BUSINESS OPPORTUNITY PROFILE
Prepared for the
Inward Investment Facility
Linden Economic Advancement Programme
TABLE OF CONTENTS
REGION 10 3
BUSINESS ENVIRONMENT 4
EXECUTIVE SUMMARY 5
THE OPPORTUNITY: ORGANIC FARMING 6
PRODUCTION PROCESS AND TECHNOLOGY 11
REQUIREMENTS FOR SETUP 14
ANNUAL FINANCIAL PROJECTIONS 15
FINANCING SOURCES 17
There are numerous exciting business opportunities in Region 10 for investors who wish
to invest in agriculture, agro-processing, small-scale mining, manufacturing, logging,
sawmilling, tourism, transportation industry, or services to name a few.
LEAP Inward Investment Facility (IIF) recognizes that potential investors need
information on business opportunities. This series of Business Opportunity Profiles is
intended to help investors identify viable opportunities in the various sectors.
These profiles address generic issues such as the appropriate technology involved and
where possible, potential markets, estimated investment and production costs. However
they are not intended to be replacements for project feasibility studies.
Selection of technology, financing plans, feasibility studies and other related issues
remain the responsibility of the investor. All financial quotations are in US$ unless
Region 10 is the logical hub for Guyana’s development. With an area of over
16,835sq.km (6,500sq.miles) it is centrally located and contiguous to most other
administrative regions. It has abundant land and natural resources, and is the natural
gateway into the hinterland’s forest and mineral reserves. Boasting excellent river and
road transport links out to the coast, it is also the natural choice for Atlantic–bound South
American trade. Besides the town of Linden there are significant communities in
Coomacka, Old England, Great Falls, Rockstone, Anarika, Mabura, Ituni, Aroima and
At present, the main economic activities are mining, logging, agriculture, fishing,
transportation and distribution along with manufacturing and construction.
THE TOWN OF LINDEN
Linden, with a population of approximately 30,000 1 is the Region’s main population
centre and is located inland from the coast, 107km (66miles) from the capital city
Spread over an area of 142sq.km (55sq.miles), the town is situated on the two banks of
the Demerara River. Originally a mining town, whose economy had been based on the
bauxite industry, the town is redefining itself as a key port of call in and out of the
hinterland. Aware that the time of the “Bauxite economy” is over, the population is
increasingly involved in small business activities like merchandising, furniture
manufacture, and construction, thereby transforming the town into a centre for industrial
Census 2000 – Statistical Bureau
and service activities. Linden is also a supply centre for hinterland communities and
Some of its specific strengths are:
• The size and layout of the town lends itself to easy manageability of its resources.
• There is a well developed network of utility services including stable electric
power, water supply and telecommunication services.
• The town itself possesses abundant natural potential in mineral and forest
resources in its immediate environs, and land is available for potential
• The location of the town on both banks of the Demerara River provides for easy
transportation arrangements and lends itself to development of an entrepôt facility
for Atlantic-bound Brazilian goods.
• Linden has an essentially young population with 85% of its residents under 45 yrs.
• Linden-based Industries are less prone to natural disasters than those along the
The Government of Guyana has approved various general and sectoral incentives as
part of its comprehensive strategy aimed at reviving the economic fortunes of Region 10.
These incentives can be found in:
• Customs (Amendment) Act No. 6 of 1999,
• Investment Act No. 1 of 2004
• Customs Duties (Amendment) (No.1) Order 2004.
Special Incentives for Region 10 and specifically for Linden, Ituni and
• Waiver of Customs duties and Consumption taxes on all imported items of plant,
machinery, equipment and spare parts.
• For manufacturing and agricultural investments, waiver of Customs duties and
Consumption taxes on vehicles imported exclusively for use in the business.
Worldwide, organic farming products are becoming more and more popular as the
cumulative effects of decades of chemically assisted farming take toll on the ecosystem
and human life. Susceptibility to diseases has been traced to excessive consumption of
genetically engineered and altered foods and their derivatives. The world is becoming
increasingly “green conscious”. Huge markets exist in developed countries in North
America, Western Europe and Asia for foods grown the natural or organic way with
minimal or no chemical pesticides and fertilizers. Conservative estimates put the annual
worldwide market at US$20bn, an amount so attractive that whole countries e.g. New
Zealand have converted to strictly organic farming despite higher operating costs and
lower yields, which are made up for by higher prices paid in the market place.
The Caribbean generally is a well respected source of food and should be able to cash in
on the opportunities for organic food exports providing the move is made from chemically
supported agriculture to the organic model. However only a few countries (Guyana,
Suriname, etc.) in the Caribbean are poised for growth in the agricultural sector, mainly
because their natural endowment of croplands exceeds other territories. In Guyana,
Linden situated in almost virgin forest is a particular haven for ecological farming having
extensive unspoilt natural sources of irrigation, arable soil, and good climate. It is also
well outside the disaster prone islands of the sister Caribbean territories and even
Guyana’s own flood prone coastlands.
The land in this riverain community is essentially arable and several crops popular in
organic farming cuisine are grown here including both fruits and vegetables. Natural
fertilizers in the form of pen manure and organically developed compost is already
popular and preferred over chemical counterparts because of easy availability and low
cost. As the gateway to the interior Linden is fast becoming home to a number of mining
and logging industries that operate large kitchens for their workers and which have a
huge demand for local vegetables and fruits. An established farming outfit that boasts
organic produce with longer shelf life should be particularly attractive to these operators.
The development of export trade in these products will take time and can best be
pursued by a syndicate of operators who can negotiate prices with foreign markets,
Linden is well served by developed waterway and road transportation links, making the
Region 10 area easily accessible to container trucks and boats to take produce out.
Newly established packaging facilities set up to international standards for export are
relatively close by on the upper East Bank.
Advantages to investing in this industry:
• Good average returns on investment
• Recovery of investment less than 2 years
• Year round availability of markets and materials.
• Linden has the country’s cheapest commercial electricity:US$0.06 per KwH
• The labour involved is not expensive, as it is mostly unskilled and widely available.
• There are additional government incentives for agro-processing operations.
An effective organic farming operation can be set up for as little as US$12,000. A full
feasibility study will be required prior to startup to determine actual startup costs, working
capital and financing requirements.
THE OPPORTUNITY: ORGANIC FARMING
Over the last ½ century steady world population increases (approx 90million people per
year) have put pressure on farming for higher yields of food supplies, engendering the
widespread use of fertilizers and other agro chemicals to speed up plant growth and
control pests. Unfortunately these have ultimately caused major ecological imbalances in
the food production system leading to pests’ immunities, significant air and water
pollution, and worse, as ongoing research clearly shows, to negative impacts on the
health of human beings. Consequently, with a growing universal awareness of these
conditions, organic farming has emerged as a clear favorite as a chemical-free
alternative. In most developed countries, particularly those in Western Europe and North
America, the demand for organic foods is so great that consumers are paying
substantially higher prices as demand is growing more quickly than for other food
products; worldwide, organic agriculture is a $20 billion industry and growing. But these
developed countries typically have strict standards regarding organic products and as
these are the most significant markets, awareness of and adherence to their regulations
are mandatory. SKAL is the EU watchdog in this regard and the US Dept of Agriculture
(USDA) for the USA. In recent years the USDA has rejected food crops exported by the
Caribbean region due to high pesticides residues.
In April 1995, the US National Organic Standards Board defined "organic" as follows:
"Organic agriculture is an ecological production management system that promotes and
enhances biodiversity, biological cycles and soil biological activity. It is based on minimal
use of off-farm inputs and on management practices that restore, maintain and enhance
ecological harmony. 'Organic' is a labeling term that denotes products produced under
the authority of the Organic Foods Production Act. The principal guidelines for organic
production are to use materials and practices that enhance the ecological balance of
natural systems and that integrate the parts of the farming system into an ecological
whole. Organic agriculture practices cannot ensure that products are completely free of
residues; however, methods are used to minimize pollution from air, soil and water.
Organic food handlers, processors and retailers adhere to standards that maintain the
integrity of organic agricultural products. The primary goal of organic agriculture is to
optimize the health and productivity of interdependent communities of soil life, plants,
animals and people. And as far as the USDA’s National Organic Program (NOP) is
concerned “Organic production is a system that is managed to respond to site-specific
conditions by integrating cultural, biological, and mechanical practices that foster cycling
of resources, promote ecological balance, and conserve biodiversity.”
In October of 2002, the long-awaited congressionally mandated National Organic
Standards went into effect in the most significant market, the USA, requiring that all
products labeled as organic meet the stringent standards established by the US
Department of Agriculture (USDA). Consumers now have the force of law behind all
organic labeling claims, providing peace of mind that when something says it is “organic”,
it will meet USDA standards. These standards include:
• Land on which organic food or fibers are grown must not have had prohibited
substances applied (such as toxic and persistent chemical pesticides and
fertilizers) for three years prior to certification.
• Farmers and processors must keep detailed records of methods and materials
used in growing or processing organic products.
• A third party certifier approved by the USDA must inspect methods and materials
• All handlers and farmers are required to maintain an Organic Handling Plan
detailing their management practices. Under the USDA regulations, in order for a
product to be labeled as “organic” it must contain a minimum of 95% organic
At its simplest then, Organic farming is the cultivation of crops and livestock without the
use of synthetic fertilizers, pesticides, weedicides and other agro chemicals, utilising
instead natural physical, biological and ecological processes to maintain soil fertility and
control pests and diseases. But organic production involves more than simply excluding
synthetic pesticides and fertilizers. It involves an integrated approach to active and
observant management of a farming system, striving for total harmony with nature, and
demands discipline, a desire to protect the environment and concern about future
generations. In many countries, organic regulations prohibit the use of antibiotics and
synthetic growth hormones in, for instance, milk production being only from cows that
have not been treated with rBGH (recombinant bovine growth hormone). These
regulations also mandate specific humane animal standards including access to fresh air
and pasture. The use of genetically modified organisms (GMO’s) is also prohibited.
While there is yet no conclusive evidence to prove that organically produced foods are
more nutritious, well-balanced soils do grow strong healthy plants which many believe
taste better and contain more nutrients. Also, unlike many conventional foods that are
bred for appearance, many organic plants are heirloom varieties that often have been
bred for superior flavor. As regards shelf life though, there is incontrovertible evidence
that organically grown vegetables and fruits last much longer than those grown with
synthetic chemical support.
Organic practices include:
• Crop rotation- alternating the types of crops grown in each field, which in turn
prevents the depletion of the soil. Pests are also managed through crop rotation
by eliminating breeding grounds built year after year with a continuous crop.
• Planting cover crops, such as clover adds nutrients to the soil, prevents weeds,
and increases organic matter in the soil. Soil with high organic matter resists
erosion and holds water better, requiring less irrigation. Studies have shown that
organic crops fare better than non-organic crops in times of drought and stress.
• Releasing beneficial insects to prey on pests helps to eliminate the need for
chemical insecticides that can remain in the soil for years or leach into the water
• Adding composted manure and plant wastes to help the soil retain moisture and
nutrients. Just as falling leaves return nutrients to forest soil, composting and
replenishing the soil.
• Preventing illness and maintaining strong animals through good nutrition and
minimal stress is key to successful organic livestock farming.
As a centre for organic production Region 10 and Linden in particular have many
advantages. The Region itself is home to the rich intermediate savannahs in the area
between Ituni and Kwakwani, famous for its staggering output of naturally grown water
and musk melons. The town straddles the Demerara River with its rich agricultural land
along the banks and it has a history of numerous small farmers producing naturally
grown food without the heavy fertilizer input typically used on the coastlands. The yields
have been traditionally huge fruits and vegetables that last significantly longer than
others brought in from the coastlands.
In the Linden area there is easy access to natural fertilizers, manure and compost, as
numerous chicken farmers regularly produce tons of manure. Even more “organic”
manure from cattle droppings is also easily available as many cows are reared in the
area. The outlying areas of the town including its boundaries in the Christianburg/Section
C area and the Bamia/Moblissa areas are particularly well suited to livestock rearing,
especially cattle, the latter being the site of the very successful Moblissa Dairy scheme of
the 1980s. And land is easily available through the empowerment schemes embraced
and practiced by both the regional and municipal administrations. Interestingly duck
farming, which is being organised as a significant business activity for this area, is
another organic activity which may offer many symbiotic benefits since ducks eat many
weeds and harmful insects. According to one expert researcher, after two months of
duck farming, without agrochemicals in the field, there are few weeds or insects. A
second benefit on the environment is the production of a rich soil condition as ducks
serve to oxygenate the field by their foot stirring, as well as producing considerable
ammonia rich manure.
By its very nature organic farming is ideally suited to small enterprises with access to
labor because the requirements are for manual rather than mechanized operation.
Linden has numerous small farmers who can easily shift to full organic production.
Advantages to investing in this industry:
While Organic products do tend to cost more than their conventional counterparts, this is
changing as production capacity and demand for organic products increase, improving
production efficiencies. Such is the potential for profit that whole countries are
converting: New Zealand’s entire cropland has been converted to organic and GMO
crops are strictly forbidden. In addition, many persons involved in organic farming are
striving for a sustainable agricultural system that is both ecologically sound and
economically viable. Paying farmers a fair price for their products is an important tenet
for many involved in organic agriculture. It may help to think of the extra money spent on
organic products as a daily contribution to one’s health and the health of the planet.
Some of the sociological benefits of an organic project are
• Protecting farm workers and their families
• Protecting young children and people with compromised immune systems who
are most vulnerable to the poisons being put on our food and in our soil, water
• Increasing biodiversity, including one of the most important places of all the life in
• Saving small family farms
• Setting higher humane animal standards
An economically sound organic farming project will have the following:
• Good average returns on investment over the life of the project
• Year- round demand for the projects products
• Where electricity is employed in packaging etc, the fact that Linden has the lowest
cost of commercial electricity in the country will benefit the project
• With the use of appropriate machinery, the labour involved is not expensive, as it is
mostly unskilled and widely available
• There are additional government incentives for agro-processing operations
Demand, Market Potential and Strategy
To plan for economically successful enterprises, farmers must design their production
systems to match their marketing strategies. Good production alone does not lead to a
successful enterprise: profitability depends on a combination of production volume,
quality, size, and a reliable marketing strategy. Marketing channels range from direct
markets to wholesale shippers. Growers must understand what each of their customers
wants and be prepared to meet the expectations of the markets they intend to reach. For
example, at farmers’ markets, customers seek good tasting fruit at or near the peak of
ripeness for prompt consumption, but supermarket distributors demand that fruit be
uniform and shippable. It is important to market in an appropriate niche, one where the
production of one’s operation can consistently meet the buyers’ expectations of volume,
quality, and timing.
The Caribbean and Latin American experience is instructive. Much study has been done
in the Caribbean regarding marketing, and special facilities are being developed to
ensure that products flow to their intended markets. Relationships will need to be built
with importers, traders, or wholesalers in the target markets to coordinate distribution and
access information. The most important organic exports are the traditional ones such as
coffee, bananas, sugar cane and cacao that are mostly unavailable in industrialised
countries. Small farmers have a market niche and are prominent in organic production. In
Mexico small farmers in 2000 represented 98.6% of all organic producers; in Guatemala
they account for most of the 5,000 organic producers; whilst in the Dominican Republic
they represent nearly 90% of organic producers. However, small farmers lack marketing
skills and buyers prefer to negotiate with farmers’ associations where production and
delivery is coordinated rather than with individual farmers. Some associations have
formed contracts with marketing or processing firms in Argentina (sugar cane), the
Dominican Republic (bananas), Guatemala (coffee) and Mexico (honey) who then sell
the produce to foreign buyers. In Argentina and the Dominican Republic, the relationship
between farmers’ associations and marketing firms is strong with contracts that entail not
only marketing but also the provision of technical assistance and credit. Direct contracts
with foreign buyers have been the most successful, whilst long-term contracts provide a
safe market and stable prices. For a Linden based organic production environment to be
successful it will have to establish the associations mentioned above to negotiate and
market in the increasingly competitive market place. Foreign marketing is essentially a
matter of certification, which provides the assurance that production has been organic.
Domestic (local) consumption will be important and can be marketed by local advertisers.
Of course there are tradeoffs in every marketing strategy. A successful organic farmer
must develop markets in which the price for organic produce adequately compensates
for all production costs. Additionally, the marketing process must be compatible with the
grower’s personality and business skills. The particular combination of components in
any grower’s marketing strategy will depend on local marketing opportunities as well as
the grower’s desire to be directly involved in marketing, tolerance for stress, and ability to
balance a variety of risk factors.
Organic farming is also synergistic with other sectors of the economy, especially tourism.
Farms operating according to indigenous agricultural practices provide new opportunities
to the tourism industry as well, affluent consumers from the US and Europe who
purchase organic products at their grocers also vacation in the Caribbean. Several farms
are taking advantage of this and opening their doors to the public for tours so tourists
may see first-hand how the organic produce they buy at home is grown in the
community-based organic farms. The additional benefit of techniques that are less land-
intensive not only benefits a budding agro-tourism industry, but also helps build an
ecotourism industry where tourists can visit restored and pristine ecosystems that define
the beauty of the region.
PRODUCTION PROCESS AND TECHNOLOGY
Production Technology for Organic Farming
In order for organic farming to be undertaken commercially, some basic knowledge and
practical experience is required in the following areas:
• Land Preparation
• Preparation of Compost
• Managing soil fertility
• Natural methods of controlling pests and diseases
• Harvesting and storage techniques
• Marketing produce
Extensive technical information and guidance on the growing requirements of each type
of crop can be obtained through the Ministry of Agriculture Extension Services and the
National Agriculture Research Institute.
Before actual production is begun, an environmental assessment must be completed to
determine what pests are most prevalent on the proposed site and its environs. All the
factors regarding site suitability for conventional plantings apply, even more so, to
organic operations. While conventional growers may fall back on chemical fertilizers and
pesticides to compensate for some poor site decisions, organic growers cannot. Good
drainage and air circulation are essential for disease control. The presence of certain
weeds and forage species is of particular concern to the organic grower. Based on the
findings, the farmer can then determine which crops are most suitable for the area.
Organic production involves:
• Compost production
• Nursery production
• Land preparation\Transplanting
• Crop Maintenance
Compost is required for both nursery production and improving soil fertility. Production
should be on an ongoing basis to ensure adequate supply at all times. It should
commence well in advance of nursery production. It could be prepared from all types of
plant wastes such as leaves, shavings, crop residues, and vegetable peelings, together
with some form of nitrogenous substance such as pen manure. Cow and chicken manure
are both excellent choices. Compost can be ready in 14 days appearing as a dark,
crumbly substance that is ready for immediate use.
Since a seed contains most of the characteristics of the plant it will produce, these
characteristics would have been inherited from its parents and will include susceptibility
or resistance to various pests and diseases. Therefore it is important to choose the right
parents to ensure effective pest and disease control. For best results seeds should be
obtained from strictly organic stock. Nursery structures will vary according to the crop
being planted but they should all ensure good light and air supply and use clean, fertile
soil. Some crops such as bora beans and pumpkins benefit from direct sowing.
This involves ploughing of the land, preparing beds and constructing drains. It is
important that the use of heavy machinery be kept to a minimum or avoided since this
destroys useful earthworms and disturbs the nitrogen balance of the soil. Since good root
growth is essential for high yields the roots should be able to penetrate the soil with a
minimum of effort.
The actual transplanting process will vary from crop to crop but should be done at times
when the seedlings are well developed and sturdy with erect structures, since sturdy
plants are a lot more resistant to pests and diseases.
Proper crop maintenance requires control of pests and diseases, weed control, mulching
As regards pest and disease control the following are useful guidelines:
• If many species are inter-planted, the spread and proliferation of pests associated
with one plant is restricted by the presence of other species.
• Diseased plants act as reservoirs for transmitting diseases to other healthy plants
and should be removed and burnt away from the farming area to eliminate all
traces of the disease or pest from the growing area.
• Field sanitation is critical as plant residues and rubbish heaps harbour insects and
• Crop rotation is an excellent way of controlling pests and of maintaining soil
• Certain aromatic varieties of plants such as basil, citronella, neem, saim weed,
marigold have important pest repelling properties, while others are capable of
emitting toxins that kill certain pests. These and other common garden varieties
may be planted in protective hedges on the perimeter of the farm.
Other specific controls that are usually employed in organic production include:
• Fine ash to be used as an insect repellent. The ash is dried and pounded before
application because its effectiveness depends greatly on the fine texture. It is
carefully spread on leaves and on the ground and improves soil fertility as well.
• Vegetable oil can be mixed with water to form a frothy solution (emulsion) and
sprayed onto the plants thereby suffocating insects whose bodies get covered.
Fatty soaps made from vegetable oils act the same way and are fairly effective
against relatively stationary pests such as aphids and caterpillars.
• The neem plant as well as basil can be pressed to produce oil to protect the
cultivated plants from the insect pests. The aromatic nature of these juices
prevents the insects from recognizing the cultivated plants.
• Ground hot pepper mixed with water is effective against ants, spiders, caterpillars
and various worms that feed on cabbages, tomatoes etc.
• Herbs such as coriander and aloe vera help keep insects away.
• Garlic planted between other plants especially bananas, helps keep away the
• Ladybird beetles are natural predators of the mealy bug and keep then under
control if introduced to the farm early.
As far as possible Weed control should be done manually to reduce the effects of
emissions produced by mechanized devices.
Specific techniques of Irrigation and harvesting will vary according to the
topography of the planting site and to the nature of the soil etc. Specific help and
advice will be available from agricultural extension services personnel.
A typical setup
The following study details the cultivation of a 1 hectare plot for vegetable production
(bora and pumpkin) manageable by an owner / farmer and five (5) temporary workers to
undertake land preparation and planting. The workers will need to have a fair amount of
agricultural experience. These two crops were chosen because of minimal requirements
for arable land (both bora and pumpkin will grow almost anywhere practically untended
and with little or no assistance in the form of soil enrichment). These two crops are also
easily sold on the domestic market which is easier to access than the more demanding
foreign export markets, and will assure local sales. This limited operation will provide vital
experience in farming to completely new stringent standards to ensure future compliance
with the certification requirements demanded by foreign markets.
An initial startup on the hectare plot may be as follows:
Bora ½ha Pumpkin ½ha
Type of system: interplanting of crops
Preparation: including brush cutting, bed preparation and drainage 30 man days
Method of seeding: direct (no need for nursery)
Pest / disease control: all natural, using natural pesticides
Planting activity: 5 man days 5 man days
Plant spacing: 1’ 8’
Crop duration 14 wks 16 wks
Yield / ½ha 5,000kg 6,000kg
Harvesting 40 man days 15 man days
Weed control 30 man days 30 man days
Cultivation staked spread
REQUIREMENTS FOR SETUP
Some of the critical factors to be taken into account prior to setting up of an operation
Location should be as free as possible of environmental contamination, such as dust,
fumes etc. so as to minimize the need for extra protection procedures. A fenced
compound is always more secure than an open range that will allow animals easy
access to young plants. Wire fencing is effective but expensive. Effective fencing may be
established by use of cut striplings but these will require regular attention and
replacement to stay effective. It is critical that the nursery be protected from accidental
disturbance or infiltration, and this area should be fenced or otherwise protected.
Alternatively a nursery shed may be employed. In general, a location near to a regular
and uncontaminated water supply is ideal, and there are numerous creeks and tributaries
that crisscross the Linden area. For easy calculations the plot size is assumed to be 1
hectare (100x100 sq. meters).
Very simple buildings (sheds) can be employed for the nursery and for storage. The
actual sizes of the buildings will depend on the extent of the production but a nursery
shed of 250’ x 60’ and storage sheds half that size should suffice.
Manual labour is usually employed extensively on organic farms and appropriate hand
tools such as shovels, spades, axes, pickaxes, hoes, rakes and cutlasses (machetes)
are required. Wheelbarrows are also commonly used. A small tractor machine called a
walk–behind tractor is also employable on organic plots as it offers good control of the
ploughing process and does not contribute significantly to environmental disturbance. It
is also very useful as an aid in harvesting and generally to assist with farming chores
such as fetching material such as manure, compost, cuttings etc.
All equipment and materials are easily available from local hardware supply stores.
ANNUAL FINANCIAL PROJECTIONS
Assuming the area to be cultivated to be 1 hectare (ha) on an interplanting system of
cultivation, the following projections are made for combinations of the popular bora
beans and pumpkin each allocated ½ha.
For simplicity, projected annual sales are based on simultaneous cultivation of these
short-term crops planted and harvested 3 times per year. In practice the crop rotation will
vary according to the pest requirement, in which rotation is done using different crops
that do not attract the same pests and diseases. As both bora and pumpkin are sown
directly without needing a nursery, these were chosen as startup crops to reduce the 21-
28 day delay usual with nursery operations. Bora can be reasonably expected to produce
5,000kg and pumpkin up to 6,000kg each from a ½ha plot.
Wholesale pricing is $0.49 for 1kg of either produce. Sales: $16,176 yr.
The major capital and operational items associated with a 1 ha level of operation
Investment Items capital costs
Infrastructure / Land 1,544
Nursery shed 588
Storage shed 368
Perimeter hedge (insect repelling) 588
Farm vehicle (used pickup) 7,360
Tools and equipment 980
Working capital for 2 months 2,206
Total capital investment 12,090
Cost of production per annum 93,365
Annual Fixed Cost 12,108
Receipts per annum 16,176
Profit per annum 8,824
Break Even point 27%
Manager (Owner/Manager) salary US$294.00 per month
5 labourers / farm hands @ $5.00 per day
Supplementary expenses (many semi-variable) will include provisions for
Lease of land, Water supply, Electricity, Insurance, Licenses and Permits but will
depends on options such as location and proximity to natural water supplies such as
creeks etc, and whether or not the investor chooses funding options, insurance and at
what levels. These additional expenses are directly deductible from the margins
indicated above. And if chosen, will directly affect breakeven and rate of return
Investment US$ 12,090
Revenues US$ 16,176
Expenditure US$ 7,353
Gross Profit US$ 8,824
The following are some of the funding sources from which a borrower may access
financing for an operation of this nature, either singly or in combination.
• The Linden Economic Advancement Fund (LEAF) provides financing for Region
• Small Business Development Trust
• Institute of Private Enterprise Development
• National Bank of Industry and Commerce
• Citizens Bank