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By Nathan Fisher,2014-08-19 17:44
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    Deep Processing of Hot Pepper Series Products

Contents of the Cooperative Project

    A.Brief Account of the Project

    1.Name of the Project: Deep Processing of Hot Pepper Series Products 2.Total Investment: 19,218,200 RMB

    3.Chinese Party: Chinese Party supplies land, planting base, technology, workers and facility constructions which holds 20% of the total investment.

    4.Foreign Party: Foreign party provides partial market for the product.Foreign investment will be 80%. Exclusive investment will also be OK.

    5.Technology & Equipments to be Introduced:

    We'll give first place to the domestic made equipments. The twocooperative parties will decide the exact details together.

    B.Selection of Factory Location and Basis

    1.Natural Environment

    The project location Ma Youying is in the west of Liaoning Province. The annual sunshine time reaches 2800 hours and effective accumulating temperature is 3520?C. Temperature difference between day and night is big, rainfall is moderate

    and the soil has high content of potassium which is suitable for hot pepper growing. So it is famous for its red colour and pure taste.

    2.Area of Factory Occupation

    Area of Processing Factory: 30,000 m2

    Construction Area: 2090m2

    3.Transportation Condition

    The factory is close to the crossing point of State Highway 101 and305. It is 35 kilometres away from the State Railway and 150 kilometres from Jinzhou Port and 80 kilometres from Chaoyang Airport. Transportation is very convenient.

    4.Communication

    Communication facilities have reached the advanced domestic level. Pre-programmed automatic control telephones and radio communication are clear of obstructions.

5.Storage Capacity

    Some existing storage installations can be used. New capacity will still be needed.

    6.Science & Technology Power

    We have technicians in all circles who can meet the demand of thefactory. We also have sufficient labour power who possess some education level. C.Production Program

    1.Product Name & Scale

    Hot pepper series products will be produced 2000 tons per year. 2.Construction scale & period

    The project is going to build a non-environmental pollution hot pepper planting base of 15,000 mu, a closed comprehensive wholesale hot pepper market and a products processing factory.

    Construction period: 12 months

    3.Resources & Raw Material Supply

    The factory and its environmental area have more than 10 years of hot pepper planting history.

    4.Technological Process

    Wash?Selection?Breaking?Screen?Ingredients Mixing?Vacuum Packing?Quality

    Examining?Storehouse

    5.Measures of Environment Protection

    The main pollution thing of the factory is dust smoke and waste water. The discharge of them is small and it is easy to control by installing dust removing devices. The waste sediment water can be discharged to water land. The sediment can be manufactured into agricultural fertilizer. So environment pollution can not be created.

    6.Employed Technology & Standard

    Shenyang Agriculture University will supply hot pepper processing technology and Tianjin Food Research Institute will provide hot pepper fresh keeping technology. Our state relevent standard will be carried out by the product.

    D.Market Forecast

    1.Technology Standard & Market Developing Tendency

    Hot pepper has always been the favourable condiment and health protection

    food needed by southeast Asia, Japan and Korea. Hot pepper produced here is welcomed by consumers at home and abroad because our unique geographic climate. Demand for it is increasing year by year,

    especially the foreign markets. In 2001, Japan and Korea imported our chili and its processing products which can reach 1000 tons. It has abroad international market.

    2.Competitive Advantage in Domestic & Foreign Markets:

    Our hot pepper has the feature of unadulterated colour, savoury taste, rich nutrition and low cost. It has reliable international market and high reputation. After the operation of the project, it can meet the demand by consumers for big varieties, good quality and non-environmental pollution.

    3.Market Occupying Rate

    Foreign Distribution: 60%

    Domestic Sale: 40%

    The foreign Sale will be increased by 50% in 5 years.

    E.Benefit Evaluation

    1.Formation of Investment

    Total Investment: 19,218,200 RMB

    Among them:

    Fixed Assets: 11,917,900 RMB

    Circulating Funds: 7,300,300 RMB

    2.Cost Analysis:

    Eestimation of the Cost: 12,773,800 RMB

    3.Profit Distribution Suggestion

    The profit will be divided by the portion of total investment. 4.Tax:

    Annual Tax: 2,165,000 RMB

    5. Analysis of Economic Benefit

    Investment Profit: 97.15%

    Investment Profits Tax Rate: 108.42%

    Sale Profit Margin Before Tax: 51%

    Sale Profit Margin After Tax: 34.2%

    Investment Repay Period: 4. 96 years ( including 1 year

forconstruction )

    6.Analysis of Profit and Loss Balance

    Balance point of profit and loss is 25.71%. The main factor whichaffects the balance of profit and loss is selling price of the product.

    Introduction of Chinese Company

    A.Present Situation of the Enterprise

    1.Name of the Enterprise: Beipiao

    Supply & Marketing Cooperative

    2.Founding Time: 1948

    3.Ownership: Collective

    4.Employees: 3600

    5.Technical Power:

    Professional Technicians: 320

    Medium & Senior Technicians: 64

    6.Business Scope: local livestock products, chemical fertilizer, agricuetural means of production and agricultural products

    7.Address:

    8.Owner: Mr. Wang Shuting

    9.Existing Equipment:

    It has 15 subsidiary companies in the city and 30 basic supply andmarketing cooperatives in the countryside.

    10.Fixed Assets: 100 million RMB

    B.Introduction of the Main Products:

    The main products are raw cotton and dehydrated vegetables. Statestandard is employed to control the products. The cotton is sold inChina and dehydrated vegetables are exported to korea and Japan with aproduction of 300 tons per year. Conclusion

    After demonstration and analysis, the interior profit rate is high, investment return period is short. The project has some certain abilityto resist risk. It is feasible in the view of economy.

    Contacting Means

    Contact Unit: Beipiao Foreign Trade & Economic Cooperation Bureau Contact Person: Mr. Li Guofu

    Tel: 0421-5813661

Fax: 0421-5811006

E-mail: Liguofu-2000@163.com

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