The project is about developing 1,500 hectares idle land and it aims to initially set up a castor bean plantation on a 5,000 hectares and a castor oil processing plant.
The founding group has embarked on an ambitious project to build a financially profitable and ethically managed business, which assures fair returns to investors, and market access to Philippines farmers associations.
It will provide community employment, contribute to poverty alleviation, reduce greenhouse emissions, and contribute to sustaining a healthy environment. At least 2% of the renewable oil can be supplied to the world market. The $3M loan sought is payable within 60 months at 12% per year. We can also offer Joint Venture jointly managed funds, 60:40 share on net profits.
We will be pioneering in the development of the castor oil industry in Luzon area, delivering castor seed to the bio diesel factory to be established in the Philippines and the castor oil to importers in the ASEAN countries, Asia, Europe and North America.
Our business strategy is centered on the Philippines integration to the ASEAN Free Trade Area (AFTA). We desire to contribute to the achievement of Philippine's Millennium Development Goals in the areas of employment and poverty reduction, effective participation in the ASEAN and world trading system and export of value added agricultural products to developed country markets.
Our project aims to initially set up a castor bean plantation on a 5,000 hectares and a castor oil processing plant. The processing plant at its full capacity will produce 7,000 MT of crude castor oil per year.
Project Type: Castor Beans Farming/Contract Farming/Trading/Extraction Plant
To implement these profit and growth objectives in the Castor Beans Farming and Trading Project, Filipino Resources Consumer Cooperative needs an initial investment (loan) is required to develop and plant castor beans at 1,500 hectares land and will serve as working budget.
We are seeking a loan of US$3,000,000, payable within 60 months at a prime rate of 12% per year.
At the same time we are looking for a joint venture with an international group with keen interest in the renewable energy (castor beans oil production) project. The joint venture shall create a management team to manage the funds and the farming project with a 60:40 sharing of the net profits.
Profitability Ratios (first 3 years):
Gross Profit Margin: 78%; Operating Profit Margin: 51%; Net Profit Margin; 33%; Return on investment: 36%; Debt to Equity Ratio: 22%.
The market for this business is global in perspective with growing demand on bio energy.
The demand-supply gap is creating an investment opportunity in oil and oilseed. The global edible oil production is growing 3.5% a year while consumption is rising by 4.5%. The global production of edible oil is 175M tonnes per year. Global oilseed production is growing 2.9% and consumption is 3.18% every year. The demand is higher than the supply.
We are inviting domestic and foreign investors who see the opportunity of this program viable. We are open to joint venture agreement/partnership and the investor participates in the management level and operations.
The prospects for our company's accelerated growth is excellent, with supply contracts underway exceeding $550,000 for the export market (supply contract with China by our partner).
1. To initially develop 1,500 hectares of idle lands now committed to castor beans farming.
2. To provide employment and supports community by way of poverty alleviation.
3. To purchase farm implements including machinery, fuel and part supply, castor seeds, fertilizer etc.
4. Operational logistic support and maintenance of facilities.
• Loan amount: US$3,000,000
• Minimum loan amount: US$1,000,000
• Payback period: within 60 months
• Interest rate: 12% per year
• For joint Venture a sharing scheme of 60:40 in the net profits
Investors can feel free to contact us on Merar for more information.