Techno-Economic Feasibility Study Report on IQF Plant for Manufacturing Frozen Vegetables

Techno-Economic Feasibility Study Report on IQF Plant for Manufacturing Frozen Vegetables

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  1 (Summary of aTechno-Economic Feasibility Study Report on IQF Plant for Manufacturing Frozen Vegetables) Dr. Sreekanta Sheel 2 1. Introduction Fruits and vegetables in their fresh state are very much vulnerable to heavy post-harvest losses, both in quantity and quality during transportation and marketing. Estimated post-harvest loss of fruits and vegetables is reported to be 20-25 per cent. For highly perishable commodities, the loss may go as high as 40 per cent. So, if these perishable commodities are processed into shelf-stable products at commercial level, the financial return is expected to be more for the growers as well as the post-harvest loss will be reduced to a great extent. Freezing is one of the oldest methods to preserve food. It delays the growth of microorganism and slows down changes that affect quality or cause spoilage in vegetables and it preserves the taste, texture and nutritional value in food. IQF (Individually Quick Frozen) equipment is used to rapidly freeze individual pieces of vegetables before packaging. This process helps to preserve taste, texture and nutritional value in food. The demand for frozen vegetables is due to daily consumption. The reasons for assuming availability of effective demand for these products are: hygienically processed and packaged, properly retention of quality parameters in the packaged product, and recent advancement of technology in this field. However, it is well-known that the demand of the products especially in the export market has been increasing day by day. Hence, the project aims at establishing a modern IQF plant for manufacturing of frozen vegetables. 2. Land and Location of the Project The project is proposed to be located at the place where all the infrastructural facilities like power, water, gas and related other facilities are available. Raw materials availability and good communication to the sea port are also to be considered at the project site. The land should be considered adequate for the proposed project and also should have sufficient provision for accommodation and further expansion. 3. Building and Other Civil Cost The civil construction of the proposed project includes 11000 sqft built area with prefab, high quality roofing with adequate civil-structure. The construction includes main production plant, raw materials store, finished goods store, packaging materials store, R&D, QC laboratory, office rooms, guard room, conference room, toilet, boundary wall etc. 4. Brief Description of the Project The proposed project envisages establishment of a modern IQF plant for frozen vegetables. The total production capacity of the plant is 2400 MT per year at 100% capacity utilization with working 16 hours per day and 300 days per year. The plant comprises vegetable processing, IQF freezing and packing unit. The project will acquire ISO, GMP, HACCP and other related certifications and maintain the concerned rules and regulations properly. The processed products will be sold especially in the foreign market. 1 Paper presented in the workshop entitled “Frozen Vegetable Export : Challenges and Opportunities” held at Hortex Foundation, 22, Manik Miah Avenue, Dhaka on 13 May, 2010 2 Logistics (Transportation and Storage) Expert, Supply Chain Development Component, National Agricultural Technology Project (NATP), Hortex Foundation, 22, Manik Miah Avenue, Dhaka. Cell: 01714 083 764
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  2 5. Product, Pricesand Production capacity It is assumed that the plant will increasingly operate at 70, 75 and 80 percent capacity in its 1st , 2nd , 3rd year and beyond respectively. The unit price and annual production capacity of the plant at 100% capacity utilization are shown in Table 1. Table 1 Annual Production capacity and Price (at 100% capacity utilization) Item of Product Quantity (MT) No. of Package (No. in '000') Pack Size (gm) Average Unit Factory Sale Price/kg (Tk.) Average Factory/ Price per MT (Tk. In “000”) Total Factory sale Price (Tk. In “000”) 1. Vegetables 2400 2400 1000 67 67 160800 6. Sources of Raw Materials All the quality vegetables will be produced through contract farming following Good Agricultural Practices (GAP). The vegetable commodity to be processed will be selected on the basis of market demand. Production plan for the demanded frozen vegetables will be prepared on the basis of monthly availability of the commodities. The project shall not purchase any vegetable commodities from abroad. A considerable amount of vegetables will be processed into frozen products, as a result the growers will find their market and hence, they will be encouraged to grow more crops. The amount of raw materials required for the project is presented in Table 2. Table 2. Requirement of raw materials A. Local Raw Materials Requirement (at 100% capacity level) Raw Materials Description Total annual quantity (MT) Unit cost per MT (Tk."000") Total amount (in Tk. "000") 1. Vegetable 3360.00 13 43680 2. Cartoons L.S. 300 Total (Local Raw Materials) 43980 B. Imported Raw Materials Requirement (at 100% capacity level) Raw Materials Description Total annual quantity (No. in 000) Unit cost/ piece (Tk) Total amount (in Tk. "000") Packaging Materials: Laminated pouches packets (for frozen vegetables) 2400 2.5 6000 Total (Imported Raw Materials) 6000 Total (Local + Imported Raw Materials) 49980
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  3 7. Machinery andEquipments A. Imported Machinery/ Equipments The project will be run by the combination of imported and local machinery. The machinery are proposed to be imported from different countries like China, Italy, Taiwan, Japan, India etc. In this relation, the sponsors should collect the best price quotations of machinery. After comprehensive scrutiny and in-depth field survey and as per the best and suitable price offer, the price of the imported machinery stands at 475.62 Lac. B. Local Machinery/ Equipments At present, in Bangladesh, there are some quality machinery manufacturers who are now producing high quality machinery. The sponsors should study them and decided to use in the project. Apart from this, supporting machinery to the imported ones may also be purchased locally. The total cost of local machinery and equipments stands at Tk. 70.00 Lac. The list of machinery and equipment with capacity, origin and price has been shown in Table 3. In calculation of price, conversion rate 1 US$ = Tk. 70.00 was considered. Table 3. Requirement of Machinery and Equipments Name Capacity (kg/hr) Origin Amount (Tk. In "000") A. Imported Machinery 1. Vegetable Processing, Blanching, IQF & Packing Lines a). R.O. Water purify system 1 MT/hr Taiwan 1386 b) Vegetables processing line i) vegetables washing machine 400-1200 kg/hr Taiwan 693 ii) Vegetable peeling machine 400-1200 kg/hr Taiwan 693 iii) Inspection conveyor Taiwan 424 iv) Dicing Machine 300-1000 kg/hr Taiwan 462 v) Slicing machine 200-1000 kg/hr Taiwan 231 c) Corn Kernel Machine i) Corn kernel scraping machine 200-300 kg/hr Taiwan 270 d) Leafy and Bean Vegetables Cutting i) Cutting machine 500-1500 kg/hr Taiwan 246 e) Washing, Blaching and Drying i) Upward conveyor, 2 No. Taiwan 770 ii) Cut leaf and root vegetable washing machine Taiwan 1463 iii) Blanching and cooling machine: iii)-1. Blanching machine Taiwan 2926 iii)-2. Chiller Taiwan 662 iv) Connecting conveyor Taiwan 424 v) Vibrational de-watering system Taiwan 732 f) Tunnel Type IQF System i) Tunnel system 500 kg/hr Taiwan 12936 ii) 75 HP Screw condensing unit, 2 No. Taiwan 8624 iii) Water cooling system, 2 No. Taiwan 508 g) Packing System i) Automatic computer scale weigher 40 pouch/min Taiwan 5313 Vegetables Processing, Blanching, IQF & Packing Lines (Total) 38762
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  4 Table 3. Contd… NameCapacity (kg/hr) Origin Amount (Tk. In "000") 2. Boiler, Generator 400kVA and Accessories 7800 3. Laboratory Equipment 1000 Total for Imported Machinery (A) 47562 B. Local Machinery 1. Deep Tube Well 12000gal/hr 1500 2. Cold Storage 50 MT 5200 3. Workshop Machinery 300 Total for Local Machinery (B) 7000 Grand Total for Machinery and Equipments 54562 8. Transport The project will require transports for carrying raw materials to the factory and finished goods to the points from where the products will be exported. The detailed information on these transports is presented in Table 4. Table 4. Requirement of Transports Transport: No. Unit Price Total Price ('000') 1. Sedan car 2 1500 3000 2. Normal Container Van (Cap. 5 Ton) 2 2000 4000 3 Refer Van 2 2000 4000 Total 11000 9. Manpower With a view to ensure efficient and effective functioning of day to day activities of the project during erection and on completion, technical, administrative, marketing and sales personnel, skilled and unskilled labour will be required. The total manpower requirement for the project during commercial operation is 111person (comprising i). General, Administrative, Marketing and Sales Personnel, 34 person; ii) Technical, 23 person and iii) worker 54 person). The wages and salaries are assumed to be increased 5% per year. Semi skilled and unskilled persons will gather technical know how from highly qualified and well experienced production manager and quality control officer with a view to turn themselves into skilled hand as well as increase production efficiency. A Food Technology Consultant will work part time in order to advice the technical personnel in relation to production planning, evaluation and technological aspects and monitor the production, quality control and R & D activities of the project. 10. Manufacturing Technology 10.1 Manufacturing of Frozen Vegetables The manufacturing process includes number of steps and different for different products. The flowchart in Figure1 summarizes the production process of frozen vegetables. Some vegetables require pre-washing like potato that contain excessive amount of dirt before entering the processing
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  5 line. Blanching isthe dipping of vegetables in boiling water or steam for a short period of time, depending upon the kind of vegetable and its size. It is done to slow down the action of enzymes that can cause loss of flavor, color and texture. Blanching time is very important because under blanching accelerates the activity of enzymes and over blanching cause loss of flavor, color and texture. After blanching, products should be cooled in order to reduce the freezing time. IQF (Individually Quick Frozen) equipment is used to rapidly freeze individual pieces of vegetables before storage. This process helps to preserve taste, texture and nutritional value in food.. IQF freezing is done in a blast freezing tunnel capable of quickly freezing large quantities of blanched product to -20oC keeping the individual pieces separate. After freezing, products are stored in bulk before they are shipped to customer in smaller packages according to their requirements. The processor will have a cold store with 50 to 100 MT capacity to keep frozen vegetables for the purpose of short term storage of the finished goods. The flowchart in Figure1 summarizes the production process of frozen vegetables. Figure1. Manufacturing process flow chart for frozen vegetables Contract Growing of Vegetables Factory Gate Inspection Washing Blanching & Cooling Pre-washing Preparation (Peeling, Slicing, Dicing) Bulk Storage Packaging Freezing Distribution FrozenVegetablesLine Sell Fresh-cut VegetablesPackaging Fresh-cut Vegetables Line
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  6 10.2 Recovery Ratiosof Different Vegetables During Preparation of Frozen Vegetables The Table 5. shows the recovery ratio of different vegetables. For example, to make one kilo of frozen cauliflower, two kg of fresh cauliflower is required. The average recovery ratio for the vegetables to be frozen has been considered 71% in calculation of vegetable requirement. Table 5. Recovery ratios of different vegetables during preparation frozen vegetables Name of Vegetables Recovery ratio Cauliflower 50% Green Beans 90% Okra 90% Peas 38% 10.3. Pollution Control and Waste Disposal In the production process, no chemicals will be used. Therefore the project will no pose any pollution or any harmful waste disposal problem. The discarded portion of the vegetables will be removed from the factory and used to prepare compost in a place away from the factory. The compost will be used as manure in the vegetable production field. However, an waste treatment mechanism will be established in the factory premises for maintaining proper sanitation in the plant. 11. Quality Assurance 11.1 Good Agricultural Practice (GAP) The concept of Good Agricultural Practices is the application of available knowledge to the use of the natural resource base in a sustainable way for the production of safe, healthy food and non-food agricultural produces, in a humane manner, while achieving economic viability and social stability. The underlying theme is one of knowing, understanding, planning, measuring, recording, and managing to achieve identified social, environmental and production goals. This requires a sound and comprehensive management strategy and the capability for responsive tactical adjustments as circumstances change. Success depends upon developing the skill and knowledge bases, on continuous recording and analysis of performance, and the use of expert advice as required. The Guidelines portray the norms of good agriculture within 10 groups of resource concerns and practices. This structure is designed to provide the framework within which detailed management guidelines can be prepared for individual farming systems and for integrated production systems within specific agro-ecosystems. The principles of EUREP-GAP are expected to be followed considering the status of local resource base during production of agricultural produces (to be used in the factory) through contract faming. 11.2 Good Manufacturing Practices (GMP) GMP refers to the Good Manufacturing Practice Regulations promulgated by the US Food and Drug Administration under the authority of the Federal Food, Drug, and Cosmetic Act. These regulations, which have the force of law, require that manufacturers, processors, and packagers of drugs, medical devices, some food, and blood take proactive steps to ensure that their products are safe, pure, and effective. GMP regulations require a quality approach to manufacturing, enabling companies to minimize or eliminate instances of contamination, mixups, and errors. This in turn, protects the consumer from purchasing a product which is not effective or even dangerous. GMP is also sometimes referred to as "cGMP". The "c" stands for "current," reminding manufacturers that they must employ technologies and systems which are up-to-date in order to comply with the regulation. Systems and equipment used to prevent contamination, mix-ups, and errors, which may have been "top-of-the-line" 20 years ago, may be less than adequate by today's standards. At the GMP Institute, it is believed that GMP is a good business tool which will help to
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  7 refine both complianceand performance at a company. GMP requirements are largely common sense practices which will help a company better itself as it moves toward a quality approach using continuous improvement. The diagram in Figure 2 illustrates how it may be approached creating and maintaining a GMP lifestyle in a company. 11.3 Quality Management Principles (ISO 9000:2000) The quality management system standards of the revised ISO 9000:2000 series are based on eight quality management principles. These principles can be used by senior management as a framework to guide their organizations towards improved performance. The principles are derived from the collective experience and knowledge of the international experts who participate in ISO Technical Committee ISO/TC 176, Quality management and quality assurance, which is responsible for developing and maintaining the ISO 9000 standards. The enterprise will acquire the related certificate from ISO and be aware of the principles of ISO 9000:2000 and ISO 9004:2000. The managers typically will take part in applying the principles to improve their organizations' performance. Eight quality management principles will be strictly followed by the enterprise. 11.4 Hazards Analysis and Critical Control Point (HACCP) HACCP is a management system in which food safety is addressed through the analysis and control of biological, chemical, and physical hazards from raw material production, procurement and handling, to manufacturing, distribution and consumption of the finished product. For successful implementation of a HACCP plan, management must be strongly committed to the HACCP concept. A firm commitment to HACCP by top management provides company employees with a sense of the importance of producing safe food. HACCP is designed for use in all segments of the food industry from growing, harvesting, processing, manufacturing, distributing, and merchandising to preparing food for consumption. Prerequisite programs such as current Good Manufacturing Practices (cGMPs) are an essential foundation for the development and implementation of successful HACCP plans. Food safety systems based on the HACCP principles have been successfully applied in food processing plants, retail food stores, and food service operations. The seven principles of HACCP have been universally accepted by government agencies, trade associations and the food industry around the world. 12. The Management of the Enterprise The overall management of the firm will be vested on the Managing Director of the company, who will remain as the Chief Executive of the company. The Managing Director will be responsible for all executive works. The company will employ one General Manager (GM) to supervise and execute the day to day operation. The Managing Director along with the GM shall be responsible for policy formulation and GM will be in complete in-charge of execution. The works shall also be supervised by the Chairman himself. Required other skilled managers and skilled manpower shall be recruited to carry out all daily activities. In addition to these, one part time Food Technology Consultant will advise the operational team in technological, research & development, quality control, planning, monitoring and evaluation aspects. The organization chart of the enterprise is shown in Figure 3. Figure 2. Diagram of GMP lifestyle in a company
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  8 . Technical Coordination &Monitoring Deptt. Manager Export Marketing GMSection Manager TopManagementPlant Manager Plant Manager Board of Directors General Manager Food Technology Consultant CEO/ Managing Director Chairman Manager (Marketing) Manager (Admin) R & D , Training, Monitoring and Promotional Publication Manager (Quality Assurance) Manager (Engineering) Manager (Production) Domestic Marketin g Admin & Personnel Ware House and Cold Storage Vegetables Freezing Factory Machinery Utility Services Manager (Materials Purchasing & Contract Growing) Manager (Finance & Accounting) Materials Purchasing Contract Growing Incen- tives Figure 3. Organization Chart of the Enterprise
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  9 13. Market Feasibility Asthe demand for agro-processed products especially frozen vegetables in the export market increases to a great extent per year, there is opportunity to increase their production. The entrepreneur with its well experienced manpower and sophisticated machinery set will create its good image in the foreign market. He/she will succeed in developing a profitable business through the use of a number of competitive advantages like quality and flexibility, ability to sale at lower prices due to enjoying facility of opportunity of incentives from Government of Bangladesh, cheap and availability of raw material and labour. The sponsors and experts of the enterprise with their extensive background and experiences in the related field and sheer passion will propel the business into profitability. 14. Financial Analysis Assumptions Used in Financial Analysis The procedures and assumptions usually observed by the most financial institutions which were used in the financial projections are as follows: i) The project will work for 300 days per on the basis of one shift of 16 hours operation per day at 100% capacity utilization. ii) The price of the raw materials and finished goods has been calculated on the current price basis. iii) Stores and spare has been calculated as 1.0 percent, 1.5 percent and 2.0 percent for the 1st , 2nd and subsequent years respectively on the machinery cost. iv) The cost of repair and maintenance for the project has been calculated as 1.0 percent, 1.5 percent and 2.0 percent for the 1st , 2nd and subsequent years respectively on the machinery cost. v) Rent, tax and insurance etc. for the project has been calculated 0.5% every year on the fixed cost. vi) In cases of wages and salaries, increment will be at 5% per year. vii) The capacity utilization has been assumed at 70%, 75% & 80% for the 1st, 2nd and subsequent years respectively viii) Depreciation has been calculated at the following rates: Building 5% Machinery 10% Furniture 20% Intangible assets 20% Other items 20% ix) Economic returns have been calculated for three years only. This conservative view is customarily followed by most financial institutions in Bangladesh when conducting financial analysis.
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  10 14.1 Fixed Costof the Project Item (Tk. in "000") a) Cost of Land and Registration 17,250 b) Civil & Other Works 11,330 c) Imported Machinery 54696 d) Local Machinery 7000 e) Erection & Installation 1950 f) Internal Freight 150 g) Transport 11000 h) Furniture & Fixture 1050 i) Preliminary Expenses & Other Costs 4750 j) Interest During Construction Period (IDCP) 3279 Total Fixed Cost 112,455 14.2 Working Capital Item (Tk. in "000") a) Net Working Capital 5758 b) Quantity of Margin (Initial Working Capital) 2303 c) Working Capital Loan 3455 14.3. Total Cost of the Project Item (Tk. in "000") a) Total Fixed Cost 112,455 b) Quantity of Margin (Initial Working Capital) 2303 Total Project Cost 114758 14.4 Repayment Considerations i). Rate of Interest for Term Loan 10.00% i). Rate of Interest for and Working Capital 12.00% iii) Rate of Interest during construction period 10.00% iv) Construction period (Months) 6 v). Grace period including construction period (Months) 12 vi). Repayment period of loan (Years) 5 vii) Debt-Equity Ratio for Term Loan 60:40 viii) Debt Equity Ratio for Working Capital Loan 60:40
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  11 14.5. Means ofFinance The funds to be required for implementation of the project may be proposed in the following manner: Item Existing Proposed Total L/C L/C F/C Term Loan 0 19,940 45636 65,576 IDCP 0 3,279 0 3,279 Total Loan 0 23219 45636 68,855 Equity Capital-Sponsor's Investment 15750 27,751 2402 45,903 Total Cost of the project 15750 50970 48037 114758 14.6 Cost of Goods Sold (at 70% Capacity utilization in the 1st Year) Item (Tk. in "000") i) Raw Materials (RM) a) Local Raw Materials 30786 b) Imported Raw Materials 4200 Total RM(a+b) 34986 ii) Factory wages and salaries (Workers) 3007 iii) Manufacturing Expenses (ME): a) Indirect wages(Technical) 4765 b) Repair and maintenance of machinery and transport 748 c) Taxes and Insurance 562 d) Store and Spares 638 e) Transport (fuel, oil) 2000 f) Depreciation 6946 g) Utilities 5719 Total ME (a+b+c+d+e+f+g) 21379 iv) Factory Cost (i+ii+iii) 59372 Add. Opening stock of (WIP) 0 Total wok-in-process 59372 Less: Closing stock of WIP 495 v) Total cost of production 58877 Add. Opening stock of (F/G) 0 Total goods available for sale 58877 Less: Closing stock of (F/G) 491 vi) Cost of Goods Sold 58386
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  12 14.7 Earning Forecast(at 70% Capacity Utilization in the 1st Year) Item (Tk. in "000") i) Annual Sales Revenue 110692 VAT Applicable Annual Sales Revenue* 0 Less: VAT Adjustment 0 ii) Net Sales Revenue 110692 iii) Cost of Goods Sold 58386 iv) Gross profit 52305 v) Administrative and General Expenses (AGE): Admnistrative salary 7526 Printing and Stationery 500 Postage, Telephone, Faxes etc. 200 Advertisement 500 Conveyance & T/D 500 Depreciation 4016 Legal and Audit 300 Miscellaneous 500 Total AGE (a+b+c+d+e+f+g) 14041 vi) Distribution and selling expenses 3321 vii) Operating Profit 34943 g) Financial Expenses (Interest) 4185 j) Net Profit 30758 14.8 Profitability Ratios (at 70% Capacity Utilization in the 1st Year) Gross profit to sales (%) 47.25 Operating profit to sales (%) 31.57 Net profit to sales (%) 27.79 Return on equity (%) 76.12 Return on Total Investment (%) 30.45 14.9 Break Even Point (BEP) Percent in Capacity (at 80% capacity utilization in the 3rd year) Profit Volume Ratio (PV Ratio) 0.54521 Break-even Sales (Tk. in '000') 61844 Break-even capacity (Rated) 38.46% Break-even capacity (Proposed Capacity Level) 48.13% Margin of Safety 51.87%
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  13 14.10 Pay BackPeriod (Years) 3.40 14.11 Fixed Assets Coverage Ratio 1.63 14.12 Current Ratio 1.67 14.13 Debt Service Coverage Ratio (At 80% capacity utilization in the 3rd year) 2.34 14.14 Internal Rate of Return (IRR) 21.72% 14.15 Net Present Value of the Annuity (Tk. in "000") 58,642 14.16 Employment Generation (No. of Person) 111 14.17 Annual Contribution to GDP (At 80% capacity level in the 3rd year) (Tk. in "000") 69782 15. Economic Feasibility This agro-based project is a priority economic development initiative. The project on implementation will create new direct job opportunities for 111 people including Food Technologist, Chemists and other categories. The project also provide a large number of workers specially, women who are accustomed with food processing may be employed. Development of this plant will facilitate the agro-processing machinery, equipment and support industries who will be better established in this country. Growers of vegetables will be highly encouraged to grow their crops because they will find out a great user to whom they will sell their products. The project will contribute 697.82 Lac per year to G.D.P (according to the 3rd year operation). 16. SWOT analysis The following SWOT analysis captures key strengths and weaknesses within the company and describe the threats may be faced by the enterprise. 16.1 Strengths  High-quality product offerings that exceed competitor’s offerings of price, quality, and service.  Improved product quality will be ensured with the sophisticated machinery, skilled manpower and monitoring production and quality control aspects by Food Technology Consultant; raw materials especially, the agricultural commodity will be produced through contract growing system while the quality of the produces will be ensured as well as production cost will be reduced as a result more commission can be provided to the retailer.  Promotional activities will be performed to a great extent 16.2 Weaknesses  Country image 16.3 Opportunities  Cheap and availability of raw material and labour  Due to maintenance of proper quality, the products will gain popularity.
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  14  To saleat lower prices due to enjoying facility of incentives from Government of Bangladesh. Government has liberalized the industrial and investment policies in recent years by reducing bureaucratic control over private investment and opening up many areas. Major incentives are as follows:  Tax Exemptions : Generally 5 to 7 years. However, for power generation exemption is allowed for 15 years.  Duty : No import duty for export oriented industry.  The ability to develop long-term commercial contracts which should lower costs associated with production. Hence, retailers’ demand will be increased due to provision of higher commission 16.4 Threats  Well established brand name of the others  Natural calamities for crops during production 17. Conclusion and Recommendation The institutional market for frozen vegetables is huge and growing. Middle East and Far East countries can offer many opportunities to Bangladeshi exporters of frozen vegetables. The demand for quality products is growing amongst the hotel and hospitality industry. For example in UAE tourism business is booming and it is expected that in the next five years more than 200 hotels will open in Dubai. Prepacked frozen items help the chefs control the volume and quality of ingredients thus providing guaranteed consistency of ingredients and quality of the end product. In Saudi Arabia, 80% retail food is imported. Malaysia imported $23 million worth of frozen vegetables in 2004. A frozen vegetable line does not require very heavy investment. Except for an IQF tunnel freezer, all other equipments can be made locally. The capacity of an IQF freezer is very important as it is the main component of the whole process. A processor has limited time to buy different vegetables at low price due to short production period of vegetables and the efficiency of an IQF freezer determines the factory’s profitability. With some modification, the same production line can also be used to make fresh-cut produce, quick frozen fish, frozen fruits, cooked/semi cooked hamburger, patties or chicken nuggets. This is an excellent time to enter into frozen vegetables market. Local market is developing rapidly and demand for processed food is increasing due to growing per capita income, and increasing number of two-income families. The pre-feasibility study indicates that the project is technically feasible, financially profitable, economically desirable and rewarding from a marketing aspect. From the market analysis, it was found that there is huge demand gap in the foreign market and hence, the whole products may easily be consumed. Implementation of the project will generate direct employment of 111 persons. The above feasibility of the project indicates that it is possible to generate sufficient revenue from its operation to pay back debt obligation and annual operational expenses. Consequently, prospective and potential entrepreneurs may come forward to invest in this potential industry. The project is financially desirable, therefore may be considered suitable for bank financing.
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  15 REFERENCES Alan Thompson. 2005.Entrepreneurship and Business Innovation. The art of successful business start up and business planning. Anonymous, 1997. Hazard Analysis and Critical Control Point Principles and Application Guidelines, National Advisory Committee on Microbiological Criteria for Foods, U. S. Department of Agriculture, Adopted August 14, 1997 Anonymous. 2005. Business Plan of ABC Composite Textiles Limited. http://bangladesh.smetoolkit.org BAPA. Bangladesh Agro-Processors Association. www.bapabd.org BBS. 2007. Statistical Year Book of Bangladesh, 2007. Bangladesh Bureau of Statistics, Ministry of planning, Govt. of the Peoples Republic of Bangladesh, Dhaka, Bangladesh. Fellows, Franco and Rios. SWOT analysis of a new business in relation to competitors. In Starting a Small Food Processing Enterprise. John Petty, SWOT analysis and action plan, www.cpaaustralia.com.au Poisot, A. S. and Casey, S. 2004. Report of the FAO Internal Workshop on Good Agricultural Practices. FAO GAP Working Paper Series 4. Food and Agriculture Organization of the United Nations. Rome, Italy, 27-29 October 2004 Poisot, A. S.; Speedy, A. and Kueneman, E. 2007. Good Agricultural Practices –a working concept, Background paper for the FAO Internal Workshop on Good Agricultural Practices, Food and Agriculture Organization of the United Nations. Rome, Italy, Rome, 2007 SBP. Processing of Fruts, Vegetables and Other Food Products (Processed Food Industries), SBP Consultants and Engineers Pvt. Ltd. Roop Nagar, Delhi 110 007 Sreekanta Sheel. 1998. Prospects of processing and preservation of Bangladeshi fruits, vegetables and spices. In proceeding of the 'Workshop on processing and preservation of foods and fruits products of Bangladesh' organized by Institute of Chemists and Chemical Technologists held at IFST, BCSIR, Dhaka-1205, 29 June, 1988. Sreekanta Sheel. 1999. Techno-feasibility report on Fruit and Vegetable Processing Project- Prepared for Rajshahi Mango Products. Bagha, Rajshahi Sreekanta Sheel and S.M. Monowar Hossain, 2002. Status report on processing and marketing of under utilized fruits of Bangladesh. In Fruits for the Future in Asia edited by N. Haq and A. Hughes. ISBN. 0854327754. International Centre for Underutilized Crops, University of Southampton, SO17 1BJ, UK. Sreekanta Sheel. 2002. Techno-feasibility report on Fruit and Vegetable Processing Project- Prepared for Al- Fattah Industries Limited, Gazipur. Sreekanta Sheel. 2004. Techno-feasibility report on Food Processing Project- Prepared for Haluaghat Food Products. Haluaghat, Mymensingh www.dam.gov.bd. 2008. Department of Agricultural Marketing, Govt. of the Peoples Republic of Bangladesh, Dhaka, Bangladesh. www.gmp1st.com, 2008. GMP Institute, A division of ISPE.2008 ISPE, the International Society for Pharmaceutical Engineering, www.hortex.org/season.htm & produces.htm, 2008. Hortex Foundation, Sech Bhaban, 3rd Fl, 22 Manik Mia Avenue, Dhaka 1207, BANGLADESH www.iso.org/iso/iso9000-14000/ understand/ qmp.html. Quality management principles. International Organization for Standardization (ISO).