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Fruit packing line

Fruit packing line. Spain

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Fruit packing line

  1. 1. The market of the project is big and constant. There is not lack of customers. Spain is the main provider of fruits & vegetables to Europe. Spanish products reach even Asia. The value of Spanish exports of fresh fruits and vegetables in 2014 decreased by 2% over the previous year, totaling EUR 10.475 million, breaking the sustained upward trend in recent years. The export volume maintains its positive trend, increasing by 2% totaling 12 million tons, according to the Department of Customs and Excise, Ministry of Economy published this week, processed by FEPEX. By destinations, the EU represents 91% of the value exported by Spain in 2014, with 9.561 million euros, registering a decline of 2% compared to 2013. Outside the EU highlights the decline of non-EU European countries, among them Russia (-34%) due to veto that remains since August, Norway (-6%) and Switzerland (-3%). By contrast, in 2014, has grown export to non-European third countries with 421.5 million euros of (+ 32%). The main destination countries in this group are Brazil, with 70,4 millions euros (+ 25%), Canada with 58.5 million euros (+ 165%) and Algeria with 56.3 million euros (+ 25% ), data which demonstrate the commercial efforts being made by producers in the geographical diversification of its exports. The maximum turnover capacity of the Plant will be 113 M€/year, that represents the 1% of the value of Spanish exports in 2014 (Taking into account only exports). If to this summarize the volume of the domestic market, then the figure will be even less. The business will be an intermediary between the farms manufacturers and the wholesalers and big food shop chains. The business will buy the produce directly from farms, process it and sell it. In the whole chain of product movement from farm to consumer this is the process of higher economic gain. The farmer sells the fruit from the tree, in batches, he neither selects nor processes it. The commercial networks and wholesalers buy the processed and selected product that meets the required sanitary requirements. They each look for different standards based on value. The role of the Plant – The processing of products in accordance with European sanitary standards, its selection by quality & size, and its packaging in different types of packages, depending on wishes of the client. This process can last from hours to two/three weeks depending on the condition of the product. At the beginning of the harvest campaign the product is not sufficient ripe and needs to be exposed to a special degreening process in the plant cold storages. This degreening process can last 3 weeks. This business is not very exposed to market risks. The market is huge and constant. The Plant never will store products except those who have to go through the degreening process. The production process is very simple. This business always has more customers than can serve. Spain supplies agricultural products not only to the whole Europe, also supplies to America and Asia. Spain is the European garden. Today our company has guaranteed the sale of 3 trucks per day. After seven months of work the company will sell 6 trucks a day, and it's nothing compared to the existing demand. The most obvious risk of this business is the purchase of low-quality product. But even in this case, defective products returns to the farmer, or are sold to processing plants.
  2. 2. The Project location The project will be located in the city of Torrellano at 15 min drive to the south of Alicante City, at the Alicante International Airport. I will be located in a farm production zone with a highly developed logistics infrastructure, that is very important in this business.
  3. 3. The Plant building The Plant building will be rented for 10 years. This will reduce the investment costs of the project. This also allows, if necessary, to move the Plant to another better place. Its total area makes 3,620.85 sq.m. The parking zone makes 2,081 sq.m.
  4. 4. The Plant building
  5. 5. The Plant building Truck yard Ground floor Office
  6. 6. The Plant building Underground floor
  7. 7. The main production equipment There will be 2 lines with six 2-way packing tables in the ground floor. The total production capacity will be 22 tons a day.
  8. 8. Technological project (Ground floor) CAMARA
  9. 9. The production process
  10. 10. The economic of the project The total amount of investments including VAT is 1.384.084,74 €. Will be a VAT refund from the investments & expenses in the amount of 138.300,43 €. The following table shows the structure of investments by major articles. N° Article Total (€, VAT incl.) Total amount of investments 1 384 084,73 CapEx 671 281,00 Business concept & Financial investment Project 15 000,00 Production equipment 656 281,01 Project Management 35 314,05 Building repairs 50 000,00 Other expenses of the investment period 40 278,84 WorkCap 523 083,84 Wage fund for 1 month 64 127,00
  11. 11. The economic of the project Structure of investments by major articles (%)
  12. 12. The economic of the project Fubding sources and terms N° Parameter Bank loan Owners financing 1 Currency Euro Euro 2 Amount 589.682,43 730.275,31 3 Interest rate,% a year 5 5 4 Loan term, years 3 3 5 Deferral of payments of the interest and loan repayment, months -- --
  13. 13. Indicators of the investment efficiency The economic of the project Total project value (TVproject) € 61.428.641,93 Total project value for owners (TVequity) € 87.502.131,34 Net present value (NPVproject) € 59.539.751,67 Net present value for owners (NPVequity) € 72.807.249,66 Internal rate of return (IRRproject) % 878 Internal rate of return for owners (IRRequity) % 100 Discounted payback period (DPBPproject) Months 27 Discounted payback period for owners (DPBPequity) Months 0 Payback period (PBPproject) Months 27 Payback period for owners (PBPequity) Months 0
  14. 14. www.diasconsult.com info@diasconsult.com +34 692 957 312 +1 908 214 7442
  • ThanhtrucHoang

    Feb. 19, 2018

Fruit packing line. Spain

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