- Country: Bulgaria
- Industry: Manufacturing
- Stage: Start-up
- Investment size: $6,000,000 / min. $4,799,999
- ROI: 22% in 1 years
- Type of investment: Debt, Equity
Idea of our project is: To restore economic activity in the region by building a modern and efficient fish farm with new technology and use of renewable energy sources.
Project will be implemented in a little village located in North-Eastern Bulgaria. The terrain is hilly - flat. Falls in a beautiful valley with forest and lowland areas.
By the project will be implemented re-circulation system for growing of rainbow trout. It is expected quantity of production to be 700 tons per year, at a weight of 300-350 grams of each portion. The production is based on four batches of approximately 600 000 pcs each. Expected annual production of approximately 2.1 mil. with trout weigh 300-350gr/per portion. Investment intention is to build a one-storey production building with total area of about 4000 square meters - Metal frame structure with surrounding construction of thermo and sloping roof.
1. Project Concept
This project will establish a re-circulation fish farming system of Rainbow Trout. The project will see the establishment of:
- Incubation and Hatchery Unit
- Fry Rearing Unit
- Grow-out Unit – four individual units each with four tanks
- Purge unit
- Intake system
2. Target market
The production is relatively stable. Cultivated species are low cost, bu twith the traditional search for fresh consumption in the domestic market. According to the NAFA (National Executive Agency for Fisheries and Aquaculture), production of rainbow trout in recent years averaged 3042 tons per year. Sales for the same period averaged 2453 tons, at an average market price - 3.50 to 4.00 euro / kg. Rainbow Trout Farm will produced rainbow trout in a quantity -700 tons per year, which will be marketed in the following areas:
• Recovery of economic activity in the region
• Modern production technology, renewable
energy and water sources
• Improving the social status of the region
• Improved assortment in the food industry
• Protect the environment -built water
treatment filters; use of purified water in the production cycle
Rationale for the deal
Opportunity in terms of market at present.
The market study aims to show the feasibility of production rainbow trout by re-circulation mode.
Studies show that in recent years the tendency is to increase the number of farms for aquaculture production. Bulgaria has potential for development of aquaculture production. The main species produced for consumption are rainbow trout, carp and herbivorous fish (white and bighead, grass carp) of freshwater species and black mussels from the sea. There is potential to increase aquaculture production, particularly through diversified production types.
Consumption of fish, however, shows pronounced seasonality associated with the seasonality of aquaculture reared in natural water sources. The advent of modern technology, such as re-circulation method in breeding and rearing of aquaculture expands opportunities for year-round supply of fresh fish in the market.
Consumption of rainbow trout in Bulgaria (2013) is averaging 8.9 kg per person per year. Relatively large amounts of fish and fish products consumed during the summer tourist season in the months of June to September and during ski -season between December - by the end of March. The increase in tourist flow helps increase demand and consumption of fresh fish.
Yearly in Bulgaria reside average about 3.7 million foreign tourists, mainly from countries in the
EC. Large proportion of tourists are from countries such as Turkey, Russia, Ukraine, countries with traditional preferences in fish consumption. At an average consumption of 0.500 kg per person during the stay of tourists in Bulgaria, it makes about 1500-1800 tons consumed rainbow trout, which greatly opens a new market niche for the sale of fish and fish products.
Our marketing strategies are based on the following assumptions:
Cooperation with government institutions, NGOs, the private sector.
• Public Relations, Promotions, Media and Internet
Websites aimed at target groups of our clients:
We are aware of the wide range of possible our clients. We will create an information portal on the Internet that will provide an overview of our activities. We'll print informative articles and brochures that will be distributed in shopping malls, tourist resorts, restaurants and grocery stores.
Internet, media, advertising brochures
• References and recommendations
An important part of the marketing strategy is to provide high quality products, timely deliveries and assortment. Planned marketing budget consistent with the scope of the market and customer requirements.
Use of financing
Total required investment - $ 6 000 000
3-4 rounds of financing
Own resources - 20%
Loans/debt - 20 %
Subsidies/Investor's capital- 60%
Opportunity for the investor
For debt investment - Loans/debt - 20 % of total investment; Deadline for return - 5 years, the interest rate - to 3.0 %.
For equity investment - 10% share of company to be offered to investors;
average ROI = 22 % / per 1year.
Looking for similar investment opportunities