SESSION 4: PROJECT FINANCING
Case: "Nghe An Tate & Lyle Sugar Company (Viet Nam)"
_Question 3: Are farmers likely to convert to sugar cane?_
The farmers who lived within 50 kilometers of the sugar mill are likely to convert to sugar cane in term of economic return and other benefits.
- Economic return: Net returns to farmers per Hectare from growing Sugar cane are high. From Exhibit 9 with nominal cash flow of a crop life cycle ( 4 years), the total return of one hectare is 6,900 (000'VND) and net present value is 3,841 (000'VND) with nominal discount rate 13.3%/year. Compare to coffee and rubber, sugar cane need only one year to revenue.
Compare with other crops (pineapple, coffee, rubber …), Sugar cane can get highest average
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Full capacity of the factory (900,000 tons) is expected to reach in 2003 so this domestic production could reduce trade import more than US$ 50 million every year (exhibit 8).
Net tax revenue: value-added tax's effects from NATL would likely very small because the VAT was due and collected up to retail level. From Exhibit 8, NATL will pay more than US$ 6 million profit income tax per year from 2006, the government would lose about US$ 11 million in tariff revenue: the net loss is US$ 5 million per year. This is due to 30% tariff rate but in the long term when Viet Nam integrate WTO, sugar tariff rate will have to be reduced ( 15%, 10%) and profit income tax from NATL will increase from year to year so the net loss in tax revenue of the project will reduces to very small.
Social benefits:
Industrial development: during 1990s, there were mainly inefficient "handicraft" mills in the north. NATL with 42% shares of Tate&Lyle PLC (one of world's largest producers of white and raw sugar) would have advanced technology, modern planting techniques, well management skill. This could help to develop sugar industry in the north of Viet Nam.
Employment and poverty
Under National Agro-Food Policy, agriculture sector has been identified as a National Key Result Area. Under this initiative, the agriculture sector is targeted to increase the Gross National Income by RM28.9 Billion (USD9.1 billion) to reach RM49.1 billion (USD15.4 billion) by 2020. The agricultural sector is also targeted to create more than 109,000 job opportunities by 2020, primarily in the rural areas.
Close Mon Valley: USS already has close to 25% of unused capacity. Currently (1990) they have approximately 14.4 million tons of capacity. The Mon Valley plant would add another 3MM in capacity which is not necessarily needed. Maybe there is an opportunity to shift some (or most) of the orders from this plant to
There used to be a lot more farmers, each one with a smaller farm, but growing quite a few different products like corn, wheat, hay, barley, oats, etc. Today there are a lot less farmers, but about the same amount of land is being farmed. Each farmer has a much bigger acreage to cultivate. Now each farmer specializes in one product. This way each farmer is more efficient in what they grow.. The most produced commodities are grains, oil seeds, dried beans and peas at 42%, other crops and hay account for another 31%. Now, most products are enhanced of fertilizers and pesticides, although there is an increasing demand for organic products which are overall more
factories started in the 1960s and began to take off in the 1990s with the help of 1994’s
Kinh Do has several powerful strengths on which to build, but they has some weaknesses that are no factory in northern of Vietnam and problem about system of distribution. Their opportunities include young population, compound annual growth rate increase year by year and weather is hot. Threat include competitive of foreign competitor and competitive of beverage.
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Duplication is one of the very unnecessary costs that the government ha suffered in its previous operations. GAO is putting in place a cost saving plan that is aimed to improve efficiency and efficacy in the operations. All arm of the government will be direct recipients of the action. GAO, however, need the legislative arm to approve its plan so that it can begin applying the plans efficiently and effectively. GAO has submitted its recommended course of actions that can save the nation considerable that can be channelled to other budgetary allocations. GAO pushed for a constitutional requirement in 2012, which does not allow for incentive payments, but there are challenges in implementation, since there are non-compliant offices and individuals in the public resource offices (GAO 1).
We prepared statements of each farm’s operations that illustrate the performances of the farms, in terms of sacks of corn, during the first harvest year. Income before Royal Taxes is equal to the harvested sacks of corn less operating costs. Sihathor’s
A delightful region, especially for those with an interest in agriculture and prime farming such as growing melons, mangoes and until recently, sugar cane; a lucrative Indian sandalwood industry now has all but replaced sugar canes as main staples for this region's economy.
it can be drawn that production volume is high as it has increased 600% since the buying of new large multi-cavity moulds and machinery. Another indication of
As with any industry, profitability will always be a key factor in the success of a company. That is no different for the target market of the GrainGoat as agricultural producers are constantly striving to lower costs and maximize profits.
Information needs should be the driving force behind information systems. An information need is a business’s requirement to capture a specific piece of information or set of information points to meet a business necessity.
agriculture industry is able to withstand low marginal profit and can sell products at a cheap price,
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As shown in Exhibit 13, the production capacity of major firms in china slightly exceeded 2 million units in 2002, this figure is expected to reach 3.5 million units by 2012 – as shown in Exhibit 14.