Profit-Farming

ECONOMICS: JATROPHA FUEL FARMING

Of course the interest in the Jatropha plantation primarily focuses on Biodiesel. Here, the key question is: Will it be possible to establish the right cultivation and processing methods so that the Jatropha plant can produce a high-quality fuel which can compete with petrochemical diesel in terms of price? After all, one key element that makes all the difference between success and failure is the cost factor — in other words, the potential returns.

We are not in favor of the implementation of a high-tech agrarian concept that warrants for maximum input and delivers bumper crops. Contrary, we are looking for a practicable type of cultivation that is compatible with the routines and possibilities of local farmers, so that the Jatropha plantations can be profitable for the rural cultivators with a minimum input of men, money and materials.

The ABC experts working on the Jatropha plantation have developed the best method of cultivating these plants, which require the lowest possible investment of money, labor and materials.

Yield is a function of light, water, nutrients and the age of the Plant. Good planning, quality planting material, standardized agronomy practices and good crop management may handsomely increase the yields

ASSUMPTIONS FOR COST/BENEFIT ANALYSIS

Though Jatropha starts yielding from very first year, we have taken no yield for 1^st and 2^nd year just to ensure proper pruning and development of the plant
Crop density with 2mx2m pattern shall be 2500 plants per ha
Seeds tonnage per ha has been taken 0, 0, 2.5, 5.0, 6.25, 9.6 for 1, 2,3,4,5, and 6^th year respectively
Intercropping has been presumed for 30% of plantation area
CDM calculation has been taken as minimum for +1000 ha plantation
Sale price of seeds has been taken on lowest side
Rate of interest has been taken as 9% per annum for 5 years

MODEL 1: 20 ha JATROPHA - PLANTATION

OUTPUT
Crop yield	$ 21000
INPUTS
CAPITAL
Crop Cultivation cost	$ 13000
OPERATING COST
Crop harvest cost	$ 3200
MAINTENANCE COST
Crop care cost	$ 3080
REVENUE	$ 14720**

*(in 5^th year)

MODEL 2: 100 HA PLANTATION

US$ ‘January, 2016

Year	2016	2017	2018	2019	2020	2021	2022
TOTAL HECTARES	100	100	100	100	100	100	100
Total no. of Jatropha Plants			250000	250000	250000	250000	250000
Production of Jatropha seeds (in ton)			250	500	625	962.5	962.5
PRICES
Price per TON of Jatropha Seeds (in US$)			140	140	140	140	140
SALES
Jatropha Seeds			35000	70000	87500	134750	134750
INTERCROP		3000	3000	3000	3000	3000	3000
Total Sales	0	3000	38000	73000	90500	137750	137750
Cost of Sales
CAPITAL COST	68000
Operative Expenses	30000	9600	24550	32300	36175	46637.5	46637.5
Maintenance Expenses		4000	4100	4200	4400	4600	4600
Total cost of Sales	98000	13600	28650	36500	40575	51237.5	51237.5
PBT	-98000	-10600	9350	36500	49925	86512.5	86512.5
Depreciation
Interest Expenses
NET PROFIT	-98000	-10600	9350	36500	49925	86512.5	86512.5

MODEL 3: 1000 HA PLANTATION

US$ ‘January, 2016

Year	2016	2017	2018	2019	2020	2021	2022
TOTAL HECTARES	1000	1000	1000	1000	1000	1000	1000
Total no. of Jatropha Plants			2500000	2500000	2500000	2500000	2500000
Production of Jatropha seeds (in ton)			2500	5000	6250	9625	9625
PRICES
Price per TON of Jatropha Seeds (in US$)			140	140	140	140	140
SALES
Jatropha Seeds			350000	700000	875000	1347500	1347500
Carbon Trading (in US$)		20000	20000	20000	20000	20000	20000
INTERCROP	30000	30000	30000	30000	30000	30000	30000
Total Sales	30000	50000	400000	750000	925000	1397500	1397500
Cost of Sales
CAPITAL COST	681250
Operative Expenses	177600	62400	180900	258400	297150	374650	374650
Maintenance Expenses		40000	41000	42000	44000	46000	46000
Administrative+ OH Expenses	10000	10000	10000	10000	10000	10000	10000
Total cost of Sales	868850	112400	231900	310400	351150	430650	430650
PBT	-838850	-62400	168100	439600	573850	966850	966850
Depreciation		2500	2500	2500	2500	2500	2500
Interest Expenses		90000	90000	90000	90000
NET PROFIT	-838850	-154900	75600	347100	481350	964350	964350

MODEL 4: 10000 HA PLANTATION

US$ ‘January, 2016

Year	2016	2017	2018	2019	2020	2021	2022
TOTAL HECTARES	10000	10000	10000	10000	10000	10000	10000
Total no. of Jatropha Plants	25000000	25000000	25000000	25000000	25000000	25000000	25000000
Production of Jatropha seeds (in ton)			25000	50000	70000	96250	96250
PRICES
Price per TON of Jatropha Seeds (in US$)			$140	$140	$140	$140	$140
SALES
Jatropha Seeds			$3,500,000	$7,000,000	$9,800,000	$13,475,000	$13,475,000
Carbon Trading (in US$)		$200,000	$200,000	$200,000	$200,000	$200,000	$200,000
INTERCROP		$1,050,000	$1,050,000	$1,050,000	$1,050,000	$1,050,000	$1,050,000
Total Sales		$1,250,000	$4,750,140	$8,250,140	$11,050,140	$14,725,140	$14,725,140
Cost of Sales
CAPITAL COST	$7,162,500
Operative Expenses	$442,400	$81,600	$720,600	$1,220,600	$1,620,600	$2,145,600	$2,145,600
Maintenance Expenses		$800,000	$800,000	$800,000	$800,000	$800,000	$800,000
Administrative+ OH Expenses	$100,000	$100,000	$100,000	$100,000	$100,000	$100,000	$100,000
Total cost of Sales	$7,704,900	$981,600	$1,620,600	$2,120,600	$2,520,600	$3,045,600	$3,045,600
PBT	($7,704,900)	$268,400	$3,129,540	$6,129,540	$8,529,540	$11,679,540	$11,679,540
Depreciation		$6,000	$6,000	$6,000	$6,000	$6,000	$6,000
Interest Expenses		$764,000	$764,000	$764,000	$764,000	$764,000	$764,000
NET PROFIT	($7,704,900)	($501,600)	$2,359,540	$5,359,540	$7,759,540	$10,909,540	$10,909,540

For Detailed Financial Analysis Kindly Obtain Our JATROPHA FARMING BUSINESS PLAN for 20 ha, 100 ha, 1000 ha, 5000 ha, 10000 ha, 100,000 ha etc.

For further enquiry kindly contact:

Director

Business Development, ABC

jatrophacurcas@gmail.com

+91 9829423333

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