Dates Processing Plant
Agriculture Business Division, Lahore
Dr. Nasir Mahmood Nasir Tel: +92 42 99232105
Table of Contents
Summary
1. Introduction
2. Project Cost
3. Export Prospects
4. Organic Standards
4.1
Conservation
4.2
The Principles of Organic Agriculture
4.3
The Principles of Organic Production
4.3.1
Agricultural Principles
4.3.2
Environmental Principles
4.3.3
Food Processing Principles
4.3.4
Social Principles
4.4 Organic Farming and the Environment
4.5
Mineral Fertilizers and Supplementary Nnutrients
4.6 Heavy Metals in Soil and Manure
11
4.7
Controlling Weeds
12
4.8
Controlling Pests and Disease
13
5. Flow of Dates Processing Plant
16
6. Human Resource Requirements
17
7. Equipments and Machinery Requirements
17
1
8. Land & Building
18
9. Project Detail
19
10. Projected Income Statement
20
11. Key Assumptions
21
12. Disclaimer
22
Summary
Dates are one of the most important cash fruit crops of Pakistan. Dates are cultivated over
an area of 223.88 thousand acres in Pakistan with an annual production of 531.2 thousand
tons in year 2009-10. Most of the Dates produced in Pakistan are cultivated in Balochistan
and Sindh provinces. Dates grown in Pakistan have a huge national and international
market demand.
Organic Dates can be grown easily in Pakistan. To enhance export magnitude of organic
Dates in the international market our farmers must follow the Organic Sstandards.
Organic Standards are the rules and regulations that define how an organic product must
be made. These standards cover all aspects of food production, from animal
welfare and wildlife conservation, to food processing, to packaging.
The problems associated with Dates export include low produce quality, lack of
storage facilities, non-availability of quality packing, poor transportation facilities, high
freight charges, weak role of export promoting agencies and inconsistent government
policies.
The Dates processing project of 250 kg of Dates per hour on area of 4 kanal needs a
capital investment estimated at Rs. 19.54 million for construction, purchasing machinery
and equipments. In addition to this, a sum of Rs. 2.18 million is required as working
capital, which would be used for purchasing of raw material. The total project cost is
estimated at Rs. 21.72 million. This project suggests a plant with capacity of processing
250 kg of Dates per hour. This means that, total operational days of plant are calculated as
300 days per annum and a total of 600, 000 kg of Dates can be processed annually, if the
plant runs at 8 hours per day.
The estimated income varies from 17 million to 28 million per annum from first to tenth
year of the project. This is a profitable business enterprise due to continuous increasing
demand of Pakistani Dates in the international market.
3
Introduction
Dates are believed to have originated around the Persian Gulf, and have been cultivated for
thousands of years. They have been the staple food of the Middle East. The date
palm (Phoenix dactylifera) is a palm in the genus Phoenix, cultivated for its edible nutritive
sweet fruit. It is a medium-sized plant, 1525 m tall, growing singly or forming a clump
with several stems from a single root system. The leaves are 35 m long, with spines on the
petiole, and pinnate, with about 150 leaflets; the leaflets are 30 cm long and 2 cm wide.
The full span of the crown ranges from 6 to 10 m. Dates are oval-cylindrical, 37 cm long,
and 23 cm diameter, and when unripe, range from bright red to bright yellow in color,
depending on variety. Dates contain a single seed about 22.5 cm long and 68 mm thick.
The date palm is dioecious, having separate male and female plants. They can be easily
grown from seed, but only 50% of seedlings will be female and hence fruit bearing, and
dates from seedling plants are often smaller and of poorer quality. Most commercial
plantations thus use cuttings of heavily cropping cultivars. Plants grown from cuttings will
fruit 23 years earlier than seedling plants.
Dates are naturally wind pollinated but in both traditional oasis horticulture and in the
modern commercial orchards they are entirely pollinated manually. Natural pollination
occurs with about an equal number of male and female plants. However, with assistance,
one male can pollinate up to 100 females. Since the males are of value only as pollinators,
this allows the growers to use their resources for many more fruit producing female plants.
Some growers do not even maintain any male plants as male flowers become available at
local markets at pollination time. Manual pollination is done by skilled laborers on ladders.
Dates ripen in four stages, which are known throughout the world by
their Arabic names kimri (unripe), khlal(full-size, crunchy), rutab (ripe, soft), tamr (ripe,
sun-dried).
Table 1: Dates Area under cultivation for last 10 Years
(Area '000' Acres)
Sindh
57.08
Khyber
Pakhtoonkhaw
2.47
Balochistan
106.5
PAKISTAN
2000-01
Punjab
28.17
2001-02
28.32
57.74
2.53
105.32
193.9
2002-03
20.92
62.46
3.06
105.97
192.41
2003-04
14.12
63.05
3.24
104.4
184.82
2004-05
14.31
65.34
3.39
118.92
201.96
2005-06
14.32
65.93
3.4
118.95
202.61
2006-07
14.56
72.31
3.43
118.99
209.29
2007-08
14.67
79.09
3.52
125.45
222.73
2008-09
14.77
80.08
3.54
125.69
224.07
2009-10
14.83
80.56
3.46
125.04
223.88
YEAR
194.23
Source: Agricultural Statistics of Pakistan.
Table 2: Province Wise Dates Production for Last 10 Years
(Production '000' Tonnes.)
YEAR
Punjab
Sindh
2000-01
97.9
266
Khyber
Pakhtoonkhaw
6.6
2001-02
2002-03
94.12
62.11
288.9
317.1
2003-04
41.69
2004-05
Balochistan
PAKISTAN
242
612.5
6.69
8.15
240.57
237.68
630.28
151.61
8.59
224.93
426.82
42.71
318.23
9.3
252.16
622.4
2005-06
42.58
192.81
8.87
252.32
496.58
2006-07
43.16
201.02
9.97
172.13
426.28
2007-08
44.36
253.09
10.38
249.69
557.52
2008-09
44.61
261.95
11.34
248.59
566.49
2009-10
44.7
265.3
11.3
209.9
531.2
625.04
Source: Agricultural Statistics of Pakistan.
1.
Project Cost
This project suggests a plant with capacity of processing 250 kg of Dates per hour. This
means that total operational days of plant are calculated as 300 days per annum and a total
of 600, 000 kg of Dates can be processed annually, if the plant runs at 8 hours per day.
The Dates processing project of 250kg of Dates per hour on area of 4 kanal needs a capital
investment estimated at Rs. 19.54 million for construction, purchasing machinery and
equipment. In addition to this, a sum of Rs. 2.18 million is required as working capital,
which would be used for purchasing of raw material. The total project cost is estimated at
Rs. 21.72 million.
2.
Export Prospects
Dates are one of the most important cash fruit crops of Pakistan. Dates are cultivated over
an area of 223.88 thousand acres in Pakistan with an annual production of 531.2 thousand
tons in year 2009-10. Most of the Dates produced in Pakistan are cultivated in Balochistan
and Sindh provinces. Major Dates producing areas in the country are Turbat, Panjgur,
Gwadar, Khairpur, and D.I. Khan. Some important export markets for Dates are India,
Canada, USA, Germany, UK, Denmark, Australia, Bangladesh, Nepal, Sri Lanka, South
Africa, Dubai, Japan, China, South Korea, North Korea etc.
Dry or soft Dates are used directly or with fillings of almonds, walnuts, candied orange and
lemon peel. They are used in Arab breads, cakes and other dessert items. Recent
5
innovations include chocolate-covered Dates and products like sparkling Dates juice,
used in some Islamic countries, for special and religious occasions such as Ramadan.
Importance of exports in the development of an economy cannot be denied. This is
particularly true in case of a developing economy like Pakistan. The commodity
concentration and the supply side fluctuations in fruit exports are known to have serious
consequences for overall export earnings. The overall market share of Pakistani Dates in
the world is around 18%, which is a huge proportion. Dates grown in Pakistan have a huge
national and international market demand regardless of the fact that major share of our
export fetch low value because of substandard, irregular processing and lack of value
addition. Organic Dates can be grown easily in Pakistan by following the org. standards.
3.
Organic Standards
Organic standards are the rules and regulations that define how an organic product must be
made. Anything labeled 'organic' that is for human consumption must meet these standards
as a minimum. The standards cover all aspects of food production, from animal
welfare and wildlife conservation, to food processing, to packaging.
Organic standards ensure that you can be certain that you are buying a genuine organic
product that has been produced in line with standard principles. Imported organic foods
must have been produced and inspected to equivalent standards. There must also be full
traceability of organic ingredients back to the farmer.
3.1
Conservation
The Soil Association was the first certification body to develop standards that ensured the
environment on the farm was being carefully managed. Here are a few examples of the
standards for conservation:
Farmers should keep an up to date conservation plan for the whole farm, prepared
by an advisor.
Hedges must not be trimmed between 1st March and 31st August. This is to allow
birds to nest.
There should be an area of uncultivated strip of grasses and flowers around any
field larger than two hectares. This is to provide habitats and food for birds,
mammals and insects.
Sites of conservation interest must not be damaged, except with permission, which
will normally involve getting approval from an appropriate conservation agency.
To allow wildlife to travel between habitats, there should not be any more than 200
m between any part of the arable field and a permanently non-cultivated area such
as a hedge, ditch or beetle bank.
6
3.2
The Principles of Organic Agriculture
Agriculture is one of humankind's most basic activities because all people need to nourish
themselves daily. History, culture and community values are embedded in agriculture. The
principles apply to agriculture in the broadest sense, including the way people tend soils,
water, plants and animals in order to produce, prepare and distribute food and other goods.
They concern the way people interact with living landscapes, relate to one another and
shape the legacy of future generations.
Organic agriculture is based on:
The principle of health
The principle of ecology
The principle of fairness
The principle of care
3.3
The Principles of Organic Production
Organic is a whole system approach to farming and food production. It recognizes the
close interrelationships between all parts of the production system from the soil to the
consumer.
Following is a comprehensive set of organic principles that guides for the standards.
3.3.1 Agricultural Principles
To
To work within natural systems and cycles throughout all levels from the soil to
plants and animals.
To maintain the long term fertility and biological activity of soils.
To treat livestock ethically, meeting their physiological and behavioral needs.
To respect regional, environmental, climatic and geographic differences and
(appropriate) practices those have evolved in response to them.
produce food of high quality in sufficient quantity.
3.3.2 Environmental Principles
To
To maximize use of renewable resources and recycling.
To minimize pollution and waste.
foster biodiversity and protect sensitive habitats and landscape features.
3.3.3 Food Processing Principles
To
To maximize information for the consumer on processing methods and ingredients.
minimize processing, consistent with the food in question.
3.3.4 Social Principles
To provide a fair and adequate quality of life, work satisfaction and working
environment.
To develop ecologically responsible production, processing and distribution chains,
emphasizing local systems.
From these principles the practices that form the foundations of organic farming
have been established:
o
encouraging biological cycles involving micro-organisms, soil fauna, plants
and animals.
o sustainable crop rotations.
o recycling of nutrients using composted manure and vegetable waste.
o cultivation techniques that enhance and protect the soil and its life.
o avoiding soluble mineral fertilizers.
o avoiding agrochemical pesticides, and
o animal husbandry which meets their physiological, behavioral and health
needs.
3.4 Organic Farming and the Environment
All food production causes some disruption to the natural environment.
Organic farming minimizes this disruption by:
Limiting the types and quantities of pesticides and fertilizers used
Building soil fertility and soil stability, and
8
Maintaining and increasing ecological diversity within and around cropped land.
Ecological diversity is an essential part of a successful organic farming system. It is
important to manage wildlife habitats as an integral part of an organic farm. This includes
areas such as banks, hedges, ponds, species-rich pastures, areas of poor drainage and scrub
land.
You should manage your organic farm:
To be socially sustainable as well as environmentally sustainable with respect for
good traditional and pastoral grazing systems, and sympathetically within the
limitations of local climate and topography (such as mountain, hill and upland
farming).
3.5
Mineral Fertilizers and Supplementary Nutrients
You should only use mineral fertilizers and supplementary nutrients to supplement and not
replace methods of nutrient recycling.
You must plan your production system to minimize the need for brought-in nutrients.
With justification, you may use the phosphate (P) sources listed below:
Natural rock phosphate, calcined aluminium phosphate rock, such as Redzlaag, but
only where the soil pH is greater than 7.5.
The cadmium content of rock phosphate is a potential problem. The cadmium
content of the above materials must be no more than 90mg per kilogram of
phosphate. You should use it as little as possible to avoid contaminating your
organic land.
With justification, you may use the potassium (K) (potash) sources listed below:
Wood ash, only when added to composts and manure plant extracts, such as Kali
Vinasse natural rock potash, if it has a relatively low immediate solubility in water
and low chlorine content, such as Adularian rock potash, and sylvinite and kainite
(natural potash sources)
With justification, you may use the seaweed sources listed below:
Dried seaweed meal liquid seaweed, free from ingredients we dont allow washed
up seaweed collected from the seashore by you for use on your land, and calcified
seaweed, collected from the seashore by you for use on your land.
With justification, you may use liquid feeds made from plants produced on your
organic unit.
With justification, you may use the minor minerals listed below:
Magnesium rock, for magnesium and calcined gypsum (calcium sulphate)
Gypsum rock for calcium deficiency
Epsom salts, for acute magnesium deficiency
Magnesium rock, including Kieserite
Clays, such as perlite and vermiculite.
With justification, you may use stone meal, such as ground basalt.
With approval, you may use sulphate of potash, which can contain magnesium salt,
to treat severe deficiencies.
As sulphate of potash is highly soluble we will allow you to use it only on soils
susceptible to low potassium levels. These are generally the low clay soils,
especially kaolinite clay, which have a lower cation exchange capacity. Your soil
analysis must show a clay content less than 20%. Your soil analysis must show
exchangeable K levels below index 2 (which is equal to 121mg/litre extractable K
using the ammonium nitrate method).
With approval, you may use the supplementary nutrients listed below to treat severe
deficiencies:
o
Sulphur
the trace elements boron, copper, iron, manganese, molybdenum, cobalt,
selenium,
zinc, sodium (in the form of granular rock salt)
basic slag
meat, blood, bone, hoof and horn meals, but only in propagating compost
and not on
units where there are cattle or sheep
wool shoddy, only when not in direct contact with the crop
10
fish meals and fish emulsions, provided they are free from substances we
dont allow and only in protected cropping, propagating composts or for
perennial crops
calcium only from industrial lime from sugar production.
With approval, you may use commercial fertilizers and liquid feeds suitable for
organic use to treat severe deficiencies. You will need to tell us the ingredients and
the nutrient analysis before we can approve them.
Note you will not need to provide us with details of the ingredients if we have
already verified or certified it. We can give you approval either on a case-by-case
basis or through a plan, provided we have details of why you need to use it and
under what circumstances.
You must not use any other fertilizers, including:
fresh blood
guano
chilean nitrate
urea
slaked lime and hydrated lime (calcium hydroxide CaO + H2O)
quicklime and burnt lime (calcium oxide CaO).
You must not use plant growth regulators.
3.6 Heavy Metals in Soil and Manure
Heavy metals and other metallic elements are naturally present in the soil and some are
essential, in trace amounts, to plants and animals. You need to maintain a correct balance.
Applying manure, fertilizers and mineral supplements should not increase the
concentration in the soil beyond acceptable levels.
11
3.7
Controlling Weeds
The best way to control weeds is by carefully designing and managing your whole
farm system. To control weeds it is important to use good rotation design, manure
management, well-timed soil cultivation and good farm hygiene.
You should use these methods for controlling weeds:
o
balanced rotations which include weed-suppressing and weed-susceptible
crops
sowing green manures
composting manure and plant waste, and aerating slurry
pre-sowing cultivation and stale seed bed techniques
selecting crop varieties for vigour and weed suppression
using re-cleaned seed
high seed rates and under-sowing, and
hygiene in the field and with machinery.
12
You may use the following methods if suitable:
o
pre-germinating, propagating and transplanting
raised beds and no-dig systems
mulches, including plastic mulches but made only from polyethylene,
polypropylene or
other polycarbonates
mixed stocking and tight grazing
pre-emergence and post-emergence mechanical operations, such as hoeing,
harrowing, topping, hand weeding, and
pre-emergence and post-emergence flame weeding.
You must not use any agrochemical or hormone herbicide on any part of your
organic or in-conversion holding, including:
o
on your crops
round the edges of fields
within or below hedgerows
on headlands and pathways
You must not use steam or thermal pasteurization or sterilization of the soil for
weed control.
3.8
Controlling Pests and Disease
The best way to control pests and disease is by carefully designing and managing
your whole farm system to achieve health, diversity and vitality in your soils and
crops. You will then encourage natural growth and a balanced farm ecosystem.
You should use these methods for controlling pests and disease:
o
creating fertile soils of high biological activity to provide crops with a
balanced supply of nutrients
encouraging natural predators within and around crops by:
i. companion planting, under-sowing and mixed cropping, and
ii. leaving hedges, windbreaks, wildlife corridors and field margins
uncultivated
13
choosing resistant crops and varieties that are suited to your farm conditions
grafting onto resistant rootstock
carefully planning planting dates, and
using good husbandry and hygiene practices to limit the spread of any pests
or disease.
You must ensure that any products you use for pest or disease control is approved
for that specific use by the Pesticide Safety Directorate or other relevant body.
Note - you can get a factsheet from us listing the products available and how you
can use them under the present pesticide regulations.
You may use the following products to control insect pests:
o
physical barriers, including fleeces and insect netting but made only from
polyethylene, polypropylene or other polycarbonates
pheromones in traps and dispensers, for monitoring pest levels or as
attractants and
sexual behavior disrupters
quassia preparations from Quassia amara
preparations of Bacillus thuringiensis
sticky fly traps, free from insecticides we dont allow
biological pest control, but only using licensed, naturally occurring
predators
granulose virus preparations
gelatine
hydrolysed proteins and diammonium phosphate, but only as attractants in
traps which prevent substances from coming into contact with the crop or
being released into the environment
quartz sand as a repellent.
With approval, you may use pyrethrum preparations (made from pyrethrins
extracted from Chrysanthemum cineriaefolium, which may contain a synergist).
You may use the following products to control fungi:
o
beeswax, but only after pruning
lecithin, and
14
licensed, naturally occurring biological control.
You may use rodenticides but only in tamper-proof bait stations and in places
where there is no risk of contaminating products.
Note - rodenticides must be labelled properly and you must store them under lock
and key away from food.
You may use the following products for general pest control:
o
plant oils such as mint, pine or caraway, but only as insecticides, acaricides,
fungicides or sprout inhibitors
steam to sterilise buildings and equipment
mechanical traps, barriers and sound
oils free from materials we dont allow.
You may use wetting and sticking agents used in sprays. These must be approved
products based on natural plant extracts/oils free from materials we dont allow.
You must not use petroleum oils, paraffin oils or other mineral oils as pesticides.
With approval of a detailed plan, you may use copper (Cu) products only if there is
a major threat to your crops. You may only use up to 6kg Cu/ha/year and only the
products listed below:
o
copper sulphate
copper hydroxide
cuprous oxide
copper oxychloride
copper ammonium carbonate, at a maximum concentration of 25g/l.
copper octanoate
Your plan must include details of why you need to use copper and under what
circumstances.
With approval, you may use the following products only if there is a major threat to
your crops.
Azadirachtin extracted from Azadirachta indica (neem tree)
15
4.
Flow of Dates Processing Plant
The processed dates are clean and free from contaminations. All procedures are performed with
great care from transportation to finish product to ensure the quality. Following is the flow
diagram:
Raw Material Storage
Dates are kept in shade and well protected from dust, heat, attack of
insects etc. to avoid flavor changes and weight losses etc.
Fumigation
This process is done to prevent dates from insects. Dates are kept in
an air tight chamber and exposing them to a noxious gas for 72
hours. Methyl bromide (CH3Br) is most commonly used fumigant.
This process can be carried out at atmospheric pressure and under
vacuum. The penetration of gases is more intense under vacuum
condition and time effective but expensive method (not for org.)
Sorting
This is done manually. Fumigated Dates are sorted according to
their condition and size.
Washing
Dates are passed through rotatory washing drums with water
showering nozzles.
Drying
Grading
Packing
The washed Dates are dried using diesel or gas fired.
Dates are graded to produce homogenous quality and size according
to the specifications of national / international market. Grading is
done manually. It is market driven and rejected Dates are sold for
by-products manufacturing.
The processed Dates are packed by the shrink wrap machine in
plastic bags for additional protection and preservation of moisture,
before being placed in boxes.
16
5.
Human Resource Requirements
Table 3: Human Resource
Positions
Manager
Food Technologist
Accounts/Store Clerk
Skilled Labour
Semi-Skilled Labour
Security Guards
Driver
Total Payroll Staff
6.
Number
1
1
1
4
6
2
1
16
Salary/Month
(Rs)
40,000
35,000
15,000
9,000
7,000
9,000
9,000
Annual Salary
(Rs)
480,000
420,000
180,000
432,000
504,000
216,000
108,000
2,340,000
Equipments and Machinery Requirements
Table 4: Equipments and Machinery
Processing Machinery
Dates Processing Plant
Transportation cost
Installation cost
Generator 10 KV
Transformer 50 KV
Total Cost of Processing Machinery
Description
Plastic Crates
Washing Tub
Washing drums
Sorting/Packing Table
Rejection Channel
Fumgation Room's Rack
Rack Capacity
Trays for Oven Feeding
Oven Firing Chamber
Insulation
Burner
Hot Air Dryer
Shrink Wrap Machine
Price Rs.
7,900,000
225,000
95,000
375,000
1,000,000
9,595,000
Spec. / Quantity
2x1 sqfts / 2800
concrete tank with tiles
stainless steel, 2.5x5 sqfts / capacity 250 per
batch
18x6 sqfts
on both sides of the table
channel 4"x2", Angle Iron 2'x2"
400 crates / 2000kg Dates/Room
stainless steel, 2x1 sqfts / 100
5x5 sqfts
Glass Wool
Gas Fired
7x4 sqfts
Heaters & Blowers / 4
17
7.
Land & Building
Table 5: Land Requirement
Land
4 Kanal
Total Cost Rs.
2,000,000
Table 6: Building Requirement
Area (Sq. Ft)
Processing Hall (80x16)
Fumigation Rooms 7 (15x12)
Warehouse
Store cum Generator Room
Office 3 (14x12)
Wash Rooms
Total Construction Cost of
Building
1,280
1260
1,000
100
504
240
Construction Cost
1500
1500
1400
1200
2,000
1200
Total
Cost
1,920,000
1,890,000
1,400,000
120,000
1,008,000
288,000
6,626,000
18
8.
Project Detail
Account Head
Total Cost (Rs)
Land
Building and Civil Works
Plant and Machinery
Furniture/Fixture & Equipment
Office Vehicle
Pre-operational Expenses
Total Fixed Cost
Cash
Raw Material Inventory
Up-Front Insurance Payment (year 1)
Total Working Capital
2,000,000
6,626,000
9,595,000
170,000
1,000,000
150,000
19,541,000
500,000
1,150,000
528,450
2,178,450
Total Investment
21,719,450
Financing
Equity
Debt
40%
60%
Rs.
8,687,780
13,031,670
19
9. Projected Income Statement
Year-1
Revenue
Rs.
Year-2
Year-3
Year-4
Year-5
Year-6
Year-7
Year-8
Year-9
Year-10
67,500,000
70,875,000
74,418,750
78,139,688
82,046,672
86,149,005
90,456,456
94,979,279
99,728,242
104,714,655
22,500,000
2,250,000
4,500,000
4,500,000
936,000
960,000
23,625,000
2,362,500
4,725,000
4,725,000
982,800
207,375
1,980,000
1,056,000
24,806,250
2,480,625
4,961,250
4,961,250
1,031,940
217,744
2,178,000
1,161,600
26,046,563
2,604,656
5,209,313
5,209,313
1,083,537
228,631
2,395,800
1,277,760
27,348,891
2,734,889
5,469,778
5,469,778
1,137,714
240,062
2,635,380
1,405,536
28,716,335
2,871,634
5,743,267
5,743,267
1,194,600
252,066
2,898,918
1,546,090
30,152,152
3,015,215
6,030,430
6,030,430
1,254,330
264,669
3,188,810
1,700,699
31,659,760
3,165,976
6,331,952
6,331,952
1,317,046
277,902
3,507,691
1,870,768
33,242,747
3,324,275
6,648,549
6,648,549
1,382,898
291,797
3,858,460
2,057,845
34,904,885
3,490,488
6,980,977
6,980,977
1,452,043
306,387
4,244,306
2,263,630
Total cost of sales
37,643,500
39,663,675
41,798,659
44,055,572
46,442,028
48,966,175
51,636,735
54,463,047
57,455,122
60,623,693
Gross Profit
29,856,500
31,211,325
32,620,091
34,084,116
35,604,644
37,182,830
38,819,721
40,516,232
42,273,120
44,090,961
Operating Expense
Payroll (Admin)
Administrative Overheads
Amortization (Pre-operational Expenses)
Insurance Expense
Depreciation
Total
1,404,000
675,000
100,000
530,000
1,407,800
1,474,200
1,547,910
1,625,306
1,706,571
1,791,899
1,881,494
1,975,569
2,074,347
708,750
100,000
744,188
100,000
781,397
100,000
820,467
100,000
861,490
904,565
949,793
997,282
4,116,800
4,405,570
4,449,899
4,524,625
4,600,149
4,619,220
4,665,912
4,778,393
4,889,755
Operating Profit
25,739,700
26,805,755
28,170,193
29,559,490
31,004,494
32,563,610
34,153,809
35,737,839
37,383,365
39,072,635
1,485,765
1,145,820
936,850
789,420
575,430
877,500
921,375
967,444
1,015,816
1,066,607
1,119,937
1,175,934
1,234,731
1,296,467
1,361,291
2,363,265
2,067,195
1,904,294
1,805,236
1,642,037
1,119,937
1,175,934
1,234,731
1,296,467
Earnings Before Tax
23,376,435
24,738,560
26,265,899
27,754,255
29,362,457
31,443,673
32,977,875
34,503,108
36,086,898
37,711,344
Tax
5,844,109
6,184,640
6,566,475
6,938,564
7,340,614
7,860,918
8,244,469
8,625,777
9,021,725
9,427,836
PROFIT AFTER TAX
17,532,326
18,553,920
19,699,424
20,815,691
22,021,843
23,582,754
24,733,407
25,877,331
27,065,174
28,283,508
Cost of Goods Sold
Date Cost
Fumigation Cost
Packing & Transport Cost
Export & Freight Charges
Payroll (Production Staff)
Machine Maintenance
Direct Electricity
Diesel Cost
Non-Operating Expense
Interest expense on long term debt
Interest expense on Running Finance
Export Development Fund/WHT (1.3%)
Total
197,500
1,800,000
754,820
1,367,800
690,001
1,367,800
650,123
1,367,800
605,312
1,367,800
598,031
1,367,800
512,053
1,367,800
485,231
1,367,800
2,178,065
1,047,147
-
450,325
1,367,800
425,315
1,367,800
5,018,326
1,361,291
20
10.
Key Assumptions
Table 7: Production Assumptions
Capacity of processing plant (kg/Hour)
Production Capacity per year kg (100%)
Production Capacity utilization kg (75%)
Hours operational per day
Days operational per month
Days operational per year
Raw material per kg Rs.
Packing Cost per kg Rs.
Fumigation Cost per kg Rs.
Export & Freight Charges per kg Rs.
Sale price per kg Rs.
250
600,000
450,000
8
25
300
50
10
5
10
150
Table 8: Expense Assumptions
Administrative Overhead (% of Total Revenue)
Electricity per Month (Rs)
Diesel per Month (Rs)
Machine maintenance cost (% of machine cost)
1
150,000
80,000
2
Table 9: Growth Related Assumptions
Electricity growth rate
Wage growth rate
Date purchase price growth rate
Machine maintenance growth rate
Sales price growth rate per annum
Table 10: Depreciation Assumption
Depreciation Method
Building depreciation rate
Machinery & Equipment depreciation rate
Office Equipment depreciation rate
Furniture & Fixtures depreciation rate
10%
10%
5%
5%
5%
Straight Line Method
5%
10%
10%
10%
21
11.
Disclaimer
The content of the information memorandum does not bind NBP in any legal or other form
as the purpose of this report is to provide a general idea and information to NBP staff to
assist them evaluate the feasibility reports submitted by the clients, and for the farmers and
organizations interested to establish Dates Processing Plant. The data and info reported in
this document is gathered from various sources and is based on certain assumptions. In spite
of taking due diligence in compiling this report, the contained information may vary due to
any change in any of the relevant factors e.g. agro-climatic conditions, plant management,
market prices, inflation, export policies, energy crisis etc. and the actual results may differ
substantially from the presented information. NBP does not assume any liability for any
financial or other loss resulting from this document in consequence of undertaking this
Project.
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