation
Responsible for watering the crop
Weeding or fertilizer and / or pest control application
Assist in handling the harvest of sugarcane
Carries out task in line with the stated job description
Assist in transport working tools and equipment from the farm and back to the designated store room

Distribution Truck Drivers

Assist in loading and unloading harvested sugarcane and sugar products
Maintain a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
Keep a record of vehicle inspections and make sure the truck is equipped with safety equipment
Assist the transport and logistics manager in planning their route according to a delivery schedule.
Inspect vehicles for mechanical items and safety issues and perform preventative maintenance
Comply with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
Collect and verify delivery instructions
Report defects, accidents or violations

6. SWOT Analysis

Edward Jones® Sugarcane Farms, Inc. do not intend to launch out with trial and error hence the need to conduct a proper SWOT analysis. We know that if we get it right from the onset, we would have succeeded in creating the foundation that will help us build a standard sugarcane farm that will favorably compete with leading farms in the United States of America.

We are quite aware that there are several sugarcane farms all over Lake Mary – Florida and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.

Edward Jones® Sugarcane Farms, Inc. employed the services of an expert HR and Business Analyst with bias in the commercial farming industry to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.

Here is a summary from the result of the SWOT analysis that was conducted on behalf of Edward Jones® Sugarcane Farms, Inc.;

Strength:

Our strength as a sugarcane farm is the fact that we have healthy relationships with loads of major players in the industry; both suppliers and buyers within and outside of the United States.

We have some of the latest commercial farming machines, tools and sugarcane processing equipment that will help us cultivate sugarcane in commercial quantities with less stress. Aside from our relationship (network) and equipment, we can confidently boast that we have some the most experienced hands in Lake Mary – Florida in our payroll.

Weakness:

Our weakness could be that we are a new sugarcane farm in the United States, and perhaps the fact that we decided to diversify our farming activities could count against us initially. We are aware of this and from our projection will overcome this weakness with time and turn it to a major advantage for the business.

Opportunities:

Prices for sugarcane in the United States are partly regulated by government policy, which strives to match supply and demand. As a result, US prices are on average much higher than world prices, somewhat insulating farmers from volatility. The price of sugar is expected to increase in the coming year, presenting an opportunity for the industry.

Threat:

Growth in per capita consumption of sugar increases demand for sugarcane. Over the past five years, as consumers have become more health-conscious, demand for caloric sweeteners (including sugar) has decreased. Per capita sugar and sweetener consumption is expected to increase slowly going forward. However, generally sluggish growth in sweetener consumption is likely to pose a threat to the industry.

7. MARKET ANALYSIS

Market Trends

One of the common trends in the Sugarcane Harvesting industry is that most players in the industry are no longer concentrating only on non – organic sugarcane farming. They now find it easier to run both organic and non – organic sugarcane cultivation. It is a fact that despite that organic foods are expensive, the sale is on the increase and it is indeed profitable.

Despite the fact that sugarcane farming has been in existence since time immemorial, it does not in any way make the industry to be over saturated; sugarcane farmers are exploring new technology to continue to improve the cultivation processes and also mechanized farming has indeed increased the tons of food produced by farmers.

The fact that there is always a ready market for sugarcane, raw sugar, liquid sugar and refined sugar et al makes the business highly thriving and profitable.

Lastly, it is a common trend to find standard sugarcane farmers run a sugarcane processing plant business alongside their farm. It is a means of maximizing profits in the business. Beside sugarcane can be consumed by both human and the waste products consumed by livestock hence it is an ideal business.

8. Our Target Market

The end consumer of sugarcane in any form and also those who benefits from the business value chain is all encompassing.

Almost every household consumes sugarcane in different forms. In essence a sugarcane farmer should be able to sell his or her farm produce to as many people as possible including production companies that make use of sugarcane as raw materials.

We will ensure that we position our business to attract consumers not just in the United States of America alone but also other parts of the world which is why we will be exporting some of our sugarcane, and raw sugar, liquid sugar and refined sugar to other countries of the world. We are in business to engage in wholesale distribution and to retail our sugar to the following groups of people;

Bakeries and confectioneries manufacturer
Households
Soda drinks manufacturers
Snacks manufacturers
Manufacturing companies that make use of raw sugar
Everybody in our target market location

Our Competitive Advantage

Edward Jones® Sugarcane Farms, Inc. is fully aware that there are competitions when it comes to selling sugarcane, raw sugar, liquid sugar and refined sugar, which is why we decided to carry out thorough research so as to know how to take advantage of the available market in the United States and in other parts of the world.

We have done our homework and we have been able to highlight some factors that will give us competitive advantage in the marketplace. Another competitive advantage that we are bringing to the industry is the fact that we have designed our business in such a way that we will operate an all – round sugarcane farms that will also include a sugarcane processing plant.

With this, we will be able to produce sugarcane, raw sugar, liquid sugar and refined sugar and take advantage of all the available opportunities within the industry.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

9. SALES AND MARKETING STRATEGY

Sources of Income

Edward Jones® Sugarcane Farms, Inc. is in the commercial farming business for the purpose of maximizing profits hence we have decided to explore all the available opportunities within the industry to achieve our corporate goals and objectives.

In essence we are not going to rely only on the sale of our farm produce to generate income for the business. Below are the sources we intend exploring to generate income for Edward Jones® Sugarcane Farms, Inc.;

Sugarcane farming
Operating standard sugar processing plant where we will produce products such as raw sugar, liquid sugar and refined sugar.

10. Sales Forecast

We conducted a thorough market survey and feasibility studies and we were able to discover that the sales generated by a commercial farm depends on the size and the nature of the farm.

We have perfected or sales and marketing strategies and we are quite optimistic that we will meet or even surpass our set sales target of generating enough income/profits from the first year of operation and build the business from survival to sustainability.

We have been able to examine the agriculture industry cum sugarcane farm line business and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some workable assumptions as well with respect to the nature of sugarcane farm that we run.

Below are the projections that we were able to come up with for the first three years of running Edward Jones® Sugarcane Farms, Inc.;

First Fiscal Year (FY1): $380,000
Second Fiscal Year (FY2): $600,000
Third Fiscal Year (FY3): $1.150 million

N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown that can impact negatively on household spending, bad weather cum natural disasters, and unfavorable government policies. Please note that the above projection might be lower and at the same time it might be higher.

Marketing Strategy and Sales Strategy

We are quite aware that the reason why some sugarcane farms hardly make good profits is their inability to sell off their harvested sugarcane as at when due. In view of that, we decided to set up a standard sugarcane processing plant to help us maximize profits.

Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization. In summary, Edward Jones® Sugarcane Farms, Inc. will adopt the following strategies in marketing our sugarcane farm produce;

Introduce our business by sending introductory letters alongside our brochure to stake holders in the food production industry et al.
Advertise our business in agriculture and food related magazines and websites
List our sugarcane farms on yellow pages ads
Attend related agriculture and food expos, seminars, and business fairs et al
Leverage on the internet to promote our business
Engage in direct marketing
Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Any business that wants to grow beyond the corner of the street or the city they are operating from must be ready and willing to utilize every available means to advertise and promote the business. We intend growing our business which is why we have perfected plans to build our brand via every available means.

Below are the platforms you can leverage on to boost our sugarcane farm brand and to promote and advertise our business;

Place adverts on both print (newspapers and magazines) and electronic media platforms
Sponsor relevant community based events/programs
Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our business
Install our Billboards in strategic locations all around Lake Mary – Florida
Engage in roadshow from time to time in targeted neighborhoods to retail our sugarcane, raw sugar, liquid sugar and refined sugar et al
Distribute our fliers and handbills in target areas
List our sugarcane farms in local directories / yellow pages
Advertise our sugarcane farms in our official website and employ strategies that will help us pull traffic to the site.
Ensure that all our staff members wear our branded shirts and all our vehicles and trucks are well branded with our company logo et al.

12. Our Pricing Strategy

Some of the factors that will help you sell your sugarcane, raw sugar, liquid sugar and refined sugar at the right price that will guarantee that you make profits is dependent on your strategy while some of the factors are beyond your control.

For example, if the climatic condition is unfavorable and if there are natural disasters in the location where you have your sugarcane farm, then it will directly affect the harvest and also the prices of your farm produce.

In view of that, our prices will conform to what is obtainable in the industry but will ensure that within the first 6 to 12 months our sugarcane and raw sugar, liquid sugar and refined sugar are sold a little bit below the average prices in the United States of America. We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our sugarcane farming business.

Payment Options

The payment policy adopted by Edward Jones® Sugarcane Farms, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Edward Jones® Sugarcane Farms, Inc. will make available to her clients;

Payment via bank transfer
Payment with cash
Payment via online bank transfer
Payment via check
Payment via Point of Sale Machines (POS Machines)
Payment via mobile money transfer
Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients make payment for sugarcane, raw sugar, liquid sugar and refined sugar purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

When it comes to calculating the cost of starting a sugarcane farm with sugarcane processing plant, there are some key factors that should serve as a guide such as the capacity of the sugarcane processing plant you want to own and the size of the sugarcane farm.

In view of that, here are some of the basic areas we will spend our startup capital in setting up our sugarcane farm;

The total fee for incorporating the business in United States of America – $750.
The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $9,400
The amount needed to acquire / lease a farm land – $50,000
The amount required for preparing the farm land – $70,000
The cost for acquiring the required working tools and equipment / machines / fencing et al – $10,000
The amount required for purchase of the first set of sugarcane seedlings et al – $50,000
The amount required to set up a standard sugarcane processing plant within the farm facility – 100,000
Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
The cost of launching an official website – $600
The amount required for payment of workers for a period of 3 months – $60,000
Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,000

Going by the report from detailed research and feasibility studies conducted, we will need an average of four hundred and fifty thousand dollars ($450,000) to start a standard sugarcane farm with a sugarcane processing plant in the United States of America.

These are some of the equipment that we would need to launch our sugarcane farm,

Tractor
Soil cultivator
Plough
Harrow (e.g. Spike harrow, Drag harrow, Disk harrow)
Stone / Rock / Debris removal
Planter
Plastic mulch layer
Transplanter
Sprinkler system irrigation
Wheel Barrow
Truck

Basically, the nature of sugarcane farms does not require an office space, most people that run commercial farms operate directly from their farms. But we have decided to open a small liaison office; a place where administrative jobs will be carried out on behalf of the business.

Generating Funds/Startup Capital for Edward Jones® Sugarcane Farms, Inc.

Edward Jones® Sugarcane Farms, Inc. will be owned and managed by Edward Jones and his immediate family members. They decided to restrict the sourcing of the startup capital for the business to just three major sources.

Generate part of the startup capital from personal savings and sale of his stocks
Generate part of the startup capital from friends and other extended family members
Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $100,000 (Personal savings $80,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $350,000 from our bank. All the papers and document have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

Part of the plans we have in place to sustain Edward Jones® Sugarcane Farms, Inc. is to ensure that we continue to make available sugarcane, raw sugar, liquid sugar and refined sugar et al, deliver quality services, improvise on how to do things faster and cheaper.

We are not going to relent in providing conducive environment for our workers and also the required trainings that will help them deliver excellent services at all times.

We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better and the products they want to see in our store.

We will not waste time in adopting new technology, best practices and diversifying our services; expand our product and service offerings once the need arises. Edward Jones® Sugarcane Farms, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of.

Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

Business Name Availability Check: Completed
Business Incorporation: Completed
Opening of Corporate Bank Accounts : Completed
Opening Online Payment Platforms: Completed
Application and Obtaining Tax Payer’s ID: In Progress
Application for business license and permit: Completed
Purchase of Insurance for the Business: Completed
Leasing of farm land in Lake Mary – Florida and preparing the farm land: Completed
Conducting Feasibility Studies: Completed
Startup Capital Generation: Completed
writing of business plan: Completed
Drafting of Employee’s Handbook: Completed
Design of The Company’s Logo: Completed
Printing of Promotional Materials: Completed
Recruitment of employees: In Progress
Building /construction of sugarcane processing plant: In Progress
Purchase of the needed working tools, machines and equipment: Completed
Creating Official Website for the Company: In Progress
Creating Awareness for the business (Business PR): In Progress
Farm land Treatment, Health and Safety Arrangement: In Progress
Establishing business relationship with vendors and key players in the industry (sugarcane merchants, manufacturing companies that make use of raw sugar as part of their raw materials, fertilizer suppliers and transporter/haulage companies et al): Completed