Prairie Pulse Processing
Executive Summary
Introduction
Prairie Pulse Processing (PPP) plans to process raw pulses into edible human products
and livestock feed. Shareholders and debt financing will finance the formation of PPP.
A board of directors will be appointed by the shareholders, which will include three
foreign members and four Canadian members. The potential members will be selected
for their expertise in related fields to the operation of PPP. A maximum 48% of the
equity will be supplied by foreign shareholders and the remaining 52% will be provided
by the Canadian shareholders. Our dividend policy states that 75% of any ending cash
balance over $500,000 will be paid out to shareholders.
PPP will purchase unprocessed peas and lentils from local producers. These unprocessed
pulses will be cleaned, dehulled, polished and then split to potential customer
specifications. All human edible finished product will be exported to India, and the byproduct will be sold to local livestock producers.
The production of lentils and peas has been increasing over the past ten years (Sask. Ag
and Food, 2001). This leads to an increase in supply of these products. Providing an
alternative market for producers to sell their pulses would be very beneficial to the local
economies. This will lead to more value added production in Saskatchewan, therefore
leading to a stronger Saskatchewan agricultural economy.
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Prairie Pulse Processing
Operations Plan
PPP is located five miles west of Humboldt, which is adjacent to AgriCore United’s
existing facility. Humboldt is located in the RM of Humboldt #370. The C.N. Rail Yard
is located in Saskatoon, which is approximately an hour away from PPP. PPP has good
access to all highways for sourcing product in and out of the facility. When raw product
is purchased from local producers it will be put through the splitting and polishing
process. The split and polished peas and lentils are then bagged and stored in the
warehouse awaiting shipment. The finished product will be placed onto flatbed trailers
and transported to the C.N. yards in Saskatoon. From there, the containers will be lifted
onto rail cars and shipped to Vancouver Port. From that point, foreign investors will take
over the ownership of the finished product. Screenings will be stored in bins on PPP
property until purchased by local livestock producers.
Table 1.0: Annual Operating Expense
Telephone
Salaries
Benefits
Marketing
Administration
Transportation
Trucking Premiums
Insurance
Miscellaneous
Interest LT Debt
Total
7,200
165,000
20,048
32,500
37,741
1,984,283
591,000
12,000
3,000
284,700
3,137,472
Sasktel
Financial Projections
Financial Projections
Marketing Plan
Financial Projections
CN Railway
Kooistra Trucking
Hycerenko Insurance Agencies
Estimate
Advantage CU
Human Resources Plan
Prairie Pulse Processing will employ a total of 13 employees. The following table
outlines in detail the different positions and salaries at PPP.
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Table 1.1: Employment at Prairie Pulse Processing
Staff Position General Marketing Secretary/ Foreman Shipper/ Millwright Forklift
Baggers Cleanup
Manager Manager Accountant
Receiver
Operators
Number
Annual Salary
E.I. (3.08%)
CPP (4.07%)
Comp. (5.0%)
Total Cost
1
65,000
2,002
2,646
3,250
72,898
1
55,000
1,694
2,239
2,750
61,683
1
45,000
1,386
1,832
2,250
50,468
2
80,000
2,464
3,256
4,000
89,720
1
35,000
1,078
1,425
1,750
39,253
2
100,000
3,080
4,070
5,000
112,150
2
50,000
1,540
2,035
2,500
56,075
2
50,000
1,540
2,035
2,500
56,075
Figure 1.0: Line of Authority
General Manager
Secretary
Marketing Manager
(Grain Buyer)
(2)Foreman
Clean Up Staff
(1)
Processing Plant Staff
Maintenance Millwright (2)
(1)Shipper/Receiver
(2) Baggers
(2) Forklift Operators
At PPP the general manager is responsible for all of the day-to-day operations. The
marketing manager is in charge of ensuring adequate supplies of raw product and that the
purchasers of the finished product are satisfied. The secretary/accountant is responsible
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1
25,000
770
1,018
1,250
28,038
Prairie Pulse Processing
for all the accounting procedures along with regular secretarial duties. The foreman is
responsible for the production line and is the voice of the general laborers to
management. The millwrights are in charge of maintenance of the equipment.
Shipper/receiver is responsible for all incoming and outgoing product. Forklift operators
duties are to move finished product from the bag machine to the warehouse. Bagger
duties are to oversee and prevent problems from occurring at the bagging machine.
Cleanup crew is responsible for keeping the entire facility sparkling clean.
Marketing Plan
PPP plans on purchasing raw product from local producers. These products will then be
processed and sold to the foreign customer. The by-product screenings will be sold to
local livestock producers. Minimal marketing will be required for the sale of the final
product due to having only one customer. The supply of raw products will be the focus
of the marketing plan because PPP will be new to the pulse processing market. The
supply of peas and lentils required for production is very small compared to the
production in Saskatchewan. The required supply of lentils is about 1% of the average
total production, which is primarily produced in southern Sask. Pea production required
is less than 1% of the total pea production in Saskatchewan, and will primarily be sourced
from crop districts 8A, 8B, 6B and 5A.
PPP is a price taker. PPP is entering into a competitive market, with few competitors in
close proximity to PPP, which makes Humboldt an ideal location.
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Prairie Pulse Processing
Table 1.2: SWOT Analysis
Strengths
48% of foreign funding
Large supply of raw product
Guaranteed purchase of finished product
State of the art facility
Opportunities
Other potential customers (Europe, Middle
East)
Ability to process other products
Potential to expand
Weaknesses
High cash conversion cycle
High start up costs
No control over finished product pricing
Dependency on foreign customers
Threats
Weather may influence raw product supply
Competition for direct materials purchase
Variation of commodity prices
Substitutes for Production
Finance Plan
PPP will receive the required capital from shareholders and from long-term debt
financing. Foreign investors will provide 48% of the required equity while the remaining
52% will be provided by the Canadian shareholders. Required equity for the project will
total 48% of the project cost. The remaining 52% will be financed through Canadian and
East Indian financial institutions.
Table 1.3 The Base Case Results
Net Present Value
Internal Rate of Return
Cash Flows
Net Income
Split Lentils Sold (t)
Split Peas Sold (t)
Screenings Sold (t)
Export lentil price
Export pea price
Screenings price
Transportation cost
Pea purchase price
Lentil purchase price
Trucking premiums
3,317,618
37.3%
2004
315,430
1,512,435
20,018
5,100
4,433
690
458
120
1,984,283
239
408
591,000
2005
1,364,567
1,197,786
23220
5304
5034
711
472
124
2,452,573
246
420
730,476
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872,664
1,304,335
23220
5304
5034
732
486
127
2,526,150
254
433
752,390
2007
229,979
1,507,775
23220
5304
5034
754
500
131
2,601,935
261
446
774,962
2008
70,064
1,680,662
23220
5304
5034
777
515
135
2,679,993
269
459
798,211
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Prairie Pulse Processing
The most critical variables for PPP are the purchase prices of peas and lentils. This is due
to the fact that export prices are directly related to raw pulse prices and that raw prices
and supply are inversely related.
Table 1.4 Break Even Analysis
Cash Flow Break-even Varying Selling Prices
Year
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
$
$
$
$
$
$
$
$
$
$
Net Income
1,127,352
(463,750)
(479,328)
(273,673)
(115,797)
19,813
135,950
237,365
327,555
409,408
Cash Flow After Tax
$
$
$
$
$
$
$
$
$
$
-
$
$
$
$
$
$
$
$
$
$
Peas
442
429
439
452
465
479
493
507
522
537
Selling Prices
Lentils
$
667
$
646
$
661
$
681
$
701
$
721
$
742
$
764
$
786
$
809
Screenings
$
116
$
112
$
115
$
118
$
122
$
125
$
129
$
133
$
137
$
141
The purchase prices of peas and lentils are the critical variables because a slight variation
can turn a profit to a loss. These results indicate the lowest price that can be received to
remain in operation.
This financial model demonstrates that PPP is a feasible venture. The critical factors
influencing risk are changes in the weather and price fluctuation in the global economy.
The margins in this venture are stable because finished export product prices fluctuate
with raw product prices. Poor weather can reduce supplies, however the increase in
purchasing price will be compensated in the direct increase in export prices. PPP will
negotiate a cost plus sales contract that ensures that PPP will have a guaranteed profit
margin.
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Prairie Pulse Processing
Conclusion
PPP business plan shows that this operation is a feasible project. The internal rate of
return in the base case is 37.3%. The external rates of return are 23.3% and 26.4%,
showing that not only does the corporation make money, but also the investors receive a
significant return on their investment.
Main Report
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Prairie Pulse Processing
Introduction
1.1 Organization of the Company
Prairie Pulse Processing (PPP) is a pulse-processing corporation that will be located in
central Saskatchewan. The nature of this facility is to buy unprocessed lentils and peas
from local producers. These products will then be processed into edible human products
such as spilt lentils and split peas. The by-product of the process will be screenings that
will be sold into the livestock feed market. All of the edible finished product will be sold
to foreign markets in India.
The corporation will consist of foreign shareholders from India as well as, in the future,
Canadian shareholders. There will be a board of directors appointed, consisting of 3
foreign and 4 Canadian industry experts such as lawyers, accountants, bank managers and
pulse processing experts. All board members will be appointed for 5-year terms and
every 5 years re-appointments will occur at the annual general meeting. The board of
directors will be responsible for hiring a general manager. This general manager is
responsible for all day to day operations including hiring and firing of personnel and
factors affecting production. The general manager will be expected to follow the
guidelines and expectations set out by the board of directors.
1.2 Mission Statement
To provide a consistent high quality product for East Indian human consumption markets
and to develop a competitive alternative market for Saskatchewan pulse producers.
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1.3 History of Prairie Pulse Processing
PPP decided to locate in Humboldt, SK, for the following reasons:
 Good highway connections
 Growing community
 Good supply of raw products
 Limited competition
 Close to Saskatoon for transport on CN rail
1.4 Long-term Goals

To maintain and expand PPP’s export market.

To have an economic profit in all years of operation.

To develop domestic markets for the finished product.

To develop prosperous relationships with PPP’s local producers.

To maintain a loyal and productive work force.
1.5 Short-term Objectives

To be operating at full capacity within 2 years of starting production.

To market 24,021 tonnes of processed lentils, 6,120 tonnes of split peas and 5,319
tonnes of screenings.

To achieve and maintain an internal rate of return of 20% or greater.

To employ a knowledgeable and dedicated workforce, to help increase productivity.
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Prairie Pulse Processing
2.0 Industry Overview
2.1 Lentil Production in Saskatchewan
The production of lentils in Saskatchewan has been on the rise for the past 10 years
(Sask. Ag and Food, 2001). This increase in acreage may have been a result of lower
alternative commodity prices and drought conditions. The larger supply of lentils in
Saskatchewan increases the demand for value added production in the province, so that
Saskatchewan resident’s can capitalize on the economic profits produced.
2.2 Pea Production in Saskatchewan
The acreage of pea production has been on the rise for the past 10 years (Sask. Ag and
Food, 2001), due to farmers trying to diversify into alternative products to fit into their
crop rotations. Peas are able to fix their own nitrogen reducing the application of
nitrogen in the spring. The two main types of peas grown are yellow and green.
2.3 Supply Required for Production
PPP requires a very small percentage of annual production in Saskatchewan. This will
allow PPP to operate even if there is a drastic decrease in lentil and pea production. PPP
requires 0.7% of the annual pea production, and about 1.0% of the annual lentil
production in Western Canada. This abundance of supply offers an exceptional
opportunity for expansion in the value-added sector.
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Prairie Pulse Processing
3.0 Operations Plan
3.1 Location of Prairie Pulse Processing
When considering a suitable location for a pulse splitting operation, the availability of
raw product must be considered. Accessibility to a good highway with connections to a
CN rail yard in Saskatoon is also important. Access to an educated work force is a
requirement to improve efficiency of the operation.
Pea and lentil acres have increased drastically within the last twenty years. Lentil
varieties that can adapt to cooler shorter seasons are being developed. This would move
lentil production into NE Saskatchewan. Lentil production in Saskatchewan has
increased from 588,000 acres in 1991 to 1.8 million acres in 2001 (Sask. Ag and Food,
2001). Pea acres have increased from 490,000 in 1991 to 3.5 million in 2001(Sask. Ag
and Food, 2001). Total lentil supply in Western Canada was 798,000 metric tonnes in
2001 and total pea supply in 2001 was 2.4 million metric tonnes (Sask. Ag and Food,
2001). The majority of pea production is located in NE Saskatchewan. and the majority
of lentil production is from SW Saskatchewan.
PPP will be located in crop district 8b, approximately five miles West of Humboldt
Saskatchewan in R.M. 370. This location provides access to a consistent supply of field
peas and lentils. PPP will be supplied with pulses from crop districts 8a, 8b, 6a and 5b.
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Prairie Pulse Processing
Humboldt is a strategic location due to its good highway and its connection to other main
roadways, main rail line, abundant workforce and its closeness to the CN rail yard in
Saskatoon. The CN rail yard is where PPP’s finished product will be transferred from
truck to railcar. Humboldt is a growing community with a vibrant economic center that
makes it attractive for management.
With Agricore United being located directly North of the proposed site for PPP, all
essential utilities, such as natural gas, telephone, power, water and sewer are already
within the vacinity.
In summary, Humboldt is a central location surrounded by pulse. It has access to all
major infrastructures and presents a good opportunity for development.
3.2 Business Operations
PPP will have the raw product storage of approximately 1800 tonnes, and splitting
storage of 1000 tonnes. The finished product will be bagged in 25kg plastic bags and
then 40 of these bags will be stacked and wrapped on pallets. These pallets will be
loaded into 20 tonne ocean liner containers. The containers are then transferred by truck
via Intermodal Trucking provided by CN rail. In Saskatoon, the container will be
transferred from truck to flat bed rail cars and transported to the Port of Vancouver. CN
rail will store the containers at the port until an ocean liner is loaded for shipment to
Mumbai, India.
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The excess screenings resulting from processing of peas and lentils will be stored in 500
tonne storage bins. PPP’s marketing manager will sell these screenings to livestock
producers on a first come first serve basis. It will be the responsibility of the producer to
transport the screenings from PPP to his/her facility.
3.3 Organizational Structure
PPP is a private corporation and the official name of the corporation will be Prairie Pulse
Processing Limited. Class A common shares will be issued to investors.
A board of directors will be formed consisting of 7 directors. Of these, 3 will be foreign
and 4 will be Canadian. The board members will be elected by the Class A shareholders.
Figure 3.1 Organizational Structure
Board of Directors
General Manager
Marketing Manager
Secretary
Foreman (2)
Clean up Staff (1)
Maintenance Millwright (2)
Processing Plant Staff
Shipper/Receiver (1)
Baggers (2)
Forklift Operators (2)
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Figure 3.2 Site Plan
Unloading Scale
Raw Storage
Office
Building
Feed Loading
Loading Dock
3.4 Average Business Day
An average business day consists of receiving peas and lentils from producers, operating
the cleaning, polishing and splitting equipment and bagging split product. Product will
be received and shipped during the business day, while cleaning, polishing and splitting
will be carried out over 16 hours by two shifts of operators. The marketing manager will
be buying product from producers and selling product to PPP’s foreign customer. PPP’s
daily cleaning target is initially 250 tonnes, with a splitting capacity of 100 tonnes.
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Prairie Pulse Processing
3.5 Average Business Week
An average business week consists of a five-day workweek. Every day, production will
begin at 6:00am and operate until 12am. Office staff will operate between the hours 8am
to 5 p.m., Monday to Friday. The two shifts combined must produce 120 tonnes per day.
If the target is not achieved within these hours, the nightshift will be required to stay until
production target is reached. Finished and raw product inventories will be recorded
weekly.
3.6 Average Business Month
An average business month consists of buying and selling 2400 tonnes of peas and
lentils. Inventory will be accounted for on a monthly basis. Internal financial statements
will be developed monthly to track financial fluctuations.
3.7 Average Business Year
Turn out year-end financial statements on May 31 to inform PPP’s shareholders of PPP’s
financial situation. A yearly review of the plant productivity will be taken to determine
where PPP weaknesses are in production. PPP will be processing 25 000 tonnes in PPP’s
first year and 30 000 tonnes every year after.
3.8 Cleaning Process
Product will be unloaded on a 100-foot scale into a pit, which will be conveyed into
storage bins. Unprocessed raw product will be conveyed to the cleaning and sizing
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facility. Screenings will be sent to screening storage, clean product will be moved to
clean storage. From this point, clean product will be moved to the splitting and polishing
phase and then on to split storage. Split storage will be bagged and stacked on the
pallets. Screenings will be located in screening storage bins, which will be augured into
grain trailers.
Figure 3.3 Physical Product Flow
Stone storage
Raw storage
Cleaner
Destoner
Gravity Table
Sizer
Dehusker
Polisher
Screenings
Storage (Bulk)
Finished Storage
Splitter
Bagger
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3.9 Capacity Limit
PPP will have the following capacity limits:

Raw storage for 1800 tonnes. Storage consists of ten bins with capacity of 180 tonnes
each.

Clean product storage for 1000 tonnes. Storage consists of 6 bins with a capacity of
165 tonnes.

Screening storage for 500 tonnes.

Processing capacity of 30 000 tonnes per year.
3.10 Cost of Goods Manufactured
Table 3.1 Cost of Goods Manufactured
Direct Materials Used
Direct Labour Used
Manufacturing Overhead
Cost of Goods Manufactured
2004
11,091,158
381,310
780,054
12,252,521
2005
13,708,671
392,749
1,284,137
15,385,557
2006
14,119,931
404,532
1,085,090
15,609,552
2007
14,543,529
416,668
927,330
15,887,527
3.11 Service Providers
Table 3.2 – Prairie Pulse Processing Business Contacts
Accountant
Deloitte & Touche
Banker
Advantage Credit Union
Insurance Company
Hycerenko Insurance Agencies
Lawyer
Cuelenaere, Kendall, Katzman & Richards
3.12 Gross Profit Margin
Table 3.3 Gross Profit Margin
Year
2004
Total Revenue
16,679,775
Cost of Goods Sold
11,366,549
Gross Margin
5,313,226
GPM%
31.9%
2005
20,616,202
15,169,776
5,448,061
26.4%
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21,234,688
15,583,083
5,687,355
26.8%
2007
21,871,729
15,858,954
6,070,341
27.8%
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Prairie Pulse Processing
3.13 Operating Expenses
Table 3.4 Operating Expenses for 2004
Description
Cost / $ Year
Telephone
7,200
Salaries
165,000
Benefits
20,048
Marketing
32,500
Administration
37,741
Transportation
1,984,283
Trucking Premiums
591,000
Insurance
12,000
Miscellaneous
3,000
Interest LT Debt
284,700
Source
Sasktel
Financial Projections
Financial Projections
Marketing Plan
Financial Projections
CN Railway
Kooistra Trucking
Hycerenko Insurance Agencies
Estimate
Advantage CU
3.14 Capital Expenses
Table 3.5 Capital Expenses
Description
Asx115 OC GFG aspirator
NS-FB24 FR Feed Box
Camas SV4-1 Density Separator
Forsberg Model G3 Destoner
Oliver Model 160 gravity table
NS-HC56 OC FR Aspirator
NS-22x120-P22 Rotary Cleaner
NS-HC56 CC GFG Aspirator
NS-22x120-P22 Rotary Cleaner
NS 4 multi cylinder length separators
Total Equipment Costs
Site Construction
Land
Building
Bobcat
Utilities Installation
Storage Bins
100' Scale
Office Expense
Total Value
Cost
Breakdown
Not
Available
Dimensions/Quantity/Source
Northland Superior
Northland Superior
Northland Superior
Northland Superior
Northland Superior
Northland Superior
Northland Superior
Northland Superior
Northland Superior
Northland Superior
5,440,000
120,000
20,000
280,000
30,000
100,000
200,000
100,000
10,000
Hadiken Concrete & Supply
R.M Humboldt
Boychuk Builders
Kelsey Farm Equipment
Crown Corp's
Federated Coop
Northland Superior
Staples
6,300,000
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Prairie Pulse Processing
4.0 Marketing Plan
4.1 Introduction
PPP is a new business venturing into an already established market. All of the product is
designed for export to foreign consumers. Initiation of plant setup will begin in the
spring of 2003 and product will be flowing through the plant by early fall. Management
will be hired in mid-summer to establish a raw product market from local producers.
4.2 The Market
There are four key markets for PPP:
1. Edible peas from domestic markets
2. Edible lentils from domestic markets
3. Screenings in domestic markets
4. Split peas and lentils in export markets
Western Canada produces 2.4 million tonnes of peas and 800,000 tonnes of lentils
annually (Sask. Ag and Food, 2001). Field peas are produced mostly in NE
Saskatchewan and lentils are produced mainly in SW Saskatchewan. Acreage of each
crop has been consistently expanding each year due to the need for producers to
diversify.
Initially PPP will be purchasing 1400 tonnes of lentils and 400 tonnes of peas to fill
available raw storage. Annually, PPP will put through 24,021 tonnes of lentils and 6,120
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Prairie Pulse Processing
tonnes of peas. These numbers represent only 1% of the lentil market and 0.7% of the
pea market in Western Canada. The process will produce approximately 15% screenings,
which amounts to 5319 tonnes per year. These screenings will be sold to local livestock
producers as a high quality feed ration.
Members from an East Indian delegation will be purchasing common shares in PPP.
These members are affiliated with a trade broker in India. Their interest in investing in
Western Canada comes from the opportunity in processing, to their standards, at a lower
cost of production. Through this partnership, the East Indians have a guaranteed source
for product and PPP has a guaranteed market for sale.
4.3 Competition for Purchase of Peas and Lentils
The competitors to PPP include all other companies that purchase peas and lentils. After
analyzing the existing markets, there were 128 companies that purchase the same raw
products that PPP requires. Out of these 128 companies, six companies were identified
as having similar product lines: Belle Pulse (Bellevue), Best Cooking Pulses (Rowatt),
Canadian Select Grains (Eston), Darlaine Natural Foods (Radisson), Parkland Pulse
Grain (North Battleford), Walker Seeds (Tisdale) (Sask. Ag and Food, 2000). These
companies have established a working relationship with the producers of the raw pulses
and PPP will have to develop a client base. This is going to impact the other pulse
processing facilities to a slight degree due to PPP only needing 1 percent of lentil
production and 0.7 percent of the pea production.
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Prairie Pulse Processing
For PPP there is really no direct competition in their final product market. This is due to
the fact that PPP has one buyer that guarantees purchase of all finished product.
Therefore, the only real market development that is needed is the purchasing of raw
products.
The by-product of PPP is screenings that are going to be sold to local livestock producers.
Since these producers require low cost feed to be profitable, these producers need to buy
screenings locally to cut down trucking costs. This means that other processing facilities
are not going to be direct competition due to their geographical location.
With PPP’s strategic location and unique market, the direct competition is very limited.
The result of low competition is that PPP has a competitive advantage over all other pulse
processing facilities.
4.4 Competitive Advantage
PPP has a considerable advantage over all other pulse processing facilities. The
guaranteed buyer of all finished human products takes the investment risk out of the
situation. The location of the facility allows PPP to compete with existing buyers for
pulses in the Humboldt area.
The high equity financing enables PPP to operate at lower cost of goods sold. This
means that PPP can pay more for raw products, shipping, trucking premiums,
management, and labor. The reason for this is that PPP has a low debt payment, which
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Prairie Pulse Processing
results in more profits in good years and sustainability in bad years. With 48% foreign
equity this allows PPP to secure financing for long term debt. Other pulse processing
operations have to start with a high long-term debt, which is difficult to service, and to
obtain.
4.5 Customers
Screenings will be sold on a weekly basis to local livestock producers with credit terms
stating payment within 30 days from date of purchase.
Export product will be sold throughout the whole year. Product will be shipped to the
Vancouver port via CN Rail and will wait to be loaded onto ocean freighters. From this
point the East Indian trade broker will assume responsibility for the freight until it
reaches the port of Mumbai in India. A twenty- percent down payment will be placed on
the shipment before it leaves the port of Vancouver. Forty-five days later, the shipment
will arrive in India and the difference payment will be issued to PPP. Letters of credit
will be in place to guarantee payment and the marketing manager will work very closely
with international trade brokers who will be responsible for ensuring that shipping
procedures work according to plan.
4.6 Product Features
Split lentils and split peas will be tailored to the foreign customer specifications. These
products will meet the strict HACCP control standards, guaranteeing a safe and healthy
product for the human consumption market. The finished product will be shipped in 25 -
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Prairie Pulse Processing
kg plastic bags to improve handling and to add value to the product. The screenings are
of a superior quality because of their high protein content. They will be shipped in bulk to
reduce handling costs.
4.7.1 Channels of Distribution for Supply of Domestic Product
Lentils will be sourced from Southern Saskatchewan and therefore will need to be hauled
to PPP via highway transport. A trucking premium will be offered to producers who are
distanced from PPP in order for PPP to obtain supply. Peas will be sourced from NorthCentral Saskatchewan and will be hauled in via highway transport. Premiums will be
issued based on the marketing manager’s discretion.
4.7.2 Channels of Distribution for Export Product
Once the product has been split and bagged, the bags are stacked 40 to a pallet. The
pallet will be shrink-wrapped to prevent damage during transport. From this point, the
pallets are loaded into 20 tonne ocean containers, which are secured on flatbed semi
trailers. The containers are sealed and transported by Intermodal Trucking to the CN Rail
yard in Saskatoon. These containers are transferred onto flatbed rail cars. CN Rail will
transport them to the port of Vancouver where they will wait to be loaded onto an ocean
freighter. An agreement will be arranged with the foreign customers stating that the
product will be shipped free on board, which means that transfer of ownership occurs at
the port of Vancouver. When the ocean freighter is loaded, it travels to the port of
Mumbai, India where the product will be offloaded and distributed.
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Prairie Pulse Processing
Figure 4.1 Distribution Channels for Export Markets
Prairie Pulse
Processing
Warehouse
Truck
Intermodal
CN Rail Yard
Saskatoon, SK
CN Rail Cars
Port of
Mumbai,
India
Port of
Vancouver
Ocean Liner
4.8 Pricing Policy
PPP is a price taker in both the supply market and the export market. Prices are dictated
by world market demand for peas and lentils. Screenings prices are also market driven
and as such are dictated by the local livestock feed market.
4.9 Advertising and Promotion
PPP is a new competitor in the pulse processing industry and will have to get its name
into the marketplace. PPP will accomplish this through the use of advertising in producer
magazines and newspapers. The articles will be used to increase awareness in the
farming community that PPP will be actively buying pulses and to inform producers that
screenings will be for sale. Farm production shows such as Farm Progress Show in
Regina, and Crop Production Show in Saskatoon will give PPP an opportunity to meet
Comm 492 College of Commerce, University of Saskatchewan
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Prairie Pulse Processing
some producers in the pulse industry. A web page will also be created to allow producers
access to information about the company and current prices with delivery options. The
promotion of finished products to foreign customers will only be done through personal
contact at conference meetings.
4.10 Marketing Budget
The marketing budget has been set aside to allocate funds for promotion, advertising and
foreign customer contact. The marketing manager will be responsible for relations
between PPP and the foreign customers. A yearly visit to India will be required to ensure
satisfaction of finished product, and to improve export opportunities. The allocation of
$20,000 has been put into travel expenses.
4.11 Sales and Profit Objectives
Initially PPP will begin production by processing 24,000 tonnes of lentils and 6000
tonnes of peas. The reason for this level of production is so that the employees learn how
to operate the plant and produce product specifically for the East Indian market. At the
beginning of the second year PPP will increase production by 20%. Maximum capacity
of the facility will be reached at this point.
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Prairie Pulse Processing
4.12 SWOT Analysis
Table 4.1 SWOT Analysis
Strengths
48% of foreign funding
Large supply of raw product
Guaranteed purchase of finished product
State of the art facility
Opportunities
Other potential customers (Europe, Middle
East)
Ability to process other products
Potential to expand
Weaknesses
High cash conversion cycle
High start up costs
No control over finished product pricing
Dependency on foreign customers
Threats
Weather may influence raw product supply
Competition for direct materials purchase
Variation of commodity prices
Substitutes for Production
5.0 Human Resources Plan
5.1 Employee Qualifications
PPP requires an educated, hardworking, knowledgeable workforce. Successful applicants
will meet strict employment criteria. PPP’s recruiting policy will be based on education
level completed, skills, past work experiences, and expected wage and benefits. PPP will
be advertising the available positions through government job postings and through
advertising in the local newspapers. This will include the Star Phoenix in Saskatoon, the
Leader Post in Regina, as well as the Western Producer. The Board of Directors will
appoint the general manager, while he/she will hire all other staff.
5.2 Job Descriptions
5.2.1 General Manager
The General Manager (GM) position will be filled before completion of the facility,
which will allow the GM to look for potential employees to fill available job positions.
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Prairie Pulse Processing
The GM will report directly to the Board of Directors, which ensures that the Board of
Directors is aware of the position of the company. Duties of the GM will be to oversee
the entire operation at PPP including management of personnel and looking after the
financial well being of the company and the hiring and firing of personnel.
5.2.2 Marketing Manager
There will be one full-time Marketing Manager on staff. He/she will be responsible for
both the buying of raw product and selling of finished product. The Marketing Manager
will maintain contact with the foreign customer to ensure a stable business relationship is
maintained. The overall goal of the Marketing manager is to maintain a steady supply of
raw product for production. This can be done through delivery contracts to ensure that
seasonal demand does not influence the supply of product. He/she will also be
responsible for selling screenings to local farmers.
5.2.3 Secretary/Accountant
The secretary/accountant will be responsible for a variety of duties, including cheque
issuing to local farmers for the purchase of pulses and all other day to day expenses. The
secretary is also responsible for directing the phone lines, typing memos for the GM, and
day to day accounting procedures that occur at PPP. The secretary/accountant is also in
charge of monthly payroll and the monthly/year end financial statements.
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Prairie Pulse Processing
5.2.4 Foreman
There will be 2 foremen on staff at PPP. There are two shifts of workers operating on a
16-hour schedule. This means one foreman would be on each shift. This foreman is in
charge of overseeing all aspects of the processing facility from unloading trucks of raw
product to loading trucks of finished product. In-depth knowledge of how the processing
equipment operates is a necessity. The foreman is the general laborers’ representative to
management. He/she may have to fill in other positions during busy times and sick days.
5.2.5 Millwright
There will be two millwrights, one for each shift. Both of these employees will be on call
in case of emergencies. Otherwise they will handle day-to-day maintenance and repair of
all equipment at the facility. It is the practice of the industry for the millwright to provide
their own tools, however PPP will supply the more expensive specialized tools needed to
repair the equipment.
5.2.6 Forklift
Two forklift operators will be required, one for each shift. The duties include moving of
pallets from the bagging area to the warehouse and bringing empty pallets from the
warehouse to bagging area. The operators will also be required to perform daily
maintenance to their units, which includes checking oil levels and greasing machines.
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Prairie Pulse Processing
5.2.7 Shipper/Receiver
There will be only one shipper/receiver due to unloading of raw products and loading
finished product during business hours. This employee will have to be flexible in that he
or she may be required to come in early and/or stay late to load and unload all necessary
products. The monitoring of incoming and exiting product from the facility will be part
of his/her duties. This is a key job since this employee has many responsibilities all over
the facility and yard. At times where there is shipping and receiving to be done at the
same time, the foreman will be required to either ship or receive.
5.2.8 Bagger
The facility requires two baggers, one for each shift. The duties include monitoring the
bagging machine and wrapping the loaded pallets. The placement of empty pallets into
the bagging machine is also their responsibility.
5.2.9 Cleanup
One cleanup person will be required to clean the plant and office area after plant hours.
All general laborers such as foreman, millwright, forklift operators, shipper/receiver,
bagger and cleanup will be required to take the following training at the expense of PPP:
1) Forklift operator license
2) WHMIS, TDG
3) First Aid, CPR
4) HACCP
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Prairie Pulse Processing
It is expected that all employees will work in a safe, friendly manner. They will do their
best to keep the plant clean and sanitary to reduce the work of the cleanup employee.
5.3 Human Resource Strategy
PPP plans to offer above average salaries in order to find loyal employees. The salaries
paid ensure a lower turnover ratio of skilled employees resulting in lower training costs.
PPP plans on putting on employee functions such as Christmas parties and staff BBQ’s to
ensure high company morale. The cost of these activities will be come out of
miscellaneous expenses.
5.4 Future Needs
Updating of training of the labor force will be done as required and paid for by PPP. The
salaries of all employees will increase with inflation and the possibility of bonuses due to
exceptional production.
Table 5.1 – Employment at Prairie Pulse Processing
Staff Position General Marketing Secretary/ Foreman Shipper/ Millwright Forklift
Baggers Cleanup
Manager Manager Accountant
Receiver
Operators
Number
Annual Salary
E.I. (3.08%)
CPP (4.07%)
Comp. (5.0%)
Total Cost
1
65,000
2,002
2,646
3,250
72,898
1
55,000
1,694
2,239
2,750
61,683
1
45,000
1,386
1,832
2,250
50,468
2
80,000
2,464
3,256
4,000
89,720
Comm 492 College of Commerce, University of Saskatchewan
1
35,000
1,078
1,425
1,750
39,253
2
100,000
3,080
4,070
5,000
112,150
2
50,000
1,540
2,035
2,500
56,075
2
50,000
1,540
2,035
2,500
56,075
30
1
25,000
770
1,018
1,250
28,038
Prairie Pulse Processing
6.0 Financial Plan
6.1 Sources of Funding
PPP will have two primary sources of funding. Equity financing will comprise 48% of
the total funding, provided 48% by the East Indian investors and 52% by Canadian
investors. This financing will total $3.5 million through the issuance of Class A common
shares.
6.2 Five Year Projected Balance Sheet
Balance Sheet
31-May
2004
2005
2006
2007
2008
Assets
Current Assets:
Cash
Accounts Receivable
Inventories
Total Current Assets
315,430
2,056,411
885,973
3,257,813
1,679,997
2,541,724
1,101,753
5,323,474
2,552,661
2,617,975
1,128,222
6,298,858
2,782,640
2,696,514
1,156,795
6,635,949
2,852,704
2,777,410
1,187,273
6,817,387
Plant and Equipment
Accumulated C.C.A.
Net Plant and Equipment
6,300,000
(581,600)
5,718,400
6,300,000
(1,630,336)
4,669,664
6,300,000
(2,472,963)
3,827,037
6,300,000
(3,150,556)
3,149,444
6,300,000
(3,695,983)
2,604,017
Total Assets
8,976,213
9,993,138
10,125,896
9,785,393
9,421,403
425,414
525,812
541,586
557,834
574,569
3,534,364
3,959,778
3,253,105
3,778,917
2,950,751
3,492,338
2,625,722
3,183,556
2,276,314
2,850,883
Share Capital
Retained Earnings
Total Shareholder's Equity
3,504,000
1,512,435
5,016,435
3,504,000
2,710,221
6,214,221
3,504,000
3,129,558
6,633,558
3,504,000
3,097,838
6,601,838
3,504,000
3,066,520
6,570,520
Total Liabilities and
Shareholder's Equity
8,976,213
9,993,138
10,125,896
9,785,393
9,421,403
Liabilities
Current Liabilities:
Accounts Payable
Long Term Debt
Total Liabilities
Shareholders' Equity
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Prairie Pulse Processing
6.3 Summary Tables
Table 6.3.1 The Base Case Results
Net Present Value
Internal Rate of Return
Cash Flows
Net Income
Split Lentils Sold (t)
Split Peas Sold (t)
Screenings Sold (t)
Export lentil price
Export pea price
Screenings price
Transportation cost
Pea purchase price
Lentil purchase price
Trucking premiums
3,317,618
37.3%
2004
315,430
1,512,435
20,018
5,100
4,433
690
458
120
1,984,283
239
408
591,000
2005
1,364,567
1,197,786
23220
5304
5034
711
472
124
2,452,573
246
420
730,476
2006
872,664
1,304,335
23220
5304
5034
732
486
127
2,526,150
254
433
752,390
2007
229,979
1,507,775
23220
5304
5034
754
500
131
2,601,935
261
446
774,962
2008
70,064
1,680,662
23220
5304
5034
777
515
135
2,679,993
269
459
798,211
Prairie Pulse Processing is a good investment since the internal rate of return is higher
than the required rate of return of 20%. Cash flows and net income are positive each
year.
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Prairie Pulse Processing
Table 6.3.2 The Best Case Results
The variables changed in this case are the purchase price of raw materials and trucking
premiums.
Net Present Value
Internal Rate of Return
Cash Flows
Net Income
Split Lentils Sold (t)
Split Peas Sold (t)
Screenings Sold (t)
Export lentil price
Export pea price
Screenings price
Transportation cost
Pea purchase price
Lentil purchase price
Trucking premiums
GPM %
13,787,566
91.1%
2004
2,210,229
3,300,420
20,018
5,100
4,433
690
458
120
1,984,283
179
306
517,125
47.1%
2005
2,494,356
3,585,038
23220
5304
5034
711
472
124
2,452,573
184
315
639,167
43.0%
2006
1,115,210
3,811,361
23220
5304
5034
732
486
127
2,526,150
190
325
658,341
43.7%
2007
368,532
4,092,599
23220
5304
5034
754
500
131
2,601,935
196
334
678,092
44.7%
2008
183,060
4,343,721
23220
5304
5034
777
515
135
2,679,993
201
344
698,434
45.4%
By examining the summary results it is possible to see that PPP is a good investment
because the internal rate of return is much higher than the required rate of 20%. This is
the best case due to widened gross profit margin that is a result of lower raw product
prices and lower trucking premiums.
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Prairie Pulse Processing
Table 6.3.3 The Worst Case Results
The variables changed in this case are the purchase price of raw materials and trucking
premiums.
Net Present Value
Internal Rate of Return
Cash Flows
Net Income
Split Lentils Sold (t)
Split Peas Sold (t)
Screenings Sold (t)
Export lentil price
Export pea price
Screenings price
Transportation cost
Pea purchase price
Lentil purchase price
Trucking premiums
GPM %
(8,141,505)
#DIV/0!
2004
(1,603,531)
(299,712)
20,018
5,100
4,433
690
458
120
1,984,283
299
510
664,875
16.6%
2005
(1,418,376)
(1,559,949)
23,220
5,304
5,034
711
472
124
2,452,573
308
525
821,786
10.1%
2006
(1,130,376)
(1,579,742)
23,220
5,304
5,034
732
486
127
2,526,150
317
541
846,439
10.1%
2007
(1,147,897)
(1,405,517)
23,220
5,304
5,034
754
500
131
2,601,935
327
557
871,832
11.0%
2008
(1,165,944)
(1,263,124)
23,220
5,304
5,034
777
515
135
2,679,993
337
574
897,987
11.7%
In this scenario, purchase prices were increased by 25% and trucking premiums were
increased by 12.5%. The reason for increasing purchase price and trucking premiums is
that these factors are the most critical to achieving profitability. PPP is not meeting the
required rate of return and has negative net income and negative cash flows. This
indicates to investors that this is not a feasible proposition.
6.4 Contingency Plan
The contingency plan for the worst case scenario is to explore domestic markets and
other foreign markets for PPP’s finished goods. This may develop opportunities for
niche markets which could increase revenue through higher finished product prices..
Another prospect would be to source raw product from other areas that sell at a lesser
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Prairie Pulse Processing
price. Another contingency plan would be to diversify into other crop processing such as
chickpeas.
6.5 Critical Variables
Purchase and selling prices of lentils and peas are critical because slight fluctuations in
these values cause a large impact to the gross margin. Export prices are based upon the
raw pulse price. Raw pulse prices and raw pulse supply are inversely related.
Table 6.4 Critical Factors
Variable
Level of Importance (1,2,3)
Split Lentils Sold (t)
2
Split Peas Sold (t)
3
Screenings Sold (t)
3
Export lentil price
2
Export pea price
2
Screenings price
2
Transportation cost
2
Pea purchase price
2
Lentil purchase price
2
Trucking premiums
3
Level of importance:
1=critical for feasibility
2=important for financial performance
3=minor importance
PPP will negotiate a cost plus sales contract, negating the two critical factors. Thus,
sensitivity analysis for PPP will not be required.
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Prairie Pulse Processing
6.6 Operating Line of Credit
Due to the large cash conversion cycle, PPP will need a line of credit in the approximate
value of $300,000. This will help cover cash shortfalls in the first two years of
operation.
6.7 Net Income Break-even Analysis
The net income break-even analysis is provided for quantity of sales and selling prices.
PPP assumes that the purchase price is fixed for both lentils and peas, so we are actually
changing the gross margin.
Table 6.5 Net Income Break-even Analysis
Net Income Break-even Varying Quantity
Year
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Net Income
$
$
$
$
$
$
$
$
$
$
-
$
$
$
$
$
$
$
$
$
$
CFAT
258,408
318,230
489,741
(13,185)
(171,661)
(189,341)
(171,383)
(149,552)
(227,593)
(311,398)
Quantity (tonnes) Net
Income Break Even
Peas
Lentils
2,118
8,312
2,661
11,647
2,580
11,296
2,411
10,557
2,268
9,931
2,154
9,428
2,060
9,018
1,982
8,676
1,916
8,386
1,859
8,136
Comm 492 College of Commerce, University of Saskatchewan
Quantity (tonnes) Base
Case
Peas
Lentils
5,100
20,017
6,120
24,021
6,120
24,021
6,120
24,021
6,120
24,021
6,120
24,021
6,120
24,021
6,120
24,021
6,120
24,021
6,120
24,021
36
Prairie Pulse Processing
Net Income Break-even Varying Prices
Year
Net Income
Selling Prices Net Income Break Even
Peas
Lentils
Screenings
CFAT
(928,762) $
Selling Prices Base Case
Peas
Lentils
Screenings
2004
$
-
$
398
$
600
$
104
$
458
$
690
$
120
2005
$
-
$
207,985
$
440
$
663
$
115
$
472
$
711
$
124
2006
$
-
$
477,407
$
450
$
678
$
118
$
486
$
732
$
127
2007
$
-
$
299,028
$
459
$
691
$
120
$
500
$
754
$
131
2008
$
-
$
135,261
$
468
$
705
$
123
$
515
$
777
$
135
2009
$
-
$
(3,094) $
478
$
720
$
125
$
531
$
800
$
139
2010
$
-
$
(121,632) $
489
$
737
$
128
$
547
$
824
$
143
2011
$
-
$
(224,862) $
501
$
755
$
131
$
563
$
849
$
148
2012
$
-
$
(316,435) $
514
$
774
$
135
$
580
$
874
$
152
2013
$
-
$
(399,317) $
527
$
794
$
138
$
598
$
900
$
157
These results indicate that in the first three years, quantity of sales can decrease while still
returning a positive cash flow. However, continuance of low quantity of sales will
compound cash losses. When selling prices are altered, cash flows are positive for four
years and negative for the other six. Prices can fall by approximately 13% to give a zero
net income.
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Prairie Pulse Processing
6.8 Cash Flow After Tax Break-even Analysis
The net income break-even analysis is provided for quantity of sales and selling prices.
PPP assumes that the purchase price is fixed for both lentils and peas, so we are actually
changing the gross margin.
Table 6.6 Cash Flow After Tax Break-even Analysis
Cash Flow Break-even Varying
Quantity
Quantity (tonnes) Cash
Flow Break Even
Year
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Net Income
$ (780,505.00)
$ (218,933.00)
$ (748,465.00)
$ (241,443.00)
$ (220,002.00)
$ (27,807.00)
$ 61,130.00
$ 171,398.00
$ 254,833.00
$ 336,560.00
CFAT
$
$
$
$
$
$
$
$
$
$
-
Peas
1,233
2,229
1,745
1,926
1,829
1,849
1,821
1,814
1,798
1,746
Quantity (tonnes) Base Case
Lentils
4,839
9,760
7,640
8,431
8,008
8,095
7,972
7,940
7,872
7,821
Peas
5,100
6,120
6,120
6,120
6,120
6,120
6,120
6,120
6,120
6,120
Lentils
20,017
24,021
24,021
24,021
24,021
24,021
24,021
24,021
24,021
24,021
Cash Flow Break-even Varying Selling Prices
Selling Price Cash Flow Break Even
Year
Net Income
1,127,352
CFAT
Peas
Lentils
Selling Prices Base Case
Peas
Lentils
Screenings
Screenings
2004
$
$
-
$
442
$
667
$
116
$
458
$
690
$
120
2005
$
(463,750) $
-
$
429
$
646
$
112
$
472
$
711
$
124
2006
$
(479,328) $
-
$
439
$
661
$
115
$
486
$
732
$
127
2007
$
(273,673) $
-
$
452
$
681
$
118
$
500
$
754
$
131
2008
$
(115,797) $
-
$
465
$
701
$
122
$
515
$
777
$
135
2009
$
19,813
$
-
$
479
$
721
$
125
$
531
$
800
$
139
2010
$
135,950
$
-
$
493
$
742
$
129
$
547
$
824
$
143
2011
$
237,365
$
-
$
507
$
764
$
133
$
563
$
849
$
148
2012
$
327,555
$
-
$
522
$
786
$
137
$
580
$
874
$
152
2013
$
409,408
$
-
$
537
$
809
$
141
$
598
$
900
$
157
These results indicate the lowest price and quantity required for PPP to operate. Net
income is severely reduced without adequate cash flow. Quantities of peas and lentils are
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Prairie Pulse Processing
much less than projected output. However, selling prices cannot fall very far before
reaching a zero cash flow.
6.9 Economic Break-even Analysis
This analysis indicates the lowest quantity of sales and the lowest selling prices Prairie
Pulse Processing can withstand before an economic loss. A positive economic profit
indicates to investors that they should invest their money in the company.
Table 6.7 Economic Break-even Analysis
Cash Flow Break-even Varying Quantity
Year
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Net Income
$
748,446
$
242,215
$
368,300
$
537,410
$
679,517
$
804,245
$
916,623
$ 1,019,984
$ 1,116,839
$ 1,209,180
CFAT
$ 301,220
$ 688,507
$ 485,210
$ 99,711
$ 7,672
$ (8,122)
$ (5,255)
$ 1,230
$ 7,581
$ 13,011
Quantity (tonnes) Quantity (tonnes) Base
Economic Break
Case
Peas
Lentils
Peas
Lentils
3,564
13,987
5,100
20,017
3,706
16,225
6,120
24,021
3,706
16,225
6,120
24,021
3,706
16,225
6,120
24,021
3,706
16,225
6,120
24,021
3,706
16,225
6,120
24,021
3,706
16,225
6,120
24,021
3,706
16,225
6,120
24,021
3,706
16,225
6,120
24,021
3,706
16,225
6,120
24,021
NPV = 0
IRR = 20%
Cash Flow Break-even Varying Selling Prices
Year
Net Income
Selling Prices Economic Break Even
Peas
Lentils
Screenings
CFAT
Selling Prices Base Case
Peas
Lentils
Screenings
2004
$
1,019,287
$
(88,518) $
438
$
660
$
115
$
458
$
690
$
120
2005
$
348,485
$
677,804
$
451
$
680
$
118
$
472
$
711
$
124
2006
$
445,643
$
839,557
$
465
$
700
$
122
$
486
$
732
$
127
2007
$
623,316
$
196,161
$
479
$
721
$
125
$
500
$
754
$
131
2008
$
769,667
$
35,308
$
493
$
743
$
129
$
515
$
777
$
135
2009
$
897,545
$
1,194
$
508
$
765
$
133
$
531
$
800
$
139
2010
$
1,012,840
$
(772) $
523
$
788
$
137
$
547
$
824
$
143
2011
$
1,119,120
$
4,481
$
539
$
812
$
141
$
563
$
849
$
148
2012
$
1,218,957
$
10,565
$
555
$
836
$
145
$
580
$
874
$
152
2013
$
1,314,364
$
15,987
$
572
$
861
$
150
$
598
$
900
$
157
NPV = 0
IRR = 20%
Comm 492 College of Commerce, University of Saskatchewan
39
Prairie Pulse Processing
This analysis indicates that PPP can return an economic profit because the prices can fall
below projected selling prices, all else remaining the same, and quantities can fall below
projected sales levels, provided all else remains the same.
6.10 Risk Analysis
Provided that the gross profit margin remains constant, cash flow levels and net income
will remain positive. The minimum gross profit margin for the cash flow break-even
level averages 10%. This means that Prairie Pulse Processing can operate at a lower level
of deliveries than projected.
7.0 Conclusion and Recommendation
PPP business venture is a feasible investment. This is revealed by the high internal rate
of return. There are many risks associated with this business venture, such as slight
fluctuations in purchase and selling prices that could result in losses. The use of a cost
plus sales contract alleviates these risks making PPP a sound investment. However,
without the cost plus contract, even with the high internal rate of return, the risks
outweigh the potential benefit. Risks such as the weather and market driving forces (such
as what producers decide to produce) are beyond PPP’s control and could lead to a
negative return.
We as the business planning team believe that with a cost plus sales contract PPP is a
feasible investment but with it there are to many risks.
Comm 492 College of Commerce, University of Saskatchewan
40
Prairie Pulse Processing
8.0 References
Day, R., McConaghy, T., Spratt, L. and Wasylyniuk, C. 1998. Peaco Pea Processing
Company Business Plan. College of Commerce, University of Saskatchewan,
Saskatoon.
Saskatchewan Agriculture and Food A. “2001 Specialty Crop Report.”2001.
Saskatchewan Agriculture and Food B. “Crop Districts Map.”
http://www.agr.gov.sk.ca/docs/reports/crop_report/Crdist.asp?firstPick=Statistics&secondpick=Cr
ops&thirdpick=Production. 2002.
STAT Publishing. “Specialty crops markets.” http://www.statpub.com/stat/cash-mkt.html. 2002.
Comm 492 College of Commerce, University of Saskatchewan
41