JATROPHA FARMING_as_a_ Business

Potential conflicts between biofuel production and the protection of the environment, sustainable development, food security of the rural poor and the economic development of countries supplying feedstock have made the Jatropha most viable feedstock. The Jatropha contribute to preservation the environment absorbing high quantities of carbon dioxide and do not compete with raw materials used for food, Since feedstock is the single largest cost component in biodiesel production, Jatropha being considerably less expensive feedstocks give  producers a significant cost advantage over producers of soya/rape/corn .Thus Designing and implementing the growing of jatropha oil crops in a structured Agri-Supply chain provides excellent business opportunity 

Steps to start Crop-cultivation business

1. Identify land or decide for contract farming
2. Conduct a feasibility study
3. Write a business plan
4. Form a farming company with experts
5. Solicit financing
6. Higher a Consultant
7. Develop the markets
8. Start cultivation of main crop (jatropha) and intercrop as planned

IMPLEMENTATION ROUTE

1. Crop cultivation
2. MIS & other Equipment requirements
3. Crop yield
4. System management
5. Cost benefits calculations

The inputs of Jatropha Farming are:

1. Land (field crops, hedges)
2. Labor (Crop plantation, Crop maintenance, harvesting, processing)
3. Machinery  (tractor, Power tiller, digger etc.)
4. Material (Planting material, growing media)

Owning the land could bring a higher yield justified by an intensive cultivation, a strict control of the investments (i.e. fertilizing), and the personnel. On the other hand owning the land is reason of a quite bigger initial investment.  As such leasing out the land on a minimum rent is only recommended

A detailed evaluation of the crop cultivation cost and following identification of a range of product selling price, from which it will be convenient to purchase the seeds, will help to determine the choice. If the farmer will judge the price so interesting to start to cultivate Jatropha, owning the land will be not necessary

This means it is possible for a farmer and farming company to have contract Production of Seeds.   In such a relationship the farmer provides the land and the infrastructure to farm with whilst the farming company provides the rest.    If the value of production exceeds the cost the surplus is shared at an agreed rate. A long term relationship is established and that risk is moved and accepted over a long period that the land must be leased for at leas a period of 20 years period.

The basic components of contract farming are: