Project Feasibility Study
A feasibility study may therefore include an assessment of the following key components:
Natural resources, including topography, soils, water, climate and land suitability. The information is used to model expected crop productivity and the shape, size and physical characteristics of the project.
Agronomy, including suitable varieties, pest and disease issues, seed cane planning and propagation, fertilizer and herbicide requirements and research and development facilities.
Agricultural production, including an agricultural development plan and identification of sustainable production systems appropriate to the project.
Field mechanization, including capital and operating cost estimates for appropriate land development, crop husbandry, harvesting and haulage fleets.
Communities, including development models for local out-growers, community uplift projects and appropriate donor funding strategies.
Environment, including compliance with lenders’ and governmental environmental standards and environment management plans.
Markets, including product mix, pricing, marketing strategies and logistics.
Factory, including product and co-product definition, process flow design, mass balances, factory specification, power management, packaging, storage and effluent and waste treatment.
Human resources, including manpower planning and costs, employment numbers, organisational charts and training.
Infrastructure, including roads, social infrastructure and employee housing and facilities.
Financial analysis, including funding structures, capital and operating costs, financial modelling, sensitivity analysis and derivation of key economic indicators such as Internal Rate of Return (IRR).
The main outputs of the study are typically a ‘Development Plan’, which provides a blue print for the implementation of the project, and a ‘Bankable Document’ that can be used in the process of raising debt and/or equity for the project.
JRA Agricultural Products Trading can tailor and conduct the feasibility study to the particular requirements of each client.