SOLAR AQUAPIRAMIDS FARMS
FUNDACION
AQUAPONIAS
DE VENEZUELA
PRESIDENTE
BUSINESS PLANS
When analyzing the economical feasibility of an agro industry complex as the one we are presenting here we must consider the international markets, developed countries, consumer trends, the required investments, the geo-economy in terms of the geographical location for each agro industry complex, installed production capacities and industrial scale, strategies to be put in place and its economical efficiency. Nevertheless in order to present business plans that reflects the investments magnitude that this new technological proposal require and the extraordinary operational efficiency that represent, we have selected for your consideration two basic and representative industrial scales that will put in perspective all the characteristics previously exposed.
NOTE: Is important to note that this Investment Plan only reflects the construction cost of the total Agro industrial Complex. If this structure is to be fabricated exclusively for third parties, extra fees should be considered and added for our honoraries.
The first one of this two industrial production dimensioning is made up by ten (10) production units (Aquaponic Production Solar Aqauapiramides) at an estimated cost of over 25 million dollars. This complex will be able to produce more than 6 million kilograms of value added finished products with a variety of options that will assure flexibility, diversification and variability to consumers in order to keep a maximum and stable production capacity in any market condition.
In order to achieve this production and variety levels marketing and production strategies where considered for each food category to produce, its required investments to obtain the necessary processing and manufacturing equipments, markets locations and wholesale prices, all of it under a single and compact production unit criteria that includes the organic raw material production and value added finished products manufacturing.
The second industrial dimensioning has been configure with only one production unit and equivalent processing capacities peripherals at a cost superior to 6.5 million dollars. While this configuration could be considered as our most basic commercial scale production system, it presents outstanding productive and profitability levels. However it most significant highlight is projected by its self growth capacity that with a percentage of its annual net income new systems and equipments can be purchased to reach in a seven years period a production capacity equivalent to a 10 production units agro industry complex without external investment. In both cases, the location to execute this project will be the United States due to its proximity to consumers and the fact that this location carries the highest operation and production cost in the global markets, allowing us to demonstrate this proposal sustainability when facing markets adverse conditions.
The value of these production capacities will be set by wholesale prices paid by agriculture product wholesaler buyers located in commercial outfits within the perimeter terminal markets in the metropolitan areas of the city, that serve as marketing collection and specialize distribution centers that trade in situ or through the internet at a lower price with respect supermarket chains and other food expenditures.
With a 30% average reduction between our prices and the wholesale institutional list prices, sales for our 10 production units industrial scale could exceed 149 million dollars in the first full year of operation and over 19 million dollars per year with our one production unit dimensioning.
In order to present the costs that such sales levels implies we projected a 5 year profit and loss statement considering an annual increase of 3% in production costs and sales price.
Finally all these projections have allowed us to generate a set of financial indicators that will show the viability of these investments.
There are no doubt that all these projections show extraordinary financial indicators. However it is important to note that as the installed production capacity increases the magnitude of this financial indicator improve significantly as well. This is because the human resources represents the highest percentage of the total cost of operation and as the salaries for worker and some employees varies with the industrial dimensioning, the cost of management and specialized personnel, integrated by the best international professionals within their fields and with excellent salaries and production bonuses will remain the same.
In any case, what matters the most is that even if the value of the Internal Rate of Return (IRT) results in only 50% of the original calculations it is still an extraordinary investments and if it is 25% it is still an excellent investment.
Accordingly we have finished designing a prototype that will cost no more than US$1.2 million and operating at a minimal industrial scale will project a more exact degree of operational and cost effectiveness expectation from our commercial scale projects. Currently we are in the process of obtaining the funds to build this prototype.
CONCLUSIONS:
The unprecedented productive efficiency of our initiative is of such magnitude that less than 10 hectares of space is capable of producing what with the traditional way of production requires thousands of hectares of deforested forests for a similar production.
This extraordinary capacity makes this new technological proposal extremely profitable and can offer to food producing companies and especially animal agriculture industries, the capacity to diversify their production and significantly increase their profits. Also its relatively low implementation cost can encourage the globalization of this new technology to reconvert traditional practices into more sustainable ones with an extraordinary improve of employees and workers’ life conditions and income as well as high quality organic food at lower competitive prices for consumers. With the global expansion of this technological proposal a profound change in the way we produce our food will be reached while eliminating waste and the leading consumption of resources, protecting our planet and most important, reversing it's environmental degradation while adapting food production under new extreme climate conditions to reach the capacity of producing, in less than 8% of the current total world cultivated land, all the food that will be needed by 2050 and beyond reducing the current 70% water consumption for global agriculture from the world fresh water available for humanity, down to much less than 50%, obtaining from the humidity in the air a great deal of its required water.
That said, we can conclude that the financial risk is worth to take due to the projected potential of this new type of industry and the profound and transcendental impact of this new vertical aquaponics agroindustry complex that not only will represent a real and practical solution for governments and industries to reduce to one digit the percentage of all the global greenhouse gas emissions generated by human and animal agriculture (livestock and their byproducts) without incurring in political and economic catastrophes, and successfully reach and stay (in combination with an aggressive reductions in annual greenhouse gas emissions from fossil fuels), in a median level of carbon dioxide equivalent, way below the 42 GtCO2e required to keep temperature increase below the 2 °C target at which dangerous climate change can be avoided by the end of the century, but also will lead the way to reach an effective withdraws of CO2 in the atmosphere to reverse and win the climate fight!
