pre-feasibility off season vegetable farming (high tunnel) presented by: muhammad basharat (57509)...
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PRE-FEASIBILITYOFF SEASON VEGETABLE FARMING (HIGH TUNNEL)
Presented by:
Muhammad Basharat (57509)
Shazaib Makhdoom (56574)
Bilal Kashmiri (57010)
Sheroz Khan (57491)
Presented to : Sir Raza Kamal
BUSINESS DESCRIPTION
Vegetables can be cultivated in off-season, with introduction of techniques like tunnel technology, in which temperature and moisture is controlled for growth of vegetables in specific conditions. The proposed project is designed as a medium sized off-season vegetable farming unit on 3.5 acres of land. Off-season vegetables, such as, tomatoes, chillies / hot pepper, cucumber, brinjal, sweet peppers, ridge-gourd (teenda) and bitter-gourd (karela) can be cultivated using high tunnel technology. However, for the purpose of this pre-feasibility, three crops are being proposed, namely, tomato, sweet pepper, and cucumber.
The farm will provide employment opportunities to seven (07) individuals directly, while seasonal pickers & packers would also be required. The estimated yield potential of the farm varies according to the selected type of vegetable. With above mentioned vegetable mix, yield of 148.5 tons per season excluding 10% wastage can be attained. The legal status of the proposed project can either be sole proprietorship or partnership.
CRITICAL FACTORS
Proper soil analysis for determining soil nutritional level. Use of high quality hybrid seeds. Fertile land and its maintenance within the tunnel during the
period of cultivation. Timely control of pests, diseases and implementation of all
recommended agronomic measures. Selection of profitable vegetables on the basis of best analysis
of cost and revenues for a given season. Cost efficiency through better management.
CONTINUE…
Maintenance and control of internal temperature and humidity of the tunnel.
Timely irrigation, fertilization, training and grading of plantation. Fertilization as per expert(s) recommendation.
Appropriate post-harvest arrangement for washing, grading, packing, and transportation of product to the market.
INSTALLED & OPERATIONAL CAPACITY Following table provides information on the total production, exclusive of 10% wastage.
Vegetables
Area (acres)
Unit
Qty
Total
Production (Kg)
Tomato 1 .5 No. of Plants 22,500 81,000
Sweet pepper 1 No. of Plants 14,000 22,500
Cucumber 1 No. of Plants 18,000 45,000
GEOGRAPHICAL POTENTIAL FOR INVESTMENT
As per the information gathered from Agriculture Department, Government of Sindh, and National Agricultural Research Center, Islamabad, following are the potential areas of off-season vegetable production:Dehrki, ubaro, Ghotki, Sukkur, Pano Aqil, Mir Pur Mtheloo, Dubar, larkana, mityari, saleh pat and etc.
POTENTIAL TARGET MARKETS / CITIES
Keeping in view the product price level, demand and purchasing
power of customers; whole sale vegetable markets in metropolitan
cities / urban areas are the potential markets for off season
vegetables.
We will focus on Dehrki, ubaro, Ghotki, Sukkur and Pano Aqil
because these areas better for investment and there consumption of
vegetables are better.
HIGH TUNNEL STRUCTURE SPECIFICATIONMaterial Material Description
Specification
Bamboo Diameter 2-3 inch Length8.5-20 ft (Different lengths)
Plastic 0.06 mm thick Tunnel Height 10 ft
Specification Width 30-32 ft
Length 200 ft No. of tunnels 6 per acre
SUPPORT STRUCTURE
Each tunnel will be 200 feet long, 10 feet high and 30-32 feet wide.
The tunnel is built by 2-3 inch diameter bamboo having 8.5-20 feet
length. The bamboos are fixed at regular distance of approximately
10 -15 feet. Each tunnel structure will then be covered by 0.06 mm
thick plastic sheet. Approximately 6 tunnels can be constructed on an
acre of land depending on the type of vegetable, i.e. tomato, sweet
pepper and cucumber.
PROJECT COST SUMMARYProject Economics
The proposed vegetable mix is tomato cultivated on 1.5 acre of land and sweet pepper & cucumber
cultivated on 1 acre each. The estimated produce would be 81 tons of tomato, 22.5 tons of sweet pepper
and 45 tons of cucumber excluding 10% wastage.
Vegetables Area
No. of Plants T o ta l P r o d u ctio n
(a c re s )
Quantity (kg)
Tomato 1.5 22,500 81,000 Sweet pepper 1 14,000 22,500
Cucumber 1 18,000 45,000
Total Production Capacity
PROJECT ECONOMICSDescription Details
Internal Rate of Return (IRR) 38%
Payback Period (Yrs) 3.23
Net Present Value (NPV) Rs. 4,583,669
Returns on investment and its profitability are highly dependent on the
entrepreneur having some practical knowledge about agriculture & farming,
selection of fertile land, selection of high yield seed, cultivation, vegetables and
selection of right time for vegetable cultivation.
PROJECT FINANCING
Description Details Total Equity (10%) Rs. 219,995
Bank Loan (90%.) Rs. 1,979,956
Markup to the Borrower (%age/annum) 8% Tenure of the Loan (Years) 8
Grace Period (Years) 1
PROJECT COST
Capital Investment for the Project
Capital Investment Amount (Rs.)
Machinery & Equipment 65,000
Tunnel Equipment 488,950
Pre-operating Cost 25,000
Total Capital Costs 578,950
Initial Working Capital 1,621,002
Total Project Cost 2,199,952
LAND REQUIREMENT
Vegetable Land Utilization Land Lease Cost Total Land Lease
(A cr e s) per Acre (Rs.) Cost (Rs.)
Tomato 1.5 50,000 75,000
Sweet pepper 1 50,000 50,000
Cucumber 1 50,000 50,000
Total 3.5 175,000
As land will be acquired on lease, hence total land lease cost during 1st year would be approximately Rs. 175,000.
LIST OF MACHINERYDescription Replacement Q u a n tity C o st Total
Y e a r R s./u n it Rs.
Working Tables 5 3 5 ,0 0 0 15,000
Chairs 5 6 2 ,5 0 0 15,000
Farm Tools (Hand Tools) 5 1 2 0 ,0 0 0 20,000
Spray Machines 5 3 5 ,0 0 0 15,000
Total 65,000
STRUCTURE REQUIREMENT FOR HIGH TUNNEL
Replacement
Unit U n its Unit T o ta l
Description
fo r 3 .5
Cost
Amount Y e a r
/A cr e
a cres
(Rs.)
(R s .) Bamboos (No.) 3 1 0 8 0 3,780 110 415,800
Wire (G. Iron) (Kg) 3 40 140 135 18,900 Wire stretchers (No.) 3 1 0 0 350 75 26,250
Structure installation cost 3 8,000 28,000 Total Cost 488,950
RAW MATERIAL REQUIREMENTS
P la n ts C o st
Vegetables
Area N o . o f P la n ts
U n it R a te Total Cost
(a c re s )
R s.
of Plants
Tomato 1.5 22,500 2.45 55,125
Sweet pepper 1 14,000 1.80 25,200
Cucumber 1 18,000 3.00 54,000
Total Cost of Plants 134,325
OTHER RAW MATERIAL REQUIREMENT Farm Inputs U n it Q ty /A cr e Unit Rate Total Fertilizer
(Rs./Bag) Cost (Rs.)
CAN B a g s 3 2,250 23,625
Nitrophos B a g s 5 3,500 61,250
DAP B a g s 3 4,250 44,625
SOP B a g s 3 4,250 44,625
Total 174,125
HUMAN RESOURCE REQUIREMENT
Description N o . o f Salary per Salary / Employees Month Season
Owner / Manager 1 25,000 200,000
Permanent Labor 6 12,000 504,000
Total Staff 7 704,000
Human Resource Requirement (Temporary)
D e sc r ip t io n
Number Wages (Rs. per Total Seasonal
picking / person)
W a g e s (R s .)
T e m p o ra ry
11 Male: 250
144,375
Labor Female: 250
EXPECTED PRODUCTION AND LAND UTILIZATION
Vegetable Land Sale Price First Year F ir st Y e a r U tiliz a t io n (Rs./ Kg ) Production excl. S a le s (A cr e s) W a sta g e (K g ) Revenue (Rs)
Tomato 1.5 25 8 1 ,0 0 0 2,025,000
Sweet pepper 1 30 2 2 ,5 0 0 675,000
Cucumber 1 15 4 5 ,0 0 0 675,000
Sale of empty fertilizer bags 490
Total Sales Revenue 3,375,490
REVENUE ASSUMPTIONSales price growth rate 10%
Percentage wastage 10%
Production capacity utilization year 1 – 10 100%
OTHER COST ASSUMPTIONSTransportation of farm produce
Cost per kilometer (Rs.) 25
Farm to market distance (km) 125
Per trip cost (Rs.) 3,125
Load per trip (tons) 2
No. of trips 74
Pesticides expense per Acre per season (Rs.) 40,000
Water expense
Number of months for irrigation 7
Total number of irrigations per season 10
Cost per irrigation per acre (Rs.) 450
Total cost of green manuring, land preparation and sowing per 12,500 acre (Rs.) Total cost of Mechanical Hoeing – twice per season per acre 1,750 Average packing expense per kg (Rs.) 1.06