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Business start-up

5

PHILIPPINE JATROPHA CURCAS OIL COMPANY

The Creation of Jatropha Oil Cottage Industry For Bio-Diesel and Soap Making

Energy, especially from fossil fuels, is a key ingredient for all sectors of a
modern economy and plays a fundamental role in improving the quality of life in less developed economies like the Philippines.

There are many ways to make Money out of Jatropha plant.
Bio fuel, "Diesel" from Jatropha has the ability to lift many people from poverty to financial independence, from despair to respect and unemployment to business owners.

The main cause of the business is the establishment of the bio-diesel plant with a community-based system attached to help the farmers. The system includes the trainings and seminars to be conducted by the company to educate the farmers about the Jatropha economy such as Jatropha farming, oil extraction and soap making. The involvement of the association of farmers is the company’s interest to create a source of the seed materials for bio-diesel production besides the livelihood that will be created for plant growers and farm owners. The overall flow is the creation of the market of Jatropha seeds for the farmers and the production of bio-diesel to help the country reduce the importation of crude oil.

JATROPHA PLANTATION HAS A BIG CHANCE TO CREATE BUSINESS OPPORTUNITIES IN THE PHILIPPINES:
1. PLANTATION OF JATROPHA.
2. EXTRACTION OF OIL & VALUE ADDITION.
3. PRODUCTION OF BIODIESEL.
4. PRODUCTION OF HERBAL SOAP (Value Addition for Jatropha Oil consumption).
5. GENERATE ECONOMIC LIVELIHOOD.

Facts

Year of establishment

2008

Sales (US$)
Two years ago:
Last year:
This year (forecast):
Year 2 (forecast): 6,591,823
Year 3 (forecast): 8,112,951
Net profit after tax (US$)
Two years ago:
Last year:
This year (forecast): -803995
Year 2 (forecast): +169756
Year 3 (forecast): +269216
Total number of Employees
Two years ago:
Last year:
This year (forecast): 82
Year 2 (forecast): 164
Year 3 (forecast): 228

The Business

What is your product/service?

The proposed project is designed to produce and sell bio-diesel oil from Jatropha Curcas seeds – at a rate of 2,408 to 5,420 metric tons per year – to diesel engine users and to petroleum chemical companies in the Philippines and elsewhere, for the purpose of using it as fuel in mixture with the ordinary diesel fuel.

In addition, as the Project includes the establishment of Jatropha Curcas plantation for a stable sourcing of raw materials. The organizing a community based system will ultimately create business for farmers and farmland owners and thousand jobs, including the bio-diesel oil refinery and the plantations, thereby contributing to the reduction of the unemployment rate and regional development in the country. Plantation of 1000 hectares which expected to produce 4 to 9 kilogram of seeds per plants or 8,431 to 18,970 metric tons per year.

It should be noted, however, that cultivation of Jatropha Curcas will not meet demand for seeds to be used for refinery operation in the startup stage. The production of bio-diesel expected on the second year of the project. The Organization of farmers and farmland owners and the cultivation of Jatropha will be parallel to the construction of the refinery.

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

Sales

We believe there is currently a positive market environment for bio-diesel driven by high energy prices and positive government support. We are well positioned to capitalise on growth opportunities in bio-diesel market on the basis of the annual diesel demand is about six billion liters. Our company is not enough to meet this demand and still the country needs the one we have. Competition is far along the way but collaborators, of course competition is expected when the six billion liters demand of bio-diesel requirements be meet, but that is the hope of the nation from the dependents of the regular imported diesel.

Marketing & Communication

Radio and TV programs and Print media will be the option for promotional tools in educational way. The benefits of Jatropha will be discussed in the promotion, such as the quality of the bio-fuel, the contribution to the country's economy. The company will promote the spirit of nationalism by buying our own product.

The company will also promote the concept of the business to help prospected participants who have idle lands and other interesting parties who are willing to be part of the industry. With this move it will help people to have option for additional profit and employment opportunity through Golden Treasure Seminars.

Distribution

The Jatropha Oil Company will establish at least 3 distribution channel one in southern and 1 in Northern part of Luzon and one in the center of Metro Manila as well as the company will use existing distribution channels like the existing oil companies that are using bio-diesel blend.

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

The product is a renewable source of energy. The system is self sufficient for economic growth. We provide education to help the country aware the needs for bio diesel which contributory not only minimizing the air pollution but also for having a profitable livelihood system which is the coordination of the market, needed education and training for the cottage industries and providing capital through a cooperative in the form of resources for the production of Jatropha.

The Entrepreneur & Management

Describe the entrepreneur & management

Virgin Coconut Oil (VCO) Industry can be the same as Jatropha oil Production. In my experience in VCO production 3 years ago, with the help of my friend Mr. Louie Tabing a mass producer of VCO in the place of Batangas. Jatropha will be as exciting as VCO for the Philippine Oil Industry. My passion in oil production from plants was trigered by the growing demand of VCO then I established a Trading Company to market the product. Same as VCO, I believe Jatropha Oil from propagation to oil production will be a big help for the country's economy. With the help of the trainings and seminars from the Golden Treasure skills and Development Program Inc. in jatropha oil production will be the best tool to mold the industry. Golden Treasure is a training center which my friend Ms. Emily Diaz founded 6 years ago until now still training people especially in soap making. Golden Treasure is well known in Soap Making Seminars and has already trained almost 6,000 participants. Using the training system of the Golden Treasure will be a great tool to train people the economy of Jatropha Oil Industry.

Development

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

A further study indicated that if the Filipino farmers planted 6,000,000 hectares of jatropha seeds, the Philippines need not to import diesel fuel from other countries.

Jatropha is becoming a poster child among some proponents of renewable energy and appropriate technology, especially as an oil-bearing, “drought resistant” tree for marginal lands for small farmers.

These private farming programs will be coordinated with the government Philippine Forest Corporation especially after we justified to them that this program will utilize the following:

a. Help in soil erosion prevention in idle lands of the country

b. Help in poverty alleviation through employment of farmers. We have considered informal settlers to be provided two or more hectares as part of a livelihood program.
The company believes that if our farmers will be guided with proper skills training they will learn the way not only being skilled farmers but also a good entrepreneur and earn more profit than they used to be. If we provide the farmers and other participating grassroots a better income and then it is realistic that they can avail housing programs and a more financial power.

c. Effect transmigration of informal settlers in the Metro Manila area.

d. Utilize waste land or land that will require reforestation.

e. Introduce local bio-diesel production that will be ideal for the numerous islands of the Philippines, which will save on extensive transport costs.

This is the time to move on towards renewable resources before the worst of oil crisis comes in. Let’s not wait until the fuels from deposited fossils to be consumed before we make our move, be a part of this contributions enhancing the renewable resources is the best way to protect the basic needs of the country which is the energy. I believe this is the realistic future and the real treasure that God has wanted us to protect the earth's environment. There is no absolute security in depending on fossil fuel because they are just deposited which cannot be renewed as resources and none would be left someday. Let’s all go and support Jatropha Bio fuel production and other forms of renewable energy. And this is the hope of most developing countries like my country the Philippines.

5 comments

Your Project is of Interest to Me

Hello Joseph, I am a British-trained Nigerian participating in the BiD Challenge 2007. I am interested in your project. We can have relationship as I am very much into small business incubation facilities designed for the production of job creators in Nigeria.
Your line of project will help to support income generating beyond the border of your country.
You can reach me on email: isbume@yahoo.com
Remain blessed.

Segun Benson

28 May 07, 21:19 Segun Benson, 28 May 07, 21:19

Hoping to Share Something For Our Country's Future...

Hi Joseph, my name is Lisa. I'm Filipina and rightnow working here in Japan...but in future will stay there in our country. I have an idle land which I have inherited from my father in Bohol and wondering to use it in planting jatropha carcus. Aside from that I would also like to know a lot of informations about the Marketing Projects and Systems of the company.Hoping for your response as soon as you've got time or just before I went back in the Philippines on maybe 1rst week of April so that I could fix my schedule for I'll also be going to Bohol. Here's my Email: dxqqw279@ybb.ne.jp or annali_mendez@yahoo.com.ph Thanks for Time...Lisa Mendez

27 Jan 08, 13:34 Anna Lisa Mendez, 27 Jan 08, 13:34

I want to be a part of it

Hello Joseph, I am also very very interested to use our land for jathropa carcus. We have 18 hectares in Negros Occidental and I am very excited with this project the problem is I dont know where to get the seeds/seedlings and where to sell the ones we harvest later.

Any help would be greatly appreciated,
Elizabeth
echambers2k@yahoo.com

Thanks :-)

10 Nov 08, 04:55 Elizabeth Chambers, 10 Nov 08, 04:55

count me in

please email me the details including contact infos. thanx. this is my email add: mrk_xenos@yahoo.com

9 Mar 11, 01:31 mark de fiesta, 9 Mar 11, 01:31

I am so interested.

please update me regarding this exciting opportunity.
I love farming and business as well. Please include me in your list of followers.

My email address: dennisdaxen@yahoo.com

30 Nov 11, 17:04 Dennis Garcia, 30 Nov 11, 17:04