Analysis of raw materials market

Consumed raw material/or the production of syrup

Demand of Corn in seeds - 50t in 24 hours, 16000t a year.

The main producers of corn seeds are agricultural entities of Uigur, Panfilov, Enbekstikazakh Districts of Almaty region. Maximum distinction of raw material producers from processing is 70 km.

At present the condition of raw material basis is following:

 

Districts of Almaty regions

Corn in seeds (t)

1.

Uigur

13250

2.

Panfilov

51450

3.

Enbekstikazakh

47215

4.

Total:

111915

 

 

 

 

Therefore, the volume of corn satisfies the demand of planned factory. However, it is necesary to mention that in consumption market following competitors are working: poultry farm: JSC "Bent", "Feniks", JSC "Seimar", "Ak kus", Pig farm "Altin Diermen", Talgar Alcohol factory. Consumers from other regions, Kyrgizstan, Russia, other consumers.

In spite of saturation of market by competitors dominating monopolistic price politics of JSC "Bent" and Talgar Alcohol factory do not fully satisfy the demand of the consumers. Detailed analysis shows that there is enough market facilities to satisfy the demand in raw material in consumption market. Many real competitors due to the long distinction from the raw material basis will not have chance to chance to fight against price competition from the planned factory. The location of the factory will make favorable condition and permanent basis in price and in volume. Besides, high guilty corn fodder will be proposed to competitors with the price of raw material.

Production foreseen by this project provides lower price of syrup through the use of local raw material and significant reduce of transportation costs. Considering everything mentioned the production of planned factory is commutative.

l.

2.

Reconstruction of existent billings and constructions (Chundzha Elevator)

Purchasing technological equipment

549000

1820000

3.

Installation the technological equipment

118000

4.

Purchasing corn seeds and technological materials, resources

351000

5.

6.

Purchase the transport

Hiring and training of works, engineers and administrators

Producing of experimental amount of products

15000

21000

10000

7.

Testing and evaluation of the products

7000

8.

Advertising of products

17000

9.

Preparations the factory for products

12000

10.

Other circulating means

80000

11.

TOTAL:

3000000