Our parent, the CARANA Corporation (www.carana.com/), is an American company that designs and implements economic development strategies on behalf of governments, businesses, and international donors. It has worked in Guyana over the last decade and conducted over $6 million in research and development in agriculture and aquaculture production. Guyana’s untapped potential and CARANA’s proven ability to address market and investment failures globally led them to realise what a unique opportunity they had to create a leading agribusiness in Guyana.
To this end, CARANA decided to establish and seed fund an agriculture production and marketing company that would take a holistic approach to primary production. That is us…Carana Agribusiness. We are a team of experienced agriculture and business development specialists seeking investment to continue to develop our agriculture and aquaculture assets in Guyana.
When we launched in October 2014, we immediately began work on building our aquaculture operation. Construction of our agriculture operation commenced in November 2014. By the end of 2014, we had completed the initial 30 acre aquaculture farm and stocked it with 40,000 Tambaqui fingerlings. These fish will mature and be ready for market by July 2015, at which time we expect them to achieve revenues of approximately US$ 250,000.
We have also prepared agriculture land and infrastructure including the drip irrigation system which is being installed during March 2015. Inputs have arrived ready for planting peppers in the first week of April 2015. These peppers will be ready for market by July 2015, and we expect them to achieve revenues of around US$400,000. We also began additional pond construction and land preparation during February 2015. In reaching this level of development so quickly, we are set to achieve revenues of around $650,000 by the middle of this year and clearly demonstrate our ability to successfully execute our development plans in a professional and sustainable way.
Building upon this first phase, the second phase will see us expand our land under management to 500 acres. Revenue is projected to grow from $650,000 in 2015 to over $8 million by 2018. From this 500 acre base, we envision later equity or debt raises that will see us scale operations out to over 6,000 acres of production as we move from smaller market orders to an industry wide approach.
- Backed by the renowned emerging market project developer CARANA Corporation.
- Business built on the back of the UK Government Guyana Agriculture Diversification Program and the $6.7m USAID Guyana Trade and Investment Project.
- Specialist high value crop and aquaculture production with established markets.
- Current pepper crop and fish production valued at ~$650,000 with harvest and sale from July 2015.
- Name brand buyers with off-takes in place for entire production.
- Specialist team in agricultural and aquaculture development and alumni of Harvard, American University, Ruppin Academic Center, Israel and Ohio State
The Overarching Problem:
Over the last 10 years, Carana Agribusiness, through our parent company CARANA, has leveraged funding from international donors to develop a successful technology and marketing service platform and field a proven production approach that makes horticulture and aquaculture commercially viable. We stand ready to capitalize on over 6 million USD in research, development, market feasibility and support to 11 contract farmers. We will apply our local know-how to leverage an investment that brings our farms to scale and support local contract farmers.
- Passion fruit: A juice concentrate plant in Guyana has committed to purchase all of our production, to up to 2000 acres.
- Chili peppers: Caribbean sauce processors are currently purchasing all of the production by our contract farms in mash form. A national US importer/wholesaler has expressed interest in purchasing fresh peppers.
- Tambaqui fish: Local demand for our fish can be satisfied with a 60-80 acre farm. With enormous expansion potential, we already have a Surinamese partner and a US importer committed to purchase.
To date, no one in Guyana or the Caribbean has offered a full service investment and services platform to capitalize on the US market, growing season or regional market. The continuous problem is lack of investment coupled with lack of technical expertise to move agriculture and aquaculture to scale. The scale issue is complex because it is not only characterized by a lack of productivity, but a lack of market understanding.
We are leveraging our deep knowledge and history of solving these problems. This gives us a considerable head start in building out the necessary farms and services to support the industry. Any new entrants to this market will lack the technical know-how, links to markets and bureaucratic understanding to effectively move product and gain market share.
Contract Farmers– These farms represent over 300 acres of production capacity in aquaculture and agriculture. These farmers have themselves invested over 1 million USD in infrastructure and equipment the last 5 years to form the foundation of a successful long term industry. Our farmer partners are now participating in an advantageous Government loan program to build out their farms.
International Partners– we have begun the process of building a long term and sustainable supply chain by linking with international companies to provide inputs that are coupled with technical assistance. The list of international partners includes: Netafim, Gainegar Plastics, Ronin Seeds and Rangen Feeds.
- Demerera Distillers Limited is the largest producer and distiller of spirits in the Caribbean as well as the producer of juice in Guyana and the local Pepsi Cola bottler.
- Assuming we meet quality and price agreements, Demerara Distillers has agreed to buy up to 80,000 pounds of passion fruit production from us to substitute passion fruit concentrate. They have also asked us to look into other longer term tree crops.
- RainForest Guyana is a pepper sauce and condiment company that exports into the US and Caribbean founded in 2012.
- Rainforest Guyana is currently a buyer from our farms and has agreed to continue buying product as long as we meet agreed cost, quality and traceability criteria. We are exploring other options to partner and expand with them.
- Spur Tree Jamaican is an award winning pepper sauce, condiment and seasoning company based in Kingston, Jamaica and focused on the US and Caribbean markets.
- Spur Tree Jamaican is a client and has inspected our farms in Guyana. Due to the quality product and traceability we offer, Spurtree will work with us to buy product as its own business expands.