cambodia agro project

8/12/2019 Cambodia Agro Project

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Why Agriculture?

Recent Deelopments in the !orld hae led tolesser emphasis on !hat is perhaps the mostimportant resource re"uired # $ood

%his has lead to immense scarcity of food and!ater &een in the most deeloped countriesof the !orld.

%his is the right time to inest in agriculture asdemand of food is high and so are the prices'ensuring higher profit and self'sustainance.


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Why Cambodia? Chiefly an agricultural country !ith abundance

of natural resources &!ater and optimaltemperature.

(hortage of capital among the goernmentand people

%his has lead to use of primitie methods ofagriculture and less usage of aailabletechnology

Despite these shortcomings cambodia is oneof the !orlds highest e)porter of rice &and is allset to become one of the biggest e)porter ofcassaa as !ell.


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Why Cambodia? *contd+

(trategic lin, from the !est to the east # ifdeeloped &cambodia can act as a high!aybet!een countries li,eChina&-apan&ietnam&%hailand and the

countries of the !est li,e /(A and europeancountries

People are ery friendly &innoatie and hard!or,ing # only the capital is missing

0mmense potential due to its long coastline #many centres can be deeloped for trade


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Legalities

Cambodia &li,e its south'east asiancounterparts has no la! to ensure fullo!nership of land by a foreign national.

1o!eer & there is an option of forming acompany !ith atleast 234 cambodian holdingand then o!ning of land by the company.

Another option is the goernment lease !hichif applied has a fi)ed rent of /(D 35 perhectare per year. Een Priate lease is anoption.


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Economics of doing agri projects inCambodia

%here are 6 methods of doing agri projects78ethod 9ne

Priate lease of 355 hectares of land for :5

years at a rent of ma)imum 355 /(D perhectare per year

8ethod %!o

9!nership of :5 hectares of land by

formation of a company

$or all the costs mentioned henceforth & theyare the !orst case scenarios !herein the yieldta,en is minimum and the /(D buying rate is0;R


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Economics *contd+

8ethod 9ne7355 hectares = 6> acres of land

3:5 acres cassaa

355 acres sugarcane 3 acres pig farm and cultiation for pigfodder and a house


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Economics*contd+

E)penses for method one for @ear 3 *costs in/(D+7

Rent7 /(D 355 355 hectares per year

= /(D 35&555 per year

Cost of planting (ugarcane7 /(D 3555 B ha

= /(D >3&55 for 355 1a

Cost of planting Cassaa7 /(D


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Economics *contd+

(etting up a residence Bstoreyard

/(D 65&555

$ood and $odder for pigs7 /(D 35&555 peryear

8iscellaneous e)penses7 /(D 2555

%otal Cost of set up for @ear one including

labour&trael&land leelling&seeds&fertiliersetc 7

/(D 3&>2&655

0;R *3 /(D=


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Economics*contd+

E)pected sale in method one for @ear one7

@ield of sugarcane per hectare 7 Ag 5tonnes !orst case

$9 price of sugarcane7 F>5 per tonne

(ale price of sugarcane in 3 hectare7 F655

(ale Price of sugarcane in 3 acre7 F33


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Economics*contd+

E)pected sale in method one for @ear one7

@ield of cassaa per hectare 7 Ag :5 tonnes!orst case

$9 price of cassaa7 FG per tonne

(ale Price of cassaa in 3 hectare7 F6>&


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Economics Contd

%otal (ale Price in @ear one !ithout Piggery7

/(D 6&


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Piggery

We thin, it !ill ta,e 3 months to start sellingpigs &and by that time&the 25 procured pigs

!ould hae gro!n to around 255 *!orst case+

We then can sell around 625 pigs eery 2&G2&555Piggery 7 %!ice selling 625 pigs7 0;R2


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8ethod 6' 9!ning :5 hectares ofland

Cambodia is going through a sea change interms of increase in foreign tourists andforeign inestment.

%ourism has risen by 624 in last > years and,orean and chinese companies continue tobuild large scale projects there

%his means in about 2 more years&the land

and property prices are going to increasemanifold&ensuring that any inestment madeno! on a fi)ed asset such as land is going toyield great margins.


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8ethod 6' 9!ning :5 hectares ofland

Cambodia is going through a sea change interms of increase in foreign tourists andforeign inestment.

%ourism has risen by 624 in last > years and,orean and chinese companies continue tobuild large scale projects there

%his means in about 2 more years&the land

and property prices are going to increasemanifold&ensuring that any inestment madeno! on a fi)ed asset such as land is going toyield great margins.


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Economics

Fixed Assets investment :

Land7 /(D G5&555 *0;R 2> Lacs+

1ouse&storage @ard and (table for pig7 /(D62&555 *0;R 32 Lacs+

Operational expenses

Cost of Plantation of sugarcane7 /(D 3:&555*/(D 3555 per ha+

Cost of Plantation of cassaa7 /(D 35&655

*/(D


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Economics

uying of 25 pigs = /(D 255 9erall cost to!ards labor&doctor&feeding etc =

/(D ::&255*shed included aboe +

%otal 9perational e)penses = 0;R


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%otal 8argins

%otal sale of products = 0;R >:.2 Lacs

;o margin in the form of moneyBli"uiditygained this year

ut %he price of land&!hich is strategically !ellimportant and highly prone to deelopmentdue to irrigation project is bound to rise in the

first year&so a gain in the fi)ed assetinestment is certain.


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Economics

@ear 3 Economics

%otal (ale price of sugarcane =

/(D >5 5 tonsBha 36 ha = /(D ::&2&:G5*0;R 62.2 Lacs+

Piggery is not considered in year one asbefore


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Economics

Year 2 expenses

;o rent this time& only pig fodder for remaining< months*3 months e)penses for pig !ritten

earlier+ # 36&555 /(D 8isc E)penses H seeding for cassaa /(D

555

%otal E)penses for @ear 6 = 62&555 /(D *0;R32 Lacs+


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Economics

Year 2 Sale:

(ale of sugarcane 7 same as year 3 7 /(D::&2&>55 *0;R 62.2 Lacs+

(ale of pigs 7 /(D G5&555 *0;R 25.> Lacs+

%otal (ale = 0;R G:.G Lacs %otal 8argin @ear 6 !ith 32 lacs e)penses =

0;R .G Lacs

Pi


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Piggery %here is a reason !hy !e hae specifically

chosen pig farming

%he main reason is that it is the mostconsumed meat in the globe # statistics sayaround >54 of the meat eating !orld

consumes por, (econdly&it is consumed almost in any house

hold in cambodia # but they import many ofthe pigs' so in this !ay&!e !ill hae a better

local mar,et reach Lastly&it ta,es just months for a pig to

become 5 Ig&!hich means &selling them is

easier


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(ummary

As said there are many reasons as to !hyinest in agriculture and specifically cambodia.

%here are 6 attractie options 7 Leasing eitherpriate or goernment land & or o!ning :5

hectares of land Leasing seems to gie the better returns in

terms of li"uidity and cash.

ut 9!ning land means lesser ris, factor andless dependency on purely agricultural yieldsand higher gain in terms of fi)ed assetinestment.


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%han,s

%han,s for going through these slidespatiently.

We !elcome any suggestions regarding the

land share of crops or introduction of a ne!cash crop or improing the "uality ofinestment in general

%han,s once againJJJ

cambodia agro project

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