pladd consultoria s/c Jorge almeida moreira Belém Pará Brasil
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Project Study as pdf

download the entire study as pdf.

 

 

pre financing

 

 

 

 

 

 

 

pladd consultoria Belém

 

 

 

 

 

 

 

investment costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

premises

 

 

 

 

 

 

 

 

pladd consultoria Belém

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

pladd consultoria Belém

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

production costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

financial estimations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

pladd consultoria Belém

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

summary

 

 

Project Funding

Our trader/ business partner will be responsible for the payment of the acquired grains from the affiliated framers.

Total investments necessary to implement the entire project – grinding factory (Oil mill), direct investments, project management, training, working capital and project elaboration – are estimated with R$ 95 millions ($ 41.3 million at 2.3003 BRL/USD).

We already have at our disposal R$ 70 million ($ 30.4 million at 2.3003 BRL/USD) made up by proper resources and by financing through the Superintendência da Amazônia (SUDAM).

Hence it is necessary that our business partner pre-finances R$ 25 million ($ 10.8 million at 2.3003 BRL/USD) to complement the investment capital necessary to launch the entire project.

The payments made by the trader will be paid in part through our consulting remunerations – elaboration, realization, supervision of the project.

The financial chronogram (consult an exemplar calculation) of the pre-financing made by the trader is going to take 18 month after the underwriting of the contract with the SUDAM.

Our business partner and our enterprise shall present a Letter of Intension of Partnership to the SUDAM.

Transportation cost from the fields to the fabric will be covered by the affiliated farmers.

The sales of corn and course meal in the local market are at FOB.

 

Direct Investments

The following table contains estimations of fix investments for the construction of the agro-industrial complex including the grinding facility used to produce soy and sunflower based oil, press cakes/ bran as like as triturated corn.

Expenditures related to the project elaboration and circulating capital are not included in the estimations below. This should make up about R$ 5 million (2.17 million at 2.3003 BRL/USD).

 

Principal operational premises of the project

Runtime of the factory (per year):

330 days

Downtime due to maintenance (per year):

 35 days

Daily grinding capacity:

1,000 tons of soya or sunflower

Maximum grinding capacity (per year) :

330,000 tons

Maximum annual sunflower production

 

 

- Productivity per hectare:

2,200

Kg/ ha

- Available area:

50,000

ha

- Maximal sunflower production:

110,000

tons

 

 

 

Maximum annual soya production

 

 

- Productivity per hectare:

3,000

Kg/ ha

- Available area:

50,000

ha

- Maximal soya production:

150,000

tons

 

 

 

Maximum annual corn/maize production

 

 

- Productivity per hectare:

6,000

Kg/ ha

- Available area:

50,000

ha

- Maximal corn production:

300,000

tons

 

 

Financing of the affiliated farmer

You can consult an exemplar contract of purchase between business partner and trader here.

The contract defines the relation between the two signatories fixing responsibilities and rights of the trader and the affiliated cultivators.

The trader will pre-finance areas superior to 100 hectares belonging to farmers offering real guarantees. Real guarantees are valued by registered engineers.

Areas inferior 100 hectares are financed by the federal government through the Banco do Brasil and the Banco da Amazonia at subsidised interest.

The contract further defines time limits for price fixations, pre-financing, quality of the grains, penalty clauses and real guarantees offered by the farmer. 

 

The pre-financing covers:

  • Inputs (fertilizer, herbicides, insecticides and seeds)
  • Preparation of the lands
  • Services (pulverization and application of herbicides etc. and plantation)
  • Gasoline
  • Manpower

Expenditures related to the harvest are not beneficed by the pre-financing.

Our business partner will buy all input factors. They are going to be received from our enterprise and forwarded to the affiliated farmers like specified in the contract of purchase.

Manpower will be paid in cash. Gasoline will be paid directly by the trader. We are going to contract distributers that will be responsible for delivery of gasoline to the farmer.

The contract defines the measures being taken if a farmer won’t deliver the pre-specified quality. The value of the pre-financing not covered by soya, sunflower or maize is going to be renegotiated for the next harvest or alternatively the real guarantees given by the farmer are going to be executed.

Our business partner pre-finances the value which he/ she considers adequate based on the real guarantees offered and on the “history” of the farmer.

To grant that the bought inputs are used on the combined grounds were will have technicians supervising all the steps from cultivation to harvest.

Transportation costs from the field to the agro-industrial complex are paid by the farmers.

The quantity as like as the price of the grains that are delivered to our installation are specified in the contract.

 

 

Production Costs – Base harvest 2008/ 2009

The quantity of inputs necessary to plant sunflower is actually studies by EMBRAPA E EMATER/PA. The first time sunflower was cultivated in the state of Pará was in March 2007. The ongoing research will permit a clear rural economic zoning for sunflower cultivation in the region.

 

The harvest of the first semester of 2008 has been cropped. The analytical results published by EMBRAPA were excellent:

  • Paragominas – north-eastern region
  • Under application of modern plantation techniques 7 genotypes did show up a productivity superior to national average. Four of them have a productivity above 2,000 kg/ha.       

    -> consult the appendix.Project Study as pdf

  • Pau D’Arco – south eastern region
  • The plantings were realized in absence of modern plantation techniques, i.e. the lands were not prepared adequately like in Paragominas. Anyhow 11 genotypes did show up productivity equal to the national average. Based upon these results we believe that using the modern plantation technique suggested by EMBRAPA we will achieve a productivity level of 2,200 kg/ha   

    -> consult the appendix.Project Study as pdf

Anyhow some further test-planting is necessary to better define the most productive planting period as like as considerations in respect to disease resistance under minimal utilization of fertilizers. The studies will be concluded in 2010.

Direct Plantation: Agricultural farms with more than 100 hectares of arable land using technology and that are able to collect a harvest twice a year.

Direct Plantation Agro-Families: Agro families that use technology and that are able to collect a harvest twice a year.

Investment 1: Area preparation without cleaning

Investment 2: Area preparation with cleaning

The utilization of Direct Plantation permits two harvests a year in the north eastern region of Pará. EMBRAPA is realizing studies to verify the possibility of a second harvest in the south eastern region.

Normally the preparation of the arable land is financed by the Banco do Brasil or the Banco da Amazônia through subsidised credit lines. Input values will be kept up to date relating to the EMBRAPA studies of viability.

It follows, based upon the harvest of 2008/ 2009 an approximation of the value of the necessary pre-financing made by our business partner and final values for the acquiring costs of soya and sunflower:

 

SUNFLOWER:

 

 

 

productivity:

2,200

kg/ha

 

arable land:

50,000

ha

 

available sunflower

110,000

tons

exchange rate: x $ / 1R$: 06.02.2009

0.4374

number of 60 kg bags

1,833,000

#

value of a 60 kg bag

45.00

R$

US$ 19.68

value sunflower harvest

82,500,000.00

R$

US$ 36,085,500.00

 

 

 

 

SOYA:

 

 

 

productivity:

3,300

kg/ha

 

arable land:

50,000

ha

 

available soya

150,000

tons

exchange rate: x $ / 1R$: 06.02.2009

0.4374

number of 60 kg bags

2,500,000

#

value of a 60 kg bag

45.00

R$

US$ 19.68

value soya harvest

112,500,000.00

R$

US$ 49,207,500.00

 

 

 

 

MAIZE/ CORN:

 

 

 

productivity:

6,000

kg/ha

 

arable land:

50,000

ha

 

available corn

300,000

tons

exchange rate: x $ / 1R$: 06.02.2009

0.4374

number of 60 kg bags

5,000,000

#

value of a 60 kg bag

18.00

R$

US$ 8.75

value corn harvest

100,000,000.00

R$

US$ 43,740,000.00

 

Financial Estimation of the Project

Values being laid out by our business parter/ trader per harvest:

It is important to emphasize that the value going to be gained by selling the press cakes/ bran will cover the pre-financing made by the trader as like as the payments related to our services. Furthermore part of the maritime shipment costs will also be covered.

 

The following premises were used:

01. Premises applied:

  • Construction of the agro-industrial complex takes 15 months
  • One more month for fine adjustments
  • Final contract elaboration, training new technologies to farmers, release 100% of the pre-financing to the farmers.
  • Steps of plantation capacity usage:
    • 1st year   70 %
    • 2nd year  85 %
    • 3rd year  100 %
  • Purchase price 60 kg bag - (January 2009)
    • Soya       R$ 45.00  $ 19.68
    • Sunflower    R$ 45.00  $ 19.68
    • Corn        R$ 20.00  $  8.75
  • Sale prices press cakes - (January 2009)
    • Soya        R$ 700.00/t  $ 306.18
    • Sunflower    R$ 550.00/t  $ 240..57
  • Shipping costs:
    • Deliver of grains to the agro-industrial complex is up to the famers
    • Delivery to the port of Itaqui is up to our business partner – the value will be defined later on.

02. Legal agricultural areas

All lands going to be contracted are titled. The plantation limits are determined by the Instituto de Terras do Pará and the Federal Secretary of Environment.

03. Support to our business partner/ trader

To implement our agro-industrial project we depend on the financial support of our future business partner. There are several realization options:

  • Trader finances the project and receives in return discounts on our service bills.
  • Trader turns part of the pre-financing into capital
  • The contract between trader, farmers and our enterprise should at least have the same time limit as the financing conceded by the SUDAM.

 

 

Additional Informations

A. Electric Energy

CELPA informed us that the estimated 4,000 KVA that our agro-industrial complex will consume are available. In case of a future extension of our capacity CELPA will augment the energy delivery.

B. Quality Certificate

  • The contract between trader and farmer defines exactly the quantity and humidity of the grains going to be delivered and fixes the purchase price of the grains.
  • The trader will define based on international standards the quality specifications of the grains.
  • The Federal University of Pará attests the quality of the products that it will analyze.
  • Eletrobrás is actually investing R$ 5 millions in the construction of a laboratory.

C. Logistics

 Of the grains

    • Transportation costs to our factory paid by farmers
    • Delivery dates will be organized to avoid traffic jams at the factory doors
  • Of the press cakes/ bran
    • Local market sales on FOB
    • In case of exportation: transport to the maritime port of Itaqui; shipment to the established destination port defined by the trader.

 Of the oil

    • Transportation by train to the maritime port of Itaqui; shipment to the established destination port defined by the trader.
    • Contracts with transportation firms – land and sea – are going to be signed later on by us.

 Of the corn

    • May be sold entirely or triturated according to definitions made by the trader.
    • May be sold locally or alternatively exported.

 

 

Summary of the Project

 

Project Costs:

95,000,000.00

R$

41,553,000.00

$

  • Direct Investments:

90,000,000.00

R$

39,366,000.00

$

  • Circulating Capital + Project Elaboration

5,000,000.00

R$

2,187,000.00

$

 

Financing:

 

 

 

 

  • SUDAM + own funds:

70,000,000.00

R$

30,618,000.00

$

  • Pré-Financing trader

25,000,000.00

R$

10,935,000.00

$

Supposed exchange rate: 06.02.2009: 2.3003

 

Payment of R$ 25 millions to our business partner:

  • Discount at our service bills
  • Part of the R$ 25 millions as capital and the rest as pre-financing

 

Services supplied by our enterprise:

We will be responsible for:

  • Negotiations with farmers inside pre-defined parameters by the trader
  • Legal and economic consulting related to the financing conceded to the farmers.
  • Supervision of the work done by the evaluators related to the defining of the real guarantees offered by the farmers.
  • Support of the “agro-families” in financing issues
  • Agreement with EMBRAPA and EMATER-PA: training and acquisition of technology and transfer so that the farmers augment their productivity.
  • Distribution of the pre-financed input factors to the affiliated farmers.
  • Reception, analyzes, triturating and grinding of the grains.
  • Stockpiling of the grains, the press cakes and the oil
  • Logistics of the products: transportation to the port of Itaqui and maritime shipment to the destination port specified by the trader.
  • Local market sales and logistics if the trader opts for that alternative.

Our remuneration regarding the services described above will be fixed in the contract. Part of our remuneration will be used to pay back our liabilities with our business partner trader due to the pre-financing made.

 

 

Management cycle of the project

Our future business partner/ trader will sign with our enterprise – pladd consultoria - the contract of support to implement the agro-industrial project in the state of Pará.

Farmers present real guarantees to obtain pre-financing of their harvest by the trader.

Our enterprise analyses the guarantees given by the cultivators and presents a report to the trader

The trader defines the value of pre-financing based upon the accepted guarantees.

Pladd consulting prepares the fiscal financial chronogram related to the pre-financing.

The chronogram is approved by the farmers and the trader.

We providence the acquisition of the input factors and establish the moods of distribution of the same. Further we supervise the usage of the inputs and the development of the harvest.

Our enterprise accompanies the liberation of the monetary pre-financing to the farmers.

We establish the logistics to receive the grains at the agro-industrial complex as like as the payment modalities of the harvest.

Reports based on the delivery of the harvest regarding quality, quantity and value as like as eventual breaches of contract by the farmer due to crop failures or other factors alike.

Stockpiling of the grains in our agro-industrial complex in Marabá.

Start of the grinding process of the grains generating press cakes and oil which are afterwards processed to get the quality of the traders needs.

 

Transportation to the maritime port of Itaqui/MA and organization of the shipment – contracting cargo ships etc. – to the port of destination.

In case of local selling of the course meal:

Part of it may be used as “change” to buy the grains delivered by the farmers.

The rest will be processed stocked and sold (FOB) in the state of Pará by pladd consulting, in the name of the trader.

Periodically we will present to our business partner a survey related to the ongoing activities.

 

 

Please contact us in case of any lack of clarity or questions related to our project.

Kind regards

Jorge Almeida Moreira

 

--- Director ---

 

 

 

 

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