1 financing jatropha development antonio tomás parsons cazenave & asociados s.a
TRANSCRIPT
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FINANCING JATROPHA DEVELOPMENT
Antonio Tomás Parsons
Cazenave & Asociados S.A.
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Our Approach on Financing Jatropha Development
1. A brief introduction on our company.
2. Our relationship with Jatropha
3. A cost benefit approach to financing Jatropha development.
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Founded in 1969
Cazenave Creates and Manages ag-industrial business.
Cazenave provides Managing, Consulting, product development and
Auditing Services to:
agricultural companies
ag- industries
banks
insurance companies
export firms
other ag-related companies
The Company
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CAZENAVE & ASOCIADOS S.A.
• FAID 2011
• FIDEIAGRO 2009
• Berries del NOA 2005
• Berries del NOA 2007
• High Oleic Sunflower
• SAMSA
• CA (SAMSA)
• Trigo Candeal. Molinos
• C&M
• Research and Development
• Patagonia Bioenergía
• Plant.a.Bío
•
• ASAP
• Institucionales
• Farm management
Commoditie Production Trust
Commoditie Production Trust
Bluberry Trust
Bluberry Trust
High Oleic Production Agreement with
Farmers.
Prod Girasol Alto Oleico Prod/Dow
Commodities Production for Glencore
Durum wheat production.
Seed Royaltie Management
Intersowing Canola and Soybeans
Biodiesel
Jatropha R&D and Management in
Brazil
Investment Projects
ASAGIR-MAIZAR-FPC (Crop
Associations)
Personel directly employed : 80 people
Invoicing: U$S / AÑO :337.420.000
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CAZENAVE & ASOCIADOS S.A.
Background: Cazenave & Asociados (CASA), one of PlantaBio founders, is a leading agribusiness management, consulting, and investment firm, established in 1969 in Buenos Aires, Argentina. With thirty eights years of experience in the agribusiness industry, CASA is a well recognized authority in the agribusiness field.
PHONEUTRIA BIOTECNOLOGIA. Genetics Company producing AND analysis reactives.
Lartirigoyen y Compañia Managing 130,000 hectares in Argentina. Edible Oil Production
Plant.A.Bio Lda
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Plant.A.Bio Lda.
A Company Located in Minas Gerais, Brazil.
Develops Jatropha Technology and Manages Plantations
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Project Location: Non edible crops area
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PATAGONIA BIOENERGIA Snapshot
Production Cost ComparisonOverview
Source: Credit Suisse estimates based on public company data and broker reports.
(US$ per ton)
$1,167$1,109
$1,019$1,006
$782
$357
Argentina Jatropha
Argentina Soy
U.S. Soy Malaysia Palm
Brazil Soy
EU Rapeseed
Patagonia Bioenergia S.A. (“PBE”) is a San Lorenzo, Argentina-based development-stage biofuels company
• 250,000 Mtons/year (MTPA) biodiesel plant currently under construction to come online by July 2008
• Expansion capacity of an additional 250,000 MTPA
Projected Jatropha plantation in Argentina and Paraguay: 40.000 ha.
Projected Jatropha plantation in Argentina and Paraguay: 40.000 ha.
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Patagonia Bioenergia and Jatropha
In order to ensure feedstock PBE has started a number of activities.
• Starting a Nursery and a collection of Jatropha curcas and macrocarpa from different provenances.
• Plans to plant, with Cazenave's assistance, 40,000 hectares in Argentina and Paraguay.
• Is working on agreements with farmers providing equity, not loans, and effectively assuring feedstock for the future.
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Financing Alternatives. A Cost Benefit Approach
Within the various financing alternatives that will benefit farmers, two approaches can be analyzed.
• Direct assistance providing seeds, agricultural chemicals, financing different costs and insuring a market for production.
• Developing improved genetic material, and superior crop husbandry practices.
A cost benefit analysis of each alternative will help to
establish priorities in the use of scarce available financing.
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FIRST YEAR - Year Six
Unidade Qtde Times/ha USD USD/ha USD/ha
Lime aplication USD/ha 1,00 41,00 41
Land Marking Labour Day 0,81 1,00 13,50 11
Digging piting Labour Day 3,12 1,00 13,50 42
Fertilizing Labour Day 1,78 1,00 13,50 24 24
Planting Labour Day 1,74 1,05 13,50 25
Spraying Labour Day 3,50 2,00 13,50 95 95
Lime kg 1000,00 1,00 0,09 90
Fertilizer Kg 150,00 1,00 0,45 68 68
Ant Killer Kg 6,00 1,00 5,30 32
Fungicide L 1,00 1,00 5,00 5 5
Insecticide L 1,00 1,00 15,00 15 15
Weeding Labour Day 3,12 3,00 13,50 42 42
Saplings Unid 1250,00 1,05 0,10 125
Harvest Hd 1,00 23,00 0 104
TOTAL Cost USD/ha 614 352
Yield Tons / ha 4,00
Price Usd/ Ton 140,00 140Income USD/HA 560Gross Margin USD/ha 208
Jatropha at 4 x 2 m Spacing Production Costs and Gross Margin
Production cost & Gross Margin
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Gross Margin Sensitivity Analysis
ITEM Var %
Expected Yield, Cost and Price 0
Yield Increase 50% 110
Price Increase 50% 80
Cost Decrease 50% 32
Gross Margin USD/ha
208
436
558
384
Jatropha Gross Margin Sensitivity Analysis
Yield and Price have, by far, a bigger impact on profit than direct costs.Since price is market dependant we must aim at improving yield.
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Impact Of Genetics & Crop Husbandry on Yield
How much help can we expect from genetics?• Experience shows us that with species with a
short history in genetic development, the impact of selecting superior individuals from existing populations is far superior than that obtained by applying conventional genetics to readily available materials.
• Exotic crops introduced to a production area rarely can show the genetic variation that can be found where the species is originated.
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A good example is the differences in yield potential found in 20 years Soybean variety releases in
Argentina, where soybean is not indigenous, (Ganancia Genética en
Soja en
Argentina entre 1980 y 2000, Diego Santos et all INTA Paraná May
2006), with those found in 60 Cristalino Colorado landraces
of the INTA Pergamino Germoplasm Bank in Argentina, (Estudio de Variabilidad en Poblaciones Nativas de Maíz. Rafael Defacio
et
all INTA, Pergamino Buenos Aires 2005), in South América where maize is indigenous. INTA: National Institute of Agriculture Technology
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•In soybeans these studies reported a 14,4 kg/ha per year yield increase due to genetics (0,7%), and a further 8,6 kg per year due to environment, mainly crop husbandry.
• In the 60 maize materials difference in yield were 470% (Maximum to minimum) with good climatic conditions, and 597% with adverse, dry, weather.
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• In Jatropha, large scale studies on yield due to genetic material and environmental conditions have yet to be developed.
• The scarce information at present available, indicates that important yield improvement could be obtained by selection and further genetic improvement.
• Scouting for different genetic material of an important number of provenances, is the first step towards obtaining superior individuals for immediate use through cloning and as a basis for a genetic improvement program.
• In Brazil Plant.a.Bio Ltda is developing a scouting program and in Argentina Patagonia Bioenergia is engaged in a similar one.
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• The results of these programs, and other similar ones, the world over, would be enhanced by adequate financing and cooperation among international organizations and national, public and private, research centers and companies.
• Seed and cuttings, certified free from diseases, must be readily available for private and public research institutes and companies.
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• Collections must be compared utilizing adequate tests with statistical analysis.
• Since Environment is responsible for great part of traits, a short cut in selection would be obtained by screening collection materials using molecular markers, in order to ensure diversity in compared materials.
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Some traits to be evaluated in collection trials
• Yield• Increased oil in percent of dry seed weight• Oxidative stability of the oil and the fruit• Oil composition and quality (cetane number, iodine value, • cloud point, saponification number, etc…)• Fruit and seed size• Branching patterns. • The existence of male sterile individuals.• Number of fruit per inflorescence• Number of inflorescence per plant• Diterpen phorbol esters content• Curcin content
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• Superior individual stock can be made available by cloning.
• Micropropagation, or tissue cultures, with the use of biorreactors would accelerate this process considerably.
• Training local personnel in the use of biorreactors and insuring the availability of adequate protocols will require financing.
• Plant.A.Bio’s tissue culture research is not at present complete and would benefit with agreements with other research centers.
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Once superior, genetically differentiated individuals, are detected and made
available to the scientific community, including private enterprise, conventional breeding programs can be developed from
an advantageous start point.
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Financing research on Jatropha crop husbandry, particularly on plant nutrition, would ensure sustainability and increase farmers income.
Item %Capsules 100 3930 5895 7860Seed 76 3000 4500 6000Water 0,8 to 6 134 200 267Nitrogen 6 236 354 472Phosphorous 1,13 44 67 89Potash 0,75 29 44 59Calcium 0,47 18 28 37Magnesium 0,78 31 46 61
Yield and nutrient extraction Kg/ha
Jatropha
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• Recycling expeller cake adequately treated and enriched with a limited amount of elements would insure plant nutrition at low cost- It is also a clear pathway to sustainable agriculture. (We would be “Exporting” about half of captured CO2, and none of the nonrenewable nutrients).
• The cost of replacing nutrients extracted by a six ton seed crop with conventional inorganic fertilizers is above 300 U$D/hectare.
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• Research on Arbuscular Micorriza Fungi. This agent contributes by increasing the roots ability to extract nutrients, like Phosphorous and Potassium, that otherwise would be in the soil in unavailable forms.
• In Brazil the inoculation of Jatropha with this symbiotic agent is at present under study. (Fungos Micorrízicos Arbusculares em Plantios de Pinhão Manso, Jatropha curcas L. A.M.X Carvalho. XXXI Congreso Brasileiro de Ciencia do Solo, 2007).
• In this report the author, as an antecedent leading to this study, quotes increases of 5% to 290% in yield of annual species, due to correct inoculation with Micorriza
Other research efforts, that, with the benefit of financing, would rapidly impact on improving farmers income
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Research efforts that, with the benefit of financing, would rapidly impact on improving farmers income
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Research on other simbiotic or non simbiotic bioprimers
and bioprotectors.
• Beauvaria sp.• Tricodermas,• Pseudomonas,• Azospirillum.
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Summary of Actvities with great potential of improving farmers wellbeing through financing.
• Scouting for superior materials.
• Ensuring availability of those materials to official and private research institutes and companies.
• Developing micropropagation tissue culture on a large scale.
• Development of environmental friendly plant nutrition.
• Working on symbiotic or non symbiotic microorganisms that favor plant nutrition and act as bioprotectors.
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FINANCING JATROPHA DEVELOPMENT
Scarce financial resources should preferably be allotted to research programs with greatest potential impact on farmers income and welfare.
Agreements among international financing agencies and official an private research centers and companies would benefit farmers through a reduction in time needed for research.
Agile and free circulation of information, technology and disease free certified genetic material will be conductive to obtaining results in a relatively short lapse of time.
