SUNO Works Limited

Step One
We believe that it is important that the Osun State Government (OSG) has some continued involvement
in the planned new leasing entity; it is crucial that the state agricultural development policy and existing
relationships are aligned and considered at all times; in order for the business to achieve sustained
growth.

Suno Group Limited would purchase its inventory of agricultural equipment and heavy plant from the
Osun State Government via a sale and leaseback solution allows the user (OSG) to transfer the risk of
ownership to Suno Group Limited in exchange for the use of the plants and machinery with fixed
monthly operating costs.
 

Step Two
The newly OSG would then farm out the operation under a Full Maintenance Lease (FML) agreement to
Suno Junior Limited.

Suno Junior Limited a newly formed plant equipment leasing company. take over the;
Leasing and delivery
Operating and management
Service and Maintenance
Training and education
Procurement

Of all Osun state government owned agricultural plant, i.e. tractors, ploughs, harvesters, etc.,
plus storage facilities.

In return Suno Junior Limited will provide the OSUN State government with a 20% of the
revenue after costs and taxes.

We will offer finance and operating leases with a flexible rental structure to suit needs. This will
enable us to refinance existing assets, rent out and manage plant/assets efficiently.

Due to our unique relationship with four partner banks, we guarantee a financer for the lease and
procurement current and future plants and machinery in any brand, make or model required.

This will help us provide a state wide platform which allows us to build and manage existing and new
plant and machinery resource with ease and in accordance with our operational needs.

We aim to do this through our provision of a complementary operating lease through the handling
of the following responsibilities:

v  Efficient and Effective Fleet Operations

 We ensure that the exisiting service suffers little or no downtime as we will offer a seamless service
that guarantees both efficiency and optimal effectiveness.

v  Full Maintenance Fleeting

Our plan is to develop a Full Maintenance services which is designed to keep plants and machinery
running safely and on time; this is crucial to the ongoing success of the service – a major cost saver.

Our plan is to provide superior preventive and diagnostic maintenance, all designed to optimize
performance, track assets and minimize downtime.

v  Sourcing, Purchasing and Delivery

Whatever brand, make or model of the plants and machinery we acquire, we will develop business
relationships with all the leading brand names and dealerships to obtain exactly what it is we want.
We will handle all that is involved in the purchasing as well, regardless of the future volumes
required.

Benefits
The benefits of a sales and leaseback agreement include: 
 Releasing the capital tied up in plans/machinery and providing the OSG with cash for core
activities
 Removing the OSG’s plant and equipment inventory from the balance sheet
 Eliminating the risks of depreciation and resale
 Fixing monthly payments, which can includes amongst other asset management services,
replacement of parts), maintenance and servicing. This facilitates easy and accurate budgeting.

PLANNED DEVELOPMENT PROJECTS

Brazil, Malaysia and Limpopo (BBE Scheme)

Land Expansion Plan –

Introduction
Aim to increase the levels of agricultural production in Osun state by increasing the total acreage
farmed.

At present farmers are farming as low as 20% of their allocated land due to capacity limitations, namely;
 Cost of land clearance
 Cost of increased arable crop yield – Fertiliser, improved seeds, agrochemicals and mechanized
tools

Cost plus the allied risks are major obstacles that hinder the increased arable crop yield amongst the
bulk of Osun state farmers.
Summary
Suno Junior Limited or X10ion Limited a specially created entity would obtain a bank facility/loan which
enables the company to clear in its first year up to 2500 hectares of land – 5 hectares x 500 farmers.

Farmers would sign up to the scheme which would involve them agreeing to;
1. repayment of the land clearance costs an agreed monthly payments after a set moratorium
2. Planting of a pre contracted crop.

The land subsequently undergoes a preparation process involving clearage, fallow period, tillage, etc.

The contracted crop is grown and harvested.

The terms of the Extension Plan provide farmers with increased access to credit and inputs; which will
result in a higher crop yield and income.

Facts
Fertiliser, improved seeds, agrochemicals and tools over 93% of Osun farmers would benefit from such
resources –

Since the 1960’s the nine National Agricultural Plans have phase by phase helped to develop the size of
farms/plantations and the size of crop yields of specific crops by over 700%.

Thailand’s
2.3.4 Agriculture is the main source of income and food security. It
generates various benefits such as being the source of job creation and
food security,
preserving the traditional way of life, alleviating poverty and reducing
global warming effects.

The main concept of the Eleventh National Economic and Social

Development
Plan derives from the Eighth to the Tenth Plans’ guiding principles. The
Eleventh Plan has
adhered to the Philosophy of Sufficiency Economy and that it should be
applied to all
parties at all levels. Development of people, society, economy,
environment and politics are
integrated holistically to increase Thailand’s capacity for resilience and
adaptation including
at the level of the family, community and the nation. People-centered
development and
participation are applied throughout the national development process.

5.3 Strengthening of the agricultural sector and security of food and

energy.
Development guidelines include:-
5.3.1 Reinforce natural resources as the foundation for agricultural
production base. Productive arable lands will be conserved and small
farmers will be
supported to own or have rights to farmlands. Land will be redistributed
equitably as well as
using tax measures to increase efficiency of land utilization. Moreover,
land management
mechanism will be improved. Natural resources for agricultural
production will be restored
while good agricultural norms and practices will be promoted for
supporting sustainable
farming.
5.3.2 Increase agricultural productivity. Research and development will
be
emphasized while agricultural production will be adjusted appropriate to
socio-geographical
conditions. Imported chemical fertilizers and pesticides will be
controlled and their farm
uses will be inspected to meet clear standards. Agricultural practices for
preserving
biodiversity will be encouraged to be suitable for the climate and the
environment, while
basic services for agricultural production will be improved. Science and
technology for
agriculture will be developed, including support for using technologies
for production
friendly to the environment.
5.3.3 Increase value of agricultural commodities along supply chains.
Local products and services will be supported to create added value
including in agricultural
products, food and energy. Collaboration between local educational
institutes and the
private sector will be encouraged for research and development while
farmers and
entrepreneurs will be supported to apply knowledge, technologies and
innovations that are
environmentally friendly. Quality and standards of food and farm
products in line with
production systems will be upgraded to meet international standards.
Markets and future
markets for agricultural commodities will be strengthened, and the
participation of the
private sector, community organizations and agricultural institutes will
be encouraged in
managing the commodity and food system. In addition, the efficiency of
logistic
management in the agricultural sector will be improved.
5.3.4 Create job and income security for farmers. An income insurance
system together with crop insurance will be developed to cover all
farmers. Fairness for
farmers and stakeholders in the contract farming system should be
encouraged. Farmers
be induced to engage in agriculture. Agricultural institutes and
community enterprises will be
major mechanisms for supporting self-reliance. At the same time, small
farmers affected by
free trade agreements will be empowered in order to maintain their
living conditions.
5.3.5 Enhance food security and develop bio-energy at household and
community levels. People and communities will be encouraged to plant
trees in
households and public areas. Farmers will be encouraged to utilize
sustainable agriculture
following the Philosophy of Sufficiency Economy. Knowledge
management in agriculture and
food production will be widely and continuously disseminated.
Appropriate consumption
behavior at individual and community levels, and creation of production
and consumption
networks among communities nearby will be promoted. Application of
zero waste approach
in agriculture will be encouraged in order to utilize farm residues to
produce renewable
energy at the community level. Infrastructure will be developed in order
to help
systematically enhance food security for farmers and communities.
5.3.6 Establish bio-energy security to strengthen the agricultural sector
and support the national development. Management system for food and
energy crops
will be set up, while research and development for increasing
productivity of bio-energy
production from energy crops will be promoted. Efficiency in bio-
energy production and
utilization related to manufacturing and service sectors will be increased.
A mechanism for
regulating price structure of bio-energy will be created and public
awareness of efficient
energy use will be raised.
5.3.7 Improve public management to enhance food and energy security.
Farmers, local scholars, the private sector and local communities will
participate in
agricultural development planning, while actions among government
agencies both at
central and local levels will be streamlined and integrated. Food and
energy database
systems will be developed ranging from production, marketing to
consumption. Laws and
regulations related to agricultural development will be improved.
International cooperation
at bilateral and multilateral levels, particularly in the ASEAN
community, will be encouraged
in order to secure food and energy.

Produce Offtaker Scheme

By maintaining long-term relationships with customers like General Mills and McCain, AgroMantaro
provides a steady income to hundreds of small-scale farmers as well as job security for more than 600 em

AgroMantaro’s business model is built on multi-year deals to supply its core clients: General Mills for artichokes and

McCain for jalapeños. Augusto explains, “Everything that we produce and everything that we invite the growers to

produce is already sold. The challenge here is not selling; the challenge here is complying with our customers’ high

standards.”

To maintain production quality and quantity requirements, AgroMantaro invests in its farmers as well as its plant

employees. While most of AgroMantaro’s suppliers historically grew low-value subsistence crops such as maize and

potatoes, producing jalapeños and artichokes for AgroMantaro has increased their incomes.

AgroMantaro’s business model is built on multi-year deals to supply its core clients: General Mills for artichokes and

McCain for jalapeños. Augusto explains, “Everything that we produce and everything that we invite the growers to

produce is already sold. The challenge here is not selling; the challenge here is complying with our customers’ high

standards.”

To maintain production quality and quantity requirements, AgroMantaro invests in its farmers as well as its plant

employees. While most of AgroMantaro’s suppliers historically grew low-value subsistence crops such as maize and

potatoes, producing jalapeños and artichokes for AgroMantaro has increased their incomes.