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A G R O B E N E F I T INCOME FROM AGRICULTURAL LAND

A G R O B E N E F I T INCOME FROM AGRICULTURAL LAND. The analysis was done based on the desired profit of $ 5 million. eur /year For such an implementation is needed: 1 / agricultural land with an area of 700 ha. 2 / cultivation of pepper varieties so-called “elephant trunk “

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A G R O B E N E F I T INCOME FROM AGRICULTURAL LAND

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  1. A G R O B E N E F I T INCOME FROM AGRICULTURAL LAND

  2. The analysis was done based on the desired profit of $ 5 million. eur /year For such an implementation is needed: 1 / agricultural land with an area of 700 ha. 2 / cultivation of pepper varieties so-called “elephant trunk “ 1 / In order to do lower the investment, more cost-effective to take land on lease: Explanation: Purchase of land this area took to app. 7 million eur. Lease of the same land is: 140,000-210,000 eur/year 2 / production costs of pepper (based on expert analysis) are around 3-3500 eur /ha, depending on the condition of the land and the application of agro-technical measures. Total costs range : from 2.1 million to 2.5 million. The expected yield : 40 - 50 t /ha. Expected profit: A largest vegetable processors in Serbia are paying 25 -30 euro cents per kg of pepper in 2013th. Based on the purchase price and on the basis of the yield of 40 t /ha, achieved revenue : 7-8.4mil.eur. Expected profit is: 4.5 to 6.3 million eur /year

  3. TRANSITION FROM LAND LEASE ON THE PROPERTY After the first harvest, it is proposed the purchase of the land from our own profit. Way is this: Planned is the average profit of 5.5 million eur at the end of the first year. At the beginning of the SECOND YEAR are included in the purchase of 400 hectares of land (cost of 10.000e/ha) in the amount of 4.0 million eur. The cost of planting 400 ha are: 1.4 million eur The remaining funds: 100,000 eur 400 ha made ​​an average profit of 3.2 million eur (at the end of the second year) THIRD YEAR: Buy an additional 100 ha of land in the amount of 1 million eur. Treated with a total of 500 ha with a cost of 1.75 million eur. The remaining funds (earlier this year): 450,000 e. Expected revenue at the end of the year: 5.5mil. eur Profit in the third year: 5.5 - 1.75 = 3.75 million Profit (after third year): 4.2 million CONCLUSION: 1 / at the end of the third year of the investor owns 500 ha of land + 4.2 million profit. 2 / each successive year brings a profit of 3.75 million.

  4. For the purposes of export partners, it is possible to produce any type of agricultural product, if partner has a special need. Reference: The Agreement on cooperation with the largest producer of the spice paprika in Europe: with factory "Aleva".

  5. bul. A. Carnojevica 81 Belgrade,Serbia tel. +381 11 311 42 95 mob. +381 61 555 0 444 office@fastro.org mimarr@open.telekom.rs

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