Zimbabwe Horticulture Sector Bulleti nn - ZimTrade

Zimbabwean economy and that it must determinedly start chugging again. We believe that inavailing this model to the agricultural industry, we are equipping the new agriculturaldispensation with superior planning capacity which should hold it in good stead from bothoperational and financial planning perspectives.Built on Microsoft Visual Basic, taguta tm enables you to effortlessly create productionprogramme scenarios of any mix of any number of crops. You can then proceed to computecomprehensive short-term and long-term financial forecasts for each scenario in a ‘what-if’scenario analysis fashion.For each scenario you can generate the following forecasts: production output, sales revenues,variable costs, fixed assets and depreciation, overheads, profit & loss, programme costs &financing structure, loans & repayments, debtors, creditors, stocks, cash flows, balance sheets,financial ratio analysis, sensitivity analysis and scenario comparative performance analysis overboth the short-term 12-month planning horizon and the longer-term 5-year horizon.taguta tm includes the following key attributes:• Inventory classification and coding scheme design and registration functionalityincluding tracking of suppliers, inventory and prices.• Production budgeting - materials, labour and operations, equipment usage and directpurchases.• Production operations, materials, equipment, manpower and financial resourcescheduling for each production scenario.• Financial planning and appraisal functionality.• Multi-currency planning support.This is a strong management tool to assist managers to take a glimpse into the future and alsoexercise control, and in viewing the business in the way outsiders would. Financial ratioinformation provides information regarding future performance and possible actions.While this model has been developed to primarily give farmers some operational and financialplanning leverage, it is an industry-wide model in that:• Financial institutions can use it as a project appraisal facility with its capacity forimporting for analysis, planning data from individual farmers.• Equity investors being demanding and comprehensive users of financial information withinterest spanning all aspects and stages of operations, profitability, liquidity, capitalstructure and valuation, would take a keen interest in the reports generated.• Credit grantors, short-term and long-term, would be interested in the profitability of thebusiness as well as the capital structure because the level of financial leverage determinesthe level of financial risk and indicate the extent that debt will be covered by assets.Expected Outcomes and Benefits:The following outcomes and benefits are expeceted:• Enhanced agricultural production planning, financial planning and decision support in thevalue chain.• Greater operational control and improved produce quality and delivery via documentedproduction procedures and performance standards, true to total quality management8