potato chips feasibility report Essay

1900 Words Jan 21st, 2014 8 Pages
Project Potato Chips

Contents
The Study
Potato Chips – The Product
Production Process

Current Market Situation
South Caucasus market potential
Market Penetration

Risks and Threats
Plant Configuration
Equipment

Plant Investment
Raw Materials
Financial Projections

Benchmark

The Study
BDO LLP was engaged to examine and assess the feasibility study of a new potato chips plant in Georgia.

Currently, the Georgian potato chips market is mainly dominated by foreign producers, especially from Germany and Turkey.

The Study
Meetings and discussions with experts and directors:
 Industry worldwide experts.
 International specialist for potato growing - Mr. Isaac Tzarfati,
Agronomist.
 Mr. Italo Pozzi, Area
…show more content…
 There is number of importers and distributers, each one's volume of trade seems low.

 There are no significant investments in promotion or brand efforts. local production, if any, is of low quality.

 We assume that current local market volume of trade is less than total of 2,000 ton per year, of which Georgia is less than 1,000 ton per year.

South Caucasus Market Potential
 With the advent of globalization, South Caucasus eating habits are changing to emulate those of the West.
 The potential market size of fast food products is increasing at an exponential growth rate.
 It is assumed that potato chips consumption is closely linked to changes in standards of living, as reflected in countries GDP.

South Caucasus Market Potential (1)
 In order to estimate local market potential we used linear regression

5
4

4.6

3.4

3

Kg

2.1

2

1.6

1

1.2
0.5

0

Country
Consumption (Kg per capita)
12

GDP

50,000
45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0

GDP Per Capita

on potato chips consumption data presented in different countries

South Caucasus Market Potential (2) in current GDP level, potato chips estimated average potential consumption is 0.68 Kg per capita. Total potential consumption is approx. 11,000 tons.
Segmentation by countries is as follows:
GDP per
Capita

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