Having done our due diligence in Bolivia, Brazil, and Argentina, our business plan is to have multiple programs of farm leasing, ongoing brokering of shiploads of food, and the establishment of our own wholesale distribution centers in East Africa as well as in Europe and the Middle East.
The growing world population demands high quality food. We are seeking additional capital to expand our existing farming operations and are offering a guaranteed return for investors who will assist in “Helping Feed the World”.
While we sell anywhere one of our target markets are the Middle East, Middle East (Saudi Arabia, UAE, Qatar, and Oman). They import 70% – 90% of all of their food since they have little water or farmland and have growing. We buy directly from the farmers and sell directly to distribution systems eliminating most middlemen. This keeps us very competitive.
We are currently working with farmer groups in Bolivia to establish a proprietary five-year farm leasing program on each of their properties. These programs will pay back our up-front lease payments over the course of the lease and we will own the harvest for five years. Consorcio Agroforestal SA shall sell the harvest at a price that we can set to be competitive in the world market. For instance, we currently can sell high-quality alfalfa hay to the Saudi Arabian Dairy business for a price below that which they are paying today to Spain. They import all their hay since a 2016 government ban on pumping irrigation water for hay production in Saudi Arabia and UAE.
In Bolivia, we currently produce 6 million metric tonnes of Supreme alfalfa hay per year on the leased farms. Bolivia has a 365-day growing season, abundant water, and fertile land. Crops are harvested at least twice a year, and often three times a year versus only one harvest in the temperate Northern Hemisphere. The local farmers are missing the necessary capital to expand their agricultural businesses. Consorcio Agroforestal SA knows all the costs and already has farmers eager to participate in this program. Our analysis anticipates the Internal Rate of Return will be greater than 35% because we own the crop.
Ongoing Brokerage of Shiploads of Food
We are working with parties in Africa that purchase our products with ongoing contracts. We deliver the products direct from the farmer to the buyer. Since we have re-negotiated with the source, we receive an excellent commission. That profit goes directly to Denarios and it will increase the Denarios value. There is no investment cost on this transaction.
For example, a restaurant chain will be buying raw (paddy) rice and parboiling it for their market and chain of restaurants. This processing plant will need 60.000 metric tonnes of rice over a twelve-month period. We will add a significant part of commission on this product to Denarios. There is no investment cost on this transaction.
Proposed Wholesale Distribution in East Africa
Consorcio Agroforestal SA is opening a wholesale food warehouse in Mombasa Kenya, an old friend of 23 years was the Import/Export manager for Rwanda before 1994. He wants to return and represent Consorcio Agroforestal SA in Kenya, Rwanda, Uganda, Tanzania. The business plan calls for a wholesale food warehouse in Mombasa. We will supply food from South America at our cost plus 25% in container lots, and this will be sold in that region on a wholesale/retail basis. The plan is to grow the business, with Denarios supplying the wholesale product indefinitely.
Consorcio Agroforestal SA is working with a supplier of railroad ties (sleepers)in South America for the delivery of more ties than the current amount. His construction project is already underway and should be finished in nine months. At the moment the supplier does not have adequate cash flow or capital. Since the local banks charge high interest rates and are not likely to loan for this purpose Consorcio Agroforestal SA assist in this matter. This potential loan with an excellent return is subject to our being able to use Denarios revenues.