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Ubuntu Ltd

Rice ProjectBela Vista - 5’000 hectares

Mozambique

Filipe Gago & C. van der Linden15 July 2008

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1 - Executive summary

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1 - Executive Summary

PROJECT: The establishment of a Joint Venture between LAP (Suisse) SA and the local company Ubuntu Lda able to start to cultivate 5’000 hectares in order to produce and distribute 40’000 Tons of Chinese Hybrid Rice over the next 60 months, covering a substantial part of the needs of the Mozambique market.

Second phase – purchase and processing of rice from the local agricultures

Third phase – extension of rice cultivation to 15’000 hectares.

TIME FRAMEWORK: A Preliminary Program will be submitted four (4) weeks after signing the final Contract.

PRICE: The study has been based on:           

ACTUAL market price : 5% broken usd 1’100.00 / ton25% broken usd 1’000.00 / tonincluding : Import duties – 7.5% + Other fees –

6%       

SALES price to distributors centers usd 40.00 / 50 kg bag       

FINANCIAL INDICATORS :

Total Investment I & II : 33 MUSD

IRR Project: > 40 %

Payback Period: less than 5 years from date of commercial launching

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2 – Project Overview

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2 – Project Overview

• Ubuntu Ltd owns a Land Concession of 15’000 hectares in the prime area of Bela Vista - Mozambique, part of the old colonial rice farms, and wishes to reactivate them and create new livelihoods, food security and prosperity in the rural community of Bela Vista - Mozambique.

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2 – Project Overview

• Libya Africa Portfolio (LAP) wishes to contribute to the development of African countries by participating technically and/or financing projects identified as essential.

• Both parties wish to develop and consolidate the fraternal relations between the Great Jamahiriya Arab Libyan Popular and Socialist and the Republic of Mozambique.

• A Joint Venture between both parties will allow massive rice production in Mozambique covering initially 10’000 hectares, 10 to 25% of the local population needs, in a short period of time estimated up to twenty four months.

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2 – Project Overview

Project Impact

The global project will cover 100% of the Mozambique population rice needs and have the following impacts:

– Reduction in need for food relief and imported goods– Reduction in poverty– Reduction in unemployment.– Reduction in malnutrition– Creating a mechanism for food export.– Impulse to economic activity– Positive impact on security / stability– Social upliftment..

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4 - World Rice Market Basics

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4 - World Rice Market Basics

• About 90% of the World’s Rice is Produced in Asia

• Over ½ in a band from Pakistan, South and East through the Philippines

• Highly dependent on the timing of the Asian monsoon

• Most is consumed where it is produced

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4 - World Rice Market Basics

Thailand30%

Vietnam18%

United States12%

India4%

Pakistan10%

China8%

Other18%

“The Global Rice Export Market is Highly Concentrated”

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4 - World Rice Market Basics

“Rice Import Market Less Concentrated, but Segmented”

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6 - Milling Rice Processing

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6 - Milling Rice Processing

Paddy Intake

Paddy Cleaning

Hulling the Paddy

Paddy Separation

De-Stoning Polishing

Sifting or separation of white rice

Rice Mixing

Grading or length separation

Mist Polishing

Rice Weighing

• Remove the husk and the bran layers • Produce whole white rice kernels that are :sufficiently milled, free of impurities

and minimum number of broken kernels

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6 - Milling Rice Processing

Paddy Intake:

– Quality input = quality output– Garbage in = garbage out!

Paddy intake chute Rice pre-cleaner

Paddy Cleaning:

After harvest, foreign matter can be as high as 5-10%

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6 - Milling Rice Processing

Hulling the Paddy:

– Husks account for 20% of paddy weight

– Rubber roller huskers are widely used

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6 - Milling Rice Processing

Paddy Separation:

– Removal of paddy and husk from brown rice– Sieve or gravity separator

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6 - Milling Rice Processing

De-stoning:

– Paddy will contain small stones and debris– Debris must be removed before polishing

Removed debris

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6 - Milling Rice Processing

Polishing:

– Removes bran layer to produce white rice. – Amount of bran removed (usually 8-12%) is called Milling Degree.

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6 - Milling Rice Processing

Sifting or Separation of White Rice:

– After polishing, white rice contains:• Head rice• Large brokens• Small brokens

– The white rice is separated using a Sifter

Rotary Seiver

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6 - Milling Rice Processing

Grading or Length Separation:

• After polishing, white rice contains– Head rice (75% of whole kernel is present)– Large brokens– Small brokens

Rotary sieves

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6 - Milling Rice Processing

Rice Mixing:– An efficient rice mill will produce:

• 50% head rice (whole kernels)• 5-15% large broken and • 5-15% small broken kernels

– Depending on the country’s standards, rice grades in the market will contain from 5-25% broken kernels.

Variable speed motors allow the mill operator to mix the appropriate amount of whole kernels with large and small brokens.

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6 - Milling Rice Processing

Mist Polishing:– Adds luster, or polished appearance.

Mist Polisher (Water)

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6 - Milling Rice Processing

Rice Weighting:

– Rice is normally sold in 50 kgsacks which must be accuratelyweighed and labeled.

Bag filler and weighing

scales

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6 - Milling Rice Processing

Rice Physical characteristic Percentage

Paddy 100

Husk 20

Brown rice 80

MealPericarp and testa (5-6%)Aluerone (1%)Embryo (3%)

8-10

White rice 70-72

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6 - Milling Rice Processing

Rice Chemical Characteristics:

  Brown rice

White rice Bran

Moisture content (%)

13-14 13-14 13-14

Starch (%)

Amylose

68-70 80 9

28-30 33 6

Protein (%) 6-8 6-7 14

Fat 3 1 20

Fiber 2-3 0.5 25

Crude ash 1-1.5 0.5 9-10

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6 - Rice Milling Processing

Rice Bran Oil:

• Rice bran contains three different kinds of natural antioxidants

• Rice bran oil is widely used in hair conditioners, skincare and sunscreen products

• Rice Oil is mostly used for mixing with other types of Kitchen oil – Mozambique offers ample opportunities for this oil consumption