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Feasibility study of a farm to produce medicinal and aromatic herbs
Establishing a farm to produce medicinal and aromatic herbs, such as mint, thyme, chamomile, sage, and rosemary, to meet the growing demand in the local and international market. The herbs will be cultivated according to the best modern agricultural practices to ensure high quality, with a focus on organic methods to enhance health and environmental value.
Study content
Rationale for choosing the project
Growing demand: Growing awareness of the benefits of medicinal and aromatic herbs for therapeutic, nutritional and cosmetic purposes.
The trend towards natural products: Increasing demand for organic and healthy products in the local and global market.
Favorable environment: The favorable climate and fertile lands in Saudi Arabia are available for the cultivation of medicinal and aromatic herbs.
Diversification of income sources: Supporting economic diversification and promoting local agricultural production.
Government support for the agricultural sector: Providing incentives for agricultural projects as part of Saudi Vision 2030 to achieve food security.
Investment advantages
High yields: Potential for good profits as a result of the high prices of medicinal and aromatic herbs.
Ease of export: High demand for Saudi herbal products in the Gulf and international markets.
Multiple uses: Herbs are entering different sectors, such as pharmaceutical, food, and cosmetics industries.
Scalability: The project’s ability to grow and expand by adding new products or increasing the cultivated areas.
Risk minimization: Production is dependent on growing demand locally and internationally, minimizing the risk of fluctuations in the market.
Demand analysis
Domestic market: The use of medicinal herbs in natural remedies and alternative medicine is on the rise, increasing the demand for them.
Global market: Global markets have witnessed a rise in the consumption of medicinal herbs due to the growing interest in health and natural products.
Industrial demand: Many industries, such as pharmaceuticals, aromatherapy, and cosmetics, rely on these products.
Financial indicators
Estimated investment cost: Depends on the area and technologies used, and ranges between SAR 5-15 million.
Return on Investment (ROI): Expected to be between 15% – 25% per year.
Payback period: 3 to 5 years.
Expected net profit: Depends on production volume and target markets, but exceeds SAR 2 million per year after operational stabilization.
Features of the project
High-quality organic production that meets international standards.
The use of modern farming and irrigation techniques to increase productivity and reduce costs.
The possibility of exporting to international markets, opening up new investment opportunities.
Integration with other projects such as the production of essential oils and herbal preparations.
Environmental sustainability by adopting environmentally friendly agricultural practices.
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