Date post: | 24-May-2015 |
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ORGANIC RICE PRODUCTION
ORGANIC RICE FROM COLOMBIA
MECHANICAL TRANSPLANT
ORGANIC RICE PRODUCTION
CHARACTERISTICS OF THE PROJECT
Objective: PRODUCTION AND EXPORT OF ORGANIC RICE USING THE ASIAN TRANSPLANT MECHANICAL SYSTEM
Area Phase 1: Month 0 to 18 = 300 hectaresPhase 2: Month 19 to 60 = 600 hectaresPhase 3: Month 61 to 120 = 800 hectaresPhase 4: Month 121 to 240 = 1,000 hectares
Time 20 years
Production ~4,300 MT (20 years average production)
Competitive Advantages 1. Competitive price around $1.8 Kg , maximizing opportunities from existing Free Trade Agreements.
2. Strategic partner (“Servitrasplantes”) with more than 40 years of experience in the rice industry (from production to commercialization)
3. Products and processes certified by international organizations. USDA Organic and Kosher
Capital Requirements Considering leasing of land: ~USD$ 8.2 Million
ORGANIC RICE PRODUCTION
WHERE? COLOMBIA
WHY COLOMBIA? Colombia is strategically close to main US ports Colombia signed a Free Trade Agreement with US and
Canada Colombia can produce rice each month of the year
Production zone:Available 1,800 hectaresNorth Colombian Coast
WHERE IN COLOMBIA? The Organic Rice will be produced in Carmen
de Bolivar, Bolivar, Colombia 62 miles from Cartagena ‘s Port 94 miles rom Barranquilla’s Port Product transportation can be executed by
fluvial navigation
ORGANIC RICE PRODUCTION
THE TRANSPLANTING SYSTEM:Technological Package
Careful management of the plant, from seed to fruit, is critical to control inputs in the production of both Organic and other Gourmet rice varieties.
PROFITABLE AND SUSTAINABLE AGRICULTURE
Land Preparation
Seed Treatment
SeedManagement
Mechanical Transplanting
Weed Control
Harvesting
State-of-the-art technology adds value to each of the critical steps in the rice planting process.
ORGANIC RICE PRODUCTION
PRODUCTS International Certified ORGANIC RICE (Brown and White)
Product Characteristics:
White/Brown rice type A (Between 4% and 10% broken rice)
Medium grainPackaging: As requested by
importer.Certified product and processes by an international certifying firm, i.e. SGS, Ecocert
Product and processes certified under the Colombian law regulating the ecological production of organic products: Regulatory Norm # 187 of Colombian Ministry of Agriculture
Homologated USD Organic Certified/ Kosher.
Compelling Product Alternatives:
A. Aromatic Varieties: Basmati Jasmine Arborio
B. Specialty Rice: Wild Rice
ORGANIC RICE PRODUCTION
P&L Forecast (US$): 20 years
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Revenues $1,551,889 $3,103,778 $6,026,035 $5,478,214 $5,478,214 $7,439,138 $8,011,379 $8,011,379 $6,866,897 $8,583,621
Direct Costs 2,116,374 2,692,238 2,748,652 2,720,041 2,838,405 4,177,738 3,743,850 3,634,622 3,800,546 4,017,183
Indirect Costs 585,444 624,787 642,820 642,820 642,820 766,006 766,006 766,006 766,006 766,006
Earnings Before Taxes (1,984,584) (1,063,246) 1,766,078 1,314,380 1,159,053 1,863,827 2,929,977 3,206,454 1,833,066 3,271,024
Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20
Revenues $9,741,942 $10,350,814 $10,959,685 $10,350,814 $10,350,814 $9,741,942 $11,568,556 $9,741,942 $10,350,814 $10,959,685
Direct Costs 4,821,116 4,828,647 4,622,783 4,687,783 4,625,531 4,786,455 4,638,031 4,598,894 5,120,313 4,538,031
Indirect Costs 922,185 922,185 922,185 922,185 922,185 922,185 922,185 922,185 922,185 922,185
Earnings Before Taxes 3,407,400 4,064,426 4,766,550 4,047,864 4,175,024 3,661,636 5,533,507 3,701,215 3,842,741 5,137,247
ORGANIC RICE PRODUCTION
PROJECT CHARACTERISTICS: Assumptions
FIELD PRODUCTIVITY- Average productivity in proposed area is
around 100 and 110 sacs per hectare.- The financial model considers a 20 years
average of ~89 sacs per hectare.
WHEATHER RISK:
- The project includes a permanent crop insurance policy.
LAND OPTIMIZATON- Mechanical transplanting system allows
up to 3.5 harvests per year.- The project only considers an average of
1.7 harvests per year.
INDUSTRIAL PROCESS- At the the farm: Drying, cleaning and
husking.- At the port warehouse: Polishing and
Packaging.
ORGANIC RICE PRODUCTION
MARKET TARGETS
SELECTED MARKETS:
Developed countries with organic consumption culture
Organic and gourmet specialized retailers.
Exporter
Importer (Margins 8% - 10%)
Broker Commission (5% -10%) Distributor
Margin (20% - 30%)
Retailer Margin (25% - 35%)
PRICE STRATEGY: RETAILER´S OWN BRANDFrom the exporter (Project), to the retailer through the broker.
SELECTED COUNTRIES
IMPORTS 2011* (USD ´000)
CUSTOM TARIFFS
United States 53,480 0%
United Kingdom 239,659 USD 56.1/MT
Canada 41,690 0%
Belgium 134,768 USD 56.1/MT
* Husked / Brown Rice (not necessarily ORGANIC); there is not specific info for Organic. Source: www.macmap.org
ORGANIC RICE PRODUCTION
MARKET COMMERCIALIZATION
1. We have two letters of intent from EMIC and AS, two international trading companies with operations in Norway and Australia. They have expressed interest for more than 1,000 metric tons per year.
2. Proexport, the government agency for promoting Colombian exports recently opened business unit to support international trading of organic products. Proexport is supporting the Project.
3. We started contact with brokers and retailers in USA:
Brokers: Tampa Import-Export: www.tampaimportexport.com Los Andes Ventures, LLC: www.losandesventures.com Pacific Soybean & Grain: www.pacificsoy.com P2M Consulting Services LLC Anfertru Investments: www.anfertruinvestments.com
Specialized Gourmet and Organic Retailers:
BDM Central Markets: www.centralmarket.com Whole foods: www.wholefoodsmarket.com Bristol Farms Supermarkets: www.bristolfarms.com Sprout Farmers Markets: www.sprouts.com Trader´s Joe: www.traderjoe.com Fresh & Easy: www.freshandeasy.com
ORGANIC RICE PRODUCTION
MAURICIO URIBE MBA - General Director. Country Manager for multinational marketing companies for more than 10 years, in Colombia, Mexico and Venezuela. Rice Mill Manager during 2 years in charge of production, quality control and commercialization. Negotiation experience in Asian countries like Japan, Korea, and China. www.mauricio.uribe.info
CAMILO URIBE – General Manager. +30 years in the rice industry. Rice Mill Manager. 8 years in Costa Rica leasing agricultural machinery for rice projects. Extensive experience in agricultural machinery and Asian transplanting and harvesting equipment. Expert in land improvement for transplantation of rice and puddling leveling. Member of the Chinese Mission for Central America
DIEGO URIBE – Rice consultant and entrepreneur for 50 years. Rice transplant researcher for more than 40 years. First rice farmer who planted rice with transplanting systems in Colombia in the 70`s. Member of the National Rice Federation between 1979 and 1984. Awarded “Famer of the Year - 1985”.
MANAGEMENT TEAM
SERVITRASPLANTES LTD.• Family business pioneers in technology transfer and
application of the Asian mechanical rice transplanting system
• +40 years of experience in rice planting and production• +10 years of experience in rice milling and processing • Validated technological package.• Consultants for private companies in Colombia,
Venezuela, Ecuador, Guatemala, Costa Rica and Spain.
ORGANIC RICE PRODUCTION
Economic
Impact
SocialImpact
Environ-mentalImpact
PROJECT´S IMPACT
The project is structured considering the application of the Social Responsibility, Fair Trade and ecological principles.
WATER• The system saves 50% in the use
of water vs. other planting systems.• Returns non-contaminated water
to the ecosystem.
SOIL CARE: • The system adds 1 ton of compost
per hectare, per crop, adding EMO (Efficient Micro-organisms and minor nutrients)• Does not use chemical inputs.• Superficial preparation with light
machinery• Use of organic fertilizers.
EMPLOYMENT WITH BENEFITS • Employment to 217 low income families.• Opportunity to generate entrepreneurial activities in
the region.
COST SAVINGS• The system saves between 35%
and 40% vs. other system´s costs.
PRODUCTIVITY INCREASE• The system increases field
production by 15%.
VALUE ADDED PRODUCT• Higher selling price. Around 3
times vs. commodity product.