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PHILIPPINE COFFEE PLANTATION PROJECT

David Helvey Tue, 2013-04-02 11:29

David Helvey · Tue, 04/02/2013 - 11:29

Business

Business Overview: 

The Project:     Key members of the Management Group of Golden Sunburst Coffee Company Inc. (“GSCCI” or the “Company”), who are an experienced team of agricultural, business and legal experts, have acquired a sixty (60) year right by way of an irrevocable legal and official assignment of 3,806± hectares (Ha or Has) more or less of agricultural lands for the development of a coffee plantation and other agricultural pursuits, located in the Province of Bulacan, Philippines, the first Province north of Metro Manila. 

Project Type: 
Industry: 
Project Location: 
Manila, BUL, 000000
Philippines
What are your future milestones, and how much capital will you need to achieve each of the milestones outlined?: 

Financing:        The Company will source equity financing in the order of US$12.5±Million for the planting of 350 Has/year over a four (4) year period for a total planted area of 1,400 Has of Arabica (70%) and Robusta (30%) seedlings. 

What is your total and operating cash burn (the amount you're spending) per month? : 

The land is held by the Company by way of an irrevocable sixty (60) year assignment of agricultural land signed by the local Municipal Government, as well as by the local Dumagat Tribal Leaders, thereby confirming all parties are committed to this Project.  By definition, in addition to fruit & vegetables and other agricultural products such as coffee, “agriculture” also includes animal husbandry, forestry and fish farming, and these are other sources of revenue for the Company.

How many future rounds of financing do you project? : 

Financial Summary:    A 25 year Financial Spreadsheet analysis showing ONLY coffee & honey projected revenue has been compiled to support this Project, and is also available to qualified Investors.

Services Desired: 
Capital Broker/Dealer
Who is the Customer?: 

·         Coffee is the world’s most heavily traded commodity next to oil;

·         Coffee follows water as the 2nd largest liquid consumed in the home  (quote from Nestle promotional brochure); 

·         Coffee follows water and tea as the 3rd largest liquid in annual worldwide consumption;

·         Coffee is the world’s seventh largest agricultural export by value;

·         Coffee trees typically produce for 50+ years;

·         Worldwide coffee sales grow at an annual rate of 2+%;

·         China coffee consumption is growing at a 20+% annual rate;

·         The Philippines is a known coffee producer and lies due south of the important China market, a two (2) hour flight away, with a centuries old successful commercial relationship and direct airline & shipping connections for delivery of product.

What is the Customer Pain that you are solving?: 

Jobs:    The Project will provide an estimated 370 full time jobs and another 280 part time jobs by year 6 of operations (an estimated 650 total jobs), granting priority of hiring (subject to qualifications) to local tribal or village members who generally live locally in an impoverished area. 

Names of any current or recent customers: 

·         Coffee is the world’s most heavily traded commodity next to oil;

·         Coffee follows water as the 2nd largest liquid consumed in the home  (quote from Nestle promotional brochure); 

·         Coffee follows water and tea as the 3rd largest liquid in annual worldwide consumption;

·         Coffee is the world’s seventh largest agricultural export by value;

·         Coffee trees typically produce for 50+ years;

·         Worldwide coffee sales grow at an annual rate of 2+%;

·         China coffee consumption is growing at a 20+% annual rate;

·         The Philippines is a known coffee producer and lies due south of the important China market, a two (2) hour flight away, with a centuries old successful commercial relationship and direct airline & shipping connections for delivery of product.

What is the Target Market?: 

 Markets include mainly local sales where the Philippines only produces 40% of annual coffee demand for local consumption, as well as China, with possible exports to North America, Europe and Japan.  Management has good connections for distribution into the Chinese market which is expanding at a rate of 20% per year versus world annual growth of 2+% per year.

 

 

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How big is the Target Market in terms of Annual Sales?: 
$200M-$500M
Sales/Marketing Strategy: 

 

Profitability:     Coffee plants start producing by year three (3) after planting and hit peak production by year six (6), with a life span of 50+ years.  Conservative estimates show peak production of Arabica plants to be 1.5+ Metric Tonnes (“MT”) per Ha, and Robusta at 2.0+ MT/Ha.  The Company will see profit by year five (5), and from there, may plant additional areas beyond the initial 1,400 Has from its own seedling plant, covering additional costs from profits and generating even higher revenues than projected.  An estimated two (2) bee colonies (hives) will be provided per Ha for cross pollination of the coffee plants, a proven way to increase production.  Byproduct is honey and pollen which will generate substantial revenue as well.

Provide use cases : 

Other Sources of Income:        Other sources of income that can be developed on or from the property include but are not limited to:  carbon credits, seedling sales, pollen production, and other fruit & vegetables.  Monsanto is a provider of corn seed, and we can also plant squash, sweet potato, cassava, spinach, okra, ampalaya, cabbage, eggplant, string beans, radish, pineapple, mango, avocado, kalamansi, papaya, peanuts, and coconut, etc.  In addition, we can develop livestock (chicken, duck, goats, pigs, cattle), fish farming (local fresh water species), forestry products, mining, private brand coffee, and a coffee shop chain, etc., many of which provide return of investment with profit within several months to one year.

Competition: 

TBD

One-line Pitch: 

Seedlings Supply:        Arabica and Robusta coffee plant seedlings are available from known suppliers in the Philippines (Nestle, Cavite State University & other growers), and also from Hawaii and throughout central & northern Africa, including among others, Tanzania, the Democratic Republic of the Congo, Kenya and Ethiopia.

Business Model: 

Management:   Aside from the agricultural, business and legal specialists on the GSCCI management team, specialists in coffee production and post-harvest will also be employed or consulting to the Company.  Upon funding, the Company will be hiring senior management personnel, all with agricultural and business experience, and all of whom will be reporting to the Management and Financial Team overseeing the project.  Hiring for local office and field positions will be overseen by management.

Product/Services Overview (what does it do): 

Interesting facts underlining the positive aspects of the Project:

 

·         Coffee is the world’s most heavily traded commodity next to oil;

·         Coffee follows water as the 2nd largest liquid consumed in the home  (quote from Nestle promotional brochure); 

·         Coffee follows water and tea as the 3rd largest liquid in annual worldwide consumption;

·         Coffee is the world’s seventh largest agricultural export by value;

·         Coffee trees typically produce for 50+ years;

·         Worldwide coffee sales grow at an annual rate of 2+%;

·         China coffee consumption is growing at a 20+% annual rate;

·         The Philippines is a known coffee producer and lies due south of the important China market, a two (2) hour flight away, with a centuries old successful commercial relationship and direct airline & shipping connections for delivery of product.

Technology

What makes the technology/business unique and have a defendable competitive advantage?: 

Management:   Aside from the agricultural, business and legal specialists on the GSCCI management team, specialists in coffee production and post-harvest will also be employed or consulting to the Company.  Upon funding, the Company will be hiring senior management personnel, all with agricultural and business experience, and all of whom will be reporting to the Management and Financial Team overseeing the project.  Hiring for local office and field positions will be overseen by management.

Describe in detail the technology used in the Project - Address the innovation in significant detail : 

Location:          The Project is located within easy access to main highways connected to transportation hubs (Manila, Subic Bay & Clark Airbase) for shipping purposes.  Water access for irrigation, as well as elevation & soil pH levels are at acceptable levels.  Power at the site may initially be provided by generators, with power services available at the office/plant facility which will be located a few Km away from the site.

What are the principles of the technology? : 

Seedlings Supply:        Arabica and Robusta coffee plant seedlings are available from known suppliers in the Philippines (Nestle, Cavite State University & other growers), and also from Hawaii and throughout central & northern Africa, including among others, Tanzania, the Democratic Republic of the Congo, Kenya and Ethiopia.

What, if anything, has been proven (and how far is this from a commercial scale)? : 

Land:   The land is held by the Company by way of an irrevocable sixty (60) year assignment of agricultural land signed by the local Municipal Government, as well as by the local Dumagat Tribal Leaders, thereby confirming all parties are committed to this Project.  By definition, in addition to fruit & vegetables and other agricultural products such as coffee, “agriculture” also includes animal husbandry, forestry and fish farming, and these are other sources of revenue for the Company.

What challenges/risk does the technology face for commercialization?: 

Risk Management:        The Company will implement a Governance, Risk Management and Compliance Program (“GRC”; a forensic tracking audit system) upon closing of the proposed financing, providing regular daily updates to the Management and Financial Team and other approved parties on the use of funds and daily operations of the project.

Patent Numbers (Filed/Approved): 

NA

Team

NameTitle
Other
David Helvey

Financials

Amount Sought: 
$12,500,000
If raising funds, what shall the funds be used for?: 

Financing:        The Company will source equity financing in the order of US$12.5±Million for the planting of 350 Has/year over a four (4) year period for a total planted area of 1,400 Has of Arabica (70%) and Robusta (30%) seedlings. 

Pre-Money Valuation: 
$10,000,000
Funding Received to Date: 
$1,000,000
Amount invested by Founders: 
$1,000,000
Funding Stage: 
Pre-Revenue

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