Castor Beans Farming Start-Up Project Looking For Loan/JV Partnership

Our project aims initially to set up a castor bean plantation on a 5,000 hectares and a castor oil processing plant. We are inviting domestic and foreign investors.

Project aims:
1. To develop initially 1,500 hectares idle lands (committed) for castor beans farming
2. To provide employment and community support in terms of employment and poverty alleviation
3. To reduce greenhouse emissions and contribute to better health preservation
4. To supply at least 2% of the renewable oil for the global market

Nanogenetiks Trading Co. Ltd. has the ambition to build a financially profitable and ethically managed business, which provides fair returns to investors, market access for Philippines farmers associations and dignified employment for rural Philippines, especially women. We will pioneer the development of the castor oil industry in the area of Luzon, delivering castor seed to the bio-diesel factory to be established in the Philippines and the castor oil to importers in the ASEAN countries, Europe, North America and Asia.

Philippines integration to the ASEAN Free Trade Area (AFTA) is central to our business strategy. We will contribute directly to the achievement of Philippines’s Millennium Development Goals in the areas of employment and poverty reduction, effective participation in the ASEAN and global trading system, and export of value added agricultural products to developed country markets.

Our project aims initially to set up a castor bean plantation on a 5,000 hectares and a castor oil processing plant. At full capacity our processing plant will produce 7,000 MT of crude castor oil per year.

1. Project Title: Castor Beans (Ricinus communis)
A Potential Viable Biodiesel Feedstock

2. 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 the company needs:

An initial investment (loan) is required to develop and plant castor beans at 1,500 hectares land and serve as working budget. We are seeking a loan of US$3M, payable within 60 months with a prime interest rate of 12% per year.

We are looking for a joint venture agreement with an international group with interest into the renewable energy (castor bean oil production) project.

The joint venture shall be created to manage the funds and the farming project with a 60:40 sharing on net profit and to protect the interest of parties concerned.

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 the growing demand in bio energy as substitute to the highly priced and diminishing supply of fossil base fuel source. Implementation of the above program will help the Philippine economy in terms of bio fuel supply, local revenues and import allocations. Also, in pursuit of sustainable food security and renewable energy program in Asia, our operational plan emphasizes the drivers of change that should lead to improvements and greater impacts centered onto the following objectives:

a. Poverty Alleviation for the Agricultural Base workers sector
- Sustainable Livelihood program
- Employment on the rural sector
b. Renewable Energy source
- Localized training and intervention
c. Education and training on the use of organic products
- Savings and reduction of farm input cost
- Technology transfer and sharing
d. High value crop accreditation and certification
e. Trading of certified organic products on the national and international level
f. Development and implementation of a Renewable Energy Program for the Philippines

The demand-supply gap is creating an investment opportunity in oil and oilseeds. The global edible oil production is growing 3.5 per cent a year while consumption is rising by 4.2 per cent. The global production of edible oils is 175 million tonnes a year. Global oilseed production is growing 2.9 per cent and consumption 3.18 per cent 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 various considerations on the investment invitation such as joint venture agreement and/or partnership. The investor is invited to participate in the management level and operations and to become a member of the Board of Directors.

The prospects for our company’s continued growth are excellent, with supply contracts underway already exceeding $550,000 for the export market (supply contract with China).