As a non-profit business, we are working toward covering all of the overhead costs of our Internship and Agricultural Extension programs through our agribusinesses. The oil mill is one of our promising income sources. We are excited to be in our very first season of this business, as we work toward partnering with local farmers who grow sunflower seed and sell the harvest to KT for a fair market value. We have already built our milling (processing) plant and purchased and installed the seed cleaner, milling machine, filtration system and over 13 tons of sunflower seed from our cooperating farmers in this first year. The electrical installation for the mill is now fully complete. We are ready to start processing as soon as we receive our certification with Tanzania Bureau of Standards (TBS) and Tanzanian Food and Drug Administration (TFDA) which should be any day now!
Now we are looking for assistance to expand our capacity for this farming season. Farmers who cooperatively grew sunflowers for KT last year went home very happy after selling their harvest to KT. We would like to scale up by as much as 700% if possible. In other words, we would like to be able to help as many as 400+ farmers in 2020 to be able to earn an income from growing sunflowers. To expand this fast, we need your help.
There are a number of costs involved:
- Tanzania Bureau of Standards (TBS) certification
- Occupational Safety and Health Authority (OSHA) certification
- Labeling and bottling costs
- Operator and nutrition specialist salaries
- Product transport costs (from farmer and to market)
- Purchasing power for the 2020 sunflower harvest
- Warehouse expansion
We have factored the above costs into our overall processing costs. As we said, we are targeting 400+ small-scale farmers for 2020. Each farmer will grow approximately 250 kg, for which he will receive $96 USD. Transport will cost about $5 USD per 250 kg and processing and packaging about $33 USD. This means that the total cost for 250 kg is $134 USD, $96 USD of which goes directly into the hands of the farmer as earned income. While this may not seem like much in Western contexts, here in Tanzania where poor farmers are living on less than $1.19 USD per day it is significant!
KT is trying to raise $53,600 USD to jump start the milling business and $14,400 USD for the warehouse extension for a total of $68,000 USD.
While we would like to jump into the market at this capacity, the fact is we will work with whatever God supplies. Every gift of $134 USD will result in $96 USD income for crop sales in a farmer’s hands year after year.
Sustainability is the goal of KT and self-reliance the goal we have for every small-scale farmer. Consider being a part of this oil milling capacity building.
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