Financial evaluation of seed processing

This section is adopted from a case study for a small-scale seed processing business model in Myanmar including seed drying using a flatbed dryer with a capacity of 4 t/batch and cleaning machine able to clean 500 kg/h. The production cost components are shown in the table below.

Seed production costs in Myanmar (Kyats/kg); USD1 = MMK1,403.27 (6 April 2020)

Figures show the sensitivity analysis of net profit and payback period for a seed processing business model (BM) depending on the processing capacity and selling price of the seed, respectively. At the point of 100 t/year (Fig. a), the BM will breakeven at 3.5 years. Assuming an increase of capacity and benefitting additionally from branding reputation starting from the year 3, net profit can reach more than USD12,000/yr (Fig. b).