INDUSTRY | FUNDING OPPORTUNITY | PROPERTY SIZE |
Agroindustrial | $12M USD | 10,000 Acres |
Executive Summary: This overview outlines the strategy for purchasing and cultivating a 10,000-acre plot of land in Barahona, Dominican Republic. Our objective is to cultivate organic grains and soybeans for both local consumption and export to US clients. The land is virgin and has been untouched for over 7 years, allowing us to certify it as USDA organic from day 1. Holistic Solutions Dominicana S.R.L. has partnered with the Ministry of Agriculture to roll out the first-ever national regenerative agriculture program. Through this partnership, we have established the country's first and only Dominican Soybean Association and Dominican Grain Association.
Aside from soybeans, we will also grow organic corn, organic sorghum, and organic peanuts. We will empower co-ops and private growers by providing them with technical assistance, organic seeds, and organic inputs to meet USDA and international quality standards. By our second year, we forecast an estimated production of 30,000 tons annually. We will utilize regenerative farming practices to produce higher quality crops and reduce our environmental impact. Our market research indicates a strong demand for organic crops both domestically and internationally, and we will position ourselves to capture a significant share of this market.
Market Analysis: Organic farming is becoming more popular as consumers become increasingly health-conscious and concerned about the environmental impact of conventional agriculture. This trend has been ongoing for the past decade and is expected to continue in the coming years. The United States is the largest market for organic crops, with a market size of over $50 billion. In addition to the US market, there is also a growing demand for organic crops in the Dominican Republic, driven by the rising awareness of the benefits of organic food among consumers. This presents a significant opportunity for Holistic Solutions Dominicana S.R.L. to cultivate organic grains and soybeans for both local consumption and export to US clients. We are well-positioned to meet this growing demand for organic crops and make a positive impact on the environment and public health.
Competitive Analysis:
We will face some competition from international producers. However, since there is almost zero local competition - more than 95% of soybeans are imported into the D.R. - we are poised to
capture a significant portion of the market share. Additionally, due to the Dominican Republic's close proximity to North America, we have an advantage with reduced transport costs when exporting to customers in the U.S. and Canada. We will further differentiate ourselves by using regenerative farming practices and producing higher quality crops that are rising in demand globally by consumers seeking non-gmo products.
Operations Plan: We will implement regenerative farming practices and utilize crop rotation, cover crops, and natural pest control, to cultivate organic soybeans, as well as organic corn, sorghum, and peanuts. These practices will not only produce higher quality crops but will also improve soil health and reduce our environmental impact. We will use modern technology, such as precision farming and irrigation systems, to optimize crop yields and minimize water usage. We will hire a team of experienced farm managers and workers to oversee the day-to-day operations of the farm.
Marketing Strategy: We will target both domestic and international markets. As part of our distribution strategy, we will target soybean and grain traders in the Dominican Republic and internationally. We will work to establish relationships with these traders to ensure a steady flow of sales and income for our farm. To achieve this, we will leverage our partnership with the Ministry of Agriculture to create networks and connections within the industry. We will also attend industry events and trade shows to connect with traders and buyers in the soybean and grain market. Furthermore, we will establish a reliable and efficient supply chain for the delivery of our products to these traders, both domestically and internationally. This will include investing in transportation and logistics infrastructure to ensure timely delivery and high-quality handling of our organic crops. Ultimately, our goal is to establish ourselves as a trusted and reliable supplier of high-quality organic commodities to traders and buyers in the Dominican Republic and beyond.
Financial Plan: The total cost of establishing operations is estimated at $12 million, including land acquisition, equipment, and operating expenses for the first year. We will fund the business through a combination of equity and debt financing. We project revenue of $34.5 million in the second year, with a net profit of $6.5 million. Our revenue will be generated through the sale of organic crops to both domestic and international customers. We will also explore the possibility of value-added products, such as organic soybean oil, organic peanut-butter and organic cornmeal.
Conclusion:
Our organic crop program in Barahona, Dominican Republic, has significant potential for success in both domestic and international markets. We will use regenerative farming practices and modern technology to create a profitable and environmentally friendly business. We will also establish long-term relationships with customers who value high-quality organic crops. With the right team and resources, we are confident in our ability to achieve our objectives and create a tremendously successful business.