Project tambora august 2016
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Transcript of Project tambora august 2016
![Page 1: Project tambora august 2016](https://reader031.fdocuments.us/reader031/viewer/2022020410/588447a71a28aba8438b65a9/html5/thumbnails/1.jpg)
“PROJECTTAMBORA”UniqueAgri-BusinessOpportunity
EastIndonesia
August2016
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Introduc)on
• FACConsul)ng(the“Founder”)isseekingequityinvestorpartnersfor“ProjectTambora”,agreenfieldagricultureprojectinIndonesia(NTB);
• Despiteanabundanceofwaterandfer)leland,Indonesiaremainsanetimporterofmanyfoodcropsandisfarfromachievingitslong-statedgoaloffoodself-sufficiency;
• TheProjectaimstotakeadvantageofthechronicundersupplyofdomes)callyproducedvegetablesbyproducingstaplevegetablecropsthroughouttheyear;and
• Exportqualitysweetcorn,shallotsandchilliwillberetailedwithinIndonesia,primarilyJavaandregionalexportmarkets.
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“Equitypartners”sharecommonobjec)vesandvision
CommercialobjecHves• Developthebusinesstoachieve+100%IRRover10years,producingexportqualitystaple
vegetablecropsthroughouttheyear-thustakingadvantageofthethechronicundersupplyofdomes)callyproducedvegetables.
EnvironmentalandSustainabilitypolicy• ImplementsustainableGoodAgriculturalPrac)ces(GAPs)aimedatpes)cide-freeproduce
andavoidingprac)cesthatmayimpacttheenvironment;and• Wherepossible,fossilfuelsystemswillbereplacedwithcleanorrenewableenergysystems
tominimizeourcarbonfootprint.
CorporateandSocialresponsibility• Weaimtoprovideatleast150full)mejobstothesurroundingcommunity;• Werecognizetheneedtodeveloplocalsmallholdercapacityandproduc)vityandsupport
ourcommuni)esindeliveringsmallholderexportqualityproducetohighendmarkets;and• Bydemonstra)ngourcommitmenttoCorporateSocialResponsibilityweaimtoalignour
businessvalues,purposeandstrategywiththeneedsofourclients,whilstembeddingsuchresponsibleandethicalprinciplesintoeverythingwedo.
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INDONESIAOVERVIEW
STAPLEFOOD–VEGETABLEPRODUCTION
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Indonesiansconsiderchiliandshallotsasstaplefoodsanddemandforsweetcornisincreasing
• Morethan80%ofIndonesia’svegetableproduc)onoriginatesfromJava;• Shortrota)onvegetablecropsareproducedinrota)onwithrice,themaincrop;• Javaclimateis“wet-tropical”–typicallyunpredictableprolongedwetanddryperiods;• Adversesitecondi)ons(Soilsandclimate)inJavaresultinlimi)ngyieldbyatleast50%.
TheFounderiden)fiedsignificantopportunitytoproducehighvalueandhighdemandvegetables(sweetcorn,shallotsandchili)inEastIndonesia,andhavedevelopeda
cap)velogis)csolu)onthatshouldaddresstransporta)onchallenges
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Javaisthemainvegetableproducerandmarketforvegetables
Vegetablecropsrequirewelldrainedsoils-whereasricethrivesinsaturatedsoils
• Mechanizedlandprepara)onisnotpossibleonpaddyfields.Consequentlypoorqualityseedbedprepara)onaffectsyieldandhighlaborcostformanuallandprepara)on;and
• UnseasonalheavyrainaffectsIndonesianChili,Shallotandsweetcornsupply(higherprices)becauseofthesesitecondi)ons
Conclusion:VegetableyieldpotenHalislimitedby“ricepaddy”sitecondiHons
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Adverseweather(rainfalldistribu)on)isanotherkeylimi)ngfactorforchili,shallotandsweetcornproduc)oninJava
Javaislocatedinwet-tropicalclimate
• Prolongedwetseason(7-8months)anddryseason(3-4months);• Verywetperiods(+200mm/month)arecommonfor4to5monthsinayear;• Prolongedwetweather(+150mm/month)+cloudycondi)onsaffectyieldandquality;and• Prolongeddryweather(withoutirriga)on)alsoresultinreducedyields.
Java Malang–EastJava
UndersupplyofstaplefoodandpoorqualityarethemaindriversofsupplyfluctuaHons&volaHleprices
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Drysub-tropicalclimateisbegersuitedtoyear-roundvegetableproduc)on
EastSumbawarainfalldistribu)onismorepredictable:• ±150mm/monthover4monthsand
only1verywetmonthinayear(+200mm);
• Minimalinterferenceisan)cipatedtotheplan)ngandharves)ngschedulesthereforeminimalimpactonsupplyandqualityisexpected;
• Drymonthrainfalldistribu)onrangesfrom0to60mmpermonth;and
• Withirriga)on,drysub-tropicalclimateofSumbawaisbegersuitedforyear-roundvegetableproduc)on.
EastSumbawa-Indonesia
Dompu–DrySub-tropicalClimate• Mainrainfalldistribu)onover6mths:±1,100mm• Greaterlevelsofsolarradia)on(lesscloudcover)
Privateownedland(HGU1,142Ha)locatedinDompuisreadytobeacquired
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MarketResearch
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Tradi)onalwetmarketsandsmallstallsaccountfor85%ofretailtrade
MinistryofTrade(theMOT)Regula)onNo.70of2013:• 80%ofallgoodssoldateach“ModernStore”mustcompriselocallyproducedgoods;• Theregula)onfavorslocalproducersofhighqualityproducetoaccessmodernstores;• Modernretailersaccountfor15%oftheretailmarket;• Superandhypermarketsrepresented60%ofmodernretailoutletsandretailmarket
sharecon)nuestoincrease;and• “ModernStores”donotofferfavorablepaymentterms(+60days)forproducers.
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ChiliMarket
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Indonesiafreshchiliproduc)onislimitedto4-5monthsinayear(avoidingwetandverydryseasons)
• Themainchiliproduc)onperiodistradi)onallyduringwet&marginallydryperiods(May-JuneandSept-Oct);
• Underop)mumcoldstoragecondi)ons,Chilishelflifeislimitedto2-3weeksandlessthan3dayswithoutpostharvestpre-coolingandcoldstorage(tradi)onalproduc)on);
• ProjectTamboraintendstoproducechiliallyearroundandthecoldchainwillbedevelopedtarge)ngmaximumshelflife;and
• Addi)onalareawillbedevelopedtotakeadvantageoftradi)onallowsupplyperiods
©DocumentcopyrightofFAC
Rainfall'DistributionIndex
Java'Rainfall Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Smallholders'Planting'PlanSmallholders'Harvesting'Plan
Java'Chili'Prices
Sumbawa'Rainfall Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
E.Sumbawa'Irrigated'PlantingE.Sumbawa'Harvesting'Plan
Java'Chili'Prices
2.5'Ha'per'Week2.5'Ha'per'Week
Higher'Price Lower'Price Higher'Price Lower'Price Higher'Price
Sumbawa'Chili'Production'Plan'
Malang'E.Java'L'Traditional'Chili'Crop'Production'
Rainfed'Crops Irrigated'Crops'Limted'Production Harvest'Peak Limited'Production Harvest'Peak Limited'Production
Higher'Price Lower'Price Higher'Price Lower'Price Higher'Price
Very'Wet'Months Wet'Months Marginal'Dry'Months Very'Dry'MonthsOver'200mm'Rain 100'L'200mm'Rain 50'L'100mm'Rain <'50mm'Rain
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ProjectTamboraBaseCasemodelisbasedonIndonesianchilimarketdemandandtradi)onal(wet)marketpricesforJava
• Themarketprefersfreshchili(80%)comparedtodriedchili(20%);
• Threetypesofchiliareconsumed:- RedChili(50%)- Bird’sEyeChili(42%)- Greenchili(8%);
• Small(BirdsEyeChili)retailprice/kgishighercomparedtolargeandgreenchili;
• Largeredchiliisingreatestdemandduringreligiousfes)veseasons;and
• Tradi)onalwetmarketprices(Jan-Feb2015)rangefromRp15,000–Rp40,000/Kg(variablequality)
RedChiliharvestedarea2001-2011
ProjectTamborarevenueforexportqualitychiliisconservaHvelybased
onRp17,000/kg
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High-endmarketopportuni)eswillbeexploredtoincreaserevenuebasedonsuperiorqualityandregularsupply
• Small(BirdsEyeChili)istypicallymoreexpensivethanlargechiliandredchiliismoreexpensivethanthegreenchilivarie)es;and
• Jan-Feb2015JakartasupermarketpricesrangefromRp99,000toRp159,000perKg.
ProjectTamboraaimstoretail+50%exportqualitychilitolocalhigh-endwholesalersandexportmarkets
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SHALLOTS
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ShallotsproducedinJavaaretradi)onallyharvestedfromMaytoJuly(avoidingverywetandverydryseasons)
Javashallotsaretypicallyplantedinwetmonths(FebruarytoApril)onex-paddysitesandharvestedfromMaytoJuly(marginallydrymonths).
• Shallotshavelowtolerancetoprolongedwetsoilcondi)ons(notsuitedtoverywetmonths)andduringthedriermonthsrequiresirriga)on(500-600mm);and
• Shallotsproduc)onwilltargetperiodsofreducedsupply(SeptembertoApril).
©DocumentcopyrightofFAC
Rainfall'DistributionIndex
Java'Rainfall Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Smallholders'Planting'PlanSmallholders'Harvesting'Plan
Java'Shallot'Prices
Sumbawa'Rainfall Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
E.Sumbawa'Irrigated'PlantingE.Sumbawa'Harvesting'Plan
Java'Shallot'Prices Higher'Price Lower'Price Higher'Price2.5'Ha'per'Week
Malang'E.Java'K'Traditional'Shallot'Crop'Production'
Rainfed'CropsLimted'Production Harvest'Peak Limited'ProductionMedium'Price Lower'Price Higher'Price
Sumbawa'Shallot'Production'Plan'
2.5'Ha'per'Week
Very'Wet'Months Wet'Months Marginal'Dry'Months Very'Dry'MonthsOver'200mm'Rain 100'K'200mm'Rain 50'K'100mm'Rain <'50mm'Rain
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ProjectTamboramodelforshallotproduc)onisalsobasedonJavamarketdemandandJavatradi)onalmarketprices
• WetMarketaveragepricesrangefromRp15,000toRp40,000/kgovertheyear.Duringperiodsofcri)calshortage,tradi)onalwetpricesexceedRp40,000/Kg;
• Governmentcontrolsimportpermits,andinrecentyearsallowedimportsof60,000Mt;and• Feb2015supermarketpriceforShallotsaveragedRp75,000/Kg(retailedin500gbags)
ProjectTamborarevenueforexportqualityshallotisconservaHvely
basedonRp18,500/kg
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SWEETCORN
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Indonesiasweetcornismostlygrownonex-paddysitesavoidingextremelywetandextremelydryseasons
• EastWestseedsreporttotalsweetcornacreageinIndonesiaat75,000Ha(yieldsaverage<10Mt/Ha);
• Mostsweetcornisplantedasashortseasoncroppriortoriceorarerricecoincidingwithdriermonths;and
• SignificantlylesssweetcornisproducedfromJulytoJanuaryresul)ngin20-30%higherprices
EastJavaMalangIndonesianwettropicalregionshave
3cornproduc)onseasons:- 1stcropNovembertoFebruary(49%)- 2ndcropMarchtoJune(37%)- 3rdcropJulytoSeptember(14%)
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Javasweetcornistypicallygrowninrota)onwithriceduringverywetandwetseasons
• Javasweetcorn(ex-paddysites)produc)onandpricesareaffectedbyadverserainfall;• Sweetcornyieldsareretardedbyheavyandprolongedrain(poordrainagecondi)ons)
thatcombinewithprolongedcloudycondi)ons.
ProjectTamboraaimstoproduceexportqualitysweetcornthroughouttheyear,takingadvantageofreducedproducHoninJavaandNTBfromJulytoDecember
Rainfall'Distribution
Index
Java'Rainfall Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Smallholders'Planting'Plan
Smallholders'Harvesting'Plan Less'Prod. Limited'Production
Java'Sweet'Corn'Prices Medium'Price
Sumbawa'Rainfall Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
E.Sumbawa'Irrigated'Planting
E.Sumbawa'Harvesting'Plan
Java'Sweet'Corn'Prices Medium'Price
Sumbawa'Sweet'Corn'Production'Plan'
2.5'Ha'per'Week
2.5'Ha'per'Week
Lower'Price Medium'Price Higher'Price
Lower'Price Medium'Price Higher'Price
Harvest'Peak Less'Production
Rainfed'Crops Irrigated'Crops' Water'limitations Rainfed'crop
Very'Wet'Months Wet'Months Marginal'Dry'Months Very'Dry'Months
Over'200mm'Rain 100'O'200mm'Rain 50'O'100mm'Rain <'50mm'Rain
Malang'E.Java'O'Traditional'Sweet'Corn'Production'
©DocumentcopyrightofFAC
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Comparedtomostotherstaplevegetableswithoutop)mumcoldstoragecondi)ons,sweetcornshelflifeislessthan36hours
• Sweetcornshelflifeunderop)mumcoldstoragecondi)ons(0-2°C)islimitedto6to10daysandlessthan36hourswithoutop)mumcoldstoragecondi)ons;
• Forthisreasonsupplyislimitedtosmallholderproduc)onincloseproximitytomarket;and• Varietyselec)ontakesintoconsidera)onConsumerpreference(sweettas)ng)and
producerpreference(highyield,diseaseresistanceandlongshelflife);
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ProjectTamboraaimstobeIndonesia’sleadingproducerandpreferredsupplierofaffordablesuper-sweetvariety
• Sweetcornistradi)onallyretailedinwetmarkets(withhuskon)inopencontainersorbyweightwhereasinsupermarkets,sweetcornisusuallyretailedinvacuumpackedcontainerswithoutthehusk;
• Tradi)onalwetmarketpricesaredrivenbylocalsupplyandquality:
PricesrangefromRp1,500toRp2,500percobequaltoRp9,000–Rp25,000/kg
• DuringJan-March2015(tradi)onallypeaksupplyperiod),Jakartasupermarketswereretailingpre-packedsweetcornatRp19,900/Kg;and
• ProjectTamborarecognizeanexportmarketopportunityforprocessedsweetcornproducts-ourlandcapacityandcapabilitysuitslargescalesweetcornproduc)on
ProjectTamborarevenueforexportqualitysweetcornisconservaHvely
budgetedatRp9,000/kg
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ProjectTamborabudgetedprice/kgforexportqualityproducetobulkwholesalersandtradersisconsidered“conserva)ve”
Fresh RpPrice/kg RpPrice/kg RpPrice/kgProduce WetMarket Supermarket ProjectTambora
Chili 15,000-50,000 75,000–150,000 14,0000------------------------------------------------------------------------------------------------------------Shallots 20,000-50,000 50,000–85,000 18,500------------------------------------------------------------------------------------------------------------Sweetcorn 9,000–25,000 20,000-30,000 9,000
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AlternaHveCrops
ExportMarket–SnackFood
Indonesiaimports>100,000Mt/Ann
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Alterna)vehighvaluevegetablecropswillbeproducedonasmallerscaletoevaluatefeasibilityandmarketdemand
Edamame(VegetableSoybean)• Vegetablesoybean(Edamame)isanidealcrop
rota)onop)on(addsnitrogentothesoil)andisgrownonalargescaleinEastJavaforAsia’shigh-valueexportmarket(snackfood);and
• ProducethatdonotmeetexportqualitystandardsisorenretailedinsupermarketsatRp30,000toRp40,000/kg.
Garlic• Indonesiameets90percentofitsgarlicdemand
fromimports,withdomes)cproduc)onstandingat13,000tonsperyear;
• Marketprices:Rp50,000–Rp100,000/kg
Soybeanandgarlicwillbeproducedonsmallscale(trialcrops)toevaluate
sitesuitability,varie)esandtodemonstratesupplycapabilityforpoten)allocalandexportmarkets.
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PROJECTTAMBORAMARKETINGSTRATEGY
• ProjectTambora’smarke)ngstrategyisbasedonretailingsweetcorn,chiliandshallotsinbulktowholesalersandtradersfromcoldstoragewarehousefacili)esinJava;
• Smallvolumes(non-exportquality)mayberetailedfromfarmgatetolocaltradersforretailingtolocalmarkets(Sumbawa,LombokandBali);and
• Mediumandlong-termobjec)veaimtosecureregularordersfromhigh-endmarkets.
ATI$$Warehouse$
ATI$$Farm$
Weekly$$Sea$Freight$
Exportmarketopportuni)esforprocessedsweetcorn(canningand/orfrozen)andedamame(frozenproducts)wouldbeexplored(tou)lizeallavailableland)
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PRIVATELANDAVAILABLEFORACQUISITION
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Privatelyownedlandsuitableforyear-roundirrigatedcashcroppingisavailableforacquisi)on
• ThereisanopportunitytoacquirealocalcompanylocatedontheislandofSumbawa,NusaTenggaraBarat(NTB)Indonesia;
• TheCompanyownstwoadjoiningHGU’smeasuringatotalof1,142Ha;and• Atleast70%oftheHGUarea(800Ha)isconsideredsuitableforirrigatedcropping;
OurBaseCasemodelisbasedondevelopingirriga)onon120Ha,providingsignificantopportunityforexpansion
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Landscapeandtopographyiscomparabletotemperatesavannahanddesirableforintensivemechanizedagriculture
• Approximately70%(800Ha)isconsideredarableandthesesoilscomplywithSoilClassIcharacteris)cs(Australianstandards);
• OurBaseCasemodelassumesthedevelopmentof120Haforirrigatedcashcrops;• Theremainingarableland(680Ha)willbedevelopedbasedonmarketdemand;and• Infrastructurewillbedevelopedonnon-arableland.
Above&Road&Landscapes&
Below&Road&Landscapes&
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Sitesuitabilityassessmentwasconductedin2014
SiteAssessmentconcluded:
ü Siteislocatedinasub-tropicalclimateandwithapproximately800Haarableland;ü Climate,soilsandtopographysuitssweetcorn,chiliandshallotsallyearround(all
threecropsarecommontothisregion);ü Soilsarefavorableforrepeatedirrigatedcropping(virginanddeepsandyloam);ü Presenceofalargeunder-groundaquifer(watersourceforirriga)on);ü Nooccupa)onbycommuni)es(noaccesstowater),theareaissparsely
populated;andü Morethan2kmofdeep-watercoastlineoffersopportunitytoestablishadeep
waterport.
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Thedrysub-tropicalclimateiswellsuitedtoyearroundproduc)onofChili,shallotsandsweetcorn
Month Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Kempo:Rainfall 220 225 220 190 100 0 0 0 0 85 155 140Min:Temp 21 21 21 21 20 18 18 19 20 20 21 21Max:Temp 30 30 30 30 30 30 30 31 31 31 30 30Rain:days 22 20 18 19 13 0 0 0 0 5 14 23
Eto 5 5 5 5 6 6 6 6 6 6 5 5High:RH
KeyClimateIndicators
• AnnualRainfallSub-tropicalrainfall:1,300mmWegestmonths:December–February(20-23raindays)Drymonths(norain):Jun–Sept
• Temperature-SummerTemperaturesMax31°C/Min21°C-WinterTemperaturesMax31°C/Min18°C
MeanDailyTemp:24°C
KeySiteIndicators• Welldrainedsoils• Slightslope
Site suitability
criteria
Dompu / Kempo Data Sweet corn, Chili & Shallot requirements
Summer Temp Range
Winter Temp Range
Mean Daily Temp
Summer: Max 31°C / Min 21°C
Winter: Max 31°C / Min 18°C
Mean Daily Temp: 24°C
Maximum: 30-32
Minimum: 10-18
Optimal: 20 -30
Seasonal Rainfall
Annual Rainfall
Summer: 1,200 – 1,250 mm Winter: 100- 150 mm
1,335 mm
3.5 to 4 Ml/Ha (Drip irrigation) Frequent applications
Susceptible to water logging
Solar radiation % Jan- Feb: 42% - 49%
Mar- Dec: 69% - 93%
Maximum solar radiation required
Relative humidity % Jan- May: 79% - 84% June - Dec: 66% - 77%
High humidity increases the incidence of fungal disease
Wind Speed (Knots) Ranges from 1 – 7 Knots Susceptible to strong winds
Evaporation (mm/day)
Jan- May: 5 mm (Summer)
June - Dec: 6 mm (Winter)
Sufficient supplementary irrigation at various stages of growth
Soils Sandy loam (well drained)
Virgin soil (pH to be tested)
Well drained loam - sandy loam
Ph range 5.8 to 7.5
Topography 0 to 2% Slight slope is preferred
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TheproposedEastSumbawasiteissuitableforyearroundcashcropping
Shallots,chiliandsweetcornarecommonsmallholdercropsinSumbawa(Bima,DompuandSumbawaBesar).Smallholderproduc)vityislimitedbyinadequateaccesstowaterforirriga)onanddistancetothemainmarketsinJava(highcostandhighlossesofperishableproduce).Foundershavedevelopedsolu)onsthataddresscoldsupplychainandlogis)cchallenges.
Site suitability criteria Proposed Property
Comment
Climate:
Sub-tropical dry climate. ✔ Climate is not considered extreme for the proposed cropping program. Adverse (high rainfall) conditions are not frequent
Soils:
Virgin, deep sandy loam soils ✔
Chili, shallots and sweet corn require well-drained soil – ideally sandy loam.
Irrigation potential:
The property is located above a large aquifer – reported ground-water potential 8-15 liters per sec (borehole potential 800m3/day)
✔
Approximate 3,500m3/Ha water is required to produce one crop. Maximum requirement for 120 Ha estimated at 4,700m3/day from boreholes during dry season (peak demand).
Community conflict:
Low risk of community conflict or illegal occupation (limited access to water)
✔
Good potential to support surrounding community farmers through out-grower programs
Existing access & infrastructure:
Nearest town is 50km away, nearest Port is 30km away and both are connected by new asphalt road. Reliable and good mobile telecommunication services are available but no access to state electricity supply.
✔
Basic services and all-weather access is available On site power generation options include solar, gas (LPG) and diesel power
Cold supply chain logistics:
No available cold supply chain services
✘ Propose to establish our own cold supply chain (farm to warehouse)
Market access:
Long distance by road to the main market (Java). Sea freight options are limited. Nearest Port is 30km away
✘
Sea freight is potentially cheaper and quicker than road transport. Propose long term charter of a suitable vessel - weekly service to / from Java Opportunity to develop a deep water jetty on site
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Thepropertyhasunlimitedaccesstogroundwater(produc)veaquifer)
Reference:SumbawaHydrogeologicalmap(2001)
Theproposedpropertyislocatedinanareadefinedas“ModerateProduc)veAquifer”(LightBlue)yielding5to10literspersecond”
(Poten)al=800m3/day)
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Moderndripirriga)onsystemsop)mizewateru)liza)onandallowsfer)lizerapplica)onviairriga)onatany)me
• Peakwaterrequirementfor120Haises)matedat8,400m3perday,basedonevapora)onof7mm/day,norainfalland100%ofplantwaterrequirement;
• 10-12boreholesmayberequired;• Theproposedirriga)onsystemisdesignedin30HaBlocks(4);• Eachblockwillhaveitsownwaterstorageandwatersupply
infrastructure(boreholes,boreholepumps,irriga)onpumps,fer)ga)oninjectorsandbackupgenerator);and
• Solarpoweredpumpswillbeusedtominimizepumpingcosts.
ProjectTamboraintendstodesignrainwaterharvesHngsystemthatincludesconstrucHonofalargestoragedamto
reducetherequirementforgroundwaterextracHon
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PROJECTTAMBORASTARTUPDEVELOPMENTSCHEDULE
Year1Developmentac)vi)esinclude:
• LandAcquisi)on• Sitedevelopmentandplanning• Temporaryaccommoda)on&offices• Boreholesandtes)ng• Irriga)onstoragedamconstruc)on• Installa)onofdripirriga)onsystems• Buildings&infrastructureconstruc)on• Equipmentpurchases• Containerjegyconstruc)on• Packhouseandcoldstorageconstruc)on• Securityinfrastructure• JavaWarehousesetup• Phasedvegetableproduc)on
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Thestartupdevelopmentscheduleisaimedatachievingfullproduc)on(2.5Haperweek)commencingQ4
• 1stcommercialcropmayexcludesweetcorn(notviabletoshipsmallquan)tytoJava);• 1stcroprevenueisexpectedcommencingQ3;• Fullproduc)on(2.5Ha/week)issettocommenceinQ4/retailinginQ1ofyear2;• Flexibleproduc)onscale–adjustedtosuitsitedevelopmentprogressandmarketdemand;• Ini)alaccommoda)onandofficeinfrastructurewillbecontainerized(quickandeasy);and• ThecontainerjegyshouldbereadyforusebyQ4.
Year%
Quarter Q1 Q2 Q3 Q4
Land%Acquisition
Construction
Irrigation
Equipment%purchases
Port%Construction
Site%preparation
1st%Crop%(1%Ha/week)%E%%Chili%&%Shallots 1st%Crop
2nd%Crop%(2%Ha/week)%E%Sweet%corn,%Chili%&%Shallots 2nd%Crop
Full%Production%(2.5%Ha/week)%E%%Sweet%corn,%Chili%&%Shallots Full%Prod.
Plant%Trial%Crops%E%Garlic%&%Soybean 1st 2nd 3rdRetail%1st%Crop%E%%Chili%&%Shallots 1st%Crop
Retail%2nd%Crop%Sweet%corn,%Chili%&%Shallots 2nd%Crop
Retail%2.5%Ha/WeekE%%Sweet%corn,%Chili%&%Shallots
Retail%Trial%Crops%E%Garlic%&%Soybean 1st 2nd
Year%1
Acquisition/DD HGU/ExtensionAccomodation///Stores///Offices///Roads///Pack/house///Security
Boreholes///Dams///Drip/Irr.
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The2yeardevelopmentscheduleisaimedatcomple)ngconstruc)onandbuildingalargestoragedamforirriga)on
• ArerYear1thefarmingopera)onneedstohaveiden)fiedfull)mestaffandfieldworkerswhowillrequireonsiteaccommoda)onandfacili)esthatincludemedicalandeduca)onalfacili)esfortheirimmediatefamilies;
• Alargewaterstoragedamwillbeconstructedonthepropertytocapturerainwaterrunoff(reducedependenceonboreholes);and
• Byyear2,thefarmisreadytoincreaseproduc)onscaletosuitlocal,regionalandexportmarketdemandandestablishlivestockenterprise(beeffeedlot&abagoir)tou)lizecropresidueandprocessedwaste.
Year%Quarter Q1 Q2 Q3 Q4
Land%AcquisitionConstruction
IrrigationEquipment%purchases
Port%ConstructionSite%preparation
Full%Production%(2.5%Ha/week)%I%%Sweet%corn,%Chili%&%Shallots Y2%I%Q1 Y2%I%Q2 Y2%I%Q3 Y2%I%Q4Plant%Trial%Crops%I%Garlic%&%Soybean Y2#$#Q1 Y2#$#Q2 Y2#$#Q3 Y2#$#Q4
Retail%2.5%Ha/WeekI%%Sweet%corn,%Chili%&%Shallots Y1%I%Q4 Y2%I%Q1 Y2%I%Q2 Y2%I%Q3Retail%Trial%Crops%I%Garlic%&%Soybean Y1#$#3rd#crop Y2#$#Q1 Y2#$#Q2 Y2#$#Q3
Year%2
Rainwater%Harvesting%DamStaff%&%Labour%permament%accommodation
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Our“Basecase”assumesyear-roundproduc)onofsweetcorn,chiliandshallotsofequalarea
Sweet%Corn Chili Shallots Soybean GarlicWeekly&Planting 2.5&Ha 2.5&Ha 2.5&Ha
Weekly&Harvesting 2.5&Ha 2.5&Ha 2.5&HaBudget&Yield 18&Mt/Ha 14&Mt/Ha 15&Mt/Ha
Potential&Yield 22>25&Mt/Ha 20&Mt/Ha 25>30&Mt/HaBudget&Weekly&Production&(Mt) 45 35 37.5
Potential&Weekly&Production&(Mt) 55 50 62.5Budget&Weekly&Shipments 45 35 37.5
Potential&Weekly&Shipments 55 50 62.5Budget&Weekly&Retail 45 35 37.5
Potential&Weekly&Retail 55 50 62.5
Main%Crops Trial%Crops
0.5&Ha0.5&Ha
Production%Plan
Land%Use%/%Crop%Options Sweet%Corn Chilli ShallotsVariety Golden%Sweet Birds%Eye%&%Large SAREN%TSS
Growing%Days% 80#$#85#Days 110$120#Days 70#$#90#DaysBudgeted%Yield%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%Potential%Yield
18Mt/Ha#######################20$25Mt/Ha
14Mt/Ha#####################18$22Mt/Ha
15Mt/Ha#################20$30Mt/Ha
Stocking 75,000#/#Ha 30,000/Ha 160,000/HaWater%Requirement 3,500#m3/Ha 3,500#m3/Ha 3,500#m3/Ha
Full%Production%@%2.5%Ha/Week
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COLDSUPPLYCHAINANDLOGISTICS
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Coldsupplychainmustincludepost-harvestpre-coolingandop)mumcoldstoragefromfarmtoretail
Logis)cs TemperatureControl(Refrigera)on)
ColdChainLogis)cs+ =
FarmProducHon
Transport WarehouseColdStorage Wholesalers
Pre-CoolingPackhouseColdStorage
• Farm• Packhouse• Pre-Cooling• Grading• Packing
ProducHon
• ContainerTrucks• ReeferContainers• ColdStorage
RoadTransporttoLocalPort • Loading
• Shipping• Off-Loading
SeaFreighttoJavaPort
• TransfertoColdrooms• DeliverytoWarehouse• RoadTransport
RoadTransporttoJavaWarehouse • Produceretailed
toWholesalersandTraderscollectedfromtheWarehouse
JavaColdStorage&Retail
FreshProduce Op)mumTemp MaximumShelfLifeSweetCorn 0–2°C 6–8DaysChili 7–10°C 14–21DaysShallots 0–2°C +6months
©DocumentcopyrightofFAC
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Coldsupplychainrequirementsincludepost-harvestpre-cooling,packhousecoldstorage,reefercoldstorageandwarehousecoldstorage
Hydro-chiller ColdRooms
ReeferContainers SwapBodyReeferContainer
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SHIPPING
Example:140TEUVessel(20Reeferpoints)
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Example Vessel:
SHIFlag: Faeroe Islands Built: Orskov Staalskibsverft AS, Denmark 1989. Class: Bureau Veritas 1A1 Ice B, E0, KMC. Deadweight: 3,223 Mt Gross tonnage: 2,469 Mt Loa: 87,05 m Beam: 14,50 m. Draught: 6.1 m Container capacity: 140 TEU capacity 20 reefer plugs
Projectrequireslongterm)mecharterofasmallreefervesselthatisgearedwithside-thrustcapability
• Cargo cranes: 2 x 15Mt Maritime hydraulic cranes 1 Maritime hydraulic crane of 50Mt • Hatch covers: 2 hatches type Kvaerner folding type each 20.70 x 10m / 4 x 2.50m • Flush steel pontoons on deck 2 and 3 Box hold. • Frozen cargo capacity: 2200 tons of frozen fish (can be used for other frozen product). • Refrigerator equipment: Sabroe refrigerating plant -27 C Tropic, 80m3/Hr air circulation. • Main engine: MAK type 8MU 453 C, 2400 kw/3260 bhp at 560 rpm • Service speed: 12.5 knots • Fuel oil consumption: 6,6 tons of MDO per 24 hours. • Shaft generator: Stamford MHC 434 E, 255 kva. • Require tub boat support when docking (no side –thrust capability)
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Shippingcosts(longterm)mecharter)es)matedatUS$25,271pertrip
• Timecharterquotereceivedfromalocalshippingagent;• Interna)onal)mecharterratesfor<200TEUVessel=US$20/TEU/Day;• OurBaseCaseTimeChartercost(shipping12x20rReeferContainers)=US$55/TEU/day;• Significantcostsavingopportunitybyincreasingthenumberofcontainerspershipment.
Shipping'Cost'Criteria Rp'CostsRe0flagging'Cost'(Rp) 420,000,000''''''''''''
Monthly'Time'Charter'Costs'(Rp) 850,000,000''''''''''''Bunker'Cost '''at'1,500L'per'Day'@'Rp'12,000/L'Port'Charges '''at'Rp'5'million'/'Loading'or'Discharge
Time'Charter'Rp'Costs/Trip 221,250,000'''''''''''' (4#Trips/Month)'Bunker'Cost'(Rp)' 72,000,000'''''''''''''' 4#Shipping#Days/TripPort'Charges'(Rp) 10,000,000'''''''''''''' Per#Trip
Total'Costs'per'Trip'(Rp) 303,250,000'''''''''''' USD#25,271Estimated'Rp'Cost'per'Kg 3,032.50'''''''''''''''''' (based#on#10,000kg#Container)
Monthly'Costs'(Rp) 1,213,000,000''''''''
Time%Charter%Cost%US$%per%TEU%per%day 59.03%%%% 10#Containers#per#trip#Time%Charter%Cost%US$%per%TEU%per%day 19.68%%%% 30#Containers#per#tripTime%Charter%Cost%US$%per%TEU%per%day 11.81%%%% 50#Containers#per#trip
Time%Charter%Cost%US$%per%TEU%per%day 5.90%%%%%% 100#Containers#per#trip
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OurBaseCaseassumesno3rdpartycargoisincludedinshipmentstoandfromJava
ProjectTambora-BaseCasefreightcosts
@StartupPhase1: Rp7,500/Kg(4Reefercontainers/week)@StartupPhaseII: Rp3,192/Kg(10Reefercontainers/week)FullProduc)on(1year):Rp2,554/Kg(12reefercontainers/week)
Phase&1 Phase&II Full&OperationTime%Charter,%Bunker,%Port%Costs%(USD/trip) $25,271 $25,271 $25,271
ATI%Containers%per%Week 4 10 12
3rd%Patty%Containers%per%week
Trip%TurnHAround%(ATIHSurabyaHATI)
ATI%Weekly%Fresh%Produce%(Kgs) 40,000%%%%%%%%% 95,000%%%%%%%% 118,750%%%%%%%%%%
ATI%Produce%Budget%Cost%per%Kg Rp7,581 Rp3,192 Rp2,554Business%Plan%Budget%(Rp/Kg) Rp7,581 Rp3,192 Rp2,554
Additional%Container%Space%Available%to%SBY 94 90 85
BASE&CASE:&East&Sumbawa&to&Surabaya&(Fresh&Produce&only)&One&Way
5H6%Days
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Inclusionof3rdPartycargowouldreducetransportcoststo<Rp500/kg
• CommodityroadtransportfromDomputoEastJavacostRp850–Rp1,200/kg(1way);• 3rdPartydry-bulkcargocommodi)esincludes100,000Mtanimalfeedcorn(May–Sept);• Othercommodi)es(10,000–20,000Mt/Ann)includecoffee,cashewandrice;and• ReturncargofromEastJavaincludecement,sugar,fer)lizer,seedandcommongoods.
ProjectTamboraaimstopartnerwithalocalshippingagenttoachievefreightcosts<Rp500/kg(50%CapacitytoJavaand20%capacityfromJava).
3rdpartycargocanbeloaded/dischargedatKempo&Calabai(publicports).
ATI$to$Surabaya 30%$Capacity 50%$Capacity 80%$CapacitySurabaya$to$ATI 20%$Capacity 20%$Capacity 20%$Capacity
Time$Charter,$Bunker,$Port$Costs$(USD/trip) $25,271 $25,271 $25,271ATI$Containers$(TEU)$per$Week 12 12 123rd$Patty$Containers$per$week 38 58 88
Trip$TurnIAround$(ATIISurabyaIATI)Weekly$Fresh$Produce$(Kgs) 118,750$$$$$$$$$$ 118,750$$$$$$$$ 118,750$$$$$$$$$$$$$
3rd$Party$Dry$Cargo 380,000$$$$$$$$$$ 580,000$$$$$$$$ 880,000$$$$$$$$$$$$$Total$Payload$per$Shipment$(2Iway) 498,750$$$$$$$$$$ 698,750$$$$$$$$ 998,750$$$$$$$$$$$$$
ATI$Produce$Cost$per$Kg Rp608 Rp434 Rp304Additional$Container$Space$Available$to$SBY 70 50 20
5I6$Days
East$Sumbawa$to$Surabaya$(Farm$&$3rd$Party$Cargo)$B$Two$Way
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Ini)allyfreshproducewillbeshippedviaKempoporttoacoldstoragewarehouseinJava
Tominimizetransportcostsandminimizesupplychainlosses,ProjectTamboraintendstodevelopacoldsupplychainfromfarmtotheJavawarehouse(pointofretail).
Loadingportop)onswereevaluated:• Thenearestac)vecontainerportislocatedatBadasinSumbawaBesar(55Nmfrom
Kempo).Thisop)onwouldincuraddi)onaltransportcostsandlonger)metomarket;and• Thenearestseaport(inac)ve)islocatedatKempo(theimmediatepreferredop)on)
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ProjectTamboraplanstodevelopacoldsupplychainthatincludeson-siteportinfrastructure
Tocontroltransportcostsandtoensureregular/scheduledweeklyshipmentstoJava,thecoldsupplychainwillbedevelopedfrompackhousetotheJavawarehouse
• Bathometricchartillustratesadeepwatercoastlinesuitablefordeep-waterport;• On-siteportinfrastructureeliminatestherelianceonpublicroadandpublicport
infrastructureandroadtransportcostswillbereduced;and• Thedeep-waterjegymustbecapableofloadingandoff-loadingvesselsrequiringberthing
depthof7-10m
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Toachieve6dayturn-around,GresikPort(Surabaya)wasiden)fiedasthepreferreddischargeport
• Gresik–Smalllocalportisconsideredmostsuitablefordischargingcontainercargofromgearedvessels(lesspossibilityofportconges)on);
• Itislocatedincloseproximity(10km)toJIIPEIndustrialComplex(ATIColdStorageWarehouseop)on);
• ExportshipmentscanberedirectedviaTJPerak(10kmaway);and• Airfreightexportsarepossible(SurabayaInterna)onalAirport)(30kmfromJIIPE).
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GOODAGRICULTUREPRACTICES(GAPs)
GAPrequirementstoachievebudgetedproduc)onandexportqualityinclude:
• Scheduledplan)ng,irriga)on,fer)liza)on,IPM,weedcontrolandharves)ng;• Expertmanagementisrequired;• Adequatelaborsupplyforfieldac)vi)es(150-160perday);and• Stand–alonelogis)csandcoldsupplychaintoachieveweeklyshipmentstoJava
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PRODUCTIONCOSTS&YIELDS
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Mechanizedharves)ngprovidesopportunitytoreducelaborrequirementsandharves)ngcosts
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Mechanizedharves)ngprac)ceswouldreducelaborrequirementsandharves)ngcosts
ProcessingIndustry
FreshMarket
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FINANCIAL&INVESTMENTANALYSIS
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Managementteamwouldincludeexpertsinvegetableproduc)on,logis)csandmarke)ng
CEO$P.Botha$
Finance$&$Admin$$General$Manager$
Accountant$ Human$Resources$$Manager$
Marke?ng$$General$Manager$
(Expat)$
Opera?ons$$General$Manager$
(Expat)$
Senior$Agronomist$$(Expat)$
Division$Managers$Sweet$corn$Manager$
Chili$Manager$Shallot$Manager$Irriga?on$Manager$
Laboratory$Soil$&$Nutrients$
Pack$House$Manager$
Maintenance$Manager$
Logis?cs$$General$Manager$
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Morethan50%ofrequiredCAPEX(US$2.9)isrequiredforlandacquisi)onandinfrastructuredevelopment
Note:CurrentowneriswillingtoconsideroutrightsaleoranEquityposi)onintheCompany
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INVESTMENTANALYSIS
• 10YearArerTaxCashflow• Tax@28%• DiscountRate@10%• Overheads=22%oftotalcosts
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Budgetedinvestmentreturns(IRR40%)arebasedonconserva)vemarketpricesandabnormallyhighshippingcosts
©DocumentcopyrightofFAC
YearUSD 0 1 2 3 4 5 6 7 8 9 10
P&L Yr1 Yr2 Yr3 Yr4 Yr5Revenue 1,780,333 8,352,785 8,603,369 8,861,470 9,127,314 9,401,133 9,683,167 9,973,662 10,272,872 10,581,058Crop%input%and%marketing%costs (2,328,469) (4,572,121) (4,705,289) (4,838,458) (4,971,627) (5,104,795) (5,237,964) (5,371,132) (5,504,301) (5,637,469)SG&A (852,247) (1,241,595) (1,276,239) (1,311,922) (1,348,676) (1,386,532) (1,425,525) (1,465,687) (1,507,053) (1,549,661)EBITDA (1,400,383) 2,539,070 2,621,840 2,711,090 2,807,011 2,909,806 3,019,679 3,136,843 3,261,518 3,393,928Depreciation (229,947) (229,947) (241,065) (243,196) (245,327) (247,458) (105,777) (105,777) (105,777) (105,777)ProfitBbeforeBtax (1,630,330) 2,309,123 2,380,776 2,467,894 2,561,684 2,662,348 2,913,901 3,031,066 3,155,740 3,288,150Tax%@ 28% 456,492 (646,554) (666,617) (691,010) (717,272) (745,457) (815,892) (848,698) (883,607) (920,682)ProfitBafterBtax (1,173,837) 1,662,568 1,714,159 1,776,884 1,844,413 1,916,890 2,098,009 2,182,367 2,272,133 2,367,468
CashBflowEBITDA (1,400,383) 2,539,070 2,621,840 2,711,090 2,807,011 2,909,806 3,019,679 3,136,843 3,261,518 3,393,928Income%tax 456,492 (646,554) (666,617) (691,010) (717,272) (745,457) (815,892) (848,698) (883,607) (920,682)Working%capital 0Capex:Purchase%of%land (834,242)
Other%capex (1,689,936) (235,642) (49,634) (49,973) (50,322) (50,682) (51,053) (51,434) (51,828) (52,233) (52,233)
CashflowBbeforeBfinancing (2,524,178) (1,179,532) 1,842,881 1,905,250 1,969,757 2,039,057 2,113,295 2,152,352 2,236,317 2,325,678 2,421,013
EquityEquity%financing 3,600,000CashflowBafterBfinancing 1,075,822 M1,179,532 1,842,881 1,905,250 1,969,757 2,039,057 2,113,295 2,152,352 2,236,317 2,325,678 2,421,013
Opening%cash%balance 1,075,822 1,075,822 T103,710 1,739,171 3,644,421 5,614,178 7,653,235 9,766,530 11,918,882 14,155,200 16,480,878Retained%cash 1,075,822 T1,179,532 1,842,881 1,905,250 1,969,757 2,039,057 2,113,295 2,152,352 2,236,317 2,325,678 2,421,013Closing%cash%balance 1,075,822 M103,710 1,739,171 3,644,421 5,614,178 7,653,235 9,766,530 11,918,882 14,155,200 16,480,878 18,901,890
IRREquity%investment (3,600,000) 0 0 0 0 0 0 0 0 0 0Free%cashflow%after%financing 1,075,822 (1,179,532) 1,842,881 1,905,250 1,969,757 2,039,057 2,113,295 2,152,352 2,236,317 2,325,678 2,421,013CashflowBavailableBtoBs'holders (2,524,178) (1,179,532) 1,842,881 1,905,250 1,969,757 2,039,057 2,113,295 2,152,352 2,236,317 2,325,678 2,421,013EquityBIRR 40%NPV $7,229,845
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Three“upsideopportuni)es”havebeeniden)fiedthatwouldpoten)allyincreaseIRRinexcessof150%
Threepriorityupsideopportuni)esexcludedfromthebudgeted“BaseCase”modelinclude:
1. Reduceshippingcostsbyincluding3rdpartycargowithATIcargo(+30%IRR);2. Premiumprices(25%)areachievableforexportqualityproduce(+26%IRR);3. Increasedfarmproduc)onfrom120Hato240HainYear3(+50%IRR).
Increasefarm
producHonto240Ha
Target25%pricepremiumforexportqualityproduce
Include3rdPartydrybulkcontainerizedcargowithfresh
produce
BaseCase:120Ha+HighShippingCost+belowaveragepriceforexportqualitysweetcorn,chiliandshallotsIRR40%
IRR74%
IRR100%
IRR150%
Years1-2
Year3
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Byincluding3rdpartydrybulkcargo,IRRcanbeincreasedby30%(basedonconserva)vemarketprices)from120Ha
©DocumentcopyrightofFAC
YearUSD 0 1 2 3 4 5 6 7 8 9 10
P&L
Revenue 1,780,333 8,352,785 8,603,369 8,861,470 9,127,314 9,401,133 9,683,167 9,973,662 10,272,872 10,581,058
Crop%input%and%marketing%costs (1,166,483) (2,479,799) (2,479,799) (2,479,799) (2,479,799) (2,479,799) (2,479,799) (2,479,799) (2,479,799) (2,479,799)SG&A (852,247) (1,241,595) (1,276,239) (1,311,922) (1,348,676) (1,386,532) (1,425,525) (1,465,687) (1,507,053) (1,549,661)EBITDA (238,397) 4,631,391 4,847,331 5,069,749 5,298,839 5,534,802 5,777,843 6,028,177 6,286,020 6,551,598
Depreciation (229,947) (229,947) (241,065) (243,196) (245,327) (247,458) (105,777) (105,777) (105,777) (105,777)ProfitAbeforeAtax (468,344) 4,401,445 4,606,266 4,826,553 5,053,512 5,287,344 5,672,066 5,922,399 6,180,242 6,445,820
Tax%@ 28% 131,136 (1,232,404) (1,289,755) (1,351,435) (1,414,983) (1,480,456) (1,588,178) (1,658,272) (1,730,468) (1,804,830)ProfitAafterAtax (337,207) 3,169,040 3,316,512 3,475,118 3,638,529 3,806,887 4,083,888 4,264,127 4,449,774 4,640,991
CashAflow
EBITDA (238,397) 4,631,391 4,847,331 5,069,749 5,298,839 5,534,802 5,777,843 6,028,177 6,286,020 6,551,598Income%tax 131,136 (1,232,404) (1,289,755) (1,351,435) (1,414,983) (1,480,456) (1,588,178) (1,658,272) (1,730,468) (1,804,830)Working%capital 0Capex:
Purchase%of%land (834,242)Other%capex (1,689,936) (235,642) (49,634) (49,973) (50,322) (50,682) (51,053) (51,434) (51,828) (52,233) (52,233)
CashflowAbeforeAfinancing (2,524,178) (342,903) 3,349,353 3,507,603 3,667,991 3,833,173 4,003,293 4,138,231 4,318,077 4,503,319 4,694,536
EquityEquity%financing 3,600,000
CashflowAafterAequityAfinancing 1,075,822 (342,903) 3,349,353 3,507,603 3,667,991 3,833,173 4,003,293 4,138,231 4,318,077 4,503,319 4,694,536
DebtDrawdown 0 0 0 0 0 0 0 0 0 0 0Repayment 0 0 0 0 0 0 0 0 0 0
CashflowAafterAfinancing 1,075,822 N342,903 3,349,353 3,507,603 3,667,991 3,833,173 4,003,293 4,138,231 4,318,077 4,503,319 4,694,536
Opening%cash%balance 1,075,822 1,075,822 732,919 4,082,272 7,589,876 11,257,867 15,091,040 19,094,333 23,232,563 27,550,640 32,053,960Retained%cash 1,075,822 V342,903 3,349,353 3,507,603 3,667,991 3,833,173 4,003,293 4,138,231 4,318,077 4,503,319 4,694,536Closing%cash%balance 1,075,822 732,919 4,082,272 7,589,876 11,257,867 15,091,040 19,094,333 23,232,563 27,550,640 32,053,960 36,748,495
IRR
Equity%investment (3,600,000) 0 0 0 0 0 0 0 0 0 0Free%cashflow%after%financing 1,075,822 (342,903) 3,349,353 3,507,603 3,667,991 3,833,173 4,003,293 4,138,231 4,318,077 4,503,319 4,694,536CashflowAavailableAtoAs'holders (2,524,178) (342,903) 3,349,353 3,507,603 3,667,991 3,833,173 4,003,293 4,138,231 4,318,077 4,503,319 4,694,536
EquityAIRR 74%
NPV $17,570,383
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Achieving25%premiumonmarketpriceforexportqualityproduceshippedwith3rdpartycargowouldincreaseIRRby26%
©DocumentcopyrightofFAC
YearUSD 0 1 2 3 4 5 6 7 8 9 10
P&L
Revenue 2,225,417 10,440,981 10,754,211 11,076,837 11,409,142 11,751,416 12,103,959 12,467,078 12,841,090 13,226,323
Crop%input%and%marketing%costs (1,166,483) (2,479,799) (2,479,799) (2,479,799) (2,479,799) (2,479,799) (2,479,799) (2,479,799) (2,479,799) (2,479,799)SG&A (852,247) (1,241,595) (1,276,239) (1,311,922) (1,348,676) (1,386,532) (1,425,525) (1,465,687) (1,507,053) (1,549,661)EBITDA 206,686 6,719,588 6,998,173 7,285,116 7,580,667 7,885,085 8,198,635 8,521,592 8,854,238 9,196,862
Depreciation (229,947) (229,947) (241,065) (243,196) (245,327) (247,458) (105,777) (105,777) (105,777) (105,777)Profit?before?tax (23,260) 6,489,641 6,757,108 7,041,920 7,335,340 7,637,627 8,092,858 8,415,815 8,748,460 9,091,085
Tax%@ 28% 6,513 (1,817,099) (1,891,990) (1,971,738) (2,053,895) (2,138,536) (2,266,000) (2,356,428) (2,449,569) (2,545,504)Profit?after?tax (16,747) 4,672,541 4,865,118 5,070,183 5,281,445 5,499,091 5,826,858 6,059,387 6,298,891 6,545,581
Cash?flow
EBITDA 206,686 6,719,588 6,998,173 7,285,116 7,580,667 7,885,085 8,198,635 8,521,592 8,854,238 9,196,862Income%tax 6,513 (1,817,099) (1,891,990) (1,971,738) (2,053,895) (2,138,536) (2,266,000) (2,356,428) (2,449,569) (2,545,504)Working%capital 0Capex:
Purchase%of%land (834,242)Other%capex (1,689,936) (235,642) (49,634) (49,973) (50,322) (50,682) (51,053) (51,434) (51,828) (52,233) (52,233)
Cashflow?before?financing (2,524,178) (22,443) 4,852,854 5,056,210 5,263,056 5,476,090 5,695,497 5,881,201 6,113,336 6,352,436 6,599,126
EquityEquity%financing 3,600,000
Cashflow?after?equity?financing 1,075,822 (22,443) 4,852,854 5,056,210 5,263,056 5,476,090 5,695,497 5,881,201 6,113,336 6,352,436 6,599,126
DebtDrawdown 0 0 0 0 0 0 0 0 0 0 0Repayment 0 0 0 0 0 0 0 0 0 0
Cashflow?after?financing 1,075,822 N22,443 4,852,854 5,056,210 5,263,056 5,476,090 5,695,497 5,881,201 6,113,336 6,352,436 6,599,126
Opening%cash%balance 1,075,822 1,075,822 1,053,379 5,906,234 10,962,443 16,225,499 21,701,589 27,397,085 33,278,286 39,391,622 45,744,058Retained%cash 1,075,822 V22,443 4,852,854 5,056,210 5,263,056 5,476,090 5,695,497 5,881,201 6,113,336 6,352,436 6,599,126Closing%cash%balance 1,075,822 1,053,379 5,906,234 10,962,443 16,225,499 21,701,589 27,397,085 33,278,286 39,391,622 45,744,058 52,343,184
IRR
Equity%investment (3,600,000) 0 0 0 0 0 0 0 0 0 0Free%cashflow%after%financing 1,075,822 (22,443) 4,852,854 5,056,210 5,263,056 5,476,090 5,695,497 5,881,201 6,113,336 6,352,436 6,599,126Cashflow?available?to?s'holders (2,524,178) (22,443) 4,852,854 5,056,210 5,263,056 5,476,090 5,695,497 5,881,201 6,113,336 6,352,436 6,599,126
Equity?IRR 100%
NPV $26,582,970
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Increasingfarmproduc)onfrom120Hato240HainYear3togetherwithpremiummarketpricesandlowershippingcosts,providesopportunitytoexceedIRR150%
©DocumentcopyrightofFAC
YearUSD 0 1 2 3 4 5 6 7 8 9 10
P&LRevenue 4,450,833 10,440,981 21,508,421 22,153,674 22,818,284 23,502,833 24,207,918 24,934,155 25,682,180 26,452,645Crop%input%and%marketing%costs (1,166,483) (2,479,799) (4,959,598) (4,959,598) (4,959,598) (4,959,598) (4,959,598) (4,959,598) (4,959,598) (4,959,598)SG&A (852,247) (1,241,595) (1,659,110) (1,705,499) (1,753,279) (1,802,492) (1,853,182) (1,905,393) (1,959,169) (2,014,560)EBITDA 2,432,103 6,719,588 14,889,713 15,488,577 16,105,408 16,740,743 17,395,138 18,069,165 18,763,413 19,478,488Depreciation (229,947) (229,947) (241,065) (243,196) (245,327) (247,458) (105,777) (105,777) (105,777) (105,777)Profit?before?tax 2,202,156 6,489,641 14,648,648 15,245,382 15,860,081 16,493,285 17,289,360 17,963,387 18,657,635 19,372,710Tax%@ 28% (616,604) (1,817,099) (4,101,622) (4,268,707) (4,440,823) (4,618,120) (4,841,021) (5,029,748) (5,224,138) (5,424,359)Profit?after?tax 1,585,553 4,672,541 10,547,027 10,976,675 11,419,258 11,875,165 12,448,339 12,933,639 13,433,497 13,948,351
Cash?flowEBITDA 2,432,103 6,719,588 14,889,713 15,488,577 16,105,408 16,740,743 17,395,138 18,069,165 18,763,413 19,478,488Income%tax (616,604) (1,817,099) (4,101,622) (4,268,707) (4,440,823) (4,618,120) (4,841,021) (5,029,748) (5,224,138) (5,424,359)Working%capital 0Capex:
Purchase%of%land (834,242)Other%capex (1,689,936) (235,642) (49,634) 310,027 (50,322) (50,682) (51,053) (51,434) (51,828) (52,233) (52,233)
Cashflow?before?financing (2,524,178) 1,579,857 4,852,854 11,098,118 11,169,548 11,613,903 12,071,570 12,502,682 12,987,589 13,487,042 14,001,896
EquityEquity%financing 3,600,000
Cashflow?after?equity?financing 1,075,822 1,579,857 4,852,854 11,098,118 11,169,548 11,613,903 12,071,570 12,502,682 12,987,589 13,487,042 14,001,896
DebtDrawdown 0 0 0 0 0 0 0 0 0 0 0Repayment 0 0 0 0 0 0 0 0 0 0
Cashflow?after?financing 1,075,822 1,579,857 4,852,854 11,098,118 11,169,548 11,613,903 12,071,570 12,502,682 12,987,589 13,487,042 14,001,896
Opening%cash%balance 1,075,822 1,075,822 2,655,679 7,508,534 18,606,652 29,776,200 41,390,103 53,461,673 65,964,355 78,951,944 92,438,986Retained%cash 1,075,822 1,579,857 4,852,854 11,098,118 11,169,548 11,613,903 12,071,570 12,502,682 12,987,589 13,487,042 14,001,896Closing%cash%balance 1,075,822 2,655,679 7,508,534 18,606,652 29,776,200 41,390,103 53,461,673 65,964,355 78,951,944 92,438,986 106,440,882
IRREquity%investment (3,600,000) 0 0 0 0 0 0 0 0 0 0Free%cashflow%after%financing 1,075,822 1,579,857 4,852,854 11,098,118 11,169,548 11,613,903 12,071,570 12,502,682 12,987,589 13,487,042 14,001,896Cashflow?available?to?s'holders (2,524,178) 1,579,857 4,852,854 11,098,118 11,169,548 11,613,903 12,071,570 12,502,682 12,987,589 13,487,042 14,001,896Equity?IRR 153%
NPV $56,508,037
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Severalotherupsideopportuni)eswouldsignificantlyincreasetheprojectedinvestmentreturns
LivestockEnterprise
IncreasedYields
IncreaseareaChili&
Shallot
OnFarmsales
ReduceferHlizercosts
ReduceharvesHng
costs
Increasetotal
producHon
AddSoybean&Garlic
Processedfoods Cropresidue&processed
wasteisu)lizedaslowcostanimalfeed
(BeeforPorkFeedlot)
Shallots&Chili
6-8monthsinayear
Non-exportqualityproduce
(noshippingcost)
Applycompostproducedonfarm
DevelopSmallholderOut-growers
Cannedsweetcorn&frozenedamameforexports
Mechanizedharves)ngSweetcorn&Shallots
Addi)onalcropsaregoodforDiversifica)on
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PROJECTTAMBORA