In order to fulfill the advantage of the weather, soil, labor and other resources of Yunnan , MD commits itself to agro-forestry industry in Yunnan since its foundation. In particular, MD accelerated its pace of olive industry development since year 2003.

MD believes that under the guidance of market and Chinese governmental policies, with the support of local government and professional technicians, it has potential to develop into the top producer of olive oil in China .

•  Project Profile

MD will turn 500,000 mu wastelands of Yongsheng County of Lijiang City, Yunnan Province into olive orchards and olive processing plant in 5 years.

Firstly, an approximate 50,000 mu ( ≈ 3,333ha ) model farm would be constructed in Yongsheng County for olive planting to demonstrate the best practices for the production of olive and for the introduction of new varieties for marketing test, to encourage and guide local farmers to join in this project as contract farmer, and to draw governmental attention and obtain corresponding technical and financial support.

Subsequently a contract-farming network (about 500,000mu farms) would be developed in and around Yongsheng County and these farmers would take seedlings from MD nursery and grow them on their farms under protocols specified by MD. During production, a trained arboriculturist team of MD would guide and supervise the contract production of olive products by these farmers.

In the meantime, an olive processing plant with production capability of 10,000 T/Year would be built up along with the plantation to process olive fruits purchased back from these contract farmers at negotiated price by MD.

Olive oil and other products of the project would be put into both the domestic and abroad markets via existing and future distribution network of MD and its partners.

•  Purpose of Project

Develop olive industry of Yunnan , actively improve the water & soil conservation and accelerate local economy development.

•  Project Management System

COMPANY + FARMERS and PRODUCTION + SALES

•  Background of Project

------Historical

In 1960' s, olive trees were introduced into China from Albania and have been widely grown. Yongsheng County of Lijiang, Yunnan Province has been approved to be one of the most suitable places for olive plantation in China and was one of those planting sites then. 2 varieties of olive trees have been widely planted in Yongsheng County at that time. But as processing technology hasn't been passed to farmers by government afterwards, local farmers didn't know how to process olive and couldn't produce any olive oil. In other words, the olive trees didn't bring much benefit to local people. Therefore, farmers there didn't realize the value of olive trees and consequently chopped off some of the trees. But from that trial, hundreds of olive trees survived and local farmers and technicians accumulated some experiences in olive plantation.

------Geographical

Yongsheng County is located along the Jinsha River , the upper reaches of the Yangtze, with suitable climate and ideal soil for olive plantation.

Yongsheng County is located in the middle of Lijiang area, 103KM West to the ancient town of Lijiang , 190KM North to Ninlang County , 174KM East to Panzhihua City and 516KM South to Dali, sized of 4,936 square kilometers. The Jinsha River , upper reaches of the Yangtze, flows 215 KM around the county.

Project area is dry with annual insolation of 2763 hrs, annual average rainfall of 606.6mm , annual average temperature of 18.6 -20.6 ℃ and big daily temperature range. Thus experts from Chinese Academy of Forestry and Israeli olive plantation company consider it as the best planting place for olive trees in China .

The soils there consist of 10 different kinds, namely subalpine meadow soil, brown soil, yellow brown soil, red earth, alluvial soil, rice soil, limestone soil, purple soil and saline-sodic soil. The yellow fine sand, silt and loam along Yangtze River Valley from the No. 4 Alluvium formed the grading slope. More than 100,000 mu ( 6,600 ha ) slopes from Taoyuan County to Taiji County are considered as the best lands for olive tree planting.

The project area also has rich water resources because the Yangtze River flows through the area. The Yangtze River 's discharge is 20kt/s.

-----Technical

Local farmers and governmental technicians have experiences in olive plantation. MD has technicians and consultants from Chinese Academy of Forestry, Kunming Institute of Forestry and other research institutions. Besides, MD would have technical support from cooperative experience enterprise(s).

------Marketable

As far as domestic market of China , olive oil yield is less than 100T/Y, with supplement of 3,000 tons imported from other countries. Thus the market capacity is quite big.

In addition, MD has an experience marketing team and well-developed distribution network.

------Economic

Yongsheng County is one of the poorest counties of Yunnan Province with low average income and soil erosion. To develop agro-forestry like olive plantation there would improve local afforestation and accelerate local economy development, which would meet people's demand and local & provincial government's policies for water & soil conservation.

The project will bring out accumulative cash flow of RMB 1,299,820,000; NPV of RMB 215,300,000and IRR of 45.5%.

•  Project Progress

 1. Since year 2000, MD commenced the olive planting fields' investigation and olive products market research.

 2. MD invited olive planting technicians from Israel and Chinese Academy of Forestry to potential planting sites in Yongsheng County of Lijiang, Yunnan province respectively in March 2004 and August 2004 for evaluation.

 3. In September 2004, Yongsheng Bureau of Forestry provided one of its existing facilities to MD for olive plantation without any rental.

 4. In September 2004, MD started to construct its model farm in Yongsheng County of Lijiang.

 5. In October 2004, MD assigned experts to project site in Yongsheng County to start seedling. Presently 500,000 seedlings are being cultivated.

 6. In November 2004, MD purchased 10,000 3-year old olive trees from olive facility of Chinese Academy of Forestry. Those trees have been planted into fields afterwards and some have begun to sprout.

 7. In November 2004, MD signed an olive products sales contract with Beijing Huayuan Life Co., Ltd, which indicated that Beijing Huayuan would purchase and sell all olive products from MD nationwide with its own existing or future distribution outlets.

 8. In December 2004, an affiliate company of MD was set up in Lijiang--- LIJIANG MING'D OLIVE DEVELOPMENT CO., LTD. , specializing in olive project development.

 9. In December 2004, MD applied for registration of trademark for its olive products, which is named I LOVE YOU OLIVE .

 10. In February 2005, MD started to plan its high yield model farm construction, which will also be built up in Yongsheng County .

Yunnan RongDa Biochemical Co., Ltd, an affiliate of MD, devotes itself into foliage fertilizer industry since its inauguration in June 2000. Its Knockout product is RongDaFeng Concentrated Compound Ecological Fertilizer (hereinafter RDF), which is commonly recognized by experts and obtains Certificate of Recommendation of Green Food Production Means by China Green Food Develop Center . Its annual production capability is presently 5,000 tons and is proposed to develop to 20,000 tons per annum in 3-5 years.

In year 2003, MD and Yunnan Rongda reached an agreement that the former would be mainly responsible for RDF products marketing.

Yongsheng Linchen Green Resources Development LLC. is located in Yongsheng County , Yunnan Province, along the Jinsha River (the upper reaches of the Yangtze). Yongsheng County is dominated by a vertical climate, with an elevation of 1,062 -3,950m , where approximate 50,000 mu ( ≈ 3,333 ha ) wild walnut orchard grows well. Linchen produces quality walnut oil with fruits from these wild walnut trees with an annual production capacity of 500 tons. MD intends to popularize this natural, healthy edible oil in China via its existing distribution network.