GOLD BANANA COMPANY S.R.L.
COMPANY OVERVIEW AND
CHALLENGES
1
GBC OVERVIEW
• GOLD BANANA COMPANY S.R.L. IS THE
COMPANY CREATED IN THE DOMINICAN
REPUBLIC WITH A SOLE PURPOSE OF
ESTABLISHING A MODERN AGRICULTURAL
ENTERPRISE DEDICATED TO PRODUCING
ORGANIC FRUIT WHILE UTILIZING BEST
AGRITECHNOLOGY AND LATEST GROWING /
HARVESTING TECHNIQUES.
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GBC OVERVIEW
• OUR LOCATION:
– SELECTION OF OUR LOCATION – CABEZA DE TORO,
GUAYUBIN, MONTECRISTI – WAS PREDICATED BY
THE FOLLOWING FACTORS:
• CLIMATE SUITABLE TO GROWING ORGANIC BANANAS
• ACCESS TO CLEAN WATER SOURCE
• AMOUNT OF LAND REQUIRED FOR EFFICIENT
OPERATION
• AVAILABILITY OF EXPERIENCED LABOR FORCE
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GBC OVERVIEW
• PLANTATION DESIGN
– 230 HA OVERALL, ABOUT 200 HA (3,500 TAREA)
PLANTABLE
– DOUBLE-ROW, HIGH DENSITY PLANTING
– DRIP-IRRIGATION (3 LINES/DOUBLE ROW)
– ELECTRIC IRRIGATION PUMPS
– FERTIGATION
– WELL WATER FOR PROCESSING FRUIT
• WATER TREATMENT (FILTERS, UV, RECIRCULATION, REVERSE
OSMOSIS, CARBON FILTER ON DISCHARGE)
– CAPTURE OF RAIN WATER (3 LAGUNAS, GRAVITY FED)
– EXTENSIVE MULCHING
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GBC ACHIEVEMENTS
• AS OF APRIL, 2013, THE FOLLOWING HAS BEEN
ACCOMPLISHED:
– 1000 TAREAS (65 HA) IN PRODUCTION
• CONSTRUCTED WATER SUPPLY PIPELINE FROM GUAYUBIN
RIVER TO THE PLANTATION (16”, 3.5 KM LONG), TURBINE
WATER PUMP AT THE RIVER IS PROVIDING 3,000 GPM FOR
THE IRRIGATION
• BUILT CENTRAL PUMPING STATION CAPABLE OF SUPPLYING
7,000 GPM TO THE FIELD
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–
–
–
BATERY OF 100 HP ELECTRIC MOTORS/PUMPS
STATE-OF-ART DISK FILTERS
FERTIGATION TANKS/PUMPS
ARRAY OF 250 KWH GENERATORS
• CLEARED / BUILT APP. 15 KM OF INTERNAL ROADS
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GBC ACHIEVEMENTS
– CREATED IRRIGATION SYSTEM
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•
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15 KM OF MAIN PVC PIPES
650 KM OF DRIPLINE
12 IRRIGATION ZONES / 96 ZONE VALVES
– PLANTED 220,000 BANANA PLANTS
– CONSTRUCTED ABOUT 10 KM OF CABLE WAY
– BUILT 1,000 SQ. M. PACKING HOUSE AND ASSOCIATED
INFRASTRUCTURE
– DEVELOPED WATER WELLS FOR PROCESSING NEEDS
– INSTALLED STATE-OF-ART WATER TREATEMENT FACILITY
– OBTAINED 2 EACH ORGANIC PRODUCTION CERTIFICATES FOR
USA AND EU (CONTROL UNION AND BCS)
ALSO:
– 1,100 TAREAS HAS BEEN CLEARED AND IS BEING PLANTED
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GBC CHALLENGES
• TO MAXIMIZE RETURN ON THE INVESTMENT, FOLLOWING
CONCERNS MUST BE ADDRESSED:
– HIGH COST OF ENERGY
• NEAREST 3-PHASE POWERLINE IS ABOUT 15 KM AWAY, NONINTERRUPTED POWER SUPPLY IS UNAVAILABLE, COST OF ELECTRICITY
IS CONSTANTLY RISING
• DIESEL-POWERED GENERATORS ARE REASONABLY RELIABLE, BUT
COST OF FUEL IS EXTREMELY HIGH AND IS RISING
– WHILE INTERNAL INFRASTRUCTURE (ROADS, DRAINAGE, ETC.)
IS MANAGEABLE, EXTERNAL IS NOT
• 9 KM OF UNPAVED ROAD PREVENTS OPERATIONS DURING PERIODS
OF RAIN
– EXPORT OF FRUIT, RELYING ON EXISTING EXPORTERS FOCUSED
ON EUROPE, IS NOT ASSURED AND IS NOT RELIABLE
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GBC CHALLENGES DISCUSSION
• ENERGY
– TO ASSURE EFFICIENCY, ALTERNATIVE SOURCES OF
ENERGY MUST BE EXPLORED
• SINCE WIND POWER IS NOT CONTINUOUS AND SUFFICIENT
WIND VELOCITIES MAY NOT CORRESPOND TO PRODUCTION
CYCLE (6AM TO 6PM), AS WELL AS HIGH COST OF ENERGY
STORAGE, WIND POWER MAY ONLY BE CONCIDERED AS
SECONDARY, SUPPLEMENTAL SOLUTION
• PRESENT RELIANCE ON DIESEL POWERED GENERATORS IS
PROVING TO BE VERY EXPENSIVE AND AVAILABILITY OF
PROPER GRADE FUEL IS SCARCE
– OUT OF THE OPERATIONAL EXPENSE OF ABOUT USD $100,000
PER MONTH, ABOUT 45% IS COST OF FUEL
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GBC CHALLENGES DISCUSSION
• USING SIMPLIFIED CALCULATION, IT IS APPARENT THAT THE COST OF
PRODUCING A BOX OF FRUIT IS THE FOLLOWING:
- EXPENCES OF ABOUT USD $65,000/MONTH (EXCLUDING AMORTIZATION
OF THE INVESTMENT)
- GROSS SALES OF ABOUT 23,000BOXES PER MONTH (417,000 KG)
- COST PER BOX ON THE AVERAGE OF USD $2.82
- PRICE PER BOX, PAID BY THE EXPORTERS, RANGES FROM USD $4.00 TO USD
$9.20, DEPENDING ON THEIR REQUIREMENTS AND SIZE OF FRUIT
- IN OUR EXPERIENCE, AVERAGE PRICE PAID PER BOX IS ON THE ORDER OF
USD $7.40, LEAVING ABOUT USD $4.57 OF GROSS PROFIT PER BOX
FUEL
CONSUMABLES
PAYROLL
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GBC CHALLENGES DISCUSSION
• CONCLUSION:
– WHILE PAYROLL IS A MAJOR PART OF THE EXPENSE,
EXPERIENCED PERSONNEL IS THE KEY TO SUCCESSFUL
OPERATION
– CONSUMABLES, SUCH AS FERTILIZERS, NEED TO BE
MANAGED BUT ARE CRUCIAL TO PLANT GROWTH
– FUEL EXPENSES MUST BE REDUCED – EVERY USD $10,000
TRANSLATES INTO USD $0.60 PER BOX
– SOLAR POWER IS THE ONLY ALTERNATIVE THAT MAY
ALLOW FOR SIGNIFICANT OPERATIONAL COST REDUCTION
• PERIODS OF SUN AND RAIN CORRESPOND TO IRRIGATION NEEDS
• STORAGE OF ENERGY IS DESIRED BUT NOT REQUIRED
• TEMPORARY OUTAGES MAY BE COMPENSATED BY DIESEL POWER
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GBC CHALLENGES DISCUSSION
• EXPORT ISSUES:
– EXPORT MARKET IS PRESENTLY DRIVEN BY A FEW
EUROPE-ORIENTED EXPORT COMPANIES
– EXPORT TO USA IS LIMITED IF NOT NON-EXISTENT
• NORTH AND NORTH-WESTERN PARTS OF DR DO NOT HAVE
READY ACCESS TO THE CONTAINER PORT FACILITIES – FRUIT
HAS TO BE TRUCKED TO SANTO DOMINGO AT THE 600% OF
THE COST OF TRUCKING TO MANZANILLO
• MAJOR BRAND CONTROLLED MARKETING ADVERTISING IN
USA DOES NOT ALLOW DOMINICAN FRUIT TO ESTABLISH A
FOOTHOLD
• SINGLE FRUIT MARKETING MAY NOT BE AS EFFICIENT AS A
BROADER COUNTRY / MULTIPLE FRUIT / LIFESTYLE
CAMPAIGN
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GBC SOLUTIONS
• SOLAR POWER, AS EXPENSIVE AS IT MAY BE TO
IMPLEMENT, IS THE ONLY VIABLE, LONG TERM
SOLUTION
– ATTENTION SHOULD BE PAID TO:
• GRANTS AVAILABLE FROM EU, USA AND OTHER SOURCES,
SPECIFICALLY DESIGNATED FOR IMPLEMENTATION OF
RENEWABLE SOURCES OF ENERGY
• ASSISTANCE FROM MANUFACTURERS OF SOLAR ENERGY
EQUIPMENT, WHETHER IN THE FORM OF VENDOR
FINANCING OR GOVERNMENTAL SUPPORT
• LOW-COST FINANCING OF SOLAR POWER INSTALLATIONS
• OUR PRESENT NEED IS 500 KWH, GOING TO 750 KWH IN 6
MONTH
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GBC SOLUTIONS
• INFRASTRUCTURE MUST BE IMPROVED
– UNPAVED ROADS NEED TO BE BROUGHT TO ACCEPTIBLE
CONDITION AND PROPERLY MAINTAINED
• DRAINAGE CHANELS MUST BE CUT AND MAINTAINED
• SURFACE OF THE ROAD MUST HAVE AT LEAST A LAYER
OF GRAVEL
– THE GOVERNMENTAL PROGRAM FOR MAINTAINING LOCAL
ROADS SHOULD BE USED TO RESOLVE THE ISSUE
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GBC SOLUTIONS
• EXPORT
– ORGANIC PRODUCTS, BEING THE MAIN EXPORT STRENGTH OF
THE DOMINICAN AGRICULTURE, SHOULD BE USED TO
PENETRATE THE USA MARKET
– MULTIPLE PRODUCTS, SUCH AS BANANAS, PLANTAIN, MANGO,
ETC., SHOULD BE MARKETED TO BROADEN THE COUNTRY’S
APPEAL
– VALUE ADDED PRODUCTS, I.E. BANANA AND PLANTAIN CHIPS,
BANANA PUREE AND PRESERVES, SHOULD BE MANUFACTURED
AT THE POINT OF GROWING
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•
•
•
LOWER TRANSIT DAMAGE TO THE FRUIT
REDUCED TRANSPORTATION COST
INCREASED LOCAL EMPLOYMENT
INCREASED PROFIT FOR LOCAL ECONOMY
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GBC CONCLUSION
• GBC IS CONFIDENT THAT WITH ASSISTANCE OF APPROPRIATE
GOVERNMENTAL AGENCIES OF THE DOMINICAN REPUBLIC MOST,
IF NOT ALL, OF THE ISSUES AND CHALLENGES CAN BE
SUCCESSFULLY RESOLVED.
• BENEFITS OF THIS RESOLUTION WILL BE ENJOYED BY A BROAD
RANGE OF POPULATION, SUCH AS:
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WORKERS IN THE FIELD
ARICULTURAL EQUIPMENT OWNERS/OPERATORS
ENGINEERS/AGRONOMERS
OWNERS OF AGRICULTURAL ENTERPRISES
TRANSPORT SECTOR
EXPORT MANAGERS
INCREASED AND HIGHER VALUE EXPORT WILL INEVITABLY LEAD TO
HIGHER EMPLOYMENT AND ADDITIONAL REVENUE FOR THE
DOMINICAN REPUBLIC
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GOLD BANANA COMPANY S.R.L.