Olive Cultivation (Fruit Only) [Rs. 50.93 million, Jun-2017]

Olive Cultivation (Fruit Only) [Rs. 50.93 million, Jun-2017]
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12 July 2017
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The proposed project is designed as Olive Farming, spreading over a land area of 50 acres. Growing olives in 50 acres with modern farm management techniques can be a long lasting business. The project of Olive Cultivation and marketing envisages the farming of olives and then supply to the processing market / oil processors.

Growing Olive trees is a profitable business and olive trees have more than 250 years of life and it can grow on barren lands. On an average an olive plant produces 20 to 35 kg of olive fruits per year which contain more than 20 % of oil contents. The olive fruit can be sold out in the market at the rate of Rs. 100/- to Rs. 200/- per kg and extracted oil can be sold at the rate of Rs. 700/- to Rs. 3,000/- per liter based on the oil variety and purity. Growing Olive in 50 acres with modern farm management techniques can be a long lasting business. It is recommended
that land should be purchased in the suggested rural areas.

Olive Cultivation is proposed to be located at areas where wild plantation and crop farming is common. In Punjab, Khushab, Haripur, Attock, Potohar belt are ideal places for olive farming while in KPK, Karak, Kohat, Sawat, Malakand and Bannu are most suitable. In Balochistan Quetta, Pishin, Loralai, Khuzdar, Zhob, Musakhel, Barkhan, Harnai, Mastung and Qalat respectively are suitable for Olive
production as per discussion with experts.

The total initial project cost for setting up Olive Cultivation farm is estimated at Rs. 50.93 million. The project is proposed to be financed through 50% debt and 50% equity. The project NPV is projected around Rs. 21.11 million, with an IRR of 25% and payback period of 4.58 years. The legal business status of this project is proposed as ‘Sole Proprietorship’. This project will provide direct employment opportunity to 7 people including Farm Owner. Olive trees start giving fruits at the age of five to six years, therefore, initial four years cost is taken as pre-operating cost and mentioned in capital cost.

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