has approached to several sub-Saharan countries to explore economic and investment opportunities, focusing on the growing of large quantities of rice and other associated foods. At present, T4M has progressed to a position where it wishes to commence its rice growing activities inGhana
where they have been requested by the Government to provide 500,000 tonnes of rice per annum by the year 2015. In order to achieve this, an area of farmland amounting to 30,000 hectares will be required.
The potential investment projects in Ghana and other Africa countries include T4M direct rice production farm, T4M rice farm estate, T4M agro-allied support services, T4M rice processing centre, T4M fish farm, T4M livestock farm, T4M cold store and abattoir centre, Cassava Project, etc.
Each 10,000 hectare farm (SPV) will require an investment of $US 25million to enable the development of the farm to move ahead successfully. This initial investment is to provide for expenditure on farm equipment, transport vehicles (logistics), labor and administration accommodation, managerial, clerical and general labor costs. A detailed analysis is available for these costs headings if required. An additional provision of $UD 10million would allow a further 10,000 hectare farm to be brought into production which would permit greater harvests to be achieved thereby improving the pace of financial return and social improvement. It is accepted that the additional funding would only be released subject to the satisfaction of the investor with the initial investment made.
Returns / Timescales
Each hectare of irrigated land will reliably produce 6 tonnes of high grade, long grain rice 3 times a year, giving a total annual harvest of 18 tonnes. T4M are currently producing in excess of this on similar farms, in Nigeria, where farm conditions are identical. The current world price for this quality of rice is in excess of $US 1,000/tonne. Based on these verifiable figures, and once full production is achieved after 12 months, sales receipts would be $180m per annum. With operational costs running at $35m per annum, the pre-tax profits are substantial.
Rice Project Operating Concept
The production and processing operations of the projects will be done on a large-scale basis with the use of most modern equipment and machinery available in agriculture. Thus machinery such as combined harvesters; rice-milling machine of high capacity etc. would be imported from the United States of America and Vietnam as well as other countries.
The major requirements for rice production are land preparation; quality seed for planting; equipment and machinery; labor; herbicides and fertilizer. This is with the assumption that the land has already been acquired.
The preferred varieties for the project could be any of the following: FARO 46 (ITA 150); FARO 43 (ITA 128); FARO 47 (ITA 117) and/or FARO 48 (ITA 301). These varieties are good for both local and international markets. Most of the modern rice milling equipment is standardized to meet the requirements of these varieties. Whichever variety of seed is used it will be of the HYDR type (high yield disease resistant) as used by T4M’s partners in Vietnam.
T4M intends to use between 80-100kg of seeds per ha. And, with irrigation facilities that are expected to be in place, planting operations are expected to be all year round. In order words, a minimum of three planting regimes would be observed on the farms each year. Land preparation will be mainly by ploughing once and harrowing at least twice to make good till. Basal application of fertilizer would be applied before final harrowing.
Direct contracts would be made with the major producers, or suppliers, of fertilizer products to ensure their all year round availability. If necessary, the company may import the fertilizers required directly through its foreign partners.
Bird control. Birds are problems after seeding and during grain maturity. In the implementation of this project, scaring of birds would be done using a variety of modern technology.
Grain yield of between five and eight tonnes per hectare per harvest is expected from the farms compared with the current Ghanaian national average yield (over the last decade) of two tones per hectare harvested, at best, at the rate of twice per year. Thus the T4M farms will produce at least four times as much rice per hectare as is currently being achieved. In addition the quality of the rice will be world-class and actually superior to the ‘ubiquitous’ Uncle Ben’s.
T4M is prepared to offer an Equity Investor providing the requisite financing, a 25% stake in the individual SPV Company for which the finance is being provided. This equity offer is based upon an initial investment of $US 25million with a further $US 10million being made available subject to investor satisfaction. This offer is intended to allow the investor a full return on the capital invested within an 18 month period. All fiscal matters are to be verified by mutually acceptable and suitably qualified consultants.
T4M currently has outstanding Governmental invitations to duplicate its unique agricultural program in the Gambia, Uganda, Liberia, Benin, Togo, Angola and the Democratic Republic of Congo.
For more detailed information, please contact us:
TRANS4mation Group of Companies
Address: Garthmyl Hall, Garthmyl, Montgomery, Powys SY156RS,United Kingdom
Tel.: +44 (0) 1686 640123
Mobile phone: +44 (0) 7968 344060
Fax: +44 (0) 1686 640111
Tel.: +44£¨0£©208 726 7800
Mobile phone: +44£¨0£©7950 357387