microbe organic farming business · pdf file3 microbe organic farming 1. executive summary...
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Minerals & Energy
MICROBE ORGANIC FARMING
BUSINESS OPPORTUNITY
www.primaresources.com.au
BIO WORLD Pty Ltd Prima Resources Pty Ltd Business Associates: Malcolm Borgward Tracy Corbin Jenna Shenton
CEO: Michael Shenton Email: [email protected] Mob No : +61 407 919 077
September 2015
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Overview Presenter: Michael Shenton CEO
Table of Contents
1. Executive Summary
2. Business Benefits
3. Technology
4. Cost Analysis
5. Environmental Benefits
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MICROBE ORGANIC FARMING
1. EXECUTIVE SUMMARY • Bio World has developed Microbe Organic Farming Technology
which can provide the following Benefits: • Increases Crop Yields up to a factor of Two (100% Increase)
( Exact improvement depends on Type of Crop/Location) • Provides Farmers with a cost effective and convenient system to
increase crop production - $50 / Ha • Safe and Sustainable System of Farming • Reduces Irrigation Water Usage • Improves soil structure and ability of plants to breathe and feed • Provides food which is grown naturally without the addition of
chemicals • Eliminates Environmental Degradation by using natural growing
processes and eliminates compaction and damage to soil. • Eliminates pollution to water and rivers be eliminating chemicals
and improving surface water runoff
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1. Business Opportunity Capital Cost : $2.0 Million Operating Capital Reqd: $2.5 Million ( First 2 Yrs Ops) Annual Profit: $2.0 Million Payback Period less than 5 yrs ( due to farmers having 1 yr credit)
2. Current Fertiliser Sales - 6 million Tonnes per Yr (Australia) Current Fertiliser Sales - $2 Billion per Yr Current Fertiliser Market Growth – 3.0 % per Yr
3. If MOF accessed 1 % of Current Fertiliser Market (Australia) MOF possible Annual Sales - $20 Million per Yr MOF possible Annual Profit - $11 Million per Yr
4. Opportunities in International Markets Global Current Fertiliser Sales – 180 million Tonnes per Yr Global Current Fertiliser Market Growth – 2.4 % per Yr Global Fertiliser Market Sales - $150 Billion If MOF accessed 1 % Global Market Sales - $1.5 Billion ( Sales)
MICROBE ORGANIC FARMING
2. Business benefits
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1. Opportunity to possibly increase Crop Yields by 100% 2. Cost of MOF Fertiliser $50 / Ha 3. Opportunity to reduce starvation and food dependency 4. Safe and Sustainable System of Farming 5. Provides non-chemical Treatment to improve crop production 6. Convenient delivery system 7. Reduced environmental damage to the land 8. Improved Soil Structure gives open/increased pores for aeration and water delivery to plant roots
MICROBE ORGANIC FARMING
2. Business benefits
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Typical Benefits from Microbe Organic Farming Possible to double the yield of crop compared to normal methods Previous farm trials undertaken at Williams WA in the same field The field was wheat sowed with alternate strips of MOF Crop and Normal Crop
MICROBE ORGANIC FARMING
2. Business benefits
MOF Crop Normal Crop MOF Crop Normal Crop
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Typical Benefits from Microbe Organic Farming Example Using Wheat Crop Consider: Microbe Organic Farming - spread at 100 Kg/Ha Urea - spread at 150 Kg/Ha Specialist Nitrogen 30% + Urea 70% - spread at 100Kg/Ha
MICROBE ORGANIC FARMING
2. Business benefits
Fertiliser Type Cost $/Ha Yield T/Ha
Estd Profit
S/Ha
Estd
Increase
Profit $/Ha
Estd Increase
Profit
Percent
MOF 50 6,000 1,350 648 92.4%
Urea 82 3,118 701 Baseline Baseline
Nitrogen + Urea 84 3,607 811 110 15.7%
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MICROBE ORGANIC FARMING
2. Business benefits Percent %
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MICROBE ORGANIC FARMING
2. Business benefits
Using microbes to boost plant production or protect plants from pests is not a new idea. Indeed, traditional agricultural practices like crop rotation or co-cultivation of legumes with non-leguminous plants have been in use for millennia. There is even a small, but significant market for biological crop treatments. Biopesticides, a category that includes biological agents used as insecticides, herbicides, pesticides, and fungicides have been estimated to constitute a $2.1 billion per year industry — about 5% of the $44 billion per year chemical pesticide industry. A little over half of that market is made up of live microbes; other types of biopesticides include non-microbial agents like insects and biologically-derived compounds like pheromones. The global market for chemical fertilizers is on the order of $150 billion per year; microbial approaches could potentially substitute for or augment this market.
Report : www.Feed The World.info Supported by World Health Organisation
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MICROBE ORGANIC FARMING
3. Technology
FEEDSTOCK STORAGE BALL MILL MICROBE TANK
BAGGING MACHINE PELLETISER DRYER / HEATER
FEEDSTOCK
DELIVERY
Minerals & Energy 11
MICROBE ORGANIC FARMING
4. Cost Analysis
Microbe Organic Farming 5 Yr Financial Plan Summary 2015 to 2019
FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2015-2019
Total Total Total Total Total Total
MOF Production (Tonnes)( $116 /Tonne) 9600 9600 9600 9600 9600 48000
Income ( 1 x Field = 4,000 Ha )
No of Bulk Sales Microbes ( 400
Tonnes/Field=$50/Ha) 18 24 24 24 24 48
Income - Bulk Sales of Microbes- $500 /Tonne $0 $3,600,000 $4,800,000 $4,800,000 $4,800,000 $22,800,000
Total Income $0 $3,600,000 $4,800,000 $4,800,000 $4,800,000 $22,800,000
Capital / Start up Costs $2.0 Million
Monthly Repayments 5 Yrs at 5% Interest $500,000 $500,000 $500,000 $500,000 $500,000 $2,500,000
Outgoings
MOF Production Costs $1,113,600 $1,113,600 $1,113,600 $1,113,600 $1,113,600 $5,568,000
Total Outgoings $1,431,934 $1,431,934 $1,431,934 $1,431,934 $1,431,934 $7,159,671
Actual Profit Before Tax -$1,931,934 $1,668,066 $2,868,066 $2,868,066 $2,868,066 $13,140,329
Cumulative Cash Flow -$1,931,934 -$263,868 $2,604,197 $5,472,263 $8,798,662 $13,140,329
Actual Margin Before Tax 43.84% 58.36% 58.36% 58.73% 59.75% 57.63%
Tax -$579,580 $500,420 $860,420 $860,420 $860,420 $3,942,099
Actual Profit After TaxTax -$1,352,354 $1,167,646 $2,007,646 $2,007,646 $2,007,646 $9,198,230
Minerals & Energy 12
MICROBE ORGANIC FARMING
4. Cost Analysis
Description
Capital Costs Amount $
Front End Loader 100,000
Conveyors 70,000
Ball Mill 100,000
Storage Silos (3) 75,000
MOF Tank 25,000
Storage Tank 25,000
Heater/ Dryer 100,000
Pelletiser 100,000
Bag Filling Station 100,000
Truck/Forklift 150,000
Pallets 100,000
Bags 100,000
Contingency 209,000
TOTAL CAPITAL COSTS 1,254,000
Start Up Costs Amount $
Company Formation 10,000
Insurances 10,000
Commercial Property 20,000
Office Furniture 10,000
Computers/Phones/etc 10,000
Contingency 12,000
TOTAL START UP COSTS 72,000
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MICROBE ORGANIC FARMING
4. Cost Analysis
•Initial Farm Trials Completed •Engage JV Funding Partners •Carryout Detailed Feasibility Study •List Company on Australian Stock Exchange •Discussions in hand with Curtin University for Research Trials •Discussions in hand with WA Dept of Agriculture •Discussions in hand with CSIRO •Lease Industrial Premises •Assemble Production Plant •Start Production and Sales of Microbes Fertiliser •Investigate Global Markets and Overseas Exports
Company Strategy
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1. Eliminates Chemical Run-off and eliminates pollution of water table, streams and rivers. 2. Eliminates Algal Bloom and destruction of fish habitat in Rivers and Estuaries 2. Safe and Sustainable System of Farming 3. Provides non-chemical Treatment to improve crop production 4. Reduced environmental damage to the land 5. Improved Soil Structure gives open/increased pores for aeration and water delivery to plant roots 6. Improves impoverished soils and sands Turns unproductive waste land into productive farmland 7. Eliminates Environmental Degradation by using natural growing processes and eliminates compaction and damage to soil.
MICROBE ORGANIC FARMING
5. Environmental benefits
Minerals & Energy
MICROBE ORGANIC FARMING TECHNOLOGY
BIO WORLD PTY LTD PRIMA RESOURCES PTY LTD
BUSINESS ASSOCIATE:
MALCOLM BORGWARD
MAY 2015
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BIO WORLD PTY LTD May 2015
CEO: Michael Shenton