[Date] Proposal For To Conduct

Feasibility Studies For

The Establishment Of
100,000 Metric Tons
Cocoa Processing Plant
In Ghana.
Table of Contents

Executive Summary .................................................................................................................................... 1

Introduction .................................................................................................................................................... 1
Global Cocoa Industry ................................................................................................................................ 1
Cocoa Processing Industry In Ghana ....................................................................................................... 2
The Opportunity............................................................................................................................................. 2
Company Profile ......................................................................................................................................... 4
Introduction .................................................................................................................................................... 4
Experience...................................................................................................................................................... 4
Objectivity ...................................................................................................................................................... 4
Creativity......................................................................................................................................................... 4
Scope of Works ........................................................................................................................................... 6

Executive Summary

Introduction

The object of this paper is to submit a proposal to conduct financial and technical
feasibility studies for the establishment of 100 thousand tons capacity Coca Processing f

Factory.

Cocoa is an important agricultural product in the global economy. World production for
the 2013/2014 season was forecast to top over 4.3 million tons with the export of beans
and semi-processed products valued at over US $5billion. The demand for cocoa has risen
three times faster than population growth over the last 15 years and industry forecasts
predict a 20% growth over the next decade.

Global Cocoa Industry

In 2014/2015, 4.2 million metric tons of cocoa with an approximate value of US$ 12 billion
was produced worldwide. 73% of global productions were grown in West Africa, 17% in
South and Central America and 10% in Asia. The eight largest producer countries were
Ivory Coast (42% of world production), Ghana (18%), Indonesia (8%), Ecuador (6%),
Cameroon (5%), Brazil (4%), Nigeria (4%) and Peru (2%).
In terms of its share of total world production, Africa remains by far the largest cocoa
producing region, accounting for 73% of world cocoa output in 2015/2016. The shares of
the Americas and of the Asia and Oceania regions are 16% and 11% respectively.

In February 2017, cocoa prices averaged US$2,034 per ton, down by US$162 compared to
the average of the previous month (US$2,196), and ranged between US$1,935 and
US$2,142 per ton. However, analysts polled by Reuters have indicated that cocoa prices
should regain some ground by the end of 2017 following a prolonged slide fueled by
expectations for a global surplus in the current 2016/2017 season.

Moody's has also flagged the potential for growth in world cocoa consumption, given that
per capita demand in China and India, at about 0.1 kilograms a year, is a fraction of the
4.7 kilograms seen in western Europe, including 9.2 kilograms in Switzerland. According to
the ratings agency, this indicates further potential for cocoa production to meet growing
demand over time as those markets are likely to deepen. Moody’s has further surmised
that, although still possible, depressed prices were unlikely to persist over many years since
the growing demand from the developing world is likely to provide support to a recovery
in prices over the long term.

Cocoa Processing Industry In Ghana

Ghana’s cocoa processing is expanding at an impressive rate. According to Oxford

Business Group, Ghana’s processing activities have increased by 69.1% to 225,000 tons
during the last five seasons.

However, although Ghana accounts for 20% of the $9 billion global cocoa bean market,
it is estimated that less than 30% of the country’s cocoa beans grown are locally
processed. This means that Ghana captures only 5% of the US$ 28 billion global
intermediate cocoa processing industry and only an insignificant share of the global final
consumer market of US$ 87 billion. Meanwhile, the global chocolate industry alone is also
valued at an estimated US$ 110 billion dollars, but remarkably, Ghana exports over 80% of
cocoa in its raw state.

The Opportunity

Cocoa beans are first processed into intermediate products, such as liquor, butter, cake,
and powder. Between the 2009/2010 season and the 2012/2013 season, Ghana processed
32% of its cocoa bean production. Liquor constitutes the largest portion of the processed
cocoa products and is either exported “as is” or compressed to produce butter, cake, and
powder before being exported, mainly to Europe.

Ghana is the world's second largest producer of cocoa—the main ingredient for
chocolate—and has great potential to add value to its raw cocoa exports. The cocoa
industry (beyond raw beans) therefore offers opportunities to increase export earnings
through increased processing of intermediate and finished products. Less than 25% of
cocoa beans are processed locally, allowing Ghana to capture only about 5% of the
US$28 billion of the global intermediate cocoa processing industry. Given that Ghanaian
cocoa is regarded to be of the highest quality and trades at a higher price than cocoa
from other origins, the industry can benefit immensely from value addition through
increased investments and innovations.
Company Profile

Introduction

ACM Properties Holding Ltd is a limited liability company registered under the laws of
Ghana. It is a subsidiary of 1305 Group of Companies. ACM boasts of young, dynamic and
experienced staff in their various expertise. ACM renders the following services

 Property Management Services

 Engineering, and Procurement Services
 Project Management Services
 Technical Proposal formulation

We believe that one of the most important elements to the success of any project is the
quality and experience of the people who will be assigned to work with the client. Our
expertise and experience enables us to provide the information, analysis and
recommendations necessary for our clients to make informed decisions. In addition to our
strong analytical skills for market, financial, economic and technical analyses, our staff’s
experience includes urban planning, project management services, and first-hand facility
management experience.

Experience

We boast of the largest breadth of applicable experience in industry, from the largest to
the smallest projects. Our key staff members have the requisite expertise in executing any
kind of job we undertake.

Objectivity

Our results are as objective as possible. Whether the outcomes are favorable or
unfavorable, our recommendations are based on a foundation in defensible research and
best practices.

Creativity

Creativity is the ability to generate new ideas by combining, modifying or reusing of

existing ideas. Our research will focus on strategic opportunities for success and the iconic.
Value
Scope of Works