Derris Indica
Derris Indica
Moringa-Oleifera
Simarouba
Citrullus Colocynthis
Moringa-Oleifera
Moringa-Oleifera
Moringa-Oleifera
Moringa-Oleifera
Moringa-Oleifera
ECONOMICS: JATROPHA FUEL FARMING

Of course the interest in the Jatropha plantation primarily focuses on Biodiesel. Here, the key question is: Will it be possible to establish the right cultivation and processing methods so that the Jatropha plant can produce a high-quality fuel which can compete with petrochemical diesel in terms of price? After all, one key element that makes all the difference between success and failure is the cost factor — in other words, the potential returns.

We are not in favor of the implementation of a high-tech agrarian concept that warrants for maximum input and delivers bumper crops. Contrary, we are looking for a practicable type of cultivation that is compatible with the routines and possibilities of local farmers, so that the Jatropha plantations can be profitable for the rural cultivators with a minimum input of men, money and materials.

The CJP experts working on the Jatropha plantation have developed the best method of cultivating these plants, which require the lowest possible investment of money, labor and materials.

Yield is a function of light, water, nutrients and the age of the Plant. Good planning, quality planting material, standardized agronomy practices and good crop management may handsomely increase the yields

ASSUMPTIONS FOR COST/BENEFIT ANALYSIS 

  • Though Jatropha starts yielding from very first year, we have taken no yield for 1st and 2nd year just to ensure proper pruning and development of the plant
  • Crop density with 2mx2m pattern shall be 2500 plants per ha
  • Seeds tonnage per ha has been taken 0,0, 2.5, 5.0, 6.25, 9.6 for 1, 2, 3, 4, 5, and 6th year respectively
  • Intercropping has been presumed for 30% of plantation area
  • CDM calculation has been taken as minimum for +1000 ha plantation
  • Sale price of seeds has been taken on lowest side
  • Rate of interest has been taken as 9% per annum for 5 years
MODEL 1: 20 ha JATROPHA - PLANTATION

OUTPUT  
Crop yield $ 21000
INPUTS  
CAPITAL  
Crop Cultivation cost $ 13000
OPERATING COST  
Crop harvest cost $ 3200
MAINTENANCE COST  
Crop care cost $ 3080
REVENUE $ 14720**
  *(in 5th year)


MODEL 2: 100 HA PLANTATION
US$ ‘January, 2009

Year 2010 2011 2012 2013 2014 2015 2016
TOTAL HECTARES 100 100 100 100 100 100 100
Total no. of Jatropha Plants     250000 250000 250000 250000 250000
Production of Jatropha seeds (in ton)     250 500 625 962.5 962.5
PRICES              
Price per TON of Jatropha Seeds (in US$)     140 140 140 140 140
SALES              
Jatropha Seeds     35000 70000 87500 134750 134750
INTERCROP   3000 3000 3000 3000 3000 3000
Total Sales 0 3000 38000 73000 90500 137750 137750
Cost of Sales              
CAPITAL COST 68000            
Operative Expenses 30000 9600 24550 32300 36175 46637.5 46637.5
Maintenance Expenses   4000 4100 4200 4400 4600 4600
Total cost of Sales 98000 13600 28650 36500 40575 51237.5 51237.5
PBT -98000 -10600 9350 36500 49925 86512.5 86512.5
Depreciation              
Interest Expenses              
NET PROFIT -98000 -10600 9350 36500 49925 86512.5 86512.5



MODEL 3: 1000 HA PLANTATION
US$ ‘January, 2009

Year 2010 2011 2012 2013 2014 2015 2016
TOTAL HECTARES 1000 1000 1000 1000 1000 1000 1000
Total no. of Jatropha Plants     2500000 2500000 2500000 2500000 2500000
Production of Jatropha seeds (in ton)     2500 5000 6250 9625 9625
PRICES              
Price per TON of Jatropha Seeds (in US$)     140 140 140 140 140
SALES              
Jatropha Seeds     350000 700000 875000 1347500 1347500
Carbon Trading (in US$)   20000 20000 20000 20000 20000 20000
INTERCROP 30000 30000 30000 30000 30000 30000 30000
Total Sales 30000 50000 400000 750000 925000 1397500 1397500
Cost of Sales              
CAPITAL COST 681250            
Operative Expenses 177600 62400 180900 258400 297150 374650 374650
Maintenance Expenses   40000 41000 42000 44000 46000 46000
Administrative+ OH Expenses 10000 10000 10000 10000 10000 10000 10000
Total cost of Sales 868850 112400 231900 310400 351150 430650 430650
PBT -838850 -62400 168100 439600 573850 966850 966850
Depreciation   2500 2500 2500 2500 2500 2500
Interest Expenses   90000 90000 90000 90000    
NET PROFIT -838850 -154900 75600 347100 481350 964350 964350


MODEL 4: 10000 HA PLANTATION
US$ ‘January, 2009

Year 2010 2011 2012 2013 2014 2015 2016
TOTAL HECTARES 10000 10000 10000 10000 10000 10000 10000
Total no. of Jatropha Plants 25000000 25000000 25000000 25000000 25000000 25000000 25000000
Production of Jatropha seeds (in ton) 25000 50000 70000 96250 96250
PRICES              
Price per TON of Jatropha Seeds (in US$)   $140 $140 $140 $140 $140
SALES              
Jatropha Seeds     $3, 500,000 $7, 000,000 $9, 800,000 $13, 475, 000 $13, 475, 000
Carbon Trading (in US$) $200,000 $200,000 $200,000 $200,000 $200,000 $200,000
INTERCROP   $1, 050,000 $1, 050,000 $1, 050,000 $1, 050,000 $1, 050,000 $1, 050,000
Total Sales   $1, 250,000 $4, 750, 140 $8, 250, 140 $11, 050, 140 $14, 725, 140 $14, 725, 140
Cost of Sales              
CAPITAL COST $7, 162, 500            
Operative Expenses $442, 400 $81, 600 $720, 600 $1, 220, 600 $1, 620, 600 $2, 145, 600 $2, 145, 600
Maintenance Expenses   $800,000 $800,000 $800,000 $800,000 $800,000 $800,000
Administrative+ OH Expenses $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000
Total cost of Sales $7, 704, 900 $981, 600 $1, 620, 600 $2, 120, 600 $2, 520, 600 $3, 045, 600 $3
, 045, 600
PBT ($7, 704, 900) $268, 400 $3, 129, 540 $6, 129, 540 $8, 529, 540 $11, 679, 540 $11, 679, 540
Depreciation   $6, 000 $6, 000 $6, 000 $6, 000 $6, 000 $6, 000
Interest Expenses   $764, 000 $764, 000 $764, 000 $764, 000 $764, 000 $764, 000
NET PROFIT ($7, 704, 900) ($501, 600) $2, 359, 540 $5, 359, 540 $7, 759, 540 $10, 909, 540 $10, 909, 540

For Detailed Financial Analysis Kindly Obtain Our JATROPHA FARMING BUSINESS PLAN FOR 20 HA, 100 HA, 1000 HA, AND 10000 HA
For further enquiry kindly contact:
Director
Business Development, C J P

 
   
About Jatropha plant | Jatropha plantation | Intercropping | Economics | Indian Program | Bio Diesel | Publication | Our Network | Recommend Us
Newsletter | Bookmark | About Us | Services | Products | Contact Us | Home| Global Algae World India | Latest Training Courses | Site Map