Green fodder farming

Study request

It is a farm establishment for growing green fodder, where the project grows alfalfa using center-pivot irrigation and turns it with machines into green fodder.

Capital

rate of return

Recovery period Second year

Project Description

It is about establishing a farm to grow green fodder, where the project grows clover using the pivot irrigation method and converts it using machines into green fodder. The project does this by reclaiming agricultural lands. This is to achieve self-sufficiency in green fodder, as fodder is an absolute necessity for animal nutrition, and green fodder is considered the appropriate food for ruminants, as this fodder has several important advantages in terms of its nutrition, which contributes to the development of livestock, as fodder is a source of the basic nutritional elements that the animal needs. The importance of the project comes from the increase in demand for it. The green fodder cultivation project aims to employ workers and improve their economic and social level. And the optimal use of the project’s resources and assets. Maintaining a competitive price level enables the project to obtain its target share.

Project Products

Green fodder bales (alfalfa).

Why Mashroo3k ?

Mashroo3k has over 10 years of experience in preparing feasibility studies, conducting market research, and providing comprehensive consulting services.
Mashroo3k has offices in 7 international branches, located in Saudi Arabia, the UAE, Egypt, Qatar, Oman, Yemen, and Iraq, in addition to its agents in China, Singapore, and other countries.
Having delivered over 7,000 feasibility studies, Mashroo3k has helped thousands of clients achieve their investment goals.
Mashroo3k’s services are accredited and trusted by all financial institutions and funding entities across the Middle East.
The company’s geographic reach spans 35 countries across all continents.
Mashroo3k holds membership in over 100 prestigious international organizations specializing in market research and business management.
Its team consists of 350 consultants with deep expertise in promising economic sectors, ensuring tailored solutions and strategies that meet clients’ needs.
Mashroo3k is partnered with more than 10,200 suppliers across 22 countries, providing logistical support for projects, including production lines, raw materials, machinery, and equipment.
With an extensive database, Mashroo3k enhances the accuracy of its forecasts and analyses, strengthening its risk management capabilities.

Meeting the growing needs of the local market for green fodder produced by the project
Providing new investment opportunities with good returns.
Make a good return for the entrepreneur.
Employing the workforce and improving their economic and social level.
Achieving good returns, cash flows and added economic value.
Optimal use of project resources and assets.
Maintaining a competitive price level enables the project to obtain its target share.
Contribute to covering part of the increasing demand for green fodder
Using the latest agricultural methods in growing green fodder

Executive Summary

About the project
Financial Indicators
Rationale for the project
Government investment incentives in the project field
Target Markets
Project indicators and final results

Study of project services/products

Project description and all its products/services.
Project advantages and production requirements.

Market size study.

Understanding distribution channels.
Consumer behavior, preferences, and tendencies.
Competitors’ products or services, along with their strengths and weaknesses.
Market nature and its characteristics.
The demand size for the offered product or service.
The available share of the target market.
The optimal marketing strategy.

Risk assessment study.

Risk identification.
The impact of risks on the project.
Risk prevention methods.

Technical study

A detailed description of the project’s products, expected production capacity, and determination of investment costs.
Determining the required electricity and water capacity.
Determining the project’s labor requirements.
Determining the project’s requirements.
Calculating construction and building costs.
Calculating the total capital
Determining the annual operating costs.
Determining the amount of working capital.

Financial study.

Total investment costs required for the project.
Organizing cash flow statements, income statements, and the balance sheet for the first ten years of operation.
Determine the expected annual revenues of the project in light of the specified operational capacities
The optimal financing structure for the project in light of investors’ capabilities and financing conditions.
The project’s financial indicators and sensitivity analysis.

Organizational and administrative study.

Project workforce.
Organizational structure.
Job responsibilities.

The Kingdom of Saudi Arabia has given significant importance to the agricultural sector over the past five years, particularly following the launch of Vision 2030. Through this initiative, Saudi Arabia aimed to capitalize on available opportunities and resources to build a strong and sustainable economy.
As a result of its continuous efforts, the agricultural landscape has expanded, crop production has increased, and the number of livestock and fish yields have risen. This progress has contributed to enhancing food security and meeting the nutritional needs of citizens.
Because “Mashroo3k “, a consultancy firm specializing in economic advisory and market research, values keeping its clients informed about key industry trends, it presents here some relevant data. These insights serve as a valuable guide for those interested in investing in this vital sector.

In Saudi Arabia, the total area planted with fruits, grains, vegetables (protected, unprotected) and fodder was estimated at 771,920.2 hectares and the total production of this large area was 10,846,595.4 tons.
The area planted with fruits was estimated at about 207,369.8 hectares, and the production of this area reached 2,342,150.2 tons.
The area planted with grains such as wheat, barley, and others expanded to reach 262,622.9 hectares, and the production of this area reached 1,254,966.6 tons.
The area planted with open vegetables was estimated at 88,644.2 hectares, and the production of this area amounted to 2,111,028.5 tons.
The area planted with fodder such as clover, blueberries, etc. amounted to about 207,387.9 hectares, and production exceeded 4,556,663.5 tons.
The total production capacity of wheat flour in the Kingdom is 15,150 tons/day. It is worth noting that the total operational capacity of wheat silos in the milling companies in the Kingdom is 745 (in thousand metric tons).
The total production capacity of feed in the Kingdom reaches 3,200 tons/day.
Total flour quantities manufactured: 2,650,111 tons in 2020.
Total quantity of manufactured feed 555,858 tons in 2020.

“Mashroo3k ” believes that investing in the cultivation of onions, pomegranates, bananas, and citrus fruits will be highly profitable in Saudi Arabia.
“Mashroo3k ” emphasizes the importance of organic farming as an unmissable opportunity in Saudi Arabia. Here are some key indicators:
The area allocated for organic agriculture in the Kingdom expanded from 13,078 hectares (in 2016) to reach 26,632.49 hectares in 2020. The production of this type of agriculture also grew to exceed 98,558.81 tons in 2020, after production did not exceed 56,261 tons in 2016.
In 2019, the area planted with protected vegetables reached 2,320 hectares and production was estimated at 174,207 tons. However, things were different in 2020, as this area expanded to 5,895 hectares and production also increased to 584,080 tons (organic agriculture).
Table egg production in organic farming projects increased from 7,000 eggs (in 2017) to 454,000 eggs in 2020.
In organic farming projects, honey production reached 22,700 kg, with 6,003 beehives.
The production of milk and its derivatives in organic farming projects amounted to 390 tons.
The value of loans provided by the Agricultural Development Fund increased to reach 1,779,558,000 riyals in 2020 alone, while the value of loans in 2016 did not exceed 455,487,000 riyals.