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Background and justification of the project

Food processing is a sunrise industry of the Bangladeshi economy and has been
identified as thrust area for development. Food processing sector covers a wide range
of items like fruits and vegetables; meat and poultry; milk and milk products,
alcoholic beverages, fisheries, plantation, grains, confectionery, chocolates and cocoa
products, mineral water, high protein foods etc. Based on the basic raw material
usage, food industry can broadly be classified into plant based and animal based.
Meat industry is one of the important segments of food processing industry in
general and livestock/animal based industry in particular. Bangladesh has immense
potential for production, consumption and export of meat due to sufficient resources,
available markets and huge livestock population.
The growth of meat industry is constrained by a number of socio-cultural and
economic factors at different levels of production, processing, handling and
marketing. Meat production is mainly constrained due to lack of productivity
augmenting technologies since the major quantity of meat is being produced in
unorganized slaughterhouses, where resource utilization is very limited.

These

slaughterhouses are old, unhygienic and lack basic facilities like water, light,
ventilation, drainage, waste disposal and effluent treatment which contribute to poor
meat quality and low recovery of various by-products such as hides, blood, bone
meal, internal organs and trimmings. Therefore, technology is the key to
improvement in growth and efficiency in meat processing sector. Empirical
evidences on contribution of technology to growth of meat processing industry in
Bangladesh are scarce. However, the evidences from food industry as a whole
indicate varied contribution of technology to growth of food processing industry
Our project would be produce world class meat in Bangladesh. We will produce safe
wholesome meat and meat products that are of the highest quality and standard
primarily for domestic and later on International consumers. We will ensure meeting
statutory and regulatory requirements and food safety requirements of our
consumers. Accordingly, we meet different benchmark like ISO (HACCP Inclusive),
HALAL and environment license. We will offer Halal, Fresh and Superior Quality
meat of Poultry, Cattle, Goat and Sheep.

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We would be processed halal meat to domestic supplier, will triple its domestic
growth within 5 years after its introduction. The trend will reflect the sharp rise in
demand for processed meat in Bangladesh at a time when consumers have become
increasingly concerned by reports of food adulteration. The management of project
believes it has a huge market for processed halal meat in Bangladesh

Objectives of the project


Development objectives:
Creating job in the rural areas thereby contributing to the reduction of both poverty
and rural-urban migration.
Encouraging the development of supportive infrastructure services such are rural
access roads, electricity, water and telecommunications.
Improving rural incomes by adding value to products thereby saving on transport cost
by delivering high-value/low volume products and creating opportunities for the use
of by-products as inputs in other farm operations such as animal feeds, manure, and
fuel.

Immediate objectives:
1. Eliminate middleman from the supply chain
2. Lower costs relative to key competitors
3. Broader or more attractive product line than rivals
4. Provide superior customer service
5. Recognition as a leader in technology and/or product innovation
6. Achieve higher levels of customer satisfaction than rivals
7. Analyze the market situation and market strategies

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Project implementation and management plan


Current Demand and Supply Analysis of Meat
There is a high demand for meat in the local markets. In the past, the beef price was relatively
low due the ready supply of cattle from neighboring country. But it is a great matter of sorrow
that, the supply has recently been restricted and as a result meat prices have increased
sharply.
Constraints to long term development of the beef industry include lack of improved breeds,
low meat quality, and insurance among smallholders. Actually, the demand for beef is greater
than the supply of beef.
Demand and supply deficit of meat, per person yearly
Product
Meat(kg)

Requirement
43.25

Available
9.12

Deficit
34.13

Source: FAO/APHCA (2008)


Yearly Meat produced in Bangladesh
Product 2006- 2007-08 2008-09 2009-10
07
Meat
10.40 10.40
10.84
12.64
(In
million)
Source: Bangladesh Economic Review 2014

2010-11

2011-12

2012-13

2013-14

12.79

23.32

36.20

30.21

Target Market Analysis


Target market & companys position:
Target market
Age: ALL Ages
Gender: Male & Female
Family Life Cycle: Unmarried, Married
Occupation: All
Social Class: Middle income group-upper income group
Monthly H\H income: Taka 30,000
Number of household: 5.07 million
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Geographical Location: Semi-Urban and Urban


Demographic Profile
Market: Bangladesh-Urban & Semi- urban
Gender: Male & Female
Family life cycle: Unmarried, Married
Occupation: All
Education: Primary and above
Psychographic Profile
Social Class: Middle Class & Upper.

Exposed to Newspaper, Radio, and TV.


Behavioral Profile
occasion: Occasional & Regular
Benefits: Quality Food in affordable price
User status: Potential & Existing
Consumption rate: Average
Readiness stage: Aware and informed
Purchase Habit
Once or Two times in a week

Competitor Analysis
There are many competitors; these are domestic meat retailers like Bengal Meat, Mina Bazar,
Agora, and Prince Bazar and Shopno. These companies are already established in retail
market.
Threat of competitor is comparatively high, because
There are some major competitors in meat retail market like Bengal Meat, Mina

Bazar, Agora, and Shopno.


Customer can easily to switch another Meat shop
we have equally balance of competitor like Family needs and Prince Bazar etc.
The exit barrier is not high because they can easily grow up another chain retailer.

Like departmental shop or grocery shop.

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Location of farm and shop


Farm location: Farm will be established at Gazipur. Initially we plan to build the
farm for 200 cows. It will need approximately 5 acres of land. where plant area
covers 1.5 acres and the rest include animal sheds, by-products shed, office
and staff dormitory.
Shop location: Our first retail shop will be located at Gulshan, Dhaka. We plan to
open its first year of production. After that we establish retail chain shop all the major
city of the country. We will also sale our product through online market such as
website to reach majority customers.

Product strategies
Halal Meat
Bangladesh is the land of majority of Muslims. So, people always consider Halal
foods to eat. With this consideration, we will maintain all the rules and regulations to
slaughter the animals.
Product Differentiation
At the beginning we will only offer raw and primal cut beef and different kind of processed
beef products such as beef minced, beef sausage, beef meat ball, beef fillet slice, beef steak
etc. From second production year we will introduce following products:

Lamb
Mutton

Chicken

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Product Pricing Strategy


Company also considers price level in terms of their quality. Since quality is the
prime, price is little bit higher than from local market.
Descriptions

Price/Kg

Beef with bone

BDT 350

Beef without bone

BDT 480

Meat front leg

BDT 359

Meat back leg

BDT 359

Liver/Koliga

BDT 180

Beef kima

BDT 480

Brisket/Sinah

BDT 359

Placing Strategies
Attractive Packaging:
With the present demanding situation, we will offer products with attractive
packaging. This packaging helped to build a brand image and to carry out from one
place to another place.
Distribution Networks:
We will be distributing our products in different five star hotels like- Sheraton,
Radisson and Pan Pacific Sonargaon, Westin. Also available will be in renowned
Chain Shop in our country.
Production Capacity:
Full production capacity of the farm will be 10 tons per day. we will expand our
production capacity every year.

Promotion
Promotion of the product having all communication and selling activities to persuade future
prospects to buy the product. Promotion decisions include:

lucrative Advertising plan to introduce its different new products


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Both Print and electronic media

Unique Message for different items

Higher sales promotion

Direct marketing

Online advertising such as Facebook, YouTube, Different website etc.

Machinery and Equipment


The machinery and equipment required for producing processed meat are as follow:
Details of item needed
Slaughtering equipment

Quantity
10 set

Weighing device

Cutters and grinders

10

Fridges

Air extractor

20

Truck

Feeder bucket

10

Cutlerys and butcher Tools


Tables, shelves, ropes, chain, tagging
equipment, water pipes, cutting boards,
Packing supplies

5 set
As required

We have to import most of the equipment. The following are some of the machineries
suppliers address for the regarded project:
The Biro Manufacturing Co.
1114 W., Main Street, Lakeside Marblehead - 43440-209, USA
Quirks Australia
102 Briens Road, Northmead, NSW 2152
Qingdao Seize the Future Automobile Sales
Shandong, China

Production Process
The first stage of the meat processing operation is the slaughtering of the cattle, skinning the
carcass, trimming and separating the different parts of the body. Then the meat is sterilized to
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avoid the bacteria that may exist in the meat. The treatment duration for sterilization will
depend on the bacteriological quality of the meat which in turn depends on the nature of the
meat where the presence of high degree of fat in the meat will affect the sterilization process.
Other factors include slaughtering conditions and sanitary conditions after the slaughtering.
Then the meat is cooked in sauce together with other ingredients and canned at the end.
An alternative processing technology that has recently expanded in some rich countries is to
use pasteurization method instead of sterilization of meat. This is because sterilization
processes compromise the retention of compounds that are heat-sensitive in the foods, and
alter the organoleptic characteristics of the raw meat. Vitamins, for example, may be
destroyed by high temperatures and/or their long duration. With the aim of remedying this
problem, a process has been developed in recent years in which prepared foods may be heat
treated at a temperature at which their organoleptic properties are less affected than in
sterilization processes. This alternative, however, is very expensive where it costs more than
double of the technology proposed in this profile.

Disposal of waste products


The greatest liability to a new meat plant is disposal of waste products. Materials such as
waste fat, most bones, blood, and inedible offal represent a significant percentage of the
animals carcass that must be disposed of. These are often picked up by rendering companies
who process them into animal supplements. But our farm located in remote place where no
rendering company nearby. So we have to dispose the byproducts using composite technique.

Training Requirement
Training of key personnel is very essential and shall be conducted in collaboration with the
suppliers of the plant machineries. The training should primarily focus on the livestock
management, production technology and machinery maintenance and trouble shooting. BDT
150,000 will be allocated as training expense.

Project Organogram

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Chief
Executiv
e Officer

Marketin
g
Manager

Livestock
Purchasi
ng
Manager

Quality
Assuranc
e
Manager

Factory
Manager

Productio
n
Executiv
es

Store
Executiv
es

Financial
Manager

Administrati
ve

Manager

Accounta
nt

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Implementation schedule:
It has been estimated that the project will go into full operation within 36 months from the
date of start of construction. Its schedule shown below:
Activity
Sanction of Loan
Site Development start
Completion of Development and start of Civil construction.
Opening of L/C
Completion of Civil works
Machinery shipment
Arrival at port
arrival at Site
Start of Erecting and Installation
Completion of Installation
Commercial production

Time / month
0
1
2-4
0-2
4-16
6-12
14
15
15-16
18
36

Project Beneficiaries
Direct Beneficiaries
Consumers who are buying from us is the direct beneficiaries of this project. Consumer will
receive high quality raw beef and different kind of beef product which is good for health.
Local people who will work on this project can earn good living.

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Project Monitoring and Evaluation


One of the crucial part of the project is Monitoring and Evaluation (M&E) of the project.
Monitoring and Evaluation (M&E) should not costlier than the project itself. Some expert
says should be 10%-15% of the project. Main cost related to Monitoring and Evaluation
(M&E) is data allocating and collecting data.
We will work to integrate an information system needed to effectively manage the beef
supply/value chains created. This system will enable tracking and traceability of all products
flowing through the facility.
We developed following Monitoring and Evaluation (M&E) plan for the project:
Hire Monitoring and Evaluation (M&E) expertise for the firm
Identify the goals and objectives of the project
Understand the customer needs
Identify the data sources and collect data and time to take collect data
Feasible study of collected data
Take measure according to the study

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Budget
Sl.

Particulars

No
.
1

Amount
(in
BDT)

Land
5 Acres
Shop salami

Building and Civil Construction

Plant and Machinery


Cutlerys and butcher Tools
Air Extractor
Fridges
Slaughtering equipment
Feeder bucket
Water boll

Total
Amount
(in BDT)

750,000
2,500,000
3,250,000
6,059,414

150,000
548,640
1,525,000
20,000
5,000
2,000
2,250,640

Furniture & Fixture


8 Table
30 Chair
2 Sofa

32,000
152,500
25,000
209,500

Office Equipment
3 Laptop (Model HP 14AC127TU)
2 Printers (Model Brother HL1110)
1 Scanner (Model Cannon
Lide 120)
2 Calculator
4 Landline phone
1 Photocopier
5 Stapler

1,250
3,000
120,000
400

Vehicles
Truck
Micro Bus (Toyota Hiace-2010)
Car (Toyota Allion-2011)

1,790,000
1,900,000
1,650,000

98,100
9,600
4,400

236,750

5,340,000
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Pre-Production Expenses
Pre-Production Expenses
Cow feeding cost
Employee Salary
Various bill

1,216,000
7,540,000
420,000
9,176,000

Training Cost

Employee Salary
Chief Executive Officer
Marketing Manager
Livestock Purchasing Manager
Quality Assurance Manager
Factory Manager
Financial Manager
Administrative Manager
Store Manager
Production Executives 5 person
Sales Executives 4 person
Accountant
Driver 3 person
Guard 8 person
Labor 6 person

150,000

100,000
50,000
50,000
50,000
50,000
50,000
40,000
40,000
100,000
60,000
25,000
45,000
64,000
30,000
754,000

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12

Survey to identify potential market


and suppliers
Miscellaneous
Total Project Estimate Cost

100,000
90,000
27,616,304

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Conclusion
Bangladesh is a high population density country. But the supply for the meat is really low.
Only few farm sell processed meat but they charge high price which only affordable for high
income level people. To keep that in mind we developing a farm which main idea is to
produce high quality product and serve in an affordable price. And we are introducing direct
sale of processed meat to the consumer which will reduce the middleman in supply chain.

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Reference
1.

Website of Bengal meat, www. Bengalmeat.com

2.

Website of arong dairy, www. arongdairy.com

3.

Website of agora, www. agora.com

4.

Brochures and prospectus of Bengal meat, agora, kazi firm.

5.

Different sample report.

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