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Description
Our concept model for developing an oil seed processing to bio-fuels business will bring together participants through contract relationships, partnerships, and investment opportunities.
The oil seed processor is the centerpiece for this business model, and will
1. recruit and pay a premium price to growers who provide specific commodities that are grown using organic or best practice methods;
2. process the seed to food grade oil;
3. market a portion in bulk to restaurants for fryer oil at a wholesale price with agreements to return the used collectable cooking oil to the processor;
4. contract with a local small biodiesel processor to pick up oil and make biodiesel.
The processor would receive a percentage of the biodiesel to power the processing enterprise. The processor could sell bulk food grade oil to other processors and/or spin off a separate operation that bottles fancy oils for retail. The seed cake from the oil pressing operation can be marketed as food or feed ingredients and could be another potential enterprise spin off.
The processor creates the resource stream through farm commodity contracts. The processor processes the commodities and through contracts, mutual partners, and business opportunities moves the constitutes downstream to other businesses and general customers. In this business model many retail entrepreneurs and small businesses get the products and resources to supply their market. Every time the processing company brings in a new different crop it creates a new potential for more market development and opportunities. The processor becomes a two way threshold for the commodity grower to reach retail market place and for the retail marketers to access the commodity resources. In this case the emphases is on niche commodities grown with organic or best practice methods and a USDA food grade processing facility that serves a local bio-regional market and targets a health and nutritionally minded public.
Proposed Location
Ohio Valley
Proposed Supply Chain Category
Services
Renewable Energy
Waste Handling/Recycling
Marketing
Processing
Visibility
Public - accessible to all site users
Value Proposition
<p>Carbon Cycle Engineering will provide the business model for the entrepreneur that wants to partner in the oil seed processing business. This is a turn-key opportunity for a Agriculture business minded young entrepreneur who can contribute a limited to moderate amount of capital and abundant sweat equity to start the oilseed processing business. Carbon Cycle Engineering will take a role in providing consulting, engineering, marketing connections, and investor opportunities. The business model can support several related enterprises utilizing an up stream - down stream business model each entity grows a business from continued combined product development and resource utilization.</p>
Workload
<p>Carbon Cycle Engineering will be intrigue in the initial business start up and structure according to the CCE business model but the client will be the operator and responsible for the day to day operation. Carbon Cycle Engineering will continue to provide services as needed and work to provide investor opportunities. The entrepreneur will provide the human resources to assemble and operate the oil seed processing business.</p>
Mapping
<p>Establish location with grain storage potential, and approximately 4-6,000 sq ft clean building. Install processing equipment and plan shipping, develop relationships and markets. This the ambiguous part of the plan because their are other processors that may absorb the oil seed processing operation and share resources and costs as part of a co-processing agreement. The outcome of this project depends on the client/owner and what he or she brings to the table.</p>
Required Resources
<p>Carbon Cycle Engineering is not the primary owner but may be one of the investors as well as providing services to the enterprise. The entrepreneur for this business has not been determined so what this person or persons brings to the business formula has yet to be discovered. The success of this business model depends on building a multiple of businesses that share and cooperate as much as possible. Building this model depends on the compatibility of the applicants and the strength of the contract obligations. If this model is implemented correctly it can foster several strong enterprises.</p>
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