The Project consists of the development of up to ten hydroponic vegetable plants using advanced equipment from Japan at a cost of about USD 2m each. Equity and/or debt financing of up to USD 25m is being sought for the Project.
The use of hybrid hydroponics equipment based upon the technology of advanced nations (Japan) is available, and its use would contribute to the improvement for the the potential of agriculture in the Philippines, regional vitalization, and employment development. Since a hydroponics enterprise can exist almost anywhere, in agriculture areas or urban, there is the possibility to extend agriculture into urban areas, and decrease the regional gap between agriculture areas and the business district. It also enables people who live in urban areas to choose agriculture for work.
Although the Philippines is globally famous for production of fruits (banana, mango, pineapple), there is very little production of vegetables. The reason is related to climate and soil. Since the Philippines has a subtropical climate, it is not suitable for cultivation of soil crops. Also the Philippines has much soil resulting from volcanic ash fall deposits, and there is no nutrition in soil. This means that the crops that can be grown are restricted. In recent years, the the use of hydroponics has increased, but vegetable supply still depends mostly on import. Green-leaf vegetables are rarely found except in expensive restaurants and hotels. The Project aims to supply fresh vegetables fresh to the average citizen, and safely through a hydroponics.
The Project plans the use of hydroponics plants using Japanese technology, the world’s leading source for such equipment. They produce good vegetable quality with low agrochemical input. Prospects for vegetable sales include supermarkets, restaurants, and a street markets. The Project plans to contract with brokers, wholesale houses or a trading companiesfor distribution.
In the Philippines, the main vegetables are cassava which occupies about 34% of cultivation area, sweet potato with 20%, eggplant (3.4%), yumpotato (3.0%), tomato (2.8%), onion (1.6%), and asparagus (0.4%). There is very little production of green leaf vegetables in the Philippines. Therefore, Since almost all people are poor in the Philippines, they cannot eat green leaf vegetables. In Philippines, agriculture has been performed well for many years. Its banana, mango, and pineapple plantations are famous in the world. However, the level of agricultural technology level is low, there is inconsistency of water management, soils are mainly volcanic ash, and there is a shortage of manure and agricultural chemicals. In recent years, agriculture has been improving little by little with support of advanced nations. There are hydroponics businesses but they are generally small scale and productivity is not good.
Kats Yakama / COO & CFO & Executive Producer