COMACO channels a portion of its revenues into the rural economy to incentivize the adoption of conservation-related practices and maintains its commercial growth and success to sustain the process. for a detailed description of the COMACO model, see here
Today, COMACO ships out 150-220 tons of products per month with average sales totaling $250-300,000/month. It recently invested in more automated processing machines to reduce production costs while scaling volumes. As the full impact of these investments are brought to the market place, COMACO will be able to reach monthly sales exceeding $350,000 per month while maintaining lowered production cost. At this point, which we anticipate achieving by March 2017, COMACO’s business will be fully self-financing and added growth will begin to sustain an increasing portion of the farmer support costs.
Management is confident of COMACO’s path to sustainability. Demand for its products is high and key market channels, including regional export and mass consumer markets remain untapped. What constrains sales is primarily working capital to buy crops. This requires lender confidence to finance debt. Improvements in COMACO’s overall business operations are beginning to overcome this bottleneck in COMACO’s growth and the projection for 2017 FY is on a solid track for profitability.