"The summary of technical and pre-possibility surveying"

Name of project:

Processing and packaging of natural honey (3000 tons per a year)

The address of project:

Ardabil province

Date of preparation 2019

1- Project Introduction:

In terms of having different climates and having ninety million hectares of grassland, twenty million hectares of forest, and seventeen million hectares of tree gardens, Iranhas the potential to grow and develop beekeeping, afield of animal husbandry, throughout the year.

Iran ranks 11th in the world in honey production and its share of honey to the whole world is 2.2%.Honey exports of saw increase of 90% between 2001 and 2003and reached to $4,400,000 and its production has reached 83,700 tons in 2004.

At present, having 2.5 million modern beehives and 38,000 native beehives, 49,000 people are working in the beekeeping industry. According to the report of the Uremia Agricultural Jihad Organization, West Province ranked first in the country due to production of 6,221 tons of honey in 2005 and 12.5% growth in 2006.

Ardabil Province, meanwhile, ranked third in the country in producing honey by producing 6,000 tons annually. According to experts in this field, its mountainous and varied climate have caused its mountainous honey be of considerable quality. But lack of a famous brand among the province's honey producers, raw honey sale, and lack of proper packaging, all have deprived the province of its relevant revenues.

2. Location of project;

The location of this project is on one of the industrial towns of Ardabil

3- province:

Ardabil Province, with the center of the historical city of Ardabil, has 11 cities with an area of 17,953 square kilometers, which accounts for about 1.09% of the country area. This province is neighboring with the Republic of Azerbaijan from the north and northeast and has about 2282 km of water and land borders with that country. It borders Zanjan to the south, Gilan to the east and East Azarbaijan to the west.

According to the Census of 1395, the population of the province was 1270420, out of which 866,000 (68%) lived in urban areas and 404420 (32%) lived in rural areas.The province's share of the country's total population is 1.59% and 22nd in the country.The population density in Ardabil province is 71.4 people per square meter.Ardabil city center has 11 cities, 26 cities and 28 districts. The city centers include Ardabil, Bale Savar, Aslanduz, Pars Abad, Khalkhal, Germy,

MoshginShahr, Kosar, Namin, Nir and Sarein.

The climatic features of the province mainly include four factors: topography, energy balance (influenced by latitude), air currents and presence of in the east of the province.There are three types of weather in Ardabil province: (A) Semi-humid, cold climates that cover the central, western and southern regions

of the province.

B) Cold and humid climate that covers the mountainous areas.

C) Dry and temperate climate that covers the northern part of the province.

According to meteorological data, the and Moghan plain areas are the warmest and the heights of the slopes are the coldest in the province.

There are many mountains and rivers in this province. Sabalan Mountain, with a height of 4811 meters, is the third highest point in Iran.

4- Ardabil plain on vicinity of Moghan plain and MeshkinShahr is one of productive areas of province for agriculture. There are about 18000 users on agriculture on 158 villages. Ardabil country is one of the most important countries of province , so that one third of agriculture of products regarding weight one fourth regarding value are on this province it has 12 thousand hectare forming land containing 65 thousands hectare irrigated lands , 47 thousand hectare2, rain fed cultivationthousand hectare gardens and 100 thousands hectare green grassland

5)The map of ways to access the project- Ardabil county- is as follows:

6)Access to infrastructures: row Needed infrastructures Distance till the Supply of project infrastructure 1 Water 0 In industrial town 2 Electricity 0 In industrial town 3 Gas 0 In industrial town 4 telephone 0 In industrial town Khalkhal 5 Main road 0 Main road of Ardabil- Namin Main road of Ardabil- Moghan Main road of Ardabil- Sarab Main road of Ardabil- Khalkhal

6 Secondary road - - 7 Air port 5 KM Ardabil air port 8 Port 75 KM Astara port 9 Train station 221 KM rail road 10 Azerbaijan custom 165 KM Bilehsavar custom 11 Azerbaijan custom 75 KM Astara port

7)Product introduction:

Product: packed Honey

The properties of honey are not related to the basic constituents of sugars, as they can be found in any other sweet product such as simple sugar, other nectar, syrup, marmalade, etc. These special properties can be attributed to minor components of nectar and bees themselves.

Honey Purification: At this stage, the separation of any impurities such as wax components and other airborne particles and bubbles that were introduced at the time of extraction. There are two practical ways to accomplish this: settling and purifying. Crossing the filter can be an alternative or complement to the practice of settling. This is often done in large workshops, where large amounts of honey are processed daily such as several tons at different stages.

Since this process requires high heat and some of its natural components are damaged, such as pollen, etc., this honey cannot be sold as edible honey in the

EEC countries.In some countries consumers buy this honey at a lower quality, while supermarkets and large chain stores prefer the quality of the honey.Because they can remain relatively homogeneous on the shelves of stores for a relatively long time. Humidity level: Honey content is actually the most important factor in determining its quality, as it affects its shelf life and its process properties.Although moisture can be measured after honey extraction, only fully ripe honey can be harvested, meaning that more than 75 percent of their homes are covered with honey.It is possible to reduce the amount of moisture after harvesting by placing honey in warm chambers at temperatures of 30-35 ° C and passing through the air.

Heating natural honey: Heating honey by any means has a negative effect because it reduces instability and aromatic substances (which is directly related to temperature and duration of accumulation).So when it comes to heating honey, it is meant to heat it at a low temperature and for a short time for technical purposes.

8-equipments and machineries 8-1) Total machineries needed for project Row Description Number Unit price Total cost (Rial) ( thousand rials) 1 Kiln for 1 180000 180000 preparing hot water to transfer pump of circulation 2 Bath for heating 1 220000 220000 wares of honey 3 Bath for honey 1 Capacity 150000 150000 storage 5000 liter 4 Pump for 1 100000 100000 transferring honey to storage 5 2 walled Pillar 1 250000 250000 storage platform 6 Circulation and 1 300000 300000 transfer pump 7 2 layer filter set 1 330000 330000 8 Heater labeling 1 90000 90000 9 Jet printer 1 160000 160000 10 Viscosity filling 1 4 tops with 1000000 1000000 set for thick capacity of liquids 1000 liter per an hour 11 Security camera 1 50000 50000 12 Extinguishingset 3 15000 60000 total 2790000

8-2) Transportation table

Row Description Number Specification Unit price Total cost (Rials) ( thousand Rials) 1 2 Iranian 125000 250000 Peykan (cargo van) 2 Nissan ( 1 Iranian 220000 350000 cargo van) Total 600000

9-owrership and legal permission

9.1-owrership of land

The ownership of land is for the industrial towns company.

9-2- intellectual ownership and points

Ownership there is not any intellectual ownership on this project

. Legal permissions For establishing a honey processing and packaging unit, a permission from agriculture And jihad organization of province is a must: this is a process for it

1 Submitting request to management of agricultural industry of province 2 Completing and offering necessary documents and legal inquiries and sanitary license for working on food sector 3 Sending documents to related commission for final decision 4 Accepting and issuing licenses for establishing and utilizing

Process of getting permission for honey processing and packaging

10 Project finance plan:

Summary of financial status Fixed capital 468060 million Rails Working capital 601110 million Rails Annual cost 486729 million Rails Annual income 732328 million Rails Internal rate of return 22.2% Period of capital return 4 years Annual gross profit 245599 million Rails Net present value 234977million Rails

10-1- Cost estimation

Row Topic Cost (million Rails) 1 Fixed capital 468060 2 Operating costs (working capital) 601110

10-2-Fixed capital estimation (capital costs)

Row Topic Cost (million Rails) 1 Cost of land purchase 105,000 2 Landscaping and land improvement 3,800 3 Civil operations and construction of buildings 291,914 4 Manufacturing machines and equipment 47,900 5 Installation equipment 5,125 6 Vehicle Equipment 3,200 7 The cost of office and workplace equipment 1,300 8 Pre-production Pre-investment studies 230 expenses Managing and organizing the project and obtaining the 160 necessary permits Acquiring technology 9 Unforeseen expenses (2%) 9,431 10 11 12 Total 468,060

10-3-Estimation of working capital (production costs)

Row Issue Cost (million Rivals) Current costs 1 Raw materials (buying raw honey) 253,000 2 Human Resources (70%) 18,288 3 Marketing (excluding manpower) - 4 Energy cost 9,580 Annual insurance cost (two-thousandths of the book value of 907 Other current buildings, equipment and raw materials) costs Packaging cost Fixed costs 5 Raw material - 6 Human Resources (30%) 9,552 7 Marketing (excluding manpower) - 8 Depreciation expense 18,199 9 Other fixed costs

Total 601,110

- Estimation of earnings

11- Estimated annual project sales in the first three years

Description The amount of honey jar production Unit value Total value per year (thousand (thousand Rivals) Rails) Honey packed in jars of 280 2,754 70,000 192,764,200 grams Honey packed in jars of 380g 2,087 90,000 187,896,100 Honey packed in jars of 450 1,799 100,000 179,998,600 g Honey packed in jars of 900 953 180,000 171,669,100 grams Total 7,593 732,328,000

Description Required internal currency Required foreign Total Million Rate Equivalent to million currency (million (million Rails Euros Euros) Euros) Fixed capital 468,060 155,000 3.01 0 3.01

Working capital 601,110 155,000 3.87 0 3.87

Total 1,069,170 155,000 3.88 0 3.88 investment Currency exchange updated on February2019 (at NIMAExchange Rate)

- The physical progress of the plan so far Yes No*

12. Operational Plan and Time schedule of project implementation:

Project implementation time schedule table

Duration (year and month) First year Second year Step Description 2 4 6 8 10 12 2 4 6 8 10 12 Conducting investment studies Obtaining necessary permits Land acquisition and preparation Construction and landscaping operations Purchasing, installation, and running machinery and equipment Recruitment and training Project exploitation

13-Main target markets: The target market for this project is 80% of the domestic market and 20% of the foreign market.

14. Project Duration:

The project is expected to last 20 years.

15. Final Market Review:

There are beekeepers all over the world and they have differences in how they work.For example, the highest honey production in the world is in the USA and

Australia, which fluctuates between 20 and 40 kg, and the lowest in Africa, with a performance of about 6 to 8 kg.Honey production in the world is about 630,000 tones, producing about 50 million colonies of honey per capita. However, the average per capita production per colony can be estimated to be around 12 kg.

About six and a half million people worldwide work in this field. It goes without saying that this difference in the performance of each colony, in addition to the type of beehive and the genetic quality of the bee, depends on the different climatic climates. The above-mentioned countries are among the countries with no problems.

The major producers of honey are the US, Europe, the Soviet Union and Australia.

In Europe, despite the relatively high per capita consumption compared to other countries, they import large quantities of honey each year to compensate for their deficiency.This shows the high status and value of honey in every European person's diet.The Soviet Union maintains its consumption at the level of production and meets its needs by consuming about 500 grams per capita. Australia is one of the world's leading honey exporters with a consumption of 500 grams per capita.

Iran has enough potential to grow and develop this field because of its diverse climates and having 90 million hectares of grassland, 20 million hectares of forest and 17 million hectares of orchards. Beekeeping is possible throughout the year.

The average honey production per capita in Iran is 420 grams and its consumption per capita is 390 grams. Iran ranks 11th in the world in honey production and its share of honey in the whole world is 2.2%.Iran's honey exports between 2001 and

2003 increased by more than ninety percent to $ 4400000 and its production in

2008 amounted to 82700 tons.

At present, there are 49,000 people in the beekeeping industry with approximately

2.5 million modern beehives and 38000 native beehives.According to the report of Agricultural Jihad Organization, West Azarbaijan province has gained the first rank in the country in 2005 with the production of 6221 tons of honey and in

2006 with the growth of 12.5%.

According to the Minister of Agriculture Jihad in 2005 out of 2820000 honey bee colonies, 34000 tons of honey was produced, which is about 21% more than in

2004.

Ardabil province, with 6,000 tons of honey annually, is the third largest producer of honey in the country, and according to experts considering the mountainous climate and its diverse climatic conditions, it has produced remarkable quality honey.But the lack of a brand among the province's honey producers along with the raw materials and the lack of proper packaging has deprived the province of its associated revenue.

16. Period of capital return:

Capital return period on this plan is four years (three years after operation).

17. Incentives, features and benefits of the project:

This project is proposed based on the capabilities of Ardabil province in honey production and a serious need for brand-building at the national level in the province. The present proposal is studied and looks completely justified in terms of implementation, technical, and management feasibility. Given the rate of domestic investment return of 22.2%, this project is extremely justifiable in terms of economic aspects, employment, and miscellaneous products. Some of the features of the plan include good job creation in the area and the boom in relevant businesses.

18-"Summary of economic aspects of the Project"

Type of Activity Exact title of activity Product name Nominal capacity with code (ISIC) and its unit Agriculture - Industrial 7495412370 Packedhoney 3000 tons Duration of Total fixed investment Annual working capital Required human implementation (Million Rails) (Million Rails) resources One year 468,060 601,110 150 Internal Rate of Net present value (NPV) Applicant’s capital Rate of benefits to Return (IRR) (Million Rails) brought costs (B/C) * (Million Rails) 2/22 234,977 865,725 2.6

19. Specifications of organization and company of the project owner:

Name (natural/legal persons): Ardabil Province Agricultural Jihad Organization

Address: Ardabil Agricultural Jihad Organization, Beast Administrative Office, Karshenasan Town, Ardabil, Iran.

Phone: +984531773223 Fax:

Informed expert: Investment Service Center Experts Contact Number: +984533741940