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
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
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.
Communication facilities have reached the advanced domestic level. Pre-programmed automatic control telephones and radio communication are clear of obstructions.
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.
Wash?Selection?Breaking?Screen?Ingredients Mixing?Vacuum Packing?Quality
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.
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.
1.Formation of Investment
Total Investment: 19,218,200 RMB
Fixed Assets: 11,917,900 RMB
Circulating Funds: 7,300,300 RMB
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
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
Professional Technicians: 320
Medium & Senior Technicians: 64
6.Business Scope: local livestock products, chemical fertilizer, agricuetural means of production and agricultural products
8.Owner: Mr. Wang Shuting
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.
Contact Unit: Beipiao Foreign Trade & Economic Cooperation Bureau Contact Person: Mr. Li Guofu