We have found a company in the U.S., AMG, that has developed a solution from U.S. (University of South Florida) technology which produces sugar from grass at about $0.09 per pound, while other forms of sugar production (from sugar cane or beets) have production costs from $0.32 to $0.36 per pound. This process can be made portable in the form of a tanker based 4-wheel drive factory (about $150,000 each) that can come to each village, process the harvest and then paid the village for the yield achieved. Our business case, worked up with AMG the technology solution provider, calls for a 50-50 split between the factory and the farmer until AMG receives $200,000. Thereafter, AMG will receive 25% and GDV will receive 25% of the net revenues derived from each village. A $150,000 factory vehicle will be able to service 5 villages. Each village will plant a series of three 10-acre (4 hectares) plots of a Philippine developed grass that grows well (12 feet per year) in semi-arid to tropical climates. Each ten-acre grass plot will yield 56.25 tons of sugar per quarter, sold at a median production cost figure of $0.34 per lb. This will yield gross sales of $38,250 per quarter per grass plot, against processing costs of $10,125, yield net revenues of $25,625. The village receives 50% of this, AMG first 50%, then later 25%, and so on. In Year two, [and in year 5] the annual turnover is $459,000, the farmers’ 50% of net revenues is $153,750 as is AMG’s initial share. Once the initial $200,000 is paid to AMG, then the annual 25% participation in net revenues is $76,875 for both AMG and DRV.
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