Project Costing

Initial cost (first season) for every 40 hectare (100 acres)

Initial cost was divided into 3 sections :-

Types of Cost Cost (RM)

Development Cost - Buying of machinery and
area cleaning 406,700

Input Cost - Buying of seedling, fertilizer,

herbicide, hormone and pesticide. 305,200

Labour Cost - Field maintenance such as

fertilization and harvesting. 225,000

Total 936,900
Full expenses has been shown in cash flow chart

Project Costing

Next season cost for every 40 hectare (100 acres)

The next season cost shown the decreasing in expenses :-

Types of Cost Cost (RM)

Development Cost - Cleaning the area of farm 31,700

Input Cost - Buying of fertilizer, herbicide,

hormone and pesticide. 135,200

Labour Cost - Field maintenance such as

fertilization and harvesting. 225,000

Total 391,900
Full expenses has been shown in cash flow chart
 Project cost
The estimate of initial cost (for 100 acres/40 hectare)

First season Second season

A. INCOME
2) Sale : 7kg/shaft x 7500 shaft/hectare RM 2,100.000 RM 2,100.000
(RM 1.00/kg)
Total Income RM RM 2,100.000
2,100.000
B. EXPENSES COST
Development Cost
1) Machinery RM 200.000 -
2) Cleaning area (RM875/hectare) RM 35.000 -
3) Tillage (RM 500/hectare) RM 20.000 RM 20.000
4) Fencing Installation (RM 1000/hectare) RM 40.000 -
5) Water pump RM 11.700 RM 11.700
6) Sprinkler Installation (RM 1500/hectare) RM 60.000 -
7) Equipment - hoe and rope RM 10.000 -
8) Land rental cost (RM 300/acre)/year RM 30.000 -
Total Development Cost RM 406.700 RM 31.700
Input Cost
1) Seedling (RM 4250/hectare) RM 170.000 -
2) Fertilizer (RM 1500/hectare) RM 60.000 RM 60.000
3) Herbicide (RM 400/hectare) RM 16.000 RM 16.000
4) Pesticide (RM 300/hectare) RM 12.000 RM 12.000
5)Fungicide (RM 240/hectare) RM 9.600 RM 9.600
6)Hormone (RM 940/hectare) RM 37.600 RM 37.600
Total Input Cost RM 305.200 RM 135.200
Labour Cost
1) Management and Administration RM 75.000 RM 75.000
(5/hectare x RM2500/month)
2) Farm workers (10/hectare x RM 54.000 RM 54.000
RM900/month) RM 30.000 RM 30.000
3) Fertilization (RM 0.10/shaft x RM 45.000 RM 45.000
7500/shaft) RM 15.000 RM 15.000
4) Cycle fertilization (RM 0.15/shaft x RM 6.000 RM 6.000
7500/shaft) RM 225.000 RM 225.000
5) Pesticide application (RM 0.05/shaft x
7500)
6) Unexpected cost
Total Labour Cost
Total Expenses Cost RM 936.900 RM 391.900
 RM 2,100.000 RM 2,321.000 -
C. Cash Flow Balance (A - B) - RM 936.900 RM 391.900
D. Total Cash RM 1,163.100 RM 1,929.100

Project Analysis

Technical Analysis
Technical Analysis covered :-

Soil - The chosen soil must have enough energy sources to

provide water for crop and free from flood because
lemongrass cannot be soak in water for a long period of
time.

Basic technique - The professional or non-professional labour must have

a knowledge in planting and care technique.

Financial
Based on the cash flow, this project is highly potential to get the high
profit in short time period. Planning and research have been done by
Three Tree Group and this project can be running for another 10 years.

Closing

Summary
This Lemongrass project have been running in commercial by the selected
company, Three Tree Group Sdn. Bhd. Positive impact will be shown in
social, economy and politics. This project will increase the living cost and
income for people that contribute to this project and also give an
advantage to young generation to start a successful business.

Our appreciate because spending time to have a look to this

Lemongrass project.