Executive summary
Bliss and Ananda Botanicals Enterprise, Ghana
Bliss and Ananda Botanicals are both locally registered enterprises that are into growing and export of organic herbs and spices such as lemon grass, ginger, chili and moringa. Though in recent decades, farmers have been applying large amounts of inorganic, chemical herbicides and fertilizers which, in effect, have compromised both soil fertility and biodiversity. In addition, farmers continually struggle with locating stable markets for their goods.
In response, both Bliss and Ananda Botanicals have taken measures to build a cooperatively-based business model aiming to not only connect indigenous farmers and producers of organic goods introduce their products to the European, North American and Japanese market, but to educate them about organic methods of crop production and sustainable land management in the process as well.
To start, we are working with farmers to produce organic lemon grass due its high demand worldwide for food and non-food purposes - for the extraction of lemon oil, as well as flavouring for tea and other products and as a spice. The product is more popularly known in Ghana as ‘fever grass’, much of which grows wild.
Bliss and Ananda Botanicals Enterprise, Ghana, are located in Accra and Kumasi respectfully. At the moment we are seriously looking for interested partners/ investors to finance our production, processing and shipment of the finished product (dried cut lemon grass) to our market destination in Germany.
Our Objective
The company’s objective is seen in two perspectives, which we have named profit and non –profit motive. The former includes:

Returns on investment and sales

Profit maximization, growth and development

Location of market for some non-traditional products such as Lemon grass and ginger overseas.

Providing financial security for the farmers producing these customer friendly products.
The latter, which is the non-profit motive, includes:

Improvement in quality of products

Improvement in technological up grading and support.

Timely and adequate supply of organic inputs at reasonable price.

Creating of jobs for the youth in the community

Enhancement in living standards of farmers.

To educate farmers on various, organic methods of crop production and sustainable land management, thereby preserving ecological integrity.

To encourage and promote a cooperative business model.
Expected Results
-To cultivate 5acres of organic lemongrass to produce 80 to 100metric tons per year.
-To ship at least a 20ft container of cut & dried lemon grass to market destinations every 4 months.
-To hold educational workshops for growers three times per year.
-Farmers will possess a working knowledge of organic methods of crop production that can be applied not only to lemon grass, but to their other crops.
-Establish a cooperative business model whereby everyone involved has a share in the overall success in the business

Directors of the company:
Mr. Daniel Mensah Abotsi is a graduate of the Kwame Nkrumah University of Science and Technology –
Kumasi with a B.A (Hons) Degree in Industrial Art. He is currently the Managing Director of Bliss
Botanicals Enterprise and Humanist Movement Organization, a locally based volunteering organization.
He is also a certified Infant massage instructor and a member of Anada Marga Ghana (Yoga) Society
( www.anandamarga.org
). He was also a former representative of Yogi Botanicals International USA.
( www.yogibotanicals.com
)
Mr. Kojo Nanny Tera is a graduate of the Kwame Nkrumah University of Science and Technology-
Kumasi with a B.SC (Hon) degree in Mathematics. He is currently the managing Director of Ananda
Botanicals Enterprise. He is a mathematics tutor at Maria Montesorri international school in Kumasi. He is a member of the Ananda Marga Ghana (Yoga) society ( www.anandamarga.org
) and also a former representative of Yogi Botanicals International ( www.yogibotanicals.com
).
Statement of purpose :
The following business plan has been formulated to satisfy the curiosity, anxiety and information needs of both investors and potential investors and other stakeholders in Bliss and Anada Botanicals. It will also serve as a formal outline for the first year of the farm operations. A limited business structure has been chosen to maintain limited liability for investors, combined with the various tax advantages. The financial forecast, though conservative, shows that this investment has significant promise.
Since the lemongrass market is still at the introductory stage of the product life cycle here in Ghana,
"tremendous opportunities are open for several players to get involved along the value chain. The lowmaintenance nature of lemongrass makes it a lucrative venture for farmers and other entrepreneurs as well as interested investors.
Background to the project:
Among other things, Ghana export promotion Council is mandated to develop and promote the export of
Non-Traditional projects such as lemon grass, ginger (NLCD 396) etc. This has made the exportation of these products very easy. It is to take advantage of this flexibility in exports that had encouraged the
Directors of both Bliss and Ananda Botanicals to come together to invest in the production, processing and export of the product (lemon grass) for export. The business has been in existence for about 2 years.
It advises farmers, both small-scale and large scale on how to grow organically to meet international standards for export.
Freight Forwarding:
Bliss and Ananda Botanicals Ghana has to bear all cost and risks of loss or damage to the goods from the production stage up to the port for shipment. That is the seller fulfils his obligation to deliver when the goods have passed over the ship’s trail at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from the point (FOB)
Professional support: The following organization will provide the requisite service to Bliss and Ananda
Botanicals Enterprise Ghana.
Bankers:

Pro credit Bank
Insurance: Bliss and Ananda Botanicals Ghana are making all arrangement concerning insuring of its company and workers.

Power supply:
Power supply is not available from the national grid to service the farm at these farming communities therefore, Bliss and Anada Botanicals Ghana needs to acquire its own standby generator in future.
Water supply:
The farm project is rain fed. This may disrupt production in time of long time drought. It may therefore become necessary for the farm to have irrigation system to ensure continuous farming activity.
Taxes and Tax incentive for
Foreign investors :
The government is a party to several bilateral and multilateral agreements that ensure protection of foreign investments. The government is pursuing a liberalized market economy. There are a number of tax incentives including tax holidays available for foreign companies wishing to establish or invest in
Ghana in the areas of agriculture and manufacturing, general services, building and constructions. Capital allowance is granted to all companies starting –up establishment in Ghana depending on the type of asset.
There are many taxes in operation in Ghana, but the most important as far as the project is concerned are income tax, value added tax and capital gain tax. Corporate tax for exports attracts about 8% whilst other sectors are levied 35% except for Hotel which attract 35% value added tax which replaced the sale tax, is levied at 12.5%. All these rates are reviewable.
Critical Risk:
This is a new business venture with no operating history and involves some degree of risk as any start-up business will meet. In analyzing this business plan, prospective investors should contact their financial advisors and carefully consider the following risk factors, which could adversely affect business.
Equipments:
The use of modern technology involves complex equipment. Faulty design and installation of the equipment may result in delays and substance cost and depreciation of the Equipment may conceivably be higher than anticipated.
Management experience:
Management has expertise in the hospitality industry along with marketing and financial risks.
Management also has over 5 years experience in the shipping industry.
Competition: There is a possibility that other competitors may enter into the industry, as there is a free entry and free exit into the market. But it is the buyer who matters.
Market destination:
The entry mode or channel of distribution is Germany, because it has the best international marketing channel that is viewed as an integrated system that satisfies both the customers as well as the company over all objectives.
The targeted markets are Germany, USA and Japan. This is to take an advantage of the trade market
(USA Western Europe and Japan) being the most popular foreign markets that have growth opportunities for the products overseas. We also understand that our product will be the foreign customer preference.
Products meet international standard: To ensure that the product is produced of organic material only, which is the required standard of production, the company has in addition to its organic certifiers, an
Agric inspector from India who gives guidelines on production and processing of its product for export into the EU-market.

Organic certifiers :
The company is certified by Institute for Marketecology (IMO)
Consistent supply:
To ensure continuous supply of the product in all season to meet demand Bliss and Ananda Botanicals
Ghana is making preparations to acquire two warehouses one at the production centre and one in Accra for the storage of processed product. Irrigation is a must for all year round production.
Human resource management:
All aspects of the operation and management of Bliss and Ananda Botanicals Ghana will be conducted by the managers. Until Bliss and Ananda Botanicals operation begin in earnest the managers will be responsible for the overall operation of the company, overseeing the production, processing, drying and packaging of the product. Eventually they will be responsible for hiring of personnel, supervising day-today operations and sales, and implementing major policy decisions.
In addition there will be farm supervisors both from Ghana and overseas to train and guide the workers on the farm. The company will be very selective when hiring employees in order to ensure a friendly, enthusiastic and responsible staff. In addition a qualified accountant will be employed to keep proper records and prepare financial statements for the company. The immediate objective of the company is to establish a positive and progressive corporate image that is backed by physical evidence of quality products at affordable prices. In addition is creating goodwill for the company through overseas and local trade-fairs and exhibitions.
Financial segment:
This section will explain Revenue and expenditure items. Below is the standard cost card of a kilogram of dried lemon grass leaf
Standard cost card:
FOB price: 1 kg: $1.50
20ft container = 5MT X 1.50 = $7500 X 3 per year = $22500.00
1.
Revenue: It is anticipated that 100% of exported lemon grass will be made on cash basis at the delivery (port) destination payable after checking in.
2.
Expenditure:
Salaries and Wages: salaries and wages will be paid as they fall due. Payroll expenses such as social security tax will be paid the month after the expenses are incurred. Overtime bonuses and holiday allowances will be paid in the month they incurred (utilities)
3.
An investor with $20,000 will receive 10% of his investment after every shipment for a maximum of 3years, and we have 3 shipments per year. So in calculation we have 10/100 X
20,000 = $2000 X 3 per year = $6000 X 3 years = $18,000.

*Amounts listed in Ghana Cedis
Estimated Project Budget for 1 year

Conclusion:
Bliss and Ananda Botanicals Ghana has discovered an economically viable and ecologically friendly venture with a very promising international market, which will in no doubt ensure maximum returns and good living standards for the company and its employees as well as farmers and consumers as a whole.
Though a young company and virtually a beginner, the future paints a clear picture of economic emancipation and this should challenge investors and financial institutions alike to invest in this venture.
As it stands the company needs GHC32,423.58
or $17,006.98
, to cultivate, process and export 5 acres of lemongrass per year. And it is anticipated that $22500.00
or GHC45000.00
will be earned from exporting (3) 20ft containers of dried lemon grass leaf per year from the 5 acres.
Profit:
It is anticipated that after deducting the production, processing and shipment cost of GHC 32,423.58
from the export earnings of GHC45000 , the company will be making a profit of about GHC12,576.42
or
$6,596.647
for the first year, this is expected to triple for the second year since most of the infrastructures would have been in place.
Future Marketing Plan:
According to our future marketing plan, we have planned working with all large and small –scale organic farmers throughout the country as well as developing our own organic agricultural projects where existing sources are not adequate in order to be able to meet the consistent demand of our buyers.
In future, we also see the establishment of this industry here in Ghana to extract the oil for export as part of the solution to Ghana's economic recovery.
Our future areas of production includes: Organic chili pepper, ginger and moringa.
Please for more information about the lemon grass market, please see the research brief included below :
Avia Collinder, Business Writer:
Studies by Jamaican re-searchers indicate that where land is already owned, the farming of lemon grass can yield almost four times the investment in a crop now in high demand from the market that prizes healthy eating and wellness.
Lemon grass is now in high demand worldwide and in Jamaica for food and non-food purposes - for the extraction of lemon oil, as well as flavouring for tea and other products, and as a spice. The product is more popularly known in Jamaica as fever grass, much of which grows wild.
Roselyn Fisher, general manager of Marketech, the marketing arm of the Scientific Research Council
(SRC), says an initial investment of $250,000 to plant one acre can return J$900,800 to the farmer. Highquality commercial cultivation of this aromatic crop is a viable proposition for the small farmer, Fisher claims. A one-acre plot can yield 13,700 kilogrammes of fresh grass per harvest, or 9,590 kg wilted. For this lot size, the number of harvests is expected to be three crops in year one, and four crops in years two to four, with replanting in year five.
The SRC study assumed that the farmer already owned land, and would fetch about J$40 per kg for wilted grass. At that price, the estimated 9,500 kg yield would gross J$1.1508 million. Profit would therefore;

amount to J$900,800.The SRC notes that recent commercial production of lemon grass in tea bags has encouraged formal cultivation for quality purposes, as opposed to harvesting from the wild.
The council says Manchester and St Elizabeth appear to be the forerunners in this regard, with several small-scale plots established over the past few years. Currently, in Jamaica, the dried lemon grass is used in the preparation of beverages, as well as value-added products, including extracted essential oil.
Cosmetic USAGE of the grass also falls within a wide array of beauty and aromatherapy products aimed at satisfying a growing market, with cosmetic products for commercial operations, including spas and beauty salons, as well as in the home.
Essential oils have also found their way in medicinal applications, being used to relieve nausea, muscle cramps and spasms, headaches, fever, and even to promote energy levels, the SRC notes. For the farmer, processing of the plant can lead to zero waste, as the spent leaves can also be used for animal feed and compost. According to the SRC, since the lemon grass market is still at the introductory stage of the product life cycle in Jamaica, "tremendous opportunities are open for several players to get involved along the value chain. The low-maintenance nature of lemon grass makes it a lucrative venture for farmers and other entrepreneurs.
“The SRC notes that a plantation lasts six years on average, as the plants are known to deplete the soilnutrient base. The SRC concluded its research on the viability of lemon grass in January 2010. According to Fisher, the council sees the establishment of this industry as part of the solution to Jamaica's economic recovery.
The SRC, to kick-start the local lemon grass trade, commenced working with entities, such as the Boodles
Agricultural Research Station, an agency of the Ministry of Agriculture, the Caribbean Agricultural
Research and Development Institute, better known by its acronym CARDI, and others, to examine R&D initiatives and market potential. Increasing demand Research shows, the SRC report states, that the world demand for lemon grass oil is increasing. Import/export data show India to be the largest producer, with about 80 per cent of its output sold on the world market.
The essential oil is traditionally exported to Western Europe, the United States and Japan. Lemon grass includes two distinct species: the East Indian variety, cymbopogon flexuosus (DC) staph, and West
Indian, cymbogopon citratus (DC ex Needs) staph. While there are no large commercial farms cultivating lemon grass locally at this time, it is a popular crop for small farmers in countries such as Guatemala,
India, Malaysia, China and Sri Lanka.
An important product of the grass is the oil, the quality of which is generally determined by the content of citral, the aldehyde responsible for the lemon odour. Citral is mainly used in perfumes and cosmetics. The oil also has germicidal and medicinal properties. The Jamaican farmer with an interest in growing lemon grass can put down plantlets or seeds on bauxitic, rocky limestone, clay, or loam soil. The crop will also thrive on 'sugar lands', in warm and humid climates, and requires irrigation once every three days.
Fertilizer is not necessary. Tropical temperatures will produce high-crop yields, the SRC says, noting that harvesting time is six months from planting of the first crop, and thereafter, three months. In drying, the grass is allowed to wilt for 24 hours before distillation to reduce the moisture content and improve oil yield. The dried grass is chopped into small pieces for extraction.
Currently, the world production of lemon grass oil is about 600 tonnes per annum. The SRC notes that the value of essential oil entering the US in 2006 was about US$7 billion, and the importation of essential oil mixtures for food and drink was 44,565 tonnes, valued at US$2 billion, with an average unit price of
US$46,543 per tonne.

The United Kingdom imported 27,102 tonnes, valued at US$632 million, with an average unit price of
US$23,326 per tonne. In addition to export, the opportunities inside Jamaica include import substitution to replace the J$100 million of essential oils and associated products brought in from overseas annually. avia.collinder@gleanerjm.com
YES – we have natural resources that are in demand all over the world. YES – as a people - we are innovative, resilient and ready to do what it takes to get back on our feet. YES – We have Brand
Jamaica.” Dr. Audia Barnett, Executive Director of the Scientific Research Council,Jamaica.
Jamaica’s Scientific Research Council (SRC) held an exposition on November 3, 2009, on Lemon Grass as one of several plants indentified with nutraceutical properties. Dr. Audia Barnett, Executive Director of the SRC opened the evening at the Devonshire, Devon House, Kingston, Jamaica, to a packed room representing a wide cross-section of investors – agro-processors, farmers, entrepreneurs and the curious.
The event aimed to highlight investment possibilities based on research developments in Lemon Grass.
EXIM Bank’s Managing Director, Pamella McLean and members of the Bank’s marketing team were on hand to respond to questions by potential investors on how to access funding for their projects.
In a paper written by Dr. Barnett, and published on the SRC’s website, she explained that “Lemon Grass, otherwise known as Fever grass in Jamaica, occurs locally as two main varieties – the short fluffy variety and the tall willow type. Each has excellent prospects due to the presence of components which are valuable in the food, household and personal products industries. Products on the market range from beverages and cosmetics to insect repellants. It is a hardy, easy-to-grow, versatile grass that proliferates on most soil types and is suited for our ‘sugar lands’. It has been used for centuries in the eastern countries for its soothing, calming and refreshing properties. Claims of its therapeutic value are rife and as such demand internationally is spiraling.”
Investment opportunities were on display at the Expo, in the form of lemon grass shower gels and body lotions both for personal care use at home and for the spa industry. Also on display were a variety of lemon grass teas packaged and ready for distribution. Lemon grass drinks and varieties of lemon grass teas were available for tasting.
In her speech, Dr. Barnett gave a brief review of investment possibilities in Lemon Grass and encouraged those present to invest in Jamaica: “YES – we have natural resources that are in demand all over the world. YES – as a people - we are innovative, resilient and ready to do what it takes to get back on our feet. YES – We have Brand Jamaica.”
EXIM Bank is able to provide financing to companies wishing to invest in Lemon Grass and the production of its derivative value-added products. Financing can be used to purchase equipment, upgrade facilities or for working capital. The current interest rate on local currency loans is 12% p.a.
Foreign currency loans are also available for exporters or foreign exchange earners. Potential investors are encouraged to speak with an EXIM Bank Credit Analyst prior to submitting an application, otherwise, interested companies may start their application for an EXIM Bank loan online at www.eximbankja.com
Lemon grass is not yet commercially grown in Jamaica. The oil is used for preparation of aromatherapy products, candles, soaps and insect repellent sprays. Western Europe and North America are the main buyers of lemon grass oil, with North American representing 33% of global demand, and Japan 10%.
Attached here are copies of companies’ registration documents.