Business Plan Presentation Cotton Seed Treatment

Transcript:Business Plan Presentation Cotton Seed Treatment:
Business Plan Presentation Cotton Seed Treatment Plant AAM – Associação Algodoeira de Moçambique Maputo, July 2020 1 Executive Summary Background The cotton subsector is one of the most organized and impactful subsectors in Mozambique. In the last years an average of 216.000 farmers, produced seed cotton in an area of 152.000 Hectares, with an average yeld of 0.46 TN/HA, wich results in an average year production of 74.000 TN of seed cotton. Despite its great impact, the seed currently in use in the subsector remains degenerate and, therefore, not very productive, either in the field or in the ginneries and an improve in the quality seed can generate a greater impact per USD invested. Objective AAM plans to improve the farmers cotton seed quality by implementing a seed delinting, cleaning, coating and packaging plant. In order to decrease the investment risk, in the inception phase, each Ginnery will purchase individual equipment, at it´s own seed capacity need, with co-funding raised by AAM and Technical assistance and training provided to all ginners staff, who will run the small seed plant and field team. With the learnings from the 2 years inception phase in the 3rd year AAM will do the final decision to go for a seed treatment plant in Nampula province that will treat the seeds from all the ginners. Investment The inception phase results in a investment of around 184.000 USD per each 100 Tones/Year of seed need for each Ginnery. The second phase will need an investment of between 1.1 M USD and 4 M USD for a 3.000 Tones/Year of seed need and between 1.8 M USD and 5.7 M USD for a 5.000 Tones/Year of seed need and will promoted by a cooperative created by the AAM ginnery members with possible entries of some subsector partners. Impact The seed treatment plant can have a 10 Years cumulative positive impact of around 95 M USD on farmers, around 445 USD of income increase per farmer. For the Ginners, the seed treatment plant can have a 10 Years cumulative positive impact of around 128 M USD and for IAM the same impact will be around 4.6 M USD. 2 Content 1. Brief analysis of the cotton sector Pag 4 10. Location and facilities Pag 41 2. Short and medium term cotton seed needs 11. Environmental Assessment requirements Pag 45 and availability Pag 8 12. Legal and Legislation requirements