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Sudafric Sunflower Project Proposal Draft8 2025

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Sudafric Sunflower Project Proposal Draft8 2025

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PROJECT PROPOSAL

RUVUMA LARGE-SCALE SUNFLOWER


FARMING PROJECT

CONTACT PERSON
| Name: Anthony M. Wanjohi
| Position: Resource Mobilization Lead
| Phone: +254 725 788 400
| Email: kenprokenya@gmail.com

February, 2025
EXECUTIVE SUMMARY

The Ruvuma Large-Scale Sunflower Project in Tanzania, spearheaded by Sudafric


Agricultural Ltd, is a transformative agribusiness initiative aimed at boosting
sunflower production and processing to meet the rising demand for edible oils.
Covering 5,000 acres, the project seeks to establish a sustainable and integrated
value chain, leveraging a hybrid outgrower model that engages 1,000
smallholder farmers and 300–500 external medium and large-scale farmers. This
model mitigates production risks by ensuring a diversified and steady supply of
raw materials while fostering economic inclusion.

Key project activities include large-scale sunflower cultivation, farmer capacity-


building, seed and fertilizer distribution, oil extraction, and value addition
through refining and packaging. The hybrid outgrower model strengthens
resilience against market and climate-related uncertainties, allowing both
smallholder and commercial farmers to contribute to a stable supply chain.

To achieve its objectives, the project seeks to raise USD 10,714,000 through a a
joined venture framework, with equity-based financing. The funds will be
allocated to land preparation, processing infrastructure (medium plant with a
capacity of 10 Mt/Day), farmer support programs, and market expansion
strategies, ensuring long-term sustainability and profitability.

Upon full implementation, the project is expected to generate significant socio-


economic benefits, including improved farmer incomes, job creation, enhanced
food security, and reduced reliance on imported edible oils. Additionally, the
project promotes climate-smart agriculture, supporting environmental
sustainability. By establishing a robust sunflower value chain, the Ruvuma Large-
Scale Sunflower Project is poised to drive agricultural transformation and rural
development in Tanzania

I
TABLE OF CONTENTS

EXECUTIVE SUMMARY .......................................................................................................................................I

1.0 COMPANY DESCRIPTION...........................................................................................................................1


1.1 Company Overview ........................................................................................................................................................1
1.2 Sudafric’s Products and Services .............................................................................................................................1
1.3 Sudafric’s Major Clients ................................................................................................................................................2
1.4 Sudafric’s Suppliers........................................................................................................................................................2
1.5 Sudafric’s Key Competitors ........................................................................................................................................3
1.6 Management and Technical Team ...........................................................................................................................5

2.0 BUSINESS MODEL ........................................................................................................................................6


2.1 Hybrid Business Model.................................................................................................................................................6
2.2 Key Components of the Model ..................................................................................................................................6
2.3 Roles and Responsibilities of Key Stakeholders ...............................................................................................7

3.0 MARKET ANALYSIS .....................................................................................................................................8


3.1 Top World Exporters of Crude Sunflower, Seed or Sufflower Oil (2019-2023) .................................8
3.2 Sunflower Market in Africa.........................................................................................................................................9
3.3 Tanzania Sunflower Export Market ..................................................................................................................... 10
3.4 Project Risks ................................................................................................................................................................... 12
3.5 Project Impact .............................................................................................................................................................. 13

4.0 PROJECT FINANCIAL AND INVESTMENT PLAN .............................................................................. 14


4.1 Investment Models ...................................................................................................................................................... 14
4.2 Investment Plan ............................................................................................................................................................ 15
4.3 Investment Cost Estimate ........................................................................................................................................ 16

5.0 PROFITABILITY FORECASTS ................................................................................................................ 16


5.1 Operational Costs ......................................................................................................................................................... 16
5.2 Projected Revenues..................................................................................................................................................... 17
5.3 Profitability Analysis .................................................................................................................................................. 18
5.4 Cash Flow Projection .................................................................................................................................................. 18
5.5 Break-Even Analysis ................................................................................................................................................... 19
5.6 Conclusion and Recommendations ...................................................................................................................... 19

II
1.0 COMPANY DESCRIPTION

1.1 Company Overview

Sudafric Agriculture Ltd, established in 2019, is a subsidiary of Sudafric Group Ltd, a prominent
East African business entity. The company is headquartered in Dar es Salaam, Tanzania but has
key operations in Kenya and Uganda, specializing in agribusiness, leveraging the region's rich
agricultural resources to supply high-quality products.

1.2 Sudafric’s Products and Services

Products: Sudafric Agriculture Ltd offers a diverse range of products including Grade A Hass
avocados, organic garlic, onions, sunflower oil, soybeans, fresh vegetables

Sudafric’s Products

Category Description
Offers Grade A Hass avocados, known for their quality and taste, catering to both
Hass Avocado
local and international markets.
Provides organically grown garlic and onions, ensuring chemical-free and healthful
Garlic and Onions
produce.
Cultivates and supplies soya beans, essential for various food products and animal
Soya Beans
feeds.
Offers sesame seeds, commonly known as simsim, used in culinary applications
Sesame (Simsim)
and oil extraction.
Assorted Fresh Provides a variety of fresh vegetables, ensuring a steady supply to meet diverse
Vegetables consumer needs.
Supplies premium hardwood timber suitable for various construction and
Hardwood Timber
manufacturing needs.
Supplies softwood timber, suitable for various applications in construction and
Softwood Timbers
manufacturing.

Services: Sudafric Agriculture Ltd offers a wide range of services including agrochemical supply,
agricultural production, livestock and meat processing, export services, and sustainable farming
practices.

Sudafric’s Services
Service Description
Providing high-quality agrochemical products such as pesticides, herbicides,
Agrochemical Supply
fungicides, and fertilizers to improve crop yields and protect crops.
Agricultural Cultivation of various crops, including Grade A Hass avocados, garlic, onions,
Production sunflower oil, soybeans, and fresh vegetables.
Livestock and Meat Involvement in the production and export of premium frozen meats, ensuring
Processing high-quality standards in processing and packaging.
Exporting agricultural products such as crops and meats to international markets,
Export Services
maintaining high-quality standards to meet global demand.
Sustainability Promoting sustainable farming practices with minimal environmental impact,
Practices ensuring long-term growth and environmental stewardship.

1
1.3 Sudafric’s Major Clients

The major clients of Sudafric Agriculture Ltd represent a diverse range of local and international
partners specializing in agricultural products and services.

Sudafric’s Major Clients

No. Client Description Commodity Website

Distributes
agrochemicals in Kenya, Agrochemical
1 Artal www.artal.net
Uganda, Tanzania, and products
Rwanda
Distributor of fresh
2 Twiga Fresh produce www.twigafoods.com
produce
Global agribusiness and Agricultural
3 Olam Agri www.olamgroup.com
supply chain operator products
Distribution of fertilizer
Tanzania
4 under the government Fertilizer www.kilimo.go.tz
(Government)
subsidy program
Supplier of timber
Northern Ireland
5 sourced from Tanzania Timber www.niccommodities.com
Commodities LLC
and DRC Congo
Northern Ireland Buyer of red onions
6 Red onions www.niccommodities.com
Commodities LLC from Tanzania
Nairobi-based buyer of
7 Saumu Centre Ltd Garlic www.saumu.co.ke
high-quality garlic

1.4 Sudafric’s Suppliers

The major suppliers of Sudafric Agriculture Ltd are trusted partners providing high-quality
inputs, machinery, and resources to support sustainable agricultural operations.

Sudafric’s Suppliers

No. Company Name Contact Information


Address: 83, Jodhpur Park, Ground Floor, Kolkata - 700068, West Bengal, India
Phone: +91 33 3544 1765 / 66 / 67
Organic Agro
1 Mobile: +91 97 4872 3450
India
Email: surojit.me@gmail.com
Website: organicagroindia.com
Address: Plot No. 2005, Block '1' Kurasini, Dar es Salaam, United Republic of
Tanzania
Mobile: +255 746 909093
2 Yara Tanzania Tel: +255 22 2112966
Toll-Free: +255 800750188
Email: customerservice.tz@yara.com
Website: yara.co.tz
Address: Ngaramtoni ya Chini, First Floor, Sable Square, P.O. Box 12281, Arusha,
Tanzania
3 Seed Co Tanzania Office: +255 739 210 909
Email: Sales@seedco.co.tz
Website: seedcogroup.com/tz/fieldcrops/

2
Sudafric’s Suppliers

No. Company Name Contact Information


Address: Baotong West Street, Weifang City, Shandong Province, China
Tel: +86 536 8137298 / 8137168 / 15898945297
Weifang Taihong
4 Fax: +86 536 8139018
Tractor Co., Ltd.
Email: newtaihongtractor@163.com
Website: en.weifangtaihong.com
China Yulin Phone: +86 15842497638
Irrigation Fax: +86 411 39965069
5
Equipment Co., Email: [Not provided]
Ltd. Website: cyulin.net
Customer Care Tel: +254 20 2884444
NCBA Bank
6 Mobile: +254 711 056444 / +254 732 156444
Kenya
Website: ke.ncbagroup.com
Head Office Address: 10th Floor, 1st Building, No.68 Julong Road, Wuhou District,
Chengdu Chengdu, Sichuan, China, 610043
7 Agreenco Bio Tel: +86 28 8593 8996 / +86 13666243525
Tech Co., Ltd. Email: [Not provided]
Website: agreencobio.com
Address: Kibbutz Ginosar, 1498000, Israel
Phone: +972 4 6798845
8 Ginosar Agro
Email: info@ginosaragro.com
Website: ginosaragro.com

1.5 Sudafric’s Key Competitors

The key competitors in crop and goat meat export include established agribusinesses and
exporters specializing in high-quality agricultural produce and livestock products for
international markets.

Sudafric’s Key Competitors

No. Name Country Description Strengths Weaknesses


A leading exporter Dominates the
Limited diversification
of sugar, a key crop Tanzanian sugar
beyond sugar and
1 Kilombero Sugar Tanzania product in industry with
dependency on regulatory
Tanzania's economies of scale
frameworks.
agriculture sector. and export markets.
Exports dairy
products, including Strong reputation for
Limited focus on meat
Asas Dairies fresh milk and high-quality dairy
2 Tanzania exports and competition in
Limited cheese, alongside products in regional
the regional dairy sector.
small-scale animal markets.
exports.
The largest licensed
Certified with ISO and
export abattoir in
Kenya Meat Halal standards, Reliance on local livestock
East and Central
3 Commission Kenya government-backed, supply chains, bureaucracy
Africa, supplying
(KMC) large-scale challenges.
beef, lamb, and goat
operations.
meat.
A major exporter of High-value crop
Heavy reliance on
fresh vegetables, specialization,
international markets and
4 Vegpro Kenya Kenya fruits, and flowers excellent quality
compliance with stringent
to European control, strong export
regulations.
markets. logistics.

3
Sudafric’s Key Competitors

No. Name Country Description Strengths Weaknesses


Exports beef, goat,
Strong market
Bilays and sheep meat to Challenges in consistent
diversification,
5 International Kenya the Middle East, supply and meeting diverse
adherence to export
Exporters Asia, and parts of regulatory requirements.
standards.
Africa.
Provides a market
Innovative supply
platform connecting Dependence on technology
chain model, wide
6 Twiga Foods Kenya farmers to retailers, infrastructure and scalability
farmer network, and
including export of challenges.
use of technology.
fresh produce.
Connects
Digital platform
smallholder farmers
integration, Dependence on small-scale
to global markets
7 Selina Wamucii Kenya sustainability focus, farmers can affect volume
for crops (fruits,
and wide farmer and consistency.
vegetables) and
base.
livestock.
Exports high-quality
Contributes to
goats and sheep,
genetic improvement
focusing on Limited export scale
8 Bwogi Farms Uganda in livestock, strong
improving breeds compared to larger players.
expertise in goat and
for East African
sheep farming.
farmers.
Exports fresh fruits
and vegetables, such Expertise in tropical Vulnerability to price
Fresh Approach
9 Uganda as bananas, fruits, strong export fluctuations in global
Produce Ltd
pineapples, and links to Europe. markets.
avocados, to Europe.
SUGECO (Sokoine Exports various Focuses on value
University crop products, addition for crops, Limited capacity for scaling
10 Graduate Tanzania including coffee, tea, links smallholder up operations beyond
Entrepreneurs and horticultural farmers to export Tanzania.
Cooperative) crops. markets.

4
1.6 Management and Technical Team

The management and technical team of Sudafric Agriculture Ltd comprises experienced
professionals dedicated to driving innovation, sustainability, and operational excellence in
agriculture.

Management and Technical Team

No. Name Position Responsibility Key Skills


Oversee entire project execution, Leadership, Project Planning,
Kennedy Kipnusu
1 Project Manager manage team, ensure timelines & Budgeting, Risk Management,
(Kenyan)
budget adherence Decision Making
Jimmy Oprey Manage daily operations,
Operations Operations Management, Team
2 Mosha production monitoring, and
Manager Coordination, Problem Solving
(Tanazanian) resource allocation
Manage land preparation, crop Agricultural Knowledge, Crop
Veronica Rusagira
3 Agronomist planting, irrigation, and crop Management, Irrigation Systems, Soil
(Tanzanian)
production Science
Manage livestock stocking,
Phyllis Animal Husbandry, Livestock
4 Livestock Manager grazing, health, and overall
Kenyan Management
production
Procurement, Vendor Management,
Maria Masawe Procurement Procure seeds, seedlings,
5 Negotiation, Supply Chain
(Tanzanian) Officer fertilizers, and machinery
Management
Eng. Jaber C. Oversee infrastructure and
Construction Construction Management, Site
6 Nyagoka building construction (storage,
Manager Planning, Safety Standards
(Tanzanian) admin, processing units)
Eng. David Irrigation Systems, Water
Irrigation Install and maintain irrigation
7 Wamanga Management, Environmental
Specialist systems across 4,000 acres
(Ugandan) Awareness
Ivan K. Kipnusu Install and manage solar and Renewable Energy, Electrical
8 Energy Specialist
(Kenyan) grid-powered energy systems Systems, Energy Efficiency
Alex Track project finances, prepare Financial Management, Budgeting,
9 Financial manager
(Kenyan) financial reports, monitor budget Cost Analysis, Accounting
Mobilize financial resources,
Anthony M. Resource Monitoring & Evaluation, Data
monitor and evaluate project
10 Wanjohi Mobilization; Collection, Report Writing, Analytical
progress, prepare reports, track
(Kenyan) M&E Officer Skills
Key Performance Indicators-KPIs
John L. Warioba Oversee export operations, Export Compliance, Logistics
11 Export Manager
(Tanzanian) manage export permits, logistics Management, International Trade
Manage crop and livestock
Processing Food Processing, Quality Control,
12 processing, ensure quality
Specialist Equipment Handling
standards
Manage the construction of
Eng. Lucas S. Sitati Construction Project Management, Construction
13 processing units, warehouses,
(Kenyan) Project Lead Supervision, Cost Estimation
cold storage
Sales and
Jimmy O. Obong Promote products, oversee sales, Marketing, Sales Strategy, Customer
14 Marketing
(Ugandan) and manage customer relations Relationship Management
Manager
Maintain systems, fix issues,
ensure security, manage Technical expertise, problem-solving,
Richard Anene networks, deploy software, communication, cybersecurity, time
15 IT specialist
Kenyan support users, back up data, management, teamwork,
upgrade systems, document adaptability, project management
processes, coordinate vendors.

5
2.0 BUSINESS MODEL

Sudafric Agriculture Ltd. adopts a hybrid business model that integrates both internal
and external outgrower models to ensure a sustainable and scalable sunflower oil
processing venture. This approach enhances supply chain efficiency by leveraging
contracted farmers within its 5,000-acre farming scheme (internal outgrowers) while also
engaging medium and large-scale farmers outside the scheme (external outgrowers) to
expand production capacity and secure a consistent supply of sunflower seeds. By
combining these two models, Sudafric is expected to achieve greater production volumes,
risk diversification, and increased farmer participation, strengthening its position in the
edible oil and animal feed market.

2.1 Hybrid Business Model

Internal Outgrower Model

This model operates within the project's 5,000-acre farm, where sunflower cultivation is
directly managed and coordinated. The internal outgrower system ensures efficient land
utilization, centralized quality control, and the adoption of best agronomic practices. The
project management team oversees land preparation, seed distribution, planting
schedules, crop monitoring, and harvesting to maximize yields.

External Outgrower Model

The external outgrower model involves contracting medium- and large-scale farmers
outside the 5,000-acre farm to cultivate sunflowers under agreed production guidelines.
These farmers receive structured support, including access to improved sunflower seeds,
technical training, and a guaranteed market for their produce. This model expands the
project’s production capacity, fosters inclusivity, and enhances rural economic
development by integrating independent farmers into the sunflower value chain.

2.2 Key Components of the Model


Internal Outgrower Model (Farming within 5,000 External Outgrower Model (Medium & Large-
Component
acres) Scale Contracted Farmers)
Number of
1,000 farmers (internal contracted farmers) 300–500 medium & large-scale farmers
Farmers
Farm Size per
5 acres per farmer Varies (10–100 acres per farmer)
Farmer
Total Cultivated 5,000–10,000 acres (dependent on contracted
5,000 acres (1,000 farmers × 5 acres)
Land farmers)
Contract
5 years 3–5 years (flexible based on farmer capacity)
Duration
High-yield oilseed variety (e.g., sunflower, canola,
Main Crop High-yield oil seed variety (e.g., sunflower)
soybeans)
Seed distribution, training, extension services, Seed distribution, training, technical advisory,
Support Services
mechanization, input credit access to input financing
40% for edible oil processing, 60% for animal
End Products 40% for edible oil processing, 60% for animal feed
feed
Market
Pre-agreed pricing and bulk purchase agreements Contract farming with guaranteed off-take
Guarantee
Farmers earn from sunflower sales under fixed
Revenue Model Income from harvested produce sold to buyer
contract pricing

6
The Sunflower Farming Project adopts a structured outgrower model that integrates both
internal and external outgrowers to ensure a sustainable and scalable sunflower
production system. The model components are outlined in the table.

These models work together to create a sustainable, scalable, and efficient sunflower
production and processing ecosystem: The Outgrower Model ensures that Sudafric can
scale sunflower production efficiently, working with a large number of farmers without
needing to own large tracts of land; The External Procurement Model ensures that
additional sunflower supply is available for continuous processing.

2.3 Roles and Responsibilities of Key Stakeholders

The roles and responsibilities of key stakeholders are shown in the table.

Roles and responsibilities of key stakeholder


Stakeholder Responsibilities
• Cultivate sunflower on their allocated 5-acre plots.
• Follow agronomic best practices as per provided training.
Internal Outgrowers
• Deliver the agreed quality and quantity of produce to the processing
(1,000 farmers within 5,000
facility.
acres)
• Adhere to contractual agreements regarding farm management and
produce supply.
• Cultivate sunflower on contracted land (ranging from 10 acres).
External Outgrowers
• Follow set production guidelines to ensure quality and consistency.
(300–500 medium & large-scale
• Deliver produce at agreed intervals to maintain supply chain efficiency.
farmers)
• Participate in training and quality assurance programs.
• Provide farm inputs (sunflower seeds, fertilizers, pesticides) on credit.
• Offer technical support & training on sunflower agronomy, pest control,
and post-harvest handling.
Sudafric Agriculture Ltd. • Guarantee a ready market for sunflower at pre-agreed prices.
(Contractor & Buyer) • Process 40% into edible sunflower oil and 60% into sunflower cake for
animal feed.
• Ensure fair and timely payments to all farmers.
• Monitor compliance with agronomic and contractual obligations.

7
3.0 MARKET ANALYSIS

3.1 Top World Exporters of Crude Sunflower, Seed or Sufflower Oil (2019-2023)

Based on ITC calculations from UN COMTRADE and ITC statistics, the leading exporters of crude
sunflower-seed or sunflower oil from 2019 to 2023.

Rank Country 2019 (USD 2020 (USD 2021 (USD 2022 (USD 2023 (USD
'000) '000) '000) '000) '000)
1 Ukraine 3,798,216 4,702,869 5,655,090 4,658,314 4,363,651
2 Russian 1,732,076 1,819,475 2,431,389 3,128,496 3,225,125
Federation
3 Bulgaria 239,418 377,371 673,649 1,406,685 713,935
4 Argentina 332,531 229,874 648,769 710,109 652,938
5 Netherlands 388,789 484,778 570,160 699,888 615,929
6 Hungary 219,922 213,526 312,319 558,029 496,089
7 Türkiye 62,696 90,055 188,576 713,513 303,936
8 Romania 116,360 115,851 170,106 364,504 283,270
9 Kazakhstan 49,970 75,718 65,104 262,238 278,048
10 France 109,471 124,196 185,589 343,169 257,917
11 Poland 8,920 55,645 60,719 283,458 245,615
12 Moldova 67,216 90,861 104,784 321,910 236,707
13 Bolivia 28,576 59,201 94,067 122,225 90,131
14 Czech Republic 59,187 32,833 38,058 67,373 68,507
15 Serbia 86,181 72,124 98,058 77,805 66,441
Sources: ITC calculations based on UN COMTRADE and ITC statistics

Key Insights:

 Ukraine and Russia dominate the global market, consistently holding the top two
positions over the years.
 Bulgaria and Argentina have shown significant growth, particularly in 2022.
 The Netherlands and Hungary remain strong exporters, highlighting the role of
European countries in the global sunflower oil trade.
 Emerging Exporters: Countries like Kazakhstan and Romania have shown growth,
indicating their rising importance in the market.

World Sunflower Key Markets

Country Import Import Key Import Reasons for Import


Volume Share Sources
(Metric Tons) (%)

India 2.5 - 3 million 25-30% Ukraine, Russia, High demand for cooking oil,
MT Argentina population size, and changing
dietary habits.

China 1.2 - 1.5 12-15% Ukraine, Russia, Increasing demand for edible oils,
million MT Argentina, growing population, and demand
Bulgaria from food industries.

European 1.5 - 2 million 10-12% Ukraine, Russia, The EU is a major consumer of


Union (EU) MT Bulgaria sunflower oil for food processing
and industrial use.

8
Turkey 600,000 - 6-8% Ukraine, Russia, High consumption due to culinary
800,000 MT Moldova uses and increased demand in the
hospitality sector.

Egypt 500,000 - 5-7% Ukraine, Russia, Growing population and increased


600,000 MT Argentina, EU consumption of sunflower oil for
cooking and food processing.

United Arab 350,000 - 4-5% Ukraine, Russia, Growing demand in the food service
Emirates 450,000 MT India industry, high consumption in the
Middle East.

Saudi Arabia 300,000 - 3-4% Ukraine, Russia, Rising demand for sunflower oil in
400,000 MT Argentina processed food and industrial use.

Pakistan 400,000 - 4-5% Ukraine, Russia, Significant demand for cooking oil in
500,000 MT Argentina households and food production.

Indonesia 250,000 - 3-4% Ukraine, Russia, Demand driven by growing


300,000 MT Malaysia population and culinary use in
Southeast Asia.

Mexico 200,000 - 2-3% Argentina, Strong demand in the food industry


300,000 MT Ukraine, Russia and as an edible oil for frying and
cooking.

3.2 Sunflower Market in Africa

Sunflower importation into Africa has witnessed a notable increase due to rising demand for
sunflower oil, animal feed, and other derivative products. While some African nations, including
Tanzania, Uganda, and South Africa, are sunflower producers, the local supply of sunflower oil
often remains insufficient to meet the growing demand. This has led to a reliance on imports,
particularly from key exporters such as Ukraine, Russia, and the European Union (European
Commission, 2023). The expansion of the edible oil market in Africa, especially sunflower oil, has
been driven by changing consumer preferences towards healthier oils. The table --- shows the
leading sunflower oil importing countries in Africa.

Leading Sunflower Oil Importing Countries in Africa

Country Import Import Key Import Reasons for Import


Volume Share Sources
(Metric Tons) (%)

South Africa 200,000 - 25-30% Ukraine, Russia, Strong demand for sunflower oil in
300,000 MT Argentina food processing and consumption,
especially in urban areas.

Egypt 500,000 - 25-30% Ukraine, Russia, Growing population and increased


600,000 MT Argentina, EU consumption of edible oils in cooking
and food production.

Nigeria 100,000 - 10-12% Ukraine, Russia, Demand driven by the increasing


150,000 MT Argentina middle class and expansion of the
food processing industry.

9
Kenya 80,000 - 6-8% Ukraine, Russia, Growing demand due to urbanization
120,000 MT India and adoption of healthier oils for
cooking.

Morocco 70,000 - 5-7% Ukraine, Russia, Increasing consumption of sunflower


100,000 MT Argentina oil in food and hospitality industries.

Algeria 60,000 - 4-5% Ukraine, Russia, Rising demand driven by population


90,000 MT Argentina growth and food industry expansion.

Tunisia 50,000 - 3-5% Ukraine, Russia, High demand for sunflower oil for
70,000 MT Argentina culinary and industrial purposes.

Côte d'Ivoire 40,000 - 3-4% Ukraine, Russia, Significant demand in the food
(Ivory Coast) 60,000 MT Argentina industry, especially for frying and oil-
based products.

Ghana 30,000 - 2-3% Ukraine, Russia, Increased consumption due to


50,000 MT Argentina growing population and
urbanization.

Uganda 20,000 - 1-2% Ukraine, Russia, Demand for sunflower oil rising with
30,000 MT Argentina changing dietary habits in both urban
and rural populations.

Key Insights:
1. South Africa is the leading importer of sunflower oil in Africa, representing 25-30% of the
continent's total sunflower oil imports. The demand is high due to urbanization, the expansion of
the food processing industry, and a growing consumer base that prefers vegetable oils.
2. Egypt also imports a significant amount of sunflower oil, with 25-30% of the market share. The
large population and increased consumption of edible oils for domestic cooking and food
production contribute heavily to the demand.
3. Nigeria, Kenya, and Morocco are notable importers as well, with increasing demand for
sunflower oil driven by changing dietary habits and the rise of the middle class in these countries.
4. North African countries like Algeria and Tunisia are key importers, driven by population growth
and the expansion of the food industry.

 West African nations, particularly Côte d'Ivoire, Ghana, and Uganda, are gradually increasing
their sunflower oil imports, largely due to urbanization and the demand for edible oils in the
hospitality sector.

3.3 Tanzania Sunflower Export Market

The export of crude sunflower-seed or safflower oil from Tanzania has shown fluctuations over
the years, with different countries importing varying quantities. The total exported value globally
has generally increased, indicating growth in demand, particularly from key markets. The table
below shows a summary of List of importing markets for Crude sunflower-seed or safflower oil
exported by Tanzania.

10
List of importing markets for Crude sunflower-seed or safflower oil exported by Tanzania

Exported Exported Exported Exported Exported


Importers value in value in value in value in value in
2019 2020 2021 2022 2023
Switzerland 2,431 4,853 4,007 7,231 5,578
Zambia 0 0 657
Netherlands 160 138 266 202 195
Rwanda 0 0 82 75
Italy 360 0
United States of America 0 0 138
Source: Trademap, 2023

Major Sunflower Competitators in Tanzania


Tanzania has a growing sunflower oil industry, driven by both domestic consumption and
export demand. Several key companies dominate the market, each contributing to the
supply chain through processing, refining, and distribution. The major competitors vary
in scale, number of employees, and production capacity, with most of them operating in
key regions such as Dar es Salaam, Arusha, and Shinyanga.

Company Name Number Number Country City


Of Of
Product Employees
Or Service
Categories
Traded
Fidahussein And 4 150 Tanzania, United Republic Of Dar Es Salaam
Company Ltd
Jambo Oil Mills & 4 50 Tanzania, United Republic Of Shinyanga Region
Ginnery Ltd -
Jambo
Mount Meru 3 100 Tanzania, United Republic Of Arusha
Millers Ltd
Murzah Oil Mills 3 500 Tanzania, United Republic Of Dar Es Salaam
Ltd
Murzah Wilmar 2 180 Tanzania, United Republic Of Dar Es Salaam
East Africa Ltd -
Mweal
Source: Trademap, 2023

The Tanzanian sunflower oil market is competitive, with Murzah Oil Mills Ltd leading in
workforce size, indicating a large-scale operation. Fidahussein And Company Ltd and
Jambo Oil Mills have a broad product range, suggesting market diversification. The
concentration of key players in Dar Es Salaam and Arusha highlights the importance of
infrastructure and logistics in the sector. As demand for sunflower oil grows, these
companies are likely to play a critical role in Tanzania’s edible oil industry.

11
3.4 Project Risks

Risk Identified Risk Description Risk Mitigation Measures


Level
Political Risks Policy Changes Changes in agricultural or Medium Engage policymakers, industry
investment policies, including associations, and stakeholders to
tax waivers or subsidies, could anticipate and adapt to policy
affect profitability. shifts.
Trade Export restrictions or tariffs on Medium Diversify export markets and
Regulations sunflower oil could impact strengthen local distribution to
access to key markets. reduce reliance on international
trade.
Land Ownership Potential policy shifts on Low Ensure land ownership and lease
Regulations foreign/local land ownership agreements comply with existing
and agricultural leases may laws and remain adaptable to
impact long-term policy changes.
sustainability.
Economic Risks Interest Rate Variability in borrowing rates High Secure fixed-rate loans and
Fluctuations could increase debt financing explore concessional financing
costs. options to mitigate interest rate
risks.
Currency Fluctuations in Tanzanian Medium Hedge against currency risks and
Exchange Rates Shilling (TZS) vs. major trading negotiate contracts in stable
currencies (USD, EUR) may currencies (e.g., USD, EUR).
affect profitability.
Inflation Rising costs of raw materials, Medium Optimize operational efficiency,
labor, and utilities could adopt cost-control measures, and
reduce margins. explore bulk purchasing
agreements.
Social Risks Workforce Shortage of skilled labor for Medium Invest in workforce training and
Availability processing and farm partner with vocational
operations may increase costs. institutions for skilled labor
development.
Consumer Shift towards alternative Medium Conduct market research and
Preferences edible oils (e.g., palm oil, olive brand positioning to promote
oil) could reduce demand. health benefits of sunflower oil.
Technological Machinery Equipment failures could lead High Implement regular maintenance
Risks Breakdowns to downtime and production schedules and have backup
losses. machinery to prevent production
disruptions.
Technological Rapid advancements in Medium Continuously upgrade technology
Obsolescence processing technology may and invest in modular, scalable
render existing equipment equipment.
inefficient.
Environmental Climate Change Unpredictable weather High Use drought-resistant sunflower
Risks conditions (droughts, floods) varieties, implement irrigation
could reduce sunflower yields. systems, and adopt climate-smart
agriculture.
Water Scarcity Limited water supply for Medium Install solar-powered water
irrigation and processing could pumping systems and invest in
disrupt operations. rainwater harvesting.
Sustainable Compliance with Low Adopt eco-friendly processing
Farming environmental standards for techniques and seek certifications
Practices sustainable production may for sustainability compliance.
require additional
investments.
Legal Risks Contractual Failure to meet contract Medium Establish strong legal frameworks
Obligations farming and offtake and clear contract terms with
agreements could result in suppliers and buyers.
legal disputes.
Compliance with Failure to meet international High Implement strict quality control
Export food safety and quality systems and obtain relevant food
Standards standards may lead to safety certifications.
rejection of exports.

12
3.5 Project Impact
Internal Outgrower External Outgrower Impact on the Entire
Impact Area Socio-Economic Impact
Farmers Farmers Community
$8M+ in annual revenue
25-40% higher income Local economy grows by 5-
generation, contributing to the Increased income by 40-
Economic Growth per acre compared to 7% annually due to new
local, regional, and 60% annually.
previous crops. agricultural investments.
international economy.
Unemployment rate
6,000+ direct and indirect jobs 1,000+ farmers employed, 2,500+ external farmers
reduced; steady rural
Job Creation created across farming, 500+ indirect jobs in and 1,200+ rural indirect
employment leads to lower
logistics, and processing. supply chains. jobs created.
rural-to-urban migration.
$8M+ annual revenue from Increased cash flow
Annual income increases External farmers earn an
Income sunflower product sales, benefits local markets,
from $1,500 to $3,000 per average of $2,500 per
Generation boosting cash flow to local supporting regional
hectare. hectare.
markets and businesses. economic development.
Access to both local and
75% of external High-quality, locally
international markets, 90% of internal
outgrowers gain new produced sunflower oil
Market Access expanding the reach of outgrowers secure direct
buyers through project available at competitive
sunflower oil to Asia, Europe, market contracts.
partnerships. prices in global markets.
and the Middle East.
30% increase in 20-30% reduction in
$3M+ investment in roads, Improved roads, water
Infrastructure productivity due to post-harvest losses
storage, irrigation systems, systems, and electricity
Development improved irrigation and through better supply
and processing facilities. benefiting all.
transport. chains.
100% of internal 20% increase in
Training 5,000+ farmers 80% of external farmers
Training & outgrowers receive productivity due to better
annually on modern farming trained and supported by
Capacity Building training in modern knowledge and skills
practices. the project.
farming techniques. region-wide.
Investment in modern Farmers adopt hybrid Improved irrigation and Region becomes a leader in
Technology
processing facilities with 95% sunflower seeds, boosting mechanization reduce modern sunflower farming
Adoption
efficiency. yield by 40%. labor costs by 30%. practices.
100% compliance with 70% of internal 60% of external Reduced deforestation and
Environmental
sustainable farming practices outgrowers practice outgrowers use eco- improved sustainability
Sustainability
and eco-friendly methods. organic farming methods. friendly practices. practices across the region.
60,000 MT of heart-healthy Farmers and their External farmers benefit Community experiences
Health & sunflower oil produced families have access to from access to healthier better public health
Nutrition annually, improving health healthier oils, leading to oils, improving quality of outcomes due to improved
outcomes. better dietary options. life. nutrition.
Internal outgrowers External communities
15% reduction in rural Reduced rural-to-urban
experience financial enjoy stability through
Social Stability poverty, promoting financial migration as rural
stability and improved steady contracts and
stability. opportunities improve.
livelihoods. higher income.
$500K annually for Internal outgrowers
Cultural & External outgrowers Strengthened community
community programs, participate in community-
Community engage in joint initiatives, ties and long-term social
cooperatives, and educational driven projects and
Engagement fostering regional unity. cooperation.
initiatives. initiatives.
40% of all farming
Female outgrowers will At least 30% of external Female empowerment will
opportunities and leadership
receive equal training, outgrowers will be be emphasized through
Gender Equity positions in processing
market access, and women, with a focus on gender-sensitive policies
facilities will be allocated to
opportunities. women’s leadership. promoting equality.
women.
Ensuring marginalized groups Women and youth-led Disabled farmers are Commitment to social
Social Inclusion & (youth, women, people with cooperatives receive included, ensuring inclusion, focusing on
Equity disabilities) have access to job support to boost their equitable access to empowering marginalized
opportunities. output and participation. resources. groups.

In conclusion, the sunflower project presents a transformative opportunity for both internal and
external outgrower farmers, driving significant socio-economic development in the local community
and beyond. With a focus on job creation, increased incomes, access to global markets, and
infrastructure development, the project will have a far-reaching impact on economic growth, social
stability, and environmental sustainability. By incorporating gender equity, social inclusion, and
capacity building, the project ensures that marginalized groups, particularly women and youth, are
actively engaged and empowered. With a solid foundation in modern technology, sustainable
practices, and training, this initiative not only promises to elevate the livelihoods of farmers but also
contributes to long-term, inclusive growth that benefits the entire region and expands Tanzanian
agricultural products onto the global stage.

13
4.0 PROJECT FINANCIAL AND INVESTMENT PLAN

4.1 Joint Venture-Equity Financing

For the Sunflower Project, Sudafric will adopt a Joint Venture (JV) model with Equity
Financing. JV will involve two or more parties coming together to undertake the
project.Each party is expected to contribute resources including capital, expertise, or
assets and share the financial and operational risks of the project.

Equity Financing Model

Sudafric Agriculture Ltd. seeks equity investment to finance the development and
expansion of its sunflower oil processing facility. This model involves selling ownership
stakes in the processing operation to investors in exchange for funding. The investment
will support infrastructure, equipment, and working capital, ensuring the facility meets the
growing market demand for sunflower oil and animal feed.

Key Features of the Equity Investment Model


Feature Details
Investment Investors provide capital in exchange for equity shares in the sunflower oil processing
Structure facility.
Profits generated from sunflower oil sales (domestic and export) and animal feed
Revenue Streams
production.
Profit
Investors receive returns based on their shareholding percentage in the processing facility.
Distribution
Management Sudafric Agriculture Ltd. retains control over day-to-day operations and strategic decisions,
Control while investors participate in high-level decision-making.
Equity investment enables expansion of processing capacity to meet growing demand for
Scalability
sunflower oil and animal feed.

The equity investment model is expected to provide a sustainable and scalable financing
approach for Sudafric Agriculture Ltd.’s sunflower oil processing facility. By securing
investor participation, the company can expand production, enhance efficiency, and
maximize profitability while ensuring a fair return on investment. This model fosters a
long-term partnership between Sudafric and investors, driving growth in the sunflower
value chain and contributing to food security and economic development.

14
Required Investment

 Total Investment Required:


 Land Acquired: 5,000 acres in Songea, Tanzania (valued as company contribution).
 Debt Financing: To be provided by the Investor to cover funding gap.

Tabulated Capital Structure


Source of Funds Amount (USD) % of Total Investment

Land Contribution (Company) 4,320,000 27%

Farm machinery (Company) 520,000 3%

Debt / Equity Financing 10,714,000 70% (Or as may be agreed)

Total 15,554,000 100%

Land Valuation

The company’s 5,000-acre land in Songea, Tanzania, is valued at $4,320,000. This


valuation is based on the following:

 Land Value Per Acre: Estimated at $864 per acre, considering its agricultural utility and market
rates in the region.
 Total Land Value: 5,000 acres × $864 per acre = $4,320,000

4.2 Investment Plan

Funding Sources

 Equity Funding: Company contribution through land and administration


 Debt Financing: Loan

15
4.3 Investment Cost Estimate

Cost per Unit Adjusted Total Cost


Category Particulars Units
(USD) (USD)
Land Preparation Clearing only 5,000 acres 50 250,000
Irrigation Systems Solar-powered drip irrigation system 5,000 acres 350 1,750,000
Buildings & Admin Offices, housing, warehouses, cold rooms 1 unit 400,000 400,000
Research Facilities Construction of research labs and offices 1 unit 200,000 200,000
Medium-scale sunflower processing unit
Processing Facility 1 unit 1,500,000 1,500,000
(10 MT/day)
Assorted
Farm Machinery Purchase of tractors, harvesters, ploughs 1,200,000 1,200,000
machines
Solar Energy
Solar panels for energy supply 2,000 kW 1,000 2,000,000
Systems
Biogas Systems Construction of biogas plants 4 units 80,000 320,000
Logistics &
Transport vehicles 2 vehicles 60,000 120,000
Transport
Water Supply Solar-powered water pumping system 1 unit 200,000 200,000
Solar and grid-powered electricity
Electricity Supply 1 unit 400,000 400,000
system
Administrative Operating expenses (staff, office
1 year 500,000 500,000
Costs supplies, etc.)
Labor Costs Staff wages (farm and processing) 1 year 900,000 900,000
Contingencies
Contingency for unforeseen costs 10% of subtotal 974,000 974,000
(10%)
Total — 10,714,000

5.0 PROFITABILITY FORECASTS1

5.1 Operational Costs

Unit Cost Total Annual Cost


Category Description Unit Quantity
(USD) (USD)
Factory workers, machine operators,
Labor Costs Staff 50 6,000/year 300,000
supervisors
Management, accounting, HR,
Administrative Costs Staff 15 8,000/year 120,000
security
Machinery upkeep, repairs, and spare
Maintenance & Utilities Annual 1 150,000 150,000
parts
Water for processing and cooling Cubic
Water Supply 10,000 1.5 15,000
systems M
Power for milling, pressing, and
Electricity Supply kWh 800,000 0.12 96,000
processing
Raw Material Transporting sunflower seeds from
MT 5,000 20 100,000
Transportation farms to factory
Shipping oil and animal feed to
Product Distribution MT 5,000 30 150,000
markets
Contingencies (15%) Buffer for unforeseen expenses — — — 139,500
Total Annual Cost — — — — $1,070,500

1 Disclaimer: This financial analysis is based on hypothetical assumptions, projected figures, and estimated
costs. The accuracy of the financial outcomes presented is subject to numerous variables, including but not
limited to changes in market conditions, revenue fluctuations, operational efficiency, and unforeseen economic
factors.Potential investors and stakeholders are advised to conduct their own due diligence.

16
5.2 Projected Revenues

Assumptions

1. Sunflower Seed Procurement and Production

 Internal Farming (Leased to Contracted Farmers): 5,000 acres


 External Farmers: 500 farmers × 10 acres each = 5,000 acres
 Total Cultivated Area Per Season: 10,000 acres
 Farming Seasons Per Year: 2
 Total Annual Cultivated Area: 10,000 acres

2. Annual Yield Production

 Average Yield per Acre: 0.5 MT per season


 Internal (Contracted Farmers) Supply: 5,000 acres × 0.5 MT × 2 seasons = 5,000 MT
 External Farmers Supply: 5,000 acres × 0.5 MT × 2 seasons = 5,000 MT
 Total Annual Sunflower Seeds: 10,000 MT

3. Procurement Costs:

 Internal Farmers: $300 per MT


 External Farmers: $350 per MT
 Internal Farmers: 5,000 MT × $300 = $1,500,000
 External Farmers: 5,000 MT × $350 = $1,750,000
 Total Procurement Cost: $3,250,000

4. Land Leasing Revenue (Additional Income Stream)

 Leased Land: 5,000 acres (leased to 1,000 farmers, 5 acres each)


 Land Leasing Rate in Tanzania: $50 per acre per season
 Total Land Leasing Revenue: 5,000 acres × $100 (2 seasons) = $500,000 per year (No change, since
land remains the same.)

5. Processing Output Yields

 Oil Extraction Yield: 40% → 4,000 MT of sunflower oil


 Animal Feed Production: 60% → 6,000 MT of animal feed

6. Product Selling Prices

 Sunflower Oil Price per MT: $1,200


 Animal Feed Price per MT: $400

7. Market Destinations

 Sunflower Oil: Export to Africa, China, and India


 Animal Feed: Sold locally and across Africa

17
Revenue Projection

Output Price per MT Total Revenue Market


Category
(MT) (USD) (USD) Destination
Export: Africa,
Sunflower Oil 4,000 1,200 4,800,000
China, India
Animal Feed 6,000 400 2,400,000 Local & Africa

Leasing Revenue (Internal Farmers, 5,000 Leased by Internal


— — 500,000
acres @ $100/acre per year) Farmers
Total Revenue — — $7,700,000 —

5.3 Profitability Analysis

Revenue and Cost Breakdown

 Total Revenue: $7,700,000


 Procurement Cost: $3,250,000
 Operational Cost: $1,070,500

Net Profit (Annual)

Profit Margin

5.4 Cash Flow Projection

Assumptions

 Investment Cost (Year 1 Only): $10,714,000 (Factory setup, machinery, initial working capital)
 Annual Procurement Costs: $3,250,000
 Annual Operational Costs (Excluding Procurement): $1,070,500
 Total Annual Costs (Operations + Procurement): $4,320,500
 Annual Revenues: $7,700,000
 Tax Exemption: No taxes apply due to government incentives

Formula: Net Cash Flow = Revenue - (Investment Cost in Year 1 + Total Annual Costs)
Cumulative Cash Flow = Previous Year’s Cumulative Cash Flow + Net Cash Flow

18
10-Year Cash Flow Projection2

Year Investment ($) Revenue ($) Total Annual Costs ($) Net Cash Flow ($) Cumulative Cash Flow ($)
1 10,714,000 7,700,000 4,320,500 -7,334,500 -7,334,500
2 0 7,700,000 4,320,500 3,379,500 -3,955,000
3 0 7,700,000 4,320,500 3,379,500 -575,500
4 0 7,700,000 4,320,500 3,379,500 2,804,000
5 0 7,700,000 4,320,500 3,379,500 6,183,500
6 0 7,700,000 4,320,500 3,379,500 9,563,000
7 0 7,700,000 4,320,500 3,379,500 12,942,500
8 0 7,700,000 4,320,500 3,379,500 16,322,000
9 0 7,700,000 4,320,500 3,379,500 19,701,500
10 0 7,700,000 4,320,500 3,379,500 23,081,000

5.5 Break-Even Analysis

 Initial Investment: $10,714,000


 Annual Net Cash Flow: $3,379,500
 Break-even occurs between Year 3 and Year 4.

Substituting values:

 The project recovers its investment between Year 3 and Year 4.


 From Year 4 onwards, the project is profitable.
 Total profit by Year 10: $23,081,000

5.6 Conclusion and Recommendations

Project Feasibility

 Strong Revenue Model – The project generates stable revenues of $7.7M annually from sunflower oil
and animal feed.
 Fast Break-even Period – Due to increased production, the project reaches break-even in just 3.2
years, much earlier than previously estimated (6.1 years).
 High Profitability – After breaking even, the project generates annual profits of $3.38M, leading to a
total profit of $23.08M by Year 10.

Recommendation

Given the strong financial outlook and early break-even point, the sunflower processing project is highly
viable. It is recommended to proceed with implementation, ensuring efficient procurement and operational
management for maximum profitability.

2 This cash flow projection does not factor in inflation, revenue growth rate, depreciation or potential cost fluctuations, which may impact
the actual financial performance over time. However, it provides a general view of cash flow projections, helping to estimate the timeline
for breakeven and long-term profitability under stable conditions.

19

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