Paddy Drying Project Overview

Impact-First Peer-to-Peer Inc.

&Farm Tech co., ltd.

Brian Powell - CEO

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A Bit about Rice to get us started:

Its called Paddy when it is harvested.

Its called Rice after its milled.

The paddy needs to be dried.

The drying needs to start immediately.

Some historyabout Rice:Traditionally, the fields wereharvested by hand, which tooka week to ten days for a 5-acre farm.

The paddy that was harvested was spread in the sun each day and stirred for three days to dry.

The farmers just worked around the rains.

Farmers have begun hiring combines to harvest their paddy because it is cheaper than hiring labor to do it.

Rice Harvesting in Myanmar Today:

They are still drying it the traditional way, but now in bulk because they get it all in one day.

And they have lost their ability to work around the rain because they must schedule the combines in advance.

The Problem:Farmers lack the space and labor to adequately spread and mix their entire paddy harvest at once causing uneven drying and increases in broken grains. (Both of which lower its value.)

Their entire harvest is at risk of substantial damage or loss in the event of rain in the three days following the harvest.

The risk of rain on any given day in Bago in June is 70%.

Mechanical Paddy Drying• Consistent, high quality results.• Rain or Shine.• Day or Night.

• No risk of molding, sprouting or cracking• 20% moisture content reduced to 14% in

6 hours.• Ready for milling or long term

storage the day after it is harvested.• Tested and proven in Myanmar for over

10 years.

The Solution:

• Combines were introduced four years ago• 70% of the farmers around Shwebo hired

combines this past harvest season• 2 million acres of irrigated paddy fields

• 8,000 paddy drying companies are needed• Located in villages for next day access

Mechanized harvesting needs mechanized drying to go with it.

Market Size:

Competition:• 400 flatbed grain dryers are currently in use in Myanmar.

• 97% are owned and operated by rice millers, with the remaining 3% owned by a few large farmers and development organizations including:• Winrock International• The International Rescue Committee• Radanar Ayar

• 68 vertical shaft grain dryers are in use.

• Solar tunnel dryers have also been tested.

8-Hour Paddy Drying Service• 5-ton flatbed dryers can dry up to 3 loads a day

• Capacity to dry the harvest from:• 500 acres of monsoon paddy• 250 acres of summer paddy

• Locally owned and operated business• Located in the farmer’s village for easy access as

transportation is a challenge for rural farmers• Projected annual profit of $4,000

• Saves farmers time and money• Reduces their risks and improves their harvest’s quality• While being hassle free

Our Product:

Our Plan:• Hire and train 20 staff to form 10 field

teams• Market through demonstrations

• West Bago – June to mid-July• Sagaing – Mid-July and August• East Bago – October to mid-November

• Launch 30 companies in 2017• Provide on-going mentorship and support

• Expand by splitting the field teams each year and each taking on a new member

2017: $300,000 Equity/Grant for Scale Up$225,000 Loans to launch 30 Local Businesses $164,000 Revenue from Demonstrations($610,000) Total Expenses

2018: $1,125,000 Loans to launch 150 Local Businesses$164,000 Revenue from Demonstrations($1,260,000) Total Expenses

Profitable in 2020 with $5M in revenue.

Financials:

• Post-Harvest Loss Reduction• $2.95 per $1 invested per year• $14.75 per $1 invested over the 5-year life of

the equipment

• Increase Market Value• $1.70 per $1 invested per year• $8.50 per $1 invested over the 5-year life of the

equipment

• Total = $23.25 per $1 invested over 5 years!

• Average of $800 per farmer per year = a 25% increase in their family’s annual income!

Impact:

Thank You!