The Ploughing Tractor Business

[ul]
[li]Do you know tractors move all the way from Nyanza to the Coast looking for ploughing opportunities?[/li][li]Do you know at the same time there are tractors are lying idle waiting for customers?[/li][li]Do you know the rate of agricultural mechanization has been rising among the small and medium farmers?[/li][/ul]

Find out the dynamics of the Ploughing Tractor business in this Ploughing Tractor Business Planner: Market & Financial Figures

About the tractor ploughing business:

Model: Farmers hire tractor from you to plough their farms. Pay on the go.
Market Entry : Brokers, Direct, Location, Partnerships with agricultural mechanization NGOs, Various Ubers for tractors.
Opportunity :Increasing mechanization among small and medium scale
farmers. Cheaper than manual labor.
Opportunity : Bridging the gap between supply & demand; A farmer needs a tractor but there is a tractor sitting idle a few kilometers away.
Trends - Aggregating of ploughing activities. Small scale equipment. Increased interest by
NGOs and some major private businesses.
Technology; Uber for tractors?
Involvement : Can delegate. Monitoring trackers.
Major Equipment : Tractor & Plough
Availability : Local

Included in The Ploughing Tractor Financial Figures
[ul]
[li]Equipment - Item Details Cost (Kshs.)[/li][li]Insurance & Licenses - Item Details Cost (Kshs.)[/li][li]Working Capital - Item, Details, Cots [/li][li]Total Startup Capital [/li][/ul]

Key Figures:

[ul]
[li]Ploughing Fee (Ksh.) - Amount charged to farmer for ploughing an acre of land.[/li][li]Broker Fee (Ksh.) - Amount per acre charged to tractor owner for linking tractor owner with farmer.[/li][li]Driver Fee (Kshs.) - Amount , per acre, paid to the tractor driver.[/li][li]Ploughing Fuel (L) - Quantity of fuel, in Litres per acre that the tractor consumes.[/li][li]Site Fuel (L) - Quantity of fuel, in litres per day, that the tractor consumes to and from land.[/li][li]Maintenance Cost (Kshs.) - Cost, per acre, of maintaining the vehicle.[/li][li]Monthly Standard Maintenance (Kshs.) - Fixed maintenance costs. Could include washing, parking and such.[/li][li]Miscellaneous Costs (Kshs.) - Other running costs per acre.[/li][li]Maximum Acreage - Maximum acreage that the tractor can plough in a day of 12 hours[/li][li]Monthly Operational Days - Maximum no of days the tractor works in a month[/li][li]Annual Operational Months - Maximum no of months the tractor is active in a year[/li][li]Cost of Fuel (Kshs.) - Maximum cost of diesel[/li][li]Days receivable on Revenue - Time, in days, to receive payments from farmer, pay driver and all other expenses[/li][/ul]

Monthly Scenario
[ul]
[li]Acres Per Day[/li][li]No. of Days [/li][li]Total Acres per month[/li][/ul]

Income

Ploughing (Rate per acre*No of acres)

Total Revenue

Expenses

[ul]
[li]Direct Ploughing Expenses[/li][li]Driver Fee (Driver Rate * No of acres) - ?[/li][li]Broker Fee (Broker Rate* No of acres) - ?[/li][li]Total Fuel (Rate per acre * Fuel rate*Total acres) - ?[/li][li]Maintenance Cost (Maintenance Rate * No of acres) - ?[/li][li] [/li][/ul]
Gross Profit

Other Operational Expenses

[ul]
[li]Site Fuel( Rate per day * Fuel rate* No of days) [/li][li]Monthly Standard Maintenance Costs [/li][li]Miscellaneous ( Miscellaneous Rate* No. of acres) [/li][/ul]
Monthly Net Income ( Gross Income- Other Expenses)

Acres Required for Different Gross Revenue
20,000 - ?
50,000 - ?
80,000 - ?
100,000 - ?
120,000 - ?
150,000 - ?
180,000 - ?
200,000 - ?
250,000 - ?
300,000 - ?
350,000 - ?
400,000 - ?
500,000 - ?
700,000 - ?

Year Scenarios – Year 1 & 2
Return on Investment
Payback period
Key figures and random observations

Included in the Ploughing Tractor Market Factsheet

[ul]
[li]Existing models[/li][li]Present solutions[/li][li]Market characteristics[/li][li]Trends[/li][li]Demand triggers[/li][li]Customer needs[/li][li]Target customer[/li][li]Room for innovation[/li][li]Competition status[/li][li]Competition triggers[/li][li]Barriers[/li][li]Lowest demand[/li][li]Highest demand[/li][li]Frequency of use[/li][li]Scalability[/li][li]Switching costs[/li][li]Customer discovery[/li][li]Supplier access[/li][li]Loyalty[/li][li]Repeat customers[/li][li]Differentiation[/li][li]Risks[/li][li]Why it could work[/li][li]Why it could fail [/li][li]Acquiring customers[/li][li]Average spend[/li][li]Resilience to economic downturn[/li][li]Important contacts [/li][li]Key processes[/li][li]Ease of exit[/li][/ul]

This planner is in Excel so you can modify to create and view different scenarios.

Its available @ Kshs.799. Make payment via Lipa na Mpesa - Buy Goods & Services - Till no. 876313. Then text/Whatsapp your email address to 0712473455. We will deliver in 15 minutes . ( In partnership with TST)

[B]Other guides available @ http://www.kenyaknowhow.com[/B]

Do you know that hii ni pure lies?

Wachana na yeye… Haujui vile watu wa tingatinga huangaika siku hizi… Kila mtu amenunua huko ushago

Na iendelee ivo ivo iwache kua opposhunete ya kunyorosha watu. Kwanza hiyo ‘uber for tractor’ ndo inafaa… These guys hupenda kunyorosha first time customers who don’t know an acre from an are with convoluted rates… Kwanza near towns unaskia nyang’au ikisema ‘ni 1500 per plot’ plot iwe quarter au iwe 40X60. Wacha wakule hizo tractor

@Straw man kuje uone broker amekam vuta stool

One major challenge with the tractor Business is imbalance between supply and demand… There are places with so many tractors, that ziko idle, and others where farmers wait or not sure where to get a tractor…

And then fragmentation… Farmer wants an acre ploughed, na tractor inakataa; iko mbali, direct costs not worth it…So some NGOs and even some famous leasing company trying to solve this…So farmer A , B C have one acre each…They agree ploughing will happen on Wednesday, and the 3 acres are worth for the tractor.

Partially it’s the problem Hello Tractor is trying to solve. They are doing well in Nigeria but struggling here… Purchasing habits, distribution of tractors and even number of tractors being a challenge. Often you open their app and you see one or zero tractors… you know in a high potential area like Nyandarua…

And yes tractors are nomads following seasons…

But say you manage to plough 5 acres a day, how much would you make?

It’s an odd business but can have good returns if you have framer or broker linkages

http://www.kenyaknowhow.com

Tunamuonea 18 huyu. But in some areas ako on point. I have a friend who went from Nyahururu and ended up in Mtito Andei. Then upto Garissa.

It happens more often than not.

were hujui chenye unasema

what I have seen work in Western is have a tractor do multi purpose work. It should have a plough, harrow and trailer for transport stuff like building materials, mchanga, mawe, kokoto, harvested maize, etc. You are assured if some decent flow of work

Haiya ask some of those in the business and you will surprised how far they travel kufuata kazi