Rice Field and Rice Mill
Preah Net Preah, Banteay Meanchey
Prepared By Smart International Consulting
17 May 2013
Agenda
1.
2.
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3.
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4.
5.
6.
Business Model
Rice Field
Assumption
Products to market
Production forecast
Infrastructure development
Rice Field Management
Rice growing Tips
Farming Equipment
Rice Mill
Assumption
Processing System
Plant Capacity & Operations
Project Implementation Time Frame
Financial projection
Social Economic Impact
1. Business Model
Business Model
Farm
Input
Technical
Support
Company-owned
Plantation
Contract-Farming
Plantation
Paddy
Rice
Rice Mill: Rice Processing Line
Revenue1:
Jasmine Rice 5%
Broken
Revenue 2: Rice
Bran
Revenue 3:
Brokens
Main revenue
The main revenue will come from the
sale of final Jasmine Rice 5% Broken.
The selling price of the Jasmine Rice 5%
broken FOB Cambodia Port is between
850 USD and 900 USD per MT.
Our business plan will use 850 USD/MT
as the selling price.
Additional revenues
1. Brokens (100% broken)
Broken rice has the same chemical
composition as the whole grain. It is
remixed with the whole grains and sold as
low-grade rice or can be further processed
to rice starch. The FOB price of Jasmine
Rice Broken (100%) is $ 300/MT.
2. Rice Bran
Rice bran is a good source of B vitamins
and is fairly palatable to farm animals. With
attention to the oil content, rice bran is a
valuable feed for all classes of livestock. Rice
bran can be sold at approximately $140/MT.
2. Rice Field
Project Location
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Land for Rice
Plantation, 10,000
hectares
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The district of Preah Net
Preah is located 1 h from
Siem Reap and 45 mn
from the Thai border.
Our financial projection uses the following assumption:
 The rice field grows the Cambodian variety “Jasmine Rice” locally adapted in
Banteay Meanchey Province. The yield of this variety is between 4.5 to 5
MT/hectare. However, this business plan will use:
 4.5 MT/season/hectare for Company-owned mechanized plantation
 4 MT/hectare for the contract farming plantation
 The purchase price of paddy rice from the contracted farmers is 375 USD/MT
(purchase at the field).
 Final Jasmine Rice (5% broken) are sold FOB USD 850/MT.
 Brokens (By-product 1) will be sold at FOB USD 300/MT
 Rice bran (By-product 2) will be sold at FOB USD 140/MT
The startup capital is 40 million USD.
Production Forecast
Production
Paddy rice (4.5 MT/hectare) from our
plantation
Paddy rice from contract farming
(4MT/hecare)
TOTAL PADDY RICE
PRODUCTION
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
45,000
45,000
45,000
45,000
45,000
45,000
45,000
45,000
45,000
45,000
0
0
20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
45,000 45,000 65,000
65,000
65,000
65,000
65,000
65,000
65,000
65,000
The total production of paddy rice will reach its maximum amount in 2015:
65,000 MT when the total contract farming area reach: 5,000 ha
Land organization
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We will organize the 10,000 ha land into 10 farms:
 Farm I- Farm 9: 9,000 ha (1,000 ha each)
 Farm 10: 850 ha
 Infrastructure: 150 ha
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Each farm of 1,000 ha will be divided into 5 plots of 200 hectares except farm 10
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Irrigation and road system as well as administration and processing buildings will
consume 150 ha of total land.
Rice Field Infrastructure
We need sufficient and effective infrastructure to support
cultivating and logistics operations within the rice field.
The infrastructure to be developed are:
 Irrigation System and Water sources
 Route System inside the plantation
 Building
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Storage Warehouse for agro-inputs
Storage house for agriculture machineries
House for staffs living on the plantation
Office Building
Rice Processing Plant
Electricity Power Plant
Irrigation System and Water Source
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Some part of Preah Net Preah District is flooding in the rainy
season between May to October. The flooding water will be
used as main water sources for the plantation.
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Proper channel and reservoir system need to be developed to
control the water balance for plantation
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Plantation Irrigation system includes:
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Pump station from the water source
Channel dig throughout the farm:
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20 main channels (3m x 2m x 1m)
1600 small channels (using tractor disc)
1 main channel will feed 500 ha rice field when 1 small channel will feed 6
ha
The total cost of irrigation system is : USD 1,000,000
Road Infrastructure
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Road and channel will be dug and constructed simultaneously
There will be 5 main roads and 10 small road for worker and machinery
movement and transport
Road will be built by the company-owned tractors and truck.
Road Land fill will be from channel digging
The total cost of road infrastructure is estimated to at 100,000 USD
Storage house for agriculture machineries
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We plan a 28 m x 12 m storage room to store agriculture machineries.
The total cost is around USD100,000
House for staffs living in the rice field
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We plan a 32 m x 8 m x 4m staff building
The total cost is around USD100,000
Storage Warehouse for Agro-Inputs
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Storage warehouse for Rice Field input such as fertilizer, nutrition,
and other chemicals and equipments will be build at size: 50m x
100m x 6m (height)
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The cost is estimated at 100,000 USD
Office Building
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Office building is needed for plantation and rice mill
administration/management
We budget office building to 200,000 USD
Electricity
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The main source of electricity will supplied from the Rice Husk Biomass Power Plant
We will use a diesel generator to produce electricity as reserve for power need in long
distance from administrative site. The purchase cost for a diesel generator of 90
Kilowatt is 10,000 USD.
The diesel generator will use 15 L Diesel per hour at the cost of 1.2 USD/L.
The maximum hour of operation per year is: 30 days/year
The total expense on diesel is 30 days x 15 L x 8 hours x 1.2 USD = 4,320 USD.
90 Kilowatt diesel generator
Rice Field management
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The Rice Field is lead by a Senior Agronomist with at least 10 years
professional experiences in the commercial/mechanized rice cultivation.
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Each farm will be managed by a Farm Manager. The farm Manager will be
responsible for the rice cultivation performance inside his/her own farm.
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Each farm is divided into 5 plots of 200 hectares each under the supervision
of one plot supervisor and 3 plot supervisor assistants.
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Each farm has the following equipment:
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4 tractors
3 motorbikes
2 small trucks of 5 Ton for each farm of 1,000 ha The small truck can also be used
to transport seasonal workers.The cost for the truck is 30,000 $/unit.
Sprayers and agriculture tools
Organization chart
Head of the Plantation
Senior Rice Agronomist
Contract Farming
Manager
Farm Management
Farm Managers
Plantation
- Plot Supervisors
- Assistants
- Seasonal workers
Farm Warehouse
- Warehouse Officer
- Operational Staff
Overall Plantation Cost
Rice variety
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The Jasmine Rice Variety is Cambodian variety.The expect yield is between 4.5 to 5 MT per hectare.
Seed Bed Preparation
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For compatibility with mechanical transplanting, plastic seedbed preparation is needed.
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The total seed needed for 1 ha seed bed is: 350 Kg
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The total area for seed bed preparation is: 30 ha
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Total Seed needed for 10,000 ha = 12,000 USD
Note: we purchase the rice seed only for the first year,.
Transplanting
 Transplanting rice from the seed
bed into field will be mechanically
done by transplanting machines
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For 10,000 ha fields, 2
transplanting machine will be
needed. Each one cost $5,000.
Total = 50,000 USD
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Each transplantor needs 3
supporting workers
Transplanting capacity is: 1.4
ha/hour
The total 10,000 ha transplanting
will be done in 90 days
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Nutrition Application
 Rice Field needs 2 times nutrition per season.
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Nutrition Application will be done by using Lee Rice Sprayer (chemical
sprayer)
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1st nutritioning is done to help prevent disease
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2nd nutritioning is done to help increase the starch content in the rice seed
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Total Cost per Hectare = USD 20/ha/season
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Total Cost = USD 20 x 3,000 = USD 60,000
Fertilizer Application
 We need just 1 time fertilizer application
 Fertilizer include 3 types:
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UREA
DAP
KCl
Total use/hectare = 175 Kg
Total Cost/hectare = USD 35
Seasonal Workers
 For total 10,000 hectares, we need seasonal workers 5 times during
the whole planting season (total number in 1 day operation)
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1 time for seed bed preparation: 300 seasonal workers
1 time for pulling up: 300 seasonal workers
1 time non-selective herbicide application: 80 seasonal worker
1 time land plowing: 7,200 seasonal workers
1 time for transplanting: 1,800 seasonal workers
1 time for fertilizer application: 3,333 seasonal workers
2 times nutrition application: 160 seasonal workers
1 time for harvesting: 2,700 seasonal workers
The detail cost is in the Excel file, worksheet “Personnel”.
Farming Vehicle and Equipment
Tractors
 Tractor 50 HP 20, 000$
 For 10,000 hectares, we need 40 tractors
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Rice transplanter
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Capacity: 1.4ha/hour
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Cost: USD 5,000/Unit
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Total number: 10
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Total cost: 50,000 USD
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Total Duration: 90 days/10,000
hectare (8 hours/day)
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Lee Rice Sprayer: spray nutrition,
herbicide, pesticide…
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Capacity: 30-60 ha/hour
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Cost: USD 20,000/Unit
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Total Duration: 15 days/10,000
hectare (8 hours/day)
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5 MT truck used to transport inputs,
equipment, and workers
Total number = 10
Cost per unit = 30,000 USD
Total Cost = 300,000 USD
Rice combine harvester
Capacity: 1ha/h
Cost per unit = 30,000 USD
Total number: 17
Total Cost = 510,000 USD
Equipment
Tractor Disk
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6-disc plougher
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7-disc plougher
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Total number: 20
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Total number: 20
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Unit price: 2,500 USD
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Unit price: 3,500 USD
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Total price: 50,000 USD
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Total price: 70,000 USD
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Tractor trailer for transportation of goods
inside the plantation
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Attached to: tractor and truck
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Capacity: 10 MT
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Unit price: 10,000 USD
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Total number: 10
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Total cost: 100,000 USD
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Tractor Bulldozer front attachment
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Unit Cost = USD 1,500
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Total Number = 10
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Total cost: 15,000 USD
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Rotavator: Tractor Attachment for
soil breaking
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Total number: 10
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Unit Cost: 1,500 USD
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Total Cost: 15,000 USD
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Weighing equipment for plantation
and rice mill
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Total number: 10
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Unit Cost: 10,000 USD
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Total Cost: 100,000 USD
3. Rice Mill
Assumption
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Output composition of rice mill (per metric ton)
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Hour of operation per day = 8 hours
Total processing day per year = 350 days
Electricity supply to rice mill is generated from rice husk biomass power
plant
Plant site is situated on the 5ha land area
Land filling to 1.5m (condensing coefficient = 30%);
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60% = Head Rice (5% broken)
9% = broken
11% = Rice Bran
20% = Rice Husk
Total Land Fill Volume = 375,000 m3 x $3/cubic meter
Total Amount = 975,000 USD
Milling Capacity: 8 TPH (Input on paddy rice)
Processing Chain
Threshed Paddy
Rice from Field
Cleaning
Hulling
Grading
Polishing
Milling
Sorting
Packaging
Storage
Paddy Rice Storage Warehouse
We plan a 100 m x 50 m x 12m (height) storage room. Storage capacity of
paddy rice will be: 24,000 MT
The storage room will be use for:
1.
Packaging the threshed paddy rice into a 50 KG bag
2.
Keep the rice bags until they are supplied to processing plant
Paddy Rice Drying System
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Paddy rice drying: dry the paddy to
appropriate moisture content
before processing to minimize
broken
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Drying Capacity: 10,000 Cubic
Meter/per Week
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Total Cost: 10,0000 USD
Silo Storage
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Capacity Storage: 3,500 MT/Unit
Cost per Unit: 170,000 USD
Total number needed = 6
Total Amount = 1,020,000 USD
Rice Milling Line
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Capacity: 8 TPH on input paddy rice
Total Cost: 2,879,500 USD
Rice Husk Gasification Power Plant
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Electricity generating Capacity: 5-10 MW
Total Construction and Installation Cost: USD 3,000,000
Rice Husk from rice milling plant available for supply: 9000-13,000 MT/Year
Waste Water Treatment Plant
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To reduce the negative
effect on environment, we
will set up a waste water
treatment system
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After treatment, waste
water can be used to
water agriculture plants.
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Total Cost: USD 100,000
Final Product Warehouse
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Size: 50m x 100 m x 12m (height)
Cost: 100,000 USD
Stock Capacity: 12,000 MT
Vehicles for Rice Mill
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Fork lifter: lift paddy and final rice
bag in warehouses
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Total number: 4
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Unit Cost: 37,000 USD
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Total Cost: 148,000 USD
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5 MT truck used to transport inputs,
equipment, and workers
Total number = 10
Cost per unit = 30,000 USD
Total Cost = 300,000 USD
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Feeder Vehicle/Loading Tractor
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Total Number: 2
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Unit Cost: 20,000 USD
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Total Cost: 40,000 USD
The total cost of Rice processing plant: 11,435,690 USD
Overall Management Structure
CEO
Executive Assistant
General Manager
HR Manager
R&D
Manager
PR &
Communication
Manager
Operation and
Supply Chain
Manager
Finance
Manager
Accountan
t Payroll
Auditor
Trader
Head of Rice Mill
Production
Manager
-Operator
- Warehouse
- Mechanical
Quality Assurance
Manger
-Quality Controller
- Lab Technician
IT
Manager
Administration
Manger
Marketing/
Sales
Manager
Guards
Cleaners
Cooks
Head of Plantation
Farm Manager
Plantation:
-- Plot Supervisor
-Plot Assistant
-- Seasonal workers
Contract Farming
Manager
Warehouse
-- Warehouse officer
-- Warehouse Operator
4. Project Implementation Time Frame
Time Frame
Task
July 2013
• Construction of administration building
August-September 2013
• Land plowing and transplanting
• Procurement for Rice mill construction
November 2013- January 2014
• Rice Harvesting
January-August 2014
• Construction of Rice Processing Plant
September – December 2014
• Start first operation for rice processing
plant
5. Financial Projection
 At full capacity, the annual profit is 20 million USD.
 The annual net income per hectare is 2,049 USD.
 With an initial capital of 40 million USD, the Rice Field is always profitable.
 The cumulate net profit after 10 years is 172 million USD. (end cash
balance – initial capital).
 The IRR on 10 years is 34 %
6. Socio-Economic Impact
This investment will improve life of 20,000 families (= 100,000
persons) living in the district.
 Average annual income per family increase from 500 USD to 1,500
USD
 Received free training on the modern agronomy technology
 Ability to sell their paddy rice production to our rice mill with
better price compare to the prices offered by local traders
 Access to clean water and cheap electricity
Moreover, for people living in the district, we will dedicated 2% of our
annual profit (about 400,000 USD) to finance the following activities:
 Irrigation System
 Basic health care
 Free Internet for children and school in the district
 Sport field for children
THANK YOU