Thursday, December 1, 2011

Monetary benefits to small holder producers

We offer the small holders two modalities:



  • They can sell us the seed for us to process and sell
  • For the more entrepreneurial individual, we process their product for them to sell directly



As observed in the chart bellow, both options offer significant improvement over the price that the middlemen are currently offering:





Scenarios
Revenue to farmer
Assumptions
1) Current price for 1 ton of soy seeds (US$)
 $              249
They receive 60% of spot price
2) Price they will receive for 1 ton of soy seed from Agilagro (US$)
 $              332
We offer 80% of international spot price
Additional revenue
 $               83
% increase
33%

3) Revenue they receive if they sell the oil and flour from one ton of soy themselves (US$)
 $                     376
They are able to sell the oil at US$ 1.15 per lt and the flour at US$159 per ton
Additional revenue
 $              127
% increase
51%

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