3F Waste Recovery
The purpose of this summary is to acquaint prospective investor(s) and stakeholders with preliminary information about the purpose, strategy, product mix and plan to launch the most innovative and modern waste recovery business in Canada. We aspire to hold a global leadership position in waste management. 3F Waste Recovery is focused on turning waste problems in the fishery, farming and forestry industries into profitable solutions and will be a global leader in environmental stewardship, full product utilization and value-added manufacturing innovation.
We will achieve our goals by achieving three primary objectives. First, we will rapidly achieve scientific leadership status and intellectual property rights in profitably manufacturing high margin value-added products from groundfish, mollusks, crustaceans, seal, wildlife bones and skins, sawdust, forestry, and organic waste. Secondly, we will corner the market on seafood industry waste by aggressively pursuing primary processors and offering them a price for their waste that meets or exceeds the net profits they currently earn processing these products in their own plant. Thirdly, we will deliver a coordinated two-pronged marketing strategy focused on promoting import substitution in local markets and the perception of natural purity of northern Newfoundland products to export markets.
3F is entering the right markets at the right time and meshes well with government priorities at all levels. Stated priorities of the Newfoundland & Labrador government in The Way Forward include increasing food security, rural employment, sustainable development, and maximizing the return on natural resources for residents of the province. Declared federal priorities are to mitigate climate change impacts, transition to a low-carbon, sustainable, energy efficient economy, and support innovation in technology, processes and equipment in the natural resources sector.
Nothing will go to waste at 3F as it diverts up to 9,000,000LB of waste from landfills and aggressively strives for a 98% or higher recovery rate of all input materials. The critical piece to achieving this goal is the efficient and cost-effective composting any raw materials that cannot be recovered into a higher margin product. The hot composting solution converts 400,000LB of fish waste and sawdust (at a 1:3 ratio) to compost every 30 days. Studies performed in Newfoundland have shown yields are 40-60% higher versus imported chemical fertilizers. We anticipate the product mix to roll out in 3 phases. Initially, 3F will manufacture fish compost, groundfish tongues, cheeks, collars and mince for human consumption. In phase 2 we will manufacture extracted products at varying levels of refinement of collagen, lanolin and glycerin as well as other animal bone and hide products. We are very interested in developing technologies and markets that support 100% utilization of seal as we believe this will improve the perception of the seal hunt globally. In phase 3 we will manufacture products that use powdered mollusk and crustacean shells with a focus on biodegradable plastics, adsorbents and paving/concrete aggregates.
Traditional business models will benefit because of 3Fs entrance into the market. Businesses in the fishery, farming and forestry industries that have been incurring expense to dispose of waste by-products will no longer need to incur those expenses, raising their own profitability. One individual primary processor attempting to perform secondary processing on waste by-products is at best a break-even proposition for most processors. 3F will achieve economies of scale and deliver higher profit margins than any individual processor by acquiring sufficient volumes to justify capital investment in processing equipment to automate the manufacture of these products.
Potential investors are encouraged to review the completed business plan and financial projections which are available upon request with a signed NDA.