Castor Seeds Farm With a Refinery and Soya Bean Plantation

Debt or equity investment is needed for Green Agriculture with an existing market. ( ROI 30%) To cultivate a 25,000-acre land of castor seeds, to feed 120 tons/day.

Currently, we farm a 16-acre land in the Northern Region and a 9-acre land in the Volta, totalling 25 acres of castor beans which will ensure a continuous supply of castor seeds to the 25,000-acre plantation.

A 25,000-acre Land has been acquired through a lease agreement for 50 years expiring in September 2070 to help expand current production to meet existing demand and off-take quantities.

The company also intends to forward integrate into the processing of castor beans into castor oil in the next 3 years. Castor Oil is a colourless or pale yellowish oil extracted from the seeds of the castor plant and is cultivated around the world because of the commercial importance of its oil which is used in the manufacturing of several industrial chemicals like surfactants, greases and lubricants, speciality, surface coatings, food and beverages, cosmetics, personal care products, pharmaceuticals, etc.

Major players in the Castor industry in Africa include Mozambique, Ethiopia, Kenya, and South Africa. The potential for Castor farming and Castor Oil processing in Africa is huge with substantial bases (Land, Climate and Rainfall) to tap the natural assets. China represents the largest market demand for castor oil. This can be attributed to the rapid growth in the cosmetic, surface coating and pharmaceutical industries across the region. China is followed by Europe, India, the United States and Brazil. China emerged as the largest importer of the product from India and the largest producer of sebacic acid in 2018.

Locally, we face no competition and is poised to enjoy the first movers’ advantage by becoming the first castor beans and castor oil producer in Ghana. With no local competition, we will enjoy a monopoly till other producers join the market. However, the increasing demand for Castor oil due to its uses might attract new entrants but there will be more room to accommodate new entrants without any serious effects on market share.

Major sourcing destinations for castor oil are India, China, and Brazil. India contributes to about 90 per cent of the world's production of castor oil, followed by Brazil and China. India is the world’s single largest producer of Castor seed and oil, accounting for more than 85% of world production, followed by China (7%) and Brazil (5%).

According to Grandview Research, the global market for Castor Seeds and its derivatives was estimated at 813.2 kilotons in 2018 and is expected to grow at a CAGR of 4.1% from 2019 to 2025.

Beroe Advantage Recruitment, a research company, estimates the global market at $1.8bn with a CAGR of 4% between 2019 and 2025. Growth is expected to be driven primarily by the increase in consumption from biodiesel feedstock. Increasing global consumption of castor oil and derivatives by end-use industries for the manufacturing of bio-based plastics, lubricants, coatings, skincare, hair care, and medicinal products is expected to trigger market growth over the forecast period.

Capital expenditure (CAPEX): CAPEX is estimated at a total of $3,131,931 with 56.7% expected to be purchased in Year 1 of operation and the remaining 43.4% to be purchased in Year 2. CAPEX will be funded through debt financing from investment partners. The majority of Year 1 CAPEX comprises the cost of building a warehouse ($864,089) to store the products and motor vehicles ($755,000). The entire Year 2 CAPEX is intended at purchasing plant and machinery for the setting up of the castor oil processing plant.

Working capital: The following assumptions have been made for working capital:
• Trade receivables – 15% of revenue
• Other receivables – 2% of annual salaries
• Inventories – 5% of stocks of seeds, fertilizers, and packaging materials
• Trade payables – 4% of the cost of production
• Other payables – 1% of operating expenses

* We plan to pay back the loan in 5 yrs which will be paid annually from the second year after receiving funds. Interest on the loan will be paid annually too.

We will offer 30% shares to Investors offering up to $5,000,000.00 with and pay dividends of 30% on profits.

Any type of investor is welcome both a silent investor or a hands-on investor.

Investment in 2-year instalments.

Capital expenditure (CAPEX): CAPEX is estimated at a total of $3,131,931 with 56.7% expected to be purchased in Year 1 of operation and the remaining 43.4% to be purchased in Year 2. CAPEX will be funded through debt financing from investment partners. The majority of Year 1 CAPEX comprises the cost of building a warehouse ($864,089) to store the products and motor vehicles ($755,000). The entire Year 2 CAPEX is intended at purchasing plant and machinery for the setting up of the castor oil processing plant.

Working capital: The following assumptions have been made for working capital:
• Trade receivables – 15% of revenue
• Other receivables – 2% of annual salaries
• Inventories – 5% of stocks of seeds, fertilizers, and packaging materials
• Trade payables – 4% of the cost of production
• Other payables – 1% of operating expenses