PROJECTSYNOPSISPROPOSAL

Project Title : JOINT VENTURE BETWEEN CHINESE IMPORTER AND

MAMITA ENTERPRISE
Product : Main Offer: Fresh Cavendish Banana
Secondary Offer: other Fresh and Processed agri products
Target Market : 1st. China
2nd. Russia

Overall Objectives:
T0 achieved CONSISTENCY in
1st. COMPETITIVE PRICE
2nd. QUALITY RELIABILITY of ordered Cavendish Banana (1-year contract)
3rd. WEEKLY REQUIRED ALLOCATION - 40ft container per week

Specific Project Objectives:

This business will achieve above objective through below support system CHECKLIST:
 Will partner with Big Farm Cooperatives and Shipping Forwarder (avoid unreliable
growers/consolidators and institutionalizing shipping)
 Lowering of packing materials price (To import from China instead of ordering locally)
 Come-up with Apps base Admin support (regular farm and packing house inspection, quality
control, container booking, accounting, reporting, shipping documents processing, others)
 Risk Management and Damage Control
 Technical Support
 Banking system with facility for L/C payment, payment to suppliers, timely employee salary,
employee benefits contribution and Insurance
 Produce Box and Label exclusive to joint-venture Importer to avoid price war
 To utilize Consultants and Outsource partners

This business prefers to partner directly with Importer because if we resort and loan again to an
Investor/Lender, price will increase
.

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Project Synopsis by Denis A. Salvatierra (mamita.offer@gmail.com)
Advantages:
Set-up Advantage:
Relationship: Joint-Venture: Importer will be
part-owner of Mamita
Enterprise and will serve as his
company in the Philippines that
will protect its interest (has
accountability). Innovatively
equipped to monitor and prepare
all aspect of operation. Importer
will also earn through ROI after
6 months to 1 year
Price: To achieve 6 months to 1-year
fix price terms/renewable
Payment Terms: Flexible: L/C, T/T, etc
Cash Flow/Capital: Has support budget for
emergency and necessity
Fruit Supplier: Usually ask Cash Bond Payment
enough for at least 1-month
operation. Some are flexible
with L/C. Maintain its own
farm and packing house with
own quality inspector
Box Packing There is an option: can order
from China to lower cost and
will be satisfied with Label
printing as photographic can be
done by China box
manufacturing. Box cost is high
if ordered locally and require
$800. Deposit for printing plates
(refundable upon reaching a
certain number of orders) .
Supplier may agree on terms
payment. They deliver.
Other Packing Materials Only use standard specs
supplied by
Project Synopsis by Denis A. Salvatierra (mamita.offer@gmail.com)
Typical Set-up
Mere Buyer-Supplier
arrangement: This is a high-risk
relationship as various type of
cheating can be done because of
so many loopholes, and there is
typically no accountability or
claims program. Expenses at
times gets higher due to
fluctuating farm gate price.
Worst is demurage.
Fluctuating (weekly and
season). Price is already high
and it even goes up to as high as
$18-20. Per 13.5kg box during
peak season (December to
February)
Limited to T/T 100% advance
only. The least is 80% advance,
20% against shipping
documents
No cash flow and dependent on
buyer’s down payment.
No proof of funds, grower will
not schedule harvest and
packing operation. Quality is
not guaranteed. At times,
consolidators are forced to cheat
on quality and handling because
Traders pay lower than current
farm gate price. Only
collaborate with Small and
Medium size Farm Growers.
Lack on technical knowledge
and support.
Dependent on local box
manufacturing. The only option
available to them is standard
specs – high price but passable
to international standard. The
second option is a bit lower cost
– substandard in thickness and
easily crumple if there is
moisture. May cause bruise to
the fruits inside. Supplier won’t
agree on terms, only pay now
then next day delivery. You will
pick-up
Many buy from black market.
Seems ok but substandard or
recycled.
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Note: This company has the solutions to problems this industry is facing but we need the support of the
importer to stabilize price and simplify operation. It will not require much financial Investment, only
enough to start the ball rolling while in preparation. The investment focus are based on objectives and
advantages. It can be staggered (to be returned or deducted from future order payments with assured
return on investment)

 Budget for pre-arrival of Importers (advance meeting with various big banana and pineapple farm
cooperatives)
 Budget for importers arrival in Davao intended for farm survey tour. May take 3-5 days because
farms and facilities to inspect are huge and far. There is a need for hotel accommodation and
comfortable vehicle to rent
 Budget for Trial Order and Shipping
 Joint-Venture formalization and Funding Investment in support business development and cash-
flow

Others:
Plans and proposal will be disclose further during farm tour/visit. Investor’s comments and suggestions
are a welcome development.

Things to Do (I can assist in the following):

 Hotel accommodation within Davao
 I need to meet in advance the Presidents/Head of Cooperatives or Big Farm Authorized
Representative - to be allowed to survey their farms. They are not in the farms, but report for work in
their office buildings either in Davao or Manila or Makati Philippines
 Banana and Pineapple farms in Mindanao Philippines is far from City proper and located separately
in opposite remote direction. We need to rent transport vehicle to tour importers
 As Mindanao is under Martial Law, coordination with local authorities is very important, to know
which places are safe and unsafe to visit or pass through
 I appreciate if a budget will be advance to pay for transport and other representation related to tour
and advance meeting with authorized representative

I suggest a simple Joint-Venture Agreement similar to sample contract given by one of our past Chinese
client (Chinese version with Chinese translation)

Thank you.

Submitted by

Denis A. Salvatierra
Founding Owner
Mamita Enterprise
Email: mamita.offer@gmail.com

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Project Synopsis by Denis A. Salvatierra (mamita.offer@gmail.com)