3. 3
1. Excutive summary
Production and consumption of vegetables in the world and in Vietnam, not only
economically important, but also a matter of health and quality of life of consumers.
Especially the fruit vegetables bring tremendous economic value and promote
research that melon is one of them.
Vegetables have a lot on the Vietnam market, very cheap. But due to farming
practices are still traditional farming, low productivity, is completely dependent on the
weather, seasonal produce, should lead to the production of low quality while high risks.
Farmers do not have knowledge of the plant protection drugs, fertilizers, but because
they must protect crops and pursue profits so they indiscriminate use of fertilizers,
pesticides and even the banned substances, stimulants to increase productivity growth .
Everyone sees the risk but still forced to eat vegetables "dirty" because it does not
distinguish, no alternatives. everyone in Vietnam always expect to find a facility
providing safe vegetables.
From social reality and the above analysis, we found the problem fruit and
vegetables - ensuring food safety is very urgent issue of the current society
2. Company overview
3. Product
Melon (Cucurbitaceae) is the fruit vegetables with short growth time, grow more
crops per year with a high yield; originating from India and Africa; Egypt is the first place
to plant, then the Greeks, the Romans. Currently melon is grown all over the world and
considered as foods high nutritional value. Moreover, the composition of melon contains
antioxidant polyphenols format, capable of preventing cancer and strengthen the
immune system, multiple fiber should have a laxative effect, prevent constipation and is
a rich source beta-carotene, folic acid, potassium and vitamin C, A, which helps
regulate blood pressure, prevent kidney stones, bone aging, ...
Melon is very sensitive to weather, so water for irrigation should be clean water
resource, pH level from 6 to 7, no salt and no alum.Fertilizers such as KNO3, MgSO4,
K2SO4, (NH4) 2SO4,urea, KH2PO4, Ca (NO3) 2 are often mixed in water as nutritional
liquid ensuring full elements necessary for melon to grow and develop such as K, N, P,
S, Ca, Mg, etc.Nutritional liquid and water irrigation are supplied simultaneously through
4. 4
Drip irrigation system and has asuitable concentration for the nutritional needs at each
stage of plant growth.
4. Market analysis
In global
Melon is grown and produced in most of the tropics and subtropics, including the
Mediterranean and Southern Europe.Mexico is the world's largest melon producer but
mostly for domestic consumption and export to the North American market; followed by
India, Brazil and the Central American countries.
5. 5
Figure 1: Top melon producers in the world (million tonnes)
Figure 2: Top melon importers in the world (million tonnes)
6. 6
Figure 3: Top melon exporters in the world (million tonnes)
In Vietnam
Ho Chi Minh City is a special municipality, a major center of economic, cultural,
education and training, science and technology, exchange hubs and international
integration, the motive, motivation, there charisma and power of pervasive economic
region southern key, with important political positions in the country. With a total area of
2,096 km² is natural, with a population of approximately 10 million people reside, work
and study. Agricultural land area is 1,157 km² at present (about 55.2% of the total
natural land area), of which agricultural land 0,67 km², mainly in five suburban districts
(Cu Chi, Hoc Mon, Binh Chanh, Nha Be and Can Gio). The population in rural areas is
about 1,476 million people, about 373,473 households. The number of rural workers
760 017 people, of which about 108,000 agricultural workers.
Ho Chi Minh City with its position as the economic center of the southern key to
the development of modern urban agriculture, efficient, sustainable agriculture towards
high technology, biotechnology ; is the manufacturing center of plant varieties and
animal breeds with high productivity and quality, high added value and safety of the
area, Additional policies to support economic development in the agricultural sector;
development of insurance services in agriculture; improve productivity, quality and
7. 7
competitiveness, building the link chain and supply chain in agriculture; improve the
quality of the criteria of new rural construction.
Melon has been introduced into Vietnam for 4-5 years. Annual revenue was from
3 to 4 VND billion/ha and profit was from 25% to 30%.Melon is a luxury item, has been
consumed mainly in supermarkets, restaurants and hotels.Currently, Vietnamese
consumers become more and more preferring melons.Therefore, though increasing in
farming area, supply still does not satisfy demand.
At first, in order to reduce costs, many farmers planted melons in the field like
watermelons; but it was easy to be influenced by pests and diseases, unstable quality
and yield led to ineffective production. Currently, melons are planted in greenhouse
made by Israel technology, which has been considered effective economic in Lam
Dong, Tay Ninh, BenTre, Dong Nai, Ho Chi Minh City, etc. Melons grown in greenhouse
can be planted for 4 crops and yields of 20-40 tonnes/ha.
5. Management team
6. Operating strategy
To grow high quality melon we have to solve some issues
- Soil: clean, horticulture qualify clean.
- Comply with scientific and technical process of production.
- Controlling crop pests while ensuring chemical residues and pesticide residues
in the crop protection threshold.
- Low risks, high productivity, avoiding the effects of seasonality, weather, high
economic value.
To solve this problem, we need to have a completely new way, methodical
investment, advanced technology application, compliance with new technical processes
for the Safety – High Quality and Value .
So through research and testing for two years, we see build a greenhouse apply
climate control technology and irrigation technology, providing automatic nutrients of
japan will solve those the problems above because:
- The shutters have been removed pest plant => Controlling pesticide residue;
8. 8
- Crops on land or in water after treatment may price guarantee clean earth
elements;
- Do not depend on weather conditions due to climate control systems;
- Due to the irrigation system, which provides automatic nutrients according to
schedule of the plant growth and development should fully control fertilizer residues in
the plants, the plants grow healthy, high-quality performance.
- Due to high automation should reduce labor;
- Eliminate 90% of seasonal factors, facilitating cultivation of fruit trees for
productivity and economic efficiency;
Therefore, we decided to invest in a growing project “high quality melon” meet
the needs of the market.
- Economic Benefits: When the project go into operation will solve jobs for 20
local agricultural workers with a stable income, for products with high economic value,
bringing great economic value for investors and for the whole society.
- Social benefits:
+ The project will be by far the FHS products to meet people’s expectations,
contribute to protecting and improving the health of people
+ The project will be a highlight of the application of agricultural science and
technology of Ho Chi Minh city
7. Critical risk
In agriculture, the risk is expressed through the negative results derived from
imperfect prediction, of climate change and price volatility. These factors include the
vagaries of nature (eg, pests, diseases) or the weather is not within the control of
agricultural production. Agricultural risks include adverse movements in prices of inputs
and outputs. Thus, agricultural risks are uncertainties, losses for agricultural producers
ngiep caused by many factors such as weather, natural disasters, epidemics and price,
... There are many ways to classify risks in agriculture, but many researchers believe
that it consists of the following five risk groups:production risk, price risk, Institutional
risk, the individual risk and financial risks
9. 9
Output price volatility is an important reason to cause risks in agriculture. Melon
prices change from year to other years, and especially large seasonal fluctuations
produced in a year. Many risks can be anticipated if the production cycle is very short if
prices do not keep changing. But melon has long production cycle is usually 3-4 months
and even longer. Therefore the decision must produce previous 3-4 months, with time
enough for the price of agricultural products may vary.
Melon demand also influenced by numerous factors: the income of consumers,
exporters and export policy, the economy in general, all the ones that are affected
directly or indirectly to demand through government policies.
Solution:
Providing the complete solution of Green house for planting melon under
technique and standards of Japan.
Using high technology, automatic controller and trace ability for each plant and
each melon via Smartphone
•Ensuring optimum and the best growing conditions for melon.
•Saving fertilizer, water and labor; increasing productivity and stable quality of
melon under Japanese import standards.
11. 11
Actual selling price of high-grade Melons current standard is 65,000 / 1kg – VND
80,000 / 1kg
The data included in the product price excluding Estimation Revenue Share of
retail products to Consumers, patrons, visitors and shop system is built with associated
companies
Low cost accounting Causes: Due to the volatility factor in the project is an
implementation period of 5 years.
+ Rating northern Vietnam market shows demand for organic fruits and
vegetables melon and huge.
+ To complete the project, pilot production, an investor has to take 2 years of trial
production, technical learning, computing based on actual production Investment Plans.
Workers in the agricultural sector scarce Due to younger generation not
interested in Agriculture because low pay, ....
Achieving high internal rate of return (IRR) (32.92% and 175.90%) and ensuring
high and stable price of output for long-term (through the supermarket system such as
Co-op Mart, Big C, Aeon, Family Mart and partners inJapan, Korea and Singapore).
Investors are fully confident real number in the project and the ability to succeed
will expand in the future.
9. SWOT analysis
STRENGTH
Food Security at national level
Good irrigation works.
Top ranking export of agricultural product
Hard working farmers
WEAKNESSSES
Quantitative production
Low effectiveness
Low relative competitiveness
Low percentage of deep processing
Quality and food safety concern
12. 12
OPPORTUNITIES
Global integration( WTO,TPP...)
New land policy and Rural development
Better condition for smal and medium
enterprises development
THREATS
Sector growth stagnation
Small scale production
Limitation and degradation of natural
resources
Food insecurity at household level
Less enterprises investing in agriculture
Severe competition in international market
Climate change
Water resources conflict
Widening gap between the rich and the
poor,urban and rural
Higher requiment of market for quality and
safety
10. Conclution
Melon is high-end item with high economic value and can become short-term
plant. Their large domestic and export market bring high profit effective economy for
Vietnam’s agriculture.Melon is contributing to the restructuring of the plant
oriented Vietnam’s government. Melon should be cultivated in the high-tech greenhouse
system in order to reduce production costs, improve product quality, bring added value
and high economic efficiency in order to meet domestic and exports demand.