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Oil Processing Plant in Santo Amaro Community - Pará - Brazil

Production and commerce of regional palm fruit and seeds oil for cosmetic, chemical and food stuff industry. Surplus production for energy generation and commercialization.

Our project aims a sustainable and ecological use of the primarily forest in the Amazon basin by developing alternatives for wood and palm heart cutting for the local people.
This will be done with the implant of a small scale vegetable oil production unit in order to develop a model for the local communities now forced to live from wood and palm heart cutting.
We plan to develop a pilot plant on our concession, of almost 2000 hectares, near the City of Breves in the state of Pará in order to generate employment under a sustainable model. This plant will primaly assist a community called Santo Amaro and will be used as an example for other communities in this region.
This plant will serve as model and as base to professionalize local people.
We aim to work with various types of palm fruits and oil seeds species abundant in a natural way. These species are: Buriti, Pataua, Copaiba,Andiroba, Virola, Cupuaçu, Pará-Pará, Seringueira, Tapereba, Pracaxi, Paricá, Tatapiririca and Açaí.
To achieve this purpose, Ecomapua will implement a CDM Reforestation Project in the degraded areas, based on the diversified plantation of the seeds mentioned above.
Two main oil seeds will be used for the oil production: Andiroba and Ucuuba(virola). Andiroba and Ucuuba are available, due the fact that a Reforestation Consortion has already been carried out between the years 1972 and 1975.
These palm and oil seeds can be used in cosmetic, chemical, foodstuff and energy production and the demand is fast growing.
In the first year we will gather the UCUUBA and ANDIROBA seeds and sell them to an already interested client who visited Santo Amaro and offered us a fair price which will permit us to invest the second year in oil production equipment.
which will permit us to invest in oil production equipment for the second year crop.
The remaining fruit and seeds pulp will be used partly for fish, chicken and pork growing and the rest will be used to produce organic fertilizer for our reforestation project so returning bio mass into nature.

Facts

Year of establishment

2000

Sales (US$)
Two years ago:
Last year:
This year (forecast): 390,000
Year 2 (forecast): 471,900
Year 3 (forecast): 570,999
Net profit after tax (US$)
Two years ago:
Last year:
This year (forecast): 32,044
Year 2 (forecast): 56,966
Year 3 (forecast): 74,196
Total number of Employees
Two years ago:
Last year:
This year (forecast): 8
Year 2 (forecast): 10
Year 3 (forecast): 11

Finance needed

Finance needed for fixed assets (buying of machines, buildings, ...) 100,000
Finance needed for working capital (salaries, stock, rental, leasing, transport, ...)
Total finance needed (US$) 100,000

How do you expect this to be financed?

Own Contribution in cash
Loans (debt) 284,880
Shares in your company that you offer to investors (equity)
Other sources
Total finance needed (US$) 284,880

The Business

What is your product/service?

Our project will be build up in two steps.
In the first year we will gather the UCUUBA and ANDIROBA seeds and sell them to an already interested client who visited Santo Amaro and offered us a fair price which will permit us to invest the second year in oil production equipment.
This first year(2009 forecast) will be dedicated as well to build up the infra structure to implant the production unit.
We are negotiating with a large brazilian cosmetic company which also expressed his interest in buying the crude oil from the second year on thus avoiding transport costs of the fruit and economize 80%

We will produce raw palm fruit and seeds oil for cosmetic, chemical and foodstuff industry which will be send by boat to Belem (capital of Pará state, Brazil) where our future clients have their processing industry.
The five main (of the 11) species we pretend to work with are:
ANDIROBA: www.fao.org/docrep/v0784e/v0784e0t.htm#andiroba
UCUUBA : www.fao.org/docrep/v0784e/v0784e0w.htm#ucuúba
BURITI : www.fao.org/docrep/v0784e/v0784e0c.htm#buriti
COPAIBA : www.fao.org/docrep/v0784e/v0784e0r.htm#copaíba
PATAUA : www.fao.org/docrep/v0784e/v0784e0f.htm#patauá
The links above lead to a study of the FAO and will provide any information about our products, which would be too much to expose here.
All species mentioned are abundantly found in this region and easily to plant if needed.
On the Santo Amaro Project a vast area already has been planted with UCUUBA and ANDIROBA producing a great amount of seeds to be used in the oil production.

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

We already have contacts with future buyers willing to purchase our estimated oil production and based on the fast growing demand and innumerous application possibilities of the vegetable oil there will be more than enough future market to expand.
Future clients already visited our planned project and acknowledged the potential of our concession.
The demand of palm and seeds oil is so big and growing that we will associate with possible producers in this region instead of considering them as competitors.

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

We dispose of a large number of planted trees providing the raw material we need to produce the wanted amount of seeds and oil in a small area making harvesting easy.

The Entrepreneur & Management

Describe the entrepreneur & management

Chan Lap Tak, chinese, with Britain nationality. Mr. Chan is a senior director of Ecomapua.Mr. Chan is a graduate in Economics and International Relations from Brown University and holds a Masters in Finance from the University of São Paulo.
Janaina Nascimento is a trainee of Ecomapua. Ms. Nascimento is doing her graduation at Catholic University of São Paulo (PUC-SP). Ms. Nascimento has already developed academic works and researches, related to environmental questions and international negotiating through on behalf of the PUC-SP being part of a supervised training at MOP3/COP8.
Mr. Oudenniel has a vast field experience working in the forest. He has lived over 4 years in French Guyane where worked with the Waiana Indians building school in their settlements amongst other projects.
The last 5 years he has lived in the Amazon basin with the local people studying the possibilities of sustainable development based on the local reality and existing means in order to improve life of the local people and preservation of the forest.
He has gained a vast knowledge of the region, its problems, costumes and possible solutions combining field experience with investigation in internet and communication with Universities and authorities.
After almost 5 years in this region he is trusted and respected by the local people, which is primordial in order to develop a project in this region.

Development

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

With the implant of a small scale oil production unit in Santo Amaro we will provide a sustainable generation of income for 26 families now forced to live from wood and palm heart cutting.
This will be an example of how local people can live from the forest while preserving and our aim is to implant the same principal in other communities giving technical assistance and know-how.
Generating income for the local people means improvement in health, education and nourishment.

Needs
Advice - production, processing