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Jatropha Propagation

An Integrated Approach to Rural Development

  • jathropa.jpg

    jathropa.jpg - 

    Jathropa Plant

Under the Forest Land Management Agreement (FLMA) with the Department of Environment and Natural Resources, I intend to plant Jathropa in a 6,000 hectare land in Zamboanga Peninsula. My traget market will be the existing biofuel processing plants in Cagayan de Oro City and the Philippine National Oil Company (PNOC).

Facts

Year of establishment

1997

Sales (US$)
Two years ago:
Last year:
This year (forecast): 12,500
Year 2 (forecast): 62,500
Year 3 (forecast): 250,000
Net profit after tax (US$)
Two years ago:
Last year:
This year (forecast): 2,700
Year 2 (forecast): 13,750
Year 3 (forecast): 75,000
Total number of Employees
Two years ago:
Last year:
This year (forecast): 15
Year 2 (forecast): 45
Year 3 (forecast): 80

How do you expect this to be financed?

Own Contribution in cash 10,000
Loans (debt) 50,000
Shares in your company that you offer to investors (equity)
Other sources 10,000
Total finance needed (US$) 70,000

The Business

What is your product/service?

Jatropha curcus is a drought-resistant perennial, growing well in marginal/poor soil. It is easy to establish, grows relatively quickly and lives, producing seeds for 50 years.

Jatropha the wonder plant produces seeds with an oil content of 37%. The oil can be combusted as fuel without being refined. It burns with clear smoke-free flame, tested successfully as fuel for simple diesel engine. The by-products are press cake a good organic fertilizer, oil contains also insecticide

Jatropha grows wild in many areas of India and even thrives on infertile soil. A good crop can be obtained with little effort. Depending on soil quality and rainfall, oil can be extracted from the jatropha nuts after two to five years. The annual nut yield ranges from 0.5 to 12 tons. The kernels consist of oil to about 60 percent; this can be transformed into biodiesel fuel through esterification

Jatropha curcas grows almost anywhere , even on gravelly, sandy and saline soils. It can thrive on the poorest stony soil. It can grow even in the crevices of rocks. The leaves shed during the winter months form mulch around the base of the plant. The organic matter from shed leaves enhance earth-worm activity in the soil around the root-zone of the plants, which improves the fertility of the soil.

Regarding climate, Jatropha curcas is found in the tropics and subtropics and likes heat, although it does well even in lower temperatures and can withstand a light frost. Its water requirement is extremely low and it can stand long periods of drought by shedding most of its leaves to reduce transpiration loss. Jatropha is also suitable for preventing soil erosion and shifting of sand dunes. (www.jatrophabiodiesel.org/index.php)

Initially, I will utilize local farm hands. But as the plantation grows bigger I intend to purchase tractors. Seeds will be sourced from suppliers from the area, as well as my plantation.

For the first year, I will be hiring a minimum of 15 farmers and will subsequently increase as the project grows.

I have been contacted by prospective buyers such as the agents of the processing plant in Cagayan de Oro City, as well as the PNOC and a group of investors who will be putting up a processing plant in Dipolog City.

Explain how you will sell your product/service (marketing strategy) and how you will reach your customers (distribution strategy)?

I have already talked to the buying agents of PNOC, biodiesel processing plant in Cagayan de Oro City, and the investors of the proposed processing plant in Dipolog City. All of them need big quantities of Jathropa, in anticipation of the growing demand due to the implementation of the Biofuel Law.

There is a massive demand for Jathropa that the current supply cannot meet this demand.

What makes your business different/better than your competitors (competitive advantage)?

Jatropha, the wonder plant produces seeds with an oil content of 37%. This is an ideal raw material for the production of biofuel, easy to propagate and requires a relatively minimum investment.

The Entrepreneur & Management

Describe the entrepreneur & management

Being in the Agribusiness for 10 years and having planted Jathropa this year, I have acquired the expertise and know-how need for this project. So far, my Jathropa plantation has been successful due to the ideal climatic and terrain conditions in the area.

In the past, when I started organic farming, this technique was unfamiliar to the farmers, being used to commercial fertilizers. The farmers did not believe in this method that they did not follow instructions correctly. Moreover, due to the adverse climate change as a result of global warming, I incurred loses. I learned that I should be hands on and closely supervising farmers in the application of organic fertilizers and to expect sudden changes in climate patterns. However, Jathropa is a sturdy plant that is not easily affected by inclement weather. This is the reason why I decided to concentrate on planting Jathropa.

Development

How does your business improve the local living standards (social and environmental)?

The Jathropa project will generate jobs and provide employment to the local community. Since the whole community will have an active involvement in the project, this will help alleviate the current poverty experienced by the people.

Improving the lives of the community will also lead to improved economic conditions and families will have increased purchasing power. Small businesses will thrive, such as sari-sari stores (small neighborhood convenience stores). In turn, this will spur economic growth in the community.

Standard of living will improve and families will be able to afford to send their children to school. Children will no longer be exploited and child labor will be avoided since families will have sufficient income to provide for their family.

3 comments

Coach

As for the BiD competition I am invited to be your coach for developing/improving your business plan. Being an entrepreneur in the field of bio-fuels myself, I can be of assistend for the larger part of your enterprise.
I do grow Jatropha but being located in Holland on a very small scale. Most of the oil I use is waste oil and fats (cooking oil) to convert to bio-diesel (FAME) or use it directly.
Potentially I am a user of Jatropha (up to 40 tons/month).
I do have connections with a project in Honduras (Gota-verde) where unused ground is being replanted with Jatropha serving exactly the same purpose as you strive. So I do have connections/information to supply seeds, to sell the oil and to enhance local economies with the help of bio-fuels.
Regards,

Ger Groeneveld

Ger Groeneveld, 15 July 07, 10:39

congragulations

it a good business plan,keep it up so that we clear poverty and protect enviroment.God Bless You

james karokola, 8 Aug 07, 10:27

Very interesting

Hi Ger,
I am really interested to plant jathropa in our 18 hectare land in Negros Occidental but I don't know where to find the seeds/seedlings and where to sell the seeds we get from our farm.

I would really appreciate it if you can help me .
Thank you so much,
Elizabeth

Elizabeth Chambers, 10 Nov 08, 04:12
Needs
Advice - agricultural, Advice - business management