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Global procurement support for castor oil
A major global corporation which owns industrial plants on several continents, assigned Expert Farmer to propose a selection of countries suitable for the production of castor oil, a scarce and valuable resource, and to produce a detailed action plan to diversify, secure and increase the targeted oilseed supplies.
Global procurement support for castor oil
Location
International
Production
Castor Oil
Delivery
2021
Area
Thousands of hectares
Client
Undisclosed
Sector
Private
Service(s)
Agri-feasibility study
Implementation
Management
The challenge
According to the regulation in force in the Philippines, securing land for large-scale agricultural project is very challenging. In addition, local conditions are usually not suitable for mechanization, requiring very specific adaptation to reach an efficient point on integration of the feedstuff production.
The result
Despite having had to discard a very essential part of the pre-identified area, Expert Farmer was able to develop the options to reach profitability with an innovative project combining integrated production together with out-growing opportunities.
Brief of the project
Preliminary review
Expert Farmer optimized the performance of its mandate by identifying the best potential place to procure castor beans or develop its production :
- Screening of countries able to launch or develop this oil crop,
- Identification of potential large-scale project to integrate the target production,
- Shortlist of 10 best countries with detailed factsheets,
- Creation of a scoring matrix to rank the candidate countries,
- Presentation and final selection of priority countries with the client.
On-site assessment and reporting
- Investigation missions in all priority countries to confirm the results of desk studies,
- Analyze of strengths and weaknesses of the value chain in each country: production area, current & potential actors,
- Identification of major bottlenecks to overcome (production, processing, supply, logistics, storage or agricultural equipment).
- Macro and microeconomic analysis of the value chain to determinate the possible price for the client’ supplies,
- Determination of requirements for development,
- Elaboration of an action plan with dedicated actions in each country,
- Costing of development actions and possible CapEx,
- Presentation of the results and consolidation of the action plan according to the client’s strategy for validation with the steering committee and executive comity of the corporate of the overall action plan.
Crop value chain development
Implementation of the action plans according to the specificities of identified targets :
- Continuous representation of the client's interests in B2B negotiations for specific agricultural projects,
- In a South American country, lobbying of the target production toward large-scale production systems to be considered as a valuable rotation Corp,
- Setup and monitoring of an experimental platform to define the best crop husbandry plan, according to local climatic condition,
- In a developing country : integration of the production as a cash crop into a food production mix,
- Annual performance review.
Highlights
What is the purpose of cropping castor oil ?
Castor oil is a non-food oil derived from the seeds of the Ricinus Communis plant. It is rich in ricinoleic acid and has a unique chemical structure, with hydroxyl, carboxylic and unsaturated groups, making it highly reactive and versatile for industrial chemistry. As a result, it serves as a renewable substitute for petroleum-derived feedstocks in the manufacture of functional materials. The worldwide market for castor oil is shaped by India’s dominant position, as it produces 95% of the world’s supply. This make supply security and development a the mechanized production a strategic concern.
Castor beans contain the potent toxin ricin, a ribosome-inactivating protein that can be deadly even in minute amounts. This substance is present in the endosperm of the seed and remains in the residual cake after oil extraction. Even tiny amounts can be fatal to humans and animals if ingested. For this reason, the large-scale cultivation of castor beans, and crushing, requires specific measures, which Expert Farmer has mastered through extensive experience.