COSMOS PROPOSAL

Capital Expenditure

(Amount in USD)

100 Farmers
(500 ha)
A. Equipment

1 Land Leveling and Cleaning 100,050

2 Agriculture Equipments for Land Cultivation 551,955
3 Stevia Machines / Equipments for cultivation 55,918
4 Irrigation
A Drip Irrigation System with Solar Pump/ Panel
10 HP/10KW 4,621,000
B Green House of 50m X 8m 62,730
C Sun Shade Net (70% Light transmittance 4000 Sq. mt.) 1,920
D Mulching Film (0.2 mm) – 20 Microns pour 500 ha 320,000
5 Post harvester Machine
A Stevia Harvester 15,680
B Defoliating Machine 27,850
C Packing Machine 50,276
6 Tipping Trailers (10 Tons Capacity) 22,570
7 Drying Machine for Stevia Leaves 132,325
8 Construction
A Warehouse of 100m x 50m of 4 Compartments of 25m x 428,144
50m each. Basic supply of Steel Structure.
9 Transportation 393,510
10 Excavator with One Shank Ripper. Tree Stump & 128,546
Root removal machine for cleaning.
11 Soundproof Diesel Generator 750 KVA 107,950
Total A 7,020,424
B. Set Up and training Cost 351,021
Total Capital Expenditure (A+B) 7,371,445
*The Capital expenditure per farmer per hectare will be USD 14,743
Recurring Expenditure per year (per hectare and 500 hectare)

(Amount in USD)

A. Per Year
Full Year (Perennial crop) Farmer 100 Farmers

(1 ha) (500 ha)

Land Preparation (Diesel cost) : 50 25000
Hybrid Seeds : 250 125000
Plant Growth material (Four Times) : 1440 720000
Fertilizer/ Pesticides/ Insecticides (Four Times) : 1480 740000
Energy cost: Electricity / water : 100 50000
Manpower Cost Manager/Technical/ : 400 200000

Skilled/ Unskilled Labour (40 man days)

Harvesting Cost (8 days per Year) : 80 40000
Post Harvesting Cost (8 days per Year) : 80 40000
Packing / Transportation & Miscellaneous : 400 200000

(40 Man day per year)

Estimated Recurring Expenses : 4280 2,140,000
B. Add Spare Parts for Misc. : 690 345000
C. Add misc. expenditure @ 5 % : 214 107000
D. Total Recurring Expenditure Cost 5184 2,592,000

(A+ B+C)

Proposed Production/ Revenue (Per year)

(Amount in USD)

Per year
1. Stevia Production Dry Leave Per ha 100 Farmers

500 ha)
Stevia Yield (Four Harvesting per year) : 4 Tons 2000Tons
Selling Price of Dry Stevia Leave (USD per : 2300 2300

Ton)
Revenue (USD) : 9200 4,600,000
Less harvesting loss (10 %) : 920 460,000
 Net Revenue (USD : 8280 4,140,000

Expected Profitability

1. Gross Profit: - Total Revenue – Recurring Expenses

A. per ha 8280 - 5184 = 3096 USD

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B. Per Family (5 ha): 41400 - 25920 = 15480 USD
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C. For 100 Farmer @ 5 ha each: 4,140,000 – 2,592,000 = 1,548,000 USD
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2. Net Profit :- Gross Profit – Interest Cost (3%)

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A. Per Farmer (per ha): 3096 – 442 = 2654 USD
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B. For 100 Farmer @ 5 ha each: 1,548,000 – 221,143 = 1,326,857 USD
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3. Pay back period :

A. Per Farmer ( Per ha) : 5 Year 6 Month

B. For 100 Farmer (500 ha) : 5 Year 6 Month

 FINANCIAL HYPOTHESIS

This economic study is made on the following basics:

1. One ton of dried leaves of stevia delivered to Lome port will be sold

at $2300;

2. The quantity to be harvested every year by 500 hectare will be

2,000 tons per year. The yield will be 4 tons per year total four

harvesting done in a year.

3. Interest rates on loan (3 % project financing) are like following:

a. 100 % of the project cost:

b. Grace period ( Moratorium period): 2 years

c. Loan tenure: 7 years including the grace period

d. Interest rate: 2 % + 1% of insurance (3% in total)

4. The period of working capital (Shipment material) is 15 months