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Appraisal of castor bean and soybean production capacity
Expert Farmer carried out an evaluation mission for a partner of the client to review the viability of his castor and soybean project. The project's purpose was to diversify and secure castor oil supply for the client. The evaluation included site visits, interviews with stakeholders, and technical assessments.
Appraisal of castor bean and soybean production capacity
Location
Indonesia
Production
Castor Beans
Soybean
Delivery
2018
Area
8 000 ha
Client
Arkema
Sector
Private
Service(s)
Technical due diligence
The challenge
Target's initial business model was based on unrealistic yield assumptions and unsuitable land selection, resulting in low productivity and economic inefficiencies. The lack of agronomic expertise and over-reliance on unproven seed varieties further complicated the project's success.
The result
The evaluation enabled the client to reassess his sourcing strategy and highlighted the need for him for expert support. Our evaluation provided actionable insights to realign the project with realistic agronomic and economic parameters, ensuring long-term viability.
Brief of the project
Strategic evaluation and stakeholder engagement
Our experts conducted a comprehensive evaluation of HPI’s castor oil project, including its business model, production strategy, and stakeholder alignment. We engaged with HPI’s leadership and technical teams to understand their vision and constraints. This strategic dialogue helped identify gaps in planning and execution, and laid the groundwork for future collaboration.
Agronomic assessment and site analysis
Expert Farmer performed detailed field assessments of large-scale plantations and smallholder plots. We identified critical mismatches between crop requirements and soil conditions, particularly in the large-scale sites selected by HPI. Our analysis revealed that smallholder farming offered a more promising path for castor production due to better adaptability and economic incentives.
Technical advisory and risk mitigation
We provided tailored recommendations to improve seed selection, irrigation practices, and crop management. Our team emphasized the importance of revising the business model to reflect achievable yields and realistic cost structures. This guidance helped the client mitigate risks and enhance project feasibility.
Value chain optimization and strategic recommendations
Expert Farmer outlined a roadmap for integrating smallholder farmers into the supply chain, ensuring both scalability and sustainability. We proposed a phased approach to production expansion, supported by capacity building and technical support. Our strategic input empowered the client to align his investment with long-term supply security and market competitiveness.