BUSINESS PLAN 'Plant for Powdered Milk Production'
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Project Description
Market Analysis
The domestic production prevails on the Russian market of powdered milk. In 2012 the domestic market volume of powdered milk has amounted to ***, which is higher by 9.3 thsd t or 23% than the similar indicator of 2011.
Production and sales of milk products depends on the state and development of animal husbandry, and one of the main problems of this industry is decrease in the number of cattle.
Own market of powdered milk will show the increase of production and export in the segment of skimmed powdered milk (SPM) and decrease in segment of whole powdered milk (WPM). Domestic market of powdered milk will fluctuate within ** t during the further years. The gradual annual growth by 15-20% might be expected for the next three years.
Production Supply
Powdered milk is a soluble powder prepared by drying of normalized pasteurized cow's milk. It is widely used in cooking. The powdered milk might be whole or skimmed. These two kinds of powdered milk differ by the percentage of substances.
Partners and Suppliers
For the purpose of providing fresh milk, the enterprise must apply to the large players, which work in the market of milk production and have an extensive system of milk collection from the population, approximately *** t a day. While monitoring the milk market and its collection from the population, it is important to pay particular attention to location and development of own dairy farms.
Pricing Policy
The global market of skimmed powdered milk had opposite trends in mid-June 2013, but the prices continued to grow in comparison with the previous month. The world tendencies were also reflected in the domestic market of skimmed powdered milk. In the domestic market the SPM prices had been increasing by 6.67% up to *** for this period. In the export market the range of prices has amounted to *** USD/t (has increased by 7.33%).
Marketing Plan
Processing enterprises usually have three sales channels: through the distributors, typically constant; self-service of production to the points of sale, maintenance of warehouses, from which the retail sellers can take the goods. At the present moment, the sales and promotion in the powdered milk market require good sales department and reasonable price with acceptable quality. The effective promotion tools for successful sales of powdered milk are the specialized exhibitions and company’s website.
Financial Plan
Project Description
Market Analysis
The domestic production prevails on the Russian market of powdered milk. In 2012 the domestic market volume of powdered milk has amounted to ***, which is higher by 9.3 thsd t or 23% than the similar indicator of 2011.
Production and sales of milk products depends on the state and development of animal husbandry, and one of the main problems of this industry is decrease in the number of cattle.
Own market of powdered milk will show the increase of production and export in the segment of skimmed powdered milk (SPM) and decrease in segment of whole powdered milk (WPM). Domestic market of powdered milk will fluctuate within ** t during the further years. The gradual annual growth by 15-20% might be expected for the next three years.
Production Supply
Powdered milk is a soluble powder prepared by drying of normalized pasteurized cow's milk. It is widely used in cooking. The powdered milk might be whole or skimmed. These two kinds of powdered milk differ by the percentage of substances.
Partners and Suppliers
For the purpose of providing fresh milk, the enterprise must apply to the large players, which work in the market of milk production and have an extensive system of milk collection from the population, approximately *** t a day. While monitoring the milk market and its collection from the population, it is important to pay particular attention to location and development of own dairy farms.
Pricing Policy
The global market of skimmed powdered milk had opposite trends in mid-June 2013, but the prices continued to grow in comparison with the previous month. The world tendencies were also reflected in the domestic market of skimmed powdered milk. In the domestic market the SPM prices had been increasing by 6.67% up to *** for this period. In the export market the range of prices has amounted to *** USD/t (has increased by 7.33%).
Marketing Plan
Processing enterprises usually have three sales channels: through the distributors, typically constant; self-service of production to the points of sale, maintenance of warehouses, from which the retail sellers can take the goods. At the present moment, the sales and promotion in the powdered milk market require good sales department and reasonable price with acceptable quality. The effective promotion tools for successful sales of powdered milk are the specialized exhibitions and company’s website.
Financial Plan
- Investment in non-current assets: *** USD.
- Investment in net working capital (NWC): *** USD.
- NPV: 4,500 USD.
- IRR: 52.5%
- Payback period: 2.34 years.
EXECUTIVE SUMMARY
1. MARKET ANALYSIS
1.1. Market Structure
1.2. Market Volume and Growth Dynamics
1.3. Analysis of Import Indicators in the Market
1.4. Analysis of Export Indicators in the Market
1.5. Investment Attractiveness of the Market
1.6. Market Problems
1.7. Forecast of Market Development for 2-3 Years
2. PRODUCTION SUPPLY
3. PARTNERS AND SUPPLIERS
4. COMPETITIVE ENVIRONMENT
5. PRICING POLICY
6. MARKETING PLAN
6.1. Sales Channels
##Movement Chain of Goods in the Market
6.2. Tools of Marketing Policy
7. REQUIREMENTS FOR INFRASTRUCTURE
7.1. Process Description
7.2. Approximate Technical Data, Productive Capacity
7.3. Need Expendable Material, Energy, Workforce
7.4. Volumes of Supplies
7.5. Drawings
7.6. Requirements for Building
7.7. Schedule of Project Implementation
8. FINANCIAL PLAN
8.1. Sales Volume
8.2. Cost of Raw Materials and Supplies
8.3. Personnel and Wage
8.4.Current Costs
8.5. Non-Current Assets
8.6. Summary Statement on Project Investment
8.7. Taxes and Payments
8.8. Profit and Loss Statement
8.9. Cash Flow Statement
8.10. The Main Project Indicators
9. SENSITIVITY ANALYSIS
9.1. Changing of Price Level for Sold Production
9.2. Changing of Sales Volume
9.3. Changing of Cost of Supplies and Components
9.4. Changing of Investment in Non-Current Assets
9.5. Changing of Discount Rate
1. MARKET ANALYSIS
1.1. Market Structure
1.2. Market Volume and Growth Dynamics
1.3. Analysis of Import Indicators in the Market
1.4. Analysis of Export Indicators in the Market
1.5. Investment Attractiveness of the Market
1.6. Market Problems
1.7. Forecast of Market Development for 2-3 Years
2. PRODUCTION SUPPLY
3. PARTNERS AND SUPPLIERS
4. COMPETITIVE ENVIRONMENT
5. PRICING POLICY
6. MARKETING PLAN
6.1. Sales Channels
##Movement Chain of Goods in the Market
6.2. Tools of Marketing Policy
7. REQUIREMENTS FOR INFRASTRUCTURE
7.1. Process Description
7.2. Approximate Technical Data, Productive Capacity
7.3. Need Expendable Material, Energy, Workforce
7.4. Volumes of Supplies
7.5. Drawings
7.6. Requirements for Building
7.7. Schedule of Project Implementation
8. FINANCIAL PLAN
8.1. Sales Volume
8.2. Cost of Raw Materials and Supplies
8.3. Personnel and Wage
8.4.Current Costs
8.5. Non-Current Assets
8.6. Summary Statement on Project Investment
8.7. Taxes and Payments
8.8. Profit and Loss Statement
8.9. Cash Flow Statement
8.10. The Main Project Indicators
9. SENSITIVITY ANALYSIS
9.1. Changing of Price Level for Sold Production
9.2. Changing of Sales Volume
9.3. Changing of Cost of Supplies and Components
9.4. Changing of Investment in Non-Current Assets
9.5. Changing of Discount Rate
TABLES
Table 1. Kinds of Powdered Milk
Table 2. Technical and Economic Parameters of the Building
Table 3. Schedule of Project Implementation
Table 4. Plan of Sales
Table 5. Sales Volume
Table 6. Unit Selling Price Including VAT
Table 7. Sales Revenue
Table 8. Expenditures of Raw Materials and Supplies
Table 9. Price for Raw Materials and Supplies Including VAT
Table 10. Costs of Raw Materials and Supplies
Table 11. Personnel and Wage
Table 12. Current Costs
Table 13. Non-Current Assets
Table 14. Summary Statement on Project Investment
Table 15. Taxes and Payments to Funds
Table 16. Profit and Loss Statement
Table 17. Cash Flow Statement
Table 18. The Main Project Indicators
DIAGRAMS
Diagram 1. Structure of Powdered Milk Products Manufacture (in Natural Terms) in 2011, %
Diagram 2. Cows Number at August 1 for 2007-2012, thsd animal units
Diagram 3. Dynamics of Milk and Powdered Cream Production for 2007-2013, thsd t
Diagram 4. Monthly Dynamics of Milk and Powdered Cream Production for 2010-2013, t
Diagram 5. Balance Dynamics of Domestic Milk and Powdered Cream Market (production + import - export) for 2007-2013, thsd t
Diagram 6. Sales Volume of Milk Products and Ice Cream for 2011-2013
Diagram 7. Dynamics of Skimmed Powdered Milk Import for 2006-2013, t, thsd USA
Diagram 8. Geographical Structure of Skimmed Powdered Milk Import in 2012 (in Natural Terms), %
Diagram 9. Geographical Structure of Skimmed Powdered Milk Import in 2012 (in Value Terms), %
Diagram 10. Shares of Skimmed Powdered Milk Importers in 2012 (in Natural Terms), %
Diagram 11. Shares of Skimmed Powdered Milk Importers in 2012 (in Value Terms), %
Diagram 12. Dynamics of Whole Powdered Milk Import for 2006-2013, t, thsd USA
Diagram 13. Shares of Whole Powdered Milk Importers in 2012 (in Natural Terms), %
Diagram 14. Shares of Whole Powdered Milk Importers in 2012 (in Value Terms), %
Diagram 15. Dynamics of Powdered Whey Import for 2006-2013, t, thsd USA
Diagram 16. Shares of Powdered Whey Importers in 2012 (in Natural Terms), %
Diagram 17. Shares of Powdered Whey Importers in 2012 (in Value Terms), %
Diagram 18. Dynamics of Skimmed Powdered Milk Export for 2006-2013, t, thsd USA
Diagram 19. Shares of Skimmed Powdered Milk Exporters in 2012 (in Natural Terms), %
Diagram 20. Shares of Skimmed Powdered Milk Exporters in 2012 (in Value Terms), %
Diagram 21. Dynamics of Whole Powdered Milk Export for 2006-2013, t, thsd USA
Diagram 22. Shares of Whole Powdered Milk Exporters in 2012 (in Natural Terms), %
Diagram 23. Shares of Whole Powdered Milk Exporters in 2012 (in Value Terms), %
Diagram 24. Dynamics of Powdered Whey Export for 2006-2013, t, thsd USA
Diagram 25. Shares of Powdered Whey Exporters in 2012 (in Natural Terms), %
Diagram 26. Shares of Powdered Whey Exporters in 2012 (in Value Terms), %
Diagram 27. The Main Producers of Milk and Powdered Cream (in Natural Terms), %
Diagram 28. Shares of Powdered Whey Producers in 2011, %
Diagram 29. Regional Structure of Powdered Milk and Cream Production in 2011 (in Natural Terms), %
Diagram 30. Regional Structure of Powdered Whey Production in 2011 (in Natural Terms), %
Diagram 31. Average Producer’s Prices for Milk and Powdered Cream for 2011-2012.
Diagram 32. Revenue and Expenditures of the Project
Diagram 33. Net Profit
Diagram 35. Cash Flows
Diagram 36. Fund Balance
Table 1. Kinds of Powdered Milk
Table 2. Technical and Economic Parameters of the Building
Table 3. Schedule of Project Implementation
Table 4. Plan of Sales
Table 5. Sales Volume
Table 6. Unit Selling Price Including VAT
Table 7. Sales Revenue
Table 8. Expenditures of Raw Materials and Supplies
Table 9. Price for Raw Materials and Supplies Including VAT
Table 10. Costs of Raw Materials and Supplies
Table 11. Personnel and Wage
Table 12. Current Costs
Table 13. Non-Current Assets
Table 14. Summary Statement on Project Investment
Table 15. Taxes and Payments to Funds
Table 16. Profit and Loss Statement
Table 17. Cash Flow Statement
Table 18. The Main Project Indicators
DIAGRAMS
Diagram 1. Structure of Powdered Milk Products Manufacture (in Natural Terms) in 2011, %
Diagram 2. Cows Number at August 1 for 2007-2012, thsd animal units
Diagram 3. Dynamics of Milk and Powdered Cream Production for 2007-2013, thsd t
Diagram 4. Monthly Dynamics of Milk and Powdered Cream Production for 2010-2013, t
Diagram 5. Balance Dynamics of Domestic Milk and Powdered Cream Market (production + import - export) for 2007-2013, thsd t
Diagram 6. Sales Volume of Milk Products and Ice Cream for 2011-2013
Diagram 7. Dynamics of Skimmed Powdered Milk Import for 2006-2013, t, thsd USA
Diagram 8. Geographical Structure of Skimmed Powdered Milk Import in 2012 (in Natural Terms), %
Diagram 9. Geographical Structure of Skimmed Powdered Milk Import in 2012 (in Value Terms), %
Diagram 10. Shares of Skimmed Powdered Milk Importers in 2012 (in Natural Terms), %
Diagram 11. Shares of Skimmed Powdered Milk Importers in 2012 (in Value Terms), %
Diagram 12. Dynamics of Whole Powdered Milk Import for 2006-2013, t, thsd USA
Diagram 13. Shares of Whole Powdered Milk Importers in 2012 (in Natural Terms), %
Diagram 14. Shares of Whole Powdered Milk Importers in 2012 (in Value Terms), %
Diagram 15. Dynamics of Powdered Whey Import for 2006-2013, t, thsd USA
Diagram 16. Shares of Powdered Whey Importers in 2012 (in Natural Terms), %
Diagram 17. Shares of Powdered Whey Importers in 2012 (in Value Terms), %
Diagram 18. Dynamics of Skimmed Powdered Milk Export for 2006-2013, t, thsd USA
Diagram 19. Shares of Skimmed Powdered Milk Exporters in 2012 (in Natural Terms), %
Diagram 20. Shares of Skimmed Powdered Milk Exporters in 2012 (in Value Terms), %
Diagram 21. Dynamics of Whole Powdered Milk Export for 2006-2013, t, thsd USA
Diagram 22. Shares of Whole Powdered Milk Exporters in 2012 (in Natural Terms), %
Diagram 23. Shares of Whole Powdered Milk Exporters in 2012 (in Value Terms), %
Diagram 24. Dynamics of Powdered Whey Export for 2006-2013, t, thsd USA
Diagram 25. Shares of Powdered Whey Exporters in 2012 (in Natural Terms), %
Diagram 26. Shares of Powdered Whey Exporters in 2012 (in Value Terms), %
Diagram 27. The Main Producers of Milk and Powdered Cream (in Natural Terms), %
Diagram 28. Shares of Powdered Whey Producers in 2011, %
Diagram 29. Regional Structure of Powdered Milk and Cream Production in 2011 (in Natural Terms), %
Diagram 30. Regional Structure of Powdered Whey Production in 2011 (in Natural Terms), %
Diagram 31. Average Producer’s Prices for Milk and Powdered Cream for 2011-2012.
Diagram 32. Revenue and Expenditures of the Project
Diagram 33. Net Profit
Diagram 35. Cash Flows
Diagram 36. Fund Balance
