- The document discusses a business proposal for an olive plantation and consultancy in Pakistan. The group members are Zaka Ul Hassan and Nouman Sarfaraz, supervised by Syed Afzal Moshadi Shah. - It analyzes the climatic conditions suitable for olive cultivation in Pakistan and identifies marginal/barren lands appropriate for olive orchards. Market data on olive production, consumption, and Pakistan's edible oil imports is also presented. - Financial projections over 10 years show positive net present values for establishing a 5-acre olive orchard, processing the olives into table olives and olive oil, and marketing under the brand "Potohar Olives". The proposal identifies strengths, weaknesses, opportunities,

1. Group Members:
- Zaka Ul Hassan
- Nouman Sarfaraz
Supervised by: Syed Afzal Moshadi Shah

2. Business Idea:
•Plantation of Olive Trees in Pakistan
•Providing consultancies

4. Olive Growing Environment
Climatic Requirements for Olive Cultivation
Factors
Standard Climate
Pakistan Climate
Temperature
5-45oC
10-45oC
Rainfall
700-800mm
More than 500mm
Humidity
75-90%
70%
Altitude
400-1700meter
100-3000meter
Chilling Req.
400-2000 hrs
400-2100 hrs
Slope
upto 20o
10o-50o

5. Marginal / Barren lands
Marginal / Barren Land

6. Market consumption and production World Wide
Table 1 – World Olive Production & Consumption Countries
Country
Production in Tons (2009)
Production %
Consumption
Spain
1,199,200
41.2%
20%
Italy
587,700
20.2
30%
Greece
332,600
11.4
9%
Syria
168,163
5.8
3%
Tunisia
150,000
5.2
2%
Turkey
143,600
4.9
2%
Morocco
95,300
3.3
2%
Source: Edible oils in Pakistan
Market consumption in Pakistan
Table 2 - Import of Olive Oil in Pakistan
Year
Quantity (tons)
Value in (Mn PKR.)
2004-05
461
59.9
2005-06
746
105
2006-07
1463
172.2
2007-08
2008
358
2008-09
2768
380
Source: Federal Bureau of Statistics (2009)

7. Pakistan Edible Oil Usage
Pakistan is world's 4th largest importer of edible oils
Edible oil imports forecast 2.16 Mn metric tons 2011/12
Demand of edible oil is increasing at the rate of 6 to 8 % per annum
Pakistan Government Actions
50 Mn naturally grown wild olive trees in marginal areas
7 Mn wild olive trees grafted by support of PODB and IAO
900 acre olive orchards establish in different region of KPK, Balochistan and Potohar
Source: USDA Reports (2011)

8. Olive Orchard

9. Olive Plant Varieties:
HARDY
Arbequina
Leccino
Pendallino
Sevallino
Ascolana
Coratina
SENSTIVE
Frantoio
Manzanilla
Koroneiki
MODERATE
Picholine

10. Features
•Forms
Generally olives are being use in three forms:
Olive Oil
Table Olive
Olive Cake (waste after olive extraction use for fertilizer)
•Plant benefits
Generate energy 2.5 times more than other woods
Ash used for fertilizing gardens and plants
Wood is being use for making handicrafts
•Oil Grades
Olive oil has four grades:
Extra virgin olive oil
Olive Pomace oil
Sulphonated oil
Technical oil

11. Benefits
Products can be made
•Cosmetics
•Health and beauty
•Personal Care
•Herbal Medicine
•Edible products eg.
•Pickles, jams, sauces, extract vinegar, breads, confectionary, and traditional
Pakistani Sweets.





Nutritional Importance of Olive
Vitamins E, K, and A
Used as a balm
Massaged onto the body
Help against wrinkles and delaying the effects of old age
Help combat against strokes, heart-disease, High blood pressure, diabetes

12. Product Options
Table Olive
Medicine From Olive
Olive Oil
Seeds Tasbeegh
Dried Olive Powder Bread Traditional Sweet Burfi

13. Financial Costing
Olive orchard on 40 kanal which is 5 acre.
Basic Description:
835 Plants on 5acre (167/acre spacing of 4x6 meter)
Capital Cost:
We have taken the costing of 5 acre area for the plantation of Olive plants.
Irrigation System Installation Cost:
Initial Cost:
Table 3 – Irrigation equipments
Table 4 – Plants Installation Cost
Equipments
Cost PKR.
Material
No. of Unit
Per Unit PKR.
Total
9 Water Tanks
45,000
Olive Plants
835
30
25,050
Land Bore
40,000
Fertilization
6
2,000
12,000
Hard Plastic Pipe
11,880
Land Preparation Labor
3
7,000
21,000
One Electric Motor
10,000
Irrigation System
1
106,880
106,880
Total
106,880
Total
164,930

14. Annually Running Cost
Table 5 – Input Cost
No. of Months
Per Month
Total
Manpower
12
7,000
84,000
Electricity (April, May, June)
3
3,000
9,000
Electricity Per Month
9
500
4,500
Other Expenses
12
500
6,000
Fertilizer
6
2,000
12,000
Total
115,500

15. Return
Estimated Production:
We have estimated the production of olives by 95% of successive rate.
Year
Table 6 – Production of Olives Per Tree
Olives-kg/Tree
Olives-kg /5 Acre
Year 1
0.0
0.0
Year 2
0.0
0.0
Year 3
0.0
0.0
Year 4
4.5
3,556
Year 5
6.5
5,135
Year 6
8
6,320
Year 7
11
8,690
Year 8
12
9,480
Year 9
13
10,270
Year 10
15
11,850

16. Preparation of Table Olive
Cost of producing Table Olives
Packaging
PKR./kg
Price Per Kg
Selling Cost
Bottle
35
Retail Price
NaOH
1
COST
Nacl
1.66
Vinegar
40
Labor
2
Utility Expenses
2
Total
81.66
PKR./kg
500
Manufacturing Cost
(81.66)
Retailer Margin 20%
(100)
Sales man Margin 5%
(25)
Profit
293.34
Preparation of Oil
Cost of producing Olive Oil
Packaging
PKR./ltr
Bottle
35
Profit Per ltr
Selling Cost
PKR./ltr
Retail Price
500
COST
Transportation
2.81
Labor
Manufacturing Cost
(41.81)
2
Retailer Margin 20%
(100)
Utility Expenses
2
Sales man Margin 5%
(25)
Total
41.81
Profit
333.18

17. Projected Cash Flow Analysis Table Olives:
Year
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Olive kg
0
0
0
0
2,133
3,081
3,792
5,214
5,688
6,162
7,110
Manufacturing Cost
0
0
0
0
184,181
261,594
319,655
435,775
474,482
513,189
590,603
Total Cost
164,930
115,500
115,500
115,500
549,681
377,094
435,155
551,275
589,982
628,689
706,103
Revenue
0
0
0
0
799,875
1,155,375
1,422,000
1,955,250
2,133,000
2,310,750
2,666,250
Net Profit
-164,930
-115,500
-115,500
-115,500
250,194
778,281
986,845
1,403,975
1,543,018
1,682,061
1,960,147
Income
-164,930
-280,430
-395,930
-511,430
-261,236
517,045
1,503,890
2,907,865
4,450,883
6,132,944
8,093,091
Cumulative Cost
164,930
280,430
395,930
511,430
1,061,111
1,438,205
1,873,360
2,424,635
3,014,617
3,643,306
4,349,409
Cumulative Revenue
0
0
0
0
799,875
1,955,250
3,377,250
5,332,500
7,465,500
9,776,250
12,442,500
NPV @ 0%
NPV @ 5%
NPV @ 10%
NPV @ 15%
12309703
9721802
7815713
6385157

18. Projected Cash Flow Analysis Olive Oil:
Year
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Olive ltr
0
0
0
0
444
642
790
1,086
1,185
1,284
1,481
Manufacturing Cost
0
0
0
0
18,579
26,837
33,030
45,416
49,545
53,674
61,931
Total Cost
164,930
115,500
115,500
115,500
134,079
142,337
148,530
160,916
165,045
169,174
177,431
Revenue
0
0
0
0
166,641
240,703
296,250
407,344
444,375
481,406
555,469
Net Profit
-164,930
-115,500
-115,500
-115,500
32,561
98,366
147,720
246,428
279,330
312,233
378,038
Income
-164,930
-280,430
-395,930
-511,430
-478,869
-380,502
-232,782
13,645
292,976
605,208
983,246
Cumulative Cost
164,930
280,430
395,930
511,430
645,509
787,846
936,376
1,097,292
1,262,337
1,431,511
1,608,942
Cumulative Revenue
0
0
0
0
166,641
407,344
703,594
1,110,938
1,555,313
2,036,719
2,592,188
3,000,000
NPV @ 0%
NPV @ 5%
NPV @ 10%
NPV @ 15%
2,500,000
1847308
1474767
1192541
975345
2,000,000
1,500,000
Cumula tive Cost
Cumula tive Revenue
1,000,000
500,000
0
0
1
2
3
4
5
6
7
8
9
10

19. Brand Name: Potohar Olives
Target Market:
- Upper and Middle class
Marketing Strategy:
-Push Strategy (in the beginning)
Give away high margins to Retailers (20% of the price) and Sales Staff (5-15%
of the price)
Low price entry strategy:
Product
Competitor Rate PKR./ltr
Our Rate PKR./ltr
Extra Virgin Olive Oil 726.25
500.00
Pomace Olive Oil
479.12
440.00
Table Olive
725.11
500

20. The proposed project would require following staff members
First three years
Manager - 1
Gardeners - 1 to 3
Fourth year onward
Manager - 1
Gardeners - 1 to 3
Machine operators - 1
Labor
-2

21. SWOT Analysis
Strengths:
Opportunities:
High profit margin
Growing tastes and preferences
Suitable with Pakistan’s climate
Can be exported to neighboring countries
Barren / marginal land can be utilized
Huge free barren land
It can be cultivated on the fertile land along with
Can develop a strong national and international
other crops as well
brand.
Whole plant right from the seed to fruit is
beneficial and useful
Religious importance
Weakness:
Threats:
Lack of Awareness (both producers and
Big players response
consumers/ customers)
Strong brands loyalty
Government level subsidy not availed
Government policies

22. Thanks for your patience
Any Question???