INTEGRATOR COMPANY OF

COASTAL PEANUT
Girl from Oaxaca

PROJECT: "PEANUT BENEFIT

(Arachis hypogaea) IN THE COSTA CHICA OF
OAXACA

TEAM 3 MEMBERS

ØSARAI LÓPEZ PEÑA

ØMARGARITA PERALTA SANTIAGO
ØELPIDIA MARTÍNEZ SÁNCHEZ
ØFELIPE CRUZ VELASCO
OJOSE ALBERTO TOLEDO FIGUEROA
ØDINO RODRÍGUEZ VILLANUEVA
PEDRO LÓPEZ HERNÁNDEZ
ØAMANDO JIMÉNEZ FLOREAN
WILLIAM MAURO MORENO
 OAXACA DE JUÁREZ, OAX. JULY 2002.
FRAME OF REFERENCE

BACKGROUND
The peanut is native to America. Due to its high energy content, it has been known for a long time.
time has been part of the diet in our country, either directly as
fresh fruit, in the form of a snack or as part of various Mexican dishes that are the
mole and pipián or the very popular 'encacahuatado.'

The peanut, also known as monkey nut, is an important source of vegetable oil in the areas
tropical and subtropical.

The peanut has a high demand for direct consumption after roasting, and it is
important as oil for human consumption; for this it is necessary to roast it, just like if it
consume dorado, or process it if it is consumed spiced; consume it Japanese style, too
requires a process. Peanuts can be an ingredient in products such as
oils, mayonnaises, butters, sweets, cakes, cookies, cream, margarine, likewise, is
used in the production of products such as fine cosmetic soaps,
pharmaceutical products, adhesives, paints, and special lubricants, for all of these
use the seed.

Despite enjoying favorable agroclimatic conditions for production

peanut, in our country, the production of this crop has not been given importance, so it
that has only been produced mainly for internal consumption for many
years.

In the year 1990, the amount of peanuts imported was 7,305 tons, and for 1999 it was
49,129 tons.
Due to production shortfalls over some years, it was necessary
import certain quantities of products and derivatives, mainly for internal consumption
for many years.

Regarding the cultivated area, it is estimated that in Mexico, approximately a total of

84,265 ha. The average yields are around 1,670 kg/ha, which means that
our country is 160 kilograms above the world average.

Within the American continent, the country contributes 1.98% of the production, positioning itself as

the fourth producer after the USA, Argentina, and Brazil.

Traditionally, the main peanut production states are Chihuahua, Sinaloa,

Oaxaca, Puebla, Chiapas.

The Costa Chica of the state of Oaxaca produces approximately 28,000 tons of peanuts.
in the process during the rain-fed agricultural cycle; however, there is a strong problem of
marketing due to the low average rural price, which leads to seeking specific markets
in the transformation industry, offering added value in the product.

From this framework of reference arises the interest in establishing an Integrative Company.
of Peanut in the Costa Chica of Oaxaca, as S.A. de C.V., with the participation of 740
producers grouped in 5 Rural Production Societies, this organization will have
a share capital of $10,000,000.00, contributing $50,000.00 from each S.P.R. and the remainder $

3,500,000.00 will be support from ASERCA for marketing and other institutions.

This project will start with a peanut processing industry located

strategically on the small coast of the state, benefiting a total of in the first year
15,428 tons and undergoing a transformation process until reaching the peeling of
peanut. The byproduct that will be obtained is the shell and it will be used as
dietary supplement for livestock.
Finally, it is concluded that this project is technically feasible and economically profitable.
and environmentally compatible.

2. PROJECT LOCATION

Macrolocalization

The State of Oaxaca is bordered to the north by Puebla and Veracruz-Llave; to the east by Chiapas; to the

bounded by the Pacific Ocean; to the west by Guerrero. The state of Oaxaca represents 4.8%
of the country's surface.

The State of Oaxaca is made up of seven regions, which are: Valleys

Centrals, La Cañada, Coast, beautiful hill, the high and low Mixteca, Isthmus of Tehuantepec.

Its geographical coordinates are:

To the North: 18º 39' North latitude

To the South: 15° 39' North latitude
To the East: 93º 52' West longitude
To the West: 98° 32' West longitude

2.2. Microlocalization

Political boundaries

The municipality of Santiago Pinotepa Nacional is located within the district of Santiago.
Jamiltepec, to the north borders the municipality of San Miguel Tlacamama, to the south with the
Pacific Ocean, to the east with the municipality of Santa María Huazolotitlán and to the west with the
municipalities of Estancia Grande and Santo Domingo Armenta.
Extension
The municipality of Santiago Pinotepa Nacional is made up of 24 ejidos and a
new population center Mariano Matamoros covers an area of 42,500-00-00, that
mostly, they are lands used for agriculture and livestock.

General Objective

Obtain a better benefit from peanut production in the Costa de Oaxaca region by
give added value to the product for its proper marketing.

Objectives

1. Exploit the potential that exists in the Costa Chica region of Oaxaca for the
peanut production, industrialize it and market it.

2. Adding value to peanut production through new technologies

existing ones and those that can be easily adapted.

3. Improve producer income by reducing intermediaries and increasing

its uses.

4. Create jobs through the processes adopted with the system.

added value.

5. Make use of peanut by-products as feed for livestock from

the reuse of waste.

Politics
It is the company's policy to offer high-quality products, satisfying the requirements.
of the client and exceeding their expectations.

Organizational Goals

Link six producer organizations in the Costa Chica of Oaxaca, through a

Integrating Company.

Increase the income of producers from the Costa Chica through their integration into the
productive network of peanuts.

Train producers in the peanut processing process.

Goals

In the short term and medium term:

a) Process 15,428 tons of peanut in shell from 60 tons of raw material/

day.
b) Generate 8 sources of employment: 5 operational and 3 administrative.

c) Increase the production value by 100% with added value.

9.13. Main strengths and risks of the project.

SWOT Analysis

STRENGTHS WEAKNESSES

Guaranteed supply of Considerable initial investment

for fixed costs (land,
 raw material. construction, machinery and
team).
Skilled labor at low cost
cost. High cost for conditioning
wineries.
Raw material suppliers
owners of the company and their Lack of market knowledge.
cultivated land.
They do not have their own warehouses.
They have the guarantee for
No administrative training.
access a greater capital of
work.

Efficient management of the system

production.

OPPORTUNITIES THREATS

Technical training for the Low prices in the

transformation of the peanut. marketing.

Support from the State Government. Little to no technical advice.

Facilites in policies Climate not suitable for storage

Governmental. raw material.

There is no competition in the Political situation in the future.

State.

Easy access to credits for

working capital.

Mix of resources.

•Preference for this peanut in

the international market.
 Good communication routes:
Infrastructure.

Value network

The execution of this peanut processing project through a

Integrator implicitly involves the generation of a Value Network (Scheme 1) that includes
relationships with various companies and producers. Among these, the following stand out:

•Mix of resources for financing: Commercial Banking, State Government,

Federal Government and Producers.
Consulting: Project Formulation and Evaluation and A.T.I..
Peanut Transformation Industry for the final consumer.
Competence to deliver quality products.

Competitive Strategies

Peanut differentiation: Flavor and Selection.

Cost leadership:

. Adequate selection of machinery.

Training aimed at the personnel who will operate the plant.

Scheme No. 1.- Value Network of the Integrator

 GOVERNMENTS: BANK
STATE AND FEDERAL

INTEGRATOR INDUSTRY
A

PROVIDING
R INPUTS
CONSUMER

FINAL
COMPETENT
CIA
PRODUCERS

CONSULTANTS

Vision
To eventually transform into an industrializing company of peanuts whose products
be competitive in quality and price in the national market

Mission

Offer the peanut processing industries a product that meets the standards of
quality in line with consumer demands, consolidating as a product
leader in the market.

Strategies to follow for implementing the project

The training courses will be planned in such a way that they are conducted on time and in order.
optimal to ensure the attendance of the majority of the participating agents these are
constantly.

A technician or specialist will be hired for the production area to perform and
coordinate the activities of your area in the best possible way always seeking
streamline all the processes carried out.
The executives will make the acquisition of machinery and equipment according to the amount.
assigned for each adapting them to the availability times of the granted resources
by the aforementioned institutions, they will also carry out a management and execution plan
the equipment according to the arrangement of the raw material.

In the first month, the staff of the integrator will be trained on the use and handling of the
machines, this training will be provided by the equipment suppliers.

A team will be assigned to conduct periodic evaluations to assess the impact of

according to a diagnosis in the technical, industrial, commercial areas and in quality
amount of finished product handling services. This team will present a
report of the evaluation obtained by the executives.
The assessment and impact indicators will be the following:

In the field, the improvement of production processes and the yields obtained.

In administrative roles, efficiency in the use and management of financial and human resources.

Increase in the efficiency of process equipment management.

Increase in the number of customers.

Increase in revenue.

A truck will be purchased for the transportation of raw materials and for the finished product.
truck with a capacity of 18 tons which will be used for proper performance of the
industry.

The product in the market

A shelled and selected peanut will be offered as the final product of the
Integrator, with various presentations which are: small, medium, large, halves and
chunks for the first year, which will satisfy the need for quality raw material for the
candy, treats, and snacks industry, which has sought regional products for
its "sui generis" flavor.
The peanut has a great demand for direct consumption after roasting, and it is
important as oil for human consumption; for this it is necessary to toast it, just like if it
consume dorado, or process it if consumed with chili; consume it in Japanese style as well.
requires a process. The peanut can be an ingredient in products such as
oils, mayonnaises, butters, sweets, cakes, cookies, cream, margarine, likewise, it is
used in the manufacture of products such as fine cosmetic soaps,
pharmaceutical products, adhesives, paints and special lubricants, for all of this
use the seed.
The bulk of production is destined for the food market for the manufacture of
food manufactures such as: fried peanuts, toasted, with salt and chili; the grains
broken pieces are used in candies, cakes, cookies, and other confections such as
peanut oil, peanut breads or como palanquetas and cream; the rest is destined
to the food market for the manufacturing of raw materials in the pharmaceutical industry and
chemistry.

Regarding the cultivated area, it is estimated that in Mexico approximately a total of

84,265 ha. The average yields are around 1,670 kg/ha, which means that
Our country is 160 kilograms above the world average.

Characteristics of the main producing regions of the country

Traditionally, the main peanut-producing states are Chihuahua, Sinaloa,

Oaxaca, Puebla, Chiapas.

Its distinctive characteristics are as follows:

Chihuahua

The main producing region is the central part that basically includes the municipality.
from Delicias. In this region, there are little undulating reliefs that allow for use
intensive agricultural machinery for the execution of the various activities linked
with the production of peanuts.
The Delicias region is a highly technified area in peanut production due to
most producers have irrigation systems that allow them to supply
to the cultivation of sufficient water for its full development.

The varieties planted are Virginia and to a lesser extent Florunner.

Two agricultural cycles are presented:

Spring–Summer
Autumn-Winter

Yields range from 1.959 to 2.4 tons/ha. The production is captured by six
regional companies that are responsible for the cleaning and sorting of peanuts. The
companies that are currently operating include the Unión de Crédito Progreso, S. A. de C. V.;
Delicias Credit Union S. A. de C. V.; Mexican Peanuts S. A. de C. V.;
Converter and Peanuts of Delicias; Moisés Quiñones; Blas Valles.

Oaxaca

Its production area is seasonal, with a suitable climate and soil, it is located in the
Costa Chica of Oaxaca; this area includes three Development Districts where the bank
Ejidal introduced the Florunner variety from the USA, which is successfully grown.

There are large and small producers, with small producers generally being
ejidatarios and large producers, basically owners of the land they work,
The regular ones are independent. Large producers sometimes finance the ...
small ones, in exchange for the commitment to sell their production, so that they can resell it
to buyers outside the state of Oaxaca. Large farmers receive credit from
local bank for the acquisition of equipment for cultivation.
There are two shelling plants in the state that are responsible for buying and
market the production.

The yields obtained in the state vary; but the average per hectare is
between 1.0 and 1.6 tons/ha.

Sinaloa

The producing area of the state of Sinaloa is located in the regions of El Fuerte, Guamúchil.
and Mocorito. The main producing area is the northwest of Guamúchil. In this region the
Peanut is grown in the valleys at the foot of the mountains.

The production is basically seasonal, despite being a strongly...

agricultural under irrigation conditions.

The planting period is during the last days of June: the start is carried out during
the months of October and November.

Most producers have extensive technical knowledge and the machinery is

own, which allows for a more profitable exploitation.

The cultivated variety is mostly a native type of Virginia creole and has
average yields of 1.18 tons/ha. The production is acquired by various buyers
who in turn sell it to the processing and roasting plants, the main plant
The processor is located in Guamúchil.

The peanuts produced in Sinaloa are mainly used for making candies and
snacks that supply the state market. The processed and roasted peanut is sold to the
wholesale markets of Guadalajara, Monterrey, and Mexico City.

Chiapas
The state of Chiapas produces dry peanuts, mainly in the central zone.
specifically in the municipalities of Jiquipilas and Cintalapa. This area has great
the potential for cultivation is perhaps the least developed of all the producing areas of
peanut in Mexico. Mainly because there is no technology development and
mechanization, so most of the productive activity is done by traction
animal.

The region has a research center for agriculture and livestock that in
on occasions it provides services to peanut producers.

The most common varieties are Virginia and the certified GK-7 Runner type.
USA.

The big problem of the state is marketing, due to the level of intermediation.
Regional collectors monopolize most of the harvest and sell it outside the state.
mainly to Puebla, D.F., Morelos, Aguascalientes, and Guadalajara.

The yields obtained in the state vary, but the average per hectare is
between 1.4 to 2.7 tons/ha.

Puebla

The peanut producing area of Puebla is located in the municipalities of Acatlán,

Guadalupe, Tehutzingo, and Chutla, which have the largest planted area and therefore the
greater production of this product. However, the municipality of Tlapanala is the main
peanut industrializer. This municipality ranks sixth in state production.

Producers are distinguished because small producers are organized.

in different legal entities, while the large ones are found in Companies
Anonymous. These last ones also engage in buying peanuts from other states,
mainly from the states of Oaxaca and Chiapas.
The average yields in the producing area are around 1.03 tons/ha, being the
main variety of the criollo type of Virginia.

Most of the production is acquired by local buyers who resell the

harvests for micro-industries in Tlapanala.

The largest consumption centers for the product from this area are located in the centers.
from the supply of the state and of the Mexico City.

The product has the following strengths:

Non-perishable product,
With low levels of aflatoxins,
It will be distributed in several presentations.

Its consumption occurs throughout the year, as it is a seed of great acceptance in the
national and international market, which constantly needs raw materials in its
industrialization processes, product demanded for reasons of taste.

The latest research on the dried fruit has shown that it does not contain
cholesterol of saturated fat and that thanks to its great variety of nutrients benefits health
of the human being. It is claimed that it reduces the level of cholesterol in the blood. It has been

it has been confirmed that a higher consumption of walnuts and peanuts leads to weight loss.
In the case of the peanut, there is also an increasing amount of evidence that this fruit
reduces cancer and heart diseases.

The aim is to penetrate the market by offering services such as:

Position in the processing plant

Credit facilities within a period of 10 days for the payment of one or more clients, as applicable.
exclusivity for a client, as long as the entire production volume is acquired
from the Integrator.

Quality standards requested by the industry

1. Receive product only with less than 15% moisture.

In the cleaning process, all peanuts with broken shells are removed.
3. Product uniformity.
The packaging must be perfectly sealed.
5. Monitor the cleanliness of the equipment and hygiene throughout the entire production process.

personal.

Technical evaluation of the raw material

This dry fruit contains 25% nitrogenous matter, 50% oil, 2-3% cellulose and
ashes, and 15% water. Regarding nutritional properties, roasted peanuts contain
a high percentage of protein, fiber, carbohydrates, vitamins, mineral salts, and acids
unsaturated fats, the most important being potassium, magnesium, calcium, folic acid,
thiamine and pyridoxine.

May the fruit not come with the shell broken.

The product will only be available in the months of October and November.

Sown and harvested area

The peanut is a crop that is sown in most of the national territory, since
it is a legume that is not very demanding in relation to the soils and climates in which it can grow

develop
However, only a set of states stands out for the amount of surface area.
sowing. From this group, the state of Puebla stands out, as it alone contributes with the
32% of the planted area.

The sown area for the year 1980 totals 64,436 ha.
Since 1990, there are 81,246 hectares, which represents a 24% increase compared to that year.
In 1980, the total was estimated at 84,261.1 ha by the year 1999.

As for the harvested area, we have the following relation: for the year 1980, there was
it reports 62,388 ha, for the year 1990 there is a total of 79,917 ha and for the year 1999
approximately 83,602.1 ha of harvested area.

Main product

The Integrator will provide the product to the industry according to its requirements.
needs in the following way:

Shell-free, categorized into different sizes:

Boy
2. Medium
3. Big
Halves
5. Pieces
6. With cuticle (red color) or without cuticle

Additionally, the product will be packaged in transparent polyethylene bags with a capacity of 30.
kg, which will facilitate its handling and distribution.

Peanuts, due to their high energy content, have been part of

from the food in our country, either directly as fresh fruit, in the form of
snack or as part of various Mexican dishes, such as mole and pipian; and
it is also consumed by the industry for the production of cosmetics, inks, colors and
soaps, even importing some quantities of derived products (due to
also that the Northern States of the country due to their proximity to the United States
they market the product there), which indicates that national demand is higher than the
offer, therefore there are opportunities to increase production capacity. There
it is produced in most of the national territory, as it is a low-demand legume
in relation to the soils and climates in which it can be developed; however, in the country
Three states stand out that together have cultivated more than 58% of the total land.
cultivated. From this group, Puebla stands out notably due to the large amount of surface area.
sown since it alone contributes approximately 32% continuing with
Oaxaca and Sinaloa, which present 13% and 12.3% respectively.

Nutritional Content

The product that will be used as raw material contains:

CONCEPT PERCENTAGE
Azotic matter 25%
Oil 50%
Cellulose and ashes 2-3 %
Water 15%

Regarding nutritional properties, roasted peanuts contain a high percentage of

proteins, fibers, carbohydrates, vitamins, mineral salts, and unsaturated fatty acids
with the most important being potassium, magnesium, calcium, folic acid, thiamine, and pyridoxine.

The presentation that the industry will give to the product will be: granulated, powder, with shell,
peeled, bleached, whole, in halves and pieces. The final use to get it to the
the consumer is detailed as follows:

Snacks: Mixed, toasted, fried, salty, spiced, Japanese.

Sweet: Marzipan, bar, pasta bar, candied, chocolate-covered.
Specialties: Butter.

By-products

The peel will be used as a byproduct for livestock feed, due to its high
fiber content, delivered in bulk to whoever demands it.

Prices

In general, rural average prices had begun an upward trend.

from 1989 until 1991, however, by 1992 the production volume was greater than
consumption of that year, leading to the creation of high inventories by the
producers, which caused a drop in prices during that period, being the most
pronounced in the state of Oaxaca, where the price difference from one year to another
achieved a reduction of over 54% and at the national level, the decrease in the level of
price reached just over 18%.

The drop in rural average prices led, in turn, to the following year the
producers decided to reduce their area allocated to this crop, thus diminishing it.
production in almost all states. By 1993, there was a slight recovery in
tratar de volver nuevamente atractivo al cacahuate, manteniéndose la tendencia hacia el
increase for the next year.

In the supply centers of Mexico City and Guadalajara, which received product
from Guerrero and Nayarit respectively, the average wholesale prices showed a
a trend similar to that observed in rural average prices.

In 1991 the levels were $4.75 and $4.41; in 1992 as well as in the prices paid to
producer the quotes dropped to $3.27 and $3.25; for 1993 they were
$5.10 and $4.92; in 1994 $4.73 and $4.30 and in 1995 due to the increase of the
imports, the product destined for local consumption was diminished causing a
strong increase in prices which ended at $7.43 in the wholesale market
Federal District and $5.15 in Guadalajara.

The value of the product that the Integrator will produce has behaved in the different
markets within the Republic of Mexico as follows:

Price ($)
MARKET
2001 2000 1999 1998 1997
Puebla 12.00 9.60 7.60 6.00 5.00
Guanajuato 3:00 PM 1:00 PM 9.60 7.60 6.14
Oaxaca N. R.* N. R.* N. R.* N. R.* N. R.*
Warrior 2:00 PM 11.20 9.00 7.20 5.80
Sinaloa 6:00 PM 14.40 11.50 9.20 7.40
N.R. = Not reported

PRICE ANALYSIS
OFFER-DEMAND (PROJECTION)
 Offer Demand
Year
(Ton.) (Tone.)

2002 142,688 201,590

2003 148,395 217,717

2004 154,331 235,135

2005 160,504 253,945

2006 166,924 274,261

 Ton.

300,000

250,000

200,000

150,000

100,000

50,000

0
2002 2003 2004 2005 2006 Year

Offer
PEANUT PRICE (Ton/Year)

Year Price/Ton.

1990 1,636

1991 2,528

1992 1,162

1993 1,215

1994 1,309

1995 2,730

1996 3,000

1997 3,916
Price
4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0
1990 1991 1992 1993 1994 1996 1997 Year

PEANUT PRODUCTION (Ton./Year)

YEAR OF PRODUCTION

1990 15,963

1991 15,654

1992 24,331

1993 13,270

1994 6,565

1995 14,977

1996 18,834

1997 10,972
Production

25,000

20,000

15,000

10,000

5,000

0
1990 1991 1992 1993 1994 1995 1996 1997 Year
Marketing

In our country, 12% of the production is destined for the preparation of oil, cream of
peanut, and other industrialized products such as inks, lipsticks, colors and
soaps.

The remaining 88% is used for direct consumption, after roasting in the form of
candy, candied nuts, sweets or snacks, salty and spicy. In addition to its production
In fruit, cultivation is a supplemental source of pasture, as well as a generator of
very important work, such as in the case of Chihuahua, where it is estimated that this product
it requires an estimated workforce of 200,000 man-days per cycle.

The marketing of peanuts is carried out through various channels depending on the
region. In the case of the central and southern part of the republic, this is carried out through

intermediaries that concentrate the production of various farmers, who prefer

sell their harvest at relatively low prices, but thereby obtaining immediate liquidity
that allows him to cover his short-term expenses, even when the profit is lower.

The national marketing of peanuts is carried out through various channels,

typical of each producing area.

In the marketing of peanut cultivation, four distribution channels are presented.

which start with the producer and end with the final consumer.

Channel 1. It is the most common as it starts with the producer, going through a first process.
what is peeling and sorting, then roasting, purchasing in bulk,
the retailer and finally the end consumer.
 PRODUCER

PEELED AND SELECTED

Toasted

Greater medium

RETAILER

FINAL CONSUMER

Channel 2. It is the path that the product takes from agricultural exploitation, passing through the
peeling and selection, being able to export and from there to the final consumer.

PRODUCER

Channel 3. From the producer, itSCRAPED

undergoesAND
an initial process of shelling and sorting.
SELECTED
Afterwards, the peanut can be taken to an industrial process by the collector or wholesaler.

EXPORTATION

FINAL CONSUMER
for the use of sweets, pharmaceutical products, medications, cosmetics, subsequently to
retailer to present the product and ultimately reach the consumer.

PRODUCER

DE-SCALING AND
SELECTED

COLLECTOR OR
WHOLESALER

INDUSTRY, CANDY STORE AND MEDICINES AND

PHARMACEUTICAL COSMETICS

RETAILER

FINAL CONSUMER
Channel 4. In this channel, the peanut is imported, once acquired, it is purchased by
a wholesaler or distributor, moving to semi-wholesale, to the retailer, and finally to the
final consumer.

IMPORTATION

COLLECTOR OR
Marketing channels in the productionWHOLESALE
area.

It includes the states of Guanajuato, Puebla, Morelos, Guerrero, Oaxaca, and Chiapas.
Wholesale

Marketing is carried out through intermediaries that concentrate production.

from various farmers, who prefer toRETAILER
sell at low prices to obtain liquidity
immediate.

FINAL CONSUMER
In this chain, the intermediaries receive the raw product and apply the processes of
drying and roasting to immediately distribute it to the nearest CEDAS, and to a lesser extent

measure for industries that have interest.

 Agricultural Producer

Local marketing channel INTERMEDIARY

PRODUCER
COMPANIES
TOASTERS
PEANUT COMPANY OF THE COAST
GIRL FROM OAXACA

WHOLESALE TRADE AGROINDUSTRY

(CEDAS) INDUSTRY OIL AND
Botanist

TRADER FINAL CONSUMER MERCHANT

WHOLESALER RETAILER

FINAL CONSUMER
For their part, the intermediaries, mostly owners of treatment plants of
peanuts receive the raw product by applying the processes of roasting and drying, to
subsequently distribute it to the nearest supply centers to your locality and in others
cases, distribute them to the industries with which the acquisition has been previously negotiated.
The disadvantage of this process is that most of the profits from the sale of the
The product stays with the intermediary, receiving the direct producers from the crop.
only a minimal part of utility for their effort, although it must be acknowledged that they
they prefer this system due to the security they have to sell their crops.

In the north of the Republic, marketing is primarily carried out through two
channels. On one hand, there are agribusinesses or unions, which allow for consolidation
the productions of its members in order to offer them to the market in better
conditions both in terms of price and quality, which is possible because these
producers are subjects of credit from the Development Banking, a situation that
increases the chances of competitively competing in the markets.

Through this associative figure, the producers allocate the majority of their crop,
approximately between 60 and 70% for export to the United States, and the
remaining product, 30% is distributed to the transforming industries in the area. Of this
15% is dedicated to fresh consumption.

On the other hand, although also very linked to unions, a form of has begun.
to market this product very conveniently. The system consists of that
Representatives of the major American companies come to our country to negotiate.
the price and delivery conditions of the product, in exchange for the security of the supply of
peanuts for their companies, these industrialists are financing the planting efforts,
mainly through the purchase of seeds and fertilizers, which is convenient
both for sellers and buyers. For the former, that is, the farmers,
allows them to have economic resources and dedicate their own to other factors, such as
it can be the acquisition of machinery or farming implements at the same time as
they ensure the fate of their crops. For the second ones, the buyers,
allows them to secure the production of their industries by having enough raw materials.
in this case peanut, to produce its products, also considering the possibility of
to be able to plan your financial costs.

Trade balance

Despite enjoying favorable agroclimatic conditions for peanut production,

in our country, insufficient importance had been given to the production of this crop.
so it was only produced for internal consumption.

Due to the fact that in some years this production was not sufficient, it was necessary to import one.

certain amount of derivatives, mainly peanut oil, as occurred in 1989 and

1990, years in which imports represented 2 and 4% of production
national respectively. However, this trend reversed and from 1991 onwards the
Imports of peanut-derived products do not represent a greater amount.
problem for the balance of this crop.

The line worth highlighting is that of exports, which had

practically forgotten by national producers. Until 1994, the year in
that foreign companies focused their attention on Mexican peanuts, resulting in
immediately in a significant increase in the volume and value of exports.
It is necessary to emphasize that this increase was not due to the entry into force of the free trade agreement, as

that this product was duty-free when the negotiation took place.

International Market

The world production of in-shell peanuts showed a slight increase in 1998,

with China being the largest producer. However, sales decreased in Italy and
Germany, countries with the highest exports.
The main countries consuming raw peanuts are the European countries Italy,
Germany and Spain. While the main countries consuming shelled peanuts
they are the Netherlands, Indonesia, the United Kingdom, and Canada.

Perspectives

The outlook for the production of this legume is quite promising. The companies
foreigners have evaluated the advantages of having a Mexican product and
they have decided to invest in our country, as the quality of our peanut is at
the requested height at an international level.

The potential that entering this market represents is enormous. The American union
set a quota for duty-free entry of peanuts for 1995 at 3,478 tons and for
1996 3,583 tons, which represented the possibility of exporting almost double what
in 1994 it was carried out.

Project location and size analysis.

9.4.1 Location
N
CARRET. ACAPULCO- MUNICIPALITY
NATIONAL PINOTEPA PINOTEPA NATIONAL

ADHESIVES

PACIFIC OCEAN
Conceptual design of the project

PRODUCERS
OF PEANUT

Beneficiary SUBPRODUCTS
CASCARA

CONSUMPTION
ANIMAL

PLANT PRODUCT
INDUSTRIAL FINISHED AT
MARKET

Size of the plant

The peanut processing project includes the establishment of a plant in

a municipality of the Costa Chica of Oaxaca, which will process 15,428 tons of peanut
annually.
Relationships that influence their determination

Market Size (potential demand)

Size Demand Difference
5,400 Tons 201,590 196,590

Geographical distribution of demand

Geographical distribution
Puebla Guadalajara Other alternatives
Size
Tone 2,000 2,000 1,400

Size Cost-Production
Size Cost/ton. Production Total cost $
15,428 tons. Shelled peanut 10,800 tons/year 97,200,000
cascara 200 tons/year

Origin and budget of the teams

Size Origin Budget
5,400 tons. Jalisco, Mexico. $6,921,518
Villamex, S. A. de C. V.
Mexico City (Abamex Engineering, S. A.
of C. V.
Monterrey, N. L.
Simeri, S. A. de C. V.
Machinery for peanuts and seeds
Jimenez
Camionera de Oaxaca S.A. de C.V.
DINA
5,400 tons. Team Investments
Machinery for processing peanuts
snack and make butter of
peanut and peeled. Mexican Technology and
foreign
5,400 tons. Raw Material Input
7,714 tons of peanut in shell (raw)
 Size availability-land
Size Land Availability
5,400 tons. 30,000 m2

Size availability-labor
Size Availability of the workforce
5,400 tons. 10 journals
Size-availability-financing
Size Availability of financing
5,400 tons. $10,000,000.00

PROJECT ENGINEERING

THE PRODUCT

The peanut belongs to the legume family, subfamily of the

leguminous, it is native to America. It is an annual, herbaceous, erect plant.
ascending from 15 to 70 cm high with slightly hairy stems, with branches
from the base, which develop roots when those branches touch the ground, the flowers are
ostentatious, sessile, the stamens are 9 and not diadelphous; after the flowers have been
fertilized, the true pedicel develops on the stem or stipe, from 3 to 10 cm of the
surface, they are 1 to 7 cm long, swollen on the inside, and contain 1 to 4 seeds of color
yellowish coffee, with prominent reticulated edges and more or less depressed between the
seeds, the testa is light or dark red. There are three main varieties: the
Virginia, the Floor runner and the Georgia green, the latter is the variety that they grow.
partners of the Integrator for their physical qualities, such as having the pod with
thin shell, small almond and heavier weight; the peanut progresses well in the climate
The subtropical region requires 100 to 120 days for its maturity.

Industrialization of peanuts

Industrial Characteristics

The peanut that goes to the industry must be received at the agroindustrial plant.
from the integrator company in bulk in pod free of soil and waste (residues)
herbaceous), as this will prevent the processing from becoming difficult and due to
consequence of rising production costs in the plant.

It will be inspected and weighed later.

Quality Standards

a. The peanuts must contain low levels of aflatoxins and no residues of

agrochemicals (herbicides and insecticides).

The peanut in the pod must contain less than 15% moisture.

c. The peanuts that come from the field should not be transported in trucks
that are dedicated to transporting fertilizers, agrochemicals, fuels, and everything
type of material that could contaminate the raw material and,
consequence, the finished product.
 d. In the cleaning process, all the peanuts that are present will be eliminated.

broken shell.

The finished product must be presented in perfectly packaged.

sealed.

Technical evaluation of the raw material

This dry fruit contains 25% nitrogenous material, 50% oil, 2-3%
cellulose and ash, and 14% moisture. Regarding nutritional properties, the
Roasted peanuts contain a high percentage of protein and fiber.
carbohydrates, vitamins, mineral salts, and unsaturated fatty acids, being the
more important potassium, magnesium, calcium, thiamine and pyridoxine. In addition, it
It will eliminate any pod that has a broken shell.

Availability of raw material by cycle

The supply of raw materials that the company will have will be taken
of the five SPRs that make up the integrator and that together reach a
production of 28,000 tons per year, of which for the moment it will go to
starting with 7,714 and in ten years it is intended to benefit 20,000 tons to
subsequently benefit the entire production of the region.

The raw material is available from October to December in a

Initially, being able to store product to have raw material throughout the year.

Concept Ene Nov Dic Total

Volume
10,000 13,000 5,000 28,000
Produced (ton)
SPR 1 5,000 5,000
SPR 2 5,000 5,000
SPR 3 7,000 7,000
SPR 4 6,000 6,000
SPR 5 5,000 5,000

Behavior
7.0 7.0 3.5 17.5
or of the Collection (%)
SPR 1 3.5
SPR 2 3.5
SPR 3 3.5
SPR 4 3.5
SPR 5 3.5

Behavior
ofSales(%)
SPR 1
SPR 2
SPR 3
SPR 4
SPR 5

Purchases o
2,000 2,000 1,000 5,000
inputs (Ton)
SPR 1 1,000 1,000
SPR 2 1,000 1,000
SPR 3 1,000 1,000
SPR 4 1,000 1,000
SPR 5 1,000 1,000

Sales or Outflows
(Tone)
SPR 1
SPR 2
SPR 3
SPR 4
SPR 5

Times

For the application region of this project, the planting is seasonal.

are carried out in the month of June obtaining the product of interest starting in October
December and distributing it throughout the year by
storage.
Concept Ene Nov Dic
Peanut Cultivation
Sowing X
Harvest X

Peanut as Matter
First for the X X X
Agroindustry

Available as Material
10,000 13,000 5,000
First (Tone)

Adaptability to Technology

The raw shelled seed is very resistant to handling, especially the

cuticle, so it adapts very well to the technology used for peeling and
classified.

Classification:

Peanut in shell (with shell)

Shelled peanut

Marketing:

Bags of 30 Kg.
Bags of 100 to 150 grams.
c) Bulk (By-products)

Peanut for selection industry (confectionery type)

Color

a) Colorado
 b) Pink
pale pink

Receiving tolerances

Soil: maximum 0.5%

Foreign bodies: maximum 1%
Peeled grains: maximum 10%
Grains of another color: maximum 5%

Grains with type 1 damage: maximum 2%

Grains with type 2 damage: maximum 1.5%
Altered grains in their presentation: maximum 6%
Broken and/or split grains: a maximum of 0.5%
maximum 15%
Live insects: free
Commercially objectionable odors: free
Rolled: free

Immediate added value

Post-harvest management

pinch (threshing)

The harvest is the detachment of the fruits from the plants, this task can
to take place both in the field and at home, manually or with
mechanical harvester.

Natural drying
The objective is to reduce the moisture content of the seed (which in the
harvest time can have 35 to 40% moisture content), in shape
gradually until containing 10–15%. To achieve this, the plants are threaded with
the roots and fruits towards the sun rays in order to achieve a quick drying and
homogeneous.

Unshackle

It consists of breaking the pods to separate the seeds from the shell. It
it is fundamentally done by pressure with dehuskers that have soft rollers
that thrash and separate the husk from the seed. Under good conditions, it should
obtain 25 to 35% of shell and 70 to 75% of seed.

Toasted and dried product (snack peanut)

The peanut is one of the most consumed nuts in the country, which does not
despite being an oilseed with high protein content, it is used
mainly as a snack or treat; there are three basic ways in which
Can the snack peanut be consumed?

Bulk peanuts with shell

The peanut undergoes a simple roasting process with its shell.

Because the comprehensive processing of the peanut allows us to obtain from

the snack peanut, peanut oil, even peanut butter and
sweet derivatives, the main stages are described below and
operations that occur in the process, according to the characteristics of the
designed plant:

General treatment of peanuts

Transport
The peanut is transported from the field to the plant in flatbed trucks.
whose capacity is variable.

Reception and weighing

The process begins with the receipt of the raw material, using a scale.
installed at the plant access. The vehicle is a complete heavy one, and for
determinar el peso correspondiente a la fruta, se efectúa una diferencia de pesos.

Analysis of the raw material

Once the sampling technique has been used in order to determine the
Humidity percentage in the load, an analysis of it is carried out. The lot
selected is sent to the laboratory, while the contained volume remains
arranged in the screening area.

Cleaning

Screening of foreign materials

The operation consists of depositing the peanut load into a vibrating screen,
where foreign materials such as soil and herbs among others are separated from
the specific processing pods. The waste is deposited in the truck for
its eviction outside the plant.

Raw material storage

Clean peanut pods are transported by means of canvas belts.

with asbestos inside the warehouses, for subsequent classification according
to the percentage of humidity.
Bald

The peanut, still in its shell, is taken from the warehouses to the reception area and
from there, the peanut will be fed manually through sacks to the
hopper of the sealing machine. This machine is equipped with two screens, one below the
another, break the seed coat using a cylinder.

Pre-cleaning

Due to the fact that after the peeling stage the fruit still contains materials
strange, as they are pieces of shells, stones, and splinters among others, will be
it is necessary to carry out a new cleaning operation in which the grains pass to
the feeding hopper of the cleaning machine. The chips and the shells are
sucked by an air cylinder. The whole grains will be conducted by
through bags to a total cleaning area via two ducts.

Final cleaning

Given that in the previous stage almost 90% cleanliness has been achieved, it
will carry out a final inspection of the grains on the conveyor belts, of
such a way that these are placed, by discharge, in bags for their
classification.

Selection

Classification

At this stage, the completely clean grain is transported in bags to the hopper.
the sorting machine, where the product will be screened by size and collected
in the sacks.

Packaging
The peanuts in the sacks are transported to the processing companies.
peanut as a snack, butter or others, in bags of 50 to 70 kg of
capacity. In most cases, the previous process is the initial part for
give industrial added value.

Components of technical development

Machinery and equipment for adding industrial value

The team listed here is considered for a processing industry of

peanut located in the Costa Chica of Oaxaca, machinery is included for the
peanut peeling. The equipment and machines present here are of origin
national and foreign.

QUANTITY MACHINERY UNIT COST ($)

1 Magnetic separator 5,358.00 5,358.00
1 Peeler 145,775.00 145,775.00
1 Selector 250,000.00 250,000.00
1 Land 300,000.00 300,000.00
1 Infrastructure and warehouse 400,000.00 400,000.00
TOTAL 5,112,722.00 5,112,672.00
CIVIL WORKS

Description of the global process

Main stages

Collection shameless PREPARED

PACKAGING

Collection

Process by which a certain amount of raw material is gathered based on the

plant size, to be processed into different products.

Peeled

Peeling the fruit, to prepare products with various presentations.

Prepared
Conditioning of inputs to the fresh product for its processing in
other processes derived from it.

Packaging

Process that ends with the peanut benefit chain and that can be
make in cellophane bags, metallic bags or containers of different capacities
according to what the company or the buyers of the product are looking for.

Raw material conditioning

To produce 5,400 tons of processed peanuts, it is necessary to supply

the company of 7,714 tons, which are acquired in the following way:

MES 1 2 3 4 5 6
Concept Oct Nov Dic There is Feb Mar TOTAL

Produced volume (ton) 10,000 13,000 5,000 28,000

SPR
Behavior of the 17% 17% 67% 100%
collection M. P.

Behavior of the 17% 17% 17% 17% 17% 17% 100%

sales

Purchases or tickets (tons) 1,286.0 1,286.0 5,142 0 0 0 7,714

Use of Raw Material 1286 1286 1286 1286 1286 1286 7,714

Sales or shipments (tons)

Finished Product 900.0 900.0 900.0 900.0 900.0 900.0 5,400
Subproduct 385.7 385.7 385.7 385.7 385.7 385.7 2,314
Investment programs and operating costs.

Fixed investment budget

The fixed investment in this project is for the construction of an industry.

contemplated in the short term of the project and includes land costs,
furniture, buildings, office equipment, machinery, and transportation, amounting to a
total of $

Deferred investment budget

The deferred investment in this project is intended for the industry contemplated in the
short term of the project and includes the costs of telephone installations and
internet, image, studies, training, technical assistance and working capital.
adding $ this plus the fixed investment gives a total investment for the
project of $
Expenditure budget

In the expenses, the amounts for the first year are low because it will only peel.
peanut and starting from the second year it begins with snack peanut and
peanut butter. The amounts are given for an industry
the beneficiary that has been considered in the project is also included
annually the depreciation of machines and equipment.

WORKING CAPITAL
VARIABLE COSTS
Budget of expenses for year 2

WORKING CAPITAL
VARIABLE COSTS

UNIT PRICE
CONCEPT CANTIDAD ($) AMOUNT ($)
Cost of raw materials 7,714.0 35,098,700.0
input ton 0 4,550.00 0
Cost of industrialization 5,200.0 41,600,000.0
snack peanut ton 0 8,000.00 0
Industrialization cost 2,600,000.0
peanut butter ton 200 13,000.00 0
Other supplies (salt, chili, 15,120,000.0
oil, others) ton ..... 2,800.00 0
Wages (labor in the 302,400.0
industry newspaper 12 70 /day/journal 0
Total 94,721,100.00

GENERAL EXPENSES
Administration cost
(accountant, administrator, 168,000.0
secretary) monthly ............ .............. 0
Cost of stationery and materials 65,000.0
for office Batch 1 65,000.00 0
TOTAL 233,000.00
Budget of expenses for year 3

WORKING CAPITAL
VARIABLE COSTS

UNIT PRICE
CONCEPT CANTIDAD ($) IMPORT ($)
Cost of raw materials 7,714.0 35,098,700.0
(input) ton 0 4,550.00 0
Cost of industrialization 5,200.0 41,600,000.0
snack peanut tone 0 8,000.00 0
Industrialization cost 2,600,000.0
peanut butter ton 200 13,000.00 0
Other inputs (salt, chili, 15,120,000.0
oil, others) ton ..... 2,800.00 0
Salaries (labor in the 302,400.0
industry journal 12 70 per day/journal 0
Total 94,721,100.00

GENERAL EXPENSES
Administration cost
(accountant, administrator, 168,000.0
secretariat monthly ............ .............. 0
Cost of stationery and materials 65,000.0
for office Batch 1 65,000.00 0
TOTAL 233,000.00

Budget of expenses for year 4

WORKING CAPITAL
VARIABLE COSTS

UNIT PRICE
CONCEPT unit ($) $
Cost of raw materials 7,714.0 35,098,700.0
(input) ton 0 4,550.00 0
Industrialization cost 5,200.0 41,600,000.0
snack peanut ton 0 8,000.00 0
Cost of industrialization 2,600,000.0
peanut butter ton 200 13,000.00 0
Other supplies (salt, chili, 15,120,000.0
oil, others) ton ..... 2,800.00 0
Salaries (labor in the 302,400.0
industry) newspaper 12 70 /day/journal 0
Total 94,721,100.00

GENERAL EXPENSES
Administrative cost
(accountant, administrator, 168,000.0
secretariat) monthly ............ .............. 0
Cost of stationery and materials 65,000.0
for office Lot 1 65,000.00 0
TOTAL 233,000.00

Expenditure budget for year 5

WORKING CAPITAL
VARIABLE COSTS

CONCEPT UNIT AMOUNT ($)

 ($)
Cost of raw materials 7,714.0 35,098,700.0
input tone 0 4,550.00 0
Industrialization cost 5,200.0 41,600,000.0
snack peanut ton 0 8,000.00 0
Industrialization cost 2,600,000.0
peanut butter ton 200 13,000.00 0
Other supplies (salt, chili, 15,120,000.0
oil, others) ton ..... 2,800.00 0
Salaries (labor in the 302,400.0
industry newspaper 12 70 /day/journal 0
Total 94,721,100.00

GENERAL EXPENSES
Administration cost
(accountant, administrator, 168,000.0
secretary monthly ............ .............. 0
Cost of stationery and materials 65,000.0
for office Batch 1 65,000.00 0
TOTAL 233,000.00

Budget of expenses for year 6

WORKING CAPITAL
VARIABLE COSTS

UNIT PRICE
CONCEPT UNIT ($) AMOUNT ($)
Cost of raw materials 7,714.0 35,098,700.0
(input) ton 0 4,550.00 0
Cost of industrialization ton 5,200.0 8,000.00 41,600,000.0
snack peanut 0 0
Cost of industrialization 2,600,000.0
peanut butter ton 200 13,000.00 0
Other inputs (salt, chili, 15,120,000.0
oil, others) ton ..... 2,800.00 0
Salaries (labor in the 302,400.0
industry) newspaper 12 70 /day/journal 0
Total 94,721,100.00

GENERAL EXPENSES
Administration cost
(accountant, administrator, 168,000.0
secretary monthly ............ .............. 0
Cost of stationery and materials 65,000.0
for office Batch 1 65,000.00 0
TOTAL 233,000.00

Budget of expenditures for year 7

WORKING CAPITAL
VARIABLE COSTS

UNIT PRICE
CONCEPT UNIT ($) AMOUNT ($)
Cost of raw materials 7,714.0 35,098,700.0
input ton 0 4,550.00 0
Cost of industrialization 5,200.0 41,600,000.0
snack peanut ton 0 8,000.00 0
Industrialization cost 2,600,000.0
peanut butter ton 200 13,000.00 0
Other supplies (salt, chili, tone ..... 2,800.00 15,120,000.0
oil, others) 0
Salaries (labor in the 302,400.0
industry ) newspaper 12 70 /day/journal 0
Total 94,721,100.00

GENERAL EXPENSES
Administrative cost
(accountant, administrator, 168,000.0
secretariat monthly ............ .............. 0
Cost of stationery and materials 65,000.0
for office Batch 1 65,000.00 0
TOTAL 233,000.00

Budget of expenditures for year 8

WORKING CAPITAL
VARIABLE COSTS

UNIT PRICE
CONCEPT UNIT ($) AMOUNT ($)
Cost of raw materials 7,714.0 35,098,700.0
(input) ton 0 4,550.00 0
Industrialization cost 5,200.0 41,600,000.0
snack peanut ton 0 8,000.00 0
Cost of industrialization 2,600,000.0
peanut butter ton 200 13,000.00 0
Other supplies (salt, chili, 15,120,000.0
oil, others) ton ..... 2,800.00 0
Salaries (labor in the 302,400.0
industry) newspaper 12 70 /day/journal 0
Total 94,721,100.00
OVERHEAD EXPENSES
Administration cost
(accountant, administrator, 168,000.0
secretary monthly ............ .............. 0
Cost of stationery and material 65,000.0
for office Batch 1 65,000.00 0
TOTAL 233,000.00

Budget of expenditures for year 9

WORKING CAPITAL
VARIABLE COSTS

UNIT PRICE
CONCEPT UNIT ($) AMOUNT ($)
Cost of raw materials 7,714.0 35,098,700.0
input ton 0 4,550.00 0
Cost of industrialization 5,200.0 41,600,000.0
snack peanut ton 0 8,000.00 0
Cost of industrialization 2,600,000.0
peanut butter ton 200 13,000.00 0
Other inputs (salt, chili, 15,120,000.0
oil, others) ton ..... 2,800.00 0
Wages (labor in the 302,400.0
industry) newspaper 12 70 per day/journal 0
Total 94,721,100.00
GENERAL EXPENSES
Administration cost
(accountant, administrator, 168,000.0
secretariat) monthly ............ .............. 0
Cost of stationery and materials 65,000.0
for office Batch 1 65,000.00 0
TOTAL: 233,000.00

Budget of expenses for year 10

WORKING CAPITAL
VARIABLE COSTS

UNIT PRICE
CONCEPT UNIT ($) $
Cost of raw materials 7,714.0 35,098,700.0
input ton 0 4,550.00 0
Industrialization cost 5,200.0 41,600,000.0
snack peanut ton 0 8,000.00 0
Cost of industrialization 2,600,000.0
peanut butter ton 200 13,000.00 0
Other inputs (salt, chili, 15,120,000.0
oil, others) ton ..... 2,800.00 0
Salaries (labor in the 302,400.0
industry newspaper 12 70 /day/journal 0
Total 94,721,100.00
GENERAL EXPENSES
Administrative cost
(contador, administrador, 168,000.0
secretariat monthly ............ .............. 0
Cost of stationery and materials 65,000.0
for office Batch 1 65,000.00 0
TOTAL 233,000.00

Sales and operating income.

Income budget

The revenues are lower than the expenditures in the first year due to the effects of the

initial investment, from the second year there are profits. Additionally, there is a
benefit more with the peanut shell that will be sold for $100.00
ton and that its use is for the feeding of livestock.

Year 1 income budget

PRODUCT VOLUME (TON)

Peeled peanut 5,400 9,000 48,600,000
Shell 2,314 100 231,400
Total 48,831,400

Year 2 income budget

 PRODUCT VOLUME (TON)
Snack peanuts (100g)
$3.0/bag
100,000 bags/ton 5,200 30,000 156,000,000
Peanut butter (340g)
$10.0/bottle
3000 bottles/ton
$ 29.4/kg 200 29,400 5,880,000
Peel 2,314 100 231,400
Total 162,111,400

Income budget year 3

PRODUCT VOLUME (TON)

Snack peanuts (100g)
$3.0/bag
100000 bags/ton 5,200 30,000 156,000,000
Peanut butter (340g)
$10.0/bottle
3000 bottles/ton
$29.4/kg 200 29,400 5,880,000
Shell 2,314 100 231,400
Total 162,111,400

Income budget year 4

PRODUCT VOLUME (TON)

Snack peanuts (100g)
$3.0/bag
100,000 bags/ton 6,100 30,000 183,000,000
Peanut butter (340g)
$10.0/bottle
3000 bottles/ton
$29.4/kg 200 29,400 5,880,000
Shell 2,700 100 270,000
Total 189,150,000

Revenue budget year 5

 PRODUCT VOLUME (TON)
Snack peanuts (100g)
$3.0/bag
100,000 bags/ton 6,100 30,000 183,000,000
Peanut butter (340g)
$10.0/bottle
3000 bottles/ton
$29.4/kg 200 29,400 5,880,000
Shell 2,700 100 270,000
Total 189,150,000

Income budget year 6

PRODUCT VOLUME (TON)

Snack peanuts (100g) 6,800 30,000 204,000,000
$3.0/bag
100,000 bags/ton
Peanut butter (340g) 200 29,400 5,880,000
$10.0/bottle
3000 bottles/ton
$29.4/kg
Shell 3,000 100 300,000
Total 210,180,000

Revenue budget year 7

PRODUCT VOLUME (TON)

Snack peanuts (100g) 6,800 30,000 204,000,000
$3.0/bag
100,000 bags/ton
Peanut butter (340g) 200 29,400 5,880,000
$10.00/bottle
3000 bottles/ton
$29.4/kg
Shell 3,000 100 300,000
Total 210,180,000
Revenue budget year 8

PRODUCT VOLUME (TON)

Snack peanuts (100g) 10,300 30,000 309,000,000
$ 3.0/bag
100,000 bags/ton
Peanut butter (340g) 200 29,400 5,880,000
$ 10.0/bottle
3000 bottles/ton
$29.4/kg
Peel 4,500 100 450,000
Total 315,330,000

Revenue budget year 9

PRODUCT VOLUME (TON)

Snack peanuts (100g) 13,800 30,000 414,000,000
$3.0/bag
100000 bags/ton
Peanut butter (340g) 200 29,400 5,880,000
$10.0/bottle
3000 bottles/ton
$29.4/kg
Shell 6,000 100 600,000
Total 420,480,000

Revenue budget year 10

PRODUCT VOLUME (TON)

Snack peanut (100g) 13,800 30,000 414,000,000
$3.0/bag
100000 bags/ton
Peanut butter (340g) 200 29,400 5,880,000
$10.0/bottle
3000 bottles/ton
$ 29.4/kg
Shell 6,000 100 600,000
Total 420,480,000
ANNEXES

Machinery and equipment

Process machinery

Combined peanut harvester

The harvester includes peanut conspiracy cutters, they are of origin

foreign and we put different models so that the best one can be selected
convenience for the members of the integrator.

Model No. dollars

Americans
1 7500XLT Excellent $8,900.00 No required none
11000957 visible repair.
1 6000 3146 very good $4,900.00 They need the systems for
repair.
1 7500 11000350 5,900.00 Drill of title of
inclination very good;
some directions needs
of the straw wire.

1 7500 11000343 $5,400.00 Needs good the

wire repair of
back straw.
Machinery for magnetic separation

For cleaning against metal particles (nails, screws, wires, etc.) of the
A magnetic plate of the ERIEZ brand, model MAXI POWER, is needed for peanut.
14" wide by 7" long by 1-11/16" thick with frame and hinge
with ceramic magnetic elements, provider PROCESS EQUIPMENT, S.
A DE C. V.

$ 564.00 USD + VAT

Another cleaning equipment could be a magnetic grid by ERIEZ model 'P'.

14” wide by 14” long with ceramic magnetic elements,
encapsulated in 7 tubes of 1" diameter in stainless steel 304 spaced
between them at 1" includes deflectors at the top of the grid to force the flow
from material falling on the magnetic tubes, supplier EQUIPMENT OF
PROCESO, S. A DE C. V.

Unit price:........................................................................... $551.00 USD + VAT

MACHINERY QUOTED BY THE COMPANY ABAMEX ENGINEERING, S.A.

C. V.

The machines and equipment are for roasting peanuts under the brand Proctory the other
It is for the peanut butter mill brand Urschel.

COMITROL URSCHEL
Model 1700

CUT REQUIREMENTS:
Product: Peanut Butter
Cut size: It will have to be defined
Estimated capacity: Up to 4,400 lbs/hour
Laboratory tests: URSCHEL LABORATORIES makes available to everyone
our clients, their testing laboratory in Valparaíso, Indiana, where
it can simulate any production condition and cutting size and shape with
your teams, to recommend the equipment that best suits your requirements
particulars.

EQUIPMENT SPECIFICATIONS:

Ready to be installed and work, properly equipped to meet the

production requirements indicated:

The machine includes:

Cutting chamber.
Stainless steel pedestal.
Oil lubrication by waiting for the drive shaft of the impeller.
Cutting chamber discharge cover.
Pulleys and belt of the impeller operating at a speed of 9391 RPM.
30 H.P motor, mounted vertically, fully enclosed and cooled by
airs for operating in 3-phase current, 220/440 volts (specify), 60 Hz.
Motor starter.
Lot of small tools.
•

PARTS WITH THE MACHINE:

62880 Product feeding assembly.
66876 Micro-cutting head 212084-1º.
66790 Seal impeller type 'VERICUT'.
62855 Drive Shaft Assembly (Feed Spindle Assembly).
63614 Product deflector.

PRICE OF THE DESCRIBED EQUIPMENT: $460,000.00 M. N.

OPTIONAL:

62743 Discharge hopper (8" outlet). $ 5,000.00

Hopper mounting assembly

TERMS AND CONDITIONS OF SALE:

PRICES: In local currency, free on board Abamex plant in Mexico City.

the 15% VAT would need to be added.

DELIVERY/SHIPPING TIME: 6 to 8 weeks after clarification

technical and commercial aspects of the case. (in some situations it is possible
obtain a better delivery promise.

PAYMENT TERMS: 35% deposit with the order, balance one week in advance
from the delivery in silver Abamex.

VALIDITY: 30 days.

SUPERVISION OF THE INSTALLATION/TECHNICAL SERVICES BY THE

MANUFACTURER: The equipment is shipped already tested and ready to be
installed by others, simply placing them and connecting them to the supplies
electrical and/or pneumatic required. If you require it, the manufacturer
respective will be able to provide a service technician to assist and supervise the
installation mechanics of the buyer, as well as provide training on the
management, operation and maintenance of them in their plant, applying the
current rate schedule as of the date of that request. Charges will also be applied for the
hours of the technician's travel time, as well as the travel expenses incurred.

For this purpose, the buyer must have the equipment placed in the location
suitable for work in your plant, all services connected, and sufficient
product provision for the respective tests, before the arrival of the technician from
service.

ASSISTANCE IN THE START-UP BY A TECHNICIAN FROM ABAMEX: In a

very large number of cases, the presence of a service technician
provided by Abamex Engineering, S. A. de C. V. From Mexico, (to a
fraction of the cost that it would represent to bring an American technician from
manufacturer), it would be sufficient to assist the installation mechanics of the
buyer, review the content of the operation and maintenance manuals and
clarify doubts about the respective operating teams, applying the rate
Abamex in effect: ($400.00 M.N. per hour or fraction within the normal working day)
for 8 hours, plus applicable expenses and travel allowances).

This assistance comes from an Abamex service technician, however, it does not
exempt the client from their obligation to study the provided manuals beforehand
of operation and maintenance of the equipment, accepting that the responsibility
primary in the installation and commissioning process of the acquired equipment
it falls directly on the end user.

In any case, the technical support provided by a service engineer

Abamex will be understood as an act of shared responsibility.
Bank transfer to: ABAMEX INGENIERÍA, S. A. DE C. V. Bacomer Branch.
Account number in pesos: 1763008.

The quotes will be confirmed after reviewing samples of your product and
have conducted tests in the Urschel laboratory.

WOLVERINE
PROCTOR
Model 5000 'SCF DESIGN'

Wolverine Proctor & Schwartz Inc.

EQUIPMENT DESCRIPTION

One (1) Wolverine Superintendent Model 5000 SCF Design

Roaster/Cooler consisting of two (2) Roasting Zones
Independents and the Extensible Plan. Includes the Temperature
Controlled, 304 Clean Steel Carrier, Gas Heating Equipment,
and the Controlled Temperature, and NEMA 12 Power Control Cabinet with
Engine start judges.

APPROXIMATE DIMENSIONS

Global longitude 34'–10 ¼” (10,624mm)

Width of the shelter 12'–10½” (3,924mm)
Height of shelter 7 '–11 1/8”(2,416mm)
Height above the download enthusiast 12–3" (3,734mm)
Preliminary drawing CP28088-1C

U.S. $255,000.00
Includes Wolverine Superintendent Supervisor of the Facility for a maximum
six (6) days working ten (10) hours a day and a Superintendent of
Wolverine Salida - an engineer for a maximum of four (4) days and the rates
associated areas for the Wolverine Superintendent personal. The Buyer is
a favor responsible for the entire local trip, hotel, and living expenses. Buyer is
will require providing the necessary tools to 5 to 6 workers during the
installation process. The Superintendent of Wolverine Salida - an engineer
will be fixed once the Buyer has completed the electrical installation and the
gas pipe

If these services are required beyond the distributed period, the Buyer will do
invoices for the outlined proportions in this proposal.

PAYMENT TERMS

Forty percent (40%) payment in cash with the order.

Balance: Irrevocable credit letter inventory payable as follows.

Forty percent (40%) of them agreed at the time of shipment.

payable on the invoice receipt.

Twenty percent (20%) sometimes of shipment payable against the sending of

documents.

All terms are subject to credit approval.

OPTIONAL TEAM
ADD for 304 Clean Steel Structure, sheet metal Interior, Interior and
Outdoor Boards, Feed and Delivery End Extensions, Enthusiasts
Circulants, Enthusiast Trees, Download Enthusiast, and Ductwork.

U.S. $42,000.00

ADD for 304 Clean Steel the Conveyor Chain

U.S. $10,800.00

ADD for the Wet Brush Carrier Cleaner with Spray Nozzles
Water, Brush, and Squeegee (pump not included).

PRICE..........................................U.S. $8,890.00

NOTE: The previous price is the net F.O.B. price from our factory in the U.S.A.

PAYMENT TERMS

Forty percent (40%) payment in cash with the order.

Equilibrium: Irrevocable Inventory Letter of Credit payable as follows:

Forty percent (40%) of those agreed at the time of shipment

payable on the invoice receipt.

Twenty percent (20%) sometimes payable against the shipment of

documents.

All terms are subject to credit approval.

EQUIPMENT FOR PACKAGING ROASTED PEANUTS AND PEANUT BUTTER
PEANUT.
FOR THE EMPRESASIMERI, S. A. DE C. V.

1.-Basic grain packaging equipment can be used for peanuts,

when it is desired to transport it within the plant or to another plant, in bags of
30 kg youth. This is a simple device.

BAZOOKA

Bazooka type tubular belt conveyor model VTT-30/6, measuring 9.50 m.

long and 6" in diameter, special for loading packaging hopper and/or receiving
bulk product, manufactured from carbon steel, equipped with a 2 H.P. motor.
mounted on a chassis with car tires and swivel wheels for easy handling,
PTR chassis painted with electrostatic epoxy paint. Height adjustable by
middle of a mechanical cat.
Available in 220/440 volts. (optional), with a capacity of 20 tons/h.

Price............................................................................................$ 24,185.00 M. N.

Hopper

Hopper trailer of a model VTM-US for a packing machine. Reinforced,

specifically for loading with a backhoe or belt conveyor. The hopper is manufactured
in carbon steel, the structure and walkways in PTR. It can be towed, with
pickup truck or truck, inspection ladder, electrical junction box for
the auxiliary equipment, telescopic front leg with swivel wheel for easy
management within warehouses.

$32,377.00 M.N.
PACKAGER

Manual Mechanical Packing Machine, model VEMM-60 made of carbon steel,

especially for packaging non-corrosive products such as seeds, grains,
forages or pellets, with a weighing capacity of 60 kgs. max. and packages up to 8
bags per minute, with a precision of (+/-) 200 g.

Price........................................................$ 16,615.00 M. N.

2.-Packaging equipment for snack peanuts in cellophane bags of 100 to

150 grams.

BAZOOKA

Bazooka type tubular belt conveyor model VTT-30/6, 9.50 meters long.
long and 6" in diameter, specially designed to load packaging hoppers and/or receive

bulk product, made of carbon steel, equipped with a 2 H.P. motor.

mounted on a chassis with car tires and swivel wheels for easy handling,
PTR chassis painted with electrostatic epoxy paint. Adjustable height by
through a mechanical cat.
Available in 220/440 volts. (optional), with a capacity of 20 tons/h.

$24,185.00 M.N.

Vertical film packaging machine model 30 T and/or 20 T. For heat-sealable film.

Cellophane. Maximum bag length: 30 T (30 cm) 20 T (20 cm); Maximum width of
bag: 30 T (15 cm) 20 T (15 cm). Shape, fill and seal the bag. Capacity of 34
bags per minute.

$175,000.00 MXN
4.- Equipment for packaging peanut butter in 250 glass jars
340 grams.

BAZOOKA

Bazooka type tubular belt conveyor model VTT-30/6, 9.50 m

6 feet long and 6 inches in diameter, specially designed for loading packaging hoppers and/or receiving

bulk product, made of carbon steel, equipped with a 2 H.P. motor.

mounted on a chassis with car tires and swivel wheels for easy handling,
PTR chassis painted with electrostatic epoxy paint. Adjustable height by
through a mechanical cat.
Available in 220/440 volts. (optional), with a capacity of 20 tons/hour.

Price............................................................................................$ 24,185.00 M. N.

Volumetric dispenser for filling bottles. With telescopic cups.

interchangeable for different capacities. Capacity of up to 30 jars per
minute.

Price .................................................................................. $ 50,000.00 MXN

OTHER MACHINES

1. Mixing machine models V40 with a power of 1.5 to 2.5 H.P. has a
cost of $86,675.00

2. Peanut peeling machine model V175, costing $147,775.00

3. Peanut selector, costing $250,000.00

4. Shell-free peanut ovens with a capacity of 250 kg for $33,350.00

Japanese style peanut oven for $31,050.00