Moringa Economics

The Costs of Establishing and Producing Moringa for Food and Fuel

More than any other plant, the Moringa ( Oleifera. ) has played a vital part in the life of human kind and has been central to the development of culture and food. The Moringa is a functional plant in the agricultural system of many countries and has acquired a huge socio–economic importance over the centuries. Owing to its never die nature and adaptability, it plays a major role as a feature as a crop that grows even in harsh soil and difficult climatic conditions.

Moringa India the Moringa arm of Advanced Biofuel Centre (ABC), is the worldwide promoter of Moringa that designs and implements the growing of Moringa Oleifera crops in a structured Agri-Supply chain, Value additions of Moringa and research activities thereon & provides support/services from “Surface to Superfood”, “Farming to Fuel”, “Soil to Oil” for development and establishment of the Moringa Plantation. ABC Support, assist, represent, advise, negotiate, manage and train participating growers/developers in all matters, to successfully plant and harvest Moringa Oleifera for the production of food, feed, fuel and affiliated products in India and Worldwide.

Moringa Economic: Overview


Moringaexportmarket20173Moringa Oleifera , an Indian origin plant has re-gained its importance due to nutraceutical values and is considered as indispensable plant for health management. It is one of the most incredible plants to the mankind as its nutritional and medicinal properties have immense potential to manage malnutrition and prevent and heal many maladies. On realizing the potentiality of Moringa as a nutritional security provider and the high value energy crop, much importance is attached globally, ABC has been working in exploring best production practices, best horticultural practices, best harvesting practices and best value addition, to demonstrate  latest research and development activities just to reap the fullest potential of Moringa.

The growing importance of this crop in meeting demand for agricultural foodstuffs has played a special role in creating favorable conditions for a more effective expansion of Moringa growing, backed in some countries by specific domestic development programmes. In a globalised market, We are able to provide top-quality MOMAX3/ PKM1 Moringa seeds/plants to cover this general increase in Moringa acreage.

Quality Planting material  production is a strategic link in the Moringa supply chain and influences the choices and economic performance of the whole production sector either for leaves or seeds. The development of improved varieties, propagation techniques, Floral biology and Advanced production systems in annual Moringa and perennial Moringa, Cropping systems, Nutrient management, biofertilizer for enhancing the production potential of Moringa, weed management, Major insect pests of Moringa and their management, Disease of Moringa and their management, Post harvest management, Seed production strategies for perennial Moringa and the use of new technologies are the key to ensure the developing a modern, sustainable, profitable Moringa growing. A modern advancements has a dynamic domino effect on the Moringa industry to introduce technology is the ideal frame for transferring innovations in Moringa growing. This will allow the Moringa tree and its unique produce to serve as a bridge between tradition and innovation, between culture and health, and to secure growth and economic development.
The Moringa is a species of major economic importance to many countries. Over the last 10 years in particular, there has been an upsurge of interest in its cultivation and production.

Moringa is appreciated not only for its nutritional value but also as an integral part of the health-promoting qualities , which is an accredited nutritional model across the globe. Research have confirmed the value of Moringa tree and its all parts and the dissemination of research findings has stimulated its move into new, high-potential consumption markets. With all these factors coming into play simultaneously, world consumption has increased substantially in the last decade

Moringa Market: Worldwide scenario

Moringaexportmarket2017There is a  strong consumer demand for Moringa Products  which is acknowledged to be essential for human health. This is stimulating the intensification of Moringa growing both in the Asian countries and elsewhere where Moringa cultivation, mainly for leaves/oil, has been resumed or newly developed.

The world food and nutritional supplements companies are predicting that the Moringa products shall acquire than 10% share of the industry in coming years, while companies in the cosmetics field are expecting its enthusiasts to embrace it within their industry. Present volume of trade of Moringa products in international market is not enough to qualify it as a commodity, but it is nevertheless a growing market worldwide . Originated from India, Moringa trees are now found in Ghana, the Philippines, Nigeria, Kenya, Rwanda, Niger, Mozambique, Cambodia and Haiti.

As per  ABC  studies, which estimate that Moringa orchard crop area will expand at a yearly rate of 120,000 ha, so bringing world crop area to around 1 million ha up to 2025.

As per Our study, Today, the Global Moringa Market is estimated at more than US$ 5.0 Billion, which is expected to cross US$ 8.3 Billion by 2020, growing at a rate of more than nine per cent annually.

Moringa acres in 2017 were  35% more compared to 2016, but Moringa India has posted a string of successes over the last 24  months in the area of improved cultivar  and technology.

 

Their successive technology and market milestones over the past few years sparked investment interest.

For years scientists at  ABC, have been working on developing new perennial variety  for the oilseed Moringa crop and have introduced world's highest yielding variety MOMAX3 Moringa for plantation for seed oil production.  

Their sustainable Moringa ingredients have garnered the most attention, but we like their diversity into several different revenue streams like superfood, cosmetic, pharma, medicinal, animal feed, aquaculture, biogas  and biofuel, based on a foundation of advanced agronomy, improved MOMAX3 Moringa cultivar  and solid economics.”

Moringa India, ABC wanted to build a socially- and environmentally-conscious business around the Moringa modeling the company strategy with the cultural and spiritual traditions of India

Moringa India, ABC are able to stand out through its significant breeding of Moringa, market-development advantages  and its large grower footprint.

 “Considering further that Moringa production has a relatively low input requirement, it could be promoted as a cash crop for small farmers."

The Advanced Biofuel center, an authoritative  entity and parental company, based on their investment analysis, a hectare of Moringa Oil Orchard would require an initial capital of $2000.

Positive returns could be realized in the very beginning years with projected gross margin around $9,000/ha with ROI of +100% in a 1000 ha plantation with MOMAX3 Moringa cultivar

Moringa has the potential for commercial production, either as a cash crop or as a component of agro forestry systems. The introduction of Moringa into the existing production systems will enhance food production and biodiversity and industry development from its products and by-products.

What makes it sustainable is it uses less water and less fertilizer than other oilseed crops. It can be grown in drier, more marginal land and it uses less input.

Moringaexportmarket20174Moringa Business Proposition

Broadly speaking Moringa Business can be segmented in three verticals

  1. Moringa health Foods
  2. Moringa oil for cosmetic and pharma industries and
  3. Moringa Biofuels

Globally, demand for two particular Moringa products has been growing rapidly: the highly nutritious powder derived from the tree's dried leaves, and the high quality oil that can be extracted from the tree's seeds. The former, Moringa leaf powder, is sold as a 'super food' in the international market for nutritional supplements. It is also increasingly the subject of interest from international organizations and institutions involved in the global fight against malnutrition.

The latter, Moringa oil, is highly coveted by international cosmetic companies for its excellent properties as an ingredient in fragrance and skin care products.

Having regards, to above, we at ABC introduced the concept of commercialization of Moringa by introducing different methods and cultivar of Moringa farming for different end harvest/product

 

  1. Moringa Cultivation for solely Leaves Production
  2. Moringa Plantation for oil Production and
  3. Moringa Plantation for fuel Production

Moringa Biodiesel

Moringa oil has also the potential to displace diesel oil in the industry because of high stability of biofuel produced from Moringa oil

Moringa  is a sustainable and environmentally friendly alternative to Mineral oils as it's seeds gives better oil than  Palm, canola corn and soybean for biofuel production
 

Economic Model of a Moringa Biodiesel Production Facility          
Moringa Intergrated Plantation: 10,000 ha                  
                       
Assumptions (inputs)         Output          
                       
Facility Construction           Annual Production and Resource Usage        
Nameplate Capacity 33,000,000  liter/yr.       Construction Cost          
Organizational Costs $200,000             Total $55,500,000        
Process System $36,000,000             Equity $27,750,000        
Land, Site and Other $7,400,000             Debt $27,750,000        
Plant & Machinary  $10,000,000             Per liter Nameplate Capacity $1.68        
Office and Administration $900,000             Per liter Operating Capacity $1.68        
Inventory & Working Capital $1,000,000             Per kg Moringa Oil Oper. Cap. $1.81        
Estimated Life 15  years           Depreciation $1,233,333 per year    
Property Taxes $50,000  per yr.       Biodiesel Production          
                Nameplate Capacity 33,000,000 liters per year  
Financing               Operating Capacity 33,000,000 liters per year  
            Press cake 46,035,000 Kg/year    
Percent Debt 50  %       Glycerine Production 3,300,000 Kg/year    
Length of Loan 10  years       Moringa Oil Usage 30,690,000 Kg/year    
Interest Rate 8.25  %       Natural Gas Usage  61,024 1,000 cubic feet/year  
            Electricity Usage  5,230,623 kilowatt hours/year  
Efficiency Factors           Electricity Cost $261,531 per year    
Moringa Oil 0.93 kg/l biodiesel       Water Usage  17,435,410 liters per year  
Production Level 100 % capacity       Water Cost $16,121 per year    
Glycerine 0.10 kg/l biodiesel       Number of Employees 28 employees  
Methanol 0.09 kg/l biodiesel       Labor & Management Cost $1,610,000 per year    
Natural Gas 2 cub. ft./l biodiesel       Interest Cost $2,289,375 per year     
Electricity 0.16 Kwh./l biodiesel       Chemicals and Ingredients $49,691 per year     
Water 0.5 liter/l biodiesel       Repairs & Maintenance $200,000 per year     
Press Cake 1.4 kg/l biodiesel                  
            Transportation Cost $87,177 per year     
Chemicals           Other Costs $200,000 per year     
Chemicals and Ingredients 1.51  ¢/l                  
            Production Costs           
Prices            Chemicals Cost per liter   Cost per barrel 
Electricity 5.000  ¢/KwH       Chemicals and Ingredients 1.51  ¢/liter 2.39 $/bbl
Water    0.092  ¢/l         Total Chemical Cost 1.51  ¢/liter 2.39 $/bbl
Glycerin 7.500  ¢/kg       Feedstock cost 20  ¢/liter 31.80 $/bbl
             Other Direct Costs          
Labor & Management           Repairs & Maintenance 0.79  ¢/liter 1.27 $/bbl
  Number Salary       Transportation 2.64  ¢/liter 4.23 $/bbl
Operations 12 $68,000       Water 0.05  ¢/liter 0.08 $/bbl
Maintenance 2 $72,000       Electricity 0.79  ¢/liter 1.27 $/bbl
Laboratory 1 $80,000       Other 0.79  ¢/liter 1.27 $/bbl
Material Handlers 10 $30,000         Total Other Costs 5.07  ¢/liter 8.11 $/bbl
Administration 3 $90,000                  
Total 28 $1,610,000        Fixed Costs          
            Depreciation 3.74  ¢/liter 5.87 $/bbl
Other Direct Costs           Interest 6.94  ¢/liter 10.89 $/bbl
Repairs & Maintenance 0.79  ¢/l       Labor & Management 4.88  ¢/liter 7.66 $/bbl
Transportation 2.64  ¢/l       Marketing & Procurement 1.06  ¢/liter 1.66 $/bbl
Marketing and Procurement 1.06  ¢/l       Property Taxes, Insurance, etc. 1.15  ¢/liter 1.81 $/bbl
Other 0.79  ¢/l         Total Fixed Costs 17.76  ¢/liter 27.88 $/bbl
Revenue from by-products          Total Costs          
     $       Total Variable Costs 6.57  ¢/liter   10.50 $/bbl
Glycerin 2,970,000.00  $       Total Variable & Fixed Costs 44.34  ¢/liter   70.18 $/bbl
Press cake $6,905,250.00  $     Less          
            Revenue from Glycerin 0.09 $/liter   14.31 $/bbl
            revenue from Press cake 0.21 $/liter   33.27 $/bbl
          Net  Costs       22.61 $/bbl


(Above Financials are without intercropping)

couplecroppingbiodieselcrop

MOMAX3  Moringa with Camelina & Castor  crops in same acreage could extend production, increase profits

The Advanced Biofuel Center  (ABC) reported its progress on its work with its mission "more Moringa " by developing MOMAX3, the perennial Moringa variety for production of more oil per hectare. After introduction and success of MOMAX3-Maru-Moringa, researchers at ABC were further engaged in find out the best alloy cropping for the in between row space of MOMAX3 Plantation

The scientists at ABC finally selected short duration camelina crop in winter/spring planting and castor beans in summer planting in rotation with Pea nut and Brassica juncea

About MOMAX3 Maru-Moringa Perennial Trees

ABC is engaged in the development and commercialization of high yielding castor bean seeds as a cost competitive, sustainable, second-generation feedstock for the growing biofuel market. Castor is a high-value crop that has the potential to diversify our crop portfolio and crop rotation systems  ABC's elite Moringa Oleifera variety ‘Maru-Moringa (MOMax3™)’ will yield at maturity as high as 3-4000 liters of oil per hectare,

Camelina

Once considered a weed, camelina is gaining popularity in some parts of the country as a soil-protecting winter cover crop. Additionally, its seed contains high-quality oil for use in cooking and as biodiesel, offering a renewable alternative to imported petroleum.) scientists  at  ABC have been on the forefront of studies to make camelina and other Biodiesel  oilseed crops more profitable for Project developers to grow, easier for industry to process, and better performing as finished biofuels and other products. At ABC, the  scientists are evaluating the outcome of integrating camelina, castor , flaxseed  and other oilseeds with plantings of perennial tree oil crops such as jatropha, Moringa, mahua, pongamia .

Camelina oil has been found to contain high amounts of omega – 3 fatty acids, like flaxseed oil, which make it suitable for use as a nutritional supplement and a general purpose oil.

Castor Beans

Through CBMAX9™ improved seed product line, we provide the highest yielding, most uniform and profitable Castor in the world with 1.8 ton oil per ha

With introduction of Camelina and Castor Bean crops with MOMAX3 Moringa, as much as 1450 gallon of oil can be produced  per year from a well developed, properly cared and efficiently managed Moringa Farm

The Moringa oil tree couple crop technology shall be showcased to the participants of 6th Global Moringa Meet 2018: 2days International Workshop on Moringa production & application and also to the registrants of Moringa Farm stay Programme

To know more about Moringa biodiesel business plan check here  also and to get a quote submit your requirement here

To know more about Moringa value addition and business plan check here

 

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