Business Plan for Fisheries Processing and Exporting

Fisheries Processing and Export Business PlanTable of Contents 1 INTRODUCTORY PAGE..........................................................................................4 1.1 1.2 1.3 1.4 1.5 2 3 Name of the company....................................................................................4 Name and Addresses of Principals.................................................................4 Nature of Business.........................................................................................4 Statement of Financing Needed.....................................................................4 Statement of Confidentiality of Report..........................................................4 EXECUTIVE SUMMARY..........................................................................................5 INDUSTRY ANALYSIS.............................................................................................6 3.1 Pest Analysis..................................................................................................6 Political....................................................................................................6 Economic.................................................................................................7 Social.......................................................................................................8 Technology..............................................................................................9 3.1.1 3.1.2 3.1.3 3.1.4 4 DESCRIPTION OF VENTURE................................................................................11 4.1 4.2 4.3 4.4 Our Mission..................................................................................................11 Our Business................................................................................................11 Our Product..................................................................................................12 The Entrepreneurs’ Background..................................................................12 Process Flow Chart.......................................................................................15 Machinery and Equipment...........................................................................16 Vehicles.................................................................................................16 Exporting.....................................................................................................16 Technology Utilization..................................................................................18 Flow of orders..............................................................................................18 Signing of a Contract.............................................................................18 Documentation......................................................................................19 Post Shipment Documents.....................................................................20 5 PRODUCTION PLAN.............................................................................................14 5.1 5.2 5.3 5.2.1 6 OPERATIONAL PLAN...........................................................................................17 6.1 6.2 6.2.1 6.2.2 6.2.3 1 |Page Fisheries Processing and Export Business Plan 6.2.4 6.2.5 6.2.6 6.2.7 6.2.8 6.2.9 7 How to Claim Duty Drawbacks..............................................................20 Quoting Prices.......................................................................................21 Signing the Contract..............................................................................21 Terms of Delivery..................................................................................21 Packaging..............................................................................................21 Transport...............................................................................................21 6.2.10 Suppliers................................................................................................21 MARKETING PLAN...............................................................................................22 7.1 7.2 7.3 7.4 8 8.1 8.2 8.3 8.4 8.5 8.6 Pricing Strategy...........................................................................................22 Competitors and Value Addition..................................................................22 Market for exports.......................................................................................22 Distribution..................................................................................................23 Form of Ownership.......................................................................................25 Registration of the Company.......................................................................25 Registration of a Partnership.......................................................................25 Partnership Deed.........................................................................................25 Principal Partners.........................................................................................26 Authority of Principal Partners.....................................................................26 CEO........................................................................................................27 Finance Directors...................................................................................27 Sales/Marketing Director.......................................................................27 Sales Analyst.........................................................................................28 HR Director............................................................................................28 Administrative Assistant........................................................................28 Production & Inventory Control Manager...............................................28 ORGANIZATIONAL PLAN.....................................................................................25 8.6.1 8.6.2 8.6.3 8.6.4 8.6.5 8.6.6 8.6.7 8.7 9 10 9.1 Sources of Hiring Employees.......................................................................29 Competitors.................................................................................................31 FINANCIAL PLAN..............................................................................................32 ASSESSMENT OF RISKS......................................................................................30 10.1 Project Cost..................................................................................................32 10.2 Project Returns............................................................................................32 2 |Page Fisheries Processing and Export Business Plan 10.3 Project Financing.........................................................................................32 10.4 Pro Forma Income Statement......................................................................33 10.5 Pro Forma Cash Flow Statement..................................................................34 10.6 Pro Forma Balance Sheet.............................................................................35 10.7 Breakeven Analysis......................................................................................36 10.8 Sources for Procurement of Finance............................................................37 10.9 Summary of the Salient Terms of Financing................................................37 11 12 EXIT STRATEGY...............................................................................................39 APPENDIX........................................................................................................40 12.1 REGULATIONS..............................................................................................40 12.2 Network for Dealing with Regulations..........................................................42 12.3 Our Products................................................................................................44 12.4 Miscellaneous..............................................................................................45 12.5 Process Flow Chart of a Sea Food Processing..............................................50 12.6 Questionnaire for Customers.......................................................................51 12.7 Questionnaire for Entrepreneur...................................................................52 12.8 Analysis of Questionnaire............................................................................54 12.9 Supplier Evaluation Questionnaire...............................................................58 Supplier Evaluation Questionnaire 3 |Page Fisheries Processing and Export Business Plan 1 INTRODUCTORY PAGE 1.1 Name of the company Alpha Fish Processing and Exports Karachi Fish harbor, Pakistan. 1.2 Name and Addresses of Principals Nabeela Saleh Zahri Quetta, Pakistan. Rabiya Anjum Karachi, Pakistan. Sidra Shahid Karachi, Pakistan. Sugandh Munir Banglani Hyderabad, Karachi. 1.3 Nature of Business Processing and export of fisheries. 1.4 Statement of Financing Needed The total project investment is Rs. 120,521,267 which includes capital cost of Rs. 91,416,722 and working capital of Rs. 29,104,545. It is assumed that the project would be partially equity financed (50%) and partially debt financed (50%). 1.5 Statement of Confidentiality of Report This plan is strictly to be held as the ownership of the four entrepreneurs mentioned above. It is written for the purpose of obtaining finance from banks and investors and all the data contained therein is based on our research. The ideas presented our subject to originality of the entrepreneurs, hence are their ownership and therefore cannot and should not be copied or stolen. 4 |Page Fisheries Processing and Export Business Plan 2 EXECUTIVE SUMMARY 5 |Page and by enforcing restrictions with regards to closed season. In July-May 2002-03 fish and fishery products valued at US $ 117 million were exported from Pakistan.120 km with a broad continental shelf and its Exclusive Economic Zone extends up to 200 n. 6 |Page . Fisheries management is carried out through licensing. etc.1 Pest Analysis 3. closed areas. 1975. Agriculture and Livestock (MINFAL) is the federal agency responsible for fisheries. Pakistan also adheres to the guidelines of the FAO Code of Conduct for Responsible Fisheries. It is located in the northern part of the Arabian Sea and has a coastline of about 1.000 people are employed in ancillary industries. tons. Agriculture and Livestock.1 Political There is no separate ministry for the fishery sector. The Ministry of Food. miles from the coast.60 M.1. MFD promulgated the Exclusive Fishing Zone (Regulation of Fishing) Act. Fishermen Cooperative Society. It provides employment to about 100. The EU market effort is being coordinated by Karachi Fish Harbor Authority. Pakistan is endowed with rich fishery potential. 3. In addition. another 400. Total production from inland and marine waters is approximately 0. For sustainable development and management of marine fisheries resources. Sind government and the Ministry of Food.000 fishing boats in coastal area of Pakistan which operate in shallow coastal waters as well as in offshore areas. Federal Government is responsible for fishery of Exclusive Economic Zone of Pakistan. There are about 16. Marine Fisheries Department. designating environmentally friendly fishing gear and methods.Fisheries Processing and Export Business Plan 3 INDUSTRY ANALYSIS Fishery plays an important role in the national economy. It is also a major source of export earnings. indicating exploitable stocks and species. These fishing boats undertake fishing trips lasting for few hours to about 25 days depending upon type of fishing.000 fishermen directly. 000 metric tons of which about 80% is marine fish. Japan. E. It provides employment to about 400. Belgium. About 30 – 35% of the fish and fishery products are exported to European Union countries.Fisheries Processing and Export Business Plan There are no specific trading policies with regards to exportation. Most of the shrimp catch is frozen and exported to Japan. Malaysia.1.1 Economic 1. Shrimp constitute about 10% of the marine catch. In addition.000 people are employed in ancillary industries. Export of seafood is facing many problems. USA. France etc. its production from natural sources in Pakistan is in stage of decline. UK. however.1. S. most notably the following: • Post harvest losses are high due to handling of fish catch on board and long voyage time. Saudi Arabia. Singapore.2Employment The fisheries sector in Pakistan offers direct employment to thousands of people. There are hundreds of “cowboy” units in Pakistan that work on “so-called contractual” bases and dip the average quality of the catch.000 fish boats operating in Sind zone. Sri Lanka and Singapore are other major importing countries. Fish and fishery products are processed and exported to over 50 countries. China. China.1Production Pakistan is endowed with rich fishery potential. U. • • The storage capacity is only 10. • Congestion at Karachi Fish Harbor.000 tons which is not sufficient to cater the future requirements.1. Pakistan is exporter of raw material or semi processed fish / seafood. U. A. The total fish production of Pakistan is in the order of 500.1. The local farmers also claim that the boats from Taiwan. 7 |Page . 1. a substantial decrease has occurred during 1998-99 which is attributed mainly due to glut in the international market and because of financial crises in the Southeast Asian countries. There are more than 16.000 fishermen directly.1. The demand for shrimps is increasing in the world market whereas. Japan and Korea encroach their waters and use giant fishing nets that result in depletion of fishing stocks for Pakistan. 1. Fish export has showed an increasing trend in the past many years. Korea. another 500. Hong Kong. A. S. 1. 1. Japan.2 Social Fish is a major source of both livelihood and nutrition for millions of the world's poorest people. The latter include the poorest people in coastal rural areas and small island developing states for whom a decrease in fish catch often means an immediate loss in sources of food and calorie intake. A. Korea. U. Pakistan also exports fish meal. S. A. In recent years export of these items has not shown any significant increase because of the increased quantities of fishmeal required by the poultry industry.Fisheries Processing and Export Business Plan 1. S. China. It is exported mostly fresh. The USA. 2004). fish and its products and earns a substantial amount of foreign exchange. for which the main markets are Singapore and the Gulf. etc provides long term loans to Pakistan. An article illustrates that in 2001. more than 48 percent of the world population (close to 3 billion people) obtained 15-25 percent of their proteins from fisheries.3Exports Pakistan exports reasonable quantity of shrimp. Japan and the EU are the main importers.1.1. Malaysia.4Economic Aid Pakistan receives economic aid from several international sources as loans and grants. 8 |Page . Fish and fishery products are processed and exported to over 50 countries. Hong Kong. frozen either as shell-on tails or as peeled and divined.2 million). Pakistan also receives bilateral aid from developed and oil-rich countries. Pakistan is exporter of raw material or semi processed fish / seafood. 1. fish maws and shark fins. Shrimp is the main export item both by weight (about 30 000 t) and by value (approximately US$ 73. Out of the total installed processing capacity less than 40 per cent is being utilized. Sri Lanka and Singapore are other major importing countries.1.1. as well as growing quantities of chilled fish. Asian Development Bank (ADB). About 30 – 35% of the fish and fishery products are exported to European Union countries. Saudi Arabia. and more than 400 million people received more than 50 percent of their proteins from fisheries (FAO. E. The International Monetary Fund (IMF). U. World Bank (WB). food safety Transparent policies. Due to the changing eating habits and depleting natural resources. it is very important to use this resource at a sustainable level. cultural diversity Other stakeholders Cross-sectoral equity. The world market stood at 52 billion US$ in 1997 with Pakistan's share of less than 0.Fisheries Processing and Export Business Plan 1. not made plans to take appropriate action to effectively overcome this problem. The negligence in exploiting marine fisheries resources in Pakistan is highly regrettable. But unfortunately the authorities have not taken any notice and therefore. public deliberation Due to such vital importance of the fisheries sector.2. The findings of an FAO report indicate that during the next 25 years the world population shall be doubled. 9 |Page . world seafood market is termed as mainly 'sellers’ market'.1. societal efficiency Right to food.1Ethics The ethics of fisheries have been summarized it the table shown below: Dimensions of the ethics of fisheries Subject Ecosystem Fish stocks Fisheries Fishers Fishing communities Consumers Politicians Objective Ecosystem well-being Conservation Responsible fisheries. The focus in fishing is shifting from already exploited regions to under-exploited areas because of conservation and environment pressures. freedom and well-being. sustainable development Safety on board. just access Eradication of poverty. the livestock population would shrink and most of the nations will have to depend on oceanic resources to meet bulk of the animal protein demand.33 per cent. g. gillnets.g. commercial and artisanal fishers use different techniques. such as an autopilot and GPS. Artisanal fishers use traditional. hooks and line (e. nets (e. for survival in third-world countries. fish detection devices. Modern trawlers make extensive use of contemporary electronics. purse seine). and equipment to control and monitor gear. and octopus) and edible marine invertebrates. angling and trapping.3 Technology There are many fishing techniques or methods for catching fish. low-tech methods. The term can also be applied to methods for catching other aquatic animals such as mollusks (shellfish. sometimes. Recreational.g. Radar can be used. Mostly. long line and hand line). for example. A commercial fishing enterprise may vary from one man with a small boat with hand-casting nets or a few pot traps. Just which equipment will be installed depends on the size and type of the trawler. including navigation and communication equipment. and also.Fisheries Processing and Export Business Plan 1. Fishing techniques include hand gathering. dredges. to a huge fleet of trawlers processing tons of fish every day. Fish detection devices.1. trawls (e. spear fishing. squid. Recreational fishers fish for pleasure or sport. when pair trawling to keep the correct distance between the two vessels. are used for maneuvering the vessel in harbor and at sea. are used to locate fish. Commercial fishing gear includes weights. beach seine). such as echo sounders and sonar. while commercial fishers fish for profit. as well as devices for communicating with the crew. the same techniques. 10 | P a g e . lift nets. bottom trawl). and as a cultural heritage in other countries.g. Navigational instruments. netting. recreational fishers use angling methods and commercial fishers use netting methods. seine nets (e. Communication instruments range from basic radio devices to maritime distress systems and EPIRBs. entangling nets and traps. pakissan. However. it is evident that despite the issues faced by the fisheries sector in Pakistan.1 Our Mission To be one of the leaders in hygienically processing and exporting fish business in Pakistan. Total production from inland and marine waters is approximately 0.com) In view of the above facts.Fisheries Processing and Export Business Plan 2 DESCRIPTION OF VENTURE The fisheries industry in Pakistan is a major source of export earnings. More than 60 percent of total world fisheries production underwent some form of processing. Poor hygienic condition is one of the biggest problems faced by Pakistan’s fishing industry. Fish and fishery products are processed and exported to over 50 countries.2 Our Business Our business will deal with processing and exporting of various fish types. The conditions surrounding the port are 11 | P a g e . this figure has dropped. fish and fishery products valued at US $ 117 million were exported from Pakistan. In 2002-2003. mainly concerned with complying with international standards. About 30 – 35% of the fish and fishery products are exported to European Union countries. due to several issues. As a highly perishable commodity. miles from the coast. (Source: www. 2. 2. fish has a significant requirement for processing. Pakistan is endowed with rich fishery potential. tons. It is located in the northern part of the Arabian Sea and has a coastline of about 1.120 km with a broad continental shelf and its Exclusive Economic Zone extends upto 200 n. while maintaining high standards of hygiene at all stages of the process.60 M. fish processing and exporting still remains a highly attractive business with great potential. The processed fish will be exported to several countries including European Union countries. while the rest will be exported to other countries. USA. More than 75% of the product will go to EU countries. since they are main importers of fish products. By adopting hygienic and cleaner methods of fish processing and storing. South Korea. Japan and USA. which adds to the unhygienic conditions that fish are exposed to. Japan. China. which comply with international standards.Fisheries Processing and Export Business Plan very dirty. 2. Saudi Arabia. Karachi Harbor currently handles 90% of fish and seafood catch in Pakistan and 95% of fish and seafood exports from Pakistan. Malaysia. The goal of our business is to export hygienically processed fish of “AA and A Grade”. Sewerage water is dumped in these waters and the same water is used to clean the fish. Keeping in view the above facts. Sri Lanka and Singapore. 12 | P a g e . Such unhygienic conditions at harbors and plants pose great risks to our venture as well the industry as a whole. we can exploit the huge opportunity that exists in the fisheries sector. Hong Kong. we intend to provide a healthy product by using technology that assures relatively higher standards of hygiene as against other processing and exporting businesses in Pakistan. The processing units use obsolete machinery. UAE.3 Our Product We aim to begin by processing and exporting mainly the following types of fish: ○ ○ ○ ○ ○ ○ ○ White pomfret Squid Soul fish Rohu Eel Deep sea shrimps Black tiger prawn We plan on renting a fish processing unit on Karachi Fish Harbor. and all of them have had significant exposure to the corporate world. They have recently completed their BBA (Hons). However. Sugandh and Nabeela are majors in Finace. 13 | P a g e . Such set of skills will prove to be beneficial for their venture. while Rabiya and Sidra are marketing majors thus. the diversity in the team in balanced.Fisheries Processing and Export Business Plan 1.1 The Entrepreneurs’ Background The entrepreneurs are namely: • • • • Nabeela Saleh Zahri Rabiya Anjum Sidra Shahid Sugandh Munir Banglani The entrepreneurs are graduates of Institute of Business Administration. these four are planning to implement their business plan which they wrote as part of their Entrepreneurship course during their BBA days. a prestigious and highly reputable business school of Pakistan. The entrepreneurs have sound knowledge of the business owing to their research in the sector which they did when they were constructing their business plan. since interning was a compulsory requirement at IBA. The plant will be upgraded by purchasing and installing high quality machinery and equipment to ensure that the product processing meets international standards. However. the fish will undergo a process which will be partly done by machines and equipment. For consistent availability of fish. A 2 acre plant will be rented in proximity of Karachi harbor to facilitate easy availability and transport of fish from the harbor to the plant. other nontechnical activities will be handled by semiskilled workers. They will comprise of skilled as well as semiskilled workers. The location will provide an added advantage of being near to the raw material supply.Fisheries Processing and Export Business Plan 1 PRODUCTION PLAN A number of steps take place from catching the fish at the harbor to exporting it to international markets. and partly by skilled labor that possess good knowledge about factory processes. we only deal with processing raw fish and exporting the final product of the plant. a contract system with the local fishermen will be maintained. The personnel required in the plant will be hired locally as well. 1.1 Process Flow Chart The process flow chart for the Sea Food Processing Plant is given below 14 | P a g e . Skilled workers will be needed for operating equipment whereas. At the plant. The catch will be bought from fishermen on the Karachi Fish Harbor (KFH). The catch acquired from KFH will be brought to the processing plant. Capacity (2T / 8 Hours) -30 C Quantity 2 2 4 Cold Store . In this process.2 Machinery and Equipment Machines needed in the processing unit along with their capacity are listed below: Machinery/ Specifications Flake Ice Machine. 1. Plastics and cartons are be used for fish that is to be exported whereas. we will require high quality material of plastics and cartons for packaging fish.Fisheries Processing and Export Business Plan (Source: SMEDA Seafood Processing Plant Report) Blast freezing is the most efficient and effective methods of freezing fish. bags are employed for local supply. Hence. Frozen shrimps will be packed into cartons and weight will range from 2. high air flow is given to freeze the fish. Packaging is done in several methods such as plastics. cartons and bags. Capacity ( 250 T . Capacity (25 T / 24 Hours) Storage Bin. Capacity (12 Tons) Blast Freezers . The fish categories will also be packaged in different forms. 50x 50x 15) -30 4 C Central Air conditioning System 1 15 | P a g e . It is prevalent in other processing plants in Pakistan as well. Frozen fish will be packaged according to the international requirements which is 10 kg boxes.4 kg packs. fish catch from the harbor to the plant.e. fax and telecom system.3 Exporting For export. with the help of federal government.2. and hot water pressure washing machine for cleaning of boxes and auction halls and foot operated taps for up-gradation of Quality Control Laboratory to meet International standards. an already existing processing plant and to incorporate the idea of Export Promotion Bureau to procure appliances and equipments. the trucks of the business will be used to bring raw material i. 1. The shipment of final product will be done by hired transportation whereas. 16 | P a g e . submitted with the documents to the Customs Department. Customs authorizes a final physical inspection of the container before it is sealed by the port customs authority or a bonded carrier. computer.Fisheries Processing and Export Business Plan (Processing Hall) Tables and Racks Generator (Source: SMEDA Seafood Processing Plant Report) Other office equipment would include office furniture. The Customs Department allows the clearing agent to instruct the transporter to retrieve the container from the exporter and take it to the port gate for inspection. 2 OPERATIONAL PLAN We have decided to upgrade.1 Vehicles 1 The venture will require 2 open trucks with 2 refrigerated containers. Upon final approval. once inspections are completed. the exporter compiles the requisite set of documents and contacts a clearing agent to prepare a shipping bill. 1. The exporter pays the Export Development Surcharge to the Export Development Fund and the clearing agent arranges container transfer to the terminal for loading onto the launches. The day to day operations would be maintained from the office near the plant and for continuous availability of raw material a contract system with local fishermen will be maintained. But we will make sure that the plant is ready during the peak seasons of fish catch. For that purpose we are planning to buy vehicles and refrigerated containers for fulfilling the consignments. Washing. However the procurement of raw materials will be on contractual basis only. All the production and operations of the company would be controlled by the owners. The fishery products are checked for any harmful or toxic products. the processing plants should be ready to operate during the months of July to March so that we can avail the full catch of the season. 17 | P a g e . According to SMEDA’s report on Sea Food processing plant. However later it will be done by the business. Furthermore we intend to operate our plant almost throughout the year. a sample would be again tested for quality and standards in the quality control department.Fisheries Processing and Export Business Plan Furthermore we have decided to set up our office near the processing plant with a quality control department and Research and Development. Quality control department will check the quality of fresh fish after washing in the storage area and before forwarding it for further processing. cutting and packaging would be the major operations that will be carried out in our plant. The people in the quality control will be from the relevant field with relevant amount of experience. There will be separate Research and Development department for latest information about processes and technology available for the betterment of the business. The shipping of the finished products would be done on the basis of number of orders made by the clients and it shall be done on contractual basis. After the processing of one batch of products is completed. Number of vehicles and containers would depend on the number of orders placed by our clients. 2. Automatic Fish Fillet Machine is high yielding machine with comparatively small size than the other machines operating in Pakistan. we will implement a hot water pressure washing machine for cleaning of fish and boxes. Pillow Packaging Machine is touchable human-machine operation and use for various kinds of packaging.Fisheries Processing and Export Business Plan 2. we intend to implement latest technology in our processing plant. This machine will help us in ensuring the quality of fisheries that will be send for further processing. The plant will also have its own packaging and cold storage facilities as mentioned earlier. we would be only be able to operate at approximately 40 percent of total capacity of the equipment available for running the business. This will help us to maintain the quality of fish brought in for processing and the quality of fish after it is being processed. Name of importer 18 | P a g e .1 Technology Utilization Since we want to meet the international standards for processed fish. However due declining fish stocks.2 Flow of orders Initially we will contract our potential clients through their Governments or export institutions working in those countries. With the help of Export Promotion Bureau. 2. 2. which normally contains: i. However later when we make a strong customer base with these clients. The machines that we will use for fish processing would be Automatic Fish Fillet Machine and Pillow Packaging Machine. Contract is a document. We would be also up-grading foot operated taps for our Quality Control laboratory to meet the international standards of quality and hygiene in our products.1 Signing of a Contract When prices are accepted then a contract is signed with the firm for supply of goods which becomes binding on both the buyer & seller. Name of exporter ii. we will develop proper channel for order placements and their consignment to our valued customers. export and import clearance responsibilities. xii. Currency in which transaction will be made. E-Form (Through authorized Commercial Bank). which promises to pay the supplier as long as the terms are met. viii. x. Mode of shipment (Sea. Item of sale iv. C&F. CIF etc. The payment may be paid immediately at sight or at a later date). Arbitration clause. Second arrangement is through the Letter of Credit (LC).2 Documentation The following documents are normally used in exports: 1. vii. Terms of delivery (FOB. 3. xi. Terms of payment (There could be basically two arrangements for payment. Inco terms are always used with a geographical location and do not deal with transfer of title.)* Inco terms deal with the questions related to the delivery of the products from the seller to the buyer. Road) ix.Fisheries Processing and Export Business Plan iii.2. The customer’s bank provides a ‘letter of credit’. Shipping Bill (Through authorized Clearing agents). Validity period of a contract & delivery period. Shipping marks if any. B/L or AWB (Through clearing agents) 19 | P a g e . There are two types of LC. This includes the carriage of products. who pays for what. 2. 2. LC sight and LC Deferred payment. Unit price v. Air. first being through direct funds transfer without involving any credit facility. This funds transfer could be both before the shipment of goods or after the shipment of goods generally referred as Cash Against Documents (CAD). Total quantity vi. and who has risk for the condition of the products at different locations within the transport process. A ) 2. Bank Credit Advice ( B. Packing List. The BCA is considered proof for the purpose of rebates. CBR sets aside a certain percentage of customs duty collected on imported raw material for incentivising export production. 5. It is the amount reimbursed by the government to exporters as compensation for Customs Duty collected at the time of import. 4.4 How to Claim Duty Drawbacks Duty Drawback is the most commonly availed incentive by exporters. 2. Commercial Invoice 5. refinance scheme etc. Export contract registration details 2. Certificate Country of origin (Through Chamber) or 6(a) GSP (Through EPB) 7. 2. Customs Signed Invoice with Two Photocopies.3 Post Shipment Documents 1. Packing List 6. 20 | P a g e . The following documents must be in order when Exporter files the claim for export rebate and submits the file to the customs rebate section 1. 9.C. For the purpose.2. Pre-shipment certificate through EPB for certain textile item s for exports to management textile item. Textile quota Export license/visa document required for textile items under quota restraint 4th copy of shipping (through customs) bill to be used for rebates on bank/sales tax refund/textile quota. Textile quota Export license/visa document required for textile items under quota restraint 8. 3.Fisheries Processing and Export Business Plan 4. BCA (Bank Credit Advice) to be received from commercial banks after foreign exchange is received. Bill of Lading (First Original). Railway Receipt (Attested by the Railways).2. transportation charges. Copy of Cross Border Certificate (In case of export through land route). Photocopy of SRO. export duties etc.2. Photo Copy of Form “E”. 2.7 Terms of Delivery When the exporter is making an offer. The buyer sitting in the overseas market is normally not interested to receive charge of goods at one's factory site so we will give the buyer the charge of goods on FOB basis which means free on Board at the seaport. he quotes the price of his product. (if required) 10. If the offer is accepted then a contract is signed between the buyer and the seller. The contract includes terms and conditions under which goods are delivered.5 Quoting Prices In case of export.2.6 Signing the Contract When prices are accepted then a contract is signed with the firm for supply of goods which becomes binding on both the buyer & seller. packing. 2. Exchange Rate Certificate 7. 9. documentation fee. (relevant to exporter’s product) 11. many things have to be considered for quoting prices. 12. agent’s commission. such as the cost including. Laboratory Test Report. It means that charges of the consignment are fully paid up to that point and the rest of the freight will be paid by the buyer. marking charges. Copy of Shipping Bill. 8.2. insurance. 21 | P a g e .Sales Tax Return of clearing agent of previous month (if claim launched through clearing agent) 2. credit. This will make it clear as to who is responsible for the goods if anything goes wrong.Fisheries Processing and Export Business Plan 6. 8 Packaging Packaging will be seaworthy. This does not only meet the need of local consumers but they have also export these products.2. Our company shall follow a costdriven strategy. the growth rate was positive and this is because of diversification of fish products like processed. and we will have a contract with Pakistan Packing Institute which will handle the packaging. the entire industry works on more or less the same strategy. as it will be most economical. The industry we shall operate in is a tax free industry.1 Pricing Strategy Since the number of firms is very limited in the industry. 2.2 Competitors and Value Addition There has been lack of diversification and failure to introduce new and latest techniques of fish processing over the last two decades. To maintain our exports. Now they not only process and package the fish but have also diversified like they have introduced products like fish kebabs and fish koftas. 3.Fisheries Processing and Export Business Plan 2. we shall always kept our prices low as compared to our competitors. marinated and ready to eat prawns and ready to fry prawns.9 Transport Transportation will be through the sea. in late 90s and mid 2000s. This step was taken by the government long ago to encourage private processing plant owners to improve the quality of their catch and exports. 22 | P a g e . 2. Firms like Super Fresh and Mahi Seafoods have worked one for value addition. 3 MARKETING PLAN 3. Our export share in the world market is not likely to decrease over the next two years.10Suppliers We will acquire our supply if fish from the local fish suppliers wholesale market. however. There was little diversification in 90s (that led to a negative growth) in the fishery products.2.2. These goods will undergo strict quality control procedures. existing value addition. Boat owner/fisherman  commission agent wholesaler  retailer  consumer (Local marketing flow) Boat owner/fisherman commission agent  exporter/processor importer (Export marketing flow) The system is that the owner lends his boat to the fish catcher. to retailer. existing value addition.3 Market for exports Pakistan’s exports of fishery products stand at about 0. U.0 billion from existing natural resources. fish flour etc. generally equally divided. fish pickle. Singapore. These products are made from fish species which are usually used as trash in fishmeal reduction such as catfish. Dried or salted fish would not fetch a price as high as value added products would such as fish-minced meat. our fisheries sector can yield even higher export earnings. puts our total export potential from this sector at around US$ 1. Previously. It shall go from commission agent to exporter/processor to importer to consumer for export market. A rough estimate based on maximum sustainable yield figures. etc. and foreign benchmarks. to consumer for local market. if the catch is sold. puts our total export potential from this sector at around US$ 1. our company can yield even higher export earnings.4 Distribution The flow of the fish shall be channeled from boat owner/fish catcher to commission agent. If we include the high potential area of aquaculture. hypothetically. This shows little value addition. anchovy. We have good prospects for these products in Middle East. the consignments destined to EU. A rough estimate based on maximum sustainable yield figures. threadfin bream etc. for $255. salted form.25% of world exports. If we include the high potential area of aquaculture. fish cakes. on profit sharing basis.0 billion from existing natural resources. and foreign benchmarks.Fisheries Processing and Export Business Plan 3. Far East.K. the owner will deduct the direct cost of such items 23 | P a g e . 3. to wholesaler. Japan and USA were in fresh or frozen form. whereas to Sri Lanka these were in dried. sardine. Thus. lizardfish. fish kababs. Hong Kong. which generally consists of his family members. or replacement costs are included in it. Since the boat remains in the water for several days.25 percent of the gross value of the commodity. he may hire crew and pay them from his own share of earning. make their bids and the commodity goes to the highest bidder. ration to the crew.Fisheries Processing and Export Business Plan as oil. If the cost. Purchasers assess the value of the commodity. Therefore. then to retailer. The purchase made for local sale shall be bought by wholesaler who delivers it to the retailer in local market which shall be ultimately sold to consumer. The commission agent shall arrange the auction for the catch. Only the authorized commission agent can process the sale and no fisherman can sell his product directly to wholesaler. No depreciation. which is divided equally by the Fishermen’s Cooperative Society (FCS) and auctioneer. the catch meant for processing/export shall either purchased at harbor. ice and salt. retailer. where commission agent (called mole holder) authorized by Fishermen Co-operative Society (FCS) awaits the arrival of the catch. The fish is generally brought to the auction hall/market on the fish harbor where the processor/exporter or wholesalers purchase the catch. and finally to consumer. consumer. the fish catcher takes a crew with him. fish processor or exporter. or shall be brought to Karachi immediately if purchased at other fish harbors. The fisherman shall pay 6. The fish shall be passed on from the catcher via the commission agent to the processor/exporter to importer or the local wholesaler. Almost all the processing units are located in Karachi. But if the family members are not available. $85 each by the boat owner and fish catcher. 24 | P a g e . repair. The fish catcher shall bring his catch to the auction hall. comes to $85 the remaining $170 will be divided equally. 4 Partnership Deed The mutual rights and obligations of all partners must be documented in the shape of a “partnership deed”. It requires information such as the scope of business. An ROP is one in which the partnership agreement. 4. must be in writing. An unregistered firm cannot institute a suit to settle these disagreements. It is optional and there is no penalty for non-registration. e. 4. management and objects.Fisheries Processing and Export Business Plan 4 ORGANIZATIONAL PLAN 4. etc. we have to register the company. Moreover.g. 4. If any dispute arises among the partners or ex-partners they may not resolve the issue through the civil courts. in order to become a member of PFEA (Pakistan Fisheries Exporters Association) or Chamber of Commerce and gain the benefits of these memberships.2 Registration of the Company For registration. including the details of capital contributions. There is a pro forma that needs to be filled.3 Registration of a Partnership The registration of partnerships is not compulsory by law. the recovery of the price of goods supplied.1 Form of Ownership The organizational form of the business will be a Registered Ordinary Partnership (ROP) between 5 people. we will need to consult the Chamber of Commerce. we plan to register our business because there are disadvantages for not registering. so on and so forth. which in our case is processing and services. company profile and also the profile of the directors of the company. but since it is a registered ordinary type of partnership. We will have to become a member of the Chamber of Commerce which will tell us if a certain name has been taken or not. and registered with the Ministry of Commerce. This needs to be signed by all the partners 25 | P a g e . Neither can an unregistered firm sue a third party for the enforcement of any rights arising from a contract. nature of the business. All the partners will have an active hand in running the business and will acquaint themselves intimately with all aspects related to it. however the 5thpartnerwould be just a sleeping partner.1 Authority of Principal Partners Alpha Fish Processing and Exports is a business that will be formed by five partners. Moreover. These partners will further hire employees to ensure that the business is run efficiently. This document may also be referred to as an “Article of partnership”. At the time of registration. The 5th partner will be the investor who invests 50% of the capital in our business. They have all always worked as a strong team on various projects in the four years of their education hence there all know how to work in harmony.5 Principal Partners The 4 partners will be the founding owners of the business namely: • • • • Rabiya Anjum Sidra Shahid Nabeela Saleh Sughand Muneer All these 4 partners are graduates of the most renowned business institution of Pakistan IBA (Institute of Business Administration). Apart from that a few experts will also be hired to gain a firm foothold in the industry. 26 | P a g e . The partners will be the owners looking after all the activities of the business as Co-Founders and look into the financial aspects and the hiring of the management. 1. All the other four partners would have equal partnership and ownership rights and decision making authority. a copy of the deed has to be submitted with an application to the Registrar of Firms in the concerned area. together as a team they also participated and won various business plan competitions at inter-university and international levels. All the four have had remarkable academic performance as well as a proven record of extracurricular activities.Fisheries Processing and Export Business Plan and subsequent copies held by each partner. 4. She is responsible for all the accounting and book keeping activities of the company. Sughand and Nabeela Saleh will be the Finance Directors. His responsibilities will include making decisions of particular and major issues after holding a meeting. She is also responsible for setting budgets for the activities set by the Sale/ Marketing Manager and the Production and Inventory Manager.1. The responsibility of creating a reliable and superior image falls on her shoulders. 1. 1.1. Rabiya Anjum will be the Marketing Director. She will look into the tax procedures and deal with it by hiring a tax consultant if required. Moreover. He will be selected by the method of voting by all partners.Fisheries Processing and Export Business Plan This is a rough organizational chart that will be followed by Alpha Fish Processing and Exports: 1.2 Finance Directors The finance manager is one of the partners of the company.3 Sales/Marketing Director The sales/ Marketing Manager will handle all the issues associated with creating a good image of the product and all the activities that will increase sales and procure more customers. He will also represent the company at all levels whether domestic or international and also at the Chamber of Commerce. She will be aided by the sales analyst and make decisions accordingly. she will also be responsible to conduct consumer research to keep the customer centric approach and perform efficiently.1. 27 | P a g e .1 CEO The CEO/ PRESIDENT of the company is one the four partners. He will also shoulder the responsibilities usually done by a supply chain manager along with his 28 | P a g e .7 Production & Inventory Control Manager The inventory manager will be a highly skilled expert. He will do all the administrative work and set up meetings and sort out schedules of the managers. He will also settle any grievances that might occur amongst the employees as well as their compensation and performance appraisals.4 Sales Analyst The sales analyst will be an expert who will have atleast 3 years of experience in the fisheries industry and is well acquainted with all the new techniques that will help the business incur a profit. thereby strengthening our relationship with them. It will be his responsibility to predict accurate trends of consumer preference and industry trends and advise the manager on the most feasible decision or course of action. 1. The HR Director will also have to hire mid-level Marketing Manager.6 Administrative Assistant The administrative assistant although will primarily work under the HR Manager.1. Finance Manager. Production Manager and Inventory Control Manager who will all report to their respective directors. he will also do secretarial work for the other managers and assist the sales analyst if required.5 HR Director The HR Director will be again one of the partners who will look into the hiring of all the labour and will also look into the aspects of the business that have been outsourced.1. It is the company's policy to retrieve the goods from our suppliers once they are ready to ensure a reliable supply and lessen the burden on the supplier.1. 1. 1. The majorly outsourced branch is of the transportation of the goods to the warehouse from the suppliers. She will ensure that all the people employed in their respective capacities are fully capable and are properly matched with the tasks assigned.Fisheries Processing and Export Business Plan 1.1. Sidra Shahid will be the HR Director. HR Manager. He will also be required to have a minimum of 3 years of experience to be eligible for the job. shipping. Furthermore. Furthermore. documentation. calibration. his responsibilities will include deciding the schedule of production and making a plan for it. evaluated. He will also need to maintain good communications with the transport and packaging companies and will keep tabs on them more closely than the HR manager. This manager will be hired and should have atleast 3 years of work experience. he would have to assist in creation of efficient processes through hands-on development and training. all the co-founders will have an active involvement and control over the entire management and production keeping themselves completely updated with the entire process. he must have a minimum of 3 years of experience. he would have to provide overall management of the ongoing production operations including assisting in inventory control. 1. interviewed and selected by the HR Manager. He will have a ware-house worker and a watchman who will report directly to him. However. He should be well versed with the inventory system that the company decides on using. Therefore. scheduling. 29 | P a g e . and quality control/inspection. The ware-house worker will keep a visual check on the inventory and will be present for the loading and the unloading of the goods in the ware-house. The applications received will be reviewed.Fisheries Processing and Export Business Plan respective duties. Also he would have to track quality of all processes through analysis of recorded data and formation of additional testpoints and lastly correlate results with requirements/specifications.2 Sources of Hiring Employees The employees will be hired through ads in the newspapers. Moreover. equipment maintenance. He will be required to keep a close check on the level of inventory and to keep a good rapport with the suppliers for the product to be ready on time. The watchman will be there to create a visual deterrence for theft because there will be a security system set in the warehouse to guard the inventory. USA and European Countries. The EU officials promised to visit the country by the end of the year. The metals include mercury. The diversification in demand has provided us with an opportunity to cater to the expanded markets with competitive costs. Additionally fish stocks in Pakistan are declining by15 percent every year because of the widespread use of fishing nets and because of this the plants are only operating at 20 percent of their total capacity which in turn is increasing their costs of maintaining the plants. lobsters. lead. cadmium. arsenic and zinc. To avoid any such problems in the coming years of our business we are planning to start a fish farm as well. was a major reason for ban of Pakistani fish products in 2007 by the European Union as the quality of processed fish did not match their standards. Furthermore the markets for export are continuously expanded and diversified with increase in demand for variety of fishery products. However we are planning to change this risk into an opportunity by investing into an already existing plant and to upgrade it to the level matched with the European Union and international standards. Many of these metals are carcinogens and can cause genetic deformities and other fatal diseases. in return affect the quality of fish cached. Pakistani authorities requested the European Union officials to visit the harbor in August last year. 30 | P a g e . According to a Pakistan Council of Scientific and industrial Research (1999) study. Another problem that can be faced would we be the dumping of solid waste and toxic materials by chemical factories etc into the sea which. This would help us to be among the processing units that are exporting to the Japan. Since then Pakistan has been facing problems in increasing its seafood exports. Hence we have to take extra care in processing the fish to meet the International standards for quality of the fishery products. chromium. crabs and shrimps.Fisheries Processing and Export Business Plan 2 ASSESSMENT OF RISKS The production conditions in Pakistani fish processing market are really unhygienic which. but then changed their plans without giving Pakistan any reason. huge amounts of toxic metals have been found in marine life such as fish. According to Faisal Iftikhar Chairman of Pakistan Fisheries Exporters Association the fish industry would come to end within next five years if this continued. This will create a problem for capacity utilization as currently. These include 11 processing units that are exporting to European Union currently. like ours. Indonesia and Canada as major fish exporters to these countries. Other competitors may also include the local fish exporting units which are already in the market. Moreover the exchange rates and regulatory environment of the importing countries will also have an impact on our exports. However these units are not listed with the European. Japan and USA have developed markets for fish imports with Vietnam. However euro and Japanese yen have appreciated and if this trend continues then our exports would be cheap to these countries consequently making it difficult for us to achieve the breakeven point on time. a Chinese fish exporting in these markets. it is difficult to penetrate into the market. 2. The preferences of the consumers were found out through a market survey conducted in the markets of these countries.1 Competitors European Union. Currently US dollar has depreciated because of which the exports to USA would be expensive. Therefore we planned to keep our prices competitive with higher range of products available to the consumers in these markets according to their preferences. Ltd. 31 | P a g e . China.Fisheries Processing and Export Business Plan However that could only be possible if we are able to recover our costs of starting the business within appropriate time. Companies like Cafatex Corp which is a Vietnam based seafood exporter and Dalian Fulejia Foodstuffs Co. Hence for a newly developed fish exporting business. Fisheries Processing and Export Business Plan 3 FINANCIAL PLAN The financial plan has been devised with the aid of SMEDA and he figures provided by them and hence are as near to be realistic as possible.2 Project Returns 32 | P a g e .1 Project Cost 3. 3. Fisheries Processing and Export Business Plan 3.5 Pro Forma Cash Flow Statement 33 | P a g e .4 Pro Forma Income Statement 3.3 Project Financing 3. Fisheries Processing and Export Business Plan 34 | P a g e . 6 Pro Forma Balance Sheet 3.Fisheries Processing and Export Business Plan 3.7 Breakeven Analysis 90341 Fixed Cost= 150 S.P (PER 46000 35 | P a g e . 1 Rupees thousands In Units 36 | P a g e .C TON)= BREAK UNITS= (PER 9500 EVEN 90341150 46000 9500 = 2475.Fisheries Processing and Export Business Plan TON)= V. Repayment will be done in installments. with interest.g. for example. confirmed. unconfirmed. transferable or others e. According to this. • Personal Guarantees This basically entitles the owners of the business to personally repay the loans in the event of default by the business. For obtaining a bank loan. • Term loan This will be a long term loan of 50% of the total investment required. however as a sleeping partner. This loan can be availed from a bank/DFI.8 Sources for Procurement of Finance The sources for the procurement of finances will include: • Angel investor or Venture Capitalist An angel investor is an affluent individual who provides capital for a business start-up. a bank/DFI makes a written undertaking to pay the supplier if the actual buyer fails to pay.1 Summary of the Salient Terms of Financing If the loan is obtained from a bank. This way. 1. Once the business has become a success and has good business rating. the interest rate will be too high so getting a loan from an investor is a better option. usually in exchange for convertible debt or ownership equity. the business will not have to make advance or immediate payments. Venture Capitalist funds money by owning equity in the companies it invests in. 37 | P a g e . 50% of the investment required will be financed by such an investor in return for which this investor will have equal profit sharing in the business. personal guarantees will no longer be required by the bank. back to back: revolving but is most commonly irrevocable/confirmed) to a beneficiary against complying documents as stated in the credit. • Letter of Credit A letter of credit is a document issued mostly by a financial institution which usually provides an irrevocable payment undertaking (it can also be revocable. This can be availed from the NBP.Fisheries Processing and Export Business Plan 3. the maximum exposure of a bank on a single SME should not exceed Rs. and the bank should make sure that the loan has been properly utilized for the purpose for which is was taken. we won’t have any order at the time. in which case a personal guarantee of the owners of the business will be required to get a loan. If loan is not an option then we can easily assume that the initial investment is being made by the partners. 75 million. 38 | P a g e . a Letter of Credit (LC) could've been our guarantee against which obtaining a loan will be very easy. it can also be obtained on personal guarantee. when we first set up the business. However. According to prudential regulations. If we have an order.Fisheries Processing and Export Business Plan we need to give something as a guarantee. The success of the business will be monitored monthly in the first year and quarterly in subsequent years. and make adjustments when possible to keep the business running with a positive cash flow. The owners will keep this in mind when evaluating the state of the business.Fisheries Processing and Export Business Plan 2 EXIT STRATEGY The owners of Alpha Fish Processing and Export will exit this endeavor after they have created a flourishing business that could be sold for a substantial profit. if the business exceeds this amount and is unable to compensate the owners. Moreover. The owners are aware that it usually takes new businesses four years to start turning a profit and that the business could operate at a loss during that time. In the event the proposed plan is not successful the owners will implement necessary measures to exit the business endeavor with minimal damage to the owners and investors. The owners will consider themselves successful when they have acquired a market share of 12-15% and the limits for achieving such a milestone is within 7-8 years after starting the business. 39 | P a g e . the owners believe that the most likely exit will come from the sale of the Company or licensing of its intellectual property to one of its strategic partners or to another enterprise. we will begin the process of closing the business and paying back debt. It is the owners' intention to run this business until they are ready to retire or have decided to sell the business and start another. All equipment and merchandise will be sold to cover any outstanding debts. This will be the option in the event of one or more of the partners wanting to continue the business while the others not. Acceptable loss has been determined. Any remaining debt will be paid by the owners in the form of monthly payments until all debts are paid in full. an exporter must check with the destination country's limits Dimensional weight or actual weight.Fisheries Processing and Export Business Plan 3 APPENDIX 3. The triplicate copy of the relative export form should be endorsed with the narration "Shipment Lost" under the stamp and signature of the Authorised Dealer and sent to the State Bank under a separate covering letter giving the following particulars and bearing running serial number: (a) Name of the insurance company with which goods were insured. whichever is greater. determines the shipment tariff Foreign exchange rules and procedures apply to exports as determined by the State Bank of Pakistan EXPORT CONTROL REGULATIONS. (ii) The Authorised Dealer who had certified the export form should pursue the matter with the shipper and ensure that in each case the exporter has received the insurance claim and produces encashment certificate. in cases where claims are paid in foreign currencies and Rupee 40 | P a g e . SHIPMENT LOST OR DAMAGED IN TRANSIT. Similarly. nothing in the Exchange policies relieves the exporters from the necessity of complying with the Export Trade Control Regulations as laid down by the Government from time to time.1 REGULATIONS Exporters should take note of the following regulations when exporting from Pakistan: • • • For size and weight maximums. (b) Amount of insurance and its currency. the Authorised Dealers must see that an insurance claim is made immediately the loss is known. The Government of Pakistan has under the Export Trade Control Regulations banned exports to Israel. Exchange policies regarding exports cover all goods exported from Pakistan irrespective of whether they are subject to license under the Export Trade Control Regulations or not. (c) Place where claim is payable. (i) If shipments from Pakistan are lost in transit for which payment has not already been received. ordinary customs duties are now the primary trade policy Instrument CUSTOM PROCEDURE FOR EXPORTS Exports play a vital role in the development of any economy. the simplification of the export clearance procedure is considered to be a vital step in the facilitation of the exporter. The following procedure has been explained in terms of various stages of inspection. The documents to be provided by an exporter to the clearing agent are as follows: a) Packing list 41 | P a g e . exchange controls. Quantitative restrictions. It will be the responsibility of the exporter concerned to produce to the Authorised Dealer who had certified the export form. clearance and documentation required: CLEARING PROCEDURE Once the consignment to be exported arrives at the port. (i) Where a shipment to be made by a particular vessel is entirely shutout and reshipped by another vessel. usually a clearing agent’s services are sought so as to facilitate the procedure of clearing the consignments. (ii) Where a shipment is entirely shut-out and is not being reshipped immediately by another vessel. the exporter should give a notice to the Customs in the prescribed form in duplicate. One of the initiatives taken by the Government of Pakistan to enhance & boost exports.Fisheries Processing and Export Business Plan payment certificate where settlements are made in Rupees. On receipt of the shut-out notice. is to provide various export incentives as well as streamlining export processes. and other direct state interventions into trade have been largely eliminated. the Authorised Dealer should treat the relative export forms as cancelled and forward the shut-out notice to the State Bank. the exporter should apply on the prescribed form in duplicate to the Customs for permission to alter the name of the vessel on the relative export form and the shipping bill. a copy of the shut-out notice duly certified by the Customs within 21 days from the date of certification of the export form. These certificates should be forwarded by the Authorised Dealer to the State Bank giving reference of relative export forms. SHIPMENTS SHUT-OUT ENTIRELY. Among other steps taken by Government. for approval. and is registered at the gate according to the allotted number.A) as not only does it help in processing of fishery products. for “Out of Charge”.A (Pakistan Fisheries Exporters Association) As mentioned earlier. The container is given a final physical check and is sealed by the bonded carriers or the port customs authority. Provided the D. the clearing agent prepares the shipping bill and files the documents with Custom department. the in the enhancement of export of them. approves the case.F. the case is marked to the D.S. A “machine number” is allotted to the Shipping Bill.S. and the case is forwarded to the Port Gate. EDS has been waived off for small exporters and those who exceeded their exports more than 10%.F.Fisheries Processing and Export Business Plan b) Invoice c) State Bank form d) Letter of Credit or Contract e) Certificate of Origin However if the exporter is exporting for the first time.1 Network for Dealing with Regulations • P. 1. the association that Alpha Fish Proessing and Export has become member of is Pakistan Fisheries Exporters Association (P. it is forwarded to the Superintendent with the examination report for final approval.S. 42 | P a g e . However. Once the inspector has examined the consignment.S. The consignment is allowed to enter the port vicinity. 2% Export Development Surcharge (EDS) of the invoice value shall be deducted through receiving banks upon remittance of export proceeds against the Export Development Fund (EDF). 2002) Provided the above mentioned documents are complete.E.E.) marks the consignment for examination to the inspector of the examination hall. then the following documents have to be provided in addition to those mentioned above: a) Sales Tax Registration Certificate (copy) b) NTN Number (certificate) c) Export Registration Certificate (No longer required according to SRO 490(I)/2002 dated 5th August. The case if approved by the Superintendent is marked to the D. The Deputy Superintendent (D. but also. Moreover. for any regulation that has to do with the fisheries industry or is related to the firms in the fishery sector Alpha Fish Processing and Export can deal with it with the help of P. • FPCCI (Federal Pakistan Chamber of Commerce and Industries) The FPCCI has advocated and voiced the collective opinion. Alpha Fish Processing and Export will use the network created by its membership in SMEDA. encourage foreign investment and stimulate economic activity in the country. 43 | P a g e . industry and environment and safeguarding the interests of the private sector through constant dialogue with the Government.E. The FPCCI is playing an active role in presenting problems of trade. For instance. SMEDA would be approached to deal with them. industry and economy with foreign Chambers and Institutions.Fisheries Processing and Export Business Plan Therefore. specifically relating to export sector. The FPCCI has its fingers on the pulse of the economy and serves as a bridge between the private sector and the Government. concern and aspiration of the private sector and offered helpful advice and solid assistance to the Government in its efforts to promote exports. the FPCCI and the network built with it can be approached to deal with such regulations. among the many activities of FPCCI it also facilitates in the exchange of information relating to trade.F. Hence for any sort of regulations that the government imposes on the private sector. • SMEDA (Small and Medium Enterprises Development Authority) Regarding any regulations small and medium enterprises.A which can help influence the regulation if it is working against the majority or force the implementation of a regulation which is in the benefit of the majority. for facilitation of securing finance and any regulations in that regard. Fisheries Processing and Export Business Plan 1.1 Our Products White Pomfret Squid Soul Fish Rohu Eel 44 | P a g e . 2 Miscellaneous 45 | P a g e .Fisheries Processing and Export Business Plan Deep Sea Shrimps Black Tiger Prawn 1. 7 558.8 431.1 621.0 0 40 0 5 .0 0 402.2 369.0 0 418.0 0 Exports of Fish and Fish Preparations 40 0 7 .0 0 40 0 3 .0 0 Marine (Thousand Tonnes) Total Year Inland 1990 1991 1992 1993 1994 113.5 Tonnes Fish Production 40 0 1 .2005.200704 05 06 07 08 40 0 9 .5 139.0 0 .Fisheries Processing and Export Business Plan 50 0 1 .0 0 Exports of Fish and Fish Preparations (Million rupees) 14000 12000 10000 8000 6000 4000 2000 0 2003.2 115.2006.7 553.8 483 518.1 30 0 9 .6 122.2004.9 121.6 46 | P a g e 30 0 7 .5 499. 9 640 Source: Marine Fisheries Department.6 183.8 566.9 176.5 179.5 474.6 179.5 580.9 250 405.4 451 454.5 395.5 400.3 422.5 614.Fisheries Processing and Export Business Plan 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 136.5 403 406 425 390 541.2 573.6 637.6 438.4 178.9 555.8 629.6 604.4 160.6 597 654.7 170.5 163.5 589.3 165.1 433. Karachi Fish Production 600 Thousand Tonnes 500 400 300 200 100 0 19 90 19 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 Inland Fish Catch Marine Fish Catch Year 47 | P a g e .2 167.5 174. 5 Source: Marine Fisheries Department.1 13327.5 11419.1 11624.Fisheries Processing and Export Business Plan Year 2003-04 2004-05 2005-06 2006-07 2007-08 Exports of Fish and Fish Preparations 8805. Karachi 48 | P a g e .6 8259. 3 Process Flow Chart of a Sea Food Processing 49 | P a g e .Fisheries Processing and Export Business Plan 1. Fisheries Processing and Export Business Plan 50 | P a g e . City _______________ 4. If your answer to question 8 is Yes. What quantity of seafood do you buy in a month? ○ Less than 1 kg ○ 1-3 kg ○ 3-6 kg 1. How frequently do you buy seafood? ○ Once a fortnight ○ Once a week ○ Twice a week ○ More than twice a week 1. Age _______________ 2. 1. which type of packing would you prefer? ○ Cans 51 | P a g e . Occupation _______________ 3. Will you prefer to buy hygienically processed and packed seafood over loose seafood? ○ Yes ○ No 1.Fisheries Processing and Export Business Plan 1. Country. Do you consume seafood in your diet? Yes ○ No ○ Proceed further if your answer to question 4 is Yes.4 Questionnaire for Customers 1. Where do you prefer to buy seafood from? ○ Supermarkets ○ Open fish markets ○ More than 6 kg 1. ○ ○ ○ ○ ○ ○ ○ Transport Government Trawlers Hygiene Storage Technology Overfishing ____ ____ ____ ____ ____ ____ ____ Q 4 What is your production? _________________ Q 5 What is the capacity of your plant? _________________ 52 | P a g e . EU. We have found through secondary research that different markets demand different varieties.g. hence the options for this question would probably vary. USA and Russia. 1. What types of seafood are you familiar with?* *We intend to preserve and export many types of seafood to different consumer markets e.1 Questionnaire for Entrepreneur Q 1 Do you have a Research and Development Department? ○ ○ Yes No Q 2 Over the last five years how many times have you updated the technology? ○ ○ ○ 1-2 times 2-3 times No (Since_________) Q 3 in terms of weakness or problems rate the following from 1-5 with 5 being the worst. Which variety of seafood do you purchase?* 2.Fisheries Processing and Export Business Plan ○ Reusable plastic jars ○ Other __________ 1. Japan. Fisheries Processing and Export Business Plan Q 6 What is the present labor force? _________________ Q 7 How much money have you spent to rectify the hygiene problem? _________________ Q 8 What is your major export? ○ ○ ○ ○ Live Frozen Salted Canned Q 9 What is the most demanded product? ○ ○ ○ ○ Live Frozen Salted Canned Q 10 Apart from fish which other sea food is most demanded? ○ ○ ○ ○ Lobster Crab Squid Shrimp Q 11 What is the international demand for seafood? _______________ Q 12 Do the trawlers fish all year? ○ ○ Yes No Q 13 How many workshops have you attended in the last five years? ○ ○ ○ 1-2 3-5 More than 5 53 | P a g e . Fisheries Processing and Export Business Plan Q 14 Who trains your employees? ________________________________________________________________________ Q 15 What is the important reasons for the low demand in Pakistan for fish? ○ ○ ○ ○ ○ ○ Price Taste Difficulty in access Storage Cultural taste for meat Religious sect Q 16 What is your procedure for processing of fish? ________________________________________________________________________________ 54 | P a g e . The entire industry doesn’t have a privately owned R & D department that could work in collaboration with the companies.6 from the interviewees. Of all the five people questioned only one said that they have improved their technology in the last five years but that too has been to improve the hygiene condition of the plant. One factory owner 55 | P a g e . There is also a temporary storage facility in the harbor for fishes which have not been auctioned. Otherwise there has absolutely been no technological improvement in the industry in the last five years. The factory owners have their own Storage facilities. Every person interviewed gave the highest (very unsatisfactory) rating of five to the government. The reason behind this was said to the incompetency of the government officials to implement any kind of laws and regulations. The average rating of hygiene was 4. received a rating of five and was marked as the chief problem facing the industry.6. This showed that the trawlers were only moderately responsible when it came to the problems facing the industry because the nature of the problems facing the trawlers can be easily overcome through some governmental intervention. However one factory owner gave the trawlers a rating of five and said that the trawlers were very much responsible for the present condition of the industry since the deterioration of the hygienic condition starts from the trawlers. Government. The official of KFHA and two factory owners gave a rating of five to the hygienic condition. Trawlers received an average rating of 3. In terms of problems facing the industry. The rest gave a rating of four. Hygiene received a very high rating from the people interviewed. The next question was related to technology.Fisheries Processing and Export Business Plan 1.1 Analysis of Questionnaire There was a consensus on the Research and Development department in the industry as none of the companies had one. The factory owners were so disgruntled by the attitude of the government that most of them wanted to submit their own ratings beyond five when asked to rate the government. however. hence there is no problem regarding the storage of the fish in the units. Firms have their own transporters so they do not face issues incase of fuel price hikes or strikes. the Transport industry showed no problem to the industry. Widespread corruption in the ranks of the government officials and the subsequent governing bodies were also said to the cause of the rating. The technological condition of the units is satisfactory. The next two questions were related to the capacity utilization of the industry. The use of banned net leads to the capture of very small fishes which can only be utilized for the poultry feed. However. The next quality is frozen product.6 by three of the factory owners. One responded with four and the KFHA official said five. 56 | P a g e . The transportation cost is also paid by the client. Most of them are working are working at around 30 % of their capacity. One industry owner said that it is not difficult to transport it but the fish taken off from the trawlers can only be used for freezing purposes. We asked that what if they worked with the fishermen to improve the condition as that would lead to the lifting of European Union ban. Every single unit is under. Technology received a rating of 3.Fisheries Processing and Export Business Plan gave a rating of three saying that in peak seasons the storage facility is not enough to cater to the supply of fish hence more storage facility units should be built. One unit has a capacity of 60 tons and is storing only around 17 tons per day. Every kg of fish produced by the units is exported. This is the major product of all the units. The best quality fish is Live fish. This combined with the fact that fishing takes place all year has exhausted the country’s fish resource. The international demand was said to be unlimited. However they said that the most demanded fishery product after fishes are the shrimps. Overfishing also received the highest rating of five. This is the responsibility of KFHA or the MFD. The official however was referring to the condition of the trawlers. all of them said it is not their responsibility. Every fisheries product is in demand. next is fresh chilled. This was the reason why there is no competition in the industry. This was due to the fact that this was leading to depletion of resources in Pakistani waters and can be disastrous for the fishing industry. they said that the government will not allow since it would undermine their power All the factories major output is frozen product. Both are transported by air. There are three levels of quality of fish final product. Most of the owners said that the hygiene condition needed to be improved but when asked have they done anything on their own. The question related to the rectifying the hygiene problem in the industry yielded a curious result. this is not feasible since most of the year there is under utilization of the storage facilities due to significant decrease in landing. The most demanded international product is Live Fish because of its highest quality.utilized at the moment. One stated the religious reasons because most people treat seafood as not preferable for eating. The price factor was stated by two factory owners and the KFHA official. But most of them said that this is useless because the employees lack basic knowledge and imparting them with advanced methods acts as counterproductive. The reasons given for the low local demand were price. 57 | P a g e . Workshops are also held by different NGO’s and societies and attended by the owners and workers. Another reason given was that seafood is not our staple diet. They also said that the government has failed to stop the implementation of the regulation regarding overfishing. except one said that fishing takes place all year long. religion and staple diet. Another Muslim sect considers fish without skin as forbidden. This leads to overfishing of the fish. All of the employees are trained by the company themselves.Fisheries Processing and Export Business Plan All. 2 Supplier Evaluation Questionnaire COMPANY NAME: ADDRESS DATE: CITY PHONE: EMAIL FAX STATE Completed questionnaires are to be signed below by an Authorized Official of your organization. The information contained in this questionnaire is certified to be complete and accurate. Supplier’s Signature and Printed Name Date Title 58 | P a g e .Fisheries Processing and Export Business Plan 1.