4 B u s i n e s s p l a n | F i s h m e a l a n d f i s h o i l p r o d u c t i o n Execut ive summar y EXECUTIVE SUMMARY BUSINESS IDEA Business idea of the project is to increase the performance of Company’s fishmeal international trading. Calculations show that it is possible to significantly improve profitability of the business, if Company owns the process from fishing to fishmeal delivery to the clients. The plan is to organize a plant with fullcycle production of the fishmeal and fish oil. Raw materials for the plant considered menhaden fish which Company is going to harvest with its own vessels. BUSINESS DOMAIN Company plant will be located in Louisiana, USA. Location in Louisiana allows to achieve a significant reduction in production costs, due to the short run of the ships and lower natural gas prices. Company will sell the Fishmeal to the Chinese market, that is big enough and where it has strong positions. SALES ORGANIZATION Company already sells fish meal in the Chinese market. For that purpose, it uses a wholesale firm in Hong Kong and a fishmeal terminal in Shenzhen, China. Sales are organized either via major Chinese traders or directly to the Chinese agricultural companies. GROWTH POTENTIAL OF THE MARKET For today Chinese fish meal market size is about 1,4 million MT ($1,3 billion) with 450.000 MT internal production and 1.050.000 MT import. An estimated additional demand is 1 million MT. MANAGEMENT TEAM Team of the project has an experience dozens years’ experience in global fishmeal industry in China, Europe and USA. Figure 2. Business domain
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