THE BIO ONE STORY
This document outlines the Business Plan for “Bio-One Project Moringa (Kosi Bay)”, the first of a series of similar planned projects.
It tells the story of the project and reflects the relentless ‘blood, sweat and tears’ invested in the development of a truly empowering venture by the founder, Mr Abel van der Merwe. It is a story of turning unproductive land into valuable import replacement products (liquid fertiliser, edible oil and biochar) while creating employment to hundreds of people in local rural, poverty-stricken areas.
It is a story that should, and will, be cloned all over Africa and other developing countries.
Vast Stretches Of Unproductive Arable Land
Bio One Investments was born out of an African problem where vast stretches of good arable land are not cultivated at all due to a lack of both capital and know-how by the owners.
At the same time, the areas where these stretches of land are located happens to be in areas characterised by poverty and unemployment.
High Cost of Imported Foodstuff And Agricultural Inputs
Research indicated that the demand for both edible oil and fertilisers in South Africa is met through importation that results in exorbitant high prices to consumers and farmers.
Deforestation and other distortions in the production of charcoal
Many studies have concluded that pay, working conditions and environmental considerations are sadly lacking across large swaths of African in the production of charcoal as an energy source.
Project Moringa, developed by Bio One Investments, addresses all three problems outlined above.
What Is Project Moringa?
It is a farming and production operation on 8,000 ha of land that will entail the planting of Moringa trees (Moringa oleifera), the interplanting of Vetiver grass (Chrysopogon zizanioides) and the production of three core products, namely:
- Liquid fertiliser – Solving the problem of expensively imported fertilisers.
- Edible oil – Solving the problem of expensive imported edible oil.
- Biochar briquettes – Solving the problem of using natural forestry/trees for fuel.
Each Moringa Project will employ more than 700 local people.
What is Moringa Oleifera?
Moringa oleifera is a fast-growing, drought-resistant tree, native to the southern foothills of the Himalayas in northwestern India, and widely cultivated in tropical and subtropical areas where its young seed pods and leaves are used as vegetables, and many parts of the tree are used in traditional herbal medicine. It can also be used for water purification and hand washing.
Moringa oleifera can be cultivated for its leaves, pods, or its kernels for oil extraction and water purification.
In developing countries, moringa has the potential to improve:
- boost food security,
- foster rural development, and
- support sustainable land care.
It may be used as:
- forage for livestock,
- a micronutrient liquid,
- a natural anthelmintic, and
- possible adjuvant.
Also see the Appendix – Moringa Oleifera, Nutritional Information.
The global edible oils market is expected to register a CAGR of 5.1% to reach an estimated value of $130.3 billion by the end of 2024. South Africa consumes about 1.2 million tons of vegetable and oilseed oil per annum. The edible oil produced by Bio-One represents only 0.016 per cent of this market.
The market for fertiliser in SA is conservatively estimated at 706 million kg or 706,000 ton. Production forecast by Bio One of liquid fertiliser is only 0,06 per cent of the SA market.
According to the United Nations Environment Program (UNEP), firewood and charcoal alone provide more than 40 per cent of the energy used in Africa. In fact, around 80 per cent of households on our continent depend on wood and charcoal as a primary energy source.
The annual production of charcoal is estimated at around 50 million tons (FAO data 2016). Europe provides a big market with Germany alone importing 250,000 ton per year.
We are of the opinion that there are compelling reasons why an investment in Bio-One Moringa Projects makes good business sense.
- Solving Real and Tangible Problems – Unproductive land, high food and agricultural input costs, unemployment and environmental degradation.
- Off-take Agreements – Off-take agreements have been secured that means 100 per cent of the products has been ‘sold’ before commencing of operations.
- Fast-growing, Drought-resistant Perennial Plants – Reducing the risk of adverse weather conditions.
- Highest Biomass Yielding Plants – Ensuring maximum productivity and yields/ha.
- No Wastage – Maximising productivity and ROI for owners.
- Energy Self-sufficiency – Reducing operational cost and reducing the risk of power outages.
- Comfortable Competitive Pricing in General – Leaving room for price negotiations should it be necessary.
- Dust Free & Waterproof Biochar Briquettes – Creating enormous competitive advantages regarding storing and bulk shipping.
- Community-Based Land Model – Solving problems for traditional leaders and empowering local communities.
- High Net Profit Margins – Providing incentives for investors and owners and creating scope for horizontal and vertical expansion.
Every Bio-One Moringa Project is estimated to break even within the first year of operations, with an expected net profit of more than US$ 2 million in year one from liquid fertiliser and biochar sales.
From year two the estimated net profit is more than US$ 20 million per year when edible oil is added to the product range.
The financing required to establish one Bio-One Moringa Project is US$ 4.5 million.
Abel van der Merwe | +27 61 493 2256 | email@example.com