Dominion Farms Ltd. Doing well by doing good , Calvin Burgess

Dominion Farms Ltd. is a member of the Dominion Group of companies, based in Guthrie, Oklahoma. The farm in Kenya is our first venture into Africa as a business and is the largest development we have done outside of the United States. The project contains over 17,000 acres located literally on the equator adjacent to Lake Victoria. The property was a low lying area, subject to much flooding and in need of a tremendous amount of work. It was a failed government project and was dormant for many years.

The region is underdeveloped with little change in the lifestyles of its people over the past century. Poverty levels were 84% (defined as earning less than 35 schillings or around US $.50 per day) when we arrived. Dominion began its work there by forging a relationship with all of the churches in the area, and enlisting them as our partners and our principal support base. Some now have quadrupled in size over the past couple of years.

Since acquiring the property in 2003, we have constructed a very significant dam with hydroelectric capability, many kilometers of dykes, a water storage reservoir of 1,100 acres, housing compound, grain storage and drying facilities, workshops, and many kilometers of roads. Approximately 2500 acres of cropland are now developed and commercial rice production has begun. Since 2005 we have been producing seed crops and testing varieties of soybeans, cotton, maize, sorghum and rice best suited for the area. Our test crop yields have been very encouraging with some among the highest in the world. We intend to complete the development of the farm over the next 4 years so that over 15,000 acres of irrigated land will be cultivated with multiple crops each year.

This farm will be principally for the production of rice with rotation crops of cotton, sunflower, soybean, and plants utilized in the production of anti-malarial medicines. Due to the absence of seasons and our proximity to the equator, we believe 2.2 crops per year per acre are attainable. In effect, our farm is equivalent to a US farm of approximately 37,000 acres. Remaining land not utilized for food crops are being planted in trees.

The mix of fertile soils, sun and water should produce approximately 100,000 metric tons of rice annually, most of which will be sold into the local market, since Kenya now imports approximately 220,000 tons of rice annually. Because of our remoteness, it is necessary to fully integrate all farming operations. This required construction of our own roads, water supplies, power plants, rice mill, fuel storage facilities, grain drying and storage facilities, cotton gin, and airstrip. All tractors, combines, and related farming equipment must be imported and supported by our own staff. This is truly a self-sufficient microcosm.

Along with the production of crops will be the development of a fish farm for the raising of Tilapia, and Clarius Catfish, both native to the area. The local lakes have been over-fished and in many areas are polluted, rendering fish production in Kenya to fractions of previous levels. We will begin with infrastructure for the production of 10,000,000 kilograms annually and doubling that figure over the next few years. The fish will be fed products from the local area. These will include approximately 6,000 tons of rice bran, 10,000 tons of broken rice, soybean and various other crops, making for a good use of otherwise low-revenue products. The fish hatchery is now reproducing selective breeding stock for use when we complete construction of the fish farm, and for stocking the local waterways. Fish operations will ultimately include a fish food processing plant (now being manufactured) and a fish processing plant. Some of the product will be flown directly to Europe as fresh fillets, with the remainder going to the local population to supplement what the lakes are not able to produce. Local fish sales will be controlled by women in order to stop the "sex for fish" trade, which is now the practice.

A byproduct of the fish operation will be the use of fish feces as fertilizer for growing organic crops on the farm. The nutrient-rich water from the fish ponds will be used for irrigation of those crops proximate to the fish operation. At full production approximately 7,000 acres of organic crops will be grown. After processing the fish, the off-fall will be processed into fish oil and fish meal. The oil will be converted to Biodiesel for farm energy sufficiency and the fish meal will become a protein additive to livestock feeds.

Out-grower programs have been started with the local farmers for cotton, and honey. We provide the seed or bees and the technology. Local farmers do the actual labor on their land and we are the market for the product, paying them upon receipt of the goods. The locals are very enthusiastic about this arrangement as they have a direct role in the transformation of their economy. We will expand this program into soybeans, fish and chickens as soon as the infrastructure is in place.

From an economic point of view, we are still in the investment stage which hopefully will change in the near future. Our goal is to be at a break even point sometime during the year of 2008. When we reach full production the row crop portion of the enterprise will produce approximately 100,000 tons of products annually, while the fish portion will produce about 20,000 tons. This is significant for a country like Kenya and will go a long ways in helping to offset their balance of trade and providing a sustainable supply of food; a very important issue in a country accustomed to drought and starvation.

Working in Sub-Saharan Africa also brings social responsibilities which would not be thought of in the developed world. Dominion Farms has constructed classrooms, medical clinics, public roads, water wells, markets, and sports fields for the local community. We are looked to as the ambulance providers, job providers, and to some extent a moral and spiritual example to the community. Dominion, in conjunction with the Center for Disease Control (CDC), has provided HIV/AIDS testing for the entire community, which revealed a 25% positive rate of infection. Anti-retroviral drugs are now available to these people at the local hospitals and clinics. Malaria has been an ever present killer in the area, and Dominion has donated thousands of bed nets to the local population. Along with this Dominion has taken an active role in the growing of artimesinan, a natural product utilized in the making of malaria curing drugs.

Our area has a long tradition of witchcraft, which is slowly being overcome thru education and by a spiritual transformation now taking hold of the population. Recently a 60 foot high cross was erected on a hill in the middle of the farm and dedicated by the local Church leaders. This was interpreted by the local community as a sign that Dominion is there to stay.

Dominion believes very strongly in the business potential of Africa as a whole and particularly in the Nation of Kenya. We are convinced that reasonable economic returns are attainable on a sustained basis. As the economies of these areas begin to grow, so will the market potential for the products produced there. The people are hard working, some even well educated, just trying to provide for their families and build better lives for themselves. They need foreign investment to make their dreams come true. As was the case in rural America during the depression years, these impoverished areas need a capital infusion to jump start their economies. It often takes minimal amounts of capital to start a turnaround in these closed economies, as the money changes hands so many times before leaving local communities. A recent government study points to over 50,000 persons living near the farm moving above the poverty line, and beginning to experience prosperity, all since we began operations. With rewards like that, sometimes our own financial returns become less important.

We believe now is the time for Africa. As attractive as nations like China have been for outside investment, countries like Kenya can be equally attractive, particularly in the field of agriculture. For all practical purposes, Kenyan business and Kenyan agriculture are synonymous. It constitutes most of their gross national product. If a plant grows well in America it will likely grow at least 20% better in Kenya. With at least two crops being the norm, it is like having twice as much land for no more investment. And with food prices often much higher than in America, the returns are acceptable. It takes courage to leave the comforts of our developed economies and our homes to be pioneers in rural Africa, but that is the best means of "Doing Well by Doing Good". The missionaries, medical teams, and government aid have all gone to Africa. It is now time for the business community to come and make its presence felt.

Dominion, in conjunction with another Foundation is soon to begin the construction of a Youth Training Center located at Dominion Farm. Construction is scheduled to begin in 2007, for an initial capacity of 2400 children and their counselors, including dorms, classrooms, cooking and dining facilities, and various vocational training areas. Emphasis will be placed on the body, soul, and spirit of those who attend. Operations will commence in 2008 with children from all over the Nation of Kenya. The government, schools and local Church community are fully supportive with much of the organizational work being performed by them. With sessions running all year long, tens of thousands of young men and women will be taught annually. Specialty training sessions will be held for educators, counselors, and community leaders; these leaders will constitute the follow-up teams for those who attend the center. The camp will teach the students in various vocations, such as dairy, poultry operations, horticulture, farming, water treatment, sewage treatment, vehicle maintenance, baking, sewing, fish farming, biodiesel production, forestry, and conservation. A strong emphasis will be placed on the prevention of HIV/AIDS with the children, hopefully, before they become sexually active. The Spiritual aspect will be placed in the hands of the local churches of Nyanza Province. Sports will be an area of high emphasis, including soccer, net ball and basketball, volleyball, running, and swimming. Swimming is of great importance as few rural Kenyans know how to swim, even the fishermen, who drown on a regular basis. A very large pool will be constructed with qualified instructors to teach the students. This alone will save many lives in the area.

The ultimate goal of Dominion Farms is to empower the locals to move out of the poverty they are now trapped within. The education and social status of the local people leaves them dependant on donors to continue to subsidize their meager lives to exist at the current level. THIS MUST END. The donor community has with its best intentions made the locals a dependant society. There is a better way. Dominion is in the process of organizing the combination of small-scale subsistence farmers; usually with land areas of from 5 to 15 acres each, into their own farm cooperatives, for which Dominion will provide expertise and financing to change their land into modern, moderate scale, productive Community farms. These farms, utilizing the latest farming techniques, are capable of producing several times more product and revenue than is currently is being achieved. The outcome of this will revolutionize the farming and economic status of the poorest people in the land. Projections show that after a period of 6 years the land owners will have enough income to live in their own modern homes, equipped with electrical lights, and are ready purchase their own modern farm equipment to successfully operate their own land, on their own. Dominion will provide the expertise, capitol, and equipment, to start three such demonstration farms in 2007. The crops produced will have a guaranteed market to Dominion. The principal crops will be cotton and soybeans; the cotton will help meet the goals of the national government to maintain the AGOA treaty with the US and Europe sustaining thousands of jobs in the nation of Kenya. The soy will be utilized for the production of oil for the production of Bio-Diesel, and as a high protein food source for both human and animal consumption, something greatly lacking in the Nation.

Dominion believes that self-sufficient people living with dignity, is the way of the future for the People of Kenya. The land resources and climate are there, and the people want to leave the poverty of their traditions moving forward into a modern productive society. Education, investment capitol and a willingness to change, are all that is needed to transform this Nation into a Blessed People.

Dominion is now making plans to acquire additional land in Kenya and other parts of the continent. We will begin to reach out to other investors and the Africans in Diaspora to become involved in making Africa a priority in their investments, as well as in their hearts. The yields will far exceed normal expectations - - both monetarily and in terms of human growth and dignity.

Dominion Farms Ltd

Calvin Burgess, CEO