potato chips feasibility report Essay
Potato Chips – The Product
Current Market Situation
South Caucasus market potential
Risks and Threats
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.
Meetings and discussions with experts and directors:
Industry worldwide experts.
International specialist for potato growing - Mr. Isaac Tzarfati,
Mr. Italo Pozzi, Area …show more content…
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
Consumption (Kg per capita)
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: