How to work on a Sea Food Processing Business Plan?

[IntelligentQ]

Sea Food enterprises are involved in processing and exporting of fresh and frozen seafood products. They produce fresh and high-quality seafood products for both local and international consumption.

These companies have a processing facility and a cold storage plant where they store the fresh catch as well as the processed sea food before they are shipped to different markets. Many companies also have state of the art microbiology laboratory where regular tests are carried out to monitor hygiene during the various stages of processing. A standard plant handles 10 metric tons of fish that is delivered daily by the fishermen. The operations are dependent on small fishing boats operated by local fishing communities or large trawlers that go far away in the sea to bring large hauls.
Sea food companies specialize in collection, processing and distribution of the variety of seafood products caught within the waters of their respective countries coastline. Any venture that needs to be successful should be a full fledged commercial enterprise consisting of a fleet of five to six trawlers with a capacity to process 36 metric tons of fish per day. These vessels shall be equipped with typical commercial fishing gear including weights, nets trawls, dredges, hooks, lines, lift nets, gillnets, entangling nets and traps. The ships shall also be equipped with modern electronics including navigation and communication equipment, fish detection devices and equipment to control and monitor gear. Larger fishing trawlers with navigational equipment (GPS), navigational charts and fish finding Sonar systems, which shall increase the ability of any company to compete for the international market with industrial and foreign vessels.
Lack of freezers can be an issue for sea food processing business. A variety of freezing technologies can be used to accommodate different markets. Ice is useful for fish that will be sold domestically in short timeframes. Deep and flash freezers shall be used to preserve fish in long timeframes for the export market.
The typical shipping vessels are of the size are shown in the table below:

Vessel Type	Deep Sea Fishing Vessel
Classification	CLASS – 1
Gross Tonnage	400 tons
Net Tonnage	272 tons
Length (L.O.A)	42.00m
Length (L.B.P	39.50m
Breadth	08.50m
Depth	04.90m
Ship Speed (M/E1500 rpm)	(08.00 Mile) 11.00 Knots
Trawling Speed (M/E 1200 tpm)	(04.00 Mile) 04.34 Knots
Ship Material	Steel
Year of Build	2015
Freezing RT – 25 C	16 MT / Day
Semi Freezer - 25 C	8 MT / Day
Fresh Water Tank	90,000 Lts.
Fuel Oil Tank	180,000 Lts.
Lub Oil Tank	5,000 Lts.
Crew Size	35 – 40 persons

However, companies starting a sea food processing business face lots of challenges. These include Human capital wherein managers and staff with limited professional knowledge and skills hamper company growth, limited integration of technology and operations and regulatory frameworks. Different countries have different methods of promoting sea food processing industries that include subsidies, building storage facilities, providing equipment etc.
For marketing a business, it will require a mix of all marketing elements, rather than focus on individual elements. The key marketing strategies are:

• Internet Marketing
• Advertising
• Word of Mouth/Loyalty
• Public Relations
• Special Events
• Strategic Alliances
• 
  
• The key advertising goals should be:
• 
  
• To develop a strategy and action plan to recruit new customers utilizing effective and cost efficient tools and processes, including traditional media and electronic methods.
• Developing a strategy and action plan to retain the existing customer base by building loyalty and reducing customer loss by offering value to customers.
• Developing customer revenue strategies through sales of retail items.

Engaging with existing customers on the Social Media channels and request for their feedback about company’s services is another way to promote. Facebook among other social media channels will be used to enhance awareness and sales.
Even in this digital age, Newspaper and magazine advertising are great methods to reach the target audience. They provide more specific targeting options. The company will reach out to industry specific print media to provide the targeted audience information.
Now coming to the financials, if you are working on a fish processing business plan the key cost factors will be fuel/diesel, Crew & labor salaries, Food and provisions, Managements fees, Trip maintenance, Yearly maintenance, Port due, Government license, Security fee, Miscellaneous and professional fees (lawyers & accountants). Depending on the size of the company, these costs will vary. Therefore you need to budget accordingly and maintain the right mix of cashflow and additional capital infusion that may be required to maintain the stability of the business.
Investment options from private investors, banks or any other structured institutions may help you to scale your business. Looking for Government grants in the initial stages may also help to scale-up.

 

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