Introduction:
foylce & Brothers is an indigenous Company registered
to among other things establish a wholesome transaction mechanism that will
engineer employment thereby creating food security. Naturally, as young vibrant
professionals, our primary aim would have been to maximize income but with our
zest and antecedents over the years we have proven more resilient in the quest
for a more balanced transaction culture with
the mandate to create a modest and efficient business processes for the benefit
of the Nigerian society. Our operations stems from Abuja where most of our
directors live and work.
foylce & Brothers Company limited is well placed due to our interaction with
high government functionaries, banking hierarchies, experienced technical
support/ partnerships and result oriented financial processes. Recently, such
combined methodologies have earned us deep investment accesses to government
approvals for oil refining in Western Nigeria.
foylce
& Brothers identified five (5) major cash crops that helped the
first Nigerian generation economy. One of those five (5) cash crops is Cashew. We found out that apart from other wastages associated
Cashew as a result of the abuse involved with the cash crop, Nigeria has been losing forty five million
litres of Cashew juice. In 2012, we compiled a compelling
report and approached federal government to allow us put in place a coherent
production line and subsequently, a research line to improve the cash crop and
its production in Nigeria. Based on that, Government through RMRDC therefore mandated
us to put in place a coherent application to redeem the cash crop and vowed to
be part of the process by way of collaborations as identified in the approval
sent to you already.
CASHEW EXECUTIVE BRIEF JUNE 2016
EXECUTIVES
This report represents an initial methodology
in steps adopted towards establishing the feasibility of the proposed Cashew
Processing Factory to be called GALE FOODS AND BEVERAGES LIMITED in Umunneochi
LGA Abia State. The report includes conceptual architectural drawings,
preliminary cost estimate, business plan and cash flow analysis. The
information in this report was developed for a joint venture by a team of
experienced architectural, construction, transportation, and environmental
engineering firms under the auspices of Xunz Profyl for Foylce & Brothers
Company Limited, Abuja. The proposed Cashew Processing Factory and research
center in Umunneochi LGA is a response to the urgent employment need and
increased Raw material management awareness going on within Nigeria. It is
anticipated to be a privately financed project with a counterpart technical
support/ funding from Federal Government wherein the consulting Company and
land owner in joint partnership with investors, develop the factory and complementary
infrastructure. The land owner and the investors recoup their funds from the
sales of the finished Cashew product to targeted clients.
This proposal is for
the construction of a Cashew Processing Plant/ research institute which will
seat on approximately 15sq Kilometers of Land (not on one site). Neighborhood
centre, health centre, green area, recreational spaces and road networks,
boreholes, Power houses will represent community and support facilities that
will complement core industrial facilities, harmonizing the factory into one
cohesive whole. The Preliminary Estimated Total Cost of the project is $180,
036,500.00 (One Hundred And Eighty Million, Thirty Six Thousand, Five Hundred
USD Only). Though in the full Agricultural Industrial park/ Research village
(with proposed worth of 6 to 8 billion dollars) it is proposed to have four
housing types, 42 Factory Halls with all facilities fitted, Warehouses,
Management building, Staff quarters with bq,
staff hostels. Bigger structures like the power house, the smaller ones like
security house and cafeteria among others. The first developmental part of this
project is expected to span over a maximum period of 9 months to plan, design,
finance, construct and commissioning, while the other aspects will take four
years to finish. The proposed project has been divided into 3 phases for ease
of construction and co-ordination. The proposed factory shall be called ‘GALE
FOODS AND BEVERAGES LIMITED’.
WHY THE
PROJECT
In most Nations of the world,
Security, Planning and Development drive other sectors of the Economy. The
populace derives optimum performance by these three key fundamentals, therefore
what individual citizen gives back to their society is the amount of
derivatives produced by these citizens with the help of the 3 fundamentals
which are invested into them by their Government. To these 3 fundamentals
(Security, Planning and Development), security which is the foremost is
engineered by the power of quality food derived also by the level of Agricultural
Technology practiced by a people; this is because this has a far reaching
psychological effect on the society it involved as no nation develop on empty
stomach especially in this 21st Century.
Insecurity is a product of lack of
adequate planning and subsequent breakdown of rule of law and the inverse rating
of development. Since the Government of
the day and the preceding one has set a good footage by implementing a
path to sustainable National growth through the implementation of Policies that
guarantee the structure of governance around institutions and not individuals,
we at Foylce & Brothers have decided to invest in this Agricultural
revolution.
Therefore to this effect, Foylce
& Brothers decided to assist our government in addressing the issues of
food security which also guarantees job opportunity to the younger generation.
Our resolve is drawn from the fact that this Administration has mapped out
plans to give 26 million Nigerians job at different levels.
In the light of the above, we
therefore have presented technical and financial proposals for the
implementation of a solid technological framework needed to achieve this
objective first, by creating a factory and supporting the vision of the federal
government which the Ministry of Science and Technology has been mandated to
implement, secondly by providing a highly scalable platform for citizens within
the catchment area would be employed purposefully and meaningfully.
This invests which
will be managed passionately and skillfully to achieve optimum human and
natural resources that our Dear country has availed us, will not be trifled
with by Foylce and her partners.
WHY ISUOCHI
THE RAW MATERIAL
Umunneochi has been identified to
be sitting on a very vast expanse of land. Though having 500,000 acres of
cashew plantation and other exportable raw materials, no factory is present
there. Due to the difficult terrain the live in, the communities that make up
this Local Government has been constantly deprived of their rights in terms of
Government presence as their neighbor’s stand better each time opportunities
are thrown up. The only thing that attracts comfort is their good road networks
and their hospitability.
DIAGRAM: PICTURE OF WHERE ISUOCHI
IS
Gale
Foods Cashew Factory project has been designed to fit into governments
all inclusive plan of extraction of the most viable materials from the remote
places thereby diversifying the economy and helping to recreate the villages.
This is why the choice of the location of this project MUST be Isuochi, in
Umunneochi Local Government Area of Abia State Nigeria.
ACCESS TO MAJOR CITIES
Isuochi which lies in the Northern
part of Abia State and has quick and undenied access routes to Okigwe; a major
town that is situated between Owerri, Umuahia and Enugu. This means that
products from this location could be transported to nearby Cities and across
Nigeria without stress.
LAND STRUCTURE
Isuochi has a plateau land
structure. They live in hilly topography associated with rocky terrains. The
main occupation of the people is farming as their vast land has not been
exposed to any form of urbanization. The farms are so organized in such a way
that if given the attention rightly needed, they would be competing with the
rest of their counterpart anywhere in the world.
WATER: A DIVERSIONARY USE OF LABOUR
The plains of Isuochi houses the
best spring waters found anywhere in the world, but due to the rocky hills
associated with the area, water is a scarce commodity; so difficult to get. Everyone
trek many miles to get a bucket of water. This, if translated to meaningful
labour will not only put money in their pockets but minimize hours spent in
looking for water as the standard of living will be raised.
There are natural sites in Isuochi
that also makes the place a bold site. These natural sites are on their own
untapped tourist attractions which in due time will be harnessed.
FARMS: OWNERSHIP AND STRUCTURE
During the immediate
post colonial era, Michael Okpara and other founding fathers chose to cede out
seedlings for few desired cash crops to initial beneficiaries (either families,
counties, states etc) of which Cocoa, Palms, Groundnut, Cashew etc. For cashew
itself, these farms are plantations set up according to family structures to
take care of the day to day needs of such families. The farms could be owned by
a nucleus family while others are owned by extended families. To make
exportation of their farm produce very easy, these families have their EXITs in
Europe, America and Asia. Unfortunately, these EXITS buy these cashew raw
materials at poor prices even when our specie has been adjudged as one of
world’s best.
FINANCING
The delayed
implementation of this project came as a result of the seeming upside down
approach of Government through the promise that was made to this project and
the coordinators. The government agreed to give 20% of the value of the project
but refused to write it on paper. This is why the investor has not moved an
inch.
But due to the
present administrations clear cut approach to agriculture and the seeming
impact it will make in creating jobs, food security and other added social
securities, we have reappraised the project in a way it will mean well for all
parties.
The parties involved are:
1.
The Government,
2.
The foreign
investor
3.
The local
Community
4.
The promoter
5.
The brokers
6.
Etc
FINANCING STRUCTURE
We envisage
that the amount of money adopted by the federal government as lease pay back or
agric loan to farmers is small compared to the need of the nation at the moment
and owing to the fact that the Nigerian economy is at its embers, we have
therefore decided that the financing will be done in such a manner as will help
the government achieve her goals and one of the major manifestos of the Buhari
led administration: MASS employment.
Roles of all parties
1.
Government 2%
Government
is supposed to lead this project. When we say “government” we mean the Federal,
State and Local Governments. The government roles apart from issuing approvals
to the investment are to assist in the funding mechanism and the legal backups.
The legal back up is to outlaw the exportation of raw cashews to foreign lands
through which jobs have been exported over the years.
Also,
here, Government is no more expected to issue 20% financing to the project (as
initially agreed) but will through an escrow account with the local promoters
issue a confirmation to the financiers of the project stating that “upon the
issuance of a verifiable, irrevocable, transferable Bank guarantee/ SBLC to the
project, the investor of such debenture will be issued as 2% performance bond”.
2.
The Investor 120%
The
investor through the promoters is to make available 120% Payment/ Bank
Guarantee or SBLC to the investment. The verifiable, irrevocable, transferable
Bank guarantee/ SBLC will be monetized so as to fund the project.
Due to
the inclusion of dairy, cassava flour and other value added products to enhance
the quality of our final products, the investor has agreed to double the
investment volume on a 3 years moratorium after which loan payment will be done
back to the source with interests of 2% per annum. The investor owns 80% of the
investment till he recoups all the invested capital and will keep reaping such
3 years after all capitals would have been paid back before the rearrangement
of the shareholding. The rest of the shares will be between, government,
brokers and host community.
3.
The promoters 7%
The
promoters provides the local community (on whose land the project sits),
Government (who will provide the bonds), the investors- both guarantor and
monetizing Bank/ financier who brings the cash, the technical partner (who
understands research and processing of the cash crop), the construction
partners/ contractors who will guarantee the construction of the site, etc.
·
The Local Bank:
The local Bank will make a 20% guarantee on be
·
The Local
Community
4.
The brokers 5%
The
brokers sit in between all parties. There are brokers recognized per inch of
this transaction and all their remunerations will be paid according to the ICC
400, 500 and 600. All remunerations will be paid in a manner that the funds for
the project will not be affected to avoid inflation, over invoicing and other
unwanted financial wastes. The brokers will be divided according to their
groups and participation quota and will be issued payments accordingly except
where they are considered part of the investment shareholding.
5.
The Local
Community 3%
The host
community on whose land the project is situated is also a stakeholder. The
community is to provide parcels of arable lands and spaces for construction of
the processing centers and the research institute. Here the community will be
handed over certain rights according to the laws and agreements of the state.
TECHNICAL
PARTNERSHIP AND EXPERIENCE
Siotoh Ltd USA and their partners has in consonance with the
worlds acclaimed best Agric specialist of Louisiana
State University developed interest in our project (We have their backing
on all fronts). The company is headed by top Nigerian exports including Chief
Martins Imudia, the former President of African-American Chamber of
Commerce.
For the avoidance of doubt, this particular partner (SIOTOH) has
extensive experience in the Agricultural Sector. We are their mandate/ one of
their partners in Nigeria and we represent their interest in all Agricultural
negotiations on this project. Siotoh which is one of our partners, provides comprehensive
services from agric consultancy services to project design, through
implementation and transfers (if under built operate and transfer terms).
A core area of expertise is in agribusiness development throughout
the entire value chain.
Specifically, Siotoh specializes in:
o Supply
Chain Management
o
Value Chain Development
o
Agric Industrialization
o
Agric Commercialization
o
Project Design
o
Project Management
SIOTOH IS THE OPERATORS OF THE RENOWNED BAYOU FARM INDUSTRIES
LIMITED IN NIGERIA AND THE US.
BFIL is able to handle agro-based projects from feasibility
studies stage through project implementation phase. Consultancy expertise
includes but not limited to the following:
·
Cassava
(Cultivation & Processing)
·
Rice
(Cultivation & Processing)
·
Oil
Palm (Cultivation & Processing)
·
Fisheries
and Aquaculture
·
Feed
Mill
·
Poultry
·
Seeds
(various crops)
BFIL also provides agro-based supply
and value chain development consultancy services to the World Bank.
BFIL FOCUSES ON AREAS AS
Training/Human Capacity
Development
BFIL focuses on training to improve
individual skills, judgment and technical aptitude which are vital elements to
the development of projects and to create an eventual sustainable development
effect.
As is widely known, the greatest
single test facing development projects in Nigeria as in many African countries
is human capacity development. There are very few workers with up-to-date
practical skills; commitment to work is almost non-existent; and staffers with
leadership qualities are few and far between. This is our experience so far in
developing projects in Africa. We are constantly in touch with development
partners to source funds and formulate policies to alleviate the challenges of
human capacity development.
Empowerment of Women/Gender
Equality
BFIL has a policy that promotes
empowerment of women and gender equality. The Heads of our project units such
as Hatchery/Nursery Ponds, Marketing, Preservation and Packaging have been
women. The entire hatchery unit of BFIL Akwa Ibom State aquaculture project was
operated by women. BFIL from time to time selects university level graduates
for specialized training and strives to absorb successful ones upon completion
of their training.
Research & Development
BFIL is committed to research and
development. Most of its research activities are carried out through
collaboration with local universities, research institutions and foreign
technical resource providers.
Outgrower & Micro-Credit
Program
BFIL is involved in
outgrower and micro-credit program to prop up replication of projects and
encourage participation of local farmers. We are actively working on expanding
our scope of collaboration with development partners, non-governmental
organizations, and private foundations in financing this part of our
activities, to replicate our efforts and ultimately create more jobs and
sustainable development in our areas of operation.
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