INDEX

P.

1.2. HISTORICAL BACKGROUND...........................................................................3

1.3. PROBLEM STATEMENT....................................................................................4
1.3.1. THEORETICAL NARRATIVE OF THE PROBLEM......................................4
1.3.2. PROBLEM OUTLINE.......................................................................................6
EFFECT.............................................................................................................................6
CAUSE..............................................................................................................................6
1.3.4. ELEMENTS OF THE PROBLEM THAT ARE KNOWN................................8
1.3.5. ELEMENTS OF THE PROBLEM YOU WANT TO KNOW..........................8
1.4. RESEARCH QUESTION......................................................................................8
1.5. AIM........................................................................................................................8
1.5.1. GENERAL OBJECTIVE...................................................................................8
1.5.2. SPECIFIC OBJECTIVES...................................................................................8
1.6. DELIMITATION...................................................................................................9
1.6.1. TEMPORARY LIMIT........................................................................................9
1.6.3. NOUN LIMIT.....................................................................................................9
1.7. JUSTIFICATION...................................................................................................9
1.7.1. TECHNICAL JUSTIFICATION........................................................................9
1.7.2. ECONOMIC JUSTIFICATION.......................................................................10
1.7.3. SOCIAL JUSTIFICATION..............................................................................10
1.8. RESEARCH METHODOLOGY.........................................................................10
2.1. REFERENCE FRAME........................................................................................11
> PRODUCTION THEORY.......................................................................................13
> FOOD SAFETY THEORY.....................................................................................13
> PROJECT THEORY................................................................................................14
> QUALITY THEORY...............................................................................................14
2.2. CONCEPTUAL FRAMEWORK.........................................................................14
2.3. LEGAL FRAMEWORK......................................................................................16
STATE CONSTITUTION..............................................................................................16
LAW N°80......................................................................................................................16
CRIMINAL LAW FOR THE PROTECTION OF LIVESTOCK ACTIVITY..............17
HEALTH LAW N°2061.................................................................................................18
LAW 843 (TAX CODE).................................................................................................18
 UNIFIED AGRICULTURAL REGIME.........................................................................18
TRANSACTION TAX (IT)............................................................................................19
TAX ON CORPORATE PROFIT (IUE)........................................................................19
COMMERCIAL CODE..................................................................................................20
ENVIROMENT...............................................................................................................20
SENASAG.......................................................................................................................21
3.1.1. PRODUCT DESCRIPTION.............................................................................22
3.1.2. DEFINITION OF THE DIFFERENT SUBSTITUTES...................................22
FATTENING OF BOVINE CATTLE............................................................................22
PRODUCTION...............................................................................................................23
> CHICKEN MEAT....................................................................................................23
BENEFITS......................................................................................................................24
PROPERTIES.................................................................................................................24
> PORK MEAT...........................................................................................................24
BENEFITS......................................................................................................................25
> FISH MEAT.............................................................................................................25
BENEFITS......................................................................................................................25
3.2. MARKET SEGMENTATION.............................................................................25
> Middle class segmentation.......................................................................................26
> Lower middle class segmentation............................................................................26
TABLE N°2 OBJECTIVE OF THE BENEFITED POPULATION..............................27
3.3. SAMPLE DESIGN...............................................................................................27
> PILOT TEST................................................................................................................27
Formula...........................................................................................................................28
Size Determination..........................................................................................................28
0, 05 * 0,95 * 496.636 * 1. 962 n—................................................................................28
3.4. STUDY AREA.....................................................................................................29
3.5. STUDY AREA EQUIPMENT.............................................................................29
3.5.1. TRANSPORT SERVICES...............................................................................29
3.5.2. HEALTH SERVICE.........................................................................................30
3.5.3. SECURITY SERVICES...................................................................................30
WHAT AMOUNT OF KILOS DO YOU CONSUME IN YOUR HOME.?....................32
WHERE YOU GENERALLY BUY MEAT.?..................................................................33
WHERE YOU USUALLY BUY THESE..........................................................................36
SUBSTITUTE PRODUCTS.?............................................................................................36
 WHAT MOTIVATES YOU TO PURCHASE THE PRODUCT SAID PLACE?........37

> STATIST MODEL.- We are in the presence of a statist model, where

There is still respect in general terms for the functioning of the market, only there is a
high statist content in other definitions, where nationalizations and interventions in the
private sector are repeated, neglecting an essential factor for investments: the legal
security of the private sector. and promoting uncertainty. This essential legal factor of
democracy is in turn reflected in a negative biunivocal relationship with the economic
model, because it causes democracy to become a nominal democracy, economically
weak, although paradoxically, state-authoritarian as the intervener and undertaker of
public spending. , spending that weakens private initiative and investment.

Finally, the accumulation process of this economy is based on the economic

surpluses generated by the traditional extractivist primary export model. Yesterday
Bolivia lived on external savings, today on external demand and both are highly
vulnerable to its economy.

This economic model affects us since there is uncertainty about state intervention,
although prices are related to supply and demand, the state acts as a price regulator.

> FISCAL THEORY .-“Fiscal policy can be defined as the use of spending

public and tax collection to influence the economy.

Fiscal policy can be contrasted with the other main type of economic policy, monetary
policy, which attempts to stabilize the economy by controlling the interest rate and
money supply. The two main instruments of fiscal policy are public spending and
taxes.

This theory will affect the project, since when it comes to starting a company, it will be
covered by the taxes collected by the state.

> MONETARY THEORY.-“ Monetary policy is based on the relationship between

www.enciclopediafinanciera.com
the

interest rates in an economy, which is the basis for calculating the price at which
money is lent by banks, and the amount of money in circulation. Monetary policy uses
a variety of tools to control one or both of these, to influence outcomes such as
economic growth, inflation, exchange rates with other currencies and unemployment.

Being a monetary one, this project needs financing, therefore it is affected by this
theory.

> SOCIAL THEORY.- As is natural, the development of social activities

They have become sources of employment, although not the necessary amount, if we
consider that they are in livestock, but if we take into account all the economic
activities that it generates, directly or indirectly it is observed that the employment
generated is significant. Thus, the nutritional contribution it provides to the consuming
population is relevant, since livestock producers are accessible to the majority of the
population, thereby guaranteeing the consumption of foods rich in protein.
> PRODUCTION THEORY

The theory of production studies the way in which productive factors can be combined
in an efficient way to obtain products or goods. These products can be destined for
final consumption or used in other production processes as inputs. Every society has
to organize the production process in some way to adequately resolve fundamental
economic problems.

The production function that a company can obtain with each specific combination of
factors applied to a given technology such as; labor, raw materials and capital.1

> FOOD SAFETY THEORY

Food security refers to the availability of food, people's access to it and biological use
of it. It is considered that a household is in a situation of food security when its
members have sufficient food in sufficient quantity on a sustained basis. and quality
according to needs.

1 https://es.m.wikipedia.org/wiki/M%C3%A9todo_de_proyectos
Food security exists when all people have access at all times (whether physical,
social and economic) to sufficient, safe and nutritionally adequate food to meet their
nutritional needs and cultural preferences for a healthy, active, healthy and healthy
life. socially acceptable.2

> PROJECT THEORY

The project method is an alternative included within the globalizing approach and is
based on a constructivist epistemological theory, a socializing and also individualized
approach, which results in a didactic method focused on the person.

The project method is an alternative in which it is based on the needs, interests and
problems raised by the student based on their particular contextual characteristics.
With this, the project method aims to generate significant learning by opening the
classroom environment to social characteristics. In the project stages, the most
generalized one is the following; identify the problem, search for information, planning,
design, implementation, completion and evaluation.3

> QUALITY THEORY

Quality is defined as relative conformity with specifications, the degree to which a

product meets design specifications, among other things, the greater its quality or, as
is commonly found, satisfaction in a product meeting all expectations. looks for a
client, thus being controlled by rules which must go to the market to be inspected and
have the requirements stipulated by the organizations that certify a product.

Quality is providing value to the client, that is, offering conditions of use of the product
or services superior to those the client expects to receive and at an affordable price. 4

2.1. CONCEPTUAL FRAMEWORK

Shaders. Shading housing is important, because shade increases the well-being of

the animals and therefore their production. They must be discovered and

2 https://es.m.wikipedia.org/wiki/quality
3http://dacateca.unad.edu.co/contenidos/102702/102702/leccin_29__instalaciones_y_equipos_requeridos_para_carne_y_l
eche.html
4http://dacateca.unad.edu.co/contenidos/102702/102702/leccin_29__instalaciones_y_equipos_requeridos_para_carne_y_l
eche.html
transportable. The measurements must be 3.50 m X 350 m. The ceiling should be
cool and allow light to pass through.5

Stables. The size of the stable must be built according to the needs of the livestock
farm and projected according to its growth. The management of excreta for
evacuation must be taken into account. It must be 2.75 m high and the space must be
6 7
ample to facilitate the handling of machinery and the mobilization of the animal.

Corrals. Feedlots and handling pens are typically used. For the construction of this
installation, the method or form that will be used for the supply of food must be taken
into account mainly. These pens must be open and covered. Drinkers 50 cm wide
with a 75 cm difference from floor level must be included. The size of the animal and
the projected increase in the number of animals is what allows us to give
measurements for the size of the pens. The producer will provide the material for the
construction of the pens according to his economic possibilities and the resources
available on his farm. 10

Equipment. For the proper management of cattle, a certain number of implements

and equipment are required. The most important are: feeders and waterers whose
size varies according to the type and size of the animal. It must be comfortable and
easily accessible for the animal to take its food and drinking water. There are fixed
and mobile ones, depending on the type of operation. It should be considered that an
adult animal needs 45 liters of water per day. 8

Sleeves. Sleeves are used to facilitate handling of the animals. Handling sleeves are
used to carry out routine work, such as vaccinations. Several types of containment
sleeves are known, such as: rectangular sleeve, cup-shaped sleeve, V-shaped
sleeve. The height of the door to fix the animal's head is 170 cm and a width of 145
5http://dacateca.unad.edu.co/contenidos/102702/102702/leccin_29__instalaciones_y_equipos_requeridos_para_carne_y_
leche.html
6http://dacateca.unad.edu.co/contenidos/102702/102702/leccin_29__instalaciones_y_equipos_requeridos_para_carne_y_
leche.html
7http://dacateca.unad.edu.co/contenidos/102702/102702/leccin_29__instalaciones_y_equipos_requeridos_para_carne_y_
leche.html
8http://dacateca.unad.edu.co/contenidos/102702/102702/leccin_29__instalaciones_y_equipos_requeridos_para_carne_y_
leche.html
cm. 9

10
Pier. Piers make it easier to load animals onto a truck or train.

Treatment table. This is useful for carrying out management work such as hoof
trimming, operations or cures that require the immobilization of the animal. The
treatment table has the following parts. 11

Foal. The foal is necessary when you want to mate a heavy adult bull with a young
heifer. The rack can be made of wood, it must have posts of at least 15 cm in
diameter.12

2.2. LEGAL FRAMEWORK

This point attempts to review all the legal regulations that could affect the new Bovine
(Meat) Livestock project in the city of Santa Cruz – Municipality of San Antonio de
Lomerío – Community of Puquio Cristo Rey, as well as mentioning all legal records.
what must be done to get it up and running.

STATE CONSTITUTION

The current Political Constitution of the State in its Art. 47 indicates: “All person
has the right to engage in commerce, industry or any legal economic activity, under
conditions that do not harm the collective good.

LAW N°80

Law No. 80 of January 5, 1961, establishes the obligation of all livestock farmers to
register with the Honorable Municipal Mayor's Offices, Agrarian Labor Inspectorates
and Livestock Associations, the brands or signs they use for the affiliation of their
herds.

9http://dacateca.unad.edu.co/contenidos/102702/102702/leccin_29__instalaciones_y_equipos_requeridos_para_carne_y_
leche.html
10http://dacateca.unad.edu.co/contenidos/102702/102702/
leccin_29__instalaciones_y_equipos_requeridos_para_carne_y_ leche.html
11 http://senasag.gob.bo
12
http://www.uvesa.es/es/RinconSaludablees.asp?IdRinconSaludable=2#sthash.bvIWMpvI.dpuf
It points out that the nomenclature of brands and signs is the means to prove livestock
ownership and that any person who owns, drives, buys or retains livestock whose
affiliation is not registered will be sanctioned as a herdsman, determining the
obligation to obtain the livestock movement guide. .

CRIMINAL LAW FOR THE PROTECTION OF LIVESTOCK ACTIVITY

The purpose of this Law is to classify as crimes acts that cause damage to livestock
farming for economic, experimental and any other related activity, establishing the
corresponding criminal sanctions.

When the crime of livestock theft has been committed through threat to life, at
gunpoint or by several people, one of whom has been clearly armed, or by several
people illegitimately uniformed or disguised, or if, in short, has committed the crime
through an attack on individual freedom, the prison sentence will be eight (8) to
sixteen (16) years, without prejudice to the application of the penalty corresponding to
the illicit carrying of weapons.

The prison sentence for the crime of qualified livestock theft will be six (6) to ten (10)
years in the following cases:

If the act was committed by abusing the trust or good faith offered by the owner or
manager of the livestock;

If to commit the act or to transport the stolen livestock, a route other than the one
ordinarily intended for the passage of people or livestock has been used;

If the act has been committed by people illegally uniformed or disguised;

If the act has been committed by two or more people together;

If the act has been committed using the status of a public official, having pretended to
be one or using false identity documents;

Those who suppress, alter, disfigure or erase the iron or sign of live animals or
livestock skins;
Those who injure or mark animals hear us without the consent of the owner or
whoever should give it;

If other people's animals are branded or pointed against, there is no right to do so.

HEALTH LAW N°2061

Guarantee food safety in the productive and processing sections that correspond to
the agricultural sector and carry out food safety certification of food products for
national consumption, export and import", which constitutes the General Objective of
the National Unit Food Safety; This has allowed processing plants and food importers
to be under official control and, through the granting of the Sanitary Registry, to
guarantee the safety of the products coming from them, for which a regulatory
framework was established and is in force in the country. of Good Manufacturing
Practices, and procedures for Health Registration.

LAW 843 (TAX CODE)

When you start a business activity of an industrial, commercial, agricultural or service
provision nature in general, the first obligation is to open your tax identification
number (NIT) in the tax administration of the national tax service to be able to carry
out your activities, centralize tax collections within the established legal framework.
“The application of a Tax Regime for activities carried out in Bolivia is governed by the
Tax Reform Law, the modification of which is carried out through Law 1606 of
December 22, 1994. Under this legal regulation, the application of the following tax
rates is found.

UNIFIED AGRICULTURAL REGIME

The Unified Agricultural Regime (RAU) is a special regime that was created for the
annual payment of taxes for agricultural and livestock activities, as well as for poultry,
beekeeping, floriculture, rabbit farming and fish farming activities, in accordance with
Supreme Decree No. 24463. All natural persons who carry out agricultural or livestock
activities on land whose extension is included within the limits established to belong to
this regime belong to the RAU.
In the RAU, it is paid annually based on the surface area of the property used in
agricultural or livestock activity expressed in hectares, that is, the number of hectares
must be multiplied by the fixed fee, established annually according to the category.

VALUE ADDED TAX (VAT)

“With a rate of 13% applicable to all activities involving the habitual sale of movable
property, construction contracts, provision of rental services for furniture and real
estate, financial leasing operations with movable property, and where the tax base is
the net price of sale or the net contract price of works or services performed. The
settlement period for this tax is monthly.

COMPLEMENTARY REGIME TO THE VALUE ADDED TAX (RCIVA) “Tax on the

income of natural persons and undivided inheritances, from capital investment, work
or both. The rate applied to this tax is 13% Corporate Profits Tax (IUE): the
application of this tax is on the profits generated by the public or private company in a
fiscal year. Those that were the result of a company reorganization process are not
included within this regime. The rate assigned to this tax is 25% and must be paid
once a year.”
TRANSACTION TAX (IT)

“Tax applied to commercial, industrial, professional, trade, business, rental of goods

and other activities carried out by natural persons, legal entities, public and private
companies, including sole proprietorships. The rate assigned to this tax is 3% payable
monthly.”

TAX ON CORPORATE PROFIT (IUE)

“This tax is applied to the profits of companies and falls on the company itself, liberal
professionals or trades, and beneficiaries from abroad. The tax base and the rate for
individuals and sole proprietorships are considered to be 50% of all income in a year,
of which the rate is 25% of this tax. In the second case, for sole proprietorships,
companies, associations, and others, the tax base is the net profit of what was earned
throughout the fiscal period and 25% of this is paid. Net profit is known through the
annual balance sheet prepared by the company's accountant. If a balance sheet is
not presented, then 50% of the company's income for the year is considered the tax
base.”

COMMERCIAL CODE

“The commercial code regulates legal relationships derived from commercial activity.

This code indicates what are the necessary requirements for the formation of the
company, in this case an LLC.

Article 5.- Merchants can be: Natural persons with the capacity to contract and be
bound.
Article 6.- These are commercial acts and operations, among others: The purchase of
merchandise or movable property intended for sale in the same state or after some
transformation, and the subsequent disposal of them, as well as their exchange.
Article 25.- The following are the obligations of every merchant:
1) Register in the Commercial Registry;
2) Register in the same Registry all those acts, contracts and documents for which
the Law requires this formality;
3) Communicate to the competent authority, if applicable, the cessation of payments
for the obligations contracted, within the deadlines established by Law;
4) Keep the accounting of your businesses in the manner established by Law; (Arts.
36 to 65, 419 C. Trade).
5) Comply with tax obligations in the manner prescribed by law;
6) Keep your books, documents and other papers related to your businesses for the
time established by Law. (Arts. 36 and 65, 52 Commercial Code).
7) Refrain from executing acts that imply unfair competition, and
8) The others indicated by Law

REGULATION OF LAW Nº 1333

ENVIROMENT
The purpose of this Law is the protection and conservation of the environment and
natural resources, regulating the actions of man towards nature and promoting
sustainable development with the aim of improving the quality of life of the population.

SENASAG
“ SENASAG enjoys national and international trust and credibility for the quality
systems implemented and has the technical, financial and infrastructure capacity to
provide excellent services with a high phytosanitary, zoosanitary and food safety
standard, for the well-being of the peoples of the plurinational state of Bolivia.

Its purpose is to take care of agricultural health and food safety in the productive and
processing sections. Maintain the health situation of exotic pests and diseases in the
country and improve the health situation of those pests and diseases of economic
importance present in Bolivia.”13

The poultry farm must submit to the health standards established by SENASAG, since
it will sell its products to the population and must comply with the established health
standards.

CHAPTER III

MARKET STUDY

3.1. MARKET DEFINITION

Our market will have an oligopolistic competition structure since it takes place in a
market in which there is a high degree of concentration due to a small number of
producers monopolizing the entire market.

Market research is a method that helps us identify current and potential customers.
So by knowing what the tastes and preferences are as well as the problems of the
clients, as well as their location, social class, education and occupation, among other
aspects, it will be possible to establish the perception they have about the
implementation of a livestock farm. bovine (meat).
13
http://www.revistabuenasalud.com/beneficios-de-la-carne-del-pollo/
The project that will be implemented is the breeding and fattening of cattle (Meat), the
production will be carried out in the municipality of San Antonio de Lomerío, Puquio
Cristo Rey Community; being that the marketing of the product (Cattle Heads) will be
done in the City of Santa Cruz. Having the refrigerators of said city as the final
consumer.

3.1.1. PRODUCT DESCRIPTION

3.1.2. DEFINITION OF THE DIFFERENT SUBSTITUTES

It belongs to the bovid family. They are ruminant animals, which are characterized by
their diet and digestive system, since they are strictly herbivores. They are capable of
digesting herbs, forage (pastures), among others. In the early stages, bovines only
have the abomasum developed, and they feed only on mother's milk; at this stage
they are not considered ruminants. On average, at three months of age they usually
already have their four stomachs functioning (rumen, reticulum, omasum and
abomasum). Which have different functions in the process of digestion of their food,
basically consisting of forage and grains. Characteristics: Both females and males
have bony protuberances (horns) on their heads. These animals can weigh close to a
ton. Most elements of this species congregate in large groups with very complex
social structures, but there are cases in which their behavior is not gregarious. Bovids
cover an extensive range of different climates and habitats, ranging from deserts and
tundra to tropical forests .

FATTENING OF BOVINE CATTLE

Cattle fattening can occur in three different types of systems:

> Extensive: Taking advantage of natural conditions, requires

large extensions of grasslands, however the gains in weight and quality of the
meat are lower than those obtained in other systems. The animals remain for a
longer time to be offered to the market, but the production cost is lower, since
much labor, concentrates and expensive facilities are not required.
> Semi-intensive: It is based on grazing where fattening is combined
 extensive and intensive fattening, and has two modalities:

1) Supplementation : a certain amount of food is provided daily in fixed

feeders in the same pastures.

2) Confinement: the animals graze half a day, and the other half day and all
night they are locked in pens, where they are fed with nutritional mixtures.
> Intensive: Keeps cattle in confinement for a period of 90 days,

with a diet based on specially prepared balanced rations. For this system, only
a small area of land is required to fatten a large number of animals in short
periods of time. In this system, the animals gain more weight due to tranquility,
less exercise, and therefore less wear and tear. of energy.

PRODUCTION

Live beef refers to live animals for sale, either for fattening or for slaughter. On the
other hand, carcass beef refers to the part of the body of the slaughtered animals,
after removing the skin, head, viscera with their contents, blood and the distal part of
the limbs, it is Deputy General Directorate of Strategic Planning and Sectoral Analysis
Live Cattle August 2009 to say, it is the meat without being frozen. Carcass meat
represents approximately 50% of the weight of the live animal. The cattle raising
process ends with the fattening of the heifers or calves that are destined for the
market. Subsequently, the transformation process is carried out where the sacrifice is
carried out, obtaining the meat in carcasses.

> CHICKEN MEAT

Chicken meat is a white meat that has less fat between its muscle fibers. Your
muscles are made up of white fibers, called "fast clonic twitch fibers", whose energy
source is extracted from glycogen and not from fats. Therefore, these fibers have a
low neutral fat content and low capillary density (low myoglobin levels), causing their
raw color to be less red than that of other meats, and hence their name.14

14
http://maby.snarvaez.com.ar/salud/2012/09/24/propiedades-nutritivas-de-la-carne-de-pollo/
BENEFITS

It has a significant amount of proteins of high biological value (good quality) equal
to beef.
Vitamins: provides the B complex, which protects the nervous system, and
intervenes in the metabolism that provides energy to the body for its normal
functioning, etc. Minerals: it has iron, which is involved in the formation of red blood
cells and the transport of oxygen; phosphorus, which builds bones, and potassium,
which is essential for muscle contraction and heart function. It also provides zinc,
which improves the immune system, especially present in its darkest parts.
It is low in cholesterol , except if you eat it with the skin, which has a very high fat
and cholesterol content, just like its interior.15

PROPERTIES

Chicken meat has a large number of favorable nutritional properties. Chicken meat
has among its most important qualities for the consumer that it is an economical meat
and that its meat fibers are soft to the bite and easy to digest. Furthermore, its flavor
can be combined with very varied seasonings. Among its advantages are that it is a
type of meat that yields a lot and shrinks little during cooking.16

> PORK MEAT

Pork or pork is a meat product from the pig. It is one of the most consumed meats in
the world. Some religions consider it a forbidden food. For example, Judaism
considers it treifah and Islam, haram. It is also one of the most used, because almost
the entire body of the animal is used, as well as many of its by-products: ham,
chorizo, bacon, blood sausage, bacon, pâté, etc.17

BENEFITS

Excellent source of vitamin B1, it is the food of animal origin that stands out the most
15 https://es.wikipedia.org/wiki/Pork_Meat
16 http://www.zonadiet.com/comida/carne-cerdo.htm
17 https://es.m.wikipedia.org/wiki/teor%c3%Da_de_la_producci%B3n
for its high content of vitamin B1, with 100 grams we cover 64% of the recommended
daily dose of this vitamin. Pork provides twelve times more vitamin B1 than beef or
chicken.18

> FISH MEAT

It is a food with as much protein as meat, rich in vitamins and minerals, but some
varieties are also an important source of Omega 3, fatty acids beneficial for
cardiovascular health. Various studies support the advantages of its consumption. A
very recent one associates it with a lower risk of diabetes.

BENEFITS

The consumption of fish is part of a balanced diet and its intake should be 3-4
servings a week (1 serving = 125-150 g), since it is a very complete food that provides
us with proteins of high biological value, vitamin D and group B, iodine, potassium,
iron, calcium, among other nutrients. Another advantage corroborated by various
studies is the relationship between the consumption of oily fish (sardines, mackerel,
tuna, bonito, swordfish, salmon, herring, anchovies, horse mackerel...) and the
prevention of cardiovascular diseases. This type of fish is an important source of
Omega 3 fatty acids, which reduce LDL ('bad') cholesterol levels and slow the process
of fatty plaque accumulation in the arteries.

3.2. MARKET SEGMENTATION

Currently, beef is an essential product for society, it is for this reason that the market
segmentation for this product will be for the upper middle social class, for the middle
social class and for the lower middle social class. Taking into account at all times the
different demands that the client requires.

18 https://es.m.wikipedia.org/wiki/food_security
 FIGURE N° 1 MARKET SEGMENTATION

> Middle class segmentation

Production aimed at the middle-income population who can access this product.

> Lower middle class segmentation

Product intended for the low-income population but who can still access the product.
 PROJECT PREPARATION AND EVALUATION
TABLE N°2 OBJECTIVE OF THE BENEFITED POPULATION

Source: self made

3.3. SAMPLE DESIGN

The product will be consumed by the whole family. A survey will be carried out on people
located in the Urban area of the city of Santa Cruz, in order to know the market, the
preferences that consumers have and things that will be taken into account when
implementing the project.

> PILOT TEST

We carried out 35 surveys of women aged 18 years and older in the mutual market area,
the Ramada, the wells and the supply. The question we asked when carrying out the pilot
test was the following: According to the surveys indicated. That if they consume beef, why
they consume it, what type of meat they prefer and how often they consume the meat, in
which they indicated that 33 people do consume beef and the rest do not consume it,
leaving those already existing in the market. A 95% probability of success and a 5%
probability of failure are taken into consideration. We take these data into account for our
formula.

Page 18
 PROJECT PREPARATION AND EVALUATION
Formula

To determine the sample, the following formula will be used:

q *p * N * z 2
n =--------------------------------
(N—1) * e 2 + z 2 * p * q

Where:

Z = Degree of confidence

P = Probability of success

q = Probability of failure

e = Job error

n = It will be the sample size (surveys that will have to be carried out)

Size Determination.

Z95 = 1.96; P =0.90: q =0.10; e2 =0.05; N= 496,636

q *p * N * z 2
n =--------------------------------
( Nl ) * e 2 + z 2 *p * q

0, 05 * 0,95 * 496.636 * 1. 962 n—----

(
496.636 - 1) * 0,052 + 1,962 * 0,05 * 0,95

393181,7671
n— -------------------
5386,939976

N = 73 surveys

The sample size was determined through 73 surveys, having a finite population of 496,636

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 PROJECT PREPARATION AND EVALUATION
inhabitants, with a confidence level of 1.96, a probability of success of 95%, a probability
of failure of 0.05%, and a and a working error of 5%.

3.4. STUDY AREA

The cattle (meat) farm will produce in the Community of Puquio Cristo Rey - Municipality
of San Antonio de Lomerío to supply the urban area of the city of Santa Cruz.

FIGURE N° 2 PROJECT LOCATION

3.5. STUDY AREA EQUIPMENT

3.5.1. TRANSPORT SERVICES

The municipality of San Antonio de Lomerío has land transportation with a Departure
Point: it is from the Community of Montero passing through the Municipality of San
Antonio de Lomerío. Arrival Point: Bimodal Terminal Travel time: six hours (From the
Bimodal Terminal until reaching the community of Montero).

TABLE N° 3 TRANSPORTATION

Type of Transport Service Route

Bus Lines “January 20” Interprovincial Santa Cruz- San Antonio de Lomerío
“June 13” Bus Lines Interprovincial Santa Cruz -San Antonio de Lomerío

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 PROJECT PREPARATION AND EVALUATION
Bus Lines “31 del Este” Interprovincial Santa Cruz- San Antonio de Lomerío

Source: self made

3.5.2. HEALTH SERVICE

The Community of Puquio Cristo Rey - Municipality of San Antonio de Lomerío has a first-
class micro hospital with good care 24 hours a day with all services: hospitalization,
maternity, emergency service, pharmacy service (24 hours a day). ), they have trained and
specialized personnel. In addition to laboratory 12 hours a day.

3.5.3. SECURITY SERVICES

The community of Puquio Cristo Rey – Municipality of San Antonio de Lomerío does not
have the citizen security service, but in said Municipality there is a trained police module, it
is located 13 km from the community of Puquio Cristo Rey, central el tumba and A police
post in front of the main square El Torte.

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3.6. STUDY OF DEMAND IN THE CITY OF SANTA CRUZ

3.6.1. AMOUNT DEMANDED

TABLE N°4 FREQUENCY OF CONSUMPTION

HOW OFTEN DO YOU CONSUME BEEF?

Frequency Percentage
DAILY 47 64%
WEEKLY 17 23%
QUICKLY 4 5%
MONTHLY 1 1%
DO NOT CONSUME 4 5%
Total 73 100%

Source: self made

The table shows us that meat consumption is very frequent since there is a 64% acceptance
that the product is consumed daily followed by 23% who indicate that they consume it weekly.

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TABLE N°5 AMOUNT OF CONSUMPTION BY FAMILIES

WHAT AMOUNT OF KILOS DO YOU CONSUME IN YOUR

HOME?
Frequency Percentage
HALF A KILOGRAM 15 21%
A KILO 26 36%
ONE AND A HALF KILO 7 10%
TWO KILOGRAMS 10 14%
TWO AND A HALF KILOS 6 8%
THREE KILOS 4 5%
750 GRAMS 1 1%
DO NOT CONSUME 4 5%
Total 73 100%
Source: self made

FIGURE N° 4

WHAT AMOUNT OF KILOS DO YOU CONSUME IN

YOUR HOME.?

The most frequent consumption of people along with their family members is one kilo, which
has an acceptance of 36%, followed by 21%, which is the consumption of half a kilo, unlike
750g, which only has 1% acceptance.

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TABLE N° 6 PRODUCT PURCHASE (MEAT)

WHERE DO YOU GENERALLY BUY MEAT?

Frequency Percentage
NEIGHBORHOOD SHOPS 11 15%
MARKET 48 66%
SUPERMARKET 10 14%
DO NOT CONSUME 4 5%
Total 73 100%

Source: self made

FIGURE N° 5

WHERE YOU GENERALLY BUY

MEAT.?

DO NOT
CONSUME

SUPERMARKET

MARKET

NEIGHBORHOOD
SHOPS

People's preference when purchasing beef is in the market, which has a 76% frequency.

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TABLE N° 7 DAILY SUPPLY OF THE PRODUCT (MEAT)

DO YOU BELIEVE THAT DAILY MEAT PRODUCTION SUPPLYS THE POPULATION?

Frequency Percentage
YEAH 53 73%
NO 16 22%
DO NOT CONSUME 4 5%
Total 73 100%

Source: self made

The table shows that 73% of people think that daily production does supply the population of
Santa Cruz, while 22% affirm that it does not. With this statistic we are certain that our product
will be consumed daily, since it will supply the population.

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3.6.2. DEMANDED QUANTITY OF SUBSTITUTE GOODS

TABLE N° 8 SUBSTITUTE PRODUCT

WHAT OTHER SUBSTITUTE PRODUCT DO YOU CONSUME?

Frequency Percentage
CHICKEN 52 71%
PIG 8 11%
FISH 6 8%
OTHERS 3 4%
DO NOT CONSUME 4 5%
Total 73 100%

Source: self made

FIGURE N° 7

People have chicken meat as a substitute product, which has an acceptance level of 71%, the
next on the acceptance list is pork, which has 11%. Having the production of chicken meat as
its greatest competition.

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 PROJECT PREPARATION AND EVALUATION
TABLE N° 9 ACQUISITION OF SUBSTITUTE PRODUCT

WHERE DO YOU GENERALLY BUY THESE SUBSTITUTE PRODUCTS?

Frequency Percentage
NEIGHBORHOOD SHOPS 13 18%
MARKET 47 64%
SUPERMARKET 9 12%
DO NOT CONSUME 4 5%
Total 73 100%

Source: self made

FIGURE N° 8

WHERE YOU USUALLY BUY THESE

SUBSTITUTE PRODUCTS.?
■ NEIGHBORHOOD STORES ■ MARKET ■ SUPERMARKET □ DOES NOT CONSUME

In the table it can be seen that people make their purchases of their substitute products in the
market having an equality level of 68% followed by the supermarket which has a minimum
level of 18%.

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 PROJECT PREPARATION AND EVALUATION
TABLE N° 10 REASON FOR THE ACQUISITION OF THE PRODUCT

WHAT MOTIVATES YOU TO PURCHASE THE PRODUCT

SAID PLACE?

Frequency Percentage
PRICE 37 51%
QUALITY 4 5%
HYGIENE 8 11%
COMFORT 20 27%
DO NOT CONSUME 4 5%
Total 73 100%

Source: self made

The person feels a purchase motivation more for convenience and the prices of the product,
with 51% choosing the place for the price and 27% choosing it for the place.

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3.6.3. PRODUCT PRICES

TABLE N° 11 HISTORICAL PRODUCT PRICES

BEEF PRODUCTION
LINEAR PROJECTION POLYNOMIC PROJECTION

YEAR PROD. TOTAL (Bs.)

PRICE MEAT
PROD. PRICE
YEAR KL/HOOK TOTAL (Bs.) TN
TN MEAT KL/HOOK
(Bs.)
(Bs.)
2011 189.177 18,7 3.537.609,90 2011 189.177 18,7 3.537.609,90

2012 192.055 18,7 3.591.428,50 2012 192.055 18,7 3.591.428,50

2013 194.933 18,8 3.664.740,40 2013 194.933 18,8 3.664.740,40

2014 197.811 20,7 4.094.687,70 2014 197.811 20,7 4.094.687,70

2015 200.689 21 4.214.469,00 2015 200.689 21 4.214.469,00

PROJECTED PROJECTION

2016 203.567 21,56 4.388.904,52 2016 203.567 22,7588 4.632.940,64

2017 206.445 22,22 4.587.207,90 2017 206.445 24,6184 5.082.345,59

2018 209.323 22,88 4.789.310,24 2018 209.323 26,8208 5.614.210,32

2019 212.201 23,54 4.995.211,54 2019 212.201 29,366 6.231.494,57

2020 215.078 24,20 5.204.887,60 2020 215.079 32,254 6.937.158,07

Source: self made

The price of kilo hook beef is rising over the years, and it is estimated to continue rising
in the next 5 projected years, reaching 24.20 Bs; since this will give the opportunity to
have a surplus, from which everything can be covered in the Bolivian market and
subsequently the surplus of beef production will be exported.

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 PROJECT PREPARATION AND EVALUATION
TABLE N° 12 PRODUCT PRICE (MEAT)

DO YOU BELIEVE THAT THE PRICE PER KILO OF BEEF IS WELL ESTABLISHED FOR THE
CONSUMER?

Frequency Percentage
YEAH 26 36%
NO 43 59%
DO NOT CONSUME 4 5%
Total 73 100%

Source: self made

FIGURE N° 10

YOU BELIEVE THAT THE PRICE OF A KILO OF

BEEF IS WELL ESTABLISHED FOR
THE CONSUMER.?

■ YEAH
■ NO
■ DO NOT CONSUME

People indicate that the price of meat is not well established for consumers. The
frequency shows us that 59% of those surveyed share this opinion.

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PROJECT PREPARATION AND EVALUATION
TABLE N°13 TYPE OF ACCESSIBLE MEAT

WHAT TYPE OF MEAT IS MOST ACCESSIBLE FOR YOUR

ECONOMY?

Frequency Percentage
BEEF 16 22%
CHICKEN 52 71%
OTHERS 1 1%
DO NOT CONSUME 4 5%
Total 73 100%

Source: self made

FIGURE N° 11

71% of those surveyed consider that chicken meat is more affordable for their finances,
followed by beef with 22%.

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 PROJECT PREPARATION AND EVALUATION
TABLE N° 14 HISTORICAL MEAT PRICES

WHAT PRICE DID YOU PAY BEFORE FOR BEEF?

YEAR
AVERAGE PRICE
2012 23,36
2013 28,30
2014 32,78
2015 36,36

SOURCE: Own elaboration

FIGURE N° 12

WHAT PRICE DID YOU PAY BEFORE FOR BEEF?

/in AA
,
---------------!-------------- 36,36
35,00 — 32,78
30,00 — ___________________
- 28,30 ---------------!--------------
25,00 aww ---------------1-------------
23,36
20,00
--------------- —•i— PRICES
—
15,00
10,00

5,00
0,00 2 2 14
12 13 20 15
0 0
20

The table shows us the constant growth of beef prices from 2000 to 2000, this being a
gradual and constant increase. The prices shown in the graph are an average price which
was obtained from the collection of data based on from the survey carried out on people
who consume said product.

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3.6.4. PRICES OF SUBSTITUTE GOODS

TABLE N° 15 PRICES OF SUBSTITUTE GOODS

LINE PROJECTION POLYNOMIC PROJECTION

MEAT CHICKEN PRODUCT MEAT CHICKEN PRODUCT

YEAR PRICE YEAR PRICE
2011 6 2011 6,00
2012 6,5 2012 6,50
2013 7 2013 7,00
2014 8 2014 8,00
2015 8,5 2015 8,50
PROJECTED PROJECTED
2016 9 2016 9,40
2017 10
2017 10,30
2018 10
2018 11,27
2019 11
2019 12,31
2020 12
2020 13,43

PORK MEAT PRODUCT PORK MEAT PRODUCT

YEAR PRICE YEAR PRICE

2011 10 2011 10
2012 11,5 2012 11,5
2013 12,5 2013 12,5
2014 14 2014 14
2015 15 2015 15
PROJECTED PROJECTED
2016 16 2016 17
2017 18 2017 19
2018 19 2018 20
2019 20 2019 22
2020 21 2020 23
SOURCE: Own elaboration

The price of chicken and pork, looking at the historical prices, shows that it has a constant
growth from year to year, since thanks to this data it makes it easier for us to project the future
prices of said products.

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3.6.5. TASTES AND PREFERENCES

TABLE N°17 BEEF CONSUMPTION

DO YOU CONSUME MEAT?

Frequency Percentage
YEAH 69
95%
NO 4
5%
Total 73 100%

Source: self made

The table shows us that 95% of people do consume beef and 5% do not, which is a 95%
favorable probability of success for the possible implementation.

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 PROJECT PREPARATION AND EVALUATION
TABLE N°18 THE REASON FOR BEEF CONSUMPTION

WHY DO YOU CONSUME BEEF?

FrequencyPercentage
PRICE 8 11%
QUALITY 10 14%
HABIT 51 70%
DO NOT CONSUME 4 5%
Total 73 100%
Source: self made
FIGURE N°14

The answer to the question shows us that people consume meat more out of habit and not
because of the price or quality since 70% said they consume it out of habit.

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 PROJECT PREPARATION AND EVALUATION
TABLE N°118 TYPE OF MEAT

WHAT TYPE OF MEAT DO YOU PREFER?

DETAIL Frequency Percentage
CHICKEN 52 71%
PIG 6 8%
FISH 7 10%
OTHERS 4 5%
DO NOT 4 5%
CONSUME
Total 73 100%

Source: self made

FIGURE N°15

In the graphic representation we can see that people also prefer the consumption of chicken
as a substitute food, the parameter is 71% preference followed by 10% consumption of fish.

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 PROJECT PREPARATION AND EVALUATION
TABLE N°19 PREFERRED CUT TYPE

WHAT TYPE OF CUT OF BEEF DO YOU PREFER?

Frequency Percentage
LOMITO 47 64%
RIB 8 11%
CHEST 7 10%
GROUND MEAT 4 5%
OTHERS 3 4%
DO NOT CONSUME 4 5%
Total 73 100%

Source: self made

FIGURE N° 16

WHAT KIND OF CUT OF MEAT

DO YOU PREFER?

The cut that people prefer is the tenderloin cut, which has an acceptance parameter of 64%,
and although the preference of the other cuts is not widely accepted, they are distributed with
almost the same amount of preference.

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 PROJECT PREPARATION AND EVALUATION
3.6.6. CONSUMER INCOME

TABLE N° 20 PROFESSIONAL CATEGORY

WHAT IS YOUR PROFESSIONAL CATEGORY?

Frequency Percentage
EMPLOYEE 32
44%
WORKER 5
7%
BOSS 12
16%
HOUSEWIFE 20
27%
DO NOT CONSUME 4 5%
Total 73 100%
Source: self made

FIGURE N° 17

WHAT IS YOUR PROFESSIONAL CATEGORY?

44% of respondents responded that they have a profession as an employee and 27%
responded that they have a profession as a housewife.

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 PROJECT PREPARATION AND EVALUATION
TABLE N° 21 AVERAGE CONSUMER INCOME

WHAT IS YOUR AVERAGE ANNUAL INCOME?

Frequency Percentage
LESS THAN BS 1,500 16
22%
BS 1,501 -2,500 23
32%
BS 2,501-3,500 18
25%
MORE THAN BS 3,500 12
16%
DO NOT CONSUME 4 5%
Total 73 100%

Source: self made

FIGURE N° 18

The data collected by the surveys shows us that there is a minimum variation between each
salary, which differs by 5% or 6%, with the highest salary being those of 1501 – 2500 Bs with
32% and people who earn above 3500 Bs. They are 16%.

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 PROJECT PREPARATION AND EVALUATION
TABLE N° 22 INCOME ALLOCATED TO MEAT CONSUMPTION

HOW MUCH OF YOUR INCOME IS GOING TO THE CONSUMPTION OF

BEEF?

Frequency Percentage
MEROR BS 100 7 10%
BS 200 27 37%
BS 300 25 34%
BS 400 10 14%
DO NOT CONSUME 4 5%
Total 73 100%

Source: self made

FIGURE N°19

HOW MUCH OF YOUR INCOME IS GOING TO

BEEF CONSUMPTION?

The table shows us that people allocate between 300 and 200 bs for the consumption of beef,
with the highest frequency being 200 bs with 37%.

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 PROJECT PREPARATION AND EVALUATION
3.6.7. EXPECTATIONS

TABLE N°23 CONSUMER EXPECTATION

WHAT DO YOU WISH OR ASPIRE ABOUT THE BEHAVIOR OF THE BEEF FOR THIS YEAR?
Frequency Percentage
LOWER THE PRICE 25 34%
DOES NOT RESPONSE 21 29%
QUALITY 5 7%
HYGIENE 4 5%
LET THE PRICE BE REGULATED 4 5%
STABLE PRICES 9 12%
MORE POINTS OF SALE 1 1%
DO NOT CONSUME 4 5%
Total 73 100%
Source: self made
FIGURE N°20

WHAT YOU WANT OR ASPIR ABOUT HIM

BEHAVIOR OF THE MEAT FOR THIS
YEAR.?

The frequency and desire of people for beef is for the price to drop, the frequency of this
response is 3.

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 PROJECT PREPARATION AND EVALUATION
CROSSING OF VARIABLES

TABLE°24

HOW OFTEN DO YOU CONSUME BEEF?

DAILY WEEKLY QUICKLYMONTHLY Total

BECAUSE PRICE 5 1 1 1 8
CONSUME QUALITY 6 3 1 0 10
CUSTOM MEAT 36 13 2 0 51
BEEF?
Total 47 17 4 1 69

Source: self made

FIGURE N° 21
Bar graphic
HOW OFTEN DO
YOU CONSUME
BEEF?
■ DAILY ■ WEEKLY OR
FORTWEEKLY ■
MONTHLY

WHY DO YOU CONSUME BEEF?

The table shows us that the consumption of beef is constant, that is, daily, it is the one with
the greatest frequency. Together the two variables give us a daily consumption of people
and that they commonly do it out of habit, this being the preference of the majority. of the
participants.

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PROJECT PREPARATION AND EVALUATION

TABLE N°25
WHAT AMOUNT OF KILOS DO YOU CONSUME IN YOUR HOME?
HALF A ONE AND A TWO TWO AND A
KILOGRAM A KILO HALF KILO KILOGRAMS HALF KILOS TRE
HOW OFTEN DAILY 9 17 5 6 6
CONSUME MEAT WEEKLY 4 8 1 4 0
BEEF?
QUICKLY 2 0 1 0 0
Total 15 25 7 10 6
Source: self made

FIGURE N° 22
Bar graphic

WHAT AMOUNT
OF KILOS
CONSUME IN
YOUR HOME.?
■ HALF A KILO
□ ONE KILO
□ ONE KILO ¥ HALF
■ TWO KILOS
□ TWO AND A HALF KILOS
■ THREE KILOS
□ 750 GRAMS
 PROJECT PREPARATION AND EVALUATION
TABLE N°26
WHERE DO YOU GENERALLY BUY MEAT?

NEIGHBORHO SUPERMERC
OD SHOPS MARKET ADO Total
HOW MUCH OF YOUR MEROR BS 100 4 3 0 7
INCOME THIS BS 200 5 22 0 27
TARGETED TO BS 300 0 20 5 25
MEAT CONSUMPTION BS 400 2 3 5 10
BEEF?
Total 11 48 10 69
Source: self made
FIGURE N° 23

HOW MUCH OF YOUR INCOME IS GOING TO BEEF CONSUMPTION?

The table shows us the consumer's preference at the time of making the purchase, the location
of the purchase is determined according to the amount of money allocated for the purchase of
meat consumption, people prefer to purchase in the markets, this information helps us to
determine distribution channels and which locations will have more preference or will be
priorities for our organization

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 PROJECT PREPARATION AND EVALUATION
TABLE N° 27

WHAT AMOUNT OF KILOS DO YOU CONSUME IN YOUR HOME?

ONE KILO TWO Total
HALF A TWO THREE 750
AND KILOGRAMS
KILO KILO KILOS KILOS GRAMS
HALF AND A HALF
MEROR BS 100 3 2 1 0 0 0 0 6
BS 200 8 13 2 4 0 0 0 27
HOW MUCH OF YOUR
BS 300 3 7 3 3 5 4 0 25
INCOME IS GOING TO
BEEF CONSUMPTION? BS 400 1 3 1 3 1 0 1 10

Total 15 25 7 10 6 4 1 68

Source: self made

FIGURE N°24

WHAT AMOUNT
OF KILOS
CONSUME IN
YOUR HOME ?
■ HALF A KILO
□ ONE KILO
□ ONE KILO V HALF
■ TWO KILOS
□ TWO AND A HALF KILOS
■ THREE KILOS
□ 750 GRAMS

HOW MUCH OF YOUR INCOME IS GOING TO BEEF CONSUMPTION?

With this crossing of variables, it can be identified if meat consumption is directly related to the
amount allocated for beef consumption, and as can be seen, income levels are not the reason
for the consumption of different quantities. , it is more due to consumption out of habit and
preference than income levels.

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PROJECT PREPARATION AND EVALUATION
TABLE N°28
WHAT IS YOUR AVERAGE ANNUAL INCOME?
LESS THAN BS BS 1501 - BS 2.501 MORE OF BS
1.500 2.500 3.500 3.500 Total
WHAT IS YOUR CATEGORY EMPLOYEE 5 13 11 3 32
PROFESSIONAL? WORKER 0 1 3 1 5
BOSS 1 1 2 8 12
HOUSEWIFE 10 8 2 0 20
Total 16 23 18 12 69
Source: self made
FIGURE N° 25
Bar graphic

WHAT IS YOUR PROFESSIONAL CATEGORY?

With this information, it can be determined which of the positions identified in the survey has
the highest frequency and also their distribution of the income they receive, as can be seen
the most frequent position is that of employee and it also has a higher frequency in the
income that is between 1,501bs - 2500bs.

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 PROJECT PREPARATION AND EVALUATION
3.7. STUDY OF THE OFFER

3.7.1. PRODUCTION QUANTITY

> ANALYSIS OF QUANTITIES DEMANDED: these data show the amount of meat
demanded and the number of cattle slaughtered.
TABLE N°29 QUANTITY DEMANDED

AMOUNT OF CATTLE OFFERED

Years Amount

2010 133.246

2011 148.888

2012 153.940

2013 190.000

2014 198.000

2015 295.000

Source: self made

TABLE N° 30
QUANTITY OF CATTLE DEMANDED

Years Amount

2010 144.000

2011 150.000

2012 162.000

2013 200.000

2014 225.000

2015 310.000

Source: self made

Despite the annual deficits in beef production observed in recent years. In this sense, given a
lower supply of fresh meat starting in 2003, there will be a gradual increase in the price of
hooked beef. The competition that it already has and will have in the future, the production of
beef will not then come from the beef imports that may be made, given the relative price
differences that exist with other countries; but rather the substitutes that the population finds in

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 PROJECT PREPARATION AND EVALUATION
other types of meat produced in the country.

> ANALYSIS OF HISTORICAL PRICES: These prices were obtained through

Fegasacruz and the national statistics institute (INE) about meat prices for the last 5
years.

TABLE N° 31 FEGASACRUZ DATA

Santa Cruz: Historical trend of the average monthly price of the kilo of beef. Bs/Kg hook to the
producer
YEA FE ANUAL
JAN SEA APR MAY JUN JUL AUG SEP OCTNOV DEC
R B AVERAGE
2008 15.2 15.2 15.4 15.2 14.5 14.6 14.7 16.1 16.2 16.416.3 16.1 15.5
2009 16.1 15.9 15.8 15.7 15.3 15.0 15.1 15.4 15.6 15.816.0 16.0 15.6

2010 16.4 16.3 16.1 16.0 15.8 15.8 16.0 16.6 16.7 17.619.3 19.3 16.8

2011 19.6 19.2 19.1 18.6 18.8 18.2 17.9 18.3 18.3 18.518.9 18.7 18.7
2012 18.6 18.7 18.7 18.7 18.9 18.9 18.8 18.7 18.5 18.718.6 18.6 18.7
2013 18.9 18.8 18.7 19.0 18.7 18.9 18.9 18.9 18.7 18.718.9 18.9 18.8
2014 19.0 19.3 19.5 20.4 21.1 22.0 21.7 21.2 21.2 21.021.0 21.5 20.7
AVERAGE 2008-2014 17.8
Source: Fegasacruz based on CAO data. 2014.

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 PROJECT PREPARATION AND EVALUATION
> ANALYSIS OF EXPECTATIONS: To project our offer,
We have taken the linear method procedure.
TABLE N°32
SUPPLY PROJECTION

2
PERIOD YEAR OFFER X*Y x

1 2011 148.888,00 148.888,00 1,00

2 2012 153.940,00 307.880,00 4,00
3 2013 190.000,00 570.000,00 9,00
4 2014 198.000,00 792.000,00 16,00
5 2015 295.000,00 1.475.000,00 25,00
15 985.828,00 3.293.768,00 55,00
Source: self made

(A+B*X)

5 264.422,40
6 298.050,80
7 331.679,20
8 365.307,60
9 398.936,00
OFFER

264.422,40
298.050,80
331.679,20
365.307,60
398.936,00

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 PROJECT PREPARATION AND EVALUATION
> DEMAND ANALYSIS

TABLE N° 33

DEMAND PROJECTION

PROJECTION OF DEMAND QUANTITY OF CATTLES

2
PERIOD YEAR DEMAND X*Y x

1 2011 150.000,00 150.000,00 1,00

2 2012 162.000,00 324.000,00 4,00
3 2013 200.000,00 600.000,00 9,00
4 2014 225.000,00 900.000,00 16,00
5 2015 310.000,00 1.550.000,00 25,00
15 1.047.000,00 3.524.000,00 55,00
Source: self made

(A+B*X)

5 286.000,00
6 324.300,00
7 362.600,00
8 400.900,00
9 439.200,00
DEMAND

286.000,00
324.300,00
362.600,00
400.900,00
439.200,00

UNSATISFIED DEMAND

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PROJECT PREPARATION AND EVALUATION
TABLE N° 34 UNSATISFIED DEMAND

UNSATISFIED
OFFER DEMAND
DEMAND

-21.577,60
264.422,40 286.000,00
-26.249,20
298.050,80 324.300,00
-30.920,80
331.679,20 362.600,00
-35.592,40
365.307,60 400.900,00
-40.264,00
398.936,00 439.200,00

Source: self made

3.7.2. EXPECTATIONS

Regarding beef, the surpluses are growing every year, and for the next few years we will have
a surplus of 17,000 tons; And to this - with the execution of the Livestock Enhancement
Project in Chiquitania - in the first years, 3,000 tons of meat would be added. If we refer to
genetics, it is already in the crosshairs of exports: we are in a position to provide semen,
reproducers and embryos to producers in other countries that request it. Regarding data on
milk and its derivatives in Bolivia, in 2014 - expressed in liters per day - around 1,700,000
were available, with a consumption of 1,500,000; around 200,000 were exported. From what
can be seen, Bolivia has a practically unlimited milk production potential due to its agricultural
vocation.

Sector plans to certify organic meat for next year and thus give a plus to the export
meat product

The ranchers of Santa Cruz plan to promote the certification of organic meat by 2016, having
a potential of 3.2 million animals out of a total of 3.6 million that make up the livestock herd,
whose diet is practically based on pasture, a situation that It can give a plus to the export
meat product.

Javier Landívar, manager of the Santa Cruz Livestock Federation, reported that next year
they will implement the organic meat certification project, seeking to give a plus to export
meat, since it would have a differentiated price due to its tenderness, fat coverage external,

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PROJECT PREPARATION AND EVALUATION
higher concentration of omegas, nutrients, vitamins and low cholesterol compared to other
meat products that come from livestock under confinement.

Of the 3.6 million animals in the Santa Cruz livestock herd, 90% have the potential to be
certified, since the diet of these livestock is basically natural grass," said Landívar, highlighting
that Beni can also adhere to this project with its 2.6 million animals.

How will you consolidate this project?

The Fegasacruz executive clarified that Bolivia does not have companies that certify this type
of products, since, first there must be a regulation issued by the Ministry of Environment and
Water, which specifies the requirements that the interested certifiers must meet, and
subsequently carry out evaluations of the animals in the field and in the refrigerator, issuing a
document that supports the origin of the meat.

Potential markets

Landívar emphasized that there are market niches identified in Latin America, Africa and Asia
that demand this type of meat product, produced ecologically and with restrictions on some
pharmaceutical supplements that are used in the production of meat under a confinement
system.

3.7.3. TECHNOLOGY

In livestock farming systems, change leads to a need for adjustments in production

processes, due to technological innovation, which combines different capacities: technical,
administrative, financial and commercial, among others; to adopt or develop knowledge for
the benefit of society. These changes are made so that the innovation is successful and the
positive technological impact on the ecosystem is ensured.

Technological innovation must be addressed in five dimensions:

V Technique : Due to the volume, quality and annual distribution of production

V Economic : Due to its relationship with the market and the profit margin, with respect to
investments and costs.
V Environmental: For the sustainable use of natural resources

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V Social : For the generation of jobs and other community impacts.
V Human : For the perspectives in the interest of personal development, of those who
directly operate the production unit.

> COMMERCIAL STRATEGY

Within the commercial strategies, Michael Porter's 5 forces are presented:

V Bargaining power of buyers or clients: For the
cattle fattening market, the large number of clients that exist in the market
means that the client has a fundamental part, although the market has a large
number of consumers, the prices are in balance in such a way that the power of
the client plays a important part for the negotiation between company and
clients.

V Bargaining power of suppliers: in the supply market

livestock there is a wide variety of suppliers, making this a disadvantage for
them and an advantage for companies since purchasing factors from suppliers
can be analyzed: quality, price, etc. So you have more options when choosing a
provider.

V Threat of entry of substitute products: although the market is

present a great variability of products, over time substitute products are
becoming more and more constant in this market which with the passing of the
years is becoming larger, there is an opportunity and emergence of substitute
products that for companies is a constant threat.

V Threat of entry of new competitors: since this

market is a consumer potential, competition is becoming increasingly noticeable
with the entry of new competitors, although the livestock market is a great
opportunity, the positioning of some farms hinders the progress of new
competitors since their livestock brands bovine are positioned and have
advertising management that hinders the progress of new competitors.
V Rivalry between competitors: in the cattle market in the

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cattle fattening market, there is constant competition with products with similar
functions that causes companies and/or farms to constantly innovate among
themselves and the market is constantly fighting to improve the cattle fattening
process and better quality with respect to better prices of the head of cattle.

3.8. ANALYSIS OF RAW MATERIALS

3.8.1. PRODUCTION

> SANTA ANA : It is a farm that, through technical assistance, the program strengthens the
competitiveness of Micro, Small and Medium Enterprises (MSMEs) and turns them into
suppliers of large companies. It articulates productive chains formed by a client or driving
company and a group of between 4 and 10 supplier MSMEs. “It integrates and includes
companies that have traditionally been excluded or have difficulties entering formal markets.” It
has 2,000 heads of cattle, which are used to fatten cattle and produce cow's milk.

> CUBANITA: It is dedicated to the breeding and fattening of cows such as the red Angus breed,
the Brahmin breed and the Charolais breed. It has 3000 head of cattle both for fattening cattle
for meat production and cow's milk production. It has around 8 pens which are separated, 5 for
fattening cattle and 3 for milk production.

> CAMIRI: It is dedicated to the breeding and fattening of cows such as the red Angus breed, the
Charolais breed, this farm focuses exclusively on the fattening of cattle. It has fodder and
sorghum warehouses, which is the food given to cattle for fattening.

> EL SIDRAL: It is dedicated to the breeding and fattening of cows such as the red Angus breed,
the Brahmin breed and the Hereford breed .

> SEÑOR SRL: It is dedicated to the breeding and fattening of cows such as the red Angus
breed, Hereford breed and Charolais breed.

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3.8.2. PRICES

TABLE N°35 PRICE OF RAW MATERIALS

HEADS OF CATTLE FOR PRODUCTION

BASE PRICE
CATEGORY RACE Bs.
Steer Half Blood 1.800
Torillo Creole 2.400
Torillo Creole 4.250
Torillo Creole 3.300
Torillo Creole 2.500
Torillo Creole 3.100
Torillo Creole 3.500
Bull Creole 7.000
Bull Creole 4.000
Bull Creole 3.400
Bull Creole 6.050
Bull Creole 8.200
Bull Creole 8.000
Bull Creole 10.500
Cow Half Blood 2.100
Cow Half Blood 3.350
Cow Creole 7.600
Cow Creole 5.900
Cow Creole 6.000
Cow Creole 5.200
Cow Creole 4.600
Heifer Creole 3.250
Heifer Creole 3.900
Heifer Creole 4.100
Heifer Creole 3.300
Heifer Creole 4.900
Heifer Creole 3.200
SOURCE: Fegasacruz based on data from the Boyuibe Cattlemen's Association, Cordillera
Province. May 2015. Note: Approximate age: Steer and Bull: 1 to 2 years. Heifers: 1 to 2
years old. Bull and cow: over 3 years old.

3.8.3. FORM OF MARKETING

Within the market for the sale of cattle, there is a market of perfect competition since there is a
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large amount of demand with a large number of suppliers, and no one tends to have control of
the market and influence on prices since this occurs in a balance between supply and
demand.

3.9. DISTRIBUTION CHANNELS

LIVESTOCKS,
FATTENERS

MARKETING COMPANIES
OF LIVESTOCK AND
CARNNE

SLAUGHTERHOUSES OR
REFRIGERATORS

The rancher delivers the beef for slaughter or slaughter to the livestock and meat marketers,
and then they deliver to the slaughterhouses or meat processing plants.

THE 4'PS OF COMPETITION MARKETING:

> Product: Cattle fattenings are designed by people

specialists in the cattle fattening process since they seek to draw attention to them, the
weight of the cattle is important, the slogans with which they become known are very
relevant to consumers and with quality that are attractive to customers, all These
details are part of a great strategy by the producers to gain a foothold in the minds of

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consumers and/or the client.
> Price: The price is very important to make a decision at the time
to buy the head of cattle and much more when it comes to the production of meat, the
heads of cattle such as the haciendas of SANTA ANA, CUBANITA, EL SIDRAL and
CAMIRI the head of cattle have prices ranging from 500 dollars up to 1200 dollars
depending on the weight of the cattle.
> Plaza: All of the aforementioned haciendas can be found at
different municipalities of Santa Cruz such as San Javier, San José de Chiquitos and
San Ignacio de Velasco for which there is a great demand.
> Promotion: Advertising of the head of beef cattle is
constant and diverse at times according to the seasons of the year or the dates of best
marketing.
> Average income by social strata: If we settle at our
There is a diverse economy in the country and the population is diverse, to which
products of all kinds of quality and price can be offered as long as they are offered
what is requested by demand.

CHAPTER IV

LOCATION AND SIZE OF THE PROJECT

4.1. INTRODUCTION

The study of this chapter is important because it reflects the location of the Bovine Livestock
and because we will also show the costs, the size of the market, the production and its
financing.

In the study of the location of the project, whatever method is used to determine the optimal
location of the exploitation, the formulation of the analysis must be carried out at two levels: a
first level called Macrolocation and a second level called Microlocation.

4.2. MACROLOCATION

“They constitute pertinent variables identified as specific, which in their quantitative

assessment or subjective assessment qualification, in the face of alternatives of broad and

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alternative territorial spaces, allow the choice of a specific geographical space for the location
of the company, considering this in a ranking as the best."

Project localization is the analysis of the location of the project in the global geographic
context. The cultural aspects of Santa Cruz have made beef as something typical of the
eating habits of Santa Cruz residents, which is why the large meat market in the city is no
exception. Through this project the population of Santa Cruz will be able to satisfy their
demand for consuming quality, low-cost meat. Figure No. 26

4.2.1. MACRO STUDY FACTORS DEFINED GEOGRAPHICAL AREA

The macro location indicates the geographic region where the project will be located.

The macro location of the project is defined in the city of Santa Cruz, since the market study
was carried out in this department. The following positive factors of the department are also
taken into account.

Territorial limits

It borders to the north with the department of Beni and the Republic of Brazil; to the south with
the department of Chuquisaca and the Republic of Paraguay; to the east with the Republic of
Brazil and to the west with the departments of Beni, Cochabamba and Chuquisaca.

Political division.

Santa Cruz de la Sierra, capital city of the department and 3 cantons: El Palmar del Oratorio,
Paurito, Montero Hoyos.

Geographic location.

It is located in the western central region of the department at 17º47' Latitude and 63º11'
Longitude, at an altitude of 400 meters above sea level. It is the heart of the province.
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Access roads.

Land, air and rail.

Climate.

The local climate can be described as warm with relative humidity, reaching average
temperatures of 30º C and 16º C in winter.

Extension:

It has an area of 370,621 km2.

Population:

1,967,943 inhabitants (INE data 2012)

Language:

Spanish, Guaraní and several languages.

Infrastructure

The Dept. de Santa Cruz has developed Social Infrastructure Projects that aim to contribute to
meeting the basic needs of the rural population in poverty, in the following lines of
intervention: educational centers, health posts, drinking water, electrification and
transportation networks.

Transport

The public transportation system has the service of minibuses or buses that travel through
the city through 122 route lines. The service is privatized and under the administration of the
Bus and Bus Union in Santa Cruz. Poor route administration and planning is what harms the
city's traffic flow the most. And in the same way it has air and rail land transportation.

Agriculture and agribusiness

Santa Cruz produces cotton, peanuts, soybeans, sunflowers, coffee, cocoa, vanilla, urucú
(achiote), tobacco, sugar cane, potatoes, tomatoes, chili, citrus, tropical fruits, kennaff and
jute, rice, wheat, corn, etc. . Sugar, molasses and alcohols are produced based on sweet

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cane.

Cattle raising

One of the fields of investment in Bolivia in recent years is that aimed at increasing the
quality and number of livestock; Zebu, Holstein and Santa Gertrud stallions have also been
introduced to the country. The woods from Santa Cruz forests are of high quality, and are
destined to satisfy national and international demand. Industrially, plywood, pressed wood,
tongue and groove, parquet, etc. are produced in Santa Cruz. Furniture of the highest quality
and finish is produced.

Iron and manganese deposit. There are important deposits of limestone that have made
possible the installation of a cement factory in Warnes.

GEOGRAPHICAL BOUNDARIES (POLITICAL ADMINISTRATIVE DIVISION

Within the department of Santa Cruz de la Sierra is the province of Ñuflo de Chávez, in which
the Municipality of San Antonio de Lomerío, the Municipality of San Javier and the
Municipality of San Ramón are located.

MUNICIPALITY OF SAN ANTONIO DE LOMERÍO

San Antonio de Lomerío is an indigenous town originating from the newly formed Monkox
Chiquitania ethnic group. Its origin is based mainly on the first settlements of groups of people
from Concepción and San Xavier at different times and circumstances.

By ordinance of the Municipal Government of Concepción on June 13, 1993, it was declared
“Indigenous Music and Folklore Capital”

Figure No. 27

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Name's origin

It is named after its Patron Saint San Antonio y Lomerío due to the particularity of its
topography.

Geographic location

San Antonio is located in the department of Santa Cruz in the Ñuflo de Chávez province
northeast of the city of Santa Cruz.

Territorial limits

The limits of San Antonio de Lomerío are the following:

To the north with the Municipality of Concepción, to the south with the Zapoco Sur River and
with the San Julián River, to the east with the Velasco province and to the west with the San
Ramón municipality.

Political division
A single canton, San Antonio de Lomerío.

Geographic location
San Antonio is located in the department of Santa Cruz in the Ñuflo de Chávez province
northeast of the city of Santa Cruz.

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Access roads
It is located 97 km from Concepción, with access from the city of Santa Cruz de la Sierra via
alternative routes from San Ramón, 100 km away; from Cuatro Cañadas 130 km and from
San Miguel de Velasco 70 km.
Distance
It is located 400 km from Santa Cruz de la Sierra.
Climate
San Antonio de Lomerío has a pleasant climate with little change, with an average annual
temperature that ranges between 28 to 30ºC.
Population:
6.481 inhabitants (INE 2012)

SAN JAVIER MUNICIPALITY

Highly livestock and tourist area. Livestock farming occupies first place as an economic
activity in the municipality; it is carried out extensively and semi-extensively. Based on this,
products such as cheese are made, whose factory is widely accepted in the national market,
as well as milk, baked goods and sweets.

Figure No. 28

Name's origin

It is named in honor of Saint Francis Xavier (1506-1552), Jesuit missionary priest in the Far
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East, whose feast day is remembered on December 3.

Land

Suitable for cattle, there are various projects to improve the quality, health and feeding of the
animals. It is also worth informing that San Javier and Concepción, two municipal sections of
the Ñuflo de Chávez province, have a livestock herd of 173,845 and 100,463 cattle,
respectively, not to mention that on the intermediate route there is a herd of buffaloes that is
the plus of the activity. tourism in the area. Finally, another business that generates a lot of
money in that province is craftsmanship in the area, which is thriving. The residents are
dedicated to making hammocks, thread weaving, corn husk work, jatata work, such as hats,
bags, baskets and others. These products are sold in different urban markets and at municipal
fairs, although the income they generate is not significant.

The Agriculture

Corn, wheat, cassava and banana are especially grown. The cultivation of corn and other
products is supported through credit, training in crop management and the organization of
peasant markets.

Political division

Two cantons: San Xavier and Santa Rosa de la Mina.

Access roads

On paved road.

Distance

It is located 230 km from the city of Santa Cruz de la Sierra, on a hill in the Serranía de San
Pablo .

Climate: Its climate is warm and has an average annual temperature of 23ºC

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Population: 12,316 inhabitants (INE 2012)

SAN RAMON MUNICIPALITY

Third Municipal Section of the Ñuflo de Chávez province.

San Ramón is located, a region developed only in recent decades between Santa Cruz and
the border with Brazil.

At the main entrance to the town of San Ramón, in the background you can see the
monument to the three Santa Cruz presidents: Germán Busch Becerra, Hugo Banzer Suárez
and José Miguel de Velasco Franco.
The economy is traditional non-intensive livestock, agricultural, and mining activity, to which
are added the geological characteristics and unfavorable weather conditions of the Chiquitina
region in Santa Cruz. An investigation carried out in this municipality finds that the quality of
the main water source, which is the San Julián River, is acceptable, but "...does not mean that
it is suitable for human consumption.

SAN RAMON MUNICIPALITY

Figure No. 29

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Name's origin

In honor of Holy “Saint Ramon Nonato” Religious, Cardinal. Pattern of the

parturients. Ramon means: "protected by the divinity" (Ra=divinity.
Mon=protected), his Festival is August 31.

Political division

Only one canton, San Ramón.

Geographic location

It is located in the Bolivian plains in the Chiquitina region, on the banks of the San Rafael
River and is limited to the north by the Santiago mountain range.

Access roads

By paved road towards the northeast of the capital city. You pass through: Puerto Pailas -
Cuatro Cañadas - San Julián.

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Distance

The San Ramón municipality is located 175 km away. from the city of Santa Cruz de la
Sierra. The estimated time from the capital is 4 hours.

Climate

Semi humid, warm subtropical. The average monthly temperatures vary during the year only
slightly between 19-20 ° C in the winter months of May to August with strong cold and 22-25 °
C during the other months.

Population

5,660 inhabitants (INE 2001)

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4.2.3. POINT LOCATION MATRIX

Table Nº 36 POINT LOCATION MATRIX

MUNICIPALITIES
SAN ANTONIO DE
FACTORS WEIGHING SAN JAVIER SAN RAMON
LOMERIO
Qualification % Qualification % Qualification %
Land 0,3 95 28,5 95 28,50 80 24,00
Distance 0,1 60 6 70 7,00 75 7,50
Labour 0,1 80 8 80 8,00 60 6,00

Transport 0,084 30 2,52 28 2,35 20 1,68

Electricity 0,09 50 4,5 40 3,60 35 3,15
Water 0,1 75 7,5 45 4,50 50 5,00
Communication 0,03 60 1,8 55 1,65 60 1,80

Commerce Centers 0,09 70 6,3 65 5,85 55 4,95

Obligations 0,009 40 0,36 45 0,41 55 0,50
Benefits 0,007 55 0,385 20 0,14 30 0,21
Security 0,09 35 3,15 40 3,60 40 3,60
TOTALS 1 69,015 65,60 58,39

Source: self made.

Given the variables and aspects in this matrix, the Municipality of San Antonio de Lomerío can
be taken as the best option, obtaining a higher percentage of 69.02% unlike the other
Municipalities.
4.3. MICROLOCATION

4.3.1. INTRODUCTION

They constitute pertinent variables identified as specific, which in their quantitative

assessment or subjective assessment rating, when faced with alternatives of specific and
alternative territorial points, allow the choice of a specific geographical location of the

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company, considering this in a ranking as the best of all possible.

The main microlocational forces refer to variables of an economic nature or the supply of raw
materials and secondary inputs, such as land, public services, labor, etc.

Figure No. 30

4.3.2. STUDY FACTORS

4.3.1 DEFINITION OF GEOGRAPHICAL AREAS (AT LEAST THREE AREAS)

Municipality of San Antonio de Lomerío:

San Antonio de Lomerío is an indigenous town originating from the newly formed Monkox
Chiquitania ethnic group. Its origin is based mainly on the first settlements of groups of people
from Concepción and San Xavier at different times and circumstances.

By ordinance of the Municipal Government of Concepción on June 13, 1993, it was declared
“Indigenous Music and Folklore Capital”

Figure No. 31

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Name's origin

It is named after its Patron Saint San Antonio y Lomerío due to the particularity of its
topography.

Geographic location

San Antonio is located in the department of Santa Cruz in the Ñuflo de Chávez province
northeast of the city of Santa Cruz.

Territorial limits

The limits of San Antonio de Lomerío are the following:

To the north with the Municipality of Concepción, to the south with the Zapoco Sur River and
with the San Julián River, to the east with the Velasco province and to the west with the San
Ramón municipality.

Political division
A single canton, San Antonio de Lomerío.

Geographic location
San Antonio is located in the department of Santa Cruz in the Ñuflo de Chávez province

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northeast of the city of Santa Cruz.
Access roads
It is located 97 km from Concepción, with access from the city of Santa Cruz de la Sierra via
alternative routes from San Ramón, 100 km away; from Cuatro Cañadas 130 km and from
San Miguel de Velasco 70 km.
Distance
It is located 400 km from Santa Cruz de la Sierra.
Climate
San Antonio de Lomerío has a pleasant climate with little change, with an average annual
temperature that ranges between 28 to 30ºC.
Population:
6,481 inhabitants (INE 2012)

DETERMINE THE PROJECT LOCATION FACTORS

In the department of Santa Cruz de la Sierra is the Municipality of San Antonio de Lomerío in
which the three most relevant areas for the location of the project were determined, such as;
the Puquio Cristo Rey Community, Montero Community and the San Pablo Community. In
which the general data that must be considered for the breeding and fattening of cattle were
analyzed.

Land.- Grazing lands include pastures, open forest (and in some places cleared areas of
closed forests), they are extensive and suitable for raising and rearing livestock.

Distance.- Refers to the distance from where the possible location of the project is located,
since it is very important because it greatly influences the cost of transporting raw materials
and transporting livestock for sale (slaughterhouse), since Greater distance represents
greater cost.

Accessibility. -Refers to the ease of accessing the area, the conditions of the roads for the
transportation of raw materials and the conditions to have the necessary basic services.

Population.- These are the people who will purchase said product. It is much better to have a
location in a place where there is a greater population because in this way you can have a

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greater number of potential customers.

Purchase points.- Know the possible places from which the raw material (calves) and inputs
(food necessary for raising cattle) will be compared.

Electricity.- It is an important factor since it will help the operation of the cattle equipment.

Water.- It is the availability of water for the consumption of the Cattle as well as for the
personnel that the project will have.

Communication.- Refers to accessibility to the media since these facilitate greater

effectiveness in the operation of the Livestock Farm.

4.3.3. POINT LOCATION MATRIX

Table Nº 37 POINT LOCATION MATRIX

WEIGHTING
FACTORS MUNICIPALITY OF SAN ANTONIO DE LOMERIO
COM. PUQUIO CRISTO R COM. HUNTSMAN COM. SAINT PAUL
Qualification % Qualification % alification %
Land 0,35 95 33,25 95 33,25 80 28
Climate 0,03 90 2,7 90 2,7 85 2,55
Distance 0,1 60 6 70 7 75 7,5
Hand of Ob 0,1 80 8 80 8 60 6
Transport 0,084 30 2,52 28 2,352 20 1,68
Electricity 0,07 50 3,5 40 2,8 35 2,45
Water 0,1 75 7,5 45 4,5 50 5
Communicatio 0,06 60 3,6 55 3,3 60 3,6
n
Obligations 0,009 40 0,36 45 0,405 55 0,495
Benefits 0,007 55 0,385 20 0,14 30 0,21
Security 0,09 35 3,15 40 3,6 40 3,6
TOTALS 1 70,965 68,047 61,085

Source: self made

Given the variables and aspects in this matrix, the Puquio Cristo Rey Community can be
taken as the best option, obtaining a higher percentage of 70.96% than the other
Communities.

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4.4. OPTIMAL SIZE SIZING

4.4.1. INTRODUCTION

In practice, determining the size of a new production unit is a task limited by the reciprocal
relationships that exist between size and demand. The importance of defining the size that the
project will have manifests its impact on the level of investments and costs. that are
calculated, therefore on the estimation and profitability that its implementation could generate.

By defining the size this will determine the level of operation that will then be highlighted in the
income estimate.

The components to define the size of the project are given by:

> Size and Market

> Size and Cost

> Size and Financing

> Size and Technology

> Size and Raw Material

4.4.2. STUDY FACTORS

a) TA MAN AND MARKET

The size of the market is a very important point, because the company and/or farm is located
in a place where a good number of inhabitants are concentrated in the area, in addition to
having easy transportation access, suitable land and climate. for livestock for the creation of a
fattening center and there is a variety of public transportation so that we can say a place
where it is easy to get the product to the customer.

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Table Nº 38 MARKET STUDY

DEMAND
DISSATISFIED
YEARS DEMAND OFFER
2011 150.000 148.888,00

2012 162.000 153.940,00

2013 200.000 190.000,00
2014 225.000 198.000,00
2015 310.000 295.000,00
PROJECTION

2016 286.000,00 264.422,40 -21.577,60

2017 324.300,00 298.050,80 -26.249,20
2018 362.600,00 331.679,20 -30.920,80
2019 400.900,00 365.307,60 -35.592,40
2020 439.200,00 398.936,00 -40.264,00
-154.604,00

(Expressed in
Thousands)
Source: self made

The average is 30,921 head of cattle production, which represents 100% of the unsatisfied
demand. Taking into account the number of hectares that the farm has for production, it is
decided to cover 3% of the unsatisfied demand.

b) SIZE AND COST

To determine the cost, for the first year of the project's implementation, a cost of 1,961,646.34
bs is planned. This cost will increase according to the production program.

-30920,8

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Table Nº 39 TANA AND COST
ITEM ACCOUNT TOTAL
FIXED INVESTMENT
Land 975.000,00
Civil constructions 185.812,00
Computing team 5.500,00
Cleaning machinery 3.000,00
Furniture and fixtures 3.900,00
Facilities 3.000,00
Vehicles 667.000,00
Feeders, Bretes 19.700,00
UNFORESEEN (5.3%) 98.734,34
TOTAL 1.961.646,34
Source: self made

c) SIZE AND FINANCING

To make the loan request, a search was carried out for financial institutions that can finance
us the amount of Bs, for which 1,664,500.-bs. The following institutions were found:

Table No. 40
ACCOUNTS WORTH %
OWN CONTRIBUTION 1.355.381,12 45%
FINANCED 1.664.500,00 55%
CONTRIBUTION
TOTAL 3.019.881,12 100%

Source: self made

d) SIZE AND TECHNOLOGY
The technical characteristics and capacity of the equipment determine the size of the plant,
which must be compatible with the production volume calculated in the market study. The
existing technology in the local construction and assembly market is good and very reliable,
so there are no problems in the construction of the equipment. The technology intended to be
used is semi-automatic, since due to the size of the project it would be a mistake to acquire
cutting-edge technology; In addition, only one type of machinery is sufficient for the production
process.

e) SIZE AND RAW MATERIAL

The project will have as raw material the main cattle of the Nelore breed, due to its size and

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great capacity to produce meat. It will have three cycles per year, in which each cycle 120
heads of cattle will be obtained as raw material for fattening.

4.4.3. PRODUCTION PROGRAM

The production program will be given with respect to the percentage of unsatisfied demand
that the Livestock Farm will cover.

Table Nº 41 PRODUCTION PROGRAM

PRODUCTION PROGRAM
PRODUCTS 2016 2017 2018 2019 2020
Cattle Head (Prod. meat) 1 1,33 1,76 2,36 3,14
TOTAL 1 1,33 1,76 2,36 3,14

Source: self made

3% of unsatisfied demand will be covered.

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TABLE N°42
ANNUAL PRODUCTION CAPACITY
DETAIL YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Head of cattle 590 656 790 810 900
TOTAL 590 656 790 810 900

Source: self made.

In the production program of this project, it is planned to start with the breeding of 590 heads
of cattle in the first year, and having a production cycle of 197 heads of cattle, which will
increase by 10% each year, taking into account the population growth rate of Santa Cruz so
that in 2020 there will be a total production of 900 heads of cattle, approximately 480kg per
head of cattle.

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CHAPTER V

PROJECT ENGINEERING

5.1. INTRODUCTION

This chapter studies the technical viability of the company and/or farm, which includes the
entire process analysis of the cattle fattening process, the conversion relationships between
input and product and determines all the requirements that involve the process. fattening. For
the preparation of the chapter, it was necessary to extract information from the previous
chapters, since according to the data, the appropriate technology was determined, in order to
optimally use the available resources, as well as the necessary requirements for this purpose.
It can be seen Also throughout the chapter are flow charts that show the steps or processes
followed to carry out the cattle fattening process.

The value chain will be applied to describe the development of the activities of a business
organization, generating value for the end customer.

FIGURE N° 32

Supply of inputs livestock Product

and materials breeding delivery

Administrative
Activities
of Financial
management
support
Company infrastructure

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5.2. PRODUCT DESCRIPTION

5.2.1. PHYSICAL DESCRIPTION

The Nelore Breed is generally characterized by medium to large sized animals, with white, gray
and spotted gray fur. The skin is rich in melanin, a factor that functions as a protector against the
sun's rays, which is extremely important for tropical and subtropical regions.

They are vigorous-looking animals with great muscular and body development; head not very
wide, with an elongated face, wide forehead and thin nose; skull with rectilinear profile; large
elliptical eyes, with a meek expression; ears of medium size; short, thick, pointed horns in the
male; in females slightly inclined backwards. The Nelore breed has the smallest horns of all the
Zebu breeds. Short, thick neck, with large, loose dewlap.

They are used for the production of milk, meat and work, in areas where high rusticity is
required. Regarding birth weight, 30 kg are reported for males, and 25 kg for females. At two
years old, and with a good diet, they can reach 450 kg. Adults can reach a weight of 800 kg
(males) and 500 600 kg for females.

The qualities of this breed are:

- The fertility of their cows and sexual precocity of the heifers.

- The survival capacity of their calves.

- The quality of the mothers' udders, with appropriately sized nipples.

- The longevity of life of useful reproduction of cows and bulls.

- The exceptional sexual activity of bulls.

- The excellent quality of the bulls' semen.

- The natural short foreskin that prevents Acrobistitis lesions in males.

- The undeniable hardiness of the breed in difficult environmental conditions.

- The good maternal and protective instinct of cows with respect to their calves.

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Another important characteristic of this breed, compared to others, is its low maintenance cost;
Because due to its rusticity, its great instinct for conservation, its great maternal qualities and the
precocity of its babies to suckle, and accompany their mothers a few hours after birth, it allows
them to survive with very little care, thus reducing the labor cost.

FIGURE N° 33

5.2.2. CHEMICAL DESCRIPTION

Meat is a staple food. Not only does it have an unmatched flavor, but it also has high nutritional
properties: high quality protein, iron, B vitamins and zinc.

Beef includes veal, cow and ox. There are some nutritional differences, depending on the type of
animal, its age or the part of the meat that is going to be consumed.

Meat is one of the foods that nourishes the most with less volume. It contains about 20 percent
protein, phosphorus, iron and B vitamins.

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5.3. MASS BALANCE

TABLE N° 43 MASS BALANCE

UNIT OF TOTAL VALUE

REQUIRED UNIT PRICE
ITEM MATERIALS FOR A UNIT OF PRODUCT MEASURE IN Bs.
QUANTITY EN Bs
MENT (MONTHLY)
0.1 Raw material
Nelore bulls 197 Unit 3500 689.500,00
0.2 Supplies
Balanced for fattening 11.820 Kilos 1,93 22.812,60
Mixed bran 11.820 Kilos 1,5 17.730,00
Mineral salt 11.820 Kilos 1 11.820,00
Deworming 1.182 Ml 1,06 1.252,92
Tick vaccine 1.182 Ml 1,1 1.300,20
TOTALS 744.415,72

Source: self made

5.4. PRODUCTION PROCESS

BREEDING .- This point details the aspects of daily care of livestock for their proper growth and
development.

FOOD AND NUTRITION.- One of the aspects that must be taken into consideration within the
feeding and nutrition of livestock is the proper administration and maintenance of the pastures,
since this is the main source of food for them.

Currently the farm has pastures distributed in pastures of between 8 and 10 hectares each; The
grass it has is alfalfa that grows approximately up to 30 cm, this being one of the best grasses
intended for raising livestock.

The treatment and control that must be given to grasslands for optimal performance is detailed
below.

- The growth time for grass on new land is three months and one month for land already
used.

- Each pasture must be subdivided into sections that house the livestock in smaller spaces

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which will allow the systematic exploitation of the land, in order to avoid the use of areas
not yet exploited and the mistreatment of those already used.

- Once the pasture has been exploited, the livestock must be placed in a new section, all
the organic fertilizer from the animals is spread and finally the land is irrigated with
abundant water permanently.

- Once the grass has grown (30 days), this paddock is again ready to be used.

PROCESS OF CATTLE FATTENING

STEP 1: Adaptation to feeding

At this stage, it takes (15 to 20 days) to begin fattening the cattle. This is when the cattle are received on
the ranch and begin a process of adaptation to their new environment and a different feeding regime.

FIGURE N° 34

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STEP 2: Change of diet

In this second stage or phase (15 to 20 days) the feed is changed once the cattle have completed their
adaptation process, thus preparing them to receive adequate nutrition so that they begin to gain weight.

FIGURE N° 35

STEP 3: Completion

This is when the beef is at the ideal weight (approximately 90 to 120) where we determine the quality of
the beef it has and it is ready for sale in the market.

FIGURE N° 36

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PROCESS OF CATTLE FATTENING

Selection and inspection of livestock supply

Of vitamins

Transfer to the control of

center of
livestock growth
Fattening

Cattle in the corrals Weight wait

Livestock
Optimum

Breed selection weight control

of cattle

Livestock feeding transfer to the

slaughterhouse

Feeding control livestock sale

of cattle

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TABLE N° 44 PROCESS COURSE

Course of the process

cattle fattening

No. Description
operation Transport delay Store Inspection
1
Selection of cattle to buy
2 Transfer of livestock to the
center
3 Selection of breeds
4 Control and analysis —
5 Vaccination
6 Head registration
7 Livestock feeding
8 Cattle weighing

9 Transfer to the '-

slaughterhouse
Source: self made
5.5. LAY OUT

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LAYOUT FINCA PAQUIO

PROJECT PREPARATION AND EVALUATION

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5.5.1. DIMENSIONS OF THE LAND

FIGURE N° 37

HACIENDA PAQUIO

Antonio is located in the department of Santa Cruz in the Ñuflo de Chávez province
northeast of the city of Santa Cruz.

The limits of San Antonio de Lomerío are the following:

To the north with the Municipality of Concepción, to the south with the Zapoco Sur River
and with the San Julián River, to the east with the Velasco province and to the west with
the San Ramón municipality.

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5.5.2. DISTRIBUTION OF PHYSICAL INFRASTRUCTURE

1. Near

FIGURE N° 38

The land consists of 150 hectares and is fenced with barbed wire and wooden posts.

2. Bretes

FIGURE N° 39

9
mtr 1 5mtrs

The gaps are made of wood and measure 9 meters long and 1.5 meters high.

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3. Corrals

FIGURE N° 40

1.70
meters

The corral will be built on 30 m2, in the southern part of the farm.

4. Sheds

FIGURE N° 41

Two sheds will be built, one located between the south and east of the farm, the other is
located in the north.

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5. Workers Housing

FIGURE N° 42

Two homes will be built for workers; One of the houses will be between North and East,
the other between North and West.

6. Deposits

FIGURE N° 43

The warehouse will be built between the West and North part of the farm. It will
measure 12 meters long, 5 meters wide and 4.5 meters high.

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INSTALLATION MATERIALS

FIGURE N° 44

FEEDERS

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5.6. REQUEST

TABLE N° 45

VEHICLE REQUIREMENTS

TOTAL VALUE (bs)

ITEM SUPPLIER AMOUNT PRICE(bs)
ASSET CHARACTERISTICS

0.1 toyota 1 208.200 208.200

4x4 truck Displacement (cm ) 3

2,982 Maximum power (Cv 171

(126)
4 cylinder diesel

0.2 toyota 1 458.800 458.800

E-=-===== 5g-s0

Livestock cargo truck

With a capacity of 3500 kg
TOTAL 667.000

Source: self made

TABLE N° 46 FUELS REQUIREMENTS

PRICE PER QUANTITY X AMOUNT X QUANTITY

ITEM DESCRIPTION
LITER DAY MONTH PER CYCLE
0.1 Truck Fuel (Diesel) 3,72 15,00 1.674,00 6.696,00
Truck fuel (gasoline) 3,74 2,00 224,40 897,60
TOTALS (Liters) 17,00 1.898,40 6.696,00
Source: self made

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TABLE N° 47 OF INFRASTRUCTURE REQUIREMENTS

WORTH
ITEM DESCRIPTION amount Q. UNITARY
TOTAL IN Bs.
CORRALES 2 20500 41000
SHEDS 2 35000 70000
Housing for workers 2 24406 48812
Deposit 1 26000 26000
TOTALS 7 185.812,00
Source: self made

TABLE N° 48 OF LAND REQUIREMENTS

WORTH
ITEM DESCRIPTION PRICE/m²
QUANTITY (m²) TOTAL IN Bs.
0.1 Area for staff housing 30 5416,65 162.499,50
0.2 Area for raising and fattening livestock 150 5416,67 812.500,50
TOTALS 180 975.000,00
Source: self made
TABLE N° 49 REQUIREMENTS FOR RAW MATERIALS AND INPUTS

CALCULATION FOR EACH CYCLE PRODUCED

UNIT OF WORTH
MATERIALS FOR A UNIT OF PRODUCT REQUIRED QUANTITY MEASUREM PRICE IN BS. TOTAL IN
ENT Bs.
Raw material
Nelore bulls 1 Unit 3500,00 3500,00
Supplies 0,00
Balanced for fattening 60 Kilos 1,93 115,80
Mixed bran 60 Kilos 1,50 90,00
Mineral salt 60 Kilos 1,00 60,00
Deworming 6 Ml 1,06 6,36
Tick vaccine 6 Ml 1,10 6,60
TOTAL 3506,59 3778,76

Source: self made

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TABLE N° 50 COMPUTER EQUIPMENT REQUIREMENTS

WORTH
ITEM DESCRIPTION AMOUNT UNIT PRICE
TOTAL IN Bs.
0.1 Computers 1 5.500,00 5.500,00
TOTALS 9 5.500,00 5.500,00

Source: self made

TABLE N°51 REQUIREMENTS FOR CLEANING TOOLS

WORTH
ITEM DESCRIPTION AMOUNT UNIT PRICE
TOTAL IN Bs.
0.1 Pasture Fumigator 2 960,00 1.920,00
0.2 Rakes 3 130,00 390,00
0.3 Roasts 3 80,00 240,00
0.4 Machates 3 100,00 300,00
0.5 Shovel 3 50,00 150,00
TOTALS 14 1.320,00 3.000,00

Source: self made

TABLE N°52 REQUIREMENTS FOR FURNITURE AND EQUIPMENT

WORTH
ITEM DESCRIPTION AMOUNT UNIT PRICE
TOTAL IN Bs.
0.1 Medium Desk 2 600 1.200,00
0.2 Office Armchairs 2 350 700,00
0.3 File Shelves 2 700 1.400,00
0.4 Chairs 4 150 600,00
TOTALS 10 1.800,00 3.900,00

Source: self made

TABLE N°53 REQUIREMENTS FOR INSTALLATION EQUIPMENT

WORTH
ITEM DESCRIPTION AMOUNT UNIT PRICE
TOTAL IN Bs.
0.1 Feeders 1 9.700,00 9.700,00
0.2 Bretes 1 10.000,00 10.000,00
TOTALS 2 19.700,00
Source: self made

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TABLE N°54 LABOR REQUIREMENTS

DIRECT LABOR INVESTMENT

SALARY IN TOTAL BB.SS Monthly TOTAL PER
ITEM DESCRIPTION WORKERS
(BS) SALARY 42.7% total CYCLE
0.1 FOREMAN 1 2.600,00 2.600,00 1.110,20 3.710,20 14.840,80
0.2 COWBOYS 2 2.400,00 4.800,00 2.049,60 6.849,60 27.398,40
0.3 PERSOL CLEANING AND CARE 3 2.000,00 6.000,00 2.562,00 8.562,00 34.248,00
PARTIAL TOTALS 6 7.000,00 13.400,00 5.721,80 19.121,80 76.487,20

INDIRECT LABOR INVESTMENT

SALARY IN TOTAL BB.SS Monthly TOTAL PER
ITEM DESCRIPTION WORKERS
(BS) SALARY 41.71% total CYCLE

0.1 ADMINISTRATOR 1 4.500,00 4.500,00 1.876,95 6.376,95 25.507,80

0.2 COUNTER 1 3.500,00 3.500,00 1.459,85 4.959,85 19.839,40
PARTIAL TOTALS 2 8.000,00 8.000,00 3.336,80 11.336,80 45.347,20

Source: self made

TABLE N° 55 REQUIREMENTS FOR BASIC SERVICES

BASIC SERVICE INVESTMENT (WATER)

COST
UNIT OF
QUANTITY PER AMOUNT PRICE PER TOTAL PER
ITEM DETAIL MEASUREME
PRODUCTION IN m3 SERVICE PRODUCTION
NT
CYCLE CYCLE
0.1 WATER L.T. 40000 40 30,00 120,00
TOTAL 40000 40 30,00 120,00

BASIC SERVICE INVESTMENT (ELECTRIC ENERGY)

kwh PRICE MONTHLY
ITEM DESCRIPTION REQUIRED COST PER
Ints (kwh) COST
MONTH CYCLE
Focus on
0.1 28,8 20,45 81,792
housing
Spotlights in
0.2 19,2 0,71 13,63 54,528
offices
Spotlights in
0.3 96 68,16 272,64
the bathroom
TOTAL 144,00 0,71 102,24 408,96

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INVESTMENT IN COMMUNICATION (INTERNET AND PHONES)
MONTHLY COST PER
ITEM DESCRIPTION
COST CYCLE
0.1 Phones 100 400
0.2 Internet 650 2600
TOTAL 750 3.000,00

Source: self made

TABLE N° 56 DESKTOP MATERIALS

WORTH TOTAL
UNIT OF
ITEM DESCRIPTION AMOUNT UNIT PRICE TOTAL IN VALUE PER
MEASUREMENT
Bs. CYCLE
0.1 Letter size bond paper package 500 one 6 25 150 50,00
0.3 Yellow folders package 50 one 3 24 72 24,00
0.4 About manila package 50 one 3 27 81 27,00
0.6 wooden stamp unit 3 27 81 27,00
0.7 Tampo unit 3 34 102 34,00
0.8 Tampo ink unit 3 13 39 13,00
0.9 Ink for the printer unit 6 27 162 54,00
0.10 Perforator unit 3 34 102 34,00
0.11 Stapler unit 3 34 102 34,00
0.12 Staples package x 100un 6 3 18 6,00
0.13 small clips package x 100 one 6 3 18 6,00
0.15 Nepaco package x 100 one 3 20 60 20,00
0.16 Pens box x 12 one 9 34 306 102,00
0.17 Pencil box x 12 one 3 20 60 20,00
0.18 Draft box x 12 one 3 55 165 55,00
0.19 Highlighter pen box x 6 one 3 55 165 55,00
0.20 Scissors unit 4 6 24 8,00
0.27 30cm ruler package x 6 one 3 34 102 34,00
0.29 Small bound notebook package x 10 one 1 97 97 32,33
0.30 casio calculator unit 3 50 150 50,00
TOTALS 77 622 2056 685,33
Source: self made

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5.7. PROJECT LIFE CYCLE

TABLE N° 57

PROD. ANNUAL PROD. ANNUAL

YEARS HEAD OF CATTLE
Kl (480)
2016 590 283.200
2017 656 314.880
2018 790 379.200
2019 810 388.800
2020 900 432.000
Source: self made

FIGURE N°45

PROJECT LIFE CYCLE

FIGURE Nº46

PROJECT LIFE CYCLE

CHAPTER VI
INVESTMENT AND FINANCING OF THE PROJECT
6.1 TOTAL INVERSION

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The investment is an expense incurred for the acquisition of certain assets and other deferred
expenses to carry out the project.
The investment in the project is intended for two purposes:
> Fixed investment, deferred investment

> The working capital.

TABLE N° 58

TOTAL INVERSION
EXPRESSED IN Bs.
ITEM ACCOUNT TOTAL
0.1 FIXED INVESTMENT 1.961.646,34
Land 975.000,00
Civil constructions 185.812,00
Computing team 5.500,00
Cleaning machinery 3.000,00
Furniture and fixtures 3.900,00
Facilities 3.000,00
Vehicles 667.000,00
Feeders, brooms 19.700,00
Unforeseen (5.3%) 98.734,34
0.2 DEFERRED INVESTMENT 180.360,20
Feasibility study 12.528,00
Organization expense 5.528,00
Advertising 3.500,00
Insurance (7%) 137.315,24
INSURANCE (1.8% of livestock value) 12.411,00
Unforeseen (5.3%) 9.077,96
0.3 WORKING CAPITAL 877.874,58
direct labor 76.487,20
Wages and salaries 45.347,20
Raw material (bulls) 689.500,00
Supplies 54.915,72
Cleaning material 714,17
Stationery 685,33
Fuel and lubricants 6.696,00
Basic services 3.528,96
TOTAL INVERSION 3.019.881,12
Source: self made
6.2 FIXED INVESTMENT
It refers to the acquisition of tangible assets that are used for the production of rearing and
fattening of cattle and constitute permanent investments that are at its service, among these are:

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remodeling, furniture and fixtures, vehicles, and equipment. , among others.

These are all expenses incurred in the acquisition of fixed assets (subject to depreciation) (land,
machinery and equipment, buildings, furniture and fixtures, vehicles, civil works, facilities)
6.2.1 Land
TABLE N° 59
LAND INVESTMENT
TOTAL VALUE
ITEM DESCRIPTION PRICE/(Ha)
QUANTITY (Ha) IN Bs.
0.1 Area for staff housing 30 5416,65 162.499,50
0.2 Area for raising and fattening livestock 150 5416,67 812.500,50
TOTALS 180 975.000,00
Source: self made

6.2.2 civil works civil works – land

TABLE N° 60
INVESTMENT IN BUILDINGS AND CIVIL WORKS – TERR ENO
TOTAL VALUE
ITEM DESCRIPTION amount Q. UNITARY
IN Bs.
0.1 Corrals 2 20.500 41000
0.2 Sheds 2 35.000 70.000
0.3 Housing for workers 2 24.406 48.812
0.4 Deposit 1 26.000 26.000
TOTALS 7 185.812,00
Source: self made

6.2.3 Computing team

TABLE N° 61

INVESTMENT IN COMPUTER EQUIPMENT

ITEM DESCRIPTION AMOUNT Q. UNITARY TOTAL VALUE IN Bs.
0.1 Computers 1 5.500,00 5.500,00
TOTALS 9 5.500,00 5.500,00
Source: self made

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6.2.4 Cleaning machinery
TABLE N° 62
INVESTMENT CLEANING TOOLS
WORTH
ITEM DESCRIPTION AMOUNT UNIT PRICE
TOTAL IN Bs.
0.1 Pasture Fumigator 2 960,00 1.920,00
0.2 Rakes 3 130,00 390,00
0.3 Roasts 3 80,00 240,00
0.4 Machates 3 100,00 300,00
0.5 Shovel 3 50,00 150,00
TOTALS 14 1.320,00 3.000,00

Source: self made

6.2.5 Furniture and fixtures

TABLE N° 63
INVESTMENT IN FURNITURE AND EQUIPMENT.
WORTH
ITEM DESCRIPTION AMOUNT UNIT PRICE
TOTAL IN Bs.
0.1 Medium Desk 2 600 1.200,00
0.2 Office Armchairs 2 350 700,00
0.3 File Shelves 2 700 1.400,00
0.4 Chairs 4 150 600,00
TOTALS 10 1.800,00 3.900,00

Source: self made

6.2.6 Vehicle investment

TABLE N° 64
VEHICLE INVESTMENT
TOTAL VALUE
ITEM DESCRIPTION AMOUNT UNIT PRICE
IN Bs.
0.1 4x4 truck 1 208.200,00 208.200,00
Livestock cargo truck 1 458.800,00 458.800,00
TOTALS 667.000,00
Source: self made

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6.2.7 Feeders and feeders

TABLE N° 65

INVESTMENT IN FEEDER AND BREATHERS

TOTAL VALUE
ITEM DESCRIPTION AMOUNT UNIT PRICE
IN Bs.
0.1 Feeders 1 9.700,00 9.700,00
0.2 Bretes 1 10.000,00 10.000,00
TOTALS 2 19.700,00
Source: self made

6.3 DEFERRED INVESTMENT

These are all those expenses incurred indirectly, such as: organizational expenses, facilities,
research study, pre-operation interests, unforeseen events.

6.3.1 Company Organization Expenses

It refers to the expenses for the legal constitution of the commercial company and the
presentation of all documents in the entities that will allow the legal functioning of the home.
Includes notarial, legal payments, obtaining licenses and registrations.

TABLE N° 66
ORGANIZATION EXPENSE
TOTAL VALUE IN
ITEM DESCRIPTION
Bs.
0.1 Opening balance 350,00
0.2 Fundempresa 500,00
0.3 CNS 950,00
0.4 Constitution Minutes 1.100,00
0.5 AFPs 528,00
0.6 Municipal Register 600,00
0.7 NIT 500,00
0.8 Financial authorization 500,00
0.9 prefecture registration 500,00
Total $us. 5.528,00
Source: self made
6.3.2 Feasibility studies

Feasibility studies in the feasibility study you can identify all the studies that are carried out to
observe whether the project is viable or not, also the legal norms that exist and may affect the

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project, the technical study of the soil is also carried out for its precision.

TABLE N° 67
FEASIBILITY STUDIES
TOTAL VALUE IN
ITEM DESCRIPTION
Bs.
0.1 Financial study
0.2 Economic studies
12.528,00
0.3 Technical studies
0.4 Legal studies
TOTAL 12.528,00
Source: self made

6.3.4 Asset insurance

Insurance is the payment of an annual premium made to an insurance company so that fixed
assets are insured against any type of unfavorable event for the company.

TABLE N° 68

SURE
TOTAL VALUE IN
ITEM Detail
Bs.
0.1 Insurance (7%) 137.315,24
TOTAL 137.315,24
Source: self made

6.3.5 livestock insurance

TABLE N° 69
SURE
TOTAL VALUE IN
ITEM Detail
Bs.
0.1 INSURANCE (1.8%) of the value of livestock 6.993,00
TOTAL 6.993,00
Source: self made

6.4 WORKING CAPITAL

Financially it comes from the difference between current assets and liabilities. It is the amount of
money that is required to start the production cycle until the time of its realization (sale). The
items included are : raw materials, inputs, direct and indirect materials, labor, services (drinking
water, communication, etc.) and other expenses required by the project in the first production
cycle.

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6.4.1 direct labor

It is the investment made for the direct work of the personnel for the rearing and fattening of the
livestock, as well as their cleaning and care.

TABLE N° 70

DIRECT LABOR INVESTMENT

SALARY IN TOTAL BB.SS TOTAL PER
ITEM DESCRIPTION WORKERS Monthly total
(BS) SALARY 42.7% CYCLE

0.1 Foreman 1 2.600,00 2.600,00 1.110,20 3.710,20 14.840,80

0.2 Cowboys 2 2.400,00 4.800,00 2.049,60 6.849,60 27.398,40
0.3 Cleaning and care staff 3 2.000,00 6.000,00 2.562,00 8.562,00 34.248,00
PARTIAL TOTALS 6 7.000,00 13.400,00 5.721,80 19.121,80 76.487,20
Source: self made
Salaries and wages are established by the labor market, to which are added the employer
contributions made per worker. The parts that are made are:

• Employer contributions 17.71%

• Bonus provision 8.33%

• Compensation provision 8.33%

• Double bonus provision 8.33% (conditional on the country's growth)

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6.4.2 Indirect labor (wages and salaries)

TABLE N° 71

INDIRECT LABOR INVESTMENT

BB.SS TOTAL PER
ITEM DESCRIPTION WORKERS SALARY IN (BS) TOTAL SALARY Monthly total
41,71% CYCLE

0.1 Administrator 1 4.500,00 4.500,00 1.876,95 6.376,95 25.507,80

0.2 Counter 1 3.500,00 3.500,00 1.459,85 4.959,85 19.839,40
PARTIAL TOTALS 2 8.000,00 8.000,00 3.336,80 11.336,80 45.347,20
Source: self made
It is the administrative expense incurred by the personnel at the company's disposal. To these
expenses, the employer contributions are added, which are;

6.4.3 Raw materials and inputs

All expenses on raw materials and inputs for the production of the product are accounted for for
the first production cycle, which lasts 4 months of work.

TABLE N° 72
UNIT OF TOTAL VALUE
REQUIRED UNIT PRICE
ITEM MATERIALS FOR A UNIT OF PRODUCT MEASUREME PRODUCTION
QUANTITY EN Bs
NT CYCLE
0.1 Raw material
Nelore bulls 197 Unit 3.500,00 689.500,00
0.2 Supplies
Balanced for fattening 11.820 Kilos 1,93 22.812,60
Mixed bran 11.820 Kilos 1,50 17.730,00
Mineral salt 11.820 Kilos 1,00 11.820,00
Deworming 1.182 Ml 1,06 1.252,92
Tick vaccine 1.182 Ml 1,10 1.300,20
TOTALS 744.415,72
Source: self made

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6.4.4 Cleaning material

TABLE N° 73
Cleaning material investment
UNIT OF TOTAL
TOTAL VALUE
ITEM DESCRIPTION MEASURE AMOUNT UNIT PRICE VALUE IN
PER CYCLE
MENT Bs.
0.1 Toilet paper dispenser UNIT 6 14 84 28,00
0.2 Garbage dumps UNIT 4 20 80 26,67
0.3 Liquid soap LITER 15 45 675 225,00
0.4 Mop UNIT 6 15 90 30,00
0.6 Lavender Ltrs. 15 13 195 65,00
0.8 Bathroom air freshener Package 3 40 120 40,00
0.9 Broom Unit 4 18 72 24,00
0.10 washing powder Kg. 15 16 240 80,00
0.12 mopping cloth Unit 6 5 30 10,00
0.13 Duster Unit 3 10 30 10,00
0.14 Toilet paper package 15 12 180 60,00
0.17 Tea Box 3 18 54 18,00
0.18 Coffee Jar 6 35 210 70,00
0.19 Sugar Kg. 15 5,5 82,5 27,50
TOTALS 116 266,5 2142,5 714,17
Source: self made

6.4.5 vehicle fuel

TABLE N° 74
FUEL INVESTMENT FOR VEHICLE
PRICE PER QUANTITY X AMOUNT X QUANTITY PER
ITEM DESCRIPTION
LITER DAY MONTH CYCLE
0.1 Truck Fuel (Diesel) 3,72 15,00 1.674,00 6.696,00
Truck fuel (gasoline) 3,74 2,00 224,40 897,60
TOTALS (Liters) 17,00 1.898,40 6.696,00
Source: self made

It is the investment that is made to transport the livestock both at the time of purchase and sale. It
is also used to purchase inputs for production and other inconveniences within the company.

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6.4.6 Basic services (water)

TABLE N° 75

BASIC SERVICE INVESTMENT (WATER)

UNIT OF
AMOUNT
ITEM DETAIL MEASUREM QUANTITY PER PRICE PER TOTAL COST PER
IN m3
ENT PRODUCTION CYCLE SERVICE PRODUCTION CYCLE
0.1 Water L.T. 40000 40 30,00 120,00
TOTAL 40000 40 30,00 120,00
Source: self made

Water consumption in the community is provided by a community well or a water distribution

system, its extraction is carried out from the deepest part of the earth and the payment for the
service has no relationship with its consumption since it is cancels a price of 30 bs per month
regardless of the consumption of the residents

6.4.7 Basic services (Electric energy)

TABLE N° 76

BASIC SERVICE INVESTMENT (ELECTRIC ENERGY)

PRICE MONTHLY
ITEM DESCRIPTION kwh REQUIRED COST PER
Ints (kwh) COST
MONTH CYCLE
0.1 Focus on housing 28,8 20,45 81,792
0.2 Spotlights in offices 19,2 0,71 13,63 54,528
0.3 Spotlights in the bathroom 96 68,16 272,64
TOTAL 144,00 0,71 102,24 408,96
Source: self made

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6.4.8 Basic services (communication and internet)

TABLE N° 77
INVESTMENT IN COMMUNICATION (INTERNET AND PHONES)

ITEM DESCRIPTION MONTHLY COST COST PER CYCLE

0.1 phones 100 400

0.2 Internet 650 2600
TOTAL 750 3.000,00
Source: self made

Internet and telephone services will be requested from the telecommunications company Entel

6.4.5 Stationery

TABLE N° 78
DESK MATERIAL INVESTMENT
UNIT OF WORTH TOTAL VALUE
ITEM DESCRIPTION AMOUNT UNIT PRICE
MEASUREMENT TOTAL IN Bs. PER CYCLE

0.1 Letter size bond paper package 500 6 25 150 50,00

0.3 Yellow folders onepackage 50 3 24 72 24,00
0.4 About manila package 50 3 27 81 27,00
0.6 wooden stamp unit 3 27 81 27,00
0.7 Tampo unit 3 34 102 34,00
0.8 Tampo ink unit 3 13 39 13,00
0.9 Ink for the printer unit 6 27 162 54,00
0.10 Perforator unit 3 34 102 34,00
0.11 Stapler unit 3 34 102 34,00
0.12 Staples package x 6 3 18 6,00
0.13 small clips package x 100 6 3 18 6,00
0.15 Nepaco package x 100 3 20 60 20,00
0.16 Pens box x 12 one 9 34 306 102,00
0.17 Pencil box x 12 one 3 20 60 20,00
0.18 Draft box x 12 one 3 55 165 55,00
0.19 Highlighter pen box x 6 one 3 55 165 55,00
0.20 Scissors unit 4 6 24 8,00
0.27 30cm ruler package x 6 one 3 34 102 34,00
0.29 Bound notebook package x 10 one 1 97 97 32,33
0.30 casio calculator unit 3 50 150 50,00
TOTALS 77 622 2056 685,33

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Source: self made
6.5 Investment schedule

TABLE N° 79

INVESTMENT PROGRAM
(Expressed in Bolivians)
INVESTMENT YEARS
ITEM ACCOUNTS PERIOD (YEAR
0) 1 2 3 4 5
0.1 FIXED INVESTMENT 1.961.646,34 0 0 19.700,00 0 5.500,00
Land 975.000,00 -
Civil constructions 185.812,00 -
Computing team 5.500,00 - 5.500,00
Cleaning machinery 3.000,00
Furniture and fixtures 3.900,00 -
Facilities 3.000,00 -
Vehicles 667.000,00 -
Feeders, Bretes 19.700,00 - 19.700,00
UNFORESEEN (5.3%) 98.734,34 -
0.2 DEFERRED INVESTMENT 180.360,20 0,00 0,00 0,00 0,00 0,00
Feasibility study 12.528,00
Organization expense 5.528,00
Advertising 3.500,00
Insurance (7%) 137.315,24
INSURANCE (1.8% of livestock value) 12.411,00
UNFORESEEN (5.3%) 9.077,96 -
0.3 WORKING CAPITAL 877.874,58 0,00 0,00 0,00 0,00 0,00
direct labor 76.487,20
Wages and salaries 45.347,20
Raw material (bulls) 689.500,00
Supplies 54.915,72
Cleaning material 714,17
Stationery 685,33
Fuel and lubricants 6.696,00
Basic services 3.528,96
TOTAL 3.019.881,12 0,00 0,00 19.700,00 0,00 5.500,00
Source: self made
6.6 PROJECT FINANCING
There are a variety of banks that can provide their services to opt for financing, which are
considered the banks that offer greater accessibility to livestock credits.

Many of them choose to propose interest rates lower than those established by the government
to channel productive credits.

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These banks with the best productive loans are:

• NATIONAL BANK OF BOLIVIA

• SANTA CRUZ MERCANTILE
• BANK PRODEM BANK UNION
• BANK GANDER
• BANK UNION
• BANK ECONOMIC

6.5.1 FINANCIAL AGENCIES

TABLE N° 80
TABLE N° FINANCING ALTERNATIVES
(Expressed in Bolivians)

INTEREST REQUIREMENT GRACE

INSTITUTION AMOUNT TIME RATE S PERIOD

LIVESTOCK BANK 1.664.500,00 5 YEARS 6% MORTGAGE 1 YEAR

PRODEM BANK 1.664.500,00 10 YEARS 7% MORTGAGE 1 YEAR

ECONOMIC BANK 1.664.500,00 7 YEARS 10% MORTGAGE 1 YEAR

Source: self made

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The project will opt for the alternative of the livestock bank since it has a lower interest rate and a
one-year grace period and, just like the life of the project, it is a 5-year term.

6.5.2 DEBT AMORTIZATION

TABLE N°81
LOAN 1.664.500,00
INTEREST RATE 6 0,03
CREDIT PERIOD 5 YEARS 10 SEMESTERS
AMORTIZATION BIANNUAL
C.F. 237.118,66

SEMESTERS DEBT AMORTIZATION INTEREST FIXED FEE DEBT BALANCE

0 1.664.500,00 --------------- ------------ -------------- 1.664.500,00

1 1.664.500,00 --------------- ------------ -------------- 1.664.500,00

2 1.664.500,00 --------------- ------------ -------------- 1.664.500,00

3 1.664.500,00 187.183,66 49.935,00 237.118,66 1.477.316,34

4 1.477.316,34 192.799,17 44.319,49 237.118,66 1.284.517,17

5 1.284.517,17 198.583,14 38.535,52 237.118,66 1.085.934,03

6 1.085.934,03 204.540,64 32.578,02 237.118,66 881.393,39

7 881.393,39 210.676,86 26.441,80 237.118,66 670.716,53

8 670.716,53 216.997,16 20.121,50 237.118,66 453.719,37

9 453.719,37 223.507,08 13.611,58 237.118,66 230.212,29

10 230.212,29 230.212,29 6.906,37 237.118,66 0,00

TOTAL 1.664.500,00 232.449 1.896.949,27

Source: self made

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TABLE N° 82
LOAN 1.664.500,00
INTEREST RATE 6 0,03
CREDIT PERIOD 5 YEARS 10 SEMESTERS
AMORTIZATION BIANNUAL
CV 208.062,50

AMORTIZATION WITH VARIABLE INSTALLMENT

DEBT
SEMESTER DEBT AMORTIZATION INTEREST VARIABLE FEE
BALANCE

0 1.664.500,00 1.664.500,00

1 1.664.500,00 1.664.500,00

2 1.664.500,00 1.664.500,00

3 1.664.500,00 208.062,50 49.935,00 257.997,50 1.456.437,50

4 1.456.437,50 208.062,50 43.693,13 251.755,63 1.248.375,00

5 1.248.375,00 208.062,50 37.451,25 245.513,75 1.040.312,50

6 1.040.312,50 208.062,50 31.209,38 239.271,88 832.250,00

7 832.250,00 208.062,50 24.967,50 233.030,00 624.187,50

8 624.187,50 208.062,50 18.725,63 226.788,13 416.125,00

9 416.125,00 208.062,50 12.483,75 220.546,25 208.062,50

10 208.062,50 208.062,50 6.241,88 214.304,38 0,00

TOTAL
1.664.500,00 224.707,50 1.889.207,50
Source: self made

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6.5.3 FINANCING STRUCTURE

TABLE N°83

EXPRESSED IN Bs.
INPUT FINANCED
ITEM DETAILS TOTALS CONTRIBUTION
OWN 48%
0.1 FIXED INVESTMENT 1.961.646,34 986.646,34 55%
975.000,00
Land 975.000,00 - 975.000,00
Civil constructions 185.812,00 185.812,00
Computing team 5.500,00 5.500,00 -
Cleaning machinery 3.000,00 3.000,00 -
Furniture and fixtures 3.900,00 3.900,00 -
Facilities 3.000,00 3.000,00 -
Vehicles 667.000,00 667.000,00
Feeders, Bretes 19.700,00 19.700,00 -
UNFORESEEN (5.3%) 98.734,34 98.734,34 -
0.2 DEFERRED INVESTMENT 180.360,20 180.360,20 0,00
Feasibility study 12.528,00 12.528,00 -
Organization expense 5.528,00 5.528,00 -
Advertising 3.500,00 3.500,00 -
Insurance (7%) 137.315,24 137.315,24 -
INSURANCE (1.8% of livestock value) 12.411,00 12.411,00 -
UNFORESEEN (5.3%) 9.077,96 9.077,96 -
0.3 WORKING CAPITAL 877.874,58 188.374,58 689.500,00
direct labor 76.487,20 76.487,20 -
Wages and salaries 45.347,20 45.347,20
Raw material (bulls) 689.500,00 - 689.500,00
Supplies 54.915,72 54.915,72 -
Cleaning material 714,17 714,17 -
Stationery 685,33 685,33 -
Fuel and lubricants 6.696,00 6.696,00 -
Basic services 3.528,96 3.528,96 -
TOTAL INVERSION 3.019.881,1 1.355.381,1 1.664.500,00
Source: self made 2 2

The financing structure will be 45% as own contribution, which is

1,355,381.12 bs and the requested contribution will be 55%, which is 1,664,500.00 bs

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CHAPTER VII

PROJECT COSTS AND INCOME

7.1 INTRODUCTION
The costs are the amounts of money that will be invested in the area of material, human and financial
resources that the project uses in the different stages to transform them, giving them added value and in
this way offer a quality service with the support of these resources.

The costs for this project were classified into fixed costs and variable costs. The details can be seen in
the following points .

7.2 CLASSIFICATION OF COSTS

7.2.1 FIXED COSTS

They are those that in their magnitude remain constant or almost constant, regardless production level,
administrative plant salary,
benefits (administrative plant), Indirect materials, rent, depreciation, Unforeseen events, Maintenance
Fixed electrical energy

TABLE N°84

FIXED COSTS (EXPRESSED IN Bs)

ITEM DETAIL YEAR 1 YEAR 2 YEAR3 YEAR 4 YEAR 5
0.1 Wages and salaries 136.033,20 140.833,20 145.633,20 150.437,40 155.237,40
0.2 Cleaning materials 2.142,50 2.249,63 2.362,11 2.480,21 2.604,22
0.3 Writing materials 2.056,00 2.158,80 2.266,74 2.380,08 2.499,08
0.4 Basic services 10.586,88 10.726,22 10.872,54 11.026,16 11.187,47
0.5 Credit amortization 0,00 416.125,00 416.125,00 416.125,00 416.125,00
0.6 Financial costs 0,00 93.628,13 68.660,63 43.693,13 18.725,63
0.7 Asset insurance 137.315,24 142.121,28 147.095,52 152.243,87 157.572,40
0.8 livestock insurance 37.200,87 41.334,30 45.927,00 51.030,00 56.700,00
0.9 Deferred amortization 36.072,04 36.072,04 36.072,04 36.072,04 36.072,04
0.10 Depreciations 149.150,60 149.150,60 151.120,60 151.120,60 151.120,60
TOTAL 510.557,33 1.034.399,19 1.026.135,37 1.016.608,48 1.007.843,84
Source: self made

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TABLE N°85

COSTS SALARY AND SALARY (EXPRESSED IN Bs)

ITEM DESCRIPTION MONTHLY SALARY YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
0.1 General manager 4.500,00 76.523,40 79.223,40 81.923,40 84.623,40 87.323,40
0.2 Sales manager 3.500,00 59.509,80 61.609,80 63.709,80 65.814,00 67.914,00
PARTIAL TOTALS 11.336,80 136.033,20 140.833,20 145.633,20 150.437,40 155.237,40
Source: self made

TABLE N°86
COST OF CLEANING MATERIALS (EXPRESSED IN Bs)
ITEM DESCRIPTION YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
0.1 Toilet paper dispenser 84,00 88,20 92,61 97,24 102,10
0.3 Garbage dumps 80,00 84,00 88,20 92,61 97,24
0.4 Liquid soap 675,00 708,75 744,19 781,40 820,47
0.6 Mop 90,00 94,50 99,23 104,19 109,40
0.7 Lavender 195,00 204,75 214,99 225,74 237,02
0.8 Bathroom air freshener 120,00 126,00 132,30 138,92 145,86
0.9 Broom 72,00 75,60 79,38 83,35 87,52
0.10 washing powder 240,00 252,00 264,60 277,83 291,72
0.11 mopping cloth 30,00 31,50 33,08 34,73 36,47
0.12 Duster 30,00 31,50 33,08 34,73 36,47
0.13 Toilet paper 180,00 189,00 198,45 208,37 218,79
0.15 Tea 54,00 56,70 59,54 62,51 65,64
0.16 Coffee 210,00 220,50 231,53 243,10 255,26
0.17 Sugar 82,50 86,63 90,96 95,50 100,28
TOTAL 2142,50 2249,63 2362,11 2480,21 2604,22
Source: self made

TABLE N°87
DRINKING WATER SERVICE COSTS (EXPRESSED IN Bs)
ITEM DESCRIPTION YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
0.1 Water 360,00 378,00 396,90 416,75 437,58
TOTAL 360,00 378,00 396,90 416,75 437,58
Source: self made

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TABLE N°88
DESKTOP MATERIAL COSTS (EXPRESSED IN Bs.)
ITEM CONCEPT YEAR 1 YEAR2 YEAR3 YEAR4 YEAR5
0.1 Letter size bond paper 150,00 157,50 165,38 173,64 182,33
0.3 Yellow folders 72,00 75,60 79,38 83,35 87,52
0.4 About manila 81,00 85,05 89,30 93,77 98,46
0.6 wooden stamp 81,00 85,05 89,30 93,77 98,46
0.7 Tampo 102,00 107,10 112,46 118,08 123,98
0.8 Tampo ink 39,00 40,95 43,00 45,15 47,40
0.9 Ink for the printer 162,00 170,10 178,61 187,54 196,91
0.10 Perforator 102,00 107,10 112,46 118,08 123,98
0.11 Stapler 102,00 107,10 112,46 118,08 123,98
0.12 Staples 18,00 18,90 19,85 20,84 21,88
0.13 small clips 18,00 18,90 19,85 20,84 21,88
0.15 Nepaco 60,00 63,00 66,15 69,46 72,93
0.16 Pens 306,00 321,30 337,37 354,23 371,94
0.17 Pencil 60,00 63,00 66,15 69,46 72,93
0.18 Draft 165,00 173,25 181,91 191,01 200,56
0.19 Highlighter pen 165,00 173,25 181,91 191,01 200,56
0.20 Scissors 24,00 25,20 26,46 27,78 29,17
0.27 30cm ruler 102,00 107,10 112,46 118,08 123,98
0.29 Small bound notebook 97,00 101,85 106,94 112,29 117,90
0.30 casio calculator 150,00 157,50 165,38 173,64 182,33
TOTALS 2056,00 2158,80 2266,74 2380,08 2499,08
Source: self made

TABLE N°89
BASIC SERVICE COSTS (ELECTRIC ENERGY) (EXPRESSED IN Bs.)
ITEM DESCRIPTION YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
0.1 Focus on housing 245,38 257,64 270,53 284,05 298,26
0.2 Spotlights in offices 163,58 171,76 180,35 189,37 198,84
0.3 Spotlights in the 817,92 858,82 901,76 946,84 994,19
bathroom
TOTAL 1.226,88 1.288,22 1.352,64 1.420,27 1.491,28
Source: self made

TABLE N°90
COMMUNICATION AND INTERNET COSTS (EXPRESSED IN Bs.)
ITEM DESCRIPTION YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
0.1 phones 1.200,00 1.260,00 1.323,00 1.389,15 1.458,61
0.2 Internet 7.800,00 7.800,00 7.800,00 7.800,00 7.800,00
TOTAL 9.000,00 9.060,00 9.123,00 9.189,15 9.258,61
Source: self made

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TABLE N°91

ASSET INSURANCE (EXPRESSED IN Bs.)

ITEM DESCRIPTION YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
0.1 Asset insurance 137.315,24 142.121,28 147.095,52 152.243,87 157.572,40
TOTAL 137.315,24 142.121,28 147.095,52 152.243,87 157.572,40
Source: self made

TABLE N°92

LIVESTOCK INSURANCE COSTS (EXPRESSED IN Bs.)

ITEM DESCRIPTION YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
0.1 LIVESTOCK INSURANCE 37.200,87 41.334,30 45.927,00 51.030,00 56.700,00
TOTAL 37.200,87 41.334,30 45.927,00 51.030,00 56.700,00
Source: self made

TABLE N°93

DEFERRED AMORTIZATION COSTS (EXPRESSED IN Bs.)

ITEM DESCRIPTION YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
0.1 Deferred investment 36.072,04 36.072,04 36.072,04 36.072,04 36.072,04
TOTAL 36.072,04 36.072,04 36.072,04 36.072,04 36.072,04
Source: self made

TABLE N°94

FINANCIAL COSTS (EXPRESSED IN Bs.)

ITEM DESCRIPTION YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
0.1 Credit amortization 0 416.125,00 416.125,00 416.125,00 416.125,00
0.2 Financial costs 0 93.628,13 68.660,63 43.693,13 18.725,63
TOTAL 0,00 509.753,13 484.785,63 459.818,13 434.850,63
Source: self made

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TABLE N°95

DEPRECIATIONS OF ASSETS (EXPRESSED IN Bs.)

Usefu ASSET Annual Residual

ITEM Detail YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
l life AMOUNT rate value

0.1 Corrals 10 41.000,0 10% 4.100,00 4.100,00 4.100,00 4.100,00 4.100,00 20.500,00
0.2 Sheds 20 70.000,0 5% 3.500,00 3.500,00 3.500,00 3.500,00 3.500,00 52.500,00
0.3 Housing for workers 20 48.812,0 5% 2.440,60 2.440,60 2.440,60 2.440,60 2.440,60 36.609,00
0.4 Deposit 20 26.000,0 5% 1.300,00 1.300,00 1.300,00 1.300,00 1.300,00 19.500,00
0.5 Computing team 4 5.500,0 25% 1.375,00 1.375,00 1.375,00 1.375,00 0,00
0.6 Cleaning machinery 8 3.000,0 13% 375,00 375,00 375,00 375,00 375,00 1.125,00
0.7 Furniture and fixtures 10 3.900,0 10% 390,00 390,00 390,00 390,00 390,00 1.950,00
0.8 Facilities 10 3.000,0 10% 300,00 300,00 300,00 300,00 300,00 1.500,00
0.9 Vehicles 5 667.000,0 20% 133.400,00 133.400,00 133.400,00 133.400,00 133.400,00 0,00
0.10 Feeders, brooms 10 19.700,0 10% 1.970,00 1.970,00 1.970,00 1.970,00 1.970,00 9.850,00
TOTAL 887.912,0 149.150,60 149.150,60 149.150,60 149.150,60 147.775,60 143.534,00

Usefu ASSET Annual Residual

ITEM Detail YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
l life AMOUNT rate value

0,1 Computer 4 5.500,0 25% - - - - 1.375,00 4.125,00

0,10 Feeders, brooms 10 19.700,0 10% - - 1.970,00 1.970,00 1.970,00 17.730,00
TOTAL 25.200,0 0,0 0,0 1.970,0 1.970,0 3.345,0 21.855,0
Source: self made

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7.2.2 VARIABLE COSTS

They are those that are modified according to the volume of production, that is, if there is no
production there are no variable costs. Within this theory it can be determined that the costs will
grow as production grows, these costs can be the following:

• Direct raw materials

• Supplies
• Fuel and lubricants
• direct labor
• Direct materials
• Electrical energy directly allocated to production
• Water

TABLE N°96

VARIABLE COSTS (EXPRESSED IN Bs.)

ITEM DETAIL YEAR 1 YEAR 2 YEAR3 YEAR 4 YEAR 5
0.1Labour 229.461,60 237.501,60 326.167,20 336.847,20 433.432,80
0.2Raw material (bulls 2.066.715 2.296.350 2.551.500 2.835.000 3.150.000
0.3Supplies 164.605 182.894 203.216 225.796 250.884
0.4Fuel and lubricants 20.088,00 21.092,40 22.147,02 23.254,37 24.417,09
TOTAL 2.480.869,59 2.737.838,44 3.103.030,26 3.420.897,17 3.858.733,89
Source: self made

TABLE N°97

LABOR COSTS (EXPRESSED IN Bs.)

SALARY
ITEM DESCRIPTION YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
MONTHLY
0.1 FOREMAN 2600,00 44.522,40 46.082,40 47.642,40 49.202,40 50.762,40
0.2 COWBOYS 2400,00 82.195,20 85.075,20 131.932,80 136.252,80 187.430,40
0.3
PERSOL CLEANING AND CARE 2000,00 102.744,00 106.344,00 146.592,00 151.392,00 195.240,00
PARTIAL TOTALS 7000,00 229.461,60 237.501,60 326.167,20 336.847,20 433.432,80
Source: self made

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TABLE N°98
RAW MATERIAL AND SUPPLIES COSTS
MATERIALS FOR A UNIT
ITEM YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
OF PRODUCT
0.1 Raw material
Nelore bulls 2.066.715 2.296.350 2.551.500 2.835.000 3.150.000
0.2 Supplies
Balanced for fattening 68.379 75.976 84.418 93.798 104.220
Mixed bran 53.144 59.049 65.610 72.900 81.000
Mineral salt 35.429 39.366 43.740 48.600 54.000
Deworming 3.756 4.173 4.636 5.152 5.724
Tick vaccine 3.897 4.330 4.811 5.346 5.940
TOTALS 2.231.319,99 2.479.244,44 2.754.716,043.060.795,60 3.400.884,00
Source: self made

TABLE N°99
VEHICLE FUEL COSTS (EXPRESSED IN Bs.)
ITEM DESCRIPTION YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
0.1 Truck Fuel (Diesel) 20.088,00 21.092,40 22.147,02 23.254,37 24.417,09
Truck fuel (gasoline) 2.692,80 2.827,44 2.968,81 3.117,25 3.273,12
TOTALS (Liters) 20.088,00 21.092,40 22.147,02 23.254,37 24.417,09
Source: self made

7.2.3 TOTAL COSTS

TABLE N°100

TOTAL COSTS (EXPRESSED IN Bs.)

DETAIL YEAR 1 YEAR 2 YEAR3 YEAR 4 YEAR 5
FIXED COSTS 510.557,33 1.034.399,19 1.026.135,37 1.016.608,48 1.007.843,84
VARIABLE COSTS 2.480.869,59 2.737.838,44 3.103.030,26 3.420.897,17 3.858.733,89
TOTAL 2.991.426,93 3.772.237,63 4.129.165,63 4.437.505,65 4.866.577,73
Source: self made

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7.2.4 PROJECTED COSTS

TABLE N°101
PROJECTED COSTS IN 5 YEARS

FIXED COST 510.557,33 1.034.399,19 1.026.135,37 1.016.608,48 1.007.843,84

Wages and salaries 136.033,20 140.833,20 145.633,20 150.437,40 155.237,40
CLEANING MATERIALS 2.142,50 2.249,63 2.362,11 2.480,21 2.604,22
WRITING MATERIALS 2.056,00 2.158,80 2.266,74 2.380,08 2.499,08
BASIC SERVICES 10.586,88 10.726,22 10.872,54 11.026,16 11.187,47
CREDIT AMORTIZATION 0,00 416.125,00 416.125,00 416.125,00 416.125,00
FINANCIAL COSTS 0,00 93.628,13 68.660,63 43.693,13 18.725,63
ASSET INSURANCE 137.315,24 142.121,28 147.095,52 152.243,87 157.572,40
LIVESTOCK INSURANCE 37.200,87 41.334,30 45.927,00 51.030,00 56.700,00
DEFERRED AMORTIZATION 36.072,04 36.072,04 36.072,04 36.072,04 36.072,04
DEPRECIATIONS 149.150,60 149.150,60 151.120,60 151.120,60 151.120,60
VARIABLE COST 2.480.869,59 2.737.838,44 3.103.030,26 3.420.897,17 3.858.733,89
LABOUR 229.461,60 237.501,60 326.167,20 336.847,20 433.432,80
RAW MATERIAL (TOTILLOS 2.066.715,00 2.296.350,00 2.551.500,00 2.835.000,00 3.150.000,00
SUPPLIES 164.604,99 182.894,44 203.216,04 225.795,60 250.884,00
FUEL AND LUBRICANTS 20.088,00 21.092,40 22.147,02 23.254,37 24.417,09
TOTAL COSTS 2.991.426,93 3.772.237,63 4.129.165,63 4.437.505,65 4.866.577,73
Source: self made

7.3 COST CALCULATION

7.3.1 UNIT COSTS (CMF, CMV, CMG,)

TABLE N°102

UNIT COSTS
DETAIL YEAR 1 YEAR 2 YEAR3 YEAR 4 YEAR 5
PRODUCTION LEVELS 590 656 729 810 900
FIXED AVERAGE COST 864,63 1.576,59 1.407,59 1.255,07 1.119,83
VARIABLE AVERAGE COST 4.201,37 4.172,90 4.256,56 4.223,33 4.287,48
MARGINAL COST 11.900,79 4.896,13 3.806,67 4.767,47 4.287,48
UNIT COST PER HEAD OF LIVESTOCK 5.066,01 5.749,49 5.664,15 5.478,40 5.407,31
Source: self made

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7.4 DETERMINATION OF INCOME

The Price Will Be Determined With A Profit Margin Of 30% On The Unit Costs

7.4.1 SALE PRICE

Cost *(1+%useful)
TABLE N°103

PRICE DETERMINATION
DETAIL YEAR 1 YEAR 2 YEAR3 YEAR 4 YEAR 5

PROFIT MARGIN 30% 30% 30% 30% 30%

UNIT COST FOR ONE UNIT 5066,01 5749,49 5664,15 5478,40 5407,31

UNIT COST*(1+0.35) 6585,81 7474,33 7363,40 7121,92 7029,50

UNIT PRICE PER HEAD OF CATTLE 6585,81 7474,33 7363,40 7121,92 7029,50
Source: self made

7.4.2 PROJECTED INCOME

The projected income is determined in the following table, which is projected for 5 years.

TABLE N°104

PROJECT INCOME
DETAIL YEAR 1 YEAR 2 YEAR3 YEAR 4 YEAR 5
PRODUCTION LEVELS 590 656 729 810 900
UNIT PRICE PER HEAD OF CATTLE 480 480 480 480 480
PRODUCTION LEVELS BY WEIGHT 283.435,20 314.928,00 349.920,00 388.800,00 432.000,00
PRICE PER KILO HOOK 13,7 15,6 15,3 14,8 14,6
PROFIT PER BOX 3.888.855,00 4.903.908,92 5.367.915,32 5.768.757,35 6.326.551,05
Source: self made

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7.5 DEPRECIATION

TABLE N°105

DEPRECIATIONS OF ASSETS (EXPRESSED IN Bs.)

Usef ASSET Annual Residual

ITEM Detail YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
ul life AMOUNT rate value

0.1 Corrals 10 41.000,0 10% 4.100,00 4.100,00 4.100,00 4.100,00 4.100,00 20.500,00
0.2 Sheds 20 70.000,0 5% 3.500,00 3.500,00 3.500,00 3.500,00 3.500,00 52.500,00
0.3 Housing for workers 20 48.812,0 5% 2.440,60 2.440,60 2.440,60 2.440,60 2.440,60 36.609,00
0.4 Deposit 20 26.000,0 5% 1.300,00 1.300,00 1.300,00 1.300,00 1.300,00 19.500,00
0.5 Computing team 4 5.500,0 25% 1.375,00 1.375,00 1.375,00 1.375,00 0,00
0.6 Cleaning machinery 8 3.000,0 13% 375,00 375,00 375,00 375,00 375,00 1.125,00
0.7 Furniture and fixtures 10 3.900,0 10% 390,00 390,00 390,00 390,00 390,00 1.950,00
0.8 Facilities 10 3.000,0 10% 300,00 300,00 300,00 300,00 300,00 1.500,00
0.9 Vehicles 5 667.000,0 20% 133.400,00 133.400,00 133.400,00 133.400,00 133.400,00 0,00
0.10 Feeders, brooms 10 19.700,0 10% 1.970,00 1.970,00 1.970,00 1.970,00 1.970,00 9.850,00
TOTAL 887.912,0 149.150,60 149.150,60 149.150,60 149.150,60 147.775,60 143.534,00

Usef ASSET Annual Residual

ITEM Detail YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
ul life AMOUNT rate value

0,1 Computer 4 5.500,0 25% - - - - 1.375,00 4.125,00

0,10 Feeders, brooms 10 19.700,0 10% - - 1.970,00 1.970,00 1.970,00 17.730,00
TOTAL 25.200,0 0,0 0,0 1.970,0 1.970,0 3.345,0 21.855,0
Source: self made

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7.6 STATEMENT OF INCOME AND PROFITS (INFORMATION STATEMENT)

TABLE N°106

Income Statement (Expressed in Bs)

CONCEPT YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
TOTAL REVENUE 3.888.855,00 4.903.908,92 5.367.915,32 5.768.757,35 6.326.551,05
TOTAL COSTS 2.991.426,93 3.772.237,63 4.129.165,63 4.437.505,65 4.866.577,73
FIXED COST 510.557,33 1.034.399,19 1.026.135,37 1.016.608,48 1.007.843,84
Wages and salaries 136.033,20 140.833,20 145.633,20 150.437,40 155.237,40
Cleaning materials 2.142,50 2.249,63 2.362,11 2.480,21 2.604,22
Writing materials 2.056,00 2.158,80 2.266,74 2.380,08 2.499,08
Basic services 10.586,88 10.726,22 10.872,54 11.026,16 11.187,47
Credit amortization 0,00 416.125,00 416.125,00 416.125,00 416.125,00
Financial costs 0,00 93.628,13 68.660,63 43.693,13 18.725,63
Asset insurance 137.315,24 142.121,28 147.095,52 152.243,87 157.572,40
livestock insurance 37.200,87 41.334,30 45.927,00 51.030,00 56.700,00
Deferred amortization 36.072,04 36.072,04 36.072,04 36.072,04 36.072,04
Depreciations 149.150,60 149.150,60 151.120,60 151.120,60 151.120,60
VARIABLE COST 2.480.869,59 2.737.838,44 3.103.030,26 3.420.897,17 3.858.733,89
Labour 229.461,60 237.501,60 326.167,20 336.847,20 433.432,80
Raw material (bulls) 2.066.715,00 2.296.350,00 2.551.500,00 2.835.000,00 3.150.000,00
Supplies 164.604,99 182.894,44 203.216,04 225.795,60 250.884,00
Fuel and lubricants 20.088,00 21.092,40 22.147,02 23.254,37 24.417,09
PROFIT BEFORE TAXES 897.428,08 1.131.671,29 1.238.749,69 1.331.251,70 1.459.973,32
TAXES (IUE) 25% 224.357,02 282.917,82 309.687,42 332.812,92 364.993,33
NET PROFIT 673.071,06 848.753,47 929.062,27 998.438,77 1.094.979,99
Source: self made

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BALANCE POINTS
Concept YEAR 1 Year 2 Year 3 Year 4 Year 5
Total IT Revenue 3.888.855,00 4.903.908,92 5.367.915,32 5.768.757,35 6.326.551,05
CF Fixed Costs 510.557,33 1.034.399,19 1.026.135,37 1.016.608,48 1.007.843,84
CVT Variable Costs 2.480.869,59 2.737.838,44 3.103.030,26 3.420.897,17 3.858.733,89
CVT/IT 0,64 0,56 0,58 0,59 0,61
1 - (CVT/IT) 0,36 0,44 0,42 0,41 0,39
Breakeven Point in Bs. 1.410.159,10 2.341.844,12 2.432.003,22 2.497.835,14 2.583.730,92

GENERAL BALANCE POINT EXPRESSED IN QUANTITIES OF SERVICES

CONCEPT Year 1 Year 2 Year 3 Year 4 Year 5
PE MONETARY 1.410.159,10 2.341.844,12 2.432.003,22 2.497.835,14 2.583.730,92
AVERAGE SALE PRICE 6.585,810 7.474,332 7.363,395 7.121,923 7.029,501
BALANCE AMOUNT 214 313 330 351 368
Source: self made

FIGURE N° 47

BREAKEVEN

TOTAL COST
TOTAL INCOME

Source: self made

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CHAPTER VIII

PROJECT EVALUATION

8.1 DEFINITION
The evaluation of the project is an operation that allows making the respective decision to
invest or not, based on the comparison of the profits or benefits obtained against the
respective production costs of the good offered by the project. That is, the profitability of the
project through the NPV, IRR, B/C and PRI indicators.

8.2 EVALUATION PARAMETERS (DEFINITION WITH ITS FORMULAS)

At this point, an economic analysis of the project will be carried out, through the use of
certain parameters, in order to determine its feasibility or not. This analysis is carried out
based on comparisons of the profits or benefits obtained and investment and production
costs in which have been incurred during the useful life that has been estimated for the
project.

8.2.1 NET PRESENT VALUE (NPV)

This method consists of bringing all the projected values of a project's cash flow, using a
discount rate, and purchasing them with the initial investment.
To calculate the NPV of the Project and the investor, the following formula is used:

NPV = FMo + -FM1, + -FN2,

( 1+i ) 0 ( 1+i ) 1 (1 + i) 2

Where:
FN = Net flow or net liquidity balance n = useful life of the project (years) i = update interest
rate

It is the measure of the benefit that an investment project yields throughout its useful life, it is
defined as the present value of its future income flow minus the present value of its cash
flow, that is, it results from the sum of the cash flow , updated to a discount box to obtain the

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alternative net present value of the capital to which it can be placed.
With the Van, it is possible to determine the minimum profitability required by the project and
which allows the investment to be recovered, that is, to cover costs and obtain profits.
Through this rate the investor can decide whether or not it is convenient for him to invest.

The NPV Net Present Value of the company can be as follows:

NPV = 0 The project generates neither losses nor profits
NPV < 0 The project does not meet the investor's expectations
NPV > 0 the project meets the investor's expectations.

8.2.2 INTERNAL RATE OF RETURN

The internal rate of return is that discount rate that, when updating the future flows of net
income from an investment project, makes the present value zero. In other words, it is a
profitability measure that shows what would be the highest interest rate that the project can
generate in its useful life.
To calculate the IRR, two financial rates are used to approximate and test the financial flow,
seeking to ensure that the net present value becomes negative. To calculate the IRR, the
following formula will be used:

V AIV1
IRR = il + ( 2 ¡i )

The Internal Rate of Return is interpreted as follows:

IRR = 0 The opportunity cost of capital for the project is indifferent.
IRR < 0 The opportunity cost of capital of the project does not meet expectations.
IRR > 0 The opportunity cost of the project's capital meets expectations.

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8.2.3 PERIOD OF PAYBACK
It is an indicator that measures the time in which the total investment will be recovered from
the net flow of the project. To calculate the PRI, the following formula is used:

ITEM
PRI = VAN Fa

Where:
IT = Total Income
VAF = Present Value of Annual Average Net Flow

8.2.4 BENEFIT – COST

Shows the amount of updated money that the project will receive for each monetary unit
invested.
It is another of the criteria for the evolution of a project that consists of determining a reason
by which it is determined whether or not it is convenient to invest in a project.
To obtain the cost-benefit ratio, the following formula is used

B1 B2 B3 B4 B5
B _ ( 1+Í ) 1 ( 1+Í ) 2 ( 1 + Í ) 3 I ( 1 + Í )
4 _ ( 1+Í ) 5
C “ C 0 _C1 C 2 C 3 f _C4 ( 1+i ) 0 (1+Í) 1 (1 + 1)2 (1 + Í) 3
(1+Í)4

Where:
B/C= benefit-cost
Co= cost in period 0
C1, C2,….Cn= cost in the projection
I = financial interest rate (the same as the NPV and the IRR)
81, B2,….B = projected net profits
Evaluation criteria
> Yeah the reason B/C isgreater than 1 , the project is accepted being
profitable
> Yeah the reason B/C isless than 1 the project is rejected
> Yeah the reason B/C is equal to 1 it is indistinct to accept or reject.

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8.3 CALCULATION OF INDICATORS

8.3.1 STRUCTURE OF UNFINANCED FUNDS

TABLE N°107

CASH FLOW WITHOUT FINANCING.

EXPRESSED IN (Bs)
CONCEPT YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Investment flow -3.019.881,12 19.700,00 1.048.763,58
Fixed investment -1.961.646,34 19.700,00 5.500,00
Deferred investment -180.360,20
Working capital -877.874,58
Rec. Working capital 877.874,58
Residual value of assets 165.389,00
Production flow 858.293,70 1.127.604,23 1.184.915,53 1.229.324,54 1.300.898,25
Net profit 673.071,06 848.753,47 929.062,27 998.438,77 1.094.979,99
Deferred amortization 36.072,04 36.072,04 36.072,04 36.072,04 36.072,04
Depreciation 149.151 149.151 151.121 151.121 151.121
Financial cost 0,00 93.628,13 68.660,63 43.693,13 18.725,63
Net cash flow -3.019.881,12 858.293,70 1.127.604,23 1.204.615,53 1.229.324,54 2.349.661,83
Source: self made

8.3.1.1 NPV CALCULATION TABLE N°108

GOING POSITIVE

Factor
YEAR Nfi GOES
20%
0 -3.019.881,12
1 858.294 1,2 715.245
2 1.127.604 1,4 783.058
3 1.204.616 1,7 697.115
4 1.229.325 2,1 592.846
5 2.349.662 2,5 944.276
3.732.540,66
NPV = 712.659,54

Source: self made

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TABLE N°109
GO NEGATIVE

Factor
YEAR Nfi GOES
50 %
0 -3.019.881,12
1 858.293,70 1,5 572.196
2 1.127.604,23 2,3 501.157
3 1.204.615,53 3,4 356.923
4 1.229.324,54 5,1 242.830
5 2.349.661,83 7,6 309.420
1.982.526
NPV= -1,037,355

Source: self made

8.3.1.2 INTERNAL RATE OF RETURN (IRR)

TABLE N°110

NPV1
IRR = T1- (T2—
VAN1 - VAN2
T1)

NPV = 712,659.54 NPV= -1,037,355

IRR= 28.8%

Source: self made

8.3.1.3 RECOVERY PERIOD (PRI)

4 YEARS AND 5 DAYS

ITEM
PPI— ____________
VAN Fa

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8.3.2 STRUCTURE OF FUNDS WITH FINANCING

TABLE N°111

CASH FLOW WITH FINANCING.

EXPRESSED IN (Bs)
CONCEPT YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Investment flow -1.355.381,12 0 0 19.700,00 0,00 359.263,58
Fixed investment -986.646,34 19.700,00 5.500,00
Deferred investment -180.360,20
Working capital -188.374,58
Rec. Working capital 188.375
Residual value of assets 165.389,00
Production flow 858.293,70 617.851,11 700.129,91 769.506,41 866.047,63
Net profit 673.071,06 848.753,47 929.062,27 998.438,77 1.094.979,99
Deferred amortization 36.072,04 36.072,04 36.072,04 36.072,04 36.072,04
Depreciation 149.151 149.151 151.121 151.121 151.121
Credit amortization 0,00 416.125,00 416.125,00 416.125,00 416.125,00
NET CASH FLOW -1.355.381,12 858.293,70 617.851,11 719.829,91 769.506,41 1.225.311,21
Source: self made

8.3.2.1 NPV CALCULATION

TABLE N°112
GOING POSITIVE

YEAR Nfi Factor 20% GOES

0 -1.355.381,12
1 858.294 1,2 715.245
2 617.851 1,4 429.063
3 719.830 1,7 416.568
4 769.506 2,1 371.097
5 1.225.311 2,5 492.425
2.424.398
NPV= 1,069,017

Source: self made

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TABLE N°113
GOING POSITIVE
YEAR Nfi Factor 59% GOES
-
0
1.355.381,12
1 858.293,70 1,589 540.147
2 617.851,11 2,525 244.701
3 719.829,91 4,012 179.415
4 769.506,41 6,375 120.703
5 1.225.311,21 10,130 120.956
1.205.921
NPV= -149,460

Source: self made

8.3.2.2 INTERNAL RATE OF RETURN (IRR)

NPV1
IRR = T1- (T2—
T1)* VAN1 - VAN2

NPV= 1,069,017 NPV= -149,460

IRR= 50.86%
Source: self made

8.3.2.3 RECOVERY PERIOD (PRI)

2 YEARS, 7 MONTHS, 9, DAYS

ITEM
PPI— ____________
Source: self made
VAN Fa

8.4 ENVIRONMENTAL EVALUATION:

ENVIRONMENTAL SHEET

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The environmental legal framework that governs the country is concentrated in the Environmental
Law No. 1333 and its respective regulations promulgated in 1995; which contains provisions that
apply to all public and private activities regarding the Evaluation and Control of Environmental Impact
in the execution of works, projects, plans and programs developed by any of these institutions.

SOCIAL RESPONSABILITY.

The EL DORADO farm is a company with social responsibility. We are committed to developing
products that protect the environment, as well as caring for those who need help, by donating to
worthy organizations and providing volunteer services.

ENVIRONMENTAL SECURITY:

Since the creation of the Hacienda EL DORADO environmental declaration, the company has
established and is currently applying its medium and long-term strategies.

❖ Environmental stabilization policy: The EL DORADO estate. It is committed to innovation in

the cattle fattening process, as well as to initiate research and development processes to
promote sustainable development and improve quality of life. We aim to offer the best services
to customers and preserve a safe and healthy environment for future generations.

❖ Environmental management strategy: The strategies established for environmental

management and for the development of ecological products have given way to sustainable
management policies. These strategies have expanded to create a broad strategy for
Environment, Safety, Health, which includes the environment as well as industrial safety and
healthcare.

YOUTH CARE:

The EL DORADO ranch will help provide a better educational environment for homeless children and
youth.

CHARITABLE DONATIONS:

The EL DORADO farm helps build the municipality by donating and giving away desk materials such
as pencils, notebooks, etc. With social responsibility.

VOLUNTARY WORK:

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The EL DORADO estate will actively participate in volunteer work in an effort to fulfill our responsibility
as a corporate citizen.

ENVIRONMENTAL SHEET:

ENVIRONMENTAL SHEET

MINISTRY OF SUSTAINABLE DEVELOPMENT AND ENVIRONMENT SECRETARY

NATIONAL NATURAL RESOURCES AND ENVIRONMENT UNDERSECRETARY OF
ENVIRONMENT ENVIRONMENTAL IMPACT ASSESSMENT DIRECTORATE

ENVIRONMENTAL SHEET

1. GENERAL INFORMATION

Filling date : 10/012/2015

Location : Santa Cruz de la Sierra

Promoter : UPDS

Responsible for filling out the form : Leonel Cortez Arauz

Profession : Petroleum engineer

Position : Administrator

Department: Santa Cruz

City: Santa Cruz de la Sierra

Telephone: 67775423

2. - PRODUCTION UNIT DATA

Company or : THE GOLDEN
Institution
Legal
: Leonel Cortez Arauz
representative(s)
Main activity : Breeding Cattle Fattening

Chamber or Association to which it belongs: FEGASACRUZ

Municipality: San Antonio De Lomerío

Department: Santa Cruz

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3. – IDENTIFICATION AND LOCATION OF THE PROJECT

Name of the project : Breeding Cattle Fattening

Canton : Municipality : San Antonio De Lomerio Department: Santa Cruz

adjacent to the property and activities they carry out

South : the Puquio hacienda.

East : s/n street

Land use : Current use: Domestic Potential use: Agriculture

Land Use Certificate: No. Issued by: On date:

4. – DESCRIPTION OF THE PROJECT LOCATION SITE

AREA TO OCCUPY : Total property 180 hectares Occupied by the project 180 hectares.

DESCRIPTION OF THE LAND :

Topography and slope : flat

Depth of water table : 10 – 16 meters

Water quality :

Predominant vegetation :

Natural drainage network :

Human Environment : Farms

5. - PROJECT DESCRIPTION

Activity : Sector : Livestock Subsector:

LINEAR PROJECTION......................................................................................................3
POLYNOMIC PROJECTION.............................................................................................3
1.2. HISTORICAL BACKGROUND..............................................................................3
1.3. PROBLEM STATEMENT.......................................................................................4
1.3.1. THEORETICAL NARRATIVE OF THE PROBLEM.........................................4
1.3.2. PROBLEM OUTLINE..........................................................................................6
EFFECT...............................................................................................................................6
CAUSE.................................................................................................................................6
1.3.4. ELEMENTS OF THE PROBLEM THAT ARE KNOWN...................................8

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1.3.5. ELEMENTS OF THE PROBLEM YOU WANT TO KNOW.............................8
1.4. RESEARCH QUESTION.........................................................................................8
1.5. AIM...........................................................................................................................8
1.5.1. GENERAL OBJECTIVE......................................................................................8
1.5.2. SPECIFIC OBJECTIVES......................................................................................8
1.6. DELIMITATION......................................................................................................9
1.6.1. TEMPORARY LIMIT..........................................................................................9
1.6.3. NOUN LIMIT........................................................................................................9
1.7. JUSTIFICATION......................................................................................................9
1.7.1. TECHNICAL JUSTIFICATION..........................................................................9
1.7.2. ECONOMIC JUSTIFICATION..........................................................................10
1.7.3. SOCIAL JUSTIFICATION.................................................................................10
1.8. RESEARCH METHODOLOGY............................................................................10
2.1. REFERENCE FRAME...........................................................................................11
> PRODUCTION THEORY..........................................................................................13
> FOOD SAFETY THEORY........................................................................................13
> PROJECT THEORY..................................................................................................14
> QUALITY THEORY..................................................................................................14
2.2. CONCEPTUAL FRAMEWORK...........................................................................14
2.3. LEGAL FRAMEWORK.........................................................................................16
STATE CONSTITUTION.................................................................................................16
LAW N°80.........................................................................................................................16
CRIMINAL LAW FOR THE PROTECTION OF LIVESTOCK ACTIVITY.................17
HEALTH LAW N°2061....................................................................................................18
LAW 843 (TAX CODE)....................................................................................................18
UNIFIED AGRICULTURAL REGIME...........................................................................18
TRANSACTION TAX (IT)...............................................................................................19
TAX ON CORPORATE PROFIT (IUE)...........................................................................19
COMMERCIAL CODE.....................................................................................................20
ENVIROMENT.................................................................................................................20
SENASAG.........................................................................................................................21
3.1.1. PRODUCT DESCRIPTION................................................................................22
3.1.2. DEFINITION OF THE DIFFERENT SUBSTITUTES......................................22
FATTENING OF BOVINE CATTLE...............................................................................22

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PRODUCTION..................................................................................................................23
> CHICKEN MEAT......................................................................................................23
BENEFITS.........................................................................................................................24
PROPERTIES....................................................................................................................24
> PORK MEAT..............................................................................................................24
BENEFITS.........................................................................................................................25
> FISH MEAT................................................................................................................25
BENEFITS.........................................................................................................................25
3.2. MARKET SEGMENTATION................................................................................25
> Middle class segmentation..........................................................................................26
> Lower middle class segmentation...............................................................................26
TABLE N°2 OBJECTIVE OF THE BENEFITED POPULATION.................................27
3.3. SAMPLE DESIGN.................................................................................................27
> PILOT TEST...................................................................................................................27
Formula..............................................................................................................................28
Size Determination.............................................................................................................28
0, 05 * 0,95 * 496.636 * 1. 962 n—...................................................................................28
3.4. STUDY AREA........................................................................................................29
3.5. STUDY AREA EQUIPMENT................................................................................29
3.5.1. TRANSPORT SERVICES..................................................................................29
3.5.2. HEALTH SERVICE............................................................................................30
3.5.3. SECURITY SERVICES......................................................................................30
WHAT AMOUNT OF KILOS DO YOU CONSUME IN YOUR HOME.?.......................32
WHERE YOU GENERALLY BUY MEAT.?.....................................................................33
WHERE YOU USUALLY BUY THESE.............................................................................36
SUBSTITUTE PRODUCTS.?...............................................................................................36
WHAT MOTIVATES YOU TO PURCHASE THE PRODUCT SAID PLACE?...........37

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