business plan
TRANSCRIPT
Business Planning
For
SS Oyster House Bangladesh
A Sustainable Business Plan
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Executive SummaryOysters are naturally complete and are often referred to as “milk of the ocean”. Only
one of its kind corporal and organic conditions at Cox’s Bazar coast, southeastern
Bangladesh, is accountable for an accretion of high amounts of Oyster spat. Direct
settlement of the spat to suspended cultch in the water column was compared by
using locally available selected materials (e.g. plastic sheet, pottery, windowpane
shell and bamboo) at Gorakghata of Moheshkhali channel and Chufaldhandi canal of
Cox’s Bazar coast. Coastal poor community was involved to prepare the cultch by using locally
available selected materials such as plastic sheet, pottery, windowpane shell and bamboo. Ten
pieces of plastic sheets/pottery/windowpane shell were connected with ropes maintaining 10 cm
inter-distance between two subsequent units to prepare a cultch frame of about 1 m long.
The prepared cultch frames were installed at different depths of two selected sites for
spat collection so as not to interfere with the day-to-day operations of the fishermen,
providing unrestricted boat access to coastal waterways for their ongoing navigational
activities. Environmental variables such as water temperature, salinity, transparency,
dissolve oxygen and pH were measured fortnightly from each culture sites. Bamboos of
various sizes were used for raft construction. Plastic drums of 200 liter, one on each corner, were
used as floats to keep the raft afloat. Iron anchor was attached to the raft. Cultch, rope and tray
were hung from the raft for culture in both sites.
The majority of seafood wholesalers and retailers that tasted the oysters have responded
positively; several immediately placed orders. The team also introduced by watermen to
one of the largest seafood wholesalers in Chittagong. After tasting the oysters, the
wholesaler offered to purchase, at a premium price, the entire amount of oysters currently
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being grown. A cost-effective distribution system was identified to transport the harvest to
Jessup. They have also ordered more seed oysters and supplies to construct additional culture
equipment so as to continue and expand their existing operation Material costs for windowpane
shell, pottery, bamboo (10 poles), and plastic sheet frame were Taka 17, 57, 55 and 72,
respectively where average spat density was found 0.34, 0.16, 0.02 and 0.14/cm2 of oyster
and 0.69, 0.33, 0.03 and 0.27/cm2 of green mussel in the said cultch. Cultch-wise monthly
average growth rates were measured as 0.6-09, 0.6-0.8, 0.5-0.9 and 0.5-0.9 cm for oyster,
and 0.4-0.9, 0.4-0.7, 0.3-0.6 and 0.3-0.9 cm for green mussel. The economic analysis,
spat density and monthly average growth rate indicate that windowpane shell is the most
viable spat settling material for the coastal poor communities.
Total materials costs for 1 raft with preparation and installation were Tk. 1,365 where total
production was 115 kg oyster and 92 kg green mussel. Muscle weight was 18 kg oyster (16% of
body weight) and 38 kg green mussel (41% of body weight) with selling price Tk. 100 and Tk.
60 respectively in Rakhain community. Shell was sold to the lime producers and poultry feed
mills at the rate of Tk. 5/kg for oyster and Tk. 8/kg for green mussel. Total selling price
of meat and shell was Tk. 4,997 and the profit was Tk. 3,632 in 8 months from 1 raft. Small size
wild clams have harvested from the intertidal and subtidal area of Moheshkhali channel and
transplanted to the nearby sandy-muddy substrate of about 2,000m2 area, presumable
better suited to growth or for easier harvesting. Total harvesting of clam was 203 kg, where
muscle weight was 21 kg (11% of body weight) and total selling price was Tk. 1,152.
The XYZ Company provides the first evidence that external cultch materials
deployed at Moheshkhali channel and Chufaldhandi canal are economically and
environmentally viable for spat collection. This can be a new horizon for the coastal
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landless poor and PL (Penaeus monodon post larvae) collectors to discourage their
destructive present occupation and grab Oyster culture as an important alternative
income generating options. The prospects for coastal Oyster culture in Bangladesh
depend on the integrated management approach of the farmers, researchers, supporting
institutions, development agencies, private entrepreneurs and the end-users.
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Company Overview
Mission Statement
To establish a complete Oyster export house by adding latest technological equipment in
Bangladesh within 2 years of inauguration of Oyster export business and also try be a market
leader in Chittagong, Bangladesh.
Vision Statement
To be a market leader in domestic Oyster supply and modest supplier in abroad market house so
that it can succeed in an open, competitive global environment in Bangladesh.
Key Products Services
Constituent Based on weight of fresh meats (%) Based on weight of completely dry meats (%)
Water 76.10 0.00Solids 23.90 100.00
Protein 10.12 42.43
Glycogen 6.14 25.75
Fat 1.91 7.98
Mineral matter 1.82 7.60
Appearance, saltiness and fatness are the main factors determining Oyster meat quality.
By fatness we mean plumpness because Oysters never get fat in the greasy sense. They
do not store their reserve food in the form of oils (Table 1) but they store in the form of animal
starch (glycogen).
Table # 1 Composition of oyster meats (after Pease, 1932)
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Species Length (CM)
Shell-on
Wt (g)
MeatWt(g)
MeatWt(%)
Av.Meat
Wt (g)
Use ofmeat
Use ofshell
Price(Tk.)/Kg
Meat Shell
Oyster 4.9 86 11.95 13.9 16 TribalpeopleUse asFeed
Lime &PoultryFeed
100 -
120
3-45.6 94 16.54 17.65.1 87 13.49 15.55.8 97 16.30 16.85.3 88 14.26 16.2
The Oyster species (Oyster, Green mussel and Clam) can be distributed both in domestic and
international market as live condition. Oyster meat usually consumed as semi-boil and curry.
The shell has been used for lime preparation and Oyster feed industry.
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Strategic Goals and Objectives
The Oyster export project would be address the following strategic direction of the company-
Exhibit corporate responsibility -
Increase Production Value
Create Employment Opportunities
Widen valued business partners base
Creating sustainable stakeholders
Add value to the company operations
Attribute in reputation management
Increase economic activities
Raise foreign exchange reserve base
Open new Market area
Value addition
Set-up a grading house, mini cold storage, good transportation facilities including refer
van to maintain cooling system.
With the gain of expertise and experience and market development, in course of time
develop Agro Processing infrastructures and widen the horizon of the business over to
process Oyster.
Import latest technological equipment.
In addition, this project will consolidate the reputation being socially responsible and make profit
for the stakeholders by efficient use of resources.
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Management Team
Partners of the XYZ Oyster Supplier Limited: This project started or initiated by three partners.
To start with, the XYZ Limited with core management team that will oversee the entire
company and divided in different sub-team according to activity.
We will create an advisory board to assist the waterman as they expand their operations.
Presently, there has not been any formal structure created for the oyster project.
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Production Director
Managing Director
Marketing Director
Sales (Domestic & Foreign Market)
Purchase Officer
Promotion Officer
Production Manager
Store Manager
Finance & A/C Officer
Accounts Officer
Finance Officer
Security Dept.
Name of the post No. Work place
Marketing Director 1 HO
Accounts & Finance Director 1 HO
Production Director 1 HO
Project manager 1 HO
Program Officer 1 Field
Accountant 1 HO
Field supervisor 2 Field
Field co-supervisor 5 Field
Grading supervisor 2 Field
Skilled Labor 4 Field
Un-skilled Labor 8 Field
Night Guard 2 Field
Driver 2 HO/Field
Others 5 Field
To start with the project a small team comprising the following personnel may be considered:
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Industry Overview and AnalysisSpat collection (seed/larvae)
Industry Overview and Analysis
Spat collection (seed/larvae)
Oysters’ larvae attach to many different materials—
Shells, stones, brush, leather, iron, glass, grass, etc.
But the surface must be firm, smooth and reasonably
Clean. In most places silt and slime (tiny plants) create
Shortages of clean surfaces for spat fall. Consequently,
Under natural conditions most ready-to-settle larvae
Die because they fail to find setting places. Reducing
this heavy loss of mature larvae is one of the Oysters
Farmer’s chief ways of increasing production. They do
This by providing clean materials at exactly the right
Time for larvae to attach to and survive. This is called
spat collection and the materials supplied are called spat collectors or cultch. Cultch was
prepared manually by using locally available materials such as plastic sheet, pottery, kort
al (window pane shell, Placuna placenta) bamboo and rope.
Oyster Culture Fact Sheets
Parts for constructing a 10’ X 26” modified Taylor float
Three 10’ sections of 4” thin-wall.
Four 4” PVC pipe elbows.
PVC primer and cement (Cut two 33” sections from the third 4” PVC pipe, to form the end
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pieces. Prime, cement and connect the four sections (two 10’ and two 33” pipes) with PVC
elbows.
Polyethylene culture bags. Two fine mesh (5-mm) spat bags, three small mesh (1/8”) bags,
five medium mesh (3/16”) bags, and six large-mesh (3/4”) grow out bags per float (@ $3.70
ea. Local source: East field Farms.
24 21” nylon cable ties (four per culture bag, to attach to float).
Cable ties or coated wire to close each end of the bags Floats can be tied to a dock or
tethered at both ends to 3” x 3” or 4” x 4” stakes driven into the sediment.
How many oysters will each float support: Each grow out bag holds ~250 fully grown
oysters? Each float holds six grow out bags, or 1,500 oysters. Seed oysters (5-8 mm) go into
spat bags, 500 to 1,000 per bag. In this area, oysters grow about 1/2” a month during the
growing season. Example: to grow 15,000 oysters, start by putting 750 seed oysters into
each of 20 fine-mesh spat bags, which can fit on four floats. Grade oysters and put into
increasingly larger-mesh bags as they grow. Once sufficiently large (about 1” long) the
oysters can go into 3/4” grow out bags—eventually 60 bags on 10 floats.
Industry Overview and Analysis
The project will create through a two-part of program that involved technical workshops
and demonstration projects, followed by marketing assistance and extension support. The
project team will decide to start small, with one workshop, and then expand the project
depending on the watermen's interest.
Team participants come from natural resource management agencies, academia, and non-
profit and for-profit organizations involved in sustainable aquaculture and agriculture
development, pollution prevention, and the food industry.
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Oyster culture is a very new inception in supplementary food in Bangladesh though fast
world and other Asian countries are habituated to take Oyster as a supplementary food.
Oyster business is a very potential business in Bangladesh. It has a great potentiality to
export Oyster meat to the abroad country after meeting domestic demand.
Experts gave overviews of topics ranging from nursery and grow-out techniques to
marketing and government regulations, followed by equipment demonstrations.
Once people will cope up with its taste then people will buy it frequently.
Government is giving emphasis on Oyster business, which can deal with aqua based
business.
This business is fully reliance with natural resources especially in long coastal area in
Bangladesh.
If Oyster meat processing plant technology will imported by the private entrepreneurs
then we can export Oyster meat in full-pledged manner within short time to the abroad
country.
NGOs are giving micro credit to the rural women to open up a Oyster business. By doing
so people will feel encouragement coming up in this sector.
A survey has conducted by university researcher and find that every Oyster house can
collect plenty of Oyster from coastal resources which can meet local demand and as
people of Bangladesh is not fully habituated to take Oyster as a food but it is evident that
Oyster is as like shrimp which can take by Bangladeshi Muslim without having further
thought regarding the questions of Halal.
Funding for the project will come from private funding organization like Banks, Donors
and government.
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Foreign funding organization also encourages doing the farming and donors’ intensions
are to provide us latest technology and other logistic support to the farmers directly as
ATDP-II is doing so at present.
It is easy to operate a Oyster house because it is fully based on nature and there has no
manufacturing cost and other expenses are very low.
Once Bangladeshi people are aware about the Oyster meat then it is very hard to meet
local demand instead of international demand.
Oyster processing is very easy rather than other alive products in the world.
The tribal is accepting Oyster meat as a habitual food item and tribal in our country is
only approximately 5%. So there is lot of potentiality to get the whole 14 crores market.
Oyster contains protein, lipids, carbohydrates, calcium, iron, copper, zinc, phosphorus
and vitamin A B C D and E in a healthy balance.
Technology will come through fast world and some Asian countries that are already
habituated with this oyster culture and people also frequently take oyster meat as a food.
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Operational Plan
Products Description
Oyster can be sold as appetizers in oysters restaurants and seafood markets, the oysters must
attain a Size of 2-1/2” to 3-1/2” and larger. Oysters not reaching this size can sometimes be sold
as “shooters” or “cocktail oysters” for a discounted price. The key to selling the oysters,
according to the chefs, buyers and established with whom we spoke, rests on quality,
consistency, and cleanliness. The product will need have an appealing salty flavor and be
available almost year-round.
Product Service Overview
Development of existing and potential market
Train farmers to adopt appropriate technologies for quantity production
Promote commercialization of Oyster businesses
Appropriate structure for Oyster business
Value addition in Oyster business
Hire processing technology from abroad
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Project expected to commence form October 2004 and year wise implementation phases of the
project are as follows:
First yearAfter getting financial and technological help, the project will start its operation
in full-pledged manner in the starting year.
Second year Expand the project
Third year Stabilize and expansion stage
Fourth year En-cashing and Expansion stage
Fifth year Profit maximization and diversification
The first year activity details are:
Decision and selection of personnel
Arrangement of funds
Set-up field office
Commence production
Inspection, monitoring and supervision in all levels of production
Contract with the buyers like bulking customer, liming producer etc.
Start Harvesting and processing
Ar Market follow-up and customers servicerange appropriate van for inland transportation
and other logistic supports
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Facilities
The followings may be considered for selection of the production area:
Suitable Location
Transport and logistic support
Availability of raw materials
Van, cold room, pick-up, processing room etc.
Electricity
Technological support
Communication
Teknaf, Cox’s Bazar, Ramu, Bagerhat, Patuakhali and others coastal areas are potential location
for harvesting quality Oyster production area. Considering above parameters and availability
XYZ Oyster Supplier Limited will has four collections center and then transport it to main
processing center near Dhaka or Chittagong.
Production/Manufacturing Process
Oyster Production
The goal is a one-season (May-November) grow-out to market size, and then, if the supply is
sufficient, up to a 12-month market, selling oysters off as they reach a desirable size (or smaller
size, if enough test positive for Dermo). However, there is some concern about being able to sell
oysters during the summer, because reduced meat quality due to spawning, and high bacteria
counts. To reassure customers, some do not sell oysters during the hottest months of the year. We
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will adapt to supply and ensure product availability year-round. This may allow capitalizing on
the wild harvest closures and summer tourist booms by selling to these ready markets at a
premium. Malfunction in production may be encountered during extremely cold weather, when it
is difficult to work outside with oysters. Heavy winter can prevent access to oyster floats or
regular boat shipments coastal area to the mainland. Restaurant chefs often expect year-round
availability. They dislike surprises and don't like to put an item on the menu if they can't have the
product all the time. On the other hand, many if not most high-end seafood restaurants and
seafood markets in this area, especially those that change their menus daily depending on what’s
fresh and available, are accustomed to seasonal supplies.
Oyster Growth Cycle
April-May: Brood oysters spawn in hatchery
Mid-late May: Seed oysters grow to 5-8 mm, large enough to put into culture apparatus
November: Most oysters reach market size (rather than in Spring)
Starting with seed oysters late in one season may result in a greater percentage attaining
market size by the end of the following season.
Here the all step-by-step process that are as follows: -
1. Supply-demand viability analysis
2. Selecting harvesting place & Start harvesting
3. Process Oyster meat and Oyster shell
4. Buyer searching and signing the agreement in domestic and international market
5. Sell-out mature meat to the targeted customer
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6. Oyster meat processing for export
7. Preserving meat through cold storage
8. Shipment
9. Customers services
Research and Development
XYZ Oyster Supplier Limited will have continuous research and development system to do the
business on the following aspects:
Constant supply is prime consideration for entering to the upstream export market
TQM implication in production or harvesting and procurement place.
Every stage of its processing should be caring by the producer
Harvesting and post harvesting caring
Processing, cooling and proper transporting
Proper shipment and giving customer services to the international buyer.
At the airport, random check of packages to ensure buyers specification and quality.
Human Resource Plan
Estimates for the number of watermen needed on a part-time basis for the project run about
60,000 oysters per waterman per season (considerably more if full-time). Work is done in
batches and takes approximately five days to grade, clean and maintain the operation every
month during the growing season. Because of their excited schedules, the watermen are
contemplating hiring temporary part-time help for harvesting and maintenance. Though this
project has enough capable persons to harvest live Oyster meat, searching buyers and conducting
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marketing in the potential and existing arena. One of our directors is fully experienced in this
Oyster sector over 7 years. On that period of time, he has conducted lot of seminars in
Bangladesh and international arena like Thailand, Vietnam, India, Myanmar and Singapore.
However, we have capable work force but we have a plan to give proper training towards the
normal employee which is treated as unskilled employee and other field worker including
security, driver, etc so that they can also caring regarding our project’s products.
Market Analysis Overview
Potential Customers
Domestic market: Tribal people consume Oyster meat, poultry feed mill owners and lime
producers consume shell). In the other hand, all the conscious people in Bangladesh. Potential
customers: All Muslims, Hindus, Christian, Buddhist, Chinese/Thai restaurants, 3 star hotels, fast
food shops, chips, etc.)
International Market: The potential international market lies in Asian countries like Thailand,
Singapore, Myanmar, Vietnam, and China etc.
Global Competition
The majority of oyster products imported into the U.S. and other European countries are from
Korea and Canada. The Korean products are canned, smoked and shucked oysters, which pose
no competition to U.S. half-shell producers. Canadian oyster are producing an excellent halfshell
product. They cater mostly to New England cities, although Canadian oysters are now showing
up in markets and restaurants in the Washington-Baltimore area. As raw bars and restaurants
continue to build their diverse offerings for oyster connoisseurs. However, Asian countries are
now coming up to do the culture and they are successful to do so. As Bangladesh has longest
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coastal areas in the world, we have a lot of potentials to do its culture through naturally or
hatchery based culture. We have cheapest manpower that can able to minimize the cost and
effective enough to join global competition.
Size and Growth of Market
The product has tremendous nutrition value and it can be supplementary and staple food for us.
So 14 crores peoples could be Oyster’s meet consumer after having good understanding about
the products. Besides the tribal peoples (about 5% of the total population) are presently
consuming the Oyster meet. Muslim has no obligation to take as a food because it is like a
shrimp, which is now, settle down as a complete food.
Competitor Analysis
The exceptional quality of the oysters is a result of good husbandry, good water quality, good
water circulation, abundant food organisms and relatively high salinity (20-21 ppt). These
attributes impart an appealing flavor that sets them apart from some of the other oysters grown
by competitors in different countries. The restaurants, wholesalers and seafood buyers that
sampled oysters were impressed with the surface, consistency and taste. Many requests will be
placed orders prior to availability. The quality oysters and consumer similarity for local products
are enough to capture a local market niche. By including the story behind the oysters and the
attempt to create new economic opportunities for the projects and watermen and restore natural
oyster beds, the project can create an image and brand recognition that will give them an
additional advantage over their competitors. This Oyster culture is new for Bangladeshi people
and they are not habituated with this meat of Oyster. But is has good food value. During 1970s
shrimp farming has started in the coastal zone of Bangladesh, in 1990s it has flourished in full
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pleasured throughout the coast i.e. from Taknaf to Satkhira. Crab has started in the middle of
1990s and now in full operational stage throughout the coast. Similarly Oyster has started at the
beginning of 2000 and it will extend by 2008-2010. At that time, the culture will be extended in
full pleasured manner, commercialize, both domestic and international market demand will
increase. As a result public, private, NGOs and donors will be more interested to set up this
industry.
SWOT Analysis
SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis is a standard tool used by
economists and business analysis to assess the status and potential of an activity, enterprise or
sector prior to developing a plan for further development. It is subjective but structural and forms
a useful summary and framework for discussion and the exchange of ideas. A very general
SWOT is presented below relating to the Oyster aquaculture in the coastal waters of Bangladesh.
Strengths
Seed naturally abundant
Feed and nutrition not a problem – generally detritus and/or plank tonic feeders
Low input, low waste
Pseudo-faces deposition is relatively local
Mostly non-mobile or attached
Can survive without water
Can withstand temperature extremes
Can adapt to varied salinity
Easy to handle and transport
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Live market
Resistant to some forms of predation
Resistant to some forms of disease
Market value of some species very high
Low investment, low operating costs
Weaknesses
Wild seed supply may be erratic
No hatchery for Oysters’ seed production
Some species are slow growing
High labor requirements associated with harvesting and cleaning
High shell weight & Poaching
Opportunities
Potential as waste treatment organism
Potential as component in poly-culture systems
Simple technology, low costs, low inputs
Low risk
Often environmentally begin or positive
Increasing demand in international market
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Threats
Vulnerable to certain diseases
Susceptible to certain kinds of predation (e.g. gastropod, starfish, duck, ray, etc)
Susceptible to fouling
May concentrate toxins and heavy metals
May harbor and concentrate human pathogens such as fecal coliforms, gastroenteritis,
cholera, typhoid and infectious hepatitis A and E
Large areas of fixed stakes, racks, etc may alter sedimentation patterns.
Risk Assessment
The volatility of the half-shell oyster market, Diseases that could damage the oysters as they
grow to maturity, Competition from other suppliers outside the region, The slight risk of other
diseases associated with raw oysters, which could have an adverse effect on a small percentage
of consumers with weakened immune systems. Extensive regulatory programs monitor the
production and marketing of raw shellfish to assure product safety, thereby minimizing this risk.
Here some list of risk assessment: -
Create Buyers - Medium risk
Timely delivery - Low risk
International market situation - Low risk
Natural calamity - Low risk
Export Barrier - Low risk
Build consciousness - Medium risk
Proper harvesting - Low risk
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Competitions - Medium risk
Marketing Plan
Sales and Marketing
The costs of transporting oyster from costal area to city restaurants and other wholesale and retail
markets have been estimated at Tk. 0.90 per oyster Tk. 50 per box/cartoon plus other ferry
charge. If the watermen are able to capture Tk. 10-Tk. 25 $.55 an oyster, this brings them a very
good net profit per oyster. This is the same price they can capture by using a wholesaler.
Wholesalers who will establish a market presence and create brand recognition for their oysters.
This will decrease startup costs, streamline distribution logistics, and immediately establish a
revenue stream. Here some sales and marketing things to do as follow: -
Tribal (Rakhain) from Chittagong Hill Tracts (Rangamati, Bandarban and Khagrachari)
come to buy the Oyster meat.
Find global Oyster market
Instant personal visit, participation in seminars
Explore and expand the market
Contact through phone, e-mail, Internet, fax, surface mail etc.
Develop a website on Oyster
Contact with Lime producers and Oyster feed mill owners to buy Oyster shell.
Chinese/Thai restaurant will collect alive species from the cultured site and preserved
accordingly (2-3 days alive).
Initially we will supply the species to International market like Asian countries (Thailand,
Myanmar, Vietnam, China, Singapore, Japan, Hong Kong) within short time.
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Distribution
Selling to wholesalers requires less time servicing accounts but brings a slightly lower price per
oyster when compared to direct sales. One wholesaler made a verbal offer of modest amount per
oyster and can take up to 30 to 40 (100-count) boxes per week. They generally ask for two
deliveries per week. Using wholesalers decreases the amount of bookkeeping and account
management, and allows growers to focus more time on production and quality control.
However, when prices reach a premium during holidays and times of shortage, they will need to
monitor the market to ensure they are receiving the best price possible from wholesalers. If we
can ensure the continuous supply of Oyster, the consumers will collect by themselves. Other
hand, we will keep option of: -
o Contractual agreement with transport company to supply the Oyster to the relevant
customers
o Our Project will also buy own freezer van
The business in Oyster has not grown as a competitive business in Bangladesh. Still there is a
chance to come up lot of entrepreneurs to harvest the Oyster and supply it to domestic and
international market. Those who are habituated to take Oyster meat they will collect the product
from us their own ways. Though it is true buyers will collect from us except international buyers,
we will have a distribution channel which will make supply smoother for buyer.
Advertising/Product Promotion
The fact in Oyster business is to build consciousness. We need to build consciousness of people
in the context of religion and others factors. Another problem is that we do not have habit to take
it. Firstly we need to develop habit then the demand will automatically mount. We will use all the
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media if possible due to build consciousness and habit of the Bangladeshi people. The
availability of the Oyster should be informed to the potential customers through different media
like newspaper, radio, TV, seminars, e-mail, Website etc.
Customer Service
We will keep a customer service cell, who will provide required information among the domestic
and international customers. Only 24- hours’ customer service can provide constant services to
the buyer. The customer service cell needs to know how to provide information to the buyers and
how to deal with the problems. Their answering should be more calculative and logical.
Financial Management Plan
Assumptions
Taking into consideration of marketing opportunities and available resources-first five years
export plan could be as follows:
Name of Oyster Product Projected Export Volume in MT
Y1 Y2 Y3 Y4 Y5 TOTAL
Oyster Meat 18 19.5 20.5 24.5 30 112.5
Shell 89 98 108 122 140 557
Total 107 117.5 128.5 146.5 170
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Oyster has two products like Oyster meat and Oyster shell. Oyster meat can consume as alive or
frozen. Bangladeshi people especially tribal are like to consume if as alive. But still we need to
work on building consciousness. Our first five years plan as above. Oyster is naturally produced
that is why we need to collect or harvest the things properly and process it scientifically so that it
can get the better price in international market. The investment in very low to procuring Oyster
from the nature.
Value chain of Oyster meat production (Projected)
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SL. NO. Particulars of Cost Costing (Tk.)/Kg.
1 Collecting or Harvesting cost 28.00
2 Grading & Discharge from shell 6.50
3 Packaging, carton 5.00
4 Transport with Cooling Cost 3.75
5 Handling 2.20
6 Local transport 1.00
7 Airfreight & Cooling at BACD(Airport) 5.25
8 Overhead cost 4.10
Total 55.8
Investment portfolio
Investment for the project has been estimated as follows:
Balance sheet (As at...)
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Year Investment amount
First year 3.3
Second year 1.9
Third year 1.7
Fourth year 1.3
Fifth year 0.9
Total 9.1
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Assets First Year
1. Cash
2. Investment portfolio
3. Accounts receivable
4. Inventories
5. Prepaid expenses
6. Others
250
1000
250
150
50
20
Total current Assets 1720
Fixed Assets
1. Land
2. Buildings
3. Equipments
4. Accumulated depreciation
200
100
100
30
Total Fixed Assets 430
Total Assets 2150
Current Liabilities
1. Accounts payable
2. Accumulated expenses payable
3. Others
350
300
80
Total current liabilities 730
Long-term Liabilities
1. Business loans
2. Bank Mortgage
3. Others
500
200
100
Total Long term liabilities 800
Owner’s equity 700
Total Liabilities and equity 2150
Financing Plan (Estimated)
Total investment of Tk. 10 Million including working capital Tk. 3.3 Million
Internal rate of return (IRR) of the projected investment of 24%.
Payback period 3.11 years by calculating discounted present value method at 15%
discount rate.
Net present value Tk. 120 Lacs at 15% discount rate.
Operating profit would be Tk 430, Tk 48314, Tk. 48279, Tk. 530, Tk. 540 Lacs for 1st,
2nd, 3rd, 4th and 5th years respectively.
Estimated financial cost of the Bank @ 14-15%
Break-even expected by end of third year
Contribution margin ratio 0.21
Project will commence from January 2013.
Profitability of Vegetable Export (Projected)
Particulars Market Cost (Tk./ C & F Value (Tk./ Profit (Tk./Kg)Oyster Meat Asian 80 155 75Oyster Meat Europe 85 165 80Oyster Meat Local 80 100 20Oyster Shell Local 1 5 4
Break-even Analysis
In Oyster production, it is generated through nature. So investment is low here, risk is low here
only mentionable thing is that we have to get potential consumer who will consume the product.
In break-even analysis, it is very difficult to say that it will come back within particular time. As
I previously mention that it may me in break even within eight month due to we have very small
investment and we do not have any manufacturing cost except skilled labor cost and other
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overhead cost.
Income Statement
In Bangladesh Oyster business has not done through proper way. However. Previous and present
trend of Oyster export, next five years expected operating profit could be as follows:
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Year Export
Quantity
Expected export Expected operating
Tk. '00 US$ '00First year 18 42666 711
Second year 19.5 48576 810Third year 20.5 55850 931
Fourth year 24.5 56250 938
Fifth year 30 61500 1025
Total 112.5 264842 4415
Sensitivity Analysis
In Oyster export business, the sensitivity analysis matrixes with impact of fluctuations of very sensitive issues indicate the followings:
Concluding Remarks
The project has conducted the market research and interviews conducted for the purpose of this
study, and the financial model developed for the XYZ Oyster House Limited shows that an
Oyster aquaculture operation that caters to the high-end half-shell market in Bangladesh and
international market arena has the potential for becoming a sustainable and profitable business
venture. Oyster is a nature-based resource. Whenever we will start collecting Oyster from coastal
area we should keep alert regarding environment pollution and environment hazard. It is very
authentic way to learn about business plan and credit always goes to ATDPII’s pocket. It is very
easy to show profit, income statement, break-even analysis etc. but hard to implement in
practical field. If all the donors, banks and other funding institutions will come up to help the
Agripreneur then it will be very easy to keep similarity within myth and reality. The above all
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Basis of Sensitivity IRR (%) NPV Tk. '0
00
Pay Back Period Sensitivity
Base Projection 24 1200 2.11 -
10% Increase in Production Cost
6 (780) 2.85 (+) High
figures is projected or estimated figure. May it will deviate in plus or minus way in the practical
field. However, this is the very potential area where entrepreneurs can come and open a nature
based business and fill-up the gap of food scarcity and earn foreign currency as well.
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