Organic Farming Business Investment Opportunity in San José, Costa Rica

Plan to start a vanilla extract unit where we plant, grow and harvest green vanilla.
This Business is on a Premium Plan
Established From
Employees
Legal Entity
Reported Sales
Run Rate Sales
Nil
EBITDA Margin
Operating at break even
Industries
Organic Farming + 1 more
Local Time
3:43 AM Guatemala City
Listed By
Business Owner / Director
Status
Active
Overall Rating
Seeking Investment
USD 35 thousand for 15.0% stake (Native Currency: USD 35,000)
Reason: The investment would be used to acquire a bank guarantee which would help us obtain funds to be used... View More
Interested to connect with advisors
Name, Phone, Email
Not disclosed
Business Name
Not disclosed
User Verification
Documents
Business Overview

This Vanilla project is ready for development and we are looking for some seed investing to make the start up and we will give to our investor the option of a portion of shares in the company. The natural and organic vanilla extract (which will be our final product) is highly sought after in the following industries:

1. Food Industry.

2. Liquor and Refresher Industry.

3. Cosmetics and Perfume Industry.

4. Pharmaceutical Industry.

Vanilla is the second most expensive spice with the highest demand worldwide, surpassed in commercial prices only by saffron. The prices of vanilla fluctuate according to the export volume of the producers, however there is a trend of price stability in the last two years. Germany is the fourth largest country worldwide in terms of import volumes of vanilla in 2016.

The idea of this business arises to address the deficit of natural vanilla production that exists in the world. According to statistics more than 90% of the vanilla consumed worldwide is synthetic due to the deficit in production mentioned, since the production of "natural" vanilla is scarce and very expensive, making it the second most expensive species behind saffron. This is due, in part, to the fact that of the 110 species of the Vanilla genus, only 3 or 4 are exploited commercially and in certain geographical areas, due to the needs of light, water, climate, the high care required by the plant and the low yield per crop (we will industrialize all the processes to get high performance from 400 kilos per hectare as the artisans crop to 2,800 kilos per hectare with 100% auto controlled greenhouses as we are planning).

Mission Statement:

The reason why our company will be born is because geographically the point where the company will be located meets the technical and agronomical requirements that the cultivation of vanilla requires and mainly because it is located in the humid tropic zone of Costa Rica which will help produce a high quality end product.

But, the big reason is to contribute adding support to the worldwide offer taking advantage of the spectacular market niche due to the production deficit of natural vanilla extract in all around the world.

The basic functions of the company will be to utlitise the interaction of climate, location, community and the opportunity that is in Costa Rica. There is great variety and technical knowledge available to carry out a company with a friendly approach to the environment and the creation of new sources of work in the Caribbean zone in a country that needs jobs.

Keys to Success.

1. Creation of new jobs.

2. The final product will be 100% natural and organic under strictly international quality standards.

3. The company will be located in the humid tropical zone of the country.

4. The company will be innovative and from its foundation will be focused on complying with all international quality standards for organic products.

5. From its creation, the company will be directed by the board to ensure compliance with all possible quality standards.

6. Take advantage of the great natural and organic vanilla extract deficit that exists in the whole world, which makes it a very favorable market niche for investment.

The project's financial study gives:

- Rate 6%

- NPV= $7,539,367.24.

- IRR= 9.5%

At the end of the 3rd year our minimum budgeted production will be 405,000 ml of CO2 Super Critical Organic Vanilla Extract 100% natural (26% Vanillin) per year at a sale price of US $ 45 per ml (CIF Basis) and a production cost of US$5.00 per ml, with this numbers the total investment recovery will be take place at the end of the 6th year.

The maximum production per year could be 600,000 ml of CO2 Super Critical Organic Vanilla Extract 100% natural (26% Vanillin).

If you have some interest please tell me to send you the executive summary and some other docs for your review.

Products & Services Overview

Dried vanilla beans and oil vanilla extract.

Facilities Overview
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Disclaimer: SMERGERS is a regulated marketplace for connecting business sell sides with investors, buyers, lenders and advisors. Neither SMERGERS represents nor guarantees that the information mentioned above is complete or correct.
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