Business Proposal : Integrated Grouper and Sea Bass ... - ECER
Business Proposal : Integrated Grouper and Sea Bass ... - ECER
Business Proposal : Integrated Grouper and Sea Bass ... - ECER
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INVESTMENT OPPORTUNITIES IN THE<br />
EAST COAST ECONOMIC REGION (<strong>ECER</strong>) OF MALAYSIA<br />
AGRICULTURE
Global Food Security<br />
“FOOD SECURITY” is the key to future country prosperity.<br />
• Oil <strong>and</strong> food prices hit all time<br />
high in 2008<br />
• Rising prices are a precursor<br />
to the crisis of shortage<br />
• Food resources are depleting<br />
at faster rate than they can be<br />
regenerated<br />
• Concentrated food origination<br />
point with global dem<strong>and</strong><br />
spread<br />
• New Model emerge as<br />
“TRANSNATIONAL<br />
AGRICULTURE”
Global Trend: Transnational Agriculture<br />
“TRANSNATIONAL AGRICULTURE” is the Investment Opportunities<br />
in <strong>ECER</strong> Malaysia. Come, Invest <strong>and</strong> Prosper with us.<br />
• Daewoo vying to lease 1.3m ha of farml<strong>and</strong> (half the size of<br />
Belgium) from the Madagascar government for 99 years to<br />
support the South Korean needs<br />
• Karuturi Global (an Indian company) has acquired 300,000 ha<br />
of farml<strong>and</strong> in Ethiopia<br />
• Morgan Stanley has bought 40,000ha of farml<strong>and</strong> in Brazil<br />
• In 2008, a Dubai-based investment firm acquired 800,000<br />
acres in Pakistan<br />
• In 2008, IFC invested US$1.4bn in the agri business supply<br />
chain<br />
• In 2008, Goldman Sachs invested US$300m to acquire 10<br />
poultry farms in China<br />
• Today, China cultivates 2.47m acres in Indonesia<br />
Source: IDFC Investment Banking, India
AGRICULTURE<br />
Large Scale Commercial Farming<br />
BUSINESS<br />
STRATEGY<br />
Modern Technology & Precision Agriculture<br />
Fully <strong>Integrated</strong> Value Chain<br />
Investor Driven
<strong>ECER</strong> Agriculture Investment Opportunities<br />
PASIR MAS HALAL HUB<br />
TOK BALI INTEGRATED<br />
FISHERY PARK<br />
DANAU TO’ UBAN<br />
FRESHWATER AQUA.<br />
GAMBANG HALAL HUB<br />
KENYIR LAKE<br />
FRESHWATER AQUA.<br />
MARAN POULTRY<br />
PRODUCTION PARK<br />
PEKAN GOAT & SHEEP<br />
PRODUCTION<br />
INTEGRATED<br />
PINEAPPLE PLANTATION<br />
(ROMPIN)<br />
Opportunity 1 - Poultry Industry<br />
Opportunity 2 – Dairy Cattle<br />
Industry<br />
Opportunity 3 - Goat & Sheep<br />
Industry<br />
Opportunity 4 - Fishery Industry<br />
MUADZAM SHAH DAIRY<br />
CATTLE PRODUCTION<br />
KUALA BERANG DAIRY<br />
CATTLE, GOAT & SHEEP<br />
PRODUCTIONS<br />
Opportunity 5 - Pineapple<br />
Industry
Poultry Investment Opportunity<br />
6
Poultry Investment Opportunity<br />
- Project Location<br />
7<br />
SERENGKAM, MARAN,<br />
PAHANG<br />
TO BE DEVELOPED ON 150<br />
HECTARES OF LAND<br />
INVESTMENT OPPORTUNITIES:<br />
• Upstream production<br />
• Full export compliance<br />
• Meets Halal st<strong>and</strong>ards
Poultry Production Park<br />
- Project Features<br />
8<br />
150,000 mt/year<br />
50,000 mt/year<br />
Feed Mill<br />
350,000<br />
eggs/year<br />
70,000 mt/year<br />
Broiler Farms<br />
Primary<br />
Processing<br />
150 Ha<br />
In Maran,<br />
Pahang<br />
Value-added<br />
Processing<br />
Hatchery<br />
Breeder Farm
Poultry Investment Opportunity<br />
- Project Financial Considerations<br />
Investment<br />
Investment Value<br />
(USD)<br />
IRR (%)<br />
Payback (Year)<br />
Fully <strong>Integrated</strong><br />
Poultry Park<br />
• Investment in breeders<br />
farm, hatchery, broiler<br />
farms, feed mill <strong>and</strong><br />
processing centre for<br />
export.<br />
66.2 mil 15% 7 years<br />
• Fully integrated biosecurity<br />
poultry<br />
productions in 150 ha<br />
acres of l<strong>and</strong>.
Dairy Cattle Farming Investment<br />
Opportunity<br />
10
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> Dairy Farming<br />
<strong>Integrated</strong> Value Chain<br />
Tier<br />
1<br />
NUCLEUS<br />
FARM<br />
Muadzam Shah Cattle Research & Innovation Centre<br />
Total population 1,250 cows<br />
Total production 2.25 ml of Fresh Milk<br />
Tier<br />
2<br />
HEIFERS<br />
FARM<br />
Kuala Berang<br />
Commercial<br />
Dairy Farm<br />
(1,250 heads)<br />
Tanah Merah<br />
Commercial<br />
Dairy Farm<br />
(1,250 heads)<br />
Total population 3,750 cows,<br />
total production 6.75 ml of Fresh Milk<br />
Mersing<br />
Commercial<br />
Dairy Farm<br />
(1,250 heads)<br />
Tier3<br />
COMMERCIAL<br />
FARM<br />
Satellite Farms<br />
50 – 500 milking<br />
cows / farm<br />
Satellite Farms<br />
50 – 500 milking<br />
cows / farm<br />
Total population 5,000 cows,<br />
total production 9 ml of Fresh Milk<br />
Satellite Farms<br />
50 – 500 milking<br />
cows / farm<br />
VALUE ADD<br />
Pasteurized<br />
Cows Milk<br />
Gambang Halal Park<br />
Produces value added dairy products (from 18 mil litre)<br />
(i.e. Pasteurized & UHT milk, Halal Cheese, Yogurt etc)
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> Dairy Farming<br />
Proposed <strong>Integrated</strong> Dairy Investment Location<br />
Multiplier Farm,<br />
Tanah Merah,<br />
Kelantan<br />
1,250 cows<br />
2.25 ml milk<br />
400 ha<br />
Multiplier Farm,<br />
Kuala Berang,<br />
Terengganu<br />
1,250 cows<br />
2.25 ml milk<br />
400 ha<br />
Gambang Halal Hub,<br />
Kuantan, Pahang<br />
Nucleus Farm<br />
Muadzam Shah,<br />
Pahang<br />
1,250 cows<br />
2.25 ml milk<br />
1,200 ha<br />
Multiplier Farm,<br />
Mersing, Johor<br />
1,250 cows<br />
2.25 ml milk<br />
400 ha
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> Dairy Farming<br />
Investment Summary – Dairy Farming<br />
Production of 27.3 million liter of Fresh Milk Annually (by year 2015)<br />
Descriptions<br />
Results<br />
2011 2015<br />
No of Breeding Cows 5,000 7,650<br />
No of Lactating Cows 4,750 6,500<br />
Milk Production (litre) 8.5 mil 27.3 mil<br />
Annual Operating Cost RM20 mil RM30 mil<br />
Annual Revenue RM17 mil RM63 mil<br />
Capital Cost 4 farms<br />
RM116 million<br />
Net Present Value (NPV)<br />
RM60 million<br />
Internal Rate of Return (IRR) 19 %<br />
Payback Period<br />
5.8 years<br />
Return on Investment (ROI) 28%<br />
Total Capital Investment of RM116 million <strong>and</strong> average annual Operating Cost of<br />
RM24.8 million a year. Average Revenue on investment is RM44 million a year<br />
until year 2015.
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> Dairy Farming<br />
Investment Summary – Dairy Milk Processing<br />
Processing of 36 million liter of Fresh Milk Annually (by year 2015)<br />
Total Capital Investment of RM10 million <strong>and</strong> annual Operating Cost of RM49<br />
million a year. Revenue on investment is RM54 million a year.
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> Dairy Farming<br />
Investment Summary – Dairy Milk Processing<br />
Processing of 36 million liter of Fresh Milk Annually (by year 2015)<br />
Descriptions<br />
Results<br />
2011 2015<br />
Own Farm Milk Production (liter) 8.5 mil 27.3 mil<br />
Satellite Farm Milk Supplies (liter) 9.0 mil 9.0 mil<br />
Total Processed Milk (liter) 17.5 mil 36.3 mil<br />
Annual Operating Cost<br />
50 mil<br />
Annual Revenue<br />
54 mil<br />
Capital Cost (Dairy Processing)<br />
10 mil<br />
Net Present Value (NPV)<br />
13.5 mil<br />
Internal Rate of Return (IRR) 39%<br />
Payback Period<br />
3.5 year<br />
Return on Investment (ROI) 41%<br />
Total Capital Investment of RM10 million <strong>and</strong> average annual Operating Cost of<br />
RM50 million a year. Average Revenue on investment is RM54 million a year
Large Scale Goat & Sheep Farming<br />
Investment Opportunity
Goat & Sheep Industry Investment Opportunity<br />
- Strategic Implementation Plan<br />
Tier<br />
1<br />
NUCLEUS<br />
FARM<br />
Kuala Berang Goat Breeding & Innovation Centre<br />
3,900 Breeders<br />
Tier<br />
2<br />
MULTIPLIER<br />
FARM<br />
Kuala Berang Multiplier<br />
Farm (Boer)<br />
10,000 Breeders<br />
Pekan Multiplier Farm<br />
(Doper)<br />
5,000 Breeders<br />
Total population of 15,000 breeders<br />
Tier3<br />
COMMERCIAL<br />
FARM<br />
Ulu Tersat<br />
Commercial Farms<br />
15,000 heads<br />
Outside Tersat<br />
Commercial Farms<br />
15,000 heads<br />
Pekan Agropolitan<br />
25,000 heads<br />
Total population 55,000 heads<br />
MEAT<br />
PROCESSING<br />
BUSINESS<br />
Gambang & Pasir Mas Halal Park<br />
Produces value added Prime Cuts, Cold Storage, Marinated
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> Goat Farming<br />
Proposed <strong>Integrated</strong> Goat Investment Location<br />
Pasir Mas Halal Hub,<br />
Kelantan<br />
Nucleus Farm<br />
Kuala Berang,<br />
Terengganu<br />
Multiplier Farm,<br />
Kuala Berang,<br />
Terengganu<br />
3,900 breeder<br />
1,200 ha<br />
10,000 breeder<br />
400 ha<br />
Gambang Halal Hub,<br />
Kuantan, Pahang<br />
Commercial Farm,<br />
Pekan, Pahang<br />
5,000 breeder (Doper)<br />
400 ha
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> Goat Farming<br />
Investment Summary – Goat Farming (Boer)<br />
Production of 22,447 heads annually (by year 2015)<br />
Descriptions<br />
Results<br />
2011 2015<br />
No of Breeding Does 10,000 10,485<br />
Total Kids Born 12,350 23,591<br />
Sale of Goats (heads) 525 22,447<br />
Annual Operating Cost RM2.8 mil RM4.0 mil<br />
Annual Revenue RM0.18 mil RM12.97 mil<br />
Capital Cost<br />
RM28.5 million<br />
Net Present Value (NPV)<br />
RM13.9 million<br />
Internal Rate of Return (IRR) 19 %<br />
Payback Period<br />
5.4 years<br />
Return on Investment (ROI) 16 %<br />
Total Capital Investment of RM31.25 million <strong>and</strong> average annual Operating<br />
Cost of RM4.0 million a year. Average Revenue on investment is RM12.97<br />
million a year until year 2015.
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> Goat Farming<br />
Investment Summary – Sheep Farming (Doper)<br />
Production of 10,362 heads annually (by year 2015)<br />
Descriptions<br />
Results<br />
2011 2015<br />
No of Breeding Does 5,000 5,243<br />
Total Kids Born 6,175 10,817<br />
Sale of Goats (heads) 263 10,362<br />
Annual Operating Cost RM1.59 mil RM2.19 mil<br />
Annual Revenue RM0.091 mil RM6.50 mil<br />
Capital Cost<br />
RM15.7 mil<br />
Net Present Value (NPV)<br />
RM5 mil<br />
Internal Rate of Return (IRR) 16%<br />
Payback Period<br />
5.8 year<br />
Return on Investment (ROI) 13%<br />
Total Capital Investment of RM17.31 million <strong>and</strong> average annual Operating Cost of<br />
RM2.13 million a year. Average Revenue on investment is RM6.50 million a year<br />
until year 2015.
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> Goat Farming<br />
Investment Summary – Goat <strong>and</strong> Sheep Meat Processing<br />
Processing of 22,447 heads of goat <strong>and</strong> 10,362 heads of sheep annually (by year 2015)<br />
Runchang, Pekan, Pahang<br />
Total Capital Investment of RM11 million <strong>and</strong> annual Operating Cost of RM22<br />
million a year. Revenue on investment is RM30 million a year.
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> Goat Farming<br />
Investment Summary : Goat <strong>and</strong> Sheep Meat Processing (Carcasses)<br />
Processing of 22,447 heads of goat <strong>and</strong> 10,362 heads of sheep annually<br />
(by year 2015)<br />
Descriptions<br />
Results<br />
2011 2015<br />
Number of Animal Slaughtered per day 200 250<br />
Annual Operating Cost RM22.69 mil RM28.26 mil<br />
Annual Revenue RM25.5 mil RM31.88 mil<br />
Capital Cost (Meat Processing)<br />
Net Present Value (NPV)<br />
RM11.0 mil<br />
RM9.12 mil<br />
Internal Rate of Return (IRR) 35%<br />
Payback Period<br />
5.0 years<br />
Return on Investment (ROI) 19%<br />
Total Capital Investment of RM11 million <strong>and</strong> annual Operating Cost of RM22<br />
million a year. Revenue on investment is RM30 million a year.
Herbal <strong>and</strong> Biotechnology Product Clusters<br />
Investment Opportunity
<strong>Business</strong> <strong>Proposal</strong> : Herbal <strong>and</strong> Biotechnology Product Clusters<br />
<strong>Integrated</strong> Value Chain<br />
Up Stream Mid Stream Down Stream<br />
Hempedu Bumi<br />
(Andrographis Paniculata)<br />
Dukung Anak (Phyllantus Niruri)<br />
Misai Kucing (Orthosiphon Stamineus)<br />
Kacip Fatimah (Labisia Pumila)<br />
Tongkat Ali<br />
(Eurycoma Logifolia)<br />
Lemon Myrtle<br />
(Backhousia Citriodora)<br />
Agarwood (Oudh)<br />
It encompasses all plants or their parts<br />
used for health reasons <strong>and</strong> for extraction<br />
of essential oils, flavour compounds,<br />
colouring compounds or other natural<br />
compounds used in chemical industries.
<strong>Business</strong> <strong>Proposal</strong> : Herbal <strong>and</strong> Biotechnology Product Cluster<br />
Proposed Herbal Cluster Investment Location<br />
Rantau Manis Herbal<br />
Plantation (323 ha)<br />
Durian Mentangau Herbal<br />
Plantation (151 ha)<br />
Pasir Raja Herbal<br />
Plantation (461 ha)<br />
Total Proposed<br />
L<strong>and</strong> 1,269 ha<br />
Chegar Perah Herbal<br />
Plantation (334 ha)<br />
Value-added Processing<br />
Centre, Batu Talam<br />
First Phase<br />
Second Phase
<strong>Business</strong> <strong>Proposal</strong> : Herbal <strong>and</strong> Biotechnology Product Clusters<br />
Special Focus Crop for Investment : Agar wood (Oudh)<br />
Middle East<br />
Arabian retailer specializing in<br />
oudh has over 550 retail outlets<br />
across 17 countries <strong>and</strong> is one of<br />
the world’s largest perfume<br />
retailers in a market worth US$3.3<br />
billion a year<br />
Source : TRAFFIC<br />
Taiwan<br />
Prices of Agarwood for medicinal use<br />
vary between US$ 3,000 to<br />
US$30,000 per kg <strong>and</strong> processed oil<br />
between US$ 7,000 to US$ 61,000 a<br />
litre. Large high quality pieces<br />
suitable for ornamental sculptures<br />
can sell for up to US$100,000 per kg<br />
Japan<br />
Unprocessed Agarwood pieces<br />
prices ranging from US$320 to<br />
US$22,700 per kilogram with the<br />
highest grades selling for between<br />
US$9,000 to US$272,000 per kg<br />
Aquilaria Malaccensis<br />
• The source of Agarwood (Oudh)<br />
• Essential oil, incense, medicinal<br />
use – cough, asthma, skin<br />
diseases
<strong>Business</strong> <strong>Proposal</strong> : Herbal <strong>and</strong> Biotechnology Product Clusters<br />
Agarwood (Oudh) : Investment Summary<br />
Production of 500 tonne of Agarwood with One Cycle of Harvest after 7 yrs of planting*<br />
Descriptions<br />
Number of trees available for Agarwood resin<br />
(60% of trees produce Agarwood resin)<br />
Annual Operating Cost<br />
Annual Revenue<br />
Capital Expenditure inclusive of 1 st Working Capital<br />
Net Present Value (NPV)<br />
Results<br />
2011 2017<br />
833 500<br />
RM104 million<br />
RM125 million<br />
RM120 million<br />
RM100 million<br />
Internal Rate of Return (IRR) 34 %<br />
Payback Period<br />
1.75 years<br />
Return on Investment (ROI) 124%<br />
*Assuming 500 ha of Aquilaria spp plantation with each tree estimated to produce 1,000 gram of<br />
Agarwood <strong>and</strong> price is RM500/kg or RM0.5 million per tonne<br />
Total Capital Investment of RM120 million <strong>and</strong> average annual Operating Cost of RM104<br />
million a year. Revenue on investment is estimated to be RM125 million on year 2017
<strong>Business</strong> <strong>Proposal</strong><br />
<strong>Integrated</strong> <strong>Grouper</strong> &<br />
<strong>Sea</strong>bass Farming<br />
28
Global Fisheries Industry Overview<br />
Market Opportunity: World Fisheries Import<br />
North Asia<br />
Middle-East<br />
UAE <strong>and</strong> Saudi import<br />
USD500 million worth of<br />
fisheries products<br />
Malaysia<br />
Imports 386,459 MT<br />
of which 63.5% are in<br />
fresh/frozen fish<br />
• China imports USD3.1 Billion of frozen<br />
fish & USD1.5 Billion fish meal<br />
• Korea imports USD3.124 Billion of<br />
fisheries products<br />
South China/HK<br />
• HK imports USD2.245 billion<br />
of fisheries products<br />
• Live reef food fish trade is<br />
worth US$800 million<br />
America<br />
• Imports reaching 2.34 million MT<br />
<strong>and</strong> USD13.12 billion in 2009.<br />
• Total tilapia imports in 2009 were<br />
183,297 MT at a value of<br />
USD697 million<br />
Source: FAO <strong>and</strong> market intelligence
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> <strong>Grouper</strong> <strong>and</strong> <strong>Sea</strong> <strong>Bass</strong> Farming<br />
<strong>Grouper</strong> (Epinephelus spp.)<br />
Descriptions<br />
Official Name<br />
Local Name (Malay)<br />
Reproduction<br />
Feedstock<br />
Growth Period<br />
Sellable Weight<br />
Cultivation cycles per year<br />
Potential Export Market<br />
Distance from Malaysia to Hong Kong<br />
Ex-Wholesale Price per kg<br />
Wholesale Market Price of Live Marine<br />
Fish in Hong Kong<br />
Specifications<br />
<strong>Grouper</strong><br />
Kerapu<br />
Most fish spawn between May <strong>and</strong> August. They are protogynous<br />
hermaphrodite, i.e. the young are predominantly female but<br />
transform into males as they grow larger (at about 10 to 12 kg).<br />
Formulated pellets, fish, octopus, crabs<br />
12 – 14 months<br />
500 – 700 gram<br />
1 cycle<br />
China, Hong Kong, Japan & South Korea<br />
2,400 km<br />
RM$50 – RM$80 per kg | USD$16 per kg – USD$26 per kg<br />
Hong Kong Market Price as at 1 January 2011<br />
Tiger <strong>Grouper</strong><br />
HK$250.00 | USD$32<br />
Camouflage <strong>Grouper</strong><br />
HK$290.00 | USD$37<br />
Red <strong>Grouper</strong><br />
HK$522.00 | USD$67<br />
Leopard Coral <strong>Grouper</strong><br />
HK$584.00 | USD$75
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> <strong>Grouper</strong> <strong>and</strong> <strong>Sea</strong> <strong>Bass</strong> Farming<br />
Asian <strong>Sea</strong> <strong>Bass</strong> (Lates calcarifer)<br />
Descriptions<br />
Specifications<br />
Official Name<br />
Asian <strong>Sea</strong> <strong>Bass</strong> (Lates calcarifer)<br />
Local Name (Malay)<br />
Siakap<br />
Reproduction<br />
Feedstock<br />
Growth Period<br />
Sellable Weight<br />
Cultivation cycles per year<br />
Potential Export Market<br />
Distance from Malaysia to Hong Kong<br />
Ex-Wholesale Price per kg (fresh)<br />
Ex-Wholesale Price per kg (fillet)<br />
A prot<strong>and</strong>rous hermaphrodite i.e. usually one female with several<br />
smaller male; male can change sex if female removed<br />
Formulated pellets, fish, octopus, crabs<br />
12 – 14 months<br />
500 gram – 2 kg<br />
2 cycles<br />
China, Taiwan, Hong Kong, Japan & South Korea<br />
2,400 km<br />
RM12 per kg | USD4.0 per kg<br />
RM40 – RM70 per kg | USD20 – USD23 per kg
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> <strong>Grouper</strong> <strong>and</strong> <strong>Sea</strong> <strong>Bass</strong> Farming<br />
<strong>Integrated</strong> Value Chain for <strong>Grouper</strong> & <strong>Sea</strong>bass<br />
Fully <strong>Integrated</strong> Value Chain Development Investment<br />
Investment in production of<br />
9.6 mil fingerlings annually<br />
Export to Hong Kong & China<br />
(Live & Processed) <strong>and</strong> other<br />
global market<br />
GROUPER<br />
HATCHERY<br />
GROW-OUT (CAGES)<br />
Investment in production of<br />
3,700 tonnes <strong>Grouper</strong> annually<br />
FRESH<br />
WHOLE FISH<br />
MARKET<br />
SEA BASS<br />
Investment in production of<br />
10 mil fingerlings annually<br />
GROW-OUT (POND)<br />
Investment in production of<br />
3,000 tonnes <strong>Sea</strong> <strong>Bass</strong> annually<br />
PRIMARY<br />
PROCESSING<br />
Investment in Halal<br />
fish-based Processing<br />
(frozen, fillet, smoked,<br />
fish meal)
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> <strong>Grouper</strong> <strong>and</strong> <strong>Sea</strong> <strong>Bass</strong> Farming<br />
<strong>Grouper</strong> Fish Hatchery Investment<br />
Production of 10 million <strong>Grouper</strong> Fingerlings (4”) Annually<br />
Descriptions<br />
Specifications<br />
Location<br />
L<strong>and</strong> Size<br />
L<strong>and</strong> Owner<br />
<strong>Integrated</strong> Facilities<br />
Hatchery Technology<br />
Water Intake<br />
Species Hatched<br />
Brood stock Tank<br />
Live feed Production<br />
First Feeding Tank<br />
Nursery Tank<br />
Fish Fry Production<br />
Capacity<br />
Fish Fingerling Production<br />
Capacity<br />
Lease Arrangement<br />
Merchong in the District of Pekan, Pahang<br />
10 - 24 hectare<br />
State Government of Pahang<br />
Water Intake, Hatchery, Nursery, Workers Quarters, Biosecurity,<br />
Discharge Pond, Treatment Pond, Office <strong>and</strong><br />
Marketing Centre<br />
Recirculation Aquaculture System (RAS), fully automated<br />
<strong>Sea</strong> water (600 m from the coastal)<br />
<strong>Grouper</strong><br />
12 units<br />
Artemia, Rotifer<br />
24 units<br />
24 units ; Exp<strong>and</strong>able to another 12 units<br />
12 million fry of 25 mm size per fish seed annually<br />
10 million fingerlings of 100 mm per fish fingerling annually<br />
30 – 60 years
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> <strong>Grouper</strong> <strong>and</strong> <strong>Sea</strong> <strong>Bass</strong> Farming<br />
<strong>Sea</strong>bass Fish Hatchery Investment<br />
Production of 10 million <strong>Sea</strong>bass Fingerlings (4”) Annually<br />
Descriptions<br />
Location<br />
L<strong>and</strong> Size<br />
L<strong>and</strong> Owner<br />
<strong>Integrated</strong> Facilities<br />
Hatchery Technology<br />
Water Intake<br />
Species Hatched<br />
Brood stock Tank<br />
Live feed Production<br />
First Feeding Tank<br />
Nursery Tank<br />
Fish Fry Production<br />
Capacity<br />
Fish Fingerling Production<br />
Capacity<br />
Lease Arrangement<br />
Specifications<br />
Merchong in the District of Pekan, Pahang<br />
10 - 24 hectare<br />
State Government of Pahang<br />
Water Intake, Hatchery, Nursery, Workers Quarters, Biosecurity,<br />
Discharge Pond, Treatment Pond, Office <strong>and</strong><br />
Marketing Centre<br />
Recirculation Aquaculture System (RAS), fully automated<br />
<strong>Sea</strong> water (600 m from the coastal)<br />
Asian <strong>Sea</strong>bass<br />
6 units<br />
Artemia, Rotifer<br />
12 units<br />
12 units ; Exp<strong>and</strong>able to another 12 units<br />
12 million fry of 25 mm size per fish seed annually<br />
10 million fingerlings of 100 mm per fish fingerling annually<br />
30 – 60 years
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> <strong>Grouper</strong> <strong>and</strong> <strong>Sea</strong> <strong>Bass</strong> Farming<br />
Proposed Hatchery Location for <strong>Grouper</strong> & <strong>Sea</strong>bass<br />
ZIA Permatang Pauh<br />
PKNP Tanjung Batu<br />
Agropolitan Tg Batu<br />
ZIA Tanjung Batu<br />
Agrobest Farm<br />
Proposed Hatchery Site<br />
ZIA Merchong
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> <strong>Grouper</strong> <strong>and</strong> <strong>Sea</strong> <strong>Bass</strong> Farming<br />
Grow-out Farm Investment for <strong>Grouper</strong><br />
Production of 3,700 tons of Tiger <strong>Grouper</strong> Annually<br />
Each of the proposed site could potentially produced 3,700 tons of Tiger<br />
<strong>Grouper</strong> Annually (4% of Fish Import in Hong Kong)<br />
To produce 3,700 tons fish require :-<br />
3,000 HDPE cages (6 x 6 m ; 4 m depth ; 1.2 ton/cage @ 65% survival rate)<br />
20 ha of sea surface area<br />
9.6 million of <strong>Grouper</strong> fingerlings (4”)
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> <strong>Grouper</strong> <strong>and</strong> <strong>Sea</strong> <strong>Bass</strong> Farming<br />
Grow-out Farm Investment for <strong>Sea</strong> <strong>Bass</strong><br />
Production of 3,000 tons of <strong>Sea</strong> <strong>Bass</strong> Annually<br />
Each of the proposed site could potentially produced 3,000 tons of <strong>Sea</strong> <strong>Bass</strong><br />
Annually<br />
To produce 3,000 tons fish require :-<br />
290 pond structure (4 ponds @ 1 ha ; 12.87 ton/ha @ 65% survival rate )<br />
145 ha of surface area<br />
10 million of <strong>Sea</strong> <strong>Bass</strong> fingerlings (4”)
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> <strong>Grouper</strong> <strong>and</strong> <strong>Sea</strong> <strong>Bass</strong> Farming<br />
Proposed Grow-out Farm Location<br />
Pulau Permatang Pauh,<br />
Pekan, Pahang – for <strong>Sea</strong> <strong>Bass</strong> Pond<br />
Gambang Halal Hub,<br />
Kuantan, Pahang<br />
(Processing)<br />
Merchong,<br />
Pekan, Pahang<br />
(Hatchery)<br />
Pulau Seribuat,<br />
Mersing, Johor – for <strong>Grouper</strong> Cages
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> <strong>Grouper</strong> <strong>and</strong> <strong>Sea</strong> <strong>Bass</strong> Farming<br />
Proposed Product for <strong>Grouper</strong> : Live <strong>Grouper</strong> Export<br />
Total Capital Investment of RM103 million <strong>and</strong> total annual Operating Cost of RM33mil.<br />
Estimated average annual revenue on total investment is RM35 million.<br />
FRESH WHOLE FISH<br />
SEAFOOD TRANSPORT BIN (STB)<br />
Export to Hong Kong & China (Live &<br />
Processed) <strong>and</strong> other global market
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> <strong>Grouper</strong> <strong>and</strong> <strong>Sea</strong> <strong>Bass</strong> Farming<br />
Proposed Processed Products for <strong>Sea</strong>bass : Fillet<br />
Total Capital Investment of RM102 million <strong>and</strong> total annual Operating Cost of RM28<br />
million a year. Estimated average revenue on total investment is RM23 mil a year.
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> <strong>Grouper</strong> <strong>and</strong> <strong>Sea</strong> <strong>Bass</strong> Farming<br />
<strong>Integrated</strong> Investment Opportunities for <strong>Grouper</strong> & <strong>Sea</strong>bass<br />
Fully <strong>Integrated</strong> Investment Development <strong>Proposal</strong><br />
Descriptions<br />
Capital Cost for Hatchery<br />
Capital Cost for Grow-Out<br />
Capital Cost for Fillet Processing<br />
Total Capital Investment*<br />
Results<br />
RM121 million<br />
RM120 million<br />
RM12 million<br />
RM300 million<br />
Internal Rate of Return (IRR) 61%<br />
Payback Period<br />
Net Present Value (NPV)<br />
1.6 years<br />
RM305 million<br />
Return on Investment (ROI) 12%<br />
*Inclusive of 1 st year working capital
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> <strong>Grouper</strong> <strong>and</strong> <strong>Sea</strong> <strong>Bass</strong> Farming<br />
Halal Collagen<br />
• Processing waste such as fish skins <strong>and</strong> scales could be transform into high<br />
value by-products such as Collagen.<br />
• Collagen is a protein used extensively in many applications including foods,<br />
health drinks, anti-aging products, cosmetics <strong>and</strong> pharmaceuticals<br />
• It improves skin strength <strong>and</strong> elasticity, strengthens blood vessels <strong>and</strong> tissue<br />
development.<br />
• Collagen has been widely used in cosmetic surgery, as a healing aid for burn<br />
patients for reconstruction of skin <strong>and</strong> a wide variety of dental, orthopedic <strong>and</strong><br />
surgical purposes.
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> <strong>Grouper</strong> <strong>and</strong> <strong>Sea</strong> <strong>Bass</strong> Farming<br />
Halal Collagen – Overview of Market Size<br />
Total world production of gelatin/collagen<br />
358,000 MT/year<br />
Europe supplying 48% (172,000 MT) <strong>and</strong> United States supplying 38% (136,000 MT)<br />
Current Halal gelatin/collagen producer – Pakistan<br />
this is only about 0.8% of world production<br />
3,000 MT/year<br />
Dem<strong>and</strong> of gelatin/collagen in Indonesia alone<br />
3,000 MT/year<br />
Based on world Muslim population, the market share of gelatin/collagen<br />
is about 17–20% of the world market or<br />
50,000 MT/year<br />
…..
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> <strong>Grouper</strong> <strong>and</strong> <strong>Sea</strong> <strong>Bass</strong> Farming<br />
Halal Collagen – Production<br />
Production from 3,000 ton of <strong>Sea</strong> <strong>Bass</strong> processed annually.<br />
Descriptions<br />
Farm Production<br />
Volume of fish skin & scales<br />
Production of Halal Collagen<br />
Halal Collagen Price<br />
Revenue<br />
Results<br />
3,000 ton of seabass fish<br />
180 ton (6% of seabass bodyweight)<br />
20 ton (15% yield from skin & scales)<br />
RM7,700 per kg (High Grade)<br />
RM1.54 million/year<br />
Potential Aquaculture Production in<br />
Malaysia (10% of 387,000 ton)<br />
Production of Halal Collagen<br />
Potential Revenue<br />
38,700 ton<br />
3,500 ton (6% of world halal collagen dem<strong>and</strong>)<br />
RM270 million/year<br />
…..
<strong>Business</strong> <strong>Proposal</strong><br />
<strong>Integrated</strong> Tilapia Farming<br />
45
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> Tilapia Production<br />
Global Tilapia Production <strong>and</strong> Dem<strong>and</strong> is High<br />
Tilapias are one of the most important<br />
farmed fish today.<br />
Expected to exceed 8.9 million tonnes by 2020.<br />
2000 sales = US$ 1,706,538,200<br />
2005 sales = US$ 2,457,312,000<br />
2010 sales > US$ 5,000,000,000<br />
FAO FishStat 2007
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> Tilapia Production<br />
Nile Tilapia (Oreochromis niloticus)<br />
Descriptions<br />
Specifications<br />
Species Scientific Name<br />
Common Name<br />
Oreochromis niloticus<br />
Nile Tilapia<br />
Reproduction<br />
Asynchronous breeders, spawning occurs<br />
throughout the year in the tropics, sexual<br />
maturity reached at 5-6 months in ponds<br />
Feedstock<br />
Growth Period to<br />
Market Size<br />
Sellable Weight<br />
Potential Export<br />
Market<br />
Ex-Wholesale Price<br />
per kg (Fillet)<br />
Formulated pellets<br />
5 – 6 months<br />
400 – 500 gram per piece<br />
Middle East, North Africa, USA, Europe,<br />
China<br />
RM 18.00 per kg | USD 5.50 per kg
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> Tilapia Production<br />
<strong>Integrated</strong> Value Chain for Tilapia Fillet<br />
Fully <strong>Integrated</strong> Value Chain Development Investment<br />
Investment in production<br />
of 135 million fingerlings<br />
annually<br />
Production of<br />
30,000MT Tilapia<br />
Fillet & other<br />
products<br />
FILLET &<br />
VALUE ADD<br />
MARKET<br />
HATCHERY<br />
HATCHERY<br />
GROW-OUT<br />
Export to Middle<br />
East, EU countries ,<br />
US <strong>and</strong> other global<br />
markets<br />
Investment 1,125 HDPE<br />
cages to meet the target<br />
production of 90,000MT<br />
of Tilapia fish annually<br />
PROCESSING<br />
Investment in Halal,<br />
HACCP & GMP Fish<br />
processing plant
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> Tilapia Production<br />
<strong>Integrated</strong> Investment for Tilapia Fillet<br />
Financial Indicators<br />
Descriptions<br />
Results (RM)<br />
+ Capital Cost for Hatchery 70.0 million<br />
+ Capital Cost for Grow-Out 285.0 million<br />
+ Capital Cost for Processing Plant 44.5 million<br />
= Total Capital Investment* RM 399.50 mil<br />
Internal Rate of Return (IRR) 27%<br />
Payback Period<br />
4.29 years<br />
Return on Investment (ROI) 14%<br />
*Excluding 1 st year working capital
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> Tilapia Production<br />
Tilapia Hatchery Investment<br />
Production of 135 million Tilapia Fingerlings (4”) Annually<br />
Descriptions<br />
Specifications<br />
Location<br />
L<strong>and</strong> Owner<br />
<strong>Integrated</strong> Facilities<br />
Culture System<br />
Water Source<br />
Fish Fry<br />
Production Capacity<br />
Fish Fingerling<br />
Production Capacity<br />
1. Sungai Camar, District Of Hulu Terengganu, Terengganu<br />
- Approximately 20 Ha<br />
2. Kg. Chapu, District Of Hulu Terengganu, Terengganu<br />
- Approximately 15 Ha<br />
State Government<br />
Water Intake, Hatchery, Nursery, Spawning Ponds, Workers<br />
Quarters, Discharge Pond, Treatment Pond, Reservoir, Office<br />
Flow Through System<br />
Fresh Water River<br />
135 million Fry of 25 mm Annually<br />
120 million Fingerlings of 100 mm Annually
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> Tilapia Production<br />
Proposed Hatchery Location<br />
Kg. Chapu<br />
Sg. Chamar
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> Tilapia Production<br />
Tilapia Grow-out Investment<br />
Production of 90,000 metric tonnes of Tilapia Annually<br />
Descriptions<br />
Specifications<br />
Location<br />
Sungai Como, Kenyir Lake, District of Hulu Terengganu,<br />
Terengganu (Designated as Aquaculture Industry Zone)<br />
Available Area<br />
L<strong>and</strong> Owner<br />
Culture System<br />
Supporting Equipments<br />
Water Source<br />
Fish Production<br />
Capacity<br />
Approximately 2,800 ha<br />
State Government<br />
HDPE Cage Culture System<br />
Barges, Crane<br />
Fresh Water River<br />
90,000 mt annually
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> Tilapia Production<br />
Grow-out Farm Investment<br />
To produce 90,000 mt of Tilapia require :-<br />
1,125 units of HDPE cages (20 m diameter)<br />
Each capable of producing 100 mt fingerlings per year<br />
20 units of cages per modules (Total 57 modules)
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> Tilapia Production<br />
Proposed Grow-out Farm Location<br />
Kenyir Lake, Terengganu
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> Tilapia Production<br />
Tilapia Processing Plant Investment<br />
Production of 30,000MT of Fillet Annually<br />
Descriptions<br />
Specifications<br />
i. Fish Processing Park, Kuantan, Pahang<br />
Location<br />
ii. Gambang Halal Hub, Pahang<br />
iii. Tok Bali <strong>Integrated</strong> Fisheries Park, Kelantan<br />
iv. Chendering Industrial Area, Terengganu<br />
<strong>Integrated</strong> Facilities<br />
Fillet Production<br />
Capacity<br />
SME processing units, sorting <strong>and</strong> distribution centre, col<br />
room, access roads, drainage system, electricity <strong>and</strong> water,<br />
etc.<br />
30,000 metric tonnes per year
<strong>Business</strong> <strong>Proposal</strong> : <strong>Integrated</strong> Tilapia Production<br />
Proposed Processing Plant Location<br />
Tok Bali <strong>Integrated</strong> Fisheries Park,<br />
Kelantan<br />
Chendering Industrial Area,<br />
Terengganu<br />
Gambang Halal Hub,<br />
Pahang<br />
Fish Processing Park,<br />
Kuantan, Pahang
<strong>Business</strong> <strong>Proposal</strong><br />
Halal Collagen – Production<br />
Production from 90,000 ton of Tilapia processed annually.<br />
Descriptions<br />
Farm Production<br />
Volume of fish skin & scales<br />
Production of Halal Collagen<br />
Halal Collagen Price<br />
Revenue<br />
Results<br />
90,000 ton of tilapia fish<br />
5,400 ton (6% of tilapia bodyweight)<br />
810 ton (15% yield from skin & scales)<br />
RM7,700 per kg (High Grade)<br />
RM6.24 million/year<br />
…..
<strong>Integrated</strong> Pineapple Plantation<br />
Investment Opportunity<br />
58
<strong>Integrated</strong> Pineapple Plantation Investment Opportunity<br />
- Opportunity in Pineapples<br />
TOP 5 IMPORTERS OF PINEAPPLES 2008<br />
Pineapples Import in MT<br />
Country 2008 2004 Percent Change<br />
1 United States 713,584 513,760 38.89%<br />
2 Belgium 309,156 213,551 44.76%<br />
3 Netherl<strong>and</strong>s 228,079 61,162 272.91%<br />
4 Germany 173,060 87,504 97.77%<br />
5 Italy 149,255 99,519 49.97%<br />
Sources: FAOSTAT data 2008 (last accessed Nov 24th, 2010)<br />
Pineapple output in 2008 was governed by Asia with a share of 49 percent of global<br />
production, followed by Latin America <strong>and</strong> the Caribbean (38 percent) <strong>and</strong> Africa<br />
(12 percent). Costa Rica was the world's number one exporter of fresh pineapples<br />
in 2008.
<strong>Integrated</strong> Pineapple Plantation Investment Opportunity<br />
- Project Location<br />
60<br />
ROMPIN, PAHANG<br />
TO BE DEVELOPED ON 2000<br />
HECTARES OF LAND<br />
INVESTMENT OPPORTUNITIES:<br />
• Upstream to downstream<br />
production<br />
• Production / Cultivation of Fresh<br />
Pineapple<br />
• Full export compliance<br />
• Meets Halal st<strong>and</strong>ards
<strong>Integrated</strong> Pineapple Plantation Investment Opportunity<br />
- Project Features<br />
61<br />
5,000 acres <strong>Integrated</strong> Plantations<br />
Large Scale Commercial<br />
Plantation<br />
50,000 mt/year<br />
Focus for Export Fresh Pineapple<br />
Markets<br />
55,000 mt of Fresh Pineapple<br />
Annually<br />
<strong>Integrated</strong> Collection, Processing<br />
& Packaging Centre (CPPC)<br />
5,000 acres <strong>Integrated</strong> Plantation
<strong>Integrated</strong> Pineapple Plantation Investment Opportunity<br />
- Project Financial Considerations<br />
Investment<br />
Investment Value<br />
(USD)<br />
IRR (%)<br />
Payback (Year)<br />
<strong>Integrated</strong> Pineapple<br />
Plantation<br />
• Pineapple productions<br />
from 5,000 acres of<br />
integrated plantations<br />
• Investment in Collection,<br />
Processing & Packaging<br />
Centre (CPPC).<br />
• Marketing, Export <strong>and</strong><br />
Distributions of Pineapple<br />
Produce.<br />
32.3 mil 10% 8 years
THANK YOU
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