2. Business Details

A. First Year [2016]

The initial activities will be in designing a layout for the various activities on the farm and obtaining resources. This will include aspects relating to location and size of the processing operations, onsite or off site and on logistics.

The essential resources will be staff, machinery and plant material with a business manager already appointed and a farm manager to be appointed immediately. The area proposed to be established in Year 1 if 2016-17, will be 1,000 ha of cassava. The utilization of product will be between dried chips and starch or flour. This will be determined by the progress made in determining the processing equipment and assembling it on site.

B. Second & Third Year [2017-2018]

The second and third years of the project will result in expansion in other area and the range of products from cassava by combining with other landholders. The area will increase from to 500 to 2,500 to 5,000 ha in successive years. This will allow the farm to multiply up its own requirements of plant cuttings for replanting each year. The product range will increase as the cassava production increases. It may also at that time decide to start to expand into flour and ethanol production. At the same time the by products will increase and the animal and fish production will increase proportionally.

Initially the focus will be on the use of the production from the farm will be for animal feeds on the farm and developing the local use and the Li Bu Group contracts. As the volume of production increases, there is the potential to export to many countries a range of products. This will include stock foods, starch and ethanol to the EU countries such as Hungary and other Asian countries such as Australia and India. This will strengthen the Myanmar economy both through exports and internal substitution for imports.

C. Cassava Products/Services

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Products/Services Description
Dried Chip [in Year 1-2] Simple chipping and drying to 12-13% moisture contents
High Quality Cassava Flour & Animal Feeds [in Year 2-3] High Quality Cassava flour for the Food and Beverages market and pellitised animal feed
High Quality Cassava Flour/Starch and Animal Feeds [in Year3-4] High Quality Cassava flour / Starch for the Food and Beverages market and pellitised animal feed
Potential Bio Ethanol Bio Ethanol productions
Potential Industrial supply of Glucose Glucose syrup is utilized in bulk in industries such as bakery, confectionery and dairy as a sweetener, thickener and humectants (moisture retention).

 

D. By-Products

Animal Feeds

Cassava can be used directly as an animal feed supplement and the byproducts of starch and ethanol production can also be used in animal feeds. In the case of fish, the byproducts of fish can be added to cassava byproducts to produce a balanced diet. Other crops can be grown in the cassava rotation specifically for animal feeds. In addition, special areas on the farm could be used for additional animal feeds. The production of the additional meat products will be supplied the local Yangon market.


Fish Farming

The farm with its warm climate and local fish feeds will be able to grow the fish faster. The fish will be sold into the local market but the potential for export will be considered.


Other Livestock

The prospect of producing animal feedstocks as byproducts on site, means a range of products could be produced for the Yangon general or specialised markets. The Yangon market is already big but will also require specialised products for the hotel, health and tourists markets. This includes eggs and poultry meats, pork or bacon, milk or meat from cows. Cassava flour could also be produced for the local bakery and bread trade. Where possible, the products will be organically produced and the gluten free nature of cassava gives it a health marketing advantage.

E. Market Position

High quality cassava flour and starch is increasingly becoming an important products as the flour is gluten free which demands a premium pricing.

Unique Selling

Cassava has been chosen as it is a very high yielding starch plant if grown under the right conditions and processed correctly. It's products are valued for their versatility and therefore the most valuable products can be chosen, in this case initially starch. It is in international demand.


Anticipated Demand

As the world is becoming more health conscious the demand for gluten free flour has been on the rise. Spirit and medical grade ethanol and the demand for a clean green power generation and bio ethanol use are also on the rise.


Pricing Strategy

All Cassava product is an international traded commodity where the international price is based on the Thai Tapioca Starch/Flour Bench mark.


Value to Customer

The current sales agreement is for both Beverages and Ethanol.


Growth Potential

Local market will no doubt increase, but other markets will be explored such as the European flour and starch market, as well as livestock feed for the EU nations the Chairman been the honory Consul to Hungary is in a unique positions to explore that possibilities, but current demand from China is growing rapidly especially for bio ethanol productions, Other western country such as Australia gluten free flour demands is on the rise which commend a premium price as market is increasingly seeking for a more healthy alternative diet.

F. Operation

Sustainable Production Process

Cassava is a perishable crop if not process immediately, so Initial year of operations we envisage to use a Dutch mobile processing plant as that’s the most suitable because most of the farms in Myanmar are small and no infrastructres and power supply and water quality is an issue. As the founder of this technology have been in the cassava industry for more than 40 years and developed a highly sophisticated mobile processing plant that produces a very high quality cassava flour/starch, and because it’s mobile and being able to process on site of the farm all the effluent discharges are used as fertilisers back on the land, and hence reduces the need for Chemical fertilisers.


Suppliers

Finance, Fertilisers, and Cuttings


Plant & Equipment

All farming equipment will be owned by the farmers.

Additional equipment such as tractors, truck and irrigations equipment maybe required to services the rapid expansions of the valuable export business. Farmers are unlikely to have the available cash to fund the purchase of these items TTMA will be negotiating with financial partners to ensure that funds are available to meet these demands of the expanded national cassava industry.

Critical to the success of the proposed cassava industry is an effective communications systems involving field officers and mobile telephony linking TTMA with the farmers, financiers, suppliers and exporters.A cloud based accounting system, integrated with mobile receipts & payment systems will be implemented.

G. Inventory

Primary Inventory

Cassava Cuttings


Information Technology

Tint Tint Agriculture Website, Accounting Software, Other Management & Communication Software

The company will maximise the use of mobile channels to exchange informations.

H. Trading

Trading Hours

Standard trading hours.


Payment

All international sales are by Letter of Credit. All internal (local) payments to and from farmers will be in Kyats and through e-wallet.


Credit Policy

NO credit will be granted all transactions are COD or LC for export.


Warranties & Refunds

All goods are inpect before shipment to ensure no temporing during transit.


Quality Control

Quality starts with the selection of the varieties. High starch varieties will be chosen, of proven quality. During production there will be close control of both fertilisation and fertilisers to ensure high quality is obtained. Harvesting and post harvest management is critical to maintain product quality.

During processing there will be programs in place to both ensure and audit product quality. The contract has quality requirements to be met and these will be monitored continually.