Financial Assumptions for Feasibility Studies for New Projects To illustrate these assumptions for an overseas Study, the following data will ave to be collated by a team consisting of a food technology consultant, a consultant horticulturalist, a plant and machinery design engineer, an architect with intimate knowledge of building design in the region of operation, and a corporate finance consultant To arrive at a format for the financial projections a hypothetical project is taken as an example, located in, say, Southern Europe. In this case the farming would be on the'estate' pattern on irrigated land, mainly controlled by the investors in the project. Fig. 13. 1 shows the best cropping time for a range of 6 different types of vegetables, and 2 the possible processing times. Realistically the processing period would be limited to about ten months when the factory is on full stream, to take account of annual shutdown, holidays, etc, but this shut-down period would be integrated with the cropping programme at such times when harvested crops(onions and carrots) could be stored over the period of plant overhaul, in controlled temperature conditions. Also the programme would need to be flexible to meet the market conditions at the time of operation. Onions, for example, could be increased in tonnage, and other vegetables decreased. Fig. 13. 1, in fact, indicates what vegetables have already been grown in trials and for commercial fresh markets in the region, and is only a pointer to the range available for processing The Pre-Production period is assumed to be 9-12 months, during which time construction work could be carried out, indents for machinery and other equipment would be progressed, horticultural programmes would be finalised with the growers, and towards the end of the period supervisory staff would be selected and engaged The plant would be operated at 60 percent capacity for Year 1, 80 percent in Year 2 and 100 percent in the third, fourth and fifth years In the Financial Assumptions, the farm equipment would be financed by the growers, and these costs are quite separate from the factory capital expenditure. All farm costs, however, must be calculated in the Study to arrive at a factory-gate price for the raw material Fig. 13. 2 also indicates that two multi-stage band dryers are envisage in order that two vegetables may be processed simultaneously at periods where harvesting times overlap. This level of drying capacity would be needed for an annual putative throughput of 30,000 tonnes of raw vegetables In the Study all financial calculations would be in local currency but for the purpose of this example, all calculations have been converted to ￡ SterlinFinancial Assumptions for Feasibility Studies for New Projects To illustrate these assumptions for an overseas Study, the following data will have to be collated by a team consisting of a food technology consultant, a consultant horticulturalist, a plant and machinery design engineer, an architect with intimate knowledge of building design in the region of operation, and a corporate finance consultant To arrive at a format for the financial projections a hypothetical project is taken as an example, located in, say, Southern Europe. In this case the farming would be on the 'estate' pattern on irrigated land, mainly controlled by the investors in the project. Fig. 13.1 shows the best cropping time for a range of 6 different types of vegetables, and Fig. 13.2 the possible processing times. Realistically the processing period would be limited to about ten months when the factory is on full stream, to take account of annual shutdown, holidays, etc, but this shut-down period would be integrated with the cropping programme at such times when harvested crops (onions and carrots) could be stored over the period of plant overhaul, in controlled temperature conditions. Also the programme would need to be flexible to meet the market conditions at the time of operation. Onions, for example, could be increased in tonnage, and other vegetables decreased. Fig. 13.1, in fact, indicates what vegetables have already been grown in trials and for commercial fresh markets in the region, and is only a pointer to the range available for processing. The Pre-Production period is assumed to be 9-12 months, during which time construction work could be carried out, indents for machinery and other equipment would be progressed, horticultural programmes would be finalised with the growers, and towards the end of the period supervisory staff would be selected and engaged. The plant would be operated at 60 percent capacity for Year 1,80 percent in Year 2 and 100 percent in the third, fourth and fifth years. In the Financial Assumptions, the farm equipment would be financed by the growers, and these costs are quite separate from the factory capital expenditure. All farm costs, however, must be calculated in the Study to arrive at a factory-gate price for the raw material. Fig. 13.2 also indicates that two multi-stage band dryers are envisaged in order that two vegetables may be processed simultaneously at periods where harvesting times overlap. This level of drying capacity would be needed for an annual putative throughput of 30,000 tonnes of raw vegetables in any case. In the Study all financial calculations would be in local currency but, for the purpose of this example, all calculations have been converted to €Sterling. 258