The document outlines a business plan for a Cane Farmers Co-operative Society. The co-operative aims to ensure fair prices and market access for small sugarcane farmers. It will have a three-tier structure with village, district, and state levels to collect and process sugarcane. Products will include jaggery, sugar, and other value-added items. The plan discusses objectives, operations, marketing strategy, financial projections, and expected financial benefits for farmers. It estimates that the co-operative will break even after 5 years of operation and generate over Rs. 500,000 in annual profits thereafter.

1. Business Plan
Cane Farmers Co-operative
Society

2. Executive Summary
Introduction
 Purpose & Objectives
 Business Plan
 Struture of Co-operative
 Technical Analysis
 Production & Value Chain Analysis
 Marketing Strategy: SWAT
 Financial information
 Conclusion
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Cane Farmers Co-operative Society
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3. Introduction
Why this Co-operative ??
1. Huge need of co-operative in this area as the farmers do not get what they deserve like price etc.
2. The sugar mill owners have always an upper hand than farmers.
3. Co-operatives have capacity to influence because they have a good number of farmers and sufficient
quantity of produce.
4. Market failure, high loss of farmers duo to fluctuation of demand and supply of sugarcane
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Cane Farmers Co-operative Society
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4. PURPOSE & OBJECTIVES
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Ensure regular market and remunerative prices for their crop to small
and marginal sugarcane farmers
Increase sugarcane farm productivity
Promote local food and livelihood security in drought-prone region by
developing alternative irrigation systems for crop diversification
Promote farm value-addition through processing of sugarcane and
industrial use of byproducts leading to improved incomes of small
farmers
Invest cooperative income from value-addition and industrial
diversification to improve living standards of the
local community by establishing health care, education, credit and
transport infrastructure
Cane Farmers Co-operative Society
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5. Business Plan
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Farming a Co-operative Society with sugarcane farmers: Cane
Farmers Co-operative Society.
Co-operative Society as three tier structure State, District And Village
level.
Dist. Union collect and processed the sugarcane from village level
society members.
Society produce Different type of Jaggery, Sugar and some other
value added products.
State level Federation will responsible for marketing of these produce
and assessing in decision making.
If Co-operative Society will make the profit, it will be divided in its
active members as patronage refund.
Cane Farmers Co-operative Society
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6. Value Chain Analysis &Production
Cane Farmers Co-operative Society
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7. Struture of Co-operative
Cane Farmers Co-operative Society has three tier structures for collecting
of sugarcane and processing from its member farmers:
State co-operative
Federation
Co-operative
Union
Vill:1
Vill:2
Vill:3
Vill:4
Vill:5
Cane Farmers Co-operative Society
Vill:6
Vill:7
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Vill:8

8. Technical Analysis
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Soil and ph---Sandy loam and clay & 6.5
Irrigation facilities---Tube wells, bore wells, canal
Variety---CoS 95255, CoS 96268, CoS 88230
Raw materials---good quality matured sugarcane, jute gunny
bag.
Storage facility---Self-owned warehouse
Transportation---Farmer’s field and warehouse are well
connected to major parts and roads are in good condition.
Farm machinery---double roller, sugarcane crusher, steel pan
for boiling, etc.
Cane Farmers Co-operative Society
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9. Marketing plan
PRICE
PRODUCT
Jaggery (Rs. 20
to 40/ kg), Sugar
(Rs. 30 to 45/ kg),
Value added
products (Rs. 5
to 200/ kg)
Jaggery,
Sugar, Value
added
products
PROMOTION
PLACE
News Paper,
Personal
selling, TV,
Banner &
poster,
Discount
Rural, Urban
and Global
Market
Cane Farmers Co-operative Society
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10. SWOT
Strength
Weakness
Opportunities
Cane Farmers Co-operative Society
Threat
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11. Financial information
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Projected balance sheet for the end of the first year‘s trading
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A projected profit and loss account for the first five year
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A cash flow forecast for the first five year
Break-even analysis (number of units the business needs to
sell or the sales turnover needed to cover the overheads
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ACCOUNTING
FINANCIAL
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12. Cost of Project
Start-Up Expenses
Amount (Rs.)
Start-Up Assets
Amount (Rs.)
Survey
Salaries & Wages
Rent Deposit
Insurance Premiums
Office Supplies
Adv. & Promotions
License
Other Initial Cost
Operating Capital
50000
120000
30000
10000
70000
20000
5000
10000
575000
Land & Building
Plant & Machinery
Furniture's
Vehicles
Other Fixed Assets
200000
300000
110000
450000
50000
Total Start-Up Expenses
Total Start-Assets
430000
1,570,000
Total Start-Up Expenses
890000
Total Cost of Project
2000000
Total Start-Assets
11,10,000
Total Required Cost of Project
Source of Funds
To date, the Co-operative have come out of pocket from equity approx. Rs. 10,00,000 or
50% percent of the project’s total costs. The following chart summarizes the source of funds:
Source
Members Equity
Long Term Loan @ 12%
Short Term Loan @ 15%
Total Source of Funds
Amount (Rs.)
1000000
600000
400000
2000000
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13. Financial Analysis
1. Cane co-operative is financing 50% by member equity and 50% by bank loan.
2. Cane Co-operative invest in fixed assets Rs. 11,10,000 and other start-up expenses is
Rs. 8,90,000
3. So, Total required of fund is Rs. 20,00,000 which will be financing 50% by its
members and 50% by Bank loan.
4. In first year, total cash inflow goes on Rs. 15,30,000 and cash outflow on Rs.
14,45,500
5. So, operating cash balance in 1st, 2nd, 3rd, 4th, 5th & 6th year is Rs. 84500, 474350,
967685, 1566014, 2277167, 3105466.
6. Net Present Value at the discount rate of 15% of the project is (-124538) and IRR is
38%
Cane Farmers Co-operative Society
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14. Financial Analysis……Cont…
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Cane Cooperative are generating total revenue in 1 st year Rs. 1530000.
Total expenses of Cane Cooperatives is Rs. 1340500.
After deducting interest and taxes , Cane Cooperatives have net profit of Rs.
67600 in 1st year.
Similarly, In 2nd year , net profit will Rs.311000, in 3 rd year it will Rs. 400000,
in 4th year Rs. 478000 and in 5th year it will Rs. 569000.
In one quintal sugarcane, we are producing brown Jaggery of 12kg, white
jaggery of 4 kg, sugar 2kg and Gabage 82 kg with the selling price
respectively Rs. 2600,2700,2900 and 200.
So, average total price of produce in quintal is Rs.642.
Whenever average variable cost of one quintal sugarcane after processing is
Rs. 395 per quintal.
Contribution margin is 247 and contribution ratio is 0.38
Fixed cost of project is Rs. 1110000.
So, Break Even Point (BEP) is 29 lakh approximately which Cooperative will
achieve in 5th year.
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15.  As the demand of sugar in rowing, the sugar industry faces a positive
supply pressure.
 This coupled with recent freedom provided by the government would
create a favourable environment for the company.
 The company is already doing sufficiently well and also took several
initiatives for further improvement.
 It should try to adopt newer technologies to stay ahead of the
competition.
 In addition to this, it should constantly look for adding to the value
provided to customers.
 This requires a dedicated marketing and consumer research activity
set.
 The company should also work on strengthening its internal operations
and try to develop new business models (such as integration).
Cane Farmers Co-operative Society
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16. PRESENTED BY:
Aachintya Damera (12201001)
Abhishek Singh (12201002)
Anoop Kumar Mishra (12201005)
Chandra Prakash (12201011)
Suvrojit Choudhury (12201043)
Cane Farmers Co-operative Society
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