COST OF CULTIVATION OF ONE HECTARE OF JATROPHA

PLANTATION AND (ROI) RETURN ON INVESTMENT FOR A

GESTATION PERIOD OF 4YEARS

S/N Description of item Unit Rate Amount

1. Land lease 1 hct N 10,000 N10,000
2. Land preparation 1 hct N 35,000 N 35,000
3. Seedlings - N 10,000 N 10,650
4. Planting - - N 5,000
5. Weed control - - N 15,000
6. Maintenance and control - - N 15,000
7. Supervision - - N 10,000
8. Miscellaneous - - N 10,000
9. Management/maintenance 3years N35,000 N 105,000
for 4years

TOTAL= N245,650

RETURN ON INVESTMENT (ROI) A GESTATION PERIOD OF

4YEARS

Year No. of Metric Tone Price/Metric Tone Amount

1st year No harvest N 85,000 Nil

2nd year 3.5 tonnes N 85,000 N 279,500

3rd year 8 tonnes N 85,000 N 680,000

4th year 10 tonnes N 85,000 N 850,000

Total revenue for 4year G.P = N1, 809,500

 Cost/Revenue Summary

Total Cost of Production - N245, 650

Total Sales/Revenue - N 1,809,500

Net Profit = 1,809,500

- 245,650
1,563,850*10 hectares

Net Profit = N 15,638,500

Based on the above, the revenue from Jatropha will return capital
on investment in four years gestation period and the tonnage per
hectare keep increasing every year. It should be noted that after
the fourth year, an average revenue of N850, 000 per hectare will
be coming in yearly and that represent 850,000 for one hectare per
year. For a ten hectare plantation investment, an average revenue
generation will be multiply by 10 HCTs: 1,809,500*10HCTS
11,809,500.

The above figure is at the lowest harvest/hectare and the price may
equally arise as price of bio-diesel is about N250 in the market
presently.

Investment in one hectare of Jatropha means the investor is

already in possession of an oil field.

Biodesiel is the way to go as the attention of advanced Nations of

the world is turning to renewable and low carbon fuel and
Jatropha is the candidate plant and feedstock in achieving it. Our
company have put in place a buy back contract farming
arrangement that guarantee a ready market for the feedstock.

Michael Agbomoniyi

CEO/Project Director.