CONCEPT NOTE FOR CROCODILE FARM (MANGOCHI) FOR EXPORT OF CROCODILE PRODUCTS TO ITALY With Crocodile cooperative 2,000 Women & Youth Agriculture Commercialisation Project REQUEST FOR GRANT i fl Corran FarmAPPLICATION FOR A GRANT UNDER’ AGRICULTURE COMMECIAL PROJECT (AGCOM): PROJECT 1,000 LIMITED We hereby apply for a grant of $3 Million (MWK 2 Billion) together with 2000 cooperative crocodile farmers for the rearing of crocodiles in Mangochi for export of the crocodile products at our 19.9 Ha project land leading to annual export of about $10 Mn on full scale. The project 1000 crocodile cooperative will also use the excess water for irrigation of cash crops for the cooperative farmers surrounding the project area of up to 100 Ha and providing technical support and market for them as crocodile farming is water intensive INTRODUCTION PRODUCING ORGANIZATION Project 1,000 Limited a wholly owned company in Malawi is acquiring Corran Crocodile Farm from current shareholders under expansion arrangement. Project 1,000 Limited together with Project 1000 Crocodile Cooperative of 2000 members from Mangochi will together engage into a commercial agriculture value chain addition company, with its offices in Blantyre, Malawi, Post Office Box E46, Post Dot Net, Chichiri, and Blantyre. Represented by Mr. Foster Harawa, Managing director, his contact details are: 0999 037 529/01 400 600. E-mail address: foster.africaleasing@gmail.com Corran Farming Limited (CFL), is an existing company on offer to Project 1000 Limited and its Project 1000 Crocodile Cooperative herein referred as an integrated Crocodile farming that will train its cooperative for the production of Crocodile in the Villages surrounding Namakoma Village, Traditional Authority Nankumba, in Mangochi District. Corran Farm as an anchor farm for the cooperative farmers will here in produce high quality crocodile skins that are used in the international fashion industry as its primary product. Oil extracted from the fatty tissues of crocodiles is used both as a preventative and a treatment for a number of human ailments and conditions for many years and across numerous cultures, including Ancient Egypt. The surplus water that is used to clean the crocodile pens is channeled into a waste water dam that is delivered to the community fields to irrigate crops, this arrangement empower the community in various forms of farming.CFL was Officially established on May 12, 2017 and has strived to attain the following objectives to date: 4. Has established a Crocodile farm that is producing high quality skins for the export market. 2. Markets the crocodile meat as an affordable alternative source of protein to both international and local market. 3. To provide water to irrigated community fields. 4. To develop fish farming in the area utilizing the water used to clean the crocodile pens. 5. Introduce suitable cash crops to the local community by providing extension farming expertise and off taker services. 6. Established the Breeding stock and new hatchlings from Doondo Farming Limited. 7. To extract oil from the fatty tissues of crocodiles that can be used in the treatment of major human skin problems. OFFTAKER CFL has a four year buying agreement contract with White Line S.R.L of Italy. White Line was founded in 2001 by the Panterani brother. After combined years of experience in the leather sector, the Panterani brothers understood the potential in the exotic leather sector that proved to be a huge success. Today white line plays a vital role in exotic leather maker for the fashion industry. The leather is primarily sold to the manufacturer for garments, footwear, hand bags and other leather goods. White line SRL is located in Bologna, Bologna, Italy, its Website is www.whiteline.it, for more details please contacts 39 0516166869 PRODUCTION ORGANIZATION PROFILE CONCEPT Crocodile products are scarcest commodity hence fetch good price compared to our native livestock, CFL has fully developed facilities with necessary requires to produce High grade Crocodile skin that is on high demanded on the skin market. CFL located at NAMAKOMA Village has very good temperature suitable for raising Crocodile, is positioned on an excellent site with perfect Crocodile farming topography, sufficient water for cleaningthe crocodile pens and has adequate space for the target animal population for the crocodiles to develop the desired skin. Crocodile Skins: The skin is our primary Product; CFL has a four year buying agreement contract with White Line S.R.L of Italy. They process the skins through their tannery, near Florence, Italy who then sells the finished product to the fashion houses that produce Handbags, wallets, belts, shoes, etc. Crocodile meat and Crocodile Oil: Crocodile meat and Crocodile oil is our secondary product that fetches better price both international and local markets however CFL has not yet found a high quantity either international nor local buyer of our meat and oil products. Fish and Crop farming With change in time diffusing of new technologies of agriculture practices has proven to be very productive, this is evident as it proves to be resource economical, cost effective as it increase products, productivity and profits, it maximize utility of available resources, It is sustainable and it is Environmental friendly. This project has in cooperates Fish and crop farming as one way of giving back to the community. A population of not less than 2000 locals are registered and involved in the project. There is a team of locals who participate in aquaculture, some work in the crop fields and the remaining locals have been employed at CFL. CFL buys out both fish and farm produce to be used as Crocodile feed. CFL has developed adequate dams and has managed to design an irrigation system on about 180 Ha land to be used by the locals. We pump approximately 320,000 litres per day to clean the crocodile pens. The farm is set to ensure that all waste water that has been used to clean the crocodile pens, is channeled into a waste water dam with a capacity of 3,400,000 litres. This water which is now full of nutrients is used to irrigate the community fields. With irrigation and CFL guidance the villagers are able to produce 3 crops a year which caters for their own needs and leave them with surplus to sell.CFL has registered total Membership of 2008; Men: 706 Males, Women; 902 Women and 400 Youths PRPODUCTION ORGANISATION CONTRIBUTION TOTAL CAPACITY TO CONTRIBUTE Project 1,000 limited together with 2,000 Cooperative farmers will acquire existing assets at Corran Farm Limited and maintain the name Corran farm for a total of $2 Million and will invest $1 Million in working capital for capacity building of the cooperative for the production of the crocodiles, Project 1,000 will make a cash contribution of $300,000 and already made contributions in kind in form of project logistics equipment’s. The summary is as follows: - Total funds requested; $3,000,000.00 Cash $375,458.57 In kind $142,780.58 OFF-TAKER PROFILE & OTHER POTENTIAL OFFTAKERS. The Off-taker is the largest importer of crocodile products in Europe with a total capital of €8.5 Million, the off-taker boost the largest market share for on line sales for crocodile exotic skin products, the off-taker has a tannery that integrates very well with different fashion brands Note that on our contacts we also have following off-takers that we would sign off an agreement after cooperative farmers have been trained on production. 1. Hermés The maker of Birkin bags and silk scarves with a strong momentum in Europe and Japan LVMH Revives Luxury Russia Borodino Cuir de Russie, Russia China BNP forecasts Chinese buyers will increase consumption on luxury goods 30 percent compared to the first half of 2019 while American shoppers are seen spending 23 percent more. WNPRODUCTIVE ALLIANCE VALUE CHAIN 14. Crocodile farming Crocodile farming activities revolve around the dams and the pens that are constructed systematically. Water is pumped from the main water body into reservoirs; this water is then directed to different pens or dams depending on the activities taking place at that particular point in time. Used water also referred to as waste water is channeled to the 3,400,000 Litre dam reserved for irrigation purposes. These activities are done by well trained team of crocodile care professionais. 2. Fish farming Fish farming is done in all farm dams including the reserve dams, proper safe channels are set to move water from one chamber to the other without interrupting fish farming. A well trained team of fish farmers working hand in hand with crocodile care takers is assigned to take care of the fish. 3. Crop farming A team of well-trained agronomist will be involved in the planning, budgeting, land development, irrigation, crop management and post handling activities. An irrigation expert with clear knowledge on soil water porosity and evapotranspiration working hand in hand with crocodile care taker and agronomist will lead the whole team on water economics INVESTMENTS ECONOMICS & PROJECT IMPACT 1. Increase current production from 4,000 crocodiles to 30,000 crocodiles per annum, with 15,000 crocodiles under Corran farm and 15,000 crocodiles under Project 1000 Limited (2000 Member) cooperative. 2. Capacity building for the 2,000 cooperatives on crocodile farming with management under Corran Farm to ensure quality management. 3. The White line SRL contract is for €1,000/crocodile ensuring sales of 10,000 crocodiles per annum leading to €10 Million in export with €5 Million in export sales for the Crocodile Cooperative. 4. The business under 70% grant and 30% owners contribution will deliver a gross profit of 40% and a Net Profit of 20%, a total of €2 Million against 2,000 cooperatives leading to a net income of €1,000 per member which will usher each member to leaving above poverty line hence generating middle class.Annexure 1: Org AFRICA LEASING GROUP Technical expertise in value chain finance PROJECT 1000 UMITED 51% CORRAN FARI % represents Shareholding 5,000 CROCODILE EXPORTS/ANNUM janogram STANSFIELD Technical expertise in export logistics OTHERS 33% M LIMITED. Inclusive Productive Alliance Export contract-led production Technical expertise in crocodile production PROJECT 1000 2000 MEMBER COOPERATIVE Women & Youth led Cooperative 16% 5,000 CROCODILE EXPORTS/ANNUM Inclusive Exported production IRRIGATED CROPS Domestic marketANNEXURE B CURRENT STOCK AT THE FARM T/A NANKUMBA, MANGOCHI Stock of 1,000 Small Crocodiles at the farm Water Reseviour Crocodile Pen for 200 Crocodiles. PROJECT ae Project 1000 Limited i i Corran FarmANNEXURE B CURRENT STOCK AT THE FARM T/A NANKUMBA, MANGOCHI Small Crocodiles being positioned in the pens Arial view of the Crocodile farm Feeding System of the crocodiles PROJECT Corran Farm Project 1000 LimitedCrocodiles at the Crocodile pond Entry View of the farm Construction of the Pens underway ——$ =e % 1 al Corran Farm les“The grant will assist 2,000 women & youth to be trained and be given the management of the pens for export of the crocodile skills” al Corran Farm oOo