can qatar start a new industry of leafy-vegetables farming to reach to its self-sufficiency...

8/11/2019 Can Qatar Start a New Industry of Leafy-Vegetables Farming to Reach to Its Self-Sufficiency 20140822.pdf

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Can Qatar Start a New Industry of leafy-Vegetables Farming to Reach to Its Self-Sufficiency?

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Can Qatar Start a New Industry of

Leafy-Vegetables Farming to Reach to Its

Self-sufficiency?

.

August 22, 2014

Contact Dr. Allen Lang, Peter Teng

SpeedyGreen, Inc.

Telephone+86-186-5526-9911

[email protected]


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Qatar is an Arabian country, located at Qatar peninsula on the southwest side of Persian Gulf,

neighboring Saudi Arabia and UAE.

Qatar weathers in hot tropical-zone dessert, with sandy land, high temperature in summer and

is with very limited rainfall (average precipitation of 125mm only). Qatar is not suitable for producing

vegetables on its land. Although there are a few local farms which can produce some vegetables in

the winter time inside greenhouses, but the volume produced are only 3% of the total vegetables

consumption, far from meeting the needs of the 2 million residents in Qatar. Therefore, Qatar relies

on foreign imports for 97% of its vegetables demands. Most of them are air-shipped from far-away

countries.

According to the report of Qatars Consumer Protection Division of Commerce Department, the

Central Wholesale Market of Qatar, in the month of June, 2013, imported 19,767 tons of vegetables.

Due to the heavy dependency on foreign imports and high cost of air-cargo shipping, shortage of

supply is frequently fluctuating local vegetables prices. Qatars residents are suffering not only with

the high vegetable prices, also with lacking of freshness of the vegetables available.

With Qatars richness in wealth, and its anxiousness of finding solution of providing fresh

vegetables to its local consumers, there is a genuine need of mass-production vegetable factories

with modern technology to overcome its natural deficiency of producing vegetables.


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Can Qatar start a new industry to produce leafy-vegetables to supply to its own local market? If

succeeded, it would mean that Qatar can cut its foreign imports of leafy-vegetables of 48,000 tons a

year, or 240 million USD a year. In additions, residents in Qatar will enjoy fresh leafy-vegetables ontheir local market.

We mentioned before that Qatar is very rich in natural gas resources and provides very

low-cost electricity. So, what Qatar really needs, is mass-production-type and efficiently-designed

Hydroponic Vertical Farming Factories of leafy-vegetables.With Qatars advantages in low-cost

electricity, such factories can mass-produce leafy-vegetables with low-cost. Vegetables produced

can be sold to the local market replacing the imported and non-fresh leafy-vegetables. A new and

environmentally-friendly leafy-vegetables farming industry can be started in Qatar.

What is the mass-production-type and efficiently-designed Hydroponic Vertical Farming Factory

of leaf-vegetables?

Following graph shows a well-designed hydroponic vertical farming factory

of leafy-vegetables, when its demanding requirements are met, can turn

vegetables

Seeds

into

Gold

.

A magic to turn seeds into gold

Hydroponic Vertical Farming, in recent years, causes a lot of confusions for investors in this

field. Due to that multiple technologies are involved with high complexity in its design, many

hydroponic vertical farming factories with different approaches are introduced and experimented.

Some are very good for demonstration of this technology, but not practically-designed to meet


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mass-production requirements. Some can handle mass-production of vegetables, but fail to make

profitability on its operation. To perform the magic we mentioned, we need a properly-designed

hydroponic vertical farming factory that make sense and is efficient enough to generate profitability.

Author-designed hydroponic vertical farming factory of leafy-vegetables, we believed its

operation can be profitable when it is built and operated in Qatar.

Why author-designed factory is well-designed and its operation potentially is profitable, and

other hydroponic factory failed to generate profitability? Let us analyze the requirements of the

hydroponic farming factory that can generate profitability in Qatar (for easy of explanation, let us use

lettuce productionas the production type):

1. It has to perform mass-production of leafy-vegetables: author-designed 1530 factory,

can produce at least 1 million heads of lettuce a year. Without this kind of mass-production

capability, reaching Qatars self-sufficiency seems impossible. A same-size factory that

can produce less than 10% of this quantity of vegetables will not be cost-effective to

generate profitability as well as meeting the markets demand on vegetables quantity.

2.

Its source of energy required has to be what Qatar can offer: Since Qatar can provide

low-cost electricity, this factory should be designed to only draw on electricity, not on other

resources which Qatar cannot provide. A factory that demands large amount of fresh water,

land and high-skilled labor which Qatar cannot offer is not qualified. Author-designed

factory relies heavily on the drawing of large amount of electricity but demands very little on

other sources. This is quite matched with Qatars reality.

3.

It should utilize Hydroponic Vertical Farming: Vertical Farming saves land-usage and

makes control of the environment easier and more cost-effective. Profitability of the

factorys operation relies on these savings. Author-designed 1530 factory provides

3-layer-structure on its working space, forming the storage of total of 273 seedbeds (4.3M

X 1.72M) with accumulated growing space area over 2100 . This type of Hydroponic

Vertical Farming factory is what Qatar really needs.

4. It should be designed with Automated-Moving- Seedbeds- System: once we go with

Vertical Farming, the multi-layer vegetables growing space structure prohibited

human-handling of any production processes. We need an automated system to transfer

the growing units (seedbeds) to a working space area for handling and processing.

Author-designed factory is designed with such an automated system with streamline-style

production line operation.


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5.

It should utilize

Multi-Stage-Transplanting-Method

traditional land-growing-method

designates a fixed fully-grown-vegetable-size area for growing vegetable from seed to

harvestable-stage. While Multi-Stage-Transplanting-Method designates different areas to

grow sprouts arranged in different density to optimize the usage of growing area. Andtransplanting of sprouts from high density area to lower density area is performed at end of

each growing stage cycle. Mathematic calculation proves that this method can grow 2.5

times more vegetables than the traditional method. However, due to the large of

transplanting action of sprouts from stage to stage is needed, this method can only be

easily implemented on Vertical Farming Factory with

Automated-Moving- Seedbeds-

System. Instead of performing transplanting during each end of stage time, Vertical

Farming Factory with automated moving seedbed system averages out all the

transplanting work on a daily processing basis. With Vertical Farmings increasing

production quantity efficiency by the number of layers in the vertical structure, and the

Multi-Stage-Transplanting-Method increasing production quantity efficiency by 250%, the

total combined production quantity efficiency can reach 6-10 times verses the traditional

growing method on a non-vertical farming way. That is why author-designed 1530

factory can produce more than 1 million heads of lettuces a year.

6.

It should utilize industrial streamline-style production: The traditional agriculture-style

production is a style that farm workers roaming around the whole growing space area

performing production-related work. This is wasteful as well as non-effective. The industrial

streamline-style utilizes production line setup for workers to stay at the side of it and

perform the necessary handling and processing. Therefore, author-designed hydroponic

vertical farming factory of leafy-vegetables is designed with separated growing space and

working space. Plus the

Automated-Moving- Seedbeds- System

is designed to allow farm

works to stay on the side of the production line in the working space and the robotic

vehicles are used to transfer the need-to-be-processed seedbeds to the production line.

This set-up increases the production efficiency and cuts down the wastes in labor and cost

as well.

7. It should be installed inside a sealed industrial workshop building: glass greenhouse is not

well-insulated which increases the cooling cost in the case of Qatars hot summer

temperature. Also, glass greenhouse costs more to build than the simple industrial

workshop building. All of these contribute to saving of costs, therefore, increasing of

profitability. Author-designed factory utilizes industrial workshop building, not glass

greenhouses for saving costs as well as the total controllability of vegetables growing

environment.


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8.

It should utilize automated recycling-irrigation system:water-saving is important in place

like Qatar. Author-designed factory is installed with such a computer-controlled recycling

irrigation system. A hydroponic NFT method is used.

9.

It should utilize automated LED illumination system:Qatar can provide low-cost electricityand this will not be a major expense for our factorys operation. Author-designed factory is

installed with such a computer-controlled LED illumination system.

10. It has to generate profitability on its operation in Qatar: For any hydroponic factory that

requires governmental subsides to operate is not qualified to help Qatar reaching its

self-sufficiency of leafy-vegetables production. Author-designed factory built and operated

in Qatar can produce annual ROI of more than 40%. The Profit & Lose Statement is

provided at the latter part of this article.

So, Qatar has a unique opportunity: to build and operate our highly-efficient and

mass-production-type factories in Bahrain, enjoying the low cost of electricity, and produce large

quantity of fresh leafy-vegetables to its local market.

Analysis of Qatar

s capability to meet the profitability requirements on

building and operating an author-designed hydroponic vertical farming

factory of leafy-vegetables:

First, we analyze on the cost of electricity. Hydroponic Vertical Framing Factory of

leafy-vegetables requires large consumption of electricity. For author-designed 1530 factory, it

consumes 1.25 million KWH for LED illumination a year, and 0.75 million KWH for building heating

or cooling cost for maintaining consistent temperature of 25-30C year-round. Total consumption of

electricity can reach 2 million KWH a year when heating/cooling of the workshop space is needed.

For comparison, we look at different places on the world for their cost of electricity (assumed that all

LED illumination & heating is all done by electricity), and the total cost of electricity of our factory

operating there:

Cost of Electricity Electricity Cost Operating Our Factory

Qatar 0.014/KWH 28,000/per year(cooling required)

Bahrain 0.028/KWH 56,000/per year(cooling required)

Iceland 0.040/KWH 50,000/per year(no heating/cooling)


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China 0.100/KWH 200,000/per year(cooling required)

USA 0.075/KWH 150,000/per year(cooling required)

Japan 0.230/KWH 460,000/per year(cooling required)

Nordic Europe

continent Countries

0.400/KWH 500,000/per year(no heating/cooling)

From the above chart we found that, Qatars electricity cost is the lowest among world countries.

The low-cost of electricity in Qatar drives the total cost of the operation of our factory down. The total

cost of electricity of operating our factory is only $56,000 a year.

If the cost of total consumption of electricity is low, then the profitability of the author-designed

factory depends on the Incomeside of the balance sheet, i.e., the wholesale price of the vegetables

produced. The wholesale price is used to calculate the total income of its operation, and it, in terms,

depends on the retail-price of the vegetables on local market.

Following chart shows the market retail-price of one head of 200g lettuce from different locations on

the globe (information from website NUMBEO.COM under Cost of Living Lettuce per Head):

For one head of lettuce (200g) Market Retail-Price

China 0.75

Qatar 1.60 1.80

Bahrain 1.70 - 1.90

USA 1.00 - 2.00

Japan 1.80 - 2.80

Nordic Europe Continent Countries 2.10 - 2.80

Iceland 2.90

3.10

Author-designed hydroponic leafy-vegetable factory can produce high profitability for local


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farmers in Qatar because its local market prices of vegetables are very high. Our standard 1530

factory can produce roughly 1 million heads of lettuce per year (200g Lettuce production is used as

example). With wholesale price of $1.1 per head, or $5.5 per Kg, it can generate $1.1 million USD

income a year. Minus all expenses (including depreciation), the ROI is 40%-50% a year on the totalinvestment of 1.55 Million USD. (We will show, in the end of this article, the Profit & Lose Statement

of the author-designed factory, built and operated in Qatar).

Qatar has a population of only 2 million.If we take a look at the nearby island country of Bahrain,

we will find that it has a very similar situation as that in Qatar. Bahrain cannot produce enough

land-grown vegetables for its 1 million residents and also relies heavy on imports of vegetables from

other countries. The market prices of vegetables are also very high. Therefore, the combined

vegetables-consuming population is 3 million when we include Bahrain. When we calculate the

Profit & Lost Statement, we use a wholesale price of $1.1 per head of lettuce. This price is a

reasonable wholesale price so that we can export vegetables produced to Bahrain and the final

retail-price is still be competitive there.

So, this provides Qatar with a unique opportunity: we can build and operate our factories in

Qatar, enjoying the low cost of electricity, and produce large quantity of fresh leafy-vegetables to its

local market as well as export to Bahrain. Will our vegetables produced be still fresh after shipping

from Qatar to Bahrain by ocean-freight? The answer is Yesdue to that hydroponically-produced

vegetables are harvested with roots not cut. Vegetables are still alive after harvesting. With proper

packaging, their freshness can be maintained with 3-5 days of shipping on the ocean and on the

continent land.

We now look at some possible scenarios in Qatar and each with the statistics it may generate:

If 240 of our factories are built and operated within 5 years in Qatar, following will be the

statistics it may generate by using lettuce production as an example:

Total Amount of Investment: 372 million USD in 5 years

Total Lettuce Produced: 48,000 tons per year after all factories are built

Total of Vegetables Trade Imports Saved (with wholesale price of $5.5/Kg): 264 million

USD per year after all factories are built

A realistic schedule to reach this goal will be: to build 4 pilot factories in 2015, and 60

factories each year 2016-2019

Qatar will reach to its self-sufficiency of leafy-vegetables production in 5 years


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If 360 of our factories (fulfills the whole market size of Qatar and Bahrain) are built and operated

within 7 years in Qatar, following will be the statistics it may generate by using lettuce production as

an example: Total Amount of Investment: 558 million USD in 7 years

Total Lettuce Produced: 72,000 tons per year after all factories are built

Total of Vegetables Trade Imports Saved (with wholesale price of $5/Kg): 240 million USD

per year after 240 factories are built

Total Trade Export to Bahrain Incomes Generated: 132 million USD per year after all

factories are built

A realistic schedule to reach this goal will be: to build 240 factories in 2015-2019, and 60

factories each year from 2020-2021

Qatar will reach to its self-sufficiency of leafy-vegetables production as well exporting

produced-vegetables to Bahrain

Now, we come back to look into the author-designed hydroponic vertical farming factory of

leafy-vegetables, and see why it is efficiently-designed and practically-operable for high profitability.


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Author-designed Hydroponic Vertical Farming Factory of leafy-vegetables:

a well and efficiently designed hydroponic vertical farming factory of leafy-vegetables built inside an

industrial workshop building

Our fully-automated mass-production vegetables-growing system is built inside a completely

enclosed industrial workshop building. This automated system is called Automated

Multi-Layer-Moving-Seedbed System. Our standard factory requires only a space of 1530 . A

WorkingSpace (or Headhouse) of 30M X 12.5M with flowing-lines of working benches, allows

movable seedbeds to flow through there during daily work is performed by workers waiting inside. A

large Growing Spaceof 38.5M X 30M with 3 layers of 7 growing-lines of shelving on each layer

forms a 3D shelving space for storing 273 movable seedbeds (growing units, 4.3M X 1.72M each).

Total actual growing area reaches 2100 .

Multi-Stage-Transplanting-Growing-Method is used. Seeds are prepared and sent inside a Spouting

Room to grow into sprouts. Then all sprouts are washed and planted into the seedbeds designed to

grow into 4X4 c sprouts. After 4X4 c sprouts are grown, they are transferred to seedbeds

designed to grow into 7x7 c sprouts. After 7x7 c sprouts are grown, they are transferred to

seedbeds designated to grow into 14X14 c full-size harvestable vegetables. This is the optimal

way to grow the maximum amount of vegetables. Also, we turn the 20-days-a-time transplanting into

daily routing operations. Same routine procedures are executed daily seedbed by seedbed along

with daily harvesting of fixed number of seedbeds of fully-grown vegetables. The whole production

becomes year-round non-stop operation with daily routine procedures. This averages out the sparse

labor and procedural requirements into daily work, and makes the best usage of man-power as well

as the ease of execution.


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TwoRobotic-Vehiclesare used for shuttling movable seedbeds between Workshop and Growing

Space. Workers perform work on the seedbeds flowed inside Workshop and never step into

Growing Space.

Our product can produce massive quantity of leafy-vegetables with low-cost.For growing lettuce as

an example, in Qatar, this factory can produce 1 million heads or 200,000 Kg of lettuces a year. It is

a completely self-supplied factory (all stages of sprouts are produced internally) requiring only

vegetable-seeds as its production source. Electricity is required to light up LED lighting and liquid

fertilizer and water is required for irrigation. It required limited resource on land. It does not generate

pollutant substances and is very environmental-friendly.

The reasons that our factory matches with Qatars conditions perfectly because:

1) The major cost of operating our hydroponic vertical farming system is the cost of electricity. Our

standard 1530 factory requires 1.25 million KWATS of electricity to provide LED lighting.

Qatar provides extremely low cost on electricity. Its electricity cost ($0.014/KWATS), is 1/7 to

China, 7% comparing to Japan, 3.5% comparing to Norway, Denmark, Finland and Sweden.

Our hydroponic vertical farming system basically utilizing Qatars low-cost electricity to turn

seeds into leafy-vegetables.

2) With Qatars high demands and high price on fresh leafy-vegetables, our factory can obtain

handsome profits by operating it in Qatar.

3) Our vegetable factory requires only vegetable-seeds as its source and is fully self-supplied with

self-grown sprouts and strong-sprouts. Once the factory is built and operation started, no

imports materials other than vegetables-seeds are required.

4) Our vegetable factorys operations are simple and standardized. Only one computer operator is

required with certain computer knowledge and all other daily tasks done by the workers are

routine and repetitive. Workers can be trained easily with no prior experiences required.

5)

Any local farmer invested in building and operating our leafy-vegetable factory can result in high

profits. And ROI of factory can be as high as 40-50.5 annually. They can recover their full

investment within two and a half years.

Authors Hardware Know-how

1.

Growing Units-Movable Seedbeds design where germchits, strong-sprouts and

leafy-vegetables are grown. They are stored in the 3-D Growing Space while lighting and


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irrigation are performed daily until growing-cycle is completed.

2.

WorkingSpace (Headhouse) design Harvesting/Packaging/Shipping; Planting Seeds,

Transplanting Germchits/SproutsTwo robotic-vehicles are used to shuttle movableseedbeds between Workshop and Growing Space. Workers are waiting inside here to

perform works daily on the seedbeds retrieved from Growing Space. Then, newly planted

seedbeds are shuttled from Workshop into the Growing Space.

3.

Robotic-Vehicles designtwo robotic-vehicles are used. One for delivering newly planted

seedbeds from Workshop into Growing Space, one for retrieving ready-to-process

seedbeds from Growing Space to Workshop.

4.

3-Dimentional Shelving Space for all movable Seedbeds design

A.

3-layers shelving structure

B. 7 movable Seedbeds flowing lines on each layer

C. 13 movable Seedbeds can be stored and flowed on each flowing line

D. Automated Irrigation System designRecycled Nutrient Liquid are stored in tanks and

daily irrigation is performed automatically by computer-control schedule. A hydroponic

NFT method is implemented.

E.

Automated LED Lighting System design: LED lighting are installed on top of every

movable seedbeds on the shelving. Daily lightings are performed by computer-control

schedule.

Authors Software Know-how

1. Computer operated software for delivering and retrieving movable seedbeds

2.

Recipes for nutrient solutions for different kinds of leafy-vegetables

3.

Recipes for lighting schedule for different kinds of leafy-vegetables

4.

Recipes for handling Seed-to-Germchit, Germchits-to-StrongSprout,

StrongSprout-to-Vegetable for different kinds of leafy-vegetables

5. Providing detailed processing notes for growing vegetables on different stage

6. Providing detailed information on harvesting, packaging and shipping processing

7. Assurance on the mass-production on the leafy-vegetable requested by the customers

8. Proving consultation on developing new leafy-vegetables production

Photos of Author-designed factory


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To calculate the Total Number of Lettuces produced annually in our

factory:

With actual data collected in a in the author-designed factory in 2012-2013, we provide heads oflettuces that a 1530 sq. meters factory that can be produced annually:

System Configurations and production statistics:

Total of Growing Units: 273

Each Growing Units size: 4.3M X 1.73M

Cost of industrial workshop build: $250,000

Cost of Hydroponic Vertical Farming System installed inside: $1.3 Million.

System has a Germination Room to produce initial-sprouts (2cmX2cm-size) from

vegetable-seeds daily with 14 days of growing cycle. 4950 initial-sprouts (2cmX2cm-size) can

be produced daily.

System utilizes 26 growing units to produce stronger-sprouts (4cmX4cm-size) from

initial-sprouts (2cmX2cm-size). 1 growing units (around 3600 stronger-sprouts) can be

produced daily.

System utilizes 52 growing units to product lager-sprouts (7cmX7cm-size) from

stronger-sprouts (4cmX4cm-size) with 20 days of growing cycle. 2.6 growing units (and 3200

stronger-sprouts) can be produced daily.

System utilizes 195 growing units to product harvestable lettuces (14cmX14cm-size) with 20

days of growing cycle. 9.25 growing units (and 2900 vegetables) can be produced daily.

Total Number of Lettuces can be produced annually:

Annual Production calculations:

With one stage of germination in a Germination

Room, and 3 stages to grow sprouts to lettuces,

the final daily number of seedbeds that we can

produce harvesting vegetables are:

9.25

Growing

Units

Harvestable Lettuces on each Growing Units are: 348 Head

Annual Production Days are: 365 days


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Annual Number of Lettuce that we grow: 1,174,935 Head

Consider survival rate of the lettuce on each

Growing Unit:

90%

Actual Number of Lettuces produced annually 1,057,442 Head

With Qatars market retail-price of $1.60 to $1.80 per head of lettuce, and we calculate total annual

income o f our factory with wholesale-price of $1.1 per head of lettuce.

Income Statement and Return-on-Investment calculation on our standard

1530

factory

by producing ettuces as example

1530 Sq. Meters 3-Layer 273 Seedbeds

Hydroponic Vegetable Factory

1,540,323

USD

Total Annual Income 1,163,186 USD

USD

Total Annual Expenses 530,801 USD

Labor Cost (total of 26 working 2 shifts,

assumed $3300 per worker per year)$179,200 USD

Cost of seeds $44,761 USD

Sprout Growing Supporter $29,141 USD

Liquid Fertilizer $9,677 USD

Consumable Materials $5,181 USD

Cost of packaging $68,222 USD

Cost of Cooling/Heating $12,096 USD


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Cost of Electricity for LED lightings $17,338 USD

Land Rental Fee $23,516 USD

Depreciation (95% depreciate in 15 years) $97,043 USD

System Operation and Maintenance $12,903 USD

Administration Fee(3% of Total Income $31,723 USD

Profit 632,384 USD

Profit Taxes (unknown, assumed 0% at this time) 0 %

Net Profit 632,384 USD

Return on Investment 41.1%

We can see that, local farmer make investment in building and operating our factory there, can

recover their total investment cost back in two and a half year.


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Conclusion:

Building and operating author-designed hydroponic vertical farming factory

of leafy-vegetables, Qatar can provide fresh leafy-vegetables to its local

residents and also become a leafy-vegetables-exporting country. And a

brand-new, environmental-friendly and highly profitable industry of

leafy-vegetables farming can be started in Qatar

NOTE1:Author-designed Hydroponic Vertical Farming Factory of Leafy-Vegetables is

manufactured and semi-assembled in China. The semi-assembled factory will be shipped

container-ocean-freight to Qatar for final assembly and testing onsite. Lead-time from the order is

given with 66% down payment, to the delivery onsite is 3 months, and final assembly and testing

time is 2 months. So, total of 5 months of lead-time before the system is functional shall be

expected.

NOTE2:The standard1530 , 273 seedbeds system price is 1.3 USD FOB Shanghai, China

including all turn-key system equipments inside an industrial workshop building. This price excludes

the industrial workshop building itself and the temperature-controlled system of the building.

NOTE3:Authors company will guarantee our customer of the production of the mutually-agreed

type of leafy-vegetables, and is willing to perform the vegetables production operation for the

customer under mutually-agreed contract with charge if so desired by the customer.

NOTE4:Author-designed factory currently is designed for lettuce growing and production. Other

mutually-agreed type of leafy-vegetable can be chosen and authors company will make the proper

modification to perform the production of vegetable type chosen. However, we only allow one type of

leafy-vegetables to be grown and produced in one factory. The production of various types of

leafy-vegetables in the same factory will weaken the utilization of seedbeds and degrade theefficiency of the production (and may lose the profitability), therefore, not supported.

NOTE5:Because our factory utilize the Multi-Stage-Transplanting-Growing-Method , there is a

ramp-up time of 74 days (in the case of lettuce production) before daily production of targeted

quantity can be performed from that day and on. The ramp-up times for different type of

leafy-vegetables may vary.


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NOTE6:Although Qatar is what author writes this article for, there are two other places that author

has in mind can also build and operate of our factory of leafy-vegetables with high profits: they are

Bahrain in Persian Gulf, and Iceland in Nordic Europe. Investors with interests in building and

operating of our factories in these two locations can send your request to Authors email address:[email protected] the full analysis information package will be replied to you with the location

you specified.
mailto:[email protected]:[email protected]:[email protected]

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