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1 www.codevasf.org.br
Investment Opportunity in Lemon in the Valley of the São Francisco River
INTEGRATED SUSTAINABLE BUSINESS PROJECT
2 www.codevasf.org.br
Project Team
PRESIDENT OF THE REPUBLIC MINISTER OF NATIONAL INTEGRATIONLuiz Inácio Lula da Silva Geddel Vieira Lima
CODEVASF DIRECTORY
President: Orlando Cezar da Costa Castro
Cabinet Chief: Manoel Geraldo Dayrell
Director of the area of Integrated Development and Infra-Structure: Clementino Souza Coelho
Executive Secretary: José Eduardo Borella
Director of the area of Irrigation Companies Management: Raimundo Deusdará Filho
Executive Secretary: Frederico Calazans Machado
Director of the Area of Hydrografic Basins Revitalization: Jonas Paulo de Oliveira Neres
Executive Secretary: Silas Macedo
Executive Manager of Strategic Administration: Alexandre Isaac Freire
Executive Secretary of Administrative Management and Logistic Support: João Honório Carvalho Ramos
3 www.codevasf.org.br
Agenda
• Introduction
• Business Model
• Profitability Analysis
• Irrigation Projects (CODEVASF)
4 www.codevasf.org.br
INTRODUCTION
• Project DescriptionThe project is a governmental initiative, aiming to attract investments to the Valley of the São Francisco River (web page:http://www.fundace.org.br/pins).
• PENSAAgribusiness Intelligence Center. PENSA researchers are responsible for the business models proposition, economic and marketing analysis and for interacting with potential investors tailoring the analysis to their particular needs (web page: http://www.pensa.org.br).
• CODEVASFSão Francisco and Parnaíba Development Company, which the mission is to develop economically and socially the Valley of the São Francisco and Parnaiba Rivers (web page : http://www.codevasf.gov.br).
5 www.codevasf.org.br
Global Lemon Demand
• From 1990 to 2005, world consumption growth was 73,26%.
Source: FAO.
Why investing in Lemon Production?
World Lemon Demand from 1990 to 2005
6,5
8
6,8
9 7,0
8
7,5
2
7,8
1
8,1
0 8,3
4
8,6
5
9,1
4
9,5
7
10,
07
10,
46
10,
87 11,
12 11,
32
11,
39
6,00
7,00
8,00
9,00
10,00
11,00
12,00
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Ano
Mil
lio
n t
on
s
6 www.codevasf.org.br
Global Lemon Demand
• The Brazilian lemon exports growth in the same period was an impressive 3,3371.11%.• In the last couple of years, despite de dollar currency value has decreased (16%), it also increased its total
financial value. (84,38%).
Source: FAO
Why investing in Lemon Exports?
Lemon and Limo Exports from 1996 to Oct-20070
,76
0,9
1
1,4
2 2,9
6 4,6
4
7,6
4
9,8
9
16,
95 18,
30
26,
30
33,
74
32,
91
-
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Ano
Ex
po
rts
(in
mil
lio
ns
US
$ F
OB
)
7 www.codevasf.org.br
Why Investing in Lemon in the Valley of the São Francisco River?
• Selling opportunities in market windows, mainly regarding São Paulo
region (from July to December);
• low incidence of fungus;
• Lower occurrence of plagues and diseases;
• Higher yields with irrigation;
• Climate conditions favor product standardization;
• Land availability;
• Growth of international demand;
8 www.codevasf.org.br
Business Model
Sales Contracts
Vertically Integrated Area: 36 haGrowers Area : 216 ha – Quasi-Integration Contracts
Packing House (PH) +
Cooperative
Contract to
PH
Growers Cooperative
Grower (36 Ha)
Vertically Integrated PH
(36 ha)
Grower (36 Ha) Grower (36 Ha)
Grower (36 Ha) P Grower (36 Ha)
Grower (36 Ha)
9 www.codevasf.org.br
Coordinated Growers Cooperative Anchor Company Infra-Structure Firm
-Producing lemon contracted with the Agricultural Anchor, following agreed quality standards;
- Implementing on farm irrigation systems;
- Coordination of small holders;
- Technical assistance;
- Joint use of equipments;
- Joint purchase of selected inputs;
- Representation of small holders;
- The right to use the land will be conceded to selected growers;
- Sustainable contracts with selected coordinated growers;
- Determination of quality standards;
- Packing or industrialization of raw material;
- Marketing;
- Payment of the water to the water management firm;
- Farming on its own area;
-Supplying water for irrigation at the right quality and quantity;
- Maintenance of the common infra structure for irrigation;
Players’ Role Specification
10 www.codevasf.org.br
Agric Production Processing Plant
LEMONEconomic Analysis
Processing Plant
Inputs
Investments
Graphs
Processing Cash Flow
Detailed Cost
Results and Cash Flow
Cash Flow
Detailed Cost
Agric Cost
Consolidated Cash Flow
Consolidated Analysis
Growers
Anchor Firm
Standard Sheets for Economic Analysis
11 www.codevasf.org.br
Assumptions – Packing house (along with agricultural production)
• Exporting 3 containers/week;• Average production capacity:
– Vertically integrated area: 36 ha => 33,969.77 (box of 27,5 Kg);– Small holders : 216 ha => 203,818.61 (box of 27,5 Kg);– Current processing capacity : 291,000 box per year.
• PH will be built during the orchards implementation; • 20-year project;• Packing House Investment: R$ 960,000.00 (100% own capital);• Average cost per box: R$ 10.72;• Product destination: 35% external market, 55% internal market and 10% of losses;• Average selling price:
– US$ 8,97/box of 4.5 Kg (external market); – R$14,91/box of 27.5 Kg (internal market);
• Exchange Rate: US$ 1 = R$1.85;
12 www.codevasf.org.br
Economic Analysis
PACKING HOUSE – Annual Turnover
$14,85 $14,85 $14,85 $14,85 $14,85 $14,85 $14,85 $14,85 $14,85 $14,85 $14,85 $14,85 $14,85 $14,85 $14,85 $14,85 $14,85 $14,85 $14,85 $14,85
$0,00
$2,00
$4,00
$6,00
$8,00
$10,00
$12,00
$14,00
$16,00
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Years
Tu
rno
ver
(Mill
ion
US
$)
Source: PENSAExchange Rate: 1 US$ = R$ 1.85
13 www.codevasf.org.br
PACKING HOUSE – Deailed Costs
$0,00
$2,00
$4,00
$6,00
$8,00
$10,00
$12,00
$14,00
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Ano de investimento
Mill
ion
US
$
Investment Cost of Lemon bought from growersIrrigation Freights Finantial expenses Taxes Labor
Economic Analysis
Source: PENSAExchange Rate: 1 US$ = R$ 1.85
14 www.codevasf.org.br
NPV PACKING HOUSE
Project pays back is on January of the second year, It reaches a NPV of around R$30 million.
Accumulated NPV
$5.000,00
$0,00
$5.000,00
$10.000,00
$15.000,00
$20.000,00
$25.000,00
$30.000,00
$35.000,00
jan/1
3
jan/0
1
jan/0
2
jan/0
3
jan/0
4
jan/0
5
jan/0
6
jan/0
7
jan/0
8
jan/0
9
jan/1
0
jan/1
1
jan/1
2
jan/1
4
jan/1
5
jan/1
6
jan/1
7
jan/1
8
jan/1
9
jan/2
0
Months
NP
V (
Mill
US
$)
Return on InvestmentJan/02
Economic Analysis
Source: PENSA Exchange Rate: 1 US$ = R$ 1.85
15 www.codevasf.org.br
Accumulated NPV For The PACKING HOUSE - Without Agricultural Production
Packing House project has its pay back on the fourth operating month, when analyzed without the vertically integrated agricultural production.
R$ (5,000,000.00)
R$ -
R$ 5,000,000.00
R$ 10,000,000,00
R$ 15,000,000.00
R$ 20,000,000.00
R$ 25,000,000,00
R$ 30,000,000.00
R$ 35,000,000.00
R$ 40,000,000.00
R$ 45,000,000.00d
ez/
00
de
z/0
1
de
z/0
2
de
z/0
3
de
z/0
4
de
z/0
5
de
z/0
6
de
z/0
7
de
z/0
8
de
z/0
9
de
z/1
0
de
z/1
1
de
z/1
2
de
z/1
3
de
z/1
4
de
z/1
5
de
z/1
6
de
z/1
7
de
z/1
8
de
z/1
9
de
z/2
0
Months
NP
V in
US
$)
April/01
Economic Analysis
Source: PENSA Exchange Rate: 1 US$ = R$ 1.85
16 www.codevasf.org.br
Sensitivity Analysis
PACKING HOUSE
Criteria Color
< R$ 0.0 Red
R$0,00 -R$ 5 Million Orange
> R$ 5 Million Blue
Inter. Price (R$/box27,5 kg) 3,00 4,00 5,00 6,00 7,00 8,00 9,00 10,00 11,00 12,00 13,00 14,00 15,00 Average12,50R$ (38,51)R$ (27,83)R$ (17,16)R$ (6,48)R$ 4,19R$ 14,87R$ 25,54R$ 36,22R$ 46,89R$ 57,57R$ 68,24R$ 78,92R$ 89,59R$ 25,54R$ 13,00R$ (37,72)R$ (27,05)R$ (16,37)R$ (5,70)R$ 4,98R$ 15,65R$ 26,33R$ 37,00R$ 47,68R$ 58,36R$ 69,03R$ 79,70R$ 90,38R$ 26,33R$ 13,50R$ (36,94)R$ (26,26)R$ (15,59)R$ (4,91)R$ 5,76R$ 16,44R$ 27,11R$ 37,79R$ 48,46R$ 59,14R$ 69,81R$ 80,49R$ 91,17R$ 27,11R$ 14,00R$ (36,16)R$ (25,48)R$ (14,81)R$ (4,13)R$ 6,54R$ 17,22R$ 27,90R$ 38,57R$ 49,25R$ 59,92R$ 70,60R$ 81,27R$ 91,95R$ 27,90R$ 14,50R$ (35,37)R$ (24,70)R$ (14,02)R$ (3,35)R$ 7,33R$ 18,00R$ 28,68R$ 39,36R$ 50,03R$ 60,71R$ 71,38R$ 82,05R$ 92,73R$ 28,68R$ 15,00R$ (34,59)R$ (23,91)R$ (13,24)R$ (2,56)R$ 8,11R$ 18,79R$ 29,46R$ 40,14R$ 50,82R$ 61,49R$ 72,16R$ 82,84R$ 93,51R$ 29,46R$ 15,50R$ (33,81)R$ (23,13)R$ (12,46)R$ (1,78)R$ 8,89R$ 19,57R$ 30,25R$ 40,92R$ 51,60R$ 62,28R$ 72,95R$ 83,62R$ 94,30R$ 30,25R$ 16,00R$ (33,02)R$ (22,35)R$ (11,67)R$ (1,00)R$ 9,68R$ 20,35R$ 31,03R$ 41,70R$ 52,38R$ 63,06R$ 73,73R$ 84,40R$ 95,08R$ 31,03R$ 16,50R$ (32,24)R$ (21,57)R$ (10,89)R$ (0,21)R$ 10,46R$ 21,14R$ 31,81R$ 42,49R$ 53,16R$ 63,84R$ 74,51R$ 85,19R$ 95,86R$ 31,81R$ 17,00R$ (31,46)R$ (20,78)R$ (10,11)R$ 0,57R$ 11,24R$ 21,92R$ 32,60R$ 43,27R$ 53,95R$ 64,62R$ 75,30R$ 85,97R$ 96,65R$ 32,60R$ 17,50R$ (30,67)R$ (20,00)R$ (9,32)R$ 1,35R$ 12,03R$ 22,70R$ 33,38R$ 44,05R$ 54,73R$ 65,41R$ 76,08R$ 86,76R$ 97,43R$ 33,38R$ 18,00R$ (29,89)R$ (19,22)R$ (8,54)R$ 2,14R$ 12,81R$ 23,49R$ 34,16R$ 44,84R$ 55,51R$ 66,19R$ 76,86R$ 87,54R$ 98,21R$ 34,16R$ 18,50R$ (29,11)R$ (18,43)R$ (7,76)R$ 2,92R$ 13,59R$ 24,27R$ 34,95R$ 45,62R$ 56,30R$ 66,97R$ 77,65R$ 88,32R$ 99,00R$ 34,95R$ 19,00R$ (28,32)R$ (17,65)R$ (6,97)R$ 3,70R$ 14,38R$ 25,05R$ 35,73R$ 46,40R$ 57,08R$ 67,76R$ 78,43R$ 89,11R$ 99,78R$ 35,73R$ 19,50R$ (27,54)R$ (16,87)R$ (6,19)R$ 4,49R$ 15,16R$ 25,84R$ 36,51R$ 47,19R$ 57,86R$ 68,54R$ 79,21R$ 89,89R$ 100,56R$ 36,51R$ 20,00R$ (26,76)R$ (16,08)R$ (5,41)R$ 5,27R$ 15,94R$ 26,62R$ 37,30R$ 47,97R$ 58,65R$ 69,32R$ 80,00R$ 90,67R$ 101,35R$ 37,30R$
Média (32,63)R$ (21,96)R$ (11,28)R$ (0,61)R$ 10,07R$ 20,75R$ 31,42R$ 42,10R$ 52,77R$ 63,45R$ 74,12R$ 84,80R$ 95,47R$ 31,42R$
NPV ValueExporting Price US$/box of 4,5 Kg)
Source: PENSAExchange Rate: 1 US$ = R$ 1.85
17 www.codevasf.org.br
Assumptions – Growers
• Average Yields: 1,235 boxes of 27.5 Kg/year (36 ha);
• 20-year project;
• Investment in Agricultural production: – R$ 623,075.84 (100% own capital);
• Irrigation Investment: – R$ 542,255.30 (1005 financed);
• Product destination: 100 % to the PH;
• Average selling price : R$10.72/box of 27.5 Kg;
• Exchange rate (R$/US$): R$1.85;
18 www.codevasf.org.br
Price Sazonalities
Price received by Lemon Growers from 2001 to Out/2007.
R$ 0.00
R$ 5.00
R$ 10.00
R$ 15.00
R$ 20.00
R$ 25.00
R$ 30.00
R$ 35.00
R$ 40.00
R$ 45.00
R$ 50.00
Jan Fev Mar Abr Mai Jun Jul Ago Set Out Nov Dez
Months
Pri
ce p
er B
OX
of
27,5
Kg
2001 2002 2003 2004 2005 2006 2007
Source: PENSAExchange Rate: 1 US$ = R$ 1.85
19 www.codevasf.org.br
Lemon Growers Production
Year- -
790,
57
1.18
5,85
1.58
1,14
1.97
6,42
1.97
6,42
1.97
6,42
1.97
6,42
1.58
1,14
1.18
5,85
988,
21
- -
790,
57
1.18
5,85
1.58
1,14
1.97
6,42
1.97
6,42
1.97
6,42
-
500.00
1,000.00
1,500.00
2,000.00
2,500.00
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Year
Nu
mb
er o
f b
oxe
s o
f 27
,4 K
g
Economic Analysis
Source: PENSA
20 www.codevasf.org.br
Lemon Production Cost for the Growers
Annual Production Cost
R$ -
R$ 50,00
R$ 100,00
R$ 150,00
R$ 200,00
R$ 250,00
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Year
Co
sts
(Th
ou
s R
$)
Production Cost Irrigation Cost Freight Cost Financial Cost Taxes
Economic Analysis
Source: PENSAExchange Rate: 1 US$ = R$ 1.85
21 www.codevasf.org.br
Financial Analysis
Source: PENSA
Agricultural Production
(size of 36 ha)Packing House
(with ag. production)Packing House
(without ag. product)
Consolidated Analysis
IRR: 20.56 % IRR: 126.37 % IRR: 492.51 % IRR: 66.90 %
NPV: R$ 360,000.00 NPV: R$ 30,799,101.38 NPV: R$ 41,178,272.11 NPV: R$ 32,959,101.38
Exchange Rate: 1 US$ = R$ 1.85
22 www.codevasf.org.br
Grower Profit
Growers
Annual revenue per farm R$ 17,100.00
Payments for the loan to implement the irrigation equipment (8 years)
(R$ 1,871.02)
Cash Flow
Adjustment
First 2 years Need to complement the growers profit to make the project sustainable for them too.
23 www.codevasf.org.br
Comparative Analysis
Implementation Costs
R$ 1.487,00R$ 728,00
R$ 1.487,00R$ 728,00 R$ 1.115,25
R$ 983,00 R$ 983,00
R$ 478,00R$ 737,25
R$ 14.820,00
R$ 894,00
R$ 16.824,28
R$ 2.088,00
R$ 16.128,00
R$ 965,00
R$ 9.676,80
R$ 546,00
R$ 380,25
R$ 507,00R$ 507,00
R$ 358,50R$ 185,25
R$ 247,00R$ 478,00
R$ 247,00
R$ 2.898,28R$ 2.898,28
R$ 894,00R$ -
R$ -
R$ -
R$ 579,00R$ 345,00
R$ 575,00
R$ 851,00
R$ 461,00
R$ -
R$ 5,000.00
R$ 10,000.00
R$ 15,000.00
R$ 20,000.00
R$ 25,000.00
R$ 30,000.00
R$ 35,000.00
R$ 40,000.00
Year1 Year 2 Year 3 Year 1 Year 2 Year 3 Year 1 Year 2 Year 3
SP with no irrigation SP with irrigation São Francisco River Valley
Inve
stm
ent
(R
$/h
a)
Mechanical Operations Labor Irrigation Ag inputs
Total = R$ 10,541.00 Total = R$ 41,417.00 Total = R$ 37,567.10
Source: PENSA Exchange Rate: 1 US$ = R$ 1.85
24 www.codevasf.org.br
Growers Cash Flow
Cash Flow
R$
(372
.860
,85)
R$
(250
.214
,99)
R$
12.0
38,1
9
R$
65.4
24,2
5 R$
212.
803,
34
R$
360.
182,
43
R$
360.
182,
43
R$
360.
182,
43
R$
298.
107,
41
R$
150.
728,
32
R$
3.34
9,23
R$
(70.
340,
32)
R$
(372
.860
,85)
R$
(250
.214
,99)
R$
12.0
38,1
9
R$
65.4
24,2
5 R$
212.
803,
34 R$
360.
182,
43
R$
360.
182,
43
R$
360.
182,
43
R$ (500,000.00)
R$ (400,000.00)
R$ (300,000.00)
R$ (200,000.00)
R$ (100,000.00)
R$ -
R$ 100,000.00
R$ 200,000.00
R$ 300,000.00
R$ 400,000.00
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Years
Mill
ion
R$
Source: PENSA Exchange Rate: 1 US$ = R$ 1.85
Economic Analysis
25 www.codevasf.org.br
Growers NPV
Return on investment happens at the 8th year.
R$ (800,000.00)
R$ (600,000.00)
R$ (400,000.00)
R$ (200,000.00)
R$ -
R$ 200,000.00
R$ 400,000.00
R$ 600,000.00ja
n/01
jan/
02
jan/
03
jan/
04
jan/
05
jan/
06
jan/
07
jan/
08
jan/
09
jan/
10
jan/
11
jan/
12
jan/
13
jan/
14
jan/
15
jan/
16
jan/
17
jan/
18
jan/
19
jan/
20
Years
Val
ue
R$
Set/08
Economic Analysis
Source: PENSA Exchange Rate: 1 US$ = R$ 1.85
26 www.codevasf.org.br
Sensitivity Analysis
Growers - NPV
Criteria Color
< R$ 0,00 Red
R$0,00-R$ 0,36 Milhões Orange
> R$ 0,36 Milhões Blue
Yields (t/ha) 6,00R$ 7,00R$ 8,00R$ 9,00R$ 10,00R$ 11,00R$ 12,00R$ 13,00R$ 14,00R$ Average30 (0,67)R$ (0,57)R$ (0,47)R$ (0,37)R$ (0,27)R$ (0,17)R$ (0,07)R$ 0,03R$ 0,13R$ (0,27)R$ 31 (0,65)R$ (0,54)R$ (0,44)R$ (0,34)R$ (0,23)R$ (0,13)R$ (0,03)R$ 0,08R$ 0,18R$ (0,23)R$ 32 (0,63)R$ (0,52)R$ (0,41)R$ (0,31)R$ (0,20)R$ (0,09)R$ 0,01R$ 0,12R$ 0,23R$ (0,20)R$ 33 (0,61)R$ (0,50)R$ (0,39)R$ (0,28)R$ (0,17)R$ (0,06)R$ 0,05R$ 0,16R$ 0,27R$ (0,17)R$ 34 (0,59)R$ (0,48)R$ (0,36)R$ (0,25)R$ (0,13)R$ (0,02)R$ 0,09R$ 0,21R$ 0,32R$ (0,13)R$ 35 (0,57)R$ (0,45)R$ (0,34)R$ (0,22)R$ (0,10)R$ 0,02R$ 0,13R$ 0,25R$ 0,37R$ (0,10)R$ 36 (0,55)R$ (0,43)R$ (0,31)R$ (0,19)R$ (0,07)R$ 0,05R$ 0,17R$ 0,29R$ 0,41R$ (0,07)R$ 37 (0,53)R$ (0,41)R$ (0,28)R$ (0,16)R$ (0,03)R$ 0,09R$ 0,21R$ 0,34R$ 0,46R$ (0,03)R$ 38 (0,51)R$ (0,38)R$ (0,26)R$ (0,13)R$ (0,00)R$ 0,13R$ 0,25R$ 0,38R$ 0,51R$ (0,00)R$ 39 (0,49)R$ (0,36)R$ (0,23)R$ (0,10)R$ 0,03R$ 0,16R$ 0,29R$ 0,42R$ 0,55R$ 0,03R$ 40 (0,47)R$ (0,34)R$ (0,20)R$ (0,07)R$ 0,06R$ 0,20R$ 0,33R$ 0,47R$ 0,60R$ 0,06R$ 41 (0,45)R$ (0,31)R$ (0,18)R$ (0,04)R$ 0,10R$ 0,24R$ 0,37R$ 0,51R$ 0,65R$ 0,10R$ 42 (0,43)R$ (0,29)R$ (0,15)R$ (0,01)R$ 0,13R$ 0,27R$ 0,41R$ 0,55R$ 0,69R$ 0,13R$ 43 (0,41)R$ (0,27)R$ (0,12)R$ 0,02R$ 0,16R$ 0,31R$ 0,45R$ 0,60R$ 0,74R$ 0,16R$ 44 (0,39)R$ (0,24)R$ (0,10)R$ 0,05R$ 0,20R$ 0,34R$ 0,49R$ 0,64R$ 0,79R$ 0,20R$ 45 (0,37)R$ (0,22)R$ (0,07)R$ 0,08R$ 0,23R$ 0,38R$ 0,53R$ 0,68R$ 0,83R$ 0,23R$ 46 (0,35)R$ (0,20)R$ (0,04)R$ 0,11R$ 0,26R$ 0,42R$ 0,57R$ 0,73R$ 0,88R$ 0,26R$ 47 (0,33)R$ (0,17)R$ (0,02)R$ 0,14R$ 0,30R$ 0,45R$ 0,61R$ 0,77R$ 0,93R$ 0,30R$ 48 (0,31)R$ (0,15)R$ 0,01R$ 0,17R$ 0,33R$ 0,49R$ 0,65R$ 0,81R$ 0,97R$ 0,33R$ 49 (0,29)R$ (0,13)R$ 0,04R$ 0,20R$ 0,36R$ 0,53R$ 0,69R$ 0,85R$ 1,02R$ 0,36R$ 50 (0,27)R$ (0,10)R$ 0,06R$ 0,23R$ 0,40R$ 0,56R$ 0,73R$ 0,90R$ 1,07R$ 0,40R$
Average (0,47)R$ (0,34)R$ (0,20)R$ (0,07)R$ 0,06R$ 0,20R$ 0,33R$ 0,47R$ 0,60R$ 0,06R$
Price paid to the contracted Grower (R$/box of 27,5 kg)
Source: PENSA Exchange Rate: 1 US$ = R$ 1.85
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– The regional production is focused on Mangos, Grapes and Banana. Therefore diversification is very important;
– Investment in the local economy of around R$ 24 million has a very positive effect on local development;
– Job generation: 2 jobs/ ha is expected in lemon production areas;
– Agricultural jobs:• 580 directed employed people;• 856 indirectly employed people;• Packing house will employ around 40 people;
– Tax Generation:• City taxes = R$ 0.44 Millions;• State Taxes = R$ 1.99 Millions;• Federal taxes R$ 1.94 Millions;• Total = R$ 4.38 Millions.
– Extra Revenues for Ag input Firms: R$ 2.13 Millions;– Extra Revenues for Logistics Firms: R$ 2.78 Millions;
Benefits for the Social and Economic Development
28 www.codevasf.org.br
Responsible Team
CODEVASF
Director of the area of Integrated Development and Infra-Structure
Clementino de Souza Coelho
Board Assistant of the area of Integrated Development and Infra-Structure
Alvane Ribeiro Soares
First Secretary of the area of Integrated Development and Infra-Structure
Guilherme Almeida Gonçalves de OliveiraPENSA
Coordinator: Prof. Dr. Marcos Fava NevesExecutive Manager of the Project: Luciano Thomé e CastroExecutive Manager of the Project : Ricardo Messias RossiExecutive Assistant of the Project : Vinicius Mazza da SilvaExecutive Assistant of the Project : Marina Darahem Mafud
Technical TeamResponsible Researcher: Matheus Kfouri MarinoAssistant Researcher: Christiano França da CunhaContributor: Renata A. P. Fonseca
Translation: Central de Traduções
29 www.codevasf.org.br
For further Information:
E-mail: [email protected]
Mail Address:Av. Pres. Vargas, 2001- Conj. 143/144, Jardim AméricaRibeirão Preto - SP - CEP: 14.020-260Tel.: +55 (16) 3911 6088
INTEGRATED SUSTAINABLE BUSINESS PROJECT