Saladacresuvalde3

SALADACRES
UVALDE, TEXAS
BUSINESS PLAN
Jan. 2009

TABLE OF CONTENTS
PAGE
SUMMARY AND OVERVIEW
The Company 3
First Location: Uvalde Texas 3
Market 4
Competition 4
Competitive Advantage 4
Core Products 4
Locations 4
Management Team 4
Investment Opportunity 5
SALADACRES FUNDAMENTALS 5
MARKET ANALYSIS SUMMARY 6
Market Types and Customers 6
Industry Analysis 7
Health Benefits 8
COMPETITION 9
Competitive Edge 9
Pricing 10
Buyer Beware of Imported Produce 10
BUILDING EQUIPMENT AND DESIGN 11
Range Data Specifications 11
Site and Building in Uvalde 11
Design Advantages to Support Production 12
Future Competitive Advantages 14
Patents 14
PERSONNEL 14
Job Description Outlines 15
SALES AND MARKETING 15
Marketing Methods 15
Market Development 16
OPERATIONS AND COSTS 18
SaladacresUvaldeTexas3.2 Jan. 2009 Page 2 of 24

FUTURE DIRECTIONS OF AGRICULTURE 19
Greenhouse Expansions 19
FINANACIAL PLAN 19
Income Summary 19
CONTACT 20
Available Reference Sections
APPENDIX A: First Ranges - Capital Cost Projections
APPENDIX B: Income Projections
APPENDIX C: Management
APPENDIX D: Markets and Marketing
APPENDIX E: Products and Packaging
APPENDIX F: Technology
APPENDIX G: Human Resources
APPENDIX H: Production Unit
APPENDIX I: Location
APPENDIX J: Energy
APPENDIX K: Diet Related Disease
APPENDIX L: Contaminants
APPENDIX M: Comparison
APPENDIX N: 52 Minerals and Life
APPENDIX O: SA and Diet
APPENDIX P: EMA
APPENDIX Q: New Directions in Agriculture
APPENDIX R: Cancer Prevention
APPENDIX S: Field Channels
SUMMARY AND OVERVIEW
The Company
SALADACRES LLC (SA) specializes in the growing and processing of fresh pure produce such as; bulk produce, bagged
salads, complete meal salads, EMA juice bases, (fruits & vegetables), culinary and medicinal herbs as well as processed
products for the fresh cut, bulk, & health food markets
Our Company is at the beginning of a multi-billion dollar industry in North America. We will produce the freshest foods of the
highest natural nutritional value and herbal medicines for health and longevity.
This is not a proof-of-concept project. The Company’s proven combination of biology and engineering allows the growing of
12 to18 crops per year, harvested monthly, using renewable energy and recycled water, in an environmentally friendly
manner without the use of harmful chemicals and without soil. Unlike traditional farming, which yields 1 or 2 field crops per
year grown in uncontrolled conditions, our facility monitors and controls all conditions resulting in maximum yields – in any
climate. Labor in the facility is highly productive including those trained in the monitoring and controlling process.
By design and engineering, SA consistently grow the most nutritious foods known in the world using our own formulas and
methods protected by trade secret, copyright, and patents pending.
Location: Uvalde, Texas
In mid summer, light intensity levels in the Uvalde area are intense. Under the blazing sun they can reach 10,000 fcp (foot
candle power). This is twice that of Northern areas. In our system, these intense sunlight levels will enhance the growing
of medicinal herbs. The Saladacres growing system is perfect for the growing of medicinal herbs because we can grow
herb varieties consistently, with pure, strong, active ingredients. Uvalde has the potential of becoming the medicinal herb
capital of North America and the powerful South Texas sun is a key factor. Sunlight levels in the winter are also good and
for this reason the Uvalde area is traditionally known as the Wintergarden of the U.S.

Definitions:
One Range: A group of 20 greenhouses, 1 nursery, and 1 service building covering a net area of 1.5
acres, and a gross area of 2 acres for each range
Intent of Plan
The Uvalde and area project will be built in 3 phases:
Year Ranges Total Gross # Greenhouses
Built Ranges Acres In Ranges
1 2 2 5 40
2 3 5 12 100
3 5 10 24 200
3.5 10 20 50 400
5 50 75 200 1500
Value added products will be the priority because they maximize income. These are bagged salads, herbal products, and
products requested & made in association with partners. The sale of commodity case lots of produce will not be emphasized
because the incomes are lower. However, some products such as green onions will be sold unprocessed.
Acknowledgements in Uvalde
Mario Morales USDA Manager; Rio Grande Nueces Resource Conservation and Development
Leigh Ann Sanderlin USDA; Rio Grande Nueces Resource Conservation and Development
Phyllis Varnon International Bank of Commerce Uvalde
Juan Martinez Building contractor; Uvalde
Stephanie Sickenius Sales and marketing associate
Juan Garcia Welding and fabrication
Data:
Project name Saladacres Uvalde LLC
Address 105 Weeping Willow, Uvalde TX, 78801
Trade name Saladacres; the name used on product labels and advertising
Capital Required $5.8 million for first 2 Ranges (1.5 acres each range)
1.5 acre ranges to be built 2
Eventual number of ranges 100+
Current partners Saladacres LLC
Site Statistics:
Location: Uvalde Texas
Initial acres to be purchased 10 acres near the Uvalde airport; owned by the City
Available acres 100+ in same and other locations
Transport Next to Uvalde airport and close to Hwy 90 to San Antonio
Services City water, electricity, sewer
Distribution of products Fed Ex and Ups at the airport for direct deliveries
Industry Support USDA
Address 105 Weeping Willow, Uvalde TX, 78801
Services and buildings Electricity, gas, town and well water available
Staff sourcing Southwest Texas Junior College
Climate Winters average 45 F and mid summer 90 F. Bright sunlight levels are over 2800 annual
hours at which is more than adequate for our operation. Cooling in the summer will be by
mist evaporation. Ground water and collected surface water will be used for cooling and
irrigation.
Available acres 100+ acres in various locations. Other sites will be added to the project as expansions
occur.

Fuel sourcing Biomass fuel in the form of mesquite wood chips is available from the constant clearing of
ranchland. The whole state is a solar collector. Other sources are sorted municipal waste.
Website www.saladacres.net
Market
The North American market for organic produce and associated products alone is at least $44 billion per year. Organic
produce alone is increasing at the rate of 24% per year. That means in 3 years the demand for "organic" will double to $18
billion. The demand for pure produce is growing fast because people are now realizing that a diet based on fresh, pure,
fruits and vegetables prevents and stop diseases, and promotes health.
SA greenhouses will be located within in the South Texas market region and is therefore able to deliver fresh products
quickly - fresh to market. Marketing will be direct delivery to individuals, retail stores, and food services.
Competition
Prices of products from SA will be prices competitive with field produce - but available year round.
Traditional Soil-Based Farms - The Company’s competition comes from traditional soil-based farms. But, if quality was
based on a scale of 1-10, ours would be 9.5, and soil-based products 2.5. The Company consistently produces high quality
products because perfect growing conditions are maintained; which is impossible in field production.
Produce Importers - There are no consistent or effective controls on the amounts of insecticides, herbicides, bacteria or
parasites found on, and in, imported produce. Also, prices and availability of imports are variable throughout the year. In
contrast, Saladacres will be able to guarantee pure salad and herb produce, year around, at consistent competitive prices.
Competitive Advantage
Better Product Line – No competitor offers bagged mixed salads all from a single grower. Other hydroponic growers offer
only one or two products.
Better Than Organic Foods – The organically grown food market is likely to crash when consumers discover that crops
are grown in soil which no longer has sufficient nutrients. Saladacres uses no soil whatsoever yet grows its crops using 52
high-quality minerals to consistently produce superior produce every time, in any season. We can do this almost anywhere
in the world.
Less Expensive – Because the production yields are higher the Company can offer its products profitably at prices lower
than comparable organic products.
Competition Faces Problems – SA is local, operates year round, and uses renewable fuels. We can control production
costs and sell affordable fresh food year round.
There is unprecedented financial chaos in banking and financing, and energy costs are rising. Centralized farming, often
based thousands of miles from customers, is facing rising costs of growing and delivering fresh food. These factors have
minimal impact on SA.
• Rising interest rates on loans
• Tougher credit qualifications
• Rising fuel costs (delivery costs of $10,000 per truck can cost more than the produce delivered)
• Rising water costs
• Rising fertilizer costs
• Rising electricity costs
• Lower dollar value (imports more expensive)
• High interest rates on farm equipment
• Higher costs for equipment and parts
Core Products
Bagged Salads - Over 30 varieties including: spinach, Chinese vegetables, root crops (beets, turnips, etc.), edible flowers,
greens, broccoli, lettuces, onions, radish, chard, and more.

Complete Meal Salads - Salads accompanied with bean, pea, chickpea (garbanzo), or lentil (like a half pea) condiments,
salad dressings, bread sticks, rice and cornmeal taco wraps, and forks; ready to eat as a full meal.
Culinary Herbs - Top quality culinary herbs
EMA Juice (Electrolyte, Mineral, Antioxidant) – EMA Juice is a cold pressed, unpasteurized, pure plant juice from the roots
and leaves of vegetables and grain grasses. It contains highly concentrated electrolytes, antioxidants, flavonoids, enzymes,
and 52 minerals. EMA is made with nanofied water, in which minerals are highly soluble. It is astonishingly high in nutrition.
Locations
Saladacres will expand from Uvalde and will locate its growing facilities next to city markets. Because the growing facilities
are not dependent on natural resources such as arable land and rainfall to determine locations, ranges can be located on
inexpensive land outside of town, but close to major customers.
In Uvalde, Saladacres will become a large grower and processor of salad vegetables and herbs, supplying products to fresh
markets in Texas and other states. Growing will be year round in climate controlled greenhouses.
The number of 2 acre greenhouse ranges in the Uvalde area could exceed 500. We have a great opportunity for rapid
expansions on the surrounding available acreages. SA will expand throughout the country by developing projects through
joint venture partnerships and projects owned by solely by SA.
Management Team
Ron Tuttle is the master greenhouse builder, operator and expert in hydroponic growing. He has a B.Sc. in Biological
Sciences from a major Canadian university; and was a member of the CO2 Synergies Research Network, a government /
industry group concerned with the build up of carbon dioxide in the atmosphere. His vision includes operating Saladacres
on four continents, growing, processing, and selling fresh pure food and medicines year round. The current technology in
the greenhouse package, and operating system, are results of his work. Methods for growing some of the crops are also
proprietary and patents are pending. These methods, and the overall design enable SA to grow the best produce in the
world. Media coverage of past demonstrator units is available.
Managing Members (The Officers in a Limited Liability Company or LLC; there is no President, VPs, Secretary etc.)
Alphabetical:
Joni Daniels General administration and instructional training jjdjldjsd@yahoo.com
Michael Goetz International sales and marketing of joint ventures and projects mggoetz@yahoo.com
Stephanie Sieckenius Product sales stephaniesieckenius@yahoo.com
Ron Tuttle Product sales and development tuttlerf@aol.com
Albert Williams Jr. Business Development Director Southern California Region xfactor0849@yahoo.com
We will add additional permanent financial and technical experts over the first 6-12 months of operation in anticipation of
expansions. We have a diverse advisory team, with proven financial, marketing, accounting, engineering, and business
experience.
Investment Opportunity
Ground Floor Opportunity - The Company is seeking $5.8 million to build the first 2, 1.5 acre greenhouse “range” facility.
Each range can supply the fresh produce needs for some 15,000 people based on a consumption formula of 40 pounds of
produce per person per year.
Growth & Earnings Capacity - The Company will achieve EBITDA (Earned Before Income Tax Debt and Amortization) of
between 40-45% on sales from its ranges. The goal is to eventually build one hundred such facilities at an average cost of
$2.2 million each. In some areas public funds are available from local bond issues. The object is to maximize the share
value of shares held by investors in the first project.
Investment returns to investors who invest in the parent company in Uvalde, will come from the parent as well as joint
ventures and self owned projects around the world. This business is easily adaptable to most any country, climate and
market.
SALADACRES FUNDAMENTALS

MAIN PRODUCTS
• BAGGED SALADS AND SALAD BLENDS
• COMPLETE MEAL SALADS
• CULINARY AND MEDICINAL HERBS
• EMA Juice (Electrolyte, Mineral, Antioxidant)
Hydroponic Greenhouses + 52 Mineral Irrigation + Biomass Renewable Fuels = World’s Best Produce
+ 30% Profit
CLEAN
• Produce and herbs are grown in clean, pure, conditions, in environmentally controlled greenhouses. Irrigation water
is filtered and sterilized. Our produce is dark green, fresh, and good tasting.
HEALTHY
• Fresh pure food, combined with regular exercise is required every day for good health and a maximum lifespan (1).
They slow aging and are vital for cardiovascular health and strong immune systems.
• A strong immune system prevents infection and cancers (2).
• We guarantee in our products: a full range of essential* nutrients (indispensable for life; cannot be synthesized in
the body); 52 trace elements, Omega 3 nutrients, antioxidants, flavonoids, vitamins, and enzymes. Studies have
shown that nutrient dense foods such as ours, slow aging, prevent cancers (1), are vital for cardiovascular health
and strong immune systems, and are required every day to attain maximum health and lifespan.
PURE
• Produce is grown free of synthetic insecticides, herbicides, algaecides, fungicides. We use no manure fertilizers
that can contain harmful bacteria (E. coli, Salmonella), hormones, and pesticides. Our main, and associated
products are labeled 'pure' and sealed in bags for security - know your source.
PROFITABLE
• Outstanding returns on investment.
COMPETITIVE
• Our products are better than field produce in price and quality because we grow about 12 -18 crops per year under
controlled conditions, compared to 1 or 2 field crops per year grown in uncontrolled conditions.
• Our salad vegetables are the best in the business when it comes to color, taste, crunch, and flavor.
• We grow affordable produce
YEAR AROUND
• Because crops are grown and processed year around, jobs are year round. Winter production is equal to or better
than summer production. Our fresh market produce is always in season. Supply self reliance is possible with year
round production.
MARKETS
• Our market is everyone who wants a long, healthy, disease free lifestyle. Our pure salad vegetables are part of a
lifestyle that will make this happen. Every living person is our market.
• Locations of greenhouses will be next to city markets; climate and land are not concerns. Imports are replaced.
Sales are as direct as possible for a rapid and secure cash flow.
ENERGY
• Renewable fuels such as biomass, geothermal heat, and hot water from solar panels are used for electricity,
cooling, and heating. The hot water provides the energy for a turbine that generates electricity on site, making us
independent of the grid, and expanding the possible sites on which we can locate.
• We can operate equally well in cold and hot climates.
SUSTAINABLE
• Pollution and land degradation is zero. A facility can operate indefinitely with no harm to the environment because
we do not rely on depletable resources such as topsoil, or non renewable energy from fossil fuels.
• Lower amounts of fresh water are used for irrigation: ex. we use1/10 of the water used in arid field agriculture.
• We can purify water to a drinkable irrigation base from sources such as: lakes, rivers, oceans, lagoons, 'grey'
effluent, and ground.
(1) USDA
(2) World Cancer Research Fund 1997, American Institute for Cancer Research, American Cancer Journal: Cancer Causes
and Control

•
•
•
•
•
MARKET ANALYSIS SUMMARY
Market Types and Customers

From Texas, we will be within a 2 hours trucking time of our major markets. Sales will be handled directly by SA. There will
be new sales activity and prospecting daily, combined with attentive, repetitive, personal service. In addition to the direct
home delivery market, potential sales contacts available to SA agents are described below.
Arenas & Athletic Parks Food Service Mgmt. Hotels Schools - Cooking
Railways Schools - Art Bakeries Supermarkets
Frozen Fish – Retail Senior Citizen Homes Beach Kiosks Coffee Houses
Recreational Tours Lounges Restaurants Night Clubs
General Stores Markets – Farmer Sightseeing Tours Gymnasiums
Bus Lines & Charter Motels Spas Fitness & Health Schools - Nat. Healing
Golf Courses Gourmet Shops Natural Products Superstores
Schools Spas Health & Beauty Caterers Health Food Stores Swimming Pools
Retreat Centers Grocers Naturopaths Schools
Dairies Exhibitions Hospitals Nursing Homes
Private Nutrition Consultants Schools - Trade Truck Stops
Fish - Wholesale Hostels Festivals Party & Event Consultants
Schools - Universities Weight Control Services
In estimating the number of ranges for a market, the rule of thumb is a low consumption of about 66 lbs of
produce/adult/year. The production of produce from 1 range per year, for example is about 660,000 lbs. Therefore 1 range
will theoretically serve 10,000 customers (660,000/66). Using the 10,000 number, a market area of 5,000,000 people could
theoretically support over 500 ranges (5,000,000 adults/10,000 per range). However, the ideal number of people supplied
with produce per range is 2,400. This is based on the USDA recommendation of 3.5 servings, or 350 grams (12.5 oz.)of raw
vegetables per day of the type of vegetables we can grow in a range. This works out to 285 lbs. per year. (From USDA and
US Dept. of Health and Human Services 2000). We base our projections on 66 lbs. when the recommendations are for 285
lbs.
Direct delivery is (DD) the delivery of a box or boxes of produce to individuals within 24 hours of harvest. The basic unit will
be a 10 lb. box consisting of 4 bagged salad units, 4 units of salad vegetables, and 2 quarts of EMA juice. The delivered
price would be cheaper than buying the same things at a supermarket, but SA would receive a higher price than wholesale.
Also, payment is instant, and done by electronic credit or debit card before shipping. It is estimated the capacity of 1 range
for direct delivery would supply 3,000 people. Therefore, direct delivery would involve a large number of ranges.
Industry Analysis
The demand for fresh pure produce is on the rise. In the past this demand would be filled by existing farms. But today we
are facing a whole new set of circumstances that are restricting the supply. These are trends are long term, threatening, and
growing.
Production of food on farms is threatened by population expansion, climate change, land damage, urbanization, energy
shortages, and water shortages. Serious alarms are going off in every one of these areas and a book could be written about
each one. These connected forces effect everyone – some more directly than others. Danger levels have already been
reached as evidenced by hurricanes, droughts and heat waves. The changes we are experiencing are globally
unprecedented in human history and are having a massive effect on agricultural production. However, SA will survive in this
changing weather and climate and continue to grow.
The use of pesticides and herbicides by farms to insure a “profitable” crop is poisoning the food chain and causing illness
and death.

U.S. sales of “organic” produce, from 12,000 organic farmers in 2003 were $13 billion per year and are expected to go to
$20 billion in 2005 (1). It is almost impossible for soil based farms to meet this demand because there is not enough
unpolluted acreage available that can be classed as "organic” and naturally pure irrigation water is becoming rare.
Sales of medicinal herbal remedies are growing by an estimated 15-18% per year and reached $10-12 billion dollars in 1998
(2). Points: 1) we are going toward an integrated health care system. 2) 70% of medical schools in the U.S. are now
teaching about herbal medicine. 3) Natural medicine is cost effective and will lower medical costs.
The present annual size of the culinary herb and spice industry in the U.S. is estimated at $2 billion (2). In 1984, the
demand in the U.S. was on an increase and was not even close to a plateau. Fresh herb per capita consumption grew from
1.0 lbs in l962, to 1.9 pounds in 1999.The U.S. produces only 35% of the herb products it uses. If the supply of fresh herbs
triples in the U.S., the demand would still not be met. SA will sell culinary herbs in a ‘living mat’, to food services. Herb mats
will stay alive in a room environment if watered.
The following herbs and spices were showing increased consumption in 1997: sage, basil, oregano, tarragon, dill, marjoram,
and thyme. Almost all herbs crops are grown outdoors in soil. Yet, the amount of fresh herbs produced by Florida (the
largest producer) represents only 16% of the national herb product market and only 5.6% of the world market (2). The
world's largest producer of fresh culinary herbs in Florida packs more that 2,000 cases per day of herbs. As one producer
stated in 1999, if the supply of fresh herbs triples in the U.S., the demand would still not be met.
Food safety is a concern for about half of the U.S. population. The increase in sales of organic foods between 2001 and
2004 suggests that consumers are actively seeking out foods they consider to be more nutritious, healthful, or safe for their
families (3). The recent breakout of E. coli in bagged spinach and green onions has put the spotlight on U.S. produce
growers’ ability to grow safe food. Saladacres will capitalize on the fact that ‘organic’ growing standards alone do not
prevent E.coli, and Salmonella contamination in traditional, and organic dirt farming.
According to organic standards set forth by the USDA, organic foods include crops grown without the use of conventional
pesticides, artificial fertilizers, sewage sludge, ionizing radiation, and food additives. However, a recent decision by the
USDA has allowed for six “organic pesticides”.
In the U.S., the organic market has more than doubled its size between 2000 and 2006. Sales of organic food increased
139% between 2001 and 2006. U.S. sales of organic fruit and vegetables are predicted to increase 83% at current prices
and to increase 54% at constant prices from 2006 to 2011. Within the organic market, fruits and vegetables make up 44.8%
($1.657 billion) of the market in dollar sales. Sales of organic food and beverages grew 85% between 2001 and 2004, far
more than most food and beverage categories (3). Saladacres production is better than organic, and yet lower in price.
(1) Alive Magazine, Quebec Dept. of Agriculture
(2) Herb Market Report
(3) Organic Foods-US Oct. 2006
Health Benefits
Many people are sick and tired, dying, and living shortened lives because of a toxic, altered, processed, highly
advertised, industrial food chain that is based on 5 major ingredients. A 56 page booklet entitled SA and Diet examines
industrial food, the current situation, and the fabulous opportunities for SA.

Many people now realize that a diet based on fresh, pure, fruits and vegetables prevents and stop diseases, and promotes
health. Every living person is our market, because everyone needs our products to live a healthy life. Without fresh food you
die
Dietary Guidelines for Americans is published jointly every 5 years by the Department of Health and Human Services (HHS)
and the Department of Agriculture (USDA). The Guidelines provide authoritative advice for people two years and older
about how good dietary habits can promote health and reduce risk for major chronic diseases. The 2005 edition of the
Guidelines was released January 12, 2005. It can be downloaded at
http://www.health.gov/dietaryguidelines/dga2005/document/pdf/DGA2005.pdf .
In this document the recommendations on dietary fruits and vegetables are as follows: Fruit and vegetables: One of the first
principles of healthy eating is to choose nutrient-dense foods that pack, calorie-for-calorie, the most amount of fiber,
vitamins, and other nutrients. That’s why the guidelines say that the 2,000-calorie-a-day reference diet should include nine
(!) servings of fruit and vegetables. For the average American, that’s over double the usual number of servings.
Many people are placing great personal importance on their health and longevity. They are finding out the answer to good
health is not in the hospital. Today’s reality is prevention of disease and self reliance. The constant message is exercise
regularly and eat fresh pure vegetables 9 times a day. Pure fresh produce is essential for health - there is no substitute.
Cancer is now seen as the result of a diet deficient in fresh plant foods. Saladacres will grow those crops that are known to
prevent of cancers as a matter of routine. The medical journal, Cancer Causes and Control, states "vegetables and fruit
contain the anticarcinogenic cocktail to which we are adapted. We abandon it at our peril".
Our products are the ultimate in nutrition and are a must for a healthy, long life. We guarantee a full range of essential
nutrients because we add them to our irrigation water, and we know the concentrations at all times. This is almost
impossible with field crops.
Without an intake of a complete range of minerals, we will become diseased and die. When you have cancer, or cardio
vascular disease, its too late to realize that your diet has been deficient. It is natures law. You are what you eat. It’s a
matter of choice of junk foods over ancestral foods. Ancestral foods are the foods that keep us well, and we evolved with
them over a period of 2 million years. They are mineral rich fruits and vegetables. Junk food is sold in slick packaging by ad
agencies, is empty of minerals, and usually consists of fats and carbohydrates that make you fat and diabetic.
At SA we grow our crops with irrigation water containing 52 minerals in which the trace minerals are included in balanced,
life supporting proportions. This says it all. Lifestyles involving exercise, combined with a consistent intake of all the
mineral nutrients bound organically in plants will contribute immensely to a healthy, long, disease free life. The words
chemical, nutrient, element, and fertilizer all refer to minerals.
Testing of the minerals in our products can be done at any one of a number of trace element laboratories recommended by
the USDA. However, we know the minerals are taken up by our crops because we are constantly adding them to irrigation
water.
COMPETITION
Competitive Edge
Today, most greenhouses growing food crops are involved in the growing 'long crops’ because the technology is available,
and the incomes are good. Long crops are tomatoes, cucumbers, peppers, and eggplant, and represent 95% of the
production of greenhouse food industry crops. SA is specializes in short crops which have little or no greenhouse grower
competition - depending on the crop - because growers are few, and most of the short crops are field grown and imported.
There are about 1000 acres in the U.S. growing greenhouse vegetables. The majority are in long crops. The U.S. could
presently use 10 times that number.
The biggest bagged salad and fresh vegetable competitors of Saladacres include: Fresh Express, Dole, Mann’s Sunny
Shores, and Earthbound Farms. Their products are mainly grown in California and Mexico. There doesn’t seem to be a
price leader in the overall market. Each company offers prices within a few cents difference of one another. Also, each
company seems to package their products either in a 5.5-6.0 oz or 12 oz. bag or a rectangular plastic container.
Saladacres will package salads in clear bags containing 10 oz. (the original amounts, when bagged salads first started).
Because Saladacres plants are healthy and strong, products will have a shelf life of up to 14 days. Many organic products

barely last a week before turning to brown and soggy. It is recommended that Dole products be consumed within 2 days of
opening the product (1).
According to USA Today, market share in the bagged salad industry at a national level are as follows: Fresh Express (41%),
Dole (31%), Private Label (12%), Ready Pac (8%), and Earth-Bound Farms (6%) (USA Today October 23, 2006 article,
“Fresh Express Leads the pack in Produce Safety”.
(1) http://dole.com/Products
Pricing
Saladacres plans to offer their products at a reasonable wholesale price to supermarkets. Tentative pricing is as follows:
Bagged Salad (10oz. bag): $2.90
Spinach (10oz. bag): $2.25
Onions (bunch of 6): $.50
Culinary Herbs (per mat): $3.40
Research has proven that Saladacres pricing is slightly lower than other organic and natural food suppliers. For example,
Whole Foods, Inc. advertised a 5oz. bag of organic salad greens to consumers in Ohio for $2.69/bag (Jan. 2007). A 10 oz.
bag would then retail for $5.38.
A 10 oz. bag from Saladacres would wholesale for $2.25 and with a 30% markup, it would retail for $2.90. That is
compared to $5.98.
Buyer Beware of Imported Produce
There are no consistent or effective controls on the amounts of insecticides, herbicides, bacteria or parasites found on, and
in, imported produce. Also, prices and availability of imports are variable throughout the year. In contrast, SA will sell pure
salad and herb produce, year around, at consistent, competitive or lower prices to our customers.
We call our products "pure" to avoid conflict or confusion with "organic" produce grown by "organic” farms which use
"certified manure" fertilizers. Our produce is pure because we provide our crops with pure nutrients and clean water. Also,
organic produce is seriously deficient in minerals because the manure fertilizer is deficient in minerals – the animal extracts
the minerals from the plants first in its gut, and the remaining minerals are the leftovers. Successive “organic” crops grown
on the same, manure fertilized field, result in weak, nutrition poor plants that look bad and have no taste.
Manure fertilizer can also be loaded with deadly bacteria such as E. coli and salmonella that can enter the tissues of produce
plants through the roots. More than 11,000 people per year in Canada and the U.S. fall ill or die of E. coli poisoning, and
35% of food-borne illnesses in the U.S. are transmitted by produce.
When animals eat plants, they pull out the majority of useful mineral nutrients from the plants in its gut. What remains is
mineral deficient manure. ‘Organic grown’ plants are grown in this manure that has already passed through an animal. The
manure is mineral deficient to begin with, and plants become weaker and more mineral deficient the longer successive
crops are grown in the same manure. The plants also become successively more useless as a source of nutrition to people
who eat them.
Produce production and processing for the whole continent is now centralized in California, Arizona, and Mexico. Because
the fresh produce market is multi billion and growing, there are enormous market pressures on these areas to increase
production. However, the ability of these areas to grow vegetables is declining because of the lack of clean irrigation water,
urbanization of farmland, rising fuel costs, global warming and climate change, drought, rising labor costs, polluted irrigation
water, salinization of farmland, fiber and mineral depletion of farmland, and rising transport costs. But, the demand keeps
growing.
Centralized production runs the risk of sudden failure from one or a combination of events. For example, the Salinas Valley
in California is a big producer of lettuces, but it is now experiencing problems with a falling water table, nitrification of ground
irrigation water, salinization of topsoil from the salts in irrigation water, urbanization, and rising fuel and labor costs. 50% of
all farmland in the Central Valley of California is already useless from salinization from repeated irrigation. Pressure is also
on the other 4 producing river valleys in California. In other words current centralized production as it exists is not
sustainable. In a report by the California Dept. of Conservation, the Sacramento Valley lost 29,000 acres to urbanization in 2
years ending in 2002. Department of Conservation officials said they're worried that if something isn't done soon to stem the
tide of farmland loss that the area will have to start relying on foreign-grown crops for a significant portion of the future food
supply – in California! An economic development officer in Bakersfield, in the San Joaquin Valley stated that unless growers
changed their “practices” they would all be “toast” in 5 years.

When our greenhouse operations are installed inside our market region, we will eliminate all the problems of centralized
production. Our products will be produced in or near our markets. We are sustainable in our region as long as we have
customers.
BUILDING EQUIPMENT AND DESIGN
Engineering and design of the facilities, and internet marketing is supported by a number of companies. Saladacres
greenhouse designs are a combination of leading technologies, plus our own methods and designs that put SA in the top
1% of greenhouses in the world. The result is a profitable operation.
We are the first to design an operation that will economically grow a wide variety of short crop produce on a large scale, year
around, in all climates.
The growing of crops takes place in Climate Buildings, clustered in “ranges”. Each range consists of twenty 25’x115’ Climate
Buildings, occupying 1.5 acres. The service building is built at the north end of the range and contains areas for: water
treatment, laboratory, seeding, offices, irrigation, heat exchangers and boilers, shipping, lunchroom, lockers, maintenance
shop; and storage for tools, equipment, and inventory. One service building can service up to 30 climate buildings, however,
the standard design number is 20 climate buildings.
Plants are started from seed. Seedlings are raised up to 30 days in the nursery. They are then transplanted to the climate
buildings where they grow to maturity over a period of 20 to 35 days, depending on the crop.
Range Data and Specifications
22 Building
Range
Gross Area 8,434 sq. meters
(Includes ventilation area 90,750 sq ft.
165' x 550') 2 acres
Net Area 5,994 sq. meters
(Gross area less ventilation 64,500 sq. ft.
area of 26,250 sq. ft.) 1.5 acres
Service Building 383 sq. meters
(25’ x 165') 4,125 sq. ft.
Roof and walls: Steel siding and roof
Floor: Concrete composite
Climate Building and Nursery 267 sq. meters
(25' x 115’) 2875 sq. ft.
Roof and walls: Polycarbonate
Floor: Concrete composite walking surfaces
Site and Building in Uvalde
Round 1 Financing: First 2 Ranges: $5.8 Million
1) The first range will be built at a cost of $2.7 million and brought into production. Construction will be done by TG
Fabricators.
2) Commissions and working capital are included in the $5.8 million funding in the first phase

Phase 2 Financing: Subsequent Ranges
1) Cost per additional range, after the first range, is $2.2 million.
2) The construction of ranges will follow market development
3) 4 ranges can be built on the initial purchase of 10 acres
Evolutionary, not revolutionary
The operating principles of our greenhouses are the same as those of 150 years ago. Then, as now, the primary goal is to
maintain good growing conditions and shelter crops from the weather. New materials and equipment such as computers
have made the job of controlling conditions more reliable. Maintaining good growing conditions increases yields and profits.
Design Advantages to Support Production
The following advantages are designed into our system. Individual operators in the current greenhouse industry use
some of the following features, or none at all.
• Waist height crops: All crop seeding, transplanting, and harvesting is done at waist height eliminating the need for
stooping and crawling. This is highly valued by older staff who can be productive without wrecking their backs or
wrenching their legs.
• Carbon dioxide enrichment: by elevating the concentration of carbon dioxide in the greenhouse air from the
burning of natural gas in a small boiler, we achieve faster growth and larger crops without diminishing the nutrient
content. This enables us to grow outstanding crops in cold climate in the winter.
• Comprehensive Water Treatment: water can be treated from all sources (pond, ditch, lake, ocean, river, and
stream) to a purified base.
• Low Water Consumption: one range can be supplied by 12 mm pipe (1/2") and uses up to 1/10 of the water
used in arid field agriculture
• Winter crops are now comparable or superior to summer crops
• Year round production of 12 to 18 crops per year
• Zero Pollution: a sustainable operation with no harm to the environment
• Computer controlled, constant, growing environments, year around.
• Microorganism control: Slow Sand Filtration where needed and UV radiation
• Soil less operation: work is clean and fast
• Plant Movement: fast product movement
• Maintenance free building
• Crop Versatility: fast crop change on demand – you want it, you’ve got it
• Humidity Control: winter and summer
• Light Entry: maximum light entry with clear polycarbonate and effective light entry design; sunlight is the driver
of crop production, so the more sunlight, the better the crop growth
• Hail Resistance: hail proof from hailstones up to 1”
• 8 potential patents, and more expected; although this information will be kept as a proprietary trade secret
• Cooling: building temperatures are reduced when outside temperatures are hot
• Hurricane Resistant Design for buildings
• Electricity off grid: we generate electricity on site by burning biomass; this produces heat that powers a
turbine; this saves hundreds of thousand of dollars
Energy
Hot Water
Hot water is the primary source of energy. Hot water can come from two sources: biomass and solar. A Biomass
Combustion System (BCS, or gasifier) burns a variety of cheap, renewable biomass fuels (sawdust, agricultural waste,
straw, chicken and cow manures, carpets, asphalt shingles, tires, construction waste, wood chips, and sorted municipal
garbage) at high temperatures with zero pollution. This is proprietary to Saladacres and we call our machine the “Buzzard”,
because it will burn any biomass. The BCS can also provide heat for water purification for irrigation water from “grey” or
ocean water. There are big opportunities to use garbage as a source of fuel for hot water. Hot water can be piped for ½
mile.
These fuel options enable SA to control the cost of energy, and use the available fuels in project locations of opportunity.
This translates into lower operating costs and therefore lower production costs.

Biomass combustion is considered C02 neutral and not a producer of greenhouse gas. We are able to trade carbon credits.
Each range eliminates 1,252 tons of C02 from entering the atmosphere each year. These income sources can be
substantial at $15/ton but are not factored in our Income Statements.
Solar hot water collectors are the second method for heating water in hot locations. A third method is geothermal but the
uncertainties of the source make this a gamble in most areas.
Heating
To heat the greenhouses, water is heated in the biomass combustion system, and then pumped to pipes under the floors of
the greenhouses. This is hydronic heating. Using heat from the BCS to heat greenhouses has released SA from the
dependence on fossil fuels. Our products are not subject to price increases due to higher heating costs from price increases
in oil and gas. Low heating costs in the winter control costs.
Electricity
SA has assisted in the design and development of a turbine that is powered by hot water. The turbine spins a generator
that delivers electricity. Each turbine will deliver about 500 kW that will run 5 ranges. Users of electricity are pumps, fans,
and processing equipment. Cheap electricity keeps costs low.
This is proprietary technology which SA controls. We are able to sell energy, or power packages consisting of the BCS and
turbine to customers wanting to generate their own electricity. This setup is ideal for towns and settlements who want
cheap electrical power from renewable fuels – not from coal and big power companies.
Electricity on site could also provide power to electrolize water using a new discovery at MIT. This system uses low power
to electrolize water into oxygen and hydrogen gases at room temperature. The hydrogen would be stored for use in fuel
cells to power vehicles and other equipment. At SA, we would use it in all vehicles. The oxygen could be used to enhance
combustion in the Buzzard.
Cooling
Cooling a greenhouse in hot weather is as important as heating in cold weather. Electricity from the generator powers
pumps and fans for cooling. Therefore cooling costs are kept low.
Incomes and benefits from the use of renewable fuels to provide heat, electricity, and fresh food:
Direct Incomes to SA
• Produce sales
• Carbon credits where applicable
• Pickup fees for some fuels
• Electricity sales off grid
• Heat sales to buildings off site
• Location of greenhouses in areas where there are no gas or electric lines
Direct benefits to community
• Pure, healthy, produce sold locally year round at affordable prices
• Jobs: construction, production, and sales year round
• Eliminant reliance on diesel electric generators in some community situations
• Better health and lower medical costs
• Low cost heating and electricity for businesses and homes
• Less carbon dioxide released into the atmosphere through reduced consumption of fossil fuels
• Reduction in landfill volumes
• Reduction in potential ground water pollutants
• An option for the survival of individuals and communities
Site Independence
Since we can generate our own electricity, we can select project sites almost at will. For example, in rural, or island areas
where grid electricity is absent. This opens up markets and income opportunities. It is a fantastic advantage.
Lower costs of production
Costs of production are low compared to similar levels of production in greenhouses based on soil methods. We do not use:
pesticides, fumigators, herbicides, fungicides, algaecides, soil sterilization agents, and attendant equipment such as soil
steamers, sprayers, rubber aprons, breathing filters, scuba filters, “space suits” for pesticide spraying, planters, weeders,

tillers, discs; tractors, tractor parts and fuels; field trucks, ploughs, shovels, hoes, rakes, protective clothing, and soil or media
moving equipment, which are in common use in one way or another in the greenhouse and farming industry and represent
costs. All raw materials are delivered to a range via wires or pipes. All cost savings are the result of environmental controls,
the design of our system, and our location.
Future Competitive Advantages – Goals
At the same time we are building and operating ranges for our salad crops, we will be preparing for future projects.
Some of these are:
• Develop SA varieties with in house reproductive methods; i.e. tissue culture or cloning
• Start an aggressive R&D program to grow pharmaceutical bases and medicinal herbs
• Increase the number of ranges so we can improve productivity and offer more products at lower prices
• Create more unique salad products and blends
• Develop new energy sources such as co-generation (e.g. electricity and heat from turbines), solar, wind, and
hydrogen
• Develop additional product lines through partnerships to include: pure baby foods, jams, variations on EMA
(Electrolyte, Mineral, Antioxidant) type juices, flowers, throat lozenges, potted plants, pet care products, cosmetics,
lotions, sugar free cookies, teas, medicinal herbs, soaps, salad dressings under the SA label
• Supercharge specific plants with single minerals such as iron and calcium that are combined organically within the
plants for dietary deficiencies in people
• Investigate the nanofication (molecular cluster size reduction in water) through nanofiltration of medicinal herb factors
for use in alternative medicine
• Seed production
• Develop a cheaper climate building for longer term crops
• Develop and operate more efficient water treatment equipment (present equipment is adequate)
• Hydrogen powered delivery trucks using fuel cells, filled with hydrogen generated from the BCS
Patents
The production system has many designs and methods that are patentable. However, the reality of this world is that
patents can be copied, or modified once the original design is known. Patents are published and the designs and methods
are “out there”. Therefore, to avoid advertising our systems we will avoid equipment patents and rely on trade secrets for
security.
However, we will work with the USDA to patent plants, which are much more difficult to copy. Once we have the plant we
want, we can clone as many as we need with tissue culture. This involves the duplication of tiny plants in test tubes from a
original plant type to rapidly create millions of identical plants in a short time. Here are some opportunities:
• Modify the flavors of our salad vegetables (examples: a sweeter spinach, an orange tasting
romaine, a licorice tasting radish, a sweet turnip)
• Develop medicinal herbs with stronger active ingredients
• Develop new types of medicinal herbs
• Supply contaminant and virus free medicinal herbs: establish new standards for purity
• Make slow growing plants grow faster
• Combine unique colors and shapes for new salad vegetables
Each plant is a potential patent. The US Horticultural Research Laboratory of the USDA labs are ready to work with us. In
the tentative arrangement with the USDA we will collaborate on the R&D. They will get the rights to publish, and we get the
patents and production rights on the new plant varieties. Plant patents are far more secure than equipment patents.
PERSONNEL
The most important assets are the staff and they will be given the following conditions under which to work and
form their careers. In the current greenhouse industry, operators offer none, or only some of these
advantages.

• All crops are grown at waist height eliminating stoop fatigue and back problems
• No toxic chemical application
• Weed free crop production
• Excellent working conditions; workers stay clean in a healthy environment
• Year round employment
• Better than average wages due to the high productivity
• Profit sharing and or stock options
• Ongoing training, intern, and apprenticeship programs
• Management opportunities – internal advancement
• Group benefit program (ex. medical, dental)
• Employee services: (ex. daycare, laundry, cafeteria)
Job Description Outlines
Company Management Function
• Coordinating and developing Business Plan
• Product sales
• Sales and construction of joint ventures
• Co-ordination of sales and production, cost accounting
• Developing and doing research
Personnel
• The number of staff in an operating range is about 12.
Range Manager: Description
• Sales and production co-ordination from specific ranges
• Supervision of seeding, transplanting, harvesting, and shipping
• Climate management
• Worker scheduling, hiring and training, reviews and supervision
• Will operate the range on a profit sharing basis
Production Manager
• Co-ordinate production personnel in production
• Answers to the Range Manager
Nursery Manager
• Maintain seed inventory
• Seed trial supervision
• Seeding, seedling care, and transplanting management
Planters
• Full and part time workers
• Transplanting, harvesting,
Packers
• Packaging products, shipping
Training
• Southwest Texas Junior College plans provide courses for a 2 and 4 year degrees in greenhouse management
based on the SA model. SA will provide input into the curriculum. The subject matter of the curriculum is now
available from SA.
•

SALES AND MARKETING
Marketing Methods
We will sell as directly as possible to our customers by 3 methods: 1) direct sales with agents to food services, 2) contract
sales to supermarkets, and 3) direct delivery to individual customers. Great importance is placed on active person to
person sales and service, backed with advertising. We will supply our customers with specific products, a year
round supply at stable prices, food safety, and traceable products.
1. Food Services:
Agents will sell directly to food service customers such as: restaurants, school cafeterias, restaurant chains, hospitals, and
institutions. More detail is given in the Marketing Appendix D.
2. Contract:
A supply contract would be the shipment of a set amount of production to a chain supermarket such as Albertson’s, under
their own label, or SA’s label, at a specific price, over a set time period. SA has letters of intent and verbal confirmation from
a number of large retail grocery chains to purchase production. This is a testament to the demand. They are desperate for
a reliable supplier of fresh produce year round.
3. Direct Delivery (DD)
We will sell directly to customers on a home-direct delivery of ‘produce boxes' via contract delivery and courier services from
Texas. Direct sales will be made through the internet, or phone with a commission based sales person. Products will be
shipped directly to the customer by courier such as DHL, UPS, Fed Ex, or private contractor if deliveries are being made
within an economical delivery radius from the greenhouse. Products would be shipped in “boxes” which will be cardboard
boxes, recyclable styrofoam boxes, or pillow packs containing a variety of produce and EMA juice, possibly with ice in
pouches, and dry ice. The boxes would normally contain standard bagged salads, vegetables, and EMA The combinations
of types of bagged salads and vegetables would vary from week to week but the quantities would remain the same. The
EMA quantity would stay the same. We would avoid sending those items the customer specifically does not want. Boxes
would be delivered weekly or biweekly, directly to houses, apartments, and individuals.
Advantages of Direct Marketing:
• SA is paid before the boxes are shipped which makes our cash flow fast and secure
• SA will make 20% more profit than selling to retailers; no receivables or collections
• SA can create a year round demand with our own varieties and products rather than responding only to retailers
demands
• SA sets the prices
• No comparing of SA prices by retailer to California or Mexican prices on the shelf
• No purchasing of shelf space at retail level by SA
• No “money games” by retailers; ex. late payments, profit disclosure to retailer, price dickering and reductions,
bankruptcy
• No disruptions from retail strikes, or slowdowns
• Less transit time than through retailers
• No waiting on retailer shelves
• Less handling
• All inventory can be sold; no surplus
• Shipping flexibility of inventory
• Direct customer lists can be used as collateral for expansions
• An overall better deal for customers in terms of price, quality, and certainty
• EMA Juice value is equal to the value of whole shipment – vegetables are essentially free
Not everyone can become a direct delivery customer. Those wanting direct delivery of produce will be required to first apply
through an agent or salesperson. In the beginning phases of SA there will be more customers than the capacity to supply.

SA will treat each customer as an individual. We can customize the contents of the box, and arrange for alternate delivery
addresses, and drop off times. This information would be given by the customer.
Its part of the job of the delivery contractor to make sure all the boxes are delivered to their addresses on time. The delivery
contractor will have all the current delivery information printed on each box. The box would be tagged with a bar code label,
similar to airline bags. It is notable that delivery by a contractor would allow us to use recyclable plastic boxes that would be
returned for reuse.
Market Development
Our marketing philosophy is based on growing and delivering produce of consistent quality, at competitive prices, year
round. Starting markets will be in central and south Texas. We will start production of bagged salads. The market for this
product is expected to double in the next 2 years. Magazine and newspaper advertising will start at this level. Product
sampling in stores will be done by our agents.
1) Supermarkets and Food Services
We will introduce our products to supermarkets and food services such as restaurants, hotels, resorts, hospitals, and
caterers where we can establish personal relationships. By inviting chefs and catering managers to visit our facilities we can
explain the process that we use, and show that the products are free of herbicides and insecticides. Product distribution to
customers will be done with a 24' truck van, making 2 or 3 trips per week to customers. Shipments will be prearranged by
the sales agent.
2) Direct delivery marketing (DD)
DD is the most important marketing method – it earns the most money and the cash flow is secure, and instant. Individuals
will be approached by a commission agent, can contact SA directly about arranging for direct delivery. After completing the
application process, and accepted by SA, people can place their order from our list of products on our website and have
them delivered anywhere, overnight. The convenience factor of being able to order pure produce on a weekly basis or at a
moments notice is an attractive and exciting to us as suppliers, and customers who care about their personal health. We
would appeal to a wide range of individuals and families because our quality is pure and consistent, delivery year round, and
prices are competitive. Our customers can be certain of stable, low prices.
Short delivery distances to customers will keep the end costs down. Therefore, the immediate markets for direct delivery will
be in the central Texas area.
Direct delivery customers will be signed up by agents of SA who are associated with SA in Uvalde. Sales are by direct
contact, mailers and postcards, radio and TV, and newspaper articles and ads. The agents would be paid a commission for
every box sold to that customer for as long as the customer buys. The airport is next to the SA site in Uvalde. UPS and Fed
Ex have drop points at the airport.
There is a limit to the number of people 1 range can provide. Customers will only be accepted when there is the capacity to
supply them. Waiting lists are expected, but shareholders are automatically accepted. When customers move, their direct
delivery box will follow them. Customers can transfer their delivery to other people.
3) Range Expansions
At the same time the South Texas market is being established we will begin selling to central and more northern Texas
markets in anticipation of expanding the number of ranges in production.
Projects will be built in other locations and expansions in these projects will follow demand. Projects and ranges will be
added as markets and customers are confirmed through advance sales, capital becomes available, and prudent business
practices are followed (don’t build before sales are known). Projects and ranges will be financed on the strength of future
sales contracts and orders. This will reduce the requirement for issuing more shares and thereby avoid diluting the shares of
the original shareholders.
The marketing plan is set up in stages so that the number of ranges built equals the demand. New products will be
introduced into the market on a regular basis, on our own initiative and in response to demand. From our experience, we will
get free advertising from newspapers and magazines. As well, we will advertise with multi media – radio, newspapers, and
TV.
There will not be enough ranges in the beginning so customers will be served on a first come, first served basis.

Joint Ventures and SA Owned Projects
SA will form other Joint Venture Partnerships for expansion in the U.S., which will operate under an Operating Agreement
with SA. As well SA will expand from SA financing to own the projects outright. For example, the Joint Venture could be
SA Florida. In this agreement, SA will provide to SA Florida: a business plan, site selection, engineered drawings for
permits and construction, construction supervision and equipment, production startup and technology support, ongoing
inventory supply, staff training and in some cases trained staff to man the JV, marketing, advertising advice, and the
ongoing benefits from R&D. In other words, SA will provide a turnkey operation and ongoing support to SA Florida. The
training of the initial personnel for SA Florida will be done in Uvalde.
When a project is operational, the investors in a Joint Venture will receive a preferred rate of the net profits before taxes,
until the principal amount of the initial investment is paid back to the investor or investment group. After the principal has
been paid back to the investor, the parent company and investment partners could split the dividends 50/50, or another
agreeable ratio, on future profits from the starting and added ranges.
Export Projects
SA will also look to develop projects in other countries. The Export Import Bank, a branch of the U.S. government will
guarantee bank financing. Other banks may also participate. These projects will be owned outright by SA, or SA will invite
partners to participate along with bank financing.
Markets we want to enter are the South Seas, South America, British Isles, Italy, Caribbean, and Russia, and Greece. We
invite participants to work with us in these areas.
OPERATIONS AND COSTS
Contract Sales:
For contract sales, orders will be delivered directly to each of the contracted supermarkets on a weekly and/or biweekly
basis. Products will be distributed in an owned or leased 24’ truck van, most probably in the morning. It’s estimated that the
truck will cover anywhere from 250-400 miles a day. The delivery schedule will be based on the most efficient logistical
means of distribution.
Direct Delivery: Products will be prepaid and shipped directly to the consumer via UPS-type carriers with a one-four day
delivery option. For example, one 22-building range can produce 400,000 lbs of produce per year. Assuming the average
consumer consumes a low 30lbs of lettuce each year (freshexpress.com), Saladacres estimates one range can serve
thirteen thousand customers per year depending on the crop.
Product control: On-site Hazard Analysis Critical Control Point (HACCP). This system will meet the standard requirements
set forth by the FDA to ensure 100% bacteria free products. This is a method of making sure all potential areas of
bacterial growth and sources of contamination are kept clean; for ex. hands, washrooms, equipment, etc.
Inventory: Saladacres will manage its inventory on a first in-first out (FIFO) basis. Meaning, the company will carry little (if
any) excess product inventory. All production and harvesting is based on a customer need basis.
Packaging supplies: Purchased as needed and lead times will be product and vendor dependent.

Seed Suppliers: About 40 different seed companies supply seeds. The companies are located in the U.S., Canada, Europe
and Japan. SA will also plan to keep enough seeds on hand for at least a year.
Cost of goods sold: The cost of goods sold includes material costs such as: packaging material (bags, labels and wraps) as
well as shipping materials such as pallets and boxes.
Labor costs: Labor costs for production are broken down per range with the assumption that the facilities are working at
their maximum capacity.
Payment: Estimates of payment on sales with be: 40% cash, 60% 30 day for supermarkets. Food services will be weekly.
Options for payment such as cash, credit or check is dealt with on a customer basis. The customer’s payment option
is decided by the Saladacres salesperson responsible for the sale.
Utilities and Related Costs: When in operation, Saladacres will use the utilities of: electricity, gas, water, and telephone.
Hot water range heating will be done with the use of a biomass combustion system (BCS) using renewable fuels.
Additional related operational costs include: sewer and garbage pick-up, reverse osmosis (RO) service, and repair of
service and equipment. (See Financials).
Miscellaneous Costs include: nutrients, cleaning agents, staff clothing and contingencies (See Financials).
•
•
•
•
License and Operating Agreement
The greenhouse technology and design package is a body of information that is protected in trust. It is provided to our
partners under license for one dollar a year for the mutual benefit of SA, its partners, and shareholders. Saladacres LLC
does not own the technology for the legal protection of investors and partners, but is able to grant the use of the
technology on an exclusive basis in the United States. It is available to all who want to become partners in a working
greenhouse installation, working under the Operating Agreement which is the document signed and followed by our
partners. Issuing the licenses to partners is governed by trustees of the technology who
are also directors of SA.
The working information is described in the texts referred to as the Design and Data Base, Variety Register, and Term
texts. They are used for the construction, production, and operation of a hydroponic greenhouse of the SA design for the
year round growing of salad vegetables. The texts describe building design, layout and construction; function, component
costs, theory, and labor in relation to Saladacre greenhouses. They also describe production formulations, techniques of
seeding, transplanting, production, and designs of production equipment in the form of text and drawings.
The Term texts are the basis of the instruction curriculum and are split into Biology and Conditions, Chemistry, and
Electronics. These texts are based on science and are updated and edited on a regular basis by staff, interns, and
partners. It is a dynamic, flexible, and adaptable body of knowledge that takes effort and commitment to understand.
FUTURE DIRECTIONS OF AGRICULTURE

The future of agriculture will be driven by customers who demand pure fresh fruits and vegetables, and insist on knowing
their source. The future of agriculture will be lured, pulled, coaxed, and rewarded by health conscious people to grow clean,
healthy, pure, competitive priced living foods. These people will drive the direction of agriculture toward sustainable
production because sustainability is just that; it won’t run out of resources and stop. These people will also insist on ‘know
your source’ informed nutrition, and accept direct delivery.
Charles Darwin noted that survival and reproduction are the basic drivers of our behavior. It’s a personal and group
obsession, and the media is saturated with concerns of health, beauty, behavior, dress, and appearance. People want to
live and reproduce and these are the instincts that will change directions in agriculture.
Greenhouse Industry Expansion
The big changes in agriculture will see rising production of pure vegetables in greenhouses. The winners will be
greenhouse producers of vegetables that can manage mineral nutrients and provide a full range of minerals in their crops.
Since minerals are expensive, various ways will be developed to conserve minerals while the crops are growing.
Recirculating and drip irrigation systems and the use of liners are three such methods. Greenhouses can manage growing
environments and should permit maximum growth potential of crops. There are greenhouses now that can deliver
vegetables that are pure, good tasting, and with a high mineral content. Saladacres is an outstanding example.
Supplying the demand for fresh, pure, vegetables will be greenhouses located within 2 to 3 hours delivery of their
customers. Greenhouses will grow clean, pure, produce, competitive in price with field grown prices. Production will be
sustainable, where the use of fossil fuels is low, arable land is not used, and the operation is pollution free. Sustainable by
our definition is the ability to operate indefinitely without depleting natural raw materials such as topsoil and fossil fuels. For
the customer, this results in fresh vegetables, and low transport costs. Ideally, greenhouses will be located right next to the
cities they serve.
Direct marketing is the direct connection of the greenhouse grower to their customers. In direct marketing there will be
personal contact between the greenhouse agent and the customer. Marketing will become more direct because the
methods to do this are now available. Computers assist in similar areas such as airline baggage handling, and newspaper
delivery, and courier services like Fed Ex where changes in new and old delivery times and places are handled easily.
Direct delivery will work for SA because the delivery contractor earns a high return for his or her effort and has the
information technology. Supply contracts between SA and customers will enable the financing of the production systems,
which are expensive. A supply contract can be set up on the web, and can be accepted if there is production available. In
the case of SA, we expect waiting lists.
In light of this, SA is is presented with a great opportunity for expansion to meet the present and future demand for our
products. We have proven our ability to grow these crops. The minerals in SA vegetables are abundant, potent, pure, and
‘first hand’. The plants are healthy, good looking, and full of flavor. They provide essential minerals, enzymes, flavonoids,
and vitamins to those who eat them. Our contracted customers will be the benefactors.
FINANCIAL PLAN
Projections for capital costs and incomes are in Appendix A and Appendix B.
Income Summary
Incomes
Staff incomes and returns on investment are good. Full ownership of some ranges is possible in less than 5 years.
Year Ranges Total Gross # Greenhouses Capital Cost Sales Net Operating Project
Built Ranges Acres In Ranges (1) of Ranges (3) / Year (4) Income (2) Value (5)
1 2 2 5 40 4,900,000 3,800,000 1,520,000 4,900,000

2 3 5 12 100 6,600,000 9,500,000 3,800,000 11,500,000
3 5 10 24 200 11,000,000 19,000,000 7,600,000 22,500,000
3.5 10 20 50 400 22,000,000 38,000,000 15,200,000 44,500,000
5 50 75 200 1500 150,000,000 165,000,000 66,000,000 165,500,000
(1) Generally 1 range can provide for 3,000 people as a rule of thumb, with bagged salads, and produce through direct delivery
(2) ebidta:earned before interest, depreciation, taxes, amortization; a conservative average
(3) Capital costs based on the cost of the first range and economies for future ranges First range is $2.7 M, the succeeding ranges $2.2 M
(4) Conservative average projection based on a mix of standard crops and Direct Delivery
(5) Calculated as value of buildings only; not based on the income generating ability
(6) Each range is capable of producing annually: 838,000 heads of lettuce, 220 tons of spinach, 588,000 lbs. of tomatoes, 698,000 Liters of EMA nutrient
juice, 19.2 million green onions.
Purchase Orders: A Company By-Law
All purchases leading up to and including the construction of the first and subsequent ranges, will be preceded by
a Purchase Order, from SA, for all purchases of goods and services over $10.00. This includes consulting work,
legal work, making of contracts, business plan development or amendments, engineering, survey, permits, leasing
and rental, and other purchases listed in the Design and Data Base. This is a condition of accepting this Business
Plan. Payment will not be made without a Purchase Order number on the supplier’s invoice. Verbal commitments
or promises are not valid or binding.
NOTE TO READER:
The financial projections have been developed from actual operating statistics (pilot projects) and the profit potential is
estimated to be conservative. The projections are conservative and do not take into account:
• Surges in demand (which we are now experiencing)
• Inflation
• New profitable product lines such as medicinal herbs and extracts
• Culinary herbs, which the payback per range can be 3 years
• Rising costs of gas, natural gas, diesel, and electricity that will drive up the cost of imported and domestic produce
• Profit margins can be increased by using 'super ranges' which are ranges consisting of 30 climate buildings rather than
the standard 20 climate buildings.
• Weather changes caused by Global Warming and the adverse effects of drought, hurricanes, storms, and cool weather
• Income from carbon credits
• Additional production from 'hoop houses' - a utility seasonal greenhouse for growing long term crops
When in production, SA will operate on an income plus profit sharing plan where a percentage of the sales will be
distributed to production staff.
A number of income spreadsheets are prepared. The best 'mix' of crops to be grown in each range is determined by the
market.
CONTACT
Ron Tuttle; cell 954-270-3485 780-922-3340 tuttlerf@aol.com info@saladacres.net

Saladacresuvalde3

Recommandé

Recommandé

Contenu connexe

En vedette

En vedette (11)

Similaire à Saladacresuvalde3

Similaire à Saladacresuvalde3 (20)

Dernier

Dernier (20)

Saladacresuvalde3