We offer you another business plan: growing potatoes. Such a business is one of the most profitable if it is carried out in favorable conditions for the crop being grown. This business will be a big plus for residents of warm areas in the winter, when in the middle zone the price of potatoes doubles. Find more business ideas in the article:
Our business plan is based on 30 acres of land (3,000 m2). To sow one hundred square meters you will need about 30 kg of seed potatoes. You need to use potatoes that are the size of a chicken egg or a little larger. We do not recommend taking very large potatoes.
So, for our 30 acres we will need 900 kg of seed potatoes. The price of 1 kg of this crop is on average 20 rubles, that is, to sow the entire area you need to spend about 18,000 rubles.
Without fertilizers, the mass cultivation of potatoes can be reduced to nothing. Since favorable black soil for cultivation is not present everywhere, you need to fertilize the soil with the following components:
Potassium superphosphate
Potassium permanganate
Ammonium sulfate
Superphosphate and potassium sulfate
Ash
All this will require about 17 rubles per square meter, and for 3,000 m2 - 51,000 rubles.
The main pest of potato crops is the Colorado potato beetle. We do not recommend spraying potatoes with chemicals ahead of time. But you will still have to monitor the growth of the crop and periodically check it for the absence or presence of pests. Means to combat this insect will not be expensive - about 2,500 rubles for 30 acres.
So, our business plan for growing potatoes for sale requires 30 acres of land. Since you are wondering about this kind of business, we assume that you already have land. Therefore, we do not include land costs in our calculations.
To sow 30 acres you will need:
900 kg of potatoes – 18,000 rubles
Fertilizers – 51,000 rub.
Drug against Colorado potato beetles – 2,500 rubles
Total: RUB 71,500
Planted potatoes take about 3 months to grow. After this time, from one hundred square meters you will dig up about 200 kg instead of the planted 30 kg, and from the entire area - 6 tons.
The retail selling price of 1 kg of potatoes in summer is 20 rubles per 1 kg, in winter – 40 rubles. It turns out that in the summer your income will be 120,000 rubles, and in the winter – 240,000 rubles. Net profit, respectively, is 48,500 and 168,500 rubles.
It is worth noting that each of the farmer-businessmen in such a business has his own approach. Every year, new and improved potato planting techniques and preparations for enhanced crop growth appear. Each of them, in practice, selects their only secret method for increasing potato yields. Pick it up too, and then your profit will double or triple!
Turkey rearing. Profitable business With minimal investment! Growing champignon mushrooms as a business. A profitable, fast-paying investment.
All over the world, organic products grown in natural conditions without the addition of chemicals are valued. It is popular in many industries: cosmetics, agriculture and others. The main one is considered food industry, which will always occupy a leading position in the hierarchy of human needs. Therefore, food is one of the most profitable market niches, which will help every entrepreneur earn their first million. Potatoes have always been and remain the most popular food product, so a business plan for growing potatoes is the very project that will be profitable under any conditions. And 5 tons of harvest from 1 hectare of field are impressive indicators that force start-ups to act immediately and make their dreams come true. This business plan for growing potatoes with calculations contains a detailed analysis of the market and step by step instructions implementation of the project, taking into account all the nuances and possible risks.
For most Russians, potatoes are one of the main and most important vegetables. According to statistics, every citizen of the country eats about 85 kg of potatoes annually. This means that the demand for this product remains stable.
The best varieties of potatoes are considered to be “Ryabinushka” and “Radonezhsky”. Both varieties are resistant to climatic conditions and diseases and produce about 5 tons of yield per 1 hectare of field, which is three times the yield of other vegetable varieties. A distinctive feature of the Radonezhsky variety is its ability to produce 2 harvests per year.
The most popular technologies for growing potatoes are the Dutch method, growing potatoes under straw, and the Mittlider technology. Potatoes grown using Dutch technology produce the largest and healthiest harvest.
The yield of a potato field is influenced by several factors: the choice of plant variety, the fertile qualities of the land and the efficiency of the technology for growing the vegetable. In addition, it is important to timely fertilize the soil with high-quality humus, water the garden, and control pests. However, even if you follow all the rules and regulations for planting potatoes, you should not expect 100% yield, because The harvest can be influenced by natural factors beyond human control.
Starting capital: 7,000,000 rubles.
Organizational and legal form: peasant farm.
Services provided: marketing of grown products (potatoes).
Planting material: potato variety “Golubizna”.
Technologies used: Dutch method of growing potatoes.
Estimated annual income: 2,500,000 rubles.
Payback: 2.5 years.
When implementing a project, you first need to find and rent a plot of land with an area of 10 hectares. In this case, the lease agreement is concluded for a period of 50 years with the right of subsequent purchase. It is advisable to locate the land plot near the city (up to 100 km). This will ensure a stable sales market and savings on rent (about 250 thousand rubles annually).
We choose peasant farms as the form of management. The most profitable taxation system in these conditions is the Unified Agricultural Tax with 6% of profits.
After registration, the entrepreneur must purchase equipment, select personnel and purchase planting material.
When starting the main part of the project, growing potatoes, the business owner must take care of processing the soil and preparing it for sowing, and then carry out sowing work. All of the above measures must strictly comply with the Dutch technology of growing vegetables.
During plant growth, it is important to carry out processing and watering work in a timely manner.
Ultimately, all employees must harvest the crop and carry out work to effectively market the product.
| № | Name | Amount, rub. |
| 1 | Tractor | 900 000 |
| 2 | Potato planter | 400 000 |
| 3 | Sorting line | 400 000 |
| 4 | Inter-row tillage machine | 350 000 |
| 5 | Potato harvester | 450 000 |
| Total: 2,500,000 rubles | ||
| № | Job title | Number, persons | Salary, rub. | Amount, rub. |
| 1 | Machine operator | 2 | 11 000 | 22 000 |
| 2 | Handyman | 4 | 7 000 | 28 000 |
| 3 | Manager | 1 | 17 000 | 17 000 |
| 4 | Mechanic | 1 | 13 000 | 13 000 |
| 5 | Security guard (summer) | 3 | 5 000 | 15 000 |
| 6 | Accountant (outsourcing company) | 1 | 5 000 | 5 000 |
| Total: 550,000 rubles | ||||
On a land plot of 10 hectares, the elite potato variety “Golubizna” will be used as planting material, the cost of which reaches 40 rubles per kg. The purchase of seedlings will cost the entrepreneur 800,000 rubles.
The construction of a storage facility for potatoes, which will allow storing vegetables in marketable condition until the spring season, when the price of the product increases several times, will cost about 3,000,000 rubles.
The Dutch method involves growing vegetables in natural conditions with minimal costs. The peculiarity of this method is minimal use mechanical impact on plants and the field as a whole.
Soil aeration is another distinctive feature a method that allows you to create natural ventilation of the soil in order to mix ground and atmospheric air. To do this, the soil is loosened and the potatoes are placed in ridges. It is important to make wide spaces between rows of plants.
Thanks to this technology, about 2 kg of potatoes can be obtained from a grown bush. The resulting fruits can easily tolerate long-term storage in special conditions.
There are nuances that must be observed when using Dutch technology in order to obtain a good harvest, namely:
Formation of beds for planting - important stage process of growing vegetables. To ensure that the bushes are evenly illuminated, the beds are formed from north to south. The row spacing is 750 mm. The depth of the holes is 850 mm, the clearance between them is up to 300 mm.
Seeds must be placed in the holes with the sprouts up. An embankment about 100 mm high is made on top. The embankment is increased gradually, depending on the growth of the bushes.
It is important to follow the rule: no more than 600 plants can be planted per 100 square meters.
It is necessary to water the plants three times during the entire period of their growth: when the first shoots appear, before flowering and after it.
It is better to start pest control before the plants flower. To do this, potato tops are treated with products that are sold in specialized stores.
Harvesting begins in early August (to select seed material), and by the end of the month the harvest is harvested for food purposes. It is important to remember that 10 days before harvesting it is necessary to remove the tops.
This technology contributes to good yield and preservation of products.
The storage room for potatoes should be dry and cool, protected from the sun, with a temperature of up to 5 degrees and air humidity of up to 90%. After harvesting, the product should be kept in a room with a temperature of up to 17 degrees for 2 weeks. After this, the temperature in the place where the goods are stored is gradually reduced, bringing it to 5 degrees.
Low indoor humidity can cause potatoes to change color. Green potatoes may be suitable for planting, but are contraindicated for consumption.
This storage method promotes the healing of fruit lesions that may have occurred during harvesting of the land.
Sales of grown potatoes can be carried out through the following channels:
Solving issues with long-term storage of potatoes can facilitate their sale during the winter season at a higher price.
The environmental qualities of the product being sold can also affect its price and significantly increase the demand for the product.
| № | Name | Amount, rub. |
| 1 | Site design | 200 000 |
| 2 | Purchasing seedlings | 800 000 |
| 3 | Purchase of equipment | 2 500 000 |
| 4 | Construction of storage for vegetables | 3 000 000 |
| 5 | Purchase of fertilizers, soil treatment products | 100 000 |
| 6 | Business registration | 100 000 |
| 7 | Other expenses | 300 000 |
| Total: 7,000,000 rubles | ||
| № | Name | Amount, rub. |
| 1 | Rent of land | 240 000 |
| 2 | Employee salaries, tax deductions | 700 000 |
| 3 | Expenses for soil treatment products | 165 000 |
| 4 | Combine harvester repair | 100 000 |
| 5 | Depreciation | 100 000 |
| 6 | Costs for fuels and lubricants | 200 000 |
| 7 | Vegetable storage costs | 130 000 |
| 8 | Accounting expenses | 80 000 |
| 9 | Other expenses | 50 000 |
| Total: 1,765,000 rubles | ||
The annual profit from the business will be about 4,500,000 rubles. However, minus annual expenses, it will be 2,735,000 rubles. Taking into account tax deductions under the Unified Agricultural Tax, the net profit from the project will be: 2,735,000 – 164,100 = 2,570,900 rubles.
The predicted profit will become real only in the case of 100% sales of grown products. Under such conditions, the payback of the business will occur already in the 3rd year of the enterprise’s fruitful operation. Considering the possible risks, it is worth noting that in practice, the payback of the business will come after 4 years of hard work in the field.
Before implementing this business plan, it is necessary to conduct a thorough analysis of the risks that an entrepreneur may encounter along the way.
The most common risk in this industry is investment risk. This is the risk associated with the occurrence of unexpected monetary losses due to the unstable investment conditions of the project.
In addition, there are other factors that can in one way or another affect the profitability of a business:
This example of a production plan demonstrates the cost of business at first. But when implementing it, it is worth remembering that potato growing is a win-win option for starting a career, which will not lose popularity over the years. This means that the profitability of the business is extremely high, and the business is able to generate income for many years.
The potato growing business itself is a profitable business. However, the amount of profit depends on the skillful implementation of the project. Therefore, emphasis must be placed on the quality of grown products. It must be remembered that an environmentally friendly organic product is valued many times more than a product created using chemicals. Of course, the investment in an organic product is quite large. But the income from these products will not be long in coming.
The purpose of this business plan is to attract the attention of investors and creditors to invest funds in the development of one of the areas of activity of the agro-industrial complex - potato processing.
This business plan is aimed at organizing deep processing of raw materials and production high quality, optimization commodity flows into the region and beyond the region.
The objective of the business is to process potatoes using waste-free production technology.
LLC "AgroPromTechnologies" will achieve success among its potential clients due to its advantages over competitors:
Potato processing is carried out using flexible, easily adaptable technology. The equipment is completed in a block-modular manner and is expanded as the technology is developed and sales expand.
Current status of the project:
Investments required to implement the project using a loan - 41,020,000 rubles.
The source of loan repayment is profit from the sale of potato products.
The borrower's guarantee is the image of the agro-industrial complexes and the city enterprise that are participants in potato processing. The participants are wealthy households that have repeatedly demonstrated their ability to repay loans on time.
2. Description of the business, product or service
Potato products are second-line food products, which does not diminish their dignity and importance.
The importance of potatoes in nutrition is determined by their high content of starch, minerals (potassium, calcium, iron, etc.), the presence of valuable proteins, vitamins (for the population of many regions of our country, potatoes are an important source of vitamin C).
Deep processing of potatoes allows:
The attractiveness of the project is expressed in the following theses:
The importance of the project under study lies in the fact that the implementation of the business plan will solve the following problems:
In the future, it is planned to expand the range of products: to produce French fries, starch, potato flour, potato flakes and semolina, and dried semi-finished products.
The production process for making crispy potatoes and a number of other potato products consists of three stages: preparatory, processing and final.
The preparatory stage is mechanized and includes the following stages: washing and removal of defective potatoes.
At the processing stage production process products acquire their finished form by peeling potatoes, slicing, removing starch, drying, frying, and processing with spices.
The final stage involves packaging and packaging of potato products.
Food production is a basic sector of the economy that requires constant investment. Both before and after the reforms, many types of products continue to enter our market from outside, so the finances of the city and surrounding areas continue to work and develop foreign territories. Of particular interest is the production of potato products. The main types of potato products: crisp potatoes, chips, frozen fries, flour, grits and mashed potatoes, semi-finished chips, dried potatoes, starch, sugar syrup, alcohol, drinks, cutlets, sulphated potatoes.
Processing potatoes into potato products has become widespread in world practice. Thus, in the USA, 50% of the gross potato harvest is processed into food, in the UK - 40%. The potato processing industry is widely developed in Denmark, Sweden, and Finland. In England, more than 20% of potatoes grown are processed, with 30% of this volume being processed into crisps, 13.5% into dry potatoes, and 56.4% into frozen products. The popularity of potato products and semi-finished potato products is mainly due to the reduction in labor involved in preparing dishes at home, which is crucial for women’s employment social work. Today in Russia only 1% of the gross potato harvest is processed, and yet potato products are becoming increasingly popular in Russia, especially crispy potatoes, chips, frozen French fries, grits and mashed potatoes.
Currently, the South Ural region has potato varieties that have several advantages at the same time: high yield, great adaptability to different natural conditions, early ripeness and, at the same time, excellent commercial qualities
3. Description of the sales market
Conducted marketing research on the products offered indicates the existence of a significant volume of demand for potato products.
Let's consider the segmentation of consumers of these products by gender and age. When conducting marketing research 100 respondents were interviewed, of which 58% were women, 42% were men.
Product range
Quantity of purchased potato products
We can conclude that when segmented by gender, and given that the first category is the most significant, the range of potato products is aimed mainly at the female part of the population. Although there is a significant influence of men as well. Therefore, in general, we can say that potato products are popular among both women and men, with a slight predominance of the “weaker” sex. This allows us to conclude that for a more complete analysis it is necessary to segment the market according to the age of all respondents.
The range of potato products is aimed at both the female part of the population and the male population under the age of 16 years. Although an important role is played by consumers from 16 to 45 years old with an average income level.
After market segmentation, we will focus on the analysis of competitors of AgroPromTechnology LLC.
Competitor analysis
In the current situation, it may be advisable to more strictly concentrate priorities on measures that give a significant effect in a sufficiently long time. short terms, not going beyond the medium term. On the one hand, there are significant reserves for increasing profitability in this area. On the other hand, apparently, a significant part of the problems with the quality of products can be solved in 3-5 years.
4. Sales and marketing
5. Production plan
The process of making (frying) chips is quite simple and the quality of the final product is more than 80% based on the quality of pellets. So, the raw materials for pellets (potato flour, granules and puree are mainly supplied from Finland by the companies Nordio, L.AGRO (manufacturer - RAISIO Nordic), from Italy "KNORR", "HELL MANNS" (manufacturer - JSC SI-PI -SI Foods Company Ltd.), USA - ORSINI M.R., Unkle Bens, Germany Gold Pure (suppliers - Sevtorgimport, Paritet, Degot), MAGGI, ELENA, NORDIC", "INVITE" (supplied by "Best Foods").
Technological process for the production of crispy potatoes at the enterprise
In the production of French fries, heat treatment involves blanching the potatoes, followed by blanching and cooling followed by freezing of the product. Frozen French fries are transported to a refrigerated packaging room where they are packaged into pre-formed film sleeve bags.
Packing of packages into shopping boxes, molding and sealing of boxes, as well as their installation on pallets is done manually.
The intermediate product is starch, obtained in the process of washing cut potatoes into slices, bars, squeezed out of water, dried, crushed, transferred for packaging and packing, transported to a finished product warehouse and then delivered to the consumer as a finished product.
The pulp that accompanies the production of crispy potatoes and French fries, obtained during the process of peeling potatoes, is dried, packaged in containers and supplied to livestock or poultry farms.
The vegetable oil used in the deep fryer is purified from mechanical impurities in an oil regeneration unit, packaged in containers, transported to a finished product warehouse and transferred as a raw material to the consumer in the soap industry, or for the production of drying oil, fatty acids, glycerin, varnishes and other materials.
As product sales expand, the equipment is equipped with additional module blocks, which allow expanding both the volume and range of finished potato products.
Suppliers: Perfi-Amerix joint venture; Eastern Continental Investments LTD; Grimm Jandmaschinenfabrik Gmbh & Co.KG; The industrial production company TAURAS all supply potato processing equipment, transport it and commission turnkey potato production lines.
Potential suppliers of high quality vegetable oil: the cities of Voronezh, Moscow, St. Petersburg, Krasnodar Territory.
Enterprise production program
The table below shows the fixed assets and their costs required for the successful processing of raw potatoes into finished products crispy potatoes or french fries. At a time of decline in sales of potato products, this equipment makes it possible to switch to the production of frozen vegetable mixtures. Frozen vegetable mixtures are ready-to-eat products that, after defrosting, are served as side dishes for meat and fish dishes, or used in vegetable soups.
Requirement for fixed assets
Fixed assets | Total demand, thousand rubles. |
1.Buildings, industrial structures | |
2.Working machines and equipment | |
3.Vehicles | |
TOTAL: |
The amount of depreciation charges is 4703.25 thousand rubles. calculated based on the depreciation rate for the complete restoration of fixed assets in the amount of 11.8% for working machinery and equipment, in the amount of 14.3% for vehicles with a carrying capacity of up to 2 tons and in the amount of 12% for other fixed assets in accordance with uniform standards of depreciation for the complete restoration of fixed assets.
The rent for industrial premises is calculated from the area of the premises and rental rates for 1 sq.m. of industrial premises are 450 rubles in accordance with a preliminary agreement with the lessor, who is the founder of an enterprise for the production and processing of vegetables.
The cost of electricity for technological purposes is calculated based on the amount of electricity consumed per year - 341,280 kW in accordance with technical characteristics blocks-modules and tariff rate for 1 kW - 0.64 rubles.
The cost of water consumption and wastewater disposal for technological needs was determined based on a fixed cost approved by the Resolution of the regional energy commission Chelyabinsk region No. 18 dated 02.23.01 for 1 m/cub. respectively 8.52; 7.05 rub. multiplied by the volume of water consumed in accordance with the technical characteristics of the equipment.
An important aspect of this section is the accurate determination of the cost of the production product.
Equipment for the production of crispy potatoes is a universal line. This line consists of block modules, which allows, with increasing sales of products, to increase production volumes through additional blocks, as well as switch to the production of a different range of products. The above-mentioned property of the equipment allows not only to plan and control costs, but also to analyze the impact of indicators on a unit of production in each individual section.
Cost calculation
Name of cost items | Unit change | Price. rub. | For 1 ton | For annual production 1006.7 tons. |
||
Qty | Amount, rub. | Qty | Amount, thousand rubles. |
|||
Vegetable oil | ||||||
Potato | ||||||
2. Packaging material | ||||||
Cardboard boxes | ||||||
Polyethylene | ||||||
3. Energy costs | ||||||
Water disposal | ||||||
Electricity | ||||||
4. Salary | ||||||
6. Depreciation of main funds | ||||||
8. Other costs | ||||||
Total costs | 32 385,14 | 32 602,12 |
||||
Thus, the cost of 1 kg of products is 32.4 rubles.
In general, it can be noted that the main share of costs belongs to raw materials: potatoes and vegetable oil, followed by depreciation and other costs.
Potato processing is a capital-intensive industry, since, along with expensive imported equipment, it requires high-tech storage, which is due to the seasonality of the supply of the main raw material (potatoes).
Today the city has a storage facility that meets the required potato storage requirements and a room for potato processing. In the production (growing) of potatoes that provide profit, people are interested in both farms, and agro-industrial complexes. Therefore, it is of interest to combine these urban and agricultural factors into a single whole, which will bring the sales market closer to potato processing production and reduce the cost of production in terms of the cost of transporting finished products.
6. Organizational structure
The management of the enterprise will be carried out in accordance with the charter of AgroPromTechnologies LLC, which will outline the conditions on the composition and competence of management bodies and the procedure for their decision-making.
In the process of implementing the business plan, a organizational structure enterprise, aimed at establishing clear relationships between its individual divisions: mutual subordination, size and organizational structure of service and management divisions (marketing, material support, sales, etc.), as well as administration.
Organizational management chart
Production managers responsible for implementing the business plan are people with higher education, professional specialists with at least 5 years of experience in their field, age from 27 to 40 years.
The director manages AgroPromTechnologies LLC and resolves all financial issues related to the ongoing operation of the organization.
The main functions of a manager are: developing strategies for the development of the organization; analysis external environment(control of the market for raw materials, competitors, new technologies).
An accountant maintains the company's accounting records and prepares financial reports.
From the start of the potato processing project, maintenance costs will be required service personnel and business management costs.
The main form of exercising the powers of the labor collective will be general meeting, resolving issues of concluding a collective agreement and the procedure for providing social benefits to production workers.
7. Financial plan
For the correct accounting of sources of funds, their distribution, determination of sufficiency cash To carry out a normal uninterrupted production process in the enterprise, a financial plan is drawn up.
Let's calculate prices for main and auxiliary products:
Sales volume forecast
Product name | 1 year | 2 year |
||||
Price, rub. | Quantity, t. | Amount, thousand rubles | Price, rub. | Quantity, t. | Amount, thousand rubles |
|
Crisp | ||||||
Total: | 47489,95 | 52357,67 |
||||
From the table 2.8 shows that there is a dynamic increase in production volume both in physical terms and in monetary terms. So the total quantity of products in 2010 will be 1006.53 tons, and in 2011 1056.86 tons, which is 5.0003% more than in the previous year. The situation is similar for groups, which allows us to say that all types of products influence the overall positive dynamics.
The financial plan for the first year of crisp potato production is presented by profit and loss statements, distribution of net profit (Appendix 4) and a balance of expenses and income.
The income statement shows the operating activities of the crispy potato business during the first year by quarter and the second. The report data shows that, starting from the first year of production, there has been an annual increase in net profit, which is a positive side of the project.
Distribution of net profit (planning of savings and consumption funds), thousand rubles.
Indicators | First year | Indicators | First year |
| Savings Fund | Consumption fund | ||
Net profit | Net profit | ||
Sources of formation of the fund's funds |
|||
Fund balances at the beginning of the planning period* | Balances of the consumption fund at the beginning of the planning period (clause 6 of the previous period) | ||
Depreciation charges | Deductions from net profit | ||
Deductions from net profit | Other income | ||
Increase in sustainable liabilities | Payment Fund | ||
Long-term bank loan | |||
Total sources | Total sources | ||
Directions for using savings fund funds |
|||
Payment of interest for users. loan | Remuneration | ||
Costs for the acquisition of fixed assets | Equity participation in the construction of a residential building for employees | ||
Costs for increasing working capital | Social and labor benefits for employees | ||
Repayment of a long-term bank loan | Bonuses | ||
Total costs | Total costs | ||
Surplus funds* | Surplus funds | ||
Lack of funds | Lack of funds | ||
The distribution of net profit characterizes the formation and outflow of cash, as well as the company’s cash balances planned for the beginning of the next year.
It should also be noted that the level of profit in the first year made it possible to deduct an amount to the consumption fund that fully covered the debt wages, and also the possibility of social and bonus payments at the enterprise. In addition, from table. 4.2 shows that the share distribution of net profit is in the ratio of 70% accumulation fund and 30% consumption fund. This structure provides financial and economic needs in the first year of production.
The planned financial plan (balance of income and expenses) presented in the appendix demonstrates the state of the enterprise at the end of the third year of potato production.
Calculation of break-even indicators and financial strength of the activities of AgroPromTechnology LLC allows you to determine the volume of production at which the enterprise neither incurs losses nor makes a profit.
The margin of financial safety is defined as the difference between the planned amount of revenue and the amount of threshold revenue and reflects the extent to which production volume can be reduced without incurring losses.
Break-even point calculation
Indicator | 1 year | 2 year |
Sales volume, thousand rubles. | ||
Conditionally - fixed costs, thousand rubles | ||
AC unit costs products, rub. | ||
Break-even point, i.e. | ||
Margin of financial strength, thousand rubles. |
Thus, the break-even point (profitability threshold) in 1 year of operation is 245.16 tons of products; in year 2 - 229.68 tons (i.e., the production volume must be no less than the indicated values, respectively).
We also observe an increase in the financial safety margin from 35,923.32 thousand rubles. in the first year of operation up to 40,978.99 thousand rubles. - in the second year.
From all of the above, we can conclude that AgroPromTechnologies LLC has good technical, economic and financial indicators.
Technical and economic indicators
Indicators | Unit of measurement | Magnitude |
1. Production volume, including: | ||
Crisp | ||
Starch | ||
2. Sales volume | ||
3. Number of employees, including: | ||
4. Investment costs | ||
5. Annual running costs | thousand rubles/year | |
7. Current costs per 1 ton | ||
8. Pure flow of real money | ||
9. Net present value (15%) | ||
10. Payback period |
The financial strategy of AgroPromTechnology LLC is to accelerate economic growth. Complete financial stabilization is achieved only when the enterprise ensures a stable reduction in the cost of capital used and a constant increase in its market value. This task requires accelerating the pace economic development based on making certain adjustments to the financial strategy of the enterprise. This task is solved by investing primarily the enterprise’s own funds.
When carrying out financial - economic assessment of the project, the following basic assumptions were used: the life of the project is at least 10 years with the duration of each planning interval being 1 year;
The base period was the first year of operation of the enterprise.
The planned sources of income from potato processing production are: sale of crispy potatoes; sale of starch; sale of pulp.
It is assumed that:
The amount of planned sales income
The following conditions are included in the calculation of income from potato processing: operating time - 60 shifts per month, 1 shift is equal to 12 hours, equipment load - 11 hours per shift.
Current costs for the production of potato products by year will amount to 32,602,12 thousand rubles.
Operating cost estimate
When generating revenue within the framework of the project under consideration, an approach was used in which the permissible cost of one package of products was determined, which, given the planned value of annual operating costs and the number of sales, will allow this enterprise to reach a break-even level when sales of potato products reach 245.16 tons per year and conduct its business. activities with a margin of “financial strength” of 35,923.32 thousand rubles.
Thus, based on the accepted amount of annual sales income and the total amount of annual operating costs, net profit from sales will be 12,038.43 thousand rubles.
As noted earlier, to launch a potato processing production process, investments are required both to purchase equipment and to maintain the project from the beginning until production reaches its design capacity.
Conditions and initial parameters of investments in potato processing
Name of indicators | Unit measurements | Meaning of indicators |
|
|---|---|---|---|
Initial conditions: | |||
Total amount of financial resources required | |||
Time until production reaches design capacity from the start of the project | |||
Initial data for calculation: | |||
Volume of potato processing per shift | |||
Output of finished products | |||
Number of work shifts per month | |||
Total number of work shifts per year | |||
Initial production costs: | |||
Equipment (imported) | |||
Delivery, installation, adjustment | |||
Initial working capital | |||
Certification of production and finished products | |||
Unforeseen and other expenses | |||
Motor transport (4 units) | |||
Refrigeration equipment | |||
Profitability indicators
Cash flow
Title of articles | 1 year of work |
|||
1st quarter | 2nd quarter | 3rd quarter | 4th quarter |
|
| 1 option | ||||
1. Inflow of funds, thousand rubles. | ||||
Revenue from sales of products including VAT | ||||
Depreciation | ||||
Inflow, thousand rubles | ||||
2. Outflow of funds, thousand rubles. | ||||
1). Total costs | ||||
2). Investment costs | ||||
3) Income taxes | ||||
Outflow, thousand rubles | ||||
| Option 2 | ||||
Inflow, thousand rubles | ||||
Costs | ||||
2). Investment costs | ||||
3) 15% of income | ||||
Outflow, thousand rubles | ||||
Net flow of real money, thousand rubles. | ||||
Cumulative cash flow, thousand rubles. | ||||
Net present value (15%), thousand rubles. | ||||
The same on an accrual basis, thousand rubles. | ||||
Investment Evaluation Indicators
Indicator | 1 option | Option 2 |
NPV, thousand rubles | ||
8. Risk factors
Since the project under consideration covers several stages, it is advisable to conduct a risk assessment based on them, i.e. according to the preparatory and operational stages.
During the business design process, a list of primary risks was compiled for all stages of the project, for which each risk probability assessment approach was applied, guided by the following rating system:
0 - the risk is considered insignificant;
25 - the risk most likely will not materialize;
50 - nothing definite can be said about the occurrence of the event;
75 - the risk is likely to manifest itself;
100 - a very high probability of risk realization.
The three estimates are combined into an average, which is used in further calculations.
In column 6 of table. Table 8.1 shows priority ratings that reflect the importance of each individual event for the entire project. After determining the probabilities for simple risks, a integral assessment risk in two successive stages: first, a risk assessment was determined for each stage, having previously calculated the risks for substages (compositions), stages of operation - financial-economic, technological, social and environmental. You can then work with the combined risks and give a risk assessment of the entire project based on the risk assessments of individual stages. A weighting procedure was used to obtain an estimate of the pooled risks. The procedure for determining the weight with which each simple risk is included in the overall risk of the project was carried out according to the following rules:
Determining priorities is directly related to the socio-economic situation in the country. Since it is significantly related to non-payments, all risks associated with the settlement system had first priority. Second priority was given to social factors. All other factors received third priority.
The total risk of the project is 49.07 points and can be characterized as average. The preparatory stage and financial and economic factors of functioning have the highest level of risk. The risk of the preparatory stage is associated primarily with possible currency risk and unforeseen costs. A particular danger is posed by unexpected costs, which can reduce the overall profitability of the project. From the results of calculating financial and economic risks it follows that the risk is 59% of overall indicator risk of the project, and the dominant reasons for this are a possible decrease in demand and unforeseen price reductions by competitors, as well as the insolvency of consumers and rising product prices. The level of social risks is 4.48 (9.12%), and the vast majority of them are due to possible difficulties with recruiting personnel and their qualifications.
Simple risk assessment
Simple risks | Approach | Average | Pi priority | Weight Wi | Grade II |
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Preparatory stage | ||||||||
Unforeseen Costs | ||||||||
Currency risk | ||||||||
Late delivery of components | ||||||||
Late preparation of equipment | ||||||||
Contractor dishonesty | ||||||||
Operation |
||||||||
Financial and economic: | ||||||||
Demand volatility | ||||||||
The emergence of an alternative product | ||||||||
Price reduction by competitors | ||||||||
Tax increases | ||||||||
Consumer insolvency | ||||||||
Rising prices for products | ||||||||
Supplier dependency | ||||||||
Lack of working capital | ||||||||
Social: | ||||||||
Difficulties in recruiting qualified labor | ||||||||
Strike threat | ||||||||
Attitude of local authorities | ||||||||
Insufficient wages | ||||||||
Personnel qualifications | ||||||||
Technical: | ||||||||
Instability of product quality | ||||||||
Novelty of technology | ||||||||
Lack of technology reliability | ||||||||
Lack of stocks | ||||||||
Total project risk | ||||||||
The project under consideration does not involve significant technical and environmental risks. Project risk is typically primarily associated with a small number of particularly hazardous factors.
The most significant risks of the project
In addition, two factors can be identified that were not considered in the tables.
Environment, this risk is not observed. There is no threat of extreme natural phenomena (floods, earthquakes, etc.). Also a legal risk. The legal documents of the “company” must be brought into proper order, according to current legislation Russian Federation and registered by the relevant government authorities. In the Charter of the “company”, the types of activities must indicate the provision of various services to the population and enterprises.
The company’s intentions are of great importance in the development of the potato products market in the Ural region; this may also affect the increase in business activity and industrial efficiency. The success of the activities of AgroPromTechnology LLC, as well as others commercial structures, will largely depend on the policies of the central government and local authorities. The existing government, in general, provides a favorable regime for the development of private business and the implementation of investment programs.
The following measures can be recommended as conditions for risk prevention:
Measures to reduce social risks:
Legal risks. Associated with imperfect legislation, unclearly drawn up documents, ambiguous interpretations of legislation, and delays in delivery times by suppliers.
Risk mitigation measures:
Production risks. Associated with the complexity of equipment maintenance, rapidly moving technological progress in the field production technologies, insufficiently high quality of services provided.
Risk mitigation measures:
The younger generation of Russian villages and villages is universally striving for large cities. Such a craving for megacities is quite justified in a number of situations, for example, for getting an education or entering large sports schools. In a word, there are many justified reasons, but the truth and main goal of the majority is getting a job and then starting their own business. It is worth recognizing that cities, especially cities with populations of over a million people, do always require new specialists and there are many options for business there, but it is worth noting two important points.
The first is the presence of fierce competition and a number of bureaucratic and everyday problems, and the second point, about which F.M. Dostoevsky said: “After all, the village feeds the city.” You can live well anywhere, the main thing is to have a profitable and in-demand activity. It's no secret that many city dwellers have their own summer cottages for growing food and raising birds and rabbits, and how many examples of wealthy farmers do we have in our country? But, for example, in the USA, farmers, livestock owners and owners of their own ranches are highly respected people with influence in the highest circles. From the above, the conclusion suggests itself that it is quite possible not to become dependent on the city yourself, but on the contrary - to become its breadwinner and then, albeit to a small extent, but still, the city will already depend on you.
So, let’s consider the option of running your own business – a potato business. Potatoes are in demand on the market all year round by all categories of people. This means that it is one of the staple foods and is simply consumed in huge quantities.
Growing potatoes requires strict adherence to the planned plan. Of course, a lot depends on weather factors, in particular on air temperature and amount of precipitation. The lack of moisture can be compensated for by watering, but it is difficult to deal with excess sunlight. There is only one way here - frequently spraying the leaves with water, and an irrigation system will be a good helper for this. The cost of such an installation may not be high, but it provides many advantages. The moistening process will be fully automated, which will save a lot of time and allow you to regulate the degree of soil saturation with water, and also save the foliage from drying out.
A lack of sun is unlikely to ruin the crop, but ripened potatoes will be small and of poor presentation, and they may not survive the winter. There is absolutely nothing that can be done here, although such cases are extremely rare. Try to analyze the long-term weather forecast before landing, so you will be aware of weather changes in advance. As practice shows, the Hydrometeorological Center provides reliable data regarding the coming season, and the average daily data is quite accurate for the entire period of the season. Make sure in advance that you have pest control equipment and all technical equipment.
During the ripening process, you may need to monitor the vegetables to protect them from encroachers; this point should also be taken into account. Many people plant onions and carrots between rows of potatoes; these vegetables fight a number of pests and help the soil, and they are also easy to care for and will provide material benefits. There will be no problems with their sale, since potato resellers, as a rule, deal in both onions and carrots.
The use of professional agricultural machinery significantly increases labor productivity
The potato growing business will require all your energy and full dedication, you should not be mistaken and think that everything will be easy. But still, this is a very promising business.
It is advisable to take care of the sales market in advance, then you will save time and nerves, and the goods will not deteriorate. The average cost of selling to wholesalers is 20 rubles, and from one hundred square meters it turns out to be about 250 kg, further calculations are not difficult to make. Growing potatoes as a business can be a fairly profitable activity and absolutely legal, which you will agree is important. But of course it is necessary to sow not just one hundred square meters of land, but entire fields.
If you take care of transport for delivery, this will reduce your costs significantly and help organize the sale of goods on time and at competitive prices. Growing potatoes is a seasonal business, but after earning money, you can find something to do for the winter.
Potatoes have always been and will continue to be in high demand, which means that a business based on the cultivation of this particular crop will be profitable. We will tell you how to start it correctly in the article.
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IN modern world For such a business, only two organizational and legal forms of organization are defined:
A businessman who decides to seriously take up the cultivation of this crop must not only register the enterprise. He needs to provide the enterprise with the following necessary resources.
Of course, in order to plant potatoes, you need to know not only how to do it, but also where to plant them.
To organize your own agricultural business, an entrepreneur can use the following methods:
The key to success created business and a large harvest lies primarily in the correct choice of planting material. Planting potatoes must certainly be of high quality, then the entrepreneur will be able not only to grow a good harvest and seed material for the next planting.
You can buy tubers using the following sales points:
The purchased variety can be planted for several years until the variety degenerates. The purchased tubers must be the same size and shape.
Hilling up potatoes If we consider an agricultural company growing potatoes in non-industrial quantities, but only for personal use and sale on the market, on a plot of about 0.3 hectares, then the following set of machinery and equipment will be required:
The cost of purchasing equipment will be about 60 thousand rubles.
Without soil fertilization, it is impossible to grow a good crop with sufficient tuber size and heavy weight.
Fertile black soil is not present on every piece of land, so farmers fertilize the bud with the following substances:
The purchase of such a set of fertilizers will cost about 17 rubles per 1 square meter of land.
The main enemy of potatoes is the Colorado potato beetle, but farmers do not recommend spraying the bushes ahead of time, due to the effect of chemicals on the growth of the bushes. But, despite the fact that you cannot spray, you will have to constantly check the bushes for pests. An entrepreneur will spend about 2.5 thousand rubles for every 30 acres to purchase products to combat this pest.
Growing potatoes is an agricultural business with a high return on investment. The time it takes for a crop to go through a full growing cycle is only 4 months.
The growing process itself consists of the following main stages:
A business based on growing potatoes requires strict adherence to the cultivation algorithm. The volume of the harvest certainly depends on various factors, including air temperature and natural precipitation, which are independent of the farmer. If the farmer can compensate for the lack of moisture, then excess sunlight simply cannot be excluded. A lack of sunlight, of course, will not kill the crop, but will make it small and deprive it of its marketable appearance.
Choose a site for planting potatoes taking into account such unregulated factors.
Before planting, which occurs in Russian latitudes in May, the soil is loosened and all weeds are removed. Similar processing is done using a shovel or using a plow with a tractor as draft force, depending on the size of the area.
Planting tubers must be greened by placing them in a bright place for 20 days. This method improves the ability of sowing to germinate, and also protects the material from rotting without growth.
After germination, the tubers are transferred to a dark place for 1–3 days at a high level of humidity and a positive air temperature of no more than 3 degrees.
Before planting, green tubers must be removed from a dark room and allowed to germinate. The size of the sprout must be more than 10 mm before planting.
If large tubers are planted, then they must be cut into pieces, each of which will have two eyes or more. The cutting is made right before germination begins, and the cut areas should be sprinkled with ash, which will prevent contamination of the planting material.
In Russia, in its central zone, planting begins in May, but in warmer regions this process may occur in March or April. In northern latitudes, tubers are planted in June. Before planting, the soil must warm up and its temperature must reach 8 degrees.
I plant the tubers to a depth of 10-15 cm. The distance between the bushes should be at least 10 cm, the gap between the rows should be about 0.8-1 m.
Care procedures include the following:
To sell potatoes, you can use one of the following methods:
If the farmer has a fairly large plot, then he should take care of the sales markets in advance by contacting wholesalers and discussing the terms of cooperation with them. After entering into such agreements, the farmer devotes himself to cultivation without worrying about marketing problems.
Starting this type of growing business involves some material investments, which will go to:
Thus, the total starting costs will be 3.5 thousand dollars. With high-quality planting, proper care and flowering of the crop, a farmer can get about 20 tons of potatoes, which will cost 5 thousand dollars, and maybe even more.
The advantages of this type of farming include:
This type of activity also has its disadvantages:
